Ok, I read up on the stuff here is both sides so you see its not entirely the US fault. I don't see how you can blame us for not wanting to import your food. That's kinda like a bum gettign pissed at you cuz you wont buy a flower for $3.00 from him everyday. At some point you've got to worry about yourself.
Brazilian officials are quick to point out that U.S. import restrictions against Brazilian exports are significant, targeting in particular agricultural products. Then, on top of this existing grievance, the U.S. Congress recently passed a farm bill that sharply increases U.S. income support to growers, thereby threatening Brazilian exports, especially soybeans, not only in the U.S. market but also in third markets. President George W. Bush signed this bill, so the blame cannot be placed solely on the Congress. The conclusion of most Brazilians, as I discovered on a recent trip, is that the U.S. government does not care- and that it does not even want to hear what the Brazilian authorities are saying.
However deserved the criticism is about U.S. negligence, most Brazilian problems-political and economic-are created in Brazil. Brazil is not a major trading nation. Its exports are only about 10 percent of GDP. To put this figure in perspective, Mexico's exports are about 35 percent of GDP. Brazil's current account deficit in recent years has been averaging around 4.5 percent of GDP, which is clearly on the high side. This, plus debt amortizations, translate into a need for external financing this year of more than $50 billion. This large amount helps explains the recent downgrading by Moody's of Brazil's debt outlook. If Brazil is not able deal with its balance-of-payments problem by increasing its export earnings, the country will remain vulnerable to any shock that reduces the inflow of foreign capital.
no subject
Brazilian officials are quick to point out that U.S. import restrictions against Brazilian exports are significant, targeting in particular agricultural products. Then, on top of this existing grievance, the U.S. Congress recently passed a farm bill that sharply increases U.S. income support to growers, thereby threatening Brazilian exports, especially soybeans, not only in the U.S. market but also in third markets. President George W. Bush signed this bill, so the blame cannot be placed solely on the Congress. The conclusion of most Brazilians, as I discovered on a recent trip, is that the U.S. government does not care- and that it does not even want to hear what the Brazilian authorities are saying.
However deserved the criticism is about U.S. negligence, most Brazilian problems-political and economic-are created in Brazil. Brazil is not a major trading nation. Its exports are only about 10 percent of GDP. To put this figure in perspective, Mexico's exports are about 35 percent of GDP. Brazil's current account deficit in recent years has been averaging around 4.5 percent of GDP, which is clearly on the high side. This, plus debt amortizations, translate into a need for external financing this year of more than $50 billion. This large amount helps explains the recent downgrading by Moody's of Brazil's debt outlook. If Brazil is not able deal with its balance-of-payments problem by increasing its export earnings, the country will remain vulnerable to any shock that reduces the inflow of foreign capital.