NEWSLETTER\u00a0OCTOBER 2025<\/p>\n
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10\/01\/2025<\/p>\n
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PLANNED TAX ON REAL ESTATE, AGRIBUSINESS CREDIT BILLS FACES PUSHBACK<\/u><\/strong><\/p>\n Bill rapporteur Carlos Zarattini says 7.5% rate could be cut to 5% or scrapped entirely<\/em><\/strong><\/p>\n <\/p>\n Real estate credit bills (LCI) and agribusiness credit bills (LCA), popular fixed-income securities issued by banks in Brazil, may be removed from the list of financial instruments set to be taxed next year. Congressman Carlos Zarattini of the Workers\u2019 Party (PT), who is the rapporteur for the bill that proposes an alternative to higher Financial Transactions Tax (IOF) rates, said talks with the agribusiness caucus are still ongoing and that eliminating the income tax on these securities is still on the table.<\/p>\n <\/p>\n In his latest draft, Mr. Zarattini had proposed a 7.5% tax rate for these instruments, above the 5% originally proposed in the government\u2019s provisional presidential decree (MP) in June. \u201cWe see that the most sensitive issue, the one involving the largest number of lawmakers, is precisely the one that affects agribusiness. So, the 7.5% tax on the LCA and LCI is a critical matter. We\u2019re working to ensure we have majority support to pass the provisional decree,\u201d he said.<\/p>\n <\/p>\n \u201cWe\u2019re considering going back to 5%, maybe even other rates, we\u2019re not closing the door on the discussion. Reinstating this [the exemption] is a possibility,\u201d he added.<\/p>\n <\/p>\n The proposed end to the tax exemption has drawn criticism from both the agribusiness sector and organizations involved in real estate financing.<\/p>\n <\/p>\n Agribusiness representatives argue that taxing these securities could discourage new issuances and curb private-sector financing at a time when the industry is already facing other challenges, such as cuts to the government\u2019s annual agricultural credit plan. Last week, Congressman Pedro Lupion, president of the Agribusiness Parliamentary Front (FPA), said the new tax \u201ccondemns\u201d these instruments and that \u201cthere\u2019s no room for compromise.\u201d<\/p>\n <\/p>\n Meanwhile, the Brazilian Association of Real Estate Credit and Savings Entities (ABECIP) has warned repeatedly that ending the exemption could raise funding costs and lead to a drop in new issuances. \u201cUltimately, this would make it harder for thousands of Brazilian families to buy a home, slowing real estate activity, a key generator of jobs across the country,\u201d the group said in a statement in September.<\/p>\n <\/p>\n The government\u2019s economic team has defended the tax, saying it could help level the playing field between bank-issued securities and government bonds, which could become more appealing. Finance Minister Fernando Haddad said last week that these instruments would remain attractive because they would still be taxed at lower rates than other investments. He noted that studies by the Finance Ministry show much of the benefit from tax exemptions gets absorbed along the way and doesn\u2019t reach the final borrower.<\/p>\n <\/p>\n Mr. Zarattini\u2019s report also upholds the government\u2019s proposal to apply a flat 17.5% income tax on returns from financial investments in Brazil starting in 2026. This would replace the current system of tiered rates\u201422.5% for investments held up to six months and 15% for those held for more than two years.<\/p>\n <\/p>\n \u201cWe\u2019re keeping the 17.5% because the flat rate is good for the market. In fact, the market itself asked for the removal of brackets and the adoption of a single rate. With 17.5%, investors can offset gains and losses across investments, which benefits thousands of people, especially small investors, who will pay less tax and have more room to invest,\u201d Mr. Zarattini said.<\/p>\n <\/p>\n Controversy over limits to brokerage trades<\/p>\n <\/p>\n Another controversial provision in the bill is language that could restrict brokerages from selling large blocks of shares through internal matching, the so-called order internalization. The sector, represented by ANCORD (National Association of Brokerage Firms), has called for the removal of a clause that defines the over-the-counter (OTC) market as exclusively \u201corganized and multilateral systems.\u201d<\/p>\n <\/p>\n ANCORD argues that if this language remains, only one infrastructure\u2014Brazil\u2019s stock exchange B3\u2014would effectively be allowed to handle large-block transactions. Internalization refers to trades executed between clients of the same brokerage, outside the exchange environment but still within a regulated institution.<\/p>\n <\/p>\n According to the brokers, the language contradicts Brazil\u2019s Securities and Exchange Commission (CVM) Resolution 135, which allows for large-block trades in the OTC market as part of a \u201ccentralized and bilateral trading system.\u201d<\/p>\n <\/p>\n ANCORD\u2019s general director, Jos\u00e9 David Martins J\u00fanior, said the text only needs to be \u201charmonized with CVM Resolution 135.\u201d One solution, he suggested, would be to remove the paragraph requiring a multilateral organized OTC system to avoid legal conflict.<\/p>\n <\/p>\n Mr. Zarattini said he was unaware of the brokers\u2019 concern. He noted that he had spoken with all sectors impacted by the bill but had not been approached by ANCORD. \u201cI don\u2019t recall that issue. Honestly, no one has brought it up with me,\u201d he said.<\/p>\n <\/p>\n A vote on the report is scheduled for Thursday, October 2.<\/p>\n <\/p>\n Source: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n <\/p>\n ___________________________________________<\/strong><\/p>\n \u00a0<\/strong><\/p>\n 10\/01\/2025<\/p>\n <\/p>\n NOVO NORDISK, EUROFARMA TO JOINTLY LAUNCH TWO DRUG BRANDS FOR WEIGHT LOSS, DIABETES<\/u><\/strong><\/p>\n Companies expect products to hit the Brazilian market in October<\/em><\/strong><\/p>\n <\/p>\n Danish pharmaceutical company Novo Nordisk and Brazil\u2019s Eurofarma announced on Wednesday (1) a partnership to launch two new brands of injectable biological semaglutide in Brazil for the treatment of obesity and diabetes. The companies said the medications are expected to reach the market as early as October.<\/p>\n <\/p>\n Under the agreement, Eurofarma will be the exclusive distributor responsible for the commercialization and promotion of the two weekly injectable semaglutide brands. One will be Poviztra, indicated for the treatment of obesity and overweight with associated comorbidities. The other, Extensior, will target type 2 diabetes treatment.<\/p>\n <\/p>\n \u201cThis partnership is a strategic step to ensure our innovation reaches even more people across Brazil,\u201d said Allan Finkel, vice president of Novo Nordisk Latam and Brazil, in a joint statement with Eurofarma.<\/p>\n <\/p>\n Eurofarma\u2019s Brazil CEO, Renata Campos, said the company will leverage its sales expertise to expand the products\u2019 reach. \u201cA project that reflects a strong commitment to doctors and patients,\u201d she said in the statement.<\/p>\n <\/p>\n Source: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n ____________________________________________<\/strong><\/p>\n <\/p>\n 10\/02\/2025<\/p>\n <\/p>\n MINERVA PIVOTS TO DELEVERAGING AS URUGUAY DEAL IS HALTED<\/u><\/strong><\/p>\n Company channels R$750 m to reduce debt, keeps outlook upbeat on Brazil\/Argentina\/Chile plants<\/em><\/strong><\/p>\n \u00a0<\/strong><\/p>\n \u00a0<\/strong><\/p>\n <\/p>\n Minerva Foods is reworking its plans and intends to use the R$750 million that would have been allocated to purchase three Marfrig\u2014now MBRF, following its merger with BRF\u2014plants in Uruguay to pay down debt. The decision follows the deal\u2019s blockage by Uruguay\u2019s antitrust authority, the Comisi\u00f3n de Promoci\u00f3n y Defensa de la Competencia (Coprodec).<\/p>\n <\/p>\n At the same time, the company sees a promising outlook for the other units bought from its rival in Brazil, Argentina, and Chile, citing firm international demand for beef. That should underpin positive results in 2025 and organic growth of 10% next year.<\/p>\n <\/p>\n \u201cWe will use the funds to reduce leverage and support the company\u2019s deleveraging process,\u201d said Edison Ticle, Minerva\u2019s chief financial officer, speaking to reporters on Monday during Minerva Day, a meeting with analysts and investors.<\/p>\n <\/p>\n After previously blocking the closure of the deal in Uruguay several times, Coprodec issued yet another negative decision last week.<\/p>\n <\/p>\n CEO Fernando Queiroz said the company might appeal the ruling but is still considering it. The planned purchase of the Uruguayan plants in San Jos\u00e9, Salto, and Colonia was part of a larger deal in which Minerva acquired 13 Marfrig plants across South America. The plants already acquired have been under Minerva\u2019s control since October 2024, when that part of the deal was finalized.<\/p>\n <\/p>\n Mr. Ticle mentioned that by the end of September, Minerva had already reached 100% of the expected synergies from the acquired units\u2014a quarter earlier than initially forecasted. This indicates that the plants\u2019 operational and commercial processes are now aligned with Minerva\u2019s standards, he said. \u201cThis will allow us to run the fourth quarter with capacity utilization above 75%,\u201d he added.<\/p>\n <\/p>\n The executive estimated the units are delivering between R$350 million and R$400 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) per quarter. As a result, the annual EBITDA of the new plants could approach R$1.5 billion\u2014even without the three in Uruguay.<\/p>\n <\/p>\n \u201cThe performance numbers of the acquired plants are significantly better than what we announced at the time of the deal. We will probably revisit these figures next year,\u201d Mr. Ticle said. The purchase agreement was announced to the market in August 2023.<\/p>\n <\/p>\n Also at the event, Alexandre Mendon\u00e7a de Barros, a partner at consultancy MB Agro and a Minerva board member, estimated the world could produce 1.5 million to 2 million tonnes less beef next year.<\/p>\n <\/p>\n According to Mr. Ticle, beef prices are currently, on average, 15% higher in dollar terms than a year ago. \u201cBeef prices have risen, and consumption hasn\u2019t fallen. That probably signals a shift in the global price level,\u201d added Minerva\u2019s institutional relations director, Jo\u00e3o Sampaio.<\/p>\n <\/p>\n Stressing that it was not new guidance, Mr. Ticle said Minerva\u2019s 2025 EBITDA could range from around R$4.75 billion to R$5.2 billion for the entire company. Net revenue for the year is expected to reach between R$50 billion and R$58 billion. \u201cWe should end up very close to the top of the range,\u201d he said.<\/p>\n <\/p>\n Investors well received the outlook presented at the event, and Minerva\u2019s shares on B3 posted the benchmark stock index Ibovespa\u2019s most significant gain on Tuesday, up 3.21%.<\/p>\n <\/p>\n Source: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n ____________________________________________<\/strong><\/p>\n <\/p>\n 10\/03\/2025<\/p>\n <\/p>\n SPENDING CUTS, SLOWDOWN PUSH RETAILERS TO LAY OFF WORKERS IN BRAZIL<\/u><\/strong><\/p>\n Large retail groups reduced headcount starting in Q2, citing high interest rates, restructuring<\/em><\/strong><\/p>\n \u00a0<\/strong><\/p>\n Large retail groups reported layoffs in the second quarter\u2014or \u201ccorporate restructurings,\u201d according to discreet mentions in earnings releases\u2014and the headcount reductions extended into the third quarter at market leaders.<\/p>\n <\/p>\n Cuts in operating expenses to dilute costs, weaker sales\u2014which made store closures and layoffs more urgent\u2014heavier debt service due to high interest rates, and business reorganizations tied to mergers all led to job reductions.<\/p>\n <\/p>\n Demand for labor in parts of the retail sector, given today\u2019s high turnover, may help absorb some of these workers.<\/p>\n <\/p>\n One particular issue has drawn attention from the companies consulted: rising cost inflation, even as consumer spending shows signs of cooling. \u201cWe are dealing with wage inflation from collective bargaining agreements, energy costs are rising again, and the sales curve is heading downward or, at best, flat. There is not much room to maneuver,\u201d said the CEO of a home improvement chain that has already closed stores this year.