In this context, it is important to note that Brazil and the United States will be the final set of FTAA co-presidents in the period immediately prior to the conclusion of the negotiations in 2005. There will be no FTAA unless the United States and Brazil are fully engaged in this process. The United States is Brazil's number one export market. This year Brazil should run a trade surplus with the United States after six years of a U.S. trade surplus with Brazil. From 1979 to 1994, Brazil had a trade surplus with the United States.
Brazil is the twelfth largest market for U.S. exporters.
Despite this growing trade and investment both sides would like to see the other further open their markets. Brazil would like increased market access for orange juice, footwear, citrus and steel. Despite these issues, bilateral trade tensions have declined dramatically in the past few years. Although the initial privatizations were well done, there is concern among U.S. investors that further privatization projects have been put on hold as well as concern about state-level involvement in privatized industries. This is yet another example of the importance of the strong and maturing relationship the two countries have been able to develop.