According to Tasso Azevedo, forest engineer and coordinator of the climate-not-for-profit greenhouse gas emissions estimation system (SEEG), “the new MAPA plan ignores or touches on the main challenges facing agricultural production, such as managing climate change and preserving soil and water… But the most incredible thing is that there is no evidence of deforestation. According to experts, the agricultural plan does not bode well for the ratification of the EU-Mercusor trade agreement. For Brazil, the most important growth is not only on exports and access to imports from EU countries, but also on important sectors. Brazil will be able to obtain cheaper intermediate consumption for the production of industrial products, with the total elimination of its import duties for several products, which will eliminate some of the production costs when purchasing these products from other markets. As a result, these benefits will increase the competitiveness of Brazilian products. Brazil was a worthy opponent of the World Trade Organization. Trade experts will remember Brazil`s 2002 WTO cotton case against the United States over unfair U.S. subsidies to cotton producers. Brazil won the case in 2004, although a real solution was found only after numerous appeals, arbitrations and counter-measures. Brazil`s Supreme Court has authorized an investigation into allegations that Bolsonaro attempted to illegally interfere with the country`s federal police for political reasons.
Based on the results of the police investigation, which are 60 days long, the Crown will have to decide whether charges will be laid against the president or his former minister. However, the legislature would have to agree to charge Bolsonaro before it could go to the Supreme Court, and his supporters in the lower chamber would probably block that. Washington, D.C. – Today, the United States and Brazil signed a new protocol on trade rules and transparency. This protocol updates the 2011 Trade and Economic Cooperation Agreement (ATEC) with three new annexes, which contain the most modern provisions for customs management and trade facilitation, good regulatory practices and anti-corruption. Fearing Macron`s attitude, French and Brazilian businessmen (particularly Brazilian agricultural interests) are pushing their respective governments to ease tensions between the two countries in favour of the mercosur trade agreement with the EU. Diplomats from both countries will participate in a video conference tomorrow, Tuesday, during which they will review their bilateral agenda. One of the biggest opponents of the trade deal is the French government of Emmanuel Macron, whose party did not triumph in the municipal elections of 28 June 2020 against the victorious Greens. The next day, Mr Macron suspended negotiations with the EU-Mercosur bloc. “[We] will not conclude a trade agreement with countries that do not comply with the Paris agreement,” Macron said, a clear reference to Bolsonaro and the Brazilian government.
If the ue-mercuseur treaty – the largest global agreement ever negotiated – is adopted, it will create an open market of 780 million people with a gross domestic product (GDP) of $19 trillion between the two blocs. The pact is of great value to both parties: in EU countries, most export tariffs to Mercosur are abolished, including for cars and chemicals; while the South American bloc, which includes Brazil, Argentina, Paraguay and Uruguay, will benefit from an exemption from import taxes on 81.7% of agricultural products.