Government does not give up PIX, but presents new measures to the USA to avoid tariffs
Lula speaks of "traitors to the country" after Flávio Bolsonaro's letter to the USA
The government of President Luiz Inácio Lula da Silva (PT) proposed, in a meeting this Thursday (2) with the United States Trade Representative, Jamieson Greer, a "road map", expanding the guarantees that the practices adopted by Brazil do not burden or restrict trade with the North Americans.
The government remains irreducible in relation to any negotiations on the PIX, but has opened itself to negotiations in other areas that concern Donald Trump's administration.
Last month, the United States concluded an investigation and identified six issues considered problematic in trade relations with Brazil.
These are:
digital commerce and payment services;
unfair preferential tariffs;
access to the ethanol market;
protection of intellectual property;
fighting corruption; and
illegal deforestation.
In the assessment of members of the Brazilian government who participated in the meeting, the strategy is seen as a last ditch move by Brazil's technical area to try to avoid the additional 25% tariff on Brazilian products.
The deadline for the final decision and eventual application of the measures is July 15.
Teams from the Ministry of Foreign Affairs, the Ministry of Development, Industry, Commerce and Services (MDIC) and the Special Advisory Office of the President of the Republic placed new measures on the negotiation table in an attempt to demonstrate to the USA that the topics investigated do not and will not distort trade between countries.
The objective, according to members of the Lula government, is that the "status quo" of these actions considered "not disloyal" by Brazil is reinforced.
There is a plan for another meeting led by minister Marcio Elias Rosa and Jamieson Greer until July 15, according to the MDIC.
After this Thursday's meeting, Elias Rosa stated that some "mistakes" caused by third parties have hindered negotiations between Brazil and the United States regarding the tariff announced by President Donald Trump.
But he added that President Lula's determination is that the government "never" leaves the negotiating table, leaving ideological issues aside.
"Every time we move forward positively, it seems that some obstacle or setback arises and we need to overcome it. [...] President Lula was with President Trump in Malaysia, after that meeting at the UN, then we had consecutive meetings, several phone calls, and they were always very positive", declared the minister.
Formal demonstration by the government Brazilian
On Wednesday (1st), Brazil sent a formal response to the United States regarding the section 301 investigation.
In the document, signed by Chancellor Mauro Vieira, Brazil states that the American government's criticism of PIX and the decisions of the Federal Supreme Court (STF) are not related to trade, but to disagreements over internal policies.
In the Brazilian government's view, if the pace and conduct of anti-corruption processes, the confidentiality of court orders issued in accordance with domestic law or the structure of a digital payments system were sufficient, in themselves, to justify an action based on Sec. 301, "the law would no longer have a clear limit on what can or cannot be used to apply sanctions."
Source: G1