<\/p>\n <\/p>\n Economists note that groups already in a fragile situation\u2014burdened with years of high leverage or lacking competitiveness\u2014have been hit harder than others that took measures to improve efficiency.<\/p>\n <\/p>\n \u201cWe have become a country addicted to high interest rates to finance a deficit-ridden State, and companies are the ones paying the bill,\u201d said Fabio Bentes, chief economist at CNC, the national retail and services confederation.<\/p>\n <\/p>\n Valor compiled the cases based on an analysis of 2025 quarterly earnings reports, filings with the Securities and Exchange Commission of Brazil (CVM), official announcements of closures, and company sources.<\/p>\n <\/p>\n Broadly, starting in the second quarter, a wave of cuts extended into the second half of the year in certain segments and companies, both listed and privately held.<\/p>\n <\/p>\n From April to June, RD Sa\u00fade (Raia Drogasil), Casas Bahia, and Westwing reduced staff. In recent months, after July, GPA (owner of P\u00e3o de A\u00e7\u00facar supermarkets), Telhanorte, Azzas 2154, and Grupo Multi also announced cuts, according to official statements and Valor\u2019s reporting.<\/p>\n <\/p>\n Fast Shop, which is under investigation by S\u00e3o Paulo prosecutors for corruption, also cut jobs and plans further reductions.<\/p>\n <\/p>\n In the view of Luiz Guanais, retail analyst at BTG Pactual, other similar moves remain possible but are likely to be more targeted among large groups. \u201cI believe chains are adapting to a \u2018new normal,\u2019 with more indebted customers and inflation stabilizing at a high level. That said, today retailers are better prepared to deal with a slowdown and 15% annual interest rates than they were three or four years ago.\u201d<\/p>\n <\/p>\n Specialists emphasize that decisions on workforce reviews vary, and even well-structured, low-leverage businesses have faced pressures. That was the case with RD, which cut costs after a weak start to the year in its more mature stores. According to sources, the company dismissed about 700 people in April, including coordinators and managers with up to 47 years at the company.<\/p>\n <\/p>\n Its last filing with the stock exchange B3 showed 64,200 employees at the end of 2024. The retailer declined to comment. A person close to the chain noted that it still projects 350 store openings this year, with new hires.<\/p>\n <\/p>\n In its earnings release, the company said it carried out a corporate restructuring in April to reduce overhead and administrative expenses, part of \u201ccost containment efforts\u201d launched in 2024. In total, RD spent R$50 million on the reorganization, which eliminated overlapping roles and expanded autonomy. After that, the chain temporarily stopped hiring in the first half of the year, according to a former company coordinator.<\/p>\n <\/p>\n In consumer durables, Westwing shut down two logistics warehouses\u2014in Rio de Janeiro in June and Belo Horizonte in April\u2014while keeping the one in Bras\u00edlia. Its three stores and distribution center in Jundia\u00ed (S\u00e3o Paulo) remain open. Sources said 60 to 70 people were laid off. At the end of 2024, the company had 405 employees.<\/p>\n <\/p>\n \u201cThe idea was to make the company leaner, especially as online demand was losing steam this year,\u201d said a furniture supplier to the chain. In its earnings release, the retailer said it carried out an \u201cadditional adjustment in its cost structure\u201d in a context of declining gross merchandise volume (GMV) and market performance, \u201cin line with the strategy of improving profitability.\u201d<\/p>\n <\/p>\n In a statement, Westwing said the reduction in \u201chubs\u201d helped improve operating performance. The company said it aims to seize opportunities from a potential economic recovery, with a focus on profitability.<\/p>\n <\/p>\n In recent weeks, GPA informed the CVM it had cut around 730 jobs in just over two and a half months\u2014between July 1 and September 16, days before its September 18 disclosure. The company did not say whether further cuts are planned or which areas were affected. GPA declined to comment beyond its filing. The company had 39,000 employees in December 2024.<\/p>\n <\/p>\n In the document, GPA said it has been \u201cmaking efforts to reduce leverage,\u201d and for this reason, it has a headcount reduction program underway. Its financial leverage\u2014measured by the ratio of net debt to EBITDA\u2014reached 3.0x in June 2025, up from 2.7x a year earlier.<\/p>\n <\/p>\n Telhanorte and Tumelero, Brazil\u2019s second-largest home improvement group, have been hit directly by higher and scarcer credit lines this year. The group has reduced its workforce by 40% to 45% since the end of 2024, according to a source. It had 2,700 employees in December.<\/p>\n <\/p>\n At Telhanorte, the drop was around 25%, Valor has learned. Recent staff cuts followed business plan revisions that culminated in Tumelero shutting down 11 stores last month.<\/p>\n <\/p>\n Additionally, as announced on Wednesday (2), all 16 Tumelero units were sold to Grupo GG10, which sells tires and machinery, as part of an effort to streamline operations. A major operational restructuring has been underway since 2024, led by general manager Manuel Corr\u00eaa, who has focused on the process.<\/p>\n <\/p>\n Since its sales boom during the pandemic, the sector has struggled to regain momentum. The sharp rise in interest rates in 2021, which raised the cost of capital, and again in 2024, along with heavy competition, unsuccessful strategies, and product inflation, have all eroded competitiveness.<\/p>\n <\/p>\n Under current plans, Tumelero ceased operations at 11 loss-making stores in Rio Grande do Sul in September, including two in Porto Alegre, the company confirmed in a statement. In July, it closed large-format stores in Aricanduva and Osasco, both in greater S\u00e3o Paulo. Valor learned that Atacad\u00e3o is expected to take over the first location.<\/p>\n <\/p>\n Telhanorte currently has 27 stores nationwide, down from nearly 70 in 2023.<\/p>\n <\/p>\n At the end of 2024, competitor Casa&Constru\u00e7\u00e3o (C&C), hit harder by the tough economic environment, shut down in Brazil and dismissed the remaining staff in its stores, such as one on Marginal Tiet\u00ea in S\u00e3o Paulo, Valor found. The chain was sold in 2023 by the Faria family, the owners of Grupo Alfa, to AGI Partners. The asset manager wound down operations a year later. AGI declined to comment.<\/p>\n <\/p>\n In the same segment, Sodimac reduced its workforce in Brazil from 2,900 to 2,500. Parent company Falabella did not comment.<\/p>\n <\/p>\n Also this week, Azzas 2154\u2014formed by fashion brands Soma and Arezzo\u2014announced the closure of Arezzo\u2019s women\u2019s shoe factory in Parob\u00e9 (Rio Grande do Sul) and the dismissal of 135 workers, tied to business integration.<\/p>\n <\/p>\n Another retailer, Grupo Multi\u2014a manufacturer and marketer of electronics\u2014has been undergoing a more extensive restructuring since the second quarter. Measures include cutting expenses to improve efficiency, with a 5% to 10% reduction in its 4,500-employee workforce, according to a retail partner. The group did not comment.<\/p>\n <\/p>\n Surce: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n ____________________________________________<\/strong><\/p>\n <\/p>\n 10\/03\/2025<\/p>\n <\/p>\n SUGARCANE PROCESSOR COLORADO MAKES OFFER FOR RA\u00cdZEN MILL IN S\u00c3O PAULO<\/u><\/strong><\/p>\n Ra\u00edzen, owned by Cosan and Shell, is also negotiating sale of three other units<\/em><\/strong><\/p>\n \u00a0<\/em><\/strong><\/p>\n Brazilian sugarcane processing company Grupo Colorado, the owner of two mills in Brazil\u2019s Center-South region, has made an offer for Ra\u00edzen\u2019s Usina Continental, two sources familiar with the matter told Valor. The sources requested anonymity. Ra\u00edzen declined to comment. Valor reached out to Colorado but did not receive a response before publication.<\/p>\n <\/p>\n Located in Col\u00f4mbia, a city in the far north of S\u00e3o Paulo near the Tri\u00e2ngulo Mineiro region, the Continental mill has the capacity to process more than 2.5 million tonnes of sugarcane per harvest.<\/p>\n <\/p>\n According to the sources, this is the deal closest to being finalized among the Ra\u00edzen mills currently under negotiation. One source added that the company, owned by Cosan and Shell, has also begun discussions to sell its mills in Jata\u00ed (Goi\u00e1s), Lagoa da Prata (Minas Gerais), and Igarapava (S\u00e3o Paulo). Another source said that the Jata\u00ed mill had received a proposal from Atvos, which was not accepted. Atvos declined to comment.<\/p>\n <\/p>\n Continental has been on the market at least since June, as Valor previously reported. At that time, Ra\u00edzen was still negotiating the sale of assets from Santa Elisa, in Sert\u00e3ozinho (S\u00e3o Paulo), as well as Rio Brilhante and Passatempo, in Mato Grosso do Sul, which were eventually sold.<\/p>\n <\/p>\n If confirmed, the sale of Continental would be the fourth unit Ra\u00edzen acquired from Biosev in 2021 to be divested under its current asset disposal plan. In the case of the Santa Elisa mill, only the sugarcane fields were sold to a group of six industry companies, while the processing facility was put into hibernation. The mills in Mato Grosso do Sul were sold to Cocal.<\/p>\n <\/p>\n The sale of these three assets has generated R$1.345 billion for Ra\u00edzen. In the Santa Elisa fields transaction, sugarcane production capacity was sold at a multiple of $46 per tonne of raw material. In the sale of the mills located in Mato Grosso do Sul to Cocal\u2014which included both industrial assets and crops\u2014the multiple was $40 per tonne.<\/p>\n <\/p>\n Selling mills has proven to be a more immediate way for Ra\u00edzen to raise cash and reduce debt while its corporate restructuring remains unresolved. Pressured by high leverage, Ra\u00edzen\u2019s shares have fallen sharply, closing the Thursday (2) session at a record low of R$1.01. Cosan has already indicated it is willing to be diluted in the business.<\/p>\n <\/p>\n The company reportedly discussed a potential capital increase in Ra\u00edzen with Shell, but there were no developments. A source close to Shell said the recent decline in interest from major oil companies in clean energy reduces the likelihood of such a capital injection.<\/p>\n <\/p>\n In its most recent financial statement, Ra\u00edzen disclosed that its two partners were also exploring alternatives with a third investor. Bloomberg reported talks with Japanese firms Mitsui and Mitsubishi, while Valor\u2019s business website Pipeline revealed interest from BTG Pactual and Ita\u00fasa.<\/p>\n <\/p>\n <\/p>\n Source: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n <\/p>\n ____________________________________________<\/strong><\/p>\n 10\/06\/2025<\/p>\n \u00a0<\/u><\/strong><\/p>\n TARIFFS, STRONG REAL AND RISING COSTS SLASH EXPORTERS\u2019 MARGINS<\/u><\/strong><\/p>\n Brazil\u2019s export profitability drops 7.7% in August as 2025 outlook turns negative<\/em><\/strong><\/p>\n <\/p>\n A stronger real against the dollar, new U.S. tariffs, falling average export prices, and rising production costs, especially wages and services, dealt a broad blow to Brazilian exporters\u2019 profit margins in August. The hit spanned across industry, extractive sectors, and agribusiness.<\/p>\n <\/p>\n Brazil\u2019s overall export profitability dropped 7.7% from August 2024, according to the Foreign Trade Studies Foundation (Funcex). While year-to-date profitability remains slightly positive at 0.9%, it is slowing sharply. In the year through July, the increase stood at 2.2%. Funcex now expects the cumulative margin to flip into negative territory and close 2025 with a 1% loss compared to 2024.<\/p>\n <\/p>\n The drop in August was widespread, affecting 24 of the 29 sectors tracked by Funcex.<\/p>\n <\/p>\n Daiane Santos, economist at Funcex and professor at the Rio de Janeiro State University (UERJ), said the margin decline reflected a combination of three pressures: a nominal 1.9% appreciation of the real, a 3.3% drop in average export prices, and a 2.7% increase in production costs.