BRASÍLIA: Brazil has unveiled a sweeping package of measures to support exporters hit by the 50 per cent tariff imposed by the US government.
Launched on Wednesday, the initiative called Sovereign Brazil will provide 30 billion reais (about 5.562 billion US dollars) in affordable loans, tax breaks, and other relief measures, prioritising small businesses and exporters of perishable goods, Xinhua News Agency reported.
The plan also facilitates public procurement from affected rural and agro-industrial sectors, modernises the export guarantee system, and reactivates a program to refund taxes in the production chain.
Speaking during the announcement, Brazilian President Luiz Inacio Lula da Silva rejected the US government’s arguments for imposing tariffs on Brazilian products.
“It is important to say that we cannot become nervous, apprehensive, or overly excited when there is a crisis. Crises exist so that we can create new things. The unpleasant thing is that there are no justified reasons for imposing tariffs on Brazil,” Lula said.
While calling the tariff unjustified, Lula said Brazil would not apply reciprocal measures for the time being.
“We are not announcing reciprocity. Take note of how good we are at negotiating. Initially, we don’t want to do anything that would justify worsening our relationship,” he added.
Lula also addressed one of the reasons cited by the White House for the tariffs — that trying Brazil’s former President Jair Bolsonaro for allegedly attempting to overthrow the government was a human rights violation.
“Brazil had no reason to be taxed, and we will not accept any accusations that we do not respect human rights in Brazil and that our trial is being conducted arbitrarily,” he asserted.
In July, amid escalating tensions with Washington over the tariffs and new digital regulations, Lula made it clear that Brazil would not tolerate foreign interference in its internal affairs.
Speaking to thousands of students at a national congress in Goiania, in south-central Brazil, Lula dismissed any link between the tariffs and Bolsonaro’s prosecution.
“We won’t accept interference from any foreign country,” he said.
He pledged a civil and democratic response, while announcing that US-based digital platforms would be required to comply with Brazilian laws and pay taxes. Lula accused the companies of spreading disinformation and harming Brazilian society.
“This country is sovereign. No foreigner gives orders to the president of Brazil. My only boss is the Brazilian people,” he declared.
-WNN Desk
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