“Business Diplomacy” and official paths of relations between countries have acted in a complementary manner to open the paths that led to the call between presidents Luiz Inacio Lula da Silva, Brazil, and Donald Trump, from the United States, evaluate businessmen and government members.
Executives from large US business companies and exporting associations of exporting sectors still affected by the tariff have pressure on US authorities in recent months, in conversations centered on the need for negotiation to be guided by trade rather than ideological issues.
Entrepreneurs who have worked in the US along with the US private initiative affected by the tariff state that the call with Lula and the fact that former President Jair Bolsonaro has not been directly mentioned show the loss of political protagonism of Bolsonarist blogger Paulo Figueiredo and Federal Deputy Eduardo Bolsonaro (PL-SP) in the US.
Free tool
XP Simulator
Learn in 1 minute how much your money can yield
The negotiation focuses on commercial terms, they evaluate, would be a victory of the movement, which includes meetings with republican parliamentarians and tall members of the Trump government.
Another assessment among entrepreneurs is that, once entering Tete-à-Tête, Lula should be able to expand the number of exemptions to Brazilian exporters later this year. In the best scenario, he would be able to reverse sanctions such as the revocation of visas to authorities.
A large executive linked to the protein export sector, one of the most affected by the tariff, explains that meat prices have increased in the US because of the tariff and that there is great pressure from American meat importers so that goods from Brazil will enter the exception list. In meetings with US government representatives, importers have already argued that the tariff punishes the Americans themselves.
Continues after advertising
The United States, says an industry executive, today have one of the smallest herds of the last 70 years and produces mainly angus, a more expensive cut than most of the Brazilian meat that Americans import.
Joesley Batista himself had a number of meetings with US authorities in September. The businessman, one of the controllers of the JBS meat giant, was part of an entourage led by João Camargo, president of the Board of the Sphere Group, who met Susie Wiles, White House chief of staff on 11 September.
In the conversation, Batista said that his group directly employs over 90,000 Americans and that the tariff does not only harm the segment in Brazil, but also the pocket of the US consumer and the investment plans in the USA.
Continues after advertising
The businessman, who is also in the control group of the Giant Cellulose Eldorado, also defended the exemption of industry exports to the US. In early September, the US government removed overwhelms about US imports of pulp.
Protein exporters believe that domestic pressure movement in the United States is important and that if the good relationship between Trump and Lula remains, tariffs for the animal protein sector can be reduced later this year.
The coffee sector in Brazil has also sought direct interlocution with US entrepreneurs and government. Marcos Matos, chairman of the Brazilian Coffee Exporters Council (Cacafé) says he is optimistic about conversations between Lula and Trump.
Continues after advertising
– For us, this beginning of dialogue already helps. We had assistance in our demands from William Bill Murray, (CEO of the National Coffee Association). And he told me being very optimistic about this conversation (between Lula and Trump). Our schedule is to show the negative impacts of the US consumer fare. Since the fare, the quotation of Arabica coffee has increased by 40% in the American bag – explains Matos.
O President of Embraer, Francisco Gomes Neto, managed to get an exemption from civil planes in a 50%tariff after meetings with representatives of the US Department of Commerce. Gomes Neto personally went to the United States to lock the dialogues and obtained the exemption even before the start of the tariff.
Sectoral associations and the National Confederation of Industry (CNI) made similar movements next. An entourage of entrepreneurs was in the US in September and met with the number two of the Secretariat of State, Christopher Landau, and was received by the Department of Commerce and the United States Trade Representative (USTR), a body that investigates commercial practices based on section 301.
Continues after advertising
“Time to sit at the table”
José Velloso, president of the Brazilian Association of Machinery and Equipment Industry (ABIMAQ), who was in the CNI entourage, says he is optimistic about the official opening of the dialogue between Lula and Trump.
– Brazil is important to the United States, but not super priority. The pressure of US entrepreneurs who are our importers and close to Republicans helps bring the issue to the economic side. Some were campaign donors. Most exports in the industrial sector, more than 80%, are between branch and matrix, within large companies. It makes no sense to tax and it seems that the US government began to listen, ”he says.
Velloso states that the Government of Brazil is able to negotiate commercial concessions on topics that are relevant to Americans, such as critical minerals and ethanol.
– Brazil’s turn to sit at the table to negotiate with the United States. And from what I understand, at no time was Bolsonaro. It was just an economical thing on the phone, and that’s good, ”says Velloso. There is room to broaden the list of exceptions this year, he says, but hardly a trade agreement between the two countries would come out in the short term. – The United States still draw agreements with Europe and Japan. Brazil is important but not a priority on this list.
Resulting, another great industry entrepreneur says that the Brazilian private initiative movement, including agribusiness, helped counteract Figueiredo and Eduardo Bolsonaro’s narrative with US government decision makers. The tendency is that once the economic negotiation is open, the duo loses the hegemony of political narrative, he says.
For Fernando Pimentel, president of the Brazilian Association of Textile and Confectionery Industry (ABIT), the business movement was important for the opening of a dialogue. The sector is also affected by the tariff, as only the sisal rope is on the exemption list of 50%tariff.
– Business diplomacy is complementary and does not compete with the official. In this case, it is difficult to quantify how much it helped, but it has certainly collaborated a lot to establish a dialogue. We need to wait for the next steps, but the perspective is good, ”says Pimentel.
