Brazil Economy Minister Durigan rejects US Pix allegations, opposes extra tariffs.

Brazil Economy Minister Dario Durigan issued a sharp response to a report by the Office of the United States Trade Representative (USTR) that proposed new trade measures against Brazil. The Washington administration's allegations that Brazil is engaging in unfair competition in digital trade and payment systems, specifically accusing the country's widespread payment tool Pix of harming American companies, were found baseless by Durigan. Speaking to Reuters and g1 during an event in Beijing, the capital of China, the Minister argued that the USTR's report recommending an additional 25% customs duty lacks a technical and rational basis.

At the center of the dispute are suspicions by the US Department of the Treasury and the USTR that Brazil is using its digital economy and payment infrastructure to restrict market access for American technology and finance giants. In a preliminary report published on June 1, the USTR alleged that Brazil used its Pix system in a way that constitutes a trade barrier, and violated international rules regarding intellectual property rights, environmental standards, and the obstruction of America's sugarcane and ethanol exports. Countering these claims, Durigan emphasized that Pix is an open and universal infrastructure, accessible to all companies operating in Brazil on equal terms, and expressed that technical arguments favor Brazil.

Minister Durigan stated definitively in his interview that there is no logical basis for the US argument that Pix harms American players, asserting that Brazil is right on this matter. He argued that Pix is not merely a local payment method, but a massive financial infrastructure project developed over years that stands at an equal distance from all market participants. In this context, he highlighted that there are no barriers for any firm or individual operating in Brazil to use the Pix system and that the system has a non-discriminatory structure, arguing that US concerns are unfounded.

The USTR report in question is part of an official trade review expected to be completed by September, raising the possibility of the US applying an extra 25% tariff on imported products from Brazil. However, regardless of this preliminary recommendation, the final decision is expected to take shape based on the evidence examined and the defenses made. Durigan emphasized that the process has not yet concluded and that it is essential for commercial dialogue and technical talks between the United States and Brazil to continue, expressing hope that negotiators will act with reason and logic to prevent these possible trade sanctions.

To resolve this developing trade tension, a strong lobbying effort has also been launched from Brazil; farmer organizations, such as the Brazil Agriculture Cooperation Platform and secondary product producers, will participate in talks to be held in Washington on Monday to make significant initiatives to maintain the exemptions applied to America's agricultural products. Protecting agricultural products, which are exempt from the additional tax and are among the areas where the USTR accuses Brazil of unfair trade practices, is seen as a top priority for Brazilian exporters. On the other hand, Durigan's statements highlight the message that he wants to contribute to resolving the issue by focusing on technical principles rather than US internal politics and trade policy.