The Brazilian Association of Chemical Industry (Abiquim) issued a note on Friday (15) to support the Sovereign Brazil Planannounced last Thursday by the federal government. Brazilian chemical industry exports about $ 2.5 billion a year to the United States in inputs.
Earlier this month, the government of US President Donald Trump applied an additional 40%rate to Brazilian products exported to the US country, which added to the percentage adopted in April 10%, reached the current level of 50%.
According to the entity, the Brazil Sovereign Plan goes beyond financial support, including tax adjustments, extension of deadlines and employment protection measures.
“He dialogues with historical demands of the chemical sector and its main clients – industries that turn chemical inputs into higher value -added products for the US market, such as plastics, shoes, food, clothing, cosmetics and personal hygiene.”
Abiquim highlighted in its note that, among the 700 products initially listed in the “tariff”, five items were excluded, which is equivalent to approximately $ 1 billion in exports.
The entity points out that other products in the sector can be excluded from the United States, which would mean about $ 500 billion in sales. “However, the expansion of this list depends on quick advances in direct negotiations between Brazilian and American governments,” said Abiquim.
In addition, Abiquim points out that if tariffs are maintained, new markets will be required to reduce the losses of the sector.
“The sector, which employs highly qualified labor, tends to record impacts on employment slower, but the scenario requires constant monitoring. The unprecedented dimension of the package requires follow -up to assess whether it will be sufficient or if a second phase will be required,” adds the entity.
