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Removal of Brazil from the list of developing countries by the USA: good or bad?

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Removal of Brazil from the list of developing countries by the USA: good or bad?

economy

00:52 12.02.2020 (updated 04:48 12.02.2020) Short URL

The removal of Brazil from the list of developing countries by the US Department of Commerce is a "loss" with "impact on exports," economist Luiz Carlos Prado told Sputnik Brasil.

On Monday (10), the US agency released a note announcing that 23 countries were leaving their list of developing countries, which may diminish the commercial benefits of these nations, such as, for example, tariff advantages in international trade.

Besides Brazil, they are in the group China, South Africa, India, among others. The measure also increases the US government's investigative power over export subsidy policies adopted by other countries – which could lead Washington to adopt punishments against the practice.

According to Prado, who is a professor at the Federal University of Rio de Janeiro (UFRJ), the measure is part of a "nationalist policy" by the American president, Donald Trump.

Good relationship with the US 'made no difference'

"The United States granted developing countries the possibility of exporting certain products under more favorable conditions, that is, with preferential treatment. It is, therefore, the withdrawal of these benefits to countries that the United States has come to consider to have a degree development, "explained Prado.

According to the expert, "the alleged good relationship between the Brazilian government and the United States, in practice, made no difference". He criticizes the Brazilian government's stance on the topic.

"The problem is not the action of the United States, which is not specifically against Brazil. The problem is that there is no movement by the government to defend Brazil's interests in bilateral relations with the United States or other countries. It is as if the expansion of international trade had no relevance to the government ", said the economist.

'No country gives up economic advantages'

During President Jair Bolsonaro's visit to Washington in March 2019, Trump declared that in order to join the OECD (Organization for Economic Cooperation and Development), Brazil would have to give up preferences at the World Trade Organization (WTO). The Brazilian government has been struggling to join the organization.

For Luiz Carlos Prado, "no country gives up an advantage in international economic relations".

"Although you have the discourse that the Brazilian government is nationalist, this is the least nationalist government since at least the 1950s. Since the post-war period there has never been a government with a posture of so little defense of Brazilian interests in the international sphere ", criticized.

Withdrawal was 'natural'

However, for economist Raul Velloso, removing Brazil from the list of developing countries was something "natural", almost an "obligation".

"My impression is that it would be inevitable. When acquiring a certain level of recognition, when considering entering the OECD, we must understand that this together contains the need to update our positioning. There is no way to evolve in a classification and in the others something similar does not happen. ", said the secretary of Economic Affairs of the Ministry of Planning during the José Sarney administration.

'Placement progression'

According to him, when applying for admission to international entities such as the OECD, it is necessary to "assume the advantages and responsibilities that naturally come together with a kind of positioning progression".

"We have to evolve upwards in everything, and face this as a certain obligation to position ourselves within the acceptable standards of the world in which we live, in a world in which we are more integrated, a world of countries that profess certain beliefs and act very close to a more acceptable economy model ", he argued.

Brazil was seen as an 'inferior' country

According to Velloso, the benefits that Brazil had by being on the list of developing countries were lost at a time when the country was seen as an "inferior" nation.

"If there were advantages, this occurred at the same time that there was a subjective assessment that countries like ours were inferior. Now we are paying a price, which does not seem to me to be so relevant, to be seen in a more qualified and relevant way in the world stage ", said Raul Velloso. (tagsToTranslate) developing countries (t) Brazil's entry into the OECD (t) Brazil's withdrawal from the list of developing countries (t) trade between the USA and Brazil

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