Government may use Reciprocity Law against the US with new tariffs

In a note, Palácio do Planalto responded to US accusations about the use of raw materials from forced labor in other countries as a justification for high levels of economic competitiveness

Palácio do Planalto stated that it may resort to the Economic Reciprocity Law to respond to the United States after the accusation that part of the competitiveness of the Brazilian economy was related to the use of inputs produced through forced labor.

A report released by the North American government this Wednesday (3) states that Brazil fails to allow the import of inputs that may have been produced in conditions similar to slavery. Based on this assessment, the United States proposed an additional tariff of 12.5% ​​on Brazilian products whose production chain may have some connection with this practice.

In a statement released by the Social Communication Secretariat of the Presidency of the Republic, the government classified as absurd the attempt to associate the performance of the Brazilian economy with “inputs obtained through trade that violates human dignity”. The text also highlights that Brazil will use the Economic Reciprocity Law to “address situations of injustice against the Brazilian State, without support from the rules of international trade”.

Government may use Reciprocity Law against the US with new tariffs

The note also maintains that the International Labor Organization (ILO) has recognized Brazil as an international reference in the fight against forced labor for decades. According to the government, during the investigation conducted by the United States, formal statements and explanations were presented about the Brazilian legal framework designed to prevent the import of goods produced under conditions of forced labor.

For Palácio do Planalto, the measure announced by the United States indiscriminately penalizes Brazil and 59 other countries, in addition to using a sensitive and relevant topic to justify the adoption of protectionist measures.

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