The Minister of Agriculture and Livestock, Carlos Fávaro, said on Thursday (14), in São Paulo, that the government will continue to try to negotiate the reduction in the value of 50% rates that were imposed by the president of the United States, Donald Trump, to Brazilian exports. However, he stressed, Brazil will not give up his sovereignty.
“The first point is to guarantee dialogue, seek negotiation. At no time, by determination of President Lula, we closed the dialogue. We seek dialogue at the negotiation table. Now, under any circumstances, will we give up our sovereignty. Under no circumstances, we will negotiate what is not the attribution of the executive branch, such as intervention in the Judiciary,” said Fávaro.
The tariff is part of a series of actions from the United States to interfere with the trial of Jair Bolsonaro and allies for the attempted coup d’état that tried to reverse the result of the 2022 elections and culminated in the attacks of January 8, 2023. Trump also started a commercial investigation against Brazil and applied sanctions to the Supreme Court Minister Alexandre de Moraes, who is rapporteur of the case.
On Wednesday (13), The federal government announced a package of measures to support the productive sector affected by tariff. The support plan provides for R $ 30 billion in credit and will be made possible through a provisional measure called MP Brasil Sovereign.
According to Fávaro, these are just the “first measures” taken by the federal government to try to contain the effects of Trump’s tariff to Brazilian exports. “And certainly we will need new complementary measures for the particularities generated,” the minister added.
“Orange juice is something that had a giant impact on the United States, but also for Brazilian producers. The tariff has been removed. But it does not mean that developments in the sector will not need corrections. Therefore, the advertised measures will need implementations, and we are open to listening and continuing to listen to the sectors so that we can continue to take aid measures.”
Among these particularities that will need complementary measures, he mentioned the minister, are those of the sectors whose exports are almost all directed to the US market.
“If an industry has, for example, 80% to 90% of its production intended for the United States, this industry will suffer much more than a company that has a destined [aos Estados Unidos] 20% or 30% of its production. So these specific cases will have a specific treatment, ”said the minister without mentioning what measures have been studied as solutions to this type of case.
Market opening
Meanwhile, the government continues to broaden markets to Brazilian exporters, said Fávaro.
“Just yesterday, we hit all the records. Never, in the history of Brazil, so much market opened for Brazilian agriculture. We reached the number of 400 new markets,” he celebrated. “The determination of President Lula, because of this moment, is for us to further intensify the search for new markets, and this we will do.”
In addition, he pointed out that The government intends to implement a public purchasing program to ensure support for more affected exporters, with additional measures to credit lines and tax exemption. This would be the case of mango producers.
“For example, we will add more sleeve to school lunch and fish in school meals and purchases for the Armed Forces. All this makes consumption momentarily to meet the demand of what was intended for the United States,” the minister explained.
Agro Route Auction
This afternoon, Favaro and the Minister of Transport, Renan Filho, were at B3, the Stock Exchange of São Paulo, to accompany The auction of the agro route. The auction was won by the Rota Agro Brasil consortium, which offered the highest disagreement for the toll, in the amount of 19.70%.
“A successful auction like this and the others who have had, certainly, is our contribution to the investor that agro growing will have more load to pass over the highways and therefore viable the project,” said Favaro. “And on the other hand, a more efficient infrastructure guarantees us competitiveness,” he added.
With the participation of five competitors, this was, according to Minister Renan Filho, the most disputed highway auction of recent years. He credited the success of the event “to a good project, legal certainty, predictability and the fact that auctions were announced many years ago.”
“We could observe a competitive auction, with a high discount, including overcoming the barrier that imposes the beginning of deposits on the project linked to the project itself and that ensures the solidity for the execution of the works. We are all very excited,” said Renan Filho.
According to the Minister of Transport, it was the first time the highway sector exceeded the sanitation sector in the interest of private companies. In addition, it was the first time that private investments have surpassed public investments on highways.
“From 1998 to 2022, Brazil executed R $ 129 billion in private investments on our highways. From 2023 here, we hired R $ 176 billion,” he compared.
The Minister of Transport, Renan Filho, participates in the auction of the Agro Route (BRS 060/364/GO/MT), in B3. Paulo Pinto/Agência Brasil
More competitiveness
By the end of this year, another five or six highway auctions should be held, Renan Filho said. “With the eight auctions we have already held, this has 14 auctions [já realizados pelo atual governo neste ano]. I committed to 15 auctions. But if we perform 14 or 15 auctions, this will be the largest volume of auctions in Brazil’s history, ”he told reporters.
For Renan Filho, a better road infrastructure in the country implies “more international competitiveness” and also helps the country facing “this tariff war environment”.
“I think the better our infrastructure, the more Brazil will be prepared to face the tariff war. Obviously, the tariff war artificially reduces the competitiveness of countries. The fare is nothing more than building a wall,” he said. “The ideal was that we move more and more for free trade, not to barriers, because, yes, Brazil would demonstrate to the world the efficiency we have. But the world, to protect itself from our efficiency, builds barriers.”
