Why the United States and Brazil will pursue a more productive bilateral relationship

Paulo Sotero  – Wilson Center/The Huffington Post, 11/09/2012

The growing presence of Brazilian global companies in the United Stated, complementing traditionally strong American investments in Brazil, has created a two-way street where common interests are more visible and pressure both governments to recognize the benefits of working together or risk paying a political price for not doing so.

Converging economic interests and similar challenges are emerging as the principal driver of United States-Brazil relations in the years ahead. A reelected President Barack Obama and President Dilma Rousseff, at the half mark of her government, are confronted with daunting tasks. Both need to significantly improve the economic performance of their countries in the face of political major obstacles at home, and an adverse economic outlook abroad. In both countries, sustainable growth will require investment in infrastructure, education and innovation more than consumption. How they respond will determine the success or failure of their administrations. It will also affect the two countries’ bilateral relationship and their regional and global standing.

After four years of anemic recovery and a victory on November 6th without a clear political mandate,, President Obama has now to find a path of economic growth that reduces unemployment while avoiding the pitfalls of a fragile fiscal and financial situation, which, if mishandled, could easily throw the United States and the world economy back into recession.

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