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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 74 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
S. RES. 74

 Expressing the sense of the Senate on the importance of strengthening 
bilateral relations in general, and investment relations specifically, 
                 between the United States and Brazil.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 12, 2009

Mr. Lugar submitted the following resolution; which was referred to the 
                     Committee on Foreign Relations

_______________________________________________________________________

                               RESOLUTION

 
 Expressing the sense of the Senate on the importance of strengthening 
bilateral relations in general, and investment relations specifically, 
                 between the United States and Brazil.

Whereas the United States and Brazil enjoy a longstanding economic partnership 
        sustained by robust trade, investment, and energy cooperation;
Whereas investment in and by Brazil promotes economic growth, generates greater 
        wealth and employment, strengthens the manufacturing and services 
        sectors, and enhances research, technology, and productivity;
Whereas the United States is the largest direct investor abroad, with total 
        world-wide investments of $2,800,000,000,000 in 2007;
Whereas the United States has historically been the largest direct investor in 
        Brazil, investing a total of $41,600,000,000 in 2007;
Whereas the sound economic policy of the Government of Brazil was given an 
        investment-grade rating by 2 of the 3 major investment rating agencies 
        in 2008;
Whereas the United States is the largest recipient of direct investment in the 
        world, with total foreign direct investments of $2,100,000,000,000 in 
        2007;
Whereas the United States receives direct investment from Brazil, including a 
        total of $1,400,000,000 in 2007;
Whereas Brazil is the only country with a gross national product of more than 
        $1,000,000,000,000 with which the United States does not have a 
        bilateral tax treaty;
Whereas Brazil is the 4th largest investor in United States Treasury securities, 
        which are important to the health of the United States economy;
Whereas Brazil ranked 3rd among other countries in the number of corporations 
        listed on the New York Stock Exchange in 2008, with 31 corporations 
        listed;
Whereas a bilateral tax treaty between the United States and Brazil would 
        enhance the partnerships between investors in the United States and 
        Brazil and benefit small- and medium-sized enterprises in both the 
        United States and Brazil;
Whereas a bilateral tax treaty between Brazil and the United States would 
        promote a greater flow of investment between Brazil and the United 
        States by creating the certainty that comes with a commitment to reduce 
        taxation and eliminate double taxation;
Whereas the Brazil-U.S. Business Council and the U.S.-Brazil CEO Forum have 
        worked to advance a bilateral tax treaty between the United States and 
        Brazil;
Whereas the Senate intends to closely monitor the progress on treaty 
        negotiations and hold a periodic dialogue with officers of the 
        Department of the Treasury; and
Whereas the United States and Brazil will greatly benefit from deeper political 
        and economic ties: Now, therefore, be it
    Resolved, That it is the sense of the Senate that--
            (1) the United States Government and the Government of 
        Brazil should continue to develop their partnership; and
            (2) the Secretary of the Treasury should pursue 
        negotiations with officials of the Government of Brazil for a 
        bilateral tax treaty that--
                    (A) is consistent with the existing tax treaty 
                practices of the United States Government; and
                    (B) reflects modern, internationally recognized tax 
                policy principles.
                                 <all>
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