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With the imposition of restrictions on the purchase of Brazilian steel by the European Union, the Bolsonaro government prepares the reaction to its first battle commercial.
One of the ideas is to take advantage of the World Economic Forum in Davos (Switzerland) next week to get closer to other input exporters concerned by the measure and to organize a joint action against European barriers.
According to government sources, Brazil could even look for China, the world's largest producer and exporter of the product. It's even after Bolsonaro's critics in the campaign and praise for the United States, a country that launched a trade war against the Chinese, which began with sanctions against the sale of steel.
According to sources, Brazil also intends to use multilateral mechanisms such as the World Trade Organization (WTO). While Mercosur intends to give priority to the negotiation of a trade agreement with the European Union, the Brazilian government has ruled out retaliation from the list of measures to be adopted in response to European barriers.
Although already organizing the reaction, the According to the government, the volume of Brazilian exports reached is low and, with the imposition of quotas for the sale, the industry is still partially attended. According to the Statistic / Broadcast, some members of the government consider the restrictions imposed on steel as a "currency of exchange" that could possibly promote negotiations between the South American and European blocks.
Vulnerability
According to Marco Polo of Mello Lopes, president of the Brazilian Institute of Steel (IABr), the EU decision was already expected given the global glut of raw material and the trade war between China and the United States. "We predicted this would happen given this protectionist wave and, of course, any closure of the market would be a bad thing for our industry." Protect your money from uncertainties Invest with the help of the best advice in Brazil: open an account in XP – it's free!
According to him, the measure further impedes the possible recovery of the Brazilian steel industry, currently operating according to the data of the Institute, with 70% of its installed capacity: "If we we have a weak domestic market, the production is an exporter, but we also have trouble doing it with these barriers. " Our industry is losing competitiveness and I do not know what will happen. "
(COLLABORATION ANA NEIRA and Mónica SCARAMUZZO) The information comes from the newspaper O Estado de S. Paulo
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