Brazil initiates 'Sovereign Plan' to counter US tariffs: offering corporate loans, export tax rebates, and employment guarantees, strengthening multilateral trade cooperation, and safeguarding economic autonomy.
Xinhua News Agency, Brasilia, August 13 (Reporter Wu Hao) - Brazilian President Lula approved the launch of the "Brazilian Sovereignty Plan" on the 13th, which will take various measures to address the impact of U.S. tariff increases and encourage investment in strategic sectors to safeguard Brazil's economic development.
On August 13, Brazilian President Lula attended the launch ceremony of the "Brazilian Sovereignty Plan" in the capital Brasilia.
According to a statement released by the Brazilian Presidential Palace on the same day, the Brazilian government will provide preferential loans to companies affected by U.S. tariffs through multiple guarantee funds, and small and medium-sized enterprises can also obtain financing. The government will allow severely affected companies to postpone the payment of federal taxes and extend the tax refund period for companies originally planning to export goods to the U.S., promoting the sale of products to other countries. In addition, the government will modernize the export guarantee system and increase guarantees for medium-high technology and green economy export companies.
The statement indicated that Brazil will establish a National Employment Monitoring Committee to monitor the employment status of companies and related supply chains affected by U.S. tariffs, strengthen labor rights protection, and strive to reduce job losses.
According to the statement, Brazil will strengthen cooperation with trade partners outside the U.S., reduce dependence on U.S. exports, and firmly fulfill its commitment to multilateralism by participating in World Trade Organization affairs.
The statement reiterated that Brazil is still willing to engage in constructive dialogue with the U.S. to resolve trade disputes through negotiations, safeguarding the interests of companies, workers, and consumers in both countries.