Luiz Lara calls for advertising that reconnects with people

In “A alma brasileira do negócio”, the TBWA chairman revisits the history of advertising and urges the industry to reclaim purpose, ethics, and humanity amid the dominance of algorithms

 

 

 

10/14/2025 

At a time when marketing seeks to reconnect with purpose and humanity, Luiz Lara, chairman of TBWA Brazil, has released “A alma brasileira do negócio” (“The Brazilian Soul of Business,” Matrix Editora), written in collaboration with journalist Thales Guaracy. The book serves as both a portrait of the golden age of Brazilian advertising and an essay on the future of an industry that, as he puts it, “has lost some of its emotion by submitting to the cold logic of algorithms.”

“My therapist told me it might be time to write—to write everything,” says Mr. Lara. “And I realized that was it—it wasn’t an ego trip; it was a way to make peace with my story,” he says.

What began as a therapeutic exercise, a way to mourn the loss of three close friends—including his former partner Jaques Lewkowicz—became a reflection on the meaning of communication in a rapidly changing world. Mr. Lara also wanted, in a symbolic way, to let his “children” fly: Lew’Lara\TBWA and ID\TBWA, now led by Marcia Esteves and Camila Costa, respectively.

More than an autobiography, “A alma brasileira do negócio” offers an emotional and critical perspective on advertising, told by someone who lived through a time when “advertising was driven by dreams, courage, and optimism.” Born from grief, the book celebrates the people, ideas, and brands that helped shape Brazil’s imagination.

Mr. Lara revisits a period when advertisers became part of the country’s cultural fabric—when advertising taught Brazilians to brush their teeth, dream of owning their first car, and believe in the future. “It was a Brazil that believed it could succeed, and advertising was a way of teaching that,” he says.

Yet nostalgia soon gives way to challenge. In his view, the industry has lost part of its soul by becoming captive to metrics, performance, and hollow rhetoric. “Brands still need to move people. Only the language has changed,” says Mr. Lara.

He also calls for more authentically Brazilian advertising—work that reflects the country’s character and creativity. “It can’t be done just in front of a computer, copying dull references from abroad,” he argues, underscoring the “Brazilian soul” invoked in the book’s title.

A lawyer by training, Mr. Lara became captivated by communication in the 1980s, inspired by figures such as Alex Periscinotto and João Doria. In 1992, he founded Lew’Lara with Jaques Lewkowicz, then an experienced creative professional who had worked at agencies such as Salles and Ogilvy. What began as a small agency soon grew into a powerhouse, eventually becoming the second-largest in Brazil.

In its early days, Lew’Lara’s clients were still considered modest, including brands such as Schin, Banco Real, Natura, and Minuano. The Talentos da Maturidade (Talents of Maturity) campaign, created for Banco Real in 1999, was among the first in Brazil to portray longevity in a positive light. Young, entrepreneurial, and somewhat of an outsider—“I wasn’t a prince, like Washington Olivetto,” he says in the book—Mr. Lara demonstrated exceptional talent for building relationships.

“Advertising is people,” he often repeats. The book is filled with characters, stories, and encounters that reveal the human side of the industry’s backstage.

In 2007, the sale of Lew’Lara to the TBWA group brought him the recognition he had long pursued—but also an unexpected sense of emptiness. “That was the moment I understood that success has a price,” he admits. In the book, he recounts the frustration of parting with brands he had helped build to integrate them into the network’s global portfolio.

“Telling Carlucci from Natura—Alessandro Carlucci, Natura’s former CEO—‘I can’t serve you anymore’ was like ending a marriage,” he recalls. “The relationship wasn’t commercial; it was emotional. It was an exchange of trust.”

After joining TBWA, the agency expanded its portfolio to include brands such as Visa, Absolut, Nivea, Nissan, and Friboi. Lew’Lara pioneered the transformation of a product that had long been treated as a commodity—meat—into a brand of value and desire. Its landmark campaign for Friboi (JBS), featuring actor Tony Ramos and later singer Roberto Carlos, redefined the category.

“Friboi was a game changer,” says Mr. Lara. “We were able to show that Brazilians were proud of what they put on the table. It was the first time meat gained identity, voice, and purpose in communication.”

The strategy repositioned the country’s entire meat sector, paving the way for new brands to emerge and reshaping how Brazilians consume and perceive quality.

The book also serves as a reckoning with the present. Mr. Lara reflects on the need to restore the true meaning of communication in an environment increasingly dominated by technology and performance.

“Brazilian advertising has always been recognized for its creativity and emotion. Today, we need the courage to move people again,” he says.

Weaving memories with reflection, the author explores themes such as ethics, purpose, and legacy. In his view, the future of brands depends on embracing a new logic of impact—one that Lew’Lara had already begun to champion in its early campaigns for clients like Natura and Banco Real.

“Companies can’t just be good. They need to do well, with method and measurement. Profit is important, but impact is what will ensure relevance,” he says.

Restless and still a self-proclaimed workaholic, Mr. Lara divides his time between his activities within the TBWA group, chairing the Cenp (Advertising Market Self-Regulation Forum) Council and the ESPM General Assembly, and running his advocacy and communication consultancy, To Be Good, which currently serves three clients.