<\/p>\n <\/p>\n Services and wages were the main contributors to higher production costs, rising 5.2% in August year over year. Domestic inputs rose 1.9%, while imported inputs dropped 2.6%, but not enough to offset the broader cost increases.<\/p>\n <\/p>\n The rea\u2019\u2019s appreciation already impacted margins in July, though to a lesser degree. That month, the real rose 0.2% compared to July 2024, contributing to a 4.4% margin drop.<\/p>\n <\/p>\n Ms. Santos said the appreciation trend continued in September, likely further squeezing profitability. By the end of September, she projects margins could be flat year to date. From October onward, the cumulative figure is expected to turn negative, ending 2025 down about 1%.<\/p>\n <\/p>\n The real\u2019s strength hurts profit margins across all export segments. Sectors with the steepest margin declines in August included fishing and aquaculture; pulp, paper, and paper products; and oil and gas extraction.<\/p>\n <\/p>\n Of the 29 segments tracked by Funcex, 15 still posted year-to-date margin gains but saw drops in August compared to a year earlier. These include food products, textiles, wood products, furniture, metallurgy, electrical machinery, and motor vehicles.<\/p>\n <\/p>\n Pharmaceuticals and chemicals, computer equipment, and other transportation equipment were among the few with gains both in August and year-to-date. Aircraft, which fall under \u201cother transport equipment,\u201d were exempted from the new tariffs.<\/p>\n <\/p>\n Commodities and global trade headwinds<\/p>\n <\/p>\n The exchange rate isn\u2019t the only factor weighing on margins. Export prices also show no sign of recovering, said Jos\u00e9 Augusto de Castro, head of the Brazilian Foreign Trade Association. \u201cCommodity prices are likely to hold steady or fall a bit further. I see no drivers for an increase right now,\u201d he said.<\/p>\n <\/p>\n Mr. Castro expects average prices for soybeans, oil, and iron ore in 2025 to be lower than in 2024. As many commodities are used as inputs for manufactured goods, falling prices also drag down prices for industrial products.<\/p>\n <\/p>\n He also pointed to weaker global trade, driven in part by uncertainty surrounding tariff policies under U.S. President Donald Trump.<\/p>\n <\/p>\n The World Trade Organization now forecasts global goods trade to grow just 0.9% in 2025, down from the 2.7% previously projected before the recent wave of tariff hikes. In 2024, goods trade grew 2.9%.<\/p>\n <\/p>\n Mr. Castro said uncertainty will likely persist, especially around Mr. Trump. He noted that the U.S. president signed a new executive order last week imposing 10% tariffs on wood products and 25% on some types of furniture.<\/p>\n <\/p>\n Lower prices<\/p>\n <\/p>\n Funcex data show that the pace of decline in average export prices accelerated in August, down by 1.5 percentage points compared to July, year over year. Ms. Santos attributed the sharper fall in part to President Trump\u2019s tariffs, which pushed Brazilian exporters to renegotiate prices with U.S. buyers.<\/p>\n <\/p>\n The footwear sector was one of the hardest hit, said Priscila Linck, economist and market intelligence coordinator at Abical\u00e7ados, Brazil\u2019s footwear industry association.<\/p>\n <\/p>\n From January to August, export profitability for footwear, travel goods, leather, and related products dropped 3.9% compared to the same period in 2024. In August alone, the margin fell 11%, driven by a 6.1% drop in average export prices.<\/p>\n <\/p>\n Ms. Linck noted that leather and footwear have different market dynamics, but both are being impacted by international trends and U.S. tariffs. \u201cWhen the real appreciates, companies have less room to offer discounts in dollars without compromising profitability. But sometimes dollar discounts are the only way to maintain volume in international markets,\u201d she said.<\/p>\n <\/p>\n She described the current global landscape as uncertain, with intensifying competition\u2014particularly from Asia in key markets for Brazilian footwear. \u201cThere was a significant export loss in August due to the tariffs,\u201d she said.<\/p>\n <\/p>\n Footwear shipments to the U.S. fell in August, contributing to a 0.5% drop in Brazil\u2019s overall footwear export volume and a decline in average prices. Footwear sold to the U.S. typically has higher added value, Ms. Linck said.<\/p>\n <\/p>\n Even so, some shipments went ahead, absorbing part of the new tariffs. \u201cBrazilian companies maintained some volumes, partly absorbing the tariff. In some cases, the U.S. importers also absorbed part of the cost to preserve long-standing relationships,\u201d she said. However, she warned this is a short-term fix and unsustainable in the long run, underscoring the need to revisit the tariff measures.<\/p>\n <\/p>\n Export redirection<\/p>\n <\/p>\n Ms. Santos said exporters in other sectors also had to cut prices in August to redirect shipments originally bound for the U.S. to other markets. \u201cExporters had to lower prices to ensure their goods were absorbed elsewhere. They lost bargaining power, which pushed prices down,\u201d she said.<\/p>\n <\/p>\n A report from the Foreign Trade Indicator (Icomex), published by the Brazilian Institute of Economics at Getulio Vargas Foundation (FGV Ibre), shows that of the 15 main products Brazil exported to the U.S. that were hit by tariffs, nine saw U.S. sales decline in August. Meanwhile, sales to the rest of the world rose or fell less sharply.<\/p>\n <\/p>\n For instance, exports of semi-manufactured iron or steel products fell 28.3% to the U.S. but surged 99.7% to other destinations. Boneless frozen beef exports dropped 47.4% to the U.S. but rose 67.9% elsewhere. Coffee exports climbed 16.4% to the U.S., while falling 0.7% to other markets.<\/p>\n <\/p>\n Still, the reallocation of exports may be more complex than it appears. Lia Valls, a professor at UERJ and associate researcher at FGV Ibre, said the data do not necessarily mean that Brazilian exporters have found alternative markets.<\/p>\n <\/p>\n \u201cSome of these shipments may still be aimed at the U.S. market, even if routed through other countries,\u201d she explained. Some multinational companies are using facilities in other countries to ship to the U.S., replacing direct exports from Brazil. \u201cThere may be a reconfiguration happening that the data aren\u2019t capturing yet,\u201d she said.<\/p>\n <\/p>\n Source: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n <\/p>\n ____________________________________________<\/strong><\/p>\n 10\/09\/2025<\/p>\n \u00a0<\/strong><\/p>\n BRAZILIAN AMAZON RESIDENTS COMPLAIN ABOUT HEAT, POLLUTION<\/u><\/strong><\/p>\n Climate crisis should already be treated as a public health and social crisis, survey shows<\/em><\/strong><\/p>\n <\/p>\n In the Brazilian Amazon, the climate crisis should already be treated as a public health and social crisis, especially for traditional and Indigenous communities. This is what shows a new survey released this Wednesday (8), in which a third of the more than 4,000 respondents claim to be directly affected by global warming\u2014whether through rising living costs, food insecurity, or heat-related chronic diseases.<\/p>\n <\/p>\n The increase in electricity prices was the most common impact mentioned by the Amazonians who responded to a survey by Umane and Vital Strategies, with support from the Devive Institute. In total, 83.4% complained about higher electricity bills.<\/p>\n <\/p>\n Other problems included rising average temperatures (82.4%), increased air pollution (75%), more frequent environmental disasters (74.4%), and rising food prices (73%). All of these factors cause and exacerbate health problems, says Luciana Vasconcelos Sardinha, deputy director of chronic non-communicable diseases at Vital Strategies.<\/p>\n <\/p>\n Indigenous peoples, quilombolas, riverside communities, and rubber tappers are among the most affected, representing 42.2% of respondents who claim to be directly impacted by the climate crisis. These groups report worsening water quality and food production, increased vulnerability to extreme events, and dependence on natural resources for survival. Most depend on the Brazilian Unified Health System (SUS) for healthcare.<\/p>\n <\/p>\n \u201cThe environmental agenda is directly related to public health, especially for more vulnerable populations who, in addition, are farther from urban centers and feel the consequences of drought more acutely, for example. These people also have a more acute perception of what is happening because they depend on natural resources that are under threat,\u201d says Ms. Sardinha.<\/p>\n <\/p>\n She emphasizes that exposure to climate change is also greater due to the accumulated deforestation over the last 20 years.<\/p>\n <\/p>\n Regardless of the respondents\u2019 income, the survey\u2019s technical manager emphasizes that environmental problems weigh financially on households because they are unable to produce or collect enough of their own food and raw materials. As a result, in addition to food insecurity, households are in the red.<\/p>\n <\/p>\n In the Brazilian Amazon, the main economic activity is agriculture. It covers over 5.1 million km2 of land distributed across nine states\u2014Acre, Amap\u00e1, Amazonas, Mato Grosso, Par\u00e1, Rond\u00f4nia, Roraima, Tocantins, and part of Maranh\u00e3o. On the map, deforestation is a historical reality, Ms. Sardinha points out, and makes extreme droughts trigger even more serious consequences, for example.<\/p>\n <\/p>\n Of the total respondents, 53.3% say they have reduced practices they believe worsen the crisis, and 38.4% say they feel guilty about wasting energy. According to Ms. Sardinha, this feeling reflects a mental health issue, specifically climate anxiety.<\/p>\n <\/p>\n There is widespread evidence of health damage caused by intense heat throughout Brazil, says Ana Val\u00e9rio de Ara\u00fajo, executive director of the Brazil Fund for Human Rights. With poorer health, the population is unable to work, worsening economic activity in regions affected by climate disasters, she says.<\/p>\n <\/p>\n \u201cSome groups have their rights violated more than others because they are already experiencing structural changes, in addition to those caused by climate change. For example, Indigenous peoples, who simultaneously fight for their right to land and against the impacts of extreme weather events, which tend to be much greater than for those living in urban areas,\u201d she explains. The trend, she adds, is for climate change to deepen social inequalities if there are no governance and preparedness in the public and private sectors.<\/p>\n <\/p>\n Source: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n <\/p>\n ____________________________________________<\/strong><\/p>\n \u00a0<\/strong><\/p>\n 10\/09\/2025<\/p>\n \u00a0<\/strong><\/p>\n FEDERAL POLICE SAY METHANOL CRISIS COULD BE LINKED TO FUEL FRAUD<\/u><\/strong><\/p>\n Director-General Andrei Rodrigues says probe entered phase of interagency cooperation with state forensic units<\/em><\/strong><\/p>\n <\/p>\n The director-general of Brazil\u2019s 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.<\/p>\n <\/p>\n \u201cThere is a possible connection with the previous operation on fuel adulteration, especially since the methanol\u2019s port of entry was Paranagu\u00e1. It probably involved some criminal organization,\u201d Mr. Rodrigues told reporters at the Ministry of Justice and Public Security headquarters.<\/p>\n <\/p>\n He added that the investigation is now in a \u201cphase of cooperation,\u201d particularly in the forensic area, through a national integrated system that brings together Federal Police experts and state forensic police.<\/p>\n <\/p>\n \u201cWe 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,\u201d he explained.<\/p>\n <\/p>\n On September 29, the Federal Police started investigating a series of methanol poisoning cases in S\u00e3o Paulo. The move followed suspicions that the incidents could be linked to organized crime groups and to the recent fuel fraud probes.<\/p>\n <\/p>\n 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 \u201cnational problem.\u201d<\/p>\n <\/p>\n According to the minister, the suspected criminal involvement may not necessarily involve the country\u2019s well-known prison factions, but rather an organization operating specifically in the illicit alcohol production and beverage falsification trades.