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Brazil: Background and U.S. Relations

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Brazil: Background and U.S. Relations
May 10, 2022
Occupying almost half of South America, Brazil is the fifth-largest and sixth-most-populous
country in the world. Given its size and tremendous natural resources, Brazil has long had the
Peter J. Meyer
potential to become a world power and periodically has been the focal point of U.S. policy in
Specialist in Latin
Latin America. However, uneven economic performance and political instability have hindered
American and Canadian
Brazil’s rise to international prominence. The country experienced a period of strong economic
Affairs
growth and increased international influence during the first decade of the 21st century, but it has

struggled with a series of economic, political, security, and health crises since 2014. This
domestic turbulence contributed to the controversial impeachment and removal from office of

President Dilma Rousseff (2011-2016). It also discredited much of Brazil’s political class, paving
the way for right-wing populist Jair Bolsonaro to win the presidency in 2018.
Since taking office in January 2019, President Bolsonaro has implemented some economic and regulatory reforms favored by
international investors and Brazilian businesses and has proposed measures to ease firearms regulations and promote
development in the Brazilian Amazon. Rather than building a broad-based legislative coalition to advance his agenda,
Bolsonaro has governed in a populist manner, using social media to communicate directly with his political base; take
socially conservative stands on cultural issues; and criticize perceived enemies, such as the press, civil society organizations,
and other branches of government. This confrontational approach has alienated potential allies within the conservative-
leaning congress and has placed additional stress on the country’s already strained democratic institutions. It also has
hindered Brazil’s ability to address serious challenges, such as the Coronavirus Disease 2019 (COVID-19) pandemic.
According to a weighted average of recent polls, as of early May 2022, about 49% of Brazilians rated Bolsonaro’s
performance in office as “bad” or “terrible,” 30% rated it “good” or “great,” and 19% rated it “regular.” Likewise, Bolsonaro
trailed former President Luiz Inácio Lula da Silva (2003-2010) by about 10 percentage points, 33% to 43%, in the
presidential election scheduled for October 2022, with several other potential candidates registering single-digit support.
In international affairs, the Bolsonaro administration initially moved away from Brazil’s traditional commitment to autonomy
and toward closer alignment with the United States. Bolsonaro coordinated closely with the Trump Administration on
regional challenges, such as the crisis in Venezuela, and frequently supported the Trump Administration within multilateral
organizations. The Trump Administration welcomed Bolsonaro’s rapprochement and designated Brazil as a major non-
NATO ally. The United States and Brazil also forged agreements on several trade and investment matters, including a
Protocol on Trade Rules and Transparency, concluded in October 2020, intended to foster cooperation on trade facilitation
and customs administration, good regulatory practices, and anti-corruption measures.
Relations appear to have cooled somewhat under President Biden, potentially suggesting those advances were the result of
Bolsonaro’s personal and ideological rapport with President Trump rather than a growing alignment between Brazil and the
United States. Nevertheless, bilateral merchandise trade reached a record high of $78.2 billion in 2021, and the U.S. and
Brazilian governments have maintained frequent, high-level engagement. Among other objectives, the Biden Administration
has sought to work with Brazil to enhance bilateral security ties, coordinate approaches to regional and international policy
challenges, and strengthen efforts to combat Amazon deforestation and mitigate climate change.
The 117th Congress has maintained interest in Brazil and U.S.-Brazilian relations. Environmental conservation has been one
major focus, with Congress appropriating $25 million for foreign assistance programs in the Brazilian Amazon in the
Consolidated Appropriations Act, 2022 (P.L. 117-103), up from $17 million in FY2021. Several other introduced bills that
focus on U.S. environmental policies globally could affect bilateral relations. For example, S. 1201 would direct the
Secretary of State to engage with Brazil on environmental enforcement, sustainable development, and emissions reduction
efforts. H.R. 5508 and S. 2950 would prohibit the importation of certain commodities produced on illegally deforested land
and would establish a fund to combat deforestation. Some Members also have expressed concerns about the state of
democracy and human rights in Brazil. The explanatory statement accompanying the National Defense Authorization Act for
FY2022 (P.L. 117-81) called on the Secretary of Defense to ensure any security assistance provided to Brazil complies with
U.S. laws and Department of Defense policies regarding adherence to human rights and international law. These and other
issues may factor into the Senate’s consideration of Elizabeth Frawley Bagley, whom President Biden nominated to serve as
U.S. Ambassador to Brazil (PN1691) in January 2022.
For additional information, see CRS Report R46619, U.S.-Brazil Economic Relations, coordinated by M. Angeles Villarreal;
and CRS In Focus IF11306, Fire and Deforestation in the Brazilian Amazon, by Pervaze A. Sheikh et al.
Congressional Research Service


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Contents
Introduction ..................................................................................................................................... 1
Brazil’s Political and Economic Environment ................................................................................ 3
Background ............................................................................................................................... 3
Bolsonaro Administration (2019-Present) ................................................................................. 5
Pandemic Response ............................................................................................................ 6
Economic and Social Policies ............................................................................................. 7
Security Policy .................................................................................................................... 8
October 2022 Elections ............................................................................................................. 9
Amazon Conservation and Climate Change .................................................................................. 10
Environmental Policies ............................................................................................................ 11
Paris Agreement Commitments ............................................................................................... 13
U.S.-Brazilian Relations ................................................................................................................ 14
Environmental Cooperation .................................................................................................... 15
Defense Cooperation ............................................................................................................... 17
Geopolitical Issues ............................................................................................................ 18
Human Rights Concerns ................................................................................................... 20
Commercial Relations ............................................................................................................. 20
Recent Trade Negotiations ................................................................................................ 21
Trade and Investment Flows ............................................................................................. 22
Outlook .......................................................................................................................................... 24

Figures
Figure 1. Map of Brazil ................................................................................................................... 2
Figure 2. Deforestation in Brazil’s Legal Amazon: 2004-2021 .................................................... 12
Figure 3. U.S. Trade with Brazil: 2012-2021 ................................................................................ 23

Tables
Table 1. Evolution of Brazil’s Paris Agreement Commitments .................................................... 13

Contacts
Author Information ........................................................................................................................ 24

Congressional Research Service


link to page 5 Brazil: Background and U.S. Relations

Introduction
As the 6th-most populous country and the
Brazil at a Glance
12th-largest economy in the world, Brazil
Leadership: President Jair Bolsonaro, Vice President
plays an important role in global
Hamilton Mourão, Senate President Rodrigo Pacheco,
governance (see Figure 1 for a map of
Chamber of Deputies President Arthur Lira
Brazil). Over the past 20 years, Brazil has
Population: 214.5 mil ion (2022 est.)
forged coalitions with other large,
Race/Ethnicity: White—47.7%, Mixed Race—43.1%,
developing countries to push for changes to
Black—7.6%, Asian—1.1%, Indigenous—0.4% (Self-
multilateral institutions and to ensure that
identification, 2010)
global agreements on issues ranging from
Religion: Catholic—54.2%, Evangelical Christian—24.5%,
trade to climate change adequately protect
None—13.0%, Other—7.2% (2020)
their interests. Brazil also has taken on a
Official Language: Portuguese
greater role in promoting peace and
Land Area: 3.3 mil ion Updated August 5, 2025 (R46236) Jump to Main Text of Report

Summary

Brazil has the potential to play an influential role in international affairs as the fifth-largest territory, seventh-most populous country, and ninth-largest economy in the world. Given Brazil's potential strategic importance, Members of Congress sometimes have explored ways to bolster U.S.-Brazil cooperation and Brazil periodically has been a focal point of U.S. policy in Latin America. The United States and Brazil historically have maintained robust political and economic ties, including regular high-level engagement on security and other matters and goods and services trade valued at more than $127 billion in 2024. Nevertheless, differing policy approaches and sometimes divergent national interests appear to have inhibited the development of a closer partnership.

Brazil's Domestic and Foreign Policy

President Luiz Inácio Lula da Silva (Lula) of the left-of-center Workers' Party was inaugurated to a third four-year term on January 1, 2023. Since returning to office, Lula has sought to restore the upward social mobility that characterized his first two terms (2003-2010) while addressing environmental destruction in the Brazilian Amazon and expanding Brazil's international influence. He has advanced portions of his domestic agenda through executive action, such as stricter environmental enforcement efforts, and secured congressional approval for some of his proposed socioeconomic policies. Other Lula administration initiatives, including certain fiscal reforms, have faced setbacks amid budget constraints and opposition in the center-right Brazilian congress. President Lula also is contending with a highly polarized society, in which Brazilians of differing political ideologies have diverged in their confidence in Brazil's democratic institutions and their assessments of the Brazilian judiciary's response to alleged threats to democracy, including an alleged attempt by right-wing populist President Jair Bolsonaro (2019-2023) to remain in office after losing the 2022 presidential election. Lula's efforts to reassert Brazil's influence abroad have included some high-profile international summits, but some other diplomatic initiatives—such as efforts to mediate regional and international conflicts—have yet to bear fruit. As of July 2025, 43% of Brazilians approved of Lula's performance in office and 53% disapproved, according to a Genial/Quaest poll.

U.S.-Brazil Relations

U.S.-Brazil relations have waxed and waned over the past decade, depending, in part, on the relative ideological alignment between the administrations in power. During 2019 and 2020, then-President Bolsonaro brought Brazil's foreign policy into closer alignment with that of the United States, President Donald Trump designated Brazil as a major non-NATO ally, and the U.S. and Brazilian governments concluded a trade facilitation agreement. Relations cooled somewhat during 2021 and 2022, as the U.S. Administration of President Joe Biden carried out a high-level diplomatic effort with the stated objective of ensuring Brazil's 2022 elections were free and fair and resulted in a peaceful transfer of power. Lula's return to office in 2023 spurred increased bilateral cooperation on climate change and environmental conservation—top priorities of both governments.

While working-level cooperation related to security and other areas of mutual interest appears to have continued during the initial months of the second Trump Administration, some bilateral disagreements have emerged over the Brazilian judiciary's prosecution of former President Bolsonaro, Brazil's regulation of social media content, and U.S. trade policy. Tensions appear to have escalated since July 2025, when President Trump announced his intention to increase tariffs on imports from Brazil to 50% and the U.S. Departments of State and Treasury imposed sanctions on some Brazilian supreme court justices.

Congressional Action

Some Members of Congress have monitored developments in Brazil and sought to influence the trajectory of U.S.-Brazilian relations. Environmental conservation has been a major area of focus for some Members. In FY2024 appropriations (P.L. 118-47, Division F), carried forward into FY2025 by the Full-Year Continuing Appropriations and Extensions Act, 2025 (P.L. 119-4), Congress designated $23.75 million for environmental programs in the Brazilian Amazon. Some Members also have expressed concerns about Brazilian judicial orders regulating social media platforms and have expressed support for the Trump Administration's sanctions against Brazilian supreme court justices for allegedly infringing on freedom of expression. Some other Members have criticized the Trump Administration for purportedly using U.S. sanctions and trade policy to undermine Brazil's democracy and rule of law. The 119th Congress may assess whether—and, if so, how—to continue shaping U.S.-Brazil relations on these and other issues as it considers FY2026 appropriations and exercises its other legislative and oversight prerogatives.

Introduction

Brazil at a Glance

Population: 212.6 million (2024 est.)

Official Language: Portuguese

Race/Ethnicity: mixed race—45.3%, White—43.5%, Black—10.2%, Indigenous—0.6%, Asian—0.4%, (Self-identification, 2022 census)

Religion: Catholic—56.8%, Evangelical—26.9%, none—9.3%, other—6.9% (Self-identification, 2022 census)

Land Area: 3.3 million square miles (slightly larger than
square miles (slightly larger than
stability, contributing to U.N. peacekeeping
the 48 contiguous U.S. states and the District of Columbia)the 48 contiguous U.S. states and the District of Columbia)
missions and mediating conflicts in South
Gross Domestic Product (GDP))/GDP per Capita: $2.2 trillion/$10,214 (2024 est.)

Sectoral Components of GDP: Services—71.9%, industry—20.8%, agriculture—8.1% (2024 est.)

Top Exports: oil, soybeans, iron ore, meat, and sugar (2024)

Top Export Partners: China (28.0
:

America and further afield. Although recent
$1.61 tril ion/$7,563 (2021 est.)
domestic challenges have led Brazil to turn
Top Exports/Export Markets: iron ore, soybeans, oil,
inward and weakened its appeal globally,
meat, and iron and steel/China (31%), European Union
(13%), European Union (14.3%), United States (%), United States (11%), and 12.0%), Argentina (4Argentina (4.1%)%) (2021)
the country continues to exert considerable
Life Expectancy at BirthBirth: 76.76.84 years (2023)

Poverty Rate: 27.4% (2023)

years (2020)
influence on international policy issues that
Poverty Rate: 18.4% (2020 est.)
affect the United States.
Sources: Population, race/ethnicity, Population, race/ethnicity, religion, land area, life expectancy, and poverty statistics from the Instituto Brasileiro de Geografia e Estatística; GDP estimates from the International Monetary Fund; Sectoral GDP estimates from the Economist Intelligence Unit; export data from Trade Data Monitor. Brazil has the potential to play an influential role in international affairs as the fifth-largest territory, seventh-most populous country, and the ninth-largest economy in the world; it is also a top global food and energy producer and home to the majority of the Amazon forest (see Figure 1 for a map of Brazil).1 Over the past 25 years, Brazil has forged coalitions with other large, developing countries to push for changes to multilateral institutions and to ensure that global agreements on issues ranging from trade to climate change adequately protect mutual interests. At times, Brazil also has sought to play a greater role in promoting peace and stability, contributing to UN peacekeeping missions and attempting to mediate conflicts in South America and elsewhere. Although some domestic challenges have led Brazil to turn inward and appear to have weakened its standing as a global leader over the past decade, the country continues to exert some influence on international policy issues that affect the United States.

Some analysts have characterized Brazil as a global "swing state" with the potential to affect the trajectory of the international order.2 Given Brazil's potential strategic importance, some of those analysts argue that the United States should more actively engage the country and devote increased attention and resources to forging a close partnership. Several previous efforts to establish closer ties have left policymakers in both countries frustrated, however, as differing policy approaches and sometimes divergent national interests have inhibited cooperation.3 Some analysts argue that Brazil is unlikely to ever closely align with the United States but the two countries may be able to cooperate on particular issues at particular times.4

During the 118th Congress, some Members expressed support for enhanced economic, environmental, and security cooperation with Brazil. Others argued the U.S. government should impose sanctions or other pressure on Brazilian officials in response to certain foreign policy decisions and Brazilian judicial actions they characterized as censorship.5 The 119th Congress may continue monitoring developments in Brazil and assess whether and, if so, how to influence U.S. Brazilian relations as it oversees U.S. defense and trade policies, considers appropriations for security and environmental assistance, and debates sanctions and other potential legislation.

Figure 1. Map of Brazil

Source: Map Resources. Adapted by CRS Graphics.

Brazil's Domestic Situation Background
land area, and life
U.S. policymakers have often viewed
expectancy statistics from the Instituto Brasileiro de
Brazil as a natural partner in regional and
Geografia e Estatística; Religion pol ing data from
global affairs, given its status as a fellow
Latinobarómetro, GDP estimates from the International
multicultural democracy. Repeated efforts
Monetary Fund; export data from Trade Data Monitor;
and poverty estimate from the U.N. Economic
to forge a close partnership have left both
Commission for Latin America and the Caribbean.
countries frustrated, however, as their
occasionally divergent interests and policy approaches have inhibited cooperation.
The Trump Administration viewed the election of President Jair Bolsonaro as a fresh opportunity
to deepen the bilateral relationship. Bolsonaro shifted Brazil’s foreign policy to bring the country
into closer alignment with the United States, and President Trump designated Brazil a major non-
NATO ally
. The United States and Brazil also concluded a Protocol on Trade Rules and
Transparency intended to bolster commercial ties. Nevertheless, relations appear to have cooled
somewhat since President Biden took office, suggesting those advances were largely the result of
Bolsonaro’s personal and ideological rapport with President Trump.
Congress has expressed considerable interest in Brazil in recent years, recognizing Brazil’s
potential to affect U.S. foreign policy initiatives and interests. Some Members view Brazil as a
strategic partner for addressing regional and global challenges. They have called for stronger U.S.
economic and security ties with Brazil to bolster the bilateral relationship and counter the
influence of extra-hemispheric powers, such as China.1 Other Members have expressed
reservations about a close partnership with the Bolsonaro administration. They are concerned that

1 See, for example, Letter from Marco Rubio, U.S. Senator, to Lloyd Austin, Secretary, U.S. Department of Defense,
January 7, 2022, at https://www.rubio.senate.gov/public/_cache/files/7a6d5f3d-b7aa-40b7-a528-2c10a658fdf4/
42C29B167B0F43821E5FC296C4FF972A.01.07.22-rubio-letter-to-austin-re-brazil.pdf.
Congressional Research Service
1


Brazil: Background and U.S. Relations

Bolsonaro is presiding over an erosion of democracy and human rights in Brazil and that his
environmental policies threaten the Amazon forest and global efforts to mitigate climate change.2
Congress may continue to assess these differing approaches to U.S.-Brazilian relations as it
considers foreign assistance appropriations and other legislative initiatives and engages in
oversight of U.S. policy.
Figure 1. Map of Brazil

Source: Map Resources. Adapted by CRS Graphics.
Note: The Legal Amazon is a region designated under Brazilian law, which includes nine states that fall within
the Amazon Basin.

2 See, for example, Letter from Senator Patrick Leahy et al. to President Joseph Biden, April 16, 2021, at
https://www.leahy.senate.gov/imo/media/doc/Letter%20to%20Biden%20re%20Amazon%204-15-21.pdf; and Letter
from Henry C. “Hank” Johnson Jr., Member of Congress et al. to President Joseph R. Biden, October 14, 2021, at
https://hankjohnson.house.gov/sites/hankjohnson.house.gov/files/documents/
Letter%20Urging%20Democracy%20%26%20Human%20Rights%20in%20Brazil.pdf.
Congressional Research Service
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Brazil: Background and U.S. Relations

Brazil’s Political and Economic Environment
Background
Brazil declared independence from Portugal in 1822, initially establishing a constitutional Brazil declared independence from Portugal in 1822, initially establishing a constitutional
monarchy and retaining a slave-based, plantation economy. Although the country abolished monarchy and retaining a slave-based, plantation economy. Although the country abolished
slavery in 1888 and became a republic in 1889, economic and political power remained slavery in 1888 and became a republic in 1889, economic and political power remained
concentrated in the hands of large rural landowners and the vast majority of Brazilians remained concentrated in the hands of large rural landowners and the vast majority of Brazilians remained
outside the political system. The authoritarian government of Getúlio Vargas (1930-1945) began outside the political system. The authoritarian government of Getúlio Vargas (1930-1945) began
the incorporation ofto incorporate the working classes the working classes into politics but exerted strict control over labor as part of its broader but exerted strict control over labor as part of its broader
push to centralize power in the federal government. Vargas also began to implement a state-led push to centralize power in the federal government. Vargas also began to implement a state-led
development model, which endured for much of the development model, which endured for much of the 20th20th century as successive governments century as successive governments
supported the expansion of Brazilian industry.supported the expansion of Brazilian industry.
6 Brazil experienced two decades of multiparty democracy from 1945 to 1964 but struggled with Brazil experienced two decades of multiparty democracy from 1945 to 1964 but struggled with
political and economic instability that ultimately led the military to seize power. A 1964 military political and economic instability that ultimately led the military to seize power. A 1964 military
coup, encouraged and welcomed by the United States, ushered in two decades of authoritarian
rule.3coup ushered in two decades of authoritarian rule. The U.S. government dispatched military assets to potentially aid the pro-coup forces and expressed support for the post-coup government.7 Although repressive, the military government was not as brutal as the dictatorships Although repressive, the military government was not as brutal as the dictatorships
established in several other South American established in several other South American nations. Itcountries around this same time period. Brazilian security forces killed at least 434 dissidents during the dictatorship and they detained and tortured an estimated 30,000-50,000 others.8 The military government nominally allowed the judiciary and nominally allowed the judiciary and
congress to function during its tenure but stifled representative democracy and civic action, congress to function during its tenure but stifled representative democracy and civic action,
carefully preserving its influence during one of the most protracted transitions to democracy to carefully preserving its influence during one of the most protracted transitions to democracy to
occur in Latin America. Brazilian security forces killed at least 434 dissidents during the
dictatorship and they detained and tortured an estimated 30,000-50,000 others.4
occur in Latin America.9 Brazil restored civilian rule in 1985, and a national constituent assembly, elected in 1986, Brazil restored civilian rule in 1985, and a national constituent assembly, elected in 1986,
promulgated a new constitution in 1988. The constitution promulgated a new constitution in 1988. The constitution established a liberal democracy with a
strong president, a bicameral congressdivides power among three branches of government: an executive branch led by a president with extensive policymaking authority; a legislative branch consisting of the 513-member Chamber of Deputies and consisting of the 513-member Chamber of Deputies and
the 81-member Senatethe 81-member Senate,; and an independent and an independent judiciary. Under Brazil’judicial branch charged with interpreting and applying the numerous political, economic, and social rights enshrined in the constitution.10 Under Brazil's federal structure, the s federal structure, the
national government shares national government shares powerauthority with 26 states, a federal district that includes the capital city of Brasília, and 5,568 municipalities. Organizations that attempt to track respect for democracy globally generally recognize Brazil's democracy for its competitive elections and political pluralism but identify some shortcomings, including endemic corruption and high levels of political polarization and violence.11 Lula Administration (2023-Present)

Brazilian President Luiz Inácio Lula da Silva (Lula) of the left-of-center Workers' Party (Partido dos Trabalhadores, or PT) was inaugurated to a third four-year term on January 1, 2023, marking a significant political comeback. Lula originally rose to prominence during the 1970s as the leader of Brazil's metal workers union. He subsequently helped found the PT amid the push to restore democracy in Brazil, and led the party in three unsuccessful presidential bids before being elected in 2002. Lula presided over a period of sustained economic growth and improving living conditions in Brazil during his first two terms (2003-2010), and left office with an 87% approval rating.12 He was convicted on corruption charges in 2017, however, and imprisoned for 19 months before Brazil's Federal Supreme Court (Supremo Tribunal Federal, or STF) annulled those convictions on procedural grounds and ruled that the presiding judge had acted with bias. Lula then narrowly defeated incumbent President Jair Bolsonaro (2019-2022), a right-wing populist affiliated with the Liberal Party (Partido Liberal, or PL), 50.9% to 49.1%, in an October 2022 presidential runoff election.13

During his third term, President Lula has focused on raising Brazilians' living standards, addressing environmental concerns, and expanding Brazil's international influence. He faces several challenges, including a polarized society, a center-right congress, budget constraints, persistent inflation, and a loss of public support. According to a July 2025 poll, 43% of Brazilians approve of Lula's performance in office and 53% disapprove.14 The 79-year-old president reportedly has stated that he intends to seek a fourth term in 2026, contingent on his health.15 Political Polarization and Threats to Democracy Over the past decade, Brazilian society has grown more polarized and Brazilians of differing political ideologies have diverged in their confidence in Brazil's democratic institutions.16 These shifts appear to stem, in part, from Brazilians' reactions to a series of crises, including a deep economic recession (2014-2016); the impeachment and removal from office of Lula's successor and fellow member of the PT, President Dilma Rousseff (2011-2016); record high homicide rates (2016-2017); and wide-ranging corruption scandals that implicated parties and politicians from across the political spectrum (2014-2021). Anti-establishment sentiment helped fuel the rise of President Bolsonaro, who repeatedly clashed with other branches of government and expressed distrust in Brazil's electoral and judicial institutions.17

In the aftermath of Bolsonaro's 2022 election defeat, some Bolsonaro supporters set up camps outside Brazilian military barracks and called for the armed forces to intervene to prevent Lula from taking power. Three such supporters were convicted of planting a bomb in a fuel truck near Brasília's airport in late 2022 in an attempt to provoke military action.18 On January 8, 2023, a week after Lula's inauguration, a group of Bolsonaro supporters stormed Brazil's congress, supreme court, and presidential palace, occupying and vandalizing the mostly vacant buildings for several hours until security forces regained control. As of July 3, 2025, Brazil's STF had convicted 643 individuals involved in the events of January 8, issuing sentences ranging from 1 to 17 years in prison, and public prosecutors had concluded 555 non-prosecution agreements, in which defendants admitted to crimes and agreed to comply with certain other legal conditions in exchange for lesser penalties.19 Some Bolsonaro-aligned legislators have introduced bills in the Brazilian congress to grant amnesty to those involved in the events of January 8, 2023.

