“The Trump administration should move quickly to advance goals that would be welcomed by the Bolsonaro government.”
Florida Senator, Marco Rubio

Jair Bolsonaro’s inauguration as President of Brazil on New Year’s Day has marked a radical departure from its previous leftist, anti-American governments, ushering a promising future for the relationship between Brazil and the US. With the Bolsonaro government having indicated it seeks an even closer security and economic relationship with the United States, American politicians are starting to raise awareness about this historic opportunity to bring both nations closer together. Recently, Florida Senator Marco Rubio published an opinion piece titled “US Should Go Big on Brazil”, in which he describes how an improved strategic alliance will benefit both nations, ensuring continued peace, expanded prosperity and stability for the Western Hemisphere. This endorsement significantly contributes to the growing, internal, political pressure to engage with the Bolsonaro administration and strengthen their economic relationship. Developing this economic partnership will help boost the perception of Brazil as one of the most attractive markets in the world.

In his opinion piece, Rubio urges the Trump administration to move quickly to advance goals that would be welcomed by the Bolsonaro government, such as supporting Brazil’s accession to the Organization for Economic Cooperation and Development (OECD). “By supporting Brazil’s accession to the OECD, the United States can help shape the country’s future market-based plans and stabilize the economy. As the second largest economy in the Western Hemisphere and the eighth largest in the world, Brazil currently has Key Partner Status at the OECD. But it has previously lacked formal US support because of a desire by past Brazilian leadership to align more closely with the developing world and support policies at odds with core OECD principles.”

In May of 2017, Brazil filed a request to become a member of the OECD. However, after a series of corruption scandals rocked the Brazilian government, the US objected to the request in March 2018. With the election of Bolsonaro, it is believed that the US could now support Brazil’s request, given the overall intention in the Republican party to support trade policies that will help grow the commercial relationship of the two largest economies on the continent.

According to his manifesto, Bolsonaro plans on creating a new era for Brazil, where trade agreements with important global players will become a reality. Bolsonaro believes that facilitating trade will be one of the most effective ways to promote the country’s long-term economic growth.

In Rubio’s opinion, if the Bolsonaro government is ready to move Brazil into its rightful place as a modernizing and rising economic power in the OECD, US support of this would demonstrate its commitment to economic engagement with Brazil and responsible and sustainable economic development more broadly in Latin America.

WHAT WOULD JOINING THE OECD MEAN FOR BRAZIL?

• Being accepted as an OECD member would improve Brazil’s international image and could even lead to the reduction of rates for loans contracted by the federal administration.
• Brazil would become the largest emerging economy in the group, and the third Latin American nation admitted to the group after Mexico and Chile, as well as the first of the BRICS to become an OECD member.
• An OECD membership would further shape the country’s economic reform agenda and set Brazil’s future on a clear path toward a market-oriented economy and private sector-led development. The OECD’s standards for transparency and good governance have spurred growth and development across the world and would largely benefit Brazil’s economy.
• US support would strengthen the hand of the reformers and benefit US companies that view Brazil as an increasingly important market, while Brazil’s accession could strengthen US economic ties within the Western Hemisphere.
• This would foster alignment and convergence on diverse economic policies that promote global investment, trade, and a business-friendly environment.

With more than $100 billion in trade in services and goods in 2017, Brazil is already the US’ 12th largest trading partner, and more engagement between these two countries would lead to an increasingly fruitful relationship. Rubio’s views are aligned with those of many other politicians, such as John Bolton, Trump’s national security advisor, who recently celebrated the election of a “like-minded” leader in Brazil.

One Brazilian industry that stands to reap huge benefits from a better trade relationship with the US is agriculture. US agricultural imports for 2019 are projected at US$ 141.5 billion. Set to become the world’s largest food exporter by 2020, the agriculture industry plays a major role in the Brazilian economy, with Brazilian agriculture and agribusiness having contributed 23.5 percent to the country’s gross domestic product in 2017, the highest in 13 years, according to the Brazilian Confederation of Agriculture and Livestock (CNA).

At Primal, we decided to take advantage of Brazil’s potential early on and chose Northeastern Brazil as the place to start the largest commercial neem plantation in the world. Through 100% sustainable and regenerative agriculture techniques, our project is now a reality that is set to revolutionize commercial agriculture and play an integral role as the world looks towards Brazil to satisfy growing global food demand. Producing higher yields while also teaching the value of sustainable agriculture in the community and protecting the surrounding ecosystems, we are building the agricultural model of the future and guaranteeing safe returns for our investors.

A better relationship between the US and Brazil will eventually lead to better business opportunities and contribute to the exposure and growth of our agricultural project, allowing us to further drive sustainability throughout the world. Helping make sustainable agriculture the rule, instead of the exception, our project is just as much a movement, as it is a business.