<\/p>\n <\/p>\n Source: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n \u00a0<\/strong><\/p>\n __________________________________________<\/strong><\/p>\n 10\/10\/2025<\/p>\n <\/p>\n JURISTS EXPECT A YOUNGER REPLACEMENT FOR JUSTICE BARROSO<\/u><\/strong><\/p>\n Justice\u2019s early retirement gives President Lula another opportunity to appoint an ally to Brazil\u2019s Supreme Court<\/em><\/strong><\/p>\n <\/p>\n The three frontrunners to succeed Justice Lu\u00eds Roberto Barroso on Brazil\u2019s Supreme Court\u2014Bruno Dantas, minister at the Federal Court of Accounts (TCU); Attorney General Jorge Messias; and Senator Rodrigo Pacheco (Social Democratic Party, PSD, of Minas Gerais)\u2014are 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.<\/p>\n <\/p>\n Constitutional law professor and attorney L\u00eanio Streck said Mr. Barroso\u2019s retirement opens the way for President Lula to nominate someone who could remain on the court for roughly two decades. \u201cOne key factor is appointing someone younger, and that\u2019s exactly what Lula will do\u2014I have no doubt. The president will choose a highly aligned, organic candidate,\u201d Mr. Streck said, pointing to Mr. Messias as the favorite.<\/p>\n <\/p>\n 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.<\/p>\n <\/p>\n 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: \u201cA 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.\u201d<\/p>\n <\/p>\n Mr. Dias noted that while the leading contenders meet constitutional requirements of \u201cimpeccable reputation and distinguished legal expertise,\u201d 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.<\/p>\n <\/p>\n \u201cIn the Supreme Court\u2019s composition, people with diverse perspectives are essential to forming more consistent decisions that reflect the diversity and pluralism enshrined in the Federal Constitution,\u201d he said.<\/p>\n <\/p>\n 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.<\/p>\n <\/p>\n Mr. Gontijo said Mr. Barroso played a central role in key democratic debates during his tenure at the Supreme Court, fulfilling with \u201cabsolute rigor\u201d the constitutional mission entrusted to the court\u2019s justices. During Mr. Barroso\u2019s tenure as chief justice, he added, the court faced enormous and unprecedented challenges, including \u201cserious and unfounded attacks.\u201d \u201cHis unwavering defense of the Constitution and all it represents was vital to preserving Brazil\u2019s institutional framework,\u201d Mr. Gontijo said.<\/p>\n <\/p>\n Attorney Ant\u00f4nio Carlos de Almeida Castro, known as Kakay, praised Mr. Barroso\u2019s performance as both justice and president of the Supreme Court, as well as his leadership of the Superior Electoral Court (TSE). \u201cThe 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,\u201d Mr. Castro said.<\/p>\n <\/p>\n Mr. Streck divided Mr. Barroso\u2019s 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 \u201cpunitive\u201d 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.<\/p>\n <\/p>\n 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.<\/p>\n <\/p>\n \u201cThis duality defined Mr. Barroso\u2019s 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,\u201d Mr. Streck concluded.<\/p>\n <\/p>\n Source: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n <\/p>\n ____________________________________________<\/strong><\/p>\n <\/p>\n 10\/13\/2025<\/p>\n <\/p>\n BRAZIL REDIRECTS TARIFFED GOODS TO OTHER MARKETS, LIFTS SALES<\/u><\/strong><\/p>\n Higher coffee and beef prices help offset losses from Trump\u2019s tariff hike<\/em><\/strong><\/p>\n <\/p>\n 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\u2019s 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.<\/p>\n <\/p>\n 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.<\/p>\n <\/p>\n 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.<\/p>\n <\/p>\n 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.<\/p>\n <\/p>\n 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\u2019s frozen beef exports to Mexico nearly quadrupled (up 292.6%), while coffee exports rose 90% compared to the same months of 2024.<\/p>\n <\/p>\n 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 Funda\u00e7\u00e3o Getulio Vargas (FGV IBRE), in collaboration with Valor, using SECEX data. The list includes items affected by both Mr. Trump\u2019s 50% tariff and Section 232 tariffs, which target steel and aluminum, based on research by the Institute for Industrial Development Studies (IEDI).<\/p>\n <\/p>\n 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.<\/p>\n <\/p>\n Varying impacts<\/p>\n <\/p>\n Ms. Valls noted that the tariff hike had a wide range of effects on different goods. \u201cThe data show a reconfiguration of markets, but some products are still facing more complex situations,\u201d she said.<\/p>\n <\/p>\n 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\u2019s exports of these 20 products dropped from 28% in August and September 2024 to 21.4% this year.<\/p>\n <\/p>\n The U.S. share of Brazil\u2019s overall exports also fell, from 11.6% to 9% in the same comparison.<\/p>\n <\/p>\n 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.<\/p>\n <\/p>\n Meanwhile, exports of the same items to other countries rose 36%, totaling $127.2 million\u2014a $31.5 million increase that was not enough to offset the losses in the U.S. market.<\/p>\n <\/p>\n 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.<\/p>\n <\/p>\n Coffee and beef lead gains<\/p>\n <\/p>\n Among the 20 products analyzed, unroasted coffee and frozen boneless beef stood out for more than offsetting the drop in U.S. exports.<\/p>\n <\/p>\n Brazil\u2019s 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.<\/p>\n <\/p>\n 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.<\/p>\n <\/p>\n Coffee and beef are among Brazil\u2019s key exports to the U.S., but they were less affected by the tariff hike, said Mr. Cagnin. \u201cThat\u2019s 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,\u201d he said. \u201cAnd both products are benefiting from favorable pricing trends\u2014coffee prices are rising, and so are beef prices.\u201d That, he added, gives exporters more leverage in price negotiations even as they adjust their destinations.<\/p>\n <\/p>\n China stood out as the top alternative market for frozen beef. After the tariffs were imposed, the U.S. share of Brazil\u2019s beef exports dropped from 8.6% in August\u2013September 2024 to 2.3% in the same months of 2025. China\u2019s share rose from 58.8% to 67.2%, with a sales increase of 81.8%. Exports to Mexico grew even more\u2014up 292.7%\u2014though from a smaller base. Mexico\u2019s share rose from 1.5% to 3.6%.<\/p>\n <\/p>\n \u201cExporters are exploring new markets beyond the U.S., and China is capitalizing on this,\u201d said Jos\u00e9 Augusto de Castro, president of Brazil\u2019s Foreign Trade Association (AEB). \u201cWhile Brazil looks to diversify its exports due to the tariff hike, China is expanding its share of global imports. We\u2019re hitting export records for meat, and China is taking that in, just as it did with soybeans in the past.\u201d<\/p>\n <\/p>\n Rising China dependence<\/p>\n <\/p>\n Mr. Cagnin warned that increasing dependence on China, especially for meat exports, is a concern. \u201cBrazil is already highly reliant on the Chinese market when you look at overall exports,\u201d he said.<\/p>\n <\/p>\n 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.<\/p>\n <\/p>\n \u201cThese trends highlight the need to reduce dependency on the U.S. and expand to new markets, such as the European Union and South America,\u201d he said. \u201cThe deeper shift brought by the tariff hike is that the U.S. can no longer be seen as a reliable partner.\u201d<\/p>\n <\/p>\n 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.<\/p>\n <\/p>\n For Mr. Castro, this could be due to Brazil\u2019s 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.<\/p>\n <\/p>\n Source: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n <\/p>\n ____________________________________________<\/strong><\/p>\n <\/p>\n 10\/13\/2025<\/p>\n <\/p>\n FAILURES IN ADOPTING NO-TILL FARMING INCREASE HERBICIDE USE IN BRAZIL<\/u><\/strong><\/p>\n A mainstay of sustainable practices, the system affects weed control when producers neglect other soil care practices, according to a study<\/em><\/strong><\/p>\n The incomplete adoption of no-till farming, a planting system that reduces the impact of agriculture on soil health, increases Brazilian soybean producers\u2019 costs with herbicides. This is the conclusion of the study \u201cBrazil as a world leader in soybean production: until when and at what cost?\u201d, conducted by the Escolhas Institute.<\/p>\n <\/p>\n 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.<\/p>\n <\/p>\n Juliana Luiz, research manager at the Escolhas Institute and one of the study\u2019s coordinators, says the reason for increased herbicide use is the widespread adoption of no-till farming without complementary soil conservation practices.<\/p>\n <\/p>\n 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. \u201cNo-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,\u201d says Ms. Luiz.<\/p>\n <\/p>\n 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, Goi\u00e1s, and Paran\u00e1, who cultivate a total of 88,100 hectares, to investigate their production practices. Escolhas analyzed 45 soil conservation and regeneration practices.<\/p>\n <\/p>\n 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.<\/p>\n <\/p>\n When farmers don\u2019t adopt complementary measures, Ms. Luiz says, no-till farming makes it difficult to combat weeds, requiring more herbicide applications. \u201cWith incomplete management, pesticide use needs to be increased.\u201d She adds that producers use crop succession\u2014soybean and corn, soybean and cotton\u2014but not rotation, which involves greater crop diversity in the same harvest.<\/p>\n <\/p>\n 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\u2019s full adoption. \u201cNo-till farming itself is widely adopted, with minimal soil disturbance. But permanent soil cover and crop diversification have low adoption,\u201d he explains.<\/p>\n <\/p>\n 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. \u201cBut with the full no-tillage system, productivity increases by 50% to 60%,\u201d says Mr. Debiasi.<\/p>\n <\/p>\n The full system requires more preparation time, but producers are gradually increasing their adoption of these management techniques, according to Mr. Debiasi. \u201cSoil 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,\u201d he says.<\/p>\n <\/p>\n 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.<\/p>\n <\/p>\n \u201cIn 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,\u201d Croplife said in a statement.<\/p>\n <\/p>\n 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\u2014about half that seen in smaller markets. \u201cThis result shows that Brazilian proportional use is moderate and consistent with that of the world\u2019s leading agricultural powers, contradicting the recurring perception of excessive use,\u201d the association said.<\/p>\n <\/p>\n Source: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n <\/p>\n ____________________________________________<\/strong><\/p>\n 10\/17\/2025<\/p>\n <\/p>\n MINING STOCKS RISE AS CHINA TIGHTENS EXPORT CONTROLS<\/u><\/strong><\/p>\n Shares of foreign companies with projects in Brazil surge; some reach record highs<\/em><\/strong><\/p>\n <\/p>\n Shares of foreign mining companies with rare earth projects in Brazil have risen since Thursday (9), following China\u2019s announcement that it would impose stricter controls on exports of the group of elements. Some of these stocks reached record highs this week.<\/p>\n <\/p>\n According to Valor Data, shares of Brazilian Rare Earths, listed on the Australian exchange, jumped 14.8% in just one week (from October 9 through 16), hitting an all-time high of A$5.72 on Thursday (16).<\/p>\n <\/p>\n Aclara Resources, listed on the Toronto Stock Exchange in Canada, gained 5% over the same period and also reached a record high on October 14, trading as high as C$4.45. As of Thursday (16), the stock was stable at C$3.15.<\/p>\n <\/p>\n Meanwhile, shares of Meteoric Resources and Viridis Mining, both listed in Australia, rose 15% and 15.08%, respectively, during the period.