In February 2025, Brazil's attorney general charged former president Bolsonaro and 33 others—including former cabinet ministers and high-level military officers—with several crimes, including attempting a coup d'état to hold onto power irrespective of the 2022 election results.20 Bolsonaro and his allies are alleged to have engaged in activities to discredit the elections, blocked opposition voters from getting to the polls, drafted decrees to overturn the election results, and pressured members of the armed forces to support a coup. Bolsonaro also is alleged to have been aware of a plan to assassinate then-President-elect Lula, the vice president-elect, and the head of Brazil's Supreme Electoral Tribunal (TSE) during the presidential transition period. These charges are said to be based on documents, electronic communications, and witness testimony from some former Bolsonaro advisers and military commanders gathered over the course of a nearly two-year investigation.21 In May 2025, an STF panel began hearing witness testimony in the preliminary phase of the trial of the alleged core group of coup plotters, which includes Bolsonaro. Bolsonaro is already barred from seeking public office until 2030 due to a 2023 TSE ruling that some of his efforts to question Brazil's electronic voting system amounted to an abuse of power.22

Bolsonaro reportedly testified that he and his military commanders had discussed options "within the constitution" to overturn the 2022 election results, but denies the charges against him and has repeatedly asserted that he is being politically persecuted.23 In March 2025, his son Eduardo Bolsonaro, who is a member of Brazil's Chamber of Deputies and reportedly was among the advisers urging a coup d'état, stated that he was seeking asylum in the United States.24 Over the past five years, Bolsonaro and his allies also have accused the STF of engaging in censorship as a result of court orders blocking the social media accounts of some Bolsonaro-aligned legislators and media personalities for communications the STF has deemed to be disinformation or threats to democratic institutions (see "Democracy and Freedom of Expression").

Relations with Congress

In addition to navigating Brazil's polarized politics and concerns about civil-military relations raised by the alleged coup attempt by Bolsonaro and some military commanders, President Lula is contending with a fragmented congress in which 20 political parties from across the political spectrum have representation. As of the start of the Brazilian National Congress's 57th legislature (2023-2027), legislators aligned with Lula held approximately 27% of seats in the Chamber of Deputies and 19% of seats in the Senate, while the political opposition, led by Bolsonaro's PL, held about 33% of the seats in the Chamber of Deputies and 37% of the seats in the Senate. Lula forged working majorities with the conditional support of a bloc of centrist and center-right parties that held about 40% of the seats in the Chamber of Deputies and 44% of the seats in the Senate; these parties typically work with whatever administration is in power in order to increase their influence over government policy and staffing.25

Over the past two-and-a-half years, the Brazilian congress has approved minimum wage increases, an expansion of the country's conditional cash transfer program for low-income Brazilians, and modifications to Brazil's fiscal framework, among other Lula administration proposals. The congress also has blocked some key Lula administration tax reforms, and advanced some environmental deregulation and conservative social policy bills opposed by the president. Lula's working majorities remain fragile and could collapse if his approval rating declines further and/or economic circumstances further restrict the resources available to support legislators' priorities.

Socioeconomic Conditions

President Lula campaigned on restoring the upward social mobility that characterized his first two terms in office, when Brazil's gross domestic product (GDP) expanded by an average of 4.1% per year, driven by a surge in international demand (particularly from China) for Brazilian commodities such as oil, iron, and soybeans. Brazil's GDP growth, which averaged less than 1.0% between 2011 and 2022, has accelerated over the past two years, amounting to 3.2% in 2023 and 3.4% in 2024.26 This acceleration has been driven, in part, by rising household consumption tied to improving labor market conditions, an expansion of credit, and government income transfer programs. The International Monetary Fund projects that Brazil's GDP growth will slow to 2.3% in 2025 amid tight monetary and financial conditions, government fiscal constraints, and global policy uncertainty.27

Brazilians' concerns about the cost of living appear to have taken a toll on Lula's popularity. In a June 2025 poll, 55% of Brazilians rated the Lula administration's efforts to combat inflation as "bad" or "terrible."28 Consumer prices rose by 5.3% in the 12 months through July 2025, driven, in part, by food, education, and energy prices.29 Brazil's inflation rate has remained above the independent Brazilian Central Bank's target range (1.5%-4.5%), even as it has raised the benchmark interest rate to 15% (as of June 2025).30 The Lula administration has reduced import taxes on certain food products and proposed an income tax exemption to help low-income households deal with rising costs.31 The Brazilian government is also under pressure from international investors to tighten its fiscal policy, however, given that the country's general government gross debt is equivalent to about 77% of GDP.32

Approach to the Amazon Forest About 62% of the greater Amazon region, encompassing the Amazon Forest and Amazon Basin, is located within Brazil.33 Deforestation in the Brazilian Amazon,34 which fell by nearly 77% over the course of Lula's first two terms, began rising in 2012 and reached a 15-year high of 5,034 square miles in 2021 (see Figure 2). Some analysts have linked the increase in deforestation to a series of government policy reversals that cut funding for environmental enforcement, reduced the size of protected areas, and relaxed conservation requirements.35 Market incentives, such as international prices for beef, soybeans, and gold, among other commodities, also appear to have contributed to deforestation trends.36 Some scientists have warned that the Amazon forest may be nearing a tipping point at which the forest, no longer able to sustain itself, could transition to a drier, savanna-like ecosystem.37 This cycle of deforestation and drought could reduce the forest's capacity to absorb and sequester carbon, as well as reduce the precipitation that fuels forest regeneration and growth and Brazil's agricultural and hydropower production.38 The Lula administration has pledged to eliminate net deforestation in the Brazilian Amazon by 2030.39 Effectively monitoring and controlling activities in the region is difficult given the size of the Brazilian Amazon, which encompasses 58.9% of Brazil's territory and is home to 26.7 million inhabitants.40 Over the past two-and-a-half years, the Lula administration has increased environmental enforcement operations, expanded protected areas, implemented an income support program for families engaged in conservation, and issued concessions for sustainable forest management and forest restoration.41 The Lula administration, with the support of other countries, also relaunched the Amazon Fund—created in 2008 but frozen during the Bolsonaro administration—as a vehicle for international donors to support such efforts. The politically-powerful rural caucus in the Brazilian congress and some state governments, such as Mato Grosso, have pushed back on some of the Lula administration's environmental policies. The Lula administration also has continued to support the expansion of oil and gas production in Brazil, including in environmentally sensitive areas in the Amazon Basin. Nevertheless, the Lula administration's approach appears to be lowering deforestation rates, which declined by 46% in the Brazilian Amazon between 2022 and 2024 (see Figure 2).

Figure 2. Deforestation in Brazil's "Legal Amazon": 2004-2024 Source: CRS presentation of data from the Brazilian government's Instituto Nacional de Pesquisas Espaciais (INPE), "PRODES (Deforestation)," TerraBrasilis database, accessed May 27, 2025, https://terrabrasilis.dpi.inpe.br/app/dashboard/deforestation/biomes/legal_amazon/rates.

Notes: Annual monitoring periods run from August to July (e.g., 2024 data include deforestation from August 2023 to July 2024). The "Legal Amazon" is an administrative region designated by the Brazilian government that is comprised of nine states that fall within the Amazon Basin: Acre, Amapá, Amazônia, Maranhão, Mato Grosso, Pará, Rondônia, Roraima, and Tocantins. Although rainforest covers most of the Legal Amazon, savanna (Cerrado) and wetlands (Pantanal) are also present in portions of the region.

Brazil's Foreign Policy

Although the short-term areas of emphasis of Brazilian foreign policy have varied, successive Brazilian administrations generally have sought to increase the country's influence on global affairs while maintaining Brazil's autonomy.42 While pursuing these objectives, Brazilian officials have emphasized the principles of multilateralism, peaceful dispute settlement, and nonintervention in the affairs of other countries.43 In practice, this approach has involved the pursuit of cooperative relations with international partners of varying ideologies and systems of government, including the United States and European Union (EU) and fellow members of the BRICS group (originally named for Brazil, Russia, India, China, and South Africa).44

President Lula has sought to reassert Brazil's influence abroad after eight years in which Brazil's leaders have been more focused on domestic challenges. He has placed particular emphasis on convening and hosting gatherings of world leaders. These gatherings have included a summit of South American leaders (May 2023), a meeting of Amazon Basin countries (August 2023), a Group of 20 (G-20) summit (November 2024), and a BRICS summit (July 2025). Additionally, Brazil is scheduled to host the 30th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP30) in November 2025.

Similar to his previous terms, Lula also has sought to mediate some regional and global conflicts since returning to office. Perhaps most prominently, the Lula administration sought to mediate between the Venezuelan government of President Nicolás Maduro and the political opposition following an allegedly fraudulent 2024 presidential election, and put forward a joint peace proposal with the People's Republic of China (PRC, or China) to end the Russia-Ukraine war. Neither diplomatic initiative has proven fruitful. Although U.S. officials have urged the Brazilian government to take on a more prominent role in addressing the security crisis in Haiti, the Lula administration has limited Brazil's involvement, reportedly due in part to some Brazilian policymakers' dissatisfaction with the results of the United Nations Stabilization Mission in Haiti that Brazil commanded between 2004 and 2017.45

Brazil's approach to the BRICS group and relations with the PRC, which have been of particular interest to some Members of Congress, are discussed below.

Approach to the BRICS Group

Brazil has long sought a more prominent role and greater influence in the UN Security Council and other international institutions, which Brazilian officials argue need to better represent developing countries. Brazil's reform proposals have been frustrated repeatedly, giving rise to what appears to be a widespread perception among Brazilian foreign policymakers that the United States and European countries are unwilling to cede space. This is one reason Brazil has turned to informal coalitions like the BRICS group to increase the country's leverage in global policy discussions.46 Inclusion in the BRICS, alongside China and India, also has bolstered Brazil's efforts to portray itself as a rising power.

The Lula administration has described the BRICS as "a strategic platform to promote cooperation between emerging countries," and has pushed back against efforts—within and outside the BRICS—to characterize the bloc as "anti-Western."47 At the same time, President Lula has repeatedly called for the BRICS to adopt alternatives to the U.S. dollar for trade among BRICS countries.48 Brazil's relative influence within the bloc has declined since 2024, as Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates have joined the BRICS. Brazil reportedly resisted this expansion, due in part to concerns that it could reduce the bloc's cohesion, shift the balance of power within the bloc in a more authoritarian direction, and complicate Brazil's efforts to maintain an autonomous foreign policy.49

Brazil assumed the rotating presidency of the BRICS in January 2025, and Lula's protégé, former President Dilma Rousseff (2011-2016), was appointed to a second five-year term as the President of the New Development Bank (formerly known as the BRICS Bank) in March 2025. During its year-long BRICS presidency, the Brazilian government intends to focus on cooperation in the "Global South," with a particular emphasis on health, trade and investment, climate change, artificial intelligence (AI), UN Security Council reform, and the institutional development of the BRICS group.50 During the July 2025 BRICS summit in Brazil, the bloc issued a 126-point declaration that included calls for reform and increased representation for BRICS and other developing countries in international organizations, including the UN Security Council, and continued cooperation within the BRICS to increase the interoperability of BRICS payment systems. The declaration also condemned the rise of unilateral tariffs, the imposition of economic and secondary sanctions, and military strikes against Iran, without explicitly mentioning the United States.51 Other documents adopted at the summit focused on climate finance, global governance of AI, and the elimination of diseases associated with poverty and inequality.

Brazil-China Relations

In addition to engaging in multilateral cooperation within the BRICS group and other fora, Brazil and China have forged extensive bilateral ties. The countries have maintained formal diplomatic relations since 1974 and a "strategic partnership" since 1993.52 The Brazilian and PRC governments also have engaged in frequent high-level diplomacy, with China hosting state visits for each of the past five Brazilian presidents and Brazil hosting state visits for PRC leader Xi Jinping and his predecessor Hu Jintao.53 During Lula's May 2025 state visit to China, the Brazilian and PRC governments signed 20 bilateral agreements related to AI, energy, infrastructure, mining, space, and trade, among other areas of cooperation.54

Brazil's relationship with China appears to have been driven primarily by economic interests. Between 2004 and 2024, Brazil's annual goods trade with China climbed from $9.1 billion to $158.0 billion, and China's share of Brazil's global goods trade rose from 5.8% to 26.3%. In 2024, Brazil ran a $30.7 billion trade surplus with China.55 Brazilian export growth has been heavily concentrated in a few products, particularly benefitting Brazil's mineral extraction industry and the politically influential agribusiness sector. In 2024, for example, soybeans, iron ore, crude oil, and frozen beef collectively accounted for 81.9% of the total value of Brazilian exports to China.56 Brazilian manufacturers, on the other hand, have faced increased competition from imports from China, which some blame for deindustrialization.57 Some analysts have assessed that U.S. tariffs on China (and the PRC's retaliatory measures) could exacerbate these trends, with China opting to import a greater share of its agricultural products from Brazil rather than the United States and seeking to export a greater share of its industrial goods to Brazil in the face of U.S. trade barriers.58

PRC investment and development finance in Brazil also have increased over the past 20 years despite the fact that Brazil has not formally signed onto China's "Belt and Road Initiative."59 According to the Brazil-China Business Council, between 2007 and 2023, PRC companies invested $73.3 billion in 264 projects in Brazil. The top sectors by project value were electricity (45%), oil and gas extraction (30%), manufacturing (7%), mining (6%), and infrastructure (5%).60 The focus of such investments has shifted over time, with 72% of projects in 2023 focused on green energy and related sectors.61 According to the China Global Investment Tracker database, which tracks investments over $95 million, Brazil received 4.9% of PRC investment worldwide between 2005 and 2024, ranking fourth behind the United States (13.4%), Australia (7.2%), and the United Kingdom (7.0%).62 Between 2005 and 2023, the Brazilian government and state-owned enterprises received $32.4 billion in loans from China's state-owned policy banks (i.e., China Development Bank and the Export-Import Bank of China). This PRC development finance has been concentrated primarily in the energy sector.63

Although some Brazilian leaders have expressed concerns at times about PRC investments in strategic sectors, they generally have lacked the political support, political will, or both to restrict such investments. For example, President Bolsonaro entered office warning that the PRC was "buying Brazil," but he appears to have done little to shift the economic relationship.64 His administration also opted to allow PRC companies like Huawei to participate in the development of Brazil's commercial fifth-generation (5G) telecommunications infrastructure.65

To date, Brazil's military ties with China appear to have been limited. The Brazilian and PRC governments established a joint exchange and cooperation commission in 2004 and signed a defense cooperation framework agreement in 2011. Those mechanisms have facilitated education and training exchanges for some Brazilian and PRC military personnel as well as occasional joint exercises.66 Brazil, which has a well-developed defense industry, does not appear to have made any significant purchases of PRC military equipment, and it competes with China to supply the South American defense market.67 In 2024, the PRC state-owned defense company China North Industries Corporation (Norinco) reportedly expressed interest in acquiring a 49% stake in Avibras Indústria Aeroespacial, a top—but financially-struggling—Brazilian defense firm that specializes in missiles and rocket artillery. President Lula met with Norinco's president during his May 2025 visit to China and the Brazilian government reportedly suggested it was open to the acquisition.68

U.S.-Brazil Relations The United States and Brazil marked 200 years of diplomatic relations in 2024. Historically, the two countries have maintained robust political and economic ties but differing perceptions of their respective national interests appear to have hindered the development of a closer partnership. That dynamic changed to some extent in 2019 and 2020, as then-President Bolsonaro brought Brazil's foreign policy into closer alignment with U.S. foreign policy, President Donald Trump designated Brazil as a major non-NATO ally, and the U.S. and Brazilian governments negotiated a Protocol on Trade Rules and Transparency intended to facilitate trade and regulatory cooperation (see "Defense" and "Trade and Investment Relations"). The Biden Administration continued to engage with the Bolsonaro administration on military and economic matters while carrying out a high-level diplomatic effort that had the stated of aim of ensuring Brazil's 2022 elections were free and fair and resulted in a peaceful transfer of power (see "Democracy and Freedom of Expression"). After Lula took office, the Biden Administration's cooperation with Brazil shifted to place more emphasis on climate change and other environmental concerns (see "Environmental Cooperation").

President Lula has expressed interest in maintaining a cordial U.S.-Brazilian relationship with President Trump despite the two leaders' ideological differences and Lula's stated support for then-Vice President Kamala Harris in the 2024 U.S. presidential election.69 In June 2025, a State Department official asserted that the Trump Administration "will continue to support economic and security cooperation with Brazil that will uphold and advance our foreign policy agenda."70 Although working-level cooperation related to security and other areas of mutual interest appears to have continued during the initial months of the second Trump Administration, some bilateral disagreements have emerged over the Brazilian judiciary's prosecution of former President Bolsonaro, Brazil's regulation of social media content, and U.S. trade policy. In July 2025, President Trump announced his intention to increase tariffs on imports from Brazil to 50% and the U.S. Departments of State and Treasury imposed sanctions on some STF justices (see "U.S. Tariffs" and "Democracy and Freedom of Expression")

The Trump Administration's approach to bilateral relations appears to be generating some backlash in Brazil.71 According to a July 2025 poll, 50.5% of Brazilians have negative views of the United States (up from 44.5% in January 2025) and 63.2% have negative views of President Trump (up from 52% in January 2025).72 Such views could provide incentives for President Lula and other Brazilian policymakers to take a more confrontational approach to the Trump Administration, especially during the leadup to Brazil's presidential and legislative elections scheduled for October 2026.

Democracy and Freedom of Expression

Over the past four years, some Members of Congress and other U.S. policymakers have expressed concerns about potential threats to democracy and freedom of expression in Brazil. Like Brazilians, they have articulated different views about the source of such threats and U.S. policy responses.

2022 Elections and Aftermath

In the lead up to Brazil's October 2022 elections, the Biden Administration repeatedly expressed confidence in Brazil's electoral institutions and reportedly urged then-President Bolsonaro and other Brazilian officials not to cast doubts on the election system or results. In September 2022, the U.S. Senate adopted a resolution (S.Res. 753) that urged the Brazilian government to ensure "free, fair, credible, transparent, and peaceful" elections. The resolution also called on the U.S. government to speak out against efforts to undermine the electoral process, immediately recognize the outcome of elections determined by international observers to be free and fair, and make clear that undemocratic actions would jeopardize U.S.-Brazilian relations, including U.S. security assistance. By some accounts, these U.S. efforts helped ensure a peaceful transition in Brazil.73

In the aftermath of the January 8, 2023 riots in Brazil, some Members of Congress introduced resolutions condemning the attacks on Brazilian government institutions (e.g., H.Res. 106 and S.Res. 32). Some Members also sought to collaborate with their Brazilian counterparts and share best practices on congressional investigations.74 Additionally, some Members called on the Biden Administration to investigate any actions taken on U.S. soil to organize the events of January 8, and to work with the Brazilian government to uphold the rule of law, including by ensuring former President Bolsonaro is held accountable for any crimes he may have committed.75

As Brazil's justice system has investigated and prosecuted former President Bolsonaro and others allegedly responsible for an alleged coup attempt and other anti-democratic actions (see "Political Polarization and Threats to Democracy"), some other Members of Congress and U.S. policymakers have expressed concerns about potential political persecution in Brazil. In July 2025, for example, President Trump announced his intention to increase tariffs on imports from Brazil to 50%, partly in response to the trial of former President Bolsonaro, which he characterized as a "witch hunt."76 President Lula described the tariff announcement as "unacceptable blackmail" and suggested he may take retaliatory trade measures against the United States (see "U.S. Tariffs" for further discussion).77

Freedom of Expression

Brazil's regulation of digital communications is another topic about which Members of Congress have expressed different views. During the 118th Congress, some Members of Congress expressed concerns about how disinformation and misinformation may have contributed to the January 8 riots and called on social media companies to work with Brazilian authorities to address the potential exploitation of their platforms.78 Other Members have characterized such regulation as censorship.79

The Brazilian constitution sets forth several principles related to freedom of expression.80 Brazil also has ratified the International Covenant on Civil and Political Rights, which contains obligations related to the freedom of expression while allowing for certain restrictions.81 Freedom House, a nongovernmental democracy and human rights advocacy organization, asserts that Brazil's legal framework "provides inadequate protection for freedom of expression," due in part to the proscription and regulation of certain types of speech.82 For example, libel, slander, and defamation are criminal offenses, and Brazil's electoral code tightly regulates political campaign activities. Additionally, Brazil's 2014 civil rights framework for the internet established certain rights and obligations related to internet use, and a 2021 law for the defense of the democratic rule of law criminalizes inciting animosity between the armed forces and the executive, legislative, or judicial branches of government, among other offenses.83

The STF has taken on a prominent role in regulating online content since March 2019, when then-STF President José Antonio Dias Toffoli opened an investigation into alleged "fake news" and internet threats targeting the STF, its justices, and their family members. Some legal analysts questioned the STF's decision to open an investigation unilaterally, and some transparency and press rights advocates condemned the STF for using the investigation to order an online media outlet to remove a report about an STF justice.84 STF Justice Alexandre de Moraes, designated as the rapporteur for the fake news investigation, has kept the investigation open for more than six years.85 He also is serving as the rapporteur for several other inquiries, including the investigations into the alleged 2022 coup attempt and the riots of January 8, 2023.86 Justice de Moraes has used his broad powers to authorize searches, freeze social media accounts, and order arrests, among other actions; these decisions generally have been upheld by the broader STF.

Brazil's TSE also has exercised its authority to combat the spread of information it deems false. During the 2022 electoral campaign, for example, the TSE regularly ordered online content to be deleted "at the request of both the Lula and Bolsonaro campaigns."87 Justice de Moraes served as the president of the TSE between August 2022 and June 2024.