When speaking about purpose, he avoids any hint of a messianic tone. “It’s not about being nice; it’s about doing good in a structured way. Brands need to understand the impact they generate—economic, social, and symbolic,” he concludes.

Written in just three months, the book emerged from long, candid conversations between Mr. Lara and journalist Thales Guaracy. “Even if no one reads it, I’ll be happy,” he says, with the calm of someone who writes not to persuade, but to understand.

*By Claudia Penteado — São Paulo

Source: Valor International

https://valorinternational.globo.com/

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Environmental agenda stalls in Congress

While green laws lose momentum, lawmakers focus on pushing at least 50 bills deemeed potentially harmful to society and nature

 

 

 

10/14/2025 

Less than a month before the United Nations Climate Change Conference (COP30) in Belém, Brazil’s environmental agenda in Congress shows little progress. In contrast, according to the Observatório do Clima, 50 bills with high potential for social and environmental harm are currently moving forward. Among the main concerns is this week’s scheduled review of presidential vetoes to the environmental licensing bill, which environmentalists see as a troubling sign just as the country prepares to host the pre-COP30 meeting.

The leadership of both the Chamber of Deputies and the Senate declined to comment. Behind the scenes, however, lawmakers say the polarized political climate has made it difficult to advance a constructive legislative agenda.

According to Nilto Tatto (Workers’ Party, PT, São Paulo), coordinator of the Joint Parliamentary Front for the Environment, there is a disconnect between the urgency of the climate crisis and Congress’s actions.

“While the government works to show results in reducing deforestation and seeks international financial support, Congress moves in the opposite direction, prioritizing regulatory rollbacks such as relaxed licensing and land regularization,” Mr. Tatto said.

For Suely Araújo, policy coordinator at the Observatório do Clima, the vote on the licensing vetoes—scheduled for Thursday (16)—is particularly worrisome.

“The farm caucus is expected to fight for the vetoes’ overturn. Another red flag is the Foreign Affairs Committee’s rejection of the Escazú Agreement,” she noted. Signed in New York in 2018, the Escazú Agreement is the first environmental treaty in Latin America and the Caribbean to guarantee access to information, justice, and protection for environmental defenders. Although Brazil signed it, congressional ratification is still pending.

The bill’s rapporteur, Congressman Evair Vieira de Melo (Progressives Party, PP, Espírito Santo), recommended rejecting the treaty, citing “practical implications and potential risks to national sovereignty and Brazil’s economic interests.”

“It’s extremely rare for Congress to reject an international agreement,” Mr. Araújo explained. “It reflects pressure from the ruralist bloc, criticism of environmental regulation, and fears about transparency—for instance, concerns that rural property data could become publicly available.”

Environmentalists are prioritizing the preservation of the presidential vetoes this week, though the likelihood of their being overturned is high. “If Congress overturns them, the only recourse will be to challenge the law before the Supreme Court through a direct action of unconstitutionality,” said Mr. Araújo.

Mr. Tatto attributes the lack of progress to the influence of the ruralist bloc—aligned with conservatives and the political center—and to polarization ahead of the municipal elections. “Today’s Congress is out of sync with the climate crisis,” he argued.

He noted that 2024 saw some positive developments, including the regulation of carbon markets, biofuels, and energy transition, often with support from agribusiness lawmakers.

“This year, however, there’s no long-term perspective—only short-term political interests. That endangers not just sustainability but also agriculture itself, which will suffer from climate impacts,” Mr. Tatto warned.

The environmental caucus believes that the anti-environmental agenda harms Brazil’s international image. “Congress undermines Brazil’s climate diplomacy. International observers interpret our votes as the country’s position, regardless of the government’s efforts in multilateral negotiations. It leaves us in a contradictory position as COP host,” Mr. Tatto said.

In March, Environment Minister Marina Silva met with 30 lawmakers to align a legislative strategy for COP30, but little progress has been made. According to ministry sources, efforts have focused on defending the environmental licensing framework from setbacks, leaving “little room” for advancing new positive initiatives.

Mr. Tatto said he plans to ask Chamber President Hugo Motta (Republicans of Paraíba) to bring at least a few pro-environment bills to the floor before the summit.

The 2025 Legislative Agenda, published by the Observatório do Clima and backed by 22 environmental organizations, identifies a “destruction package” of bills that could severely harm ecosystems, traditional peoples’ rights, and Brazil’s climate targets. These include measures that weaken licensing and land laws, alter the Forest Code and the Atlantic Forest Law, and even allow privatization of coastal zones.

On the positive side, environmentalists hope to advance proposals such as the Law of the Sea (creating a national marine conservation policy), the Circular Economy Bill (setting plastic reduction and recycling targets while compensating waste pickers), and the National Policy for Biodiversity Economy (PNDEB).

Other key proposals include a constitutional amendment recognizing climate security as a fundamental right, tougher penalties for environmental crimes, and the Agenda 2030 Bill, which aligns national policy with the UN’s Sustainable Development Goals (SDGs).