<\/p>\n <\/p>\n According to the latest edition of the Critical Minerals Investment Guide, published by Brazil\u2019s Ministry of Mines and Energy (MME), these four companies hold four or fewer of the ten rare earth mining projects currently in the pre-operational phase in the country.<\/p>\n <\/p>\n \u201cIf we look at what\u2019s happening globally, there are hundreds of projects under development, but the rise in the stock prices of miners operating in Brazil signals confidence, a bet that the country could become an important player compared to other regions,\u201d said Fernando Landgraf, professor at the Polytechnic School of the University of S\u00e3o Paulo (USP) and former president of the Technological Research Institute (IPT).<\/p>\n <\/p>\n Today, China dominates nearly the entire global rare earth supply chain, from production to processing. Brazil holds the world\u2019s second-largest reserves but still plays only a minor role in production. The country\u2019s only commercially operating mine, run by Serra Verde in Mina\u00e7u (Goi\u00e1s), began operations in 2024 and aims to produce 5,000 tonnes of rare earth oxides per year.<\/p>\n <\/p>\n Last year, global rare earth oxide production totaled 390,000 tonnes, with China accounting for 270,000 tonnes, or about 70% of the total, according to the U.S. Geological Survey (USGS).<\/p>\n <\/p>\n Under China\u2019s new rules, which will further tighten its grip on critical minerals, foreign companies will need Beijing\u2019s approval to export magnets that contain even trace amounts of rare earth materials of Chinese origin, or that were produced using Chinese extraction, refining, or magnet manufacturing technologies.<\/p>\n <\/p>\n Klaus Petersen, Brazil country manager for Viridis, said the company\u2019s stock likely rose in response to the pressure China has been putting on the West. He noted that this environment makes rare earth companies, including those still in pre-operational stages, appear as potential future alternatives to China\u2019s monopoly.<\/p>\n <\/p>\n \u201cChina has increased export restrictions on rare earths, setting conditions such as knowing where the material is going and whether it will be used for military applications, which they oppose but can\u2019t fully control,\u201d Mr. Petersen said. \u201cEveryone wants this material, especially for defense, not to mention electric vehicles. In any case, China has shut its doors even tighter, putting pressure on the entire Western world.\u201d<\/p>\n <\/p>\n Viridis\u2019s project lies on the geological structure of an ancient volcano in the Po\u00e7os de Caldas Alkaline Complex in Minas Gerais, with an expected average production of 9,400 tonnes of rare earth oxides per year, extracted from ionic clays that concentrate these elements.<\/p>\n <\/p>\n For Marcelo Carvalho, CEO of Meteoric, the recent rally in the company\u2019s shares will not necessarily accelerate investment decisions for its project, also located in the Po\u00e7os de Caldas complex. Meteoric expects to produce 13,600 tonnes of rare earth oxides per year.<\/p>\n <\/p>\n \u201cOur investment depends on hitting certain milestones, such as environmental licensing and economic feasibility studies, which aren\u2019t market-driven,\u201d he said. \u201cOf course, investor appetite grows, but the timing doesn\u2019t change much.\u201d<\/p>\n <\/p>\n Mr. Carvalho added that investors are closely watching U.S. dependence on Chinese rare earths. \u201cWhen the market sees restrictions, it invests in what could break those restrictions in the future,\u201d he said.<\/p>\n <\/p>\n As Valor reported in September, Viridis and Meteoric are pursuing strategies to diversify both financing sources and future buyers for their production, seeking paths that reduce exposure to Chinese influence.<\/p>\n <\/p>\n Aclara and Brazilian Rare Earths did not comment before publication.<\/p>\n <\/p>\n Aclara\u2019s project is located in Goi\u00e1s, and, in September, the company secured a commitment of up to $5 million from the U.S. International Development Finance Corporation (DFC) to fund its feasibility study in Brazil.<\/p>\n <\/p>\n Brazilian Rare Earths\u2019s project is located in Bahia, and the company announced this week it had raised 120 million Australian dollars (US$78 million) to accelerate the development of its rare earth initiatives in the country.<\/p>\n <\/p>\n Source: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n ____________________________________________<\/strong><\/p>\n 10\/20\/2025<\/p>\n <\/p>\n GOVERNMENTS, CORPORATIONS INCREASINGLY CONCERNED ABOUT HACKER ATTACKS<\/u><\/strong><\/p>\n Critical systems, such as payment systems and power plants, including nuclear ones, are among the targets; global losses could reach $57bn this year<\/em><\/strong><\/p>\n <\/p>\n Online scams are part of Brazilians\u2019 daily lives\u2014some of the most common involve criminals posing as relatives in need and asking for help paying an upcoming bill or faking the kidnapping of a family member and demanding ransom. In 2025, however, the country saw more serious incidents affecting the national financial system. Hackers broke into C&M and Sinqia, two companies that provide tech services for Pix, Brazil\u2019s instant payment system, and stole more than R$1.5 billion. In September, the Brazilian Federal Police arrested eight cybercriminals before they could pull off another billion-real hack against the Pix ecosystem, this time targeting Caixa Econ\u00f4mica Federal, a state-owned bank.<\/p>\n <\/p>\n These cases are examples of crimes that have increasingly concerned governments and large corporations: attacks on critical systems, such as payment platforms, port and airport navigation systems, and the operation of power plants, including nuclear power plants. It\u2019s no surprise that cybersecurity was the main topic of discussion at this year\u2019s Futurecom in S\u00e3o Paulo. Hacks into critical systems have disruptive potential and can have a similar effect to a terrorist attack, except that the attackers can be miles away and easily conceal their identities. This is what happened last September, when a cyberattack hit several European airports, including Heathrow (UK), Brussels (Belgium), and Dublin (Ireland), among others.<\/p>\n <\/p>\n The objective, in attacks on both government and corporate targets, is economic, whether by stealing large sums, demanding ransoms to \u201creturn\u201d tech systems\u2019 control to their original owners, or stealing citizens\u2019 data for use in other crimes. \u201cThere\u2019s [a lack of] punishment and difficulty in tracking and identifying these hackers. Furthermore, payments [to criminals] are made with cryptocurrencies, which can be untraceable,\u201d says M\u00e1rcio Kanamaru, leading partner for technology, media, and telecommunications (TMT) at KPMG.<\/p>\n <\/p>\n The losses reach hundreds of billions of dollars. According to a study by Cybersecurity Ventures, published last March, ransomware attacks are expected to cause losses of $57 billion this year, and the figure is expected to reach $276 billion per year by 2031. According to an IBM global survey on the cost of data breaches conducted with approximately 600 companies, these attacks caused, on average, losses of $4.4 million for companies. Furthermore, some industries face more problems than others. The average loss among healthcare companies, for example, is $7.42 million per system breach. Criminals target databases containing patient information, which are then used to defraud insurance companies and impersonate people, among other crimes.<\/p>\n <\/p>\n Losses vary from the ransom paid to criminals to the time it takes companies to fully restore their systems after a breach. The IBM survey indicates that 76% of organizations took more than 100 days to recover from an attack, while 26% took more than 150 days to resume normal operations\u2014only 2% of the companies surveyed said they took less than 50 days to restore their systems. \u201cThis calculation compares similar situations. We try to understand how long the company\u2019s system was down. But it\u2019s still a very subjective metric,\u201d explains Eliane Rodrigues, director of information security at VTEX.<\/p>\n <\/p>\n Another problem is underreporting, as many crimes are not reported to authorities to avoid damaging the organization\u2019s reputation. \u201cGenerally, companies don\u2019t want their names involved; they often don\u2019t even file a police report to avoid exposure,\u201d says Paulo Baldin, director of cybersecurity at CLA Brasil. Underreporting is even more common in companies targeted by organized crime. \u201cWhen a police operation and a company\u2019s name appear in connection with a criminal group, it causes significant reputational damage,\u201d emphasizes Paula Leite, director of business intelligence at security consultancy Control Risks.<\/p>\n <\/p>\n But cybercrimes can take on even greater dimensions, especially when attacks are carried out between nations. \u201cOne of the first measures Russia took against Ukraine was to attempt to take down the enemy country\u2019s digital infrastructure,\u201d highlights Carlos Barroso, IP head for Latin America at Nokia. \u201cThese invasions are intended to demoralize governments and destabilize regions,\u201d Mr. Barroso believes. \u201cOn a broader geopolitical level, it is possible to compromise energy and water infrastructure and cause very serious accidents for the population,\u201d adds Arthur Capella, general director of Tenable Brazil.<\/p>\n <\/p>\n These attacks are also becoming more frequent. In July, the Singapore Ministry of Defense said its critical systems were being targeted by hackers, allegedly Chinese, who were attempting to spy on essential sectors such as energy, telecommunications, and the public healthcare system. In October 2024, the servers of American Water, the largest public sanitation utility in the United States, were hacked, putting the water supply to 14 million Americans at risk. The company managed to shut down its systems before a major loss occurred, but the customer service portal, as well as the billing system, was down for a few days, creating problems for consumers.<\/p>\n <\/p>\n The biggest challenge in the coming years will be building mechanisms to mitigate these risks, as the cybersecurity industry faces challenges such as a lack of skilled labor and the need for more investment, says Mr. Kanamaru of KPMG. \u201cAs the trend is for infrastructure to become increasingly digital, it\u2019s important to consider a long-term government policy for cybersecurity. We will have to continually invest and have budgetary provisions to ensure these critical systems are always protected.\u201d<\/p>\n <\/p>\n Source: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n <\/p>\n ____________________________________________<\/strong><\/p>\n 10\/21\/2025<\/p>\n <\/p>\n BRAZIL BLACKOUT REVEALS ONGOING RISKS IN NATIONAL POWER GRID<\/u><\/strong><\/p>\n Fire in Eletrobras substation caused cascading outages across the country and raised reliability concerns<\/em><\/strong><\/p>\n \u00a0<\/em><\/strong><\/p>\n A fire at a power substation in the southern state of Paran\u00e1 triggered a nationwide blackout in the early hours of Tuesday (14), highlighting structural vulnerabilities in Brazil\u2019s electricity grid.<\/p>\n <\/p>\n The incident occurred at a reactor in the Bateias substation operated by Eletrobras, which is part of a 500-kilovolt (kV) high-voltage transmission line. The fire caused the shutdown of about 10 gigawatts (GW) of power. While some regions experienced only brief outages, others were left without electricity for over two hours.<\/p>\n <\/p>\n President Luiz In\u00e1cio Lula da Silva met with Mines and Energy Minister Alexandre Silveira at the presidential palace just hours after returning from an overseas trip to discuss the incident.<\/p>\n <\/p>\n The blackout activated the Regional Load Relief Scheme (ERAC), a safety protocol that automatically disconnects parts of the system to prevent broader damage. Authorities downplayed the event and rejected the notion of a systemic crisis. Mr. Silveira called it a one-off infrastructure issue, saying Brazil\u2019s national grid operator, ONS, responded promptly.<\/p>\n <\/p>\n ONS said the fire severed the connection between the southern grid and the Southeast and Central-West regions, prompting a preventive supply cut across the country in varying degrees. The Ministry of Mines and Energy classified the incident as a \u201csevere contingency.