Brazilian industry needs predictability, stability and security to continue investing Credit: Disclosure Simespi (employer union of industries in the metal-mechanic sector of Piracicaba, Saltinho and Rio das Pedras) expressed concern about the United States government's decision to impose an additional tariff of 25% on part of Brazilian products, a measure that will come into force on the 22nd. For the entity, although the expansion of the list of exempt products represents an advance in relation to the current scenario initially announced, the new tariff still affects strategic segments of the national industry and could have important impacts on the industrial park of Piracicaba and the region, one of the main Brazilian centers for the manufacture of machines, equipment, components and capital goods. The president of Simespi, Paulo Estevam Camargo, highlights that several companies within the union base maintain commercial relations with the North American market or are part of global supply chains, which increases the effects of the measure. In addition to exporting companies, the director highlights that the impacts could affect manufacturers that supply machinery, equipment, parts and services to the sugar-energy sector. "Our region has companies highly specialized in serving sugar and ethanol plants. Any reduction in the competitiveness of Brazilian ethanol or a reduction in investment in this segment ends up having a direct impact on the metalworking industry, which provides technology, equipment and solutions for this entire production chain", he notes. In the union's assessment, the priority at this time should be the search for a negotiated solution between the two countries. "The most efficient path is dialogue. We understand that the Brazilian government must intensify diplomatic and commercial negotiations to expand the list of products covered by exceptions and preserve the competitiveness of the national industry. This is an agenda that is of interest to companies, workers and the Brazilian economy", says Camargo. Simespi also assesses that the adoption of commercial reciprocity measures does not represent, at this moment, the most appropriate alternative to face the impasse. "The escalation of retaliatory measures tends to increase insecurity in commercial relations, increase costs and make the business environment even more difficult. Brazil must prioritize technical negotiation, based on economic arguments, seeking to preserve markets built over decades and reduce impacts on productive sectors", he adds. According to the president, the moment requires serenity and coordinated action between the federal government, the productive sector and entities representing the industry. "It is essential that common sense prevails. Brazilian industry needs predictability, stability and security to continue investing, innovating and generating jobs. Piracicaba and our entire region have a highly industrialized economy integrated with international trade. Defending these companies means protecting thousands of jobs, municipal revenues and regional development." Simespi informs that it permanently monitors the developments of the measure, defending the intensification of negotiations between governments, the expansion of tariff exceptions and the preservation of commercial relations between Brazil and the United States.