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In Washington, Rural Entity Challenges Accusations of Unfair Competition and Presents Data on Innovation, Trade, and the Robust Environmental Legislation Governing the Sector.
The Confederation of Agriculture and Livestock of Brazil (CNA) strongly defended the national agribusiness in a public hearing in Washington on Wednesday (3). The entity argued that the strength of Brazil’s Agro has “legitimate foundations”, such as natural resources and innovation, directly rebutting an investigation by the United States into alleged harmful commercial and environmental practices.
Legitimate Foundations: The Basis of Brazilian Competitiveness
Participating in the hearing on the Section 301 of the U.S. Trade Act, CNA’s Director of International Relations, Sueme Mori, rejected any insinuation that Brazil relies on unfair practices. She emphasized that the competitiveness of the sector comes from solid foundations, such as its vast natural resources and ongoing investments in technology.
“Brazilian rural producers operate under strict compliance standards, ensuring safety, quality, and transparency for international consumers, including Americans”, stated Mori in an official note.
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While Brazil pays a minimum wage of R$ 1,621, in Switzerland, Germany, France, and Belgium it reaches R$ 28,000, and Europe exposes the difference in workers’ earnings.
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Low-wage workers are losing their PIS/Pasep without even realizing it because the government changed the adjustment rule, and anyone who receives any salary increase may lose eligibility for the benefit.
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The end of a classic document caused a short circuit in the Receita Federal, and now over 1 million tax returns are stuck in the Income Tax audit due to errors that are not the taxpayers’.
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A company that produces clothes for some of the world’s biggest brands invested R$ 14 million in Blumenau and will jump from 150 thousand to 450 thousand pieces per month in SC.
Understand the U.S. Investigation and the Risks for Brazilian Agro
Section 301 is a law that allows the U.S. government to investigate commercial practices it deems “unfair”. If the investigation, initiated on July 15, concludes that there is harm to the U.S., the country may impose unilateral retaliations.
The risk for Brazilian agro is the imposition of even higher tariffs than the 50% already affecting various sectors. Essential products for the trade balance, such as coffee and beef, are among the possible targets. Brazil is the world’s largest exporter of both, and the U.S. is a vital market.
Technical Arguments: The Reality About Tariffs and Ethanol
The CNA presented a robust technical defense on August 15. Sueme Mori explained that Brazil has a limited network of trade agreements and that only 5.5% of Brazilian exports benefit from preferential tariffs. Over 90% of import trade follows equal treatment, also benefiting American products.
Regarding ethanol, another questioned point, the director was emphatic: in 2024, Brazil imported from the United States 17 times more ethanol than India, demonstrating the openness of the Brazilian market.
Sustainability and Legislation: The Rural Producer as a Preservation Agent
In environmental matters, the CNA highlighted that Brazil has one of the most specific legislations in the world, which mandates the preservation of native vegetation on private lands. The data presented is clear: 66% of the national territory is covered by native vegetation.
Crucially, half of this area is preserved within private rural properties, maintained by the producers themselves. “We see defending the producers and Brazil’s Agro as vital, emphasizing the importance of the Forest Code for the country and the producers’ respect for the legislation”, concluded the director.
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