Brazil expects extended tariff negotiations with the U.S. to encompass sugar and ethanol. Finance Minister Haddad expressed that both countries will have specific trade issues to address. Brazil argues that U.S. sugar tariffs are excessively high, while the minister emphasized a diplomatic approach focusing on reciprocity in negotiations.
In recent statements, Brazilian Finance Minister Fernando Haddad indicated that the ongoing tariff negotiations with the United States are anticipated to be protracted. He noted that these discussions are likely to encompass trade matters related to both sugar and ethanol. Haddad remarked, “As they are waging war with the entire world, they will not make an exception for Brazil. That certainly will not happen.” He emphasized that while negotiating, the U.S. will raise ethanol concerns, and Brazil will counter with issues regarding sugar.
The backdrop for these negotiations arises from U.S. President Donald Trump’s proposal to increase import tariffs, which is expected to be detailed in early April. A White House fact sheet referenced Brazil’s ethanol tariffs as an instance of unfair trade practices, prompting Brazil’s Energy and Mining Minister Alexandre Silveira to characterize any potential U.S. tariffs on Brazilian ethanol as unjust, given the historical linkage of ethanol and sugar trade between the two nations.
Brazil holds the position of one of the world’s foremost sugar producers, with the majority of its ethanol being derived from sugarcane, in contrast to the U.S. which predominantly produces ethanol from corn. Brazilian officials assert that the tariffs levied by the U.S. on sugar imports, particularly those outside of preferential quotas, are excessively high and surpass Brazil’s imposed tariffs on U.S. ethanol imports.
Haddad also highlighted that the exchange of services with the United States, where Brazil is a significant importer, will be fundamental to the negotiations. The minister asserted Brazil’s intent to avoid escalating tensions in the tariff dispute and stated that they are awaiting a clearer outline of the U.S. approach to bilateral trade. Current efforts in Brazil involve a comprehensive review of the nation’s import and export policies to prepare for negotiations, with an emphasis on “reciprocity, not retaliation,” as Haddad specified.
In summary, Brazil anticipates a lengthy and comprehensive negotiation process regarding U.S. tariffs, with primary focus on sugar and ethanol. Brazilian officials are poised to address disparities in trade practices, specifically citing the high U.S. sugar tariffs. The approach taken by Brazilian authorities embodies a commitment to constructive dialogue, emphasizing reciprocity over retaliation in navigating trade relations.
Original Source: money.usnews.com
