President Luiz Inácio Lula da Silva said in an interview with Record TV, that his administration will file an official complaint with the World Trade Organization (WTO) in an effort to reverse the 50 percent tariffs on commercial exports to the United States announced by Donald Trump. If the move is unsuccessful, however, Brazil will adopt proportional retaliatory measures, the president assured.
“Undoubtedly, our first step will be to seek negotiation. But if that fails, we will enforce the Reciprocity Law. If he imposes a 50 percent tariff on us, we will do the same,” the president said.
Lula intends for the WTO appeal to be coordinated with other countries affected by US tariffs.
“Within the WTO, you can find a group of countries that have been taxed by the US. There is a whole process that we can follow. If none of this works, we will have to apply the Reciprocity Law,” he added.
The Brazilian law cited by the president, enacted in April, establishes criteria for suspending trade concessions, investments, and obligations related to intellectual property rights in response to unilateral measures by a country or economic bloc that harm Brazil’s international competitiveness.
Support for companies
Lula stated that he will establish a committee, with the participation of exporters to the US, to assess the new trade scenario with the United States.
“I am not referring to a crisis cabinet, but to a cabinet to rethink Brazil’s trade policy with the US,” he noted.
The president promised to support the business sector and work to ensure that Brazilian products no longer sold to the US are purchased by other countries.
“We will have to protect [the productive sector]; we will have to look for other partners to buy our products. Brazil’s trade with the US represents 1.7 percent of GDP. It’s not that we can’t survive without the US. Obviously, we want to sell,” the Brazilian president pointed out.
Respect and sovereignty
In an excerpt from the interview published on his social media accounts, Lula again demanded respect from Trump and criticized the manner in which the letter was released—even before it officially reached its recipient.
“Brazil is a country that has no disputes with anyone. Here, everything is resolved through conversation. I thought President Trump’s letter was apocryphal. It is not customary to send correspondence to another head of state through the website of a country’s president,” he criticized.
Lula recalled the bicentennial diplomatic relationship between Brazil and the US and pointed out that he has maintained good relations with all the US leaders he has interacted with over the past two decades.
“Brazil has had a 201-year relationship with the United States—a virtuous diplomatic relationship that benefits both sides. I got along well with all the presidents: Clinton, Bush, Obama, and Biden. Brazil is a country of dialogue,” Lula stated.
Bolsonaro
Regarding Trump’s demand to prevent former President Jair Bolsonaro from being tried for the crime of attempted coup d’état, Lula said that the Brazilian judiciary is independent.
“I don’t interfere with the judiciary because the judiciary here is autonomous,” he said.
“What he can’t do is think that he was elected to be the world’s sheriff. He can do whatever he wants within the US, but here in Brazil, we Brazilians are in charge,” the president continued.
Lula also blamed Bolsonaro for the penalties imposed on Brazilian trade: “The former president should take responsibility because he agreed with Trump’s tariffs on Brazil. In fact, it was his son who went there to convince Trump.”
The president was referring to federal representative on temporary leave Eduardo Bolsonaro (Liberal Party–São Paulo), the former president’s son, who is currently living in the United States.
Source: Agência Brasil