Some U.S.-based social media companies have clashed with Justice de Moraes and the STF over online content regulation. In February 2025, for example, Justice de Moraes ordered the suspension of the U.S.-based video-sharing platform Rumble in Brazil due to the company's refusal to comply with previous STF orders to suspend certain accounts, pay resulting fines, or appoint a legal representative in Brazil.88 Rumble and the Trump Media & Technology Group (owner of Truth Social) have sued Justice de Moraes in U.S. federal court, arguing his orders violated U.S. free speech protections by seeking the suspension of the accounts of an individual who resides in the United States.89 The individual in question is a pro-Bolsonaro media personality who is wanted in Brazil for defamation and other alleged crimes but who the U.S. government has reportedly declined to extradite.90 A similar dispute with X Corp. (formerly Twitter) resulted in the STF suspending Brazilians' access to that social media platform for more than a month in 2024; X Corp. ultimately complied with the STF orders. A June 2025 STF ruling that social media companies can be held legally responsible for users' posts and requires such platforms to immediately remove illegal material (e.g., hate speech or incitement to anti-democratic acts) without a prior judicial order could generate additional conflict between the STF and U.S.-based companies.91

Information regarding the full scope of court orders related to social media activity in Brazil is not publicly available. In a court filing, X Corp. reportedly stated that the company had blocked 223 accounts between 2020 and September 2024 in response to judicial orders in Brazil—158 in response to STF orders and 65 in response to TSE orders.92 STF and TSE orders subpoenaed from X Corp. by the U.S. House Judiciary Committee during the 118th Congress indicated that the blocked accounts included some prominent figures associated with the ideological right in Brazil, including former President Bolsonaro; at least six federal legislators; and several journalists, political commentators, and social media influencers.93

The Biden Administration did not comment publicly on Brazil's regulation of digital communications. The Trump Administration has condemned the STF's actions. In February 2025, for example, the U.S. State Department criticized the STF's suspension of Rumble in Brazil, asserting that "blocking access to information and imposing fines on U.S. based companies for refusing to censor people living in the United States is incompatible with democratic values, including freedom of expression."94 The Department of Justice (DOJ) reportedly sent a letter to Justice de Moraes asserting that DOJ takes "no position on the enforceability of the various orders and other judicial documents directing Rumble to act within the territory of Brazil, which is a matter of Brazilian law," but "such directives are not enforceable judicial orders in the United States."95 The Brazilian government asserted that the State Department had distorted the meaning of the STF's orders, which it maintained were only intended to apply in Brazil.96

On July 18, 2025, Secretary of State Marco Rubio announced that he had ordered visa revocations, pursuant to a provision of the Immigration and Nationality Act (INA; 8 U.S.C. §1182(a)(3)(C)), for Justice de Moraes, "his allies on the court," and their immediate family members, due to the STF's regulation of social media and the judicial proceedings against former President Bolsonaro.97 According to press reports, the State Department revoked the visas of at least 8 of the 11 STF justices—including Chief Justice Luís Roberto Barroso, as well as the head of the autonomous public prosecutor's office (Procurador-Geral da República), Paulo Gonet, prohibiting their entry into the United States.98 On July 30, 2025, the U.S. Department of the Treasury imposed additional economic sanctions on Justice de Moraes pursuant to the Global Magnitsky Human Rights Accountability Act (Title XII, Subtitle F of P.L. 114-328, as amended) for purportedly using his position to "authorize arbitrary pre-trial detentions and suppress freedom of expression."99 The sanctions block Justice de Moraes from accessing any property under U.S. jurisdiction, and prohibit U.S. persons from engaging in transactions with him.100 President Trump also has linked U.S. tariffs on Brazil to the STF's actions (see "U.S. Tariffs").

Some of former President Bolsonaro's allies, including his son Eduardo who has been in the United States seeking support from U.S. policymakers, welcomed the U.S. sanctions.101 The STF expressed solidarity with Justice de Moraes, noted that his rulings have been upheld by the broader court, and asserted that it would continue to uphold Brazil's laws and constitution.102 The STF also reportedly has frozen the bank accounts of Eduardo Bolsonaro and further restricted former President Bolsonaro's movements and communications for allegedly seeking to "induce, instigate, and assist" the Trump Administration in taking "hostile acts against Brazil" in an attempt to influence the judicial process.103 On August 4, 2025, Justice de Moraes placed former President Bolsonaro on house arrest for alleged noncompliance with the STF's restrictions.104 President Lula and the presidents of the Brazilian Chamber of Deputies and Senate, Hugo Motta and Davi Alcolumbre, have rejected the U.S. sanctions as unacceptable interference in Brazil's justice system.105 Some civil society organizations—including groups that have been critical of some STF decisions, such as Brazil's bar association (Ordem dos Advogados do Brasil) and the Brazilian chapter of Transparency International—also have condemned the U.S. sanctions.106 Options for Congress Congress may continue to monitor democracy and freedom of expression in Brazil, the extent to which Brazilian judicial orders affect entities and individuals in the United States, and the Trump Administration's approach to such issues, including sanctions. Some Members of Congress have expressed support for the Trump Administration's visa revocations and sanctions on Justice de Moraes.107 Some other Members have characterized the U.S. actions as a misuse of sanctions authorities,108 and an attack on Brazil's sovereignty, rule of law, and democracy.109 Congress could consider measures to codify or restrict the Administration's sanctions actions. For example, the "No Censors on our Shores Act" (H.R. 1071), reported by the House Judiciary Committee in February 2025, would expand INA inadmissibility criteria to specifically include foreign officials engaged in actions that infringe on the free speech rights of U.S. citizens who reside in the United States. Members also could engage with their Brazilian counterparts on these issues, as the Brazilian congress has been debating legislation regarding the regulation of online content and various measures to limit the authority of the STF. Trade and Investment Relations

Trade policy often has been a contentious issue in U.S.-Brazilian relations. Since the early 1990s, Brazil's trade policy has prioritized integration with its South American neighbors through the Common Market of the South (Mercosur) and multilateral negotiations at the World Trade Organization (WTO).110 Brazil is the industrial hub of Mercosur, which it established with Argentina, Paraguay, and Uruguay in 1991 with the stated goal of facilitating economic integration.111 As a partial customs union, Mercosur facilitates mostly duty-free trade amongst its members and levies a common external tariff on imports from outside the bloc. Within the WTO, Brazil has joined with other developing countries to push the United States and other developed countries to reduce their agricultural tariffs and subsidies while resisting developed countries' calls for increased access to developing countries' industrial and services sectors. Those differences blocked conclusion of the most recent round of multilateral trade negotiations (the WTO's Doha Round), as well as U.S. efforts in the 1990s and 2000s to establish a hemisphere-wide Free Trade Area of the Americas.112

A 2011 Agreement on Trade and Economic Cooperation (ATEC) has served as the primary formal mechanism for U.S.-Brazilian discussions of trade and investment issues. In October 2022, the U.S. and Brazilian governments concluded a Protocol on Trade Rules and Transparency that added three annexes to the ATEC related to cooperation on trade facilitation and customs administration, regulatory practices, and anti-corruption measures.113 Brazil's congress ratified the protocol in November 2021 and the agreement entered into force in February 2022. The U.S. Congress has not specifically authorized or approved the protocol, which did not include any provisions eliminating tariffs or nontariff barriers to trade that would have required changes to U.S. law.114

Trade and Investment Flows U.S.-Brazilian trade has been affected by economic volatility over the past decade, including Brazil's 2014-2017 recession and the 2020 COVID-19 pandemic-driven downturn. Nevertheless, the total value of U.S.-Brazilian trade in goods and services reached a record high of $127.4 billion in 2024. U.S. goods exports to Brazil totaled $48.8 billion while U.S. goods imports from Brazil totaled $42.5 billion, resulting in a $6.2 billion U.S. goods trade surplus. The United States also ran a $23.1 billion surplus in services trade with Brazil in 2024, as U.S. exports were valued at $29.6 billion and U.S. imports were valued at $6.5 billion (see Figure 3, below). In 2024, the top U.S. goods exports to Brazil were aircraft and parts, mineral fuels, machinery, plastics, and pharmaceutical products. The top U.S. goods imports from Brazil included mineral fuels (primarily crude oil), iron and steel, machinery, aircraft and parts, and coffee.115 In 2024, Brazil was the ninth-largest goods export market for the United States (2.4% of total goods exports). The United States was Brazil's third-largest goods export market (12.0% of total goods exports) behind China (28.0%) and the 27-member EU (14.3%), but reportedly remained Brazil's top destination for exports of manufactured goods in 2024.116

According to the U.S. Department of State, the Brazilian government actively encourages foreign direct investment (FDI) in certain sectors, such as automobiles, life sciences, mining, oil and gas, renewable energy, and transportation infrastructure. Brazil, however, imposes restrictions on FDI in other sectors, including aerospace, healthcare, insurance, maritime, mass media, rural property, and telecommunications.117 The United States is the largest source of FDI in Brazil. As of 2023 (most recent year for which data are available), the accumulated stock of U.S. FDI in Brazil was $87.9 billion, with significant investments in manufacturing and finance, among other sectors. The same year, the stock of Brazilian FDI in the United States totaled $6.5 billion.118

Figure 3. U.S. Trade with Brazil: 2014-2024

Source: CRS presentation of data from the U.S. Bureau of Economic Analysis, "Brazil – International Trade and Investment Country Facts: Trade," June 24, 2025.

Over the past five years, the U.S. and Brazilian governments and some private sector entities have identified critical minerals as a potential area for enhanced bilateral cooperation.119 Brazil is among the top source countries of 10 mineral commodities for which imports account for more than half of U.S. consumption.120 Since 2020, the U.S. and Brazilian governments have engaged within a Critical Minerals Working Group, and the U.S. International Development Finance Corporation (DFC) has invested $55 million in critical mineral (cobalt and nickel) production in Brazil.121 A Strategic Minerals Investment Fund, launched by Brazil's National Bank for Economic and Social Development (Banco Nacional de Desenvolvimento Econômico e Social, or BNDES) in 2024, aims to raise over R$1 billion (about $183 million) for new mineral ventures and research and development, potentially providing opportunities for U.S. companies.122 In October 2024, the DFC and BNDES announced a framework for co-investment in critical sectors in Brazil, including mining.123 The second Trump Administration reportedly has expressed ongoing interest in Brazil's critical minerals, though it is unclear whether prior bilateral initiatives have continued.124 U.S. Tariffs On April 2, 2025, President Trump issued Executive Order (E.O.) 14257, asserting that "a lack of reciprocity" in bilateral trade relationships, disparate tariff rates and non-tariff barriers, and U.S. trading partners' economic policies constitute "an unusual and extraordinary threat to the national security and economy of the United States."125 The E.O. declared a national emergency under the National Emergencies Act (NEA; 50 U.S.C. §§1601 et seq.) and invoked the International Emergency Economic Powers Act of 1977 (IEEPA; 50 U.S.C. §§1701 et seq.) to impose a minimum 10% tariff on all U.S. imports (including a 10% tariff on imports from Brazil), with exceptions for certain goods, starting on April 5, 2025. According to a White House press release, the tariffs are to remain in effect until President Trump determines that "the threat posed by the trade deficit and nonreciprocal treatment" is resolved.126 These universal tariffs are subject to legal challenges.127 In 2024, Brazil's average most-favored-nation applied tariff rate was 12.0% while that of the United States was 3.3%.128 The United States has run trade surpluses with Brazil each year for more than a decade (see Figure 3).

On July 30, 2025, President Trump issued E.O. 14323, asserting that the Brazilian judiciary's approach to regulating social media and prosecution of former President Bolsonaro and his allies for alleged undemocratic activities constitute an "unusual and extraordinary threat" to the national security, foreign policy, and economy of the United States (also see "Political Polarization and Threats to Democracy" and "Democracy and Freedom of Expression").129 The E.O. invoked the NEA and IEEPA to impose an additional 40% tariff on U.S. imports from Brazil, increasing total tariffs to 50%, effective August 6, 2025. The American Chamber of Commerce in Brazil has expressed concerns that the tariffs could damage bilateral economic relations, negatively affecting companies' competitiveness, the labor market, and consumer purchasing power in both countries.130 Some U.S. trade associations have expressed support for the tariffs, including the National Cattlemen's Beef Association, which has been seeking a full suspension of Brazilian beef imports due to purported animal health concerns.131 The E.O. includes exemptions for some top U.S. imports from Brazil, including certain categories of mineral fuels, iron, and civilian aircraft and parts, among a variety of other products.132

The additional 40% tariff also does not apply to imports subject to tariffs under Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. §1862, as amended), such as steel. In 2018, during the first Trump Administration, Brazil negotiated an import quota that allowed Brazil to export up to 3.5 million metric tons of semi-finished steel products and plates and 687,000 tons of rolled steel products to the United States without facing a 25% tariff imposed under Section 232.133 President Trump eliminated that exemption on March 12, 2025, and increased the tariff on imported steel to 50%, effective June 4, 2025, asserting that such imports threaten U.S. national security.134

Taking into account the exemptions, Goldman Sachs, a multinational investment bank, reportedly estimates that the implementation of E.O. 14323 would result in an effective U.S. tariff rate on Brazilian imports of 30.8%.135 U.S. imports from Brazil could face additional tariffs as a result of an investigation of Brazil under Section 301 of the Trade Act of 1974, as amended (19 U.S.C. §§2411-2420).136 That investigation, launched on July 15, 2025, is focused on whether "Brazil's acts, policies, and practices related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption enforcement; intellectual property protection; ethanol market access; and illegal deforestation are unreasonable or discriminatory and burden or restrict U.S. commerce."137

The Lula administration lamented the U.S. imposition of Section 232 steel tariffs and 10% universal tariffs in March and April 2025, respectively, while expressing a willingness to engage in negotiations with the United States.138 President Trump's July 2025 announcement that he intended to increase tariffs on imports from Brazil to 50% elicited a sharper response from the Brazilian government. The Lula administration rejected "interference or threats" related to Brazilian judicial proceedings, and asserted that the Brazilian government would respond "in accordance with Brazil's Economic Reciprocity Law," which authorizes Brazil's executive branch to take retaliatory trade measures, including the imposition of tariffs and the suspension of intellectual property rights obligations.139 The Lula administration has stated that it remains open to discussing trade matters with the United States but Brazil's sovereignty and rule of law are nonnegotiable.140 The presidents of the Brazilian Senate and Chamber of Deputies, Davi Alcolumbre and Hugo Motta, also have condemned U.S. tariffs and vowed to defend Brazilian sovereignty while expressing an interest in dialogue, including with the U.S. Congress.141

In the face of U.S. tariffs, Brazil is seeking to bolster its trade ties with other partners. Among other efforts, the Brazilian government has pushed to finalize a Mercosur-EU free trade agreement, promoted South American integration initiatives, and sought to increase and diversify its exports to China. The Lula administration is also reportedly seeking to coordinate with other countries to challenge U.S. tariffs at the WTO.142 Options for Congress

Congress has primary authority over U.S. trade policy through its constitutional power to levy tariffs and regulate foreign commerce, though it has delegated some of that authority to the executive branch.143 Some Members of Congress have argued that the President has abused his trade authorities by imposing IEEPA tariffs and launching a Section 301 investigation to purportedly interfere in Brazil's justice system or subvert Brazil's democracy.144 Some other Members have expressed concerns that U.S. sanctions on Brazil may damage U.S.-Brazil economic relations and undermine U.S. credibility to engage in negotiations with other countries.145 Members could assess the trajectory of U.S.-Brazilian trade relations as well as the potential implications of the Trump Administration's trade policies. Such assessments could inform congressional decisions regarding potential measures to codify, terminate, or modify the Administration's tariffs on imports from Brazil. Congress also could set negotiating objectives for any trade discussions with the Brazilian government. Additionally, Congress could consider a reauthorization of the Generalized System of Preferences (GSP) program, which provided nonreciprocal, duty-free tariff treatment to certain products imported from designated developing countries, prior to its expiration on December 31, 2020.146 Brazil was the third-largest beneficiary of the program in 2020, with duty-free U.S. imports from Brazil valued at $2.2 billion.147

Security Cooperation Although U.S.-Brazilian security cooperation has been limited at times due to political disputes and policy differences, bilateral military and law enforcement ties have grown closer over the past decade. The U.S. and Brazilian governments have engaged in regular high-level security discussions, the countries' armed forces have participated in joint training and exercises, and U.S. and Brazilian law enforcement agencies have cooperated on counterterrorism and counternarcotics efforts, among other issues. The United States also has provided some military and law enforcement aid to Brazilian security forces intended to strengthen their capacities and foster interoperability and collaboration. Defense

The United States and Brazil are both parties to the Inter-American Treaty of Reciprocal Assistance, a collective security pact signed in 1947, but bilateral defense cooperation has varied over time.148 During the 1970s, for example, Brazil withdrew from a series of military agreements with the United States in response to U.S. criticism on human rights issues and U.S. opposition to a Brazilian nuclear agreement with West Germany. The countries did not conclude a new umbrella Defense Cooperation Agreement until 2010. That same year, Brazil and the United States signed a General Security of Military Information Agreement intended to facilitate the sharing of classified information. The Brazilian congress did not approve either of those agreements until 2015, due in part to a cooling of relations after press reports revealed that the U.S. National Security Agency had engaged in extensive electronic surveillance in Brazil.149 These defense agreements, negotiated as executive agreements, did not require U.S. congressional approval.150

As noted previously, in 2019, President Trump designated Brazil as a major non-NATO ally for the purposes of the Foreign Assistance Act of 1961, as amended (22 U.S.C. §§2151 et seq.), and the Arms Export Control Act (22 U.S.C. §§2751 et seq.).151 That designation makes Brazil eligible for privileged access to the U.S. defense industry and increased joint military exchanges, exercises, and training, among other benefits. According to the U.S. Embassy in Brazil, a 2020 Research, Development, Test, and Evaluation Agreement enables bilateral collaboration on basic, exploratory, and advanced technologies at a "level enjoyed only by NATO allies and the closest strategic security partners of the United States."152

The Biden Administration sought to continue strengthening U.S.-Brazilian defense ties. During annual U.S.-Brazil Strategic Defense Talks, held in August 2024, U.S. and Brazilian officials reportedly discussed various global and hemispheric security issues and cooperation in emerging defense areas, including cyber, space, and special operations.153 The countries' armed forces also engaged in several bilateral and multilateral joint exercises during the Biden Administration. In October 2024, for example, U.S. and Brazilian naval forces conducted joint training exercises intended to improve interoperability and readiness related to underwater and anti-submarine warfare.154

Brazil has received some U.S. military assistance. In FY2023 (most recent year for which data are available), the U.S. Departments of State and Defense provided nearly $1 million of military education and training to Brazil, using International Military Education and Training and Regional Defense Fellowship Program funds.155 The U.S. Department of Defense has provided some additional defense capacity building support to Brazil, using its authorities under 10 U.SC. §§332-333.156 The Trump Administration has not requested any military assistance specifically for Brazil for FY2026.

Brazil has the most advanced military manufacturing industry in Latin America. It also purchases some U.S. military equipment.157 The Biden Administration approved several major arms sales to Brazil, including Javelin missiles, valued at $74 million, in 2022, and Black Hawk Helicopters, valued at $950 million, in 2024.158 As of August 2024, the U.S. and Brazilian governments were discussing how to conclude negotiations over a reciprocal defense procurement agreement.159 It is unclear if such negotiations are continuing under the second Trump Administration.

Counterterrorism

According to the State Department's most recent Country Reports on Terrorism, in 2023, "Brazil and the United States maintained strong counterterrorism cooperation" and the Brazilian Federal Police "worked closely with the United States' and other nations' law enforcement entities to assess and mitigate potential terrorist threats."160 In November 2023, for example, the Brazilian Federal Police, reportedly acting on a tip from the U.S. Federal Bureau of Investigation, arrested three Brazilians who allegedly were plotting potential attacks against Brazil's Jewish community as part of a Hezbollah cell.161 In June 2024, the Brazilian Federal Police reportedly detained and deported a Palestinian man upon his arrival in São Paulo based on an alert from the U.S. State Department that alleged he was a "Hamas operative."162

The U.S. Department of the Treasury has imposed asset-blocking sanctions on some Brazilian individuals and entities linked to terrorism and/or terrorist financing, pursuant to Executive Order 13224, "Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or Support Terrorism." In 2010, for example, the U.S. Department of the Treasury designated Bilal Mohsen Wehbe for allegedly transferring funds collected in Brazil to Hezbollah in Lebanon. According to the Treasury Department, at the time of the designation, Wehbe served as Hezbollah's chief representative in South America, and had worked with an associate to raise more than $500,000 from Lebanese businessmen in the tri-border area of Argentina, Brazil, and Paraguay.163 More recently, in December 2021, the Treasury Department designated three Brazil-based individuals and two entities as Specially Designated Global Terrorists for allegedly providing support to al-Qa'ida.164

Counternarcotics

Brazil is not a major drug-producing country. It is the world's second-largest consumer of cocaine (after the United States), and serves as a transit point for illicit drugs destined for Africa, Europe, and the United States, according to the U.S. State Department.165 Several large, well-organized, and heavily armed criminal groups in Brazil—such as the First Capital Command (Primeiro Comando da Capital, or PCC) and the Red Command (Comando Vermelho, or CV)—are involved in transnational operations. Some analysts assess that violence in Brazil is closely correlated with battles among the PCC, CV, and their allies over emerging drug trafficking routes.166 These groups are also reportedly involved in a variety of other illicit activities, including arms trafficking and illegal mining in the Amazon.167

The U.S. State Department's Bureau of International Narcotics and Law Enforcement Affairs has provided some capacity-building support to Brazilian law enforcement to help combat drug trafficking and other organized crime. In May 2024, U.S.-trained Brazilian Federal Police officers seized more than 2.2 metric tons of cocaine in the state of Amazonas—Brazil's largest ever bulk cocaine seizure in the Amazon region.168 In April 2025, U.S. Homeland Security Investigations and the Brazilian Federal Police signed a memorandum of understanding to strengthen bilateral efforts to combat transnational crime, including by directly sharing criminal investigative intelligence.169

Nevertheless, the U.S. and Brazilian governments have disagreed on some policy matters. In May 2025, for example, the Brazilian government reportedly rejected a Trump Administration request to designate the PCC and CV as terrorist organizations, stating that they are criminal groups and would not qualify as terrorists under Brazilian law.170 The PCC has been subject to U.S. asset-blocking sanctions since 2021, pursuant to Executive Order 14059, "Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug Trade." 171

Options for Congress

Congress oversees bilateral security ties and authorizes and appropriates funding for security cooperation programs. Among other actions, Members could assess the current state of U.S.-Brazilian security relations, including the extent to which bilateral agreements approved over the past decade have enhanced bilateral ties, advanced U.S. security objectives, or both. Members also could examine how Brazil's relations with some U.S. adversaries have affected bilateral ties. For example, in the conference report accompanying the National Defense Authorization Act for Fiscal Year 2024 (H.Rept. 118-301 to P.L. 118-31), Congress directed the Secretary of Defense to produce a report assessing Iran's military ties to Brazil (as well as to Bolivia and Venezuela).172 The provision was enacted after Brazil allowed two Iranian naval vessels subject to U.S. sanctions to dock in Rio de Janeiro in February 2023. The Intelligence Authorization Act for Fiscal Year 2026 (S. 2342), as reported in the Senate, would direct the Director of National Intelligence to produce a report assessing PRC investment in Brazil's agriculture sector.173 During the FY2026 appropriations process, Congress could consider whether to appropriate military and/or law enforcement assistance specifically for Brazil or to leave such allocation decisions to the Trump Administration. The National Security, Department of State, and Related Programs Appropriations Act, 2026 (H.R. 4779/H.Rept. 119-217), as reported in July 2025, would not designate any security assistance specifically for Brazil.

