The Federal Government published Provisional Measure (MP) that opens extraordinary credit of R $ 30 billion for the execution of the Brazil Sovereign Plan, which aims to support companies that are damaged by the recent measures announced by the United States, to tax Brazilian exports by 50%. The MP signed by President Luiz Inacio Lula da Silva was published in this Tuesday’s edition of Official Gazette of the Union.
THE flat It was announced by Lula on August 13 and the funds will be contributed to the Export Guarantee Fund (FGE) for affordable credit. Companies that do not have alternatives to export to the United States will be prioritizedaccording to the dependence on revenues, type of product and company size.
Small and medium -sized companies will also be able to resort to guaranteeing funds to receive credit and access to lines will be subject to maintaining the number of jobs.
Additional contributions will also be made of R $ 1.5 billion in the Foreign Trade Guarantee Fund (FGCE), R $ 2 billion in the Investment Guarantee Fund (FGI), the National Bank for Economic and Social Development (BNDES), and R $ 1 billion in the Banco do Brasil Operations Guarantee Fund (FGO), focused primarily on access to small and medium exporters.
The tariff imposed on Brazil is part of the new White House policy, adopted by President Donald Trump, to raise tariffs against business partners in an attempt to reverse the relative loss of competitiveness from the US economy to China in recent decades.
On April 2, Trump imposed customs barriers on countries according to the size of the deficit that the United States has with each nation. As the US has surplus with Brazil, at the time, the lower rate of 10% was imposed.
However, on August 6, the additional tariff 40% against Brazil in retaliation of decisions that, according to Trump, would harm the American big techs and in response to the trial of former President Jair Bolsonaro, accused of leading a coup attempt after losing the 2022 elections.
There is a list of exceptions and, of all that is exported by Brazil to the US country, 35.6% are under a 50% rate.
Access to resources
Will be able to access the actions provided for in the Brazil Sovereign Plan legal entities of private law that export to the United States of assets that were affected by tariffs and are registered in official foreign trade systems.
They can also adhere to individuals who export goods to the United States on a business or professional basis, duly registered as exporters with the competent bodies, in the category of individual companies, individual microentrepreneurs (MEI) and rural producers with CNPJ.
To have access to the planned credit and guarantee shares, It is necessary to be in a regular situation in the Federal Revenue of Brazil (RFB) and the Attorney General of the National Treasury (PGFN) regarding federal taxes and contributions. It may not benefit from measures who are under judicial or extrajudicial recovery regime, bankruptcy or settlement, except if demonstrated judicially approved recovery plan.
Access to the measures of the plan will be given with priority to companies that have registered, between July 2024 and June 2025, at least 5% of total revenues from product exports impacted by additional US fares of the United States.
Those companies whose percentage of gross revenues resulting from exports of impacted products is equal to or greater than 20% of total revenues in the same period may access financing lines under more favorable conditions. In the case of guarantees of the Emergency Credit Access Program (PEAC-FGI Solidarity), only companies with gross annual revenues of up to R $ 300 million in the year prior to hiring (MPMES) will have access.
In addition to the expansion of export financing lines, among economic measures, the Sovereign Brazil Plan provides for the extension of the suspension of taxes for exporting companies; Increased percentage of refund of federal taxes via Reintegra; and facilitation of the purchase of foodstuffs by public agencies.
