Tariff: diplomacy tries to decipher US demand

Less than ten days before the deadline for the possible application of an additional 25% tariff on Brazilian products, negotiations between Brazil and the United States face an unusual impasse: the Brazilian government claims to have no clarity on what, in fact, the Americans require to unlock an agreement. The investigation is carried out by CNN anchor Débora Bergamasco together with sources who participate directly in the conversations.

According to these sources, the USTR - the American government's trade body - identified six topics considered sensitive, including Pix and production in deforested areas. However, the body did not present specific requests.

Brazil makes offers without receiving a response
In view of the absence of clear demands from the American side, the Brazilian government has adopted a propositional stance in meetings.

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Successively, Brazil presents possibilities for changes, adjustments and concessions - such as changes in tariffs or preferences for certain sectors - in the hope of extracting some position from the United States. To date, however, none of these proposals has received a formal response.

Last Thursday (2), another meeting was held between representatives of the two countries to discuss the issue. Brazil presented, once again, a series of adjustment proposals. The United States, until the moment of investigation, did not comment on the content offered.

Investigation of Section 301 seen as "plan B"
Members of the Brazilian government assess that the investigation known as Section 301, conducted by the USTR, would be, in practice, an alternative instrument to make the tariff legally viable.

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The interpretation is that, after the American Supreme Court banned the previously announced tariff model - which affected several countries with different rates, heavily penalizing Brazil -, the investigation would have emerged as a legally more solid way to apply the same measures.

In addition, sources consulted by Débora Bergamasco indicate that the Brazilian government believes that the issue is not of a technical nature, but essentially political. The assessment is that the tariffs reflect structural options of American management, such as the "America First" policy, the reindustrialization strategy and the objective of increasing revenue through imports.

Upcoming meetings and low expectations
For this week, two meetings are planned. The first, at a technical level, will bring together officials from both countries with the aim of trying to obtain some American position. The second will be held at a higher level, between minister Márcio Elias Rosa, from the MDIC (Ministry of Development, Industry, Commerce and Services) and Jamieson Greer, highest representative of the USTR.

Despite the expectation that these meetings will bring responses to Brazilian proposals, the history of negotiations does not encourage optimism.

The Brazilian government does not believe that the United States will give up on applying the 25% tariffs, although it recognizes that the deadline of the 15th could be suspended or postponed. The scenario, for now, remains undefined.

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Source: CNN