Environmental Cooperation

Presidents Biden and Lula placed efforts to mitigate global climate change at the center of the U.S.-Brazil relationship. In addition to increasing diplomatic engagement on such issues, the Biden Administration sought to increase U.S. financial support for conservation in the Brazilian Amazon. In 2023, President Biden announced his intention to seek $500 million from Congress over five years for Brazil's Amazon Fund.174 The Biden Administration asserted that such funding was "a top priority for—and consistent ask from—the Brazilian government" and "central to strengthening the U.S. partnership with Brazil."175 The Biden Administration ultimately delivered $53.5 million to Brazil for the Amazon Fund between December 2023 and October 2024.176

Congress has not specifically appropriated any funding for the Amazon Fund but has designated some funding for U.S.-managed foreign assistance programs in the Brazilian Amazon in annual appropriations legislation. For example, the explanatory statement accompanying the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2024 (P.L. 118-47, Division F) designated $23.75 million for such activities.177 The Full-Year Continuing Appropriations and Extensions Act, 2025 (P.L. 119-4) funds U.S. foreign assistance programs in Brazil at the same rate, and under the same conditions and authority, as FY2024. It is unclear if the Trump Administration intends to provide this assistance to Brazil. The Trump Administration's FY2026 foreign assistance budget request does not specifically request funding for the Brazilian Amazon.178

The U.S. Agency for International Development (USAID) has been the lead U.S. agency responsible for implementing environmental assistance programs in Brazil. From 2014 to 2024, USAID coordinated such activities under the U.S.-Brazil Partnership for the Conservation of Amazon Biodiversity. That partnership brought together the U.S. and Brazilian governments, the private sector, nongovernmental organizations (NGOs), and communities—including Indigenous peoples and Quilombolas—with the stated purpose of strengthening protected area management and promoting sustainable economic activities.179

Other U.S. agencies also have been engaged in Brazil, some in collaboration with USAID. The U.S. Forest Service, for example, has provided
with 26 states, a federal district, and some 5,570
municipalities.
Brazil experienced economic recession and political uncertainty during the first decade after its
political transition. Numerous efforts to control runaway inflation failed, and two elected
presidents did not complete their terms; one died before taking office, and the other was
impeached on corruption charges and resigned.
The situation began to stabilize under President Fernando Henrique Cardoso (1995-2002) of the
center-right Brazilian Social Democracy Party (Partido da Social Democracia Brasileira, or
PSDB). Initially elected on the success of the anti-inflation Real Plan that he implemented as
finance minister under President Itamar Franco (1992-1994), Cardoso ushered in a series of
market-oriented economic reforms. His administration privatized some state-owned enterprises,
gradually opened the economy to foreign trade and investment, and adopted the three main pillars
of Brazil’s macroeconomic policy: a floating exchange rate, a primary budget surplus, and an

3 For information on U.S. policy prior to and following the coup, see Foreign Relations of the United States, 1964–
1968, Volume XXXI, South and Central America; Mexico, eds. David C. Geyer and David H. Herschler (Washington:
GPO, 2004), Documents 181-244, at https://history.state.gov/historicaldocuments/frus1964-68v31/ch5.
4 At least 8,350 Indigenous people in Brazil also were killed during the dictatorship, either directly by government
agents or indirectly due to government policies. Ministério Público Federal, Procuradoria Federal dos Direitos do
Cidadão, “PFDC Contesta Recomendação de Festejos ao Golpe de 64,” press release, March 26, 2019; and Relatório
da Comissão Nacional da Verdade
, December 10, 2014, at http://cnv.memoriasreveladas.gov.br/.
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inflation-targeting monetary policy. Nevertheless, the Brazilian state maintained an influential
role in the economy.
Brazil’s domestic reforms and a surge in international demand (particularly from China) for
Brazilian commodities—such as oil, iron, and soybeans—fostered a period of strong economic
growth in Brazil during the first decade of the 21st century. The center-left Workers’ Party
(Partido dos Trabalhadores, or PT) administration of President Luiz Inácio Lula da Silva (Lula,
2003-2010) sought to harness that growth to improve social inclusion and reduce inequality.
Among other measures, the PT-led government expanded social welfare programs and raised the
minimum wage by 64% above inflation.5 Over the course of Lula’s two terms in office, Brazil’s
poverty rate fell from 38.8% to 21.0%.6 Economic growth averaged 4.1% per year during the
same period, as Brazil’s emerging middle class fueled a domestic consumption boom that
reinforced the country’s economic expansion.7
Although living conditions initially continued to improve under the PT-led administration of
President Dilma Rousseff (2011-2016), Brazil has struggled with significant economic and
political turmoil over the past decade. The country fell into a deep recession in 2014, due to a
decline in global commodity prices and the Brazilian government’s economic mismanagement.8
Unemployment spiked as Brazil’s real gross domestic product (GDP) contracted by 8.2% over the
course of 2015 and 2016.9 During the same period, a far-reaching investigation reported that it
found evidence of systemic corruption dating back to the Lula administration that implicated
prominent Brazilian business executives and politicians from across the political spectrum. The
scandals further eroded President Rousseff’s political support, contributing to her controversial
impeachment and removal from office in 2016.10
Rousseff’s vice president, Michael Temer of the patronage-based Party of the Brazilian
Democratic Movement, served out the remainder of her term (2016-2018). His center-right
administration enacted a series of investor-backed reforms, including measures to cap
government expenditures and weaken worker protections. Those policies had little popular
support, however, and they failed to revive the Brazilian economy. At the same time, a decade-
long deterioration in security conditions accelerated, with a record-high 64,000 Brazilians (30.9
per 100,000 people) killed in 2017.11 Temer also faced several corruption charges but his
congressional allies shielded him from trial.12 In mid-2018, 9% of Brazilians expressed

5 Cristiano Romero, “O Legado de Lula na Economia,” Valor Online, December 29, 2010.
6 The poverty line is defined as the minimum amount necessary to satisfy nutritional requirement and meet other basic
needs. U.N. Economic Commission for Latin America and the Caribbean (ECLAC), CEPALSTAT database, March
2022.
7 International Monetary Fund, “World Economic Outlook Database, April 2022,” April 19, 2022. (Hereafter: IMF,
April 2022).
8 Alfredo Cuevas et al., “An Eventful Two Decades of Reforms, Economic Boom, and a Historic Crisis,” in Brazil:
Boom, Bust, and the Road to Recovery
, IMF, 2018; and Pedro Mendes Loureiro and Alfredo Saad-Filho, “The Limits
of Pragmatism: The Rise and Fall of the Brazilian Workers’ Party (2002-2016),” Latin American Perspectives, vol. 46,
no. 1 (2019).
9 IMF, Staff Report for the 2018 Article IV Consultation, June 20, 2018.
10 Felipe Nunes and Carlos Ranulfo Melo, “Impeachment, Political Crisis and Democracy in Brazil,” Revista de
Ciencia Política
, vol. 37, no. 2 (2017).
11 Fórum Brasileiro de Segurança Pública, Anuário Brasileiro de Segurança Pública, October 2021, p 20 (Hereafter:
FBSP, 2021).
12 Anna Jean Kaiser, “Brazil’s President Temer Avoids a New Corruption Trial,” Washington Post, October 25, 2017.
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satisfaction with the way democracy was working in their country—the lowest percentage in all
of Latin America.13
Bolsonaro Administration (2019-Present)
Brazilian voters registered their intense dissatisfaction with the situation in the country in the
2018 elections. In addition to ousting 75% of incumbents running for reelection to the Senate and
43% of incumbents running for reelection to the Chamber of Deputies, they elected as president,
Jair Bolsonaro, a far-right legislator and retired army captain.14 Prior to the election, many
observers considered Bolsonaro to be a fringe figure in congress. He exercised little influence
over policy and was best known for his controversial remarks defending the country’s military
dictatorship (1964-1985) and expressing prejudice toward marginalized sectors of Brazilian
society.15 Backed by the small Social Liberal Party, Bolsonaro also lacked the finances and party
machinery of his principal competitors. Nevertheless, his social media-driven campaign and
tough-on-crime message attracted a strong base of support. He outflanked his opponents by
exploiting anti-PT and antiestablishment sentiment and aligning himself with the few institutions
that Brazilians still generally trusted: the military and the churches.16 Bolsonaro largely remained
off the campaign trail after being stabbed a month before the election, but he easily defeated the
PT’s Fernando Haddad 55%-45% in a second-round runoff.
Bolsonaro campaigned on a platform pledging to combat corruption, take a hardline approach to
crime, enact market-oriented economic reforms, repeal environmental and firearms regulations,
and advance conservative social values. Since taking office in January 2019, however, he has
struggled to advance portions of his agenda through Brazil’s fragmented congress, which includes
23 political parties. Whereas previous Brazilian presidents forged governing coalitions by
distributing control of cabinet positions and other government resources to parties in exchange for
congressional support, Bolsonaro initially resisted such arrangements. Instead, he adopted a
populist approach to governance, using social media to communicate directly with his political
base, criticize opponents, and generate pressure for his agenda. Although Bolsonaro ultimately
incorporated several large patronage-based parties into his administration to ward off the threat of
impeachment, many of his preferred policies remain stalled in congress (see “Economic and
Social Policies”
, “Security Policy”, and “Environmental Policies”).17
By most accounts, President Bolsonaro’s approach to governance has placed additional stress on
Brazil’s already-strained democratic institutions. He repeatedly has escalated policy disputes with
the congress, supreme court, and state and local governments, using what is often viewed as
confrontational rhetoric and suggesting he could call upon the military for support.18 The

13 Corporación Latinobarómetro, Informe 2018, November 2018.
14 Sylvio Costa and Edson Sardinha, “O que Você Precisa Saber para Entender o Novo Congresso Brasileiro,”
Congresso em Foco, October 9, 2018.
15 See, for example, Brian Winter, “System Failure: Behind the Rise of Jair Bolsonaro,” Americas Quarterly, vol. 11,
no. 1, (January 2018).
16 Matias Spektor, “It’s Not Just the Right That’s Voting for Bolsonaro. It’s Everyone.” Foreign Policy, October 26,
2018. As of mid-2018, 58% of Brazilians expressed trust in the military and 73% expressed trust in the churches,
according to Corporación Latinobarómetro.
17 “Brazil: The ‘Old Politics’ is Back in Fashion,” Latin American Weekly Report, February 4, 2021.
18 Ricardo Brito, “Brazil’s Bolsonaro Says Military Will Not Remove Elected President,” Reuters, June 15, 2020;
Marcelo Silva de Sousa, “Brazil Leader Says Army Could be Called if Lockdown Chaos,” Associated Press, April 24,
2021; and “Brazil Pres. Oversees Military Display Viewed as Bid to Intimidate Congress,” EFE News Service, August
10, 2021.
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Brazilian armed forces are now more involved in governance than they have been at any time
since the end of the dictatorship in 1985; Bolsonaro has appointed retired and active-duty military
officers to lead nearly half of his cabinet ministries and has more than doubled the number of
such officers serving in other high-level appointed positions.19 Bolsonaro also reportedly has
sought to exert influence over law enforcement agencies to protect his family from corruption
charges and to advance his political interests.20 In addition to such efforts to intimidate or control
government institutions, Bolsonaro has engaged in frequent verbal attacks against journalists and
nongovernmental organizations (NGOs), reportedly fueling an increase in threats and violence
against such groups.21
Pandemic Response
The Bolsonaro administration’s response to the Coronavirus Disease 2019 (COVID-19) pandemic
has faced widespread criticism, both at home and abroad. Although the Brazilian government
enacted significant economic support measures to help households, businesses, and state
governments through the pandemic (see “Economic and Social Policies”), Bolsonaro has actively
opposed most of the country’s public health measures. Throughout the pandemic, he has
downplayed the threat posed by COVID-19, flouted public health guidelines, promoted unproven
treatments, and spread scientifically baseless information linking COVID-19 vaccines to HIV.22
He also has sought to overturn restrictions imposed by state and local governments, arguing the
economic impact is more damaging than the virus itself.23 A Brazilian Senate investigation found
that such actions “deliberately exposed the population to a concrete risk of mass infection,” and
recommended criminal charges against President Bolsonaro for nine different offenses, including
crimes against humanity.24 As of May 10, 2022, Brazil had reported more than 30.5 million cases
and 664,000 deaths from COVID-19 since the start of the pandemic, giving the country one of the
highest COVID-19 mortality rates (312.6 deaths per 100,000 people) in the world.25
Even as it has struggled to control the spread of the virus, Brazil has played an important role in
the development and production of COVID-19 vaccines. In 2020, the country hosted clinical
trials for COVID-19 vaccines developed by AstraZeneca/Oxford, Sinovac, and Pfizer/BioNTech.
Brazilian institutions (the Oswaldo Cruz Foundation (Fiocruz), the Butantan Institute, and
Eurofarma Laboratórios, respectively) have entered into agreements with those companies to
produce hundreds of millions of vaccine doses annually for domestic use in Brazil and for export

19 Wendy Hunter and Diego Vega, “Populism and the Military: Symbiosis and Tension in Bolsonaro’s Brazil,”
Democratization, vol. 29, no. 2 (2022), pp. 337-359.
20 Guilherme France, Brazil: Setbacks in the Legal and Institutional Anti-Corruption Frameworks, Transparency
International, November 20, 2019; Ricardo Brito, “Brazil Justice Minister Quits, Accuses Bolsonaro of Meddling in
Police,” Reuters, April 24, 2020; and Ricardo Brito, “On Tape, Boslonaro Cites Protecting His Family in Push to Swap
Top Rio Cop – Source,” Reuters, May 12, 2020.
21 Igarapé Institute, The ‘Agora’ is Under Attack: Assessing the Closure of Civic Space in Brazil and Around the World,
Strategic Paper 49, October 2020, p. 14.
22 See, for examples, “Brazil: Bolsonaro Pandemic as Death Toll Reaches New Milestone,” Latin News Daily, October
12, 2020; “Bolsonaro Rallies with Supporters Amid Virus Surge,” Agence France Presse, May 24, 2020; Ernesto
Londoño and Mariana Simões, “Defying Science, Brazil’s Leader Trumpets Unproven ‘Cure’,” New York Times, June
14, 2020; and “Brazilian President Says COVID-19 Vax and HIV Go Hand in Hand,” MercoPress, October 26, 2021.
23 “Brazil’s Sao Paulo to Get Two-Week Coronavirus Shutdown, Bolsonaro Blasts ‘Hysteria’,” Reuters, March 21,
2020; and “Brazil: Bolsonaro Expands Essential Businesses, Crosses Governors,” Latin News Daily, May 12, 2020.
24 Senado Federal, Comissão Parlamentar de Inquérito da Pandemia, Relatório Final, October 26, 2021, p. 1271.
25 Johns Hopkins, Coronavirus Resource Center, “Mortality Analyses,” at https://coronavirus.jhu.edu/data/mortality.
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to countries throughout Latin America and Africa.26 Fiocruz and the Butantan Institute are also
developing additional COVID-19 vaccines, and the Pan American Health Organization selected
Fiocruz to serve as a regional hub for the development of mRNA-based vaccines in Latin
America. Although global supply chain disruptions and delays in government planning and
procurement initially slowed Brazil’s domestic vaccination campaign, more than 77% of
Brazilians were fully vaccinated as of May 10, 2022.27 Brazil plans to donate at least 30 million
vaccine doses to low-income countries, delivering an initial 500,000 doses to Paraguay in
December 2021.28
Economic and Social Policies
President Bolsonaro has had mixed success in advancing the market-oriented economic reforms
that he campaigned on and that some economists maintain are necessary to boost Brazil’s long-
term growth potential. In 2019, the Brazilian government enacted a far-reaching pension reform
to reduce government expenditures. It also began implementing an infrastructure and natural
resource concession program that generated more than $145 billion in investments and $26
billion in government fees between 2019 and 2021.29 Those measures built on a 2016
constitutional amendment that froze inflation-adjusted government spending for 20 years in an
attempt to reduce the national debt (estimated at 93% of GDP in 2021).30 Other structural reforms
have stalled in the Brazilian congress, including measures to simplify the tax system and decrease
compensation and job security for government employees.
Over the past two years, Brazilian policymakers have focused on mitigating the economic and
social impacts of the COVID-19 pandemic. In 2020, they suspended the budget cap and enacted a
series of emergency support measures that included an expansion of a conditional cash transfer
program for low-income Brazilians, new monthly cash transfers for informal and unemployed
workers, credit and payroll assistance for small- and medium-sized businesses, and aid for state
and municipal governments. Brazil’s fiscal response, which amounted to 12% of GDP in 2020,
limited the country’s economic contraction to 3.9%.31 It also resulted in Brazil being the only
country in Latin America in which the estimated poverty rate declined between 2019 and 2020,
falling by nearly two percentage points to 18.4%.32 Brazil began to withdraw those emergency
support measures in 2021, as the economy rebounded with 4.6% growth.33 Approximately 12
million Brazilians (11.1% of the population) remained unemployed in the fourth quarter of 2021,

26 Fiocruz News Agency, “Fiocruz and AstraZeneca Make a Commitment for API Acquisition in 2022,” press release,
November 3, 2021; Instituto Butantan, “Butantan Vai Fornecer CoronaVac para Países da América do Sul e da África,
Afirma Dimas Covas,” press release, September 29, 2021; and Pfizer, “Pfizer and BioNTech Announce Collaboration
with Brazil’s Eurofarma to Manufacture COVID-19 Vaccine Doses for Latin America,” press release, August 26, 2021.
27 “Brazil Economy: Country Struggles with Slow Start to COVID-19 Vaccinations,” Economist Intelligence Unit,
January 29, 2021; Diane Jeantet and Débora Álvares, “Sidelining Experts, Brazil Bungled Its Immunization Plans,”
Associated Press, January 16, 2021; and Johns Hopkins, Coronavirus Resource Center, “Brazil,” at
https://coronavirus.jhu.edu/region/brazil.
28 Alex Rodrigues, “Brazil to Donate 10 Mi COVID-19 Shots to Low-Income Nations,” Agência Brasil, December 12,
2021; and Ministério das Relações Exteriores, “Joint Press Release by the Ministry of Foreign Affairs and the Ministry
of Health on the Donation of COVID-19 Vaccines to Paraguay,” press release Nº 182, December 27, 2021.
29 Bryan Harris, “Brazil’s Economic Outlook Buoyed by Big-ticket Investments,” Financial Times, January 4, 2022.
30 IMF, April 2022.
31 IMF, “Policy Responses to COVID-19,” July 2, 2021; and IMF, April 2022.
32 U.N. Economic Commission for Latin America and the Caribbean, Social Panorama of Latin America, 2021,
January 2022.
33 IMF, April 2022.
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however, and rising energy prices and global supply bottlenecks drove Brazil’s annual inflation
rate above 10%.34
The International Monetary Fund forecasts that Brazil’s economic growth rate will slow to 0.8%
in 2022, due, in part, to high inflation and rising interest rates.35 In an attempt to offset the higher
cost of living, the Bolsonaro administration has reduced fuel taxes, increased cash transfers to
low-income Brazilians, and launched a stimulus program to inject about $34 billion (2.1% of
GDP) into the economy by advancing pension payments, expanding access to credit, and
allowing workers to access some mandatory savings.36 The additional expenditures may require
the Brazilian government to make cuts to other areas of the budget or readjust the country’s
spending cap.
Security Policy
President Bolsonaro has had some difficulty advancing the hardline security platform that was a
centerpiece of his 2018 electoral campaign. The Brazilian congress enacted measures to
modernize police investigations and impose more severe criminal sentences in 2019, but it has yet
to approve Bolsonaro’s proposals to shield from prosecution police who kill suspected criminals
or to roll back the country’s strict firearms regulations. With legislation stalled, Bolsonaro issued
more than 30 decrees to ease gun ownership during his first three years in office.37 Although the
Brazilian supreme court overturned some of those decrees, the number of newly registered
firearms in Brazil reportedly quadrupled from 2018 to 2021.38
In general, violence in Brazil has been trending downward in recent years. The number of
Brazilians killed annually declined nearly 22% between 2017 and 2020 to just over 50,000 (23.6
per 100,000 residents).39 During the same period, however, femicides (gender-motivated murders
of women and girls) increased by 26% and the number of individuals killed by police increased
by 24%.40 This violence disproportionately affects Afro-Brazilians, who comprised approximately
56% of Brazil’s total population in 2020 but were the victims of 62% of femicides, 76% of
homicides, and 79% of police killings.41 Preliminary data suggests homicides continued to
decline in 2021, reaching a 15-year low, but there was a slight increase in sexual violence.42
The Bolsonaro administration has claimed credit for the falling homicide rate, but security
analysts have identified a variety of other factors that have contributed to the decline, including
shifting dynamics among the country’s criminal organizations.43 Over the past decade, several

34 Instituto Brasileiro de Geografia e Estatistica (IBGE), “Continuous PNAD: Unemployment Rate is 11.1%,
Underutilization Rate is 24.3% in Quarter Ending in December,” press release, February 24, 2022; and Letter from
Roberto Oliveira Campos Neto, Presidente, Banco Central do Brasil, to Paulo Roberto Nunes Guedes, Ministro de
Estado da Economia, January 11, 2022.
35 IMF, April 2022.
36 “Bolsonaro’s Social Spending Package Targets October Election,” Economist Intelligence Unit, March 24, 2022.
37 Lais Martins, “Bolsonaro’s Pro-Gun Agenda May Become Law,” Foreign Policy, February 8, 2022.
38 “Registro de Novas Armas de Fogo por Civis Bate Recorde,” O Globo, February 22, 2022.
39 FBSP, 2021, p. 20.
40 FBSP, 2021, pp. 59 and 91.
41 FBSP, 2021, pp. 40, 67, and 98.
42 G1, Monitor da Violência, “Número de Assassinatos Cai 7% No Brasil em 2021 e é o Menor da Série Histórica,”
February 21, 2022; and FBSP, “Violência Contra Mulheres em 2021,” March 7, 2022, p. 9.
43 Samira Bueno and Renato Sérgio de Lima, “Queda de Assassinatos Mostra que Estados Regiram e Colocaram em
Prática Programas de Enfrentamento à Violência,” G1, Monitor da Violência, February 21, 2022.
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large, well-organized, and heavily armed criminal groups in Brazil—such as the First Capital
Command (Primeiro Comando da Capital, or PCC) and the Red Command (Comando Vermelho,
or CV)—have increased their transnational operations. The PCC is now among the world’s most
powerful organized crime groups, according to the U.S. Treasury Department, which imposed
sanctions on the group in December 2021.44 Violence in Brazil spiked in 2016 and 2017 as a long-
standing truce between the PCC, CV, and their local affiliates broke down and the organizations
battled for control of strategic trafficking corridors. Violence has since declined in areas where a
single group has consolidated territorial control.45
October 2022 Elections
Brazil is scheduled to hold presidential, legislative, and state elections on October 2, 2022.
President Bolsonaro has joined the center-right Liberal Party in advance of the election in an
attempt to expand his base and forge alliances with several of the county’s large patronage-based
parties. He abandoned his previous Social Liberal Party in 2019 due to disagreements with the
party’s leadership, and his efforts to establish a new Alliance for Brazil party were unsuccessful.
At this juncture, Bolsonaro appears to face a difficult path to reelection. According to a weighted
average of polls, as of May 9, 2022, 49.3% of Brazilians rated Bolsonaro’s performance in office
as “bad” or “terrible,” 30.0% rated it “good” or “great,” and 19.3% rated it “regular.”46 As his
popular support has declined, Bolsonaro has repeatedly questioned the legitimacy of Brazil’s
electoral system, raising concerns that he may seek to discredit or overturn the results of the
October elections.47
The political opposition, which has been fragmented for the past three years, has begun to
coalesce behind former President Lula (2003-2010) of the center-left PT. Lula was convicted on
corruption charges in 2017 and imprisoned for nearly two years, but the Brazilian supreme court
annulled those convictions on procedural grounds in 2021, making him once again eligible for
public office. The supreme court subsequently ruled that the judge presiding over the case for
which Lula was imprisoned had acted with bias.48 The 76-year old former president remains
popular among many Brazilians due to the significant improvements in living standards that

