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       Why Brazil's Relationship With the United States Isn't Taking Off
        
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       _For the latest_ _Pivotal States_ _event, a new series that examines
       alternative U.S. foreign policy approaches to the world's key
       nations,_ _American Statecraft Program_ _director Christopher S.
       Chivvis was joined by_ _Margaret Myers_ _, director of the Asia &
       Latin America Program at the Inter-American Dialogue, and __Matias
       Spektor_ _, professor and associate dean at the Fundação Getulio
       Vargas's School of International Relations, to discuss Washington's
       strategic alternatives in its relations with Brazil._
        
       _This Q & A was adapted from a transcript __of the event_ _and has
       been edited and condensed for clarity. For past episodes from our
       series, click here._
        
       **Chris Chivvis:** Why does Brazil matter to the United States?
        
       **Matias Spektor:** Historically, Brazil has been very cooperative
       with the United States, yet this is a relationship that never really
       took off—even when the two sides have a lot of interests in common and
       they share a similar view of what's going on. For example, for the
       first time in many years, the [Joe] Biden administration and the
       administration of [Luiz Inácio Lula da Silva] have a common read of
       what's happening in Venezuela, yet even then they find it very hard to
       cooperate. Brazil matters because when Brazil moves in the region, it
       affects America's interests in the one part of the world where the
       United States is unrivaled.
        
       All the geopolitical changes are beginning to unsettle this—in
       particular, Chinese influence in the Americas. China has been
       investing big time in Latin America for twenty years, not least
       because the United States invited China twenty years ago to invest big
       time in Latin America.
        
       There's another side to this—why Brazil matters moving forward—and
       these are two very important things that people in Washington normally
       don't talk about. The first one is that in the next twenty years,
       Brazil is going to be a major, major player with the United States in
       providing food to the rest of the world. And in the context of the
       geopolitical changes we are seeing, these will make Brazil matter all
       the more.
        
       The second one is that Brazil is now becoming a big player in the oil
       field. Brazil was never a significant oil exporter, but it's becoming
       one. And although this was never the case before and therefore there's
       no track record of U.S.-Brazil cooperation on the oil front, this is
       something that will impose itself in coming years.
        
       Then there is the issue of climate change. Brazil is a major driver of
       deforestation, and this is not something Brazil can deal with on its
       own, partly because it needs money to compensate those losers if
       deforestation were to come to an end. But [also] partly because
       there's so much political interest at the local level in Brazil for
       deforestation that Brazil will need international cooperation big time
       to turn the tide.
        
       There's another element to this: deforestation in Brazil is linked to
       the global supply chain of cocaine and other drugs and is related to
       transnational crime. So the issue of climate change in Brazil
       intersects with transnational crime, which is one of the biggest items
       in America's relationship with Latin America.
        
       And finally, Brazil matters for procedural reasons, because [the
       United States] needs Brazil's cooperation if it wants to get things
       done in the UN General Assembly or in the World Trade Organization.
       For example, NATO operations in the South Atlantic require procedural
       cooperation with Brazil. Brazil is very, very weak internationally,
       but it can make things more difficult.
        
       **Chris Chivvis:** How should the United States approach Brazil's
       deepening relationship with China?
        
       **Margaret Myers:** We've seen attempts by two administrations
       now—especially the [Donald] Trump administration—to try to dissuade
       Brazil from engaging with China in various areas, especially those of
       security concern to the United States, [such as] 5G and Huawei. It
       resonated to a degree with the [Jair] Bolsonaro administration, and
       there were some efforts to consider purchasing other equipment—at
       least by the government or by certain parts of the Brazilian military.
       But Lula made it very clear during his visit to China that
       collaboration was very much on the table. These attempts [at
       dissuasion] just haven't made a dent. And it's not just in Brazil—it's
       across the entire region. . . .
        
       That said, there are areas where Brazil and the United States can
       cooperate in policy setting, agenda setting, nuclear policy, space
       policy—areas of interest to Brazil where [Washington] or may not align
       with China. It's a matter of thinking about this a little bit more
       strategically and understanding really what would appeal to Brazil.
        
       **Chris Chivvis:** How should U.S. policymakers understand this
       apparently open-ended relationship between Brazil and China? Is it
       really open-ended or are there natural limits, as Margaret was just
       suggesting?
        
       **Matias Spektor:** I think Margaret is spot on.
        
       First of all, Brazil is increasingly dependent on China, and China is
       increasingly dependent on commodities coming from Brazil, and China is
       very exposed to Brazil. For example, [at least 12 percent] of energy
       distribution is now owned by Chinese capital in Brazil. But the
       relationship is not an easy one.
        
