Good morning! Brazilian firms face U.S. woes over Bolsonaro’s environment policies. Central Bank brings interest rate up to highest level in 18 months. No consensus over a third way to challenge Bolsonaro and Lula.
U.S. Innovation and Competition Act brings risks for Brazilian exporters
When the U.S. Senate passed the Innovation and Competition Act last week, all eyes were on provisions related to China. As Axios pointed out, the bill aims at “revitalizing U.S. manufacturing and research and cracking down on Beijing’s economic abuses.” But one point could spell doom for many Brazilian exporters: the terms in the extension of the American Generalized System of Preferences (GSP).
- The GSP is a trade program that provides nonreciprocal, duty-free treatment for certain U.S. imports from eligible developing countries. It expired on December 31, but was renewed until 2027.
- The new bill modified eligibility criteria for beneficiary countries, including “effectively enforcing its environmental laws or regulations through a sustained or recurring course of action or inaction.”
Yes, but … Under Jair Bolsonaro, Brazil’s environmental policies have become a lightning rod for global criticism. Just yesterday, NGO Imazon revealed that 1,125 square kilometers of the Amazon were destroyed in May alone.
- Mr. Bolsonaro...