\u201d<\/p>\n <\/p>\n In a statement, ONS said it began a coordinated response to restore power as soon as the situation was identified. Electricity was reestablished in the North, Northeast, Southeast, and Central-West regions within 90 minutes. Full restoration in the South took about two and a half hours.<\/p>\n <\/p>\n ONS Director-General Marcio Rea said in the statement that the agency quickly reestablished the system, \u201cdemonstrating the robustness of the National Interconnected System (SIN).\u201d He described the event as a controlled power interruption caused by a \u201cfortuitous incident,\u201d the type of failure that could happen in any country.<\/p>\n <\/p>\n Eletrobras said the shutdown was triggered by a \u201creactor incident\u201d and that power was restored shortly after. \u201cONS will determine what led to the larger disturbance in the national system. Eletrobras will collaborate in identifying the causes,\u201d the company said.<\/p>\n <\/p>\n System resilience<\/p>\n <\/p>\n While experts acknowledged the system\u2019s general robustness, the scale of the outage raised concerns. Luiz Carlos Ciocchi, former ONS director-general, said the blackout was \u201cvery different\u201d from a 2023 incident that did not involve a fire. \u201cThe first question that needs answering is what exactly happened at the substation and why a fire in one component shut down an entire plant,\u201d he said.<\/p>\n <\/p>\n Mr. Ciocchi added that the automatic protection scheme worked as intended, but further analysis was needed. \u201cSystem security must always be a top priority in the power sector,\u201d he said. He noted that the fire happened during low consumption hours and in a region without high renewable output. \u201cThe key is understanding what went wrong.\u201d<\/p>\n <\/p>\n Power systems engineer Celso Torino pointed out that the 10GW outage was almost equivalent to power plant Itaipu\u2019s capacity of 14 GW.<\/p>\n <\/p>\n \u201cWe need to better understand why a reactor fire at a 500kV substation caused the complete shutdown of 750kV lines connecting Itaipu\u2019s 60-hertz output to Southeast Brazil,\u201d said Mr. Torino, a former Itaipu operations director. \u201cThe N-1 security criterion tells us this shouldn\u2019t happen.\u201d He referred to the N-1 standard, which requires the grid to withstand the loss of a key component without triggering cascading failures.<\/p>\n <\/p>\n Mr. Torino said the episode calls for a broader governance review of the national grid, including planning, operational stability, and consumer cost structures.<\/p>\n <\/p>\n Carlos Adolfo Pereira, who heads the transmission division at the Brazilian Infrastructure and Basic Industry Association (ABDIB), said it was too soon to conclude there was a substation failure and a more detailed assessment was needed.<\/p>\n <\/p>\n He noted that the industry has been investing in modernizing transmission systems, especially replacing outdated equipment. \u201cTransmission companies are expected to invest about R$40 billion through 2034 to upgrade old infrastructure,\u201d he said.<\/p>\n <\/p>\n \u201cReliability issue\u201d<\/p>\n <\/p>\n Edvaldo Santana, former director at energy regulator ANEEL and a columnist for Valor, said the blackout was one of the most significant in recent memory. The August 2023 outage cut 22.5GW of supply, while a 2010 failure involving Itaipu lines knocked out about 11GW.<\/p>\n <\/p>\n Mr. Santana questioned how a fire in a single reactor\u2014typically considered a minor contingency\u2014could affect the entire country, especially during low demand at around 12:30 a.m. \u201cEven for a critical substation, a reactor fire should have been contained locally. This is a serious reliability issue,\u201d he said.<\/p>\n <\/p>\n Industry sources described the Bateias substation as strategically important, part of a high-capacity 500kV line, but said it should have withstood the failure. The widespread impact indicates the system is \u201csensitive\u201d to minor incidents, they said.<\/p>\n <\/p>\n Experts warned the event reinforces a troubling conclusion: Brazil\u2019s grid remains \u201con a knife\u2019s edge,\u201d not due to energy shortages but because of a combination of structural weaknesses. These include fragile transmission infrastructure, equipment failures, excessive daytime solar generation followed by steep nighttime demand ramps, and networks that remain ill-equipped for extreme weather events.<\/p>\n <\/p>\n Repeat of a known pattern<\/p>\n <\/p>\n The event echoed a familiar pattern seen since the August 15, 2023 blackout. An ONS report blamed that outage on voltage control failures in wind and solar farms. Since then, the operator has adopted a more conservative management approach.<\/p>\n <\/p>\n Still, Brazil has experienced at least five major blackouts since then. Even minor incidents have had an impact. In August last year, a short circuit at an Eletrobras substation caused by a stray kite left 942,000 households without power in S\u00e3o Paulo and Guarulhos.<\/p>\n <\/p>\n Heavy rains also knocked down transmission lines and damaged dams in Rio Grande do Sul, while storms cut power to millions in the S\u00e3o Paulo metro area. In both cases, authorities struggled to respond quickly, leaving consumers in the dark for days.<\/p>\n <\/p>\n Specialists advocate for capacity auctions and technologies such as batteries and reversible power plants to improve grid resilience.<\/p>\n <\/p>\n \u201cUntil 2021, utilities invested R$18 billion a year. By 2025, that number will rise to R$46 billion. From 2025 to 2029, we expect R$235 billion in total investments, with 40% focused on modernizing networks,\u201d said Ricardo Brand\u00e3o, executive director for regulation at the Brazilian Association of Electricity Distributors (ABRADEE).<\/p>\n <\/p>\n The blackout comes just as Brazil prepares to transition from the dry season to the rainy period, which starts in November. There is still uncertainty over rainfall patterns and the recovery of hydropower reservoirs. Operational challenges are compounded by the rapid growth of renewables and pricing distortions that create additional costs for consumers and threaten the sector\u2019s balance.<\/p>\n <\/p>\n Brazil narrowly avoided two national blackouts this year, one in April and another on Father\u2019s Day, August 10. With low daytime demand, rooftop and small-scale solar generation surged to record levels, forcing ONS to disconnect large wind and solar parks to avoid overloads. Such incidents occur when the grid lacks infrastructure to carry excess generation, or when supply outpaces demand.<\/p>\n <\/p>\n Source: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n <\/p>\n ____________________________________________<\/strong><\/p>\n <\/p>\n <\/p>\n 10\/21\/2025<\/p>\n <\/p>\n NEW HACKER ATTACK TARGETS FICTORPAY, A BUSINESS SERVICES COMPANY<\/u><\/strong><\/p>\n According to one source, Brazil\u2019s Central Bank observed unusual financial transactions made through FictorPay and alerted Celcoin, the company to which the fintech is affiliated<\/em><\/strong><\/p>\n <\/p>\n FictorPay, a fintech, was the target of a hacker attack that stole company funds on Sunday. The information was first reported by Plat\u00f4 Br and confirmed by Valor.<\/p>\n <\/p>\n FictorPay offers financial services for businesses, such as accounts, loans, advance payments, and payment tools. According to one source, Brazil\u2019s Central Bank observed unusual financial transactions through FictorPay on Sunday and alerted Celcoin, the company to which FictorPay is affiliated. Celcoin is linked to Pix, the Central Bank\u2019s digital payment system, but FictorPay is not.<\/p>\n <\/p>\n Sources following the case say that it was \u201ca direct attack\u201d on FictorPay, unlike other attacks occurred this year. In these other cases, the attacks were carried out through information technology service providers (ITSPs), which are the companies that connect financial and payment institutions, on the one hand, and BC\u2019s systems, such as Pix itself, on the other.<\/p>\n <\/p>\n According to the sources, no systems managed by the Central Bank were attacked.<\/p>\n <\/p>\n In a statement, FictorPay said it was notified of \u201cirregular activity in the technology environment of a service provider that serves several companies, including [our] company.\u201d According to the fintech, \u201cthe incident is being investigated by the provider itself, with the support of information security specialists, and to date, there is no record of any impact on FictorPay\u2019s own systems.\u201d<\/p>\n <\/p>\n Celcoin also released a statement saying that there was no invasion, attack, or compromise of its technology infrastructure or transactional environment. \u201cAtypical activity was identified in a customer\u2019s account, which was promptly detected by our monitoring systems. As soon as the behavior was noticed, we preventively blocked the transactions and immediately alerted the customer.\u201d<\/p>\n <\/p>\n \u201cAnalysis indicates that the origin of the incident lies with a white-label application solutions provider used by this customer and other companies in the market, impacting several BaaS and Core Banking players, with no connection to Celcoin,\u201d it stated. The company says it is \u201csupporting the customer in the investigation and recovery procedures.\u201d<\/p>\n <\/p>\n When contacted, the Central Bank declined to comment.<\/p>\n <\/p>\n Source: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n <\/p>\n ____________________________________________<\/strong><\/p>\n 10\/21\/2025<\/p>\n <\/p>\n BANKS, FINTECHS DUEL OVER TAXATION<\/u><\/strong><\/p>\n Traditional institutions have higher nominal tax rates and advocate for equality; rivals see lower effective rates<\/em><\/strong><\/p>\n <\/p>\n The Brazilian Federation of Banks (Febraban) has intensified its conflict with fintechs over taxation. According to Valor, the dispute escalated behind the scenes regarding Provisional Presidential Decree 1303, when fintechs opposed an increase in the Social Contribution on Net Profit (CSLL) rate that would apply to them and, in response, proposed raising the rate for traditional banks.<\/p>\n <\/p>\n In a report released on Monday, Febraban outlines arguments against fintechs paying a lower CSLL rate and advocates for tax fairness. The organization strongly criticizes Nubank. \u201cIt seems unjustifiable that the world\u2019s most profitable financial institution (The Banker), with the highest valuation in the banking industry (Bloomberg), with bank explicitly in its name, 100 million accounts, the second-largest card portfolio, R$200 billion in personal loans, and 67% annual interest for households, pays a nominal CSLL rate lower than that of banks. This is very difficult to explain!\u201d stated Febraban, which represents traditional banks.<\/p>\n <\/p>\n When contacted, Nubank said it was pleased to see that Febraban finally acknowledged that fintechs already pay higher effective tax rates than large banks. However, it alleges that the federation uses biased arguments to harm competition and penalize fintechs that have promoted financial inclusion in Brazil.<\/p>\n <\/p>\n \u201cNubank is proud to have spearheaded a transformation in the sector, increasing competition and access to credit, and reducing interest rates, always focused on offering the best products and services to its customers. We did this through an efficient business model, technological innovation, regulatory compliance, and paying an effective tax rate in Brazil of 34.1%, the highest among the largest companies in the sector,\u201d it said in a statement.<\/p>\n <\/p>\n For Febraban, banks and fintechs should pay the same tax rate. Fintechs argue that while banks\u2019 nominal tax rate is higher, their effective tax rate is lower due to factors that reduce it. Febraban says that discussing the effective tax rate without showing the tax calculations is a failure to engage in the debate.<\/p>\n <\/p>\n The study also responds to comments by Roberto Campos Neto, former president of Brazil\u2019s Central Bank and current vice president and global head of public policy at Nubank, who said last week that fintechs have a higher effective tax rate than banks.