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 in the trade relationship between the two countries.
The agreement was announced this Wednesday (30), following a meeting between 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 comprising the 19 largest economies in the world, plus the European Union and the African Union. According to the Mdic, the US government is expected to send 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 obstacles between Brazil and the United States. The goal is to assess possible solutions and advance negotiations on a potential agreement.
In a statement, the Mdic explained that the Brazilian ministers reaffirmed the government's willingness to seek solutions through dialogue and negotiation, with a focus 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. The two countries recognized the need to move forward in overcoming existing obstacles and expressed a willingness to work toward reaching an understanding.
Tariffs in effect
The negotiations are taking place amid the application of additional US surcharges on part of 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% on imports from countries classified by the United States under its policy related to forced labor. According to the Mdic, the two measures announced in July affect portions of Brazilian exports.
The 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 phone, after which representatives of the two countries resumed contacts to address the trade relationship.
Ten days later, ministers and technical representatives of the two governments participated in a virtual meeting to advance the negotiations. Wednesday's meeting in Milwaukee represents the in-person stage of this process.
Next steps
The next step will be the sending, by the United States, of the 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 understanding between the two countries.
The meeting takes place during the G20 ministerial meeting on trade, hosted in Milwaukee on September 30 and October 1. The US Trade Representative, Jamieson Greer, is the host of the meeting.