“It’s important for Congress to send a signal before COP30,” Mr. Tatto emphasized. “We’ll work to move at least part of this agenda forward. Right now, Parliament is disconnected from the climate crisis—and from the government’s own, albeit imperfect, efforts to confront it.”

*By Beatriz Roscoe — Brasília

Source: Valor International

https://valorinternational.globo.com/

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Gol to delist in Brazil as Abra Group readies overseas IPO

Move follows holding company’s increase of its stake in the airline to over 80% during U.S. bankruptcy proceedings

 

 

 

10/14/2025 

Gol to become privately held as part of Abra Group’s restructuring plan
Gol to become privately held as part of Abra Group’s restructuring plan — Photo: Divulgação

Gol announced on Monday night (13) a corporate restructuring that will result in the airline’s delisting from Brazil’s stock exchange B3.

The move had been widely expected since the creation of holding company Abra Group in 2022 and aligns with plans for a future international listing, although no date has been set. Abra also controls Colombian carrier Avianca. Following Gol’s Chapter 11 bankruptcy filing in the United States, Abra increased its stake in the airline from around 52% to more than 80%.

The group has now proposed a structure designed to minimize further dilution of minority shareholders, aiming to avoid a repeat of past tensions. In 2021, Gol clashed with minority shareholders during the delisting of its Smiles loyalty program.

“The merger aims to reorganize the company’s operations, seek synergies, and reduce costs. Implementation of the transaction remains subject to corporate approvals, including from general meetings of the company, as well as third-party consents,” Gol said in a regulatory filing.

The transaction will be carried out through the merger of Gol and Gol Investment Brasil (GIB) into Gol Linhas Aéreas (GLA), a privately held company. Once completed, both GIB and Gol will cease to exist.

Each Gol shareholder will receive one GLA common share for each common share owned and 35 GLA common shares for each preferred share owned.

“In line with the Guidance Opinion No. 35 from CVM [Brazil’s Securities and Exchange Commission], the board of directors approved the formation of an independent committee, made up exclusively of independent board members, to negotiate the terms and conditions of the merger and the resulting share swap,” the airline said.

Gol has called an extraordinary general meeting and a preferred shareholders’ meeting for November 4 to vote on the merger.

Investors will be given the option to exit through a tender offer or remain shareholders in the group, which will become a privately held company under Abra’s control. The process is expected to be completed by February 2026.

Following the Chapter 11 process, shareholder dilution was substantial, while Abra’s control expanded. Gol’s preferred shares now have a free float of just 0.78%.

Abra declined to comment before publication.

Gol’s next moves are likely to face scrutiny from minority shareholders, with whom the company has had a contentious history.

In 2021, the company faced resistance from Smiles’ minority shareholders during the delisting of the loyalty program, which had become an independent company in 2013.

Between 2018 and 2021, Gol fought to regain control of the program, and company executives even clashed with analysts during conference calls on the subject.

Abra eyes IPO

The decision to absorb Gol into a private company clears a path for Abra’s long-awaited initial public offering, a key goal since the holding company was created. However, sources say the IPO window remains narrow. In 2024, Abra said it was also considering taking Avianca public, while the holding’s own IPO has yet to gain momentum in the market.

Founded in 2022 to support regional airline consolidation, Abra currently includes Gol, Avianca, aircraft leasing firm Wamos Air, and NG Servicios Aéreos, a charter airline. The group also holds debt from Chilean airline Sky that can be converted into equity.

On Monday, Abra requested authorization from Chile’s civil aviation authority (DGAC) to obtain an Air Operator Certificate (AOC) for NG, which is already registered in Chile.

End of merger talks with Azul

Gol’s restructuring comes less than a month after Abra formally notified Brazilian airline Azul that it was ending merger talks between the two carriers.

Gol also terminated its codeshare agreement with Azul, effectively avoiding potential scrutiny from Brazil’s antitrust regulator, CADE.

As reported by Valor, the talks were shelved after Abra was caught off guard by a statement from Azul’s head of institutional relations, Camilo Coelho, who told lawmakers during a congressional hearing that the discussions were “in the past.”

In previous years, merger talks between Azul and Gol had been tied to Abra’s broader strategy of building a strong regional holding company to compete with market leader Latam.

As Valor recently reported, Abra still sees consolidation as one of its main growth strategies. Sources say the group views acquisitions and mergers not just as opportunities, but as necessities in today’s airline industry, where other parts of the supply chain, such as aircraft and engine manufacturers, are already heavily consolidated.

*By Cristian Favaro, Valor — São Paulo

Source: Valor International

https://valorinternational.globo.com/

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Failures in adopting no-till farming increase herbicide use in Brazil

A mainstay of sustainable practices, the system affects weed control when producers neglect other soil care practices, according to a study

 

 

 

 

10/13/2025

The incomplete adoption of no-till farming, a planting system that reduces the impact of agriculture on soil health, increases Brazilian soybean producers’ costs with herbicides. This is the conclusion of the study “Brazil as a world leader in soybean production: until when and at what cost?”, conducted by the Escolhas Institute.

