Friday, September 21st 2012 - 06:48 UTC

US calls on Brazil to reconsider proposed tariff increases in Brazil and Mercosur

US Trade Representative Ron Kirk urged the Brazilian government in a letter sent on Wednesday to reconsider plans for “protectionist” tariff increases expected to hurt US exports.

Ron Kirk sent a letter to Minister Patriota in “strong and clear terms”

“I am writing to state in strong and clear terms the United States' concern about scheduled and proposed tariff increases in Brazil and Mercosur,” Kirk said in the letter to Brazilian Foreign Minister Antonio Patriota.

Brazil triggered international concerns over growing protectionism when it announced plans to raise import tariffs on 100 foreign products. This is the latest step by President Dilma Rousseff to fend off competition from foreign producers, which has hit local industries and Brazil's economy.

The temporary increase in levies, initially for a year, would apply to products ranging from glass to iron pipes and bus tires. The rate will reach 25% for most of those products, an increase from the low teens.

“We live in a time when the world market is shrinking and exporters flood Brazil, which is one of the few growing markets, and our industry is being harmed by this,” Brazilian Finance Minister Guido Mantega told reporters this month.

Kirk said the US expects scheduled tariff increases around Sept. 25, and possibly more increases in October, to “significantly hit US exports to Brazil in key areas of export interest to the United States.”

“Further, these two sets of tariff increases follow earlier increases that have been implemented during the course of the past year ... Brazil's tariff increases will significantly restrict trade from current levels and clearly represent protectionist measures,” Kirk said.

“The overall effect is that an ever broader range of industrial goods faces deteriorating market conditions in Brazil's market,” Kirk said.

A spokesman for Brazil's foreign ministry said the criticisms were “baseless” and the letter was “unjustifiable.”

“This format is not consistent with the relationship we have with the United States,” ministry spokesman Tovar Nunes said in a telephone interview. He added that Brazil would likely have a formal response ready by Friday.

Kirk also expressed concern that Brazil's trading partners could respond by increasing their own tariffs, which “would amplify the negative impact” of Brazil's actions.
 

Published in: Economy, Politics, Brazil, Mercosur, United States.
Tags: Antonio Patriota, Brazil, Mercosur, protectionism, Ron Kirk, United States.

14 comments Feed

Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.

1 DanyBerger (#) Sep 21st, 2012 - 10:06 am Report abuse
Oh! poor captain Kirk again dealing with a strange alien culture...

Can he brings America Enterprise back to growth again?
www.youtube.com/watch?v=DMoWt0wnlUw
2 v for victory (#) Sep 21st, 2012 - 10:31 am Report abuse
Dany Berger

What?
3 briton (#) Sep 21st, 2012 - 11:13 am Report abuse
Kirk said,
It was a no win scenario,

So I changed the rules to suit me,

And thus made it a win, win , scenario for him [America]
mm
.
4 Idlehands (#) Sep 21st, 2012 - 11:27 am Report abuse
Brazil is deluding itself if it believes it can introduce tarrifs for the benefit of itself and then expect trading partners not to follow suit. It's a fools game.
5 briton (#) Sep 21st, 2012 - 11:30 am Report abuse
The british on the other hand, lowered the barriers and intodused FREE TRADE,

great,,,,,,,,,

others intoduced brarriers, and lost trade,
not so great ..
6 GastonBaires (#) Sep 21st, 2012 - 03:16 pm Report abuse
Because Britain has no other option!
7 Captain Poppy (#) Sep 21st, 2012 - 03:37 pm Report abuse
Victory.....don't pay dumburger any attention. It is educated at la campora and incapable of using reputable links thus it's consistent refernec to utube and wikipedia. You see, in the la campora labs, they implant a utube chip on the stem cord and then upload.......the birth of a troll. I can hear Fatsimo the Fat Fuck kirchner.....“Life....we have life!”
Anyway......he doesn't even life in south america. SO he is really pointless.
8 toooldtodieyoung (#) Sep 21st, 2012 - 05:02 pm Report abuse
That Lenny Henry has really let himself go, hasn't he?
9 Ottona (#) Sep 21st, 2012 - 07:34 pm Report abuse
Ron Kirk deserves the thanks of all Brazilians and all in MERCOSUR: Ron Kirk's rude, naive and inexerienced approach has finally UNITED BRAZILIANS RIGHT AND LEFT - against the USA ! Even the normally servile hyper-pro-USA “O Estado de Sao Paulo” showed the indignation against this almost comedic communication from “The Executive Office of the President” - The U.S. Trade Representative, “Ambassador” Ron Kirk. ---The first lesson about Latin America - which even some of the Brits have absorbed - is: NEVER CHALLENGE VERBALLY AND THEN EXPECT A SERVILE COMPLIANCE! This works in the U.S. a threat “you may need a good whacking”(in New Jersey), or “my nephew is a lawyer” (in New York), or “I file a complaint with the commission” (in Washington. D.C.). It does not work anywhere in Latin America! Even Mikey Cantor , the CIA-linked attorney, as U.S. Trade Representative used only veiled mafia-style hints about geopolitical consequences - which gave the other side the time to huddle and agree on a “negotiated settlment” (details “undisclosed”!). Thus “Ambasssador” Ron Kirk is not the right representative for the interests of the U.S. in 2012 and Latins are not going to give him a pass for being “minority person”. Brazil position is very clear: The “quantitative easing” by the U.S. Fed of TRILLIONS additional U.S. backed by hotair and with the burden of a U.S. debt of $15 trillion (of which $ 2 trillion to China, $ 1 trillion to Japan, $ 300+ billion to Brazil!) - has pushed Brazil's industry working with the solid REAL into competative disadvantage and has lead in 2011 to a trade surplus of the U.S. of $ 8+ billion over Brazil's export to the U.S. 2012 - to August, the U.S. trade surplus over Brazil is already $ 2+billion. At the same time, U.S. taxpayer subsized agricultural exports - are undercutting Brazil agricultural exports on the international markets. Now Brazilians rally together against “Ambassador” Kirk !
10 ChrisR (#) Sep 21st, 2012 - 08:19 pm Report abuse
9 Ottona

The solid real???

Which planet have you been on recently?

Brasil have been devaluing the Real to boost exports for months now.

To quote a pun: get real!
11 briton (#) Sep 21st, 2012 - 08:20 pm Report abuse
6 GastonBaires (#)
Because Britain has no other option!
,,,,,,,,,,,,,,,,,,,,,,,
britain invented it old chap...
12 Fido Dido (#) Sep 22nd, 2012 - 12:43 am Report abuse
Ron Kirk, obombo's crony bogus free trader is crying.

“Can he brings America Enterprise back to growth again?”

No, cause the facts are, they screw things up with more regulations and tax increases and Romney is no diferrence if any idiot here thing that the Republicans will “save” jobs.
13 briton (#) Sep 22nd, 2012 - 10:43 am Report abuse
Romney
Sounds like a nice typical American guy,
Sadie he seems to suffer from Amnesia .

They say, uses satellite navigation just to find his way home,
Sadly..
.
14 British_Kirchnerist (#) Sep 25th, 2012 - 01:11 am Report abuse
#1 lol =)

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!

Advertisement

Get Email News Reports!

Get our news right on your inbox.
Subscribe Now!

Advertisement