Brazil, US set up working group to discuss potential trade agreement
EWZ•Brazil and the United States will establish a working group to discuss a potential trade agreement. The US plans to submit a proposal in the coming weeks covering the scope of negotiations, including tariff and nontariff issues.
1. Trade talks planned
The Brazilian government said the two countries agreed to establish a working group after officials met on the sidelines of the G20 Trade Ministers' Meeting. The US will submit a proposal in the coming weeks outlining the scope of negotiations, and both sides aim to move swiftly toward a mutually acceptable understanding.
2. Tariffs remain in background
The meeting follows an August phone call between US President Donald Trump and Brazilian President Luiz Inacio Lula da Silva. In July, Washington announced tariffs of 25% on some Brazilian goods, alleging unfair trade practices, and 12.5% tariffs linked to allegations of lax enforcement of forced labor bans. Lula said earlier this month that Brazil would not use its reciprocity law against the US while trade talks continue.