According to the study, between 1993 and 2023, soybean farming area grew 317% in the country, while the estimated use of synthetic herbicides increased 2,019%, to 195,000 tonnes. In 1993, for every kilogram of herbicide used by farmers, 23 bags of soybeans were harvested. Now, the harvest averages seven bags.

Juliana Luiz, research manager at the Escolhas Institute and one of the study’s coordinators, says the reason for increased herbicide use is the widespread adoption of no-till farming without complementary soil conservation practices.

No-till farming is based on three procedures: not turning the soil, maintaining permanent soil cover (with either plants or crop residues), and diversifying crops. “No-till farming is a very important revolutionary practice that prevents erosion and increases water and nutrient absorption. The problem is its adoption without integrated management,” says Ms. Luiz.

For the study, the authors used public data from the Brazilian Institute of Geography and Statistics (IBGE) on production, from the Ministry of Agriculture on the use of synthetic pesticides, and statistics from the Brazilian Federation of the No-Tillage System. The researchers visited and interviewed 34 farmers from Mato Grosso, Goiás, and Paraná, who cultivate a total of 88,100 hectares, to investigate their production practices. Escolhas analyzed 45 soil conservation and regeneration practices.

The producers were divided into conventional producers who adopt fewer of these practices; regenerative producers who used more practices; and farmers who use organic farming, a method that prohibits using synthetic herbicides and disturbing the soil, which precludes direct planting. According to the study, conventional producers adopt no-tillage systems, but only 31% use crop rotation, 15% use mulch, 15% use green manure, and 31% use organic manure.

When farmers don’t adopt complementary measures, Ms. Luiz says, no-till farming makes it difficult to combat weeds, requiring more herbicide applications. “With incomplete management, pesticide use needs to be increased.” She adds that producers use crop succession—soybean and corn, soybean and cotton—but not rotation, which involves greater crop diversity in the same harvest.

Henrique Debiasi, who researches soil management at Embrapa Soja, says that no-till farming is used on 33 million hectares in Brazil, but, according to him, there are no official statistics on the system’s full adoption. “No-till farming itself is widely adopted, with minimal soil disturbance. But permanent soil cover and crop diversification have low adoption,” he explains.

Mr. Debiasi says that not disturbing the soil already helps reduce erosion and increase productivity. Studies by Embrapa Soja show that no-till farming increases soybean productivity by 30% to 40% compared with conventional tillage. “But with the full no-tillage system, productivity increases by 50% to 60%,” says Mr. Debiasi.

The full system requires more preparation time, but producers are gradually increasing their adoption of these management techniques, according to Mr. Debiasi. “Soil cover has low adoption, but the biggest problem is the lack of diversification in the production system. We practice direct seeding, but not no-tillage,” he says.

Croplife Brasil, an association representing the pesticide industry, told Valor that it had not had access to the study and therefore would not comment on it. The association noted that the no-tillage system is a global benchmark in sustainable intensification.

“In tropical conditions, where straw decomposition is up to ten times faster than in temperate regions, the rational use of herbicides [is] a conservation tool, not a sign of dependence. [Without] chemical control, the no-tillage system would cease to exist, and so would the progress achieved,” Croplife said in a statement.

Croplife added that, according to the UN Food and Agriculture Organization (FAO), in 2021, Brazil ranked 41st in the global ranking for pesticide use per hectare—about half that seen in smaller markets. “This result shows that Brazilian proportional use is moderate and consistent with that of the world’s leading agricultural powers, contradicting the recurring perception of excessive use,” the association said.

*By Cibelle Bouças, Globo Rural — Belo Horizonte

Source: Valor International

https://valorinternational.globo.com/

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Lula seeks U.S. rapprochement ahead of 2026 election

Brazil aims to enter next year without new sanctions and, if possible, with softer stance from Trump

 

 

 

10/13/2025

The Lula administration will kick off trade negotiations with the United States this week, keeping a close eye on Brazil’s electoral calendar. According to sources in the presidential palace, one of the government’s main goals is to reach 2026 without new sanctions on Brazilian products or institutions—and ideally, with some degree of goodwill or retreat from U.S. President Donald Trump following recent signs of rapprochement between the two leaders.

The strategy assumes that the fewer sanctions the United States imposes on Brazil, the fewer doubts there will be internationally about the legitimacy of Brazil’s upcoming elections.

Advisers close to Mr. Lula say the move is partly motivated by concerns that Jair Bolsonaro’s political movement aims to push Mr. Trump to reject the results of Brazil’s 2026 election—an outcome that could weaken the country’s democracy in the eyes of the world. Congressman Eduardo Bolsonaro (PL of São Paulo), the former president’s son, publicly acknowledged this possibility months ago.

“I can easily foresee the United States not recognizing a Brazilian election. That would make Brazil, the entire country, subject to international sanctions. And when the U.S. imposes such sanctions, they’re often followed by the European Union, Canada, and others. I hope that doesn’t happen,” said Eduardo in March.

