[Congressional Record Volume 155, Number 44 (Thursday, March 12, 2009)]
[Senate]
[Pages S3089-S3090]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         SUBMITTED RESOLUTIONS

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    SENATE RESOLUTION 74--EXPRESSING THE SENSE OF THE SENATE ON THE 
    IMPORTANCE OF STRENGTHENING BILATERAL RELATIONS IN GENERAL, AND 
INVESTMENT RELATIONS SPECIFICALLY, BETWEEN THE UNITED STATES AND BRAZIL

  Mr. LUGAR submitted the following resolution; which was referred to 
the Committee on Foreign Relations:

                               S. Res. 74

       Whereas the United States and Brazil enjoy a longstanding 
     economic partnership sustained by robust trade, investment, 
     and energy cooperation;
       Whereas investment in and by Brazil promotes economic 
     growth, generates greater wealth and employment, strengthens 
     the manufacturing and services sectors, and enhances 
     research, technology, and productivity;
       Whereas the United States is the largest direct investor 
     abroad, with total world-wide investments of 
     $2,800,000,000,000 in 2007;
       Whereas the United States has historically been the largest 
     direct investor in Brazil, investing a total of 
     $41,600,000,000 in 2007;
       Whereas the sound economic policy of the Government of 
     Brazil was given an investment-grade rating by 2 of the 3 
     major investment rating agencies in 2008;
       Whereas the United States is the largest recipient of 
     direct investment in the world, with total foreign direct 
     investments of $2,100,000,000,000 in 2007;
       Whereas the United States receives direct investment from 
     Brazil, including a total of $1,400,000,000 in 2007;
       Whereas Brazil is the only country with a gross national 
     product of more than $1,000,000,000,000 with which the United 
     States does not have a bilateral tax treaty;
       Whereas Brazil is the 4th largest investor in United States 
     Treasury securities, which are important to the health of the 
     United States economy;
       Whereas Brazil ranked 3rd among other countries in the 
     number of corporations listed on the New York Stock Exchange 
     in 2008, with 31 corporations listed;
       Whereas a bilateral tax treaty between the United States 
     and Brazil would enhance the partnerships between investors 
     in the United States and Brazil and benefit small and medium-
     sized enterprises in both the United States and Brazil;
       Whereas a bilateral tax treaty between Brazil and the 
     United States would promote a greater flow of investment 
     between Brazil and the United States by creating the 
     certainty that comes with a commitment to reduce taxation and 
     eliminate double taxation;
       Whereas the Brazil-U.S. Business Council and the U.S.-
     Brazil CEO Forum have worked to advance a bilateral tax 
     treaty between the United States and Brazil;
       Whereas the Senate intends to closely monitor the progress 
     on treaty negotiations and hold a periodic dialogue with 
     officers of the Department of the Treasury; and
       Whereas the United States and Brazil will greatly benefit 
     from deeper political and economic ties: Now, therefore, be 
     it
       Resolved, That it is the sense of the Senate that--
       (1) the United States Government and the Government of 
     Brazil should continue to develop their partnership; and
       (2) the Secretary of the Treasury should pursue 
     negotiations with officials of the Government of Brazil for a 
     bilateral tax treaty that--

[[Page S3090]]

       (A) is consistent with the existing tax treaty practices of 
     the United States Government; and
       (B) reflects modern, internationally recognized tax policy 
     principles.

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