Fernando Haddad states that Brazil will respond to the tariff increase with defensive measures and acting on diplomatic channels
Finance Minister Fernando Haddad declared on Friday 1 that the Federal Government does not intend to adopt retaliation measures against the United States after the tariff increase imposed by President Donald Trump.
According to the minister, the focus of the next actions will be the protection of the national economy, with measures aimed at relieving impacts on industry and agri -food. Haddad explained that there has never been a formal decision to take revenge and that this idea is not part of the government’s approach.
” [de retaliar] Because this decision was not taken. We never use this verb to characterize the actions that the Brazilian economy will undertake. These are actions to protect sovereignty, protection of our sector, our agri -food, “he told journalists.
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Despite the new Brazilian legislation sanctioned by President Luiz Inacio Lula da Silva, in April, who authorizes the measures of reciprocity in response to external commercial practices considered unjust, Haddad has underlined that the government’s strategy will be to resort to legal and diplomatic mechanisms to defend the interests of Brazil. He reiterated that the word “retaliation” was never part of the official vocabulary on this topic.
“These are reaction measures to unjustifiable action and the protection of Brazilian economy and sovereignty. That word [retaliação] He did not appear in the President’s speech and no minister, “he said.
Currently, Brazil follows the rules of the World Trade Organization (OMC), which prohibits the application of discriminatory rates to specific countries. However, with the new legislation in force, the country now has legal tools to respond to illegal commercial practices, such as the tariff increase promoted by the United States.
“We understand that there are competent channels, in which Brazil can defend its interests in the WTO [Organização Mundial do Comércio]In American Court, where several entrepreneurs from both the United States and Brazil are using to safeguard their interests. And yes, looking for the competent diplomatic channels to mitigate the effects of the decision on the Brazilian economy, “added the Minister of Finance.
In the conversation with journalists of the Ministry of Finance, Haddad defined the rise of rates as a decision with political motivations.
The decree signed by Donald Trump on Wednesday 30 July increased the rate on Brazilian products to 50%. However, a list of 700 exceptions was included, for the benefit of strategic sectors such as the aeronautics, energy and part of the agri -food. Already on Thursday 31 July, Haddad said that, taking into account the exceptions, the impact of the decree was less serious than initially expected, although there are still strongly affected by the measure.
Estimates according to the vice -president Geraldo Alfmin
Vice -president Geraldo Alfine estimated that about 35.9% of Brazilian exports to the United States will be influenced by the 50% rate. This is because, according to him, 45% of the products were excluded from the tariff elevation by the Americans. In addition, steel and aluminum, which were already subject to a rate of 50%, remained this rate, while cars and car parts continue with a rate of 25%, as already practiced for all countries.
Haddad has also confirmed that the government is finalizing a package of emergency measures to protect jobs and sectors affected by rates. These actions will be presented to President Lula and can be announced next week.
“For our part, already, together with the vice -president Geraldo Alfine, we refer to the Planalto Palace the first measures already formatted. So that the president judges the opportunity to free them. From next week, we will already do so, according to the president’s decision, to take the first measures to protect the national industry and agriculture”, he concluded.
Source: Terra
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