Brazil delivers this Monday to the Trump government answer on commercial investigation

Lula and Trump Getty Images via BBC The Ministry of Foreign Affairs reported that Brazil will send Donald Trump’s government on Monday the response to the US opened commercial investigation. The document will be filed by the Brazilian embassy in Washington. On July 15, when the investigation began, the US government accused Brazil of committing “unfair” practices, harming the local economy (read more details below). The United States is Brazil’s second main commercial partner, behind only China. According to Itamaraty, a task force formed by various organs was created to elaborate the response of the Brazilian government. In the context of commercial investigation, conducted by the United States Representative Office (USTR), Trump announced the imposition of a 50% rate on a part of Brazilian products sold in the US market, such as beef and coffee. Other products, initially taxed, eventually entered a list of exceptions defined by the US government itself, such as orange juice and steel derivatives. Trump has mistakenly said that business relationship with Brazil is deficient to the US. In fact, Americans export most to Brazil than matter, in added value. Calculations of the Brazilian government, according to Finance Minister Fernando Haddad, estimate that, in the last 15 years, the trade balance balance has been positive for the United States by more than $ 400 billion. Last week, the Foreign Ministry published a message on a social network in which it stated that Brazil “will not give up negotiating” with the United States. Itamaraty also added that the country “is good at cultivating friendships.” Behind the scenes, however, diplomats say that despite conversations between members of both governments, negotiations do not advance. They evaluate that, so far, Donald Trump has not endorsed any direct advisor to actually negotiate the rates. They say the diplomats, reserved, that the US government has acted with “truculence.” According to one of the professionals, this pressure has been demonstrated in the “selectivity” of American tariffs, seeking to penalize countries commanded by presidents who “do not bend” to Trump and benefiting countries with heads of state aligned with the president. Understanding the investigation The US measure was taken based on section 301 of the 1974 Commerce Law-which provides for the investigation of unfair foreign practices that impact American trade. Judgment will take place in the US. Some of the targets of the investigation are PIX, some tariffs called unfair and preferred, the application of anti -corruption measures, the protection of intellectual property and the marketing of Brazilian ethanol. The United States claims that these practices would be unfair and would be harming “companies, workers, farmers and technological innovators.” If the investigation concludes that Brazil commits unfair practices, the United States may apply more rates, suspend commercial benefits, among other retaliation.

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