Brazil and US formalize negotiations for free-trade deal

Brazil and the US formalized their negotiations for a free trade deal. “What was just a thought now is this: we are officially starting negotiations with the US,” said Economy Minister Paulo Guedes after a meeting yesterday with Secretary of Commerce Wilbur Ross, who had previously met with President Jair Bolsonaro. According to Mr. Bolsonaro, Mr. Ross warned him about “traps” in the Mercosur-European Union agreement that could prevent an understanding between Brazil and the US. Brazilian officials say they want to keep negotiations with the US going even after specific issues, like ethanol and wheat trade, are solved. On the other hand, the agreement with the Europeans is seen as a key element to keep the pressure on the US. Valor has learned that all negotiations may bump into political uncertainties, with elections in Argentina this year and in the US in 2020.

Source: Valor Econômico