Flávio arrives in the USA to discuss tariffs while Brazil negotiates
Senator Flávio Bolsonaro (PL-RJ) arrived in the United States, where he is expected to participate, next Tuesday (7), in a public hearing that will discuss the possibility of imposing an extra 25% tariff on Brazilian products.
The parliamentarian and pre-candidate for the Presidency of the Republic will be one of the speakers on the second and final day of debates organized by the USTR, an acronym in English for Office of the United States Trade Representative, the body that conducts the open trade investigation against Brazil.
Flávio's demonstration is scheduled for 10am, Washington time (11am in Brasília), a few days before the final decision by the American government, scheduled to be announced by July 15th.
For about five minutes, the senator signaled that he will advocate that the surcharge not be implemented and will ask the two countries to seek a solution through dialogue.
In his assessment, the measure would bring losses to Brazilian exporters and consumers and, at the same time, would end up politically strengthening President Luiz Inácio Lula da Silva (PT).
Participation in the hearing occurs after sending an 86-page document to the United States authorities. In the material, Flávio requests the suspension of the so-called tariff and asks that Pix not be included in the commercial dispute between the two countries.
In his justification, the senator argues that the adoption of the tariff would produce the opposite effect to that desired by Washington, by providing greater political support to the Lula government.
The hearing is part of the investigation initiated under Section 301 of American trade law.
The procedure analyzes whether policies adopted by Brazil in areas such as digital commerce, electronic means of payment, intellectual property, access to the ethanol market, preferential tariffs, combating corruption and combating illegal deforestation represent harm to the commercial interests of the United States.
Before defining possible measures against Brazil, Donald Trump's government opened a period to receive written statements and hold public hearings.
This phase brings together contributions from companies, representative entities, experts and organizations from both countries.
In addition to Flávio Bolsonaro, Roberto Azevêdo, former director general of the WTO (World Trade Organization), will also participate in the panel, who will speak on behalf of the CNI (National Confederation of Industry), Fiesp (Federation of Industries of the State of São Paulo) and CSN (Companhia Siderúrgica Nacional).
In the proposal sent to the USTR, Flávio Bolsonaro suggested that the United States temporarily suspend the application of the additional tariff and establish a bilateral negotiation channel, with a defined schedule to discuss the topics subject to investigation.
According to the proposal, the suspension of the surcharge would not imply the termination of the commercial investigation, which would remain ongoing while Brazil and the United States seek a negotiated solution to the impasse.
Brazilian government continues with negotiations
The Brazilian government is still seeking convergence with the United States to prevent tariffs without having to give in on crucial points for Brazil.
In response to senator Flávio Bolsonaro, Palácio do Planalto argues that there should be a reversal of the tariff, regardless of who wins the elections in October.
The Brazilian government's view is that, by defending the postponement of the application of taxes until after the election, Flávio reinforces that the objective is not to reverse the economic impact of the measures, but rather to link the decision to the result of the October election.
The government's bet is to demonstrate that conditions for the American sector will remain positive without the 25% tariff that can be implemented.
By July 15th, minister Márcio Elias Rosa, from the MDIC (Ministry of Development, Industry, Commerce and Services), must still have two more meetings with the United States Trade Representative, Jamieson Greer, to deal with trade investigations against Brazil.
Last Thursday (2), Elias met with Greer and rejected any possibility of negotiations about 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.
Government responds to US accusations and asks that tariffs not be applied | CNN NEW DAY
Source: CNN