From the Overview: "The United States and Brazil have enjoyed a strong economic relationship for many years. In 2019, Brazil ranked second among the United States' Latin American trading partners in goods and 19th among all U.S. trading partners. In March 2020, President Donald Trump and President Jair Bolsonaro announced plans to deepen the bilateral trade relationship and potentially move toward free trade agreement (FTA) negotiations in the years to come. Those discussions led to a 'mini trade deal,' signed in October 2020 to facilitate trade, improve regulatory cooperation, and strengthen anti-corruption efforts. President Bolsonaro, who entered into office in January 2019, is pursuing free-market reforms during his four-year term, which ends in December 2022. He has taken steps to cooperate with the United States on issues of mutual interest. Brazil's long-term trade strategy, however, is bound by its status as a party to the 'Mercado Común del Sur' (MERCOSUR), a common market trade arrangement with Argentina, Paraguay and Uruguay. [...] The Trump Administration's position is that the United States and Brazil have numerous reasons to build upon prior progress made in the economic relationship. Some policymakers state that strengthening trade ties with Brazil will help bolster U.S. interests in the region given China's increasing presence. As Latin America faces increasing uncertainty amid global power shifts and external shocks, there also may be other strategic and economic reasons to strengthen trade ties."
CRS In Focus, IF10447
Congressional Research Service: https://crsreports.congress.gov/