Brazil and the United Kingdom: trade relations in the 1990s

Abstract

Trade relations between Brazil and the United Kingdom are long established but recent changes in Brazil have created expectations of an increase in the relationship between the countries. This paper explores recent trends in the bilateral trade relationship at both an aggregate and disaggregated level. An econometric model is developed to explain British and Brazilian bilateral exports on a global basis, which demonstrates that both countries have "underperformed" in their exports to each other. The British "underperformance" in the Brazilian market and the Brazilian underperformance in the British market are analyzed. The prospects for trade relations in the next ten years are considered.