Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-06-15
j. S.-BRAZIL TRADE
SITUATION IS HAPPY
Highest Tariff Bill Fails to
Impair Relations With
Rio De Janeiro.
BY FREDERIC WILLIAM VILE.

nj FhEDEhIC WILLIAM VILE
Amid the plessantries which have
marked the visit 10 Washington of
President-elect DR.. Julio Prestes of
Brazil, the unique character of Brazil
ian-American trade came In for special
consideration at the very moment Dr.
Prestes was the Nations guest in the
Capital. Congress was enacting the
highest American tariff law ever
adopted But the Hawley-Smoot bill
leaves unaffected the circumstance that
no less than 95 per cent, or practically
the whole Of Brazils exports to the
United States, enters this country free
of duty
The statesman from Rio de Janeiro
was in Washington while the hue and
cry about Americas harsh treatment
of foreign produce were making the
political welkin ring. DR.. Prestes was
able, like Ajax, to defy all lightning of
that sort and to point to the square
deal which BraZil's coffee, hides and
skins, Cacao and rubber encounter when
they reach Yankee customs houses. The
President-elect was able TO reflect as
the Senate finally approved the pro-
posed revenue law, that the tariff is
no barrier TO his country's vast trade
with the colossus Of the North. The
steadfast friendship that has character
lied Brazilian-American relations since
their inception finds a gratifying
counterpart in the wholesome con-
stancy which marks the expansion Of
commercial intercourse between the
two nations.
Coffee Market Constant.
Rightfully referred to as the coffee
center of the world, Brazil finds a
constant market In the United States
for her chief product. OF her total
exports to the world, coffee accounts
for approximately II per cent. OF her
exports to the United States, this
product assumes even greater signif1-
canoe, accounting for IS per cent of
would provide each tnhabitant of the
continental United States with more
than $50 cups Of coffee annually. Cof-
fee Is the one product responsible for
Brazil's visible favorable balance Of
trade with the world since 1921 and
for her continuous favorable balance
with the United States. Brazilian per
capita imports from this country dur
ing 1929 were approximately $2,7s.
Brazilian export to the United States
are small in relative Importance, the
closest being hides, skins and cacao,
each of which accounted for 38 per
cent Of the 1928 total. Others more
important than their volumes imply
are rubber, dried skins and manganese,
two Of which are products 1ndispen-
sable to American industry and which
must be wholly purchased abroad.
Relatively, the United States occupies
the first position IN Brazil's foreign
trade. Not since 1928 has Great Brit
ain, our nearest competitor, surpassed
this country In merchandise sold to
Brazil, while our position as Brazil's
best customer antedates the present
century.
Chief of the commodities purchased
from the United States are: Auto
mobiles, petroleum products, machinery,
iron and steel products, and foodstuffs.
Automobiles and parts, both passenger
and commercial, account for approx
mately IS per cent of the total and
petroleum products for 10 per cent.
The present time finds Brazil in
state of relative economic depression.
AS foreign trade in general Is now in
decline throughout the rest of the
world, it is likewise In Brazil. The
break of the world coffee market m the
latter part OF 1929 was the largest local
contributive factor responsible for the
present situation. Trade data for the
first four months Of 1880 when COM
pared with those for t,M correspond
ing period of 1929. show american ex-
ports to Brazil as having declined SO
per cent and imports into the United
States lower by IS per cent. These are
decreases in value, accounted for in
part by the lower price levels now in
effect. Compared with other nations, the
United States is maintaining her rela-
tive position.
American Investments Significant.
Significant, also, in American Brazil
ian commercial relations are the in
creased investments of American capt.
tai in Brazilian enterprise.
These investments have entered Bra
I'll, both through the medium of loans
and of private industrial undertaking.
This latter field at present is Of great
importance. Chief of these undertake
ings are those engaged in the construc-
ton and operation of public utilities,
such as electric light and power, trans
portation and communication organiZa-
tions. Symbolical of the constant
strengthening Of Brazilian American
friendship and expanding commercial
interchange was the recent Inauguration
of air mail and passenger services by
American capital, which now place Rio
de Janeiro within six days Of the United
States. 1t is another evidence of the
faith held for the future of Brazilian
American commerce.
(Copyrisht. 1900
Savannah Has S4,71S.