Overview of U.S./South American Trade Relations

Quinn Weber, Rachel Bass, Omar Rubio, Mandy Sun

Brazil• 7th highest GDP in world - ahead of UK (Purchasing Power Parity)

• Western hemisphere’s 2nd largest economy, largest in S. America, member of BRICS

• US first country to establish consulate (1808), 1st to recognize independence (1824)

• Tensions and strains:

o U S agricultural subsidies (cotton)

o NSA spying on pres. Rousseff

o Scramble to ready for World Cup 2015

Chile• The United States and Chile have enjoyed

friendly relations since Chile re-established democratic governance in 1990.

• Chile is currently the 29th largest export market for U.S. goods

• U.S. and Chile Free Trade Agreement began January 1, 2014

• TOP U.S. Export to Chile (2013): Mineral Fuel (oil), Machinery, Vehicles, Electrical Machinery, Aircraft

• TOP Chile Export to U.S. (2013): Copper, Edible Fruit and Nuts, Fish and Seafood, Wood, and Rubber

Venezuela ● Venezuela is one of the top 5 suppliers of foreign oil to the United States and a member of OPEC

● As of 2011 Venezuela was the US’s 26th largest export market and the 9th largest supplier of exports

○ The largest imports from Venezuela are Crude Oil ($42 Billion), Organic Chemicals ($309

Million), Iron & Steel ($263 Million) and overall total was $43.3 Billion

○ Main US exports to Venezuela are Machinery ($3 Billion), Electrical Machinery ($1.7 Billion),

and Organic Chemicals ($1.3 Billion)

● Currently no US ambassador to Venezuela or Venezuelan ambassador to US as relations have been

strained since the Hugo Chavez regime

● US has also imposed sanctions on Venezuelan state owned oil company PDVSA which included

exclusion from competing for federal government contracts

Colombia● 21st largest U.S. trading partner

○ U.S. exports $19 billion dollars and imports $22 billion dollars annually.

○ U.S. exports to Colombia include: Mineral Fuel, machinery, organic chemicals, and vehicles.

○ U.S. imports to Colombia include: Crude oil, gold, spices, coffee and tea, and edible food.

● Plan Colombia

○ Assistance to help Colombia improve their counternarcotics capabilities, and expand government presence

○ Another goal was to improve the livelihood of the most vulnerable population, and provide better social, and economic opportunities.

○ Planned as a long-term plan to destroy the presence of the drug cartels in Colombia.

Summary• Monroe Doctrine shaped beginning of trade relations - Europe stay out!

• Kennedy’s Alliance for Progress - failure overall

• Organization of American States (OAS)

o Fight against illicit drugs

o Establishment of intercontinental free trade zone

o Kerry, Nov 2013: “the Monroe Doctrine is dead”