Brazil’s Finance Minister expects lengthy tariff negotiations with the U.S., focusing on sugar and ethanol. The historical context and current tariffs are important in these discussions, with the minister emphasizing a strategy of reciprocity. Brazil is preparing to present demands during negotiations.
Brazil’s Finance Minister Fernando Haddad indicated that extended tariff negotiations with the U.S. are anticipated, highlighting that these discussions would involve sugar and ethanol trade. He remarked, “As they are waging war with the entire world, they will not make an exception for Brazil.” He added that during negotiations, ethanol will be a point of discussion brought up by the U.S., while Brazil will counter with sugar trade interests.
The context for this negotiation stems from former U.S. President Donald Trump’s tariff plans, which included Brazil’s ethanol tariffs as an example of perceived unfair trade practices. In response, Brazil’s Energy Minister Alexandre Silveira called any potential U.S. tariff on Brazilian ethanol unreasonable, emphasizing the historical linkage of ethanol and sugar trade negotiations between the two nations.
Brazil stands as a significant sugar producer, with most of its ethanol derived from sugarcane, unlike the U.S., which primarily sources its ethanol from corn. Brazilian officials argue that U.S. sugar import tariffs are disproportionately high compared to Brazil’s ethanol import tariffs.
Haddad indicated that the nature of service exchanges, with the U.S. being a significant exporter to Brazil, would also play a crucial role in the discussions. He noted Brazil’s intention is to approach negotiations with a focus on reciprocity rather than retaliation. Furthermore, he emphasized that Brazil is meticulously reviewing its import and export agenda to present clear demands at the negotiating table.
In conclusion, Brazil anticipates extensive tariff negotiations with the U.S. that will involve discussions on both sugar and ethanol trade. The historical background of these discussions, along with the imposition of tariffs, highlights the need for a balanced trade approach focused on reciprocity. Brazil’s strategic preparation for these negotiations signifies its commitment to addressing trade disparities with a view towards mutual benefit.
Original Source: money.usnews.com
