Haddad: tariff against Brazil is “unjustifiable” and has “radical” support

Finance Minister Fernando Haddad classified as “unjustifiable” the 50% surcharge imposed by the United States government on Brazilian products and said that Brazil is experiencing an “unusual” situation in international trade.

“We are subject to unjustifiable retaliation from a political and economic point of view, unfortunately with the support of some radicalized sectors of Brazilian society,” said on Wednesday (13), during the presentation of the $ 30 billion package to help exporters.

According to Haddad, the American measure is contrary to the logic of trade relationship between the two countries, as the US has expressive surplus with Brazil. He pointed out that the Brazilian response will be “firm and coordinated”, involving actions in the World Trade Organization (WTO) and expansion of credit, insurance and tax incentives to maintain external competitiveness.

The minister also stated that the government is aware of possible new pressure from the US, citing as an example the US “aggressiveness” in cotton and soybean exports. “We have to be aware not only what happens in Brazil, but what goes on abroad, to accommodate the Brazilian productive sector and open new markets,” he said.

The announced plan includes the reinsegrade expansion to all companies exporting to the US, an extension for another year of Drawback regime, reduced interest lines and extended deadlines via Banco do Brasil and BNDES, Structural Reform of the Export Guarantee Fund (FGE), flexibility of government purchases and tax deferral, with priority for micro and small businesses and perishable products.