Date of Submission
Trade Barriers: Brazil and Netherlands
Brazil is currently the 8th largest export market for U.S goods. U.S goods trade surplus with Brazil was 11.9 billion in 2011, an increase of 104.3 million from 2010 which was 42l.9 million which was up by 21.2 percent from the previous year. The stock of U.S foreign direct investment in Brazil was 66.0 billion in 2010. FDI is led by the manufacturing and finance insurance sectors (US Trade and Representative, 2014).
U.S exports are facing trade challenges such as high tariffs, uncertain custom system, high and predictable tax burdens, and an overburdened legal system. Brazil has also implemented the Brazil Major plan which raises the trade protection such as: tax breaks for the benefit of the local manufacturers, increase tariffs and local content requirements. In lieu of this, interested countries who want to access partnership in Brazil like the U.S face market access challenges over the next several years. This will result in the increasing pressures on the GOV to raise tariffs and imposition of non-tariff barriers. Brazil’s trade barriers are cause for concerns for the US government and European Union, who continue to work through regional trade accord negations and at the WTO to influence tariff and non-tariff barriers (export.gov, 2014). Exporters and Brazilian importers must register to the Foreign Trade Secretariat, a branch of the Ministry of Industrial Development and Commerce. The Brazilian authorities may require more documentation depending on the product. For now, U.S government maintains no export controls to Brazil. Military equipment, high-tech information system and equipment of a highly sensitive nature are some of the normal controls implemented by the U.S government (FedEx.com, 2014).
Imports in Brazil are subject to a number of taxes and fee. There are three taxes that are being accounted...