Government responds to US accusations and asks that tariffs not be applied

The Ministry of Foreign Affairs forwarded, this Wednesday (1st), the federal government's official response to the investigation by the USTR (United States Trade Representative) against alleged unfair practices on the part of Brazil.

In the document, the government argues that the US conclusions do not demonstrate that Brazilian policies are discriminatory or harm US trade.

Therefore, it requests that the 25% tariff proposed under Section 301 of the US Trade Act not be applied.

The government claims that the investigation goes beyond the limits of the legal provision, and maintains that the USTR has not proven that Brazilian policies are "irrational", "discriminatory" or that they impose concrete harm on US trade.

Furthermore, Itamaraty argues that disputes of this nature should be resolved through the WTO (World Trade Organization), and not through unilateral measures.

Trade investigation
In early June, the USTR proposed imposing 25% tariffs on all imports from Brazil, except for goods that qualify as "subject to national security tariffs" - so items such as beef, coffee and petroleum would be exempt from the tariff.

The body stated that Brazilian government policies on digital commerce, preferential tariffs, combating corruption, patent processing and piracy, ethanol and illegal deforestation generate legal uncertainty and unfair competition for US players.

The proposed lawsuit comes under Section 301 of the US Trade Law - a trade policy tool that allows the US to investigate and retaliate against other nations against trade practices deemed unfair.

In the representation sent to the USTR, the Brazilian government concludes that the investigation was based on political differences, and not on evidence of illegal commercial practices. Therefore, he asks the US to abandon the proposal for a new tariff and resume bilateral dialogue.

Brazil's response point by point
Pix and digital commerce
Target of US accusations, Pix was defended in the Itamaraty document, which:

- Says that the system is open and does not discriminate against North American companies;
- Highlights that Google Pay, Visa and other US companies operate normally within Pix;
- Argues that Pix increased competition, reduced costs and expanded financial inclusion, instead of excluding competitors.

On court orders against digital platforms, the government:

- Affirms that decisions of the STF (Federal Supreme Court) and other courts follow due legal process;
- Defends that judicial secrecy protects investigations and fundamental rights;
- Points out that the rules apply equally to national and foreign companies.

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Preferential tariffs
As for the accusations that Brazil favors certain trading partners to the detriment of the USA, it is argued that:

- The country's trade agreements are compatible with WTO rules;
- The US continues to have strong access to the Brazilian market;
- Eight of the ten main products exported by the US to Brazil enter tariff-free;
- The USTR itself admits that the loss of North American participation could result from several factors, and not just these trade agreements.

Fighting corruption
The USA also accused Brazil of experiencing a moment of institutional weakening in the fight against corruption. Brazil's response argues that:

- The country has a robust structure to combat corruption;
- It has already initiated more than 4,200 procedures since the Anti-Corruption Law;
- It frequently cooperates with North American authorities;
- Recent OECD reports show progress and not a systemic setback.

Intellectual property
Regarding accusations that the country does not meet international standards in patent registration and trademark protection, the government says that:

- It has legislation compatible with international agreements (Trips);
- It has greatly reduced the delay in patent analysis;
- It protects copyright and combats piracy;
- It was removed from the "Priority Watch List" of the Special 301 report in 2025 precisely because of the advances made;
- The USA is demanding higher standards than those expected internationally (Trips-plus), to which Brazil would not be obliged.

Ethanol
Another point supported by the USA would be supposed barriers imposed by Brazil on North American ethanol. Regarding this, the government argues that:

- The Brazilian tariff on ethanol is applied equally to all countries (Most Favored Nation clause);
- It remains below the ceiling allowed by the WTO;
- The drop in North American exports is due to several market factors, and not just the tariff.

Illegal deforestation
The USTR points out that the existence of environmental crimes may be related to the existence of a public policy to encourage deforestation. The document argues that:

- Brazil has a broad legal framework to combat deforestation;
- Significantly increased resources for inspection;
- Expanded the use of satellite monitoring;
- Recorded a consistent drop in deforestation in the Amazon and Cerrado since 2023;
- Carried out major operations against environmental fraud and illegal logging.

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Source: CNN