"Trump's trade war is like a street knife fight better to stay away”, says Pedro de Camargo Neto
Publicado em 03/04/2025
TCAI
Published on 03/14/2025
Broadcasted by Radio Eldorado/ Estadão-Brazil
*José Luiz Tejon
Regarding the "Trump's Blunders" from the current U.S. administration, we spoke with a Brazilian who had a unique experience in a contentious case involving the U.S.A. at the World Trade Organization (WTO) regarding cotton, where Brazil emerged victorious.
I’m talking about Sr.Pedro de Camargo Neto, who served as president of the Brazilian Rural Society, President of Fundepec (Fund for the Development of Livestock in the State of Pará), farmer, rancher, and held the position of Secretary of Production and Marketing at the Ministry of Agriculture.
He is also the only Brazilian mentioned in the American book "Food Citizenship" (Food and Citizenship in an Age of Distrust).
Speaking over this era of distrust accelerated by Donald Trump, Mr. Pedro de Camargo Neto told me: "Talking about international trade today is difficult because it turned into an unbelievable mess. It’s hard to understand what will happen tomorrow or the day after.
After World War II, there was an understanding that it was important to organize trade and establish rules. The General Agreement on Tariffs and Trade (GATT) was created, led by the United States; Brazil signed it on from day one.
The referred agreement established trade rules to ensure stability in producing, shipping, receiving, planting, harvesting, and delivering. You know what result you’ll get, the tariff you’ll pay at the end; tariffs cannot be raised, nor can subsidies be given.
The trade rules evolved into the WTO (World Trade Organization), led by the United States, had always Brazilian participation. In 2001, China joined. It was already a powerhouse, and the U.S.A made efforts to include her in the WTO, facilitating Chinese trade, even though that country wasn't a developing economy. But it joined as such and remains there.
After 10, 15 years, the U.S. began to face problems because China grew far more than anyone could expected. As a result, the U.S.A felt disadvantaged and, in my view, made a mistake. The way to correct this error was in Geneva, where it was necessary to challenge China, prove what she was doing wrong, that she wasn’t following the rules, that she was no longer a developing country.
But the U.S.A wasn’t interested. Instead, they turned its back on the WTO, and decided to solve the problems bilaterally, directly to China. President Trump, already in his first term, started a trade war with China, which didn’t work out. His term ended, he failed to rein in China.
Now, in his second term, he's restarted, and, at this time, not just involving China but any other countries. Trump simply tore up the rulebook and threw it away. Now it’s Canada, Mexico, Europe, and China! There are no more trade rules; it’s a trade brawl. And this is very negative for us because Brazil is a country that needs to rely on rules.
We are big, but not big enough to win fights, and fighting is never good.
Today, we have to stay quiet in South America, in our corner, and let this knife fight, this street fight, play out.
And, in a street knife fight, wisdom ones watch it from a security distance! You don’t give advice, no sides allied, don’t get too close! It’s better to stay away because, in a Knife Fight, it’s mandatory to keep distance. I hope the Brazilian government has the patience to stay in our corner, without getting too close.
Let’s work and produce because the world’s population needs to eat, and we've got good, affordable products." So, as I said and repeat: in a street knife fight, the advice is not to get close," he concluded.
Pedro de Camargo Neto, an experienced leader advises that we should concentrate on our trade relations and what needs to be accomplished. He also identifies promising opportunities in Latin America, the Middle East, Asia, Africa, and Europe, undoubtedly potential new markets for Brazilian products, mainly in China.
I’m talking about fruits, seafood, coffee, and why not our already extraordinary wines? And keeping an eye on "Tropical Terroirs." I also see a revival of the World Trade Organization (WTO) because Mr. Trump is managing to unite the world against the United States.
I met with Mr. Maurício Buffon, president of Aprosoja (Brazilian Soybean Producers Association), who, before the "Trump's Blunders," expected a drop in soybean prices. After Trump, he no longer believes that and told me: "It won’t get worse, and I’d say there’s a good chance that strategic commodities will rise in price, as always happens in times of uncertainty and distrust."
*José Luiz Tejon
PhD in Education Universidad de La Empresa/Uruguay. Master's degree in Art Education and History of Culture – Mackenzie University. Journalist and publicist – Harvard, MIT and PACE/USA/Insead in France Specialisation Academic. Coordinator of Master Science Food & Agribusiness Management at Audencia in Nantes/France and FECAP/Brazil. Managing partner at Biomarketing and TCA International. Professional Head at Agro Anefac. Writer author and co-author of 37 books. Agro Personality Award 2023/ABAG. Former director of Grupo Estadão, Agroceres and Jacto S/A.