Lula sanctions reciprocity law, response from the congress against Trump’s tariff
President Luiz Inacio Lula da Silva sanctioned on Friday (11), without vetoes, the reciprocity law, which establishes criteria for Brazil to respond to unilateral measures adopted by countries or economic blocks that affect the country’s international competitiveness. The bill was approved last week by the Senate and House, as a response to the “tariff” of the President of the United States.
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The sanction was confirmed by the Secretariat of Social Communication (Secom) of the Presidency of the Republic, but the text of the law should only be published in the Federal Official Gazette (DOU) of Monday, 14.
The law establishes criteria for the Executive Power to suspend commercial concessions, investments and obligations regarding intellectual property rights.
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Such a suspension should take place in “response to unilateral actions, policies or practices of a country or economic bloc that negatively impact Brazilian international competitiveness”. This measure should be used exceptionally when other alternatives are considered inappropriate.
The text also provides that the contracted are, as far as possible, proportional to the economic impact caused by the actions of international countries or blocks. Diplomatic consultations will also be required to mitigate or nullify the effects of measures and contracted. In addition, public consultations are established for the statement of stakeholders.
On Friday, Finance Minister Fernando Haddad said in an interview with BandNews that President Lula adopted the “most sober position” in relation to tariffs, and stressed that Congress approved the reciprocity law very quickly to “signal to the United States that we cannot be treated as a second class partner.”
On Wednesday, 9, President Lula stated that Brazil will “give reciprocity”. Or we go to the World Trade Organization (WTO) to fight, where it is the right of us to fight, or we will give reciprocity. It is the least expected of a country that has dignity and sovereignty. ”Lula has made the statements in Tegucigalpa, Honduras, to journalists, amid the summit of Latin American and Caribbean community countries (Celac).
Vice President and Minister of Development, Industry, Commerce and Services (MDIC), Geraldo Alckmin, has been saying that the government does not intend to use this legislation at the moment and will insist on “dialogue and negotiation”.
