Let me begin by thanking the Chairman for holding this hearing. We’ve had a hearing this year on India, and we had extensive discussions about Russia last year during the PNTR debate. And of course China is always on our minds. So having a hearing on Brazil allows us to round out our discussions on those emerging economies known as the “BRICs" - Brazil, Russia, India, and China.
In that regard, this hearing is an important one. Brazil is a rising power on the international stage. It will host the World Cup next year and the Summer Olympics in 2016. On the trade front, one of its diplomats was just chosen to lead the World Trade Organization.
But against that promising backdrop, there are some real concerns. Brazil has experienced a growth spurt, but that growth has slackened. Brazil is trying to figure out how to spur its economy as that economy matures. One of its answers has been to increase tariffs and impose local content requirements to boost its industries - policies that come at the expense of imports. It seems as though, in that area, Brazil is turning back the clock to the types of policies that plagued Latin America in decades past.
Some believe these policies are intended to address currency manipulation and unfairly traded imports from China and other countries. But there are more constructive and targeted ways to address those issues, and I hope the United States and Brazil can work together on those issues.
Given its growth, Brazil straddles the developed and developing worlds. That gives Brazil an opportunity to bridge the gap between those two worlds. But it isn’t clear that Brazil has quite stepped up to the plate. As Brazil increases its presence on the international stage, we hope that Brazil will rise to the occasion.
Brazil has much to offer as a trade and investment partner. Not only does Brazil offer us a market of 200 million people, but it has also become a key investor in the United States. It is in our mutual interest to find a way to solve our bilateral, and multilateral, differences.
We look forward to hearing from our witnesses today about Brazil’s economic situation more generally, and about the opportunities and challenges that businesses face in exporting to and investing in Brazil.
