Finance Minister also said that two structural reforms are included, involving credit measures and the export guarantee fund
The Minister of Finance, confirmed on Monday (11), that the preservation of jobs is foreseen in the provisional measure (MP) of the contingency plan to help the Brazilian companies affected by the tariff. However, he said there are exceptions, as some companies will not be able to guarantee jobs, as they will have a great impact on their production. “The MP flexes for some cases other types of counterpart,” Haddad said in an interview with GloboNews. He stated that the measure will bring “some flexibility,” as more than 10,000 jobs are affected.
“The MP offers the instruments and opens the guidelines of how each company will be hit,” he added. And he said that the text seeks to make the mechanisms few more flexible to meet each CNPJ; Also because, in the same sector, there are several different situations.
Structural reforms
Haddad also stated that the contingency plan has structural bias, in addition to conjunctural measures. He said two structural reforms are included, involving credit measures and the Export Guarantee Fund (CGE). According to him, credit and export insurance are still bottlenecks in Brazil. “We are doing a structural reform in the FGE, supported by other funds, to ensure that every Brazilian company – not only the big ones – who has export vocation will have modern instruments to foster exports to the whole world,” he said, citing the need to redirect exports.
The minister confirmed that the contingency plan will have financing lines, as well as contemplate the tax issue and authorize government purchases in certain cases. Haddad considered that the US is changing the relationship with the whole world and that it is not merely ideological question. He cited the case of India to say that there is a “change of global geopolitical posture” by Americans.
Internally, Haddad said he understood that the current case, coping with US tariffs, is not similar to that of Rio Grande do Sul, which faced serious floods in 2024. He stressed that contingency plan measures to help Brazilian companies will have “the necessary size to face the situation”, supported by exporters and protection of the Brazilian economy. “We are working within the goal set for the year,” he said.
Echoing the president, Haddad defended the opening of markets so that there was no dependence on exports to the US. After sending the Provisional Measure (MP) of the Contingency Plan to Congress, he stated that public banks will take care of the regulation of the measures.
Reciprocity measures
The Minister of Finance said that Itamaraty is listing measures on the economic reciprocity law in response to the US -applied surcharge to Brazilian products. He cited as an example of a measure already signaled the question made by Brazil to the World Trade Organization (WTO) about the American executive order.
As the report showed last week, the Lula administration sees retaliation measures as a “mango letter” to be used for a scenario that already foresees: the escalation of tension with possible new sanctions by US President Donald Trump, from September, when the former president’s trial for attempted coup dwelling, can be sentenced by the Supreme Court ().
Inflation
Haddad said he did not believe that the tariff imposed by the United States will have negative impacts on inflation in Brazil. On the contrary, he said he saw in the extent a deflationary effect, aligned with the evaluation of financial market agents. “Focus research, since the tariff has been announced, shows that the market, which is not usually very lenient with this theme, has been reducing inflation projections for this year. So I want to believe that, in this regard, we are tuned (with the market). What has happened in Brazil can have deflationary and non -inflationary effects,” he said.
The minister assessed that Brazil has “turned to the page” of the chronic deficit in public accounts and reaffirmed that, maintaining the current conditions, the government should reach the target of primary surplus next year. He stated that the search for fiscal goals has been made with caution, avoiding slowing down the economy and preserving employment and income.
*With information from Estadão Content
Posted by Fernando Dias
