Trade agreement between Brazil and the US would be a ‘way of opposing China’, says economist

Trade agreement between Brazil and the US would be a ‘way of opposing China’, says economist
Trade agreement between Brazil and the US would be a ‘way of opposing China’, says economist

Professor of international economics at Insper, Roberto Dumas, analyzed the geopolitical reasons behind the rapprochement promoted by the North American country

Adriana Toffetti/Estadão ContentBrazil and the United States signed an agreement and promised to reduce non-tariff barriers in bilateral trade

O Brazil and the United States signed an agreement and promised to reduce non-tariff barriers in bilateral trade. The objective would be to increase the commercial flow and investments. To talk about the consequences of this commitment, Jornal da Manhã, from Young Pan Newsinterviewed the professor of international economics at insper, Roberto Dumas. For the economist, it is essential to understand the geopolitical reasons behind the rapprochement promoted by the North American country: “This increasingly helps Brazil to enter the supply chains and make bilateral agreements with our largest partners in the Americas. What is behind this, and this is a relevant point, is that with the movement of the geopolitical chessboard, with the war in Ukraine and China trying to annex Taiwan, the United States began to attract Brazil into its zone of influence. . Not that we’re not within the zone of influence. But it is a way of opposing China in this zone of influence. From 2007 to 2021, Chinese investments in Brazil totaled more than US$ 70 billion and there were 212 projects”.

“Brazil is a friend to everyone, but it is important that the United States make its contribution and help in these bilateral agreements, reducing non-tariff barriers so that we continue to do more and more business and attract investment as a counterpoint to Chinese influence in America. Latin and South America. Brazil is the largest country in South America and China knows this and continues to exercise its shark power by putting more resources. The United States is seeing this and wants to go after it, bringing Brazil closer and closer to its zone of influence”, explains the Insper professor.

Dumas further detailed the reasons that make the China to be such a relevant trading partner for Brazil. According to the economist, the Asian giant has an affinity with the Brazilian economy: “The Brazilian economy and the Chinese economy are absolutely complementary, that is, we are not direct competitors. Brazil is a country of commodities, iron ore, oil and agribusiness. Which is precisely what China has needed most since 2007… And China also wants to exert its geopolitical influence in South America. All of this contributes to Brazil becoming China’s largest trading partner, not only in international trade, but as a destination for direct investment here in South America”. For the specialist, this dispute between China and the United States for the South American market tends to benefit Brazil and is part of a geopolitical movement as a whole: “What rules the geopolitical chessboard is money. Countries don’t have friends, countries have interests. So we are ready to do business with China, and sell our commodities to them as they wish. For some time the US also did a lot of business with China and continues to do so, but now they are seeing that China is increasingly dominating South America.”

“That’s why I believe in this acceleration of these bilateral agreements and more bilateral agreements with the US. This tends to benefit Brazil… There is an interest on the part of the US to try to minimize, increasingly later, the influence of China in South America, exercising what it has always exercised, bringing it under and helping in this new dynamics of globalization. I don’t think globalization will end and I don’t think globalization will slow down. I think globalization will change”, opined the economist. Check out the full interview in the video below..

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