The Brazilian government has taken another step towards applying the Reciprocity Law against the US in response to the 50-percent tariff imposed by the US on Brazilian products.
Faced with this issue, the Foreign Trade Chamber (Camex) – a collegiate body comprising 10 ministries responsible for formulating, implementing, and coordinating foreign trade policies – was prompted to initiate a process that includes notifying the US of Brazil’s response to the tariff hike.
Approved by the National Congress and signed into law in April by President Lula, the law enables Brazil to respond to any unilateral measures adopted by other countries against Brazilian products.
It allows Brazil to take tariff countermeasures in situations such as the current one, in which the US surcharges imports, undermining the competitiveness of companies from other countries.
Help for negotiations
Before returning to Brazil after an official mission to Mexico, vice-President and Minister of Development, Industry, Trade, and Services Geraldo Alckmin announced the move and said the Reciprocity Law could help Brazil in its negotiations with the US.
“I hope this will even help us accelerate dialogue and negotiations. This is the position Brazil has always taken. We must remember that we have 201 years of partnership and friendship with the US and that we complement each other well economically,” he stated.
Steel and coal
He cited the steel sector as an example. “We are the third largest buyer of steelmaking coal from the US. We make semi-finished products and sell them to the US, which makes steel for automobiles, airplanes, and machinery. There’s complementarity, integration. That’s the logic of foreign trade,” he argued.
“The winner is society as a whole, with cheaper products that benefit society,” he added.
Source: Agência Brasil