TLDR: Brazil has captured international attention as it leads the G20 and BRICS while preparing to host COP30 in the Amazon. This moment marks more than just high-profile events—it reflects Brazil’s strategic push to influence global priorities and show leadership at a moment marked by uncertainty and division. But its non-alignment diplomacy model is being tested in new ways, with added U.S. pressures and a tense geopolitical climate. For businesses, this signals both heightened risks and new opportunities.
From Diplomacy to Shaping Priorities
In the past year, Brazil has taken bold steps to reshape the international conversation, positioning itself at the heart of major global forums. At the G20 meetings in Rio, Brazil set out clear priorities—tackling hunger and poverty and calling for changes to how global institutions operate. The launch of the Global Alliance Against Hunger and Poverty stands out as an attempt to bring together different efforts and back them with real support. On climate, Brazil is making the case for tying environmental goals to social justice, pushing for more funding and a fair transition to clean energy as it prepares for COP30 in Belém. Within BRICS, Brazil has helped guide the bloc’s expansion and hosted the 2025 Rio Summit, with a focus on strengthening cooperation among countries of the Global South and encouraging more inclusive, sustainable governance.
Yet, beneath the spotlight, Brazil’s traditional stance of non-alignment is being challenged by a more fragmented world and increasing pressure for countries to take clear positions.
For many years, Brazil’s approach—often described as “active non-alignment”—has meant avoiding taking sides in major power rivalries, putting national interests first and acting as a connector between different regions. This strategy has allowed Brazil to maintain productive relationships with both the United States and China, advocate for changes in global governance and speak for the Global South. But as the competition between Washington and Beijing intensifies and protectionist policies rise, Brazil’s room to maneuver is shrinking. The call to choose sides is getting louder, just as a retreat in U.S. global leadership creates new uncertainty.
U.S. Policy Shifts and Brazil’s Response
Recent U.S. actions—most notably the imposition of steep tariffs, Section 301 investigations and public threats—have shifted the diplomatic landscape. While President Lula has consistently sought to maintain cordial relations with Washington and has championed multilateralism and Global South cooperation, the tone and substance of U.S. policy have been viewed by many in Brazil as direct attacks on national sovereignty. This hardening U.S. posture has encouraged Lula’s government to speed up efforts to diversify partnerships, strengthen ties with China and other developing nations and reduce dependence on the United States.
Beyond the U.S.-Brazil bilateral relations, broader trends are shaping Brazil’s options. Regional divisions within Latin America—fueled by varying economic interests and different political priorities—make it harder for Brazil to build consensus among its neighbors.
These factors complicate Brazil’s efforts to act as a diplomatic bridge. Still, the absence of clear global leadership creates space for Brazil to step forward. Its strengths in climate and sustainability, its reserves of critical minerals and its advocacy for a more inclusive global order all make Brazil a valuable partner for business and investment. The growth of BRICS and increased cooperation among developing countries are also creating new markets and helping companies manage geopolitical risks.
Making the most of Brazil’s role
For companies operating globally, these shifts are not just theoretical—they directly affect regulations, access to markets and partnership opportunities in Brazil. The country’s leadership in international forums is opening new prospects across several sectors:
- Renewable Energy and Climate Technology: Brazil’s climate goals and its role as host of COP30 are fueling demand for clean technology, carbon markets and sustainable infrastructure. Both international funding and public-private partnerships are expanding.
- Agribusiness and Food Security: As a major food producer, Brazil’s efforts to promote food security and sustainable farming are creating opportunities in agtech, logistics and food processing.
- Digital Economy and Technology: Brazil’s push for digital transformation, supported by international cooperation, is driving growth in areas such as ICT, fintech and cybersecurity. Upcoming regulatory changes will pose both challenges and opportunities.
To navigate this evolving landscape, businesses should consider the following:
- Engage with Brazil’s key priorities: Aligning with Brazil’s focus areas—like sustainability, technology and social inclusion—can help unlock incentives and strategic partnerships.
- Diversify relationships: Brazil’s position between different global blocs gives businesses access to both established and emerging markets, reducing exposure to geopolitical risk.
- Track regulatory changes: As Brazil takes a more active role in global discussions, domestic reforms are likely. Staying informed will be critical.
- Use available support: Organizations such as APEX-Brasil and the American Chamber of Commerce in Brazil can provide guidance on entering the market and forming local partnerships.
What Comes Next?
As preparations for COP30 in the Amazon move forward, Brazil faces a defining moment. Its commitment to non-alignment and building bridges is both a source of strength and a vulnerability in a rapidly changing world. At the same time, ongoing political divisions, deep-rooted social challenges and questions about governance at home will shape Brazil’s ability to deliver on its international commitments.
The next year will reveal whether Brazil can unite the Global South, push for meaningful climate action and help reform the institutions that shape the global economy. For business leaders, the takeaway is clear: Brazil’s current role is more than symbolic. Understanding Brazil’s diplomatic approach, investing in innovation and sustainability and building resilient, diverse partnerships will be critical for success in this changing global landscape.
To learn more, reach out to LATAMTeam@apcoworldwide.com
