President Luiz Inacio Lula da Silva (PT) signed this Monday (14) the decree regulating the so-called economic reciprocity law. The measure was approved by the National Congress in April and will be published in this Tuesday’s edition of the Federal Official Gazette. The new legislation allows Brazil to react to commercial barriers imposed by other countries, such as 50% tariffs on Brazilian President Donald Trump.
Regulation establishes the procedures to be adopted in the application of the law and creates an interministerial committee, with the participation of government and private sector representatives, to discuss the impacts and define any contracted. Among the bodies involved are the Ministry of Development, Industry, Commerce and Services (MDIC), the Civil House, the Ministry of Finance and the Ministry of Foreign Affairs.
According to MDIC Vice President and Minister Geraldo Alckmin, the first meetings with affected entrepreneurs will be held on Tuesday (15). In the morning, the meeting will be with industrial sectors that have commercial relations with the United States, such as steel, aluminum, pulp, shoes, furniture, auto parts and aircraft. In the afternoon, the dialogue will be with agribusiness representatives, including orange juice segments, meat, fruits, honey, leather and fish.
Alckmin stated that the government will also dialogue with US companies installed in Brazil and with bilateral trade entities. The objective is to evaluate the impacts of tariffs on the Brazilian economy and discuss possible responses. To date, Brazil has not requested extension of the deadline for the entry into force of tariffs or proposed aliquot alternatives. A confidential proposal sent to the United States about two months ago had no answer.
The new law, according to the Minister of the Civil House, Rui Costa, does not directly mention the United States. However, it allows the Executive to adopt measures to protect the country whenever unilateral actions of other nations affect national interests. The Brazilian government considers Trump’s tariff announced a political retaliation and promises a firm, albeit balanced stance in the negotiations.
