The U.S. remains the largest bilateral trade partner for Brazil at $40 billion for 2005, reflecting both increased U.S. exports to and imports from Brazil. Upward valuation of the Brazilian Real against the U.S. Dollar has stabilized for the moment but continues to dampen certain export markets for Brazil. Interest rates have been decreased this year, generating more domestic consumption, but recent increases in U.S. Fed rates have caused Brazil's capital markets to suffer. After several years of economic expansion and record trade surpluses, Brazil is facing increasing competition and imports from Asia. Infrastructure for moving commodities to ports has received limited private equity investments and remains underdeveloped, causing costly delays and high port expenses. New-to-market products in Brazil continue to encounter high taxation and import barriers, contributing to contraband and the informal economy. Despite trade facilitation obstacles, old-to-market companies, both Brazilian and U.S., are benefiting significantly from Brazil's prospering economy, contributing to a rapid increase of business and tourism travel to the U.S. for 2006. The U.S. Consulate Commercial Office in São Paulo is experiencing a significant increase, double that of 2005, in its U.S. buyer programs to the U.S. and its local events and programs.

Frank Carrico is responsible for U.S. business development and exports to southern Brazil, an area accounting for three-quarters of Brazil’s GNP and home to 400 of the U.S. Fortune 500 offices. The Commercial Service’s office in Sao Paulo is part of the second largest U.S. Consulate in the world and one of the Commerce’s Department largest overseas offices. Prior to his Sao Paulo posting, Mr. Carrico served in commercial assignments in the Ukraine, Japan, and Germany.