Brazil Anticipates Lengthy Tariff Negotiations with United States

Brazilian Finance Minister Fernando Haddad expects lengthy tariff negotiations with the U.S. involving sugar and ethanol. He noted the U.S. considers Brazil’s ethanol tariffs unfair, while Brazil’s officials criticize high U.S. sugar tariffs. Brazil plans to review its entire trade agenda and emphasizes reciprocity in negotiations.

Brazilian Finance Minister Fernando Haddad indicated that the nation anticipates extended tariff negotiations with the United States, which are likely to encompass discussions surrounding sugar and ethanol trade. He remarked, “As they are waging war with the entire world, they will not make an exception for Brazil. That certainly will not happen.” Minister Haddad emphasized the importance of addressing both ethanol and sugar during negotiations.

The U.S. administration’s plan to increase import tariffs includes specifics that are anticipated to be released in early April. A White House fact sheet highlighted Brazil’s ethanol tariffs as a case of unfair trade practices, prompting Brazil’s Energy and Mining Minister, Alexandre Silveira, to criticize a potential U.S. tariff on Brazilian ethanol as unreasonable, referencing the historical context of joint negotiations on ethanol and sugar.

Brazil stands as one of the key global producers of sugar, with its ethanol primarily derived from sugarcane, contrasting with the U.S. approach of using corn for ethanol production. Brazilian officials have consistently maintained that the U.S. sugar import tariffs exceed those imposed by Brazil on ethanol imports, leading to an ongoing dialogue on these trade issues.

Furthermore, Minister Haddad suggested that discussions regarding service exchanges, where the U.S. exports more relative to Brazil, might also feature prominently in the tariffs negotiations. He clarified Brazil’s approach, stating the country does not aim to escalate the current tariff conflict and is awaiting the U.S. to draft its bilateral trade strategy.

Amidst these conversations, Brazil is meticulously reviewing its import and export policies. Minister Haddad affirmed that their strategy will prioritize “reciprocity, not retaliation,” ensuring that Brazil is prepared to advocate for its interests at the negotiation table.

In conclusion, Brazil’s Finance Minister Fernando Haddad highlighted the expectation of prolonged tariff negotiations with the United States, focusing on sugar and ethanol trade. The discussions arise amidst concerns regarding unfair trade practices and high tariffs. Brazil’s strategy emphasizes reciprocity and a thorough review of its trade agenda in preparation for these talks. The outcome will significantly impact bilateral trade relations, particularly concerning their respective agricultural products.

Original Source: money.usnews.com