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Subject

Brazil's OECD membership ambitions.

Significance

The Brazilian government has frequently expressed interest in joining the OECD, for which it counted on the support of US President Donald Trump. However, rapid progress seems to have been frustrated, after Washington gave precedence to Argentina and Romania. Following the recent BRICS summit in November, economic ties between Brazil and China will be reinforced, potentially rebalancing Brazilian external relations away from the United States.

Impacts

Brazilian OECD membership may be further delayed by disputes over the pace of OECD expansion.

Brazil will seek greater economic integration but will struggle to balance foreign policy priorities.

The accession process may encourage further fiscal austerity that could undermine already sluggish growth prospects.

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