Expert: US tariff hearing depends on sector argument

Washington received, this week, representatives of the Brazilian productive sector for a public hearing with the United States government, with the aim of discussing the new 25% tariffs imposed on Brazilian products.

The meeting took place at the headquarters of the American Trade Commission and marks a decisive stage in the negotiation process around the so-called tariff.

José Pimenta, columnist for CNN Money, personally followed the hearing in Washington and reported the predominantly technical nature of the dialogues. According to him, the conversations revolved around the concrete impacts that certain tariffs could have on both North American companies and consumers.

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Technical tone marks the debates at the Trade Commission
The format of the hearing consisted of statements by representatives of the Brazilian private sector, followed by questions asked by representatives of the American department.

"The tone was much more technical in terms of how much a specific tariff for some type of product would eventually cause some type of damage to both the American consumer and companies in that sector", said Pimenta.

Sectors prepared to respond to previously established criteria, such as the possibility of substituting products by other nations and the impact generated by the absence of certain items on the American market.

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Pimenta highlighted that the first part of the hearing was concluded and that a second session was scheduled for the following day, with new demonstrations and other parties involved. The process, therefore, had not yet come to an end at the time of reporting.

Exclusion of products from the list is the main bet
When asked about the prospects for a less negative result for Brazil, Pimenta pointed out two fundamental points.

The first concerns the broad tariff on Brazilian products, which depends not only on the hearings, but also on bilateral intergovernmental negotiations scheduled to take place until around July 15th.

The second point, more directly linked to what is being discussed in the hearings, involves the possibility of including specific products in a tariff exclusion list.

"You have a much better chance at the first moment of placing products on the exclusion list", said Pimenta. According to him, the central strategy is to demonstrate, based on technical data, that the tariffs would cause losses not only to Brazilian companies, but above all to North American companies and consumers. "Ultimately, who will have to pay for this bill", concluded the columnist.

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Source: CNN