Brazil expects lengthy tariff negotiations with the U.S. involving sugar and ethanol, as articulated by Finance Minister Fernando Haddad. He criticized U.S. tariffs on Brazilian ethanol and highlighted Brazil’s position on reciprocal trade practices. The country is preparing to address its import/export strategies amidst the evolving tariff landscape.
In a recent statement, Brazilian Finance Minister Fernando Haddad indicated that Brazil anticipates prolonged tariff negotiations with the United States. These discussions are expected to include sugar and ethanol trade. He remarked, “As they are waging war with the entire world, they will not make an exception for Brazil. That certainly will not happen,” highlighting Brazil’s concerns regarding U.S. tariff policies.
The context for these negotiations stems from U.S. President Donald Trump’s plan to increase import tariffs, which is set to be unveiled in early April. Brazil’s ethanol tariffs were highlighted as an example of unjust trade practices in a White House fact sheet, prompting Brazil’s Energy and Mining Minister Alexandre Silveira to label a potential U.S. tariff on Brazilian ethanol as unreasonable. He noted that the history of negotiations has often linked sugar and ethanol trade between the two nations.
Brazil stands as one of the largest sugar producers globally, with most of its ethanol derived from sugarcane, unlike the U.S. which primarily produces ethanol from corn. Brazilian officials assert that the current U.S. tariff on sugar imports, outside of any preferential quotas, is excessively high, surpassing the tariff Brazil imposes on ethanol.
Minister Haddad also mentioned that the services exchanged with the United States, where Brazil is a major exporter, could play a significant role in negotiations. He reiterated that Brazil’s intention is not to escalate the tariff dispute, and the country is awaiting the U.S. to clarify its stance on bilateral trade. Additionally, Brazil is evaluating its import and export strategies to effectively present its demands during negotiations, advocating for “reciprocity, not retaliation.”
In conclusion, the Brazilian government seeks to initiate extensive negotiations with the United States concerning tariffs on sugar and ethanol. With Brazil’s significant role in global sugar production, the minister’s emphasis on reciprocal discussions highlights the complexity of international trade tariff disputes.
Original Source: money.usnews.com