44 U.S. Department of the Treasury, “Treasury Uses New Sanctions Authority to Combat Global Illicit Drug Trade,”
press release, December 15, 2021.
45 G1, Monitor da Violência, “Número de Assassinatos Cai 7% No Brasil em 2021 e é o Menor da Série Histórica,”
February 21, 2022.
46 UOL, “Agregador de Pesquisas UOL,” at https://noticias.uol.com.br/reportagens-especiais/pesquisa-eleitoral-
eleicoes-2022-agregador/#page3.
47 Flávia Milhorance and Ernesto Londoño, “Brazil’s Leader Attacks Electronic Ballots and Threatens to Suspend
Vote,” New York Times, August 11, 2021; “Bolsonaro Interrompe Trégua e Retoma Ataques ao Sistema Eleitoral,”
Folha de São Paulo, February 12, 2022; and Mauricio Savarese, “Brazil’s Bolsonaro Says He Will Seek Audit of
Voting System,” Associated Press, May 5, 2022.
48 Lula faced numerous corruption charges, was convicted in two cases, and was sentenced to more than 25 years in
prison. The first conviction was upheld by a circuit court panel and Brazil’s superior court of justice, which resulted in
Lula being imprisoned in April 2018 and barred from running for a third presidential term. Lula was released from
prison in November 2019, however, after Brazil’s supreme court ruled that most individuals convicted of nonviolent
crimes should remain free until they have exhausted the appeals process. In April 2021, the supreme court annulled
Lula’s convictions on procedural grounds, and, in June 2021, the supreme court ruled that Judge Sergio Moro, who
presided over Lula’s initial conviction and went on to serve as minister of justice and public security in the Bolsonaro
administration, had acted with bias. As of March 2022, Brazilian courts had acquitted Lula in three cases and dismissed
or suspended the remaining charges against him. Ernesto Londoño and Letícia Casado, “Ex-President of Brazil Is Freed
from Prison After Ruling by Supreme Court,” New York Times, November 9, 2019; and Paulo Roberto Netto, “Lula Se
Livra de Processos, Mas Teve Só 3 Absolvições,” Poder360, March 15, 2022.
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occurred during his eight years in office. Although there continues to be a strong current of anti-
PT sentiment among some sectors of the population, Lula has taken steps to broaden his coalition.
In April 2022, for example, Lula selected Geraldo Alckmin—one of the founders of the center-
right PSDB and Lula’s 2006 presidential opponent—to serve as his running mate.49
According to one poll aggregator, as of May 4, 2022, Lula was leading Bolsonaro 43.3% to
32.8%, with several other potential candidates trailing with single digit support.50 Additional
challengers could emerge before the August 15 registration deadline. If no candidate wins more
than 50% of the valid votes, a runoff between the top two candidates is scheduled for October 30.
Amazon Conservation and Climate Change
Significant increases in fires and deforestation in the Brazilian Amazon over the past three years
have led many Brazilians and international observers to express concern about the rainforest and
the extent to which its destruction is contributing to regional and global climate change.51
Covering nearly 2.7 million square miles across seven countries, the Amazon Basin is home to
the largest and most biodiverse tropical forest in the world.52 Scientific studies have found that
the Amazon plays an important role in the global carbon cycle by absorbing and sequestering
carbon. Some estimates suggest it may hold 123 billion tons of carbon—an amount equivalent to
about 12 years of global carbon emissions.53 The Amazon also pumps water into the atmosphere,
affecting regional rainfall patterns throughout South America.54 An estimated 17% of the Amazon
Basin has been deforested, however, and some scientists have warned that the forest may be
nearing a tipping point at which it is no longer able to sustain itself and transitions to a drier,
savanna-like ecosystem.55 This cycle of deforestation and warming may reduce the forest’s
capacity to store carbon and could result in the Amazon becoming a net carbon source.56
Efforts to conserve the forest often focus on Brazil, since the country encompasses about 69% of
the Amazon Basin.57 Within Brazil, the government has established an administrative zone known
as the Legal Amazon, which is comprised of nine states that fall within the Amazon Basin (see
Figure 1). Although rainforest covers most of the Legal Amazon, savanna (Cerrado) and

49 Alckmin left the PSDB in December 2021 and joined the center-left Brazilian Socialist Party in March 2022 in
anticipation of the alliance with Lula.
50 UOL, “Agregador de Pesquisas UOL,” at https://noticias.uol.com.br/reportagens-especiais/pesquisa-eleitoral-
eleicoes-2022-agregador/#page2.
51 For more information, see CRS In Focus IF11306, Fire and Deforestation in the Brazilian Amazon, by Pervaze A.
Sheikh et al.
52 Portions of Bolivia, Brazil, Colombia, Ecuador, Guyana, Peru, and Venezuela are located in the Amazon Basin. The
rainforest extends beyond the Amazon Basin into Suriname and French Guiana. United Nations Environment
Programme, Global International Waters Assessment: Amazon Basin, GIWA Regional Assessment 40b, Kalmar,
Sweden, 2004, p. 15 (Hereafter: UNEP 2004).
53 Luciana V. Gatti et al., “Amazonia as a Carbon Source Linked to Deforestation and Climate Change,” Nature, vol.
595 (July 15, 2021), p. 388; and Pierre Friedlingstein et al., “Global Carbon Budget 2021,” Earth System Science Data,
Preprint (November 4, 2021), p. 26.
54 D. C. Zemp et al., “Deforestation Effects on Amazon Forest Resilience,” Geophysical Research Letters, vol. 44, no.
12 (2017).
55 Thomas Lovejoy and Carlos Nobre, “Amazon Tipping Point: Last Chance for Action,” Science Advances, vol. 5, no.
12 (2019).
56 Luciana V. Gatti et al., “Amazonia as a Carbon Source Linked to Deforestation and Climate Change,” Nature, vol.
595 (July 15, 2021), pp. 388-393.
57 UNEP, 2004, p. 16.
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wetlands (Pantanal) are also present in portions of the region. The Legal Amazon was largely
undeveloped until the 1960s, when the military-led government began subsidizing the settlement
and development of the region as a matter of national security. Partially due to those incentives,
roads, logging, mining, agriculture, and other activities proliferated in the region, and the Legal
Amazon’s human population grew from 7.1 million in 1970 to 28.1 million in 2020.58 About
19.5% of the Amazon forest located within Brazil had been lost as of 2020.59
Environmental Policies
In 2004, the Brazilian government adopted an action plan to prevent and control deforestation in
the Legal Amazon.60 It increased surveillance in the Amazon region, began to enforce
environmental laws and regulations more rigorously, and took steps to consolidate and expand
protected lands. More than 22% of the Legal Amazon now has some sort of federal or state
protected status, and the Brazilian government has recognized more than 23% of the region as
Indigenous or Quilombola territories.61 Brazil’s forest code also requires private landowners in
the Amazon biome to maintain native vegetation on 80% of their properties.
Other Brazilian initiatives have sought to support sustainable development in the Amazon while
limiting the extent to which the country’s agricultural sector drives deforestation. In 2008, the
Brazilian government began conditioning credit on farmers’ compliance with environmental
laws; in 2009, the government banned new sugarcane plantations in the Legal Amazon. The
Brazilian government also supported private sector conservation initiatives. Those included a
2006 voluntary agreement among most major soybean traders not to purchase soybeans grown on
lands deforested after 2006 (later revised to 2008) and a 2009 voluntary agreement among
meatpackers not to purchase cattle raised on lands deforested in the Amazon after 2008.
Brazil’s public and private conservation efforts, combined with economic factors that made
agricultural commodity exports less profitable, led to an 83% decline in deforestation in the Legal
Amazon between 2004 and 2012.62 Deforestation has increased significantly in recent years,
however, rising from a low of 1,765 square miles in 2012 to 5,110 square miles in the 12-month
monitoring period that ended in July 2021 (see Figure 2). Analysts have linked the increase in
deforestation to a series of government policy reversals that have cut funding for environmental
enforcement, reduced the size of protected areas, and relaxed conservation requirements.63
Market incentives, such as the growth in Chinese imports of Brazilian beef and soybeans and
record-high gold prices, also have contributed to recent deforestation trends.64

58 Daniel Santos, Rodney Salomão, and Adalberto Veríssimo, Fatos da Amazônia 2021, Amazônia 2030, March 2021,
p. 10 (Hereafter: Amazônia 2030, March 2021).
59 Amazônia 2030, March 2021, p. 16.
60 Presidência da República, Casa Civil, Plano de Ação para a Prevenção e Controle do Desmatamento na Amazônia
Legal
, March 2004.
61 Quilombolas are inhabitants of communities founded by individuals who escaped or were freed from slavery.
Amazônia 2030, March 2021, p. 21.
62 Philip Fearnside, “Business as Usual: A Resurgence of Deforestation in the Brazilian Amazon,” Yale Environment
360
, April 18, 2017 (Hereafter: Fearnside, “Business as Usual.”); and Instituto Nacional de Pesquisas Espaciais, “Taxa
PRODES Amazônia – 2004 a 2021 (km²),” November 19, 2021.
63 Fearnside, “Business as Usual”; and William D. Carvalho et al., “Deforestation Control in the Brazilian Amazon: A
Conservation Struggle Being Lost as Agreements and Regulations Are Subverted and Bypassed,” Perspectives in
Ecology and Conservation
, vol. 17, no. 3 (2019).
64 Gustavo Faleiros, “China’s Brazilian Beef Demand Linked to Amazon Deforestation Risk,” Diálogo Chino, October
23, 2019; André Vasconcelos, “Uncovering the Deforestation and Climate Risks of Chinese and EU Soy and Beef
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Although changes that weakened Brazil’s environmental policies began under President Rousseff
and continued under President Temer, some analysts argue that the Bolsonaro administration’s
approach to the Amazon has emboldened individuals engaged in illegal logging, mining, and land
grabbing.65 Bolsonaro has fiercely defended Brazil’s sovereignty over the Legal Amazon and its
right to develop the region. Since taking office, his administration has lifted the ban on new
sugarcane plantations in the Legal Amazon and called for an end to the soy moratorium. It also
has proposed measures—to date, not enacted by the Brazilian congress—to provide property
titles to individuals illegally occupying public lands and to allow commercial agriculture, mining,
and hydroelectric projects in Indigenous territories. The Bolsonaro administration argues that
such economic activities would benefit those living in the region and reduce incentives for illegal
deforestation.
Figure 2. Deforestation in Brazil’s Legal Amazon: 2004-2021

Source: CRS presentation of data from the Brazilian government’s Instituto Nacional de Pesquisas Espaciais,
“Taxa PRODES Amazônia – 2004 a 2021 (km²),” November 19, 2021, at http://www.obt.inpe.br/OBT/assuntos/
programas/amazonia/prodes.
Note: Annual monitoring periods run from August to July (e.g., 2021 data include deforestation from August
2020 to July 2021).
At the same time, Bolsonaro has questioned the Brazilian government’s deforestation data and
scaled back environmental enforcement. Between 2018 and 2021, Amazon deforestation
increased by nearly 76% (see Figure 2), while Brazil’s primary environmental enforcement
agency reportedly issued 40% fewer fines for crimes against flora, imposed 70% fewer embargos
on rural properties for illegal deforestation, and conducted 81% fewer seizures in 2021 than it had

Imports from South America,” Woodrow Wilson International Center for Scholars, January 2022; and Joshua Howat
Berger and Valeria Pacheco, “New Gold Rush Fuels Amazon Destruction,” Agence France Presse, November 9, 2021.
65 Philip M. Fearnside, “Brazil’s Amazon Gold Mining to be ‘Stimulated’ by Bolsonaro’s Decree,” Mongabay,
February 22, 2022; and Gil Alessi, “The Amazon Rainforest Under Bolsonaro: A Story of Fire and Violence in Brazil,”
El País, September 16, 2021.
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in 2018.66 Although the Bolsonaro administration deployed the armed forces to the Amazon in a
series of operations, critics contend the military presence was ineffective and even hindered some
enforcement efforts due to the armed forces’ lack of experience in detecting and responding to
environmental crimes.67
Paris Agreement Commitments
The rising levels of Amazon deforestation may call into question whether Brazil will meet its
commitments under the Paris Agreement on climate change. In 2016, Brazil committed to reduce
greenhouse gas emissions by 37% below 2005 levels by 2025 and by 43% below 2005 levels by
2030.68 As of 2016, Brazil was on track to meet those commitments. Greenhouse gas emissions
declined by 12% per year from 2006 to 2016, as significant reductions in deforestation offset
slight increases in emissions from other sources.69
Although President Bolsonaro pledged to withdraw from the Paris Agreement during his 2018
election campaign, he reversed course following his inauguration, reportedly stating that Brazil
would remain in the agreement “for now.”70 In 2020, Brazil submitted an updated Nationally
Determined Contribution (NDC) that reaffirmed its previous Paris Agreement commitments but
recalculated the 2005 baseline, allowing higher absolute emissions in each of the target years (see
Table 1). Many observers criticized Brazil’s updated NDC as contrary to the spirit of the Paris
Agreement, which calls for countries to adopt increasingly more ambitious goals.71
Table 1. Evolution of Brazil’s Paris Agreement Commitments
NDC
2025 Target
2030 Target
Net Zero Emissions
Date
Target Date
Compared to
GtCO2e
Compared to
GtCO2e
2005
2005
2016
-37%
1.30
-43%
1.20
none
2020
-37%
1.79
-43%
1.62
2060
2022
-37%
1.61
-50%
1.28
2050
Source: CRS presentation of data from “Natalie Unterstel and Nathália Martins, NDC: Analysis of the 2022
Update Submitted by the Government of Brazil
, Instituto Talanoa, 2022, p. 5.
Notes: NDC = Nationally Determined Contribution; GtCO2e = gigatonnes of carbon dioxide equivalent.
Brazil’s calculation of its 2005 baseline emissions changed from 2.10 GtCO2e in 2016 to 2.84 GtCO2e in 2020 to
2.56 GtCO2e in 2022.

66 Observatório Do Clima, The Bill Has Come Due: The Third Year of Environmental Havoc Under Jair Bolsonaro,
February 2022, pp. 12-13.
67 Terrence McCoy and Heloísa Traiano, “Bolsonaro Sent Soldiers to the Amazon to Curb Deforestation. Here’s How
the Effort Failed,” Washington Post, January 3, 2021; and Jake Spring, “Special Report-Brazil’s Military Fails in Key
Mission: Halting Amazon Deforestation,” Reuters, March 24, 2021.
68 Federative Republic of Brazil, Intended Nationally Determined Contribution, September 21, 2016.
69 UNEP, Emissions Gap Report 2018, November 27, 2018, p. 9.
70 “Brazil to Remain in Paris Agreement ‘for Now,’ Bolsonaro Says,” Valor International, January 22, 2019.
71 Observatório Do Clima, NDC and the Carbon Trick Maneuver: How Brazil Reduced the Ambition of Its Goals under
the Paris Agreement
, December 10, 2020; and WWF-Brazil, “New Brazilian NDC Reduces the Country’s Climate
Ambition, Against the Spirit of the Paris Agreement,” December 11, 2021.
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In the face of growing international scrutiny over its environmental policies, the Bolsonaro
administration pledged to strengthen its Paris Agreement commitments at the November 2021
U.N. climate change conference. In March 2022, Brazil submitted an updated NDC that reaffirms
Brazil’s 2025 target, commits to reduce greenhouse gas emissions by 50% below 2005 levels by
2030, and sets a goal of net zero emissions by 2050.72 Due to another recalculation of the 2005
baseline, however, Brazil’s absolute emissions targets for 2025 and 2030 remain 0.31 gigatonnes
of carbon dioxide equivalent (GtCO₂e) and 0.08 GtCO₂e higher, respectively, than the levels
assumed in the country’s 2016 NDC.73
A 2021 U.N. Environment Program report assessed that Brazil was unlikely to achieve its original
2016 NDC targets under current policies.74 In 2020, the most recent year for which
comprehensive data are available, Brazil’s annual greenhouse gas emissions increased by an
estimated 9.5% (to 2.16 GtCO₂e). The increase was driven by a 23.7% increase in emissions from
the forestry and other land use sector, which accounted for 46% of Brazil’s total emissions.75
Conversely, emissions from the energy sector declined by 4.5% in 2020, as renewable energy
sources accounted for 40% of Brazil’s primary energy production and 83% of the country’s
installed electricity generation capacity.76
Brazil has adopted some new emission mitigation measures over the past two years. In 2021, it
enacted a national policy on payments for environmental services to regulate voluntary
agreements that compensate individuals and communities for protecting forests and other natural
resources. Brazil also launched an “Adopt a Park” program to attract private funding for
conservation efforts. A bill to establish a voluntary carbon market in line with the international
carbon markets established by the Paris Agreement is under consideration in the Brazilian
congress. Although Brazil has reiterated its call for higher income countries to fund these types of
conservation and sustainable development projects, the Bolsonaro administration has yet to reach
agreements with the governments of Norway and Germany to release more than $580 million
donated through Brazil’s Amazon Fund for such efforts.77 The funding has been frozen since
2019, when the Bolsonaro administration unilaterally restructured the governance of the fund and
Amazon deforestation began to accelerate.
U.S.-Brazilian Relations
The United States and Brazil historically have enjoyed robust political and economic relations but
the countries’ divergent perceptions of their national interests have inhibited the development of a
close partnership. That began to change, to a certain extent, after President Bolsonaro took office.
Whereas previous Brazilian governments generally sought to maintain autonomy in foreign
affairs, Bolsonaro called for alignment with the United States. He coordinated closely with the

72 Federative Republic of Brazil, Nationally Determined Contribution, March 21, 2022.
73 “CO₂e” is a metric used to express the impact of emissions from differing greenhouse gasses in a common unit by
converting each gas to the equivalent amount of CO₂ that would have the same effect on increasing global average
temperature. Natalie Unterstell and Nathália Martins, NDC: Analysis of the 2022 Update Submitted by the Government
of Brazil
, Instituto Talanoa, 2022.
74 UNEP, The Heat Is On, A World of Climate Promises Not Yet Delivered: Emissions Gap Report 2021, October 26,
2021, pp. 13-14.
75 Observatório do Clima, “Análise das Emissões Brasileiras de Gases de Efeito Estufa do Brasil e Suas Implicações
para as Metas de Clima do Brasil 1970-2020,” 2021, pp. 3-4.
76 Ibid; Ministério de Minas e Energia, Brazilian Energy Balance: Year 2020, 2021, pp. 20, 23.
77 “COP26: Brazil’s Climate Vows ‘Not Enough’ to ‘Unblock Resources’ for Amazon Fund,” BBC Monitoring,
November 17, 2021; and Amazon Fund, “Portfolio Report,” February 28, 2022.
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Trump Administration on regional challenges, such as the crisis in Venezuela, and frequently
supported the Trump Administration within multilateral organizations.
The Trump Administration welcomed Bolsonaro’s rapprochement and sought to strengthen
bilateral ties. In 2019, for example, the Trump Administration designated Brazil as a major non-
NATO ally (see “Defense Cooperation”). The Trump Administration also pursued trade
negotiations with Brazil, concluding a Protocol on Trade Rules and Transparency in 2020, which
aims to foster cooperation on trade facilitation and customs administration, good regulatory
practices, and anti-corruption measures (see “Commercial Relations”).
Relations appear to have cooled somewhat under President Biden, suggesting those advances in
bilateral ties reflected Bolsonaro’s personal and ideological rapport with President Trump rather
than a growing alignment between Brazil and the United States. Bolsonaro was among the last
world leaders to recognize President Biden’s election, and, as of April 2022, the two leaders had
yet to speak directly.78 Although some Members of Congress have called on the Biden
Administration to condition U.S. relations with Brazil on Bolsonaro’s environmental policies and
respect for democracy and human rights, the Biden Administration generally has avoided direct
confrontations with the Brazilian president.79 Instead, the Administration has sought to foster
positive engagement on such issues. The Administration invited Bolsonaro to participate in the
April 2021 Leaders Summit on Climate (see “Environmental Cooperation”) and the December
2021 Summit for Democracy, and relaunched the U.S.-Brazil Human Rights Working Group. The
Administration also has continued to support Brazil’s COVID-19 response, with total assistance
to Brazil since the start of the pandemic amounting to more than $58 million and 5 million
vaccine doses.80 Moreover, U.S.-Brazil commercial ties have continued to expand, with bilateral
merchandise trade reaching a record high in 2021 (see “Trade and Investment Flows”).
Environmental Cooperation
President Biden has placed conservation of the Amazon forest and other efforts to mitigate global
climate change at the center of his policy toward Brazil. During his presidential campaign, Biden
proposed a $20 billion international fund to support conservation in the Amazon, and asserted that
Brazil would face “significant economic consequences” if it did not curb deforestation.81
President Bolsonaro rejected that idea, reportedly stating that he “does not accept bribes ... or
coward threats toward [Brazil’s] territorial and economic integrity.”82 Since President Biden’s
inauguration, however, Bolsonaro has expressed a willingness to work with the United States to
combat deforestation and climate change.83

78 White House, “Press Briefing by Press Secretary Jen Psaki,” April 25, 2022.
79 Letter from Patrick Leahy, U.S. Senator et al. to President Joseph Biden, April 16, 2021; Letter from Henry C.
“Hank” Johnson Jr., Member of Congress et al. to President Joseph Biden, October 14, 2021; Brian Winter, “The Silent
Partner,” Revista Piauí, September 2021.
80 U.S. Embassy & Consulates in Brazil, “U.S.-Brazil High Level Dialogue 2022: Economic Growth & Prosperity,”
April 25, 2022.
81 “CNN and Univision Host Democratic Presidential Candidates Debate in Washington, D.C.,” CQ Newsmaker
Transcripts
, March 15, 2020; and “Case Western Reserve University and the Cleveland Clinic Hold the First 2020
Presidential Debate in Cleveland,” CQ Newsmaker Transcripts, September 29, 2020.
82 Mauricio Savarese, “Brazil President Calls Biden’s Amazon Comments ‘Disastrous,” Associated Press, September
30, 2020.
83 Letter from Jair Bolsonaro, President of the Federative Republic of Brazil, to Joseph Biden, President of the United
States of America, April 14, 2021.
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Biden Administration officials, led by Special Presidential Envoy for Climate John Kerry, have
engaged extensively with Brazil to encourage the country to strengthen its environmental policies
and to explore potential areas for cooperation. During the April 2021 Leaders Summit on Climate,
Bolsonaro pledged to double funding for environmental enforcement efforts, reiterated Brazil’s
commitment to end illegal deforestation by 2030, and stated that Brazil would reduce its net
greenhouse gas emissions to zero by 2050—10 years earlier than the country’s previous goal.84
The Brazilian government announced more ambitious targets at the November 2021 U.N. climate
change conference, pledging to eliminate illegal deforestation by 2028 and reduce greenhouse-gas
emissions by 50% compared with 2005 levels by 2030.85 Brazil has incorporated those emission
cuts into its updated NDC (see “Paris Agreement Commitments”).
In November 2021, the Biden Administration released a Plan to Conserve Global Forests:
Critical Carbon Sinks
, which calls for the United States to dedicate $9 billion by 2030 to efforts
to halt forest loss, restore critical carbon sinks, and improve land management worldwide.86 The
plan was issued pursuant to Executive Order 14008, “Tackling the Climate Crisis at Home and
Abroad,” which directed the Secretaries of State and the Treasury—in coordination with other
agencies—to develop a plan for promoting the protection of the Amazon and other critical
ecosystems.87 Nevertheless, the Administration’s foreign assistance funding requests for Brazil
have remained relatively limited. For FY2023, the Administration is requesting $35 million to
support conservation and natural resource management in the Brazilian Amazon, which is $10
million more than Congress appropriated for such programs for FY2022 (P.L. 117-103) and $18
million more than Congress appropriated for FY2021 (P.L. 116-260).88 Administration officials
have indicated that more extensive U.S. financial support would be contingent on Brazil
achieving concrete results in reducing illegal deforestation.89 As noted previously, deforestation in
the Brazilian Amazon reached a 15-year high between August 2020 and July 2021 (see Figure 2).
The Biden Administration’s FY2023 funding request would build on decades of U.S. support for
conservation efforts in Brazil. The U.S. Agency for International Development (USAID) is the
lead U.S. agency responsible for implementing environmental assistance activities in Brazil.
USAID coordinates activities under the U.S.-Brazil Partnership for the Conservation of Amazon
Biodiversity (PCAB), launched in 2014 to bring together the U.S. and Brazilian governments,
private sector companies, and NGOs to strengthen protected area management and promote
sustainable development in the Amazon. In addition to providing assistance for federally and
state-managed protected areas, USAID works with Indigenous and Quilombola communities to
strengthen their capacities to manage natural resources and improve their livelihoods. USAID
also supports the private sector-led Partnership Platform for the Amazon, which facilitates private
investment in innovative conservation and sustainable development activities.90 In FY2020, as