Until recently, officials in Brasília were convinced that Mr. Trump would use his political leverage to undermine Mr. Lula’s reelection bid. Now, however, they believe the government has managed to shift the dynamic and must handle ongoing talks “with caution” to preserve the positive momentum in bilateral relations through next year.

The diplomatic effort is being coordinated by Foreign Minister Mauro Vieira, Finance Minister Fernando Haddad, and Vice President Geraldo Alckmin. Mr. Vieira is expected to meet personally with U.S. Secretary of State Marco Rubio in the coming days. Mr. Haddad was also scheduled to travel to Washington but canceled the trip to focus on alternatives to a provisional presidential decree overturned last week—an event that removed more than R$40 billion from next year’s federal budget.

For now, the presidential palace is focused on damage control. Officials are wary of Mr. Trump’s unpredictable behavior, given his sudden policy shifts in cases such as the Russia-Ukraine conflict. “There’s no guarantee,” said one government insider, “that the U.S. president will maintain his friendly tone toward Brazil through the election period.”

Meanwhile, little has changed in practical terms: Brazilian goods remain subject to 50% tariffs, and national institutions continue to face sanctions under the Magnitsky Act.

“At this point, the Lula administration is celebrating the fact that it received a positive initial response, even though no concrete discussion of sanctions or concessions has taken place. We must remember that trade relations with the United States remain very poor,” said Benny Spiewak, an international law expert with a master’s degree from George Washington University and partner at SPLAW Advogados. “If the election were held tomorrow, the tone of the U.S. statement would clearly be critical of Lula’s potential reelection,” Mt. Spiewak added. “The Itamaraty [Brazil’s Foreign Ministry] will have to work hard to resolve—or at least give the impression it is resolving—these issues before then.”

Other analysts share this view. “Entering 2026 without any political or economic sanctions from the United States will depend on how pragmatically the Lula administration handles foreign policy,” said Carla Junqueira, an international trade lawyer at CJA Trade Law. “The Brazilian government must act cautiously, negotiating potential reversals while showing voters that it is defending national sovereignty against external pressure. That would reduce the risk of foreign questioning of the election’s legitimacy.”

*By Renan Truffi and Sofia Aguiar — Brasília

Source: Valor International

https://valorinternational.globo.com/

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Brazil redirects tariffed goods to other markets, lifts sales

Higher coffee and beef prices help offset losses from Trump’s tariff hike

 

 

 

 

10/13/2025 

By redirecting shipments in August and September, Brazil managed to offset the drop in export revenue for major products hit by U.S. President Donald Trump’s new tariffs. Of the 20 most-exported Brazilian goods affected by the tariff hike in those two months, nine saw a decline in sales to the United States but either increased exports to the rest of the world or saw smaller declines compared to the same period in 2024.

Although exports of those nine products to the U.S. fell by $375.5 million, shipments to other countries rose by a combined $1.25 billion in August and September compared to the same months last year.

This rebound was driven primarily by shipments of unroasted coffee and frozen boneless beef to alternative markets. Export revenues also benefited from higher prices for both products.

Foreign Trade Secretariat (SECEX) data show that coffee exports were redirected mainly to European countries such as Germany and the Netherlands, as well as Japan. Beef exports increased sharply to China and the Philippines.

Exports of both products also surged to Mexico, a U.S. neighbor that could be serving as a gateway to the American market. In August and September, Brazil’s frozen beef exports to Mexico nearly quadrupled (up 292.6%), while coffee exports rose 90% compared to the same months of 2024.

The analysis of the 20 top export products was conducted by Lia Valls, an economist and professor at Rio de Janeiro State University (UERJ) and a researcher at the Brazilian Institute of Economics at Fundação Getulio Vargas (FGV IBRE), in collaboration with Valor, using SECEX data. The list includes items affected by both Mr. Trump’s 50% tariff and Section 232 tariffs, which target steel and aluminum, based on research by the Institute for Industrial Development Studies (IEDI).

These 20 products accounted for 29.3% of all Brazilian exports to the U.S. in August and September, including those not subject to the new tariffs.

Varying impacts

Ms. Valls noted that the tariff hike had a wide range of effects on different goods. “The data show a reconfiguration of markets, but some products are still facing more complex situations,” she said.

Among the 20 main products hit by the tariffs, Brazil increased exports of six to the U.S., though at a slower pace than to other markets. For the remaining five, exports to the U.S. rose while shipments to other countries grew less or fell. As a result, the U.S. share of Brazil’s exports of these 20 products dropped from 28% in August and September 2024 to 21.4% this year.

The U.S. share of Brazil’s overall exports also fell, from 11.6% to 9% in the same comparison.

However, not all redirected exports were able to fully recover lost revenue, said Rafael Cagnin, chief economist at IEDI. He pointed to one of the most important items affected by the tariffs: semi-manufactured iron or steel products. Shipments of these items to the U.S. totaled $360.5 million in August and September, down 19.4% from a year earlier, a $86.7 million drop in revenue.

Meanwhile, exports of the same items to other countries rose 36%, totaling $127.2 million—a $31.5 million increase that was not enough to offset the losses in the U.S. market.

