Representatives from the sector contested arguments from the Trump administration's investigation against Brazil during a hearing in Washington on Wednesday.
On last Wednesday, September 3, representatives of Brazilian agribusiness contested allegations of unfair trade practices against the United States. The parties participated in hearings in Washington organized by the Office of the U.S. Trade Representative (USTR) as part of an investigation under Section 301*.
U.S. trade law provides for the opening of such investigations. If practices deemed "unfair or discriminatory" are proven, it allows for the unilateral adoption of sanctions. The investigation against Brazil covers issues such as access to the ethanol market, illegal deforestation, and the use of preferential tariffs.
Sueme Mori, international relations director of the Brazilian Confederation of Agriculture and Livestock (CNA), emphasized the Brazilian agricultural sector’s willingness for constructive dialogue with the United States.
“We are certain that a trade relationship based on evidence, integrity, mutual respect, and common objectives is essential,”
she said.
According to Mori, Brazil has a limited network of trade agreements — only 5.5% of agricultural exports benefit from preferential tariffs. She highlighted the mutual benefits of bilateral trade:
“If, on one hand, the American market is the third main destination for Brazilian agricultural exports, on the other, we are a relevant consumer of inputs, technologies, and industrial equipment produced in the U.S.”
In the environmental area, Mori drew attention to Brazil’s Forest Code — one of the strictest laws in the world. Today, 66% of the national territory is covered by native vegetation, half of which is on private rural properties.
“We brought other evidence that the sector’s growth was achieved following international trade rules,”
she added.
Regarding access to the ethanol market, Mori reported that in 2024, Brazil imported 17 times more ethanol from the United States than from India, while imports from Mexico were negligible.
Welber Barral, partner at consulting firm BMJ, representing the Brazilian Sugarcane and Bioenergy Industry Union (UNICA) at the hearings, rebutted allegations that Brazilian ethanol production is subsidized, involves deforestation, or child labor. “There is data contrary to all of this, and we intend to present it,” he said.
Marcos Matos, general director of the Brazilian Coffee Exporters Council (Cecafé), highlighted the importance of Brazilian coffee exports to the U.S. market, which accounts for 30% of coffee consumption in the United States. He warned that import tariffs could disrupt the coffee market, cause price increases, and fuel inflation amid already rising commodity prices globally.
“We must seek to mitigate these impacts as soon as possible, with this positive agenda being built through active participation, both in the 301 trade investigation and in North American institutions,”
Matos said.
Cecafé is working to include coffee on the exception list to the U.S. 50% tariff increase that took effect on August 6. The council plans to appoint a representative in Washington within the coming weeks to act as an intermediary between the sector and U.S. authorities.
“We must invest to the maximum. Our main job is to defend in the 301 investigation, build bridges, seek to expand the exception list,”
Matos emphasized.
*Section 301 is a U.S. trade policy instrument established under the Trade Act of 1974. It authorizes the USTR to investigate and take action against foreign trade practices deemed unfair, discriminatory, or in violation of international trade agreements, including WTO rules.
Source: Valor International
