The Interplay of Financial Services and US-Brazil Trade

 The United States and Brazil have one of the most important trade and economic ties in the world. They are both the biggest economies and democracies in the Western Hemisphere.  It is eighth in terms of the amount of things we trade with Brazil.  The United States sent $63 billion worth of goods and services to Brazil in 2011. These products supported about 300,000 jobs in the United States. Brazil is becoming a major player in the world stage and an economic giant.  Brazil has the sixth largest economy in the world, with a Gross Domestic Product (GDP) of almost $2.5 trillion in 2011. It makes up more than 60% of South America's overall GDP.  The US wants to strengthen its economic ties with Brazil by building on their strengths, sharing our goals, and hearing what their active private sector stakeholders have to say. In the last ten years, trade in goods and services between the US and Brazil has almost tripled, reaching more than $100 billion in 2011.  The United States has sent more than twice as much goods and services to Brazil in the last five years, from $26.6 billion in 2006 to $62.7 billion in 2011.

Brazil's demand for imported goods has more than tripled

From $47.2 billion in 2002 to $226.2 billion in 2011. It is home to 195 million people who buy things, and their income is expected to grow by more than three percent per year for the next five years. The amount of goods the United States sends to Brazil has more than tripled since 2002, rising from $12.4 billion to $42.9 billion in 2011.  The United States sent 21% more goods to Brazil in 2011 than it did in 2010. The goods that were exported came from high-tech, high-value businesses.  In 2011, the U.S. sent $7.9 billion worth of tools to Brazil as its main export.  Other big exports were parts and airplanes ($5.4 billion), electric machinery ($4.6 billion), and plastics ($2.1 billion). Businesses and entrepreneurs all over the country gain from sending goods to Brazil. For the past 10 years, exporters from all 50 states have said that they sent goods to Brazil every year.  In 2011, 36 U.S. states, or almost three quarters, said they exported goods worth more than $100 million. The United States is also sending more services to Brazil.  U.S. service exports to Brazil more than tripled between 2002 and 2011, rising from $5.1 billion in 2002 to $19.9 billion in 2011.  There were internet services worth $2.1 billion and business, professional, and technical services worth $2.2 billion in 2010.

In 2011, 1.5 million Brazilians came to the United States

This was a 26% rise from 2010, and a rise of about 400,000 from 2002.  Brazilians spent $6.8 billion on travel and tourism-related goods in the US in 2011. This was 148% more than they did in 2009. Investment flows between the US and Brazil help create jobs, boost exports, and make our total economic relationship stronger.  Brazil was one of the biggest Latin American sources of foreign direct investment (FDI) in the United States, with $15.5 billion in capital investments made there by the end of 2010. Some early figures from the U.S. Bureau of Economic Analysis show that Brazilian companies invested almost $3.7 billion in the U.S. in 2011.  FDI from Brazil to the US is mostly directed toward energy, such as coal, gas, oil, and alternative and green energy sources. Other top areas of FDI include manufacturing metals, plastics, textiles, and building and construction materials. Brazilian companies with U.S. businesses hired 39,000 U.S. workers and sent $2.6 billion worth of goods out of the U.S. in 2009.  As Brazil's economy grows, there will be a lot of room to make these amounts bigger.  From January 2003 to February 2012, 81 deals were announced that would spend a total of $3.37 billion on capital projects and create 8,110 jobs in the United States.

Through the U.S. Commercial Service and the National Export Initiative 

The U.S. is trying to make it easier for more products to Brazil that will help create jobs.  Here are some recent examples of success: A fire truck company called Rosenbauer America was awarded a $42 million deal to provide 80 fire trucks to Infraero, Brazil's airport body.  The deal was made in August 2011, and the trucks will be built in Minnesota. Last year, the Brazilian company Boldini, S.A. gave the Florida-based Eastern Shipbuilding Group a $241 million deal to build five ships.  The project got a loan security from the U.S. Maritime Administration.  At the Eastern Shipbuilding plant in Panama City, Florida, 300 new jobs will be created because of the deal. Swanson Industries, based in West Virginia, makes and fixes long-stroke cylinders used in the offshore oil business. In October 2010, Swanson made a deal with Superpesa, a Brazilian company, which led to a repair service contract worth $1 million in sales for Swanson. Three GE engines were sold to two wind farms in the Brazilian state of Rio Grande do Norte for $30 million in March 2012.