Political Economy of Trade between East Asia and Brazil: strategies, challenges, and limitations
China, South Korea, and Japan have been among Brazil’s top 10 trade partners over the last 10 years. China became the major trade partner to Brazil, and Japan lost the position as number one East Asia partner to Brazil. Part of the Brazil’s economy growing was due the increasing exports to China, when China demanded raw material and food to its needs.
Bilateral trade had growing from 1995 to 2013, and it has been diminishing since 2013, as a tendency. Bilateral trade among these countries and Brazil are complementary. East Asia has exported manufacturing products to Brazil whilst Brazil has exported commodities to East Asia, as major products.
However, not just Brazil but other countries in Latin America have had complementary trade to East Asia, and some of them have signed free trade agreements with East Asia countries. Hence, one of the challenges to Brazil continues growing exports to that region have been the no existence of free trade agreements with those countries. A limitation to Brazil trade is the geographic distance from East Asia, so the country cannot be part of supply chains to manufacturing products. These two causes have limited to achieve a higher value of bilateral trade.
This paper aims to analyze and compare the structure of bilateral trade between Brazil and the three East Asia, and trade policies to study government and private sector major strategies, challenges, and limitations for trade.