Temer and Pence discuss steel and aluminium tariff exemptions

Cesar Itiberê/PR

For Temer, this is a propitious moment for American investors in Brazil

President Michel Temer announced on Tuesday (26 June) after meeting with US Vice President Mike Pence that the two countries are debating an exemption of US-imposed import tariffs on steel and aluminium.

President Donald Trump has ordered a 25% surcharge on steel and 10% on aluminium purchased by the US from other countries. In May, the US Commerce Department announced that the new rule would initially not apply to Brazil.

“Vice President Mike Pence even took the initiative to raise the issue of steel and aluminium, and we agreed to continue working to remove trade barriers," the president said. The two countries have strong economic ties, with bilateral trade reaching US$ 51 billion in 2017.

The US is currently the main destination of Brazilian manufactured products, Temer said. "US investments in Brazil are voluminous - more than US$ 100 billion. Brazil's investments in the US are also significant and growing – in twenty years, they have increased more than tenfold. In fact, Brazilian investments create about 100,000 jobs there”.

Democracies

For Mike Pence, Brazil is experiencing a special moment of resumption of the economy and reinvigorated democracy, and the commercial relationship between the countries can be strengthened. "Today, we are the largest economies and democracies in the region. And as we look to the future, our strategic partnership is a great opportunity," he said.

Pence recalled the government's efforts to institute reforms that would improve the country's economic and social structures: "You've advocated a reform agenda here in Brazil that includes capping government spending, unshackling your labour markets, and opening your energy sector. These policies are important because they improve Brazil's economy and international competitiveness, even in periods of crisis”.