Brazil industrial leaders urge tax reform and trade protections

Brazilian industrial leaders and officials are addressing the country's tax burden and international trade competitiveness. During the Aço Brasil 2026 Congress, Gerdau CEO Gustavo Werneck described the ongoing tax reform as the most significant initiative in decades to boost industrial competitiveness, noting its potential to increase GDP growth and industrial activity.

Economist Marcos Troyjo characterized Brazil's high tax burden as an “autotarifaço” (self-imposed tariff), noting that Brazil's tax-to-GDP ratio of 33% significantly exceeds emerging competitors like India and Mexico. He warned that high regulation and taxes hinder Brazil's ability to compete in a geopolitical economy where other nations are pursuing deregulation.

In a separate diplomatic context, Brazil's Minister of Development, Industry, Commerce and Services, Márcio Elias Rosa, stated in the United States that Brazil will not negotiate on ideological or sovereignty-sensitive issues, such as Pix, deforestation, or intellectual property, during G-20 trade discussions. He also called for a review of U.S. tariffs that negatively impact Brazilian sectors including machinery, wood, and footwear.