Key points
- Haddad slams Washington-based lobbyists
- Tariffs linked to Bolsonaro’s coup trial
- Brazil eyes southeast Asia, EU for trade alternatives
ISLAMABAD: Brazil’s Finance Minister Fernando Haddad stated on Monday that his virtual meeting with US Treasury Secretary Scott Bessent had been cancelled, despite initially being scheduled for Wednesday.
The cancellation was seen as a setback for the Brazilian government, which had intended to use the meeting to negotiate tariff relief following the Trump administration’s decision to impose 50 per cent duties on several Brazilian exports.
Speaking to GloboNews TV, Haddad expressed disappointment that Brazil had not even been given the opportunity to sit down for talks with the United States. He criticised what he described as “pseudo-Brazilians” based in Washington who were lobbying against their own country, according to Reuters.
Coup attempt
The tariff increases were linked by the Trump administration to the trial of former President Jair Bolsonaro, a right-wing ally, who is facing charges related to an alleged coup attempt after his defeat in the 2022 election.
Congressman Eduardo Bolsonaro, son of the former president, has been in the US since March, actively campaigning for sanctions against those involved in the legal proceedings.
Haddad said Brazil must now pursue alternative markets more assertively, identifying Southeast Asia as a particularly promising region. He also stressed the need for urgent progress on a long-awaited trade agreement between the Mercosur bloc and the European Union.
Issuing executive order
The minister added that the government would soon issue an executive order to mitigate the impact of the increased US tariffs.
The proposed measures will include structural reforms to Brazil’s export guarantee system via the Export Guarantee Fund (FGE).
According to Haddad, the order will also support certain government procurement and credit initiatives, forming a comprehensive package to assist the approximately 10,000 companies affected.
He emphasised that no single solution exists, hence the need for a multi-faceted approach.
