The United States has imposed steep tariffs on Brazil, but the president’s government has contacted the World Trade Organization for consultations.
Under the condition of anonymity, sources from the Brazilian government confirmed the petition to news outlets like AFP and The Associated Press on Wednesday.
In response to Brazil’s prosecution of a former far-right leader, Jair Bolsonaro, the country is trying to get a 50 percent tariff removed from Brazilian exports.
The highest tariff Trump has ever imposed on any nation in August came into effect on Wednesday. However, unless a deal is reached in advance, India is anticipated to experience 50% tariffs later this month.
The first step in the World Trade Organization’s trade dispute resolution process is typically a consultation request. Although its methods for reaching agreements can be drawn drawn drawn from a variety of sources, the organization serves as an international arbitrator in economic disputes.
According to Vice President of Brazil, Geraldo Alckmin predicted that the strict taxes will apply to 35.9% of Brazil’s exports to the US. About 4 percent of Brazil’s total exports are exported globally.
Retaliation for the Bolsonaro case
In a letter to Lula and published online, Trump made the current tariff rate public on July 9.
Trump used the correspondence to launch a barbed attack against the Brazilian government for prosecuting Bolsonaro, an ally, over an alleged coup attempt, in contrast to other tariff-related letters from the time.
“The way that Brazil treated former president Bolsonaro, a highly respected leader throughout the world, including by the United States, is a disgrace,” Trump wrote in a statement.
Bolsonaro publicly doubted the outcome of a 2022 presidential race that resulted in his losing to Lula, much like Trump did after his electoral defeat in 2020.
Police and prosecutors allege Bolsonaro and his associates conspired to overturn the election’s outcomes behind the scenes.
In order to call up the military and revoke civil rights, Bolsonaro might declare a “state of siege” during his final days as president. Then, according to prosecutors, a new election would have been called.
Another allegedly popular idea was to poison Lula, according to Bolsonaro’s supporters.
Bolsonaro has defended himself, calling the prosecution politically biased, despite the fact that Trump has previously faced criminal charges for allegedly trying to sway a vote’s outcome.
In the letter from July 9 he wrote, “This trial shouldn’t be occurring.” “It should end right away as a witch hunt is occurring”!
Trump’s tariff threat came a few weeks later, with an executive order that made his accusations even more severe.
Trump claimed that Brazil had “politically persecuted” Bolsonaro in an interview and that it had committed “human rights abuses,” including the suppression of free speech, as part of efforts to combat disinformation on social media.
Trump argued that the government of Brazil’s current policies, practices, and actions threaten the country’s national security, foreign policy, and economy.
“Members of the Brazilian government have taken actions that interfere with the American economy, violate human rights, and harm the country’s commitment to protecting its citizens and businesses,” according to the government of Brazil.
Lula makes a statement.
However, the executive order included an annex outlining the new US tariffs for some products. Among them were petroleum products, orange juice, coal, iron, and tin.
Lula repeated this claim in an interview with Reuters on Wednesday that Trump is preventing negotiations to reach a trade agreement between their two nations.
I won’t hesitate to call Trump when my gut tells me he’s ready to talk, Lula told Reuters. However, I now believe he doesn’t want to talk, according to my intuition. And I won’t let myself down.
The left-wing president, who has three terms, said he was aware of Trump’s tariff threats as a result of US intervention in Brazil and Latin America in general.
According to Lula, “We already pardoned the US intervention in the coup of 1964,” referring to the Brazilian president’s ouster that sparked a two-decade military dictatorship.
“This is not a small intervention, though.” The American president appears to believe he has the authority to set up laws in a nation like Brazil. It is unacceptable.
Lula added that he intends to reform Brazil’s “national sovereignty” to boost the state’s economy.
Lula also stated that he would contact the BRICS economic trading bloc, which had members named after its founding members: Brazil, Russia, India, China, and South Africa, with the tariffs in place. Trump, however, has threatened an additional 10% tariff on any BRICS-affiliated nation.
Since Trump’s most recent slate of tariffs in July, warning that consumers around the world will be penalized, Lula has been running an English media blitz.
For instance, Lula gave his first interview to The New York Times newspaper in his nearly 13 years in late last month.
Lula expressed ambivalence when the Times inquired about his response to the tariffs going into effect.
Source: Aljazeera
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