Brazil Calls “Unjustifiable” US Warning Over Brazilian Protectionist Measures

Brazilian imports Ron Kirk, US Trade Representative, urged Brazil in a letter sent on Wednesday to reconsider plans for “protectionist” tariff increases expected to hurt US exports.
 

“I am writing to state in strong and clear terms the United States’ concern about scheduled and proposed tariff increases in Brazil and Mercosur,” Kirk said in the letter to Brazilian Foreign Minister Antonio Patriota.

Brazil triggered international concerns over growing protectionism when it announced plans to raise import tariffs on 100 foreign products. This is the latest step by president Dilma Rousseff to fend off competition from foreign producers, which has hit local industries and Brazil’s economy.

The temporary increase in levies, initially for a year, would apply to products ranging from glass to iron pipes and bus tires. The rate will reach 25% for most of those products, an increase from the low teens.

“We live in a time when the world market is shrinking and exporters flood Brazil, which is one of the few growing markets, and our industry is being harmed by this,” Brazilian Finance Minister Guido Mantega told reporters this month.

Kirk said the US expects scheduled tariff increases around September 25, and possibly more increases in October, to “significantly hit US exports to Brazil in key areas of export interest to the United States.”

“Further, these two sets of tariff increases follow earlier increases that have been implemented during the course of the past year … Brazil’s tariff increases will significantly restrict trade from current levels and clearly represent protectionist measures,” Kirk said.

“The overall effect is that an ever broader range of industrial goods faces deteriorating market conditions in Brazil’s market,” Kirk added.

A spokesman for Brazil’s foreign ministry said the criticisms were “baseless” and the letter was “unjustifiable.”

“This format is not consistent with the relationship we have with the United States,” ministry spokesman Tovar Nunes said in a telephone interview. He added that Brazil would likely have a formal response ready by Friday.

Kirk also expressed concern that Brazil’s trading partners could respond by increasing their own tariffs, which “would amplify the negative impact” of Brazil’s actions.

Mercopress

Tags:

You May Also Like

Brazilian Industry Laments Palocci’s Resignation and Calls for Serenity

Brazil’s National Industrial Confederation (CNI) lamented this Monday, March 27, the resignation of Antonio ...

Something Wrong with Brazilian Democracy: Excessive Fraud or Intervention

The Brazilian TRE (Regional Electoral Court) strikes again! Last week, a TRE judge ordered ...

Brazil and LatAm Pressed to Turn Commodities Boom Into Way Out of Poverty

Latin America is poised to enjoy exceptionally high prices for its exports during the ...

Brazil’s Petrobras Rules Out Any New Investment in Bolivia

Petrobras decided that it will not invest any more money in the project to ...

Number of Jobs Remains Stable in Brazil and Income Goes Up Slightly

Industrial employment has remained stable over the past two months, according to data released ...

Brazil’s Mato Grosso Hindered by Poor Transportation

Cuiabá, Rondonópolis and Alto Araguaia – all in the midwestern state of Mato Grosso ...

Brazil’s Buffalo Breeders Want to Serve You Some Different Milk for Breakfast

Brazil’s Association of Livestock Breeders and Dairy Producers of Vale do Ribeira (Proleite) want ...

Fearful of Losing Land Brazilian Indians Take Their Case to London

A video released by the Brazilian Indigenous Council of Roraima  (CIR) and Survival International, ...

Brazil Spends More on Debt than on Health and Education

The Argentine minister of Education, Science and Technology, Daniel Filmus, says that Latin American ...

PT Blames Brazilian Scandal on Lies from the Right

In a document entitled, “In Defense of the PT, Ethics and Democracy,” the board ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`