Brazil urges U.S. to drop proposed 12.5% tariff
Mauro Vieira
Brenno Carvalho/Agência O Globo
President Luiz Inácio Lula da Silva’s administration filed on Monday (6) a response to the findings of an investigation conducted by the Office of the United States Trade Representative (USTR) under Section 301.
In the document, the Workers’ Party government asks the U.S. to drop its proposal to impose an additional 12.5% tariff on imports of several Brazilian products, arguing that the measure would cause unnecessary economic damage and that Brazil should not be targeted by any tariff of a “punitive nature.”
The 13-page document is signed by Foreign Minister Mauro Vieira. It says that refraining from imposing the tariff would preserve the spirit of cooperation that has characterized U.S. and Brazilian efforts on the matter.
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Throughout the document, the Brazilian government rebuts the USTR’s accusations and says the agency’s findings cannot be “arbitrary.” The U.S. justification for imposing the 12.5% tariff on Brazil is that the country, along with 59 others, failed to ban or monitor imports of goods produced with child or forced labor.
According to Vieira, tariffs on Brazilian products would not advance the goal of eradicating forced labor, would not make Brazil’s existing measures more effective, and would not encourage “additional reforms.” He also says the issues raised in the investigation would be better addressed through international cooperation and engagement rather than punitive trade measures.
Terrorism designation
In a separate effort to respond to U.S. accusations, Brazil’s Foreign Ministry sent a letter to the Lower House saying there is a possibility that the U.S. government could use military force in Brazil if the Comando Vermelho (CV) and Primeiro Comando da Capital (PCC) criminal groups are classified as foreign terrorist organizations.
The letter was sent on July 1 in response to a request for information from Congressman Evair Melo (Republicans Party). In it, Itamaraty, as Brazil’s Foreign Ministry is known, describes the U.S. move as “unilateral,” says the country was not formally notified of Washington’s intention, and warns that the measure could create an opening for the use of military force.
“The unilateral designation in question could be invoked as justification for extraterritorial actions against Brazilian institutions, particularly in the financial, migration, and criminal spheres. There is also a risk of U.S. military force being used against national territory,” says the text signed by Vieira.
The Brazilian government says it has repeatedly stated that such a designation would bring no concrete benefits to the fight against organized crime. Itamaraty says the measure could have significant consequences both economically and for national sovereignty.
The letter argues that the designation could be used by U.S. authorities to apply unilateral and extraterritorial administrative and judicial measures against Brazilian individuals, companies, or organizations. The Foreign Ministry also stresses that Brazil and the United States already have international cooperation mechanisms considered effective in fighting transnational criminal organizations.
Melo, who filed the request for information, said he considered Itamaraty’s answers “insufficient.” According to the congressman, Vieira did not say whether his assessments of the potential impacts were based on technical opinions, diplomatic notes, specialized studies, or other official documents.
