The government may issue a new Provisional Measure (MP) to support Brazilian companies if the United States confirms the application of new tariffs on national products. This information was given on Tuesday (14) by the Minister of Finance, Dario Durigan, who stated that the measure will be evaluated according to the effects of the eventual taxation on the export sectors, according to a note from "Agência Brasil". According to the minister, a possible MP would follow a model similar to the Brazil Sovereign program, created to mitigate impacts on companies affected by trade barriers. "I don't rule it out, because we need to protect our companies and our entrepreneurs. But this will be done very cautiously, so that we can assess what the actual impact will be on Brazilian companies," said the minister, after returning from a meeting at the Civil House.
Cautious action
Durigan emphasized that the government is still awaiting a decision from the United States before announcing any measures. According to him, negotiations are being conducted by the Ministry of Development, Industry, Trade and Services (MDIC) and the Ministry of Foreign Affairs. The minister stated that, if the tariffs are confirmed, the government intends to identify the most affected sectors and engage in dialogue with representatives of the productive sector before defining support actions. "We will assess whether this further disproportionate measure is indeed confirmed, identify the affected sectors, and discuss what measures could eventually be proposed," he said.
Reciprocity
In addition to a possible Provisional Measure, Durigan stated that the government is also considering resuming the procedures foreseen in the Economic Reciprocity Law, approved to allow responses to trade barriers imposed by other countries. According to him, the process had been suspended after the reduction of trade tensions, but could be resumed after consultation with President Luiz Inácio Lula da Silva. "It is likely that, once President Lula is consulted, we will resume the reciprocity process," he stated.
Fee under review
The United States is considering imposing an additional tariff of up to 25% on Brazilian products following an investigation conducted by the Office of the United States Trade Representative (USTR) into alleged trade practices considered detrimental to U.S. interests. Furthermore, U.S. authorities are discussing an additional 12.5% tariff related to allegations involving working conditions in Brazil. If both measures are implemented, some Brazilian products could face surcharges of up to 37.5%.
Open negotiations
Despite increased trade tensions between the two countries, negotiations remain ongoing. The Brazilian government is seeking to expand the list of products that may be exempt from tariffs and is monitoring the public consultation opened by the US government before the final decision. According to Durigan, the Executive branch has not yet received any advance information about the outcome of the investigation conducted by the USTR and will continue to monitor the process before announcing any measures to support the productive sector.
This text was translated by machine from Brazilian Portuguese.