{"id":93634,"date":"2025-04-07T12:12:33","date_gmt":"2025-04-07T15:12:33","guid":{"rendered":"https:\/\/murray.adv.br\/?p=93634"},"modified":"2025-04-07T12:12:35","modified_gmt":"2025-04-07T15:12:35","slug":"brazil-concerned-by-threat-to-multilateral-trade-system","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/brazil-concerned-by-threat-to-multilateral-trade-system\/","title":{"rendered":"Brazil concerned by threat to multilateral trade system"},"content":{"rendered":"\n
Despite lower U.S. tariffs, Lula administration warns of global risks<\/em><\/strong><\/h6>\n\n\n\n

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04\/07\/2025 <\/p>\n\n\n\n

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Members of the Lula administration say there is no reason to celebrate Brazil\u2019s inclusion in the lowest tariff tier under the sweeping measures announced last Wednesday (2) by U.S. President Donald Trump<\/a>. While Brazil secured a \u201ccomparative advantage\u201d with lower rates<\/a>, officials warn the move could signal a breakdown of the multilateral trade system, with unpredictable and potentially harmful consequences for all countries.<\/p>\n\n\n\n

This concern is shared by sources at the Planalto Palace and the Foreign Ministry, including Celso Amorim, special advisor to President Lula.<\/p>\n\n\n\n

Mr. Amorim said that weeks of talks between Brazilian diplomats and representatives of the Office of the United States Trade Representative (USTR) helped secure Brazil a place among the few countries facing a 10% tariff\u2014alongside Argentina, the United Kingdom, Australia, Singapore, Chile, and Colombia\u2014nations with which the U.S. runs a trade surplus. By comparison, the new tariffs are 20% for the European Union, 24% for Japan, 25% for South Korea, and 32% for Indonesia.<\/p>\n\n\n\n

\u201cThe Foreign Ministry did an excellent job of clarifying that the U.S. has a consistent surplus with Brazil,\u201d Mr. Amorim told Valor<\/strong>. \u201cIt\u2019s much better to start bilateral negotiations from that position than from one where the situation could be much worse [with higher tariffs]. I just don\u2019t think we should be thanking the U.S. This is incompatible with the multilateral system. There\u2019s nothing to celebrate.\u201d<\/p>\n\n\n\n

Defending the multilateral system, Mr. Amorim cited Brazil\u2019s past victories, such as the 2014 resolution of the cotton dispute with the U.S. at the World Trade Organization (WTO), and the country\u2019s success in overriding patents for HIV treatment drugs in the 1990s, backed by international bodies.<\/p>\n\n\n\n

The full impact of the U.S. tariff package is still being assessed by the Brazilian government and business associations. At the presidential palace, officials believe this will be a long-term effort, as the final assessment depends on developments such as retaliatory measures from other countries and broader effects on global trade.<\/p>\n\n\n\n

On Thursday (3), President Lula said Brazil would take \u201call appropriate measures to defend our companies and Brazilian workers.\u201d<\/a><\/p>\n\n\n\n

He said Brazil\u2019s response would be guided by WTO rules and the reciprocity law passed by Congress on the same day as the U.S. tariff announcement<\/a>.<\/p>\n\n\n\n

One source said the Reciprocity Bill puts \u201call cards on the table\u201d for Brazil. However, any retaliatory move will take time. For now, the focus is on negotiation.<\/p>\n\n\n\n

Next week, a new round of talks will be held by Ambassador Mauricio Lyrio, the Foreign Ministry\u2019s secretary for Economic and Financial Affairs, with the USTR. Officials in Bras\u00edlia believe the negotiations could take months or even years. Brazil has already requested a return to tariff-free quotas for its steel exports to the U.S.\u2014a demand that remains on the table.<\/p>\n\n\n\n

The government is also coordinating with the private sector through industry groups like the National Confederation of Industry (CNI), the National Confederation of Agriculture (CNA), and the Brazil Steel Institute.<\/p>\n\n\n\n

Milei\u2019s U.S. tariff pledge<\/strong><\/p>\n\n\n\n

While Brazil continues to advocate for multilateralism, the current trade context could push the country to impose additional tariffs to prevent a flood of Chinese and other Asian goods\u2014a scenario also being considered in the European Union.<\/p>\n\n\n\n

There is growing concern in Bras\u00edlia over the future of Mercosur. During a visit to the U.S. on Friday, Argentine President Javier Milei said he would align Argentina\u2019s tariffs with a U.S. basket of 50 products.<\/p>\n\n\n\n

This poses a challenge, as Mercosur is based on a Common External Tariff (CET) and joint trade negotiations with outside partners. If Mr. Milei follows through\u2014something few expect\u2014it could spell the end of the South American bloc, or at least Argentina\u2019s exit from it.<\/p>\n\n\n\n

Next Wednesday, President Lula will travel to Honduras for the summit of the Community of Latin American and Caribbean States (CELAC). Gisela Padovan, the Foreign Ministry\u2019s secretary for Latin America and the Caribbean, said Thursday that while the U.S. tariff hike is not officially on the agenda, it may be mentioned in the summit\u2019s final declaration.<\/p>\n\n\n\n

Other sources expect the declaration to include a general \u201cdefense of multilateralism.\u201d The issue may also be raised during Mr. Lula\u2019s bilateral meetings with other leaders, which have yet to be confirmed.<\/p>\n\n\n\n