       China treats Brazil in a manner that is very top down. Meetings at the
       BRICS are very scripted. Brazil finds itself having very little room
       to maneuver with China. Brazil can have a far more flexible set of
       conversations with the United States than it can with Beijing. Beijing
       has a very set view of where Brazil fits in the global pecking order,
       and it's not at the top of that pecking order, and it's not at the top
       of Beijing's regional pecking order in Latin America. Beijing has far
       closer ties with other countries in the region, even if Brazil is the
       biggest [country].
        
       There's another set of constraints, and I think it's very important
       for U.S. policymakers to understand this because it shapes the way any
       Brazilian leader is bound to deal with China. In the past twenty
       years, there's been the birth of pro-China constituency groups [in
       Brazil]. . . . Brazilian leaders increasingly have their hands tied
       simply because China is such an important economic magnet, and
       breaking that is going to be really tricky.
        
       Now, if you think the future of U.S.-China relations is relatively
       peaceful, these constraints needn't be a problem. Brazil will become
       more enmeshed, more interdependent with China. Lots of Brazilian
       interest groups will derive their bread and butter from trade with
       China and Chinese finance, and we won't see a problem.
        
       This is exactly what the [Bill] Clinton administration had in mind.
       Then, subsequent administrations encouraged China to come to Latin
       America to join the Inter-American Development Bank, for example,
       because it was a useful way to have excess capital coming from China
       fill a void that the United States was not willing or able to fill
       itself.
        
       The problem is that if we think that the future of U.S.-China
       relations is going to be more conflictual, then we're in deep trouble.
       Then, the United States will have a big incentive to try to push and
       shove countries in Latin America—and Brazil in particular—to sever
       ties with China. They won't be able to do it, because domestically
       this will be politically impossible, and the United States will have
       very little choice but to play regional hegemony and lay down the law.
        
       **Chris Chivvis:** [The environment is] a very complicated domestic
       political and economic problem for Brazil. What are the things that
       the United States could really do in order to help reduce or even halt
       deforestation of the rainforest?
        
       **Margaret Myers:** I think there is a sense within the United States
       right now that more does in fact need to be done, and a realization
       that the $500 million commitment to the Amazon Fund really did fall
       short of what Brazil would've hoped for. Especially when you look at
       the numbers that China tends to throw around—which are quite large,
       [though] they don't always come to pass. The Biden administration is
       now looking to increase this amount by mobilizing something in the
       neighborhood of $1 billion to support land restoration. So if that
       materializes, it will hopefully make more of a difference for the
       Amazon and for the bilateral relationship.
        
       But the tools that the United States has at its disposal right now are
       limited, and they're not quick. And this is something that applies to
       the whole of Latin America, as countries look for assistance from the
       United States and to engage with the United States. There is interest
       in diversifying partnerships. But if the finance isn't there, if it
       isn't there in the right amount, then that ends up being problematic.
       So I would say that there are some restrictions on our toolkit that
       will make more engagement, including in the climate space, a little
       bit difficult.
        
       **Chris Chivvis:** How does it look from a domestic political economy
       perspective in Brazil?
        
       **Matias Spektor:** Brazil's deforestation problem and climate problem
       in general is gargantuan, partly because so many millions of people
       depend on carbon emissions for their living. Land use is the major
       driver of carbon emissions in Brazil. So transitioning to anything
       different is going to cost tens of billions of dollars. And within
       that, there's very little the United States can do—no amount of money
       will be sufficient compared to what Brazil needs. So I would bet that
       the future of the U.S.-Brazil relationship should center around that,
       but there's an opportunity now.
        
       Brazil is about to unveil its own Inflation Reduction Act. It's
       basically subsidies and industrial policy to facilitate a transition
       to a lower carbon economy. The task to get that to work without major
       corruption scandals or major inefficiencies is going to be enormous.
       There is a real opportunity for collaboration between the two
       countries—in particular, the private sectors.
        
       The other area where there's room for collaboration—but a lot of
       danger—is on the issue of climate-related organized crime. One of the
       problems Brazil faces in the Amazon in particular is that organized
       crime is behind cattle laundering, illegal logging, and illegal
       mining. When the Lula administration took office, the minister of the
       environment found out the Amazon region had [at least 1,200] illegal
       airstrips. And the problem with illegal airstrips in a landmass the
       size of Europe is that if you bomb them from the air with support from
       the federal police, they get rebuilt within three or four days.
        
