According to Minister of Development and Social Assistance, Wellington Dias, US tariffs imposed on Brazilian products may result in momentary price reduction for some foods
The 50% tariff announced by Against Brazilian products can result in momentary price reduction for some foods in the Brazilian domestic market. However, if, on the one hand, this can be positive for the consumer, with lower inflation for food, on the other can discourage producers-which would also be harmful to the country, said the Minister of Development and Social Assistance, Family and Fighting Hunger, .
The statement was made during the good morning, Minister, a program produced by Brazil Communication Company (EBC). According to days, in this context the government’s challenge is to work to ensure proper price of food to the consumer and also the producer. “It is to look for an appropriate price. This is our mission,” said the minister.
Tariff
Recently, US President Donald Trump announced the tariff increase to be applied from August 1 on Brazilian products exported to the US. In the demonstrations, Trump has associated the measure with alleged commercial disadvantages in the relationship between the two countries and also how investigations against former President Jair Bolsonaro have been conducted by the Federal Supreme Court (STF).
Momentary influence
Asked if the decrease in product exports such as orange, coffee, meat and fruits could result in their flow to the domestic market, benefiting the Brazilian consumer, the minister said yes, but that this price reduction is ideal to be stimulated by other factors. In particular, for a greater competitiveness of Brazilian production. “Tariffs can, yes, have some momentary influence [baixando a inflação dos alimentos]but what we want is the reduction of prices for competitiveness. That is, for the capacity of more production in the same area; for a lower interest financing. This is the gain we want to reach, ”said the minister.
“But you see: just as we want to protect the consumer in this task, we have to protect the producer. Otherwise we would discourage production. In this case, we need to have balance,” he added. According to the minister, the government’s strategy is, through the Brazilian Export and Investment Promotion Agency (APEX) and some ministerial folders, to look for market alternatives, in order to help producers such as honey, fruits and meat.
Investigation
Wellington Dias remembered the good historical relationship between Brazil and the United States and reiterated that, commercially, this relationship has always been favorable to Americans. “We bought more than we sell to the US,” he said as he denied the allegations presented by Trump that his country was being commercially harmed in the relationship between the two countries.
“What President Trump is doing has nothing to do with economic or commercial measure. In fact, they are speculative attacks out of context. So I think it has to have in an international investigation, and that attacked countries must protect themselves in this direction, of course, maintaining diplomacy and dialogue,” the minister argued. Dias recalled that both the Federal Supreme Court and the US court opened investigations amid confirmation that “smart were warned before,” and bought dollar before the announcement, making billionaire profits.
*COM Information from Agência Brasil and Jornal da Manhã
