Brazil says it will not give up Pix when negotiating tariffs with the USA

Following threats made by the United States government to apply new 25% tariffs on Brazilian products, the federal government has met with American trade representatives to try to avoid a new "tariff".

The conversations revolve around the investigation carried out by the USA through "Section 301", which analyzes points of Brazil's economic performance, such as the fees charged in international trade and the operation of Pix. The Brazilian government reinforced that the payment system is non-negotiable.

On Thursday (2), the minister of MDIC (Development, Industry, Commerce and Services), Márcio Elias Rosa, met with the head of the USTR (trade representative's office), Jamieson Greer, and rejected any possibility of negotiations on Pix, which has been one of the main targets of the North American investigation.

At the meeting, the minister presented a plan, which does not include Pix, with measures that Brazil may adopt to meet the demands required by the USA in Section 301. According to CNN, the actions would meet all other axes of the investigation, which are:

- unfair preferential tariffs;
- access to the ethanol market;
- protection of intellectual property;
- fight against corruption; and
- illegal deforestation.

The main measure exposed as a negotiating currency was the reduction in tariffs that Brazil charges the United States on around 300 types of commercial transactions. Other possibilities presented are texts currently being processed in the National Congress or infra-legal measures formulated internally at Palácio do Planalto.

This was the fourth time that Márcio Elias and Jamieson Greer met. Under WTO (World Trade Organization) guidelines, Brazil could not lower tariffs for just one country. Therefore, it could not do so only to the United States. The solution found was to offer a reduction in rates to several countries, in sectors in which the Americans would be better able to compete and which would not harm the national industry.

With the reinforcement that Pix will not enter the negotiations, talks between the two governments should continue. Next week, members of the economic areas will meet again, and it is expected that the MDIC minister and the head of the USTR will meet before July 15, the deadline in which the US must decide whether or not to recommend new tariffs to BRAZIL.

Political dispute
While economic negotiations continue, American tariffs and possible new trade sanctions have been the reason for statements and exchanges of barbs between the two main pre-candidates for the Presidency: Luiz Inácio Lula da Silva (PT) and Flávio Bolsonaro (PL).

President Lula criticized the Bolsonaro family this Thursday after Senator Flávio Bolsonaro (PL-RJ) sent a letter to the United States asking for the suspension of possible tariffs against Brazil.

On social media, Lula said that Brazil is "not for sale" and that defending the postponement of tariffs until after the elections, as Flávio did, is "a betrayal of the country".

"Asking for tariffs against our country to be postponed until after the elections is yet another attitude of traitors to the country. There never was and there is no justification for tariffs now or later", Lula published on X (formerly Twitter). "Our Homeland is not for sale. Our sovereignty is non-negotiable. Brazil belongs to Brazilians", added the president.

Later, on Thursday, Senator Flávio Bolsonaro countered, also through X, Lula's statements. According to Flávio, Lula "is the only one who wants tariffs on Brazilian products". Jair Bolsonaro's son criticized what he called the "false narrative defending sovereignty" by the current head of the Executive.

"He provoked, shouted, did not negotiate and lobbied in favor of the PCC and the Red Command so that they would not be classified as terrorists. He shamed Brazil before the world! It ignored the suffering of more than 50 million Brazilians who live in areas dominated by these narco-terrorists," said Flávio.

Government responds to US accusations and asks that tariffs not be applied | CNN NEW DAY

Source: CNN