Former Brazilian Foreign Trade Secretary Welber Barral warned of the challenges faced by the country when considering retaliation against the tariffs imposed by the United States.
During participation in the WW program, Barral emphasized that Brazil has a limited margin for reprisal actions without harming its own economy.
According to the expert, the art of consists of creating irritants for the other country without negatively affecting the national industry.
“Brazil imports many parts of plane, equipment and chemicals for the Brazilian industry. So, the tariff against these imports would hurt Brazilian industry itself, ”he explained.
Intellectual property as a negotiating tool
Barral highlighted an earlier episode involving a dispute over cotton, where Brazil only managed to bring the United States to the negotiating table when it threatened to suspend intellectual property rights.
“It was only when the intellectual property entered the game that the US negotiated, and we had a sweeping victory in the case of cotton thanks to it,” he said.
The former secretary also mentioned that other countries, such as China, have already noticed the effectiveness of this strategy and are threatening retaliation about American services, especially in technology.
Challenges for the multilateral trade system
Barral pointed to an additional challenge: ensuring that any is limited to bilateral relationship with the United States without completely dismantling the multilateral trade system.
He observed positive signs in this regard, citing that countries such as Canada and China resorted to the World Trade Organization (WTO) to complain about US measures.
In addition, the expert mentioned that the European Union tried to legally justify its measures against the United States based on WTO rules, although with a foundation considered fragile.
“Countries are still trying to be reliable and trying to indicate that they are those who are primarily violating multilateral rules,” he concluded.
