Brazilian exports to the United States fall 32% and the trade deficit soars

The partnership boasted by the governments of Jair Bolsonaro and Donald Trump has not yet been reflected, in practice, in the commercial relationship between Brazil and the United States.

Even considering the slowdown in world trade caused by the pandemic - Brazil's business with the world has decreased by 9.6% - exchanges between the two have fallen considerably: 25% between January and August of this year, in comparison with the same period last year.

The decrease in Brazilian sales to the US market was even greater, 32%: from 19.8 billion dollars between January and August 2019, it went to 13.4 billion dollars in the same period of 2020, with oil and semi-manufactured products as the main items .

The United States also sold less to Brazil, but the reduction was less, 18%.

The deficit in the trade balance between the two countries closed in August with a negative balance for Brazil of 3,000 million dollars, compared to just over 200 million negative last year.

While Brazil's trade with the United States falls, trade with China grows.

Business with the Asian giant - a constant victim of criticism from the government and the Bolsonaro family - rose almost 6%, due to the rapid Chinese recovery after the coronavirus outbreak and strong demand for agricultural products from Beijing.

The Chinese are Brazil's largest trading partner — it surpassed the United States in 2009 and a key destination for Brazilian agribusiness sales.

Business between the two countries amounted to about $ 69.1 billion, with a balance in favor of Brazil of about $ 25.5 billion.

Apart from China, only the sale to the Netherlands, the gateway to the European Union, and Canada increased.

The United States, a priority ally of Brazil, is Brazil's second largest trading partner, with business worth $ 29.8 billion.

The figures for foreign trade with the United States are not comfortable for the Foreign Ministry, criticized by experts and opponents for its alleged submission to the Trump administration and for taking little advantage of this automatic alignment on various issues.

Foreign Minister Ernesto Araújo was in the Senate on Thursday to discuss this matter, after the visit of the US Secretary of State, Mike Pompeo, to Boa Vista last week to see the reception facilities for Venezuelan refugees became relevant. .

The trip was seen as part of Trump's election campaign, who will seek reelection in November.

Bolsonaro has always made it clear that he has a preference for the Republican candidate.

Diplomats in Brasilia, on standby

Araújo refuted this almost unanimous assessment, saying that it made no sense: "In the United States, Republicans and Democrats agree on the situation in Venezuela," said the Foreign Minister about the crisis in the Caribbean country.

In practice, Brazil has made more concessions than it has received.

Some examples: he agreed to increase the share of ethanol imported from the United States, did not complain about the 80% reduction in steel sales to Americans, and agreed to cede the post of president of the Inter-American Development Bank to a Trump ally.

In addition, Bolsonaro suspended the demand that Americans who want to visit Brazil need one, without a reciprocal gesture from Washington.

And it has only one promise, so far unfulfilled, that the United States will support Brazil to join the Organization for Economic Cooperation and Development (OECD).

In the meeting with the senators, the Brazilian foreign minister said that the partnership with the Americans is not immediate, but that it will soon bear fruit.

According to the information he provided to the parliamentarians, there are three agreements in process: one that deals with trade facilitation, mainly in ethanol and sugar;

another on normative convergences, and a third that foresees measures against corruption.

Diplomats from five countries interviewed by EL PAÍS are reluctant to the direction that Brazilian foreign policy is taking.

They say they prefer to postpone any conversation with the foreign leadership until after the US elections, because they do not know whether the usual Brazilian pragmatism or ideology will prevail if Democrat Joe Biden defeats Republican Trump in the electoral race.

"Trump's defeat or victory will set the course for the Ministry's policy next year," said a European diplomat.

Araújo, for his part, told parliamentarians that he believes the relationship between the two countries will continue, regardless of who wins the November elections.

“I am sure that everything we are doing with the United States is of permanent interest to both countries.

A Democratic government would probably maintain the same approach, "said the chancellor.