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To: hedgetrimmer; Nateman
Brazil is lobbying to remove supports for American sugar, but they won't get rid of their own because it PROTECTS their industry and provides jobs to the economy.

You have any info on how Brazil supports their sugar industry?

63 posted on 06/04/2005 10:15:48 PM PDT by Toddsterpatriot (If you agree with Karl Marx, the AFL-CIO and E.P.I. please stop calling yourself a conservative!!)
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To: Toddsterpatriot

The Brazilian government's current agricultural trade policy, based on the country's role as a major agricultural producer and exporter, often uses import measures to protect producers. Brazil imposes moderate tariffs, sanitary and phytosanitary standards, import licenses, and a considerable number of import taxes and fees as policy instruments. The Brazilian government passed a major trade-policy reform package in 1990 that featured major tariff cuts. (For a discussion of tariff and nontariff barriers to trade with the United States, see the Issues and analysis section.) The 1995 Mercosur Tariff Agreement with Argentina, Uruguay, and Paraguay lowered import tariffs with member countries. (For a discussion, see the Issues and analysis section.)

The Brazilian government does not provide direct subsidies to exporters, but instead uses the Bank of Brazil Export Financing Program (PROEX) for providing export credits and cash advances for export products. PROEX was designed to equalize the domestic and international interest rates for export financing and to directly finance production of exportable goods. The Brazilian government in 1990 removed export taxes that it formerly imposed, including those on beef and soybean products.

http://www.ers.usda.gov/briefing/Brazil/policy.htm

Brazil's trade has almost doubled since 1990, from $50 billion to an estimated $114 billion in 1997. The United States represents about 20% of that trade, and ran trade surpluses in 1995, 1996, and 1997 after many years of deficits with Brazil. Foreign direct investment has increased from less than $1 billion in 1993 to an estimated $17 billion in 1997. The United States is the largest foreign investor in Brazil, accounting for almost $20 billion, or 34% of total foreign investment. Ongoing and upcoming privatization in the telecommunication, energy, and mining sectors of Brazil planned for 1998 and 1999 is of major interest to U.S. companies.


76 posted on 06/04/2005 11:28:20 PM PDT by hedgetrimmer
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