At the end of this year the United States’ General Preferential System, which gives certain countries, among them Brazil, special trade status and zero-tariff access to the US market for some goods, is scheduled to be phased out.
Roberto Abdenur, the Brazilian ambassador in Washington, says he would like to see the system extended in the case of Brazil. He points out that a large part of the US$ 3 billion Brazil exports to the US under the terms of the GPS are goods made by US subsidiaries in Brazil.
Under the GPS, in 2004 Brazil economized US$ 98 million in exemptions. Brazil’s total 2004 exports to the US reached US$ 21 billion, with 15% (US$ 3 billion) getting GPS reduced import tariffs. That was only slightly less than India, with US$ 3.270 in GPS exemptions.
Foreign Trade
Brazilian exports continued strong at the beginning of June, reaching US$ 1.108 billion for the first two working days of the month, while imports reached US$ 587 million, for a surplus of US$ 521 million.
That brings Brazil’s trade surplus for the first 105 working days of 2006 to US$ 15.985 billion, which is actually 1.86% less than the surplus was for the same period in 2005. .
Total exports for 2006 are now at US$ 50.574 billion, up 12.44% over the same period in 2005. Meanwhile, exports reached US$ 34.589 billion, up 20.56%.
ABr