U.S. Trade With Brazil: A Win-Win

Continuing to update my trade data alphabetically, here’s a graph depicting the trade situation between the U.S. and Brazil. 

trade-with-brazil

A few observations are in order:

  1. Brazil is only slightly less densely populated than the U.S.  In such a situation, my the theory I put forth in Five Short Blasts would predict something close to a balance of trade.  In fact, that’s what we have.  Although the U.S. swung to a trade deficit from 2002 through 2006, we have since returned to a small trade surplus, thanks to surging exports of manufactured goods to Brazil, off-setting a rise in oil & gas imports. 
  2. Once again, as was the case with Australia (see my previous post) the U.S. has a trade deficit with Brazil in every category of natural resources:  food, oil and gas, metals & minerals, and lumber.  If I were a Brazilian, I’m not sure I’d be happy with trading away our natural resources for manufactured products.  More evidence that the U.S. could benefit by stabilizing and even reducing its population. 
  3. This is a case where free trade (or a close approximation thereof) works.  There’s no need for any protectionist measures on either’s part. 

Next up:  Canada.

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