III 

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; 


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•SRES 74 IS 

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; 


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•SRES 74 IS 

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 

1 Resolved, That it is the sense of the Senate that— 

2 (1) the United States Government and the Gov3 ernment of Brazil should continue to develop their 

4 partnership; and 

5 (2) the Secretary of the Treasury should pursue 

6 negotiations with officials of the Government of 

7 Brazil for a bilateral tax treaty that— 

8 (A) is consistent with the existing tax trea9 ty practices of the United States Government; 

10 and 

11 (B) reflects modern, internationally recog12 nized tax policy principles. 

Æ 


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