US–China trade dispute helps Brazil, says gov’t official

Marcello Estevão, secretary for international affairs at Brazil’s Finance Ministry, said Monday (Apr. 9) that the commercial dispute between the US and China could prove beneficial to Brazil, and, as a result, to Mercosur.

Estevão told journalists at the Mercosur and Trade Flows seminar, held at the Getulio Vargas Foundation (FGV), that the trade fight between two of the world’s biggest economies has been beneficial to Brazil, at least up to the present.

“Of course, a commercial war between two economies as big as the US and China can’t be good to anyone, and everyone’s got something to lose. From a local perspective, however, what I’ve noted is that it’s been helping us. Take soybeans, for instance. China’s decision to impose tariffs on US soybean exports helps Brazilian producers,” he said.

To his judgment, a poor atmosphere in global trade relations is good to no one. “It’s as if you were walking down the street and were hit by a stray bullet. That’s what happened to steel, for instance—we were almost hit by a stray bullet. It’s true that we managed to be an exception, but what if we didn’t?”

“If China really introduces a boycott or raises the tariff for commodities exported by the US in great amounts, Brazil would be benefited, as it’s a huge commodity exporter,” Estevão argued—adding, however, that “it might be a different issue tomorrow.”

The commercial race between China and the US is believed to help Brazil inasmuch as the nations interested in striking new deals and expanding trade relations will then start doing it with Brazil and Mercosur.

Former Finance Minister Henrique Meirelles, who also attended the event, said the country could create some 2.5 million jobs and consolidate its economic recovery. Nonetheless, Brazil should stick to the direction in which it is headed now in order to meet this goal, which includes the implementation of necessary overhauls, he stressed.

“In the coming years, I believe our next president will be able to consolidate a growing trajectory for Brazil at rates above 3.5%, even 4% by generating employment, boosting income, and bringing about conditions for investing in education, security, and health care, as well as in all the fundamental needs of the Brazilian state.”

Translated by Fabrício Ferreira