The United States engages with Brazil on trade and investment issues through a series of initiatives. Unlike a free trade agreement (FTA), there is no need for congressional approval, which can be a long-term process that provides no certainty about its approval. By describing the agreement as a contract between the parties, the government avoids congressional participation. The ceremony marked the end of the activities of the delegation led by O`Brien. During these events, Brazil and the United States signed an agreement on trade facilitation, in which Brazil will create barriers for the Chinese company Huawei on 5G networks. Brazilian Economy Minister Paulo Guedes said the agreement came at the right time for Brazil, which will try to deregulate and liberalize many sectors of its economy, boost bilateral trade and help bring the legal framework closer together. The government has not yet released details of the agreement with Brazil, but it appears even smaller than the agreements signed with China and Japan. It focuses on facilitating trade or harmonizing the methods used by the two governments to process goods crossing their borders, with the aim of facilitating trade between countries for businesses. It will also reduce regulatory barriers and strengthen rules to root out corruption. “There is a deep understanding throughout America that the American people enjoy a series of deeper and closer relationships with all our friends in the Western Hemisphere and South America, and it is not possible to have strong, capable and deep relationships without an anchor like Brazil,” said U.S.
Secretary of State Mike Pompeo. With regard to trade facilitation, the Protocol contains important provisions on preliminary rulings, sanctions, a single window of opportunity, an approved economic operator and automation that go well beyond the basis of the WTO trade facilitation agreement. With respect to good regulatory practices, this is the first subsequent agreement to use the CCA framework as defined in the USMCA. With regard to the fight against corruption, the protocol further expands the framework for both countries to include provisions on money laundering, confiscation of proceeds of corruption, denial of a safe haven for foreign officials who practice corruption and additional protection for whistleblowers.