       Now, no talk of America cooperating militarily or even police
       cooperation in Brazil will fly. Brazilian elites are terrified of an
       American military presence in South America. But what can fly is
       cooperation to help Brazil deal with the end of the illegal trade
       cycle, which is trade through the Atlantic going into Africa and then
       to Europe, where the consumer markets are for drugs, illegal logging,
       illegal mining, and so on. Intelligence cooperation, military-to-
       military cooperation outside the Amazon—I think that would be an
       opportunity. But as Margaret said, America's ability to support Brazil
       in this is going to be limited.
        
       **Chris Chivvis:** How do you see the similarities and differences
       between Brazilian strategic thinking and the other emerging powers in
       the BRICS?
        
       **Matias Spektor:** Let me take two: India and Indonesia. These
       countries are in many respects parallel to Brazil, and Brazil has had
       increasingly positive and closer ties with these countries. They see
       themselves as coming from a postcolonial experience and are moving up
       the ranks in the world.
        
       So what can we say about the comparisons? This is really tricky. India
       is in an enviable position from Brazil's standpoint because India can
       trade support with the United States in ways that Brazil cannot. India
       matters geopolitically in the context of counterbalancing China. And
       India is making a buck out of this, mostly through military
       cooperation and purchases, [as well as] a phenomenal diaspora that is
       highly educated and well-employed in the United States. Brazil doesn't
       have any of this, so we cannot really compare what's happening in the
       ties between Washington and New Delhi to Washington and Brasília.
       Brazil is much weaker.
        
       Then take Indonesia. Indonesia too is a country whose foreign policy
       resembles Brazil's a lot. When you listen to diplomats from Indonesia
       talk, it sounds like a Brazilian is talking. Joko Widodo, the
       president, is the only man I believe in the last few months to have
       met the presidents of the United States, Russia, and Ukraine. This is
       a man who sees himself as trying to hedge his bets and not take sides
       and benefit from the existing competition. But Indonesia is in a part
       of the world that China claims as its own regional hegemony. So the
       differences are enormous.
        
       Stewart Patrick from Carnegie had a [recent] piece arguing that we
       shouldn't really call the Global South "the Global South." This is a
       very diverse set of countries, but there is something that unites
       them. And what unites them is a common experience of being at the
       bottom end of a global hierarchy. These are countries that have an
       experience with colonialism, economic injustice, and racial injustice,
       and these provide a common ground.
        
       Does this mean they produce a common platform and they are united in
       multilateral fora? No. But they're united in the belief that
       unipolarity is not good for them. So defending the global liberal
       international order is not going to fly with them because they see
       advantage in having not only a strong China but also a strong Russia.
        
       **Chris Chivvis:** How might the United States counter Chinese
       influence in Brazil in a way that is smart and sophisticated?
        
       **Margaret Myers:** I think there are a few things that can be done.
       First of all, I'm a big proponent of greater economic engagement with
       the region generally, given long-standing feelings among Latin
       American leaders that the region has been abandoned by the United
       States.
        
       **Chris Chivvis:** What are you thinking about in particular?
        
       **Margaret Myers:** We're at a bit of an impasse with [trade], but
       certainly economic assistance in various forms, and also investment,
       especially in the case of Brazil.
        
       As the United States looks to secure supply chains, which have been a
       big part of an effort to reduce reliance on China and to reorient
       production toward the region, it's my view that Brazil can and should
       play a role in this process, especially in the production of higher
       value-added products. The United States right now is a major
       contributor to value-added production across the region. This is not
       something that we talk about enough, and we should engage with Brazil
       on these terms.
        
       The problem is this idea of "friendshoring," right? Creating
       opportunities for countries with demonstrated commitments to U.S.
       interests. But Brazil has a mixed record there. Friendshoring is
       necessarily exclusive by nature, so maybe we ought to think about this
       as "making friends-shoring" or something of that nature. It strikes me
       that the administration would seem to be taking this to heart—at least
       to some degree, having just talked about a jobs initiative with
       Brazil, which could be great depending on its scale.
        
       I think also another thing that needs to be done—and is being done to
       a certain degree—is bringing Brazil into the fold. As in this recent
       G7 meeting, acknowledging its prominence on the global stage and in
       global agenda-setting. This is a critical component to maintaining
       fruitful bilateral ties and to ensuring at least some alignment on
       issues of global interest, even though there is this profound
       commitment to avoiding an overreliance on one single partner or on the
       United States in general.
        
       [A third step] is maintaining and strengthening the many existing
       mechanisms for bilateral cooperation. In some of these, ideally, there
       may be a degree of policy coordination that can be achieved that would
       be beneficial, as the United States looks to compete in broader terms
       with China, not just in Brazil but globally.
        
       _View the_ _whole event_ _in the player below, or_ _watch it on
       YouTube_ _._
        
       VIDEO
        
       _Previously in Pivotal States:_
        
        
        
        
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