84 “Confira Discurso do Presidente Bolsonaro na Cúpula do Clima,” Agência Brasil, April 22, 2021.
85 Embassy of Brazil, “Brazil Announces New, Ambitious Climate Goals at COP26,” November 1, 2021.
86 White House, Plan to Conserve Global Forests: Critical Carbon Sinks, November 2021, p. 4.
87 Executive Order 14008, “Tackling the Climate Crisis at Home and Abroad,” 86 Federal Register 7619-7633,
February 1, 2021.
88 U.S. Department of State, Congressional Budget Justification, Department of State, Foreign Operations, and Related
Programs, Fiscal Year
2023, March 2022, pp. 90, 158.
89 Ned Price, Department Spokesperson, “Department Press Briefing,” U.S. Department of State, April 20, 2021; and
Jake Spring, “Brazil Demand for U.S. to Pay Upfront Stalls Deal to Save Amazon Forest,” Reuters, April 15, 2021.
90 USAID, “Brazil: Bilateral Biodiversity Conservation,” January 19, 2022, at https://www.usaid.gov/brazil/our-work/
environmental-partnerships.
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deforestation increased overall in Brazil, it decreased by 29% in protected areas and by 49% in
protected areas receiving USAID support.91
Several other U.S. agencies are engaged in Brazil, often in collaboration with USAID. The U.S.
Forest Service, for example, provides technical assistance to the Brazilian government, NGOs, technical assistance to the Brazilian government, NGOs,
and cooperatives intended to improve protected area management, reduce the threat of fire, and cooperatives intended to improve protected area management, reduce the threat of fire,
conserve migratory bird habitat, and facilitate the establishment of sustainable value chains for conserve migratory bird habitat, and facilitate the establishment of sustainable value chains for
forest products. NASA has provided data and technical support to Brazil to help the country better forest products. NASA has provided data and technical support to Brazil to help the country better
monitor Amazon deforestation. Other agencies, such as the U.S. Fish and Wildlife Service, have monitor Amazon deforestation. Other agencies, such as the U.S. Fish and Wildlife Service, have
providedassisted Brazil in law enforcement law enforcement support to Brazil to help the country to combat wildlife trafficking, illegal combat wildlife trafficking, illegal
logging, and other conservation crimes. logging, and other conservation crimes.
Some Members of Congress have called on the Brazilian and U.S. governments to do more to
conserve the Amazon. The United States Climate Leadership in International Mitigation,
Adaptation, and Technology Enhancement (CLIMATE) Act of 2021 (S. 1201), introduced in
April 2021, includes a provision that would direct the Secretary of State to engage with Brazil on
environmental enforcement, sustainable development, and emissions reduction efforts. It also
would express the sense of Congress that the President should consider Brazil’s land use policies
in the Amazon when negotiating bilateral agreements with Brazil or engaging with Brazil in
international forums.92 The Fostering Overseas Rule of law and Environmentally Sound Trade
(FOREST) Act of 2021 (H.R. 5508/S. 2950), introduced in October 2021, could also affect U.S.
relations with Brazil. Among other provisions, the measure would prohibit the importation of
certain commodities produced on illegally deforested land—including cattle and soybeans—and
establish a fund to assist foreign governments and civil societies in combatting deforestation.
Defense Cooperation
Although the United States and Brazil are both parties to the Inter-American Treaty of Reciprocal
Assistance, a collective security pact signed in 1947, the countries’ independent foreign and
defense policies historically have limited bilateral security cooperation.93 During the 1970s, for
example, Brazil withdrew from a series of military agreements with the United States in response
to U.S. criticism on human rights issues and U.S. opposition to a Brazilian nuclear agreement
with West Germany. The countries did not conclude a new umbrella Defense Cooperation
Agreement until 2010. That same year, Brazil and the United States signed a General Security of
Military Information Agreement intended to facilitate the sharing of classified information. The
Brazilian congress did not approve either of those agreements until 2015, however, due to a
cooling of relations after press reports revealed that the U.S. National Security Agency had
engaged in extensive surveillance in Brazil.94
In 2019, President Bolsonaro took office pledging to pursue closer ties with the United States and
the Trump Administration designated Brazil as a major non-NATO ally for the purposes of the
Foreign Assistance Act of 1961, as amended (22 U.S.C. §2321k), and the Arms Export Control

91 USAID, Report to Congress on Programs in Forestry and the Conservation of Biodiversity during Fiscal Year 2020:
Results and Funding
, February 2, 2022, p. 3.
92 S. 1201, §507.
93 Cooperation was closer during the first half of the 20th century, when Brazil was the only Latin American country to
deploy forces to Europe during World War II. The 25,000-strong Brazilian Expeditionary Force fought as a division
within the United States Fifth Army in Italy.
94 “Brazil President Postpones US Visit over Spying,” Voice of America, September 17, 2013.
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Act (22 U.S.C. §§2751 et seq.).95 The Secretary of Defense, with the concurrence of the Secretary
of State, had previously designated Brazil as major non-NATO ally for the purposes of 10 U.S.C.
2350a. Among other benefits, those designations grant Brazil privileged access to U.S. military
training and equipment, and eligibility for cooperative research and development projects.96
The Biden Administration has sought to continue strengthening U.S.-Brazilian defense ties. To
enhance interoperability among U.S., Brazilian, and partner forces, the Administration has invited
Brazil to host the 2022 UNITAS multinational maritime exercise conducted annually in Latin
America and the Caribbean and has expressed support for Brazil’s participation as a NATO global
partner.97 U.S. and Brazilian officials are also exploring potential collaboration to train troops
contributed by other countries to U.N. peacekeeping operations. During the Fourth Annual U.S.-
Brazil Strategic Defense Talks, held in December 2021, U.S. and Brazilian officials identified
steps to deepen cooperation in the areas of space, cyber, and research and development.98
In FY2021, the U.S. government provided Brazil $650,000 of International Military Education
and Training (IMET) assistance to strengthen military-to-military relationships, increase the
professionalization of Brazilian forces, and enhance the Brazilian military’s capabilities. The
Biden Administration is requesting $800,000 of IMET for Brazil in FY2023 (FY2022 allocations
are not yet available).99
Geopolitical Issues
Although recent bilateral defense agreements and the U.S. designation of Brazil as a major non-
NATO ally have laid a foundation for closer U.S.-Brazilian military ties, the long-term trajectory
of the defense relationship may depend on broader geopolitical considerations. In recent years,
the U.S. Southern Command has expressed increasing concern about the presence of China and
Russia in the Western Hemisphere and has called for enhanced security cooperation with Brazil
and other Latin American countries to counter such “malign actors.”100 Many within Brazil’s
military and foreign policy establishments are wary of becoming embroiled in global power
rivalries, however, and view diversified diplomatic, economic, and military ties as the best way to
advance the country’s interests and national development.101
These differing perceptions of their national interests have led the United States and Brazil to
diverge on certain international security issues. For example, the Trump and Biden
Administrations urged Brazil to exclude equipment from Chinese companies like Huawei from

95 White House, “Designation of the Federative Republic of Brazil as a Major Non-NATO Ally,” Presidential
Determination No. 2019-21 of July 31, 2019, 84 Federal Register 43035, August 19, 2019.
96 For more information, see U.S. Department of State, Bureau of Political Military Affairs, “Major Non-NATO Ally
Status,” fact sheet, January 20, 2021, at https://www.state.gov/major-non-nato-ally-status/.
97 NATO global partners are not formal members of the alliance, but work with NATO on common security challenges.
98 U.S. Department of Defense, “Readout of the 4th Annual U.S.-Brazil Strategic Defense Talks,” press release,
December 16, 2021.
99 U.S. Department of State, Congressional Budget Justification, Department of State, Foreign Operations, and Related
Programs, Fiscal Year 2023
, March 28, 2022, p. 176.
100 General Laura J. Richardson, Commander, United States Southern Command, “Statement Before the 117th
Congress, House Armed Services Committee,” March 8, 2022.
101 “Bolsonaro Wants Closer Security Ties with Washington. Does Brazil’s Military?” World Politics Review, April 5,
2019; Benoni Belli and Filipe Nasser, “Brazil: Coupling Multipolarity with Multilateralism,” in The Road Ahead: The
21st Century World Order in the Eyes of Policy Planners
(Brasília: Fundação Alexandre de Gusmão, 2018); and
Adriana Erthal Abdenur, “Brazil as a Rising Power: Coexistence through Universalism,” in The BRICS and
Coexistence: An Alternative Vision of World Order
(Routledge, 2015), pp. 49-74.
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Brazil’s fifth-generation (5G) telecommunications infrastructure. U.S. officials warned their
Brazilian counterparts that such equipment could compromise Brazil’s national security and
intellectual property and potentially jeopardize military and intelligence cooperation with the
United States.102 U.S. officials also offered financing to assist Brazilian telecommunications
companies in purchasing 5G equipment from other providers.103 Many Brazilian officials and
businesses, however, were concerned that excluding Huawei could increase costs, delay the
rollout of 5G technology, and damage relations with China—Brazil’s top trade partner.104 The
Bolsonaro administration ultimately decided to allow Huawei equipment in the country’s
commercial 5G infrastructure but to exclude it from a separate network for government
communications.105
The United States and Brazil also have differed in their responses to Russia’s invasion of
Ukraine. The Biden Administration criticized President Bolsonaro’s February 2022 trip to
Moscow, where he met with President Vladimir Putin and expressed solidarity with Russia as it
amassed troops along the Ukrainian border.106 Among other objectives, Bolsonaro reportedly
hoped to obtain Russian technical support for Brazil’s efforts to build a nuclear-powered
submarine.107 Since the invasion, Brazil, which is serving on the U.N. Security Council for the
2022-2023 term, has voted in favor of U.N. resolutions demanding Russia’s unconditional
withdrawal from Ukraine while criticizing other countries’ “indiscriminate application of
sanctions and the deployment of arms” to Ukraine.108 Brazil also opposed or abstained from
voting on several U.S.-backed measures to expel Russia from international organizations,
asserting that such measures impede the dialogue needed to resolve the situation.109 Beyond their
impact on the conflict itself, the Bolsonaro administration has expressed concerns that sanctions
could negatively affect Brazil’s agribusiness sector, which is dependent on Russia for about 20%
of its fertilizer supply.110

102 U.S. Embassy & Consulates in Brazil, “Under Secretary Keith Krach’s Remarks on Economic Security,” November
11, 2020; and “Brazil Report: US Insists on Keeping China’s Huawei Out of Brazilian 5G Market,” BBC Monitoring,
July 14, 2021.
103 “U.S. Offers Brazil Funding to Buy 5G Gear from Huawei Rivals-Diplomat,” Reuters, June 23, 2020; and Export-
Import Bank of the United States, “EXIM Signs $1 Billion Memorandum of Understanding with Brazil Ministry of
Economy in Ceremony with President Bolsonaro of Brazil and U.S. National Security Advisor Robert O’Brien,” press
release, October 20, 2020.
104 “Maia in Favor of Chinese Suitors for 5G Technology,” Valor International, June 16, 2020; and “Teles Defendem
Huawei no 5G para Evitar Repasses de Custos ao Consumidor,” Folha de São Paulo, December 8, 2020.
105 Anne Warth, “Huawei Está Descartada de Rede do Governo, Diz Ministro,” Estado de São Paulo, March 10, 2021.
106 White House, “Press Briefing by Press Secretary Jen Psaki, Deputy National Security Advisor for Cyber and
Emerging Technology Anne Neuberger, and Deputy National Security Advisor for International Economics and
Deputy NEC Director Daleep Singh,” February 18, 2022.
107 Anthony Boadle and Vladimir Soldatkin, “Boslonaro Says Brazil Keen on Russian Nuclear Reactors, No Mention of
Ukraine,” Reuters, February 16, 2022; and “US Refusal Made Bolsonaro Ask Putin for Help with Nuclear Submarine,”
Folha de São Paulo, March 17, 2022.
108 Ministério das Relações Exteriores, “Explanation of Vote by the Permanent Representative Ambassador Ronaldo
Costa Rilho in the General Assembly Debate on Ukraine,” Press Release N. 36, March 2, 2022.
109 Ministério das Relações Exteriores, “Resolução da Assembleia Geral da ONU sobre a Suspensão do ‘Status’ da
Rússia como Membro do Conselho de Direitos Humanos,” Press Release N. 60, April 7, 2022; and Mariana Sanches,
“Nos EUA, Guedes Diz que ‘Brasil é Contra Guerra e Contra Sanções’ e que País ‘Pertence aos BRICS, Não à
OCDE’,” BBC News Brasil, April 19, 2022.
110 Gabriel Stargardter, “Bolsonaro Won’t Condemn Putin, Says Brazil Will Remain Neutral Over Invasion,” Reuters,
February 27, 2022; and “Fertiliser Shortage Jeopardizes Agricultural Output in 2023,” Economist Intelligence Unit,
April 4, 2022.
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Human Rights Concerns
Some Members of Congress have sought to ensure that U.S. military engagement with Brazil
does not contribute to human rights abuses. They have expressed particular concern that a 2019
technology safeguards agreement, which enables the launch of spacecraft and satellites that use
U.S. technology from Brazil’s Alcântara Space Center, could result in the expansion of the center
and the forced relocation of hundreds of Quilombola families.111 The House-passed version of the
National Defense Authorization Act for FY2022 (NDAA, H.R. 4350) would have prohibited the
use of any Department of Defense-managed security assistance to support Brazilian security
forces in the involuntary relocation of Indigenous or Quilombola communities in Brazil. That
provision was not included in the final FY2022 NDAA legislation (P.L. 117-81), but the
accompanying explanatory statement called on the Secretary of Defense to ensure any security
assistance provided to Brazil is in compliance with U.S. laws and DOD policies regarding
adherence to human rights and international law.112 The draft explanatory statement
accompanying the Department of State, Foreign Operations, and Related Programs
Appropriations Act, 2022 (S. 3075) included a similar provision for State Department-managed
security assistance, although it was not included in the final foreign operations appropriations
legislation (P.L. 117-103, Division K).113
Commercial Relations114
Trade policy often has been a contentious issue in U.S.-Brazilian relations. Since the early 1990s,
Brazil’s trade policy has prioritized integration with its South American neighbors through the
Southern Common Market (Mercosur) and multilateral negotiations at the World Trade
Organization (WTO).115 Brazil is the industrial hub of Mercosur, which it established in 1991
with Argentina, Paraguay, and Uruguay. Although the bloc was intended to advance incrementally
toward full economic integration, only a limited customs union has been achieved thus far.
Mercosur also has evolved into a somewhat protectionist arrangement, shielding its members
from external competition rather than serving as a platform for insertion into the global economy,
as originally envisioned. Within the WTO, Brazil traditionally has joined with other developing
nations to push the United States and other developed countries to reduce their agricultural tariffs
and subsidies while resisting developed countries’ calls for increased access to developing
countries’ industrial and services sectors. Those differences blocked conclusion of the most recent

111 See, for example, Representative Deb Haaland, “Haaland, Sanders, Castro, Johnson Call for Protection of Afro-
Brazilian Communities,” press release, October 7, 2020.
112 For example, U.S. security assistance is subject to legal provisions (codified at 22 U.S.C. §2378d and 10 U.S.C.
§362) that require the State Department and the Department of Defense to vet foreign security forces and prohibit
funding for any military or other security unit if there is credible evidence that it has committed “a gross violation of
human rights.” “Explanatory Material Statement Submitted by Mr. Smith of Washington, Chair of the House
Committee on Armed Services, on House Amendment to S. 1605,” Congressional Record, vol. 167, no. 211—Book II
(December 7, 2021), p. H7335.
113 The draft explanatory statement is available at https://www.appropriations.senate.gov/imo/media/doc/
SFOPSREPT_FINAL.PDF.
114 For more information, see CRS Report R46619, U.S.-Brazil Economic Relations, coordinated by M. Angeles
Villarreal.
115 João Augusto de Castro Neves, Brazil’s Slow and Uncertain Shift from Protectionism to Free Trade, Inter-American
Dialogue, working paper, January 2014.
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round of multilateral trade negotiations (the WTO’s Doha Round), as well as U.S. efforts in the
1990s and 2000s to establish a hemisphere-wide Free Trade Area of the Americas.116
Recent Trade Negotiations
The Bolsonaro and Trump Administrations negotiated several agreements intended to strengthen
the bilateral commercial relationship. During Bolsonaro’s March 2019 official visit to
Washington, the United States endorsed Brazil’s accession to the Organisation for Economic Co-
operation and Development in exchange for Brazil agreeing to gradually give up its “special and
differential treatment” status, which grants special rights to developing nations at the WTO. The
United States and Brazil also agreed to take steps toward lowering trade barriers for certain
agricultural products. Brazil agreed to adopt a tariff rate quota—implemented in November
2019—to allow the importation of 750,000 tons of U.S. wheat annually without tariffs. Brazil
also agreed to adopt “science-based conditions” that could enable U.S. pork producers to export
to Brazil, though preliminary discussions have not resulted in U.S. access to the Brazilian
market.117 In exchange, the United States agreed to send a U.S. Department of Agriculture Food
Safety and Inspection Service (FSIS) team to Brazil to audit the country’s raw beef inspection
system.118 In February 2020, FSIS determined that “Brazil’s food safety inspection system
governing raw intact beef is equivalent to that of the [United States],” and lifted a suspension on
U.S. imports.119 A bill introduced in the Senate in August 2021 (S. 3230) would suspend all beef
imports from Brazil while a working group evaluates the extent to which those imports pose a
threat to U.S. food safety.
In March 2020, Presidents Trump and Bolsonaro agreed to accelerate bilateral trade negotiations
under a 2011 Agreement on Trade and Economic Cooperation (ATEC). Although a majority of
Members on the House Committee on Ways and Means expressed strong opposition to “pursuing
any type of trade agreement with the Bolsonaro government” due to human rights, labor, and
environmental concerns, the Trump and Bolsonaro Administrations ultimately concluded a
Protocol on Trade Rules and Transparency in October 2020.120 The protocol adds three annexes to
the ATEC intended to foster cooperation on trade facilitation and customs administration, good
regulatory practices, and anti-corruption measures.121 Brazil’s congress ratified the protocol in
November 2021 and it entered into force in February 2022; the protocol did not require U.S.
congressional approval.
The Biden Administration has expressed interest in further strengthening economic ties with
Brazil, but it appears unlikely to pursue negotiations toward a comprehensive free trade

116 For background on the stalled negotiations, see CRS In Focus IF10002, The World Trade Organization, by Cathleen
D. Cimino-Isaacs, Rachel F. Fefer, and Ian F. Fergusson; and CRS Report RL33162, Trade Integration in the
Americas
, by M. Angeles Villarreal.
117 Office of the United States Trade Representative (USTR), 2022 National Trade Estimate Report on Foreign Trade
Barriers
, March 31, 2022, p. 61.
118 White House, “Joint Statement from President Donald J. Trump and President Jair Bolsonaro,” March 19, 2019.
119 The United States had suspended imports of raw beef from Brazil in June 2017, after Brazilian investigators
discovered that some of the country’s top meat processing companies, including JBS and BRF, had bribed food
inspectors to approve the sale of tainted products. USDA, Food Safety and Inspection Service, “Eligibility of Brazil to
Export Raw Intact Beef to the United States,” FSIS Notice 09-20, February 24, 2020.
120 Letter from Honorable Richard E. Neal, Chairman, House Committee on Ways and Means et al. to Honorable
Robert Lighthizer, U.S. Trade Representative, June 3, 2020.
121As of 2024, the U.S. State Department had identified Brazil as a "focus country" for anti-wildlife trafficking efforts, pursuant to the Eliminate, Neutralize, and Disrupt (END) Wildlife Trafficking Act of 2016, as amended (P.L. 114-231; 16 U.S.C. §§ 7601-7644).180

The Trump Administration's foreign assistance policies have affected environmental conservation activities in Brazil. On January 20, 2025, President Trump issued E.O. 14169, pausing U.S. foreign assistance for 90 days "pending reviews of such programs for programmatic efficiency and consistency with United States foreign policy."181 The Administration subsequently announced plans to downsize and merge USAID into the State Department and reportedly terminated 86% of USAID programs worldwide, including all environmental programs in Brazil.182 After losing U.S. funding, some Brazilian environmental NGOs reportedly scaled back their activities.183 The Brazilian government reportedly asserted that the loss of U.S. technical support for activities like forest management and forest fire prevention would not affect its ability to continue carrying out such activities on its own.184

Lula administration officials have expressed greater concerns about how the Trump Administration's plans to once again withdraw the United States from the Paris Agreement and other U.S. policies may affect multilateral efforts to address climate change.185 As noted above, Brazil is scheduled to host COP30 in November 2025. Among other initiatives, Brazilian officials are reportedly developing a tropical forest preservation plan and encouraging governments to adopt more ambitious targets to reduce greenhouse gas emissions.186 In the absence of U.S. federal government engagement on these issues, Brazilian officials reportedly intend to work with other sectors of U.S. society, such as states, universities, and businesses.187

Options for Congress

Congress may examine U.S.-Brazilian cooperation on environmental matters and whether and, if so, how to influence the trajectory of such cooperation. During the FY2026 appropriations process, Congress may assess whether or not to designate specific funding for environmental programs in the Brazilian Amazon, through U.S. agencies or a new U.S. Foundation for International Conservation.188 The National Security, Department of State, and Related Programs Appropriations Act, 2026 (H.R. 4779/H.Rept. 119-217), as reported in July 2025, would not specifically appropriate any funds for the Brazilian Amazon but would designate "not less than" $100 million as a contribution to the U.S. Foundation for International Conservation. Congress also could examine whether and, if so, how the Trump Administration's foreign assistance policies have affected such programs and the Administration's compliance with funding directives in prior year appropriations legislation. Additionally, Congress could consider other legislative measures, such as the Strengthening the Rule of Law in the Brazilian Amazon Act (S. 2578), intended to strengthen U.S.-Brazilian cooperation in combatting environmental crimes and support sustainable economic opportunities in the Amazon region. Some Members of Congress have attended past UN climate conferences, and Members could engage with the Brazilian government on climate issues at COP30.

