Lula signs reciprocity law and triggers productive sector to discuss US fare
President Luiz Inácio Lula da Silva (PT) signed on Monday (14) the decree regulating the reciprocity law, a provision approved by Congress in April authorizing Brazil to adopt retaliation measures against countries that impose unilateral barriers harmful to the national economy.
The measure was signed in the Planalto Palace and should be published in the Federal Official Gazette on Tuesday (15). The new law can be triggered against the United States from August 1, if US President Donald Trump maintains a 50% rate on Brazilian products.
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“The law authorizes the Executive to adopt protection measures of the country when extemporaneous and extraordinary measures are unilaterally adopted by other countries against Brazil,” said Civil House Minister Rui Costa, after the event with Lula.
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Retaliation if dialogue fails
Despite the signing of the decree, the government is still trying to avoid direct confrontation with the United States. According to the calculation of UOLthe effective application of the law will be treated as a last alternative, if there is no advance in the dialogue with the White House until the start of the tariffs.
“The denomination ‘reciprocity’ can respond in a fast format, if another country makes measures similar to the one announced by the United States,” said Rui Costa.
Trump’s offensive has been associated by Lula’s allies with the approach between Eduardo Bolsonaro (PL-SP) and members of the US government. Behind the scenes, Planalto evaluates that the answer needs to balance firmness and pragmatism to avoid chain commercial reprisals.
Emergency committee
In an initial response, the government set up an emergency committee, led by vice president and minister of industry, commerce and services, Geraldo Alckmin, to define alternatives together with the productive sector.
The group will hold two meetings on Tuesday (15):
• In the morning, with industry representatives, including sectors such as aviation, steel, pulp, machines, shoes and auto parts;
• In the afternoon, with agribusiness leaders, involving orange juice chains, meat, fruits, honey, leather and fish.
The government also intends to dialogue directly with US companies and entities, which should also be negatively impacted by tariffs.
“It is evident that American companies will also be hit. Let’s talk to them and the Brazil-Eua Trade entities. It has a chain integration,” Alckmin said earlier.
