Brazil unveils credit package for rural sector hit by U.S. tariffs

Brazil’s government has authorized nearly 13.3 billion reais ($2.6 billion) in extraordinary credit for ​rural development programs, debt-refinancing initiatives, and support ‌for sugarcane producers affected by U.S. tariffs, it said in an extra edition of the official gazette late ​on Thursday (16).

President Donald Trump’s administration announced a 25% ​tariff on numerous Brazilian products on Wednesday ⁠in response to what it described as Brazil’s ​unfair trade practices.

• The executive order allocates 9 billion ​reais for rural technology development projects, focusing on productivity gains and competitiveness.
• It designates 3 billion reais for a ​program supporting financial rebalancing for borrowers.
• The order directs ​270 million reais as economic subsidies to independent sugarcane producers ‌in ⁠Brazil’s Northeast region affected by extreme weather and by the new U.S. tariffs.
• It also provides 1 billion reais for student-loan beneficiaries and 15 ​million reais for ​Brazil’s ⁠voluntary contribution to the Inter-American Court of Human Rights.
• Brazilian Finance Minister Dario ​Durigan said on Thursday that the ​government could ⁠announce by early August support measures for sectors hit by U.S. trade measures.
• The executive order takes effect ⁠immediately ​for a limited period ​of time, pending approval by Congress.

Source: Reuters

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