Brazil and the US create group to negotiate tariffs.

The governments of Brazil and the United States have decided to create a working group to discuss the tariffs applied by Washington on Brazilian products and other issues related to the trade relationship between the two countries. The agreement was announced this Wednesday (September 30th), after a meeting between the Ministers Mauro Vieira, of Foreign Affairs, and Márcio Elias Rosa, of Development, Industry, Trade and Services (MDIC), with the United States Trade Representative, Jamieson Greer, in the American city of Milwaukee, Wisconsin.

The meeting took place on the sidelines of the G20 trade ministers' meeting, a group of the 19 largest economies in the world, plus the European Union and the African Union. According to the Ministry of Development, Industry and Foreign Trade (MDIC), the US government is expected to submit a document in the coming weeks with a proposal to define the scope of the negotiations, including tariff and non-tariff issues.

New group

The creation of the working group establishes a specific channel for discussing trade barriers between Brazil and the United States. The goal is to evaluate possible solutions and advance negotiations on a potential agreement.

In a statement, the Ministry of Development, Industry and Foreign Trade (MDIC) explained that the Brazilian ministers reaffirmed the government's willingness to seek solutions through dialogue and negotiation, focusing on defending Brazilian interests and expanding opportunities for companies and productive sectors in both countries.

The meeting was described by the Brazilian government as constructive. Both countries acknowledged the need to move forward in overcoming existing obstacles and expressed a willingness to work towards reaching an understanding.

Current rates

The negotiations are taking place amid the application of additional tariffs by the United States on some Brazilian exports. In July, the US government announced an additional 25% tariff on certain Brazilian products based on Section 301 of US trade law.

Another measure established an additional surcharge of 10% or 12,5% ​​for imports from countries included by the United States in its policy related to forced labor. According to the Ministry of Development, Industry and Foreign Trade (MDIC), the two measures announced in July affect portions of Brazilian exports.

Tariffs are one of the main points of negotiation between the two governments, which are also discussing non-tariff issues related to bilateral trade.

dialogue resumed

The current round of negotiations continues the process of rapprochement between the two governments. On August 21, Presidents Luiz Inácio Lula da Silva and Donald Trump spoke by telephone, after which representatives of both countries resumed contact to discuss the trade relationship.

Ten days later, ministers and technical representatives from both governments participated in a virtual meeting to advance the negotiations. This Wednesday's meeting in Milwaukee represents the in-person stage of that process.

Next Steps

The next step will be the submission, by the United States, of a document that will establish the scope of the work. Based on this proposal, the working group will discuss tariff and non-tariff issues and assess possibilities for agreement between the two countries.

The meeting takes place during the G20 ministerial trade summit, held in Milwaukee on September 30 and October 1. The U.S. Trade Representative, Jamieson Greer, is hosting the meeting.