Trade protection measures taken by the United States have an impact of US$ 1.6 billion on Brazilian exports per year. The estimate appears in a survey published by the National Confederation of Industry (CNI).
Two years ago, President Donald Trump's administration began to adopt measures affecting Brazilian exports. The first was the imposition, in March 2018, dues for purchases of steel Brazilian and the imposition of 10% on purchases of aluminum in the country. These two measures had an impact of US$ 1 billion per year, in the case of steel, and US$ 200 million for aluminum sales.
The measure was taken through Section 232, because the imports violated the national security of the United States. Several countries, such as Russia, India and Turkey, and the European Union have filed complaints at the World Trade Organization (WTO) against the Americans.
The other two measures that harmed Brazilian exports were taken this year 2020In January, the United States began an investigation that could slash exports of frames wood from Brazil and China by up to 200%. According to the CNI, this action could reduce Brazilian exports by US$ 300 million per year.
The most recent measure was taken in March, when the United States opened new investigations into dumping and subsidies against imports of sheets of aluminum from Brazil and 13 other countries, with the possibility of overcharging products by up to 27%. The action could affect Brazil's trade balance by up to US$ 100 million per year.
The most recent actions were possible because The United States unilaterally revoked preference margins for developing countries in action against subsidized imports. The US government has also amended legislation to consider exchange rate manipulations as subsidies and pave the way for surcharges.
Last year, Brazil imported $300 million more than it exported to the United States, its second-largest trading partner. There were $29.7 billion in exports and $30 billion in imports. In the first five months of 2020, exports to the United States of manufactured goods fell by about 30% through May, or $3.2 billion, compared with the same period in 2019.
Source: Brazil Agency
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