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Summary

On January 1, 2007, Luis Incio 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 Brazils lagging economic growth and address the issues of crime, violence, and poverty. Despite President Lulas personal popularity, many predicted that inter-party rivalries within his governing coalition would make it hard for him to push his agenda through Brazils fractured legislature. President Lula has enjoyed high approval ratings and benefitted from a strong economy throughout most of his second term. The global financial crisis, however, has slowed Brazils economic growth and is threatening to erase the social gains made in recent years. President Lula has implemented countercyclical policies to boost the economy and protect those most exposed to the effects of the economic downturn. A number of analysts believe it is unlikely that the Brazilian Congress will act on Lulas stalled legislative agenda given the need to address the effects of the financial crisis and the political parties increased focus on the October 2010 presidential election. During the first Lula term, Brazils 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 Lulas second term, particularly on energy issues. Two presidential visits in March 2007 culminated in the signing of the Memorandum of Understanding (MOU) Between the United States and Brazil to Advance Cooperation on Biofuels; the agreement was expanded in November 2008. President Obama has made it clear that he would like to continue strengthening U.S.-Brazilian relations. In March 2009, President Lula became the first Latin American leader to meet with President Obama. During the 110th Congress, the House passed H.Res. 651 (Engel), recognizing the expanding relationship that exists between the United States and Brazil and the importance of U.S.-Brazil biofuels cooperation, and H.Res. 1254 (Engel), supporting the U.S.-Brazil Joint Action Plan Against Racial Discrimination. The 111th Congress has maintained interest in Brazil. Both the House and the Senate passed resolutions (H.Res. 125 and S.Res. 37) in March 2009 calling on Brazil to comply with the requirements of the Convention on the Civil Aspects of International Child Abduction and to assist in the safe return of Sean Goldman to his father in the United States. On March 12, 2009, a resolution was introduced in the Senate (S.Res. 74, Lugar), that would recognize the importance of the U.S.-Brazil partnership and call on the U.S. Treasury Secretary to pursue negotiations concerning a bilateral tax treaty. Additionally, the Western Hemisphere Energy Compact (S. 587, Lugar)which would provide $6 million to expand U.S.-Brazil biofuels cooperation in FY2010was introduced on March 12, 2009. This report, which will be updated periodically, analyzes Brazils political, economic, and social conditions, and how those conditions affect its role in the region and its relationship with the United States.

Related Legislation:
• S.587
• H.RES.651
• H.RES.1254
• H.RES.125
• S.R.37
• S.R.74

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