The United States government has included deforestation in the Amazon and the growth of Brazilian agricultural production among the arguments used to recommend new tariffs on products exported by Brazil. In a document released this week, the Office of the United States Trade Representative (USTR) cites the peak of deforestation recorded in 2021, during the government of Jair Bolsonaro, and states that the illegal destruction of forests has contributed to reducing production costs and increasing Brazilian competitiveness in the global market.
The report is part of the preliminary findings of the investigation conducted by President Donald Trump's administration and served as the basis for the recommendation of a 25% tariff on several Brazilian products. Despite this, significant export items such as coffee, fruit, beef, and aircraft were left off the main list of tariffs.
Deforestation at the center of the discussion
According to the American document, Brazil has not been able to consistently eliminate illegal deforestation, even with recent advances in environmental enforcement.
The United States highlights that deforestation reached its highest level in 15 years during 2021 and states that the inability to fully enforce environmental laws has turned the problem into a systemic issue.
At the same time, the report acknowledges that the Lula administration intensified enforcement actions and managed to reduce deforestation rates in recent years. Even so, the text argues that future policy changes could reverse these advances.
Soybeans and competitiveness
One of the main points addressed by USTR involves Brazilian agricultural production, especially soybeans.
According to the American assessment, previously deforested areas offer lower costs for the expansion of agricultural activity, allowing Brazilian products to reach the international market at more competitive prices. The report argues that this situation puts pressure on global prices and affects foreign competitors.
The document also mentions the weakening of the Soy Moratorium, an agreement signed in 2006 by major international trading companies to prevent the purchase of soy produced in areas deforested after 2008.
The departure of major companies from the pact is cited as a factor that could reduce the effectiveness of environmental control mechanisms.
Cattle laundering charges
Another issue highlighted by the report is the so-called "cattle laundering," a practice in which animals raised in illegally deforested areas are transferred to legally registered properties before being sold to slaughterhouses.
According to the American government, the lack of efficient oversight can facilitate the entry of products originating from irregular activities into global supply chains. The text also mentions suspicions of bribery involving inspection processes and the granting of environmental licenses.
Mato Grosso comes under scrutiny.
The document also refers to legislation passed in Mato Grosso that allows the state government to withdraw tax benefits from companies that adhere to private agreements with stricter environmental requirements than those stipulated by federal law.
According to the USTR, the measure contributed to the weakening of the Soy Moratorium and encouraged large companies to withdraw from the environmental pact.
Diplomatic impacts
The release of the report adds a new element to the growing trade tension between Brasília and Washington. Although the Trump administration justified the tariffs based on trade and environmental issues, critics point to contradictions in the American position, since the current administration also promotes the exploration of fossil fuels and has reduced investments in climate policies.
Leave a comment