Commenting on the update of tariffs imposed by the US government to Brazilian products, the Finance Minister Fernando Haddad said on Friday (1) that the government seeks cooperation with the United States and that there is a lot of space for partnerships between the countries.
“That’s what we have to throw light. Show them that they don’t have this in Brazil to fall on the lap, B or C. Brazil is too big. We can really strengthen the bonds of cooperation, as long as it is good for both sides. And there is a lot of room for it. Brazil, obviously, competes with the United States in some ways, especially in the production of grain, meat and a series of things they produce as much as we do.”
“We will make an effort with the United States to show that there is a lot of space for cooperation. They have participated little of bids in Brazil. Our infrastructure has been growing as a long time has not seen. If you get the infrastructure investment indicators, they are robust. That’s what is holding jobs, so why they can not participate in our economy? We are open.” Haddad added.
Contingency plan
According to the minister, the Brazilian government still works in the details of a contingency plan aimed at sectors affected by the American tariff. The package, according to him, can be announced by President Luiz Inacio Lula da Silva next week.
“On our side here, along with Vice President Geraldo Alckmin, we are referring to the Planalto Palace the first measures already formatted for the president to judge the opportunity and the convenience of release them. But, from next week, we will already be able to judge by the decision of the president, to take the protection measures of national industry and agriculture.”
“We will continue to thrive, by Itamaraty, with the competent channels to mitigate these effects and make it to the US authorities that there is effectively much misinformation about the functioning of Brazilian democracy.”
Calibrating numbers
Also according to Haddad, the government is “calibrating the numbers” with workers unions, employers’ unions and the Civil House itself. “We are calibrating the numbers. For example, the volume of resources needed to help affected companies at first. Some will not claim additional help because they are able to redirect their production and are looking for other markets – including warm domestic market.”
“Demand for food products is growing in Brazil, income is growing in Brazil, unemployment is at the historic minimum. So you have an option here in the domestic market. I will receive, to cite an example, the governor of Ceará, who is coming here in the afternoon. He wants product support, for the state’s lunch. Do the way he intends, fast and to give legal support to the decisions he wants to make. ”
Fiscal goal
Asked if the government’s contingency plan will be funded with resources outside the fiscal target, the minister said this “is not our initial demand.”
“Our proposal, which is being forwarded, will not require this – although it has been, on the part of the Federal Court of Auditors, the understanding that [poderia ser feito] if necessary. But it is not our initial demand. We understand that we were able to operate within the Fiscal Framework without any changes. ”
