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Brazil Calls US Threat to Drop Preferential Tariff Unfortunate Pressure Tactic

Brazilian Foreign Minister, Celso Amorim, said it would be an "unfortunate" gesture if the United States excluded Brazil from the General System of Preferences which benefits exports of developing countries.

Earlier this month, the United States said it would review the GSP which allowed US$ 26.7 billion in imports from eligible developing countries in 2005. Among countries targeted to be withdrawn from the list are 13 developing economies including Brazil, Argentina and Venezuela, as well as India and Russia.

U.S. Trade Representative Susan Schwab has called for the first review of the program in 20 years, which expires next December 31 and could determine if some advanced developing countries should "graduate" out of the favored trading status.

Comments are due by September 5. "It would be unfortunate" Amorim told journalists. "It’s a gesture that would be difficult to understand at a time when we are trying to strengthen cooperation. But I hope it doesn’t happen."

United States announced it will review trade preferences following the suspension of the World Trade Organization, WTO, Doha Round talks earlier this month. Many US congressmen blamed the failure on the reluctance of large developing nations like Brazil and India to open their economies further.

Amorim described the US announcement "a poorly aimed pressure tactic" and said developing nations like Brazil "are not part of the problem but rather the solution" to successful WTO negotiations.
He went on to call the move if it finally becomes effective "inefficient, unjust and counterproductive."

Brazil would lose and estimated 300 to 400 million US dollars in annual exports if the GSP trade benefits are cancelled, according to the American Chamber of Commerce in Sao Paulo. GSP programme waives import tariffs on 3,400 Brazilian products. Last year Brazil exported 24.4 billion US dollars to United States and 3.6 billion came from products covered by the GSP programme.

The 32-year-old GSP programme waives import duties on thousands of products from 133 developing countries and expires at the end of the year unless renewed by Congress.



  • Show Comments (3)

  • yep

    the post above is right on target.


    “Many US congressmen blamed the failure on the reluctance of large developing nations like Brazil and India to open their economies further. “

    Brazil taxes the shit out of american imports, and ALL imports for that matter, why do they expect other countries to not tax theirs?

    Reciprocity and fairness are not in the brazilian language

  • ch.c.

    In Brazilian language……..
    ….the words Reciprocity and Fairness simply dont exist.
    In their language, Trade mean more exports not imports, despite that they already have a huge trade surplus.
    In fact their overall trade surplus is far bigger than China, when looked comparatively.
    In 2005 China had a trade surplus of US$ 100 billions within their overall trade of US$ 1400 billions (750 for exports/650 for imports) while Brazil had a surplus of US$ 44 billions within their overall trade of US$ 200 billions (120 for exports/80 for imports)

    This means that China had a surplus of around 8 % of their overall trade and Brazil had a surplus of 20 % !!!!!!!!!

    No doubt that except for a few small oil producing only countries, Brazil has another world record.

    And they cry to get more.

    In fact the same is happening in their own society with one of the world highest wealth inequality ! And that is enough there either.

    Quite shameful….their attitude !

    They have far more trade barriers and import taxes than any developed country, but they want to give very little provided they get a lot in their favor.
    A little too easy from a developed country with the highest poverty rate in the world when compared to their GDP per capita.
    Brazil is NOT a poor developing country. Thus how can they have the highest poverty rate in a not so poor country ?????
    Simply because….. Reciprocity and Fairness are not in their way of thinking !
    Nothing has changed and nothing will ever change.
    That is the Brazilian way of life

  • Gem Hudson

    Professional Outcast
    The security and prosperity partners of North America wants less of a barricade to their slave labour trade and that is what they call prosperity. Now what about this Brazzil?

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