<\/p>\n <\/p>\n Source: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n __________________________________________<\/strong><\/p>\n \u00a0<\/u><\/strong><\/p>\n 10\/23\/2025<\/p>\n \u00a0<\/u><\/strong><\/p>\n NORTHEAST INDUSTRY BETS ON RENEWABLE ENERGY<\/u><\/strong><\/p>\n The shift toward clean energy could help attract new foreign investors to the region<\/em><\/strong><\/p>\n <\/p>\n With 86.8% of its installed power already derived from renewable sources\u2014and set to receive 63% of Brazil\u2019s upcoming solar projects and 89% of new wind projects\u2014the Northeast region has emerged as the natural hub for investments in \u201cpowershoring,\u201d the relocation of industrial chains seeking decarbonization and energy security. The region also hosts 18 industrial hubs with energy-intensive operations that could be transitioned to clean energy sources.<\/p>\n <\/p>\n These findings are part of a study by Ceplan, a consulting firm, which will be presented on Thursday (23) at a seminar on accelerating powershoring investments in the region. The event is organized by the Northeast Consortium, Banco do Nordeste, and the Climate and Society Institute (iCS).<\/p>\n <\/p>\n According to the report, the 18 industrial zones are distributed as follows: two in Maranh\u00e3o (A\u00e7ail\u00e2ndia and S\u00e3o Lu\u00eds); three in Cear\u00e1 (Caucaia, Eus\u00e9bio, and Maracana\u00fa); four in Pernambuco (Cabo de Santo Agostinho, Igarassu, Ipojuca, and Paulista); four in Alagoas (Coruripe, Marechal Deodoro, Rio Largo, and S\u00e3o Lu\u00eds do Quitunde); and five in Bahia (Cama\u00e7ari, Candeias, Feira de Santana, Sim\u00f5es Filho, and Vit\u00f3ria da Conquista).<\/p>\n <\/p>\n These cities are home to industries that require high energy consumption, such as metallurgy and steelmaking, chemicals, food production, non-metallic minerals, rubber and plastic manufacturing, textiles, and automotive production.<\/p>\n <\/p>\n \u201cThese industries serve both the domestic and export markets and could transition to renewable energy as a strategy to attract foreign investors who must demonstrate to shareholders that their operations are decarbonized,\u201d explains Paulo Ferraz Guimar\u00e3es, an economist and one of the study\u2019s authors.<\/p>\n <\/p>\n He notes that shifting an industry\u2019s energy source is not a simple process. \u201cIt often requires adjustments in procedures, machinery, and possibly in production methods,\u201d he says. However, he adds that this transition also represents an opportunity to adopt more efficient and sustainable production processes and strengthen integration into global value chains.<\/p>\n <\/p>\n The conversion of existing industrial plants is only one path to powershoring expansion in Brazil. With 45.1 gigawatts of installed capacity and another 104.6 GW projected for development, along with robust port infrastructure and proximity to major consumer markets such as Europe and the United States, the Northeast is a natural destination for decarbonization projects, says Jorge Arbache, economist at the University of Bras\u00edlia and Valor columnist, who coined the term \u201cpowershoring.\u201d<\/p>\n <\/p>\n \u201cThe question,\u201d he points out, \u201cis why this agenda has not progressed as quickly as anticipated.\u201d<\/p>\n <\/p>\n \u201cI believe there are two main explanations,\u201d says Mr. Arbache. \u201cFirst, trade in green products faces multiple obstacles from developed countries, including both tariff and non-tariff barriers, which have become major roadblocks to progress. This agenda creates significant friction in sectors that lack the same conditions for producing, for example, green steel, green ceramics, or green hydrogen. Direct competition in these areas would be clearly detrimental to some companies,\u201d he notes, citing as an example the Carbon Border Adjustment Mechanism (CBAM)\u2014a tax the European Union will begin imposing in 2026 on the carbon emissions embedded in imported products.<\/p>\n <\/p>\n \u201cThe issue is that without trade, there is no investment,\u201d Mr. Arbache summarizes. \u201cMany countries still fail to grasp that powershoring is essential to combat green inflation\u2014the rise in prices driven by the need to invest in more sustainable processes and inputs,\u201d he laments.<\/p>\n <\/p>\n The second challenge, he says, lies in the lack of coordination and political commitment among the federal and state governments to advance the agenda. \u201cThe Nova Ind\u00fastria Brasil (NIB) program, for instance, only touches on the issue indirectly. Companies need to see a stronger signal of commitment, such as the creation of dedicated funds and de-risking mechanisms to support these initiatives. States also need better coordination; they can\u2019t each go their own way,\u201d he argues.<\/p>\n <\/p>\n A similar lack of coordination can be seen in financing, adds Mr. Guimar\u00e3es. While the country faces energy oversupply at certain times of day\u2014forcing the National Electric System Operator (ONS) to instruct renewable plants to reduce or halt generation (curtailment)\u2014most available financial resources remain focused on expanding supply rather than optimizing use.<\/p>\n <\/p>\n Despite these hurdles, Mr. Arbache points out that fuels have been one of the few areas showing faster progress. The former vice president for the private sector at the Development Bank of Latin America (CAF) explains: \u201cIt\u2019s one of the few areas where compliance speaks for itself. Decarbonization rules have already been established, and companies are required to meet them\u2014it\u2019s not optional. But other high-emission sectors, such as steel, aluminum, and petrochemicals, which together account for roughly 30% of global emissions, also need to decarbonize. There\u2019s no alternative.\u201d<\/p>\n <\/p>\n He adds that the key challenge is finding financially viable solutions. \u201cThese solutions don\u2019t exist in many parts of Europe, the United States, or Japan. In fact, several of these countries have scaled back their energy transition investments, which only widens the opportunity for Brazil and the Northeast to take the lead.\u201d<\/p>\n <\/p>\n Source: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n <\/p>\n ____________________________________________<\/strong><\/p>\n \u00a0<\/u><\/strong><\/p>\n 10\/27\/2025<\/p>\n \u00a0<\/u><\/strong><\/p>\n BRAZIL\u2019S CARBON MARKET TAKES SHAPE AS CORNERSTONE OF INDUSTRIAL POLICY<\/u><\/strong><\/p>\n Economist Cristina Reis, tapped to lead the new Carbon Market Secretariat, says the initiative will drive innovation and position Brazil in global value chains<\/em><\/strong><\/p>\n <\/p>\n Brazil\u2019s carbon market is just the beginning. \u201cWe\u2019re setting up something deeply important and strategic for the nation,\u201d said economist Cristina Reis, chosen to head the Extraordinary Secretariat for the Carbon Market, which the Ministry of Finance is now structuring. \u201cThe carbon market is pure industrial policy,\u201d she added. \u201cIt\u2019s the future.\u201d<\/p>\n <\/p>\n The new secretariat will act as the executive body, giving the initial push to the carbon market law enacted in December. Under this law, Brazil will have a system with emission limits and tradable allowances among companies that emit the most carbon, a \u201ccap-and-trade\u201d mechanism. The ministry will define methodologies, monitor progress, and allocate emission quotas across sectors.<\/p>\n <\/p>\n In Ms. Reis\u2019s view, the step is far broader. \u201cDecarbonization projects will unleash a vast network of science, technology, and innovation, integrating Brazil into strategic global value chains,\u201d she said. Ms. Reis has not yet been officially appointed to the position and continues to serve as undersecretary for sustainable economic development at the Finance Ministry. She plans to invite Jos\u00e9 Pedro Neves, her right-hand man, to serve as deputy secretary. \u201cWe must prepare to have a strong, large, and powerful exchange\u2014one that\u2019s not dependent on others,\u201d she said.<\/p>\n <\/p>\n Agency within two years<\/p>\n <\/p>\n \u201cWe hope to establish, within two years, a governing body similar to a regulatory agency. We need something permanent and robust,\u201d she said. \u201cBut since such a decision takes time, we thought it best to create an interim structure to lay the groundwork for the regulated carbon market\u2014and later transition to a more definitive body.\u201d<\/p>\n <\/p>\n The undersecretariat where she currently works\u2014the Undersecretariat for Sustainable Economic Development under the Finance Ministry\u2019s Secretariat for Economic Policy\u2014will continue handling taxonomy, the bioeconomy plan, and several other topics. \u201cThe carbon market, however, will move to the new structure,\u201d she noted.<\/p>\n <\/p>\n New structure<\/p>\n <\/p>\n \u201cWe\u2019ll have two undersecretariats,\u201d Ms. Reis added. \u201cOne will handle regulation and methodologies and will be led by Ana Paula Machado, currently undersecretary of the Climate Plan at the Ministry of the Environment. She knows the subject well\u2014she worked at the National Civil Aviation Agency (ANAC). She participated in Corsia (the Carbon Offsetting and Reduction Scheme for International Aviation, a program of the International Civil Aviation Organization for reducing and offsetting CO\u2082 emissions from international flights).\u201d<\/p>\n <\/p>\n \u201cThis undersecretariat will have two divisions: one for methodologies and another for regulatory impact analysis. The regulatory impact team will define which activities, sources, facilities, sectors, and greenhouse gases are covered. The other will accredit carbon-credit methodologies that may be accepted as offsets in the regulated market.\u201d<\/p>\n <\/p>\n Regulated and voluntary markets<\/p>\n <\/p>\n \u201cThe voluntary market already exists,\u201d Ms. Reis said. \u201cIt\u2019s based on bilateral transactions\u2014contracts between a company and another party that reduce or remove carbon in any sector.\u201d<\/p>\n <\/p>\n \u201cLaw 15,042 created the regulated market. It requires large emitters\u2014those releasing more than 25,000 tonnes of greenhouse gases per year\u2014to decarbonize,\u201d she said.<\/p>\n <\/p>\n To that end, the governing body will set an emission cap and the allowances each regulated entity will have to meet its targets\u2014the \u201ccap and trade.\u201d \u201cEach regulated company will have its own allowance: if it meets it, great; if not, it will have to buy from someone with a surplus.\u201d<\/p>\n <\/p>\n \u201cOur system allows companies to buy carbon credits from the voluntary market, but not just any credit,\u201d Ms. Reis noted. \u201cIt must be generated under a methodology accredited by the governing body\u2014and that\u2019s the job of this division.\u201d<\/p>\n <\/p>\n \u201cFor example, a cement producer that has already reached its emission limit has two options: it can buy credits from another company that has reduced emissions beyond its quota, or it can go to the voluntary market and purchase credits from a forest regeneration project using a methodology accredited by the secretariat.\u201d<\/p>\n <\/p>\n Strategic planning<\/p>\n <\/p>\n \u201cThe other undersecretariat will be led by Thiago Barral, former National Secretary for Energy Transition and Planning at the Ministry of Mines and Energy,\u201d Ms. Reis said. \u201cIt will focus on implementation and will include two divisions: one for MRV studies\u2014monitoring, reporting, and verification\u2014and another for registries.\u201d<\/p>\n <\/p>\n \u201cThe MRV division will determine how companies will report their emissions, how monitoring and verification will be carried out, and how this information will feed into the National Allocation Plan. This plan will set emission limits, annual reduction targets, and rules for allocating credits\u2014whether free or paid.\u201d<\/p>\n <\/p>\n \u201cThe other division will create the system\u2019s registry,\u201d she explains. \u201cThat\u2019s where the regulated companies will submit their data: \u2018This year, I emitted this much, from this activity.\u2019 This dataset will help us continuously refine the policy.\u201d<\/p>\n <\/p>\n Strong exchange<\/p>\n <\/p>\n \u201cThis undersecretariat will also structure how, in the future, the registry and the system\u2019s assets\u2014the allowances to be distributed\u2014will interact with the stock exchanges,\u201d Ms. Reis added. \u201cNow that we have a regulated carbon market taking shape, a law that can boost the voluntary market, and international transfers that may eventually be traded on exchanges, we must prepare to have a strong, large, and powerful exchange\u2014one that is not dependent on others.