Sen. Young Criticizes Refusal to Negotiate FTAs at Hearing
Sen. Todd Young, R-Ind., complained this week that Brazil is not in the Americas Partnership for Economic Prosperity, and that APEP, once its negotiations are completed, is unlikely to increase U.S. agricultural exports to member countries. Young, speaking at a Senate Foreign Relations Committee hearing on the future of U.S.-Brazil relations, said farmers in his state rely on market access-opening trade deals, and said the U.S. should try to convince Brazil to lower its tariff barriers on corn, soybeans and ethanol.
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The administration has "a number of efforts to support trade," Young said, "but the common theme is that market access is off the table."
Brian Nichols, the State Department's assistant secretary for western hemisphere affairs, said the visit by the U.S. trade representative early in the new Brazilian administration "reflects our desire to have a strong trade relationship and open up markets and opportunities for American farmers and businesses." He said another high-level State Department official will visit and follow up.
Nichols also suggested that Brazil was not invited into APEP because the administration didn't know who would lead the country after its election, and said "this is now an opportunity to engage with them." The goal is to sell more farm equipment, commodities, services and more to Brazil, he said.
Young said he questions "whether we’re going to have much success gaining substantial market share anywhere without offering reciprocal access to other countries. It just sort of stands to reason." He said he wishes the Biden administration would rethink its refusal to negotiate lower tariffs on both sides, something Young called "anti-trade."
In Nichols' opening remarks, he said both the U.S. and Brazilian governments "are interested in expanding trade and investment and developing supply chain resiliency." He noted that the U.S. is "by far" Brazil’s largest foreign investor, and Brazil is one of the top export markets for the U.S., receiving nearly $47 billion in U.S. goods in 2021.
Nichols also said USTR Katherine Tai’s trip earlier this month "reinforced our desire to grow bilateral trade, in line with our shared values." Jose Fernandez, the State Department's undersecretary for economic growth, energy and the environment, will "similarly engage with Brazilian government officials and private sector leaders later this month to discuss trade, critical minerals, agriculture, and clean energy," he said.
Sen. Pete Ricketts, R-Neb., also criticized Tai, saying that although she talked about labor and environmental issues when she was in Brazil, the administration has "little interest in negotiating far more ambitious trade agreements."
The committee's top Republican, Sen. James Risch of Idaho, questioned why the U.S. didn't punish Brazil after it allowed sanctioned Iranian ships to dock at its ports last month. He said he thinks it undermines the U.S. sanctions regimes if a sanctioned ship can dock with no consequences.
Nichols said the State Department does not preview new sanctions before they are announced. He noted that after U.S. diplomacy, all other Latin American countries declined the Iranian ship.