Biateral U.S.-Brazil Trade Ties Must Increase, says USTR Official
The U.S. and Brazil should increase small- and medium-sized enterprise (SME) economic interconnection in order to ramp up exports to both markets and integrate SMEs elsewhere in the global market, said Deputy U.S. Trade Representative Miriam Sapiro, speaking in São Paulo Sept. 10. The U.S. is the largest economy in the world and Brazil ranks seventh, but bilateral trade accounts for only one quarter of one percent of worldwide trade, said Sapiro. Both governments should target bilateral efforts in innovation and investment increases and trade barrier eliminations, she said.
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“Unfortunately barriers still exist between our two countries that inhibit more innovation, including in the important area of intellectual property rights -- or 'IPR' -- protection,” said Sapiro. “We already know that IPR can have a large positive impact on sustaining and creating jobs. IP-intensive industries support at least 40 million jobs in the United States, and we have found that jobs in U.S. companies that use intellectual property pay 42% higher in wages.”
Despite some optimism (here) for the December World Trade Organization summit in Bali, stalled progress on the WTO “Doha Round” is forcing the U.S. to independently push efforts to eliminate barriers and strengthen economic growth with other countries, said Sapiro. She also said 21st century innovation will generate job growth for both the U.S. and Brazil. The U.S. is also willing to negotiate a Bilateral Investment Treaty with Brazil, said Sapiro. “Although foreign direct investment between our two countries has increased significantly over the past few years, anecdotally at least, the rate of growth seems to be slowing,” she said.