The United States recorded a service surplus of $18 billion with Brazil in 2019, down 11.6% from 2018. The project will then focus on a study on fair and fair trade in Brazil and will hold a second forum in December 2018. At the same time, Brazil is negotiating with India and South Africa, with which it is the largest economic bloc of the southern countries within the IBSA, creating tensions within Mercosur. The EU encourages Brazil to remove tariff and non-tariff barriers and promote a stable and more open regulatory environment for European investors and traders. The United States engages with Brazil on trade and investment issues through a series of initiatives. The U.S. trade surplus with Brazil was $12.0 billion in 2019, an increase of 46.6% ($3.8 billion) over 2018. In 2011, the United States and Brazil signed the Trade and Economic Cooperation Agreement to improve trade and investment cooperation between the two largest economies in the Western Hemisphere. The agreement expands our direct trade and investment relations by providing a framework for deepening cooperation on a number of issues of mutual interest, including innovation, trade facilitation and technical barriers to trade. Brazil negotiates a free trade agreement with the EU under the Mercosur Group. Brazil is Latin America`s largest economy and its trade with the EU accounts for 30.8% of the EU`s total trade with Latin America in 2016. In many cases, these trade agreements are being pursued as part of the administration`s policy to expand agrofuel (ethanol) markets.
Mercosur, in particular, is actively involved in the search for negotiations with India, Central America, the Southern African Customs Union and Algeria. Brazil is one of the countries that, according to the latest European Commission report, has resorted to a large number of potentially restrictive measures. While Brazil was one of the main Latin American architects of the defeat of the free trade agreement, its economic policy has, in many cases, been in favour of signing free trade agreements. Given its dominant position in Mercosur and on the continent in general, it has focused its efforts on securing such agreements in the institutional for a of which it is a member. The EU is negotiating a free trade agreement with Brazil as part of the EU negotiations on the association agreement with Mercosur countries (including Argentina, Uruguay and Paraguay). In March 2011, Brazil signed a Trade and Economic Cooperation Agreement (ATEC) that many analysts see as a first step towards a free trade agreement. Since 2010, Brazil has also insisted on a free trade agreement with Mexico.