Brazil’s Protectionist Model Should Be No Guide for the US

Mexico Matters

In this episode, Mariana speaks with Pedro Pullen Parente, a remarkable Brazilian public servant and businessmen. Pedro was previously Minister of Planning, Chief of Staff, Minister of Mines and Energy under President Cardoso. He was also the CEO of Petrobras, ran Bunge Brazil, and was the CEO of BRF, one of the world’s largest food companies

Mariana and Pedro speak about the pros and cons of Brazil’s protectionist economic model. The model might serve as a vision for President Trump as high tariffs, local content requirements, and many other non-market barriers have allowed Brazil to protect its manufacturing sector and jobs while also lowering competitiveness and protecting vested interests.

They also discuss how choosing between the United States and China may not be beneficial to countries like Brazil as well as the likelihood that Brazil might benefit from the current trade war as increased food productivity in the country will allow it to increase supply. However, they emphasize how the only way for Brazil to reach its potential is to focus on removing its own internal barriers to competition and free markets, not the other way around.