Footnotes

1.

World Bank, "DataBank," accessed June 13, 2025.

2.

Daniel M. Kliman and Richard Fontaine, Global Swing States: Brazil, India, Indonesia, Turkey and the Future of International Order, German Marshall Fund of the United States and Center for a New American Security, November 2012; and Jared Cohen, The Rise of Geopolitical Swing States, Goldman Sachs, May 15, 2023.

3.

See, for example, Mônica Hirst, The United States and Brazil: A Long Road of Unmet Expectations (New York: Routledge, 2005).

4.

See, for example, Matias Spektor and Margaret Myers, remarks during a Carnegie Endowment for International Peace event on "Pivotal States: A New Era for U.S.-Brazil Relations?" August 17, 2023.

5.

For a variety of views, see U.S. Congress, Senate Foreign Relations Committee, The Future of U.S.-Brazil Relations, 118th Cong., 1st sess., March 16, 2023, S.Hrg. 118-50 (Washington: GPO, 2023); and U.S. Congress, House Foreign Affairs Committee, Global Health, Global Human Rights, and International Organizations Subcommittee, Brazil: A Crisis of Democracy, Freedom, & Rule of Law?, 118th Cong., 2nd sess., May 7, 2024.

6.

For additional information on Brazil's history, see Brazil: A Country Study, ed. Rex A. Hudson, 5th ed. (Library of Congress, Federal Research Division, 1998).

7.

Foreign Relations of the United States, 1964–1968, Volume XXXI, South and Central America; Mexico, eds. David C. Geyer and David H. Herschler (Washington: GPO, 2004), Documents 198 and 212, at https://history.state.gov/historicaldocuments/frus1964-68v31/ch5.

8. At least 8,350 Indigenous people in Brazil also were killed during the dictatorship, either directly by government agents or indirectly due to government policies. Ministério Público Federal, Procuradoria Federal dos Direitos do Cidadão, "PFDC Contesta Recomendação de Festejos ao Golpe de 64," press release, March 26, 2019; and Relatório da Comissão Nacional da Verdade, December 10, 2014, at http://cnv.memoriasreveladas.gov.br/. 9.

For background on the military government, see Thomas E. Skidmore et al., The Politics of Military Rule in Brazil, 1964-1985 (New York: Oxford University Press, 1988).

10.

The text of the Constitution of the Federative Republic of Brazil is available in English at https://www.stf.jus.br/arquivo/cms/legislacaoConstituicao/anexo/brazil_federal_constitution.pdf.

11.

See, for example, Freedom House, Freedom in the World 2025: Brazil, February 26, 2025; and Economist Intelligence Unit (EIU), Democracy Index 2024: What's Wrong with Representative Democracy?, February 2025, pp. 57-58.

12.

Reuters, "Brazil's Lula to Leave with Record-High Popularity," December 16, 2010.

13.

Tribunal Superior Eleitoral (TSE), "Eleição Geral Ordinária 2022, 2" Turno: Presidente," October 31, 2022.

14.

The remainder did not know or did not respond. Genial/Quaest, "Pesquisa da Avaliação do Governo Lula," July 2025.

15.

"Lula Fala em 4" Mandato, Mas Diz em Evento do PT Não Querer Repetir Biden: 'Preciso estar 100% de Saúde'," Folha de São Paulo, August 3, 2025.

16.

See, for example, Brazilians' evaluations of the federal government, electoral tribunal, and judiciary, broken down by 2022 presidential vote, in AtlasIntel and Bloomberg, "Latam Pulse Brasil," June 2025, https://atlasintel.org/polls/latam-pulse.

17.

See, for example, Oliver Stuenkel, "Brazil's Polarization and Democratic Risks," in Divisive Politics and Democratic Dangers in Latin America, ed. Thomas Carothers and Andreas E. Feldmann (Carnegie Endowment for International Peace, 2021); and Jack Nicas et al., "How Bolsonaro Built the Myth of Stolen Elections in Brazil," New York Times, October 25, 2022.

18.

"Brazil: Pro-Military-Coup Protests Intensify," LatinNews Daily, November 16, 2022; and Tribunal de Justiça do Distrito Federal e dos Territórios, "Justiça Condena Mais um Envolvido no Caso da Bomba Próxima ao Aeroporto de Brasília," August 17, 2023.

19.

Ministério Público Federal, Procuradoria-Geral da República (PGR), "Atos Antidemocráticos: Mais de 640 Réus já foram Condenados," July 3, 2025.

20.

PGR, "PGR Denuncia 34 Pessoas por Atos Contra o Estado Democrático de Direito," February 18, 2025.

21.

PGR, "PGR Denuncia 34 Pessoas por Atos Contra o Estado Democrático de Direito," February 18, 2025; and Polícia Federal, Relatório N" 4546344/2024, November 2024.

22.

TSE, "Por Maioria de Votos, TSE Declara Bolsonaro Inelegível por 8 Anos," June 30, 2023.

23.

"Brazil: Bolsonaro Denies Plotting Coup," LatinNews Daily, June 11, 2025.

24.

"Bolsonaro's Son Moves to US Claiming Persecution," LatinNews Daily, March 19, 2025; and "Wife and Son Encouraged Bolsonaro to Stage a Coup, Mauro Cid Says," Valor International, January 27, 2025.

25.

Antônio Augusto de Queiroz, "Base do Governo Lula no Congresso," Boletim do Departamento Intersindical de Assessoria Parlamentar, February 8, 2023.

26.

International Monetary Fund (IMF), "World Economic Outlook Database, April 2025," April 22, 2025.

27.

IMF, "IMF Executive Board Concludes 2025 Article IV Consultation with Brazil," July 17, 2025.

28.

Ipsos, "Avaliação do Governo Federal em Diversas Áreas," June 2025.

29.

IBGE, "Sistema Nacional de Índices de Preços ao Consumidor, IPCA-15: Julho de 2025," July 25, 2025, p. 8.

30.

Banco Central do Brasil, "COPOM Increases Selic Rate to 15.00% p.a.," press release, June 23, 2025.

31.

Reuters, "Brazilian President Lula's Disapproval Rating Hits All-Time High, Poll Finds," April 2, 2025.

32.

Banco Central do Brasil, "Estatísticas Fiscais," press release, July 31, 2025.

33.

Daniel Santos et al., Fatos da Amazônia 2025, Amazônia 2030, April 30, 2025, p. 14.

34. Within Brazil, the government has established an administrative zone known as the Legal Amazon, which is comprised of nine states that fall within the Amazon Basin: Acre, Amapá, Amazônia, Maranhão, Mato Grosso, Pará, Rondônia, Roraima, and Tocantins. Although rainforest covers most of the Legal Amazon, savanna (Cerrado) and wetlands (Pantanal) are also present in portions of the region. 35.

See, for example, Philip Fearnside, "Business as Usual: A Resurgence of Deforestation in the Brazilian Amazon," Yale Environment 360, April 18, 2017; and Associação Nacional dos Servidores de Meio Ambiente, Cronologia de um Desastre Anunciado: Ações do Governo Bolsonaro para Desmontar as Políticas de Meio Ambiente no Brasil, September 4, 2020.

36.

See, for example, Javier Miranda, Wolfgang Britz, and Jan Börner, "Impacts of Commodity Prices and Governance on the Expansion of Tropical Agricultural Frontiers," Scientific Reports, vol. 14 (2024); and Nora L. Alvarez-Berríos and T. Mitchell Aide, "Global Demand for Gold is Another Threat for Tropical Forests," Environmental Research Letters, vol. 10 (2015).

37.

Thomas Lovejoy and Carlos Nobre, "Amazon Tipping Point: Last Chance for Action," Science Advances, vol. 5, no. 12 (2019).

38.

According to Brazil's Empresa de Pesquisa Enegética, Hydropower accounted for 55.3% of Brazil's electricity generation in 2024. Luciana V. Gatti et al., "Amazonia as a Carbon Source Linked to Deforestation and Climate Change," Nature, vol. 595 (2021); Augusto Getirana et al. "Brazil is In Water Crisis—It Needs a Drought Plan," Nature, vol. 600 (2021).

39.

Ministério do Meio Ambiente e Mudança do Clima, Action Plan for the Prevention and Control of Deforestation in the Legal Amazon (PPCDAm): Fifth Phase (2023-2027), 2023.

40.

Daniel Santos et al., Fatos da Amazônia 2025, Amazônia 2030, April 30, 2025, p. 19.

41.

Presidência da República, "Marina Silva Presents Overview of Federal Environmental Protection Results," June 17, 2024.

42.

Miriam Gomes Saraiva and Marcel M. Valença, A Política Externa Brasileira e sua Projeção Internacional: Um Projeto Caracterizado pela Continuidade, Centro Brasileiro de Relações Internacionais, 2012.

43.

Article 4 of Brazil's 1988 constitution, as amended, states that Brazil's international relations are governed by the following principles: national independence; prevalence of human rights; self-determination of the people; nonintervention; equality among nations; defense of peace; peaceful settlement of conflicts; repudiation of terrorism and racism; cooperation among people for the progress of humanity; and granting of political asylum.

44.

William McIlhenny, "Brazil: A Voice for All?," in Alliances in a Shifting Global Order: Rethinking Transatlantic Engagement with Global Swing States, German Marshall Fund of the United States, May 2, 2023, pp. 22-26.

45.

Jacqueline Charles, "Race, Discrimination and Haiti Dominate Discussions in Brazil as Top Biden Official Visits," Miami Herald, May 25, 2023; Oliver Stuenkel, "Why Lula is Silent on Haiti," Foreign Policy, April 1, 2024; and Evens Sanon, "Haiti to Send 400 Police Officers to Brazil for Training as Gangs Seize More Territory," Associated Press, July 28, 2025.

46.

Oliver Stuenkel, "How Brazil Embraced Informal Organizations," International Politics, April 28, 2022.

47.

Presidência da República, "Speech by President Luiz Inácio Lula da Silva at the Opening of the 78th UN General Assembly," September 19, 2023; and "Brazil: Brazil is a Western Country, Minister Claims," Latin American Security & Strategic Review, December 2024.

48.

See, for example, Presidência da República, "President Lula's Speech During the Open Plenary Session of the BRICS Summit," October 23, 2024.

49.

See, for example, Lisa Paraguassu, "Brazil Now Main Holdout Against BRICS Expansion, Source Say," Reuters, August 2, 2023; and Oliver Stuenkel, "BRICS Grouping Weighs Expansion Ahead of Leaders' Summit in South Africa," Foreign Policy, June 22, 2023.

50.

Presidência do Brasil – BRICS 2025, "Fortalecendo a Cooperação do Sul Global para uma Governança Mais Inclusiva e Sustentável," Nota Conceitual, 2025.

51.

BRICS, Rio de Janeiro Declaration, Strengthening Global South Cooperation for a More Inclusive and Sustainable Governance, July 6, 2025.

52.

The PRC and Brazilian governments have "elevated" bilateral ties several times, most recently characterizing the relationship as a "Community with a Shared Future for a More Just World and Sustainable Planet" in November 2024. Presidência da República, "Brazil and China Expand Bilateral Relations During State Visit by President Xi Jinping," November 21, 2024.

53.

This total counts Lula twice due to his non-consecutive terms. Ministério das Relações Exteriores (MRE), "Bilateral Relations: People's Republic of China," February 7, 2025.

54.

MRE, "Atos Adotados por Ocasião de Estado do Presidente Luiz Inácio Lula da Silva a Pequim, China, 12 e 13 de Maio de 2025," May 14, 2025.

55.

Ministério do Desenvolvimento, Indústria, Comércio e Serviços (MDIC) data, as reported by Trade Data Monitor, accessed May 30, 2025.

56. MDIC data, as reported by Trade Data Monitor, accessed May 30, 2025. 57.

Between 2004 and 2024, the manufacturing sector's share of Brazil's GDP fell from 15.8% to 10.6%. EIU, "Data" tool, accessed May 30, 2025.

58.

Susannah Savage, et al., "Donald Trump's China Trade War a 'Boon' for Brazil but Sends US Farmers Reeling," Financial Times, April 13, 2025; and "Brazil Eyes Tariff Hike to Counter Possible Surge in Chinese Imports," Valor International, May 21, 2025.

59.

The Belt and Road Initiative (BRI), a signature policy initiative first announced by Xi Jinping in 2013, aims to expand China's global economic reach and influence by developing China-centered and -controlled global infrastructure, transportation, trade, and production networks. Although Brazil has opted not to formally join the BRI, China lists Brazil among BRI countries on its official BRI website: https://www.yidaiyilu.gov.cn/country. In November 2024, the Brazilian government announced that it would work with the PRC to pursue "synergies" between its industrial, infrastructure, and climate change mitigation and adaptation policies and the BRI. Presidência da República, "Brazil and China Expand Bilateral Relations During Visit by President Xi Jinping," November 21, 2024.

60.

Tulio Cariello, Chinese Investment in Brazil, 2023: New Trends in Green Energy and Sustainable Partnerships, Brazil-China Business Council, September 2024, pp. 34-35.

61.

Cariello, Chinese Investment in Brazil, 2023, p. 10.

62.

Derek Scissors, "$2.5 Trillion: 20 Years of China's Global Investment and Construction," American Enterprise Institute, January 2025, pp. 6 and 8.

63.

Rebecca Ray and Margaret Myers, "Chinese Loans to Latin America and the Caribbean Database," Inter-American Dialogue and Boston University Global Development Policy Center, 2024, https://www.thedialogue.org/MapLists/#/Policy/country/brazil.

64.

Jake Spring, "Bolsonaro's Anti-China Rants have Beijing Nervous about Brazil," Reuters, October 25, 2018.

65.

Facing pressure from the U.S. government, the Bolsonaro administration excluded Huawei from a separate network for government communications. "China Ganha por Pontos Batalha Brasileira na Guerra do 5G com os EUA," Folha de São Paulo, November 4, 2021.

66.

Danilo Marcondes and Pedro Henrique Batista Barbosa, "Brazil-China Defense Cooperation: A Strategic Partnership in the Making?," Journal of Latin American Geography, vol. 17, no. 2 (July 2018); and Yuanyue Dang, "In Rare Shift, China Will Send Marine Corps to Brazil for Joint Exercise," South China Morning Post, September 6, 2024.

67.

Nelson Mendonça Júnior, Os Reflexos da Inserção da China no Mercado de Defesa da América do Sul para a Indústria de Defesa Brasileira, Escola de Comando e Estado-Maior do Exército, Trabalho de Conclusão de Curso, Rio de Janeiro, 2019.

68.

Amber Wang, "Lula's Trip May Open Door to Defence Cooperation," South China Morning Post, May 19, 2025.

69.

"Lula Diz que Espera Civilidade de Trump e Relação Não Ideológica," Folha de São Paulo, November 18, 2024; Agence France-Presse, "Lula: 'Hincho por Kamala'," November 1, 2024.

70.

Mignon Houston, Deputy Spokesperson, "Strengthening our Borders and Broadening Regional Partnerships with Deputy Spokesperson Mignon Houston," Foreign Press Center briefing, U.S. Department of State, June 10, 2025.

71.

Letter from Donald J. Trump, President of the United States, to Luiz Inacio Lula da Silva, President of the Federative Republic of Brazil, July 9, 2025, as posted on X by the White House Rapid Response account (@RapidResponse 47), https://x.com/RapidResponse47/status/1943043154946457812.

72.

AtlasIntel and Bloomberg, "Tarifas de Trump," July 2025.

73.

See, for example, Matt Stott, Michael Pooler, and Bryan Harris, "The Discreet US Campaign to Defend Brazil's Democracy," Financial Times, June 21, 2023; and Oliver Stuenkel, "How U.S. Pressure Helped Save Brazil's Democracy," Foreign Policy, February 20, 2024.

74.

Reuters, "Exclusive: U.S. and Brazil Lawmakers Seek to Cooperate on Investigation of Brasilia Riots," January 11, 2023.

75.

See, for example, Letter from Joaquin Castro, Member of Congress, et al. to Honorable Joseph R. Biden, President of the United States, January 12, 2023, https://castro.house.gov/imo/media/doc/2023.1.11_BolsonaroJan8Attack_Final.pdf.

76.

Letter from Donald J. Trump, President of the United States, to Luiz Inacio Lula da Silva, President of the Federative Republic of Brazil, July 9, 2025, as posted on X by the White House Rapid Response account (@RapidResponse 47), https://x.com/RapidResponse47/status/1943043154946457812.

77.

Presidência da República, "Pronunciamento do Presidente Lula: Brasil Soberano," July 17, 2025.

78.

See, for example, Senator Tim Kaine, "Menendez, Kaine Lead Seven Democratic Colleagues in Introducing Resolution Expressing Solidarity with the Brazilian People in Aftermath of Insurrection," February 2, 2023.

79.

U.S. Congress, House Foreign Affairs Committee, Global Health, Global Human Rights, and International Organizations Subcommittee, Brazil: A Crisis of Democracy, Freedom, & Rule of Law?, 118th Cong., 2nd sess., May 7, 2024.

80.

Constitution of the Federative Republic of Brazil, Articles 5 and 220. For more information, see Eduardo Soares, "Brazil," in Civic Space Legal Framework (Law Library of Congress, 2020).

81.

See Article 19 of the International Covenant on Civil and Political Rights (1966), https://www.ohchr.org/en/instruments-mechanisms/instruments/international-covenant-civil-and-political-rights.

82.

Freedom House, Freedom in the World 2025: Brazil, February 26, 2025.

83.

Eduardo Soares, "Brazil," in Initiatives to Counter Fake News in Selected Countries (Law Library of Congress, 2019); and Presidȇncia da República, Lei N" 14.197, Arts. 286, 359.-L, and 359-M, September 1, 2021.

84.

Eduardo Soares, "Brazil: Federal Supreme Court Orders Criminal Investigation into Fake News Involving the Court," Law Library of Congress, April 1, 2019; Transparency International, "(April 2019) Supreme Court Decision in Brazil Violates Freedom of the Press and Sets Concerning Precedent," April 17, 2019; and Committee to Protect Journalists, "Brazilian Court Orders Online Magazine Crusoé to Remove Article About Judge," April 16, 2019.

85.

Within Brazil's judicial system, the rapporteur (relator) is charged with directing the judicial process and preparing a report that summarizes the case and provides an initial opinion and recommendations to the remaining justices.

86.

Typically, the STF uses random assignment to determine which justice will serve as the rapporteur in a given case. Justice de Moraes is serving as the rapporteur for several inquiries based on the justification that they are connected to the original fake news investigation. Mariana Schreiber, "Excessos? O Que Dizem Juristas Sobre 'Superpoderes' de Alexandre de Moraes Contra Golpismo," BBC News Brasil, January 31, 2023.

87.

Freedom House, Freedom on the Net 2023: Brazil, October 3, 2023.

88.

STF, Petição 9.935 Distrito Federal, February 21, 2025. A panel of five STF justices upheld Justice de Moraes's order in March 2025.

89.

Rumble, "Rumble and TRUTH Social Sue Brazilian Judge Over Censorship Orders Targeting U.S. Users," February 19, 2025.

90.

STF, Petição 9.935 Distrito Federal, February 21, 2025; and "Interpol e EUA Contrariaram Moraes sobre Allan dos Santos," Poder360, March 23, 2025.

91.

STF, "STF Define Parâmetros para Responsabilização de Plataformas por Conteúdos de Terceiros," June 26, 2025; and Michael Pooler, "Brazil Supreme Court Rules Digital Platforms are Liable for Users' Posts," Financial Times, June 27, 2025.

92.

Mateus Coutinho and Rafael Neves, "X Afirma Ter Derrubado Mais de 200 Contas por Ordem De STF e TSE desde 2020," UOL, October 9, 2024.

93.

U.S. Congress, House Committee on the Judiciary and the Select Subcommittee on the Weaponization of the Federal Government, The Attack on Free Speech Abroad and the Biden Administration's Silence: The Case of Brazil, Interim Staff Report, 118th Cong., 2nd sess., April 17, 2024.

94.

U.S. Department of State, Bureau of Western Hemisphere Affairs (@WHAAsstSecty), X post, February 26, 2025, https://x.com/WHAAsstSecty/status/1894785615247622540

95.

"Leia a Íntegra em Português da Carta que os EUA Enviaram a Moraes," Poder360, May 31, 2025.

96.

MRE, "Statement by the U.S. Government Regarding Decisions by the Brazilian Judiciary," February 26, 2025.

97.

Secretary of State Marco Rubio, "Announcement of Visa Restrictions on Brazilian Judicial Officials and Their Immediate Family Members," U.S. Department of State, July 18, 2025.

98.

Marcela Ayres, "Senior Brazilian Official Says Judiciary Won't be Intimidates by US Visa Bans," Reuters, July 19, 2025.

99.

U.S. Department of the Treasury, "Treasury Sanctions Alexandre de Moraes," July 30, 2025.

100.

For more information on Global Magnitsky sanctions, see CRS In Focus IF10576, Human Rights and Anti-Corruption Sanctions: The Global Magnitsky Human Rights Accountability Act, by Michael A. Weber.

101.

"Ofensiva de Bolsonaristas nos EUA Mira Presidente do STF e Insinua Novas Sanções de Trump," Folha de São Paulo, July 20, 2025; and "'Sensação de Missão Cumprida', Diz Eduardo Bolsonaro após Sanção de Trump a Moraes," Folha de São Paulo, July 30, 2025.

102.

STF, "Nota Oficial sobre Sanções dos EUA ao Ministro Alexandre de Moraes," July 30, 2025.

103.

EFE News Service, "Brazil's Supreme Court Blocks Bolsonaro's Son's Bank Accounts," July 22, 2025; STF, "STF Impõe Medidas Cautelares a Ex-Presidente Jair Bolsonaro por Coação e Atentado à Soberania Nacional," July 18, 2025; and STF, "STF Confirma Medidas Cautelares Impostas ao Ex-Presidente Jair Bolsonaro," July 22, 2025.

104.

STF, "STF Determina Prisão Domiciliar do Ex-Presidente Jair Bolsonaro por Descumprimento de Medidas Cautelares," August 4, 2025.

105.

President Lula (@LulaOficial), X post, July 19, 2025, https://x.com/LulaOficial/status/1946556466665529728; Presidência da República, "O Brasil é um País Soberano e Democrático," July 30, 2025; Chamber of Deputies President Hugo Motta (@HugoMottaPB), X post, July 30, 2025, https://x.com/HugoMottaPB/status/1950673741031350708; and Senate President Davi Alcolumbre (@davialcolumbre), X post, July 30, 2025, https://x.com/davialcolumbre/status/1950752011009343985.

106.

Ordem dos Advogados do Brasil, "OAB Defende a Soberania Nacional," July 20, 2025; and Transparȇncia Internacional – Brasil, "Public Statement: Alarming and Unacceptable Misuse of the Magnitsky Act," July 30, 2025.

107.

See, for example, Representative María Elvira Salazar (@RepMariaSalazar), X post, July 30, 2025, https://x.com/RepMariaSalazar/status/1950612454763028728; and Representative Rick McCormick (@RepMcCormick), X post, July 31, 2025, https://x.com/RepMcCormick/status/1950995808137978090.

108.

