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Vice President Geraldo Alckmin said on Saturday (23) that Brazil will overcome the open commercial crisis with the tariffs imposed by the United States (US) government and remembered the lower dependence on the US market compared to past decades.
Trump’s tariff affects 3.3% of Brazilian exports. Photo: Reproduction
“It will pass. In the 1980s, it was 24%to our export to the US, practically a quarter of Brazilian exports. Today, it is 12%. And what is affected is 3.3%. This is what is affected in the tariff,” said the vice president, who is also Minister of Development, Industry, Commerce and Services, during participation in political conjuncture promoted by the Workers Party (PT), in Brasilia.
Alckmin recalled that at the moment, about 36% of exports to the US are the most affected by the 50% rate, and that they reach some sectors of the manufacturing industry more worrying, such as machines and equipment and textile industry.
“Machinery, equipment, shoe and textile industry. These are the ones who suffer the most. Because food, [como] Meat, if I didn’t sell there, I will have other markets. The world will not fall. Coffee, if I didn’t sell there, I will sell elsewhere. Now, manufactured product is harder for you to relocate. It ends up relocating, but it takes a little longer, ”said the vice president, who has been acting as Brazil’s main negotiator on this issue.
“We will not give up downloading this rate and take more products,” insisted the vice, remembering that he surrounds not every product exported by Brazil has been overwhelmed. About 42% of them were out of the 50% rate, while another 16% were included in rates that reach other countries in the same proportion, such as steel, aluminum and copper.
Alternatively, Alckmin stressed, the country is expected to expand markets, with the signing of the European Mercosur-Union Agreement, which may occur by the end of the year, as well as other negotiations, such as Mercosur agreement with EFTA (Iceland, Liechtenstein, Norway and Switzerland), Singapore and United Arab Emirates.
Alckmin also highlighted the measures announced by the federal government to reduce the negative impacts caused to Brazilian exporters on tariff, such as opening of credit line, suspension of taxes on imported inputs (drawback) and increased percentage of federal tax refund to affected companies.
In the international level, the vice president cited the complaint opened by the Brazilian government in the World Trade Organization (WTO) against US tariffs and provides that the case may also reach the US courts. “You can’t use regulatory policy for party reasons, policies,” he said.
