In less than two months, since President Donald Trump spoke for the first time in adopting the “mutual definitions” of American business partners, Brazil has left the “Dirty 15” list of the “Clean Three” group.
In free translation: Brazil was initially among 15 countries that the White House saw as “ugly, dirty and evil” – with high barriers, non -sharp barriers, manipulation of exchange rate, and unfair commercial practices.
After a lot of diplomatic effort, it ended in the three “clean countries and smell” – the relevant markets that the United States maintains strong surpluses in the trade of goods and services.
In addition to Brazil, the United Kingdom and Australia are part of the team. Everyone ended with the presence Imposition of taxes in 10 % – The smallest percentage of Trump, much less than the European Union, China, and most Asians.
What has changed since there? In the point of view of government sources and the private sector he heard CNN, In reserved, there were three main movements during this period.
1) The first was the opening of almost non -existing dialogue channels until early March, when Vice President Geraldo Alkain spoke over the phone with the United States Trade Minister Howard Lottenic.
Until then, the channels have been obstructed. There were no contacts at the first level or between the technical teams of the government. Since then, dynamic has been created.
Counselor MAURO Viewra and President of the USTR (White House Commercial Office), Jamieson Greer, created a connection line. There were developments for the second tile, which began to interact.
Until Wednesday (2), “Tahrir’s Day”, there was no sign that the White House would slow the definitions directed at Brazil. The climate in Brazilia was pessimistic.
But they all emphasized: Technical arguments were presented in detail for various decision -making cases in the United States government. The opportunity she missed in January and February was seized in March.
2) The weight of the private sector and corporate alliances has been shown. A large part of the overlapping bilateral trade, that is, the subsidiary of an American company installed in Brazil’s exports to its matrix in the United States.
In this operation opened by USTR to listen to those interested in the new White House trade policy, Amchaam Brazil was present.
The Brazilian section of the American Chamber of Commerce, the largest among 114 around the world, sent a letter to the White House, which defends the “organized institutional dialogue” between the two countries.
The arguments presented by AMCHAM: Brazil is responsible for the third largest surplus in the United States in the merchandise trade with the economies of the Group of Twenty; It is the fifth largest service for service exports in the country; US multinational companies have sent $ 54 billion to profits and profits to their preservants in the past ten years.
In short: The additional prices of Brazilian products will harm their private companies in the United States installed here.
Corporate alliances continue to explore. In May, the Brazilian businessmen’s footnote to collect Washington to find leaders from the American private sector. It is an attempt to “exhausting”, as president of the National Industry Union (CNI), Ricardo Alban, who is responsible for the organization.
3) Without noise and no press release, Ambassador Morrison Lerio was last week in Washington. Lyrio is the Minister of Economic and Financial Affairs of ITAMARATY, the main Brazilian negotiator in commercial issues, Sherpa do G20 and Brics.
He had a marathon of meetings that could be strengthened, in detail, Brazilian arguments. The American Chamber of Commerce, the largest commercial entity in the United States, and the Ministry of Commerce, approved. He had two important meetings in particular.
One, in the White House, was with Nils Nordquest, the American Sherba of G20, Trump’s economic policy adviser and deputy director of the National Economic Council.
He was another with the head of the Roads and Meaning Committee in the Actors Chamber, Jason Smith, Republic Missouri. Little through comparison, the equivalent of the Chairman of the Constitution and Justice Committee (CCJ) in Brazil, is a group where any relevant project is addressed. For this position and the party, Smith has a free traffic movement in the United States government.
The meetings emphasized a message that Brazil was part of the solution, not the American commercial problem, with the following surpluses that the country maintains. There may be a complaint or another in adhering to dates, but the relationship is favorable to Americans. That is, Brazil is part of “Clean Three” and not “Dirty 15”, Lyrio insisted.
– Without President Luiz Inasio Lula da Silva (PT) and Trump have never spoken. 10 % was the same as Argentina, Javier Miley (Trump’s friend) and Israel (the favorite partner).
The wide pessimistic mood in Brazilia has been replaced by a feeling of comfort between the Brazilian authorities and the private sector.
To summarize a diplomat as follows on Wednesday night (2): It is never good to take a “beating” in his head, referring to the 10 % average declared by Trump to Brazil, but “dozens” in dozens of other countries.
In the end, some entrepreneurs even hung in an exaggerated manner, improved the relative competitiveness of the Brazilian industrial products in the American market, given a significant increase in European competitors and Japanese Chinese.
Negotiation
The Brazilian government evaluates that there will be space, from now on, to negotiate the prices imposed by the White House in Brazilian products exports to the United States.
An example of this is the meeting to be held between Brazilian and American negotiators scheduled for next week. The meeting shows that the channel is still open to countries to continue negotiations.
The evaluation of these sources is that there is a change in the model of the global trade system, as the commercial trade sphere gives the way to a system that revolves around the United States- where the country is bilaterally negotiating with their peers.
