By Karen E. Thuermer, AJOT Although economic indicators suggest that Brazil’s economy may be heading for a recession, this powerhouse to the south is positioning itself to become an indispensible source for U.S. exporters. Topping the list of products, says the U.S. Department of Commerce, are civilian aircraft, organic chemicals, computer accessories, plastic materials, telecommunications, fertilizers, semiconductors, coal, and pharmaceutical preparations. Brazil was the United States’ 8th largest goods export market in 2010. The U.S. Trade Representative (USTR) reports that U.S. goods exports to Brazil in 2010, the latest year for which figures are available, were $35.4 billion, up 35.5 percent ($9.3 billion) from 2009, and up 336 percent from 1994 (the year prior to Uruguay Round). U.S. exports to Brazil accounted for 2.8 percent of overall U.S. exports in 2010. In fact, Brazil was the United States’s 10th largest goods trading partner with $59 billion in total (two ways) goods trade during 2010. The opportunities are not expected to abate even if Brazil faces a slow down. For one, an agreement on Trade and Economic Cooperation, to enhance cooperation on trade and investment between the United States and Brazil was signed in March 2011. The agreement expands direct trade and investment relationship by providing a framework to deepen cooperation on a number of issues of mutual concern, including innovation, trade facilitation and technical barriers to trade. According to the USTR, the agreement represents a shared commitment to broad-based economic growth, and will become a foundation for cooperation in other trade fora. More immediate are developments taking place in Brazil Brazil plans to spend billions in infrastructure development of its roads, railroads, ports, and airports as well as in stadiums as it prepares for the 2016 Olympics in 2016. In the years leading up to the Olympics, Brazil will also host other international sporting events, including the 2011 World Military Games, the 2011-2012 Pan-American Maccabi Games, the 2013 soccer Confederations Cup, and the 2014 soccer World Cup. The Brazilian government expects to invest $106 billion in the preparations for these events. These investments, which will include outlays for infrastructure, construction, transportation systems, port improvements, public security, and airport infrastructure upgrades, will present significant commercial opportunities for U.S. companies. Most of the major infrastructure upgrades will be carried out through Public-Private Partnerships under Brazil’s Growth Acceleration Program. Benefiting U.S. exporters is the fact Brazil has a large and diversified economy, despite that nation’s uneven income distribution, poor public education, significant imbalance of market concentration, and an informal economy that hinders tax collection and keeps economic growth from reaching its full potential. In fact, the World Bank ranks Brazil 127 out of 183 economies in the world in terms of ease of doing business. GE Example American companies are helping to instill that growth by foreign direct investment in Brazil. General Electric (GE), for example, operates a facility in Petrópolis, a small town near Rio de Janeiro to manufacture aircraft engines. The facility serves airline customers in Latin America, the United States and Europe. GE initially invested in Celma as a minority shareholder and subsequently purchased the company, making it an integral member of GE’s global aircraft engine maintenance, repair and overhaul system. In this way, GE Celma could expand its services to become a stronger international competitor, providing responsive, world-class customer solutions. As the largest services exporter in Brazil, and one of the top taxpayers in the region, GE Celma has worked with the government to increase the speed of import and export processes and encourage cost reductions. These actions have helped foster Brazil’s competitiveness in the global marketplace, where there is often a heavy