President Luiz Inacio Lula da Silva signed on Wednesday the decree Sovereign Brazil Plan To grant the first aid to exporting companies hit by 50% tariffs – the highest in the world – that the US applies to Brazil since last 7. The package includes about 30,000 million reais (5,000 million dollars) in credits, postponements and exemptions in the payment of government taxes and purchases. It is the response of the Lula Government to a tariff punishment imposed by his counterpart Donald Trump in an attempt that the Brazilian courts forget the accusations of coup against the previous president, Jair Bolsonaro. Coffee and meat are two of the most affected products. Lula has called for calm, has denied that the trial to his predecessor is arbitrary and has reiterated his entire willingness to negotiate with the White House, which is still closed in the band.
Lula wanted to package the presentation of the presidential decree. The presidents of the legislative chambers and dozen of ministers have participated in the presentation, in the Planalto Palace, in Brasilia. “It is important to emphasize that we cannot be afraid or get nervous about a crisis. Crises exist so that we believe new things,” said the leftist president. “The unfortunate thing is that there are no justified reasons to impose tariffs on Brazil,” he added.
The president has launched in search of new destinations for exports. “If the United States does not want to buy us, we sell them to others,” said Lula, who in recent days has talked with his counterparts from China, Russia, India and South Africa. In the next few days he plans to do it with Germany, France, and so on.
When presenting the aid package, the Chief of the Brazilian government has announced that affected small companies will have priority and required patterns that do not lay off.
He has also made it clear that he wants to open as a communication channel with the Trump administration to redirect the matter. That is why he has not taken reprisals: “We have not announced reciprocity (in reference to 50% tariffs on US exports); we do not want to do anything that justifies our relationship worse (with Washington,” he said.
The president insists that Trump attacks national sovereignty, not the Government, the Supreme Court or the judge who takes the case, Alexandre de Moraes, which Washington has imposed economic sanctions.
Bolsonaro, whom Trump presents as a victim of a political persecution, has been since last week in house prison while the trial against him advances towards the final phase. Judge Moraes has given him permission so that next Saturday he goes to the hospital to undergo several clinical tests.
The balance of the US-Brazil commercial relationship is clearly favorable to the northern neighbor, which happens with very few countries. Therefore, the tariff punishment has meant a shock to politicians and businessmen of the largest economy in Latin America. Almost half of Brazilian exports have been exempt from the tariff, but two of the most present products in the American diet – café and flesh – are still subject to the 50%tax. Some large Brazilian companies affected, such as the meat giant JBS, the Mineador Vale or Taurus, weapons manufacturer, have hired companies to do lobby before the US authorities, according to the newspaper Statão.
Deputy Eduardo Bolsonaro already has a detailed report ready with the alleged illegalities committed by Judge Moraes, who has hung on the Internet and intends to deliver to the Trump government in his efforts to increase the pressure on the supreme.
The trial against the patriarch of the Bolsonaro clan is about to enter the decisive phase. This Wednesday ends the deadline for the final allegations of the defendants – the former president, several former ministers and the former head of the Navy. Although initially the Supreme Court was scheduled to issue a sentence in September, the Brazilian press points out that one of the magistrates could request a postponement to better study the case.
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