The U.S. and Brazil on Monday signed a new protocol updating trade rules related to three new annexes: customs administration and trade facilitation, good regulatory practices, and anticorruption.
“From their first meetings, President Trump and President Bolsonaro have shared a vision for a prosperity partnership between the United States and Brazil and a desire for new trade initiatives,” U.S. Trade Ambassador Robert Lighthizer said. “Today’s Protocol uses the existing [2011 Agreement on Trade and Economic Cooperation (ATEC)] to establish common standards for the two countries on efficient customs procedures, transparent regulatory development, and robust anti-corruption policies that will create a strong foundation for closer economic ties between our two countries.”
The updated protocol is not considered a new trade agreement, which would need to be ratified by Congress. Tariff rates, quotas and banned products are not changed. Rather, it is an updated set of rules of engagement that provide practical benefits to the parties that currently interact and conduct trade between the two countries.
USTR further added in a press release that the U.S. and Brazil “continue to explore ways to increase trade in goods and services and encourage further investment.”
The protocol can be found here. A fact sheet can be found here.
