U.S. Shuffles Trade Partners | Mexico #1, Brazil in Spotlight

As of 2019, Mexico came out on top as the number one U.S. trade partner according to the Census Bureau. This bump came soon after the Port of Laredo, Texas temporarily became the largest port of entry in the United States. Mexico pulls a tight race as the U.S.’s number two trade partner for exports and for imports.

China slunk into third place behind Canada for total trade. However, China continues to dominate U.S. imports.

Economic pressure from the U.S., especially after the President’s announcement of 301 duties on the remaining $300 billion worth of Chinese goods, could further the trend of sending goods to be finished in Vietnam. In 2019, Vietnam jumped to 14th place in total trade with the U.S.

Meanwhile, the President designated Brazil as a Major Non-NATO Ally on July 31st. The status of Major Non-NATO Ally gives Brazil preferential treatment in defense contracts, arms sale agreements, and military services.

Brazil is the second South American country to be designated a Major Non-NATO Ally, Argentina being the first. The designation is a move towards coordinated military operations between the U.S. and Brazil.

Other countries that share the preferential status include Israel, South Korea, Japan, Pakistan, and Afghanistan. Trade-wise, Brazil has entered a privileged market for defense articles (including defense intelligence). This deal means that Brazil will be purchasing more weapons and intelligence from the U.S.

The move indicates a U.S. interest in dominating defense supply in the South American region. The U.S. continues to compete with Russia as the number one supplier of defense articles to India, a country with the world’s third largest armed forces. Russia continues to be India’s top defense article supplier.

As of 2019, Brazil is the thirteenth largest trade partner with the U.S. in terms of total trade.

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