Brazil’s President Lula calls on BRICS nations to unite against US ‘tariff blackmail’

Brazilian President Luiz Inácio Lula da Silva has called on the BRICS nations to unite against the “tariff blackmail” of US President Donald Trump.

Without mentioning Trump or the US by name, Lula told a virtual BRICS summit on Monday: “Our countries became victims of trade practices that are unjustified and illegal.

“The tariff blackmail has been normalised as a tool to conquer markets and to interfere in our domestic issues.

“The imposition of extraterritorial measures are threatening our institutions.”

Lula, who called the meeting as the current chair of BRICS, was clearly speaking from the bitter experience of suffering 50% trade tariffs imposed on Brazil by Trump. And, as he said, Trump has clearly used the tariffs to interfere in Brazil’s internal affairs, trying to force Lula to drop charges against his predecessor, the right-wing Jair Bolsonaro, for allegedly plotting a coup to stay in power after losing to Lula in the 2022 presidential elections. 

Tension is rising in Brazil, with duelling rallies for and against Bolsonaro, as the verdict in his trial looms.

Lula told the virtual BRICS summit that: “To divide, to conquer is the new unilateralism strategy. When the principle of sovereign equality of the states is not being followed, the intervention in domestic issues becomes a common practice.

“A peaceful solution for controversies is now being replaced by belligerent conduct without any support of international law.”

Lula noted that the World Trade Organization had been “in paralysis for years”.

He noted that the BRICS nations together represented 40% of global GDP, 20% of international trade and almost 50% of the world population.

The BRICS countries – now with 10 members – “have the necessary legitimacy to lead the re-foundation of the trade multilateral system on a modern basis, flexible and that meets our needs for development”.

For that the BRICS nations would have to arrive united at the 14th Ministerial Conference of the WTO next year in Cameroon, Lula said. 

Chinese President Xi Jinping agreed with Lula, saying trade wars and tariff wars waged by “some country” had severely disrupted the world economy and undermined international trade rules.

In this critical juncture, BRICS countries, standing at the forefront of the Global South, should act together to defend multilateralism and the multilateral trading system.

“Economic globalisation is an irresistible trend of history. Countries cannot thrive without an international environment of open cooperation.

“And no country can afford to retreat to self-imposed isolation. No matter how the international landscape may evolve, we must stay committed to building an open global economy.

“We should uphold the multilateral trading system with the World Trade Organization at its core and oppose all forms of protectionism.”

Xi said BRICS countries accounted for nearly half of the world’s population, around 30% of global economic output and one-fifth of global trade.

“We are also home to major natural resources, big manufacturers and vast markets.

“The more closely we work together, the more resilient, resourceful and effective we are in addressing external risks and challenges.”

President Ramaphosa took a positive view, declaring that “this global trading crisis provides a great opportunity for us to do things differently”.

“We need to pivot from crisis management to strategic action, from emergency fixes to collective growth and development.

“I strongly believe that when BRICS countries unite in solidarity to co-create solutions, we unlock tangible mutual benefits for BRICS members and the broader Global South.”

He called for a BRICS Economic Partnership Strategy which would  address the imbalanced structure of BRICS trade.

It would also send a clear message to the world that all BRICS members were committed to mutually beneficial trade that addresses the needs and interests of all its members.

Ramaphosa seemed to be addressing protectionism within BRICS itself as well as protectionism from without, as he said: “A commitment on the part of all of us to sustainably address our various non-tariff barriers would position BRICS as a stable and predictable mutually beneficial trading partner amidst the current global disruptions.”

Iranian President Masoud Pezeshkian proposed the creation of a joint mechanism to counter unilateral Western sanctions and their impact.

Pezeshkian told the summit the world must move away from using tools such as economic sanctions to restore confidence in a just, multipolar system, adding that BRICS and the Shanghai Cooperation Organization could play a key role in this effort. DM