Revenue gains were also only partial for other major export categories to the U.S., such as prepared foods and preserved beef, and electric transformers.

Coffee and beef lead gains

Among the 20 products analyzed, unroasted coffee and frozen boneless beef stood out for more than offsetting the drop in U.S. exports.

Brazil’s frozen boneless beef exports to the U.S. fell 58%, a $90.9 million loss in revenue. But shipments to other countries soared 70% in the period, generating an additional $1.16 billion.

Unroasted coffee exports to the U.S. dropped 11.3%, or $27.52 million, while exports to other countries rose 9.1%, generating an additional $155.3 million in revenue. The comparisons cover August and September of 2025 versus the same months in 2024.

Coffee and beef are among Brazil’s key exports to the U.S., but they were less affected by the tariff hike, said Mr. Cagnin. “That’s because these products are not heavily dependent on the U.S. market, making it easier to redirect shipments and still exceed what was needed to make up for the losses,” he said. “And both products are benefiting from favorable pricing trends—coffee prices are rising, and so are beef prices.” That, he added, gives exporters more leverage in price negotiations even as they adjust their destinations.

China stood out as the top alternative market for frozen beef. After the tariffs were imposed, the U.S. share of Brazil’s beef exports dropped from 8.6% in August–September 2024 to 2.3% in the same months of 2025. China’s share rose from 58.8% to 67.2%, with a sales increase of 81.8%. Exports to Mexico grew even more—up 292.7%—though from a smaller base. Mexico’s share rose from 1.5% to 3.6%.

“Exporters are exploring new markets beyond the U.S., and China is capitalizing on this,” said José Augusto de Castro, president of Brazil’s Foreign Trade Association (AEB). “While Brazil looks to diversify its exports due to the tariff hike, China is expanding its share of global imports. We’re hitting export records for meat, and China is taking that in, just as it did with soybeans in the past.”

Rising China dependence

Mr. Cagnin warned that increasing dependence on China, especially for meat exports, is a concern. “Brazil is already highly reliant on the Chinese market when you look at overall exports,” he said.

He also pointed to products that saw export declines both to the U.S. and to other countries, including diesel engine parts, plywood from other wood types, and alternative cane and beet sugars.

“These trends highlight the need to reduce dependency on the U.S. and expand to new markets, such as the European Union and South America,” he said. “The deeper shift brought by the tariff hike is that the U.S. can no longer be seen as a reliable partner.”

Interestingly, some tariffed products still saw growth in U.S. exports. Ms. Valls highlighted rubber tires used in buses and trucks, which surged 417.3%. Exports of bulldozers and angledozers rose 66.2% and 707%, respectively.

For Mr. Castro, this could be due to Brazil’s role in supply chains or intra-company trade. Ms. Valls added that some items were listed under specific codes in the U.S. exemption decree, which may allow room for classification debates and open up opportunities to continue exporting those products.

*By Marta Watanabe — São Paulo

Source: Valor International

https://valorinternational.globo.com

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Jurists expect a younger replacement for Justice Barroso

Justice’s early retirement gives President Lula another opportunity to appoint an ally to Brazil’s Supreme Court

 

 

 

10/10/2025

The three frontrunners to succeed Justice Luís Roberto Barroso on Brazil’s Supreme Court—Bruno Dantas, minister at the Federal Court of Accounts (TCU); Attorney General Jorge Messias; and Senator Rodrigo Pacheco (Social Democratic Party, PSD, of Minas Gerais)—are all considered well qualified for the position, according to jurists and lawyers interviewed by Valor. Mr. Barroso announced on Thursday (9) that he will leave the court after 12 years.

Constitutional law professor and attorney Lênio Streck said Mr. Barroso’s retirement opens the way for President Lula to nominate someone who could remain on the court for roughly two decades. “One key factor is appointing someone younger, and that’s exactly what Lula will do—I have no doubt. The president will choose a highly aligned, organic candidate,” Mr. Streck said, pointing to Mr. Messias as the favorite.

According to Mr. Streck, naming either Mr. Pacheco or Mr. Dantas would steer the choice toward a more political discussion, something the government is likely to avoid.

For Roberto Dias, a professor of law at FGV Direito SP, the ideal profile to replace Mr. Barroso would resemble that of current Chief Justice Edson Fachin: “A justice who speaks primarily through court opinions, avoids political circles, and reinforces the perception of impartiality at the Supreme Court, especially at a time when the court continues to face fierce criticism.”

Mr. Dias noted that while the leading contenders meet constitutional requirements of “impeccable reputation and distinguished legal expertise,” they are closely tied to politics. He argued that Mr. Lula should instead consider appointing a woman, preferably a Black woman, to promote greater representation on the court.

“In the Supreme Court’s composition, people with diverse perspectives are essential to forming more consistent decisions that reflect the diversity and pluralism enshrined in the Federal Constitution,” he said.

Criminal law expert and PUC-SP professor Conrado Gontijo agreed that Mr. Messias, Mr. Pacheco, and Mr. Dantas possess undeniable legal credentials, having held important positions throughout their careers.

