Brazil has a privileged international situation. First of all because of its geography: it is the biggest Latin American country, owning a territory that occupies nearly half (47.3%) of South America. Secondly, it is a nation that is in continual development, concentrating efforts to solve social, economic and trade issues.

Although it is not among the hegemonic countries, Brazil always showed a strong political performance: with stronger and more consistent programs, it is capable of influencing major international decisions, even when dealing with more developed nations. This power is possible thanks to the country's consolidated democracy and the emerging market.

With good relations world-wide, Brazil is always searching for new possibilities. Old ties are cultivated successfully and several new ones have been created. As a result, Brazil has shown a strong and balanced foreign trade.

Foreign investments in the country are increasingly diversified and come from countries such as the United States, Canada, the European Union, Japan, Korea, Hong Kong, Taiwan, Chile, and South Africa. Factors such as the stabilization of the economy, privatization of State companies, the opening of monopolies, and import tariff reductions have attracted investors and increased the interest the countries have to make trade agreements with Brazil.

Get to know, below, a few of the international treaties Brazil has made with other countries.

Trade

Brazil is a member of the WTO (World Trade Organization that replaced the GATT (General Agreement on Tariffs and Trade) by virtue of the Marrakech Agreement signed in 1995. Brazil was one of the signatory States of the Bretton Woods Agreement (which created the International Monetary Fund, IMF, and the International Bank for Reconstruction and Development, IBRD); it is a founding member and a shareholder of the Interamerican Development Bank, IDB, and has State-observer status with the European Economic Community, maintaining a permanent Representation in Brussels. Brazil signed bilateral agreements with many countries.

Intellectual Property

Brazil was one of the founders of the Paris Union, and has been a member of the World Intellectual Property Organization, WIPO, since 1975. It is a signatory of the Convention of the Paris Union for the Protection of Industrial Property and also signatory of the Patent Cooperation Treaty (PCT) signed in Washington in 1970, which was ratified and enacted as an internal Brazilian law. The 1971 Strasbourg Agreement referring to the International Patent Classification is effective in Brazil as an internal law. With regard to the bilateral relations as to industrial property, Brazil has signed several agreements, such as the agreement with Italy (1963), regarding copyrights.

Taxes

Brazil signed, ratified and transformed several bilateral international agreements into internal laws "in order to avoid the double taxation of income (international double taxation agreements). The agreements with the following countries are noteworthy: Argentina (1982), United States of America (1994) and Finland (1996). It has also signed international income tax exemption treaties for maritime navigation and airline companies with nine countries, such South Africa and United Kingdom. To avoid double taxation, Brazil applies reduced rates. Brazil entered into a complementary agreement with Cuba on 05/27/1998, with the objective of developing technical cooperation projects and actions related to tax management and customs management.

Latin America

Brazil was one of the main agents instrumental in establishing a free trade zone in Latin America. It was one of the founders of the Latin American Free Trade Association, LAFTA, established under the Treaty of Montevideo on February 16, 1960. Brazil, Argentina, Bolivia, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela signed this Treaty. In 1980 these States created the American Integration Association (ALADI), under the Montevideo Treaty of August 12, 1980. Brazil and Argentina signed important bilateral treaties, as the Integration, Development Cooperation Treaty, signed in Buenos Aires on November 29, 1988, for the swift creation of a bilateral common market area. Brazil also signed the Economic Cooperation Agreement (ECA), with Venezuela (1994) and Uruguay (1997). It signed multilateral economic agreements with Argentina, Chile, Mexico, Uruguay and Venezuela, in 1995.

MERCOSUR

The MERCOSUR Treaty, signed in Asuncion, Paraguay, in 1991, proposes the constitution of a common market between Brazil, Argentina, Uruguay and Paraguay, which entails:

a) the free circulation of goods, services and production factors among the nation members, by eliminating tariffs barriers between the countries;

b) the establishment of a common external tariff, and the adoption of a common business policy within its regional and international economic and commercial relationship;

c) the coordination of a sectorial macroeconomics policies among the member nations in foreign trade, agricultural, industrial, fiscal, monetary exchange, capital, service, customs, transportation and communication matters, as well as any other issue that may be agreed upon;

d) the commitment of the State members to harmonize their legislation aiming at the complete integration process.