Marcos Matos, the director-general of Cecafé, spoke in Washington as the USTR weighs new tariffs on Brazilian exports. He described a more technical and favorable tone toward Brazil this year. Cecafé pressed for tariff exemptions for green coffee and roasted coffee, and for soluble coffee to be added to the exceptions list, arguing it is an important input for the American industry that makes beverages and other high-value products. Matos expressed a tempered optimism as the USTR shows greater understanding of the economic impacts on the US supply chain. The hearings are part of a formal review that will shape the final recommendation.
- US hearing shows a more technical, Brazil-friendly tone on tariff talks
- Cecafé asks to keep tariff exemptions for green and roasted coffee and add soluble coffee to the list
- Industry says tariffs would raise costs for US companies and consumers and disrupt supply chains
- Pix payments are discussed as a path to cooperation, with ideas to connect it to Fed Now
- Optimism is cautious as the process moves forward and more documents are requested before a final recommendation
Context and participants
The session, part of a Section 301 review, drew officials and representatives from Brazilian and American business groups and civil society. The Brazilian government sent observers. Participants from both sides described a measured, policy-focused exchange. The meeting was the first of two sessions; five days were granted for additional written submissions before the USTR completes its final recommendation to the White House.
Cecafé’s position and the Brazilian industry’s stance
Cecafé argued for keeping tariff exemptions for green and roasted coffee and for adding soluble coffee to the list of allowed exceptions. The group said soluble coffee contributes value to the U.S. market by stabilizing consumer prices and supporting various market segments. The council noted a more favorable climate for dialogue, reflecting extended work to foster U.S.-Brazil business ties.
Civil society and international perspectives
Economists and industry representatives from Brazil’s civil society and the United States participated in the discussion. Gustavo Pessoa, a lecturer from Fundação Getulio Vargas, spoke for civil society and supported the position on coffee while also reframing digital payments as part of the broader economy. He suggested potential cooperation around Brazil’s instant payments system, known as Pix, and its possible alignment with U.S. payments infrastructure. Vinícius Nunes Pinto, a Brazilian payments executive, proposed linkages between Pix and the U.S. Fed Now system to strengthen bilateral trade.
Several U.S. voices urged caution about new tariffs during the session. They argued that tariffs could disrupt supply chains and raise costs for American manufacturers and consumers. Some officials pointed to the need for careful consideration of environmental and deforestation claims used to justify tariff actions, noting that data presented often relied on older figures.
Specific sector perspectives and policy options
Representatives from key Brazilian sectors addressed the committee. The rice sector explained why U.S. rice cannot substitute Brazilian rice due to consumer preferences and product characteristics, highlighting potential impacts on small and medium U.S. firms serving Latino communities. In the honey sector, a Brazilian exporter highlighted the country’s suitable conditions for organic honey production and emphasized the significant U.S. market demand, arguing that Brazil’s honey supply is unique and difficult to replace.
The intellectual property field also spoke. A representative from the Brazilian Intellectual Property Association defended Brazil’s brand and patent framework, pointing to improved processes at the National Institute of Industrial Property (INPI) and the ability to curb counterfeit goods through enforcement mechanisms. Officials noted that Brazil’s legal framework aligns with Paris and World Trade Organization principles.
On the U.S. side, Amcham Brasil emphasized that any tariff action would raise costs and reduce the competitive footing of American companies that rely on Brazilian inputs and machinery. The chamber suggested pursuing negotiated outcomes, including broader access to specific Brazilian markets, bilateral arrangements on critical minerals, and extending a WTO moratorium on digital trade barriers.
Conclusion
The Washington hearing highlighted a more technical and Brazil-friendly atmosphere in the USTR review of proposed tariffs. Cecafé pressed to preserve exemptions for green coffee and roasted coffee, and to add soluble coffee as an exception, arguing it is a crucial input for the American industry and its beverages and high-value products. While critics warned that tariffs would raise costs and disrupt supply chains, the session also reflected a measured optimism as the USTR signals greater consideration of economic impacts. With five days left for additional submissions and a final recommendation due to the White House, the outcome will depend on balancing consumer and business interests with broader trade objectives, including potential links to digital payments and sectoral negotiations.
Frequently asked questions
- What did Cecafé ask the USTR to exempt or include? Cecafé asked to keep tariff exemptions for green and roasted coffee and to add soluble coffee to the exemptions. Soluble coffee is an important input for US drink makers and other high-value products.
- How did Matos describe the hearing today compared to last year? He said it was more technical and more in Brazil’s favor. Questions came from more sectors, like farming, trade, Treasury, and health.
- Why do Brazilian exporters worry about tariffs? Tariffs could raise costs for US buyers and their suppliers. That could push up prices for US companies and shoppers.
- What does optimistic, but moderate mean in this case? Matos sees a window of opportunity. USTR seems more open to impact on the economy. He stays cautious.
- What comes next after the hearing? Groups have five days to add more documents. Then the USTR writes its final recommendation to the White House.