8 FOREIGN POLICY

Brazil and the U.S.: A lot to talk about

João Augusto de Castro Neves, Washington D.C. memoranda of understanding—ranging from aviation to food security—but also t first glance, -U.S. relations with U.S. recognition of cachaça as a seem to be booming. April began distinctly Brazilian product (it was classified with President ’s A as rum before), a decision that will probably first visit to the to meet with lower its tariffs. President Barack Obama. Then U.S. Secretary In Brasília, Secretary Clinton and Minister of State Hillary Clinton traveled to Brasilia Patriota conducted the Brazil-U.S. Global to talk to Rousseff and the Foreign Minister, Partnership Dialogue (GPD), a mechanism Antonio Patriota. A few days later U.S. for advancing cooperation and promoting Secretary of Defense Leon Panetta swung shared interests around the world. This year’s by Brasilia to chat with , the GPD addressed such areas as education, Defense Minister. science and technology, social inclusion, In Washington, President Rousseff’s human rights, and sustainable development. agenda was more concerned with business Later Secretary Panetta and Minister than politics. Her trip was intended to Amorim launched the U.S.-Brazil Defense underscore the importance of economic Cooperation Dialogue, which deals with partnership at a time when Brazil is trying science, innovation, technology transfer, to respond to the effects on its currency of humanitarian assistance and disaster the global financial crisis by implementing response, cooperation in support of African policies to make its own industry more nations, cybersecurity, and defense support competitive. She and President Obama to civilian authorities at major international gave particular attention to agreements events. on educational exchanges, innovation, and energy cooperation. Rousseff left Washington not only with a stack of [email protected]

May 2012 Ÿ The Brazilian Economy FOREIGN POLICY 9 Photo: Roberto Stuckert Filho / Presidência da República

President Dilma Rousseff greets President Barack Obama during their meeting at the White House.

The succession of high-level meetings misunderstandings related to Colombia, highlights the growing economic importance Honduras, Cuba, and Iran in the final years of of the relationship between the two largest President Lula’s administration, Washington economies in the Western Hemisphere. With and Brasília seem to have established a more a US$60 billion trade flow in 2011, the U.S. is consistent framework for consultation. This Brazil’s second leading trade partner; it is an does not necessarily imply a common view important market for manufactured goods as well as commodities. For the U.S., trade with Brazil produced one of its highest trade The succession of high- surpluses in 2011, US$11 billion. Investment level meetings highlights and tourism numbers are also impressive. Therefore, despite the lack of a major the growing economic trade deal, the economic engagement is importance of the promising. More broadly, these meetings underscore relationship between the the fact that the two countries share a two largest economies in mutuality of interests not only bilaterally but in the global arena as well. After the Western Hemisphere.

May 2012 Ÿ The Brazilian Economy 10 FOREIGN POLICY

Brazil could do a better Even if some of these considerations may hold elements of truth, ultimately they keep job explaining to the U.S. relations between the Western Hemisphere’s (and the world!) how it two most important democracies from reaching their productive potential. Brazil would behave as a global could do a better job explaining to the U.S. power with a permanent (and the world!) how it would behave as a global power with a permanent seat on the seat on the U.N. Security Security Council. The U.S. could also rethink Council. some of its arguments against that. For example, the fact that Brazil is not a on all issues, but it does convey the idea that nuclear power and that South America is not disagreements need not result in diplomatic a strategic region should count in favor of, squabbles. As a leading U.S. said not against, Brazil’s aspirations. If the region not long ago, Brazil and the U.S. need to is relatively calm, it is because Brazil and learn to agree to disagree on some issues. Argentina made a collective effort to end Nevertheless, despite these positive their economic and military rivalry in the developments, there is one issue where 1980s. That rapprochement also defused the Brazil and the U.S. have not yet reached an nuclear component of the rivalry, something understanding. Brazil’s diplomatic “holy that India and Pakistan have not been able grail” is a seat at the Security Council table, to do. and the U.S. is not likely to endorse its bid The U.S. decision to endorse India’s any time soon. According to foreign policy bid and ignore Brazil’s sends a perverse specialists in Washington, Brazil does not message: It rewards a country that has deserve a place in the top echelons of snubbed every major nonproliferation the U.N. because it is not a nuclear power regime, while punishing a country that has and is unwilling to share the burden of willingly adhered to all those regimes. leadership. Another argument is that the The question of whether Brazil deserves a U.S. does not endorse Brazil’s bid—as it did place on the Security Council and whether India’s—because South America is not very it is capable of bearing the burden of global relevant to U.S. strategy. Finally, there is the leadership is another story. It will certainly argument that such an endorsement could give Brazil and the U.S. a lot to talk about at hurt U.S. interests with regional allies Mexico any of the many strategic dialogue forums and Colombia. that have been created.

May 2012 Ÿ The Brazilian Economy