Mr. Gontijo said Mr. Barroso played a central role in key democratic debates during his tenure at the Supreme Court, fulfilling with “absolute rigor” the constitutional mission entrusted to the court’s justices. During Mr. Barroso’s tenure as chief justice, he added, the court faced enormous and unprecedented challenges, including “serious and unfounded attacks.” “His unwavering defense of the Constitution and all it represents was vital to preserving Brazil’s institutional framework,” Mr. Gontijo said.

Attorney Antônio Carlos de Almeida Castro, known as Kakay, praised Mr. Barroso’s performance as both justice and president of the Supreme Court, as well as his leadership of the Superior Electoral Court (TSE). “The open confrontation initiated by [then-President] Bolsonaro, who insulted and vilified him, shows that Barroso was on the right side and that he clearly unsettled the far-right faction in power at the time,” Mr. Castro said.

Mr. Streck divided Mr. Barroso’s Supreme Court stint into two distinct phases. In the first, the justice supported Car Wash Operation, the now questioned anti-corruption task force, adopting a more “punitive” stance. In the second, particularly over the past two years, during his presidency, Mr. Barroso became a key defender of democracy as the Supreme Court came under attack from the Bolsonarist movement.

Throughout his tenure, Mr. Streck emphasized, Mr. Barroso consistently acted in defense of the Constitution and individual rights. He cast votes advancing social rights for minorities, Indigenous peoples, racial quotas, and same-sex marriage, even while maintaining a more liberal stance on labor reform.

“This duality defined Mr. Barroso’s legacy on the court, as a justice who, while once punitive in criminal matters, will be remembered for his steadfast defense of minorities and fundamental rights,” Mr. Streck concluded.

*By Rafael Rosas and Jessica Alexandra — Rio de Janeiro

Source: Valor International

https://valorinternational.globo.com/

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Payment of Dividends: Changes in Taxation.

Payment of Dividends: Changes in Taxation.

 

By Edmo Colnaghi Neves (PhD).

 

The taxation of dividend payments is about to change. Currently, dividend distributions are exempt from income tax; however, earlier this month (October 2025), the Brazilian House of Representatives approved a bill that introduces taxation on such payments.

This change may significantly impact foreign capital invested in Brazil.

Brazil adopts a bicameral legislative system; therefore, the bill must also be approved by the Federal Senate.

Under the constitutional principle of anterioridade (non-retroactivity and prior notice of tax laws), in order for the new rules to take effect in 2026, the bill must be approved by both Houses of Congress and sanctioned by the President of the Republic by December 31, 2025.

The proposed legislation is part of the same bill that establishes income tax exemption for individuals earning up to BRL 5,000.00 per month, among several other measures, and has therefore drawn the attention of the entire nation at the close of this year.

According to the bill, as of 2026, dividend payments made by the same legal entity to the same individual in any given month exceeding BRL 50,000.00 will be subject to a 10% withholding tax at source. The tax will also apply when the total annual amount of such income — including dividends, interest, and rental income — exceeds BRL 600,000.00.

This represents a major shift in the Brazilian tax framework, which is expected to be approved by Congress and to take effect as of 2026. It will require affected parties to gain an in-depth understanding of the proposed changes, consider alternative provisions of the bill, and engage in careful tax, corporate, and estate planning.

October 2025

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Federal Police say methanol crisis could be linked to fuel fraud

Director-General Andrei Rodrigues says probe entered phase of interagency cooperation with state forensic units

 

 

10/09/2025 

The director-general of Brazil’s Federal Police, Andrei Rodrigues, said on Wednesday (8) that the ongoing investigation into the contamination of alcoholic beverages with methanol may be connected to a major fuel fraud uncovered recently by the Federal Police.

“There is a possible connection with the previous operation on fuel adulteration, especially since the methanol’s port of entry was Paranaguá. It probably involved some criminal organization,” Mr. Rodrigues told reporters at the Ministry of Justice and Public Security headquarters.

He added that the investigation is now in a “phase of cooperation,” particularly in the forensic area, through a national integrated system that brings together Federal Police experts and state forensic police.

“We are combining efforts to gain access to materials seized by other police agencies, as well as to our own seizures, so that everything can be sent for forensic analysis,” he explained.

On September 29, the Federal Police started investigating a series of methanol poisoning cases in São Paulo. The move followed suspicions that the incidents could be linked to organized crime groups and to the recent fuel fraud probes.

The investigation was launched at the request of Justice and Public Security Minister Ricardo Lewandowski, who said Tuesday (7) that the Federal Police joined the case because authorities cannot rule out the possibility that the contamination represents a “national problem.”

According to the minister, the suspected criminal involvement may not necessarily involve the country’s well-known prison factions, but rather an organization operating specifically in the illicit alcohol production and beverage falsification trades.

*By Maira Escardovelli — Brasília

Source: Valor International

https://valorinternational.globo.com/

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Congress kills financial tax bill amid early 2026 election clash

Government accuses São Paulo governor of pushing centrist parties to block measure; lawmakers remove it from agenda

 

 

 

10/09/2025

Just a week after a major win with the approval of the income tax reform, the Brazilian government suffered a significant setback in Congress on Wednesday (9) as lawmakers rejected a provisional presidential decree that sought to tax financial investments and tighten spending.

