Coordinator, International Strategy & Global Initiatives, U.S. Chamber of Commerce
January 29, 2024
Since the elevation of the G20 in coordinating global policy action following worldwide economic challenges, the U.S. Chamber of Commerce has played a key leadership role supporting private sector participation at the yearly G20 process.
This year, with Brazil assuming the G20 presidency, the U.S. Chamber is expanding its contributions to the G20 policy debates. As in previous years, the Chamber advocates for the interests of American businesses on a global stage. Below, we explore why the G20 matters now and why we want you to get involved.
History of the G20
Born out of a financial crisis, the G20 has become the preeminent platform for global economic cooperation. This coalition of 19 countries, the European Union, and, as of last year, the African Union, represents the world's major economies. Collectively, these nations account for approximately 90% of global GDP, 80% of global trade, and two-thirds of the global population. Each year, the G20 presidency rotates, allowing the host country to shape the global agenda. In 2024, this responsibility falls to Brazil.
Meet the Host, Brazil
Brazil is taking the center of the global stage with significant momentum. An unquestionable leader and trendsetter in Latin America, Brazil ranks as the 9th largest economy in the world (2023). This year, the nation is not only hosting the G20 but is also gearing up for COP30 in 2025. The U.S. Chamber has extensive programming planned for both events.
Brazil's presidency comes at a crucial juncture for multilateralism. Recent years have witnessed a decline in trust between developing and developed nations and increasing global challenges. This backdrop underscores the urgency for united action to tackle pressing global economic issues. Under Brazil’s leadership, this will mean a focus on combating hunger and poverty, expediting the transition to sustainable energy, promoting sustainable bioeconomies, and reshaping trade systems and investment flows to meet developmental objectives.
The U.S.-Brazil Relationship
The bilateral relationship, in a word, is strong. U.S. trade of goods and services with Brazil totaled an estimated $120.7 billion in 2022. American investments in Brazil are also substantial, exceeding $145 billion and representing 23% of all Foreign Direct Investment in the country. These investments, primarily in capital-intensive manufacturing industries, foster the creation of numerous formal, high-quality jobs in Brazil. They also provide indirect opportunities for numerous micro, small, and medium enterprises vital to various value chains. Collectively, U.S. investments are pivotal in Brazil’s reindustrialization and growth of its formal economy.
What About the U.S.?
Adding to these strong bonds, the U.S. plans to work closely with Brazil during its G20 presidency. The U.S. will aim to build on the achievements from India's presidency, looking ahead to South Africa's tenure in 2025 and then preparing for its own presidency in 2026. Ahead of 2026, the U.S. focus will be on aiding developing countries, addressing global crises, and promoting sustainable initiatives in health, climate change, food sustainability, and digital transformation. Many of the projects that Brazil and the U.S. plan to undertake together will require the involvement of the private sector for successful realization.
What We’re Focused On
Each year, the B20, the business counterpart of the G20, with input from the U.S. Chamber, advances policy recommendations in critical areas such as trade, energy and climate, digital transition, and infrastructure finance. Beyond the B20 recommendations, the Chamber's focus will include advocating for:
- Reform of Development Finance – The Biden administration is actively working to restructure the World Bank, complemented by mobilizing additional development financing. The Chamber’s goal is to help reshape the global financial infrastructure, making it more conducive to sustainable and economically beneficial development from public and private sector players.
- Food Sustainability – Fighting hunger is one of humanity’s greatest challenges. The U.S. Chamber is committed to finding innovative solutions to the dual challenges of meeting rising food demands and ensuring environmental sustainability. Our focus is on fostering a system that ensures a secure, efficient, and reliable food supply chain. By doing so, we strive to eliminate hunger and cultivate healthy communities worldwide.
- Environmental and Climate Risks – In our commitment to addressing energy efficiency and climate challenges, we will promote secure, prosperous, and environmentally friendly business solutions. Our focus is on advancing sustainable practices that benefit both the economy and the environment.
- TradeContinuity – Recognizing the consensus among G20 leaders on the critical importance of maintaining global trade continuity, we pledge to strengthen the vital role played by private enterprise. Our aim is to enable sustainable economic transformations and foster growth in harmony with the perspectives and goals set by the G20.
More to Come
Brazil’s G20 presidency is, literally, just getting started. The U.S. Chamber will actively participate and adapt its programming in response to the G20 calendar. Throughout the year, we’ll work with the Brazilian National Confederation of Industry, CNI, to make sure the private sector voice is prominent. The Chamber's initiatives will kick off with the B20 Opening Event on January 29 in Rio de Janeiro, followed by high-level talks in Brasília with the Sherpas from the key ministries of the Brazilian Government.
The Chamber will continue to share more information on its engagement in the G20 under Brazil’s leadership. Até breve!