Due to its size of 8.512.000 km² and a population of 175,5 million inhabitants, brazil presents itself as the significant market to various industrial sectors. It is known as the world's 17th largest economy.
Another reason why Brazil is considered to be most attractive foreign investment region is due to its relatively liberal trading and investment regime. Brazil represents both a significant and important market for foreign especially EU exporters and investors, as well as a significant source of imports. (Europa, Bilateral trade relations, 2005)
The EU is the main trading partner of Brazil; similarly, Brazil represents the EU's main trading partner in Latin America, which makes it the 11th trading partner worldwide. (Europa, Bilateral trade relations, 2005)
The United States’ trade deficit with Brazil was around $6.7 billion in 2003, which represents an increase of $3.3 billion from the last years $3.4 billion in 2002. On the other hand, U.S. goods exports in 2003 totaled to $11.2 billion, which is a decrease of 9.4 percent from the previous years.
Corresponding, imports of U.S. from Brazil were around $17.9 billion, which is an increase in 13.3 percent. Making Brazil the 15Th largest export market for U.S. goods. (FOREIGN TRADE BARRIERS, 2004)
Many of the foreign policy makers usually promote trade liberalization and economy openness as a tool to increase the standards of living and subsequently to increase the welfare in many of the developing countries.
Brazil, similarly, like Latin American economies, adopted these recommendations and thus accomplished drastic trade liberalization during much of 1988 to 1994. These reforms then decreased the average tariff level from around 60 percent to around 15 percent in 1998. It also altered the very structure of protection across its various industries..............