\u201d<\/p>\n <\/p>\n \u201cAs for whether we\u2019ll work with the S\u00e3o Paulo or Rio de Janeiro stock exchange, no decision has been made yet,\u201d she added.<\/p>\n <\/p>\n Liquidity<\/p>\n <\/p>\n \u201cCarbon credits can be traded on the stock exchange,\u201d Ms. Reis noted. \u201cToday, volumes are still small, but they tend to grow.\u201d<\/p>\n <\/p>\n \u201cThe system\u2019s assets\u2014that is, the allowances\u2014have been defined as securities under the governance and regulation of the Securities and Exchange Commission (CVM). This ensures the desired liquidity for both the allowances and carbon credits, giving market participants more confidence in these transactions.\u201d<\/p>\n <\/p>\n \u201cThe financial dimension of carbon markets is highly relevant,\u201d she said.<\/p>\n <\/p>\n Start<\/p>\n <\/p>\n \u201cWe\u2019ll have a testing phase and distribution of allowances within the regulated system\u2014aimed at companies that emit more than 25,000 tonnes of CO\u2082 per year,\u201d Ms. Reis said. \u201cThis phase will begin in four years.\u201d<\/p>\n <\/p>\n \u201cAfter that, there will be a mandatory phase, when companies will have to buy these allowances through auctions\u2014the law sets this to happen in five years,\u201d she added.<\/p>\n <\/p>\n \u201cFour years is the time this secretariat has to get everything ready\u2014conduct studies, draft regulations, and issue the necessary ministerial ordinances.\u201d<\/p>\n <\/p>\n Building it up<\/p>\n <\/p>\n \u201cWe\u2019re putting in place something of enormous importance that could have major relevance for the country,\u201d Ms. Reis said. \u201cMinister Fernando Haddad is being bold and innovative by establishing this secretariat within the Finance Ministry. He sees it as both a business opportunity and a way to integrate Brazil technologically into strategic value chains.\u201d<\/p>\n <\/p>\n \u201cThese decarbonization projects will unleash a vast network of science, technology, and innovation,\u201d she added. \u201cWe already have universities, laboratories, and research institutes developing solutions to decarbonize different sectors\u2014what we lacked was demand and scale.\u201d<\/p>\n <\/p>\n \u201cWith regulation, the carbon market can foster this ecosystem related to science, technology, and innovation, while also strengthening the economic, financial, and legal dimensions of the transition,\u201d she added.<\/p>\n <\/p>\n \u201cJust imagine how many consulting firms will emerge,\u201d Ms. Reis said. \u201cWe expect a significant impact on the corporate services sector. We must start right away\u2014and do so transparently. We\u2019ll also have to develop an engagement and communication plan. There\u2019s a lot of pressure and anticipation surrounding the carbon market. We must be ready\u2014there are countless possibilities, and now it\u2019s up to the government to regulate and chart this path.\u201d<\/p>\n <\/p>\n Sectors<\/p>\n <\/p>\n \u201cThe question of which sectors we\u2019ll begin with is the most important one,\u201d Ms. Reis said. \u201cThe regulatory impact analysis will determine that\u2014we don\u2019t yet have an answer. This will be one of the first decisions the secretariat will make.\u201d<\/p>\n <\/p>\n \u201cThe testing phase with free allowances will last four years,\u201d she said. \u201cWe don\u2019t call them licenses, as the Europeans do; the law uses the term allowances. In Portuguese, license sounded like permission to pollute\u2014and that\u2019s not the idea. It\u2019s an allowance that must be complied with.\u201d<\/p>\n <\/p>\n Certification companies<\/p>\n <\/p>\n \u201cThis is one of the areas causing the most excitement,\u201d Ms. Reis said. \u201cThe certification sector is highly concentrated\u2014there are only a few players doing this work. The law stipulates that certification firms must have a minimum capital in Brazil. So, if a company is foreign, it will have to register a business taxpayer number here. It can be headquartered abroad, but it must open a branch in Brazil.\u201d<\/p>\n <\/p>\n \u201cAnother major discussion concerns methodologies\u2014whether they\u2019re appropriate for our reality,\u201d she added. \u201cThat\u2019s why there\u2019s a growing defense of national certification companies, with homegrown methodologies developed by Embrapa and universities. We believe it\u2019s the right time to promote competition in this sector.\u201d<\/p>\n <\/p>\n \u201cWhat\u2019s essential,\u201d she said, \u201cis to properly assess the environmental benefit and the generation of carbon credits\u2014whether the project removes, reduces, retains, or captures emissions. There are many different methodologies.\u201d<\/p>\n <\/p>\n \u201cThe next step,\u201d she added, \u201cis international recognition, which is still limited today. This debate is already underway, and Brazil will continue to push for clarity\u2014that the needs of the Global South are different. But we also have to look at our companies and ask whether they want to export carbon credits or seek an international seal of approval. And again, that\u2019s precisely the role of the methodology undersecretariat.\u201d<\/p>\n <\/p>\n Industrial policy<\/p>\n <\/p>\n \u201cI\u2019m a specialist in sustainable industrial policy,\u201d Ms. Reis said. \u201cA country\u2019s development depends on transforming its productive structure to reduce technological dependence. That means developing our own technologies\u2014with inclusion, reduced inequality, and environmental and climate sustainability.\u201d<\/p>\n <\/p>\n \u201cThe carbon market is industrial policy,\u201d she said. \u201cWe\u2019ll define the sectors that will be included, the methodologies, and the allocation of allowances\u2014all of which will become pathways for industrial development.\u201d<\/p>\n <\/p>\n \u201cEurope has had its carbon market, the ETS (Emissions Trading System), for 20 years,\u201d she noted. \u201cIt has generated \u20ac200 billion in revenue. And the use of that revenue has also been strategic: Europeans channeled it into three funds\u2014for innovation, just transition, and modernization. These financed the modernization and innovation of European industry, which had been struggling to compete with Chinese and American companies.\u201d<\/p>\n <\/p>\n \u201cIn our case, 75% of the revenue from Brazil\u2019s carbon market will go to the Climate Fund, with a portion dedicated to supporting forest projects involving traditional communities and Indigenous peoples. We also have the capacity to promote the development of future technologies.\u201d<\/p>\n <\/p>\n \u201cSo, the system must be very well regulated, and with a strategic national vision\u2014one that ensures Brazil plays a stronger role in global value chains,\u201d she added. \u201cThe carbon market belongs to the future.\u201d<\/p>\n <\/p>\n Social cost of carbon<\/p>\n <\/p>\n \u201cThe carbon market is one more instrument for mitigation,\u201d Ms. Reis said. \u201cIt\u2019s not the only one, but it\u2019s a consistent one. Today, about 40 jurisdictions apply a carbon price, covering almost 30% of global emissions. That\u2019s significant.\u201d<\/p>\n <\/p>\n \u201cThe regulated market targets large emitters, those causing harm to a public good, and ensures they internalize the social cost of carbon,\u201d she said.<\/p>\n <\/p>\n Proposal for COP30<\/p>\n <\/p>\n \u201cWe\u2019ll be working on Brazil\u2019s proposal for the Open Coalition of Regulated Carbon Markets, which should be presented at the United Nations Climate Conference (COP30) in Bel\u00e9m, next November,\u201d Ms. Reis said.<\/p>\n <\/p>\n Source: Valor International<\/p>\n https:\/\/valorinternational.globo.com<\/a><\/p>\n ____________________________________________<\/strong><\/p>\n 10\/28\/2025<\/p>\n <\/p>\n U.S. EXPECTED TO GAIN GROUND IN BRAZILIAN PULP EXPORTS<\/u><\/strong><\/p>\n Shifts in China\u2019s industry open new opportunities for Brazil in the American market<\/em><\/strong><\/p>\n <\/p>\n Brazil\u2019s share of the global pulp market is expected to grow by 6%, reaching 34% by 2030, according to Rabobank. The increase will be driven by new mill capacity and a shift from softwood (pine) to hardwood (eucalyptus) pulp. Although China remains the leading buyer of Brazilian hardwood pulp, the rapid expansion of integrated pulp production in the country is likely to reduce import volumes in the coming years\u2014creating an opportunity for the United States, currently the second-largest destination, to gain ground in Brazil\u2019s export portfolio.<\/p>\n <\/p>\n Traditionally, Chinese producers faced high costs and limited wood availability, which made them heavily dependent on imported market pulp. However, during the real estate crisis in 2021, surplus wood originally intended for construction was redirected toward integrated pulp production.<\/p>\n <\/p>\n According to Rabobank, China\u2019s integrated hardwood pulp capacity surged from 5,000 tonnes in 2016 to 9,500 tonnes in 2024. The bank projects that by 2027, production will reach 14,500 tonnes\u2014a nearly 53% increase.<\/p>\n <\/p>\n \u201cOf the projects planned in the past three years, no one had anticipated this development,\u201d says Andres Padilla, analyst at Rabobank. He notes that the market will likely adjust, with the most efficient producers filling the space left by less competitive ones. Even so, part of the displaced demand will need to find new markets\u2014and the U.S. is emerging as a promising destination for Brazilian fiber.<\/p>\n <\/p>\n In 2024, Brazil supplied 82% of U.S. short-fiber pulp imports, totaling 2 million tonnes, according to Rabobank\u2019s report. This marks a 74% increase from a decade earlier and an average annual growth rate of 4.7%. The pulp is primarily used for tissue paper production, including toilet paper and facial tissues.<\/p>\n <\/p>\n In the long-fiber segment, typically used for paper packaging, the U.S. market has long been dominated by Canada. However, post-pandemic shifts in global supply chains have opened room for Brazilian and European producers. In 2024, Brazil accounted for 10% of U.S. softwood pulp imports\u2014around 300,000 tonnes\u2014while Canada\u2019s share fell to 75%, according to the bank.<\/p>\n <\/p>\n \u201cBrazil is well-positioned. In addition to managing exchange rate volatility more effectively, it benefits from low production costs and competitive logistics,\u201d says Mr. Padilla.<\/p>\n <\/p>\n This strength, he explains, is the result of several factors\u2014including the short seven-year rotation cycle of eucalyptus, advances in genetic research that boosted productivity, and large-scale investments in integrated pulp mills.<\/p>\n <\/p>\n Beyond Suzano\u2019s Cerrado Project, companies such as Chile\u2019s Arauco and CMPC, as well as Indonesia\u2019s Bracell, are expanding operations in Brazil. There are also expectations for a second production line at the Eldorado mill in Tr\u00eas Lagoas, Mato Grosso do Sul. With these new capacities, Rabobank estimates that Brazil\u2019s pulp exports will rise from 20 million tonnes today to 25 million tonnes by 2030.<\/p>\n <\/p>\n Another factor supporting this growth, Mr. Padilla notes, is the price gap between hardwood and softwood pulp, known as the \u201cspread.\u201d Currently, hardwood pulp sells for about $250 to $300 less per tonne on the U.S. East Coast market, according to Rabobank.<\/p>\n <\/p>\n \u201cThere\u2019s a clear economic incentive for hardwood pulp to gain market share in the U.S.,\u201d Mr. Padilla explains. \u201cThe spread is wide right now, and the supply and demand dynamics suggest it will be difficult to close that gap in the short to medium term.\u201d<\/p>\n <\/p>\n Beyond pricing, Brazil\u2019s advantage lies in its long-standing commercial relationships with U.S. buyers and its reputation for reliability and quality. \u201cBrazilian suppliers already have deep, consistent partnerships with U.S. clients, meeting their needs efficiently,\u201d Mr. Padilla adds.<\/p>\n <\/p>\n Against this backdrop, the White House\u2019s decision to impose a 10% tariff on Brazilian pulp last year was, according to him, \u201ca shot in the foot.\u201d It is no coincidence, he says, that Washington quickly reversed course and eliminated the tariff.<\/p>\n <\/p>\n Source: Valor International<\/p>\n