See, for example, Senate Foreign Relations Committee, "Top Senate Democrats Sound Alarm on Treasury Misusing Sanctions Programs Meant to Address Serious Human Rights Abuse to Instead Help Trump's Political Allies," July 31, 2025.

109.

See, for example, House Foreign Affairs Committee, "Meeks to Introduce Resolution Terminating Brazil Tariffs," July 31, 2025; and Representative Sydney Kamlager-Dove (@RepKamlagerDove), X post, July 31, 2025, https://x.com/RepKamlagerDove/status/1951011122682720492.

110.

João Augusto de Castro Neves, Brazil's Slow and Uncertain Shift from Protectionism to Free Trade, Inter-American Dialogue, working paper, January 2014.

111.

Treaty Establishing a Common Market between the Argentine Republic, the Federal Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, 1991. Mercosur admitted Venezuela as a full member in 2012 but suspended the country in 2017 due to Venezuela's failure to adhere to the bloc's democratic norms. Bolivia joined Mercosur as a full member in 2024 but has a four-year period to comply with Mercosur's regulations.

112.

For additional background on these issues, see CRS Report R46619, U.S.-Brazil Economic Relations, coordinated by M. Angeles Villarreal.

113.
The text of the protocol is available at https://ustr.gov/sites/default/files/files/Press/Releases/ The text of the protocol is available at https://ustr.gov/sites/default/files/files/Press/Releases/
ATECProtocolUSBREnglish.pdfATECProtocolUSBREnglish.pdf.
Congressional Research Service
21

link to page 26 Brazil: Background and U.S. Relations

agreement. In addition to overcoming U.S. congressional opposition, a potential free trade
agreement would need to be negotiated with the broader Mercosur bloc. In February 2022, the
U.S.-Brazil CEO Forum issued a series of recommendations to strengthen bilateral commercial
ties, which ranged from collaborating on supply chain resiliency to promoting the regulation of
carbon markets.122
Trade and Investment Flows
U.S.-Brazilian trade has suffered from economic volatility over the past decade, including
Brazil’s 2014-2017 recession and the 2020 pandemic-driven downturn (see Figure 3). Total
bilateral merchandise trade bounced back in 2021, however, growing nearly 35% compared with
2020 to reach an all-time high of $78.2 billion. U.S. goods exports to Brazil totaled $46.9 billion,
and U.S. goods imports from Brazil totaled $31.3 billion, giving the United States $15.6 billion
trade surplus. The top U.S. exports to Brazil were mineral fuels (primarily refined petroleum),
civilian aircraft and parts, machinery, pharmaceutical products, and plastics. The top U.S. imports
from Brazil included mineral fuels (primarily crude oil), iron and steel, machinery, wood, and
aircraft. In 2021, Brazil was the ninth-largest export market for U.S. goods, accounting for 2.7%
of total U.S. goods exports.123 The United States was Brazil’s second-largest export market,
accounting for 11.1% of Brazil’s total goods exports, compared to 31.3% for China.124
Brazil benefits from the Generalized System of Preferences (GSP) program, which provides
nonreciprocal, duty-free tariff treatment to certain products imported from designated developing
countries.125 Brazil was the third-largest beneficiary of the program in 2020, with duty-free
imports to the United States valued at $2.2 billion—equivalent to 9.4% of all U.S. goods imports
from Brazil.126 The GSP program expired on December 31, 2020. Several bills to reauthorize the
program have been introduced in the 117th Congress. For example, the United States Innovation
and Competition Act of 2021 (S. 1260), which passed the Senate in June 2021, and the America
COMPETES Act of 2022 (H.R. 4521), as passed by the House in February 2022, would
reauthorize GSP until January 1, 2027 while tying eligibility to certain environmental and human
rights standards, among other criteria.127
U.S.-Brazilian services trade is also significant, though it decreased significantly during the first
year of the COVID-19 pandemic. In 2020 (the most recent year for which data are available),
total bilateral services trade amounted to $19.7 billion—a 36% decline compared with 2019. U.S.
services exports to Brazil totaled $14.9 billion, and U.S. services imports from Brazil totaled $4.7
billion, giving the United States a $10.2 billion surplus. Telecommunications, computer, and
information services was the top category of U.S. services exports to Brazil; professional and
management consulting services was the top category of U.S. services imports from Brazil.
Travel, which had been the top U.S. services export to Brazil in 2019, declined by 74% in

122 For the full set of recommendations, see International Trade Administration, “U.S.-Brazil CEO Forum
Recommendations Report,” February 7, 2022, at https://www.trade.gov/us-brazil-ceo-forum-2022-joint-
recommendations.
123 U.S. Census Bureau data, as made available by Trade Data Monitor, April 2022.
124 Brazilian Ministry of Development, Industry and Trade data, as made available by Trade Data Monitor, April 2022.
125 For more information on GSP, see CRS In Focus IF11232, Generalized System of Preferences (GSP), by Liana
Wong.
126. 114.

For analysis of congressional and executive authorities related to foreign trade agreements, see CRS Report R47679, Congressional and Executive Authority Over Foreign Trade Agreements, by Christopher T. Zirpoli.

115.

Product descriptions based on two-digit Harmonized Tariff Schedule (HTS) codes. U.S. Census Bureau and MDIC data, as reported by Trade Data Monitor, accessed July 16, 2025.

116.

U.S. Census Bureau and MDIC data, as reported by Trade Data Monitor, accessed July 16, 2025; and Anaïs Fernandes, "Exports to U.S. Reach Record High Ahead of Tariffs," Valor International, January 17, 2025.

117.

U.S. Department of State, 2024 Investment Climate Statements: Brazil, July 2024.

118.

U.S. Bureau of Economic Analysis, "Brazil – International Trade and Investment Country Facts: Direct Investment," July 23, 2024.

119.

For more information on critical minerals, see CRS Report R47982, Critical Mineral Resources: National Policy and Critical Minerals List, by Linda R. Rowan.

120.

U.S. Geological Survey, Mineral Commodity Summaries 2025, March 2025, pp. 6-8.

121.

U.S. International Development Finance Corporation (DFC), "Active Projects" database, accessed June 27, 2025.

122.

International Trade Administration, "Brazil Mining Projects Fund," May 29, 2024; and Ministério de Minas e Energia, "Fundo de Minerais Críticos Deve Destinar até R$1 Bilhão para Pesquisa de Minerais Estratégicos para a Transição Energética e Segurança Alimentar," October 4, 2024.

123.

DFC, "DFC and the Brazilian Development Bank (BNDES) Sign Framework to Co-Invest in Critical Sectors," October 28, 2024.

124.

"U.S. Ramps Up Pressure for Preferential Access to Brazil's Critical Minerals," Valor International, July 25, 2025.

125. Executive Order 14257 of April 2, 2025, "Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits," 90 Federal Register 15041, April 7, 2025. 126.

White House, "President Donald J. Trump Declares National Emergency to Increase our Competitive Edge, Protect our Sovereignty, and Strengthen our National and Economic Security," April 2, 2025.

127.

In May 2025, two federal trial courts ruled that President Trump's imposition of the tariffs exceeded the authority granted by IEEPA. Both of the trial courts' orders are currently stayed (paused) as higher courts consider appeals by the federal government. For more information, see CRS Legal Sidebar LSB11332, Court Decisions Regarding Tariffs Imposed Under the International Emergency Economic Powers Act (IEEPA), by Christopher T. Zirpoli.

128.

World Trade Organization et al., World Tariff Profiles 2025, 2025, pp. 8 and 12.

129.

Executive Order 14323 of July 30, 2025, "Addressing Threats to the United States by the Government of Brazil," 90 Federal Register 37739, August 5, 2025.

130.

Câmara Americana de Comércio para o Brasil, "Nota da Amcham Brasil sobre a Aplicação de Tarifas de 50% pelos Estados Unidos às Exportações Brasileiras," July 30, 2025.

131.

Don Jenkins, "Trump's Beef with Brazil Cheer's Cattlemen's Groups," Capital Press, July 15, 2025.

132.

See Annex 1. White House, "Addressing Threats to the United States by the Government of Brazil," July 30, 2025.

133.

U.S. Customs and Border Protection, "QB 18-137 Absolute Quota for Steel Mill Articles: Argentina, Brazil and South Korea," April 8, 2024.

134.

Proclamation 10947 of June 3, 2025, "Adjusting Imports of Aluminum and Steel Into the United States," 90 Federal Register 24199, June 9, 2025.

135.

Reuters, "Goldman Sees US Effective Tariff Rate on Brazil Imports at 30.8%," July 30, 2025.

136.

For information on Section 301, see CRS In Focus IF11346, Section 301 of the Trade Act of 1974, by Danielle M. Trachtenberg.

137.

USTR, "Initiation of Section 301 Investigation: Brazil's Acts, Policies, and Practices Related to Digital Trade and Electronic Payment Services; Unfair, Preferential Tariffs; Anti-Corruption Enforcement; Intellectual Property Protection; Ethanol Market Access; and Illegal Deforestation; Hearing; and Request for Public Comments," 90 Federal Register 34069, July 15, 2025.

138.

MRE and MDIC, "Measures Regarding Steel and Aluminum Exports to the United States," March 12, 2025; and MRE and MDIC, "Trade Measures Adopted by the United States Government on April 2, 2025," April 2, 2025.

139.

Presidência da República, "Press Statement," July 9, 2025; and "Lei N" 15.122, De 11 De Abril De 2025," Diário Oficial da Uniáo, April 14, 2025.

140.

MRE and MDIC, "Evio de Carta Sobre Tarifas dos Estados Unidos," July 16, 2025; and "Governo Brasileiro Diz que Soberania é Inegociável em Nota sobre Tarifa dos EUA," Folha de São Paulo, July 28, 2025.

141.

Agência Senado, "Davi Diz que Congresso e Governo Atuarão Juntos em Reação a Tarifaço dos EUA," July 16, 2025.

142.

Pedro Rafael Vilela, "Brazil to Appeal to World Trade Organization Against U.S. Tariff Hike," Agência Brasil, July 11, 2025.

143.

For more information on constitutional powers regarding trade, see CRS Report R47679, Congressional and Executive Authority Over Foreign Trade Agreements, by Christopher T. Zirpoli.

144.

See, for example, Letter from Tim Kaine, United States Senator, et al. to Honorable Donald J. Trump, President, July 24, 2025, https://www.kaine.senate.gov/imo/media/doc/brazil_trade_war_letter.pdf, and Representative Linda Sánchez, "Sánchez: Brazil Trade Investigation Politically Motivated, Anti-Democratic," press release, July 18, 2025.

145.

See, for example, Senator Thom Tillis, "Tariffs," remarks in the Senate, Congressional Record, vol. 171, part 132 (July 31, 2025), p. S4962.

146.

For more on GSP, see CRS In Focus IF11232, Generalized System of Preferences (GSP): FAQ, by Liana Wong.

147.
U.S. Department of Commerce, Census Bureau data, as made available by the U.S. International Trade U.S. Department of Commerce, Census Bureau data, as made available by the U.S. International Trade
Commission, Commission, "Interactive Tariff and Trade DataWeb,Interactive Tariff and Trade DataWeb," accessed in April 2022. accessed in April 2022.
127 S. 1260, Title IV, Subtitle A; and H.R. 4521, Title IV, Subtitle A.
Congressional Research Service
22


Brazil: Background and U.S. Relations

2020.128 Due to widespread transmission of COVID-19 and the emergence of new variants in
Brazil, the United States denied entry to most Brazilians from May 2020 until November 2021.129
Figure 3. U.S. Trade with Brazil: 2012-2021
(billions of U.S. dollars)

Source: CRS presentation of U.S. Department of Commerce data, as made available through Trade Data Monitor
and the Bureau of Economic Analysis, accessed April 2022.
Note: Services trade data are not yet available for 2021.
According to the U.S. Department of State, the Brazilian government actively encourages foreign
direct investment (FDI) in certain sectors, such as automobiles, renewable energy, and oil and
gas, but imposes restrictions on FDI in others, such as telecommunications, aerospace, and rural
property.130 As of 2020 (the most recent year for which data are available), the accumulated stock
of U.S. FDI in Brazil was $70.7 billion, with significant investments in manufacturing, finance,
and mining, among other sectors. The same year, the stock of Brazilian FDI in the United States
totaled $6.9 billion.131

128 U.S. Department of Commerce, Bureau of Economic Analysis, “U.S. Trade in Services, by Country or Affiliation
and by Type of Service,” July 2, 2021.
129 Executive Office of the President, Proclamation 10041 of May 24, 2020, “Suspension of Entry as Immigrants and
Nonimmigrants of Certain Additional Persons Who Pose a Risk of Transmitting 2019 Novel Coronavirus,” 85 Federal
Register
31933-31936, May 28, 2020; Executive Office of the President, Proclamation 10143 of January 25, 2021,
“Suspension of Entry as Immigrants and Nonimmigrants of Certain Additional Persons Who Pose a Risk of
Transmitting Coronavirus Disease 2019,” 86 Federal Register 7467-7470, January 28, 2021; and The President,
Proclamation 10294 of October 25, 2021, “Advancing the Safe Resumption of Global Travel During the COVID-19
Pandemic,” 86 Federal Register 59603-59608, October 28, 2021.
130 U.S. Department of State, 2021 Investment Climate Statements: Brazil, July 21, 2021.
131 U.S. Department of Commerce, Bureau of Economic Analysis, “Balance of Payments and Direct Investment
Position Data,” accessed in April 2022.
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Brazil: Background and U.S. Relations

Outlook
Nearly eight years after the country fell into a deep recession, Brazil remains mired in difficult
domestic circumstances. The COVID-19 pandemic abruptly halted the country’s slow economic
recovery and Brazil’s per capita income and employment rates remain below pre-recession levels.
Although widespread vaccination has allowed Brazil to rollback public health restrictions, rising
international fuel and food prices have weakened the country’s economic growth prospects.
Political polarization is likely to increase in advance of Brazil’s October 2022 elections as
President Bolsonaro seeks to rally his base for reelection and former President Lula attempts to
mount a political comeback. Such polarization could weaken the credibility of the election results
among some sectors of the electorate, particularly if candidates—such as Bolsonaro—continue to
question the legitimacy of the electoral system. Whoever wins is likely to remain focused on the
country’s internal challenges for the next several years, limiting Brazil’s ability to take on
regional responsibilities or exert its influence internationally.
U.S.-Brazilian relations initially improved following President Bolsonaro’s inauguration but now
threaten to return to their historic pattern, in which heightened expectations give way to mutual
disappointment and mistrust. Both countries took steps to enhance bilateral security cooperation
and bolster commercial ties during 2019 and 2020, based, in part, on the personal and ideological
rapport between President Bolsonaro and President Trump. Relations appear to have cooled since
President Biden took office in 2021, however, as the countries have struggled to bridge policy
differences over sensitive issues, such as natural resource management and relations with China.
The future of the bilateral relationship may depend on the extent to which the United States and
Brazil are able to reconcile their sometimes-divergent economic and geopolitical interests and
identify shared priorities.
The 117th Congress may continue to shape U.S.-Brazilian relations using its legislative and
oversight powers. Although there appears to be considerable support in Congress for forging a
long-term strategic partnership with Brazil, many Members may be reluctant to advance major
bilateral commercial or security cooperation initiatives in the near term, given their concerns
about the erosion of democracy, human rights, and environmental protections under Bolsonaro.
For the time being, Congress may continue appropriating funding for programs with broad
support, such as Amazon conservation efforts, while Members continue to advocate for divergent
policy approaches toward the Bolsonaro administration.

Author Information

Peter J. Meyer

Specialist in Latin American and Canadian Affairs

Congressional Research Service
24

Brazil: Background and U.S. Relations



Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
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copy or otherwise use copyrighted material.

Congressional Research Service
R46236 · VERSION 5 · UPDATED
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148.

Notably, the countries forged close defense relations during World War II, when Brazil was the only Latin American country to deploy forces to Europe and the 25,000-strong Brazilian Expeditionary Force fought as a division within the United States Fifth Army in Italy.

149.

"Brazil President Postpones US Visit over Spying," Voice of America, September 17, 2013.

150.

For more information on executive agreements, see CRS Legal Sidebar LSB11048, International Agreements (Part I): Overview and Agreement-Making Process, by Steve P. Mulligan.

151.

White House, "Designation of the Federative Republic of Brazil as a Major Non-NATO Ally," Presidential Determination No. 2019-21 of July 31, 2019, 84 Federal Register 43035, August 19, 2019.

152.

U.S. Embassy & Consulates in Brazil, "Trade & Investment," fact sheet, February 10, 2023.

153.

U.S. Department of Defense, "Readout of 7th U.S.-Brazil Strategic Defense Talks," August 20, 2024.

154.

U.S. Embassy & Consulates in Brazil, "U.S.S. Hampton Submarine Participates in Joint Exercises with Brazilian Navy Submarine Humaitá," October 18, 2024.

155.

U.S. Department of Defense and U.S. Department State, Foreign Military Training Report, Fiscal Years 2022 and 2023, Joint Report to Congress, Volume I – Section III – Part III-VI – Western Hemisphere, March 13, 2025, p. 7.

156.

Defense Security Cooperation Agency (DSCA) data, provided to CRS, 2020-2024.

157.

Janes Defense & Security Intelligence & Analysis, "Brazil – Market Report," February 16, 2024.

158.

DSCA, "Brazil – Javelin Missiles," Transmittal No. 21-68, August 9, 2022; and DSCA, "Brazil – UH-60M Black Hawk Helicopters," Transmittal No. 24-21, May 24, 2024.

159.

U.S. Department of Defense, "Readout of 7th U.S.-Brazil Strategic Defense Talks," August 20, 2024.

160.

U.S. Department of State, Bureau of Counterterrorism, Country Reports on Terrorism 2023: Brazil, December 12, 2024.

161.

Hezbollah is an Iran-backed Lebanese Shia militia that the United States has designated as a foreign terrorist organization. Reuters, "Brazilian Hezbollah Suspect Cased Out Synagogues in Brasilia, Documents Show," December 6, 2023.

162.

Hamas is a Palestinian Sunni Islamist military and sociopolitical movement that the United States has designated as a foreign terrorist organization. Reuters, "Brazil Deports Hamas 'Operative' and Family," June 24, 2024.

163.

U.S. Department of the Treasury, "Treasury Targets Hizballah Financial Network," December 9, 2010.

164.

U.S. Department of the Treasury, "Treasury Designates al-Qa'ida Support Network in Brazil," December 22, 2021.

165.

U.S. Department of State, Bureau for International Narcotics and Law Enforcement Affairs, International Narcotics Control Strategy Report, Volume I: Drug and Chemical Control, March 2025, p. 148.

166.

Marina Cavalari, "What a Decade of Data Tells Us About Organized Crime in Brazil," InSight Crime, July 1, 2024.

167.

See, for example, Ryan C. Berg, Tussle for the Amazon: New Frontiers in Brazil's Organized Crime Landscape, Florida International University, Jack D. Gordon Institute for Public Policy, October 2021.

168.

U.S. Department of State, Bureau for International Narcotics and Law Enforcement Affairs, International Narcotics Control Strategy Report, Volume I: Drug and Chemical Control, March 2025, p. 148.

169.

U.S. Embassy & Consulates in Brazil, "United States and Brazil Expand Partnership to Combat Transnational Crime," April 28, 2025.

170.

"Brazil: Gov't Resists Pressure to Designate Gangs as Terrorists," Latin American Security & Strategic Review, June 2025. For more information on the designation of criminal organizations as terrorist groups, see CRS Insight IN11205, Designating Cartels and Other Criminal Organizations as Foreign Terrorists: Recent Developments, by Liana W. Rosen and Clare Ribando Seelke.

171.

U.S. Department of the Treasury, "U.S. Department of Treasury Targets Narcotics Traffickers and Their Supporters Using Enhanced Counter Narcotics Authorities," December 15, 2021.

172.

H.Rept. 118-301, p. 1333.

173.

S. 2342, §514.

174.

White House, "Chair's Summary of the Major Economies Forum on Energy and Climate Held by President Joe Biden," April 21, 2023.

175.

U.S. Department of State, Congressional Budget Justification, Foreign Operations, Appendix 2, Fiscal Year 2025, April 2024, p. 313.

176. Amazon Fund, "Donations," accessed May 28, 2025, https://www.amazonfund.gov.br/en/transparency/donations/. 177.

U.S. Congress, House Appropriations Committee, Further Consolidated Appropriations Act, 2024, committee print, H.R. 2882/P.L. 118-47, Book 2, Divisions A-F, 118th Cong., 2nd sess. (Washington: GPO, 2024), p. 1199.

178.

U.S. Department of State, Congressional Budget Justification, Department of State, Foreign Operations, and Related Programs, Fiscal Year 2026, May 2025.

179.

Quilombolas are inhabitants of communities founded by individuals who escaped or were freed from slavery. U.S. Agency for International Development (USAID), "Brazil: Bilateral Biodiversity Conservation," January 19, 2022, https://web.archive.org/web/20250117030251/https://www.usaid.gov/brazil/our-work/environmental-partnerships.

180.

A focus country is considered a major source of wildlife trafficking products or their derivatives, a major transit point of wildlife trafficking products or their derivatives, or a major consumer of wildlife trafficking products. U.S. Department of State, Bureau of Oceans and International Environmental and Scientific Affairs, Report to Congress on the Eliminate, Neutralize, and Disrupt Wildlife Trafficking Act, P.L. 114-231; 16 U.S.C. §§ 7601-7644, August 6, 2024.

181.

Executive Order 14169 of January 20, 2025, "Reevaluating and Realigning United States Foreign Aid," 90 Federal Register 8619, January 30, 2025.

182.

Karoun Demirjian et al., "Final Cuts Will Eliminate U.S. Aid Agency in All but Name," New York Times, March 28, 2025; Elissa Miolene, Sara Jerving, and Adva Saldinger, "The USAID Awards the Trump Administration Killed – And Kept," Devex, March 27, 2025; and CRS communication with USAID, May 2025.

183.

Aimee Gabay, "Pause to USAID Already Having Impacts on Community Conservation in the Amazon," Mongabay, February 24, 2025; and "Cortes de Trump Ameaçam Ajuda a Refugiados e Conservação Ambiental no Brasil," Folha de São Paulo, February 28, 2025.

184.

Fabíola Sinimbú, "Combate a Incêndios no Brasil Não Será Afetado por Decisão dos EUA," Agência Brasil, February 11, 2025.

185.

Executive Order 14162 of January 20, 2025, "Putting America First in International Environmental Agreements," 90 Federal Register 8455, January 30, 2025; Reuters, "Brazil Warns Trump Effect Risks 'Triple Negative' for Climate," March 6, 2025; and Reuters, "US Exit from Paris Climate Deal Complicates Finance Targets, Says COP30 Head," January 23, 2025.

186.

"Brazil Readying Tropical Forest Preservation Plan for COP30," Valor International, May 22, 2025; and Manuela Andreoni and Lisandra Paraguassu, "Brazil Urging Tougher Emissions Goals Ahead of Climate Summit, Sources Say," Reuters, April 23, 2025.

187.

"U.S. Exit from Paris Agreement Adds Challenge for COP30," Valor International, January 22, 2025.

188.

The United States Foundation for International Conservation Act of 2024 (Title LI, Subtitle A of P.L. 118-159) directed the Secretary of State to establish the United States Foundation for International Conservation as an independent, nonprofit corporation within 180 days of enactment. The legislation authorized appropriations of "not more than" $100 million for the foundation for each fiscal year between FY2026 and FY2034.