US President Donald Trump threatened to impose 100% rates on products from BRICS the block that brings together the largest emerging economies in the world, including the Brazil in response to discussions about the Creation of an alternative currency to the dollar for commercial negotiations.
According to the Senior Analyst of Internacional da CNN Américo Martins, Trump’s threat puts direct pressure on the Brazilian government, which currently occupies the BRICS presidency and will be responsible for organizing the next summit of the bloc.
“Brazil will or avoid this or will have to find ways to coordinate this theme,” explained the analyst.
Impact on commercial negotiations
The expert pointed out that the discussion about the use of alternative currencies in bilateral trade has already been occurring in previous BRICS domes.
The idea is to leverage trade between the bloc countries, cheaper and facilitating transactions especially for nations with financial difficulties.
Américo also pointed out that Trump is right in two aspects of his argument about tariffs: first, indicating that there are differences in the tariffs charged by countries, as in the case of the ethanol between Brazil and United States ; and second, by stating that the equalization of tariffs would simplify the trade process.
Weakening of multilateral organizations
However, the analyst stressed that Trump’s stance ignores the fact that many of these rates were negotiated within the World Trade Organization (WTO) . “Donald Trump intends to weaken any multilateral international organization that does not directly meet the interests of the United States,” said Américo.
The expert concluded that Trump’s actions, including the threat of tariffs and the departure of international agreements, are part of a strategy to impose a new order that ignores multilateral organisms, establishing a “strongest law” on international trade relations.
This content was originally published under analysis: Trump’s threat to BRICS countries imposes challenge on Brazil on CNN Brazil.
Source: CNN Brasil
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