Economic History of Brazil - U.S and Brazil Economic Relations, 1870-1930

U.S and Brazil Economic Relations, 1870-1930

In 1870 Brazil’s trade with America was valued at about 31 million dollars while the combined trade of all the South American countries was valued at about 29 million. Brazil was a significant producer of coffee and because of this the United States imported about four times as much as it exported to Brazil. In 1885 Brazil was producing more than one half of the world’s supply of coffee. Brazil’s trade in 1890 was more than 71 million while that of Argentina and Chile was $14 million and $6 million respectively. Soon after 1896, the production of coffee started to surpass consumption and prices began to fall in Brazil. Brazil then stored their coffee instead of selling all of it, and when there was bad season of coffee production they would use what they had previously stored from the year before.

The Monroe Doctrine appeared to some South American states as a U.S attempt of preserving their control over that hemisphere. Brazil viewed this doctrine as a measure of protection against the interference of the United States and from European nations. Brazil’s first ambassador to the United States, Joaquim Nabuco, 1905–1910, was a partisan of the Monroe Doctrine. Brazil borrowed money from many nations but it was not until after World War One that it actually borrowed substantial amounts from the U.S. With the outbreak of the First World War, Brazil continued to share the most significant trade with America with a trade that was valued at $154 million.