Brazil and the U.S. signed on October 19 a Protocol that updates the 2011 Agreement on Trade and Economic
Cooperation (ATEC) with three new annexes on provisions of Customs Administration and Trade Facilitation,
Good Regulatory Practices, and Anticorruption. Although it has been called a “trade package”, it has limited
scope. Notwithstanding, ATEC allows engagement on a wide range of issues that affect business, and there is
great value in terms of easing bilateral trade and investments. In fact, the commitments made answer to
historical demands from the private sectors of both countries in terms of automation of customs, greater
predictability of regulations, and anti-corruption practices in trade and investment-related operations. These
commitments will likely contribute to increase U.S. and Brazil trade flows. The Protocol does not require U.S.
congressional approval, but the Brazilian Congress needs to approve it prior to its entry into force.
Following the expansion of the Protocol, the Export-Import Bank of the United States (EXIM) and the Brazilian
Ministry of Economy signed a memorandum of understanding to explore and identify potential opportunities
for EXIM financing in a total aggregate amount of up to $1 billion. This covers facilitation of financing related to
the deployment of 5G technology in Brazil, which directly affects Chinese interests.
Section 301 – Vietnam
The U.S. initiated two new Section 301 investigations against Vietnam, related to timber trade and currency
undervaluation. Parties have until November 12, 2020 to submit written comments. U.S. Section 301
investigations led to the current additional tariffs against China. The announcement of these investigations
raised concerns as many U.S. businesses are shifting supply chains from China to Vietnam. This is the 6th Section
301 proceeding under the Trump Administration, such as the ongoing investigation on Digital Services Taxes
against several countries including Brazil.
Section 232 and trade remedies investigations involving Brazil
Currently there are several measures and trade remedies investigations affecting Brazilian exports to the U.S.
In total numbers, there are: (i) four Section 232 actions (steel, aluminum, and their derivatives) and two ongoing
investigations (autos and vanadium); (ii) five countervailing measures and one ongoing investigation; (iii) twelve
anti-dumping duties and two ongoing investigations affecting Brazilian exports to the U.S.
IADB New President
Mauricio J. Claver-Carone was elected President of the Inter-American Development Bank (IDB) in September
2020. He took office on October 1, 2020, for a five-year term. As President, he oversees the operations of the
IDB Group, which comprises the IDB, IDB Invest and IDB Lab. He is the first north American President of the Bank
in 60 years of existence.
WTO New DG
Nigeria’s former finance minister and a former managing director of the World Bank, Dr Ngozi Okonjo-Iweala
was announced as the candidate most likely to achieve a consensus for Director-General of the World Trade
Organization (WTO) after the multiple head of delegation confessional meetings. She is the first African and
would be the first woman to occupy the highest position of the WTO. Even with the overwhelming support for
Ms. Okonjo-Iweala, the U.S. announced its support for the South Korean candidate. The formal selection takes
place on November 9. It is not clear how the next DG will be selected if consensus cannot be reached.
U.S. Elections
On November 3 ends the voting period to choose the next President of the United States and Congress
representatives. The polls point to the democrat candidate Joe Biden as the winner, but final results are hard to
predict. In Congress, Democrats have held a majority in the U.S. House of Representatives since the 2018
elections, while Republicans have held control of the U.S. Senate since the 2014 elections.
The American choice for President and the new Congress configuration could significantly impact Brazil-U.S.
trade relations. Should the democrats win the presidency, the expansion of the Brazil-U.S. trade package into a
broader trade agreement may be affected negatively.
General Updates and Announcements:
• If you missed ABCI’s Event on U.S. Elections and Prospects on International Trade with Jennifer Hillman,
Stephen Vaughn, and Lisa Schroeter held in September 10, 2020 you are welcome to check the recording
on our YouTube channel. The event had great attendance and repercussion. See here.
• Save the date for our virtual 2020 International Trade Symposium: December 3 and 4, 2020.
• Check out the new ABCI Institute Website here!
• Follow us on social media: LinkedIn and Facebook
• The ABCI Institute is a non-profit organization that seeks to foster the study of international trade and
become a unique platform for Brazilian and U.S. international trade professionals and academics. We
welcome and encourage your support. If you are interested in donating or becoming an ABCI member,
please reach us at board.abci@gmail.com.
ABCI Board Aluisio de Lima-Campos, Renata Amaral, Barbara Medrado, Lucas Queiroz Pires, Marcia Pulcherio