RL33456
Brazil-U.S. Relations
September 18, 2008
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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. Lula was re-elected in the second round of voting with fairly broad popular support. His immediate tasks were to boost Brazil's lagging economic growth and address the issues of crime, violence, and poverty. Despite President Lula's personal popularity, many predicted that intra-party rivalries within his governing coalition would make it hard for him to push his agenda through Brazil's notoriously fractured legislature. President Lula enjoys high approval ratings (72% in June 2008) and is benefitting from a strong economy (GDP growth exceeded 5% in 2007). Ongoing corruption investigations involving President Lula's PT party have not diminished the strength of his second term in office, and some are urging him to seek a third presidential term, a move that would require a constitutional amendment. Some have criticized President Lula, however, for thus far being unwilling or unable to use his significant political capital to gain legislative approval for a more robust political and economic reform agenda. Few predict that either President Lula or the Brazilian Congress will take action on any major reform agenda until after the October 2008 municipal elections are held. During the first Lula term, Brazil's relations with the United States were generally positive, although President Lula prioritized strengthening relations with neighboring countries and expanding ties with nontraditional partners, including India and China. Brazil-U.S. cooperation has increased during President Lula's second term, particularly on energy issues. Two presidential visits in March 2007 culminated in the signing of the U.S.-Brazil Memorandum of Understanding (MOU) to promote greater ethanol production and use throughout Latin America. Some predict that, given its recent deep-water petroleum discoveries, Brazil could eventually become a major oil supplier to the United States. During its second session, the 110 Congress has maintained an interest in Brazil's role as an ethanol producer and in the implementation of the U.S.-Brazil biofuels agreement On October 9, 2007, the House passed H.Res. 651 (Engel), recognizing the warm friendship and expanding relationship that exists between the United States and Brazil and the importance of the U.S.-Brazil biofuels cooperation. On July 29, 2008, the House passed H.R. 6560 (Rangel), which would, among other things, provide a one-year extension of current trade preferences for Brazil and other countries under the Generalized System of Preferences (GSP). Interest in Brazil also centers on its role as a stabilizing force in Latin America, especially with respect to Venezuela, Bolivia, and Haiti. In addition, Brazil's cooperation may be sought on issues of shared concern that include counternarcotics and counterterrorism efforts, trafficking in persons, protection of the Amazon, and HIV/AIDS prevention. This report, which will be updated periodically, 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.
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Related Legislation:
- H.R.6560
- H.RES.651
