Entities from Brazil and the USA propose an agreement to avoid new tariffs from Trump

The USTR (US Office of Commerce) has already signaled a new tariff of 25%. The body has until July 15th to publish the decision - the understanding of the sectors is that if the countries try to reach an agreement by the deadline, it is still possible to reverse the tariff, after which it becomes very difficult.

The US trade representative, Jamieson Greer, stated that he has spoken to Brazilians about the investigation, but signaled a pessimistic scenario. "There is still a big distance between us, so you will see a final decision very soon regarding Brazil," he says.

Companies such as Coca-Cola, Nestlé, Tesla, Faber-Castell, eBay and Siemens are on the list of companies that sent comments to the USTR (Office of the US Trade Representative) asking the United States not to implement the tariff.

In the document sent this Thursday, entities argue that a negotiated solution would be the most effective way to preserve competitiveness and avoid losses for Brazilian and American companies, workers and consumers.

The letter proposes that Brazil and the United States begin negotiations in two stages. The first would be focused on topics considered more urgent, while a second phase would expand bilateral economic cooperation in strategic areas.

Among the immediate priorities suggested are expanding access to markets for products linked to energy security, data centers and artificial intelligence infrastructure; greater regulatory cooperation in sectors such as automobiles and medical equipment; acceleration of patent analysis in Brazil and reinforcement of the fight against piracy; in addition to a partnership in critical minerals, with investments in research, processing and development of supply chains considered strategic.

The letter also defends the extension of the WTO (World Trade Organization) moratorium, which prevents the charging of tariffs on electronic transmissions, and the full implementation of the ATEC Anti-Corruption Protocol, a trade and economic cooperation agreement between Brazil and the United States.

In a second stage, the entities suggest expanding the bilateral agenda to include topics such as digital economy, e-commerce, energy security, innovation, production chains, industrial decarbonization, agriculture and trade facilitation.

"On the eve of the investigation's deadline, a concentrated effort by the governments of Brazil and the United States is essential to facilitate an agreement that avoids the application of tariffs and makes room for a broader agenda to strengthen the bilateral economic relationship", stated the president of Amcham Brasil, Abrão Neto, in a note.

PESSIMISM ABOUT THE RESULT

This week, hearings took place in Washington in which the private sector and politicians, such as senator and pre-candidate Flávio Bolsonaro (PL-RJ), asked the US government not to apply the new rates against Brazil. The federal government was not present and claims to understand that the hearings are aimed at the private sector and continues negotiations with the USA.

Among the sectors that were present, there were requests for their sectors to be excluded from taxation. In general, the atmosphere among those who were present is not one of hope. The expectation of businesspeople is that the tariff will happen, the most that some are betting is that the broad list of exceptions will increase.

While representatives of the affected sectors asked, for the most part, not to be taxed, Flávio took the discussion to the political field and suggested that if Brazil is taxed this could favor President Luiz Inácio Lula da Silva (PT).

Bruna Santos, director of the Brazil Institute, which follows negotiations between Brazil and the USA, shares this expectation. She also cites another USTR investigation, which should be defined on July 24th, on forced labor - which includes 60 nations, including Brazil - and already foresees another tariff of 12.5%.

"I don't expect the 12.5% tariffs to be suspended, just some exemptions and recalibration of some tariffs that are too high, adding the 25% from the Brazil investigation to the 12% from the forced labor investigation."

Santos highlights that "even large American companies, with resources, institutional presence and coordination capacity, are being pushed into defensive, fragmented and reactive action." "Instead of a coordinated strategy, what we see is a counter logic: each sector trying to guarantee its exception, its access and its protection."

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