[Congressional Record (Bound Edition), Volume 157 (2011), Part 3]
[Senate]
[Pages 4336-4337]
[From the U.S. Government Publishing Office, www.gpo.gov]




   SENATE RESOLUTION 108--EXPRESSING THE SENSE OF THE SENATE ON THE 
  IMPORTANCE OF STRENGTHENING INVESTMENT RELATIONS BETWEEN THE UNITED 
                           STATES AND BRAZIL

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

                              S. Res. 108

       Whereas President Barack Obama is set to visit Brazil on 
     March 19 and 20, 2011, during a 5 day trip which will include 
     stops in Chile (March 21), and El Salvador (March 22);
       Whereas the United States and Brazil enjoy longstanding 
     economic relations sustained by trade and investment;
       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 in the United States 
     and Brazil;

[[Page 4337]]

       Whereas the United States is the largest direct investor 
     abroad, with total world-wide investments of 
     $3,508,000,000,000 in 2009;
       Whereas the United States has historically been the largest 
     direct investor in Brazil, investing a total of 
     $56,692,000,000 in 2009;
       Whereas the sound economic policy of the Government of 
     Brazil was given an investment-grade rating by the 3 major 
     investment rating agencies in 2009;
       Whereas the United States is the largest recipient of 
     direct investment in the world, with total foreign direct 
     investments of $2,320,000,000,000 in 2009;
       Whereas the United States received direct investment from 
     Brazil, including a total of $1,400,000,000 in 2007 and a 
     reduction of that amount by $647,000,000 in 2009;
       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 7th among other countries in the 
     number of corporations listed on the New York Stock Exchange 
     in 2009, with 35 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-United States Business Council and the 
     United States-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 relations: 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 relationship; and
       (2) during the President's March 19 and 20, 2011, visit to 
     Brazil, he should propose to his Brazilian counterpart that 
     the United States and Brazil begin negotiations for a 
     bilateral tax treaty that--
       (A) is consistent with the existing tax treaty practices of 
     the United States Government; and
       (B) reflects modern, internationally recognized tax policy 
     principles.

                          ____________________