Brazil’s new Trade Reciprocity Law officially went into effect after being published in the country’s Official Gazette. The new legislation gives the Brazilian government the authority to impose trade measures against countries or economic blocs that apply unilateral barriers to Brazilian goods in the global market, according to a statement from the presidential office.
The law was approved by Brazil’s Congress earlier this month and signed without vetoes.
The move comes as a response to escalating global trade tensions, initially sparked by former U.S. President Donald Trump’s administration, and more recently focused on trade with China. For Brazil, new U.S. tariffs include a 10% duty on most exports to the American market, with steel and aluminum facing even steeper tariffs of 25%. These new measures have significantly impacted Brazilian exporters, the third-largest suppliers of these metals to the U.S.
How the New Law Works
The Trade Reciprocity Law sets clear guidelines for how Brazil can respond to foreign policies or actions that "negatively impact Brazil’s international competitiveness." It applies to countries or blocs that "interfere with Brazil’s legitimate and sovereign choices."
Under Article 3 of the law, Brazil’s Foreign Trade Chamber (Camex) is authorized to impose countermeasures, including restrictions on imports of goods and services. The law also encourages negotiation before any retaliatory actions are officially taken.
(Source: Agência Brasil)