Throughout the day, leaders from the powerful centrist bloc known as the Centrão—including state governors—mobilized to rally opposition to the bill, which the government had expected would raise R$31.5 billion in revenue and generate R$15 billion in savings by 2026. The presidential palace attempted to mount a response but was ultimately defeated in an unusual manner.

The measure was effectively shelved when the Lower House passed, by 251 votes to 193, a motion to remove the bill from the agenda. This type of procedural motion is voted on before discussion of the bill’s content and, if approved, delays the vote. Because the provisional decree was set to expire on Wednesday, it was permanently dropped.

President Luiz Inácio Lula da Silva reacted on social media, arguing that the measure aimed to correct tax distortions. “Blocking this correction is a vote against balanced public finances and tax fairness. What’s behind this decision is a bet that Brazil will collect less revenue to restrict public policies and social programs that benefit millions. It’s a move against Brazil,” he wrote.

The likelihood of defeat had become clearer the day before, when Congressman Carlos Zarattini of the Workers’ Party (São Paulo) struggled to get his report approved by a joint congressional committee. After intense negotiations and revisions, which cost the government an estimated R$3 billion in revenue, the report was approved by just one vote. Citing the razor-thin result, Mr. Zarattini accused centrist parties of breaking a deal, singling out the Republicans, Brazil Union, the Progressive Party (PP), and the agribusiness caucus for voting against the bill.

House Speaker Hugo Motta (Republicans Party, Paraíba) tried to broker an agreement to pass the measure, but ran into resistance from key centrist leaders. The figure most strongly accused of working against the measure was São Paulo Governor Tarcísio de Freitas (Republicans), who denied any involvement.

“We felt very strongly the interference, purely political and electoral, of the São Paulo governor, who mobilized party presidents to change their stance on the provisional decree. Those of us who work for the best solution in each case and for meeting fiscal targets regret that a governor would use his position solely to prepare for an election campaign,” Mr. Zarattini said on the House floor.

Following controversy over the “shielding bill”, the Centrão and opposition lawmakers resumed strong anti-tax rhetoric to justify their rejection of the measure. Despite holding federal cabinet positions, parties like Brazil Union, the Progressive, and the Republicans ordered their members to vote against the bill. The Social Democratic Party (PSD), which had considered letting lawmakers vote freely, also instructed its members to oppose it.

Facing this unfavorable scenario, President Lula called a lunch meeting with leaders from the government’s congressional base, joined by Finance Minister Fernando Haddad and Institutional Relations Minister Gleisi Hoffmann. After the meeting, the government’s leader in the Lower House, José Guimarães (Workers’ Party, Ceará), said the administration might issue new decrees to make up for the revenue lost from the bill’s defeat.

Mr. Lula urged Congress to show “maturity” and criticized the use of the provisional decree for electoral purposes, in a clear jab at Mr. de Freitas. “If someone wants to turn this into an election issue, I can only say that it shows a staggering level of pettiness. Anyone can claim the proposal as their own. Any lawmaker can take credit for having voted in favor,” the president said.

Mr. de Freitas denied the accusation in comments to Valor. “I don’t interfere in these matters. We’re very focused on a number of issues here [in São Paulo],” he said.

In an effort to rally support, the government temporarily removed three ministers from their posts so they could vote in the Chamber: Tourism Minister Celso Sabino (Brazil Union, Pará), Sports Minister André Fufuca (Progressive Party, Maranhão), and Ports and Airports Minister Silvio Costa Filho (Republicans, Pernambuco). Ms. Hoffmann also sent messages to the Centrão parties controlling those ministries.

“If this bill fails, it will reveal a lack of public spirit [among lawmakers]. I appeal to all parliamentarians to walk with us in Congress today because this country is on the path to building social justice,” Ms. Hoffmann said.

Another strategy was to draw a comparison to the recent approval of the “shielding amendment,” when centrist parties and pro-Bolsonaro opposition lawmakers joined forces in a vote. The idea was to pressure opponents by labeling them as “enemies of the people,” but the tactic failed. Even after voting down the measure, most Centrão leaders refrained from making speeches, limiting themselves to brief, generic instructions.

Only Liberal Party leader Sóstenes Cavalcante (Rio de Janeiro) spoke forcefully. He congratulated the presidents of the main Centrão parties individually for voting against the bill. He said the move “shows, contrary to what many thought, that the center-right will be united in 2026” around whoever former President Jair Bolsonaro chooses to face Mr. Lula.

Tensions between the executive branch and Congress had already been mounting before the measure was introduced. President Lula issued it in June after lawmakers overturned a presidential decree setting new rates for the IOF (Tax on Financial Transactions). The original goal was to offset the revenue loss caused by that repeal.

*By Murillo Camarotto, Giordanna Neves, Beatriz Roscoe and Renan Truffi, Valor — Brasília

Source: Valor International

https://valorinternational.globo.com/

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