Deputy Secretary of Commerce, Don Graves, proposes supply chain for high value-added goods between the 2 countries
US Assistant Secretary of Commerce Don Graves said this Wednesday (May 18, 2022), in Brasília, that the Joe Biden administration believes that “a winner will be elected freely and fairly in Brazil”. He said, however, that he hoped that after the elections, business and trade between the 2 countries “continue as usual”.
Graves led a mission of 70 American businessmen on a business visit to Brazil. In Brasília, he met with Ambassador Sarquis José Sarquis, Secretary of Foreign Trade and Economic Affairs at Itamaraty. He held meetings at the Ministries of Economy and Science and Technology on a proposal to increase the trade flow of the 2 countries with products of higher added value.
To the press, Graves stated that businessmen from both countries are not worried about the Brazilian electoral system and the risks of instability. “The real concern is with the resilience of supply chains, inflationary pressures and facilitating investments on both sides.”
The US assistant secretary said the US wants to foster a supply chain in manufacturing, healthcare equipment and semiconductors with Brazil. It is a country close to and in the region, he justified, in addition to being a long-time partner democracy.
The initiative reflects the obstacles faced by industrial sectors in the 2 countries to receive inputs, parts and pieces from China, where production and transport of goods are affected by lockdowns against covid-19.
“We believe in adding value to production on both sides, to generate higher quality jobs and long-term investments. Not just in the commodities sector”said Graves.
In Brazil, however, the main subsidy mechanism for the export of high value-added goods has been suspended since February. The Proex-Equalização had R$ 500 million of its budget for this year transferred to the Safra Plan. The remaining R$ 800 million have already been contracted by exporters.
The assistant secretary said that the United States expects to receive Brazilian investments in these same sectors. “Supply chains have proven resilient in recent years. They are crucial parts of our economies and also real challenges”he said. “Our countries cannot be dependent on 1 or 2 suppliers.”
One of Graves’ missions in Brazil was to urge Brazilian authorities on the importance of President Jair Bolsonaro’s presence at the Summit of the Americas, on June 9 and 10, in Los Angeles. Bolsonaro has not yet made a decision.
fertilizers
Graves said the US Department of Agriculture and the Brazilian Ministry of Agriculture are working with the White House to find alternative fertilizer supplies to Brazil. There are conversations about new technologies that allow the reduction of the use of the input.
He informed that his country did not impose sanctions on the fertilizer trade on Russia. Retaliation is focused on defense sectors and those with the ability to contribute to Moscow’s intentions of continuing the war in Ukraine. Both countries are working on a Food Security Action Plan to prevent supply problems in parts of the world.
“Working together with Brazil on this agenda is a high priority,” he said. Brazil feeds the world. The US is in the same situation.”
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