President Luiz Inácio Lula da Silva will today sign the provisional measure Brazil Soberano, allocating five thousand five hundred and sixty million dollars in credit to mitigate the impact of recently imposed US tariffs on national exports.
The main provision is the creation of a multi-million-dollar credit line aimed at companies that have suffered losses from the 50 per cent tax increase, which came into force on 6 August.
According to Lula, this figure could be expanded if the situation requires.
«This measure is fundamental to show that no one in this country will be left without support due to measures taken by President [Donald] Trump,» he stated in an interview with BandNews FM radio.
In addition to credit, the federal government’s plan includes government purchases of products affected by the tariffs, especially food, which will be destined for social programmes.
The objective is to prevent surpluses originally intended for the US market from going unsold.
Another pillar of the strategy is opening new international markets for Brazilian products.
«We need to help entrepreneurs open markets and also encourage them to fight for them,» expressed Lula, noting that lists of goods Brazil used to sell to the US are being sent to other countries.
The president emphasised that the measures seek particularly to protect small exporting companies, such as those trading tilapia, honey, fruit, and light machinery. These, he specified, are the most vulnerable to changes in international trade rules.
The Executive is also working on the diplomatic front. Lula confirmed that Brazil is considering appealing to the World Trade Organisation against the US tariffs and applying the Reciprocity Law if necessary.
Nevertheless, he stressed the importance of maintaining a balanced diplomatic relationship with the United States, a country with which Brazil has historical ties.
«We will weigh the consequences for the Brazilian people and for our relationship with the United States whenever we have to make a decision,» stated the former trade unionist, who clarified that trade with the northern nation currently represents 12 per cent of Brazil’s total, compared to 25 per cent in previous decades.
Finally, Lula clarified that he is willing to negotiate: «I do not know what negotiation experience President Trump has, but I have been negotiating with factory bosses since 1968. The important thing is to sit down at the table and negotiate,» he underscored.
The Republican justified the so-called tariff hike as a response to alleged attacks by Brazil against freedom of expression and the treatment given to former far-right president and ideological ally Jair Bolsonaro, accused of being a coup-monger.
