After United States President Donald Trump announced a 50 per cent tariff on imports from Brazil, Brazilian President Luiz Inacio Lula da Silva on Wednesday issued a firm response by invoking the country’s “Economic Reciprocity Law.” While asserting Brazil’s sovereignty and rejecting “any form of tutelage,” Silva described Trump’s action as an attempt to interfere in the country’s internal judicial affairs. Notably, Trump had announced the 50 per cent tariff on Brazilian imports starting August 1 and called for the cancellation of the trial of former Brazilian President Jair Bolsonaro, who is accused of conspiring in a “coup d’etat”.
President Lula firmly stated that Brazil is a sovereign nation and will not accept any form of interference. He called sovereignty, respect, and the unwavering defense of the interests of the Brazilian people as guiding values in their relationship with the world.
“In light of the public statement made by U.S. President Donald Trump on social media on the afternoon of Wednesday (9), it is important to highlight the following: Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage,” Lula stated.
He further addressed Trump’s call for cancellation of former Brazilian President Jair Bolsonaro’s trial, stating that it falls under the jurisdiction of country’s Judicial Branch. He warned that Brazil would not allow any threat or interference that comprises the independence of national institutions.
“The judicial proceedings against those responsible for planning the coup d’etat fall exclusively under the jurisdiction of Brazil’s Judicial Branch and, as such, are not subject to any interference or threats that could compromise the independence of national institutions,” he added.
Lula also refuted Trump’s claims of trade deficits between the two nations, calling them “inaccurate”. He cleared that any unilateral tariff increases would be met with reciprocal measures under Brazil’s Economic Reciprocity Law.
“The claim regarding a U.S. trade deficit in its commercial relationship with Brazil is inaccurate. Statistics from the U.S. government itself show a surplus of $410 billion in the trade of goods and services with Brazil over the past 15 years. Therefore, any unilateral tariff increases will be addressed in accordance with Brazil’s Economic Reciprocity Law,” Lula added.
Economic Reciprocity Law
The Economic Reciprocity Law authorizes the Executive Branch in coordination with the private sector to adopt countermeasures in the form of restrictions on imports of goods and services or measures to suspend trade concessions, investments, and obligations relating to intellectual property rights, and measures to suspend other obligations provided for in any of the country’s trade agreements.
It allows the Brazilian government to adopt potential economic retaliation measures to mitigate the impact on economic activity and avoid disproportionate administrative burdens and costs. This comes after trade barriers (tariff) were announced by the US to impact Brazilian exports on Wednesday.
Trump Announces 50 Per Cent Tariffs On Brazil
Notably, Trump in his letter to Lula, accused the Brazilian government of unfair trade practices. He stated that the tariffs imposed by the US on goods imported from Brazil is “far less than what is needed to have a level playing field.”
He wrote, “In addition, we have had years to discuss our Trading Relationship with Brazil, and have concluded that we must move away from the longstanding, and very unfair trade relationship engendered by Brazil’s Tariff, and Non-Tariff, Policies and Trade Barriers. Our relationship has been, unfortunately, far from Reciprocal.”
Also Read: Donald Trump Announces 50 Per Cent Tariffs On Brazil, Calls Jair Bolsonaro’s Trial ‘Witch Hunt’
