STORY-TRÅD·politik

Brazil, US set date for meeting to discuss tariff hikes

The Minister of Development, Industry, Trade, and Services, Márcio Elias Rosa, and the US Trade Representative (USTR), Jamieson Greer, will meet next Monday (Aug. 31). The talks will take place virtually, the ministry confirmed to Agência Brasil. The resumption of negotiations was agreed upon during a phone call between Presidents Luiz Inácio Lula da Silva and Donald Trump last Friday (21). The conversation lasted about an hour and 20 minutes and, according to the Planalto presidential palace, was cordial. The two leaders opened a new channel of dialogue between Brasília and Washington amid the trade dispute triggered by tariffs imposed by the US government on Brazilian products. Notícias relacionadas:Tariff hike: Brazil files WTO complaint against US measures.Tariff hike: In Washington Post article, Lula criticizes US stance.Tariff hike: US excludes 471 products from new 12.5% tariff.During the call, according to the Planalto palace, the Brazilian president called for the resumption of trade negotiations and stated that the justifications presented by the US government for imposing the new tariffs are unfounded. Tariff hike In July, the USTR imposed a 25 percent surcharge on various products from Brazil, following nearly a year of review. Tariffs were imposed on exporters of iron and steel, apparel, footwear, sugar, ethanol, pharmaceuticals, agricultural machinery, electrical machinery not intended for the aviation sector, and other manufactured goods. The USTR justified the tariffs by stating that certain practices adopted by Brazil were unreasonable and burdened or restricted trade for US farmers, workers, innovators, and exporters. An additional 12.5 percent surcharge was subsequently imposed on more Brazilian products, on the grounds that Brazil does not have effective mechanisms in place to prevent the importation of goods produced using forced labor. As a result, the new tariffs, in effect since the end of last month, affect approximately USD 6.6 billion worth of Brazilian exports to the US market, according to a survey by the Ministry of Development, Industry, Trade, and Services. The Brazilian government had already requested consultations under the World Trade Organization’s (WTO) dispute settlement system, arguing that the tariffs imposed are “inconsistent” with the rules established by the organization. In response, the US accepted the request to hold consultations within the WTO framework. Since the Trump administration began imposing tariffs, Brazil has emphasized that, in the trade relationship between the two countries, the US runs a trade surplus - that is, it sells more than it buys. In the statement announcing the launch of the economic reciprocity process, the Brazilian government says it will continue to work to mitigate the damage caused by the tariffs to the economy and to Brazilians’ incomes.