Coffee exports to the US remain tariff-free.

Brazilian coffee, in all its forms, will not be subject to the 12,5% ​​tariff by the United States, according to an announcement made last night, July 23, by the United States Trade Representative (USTR). Therefore, all Brazilian coffee is exempt from import duties in the US, as it is on the exemption list from two investigations by the American agency under Section 301 of the US Trade Act, which could have imposed a tariff of up to 37,5% (25% in the first investigation + 12,5% ​​in the second).

Marcos Matos (pictured), Director-General of the Brazilian Coffee Exporters Council (Cecafé), recalls that this victory is the result of joint work by all sector entities, spearheaded by the Council in partnership with the Brazilian Coffee Industry Association (ABIC) and the Brazilian Soluble Coffee Industry Association (Abics).

“With the support of all other national institutions and alongside the National Coffee Association (NCA), we held more than 100 meetings over a year with the U.S. Departments of Commerce, State, and Agriculture, as well as with the USTR itself, explaining, in a technical and apolitical manner, the importance of coffee to the consumer, the industry, and the U.S. economy. This allowed for a better understanding by American authorities and the public, resulting in this achievement: Brazilian coffees will not be subject to tariffs when entering the world's main consumer market,” he celebrates.

According to Matos, this decision protects Brazilian coffee exports, which generate between US$2,0 billion and US$2,5 billion annually for the United States coffee market, also the world's largest importer, and highlights Brazil's strength as the largest global producer and exporter, established as an irreplaceable partner to the Americans, with average annual shipments to the US of approximately 6 million 60 kg bags, generating foreign exchange revenue of approximately US$2 billion per year for our country.

The Director-General of Cecafé also praises the stance of its American counterpart, the NCA, as a US counterpart in defending Brazilian labor laws and on-site inspections throughout this process, including the hearings of the second USTR investigation, which were more directed at governments regarding alleged failures by trading partners in combating the importation of products made with forced labor.

He reveals that the organization prepared documentation based on field inspection data from recent years, showing that there were more than 58 inspections and about 1% were related to some problem from a human rights perspective.

Cecafé also highlighted, in the document, the partnerships between the private sector and the federal government, through the "Pact for Decent Work in Coffee Farming" and the Sustainable Work Program (PTS), both in partnership with the Ministry of Labor and Employment (MTE), which provided for the expansion of dialogue, the qualification of more than 600 multiplier technicians, an educational agenda for training and conversations with Brazilian coffee farmers, pointing out the correct ways of hiring and formalizing the workforce.

“It’s worth remembering that we presented this information at the first hearing we attended, and that the president and CEO of the NCA, Bill Murray, took all this data to more than eight officials from all these major American departments and defended Brazilian coffee in the second investigation. We were surgical in our work, because the arguments presented by the USTR to exempt our coffee from tariffs were exactly what we presented. This is a victory for the entire Brazilian coffee industry and the American coffee sector, consolidating normalcy in global trade involving its two main players,” concludes Matos.