RL33456
Brazil-U.S. Relations
February 28, 2007
Download Locations
Summary
On January 1, 2007, Luis Inᣩo "Lula" da Silva, of the leftist Workers' Party (PT), was inaugurated for a second four-year term as President of Brazil. President Lula defeated Geraldo Alckmin, former governor of the state of S㯠Paulo, of the Brazilian Social Democratic Party (PSDB), in a run-off presidential election held on October 29, 2006. Lula captured 61% of the votes as compared to Alckmin's 39%, winning handily in the poorer north and northeastern regions of the country but failing to carry the more prosperous southern and western states or S㯠Paulo, the country's industrial and financial hub. President Lula has been working to make cabinet appointments and to form a governing coalition capable of pushing his agenda through Brazil's notoriously fractured legislature. His immediate tasks are to boost Brazil's lagging economic growth and to address the issues of crime and violence. Some analysts predict that ongoing corruption investigations involving President Lula's PT party may undermine the strength of his second term in office. Relations with the United States have been generally positive, although President Lula has made relations with neighboring countries in the Southern Common Market (Mercosul) his first priority, and has sought to strengthen ties with nontraditional partners, including India and China. Many analysts believe BrazilU.S. cooperation may increase during President Lula's second term, particularly on energy issues. Brazilian and U.S. officials are currently negotiating an agreement to promote greater ethanol production and use throughout Latin America, the details of which are expected to be announced after two upcoming meetings between President Bush and President Lula. President Bush is scheduled to visit Brazil on March 9, which will be followed by a visit from President Lula to Camp David on March 31. In recent years, congressional interest in Brazil has focused on the U.S.Brazilian bilateral trade relationship, as well as Brazil's role in sub-regional, regional, and global trade talks in the Doha round of the World Trade Organization (WTO) negotiations. In December 2006, Congress extended trade preferences for Brazil under the Generalized System of Preferences (GSP), but set thresholds that may limit trade preferences for some Brazilian exports compared to previous years. Interest in Brazil also centers on its role as a stabilizing force in Latin America, especially with respect to Venezuela and Bolivia. Brazil's role as an ethanol producer has generated growing interest in Congress. In addition, Brazil is a key U.S. ally whose cooperation is sought on issues that include counternarcotics and counterterrorism efforts; human rights concerns, such as race relations and trafficking in persons; the environment, including protection of the Amazon; and HIV/AIDS prevention. This report analyzes Brazil's political, economic, and social conditions, and how those conditions affect its role in the region and its relationship with the United States. For additional information, see CRS Report RL33258, Brazilian Trade Policy and the United States, by J.F. Hornbeck. This report will be updated.
-
Related Legislation:
- S.39
-
Related Reports:
- RL33456
