Global Economic Integration Brazil - Essay Example

(Assignment) Global Economic Integration Brazil Introduction: The concept of Global economic integration is not a modern phenomenon. Trading activities were taking place even in the ancient times. Global Economic integration signifies the alliance in trade between different countries partially or fully getting rid of the chains of customs tariffs on trade within the borders of each state. The main aim of increasing the trade helps the distributors and consumers as the prices being lowered once there is no requirement to pay the custom duties within the specific integrated states.

For the recent years, the economic integration between Brazil and other nations has been flourishing and still it is on the rise. Many factors have driven up the integration and globalization of the states. Some of the basic factors were; (i) development in the technology of communication and techniques of transportations which in turn reduced the cost of transporting goods and services, (ii) the mind set of the society has changed generally to take advantage in utilizing services of the growing economic integration and globalization, (iii) the policies of the state have considerably influenced the nature and pace of economic integration.

Global Economic Integration of Brazil The trade policy in Brazil in the late 20th century is a debated question; whether the importance was given to regional trade arrangements or international trade and economic integration. However, as Manzetti points out, there had been attempts made in the Latin American region for integration of trade since late 1950s; and thus a new phase for Argentine-Brazilian economic integration was created. The most important trade initiative of the present was a regional trade initiative in the Common Market of South (Mercosul).

Brazil gives reasonable importance to economic development in the country. But the social conditions of the state pull back from getting into the track. The United Nations development programme, in the Human Development Report in 2002 places Brazil in the 73rd place in the social development ranking. Later on the state experienced the force of globalization. There were invasions too like Argentina exploiting the Brazilian economy which caused financial crisis in the state. When there was a prolonged excavation of foreign investors into the state, it could not match with the Brazil’s economic reality.

Though the country has a long history if international trade integration, Brazilians feel to see their country as an isolated entity. The social and economic policies reinforced the economic isolation of Brazil. The state had expanded the economy as the food production increased and became the world’s most leading supplier of coffee in the early 20th century. Mercosur and Brazil Mercosur refers to the Southern Common Market often called as the Common Market of the Southern Cone, which in Portuguese known as ‘Mercosul’.

The mutual cooperation of Brazil and Argentina in the 1980s caused the Paraguay and Uruguay to join them in signing the Treaty of Asuncion in March 1991. The main purpose was to balance the market and the customs union among them and to follow a common tariff on trade within the states. Later the treaty created alliances and made Mercosur a legal entity under international law and constructed the customs union in 1995. As the common tariff had many national disadvantages the Mercosur was slow and uncertain.

Brazil welcomed the relationship between the Mercosur countries though these countries had difference in integration of trade. A healthy economic integration and strong trade relationships have been maintained with Mercosur. Brazil-China Trade Brazil and China have been promising market leaders over the year, though they had differences. In number trade agreements between the country in the recent years, Brazil agreed to provide iron ore, a large produce of the state to China. China has agreed to supply raw materials for the development of Brazil.

A good example for the economic integration of the states is the latest $1.5billion Chine-Brazil deal, which will result in the development of both the countries. Brazil-United States trade In the efforts of promoting trade liberalization, the United States and Brazil have developed productive relationship. Being the largest country of Latin America, Brazil has formulated regional and multinational trade policies. Event then some disputes between the trade-transactions of two countries. The United States is concerned about the high rate of average tariff over the industrial goods from Brazil.

As Hornbeck notes, some of the other issues still remain with them like, intellectual property rights enforcement, services trade, government procurement and investment rules, etc. As well as the common external tariff (CET) creates a barrier to US agricultural exports and computer equipments. In the same way Brazil has expressed their concerns over US policies like the calculation of antidumping margins and Byrd Amendment. Conclusion Evidently, in the recent years the global economic integration of Brazil with countries like China, the United States and the Mercosur has been healthy.

There have been steps taken to increase the trade relationships with these countries. The trade plays an important role in the economic integration. The globalization to some extent helped Brazil in the international market for its economic development. Brazil by utilizing their economic resources attains the most use of global economic integration. Works Cited Hornbeck, J. F. “Brazilian Trade Policy and the United States”. CRS Report for Congress, Feb 3, 2006. Manzetti,Luigi. “Argentine-Brazilian Economic Integration: An Early Appraisal”.

Latin American Research Review, 1990. 25: (3), 109-140. United Nations Development Program. “Human Development Report 2002. Depending Democracy in a Fragmented world”. New York: Oxford University Press, 2002.