What is the Reciprocity Law that Lula wants to use against Trump?

If he moves toward confrontation with U.S. President Donald Trump and launches a tariff war, President Luiz Inácio Lula da Silva (Workers' Party) will use the Economic Reciprocity Law. The law was signed into law by Lula in April, shortly after Trump threatened to impose tariffs on several countries.

On the afternoon of this Thursday (10) the president of the Chamber of Deputies, Hugo Motta (Republicanos-PB) released a joint note with the president of the Federal Senate, Davi Alcolumbre (União-AP), promising to “act with balance and firmness” in the defense of the country. Both were in favor of using the Economic Reciprocity Law, if negotiation is not possible.

"With great responsibility, this Parliament approved the Economic Reciprocity Law. A mechanism that empowers our country and our people to protect our sovereignty," they state.

On Wednesday (9), Lula had already threatened to use the law against the United States. "Any unilateral tariff increase will be met in light of the Brazilian Economic Reciprocity Law. Sovereignty, respect and the uncompromising defense of the interests of the Brazilian people are the values ​​that guide our relationship with the world," the president said.

By adopting the Reciprocity Law, Lula would bypass World Trade Organization (WTO) rules that prevent discriminatory tariffs against specific countries. In this case, the law created by the federal government guarantees legal instruments to respond to Trump's tariff hike.

What the Law of Reciprocity allows

Among the countermeasures provided for in the law are restrictions on imports, the suspension of commercial concessions, investments, and obligations related to intellectual property rights, explains Roberta Portella, a lawyer specializing in International Trade.

She explains that although the law establishes criteria for applying countermeasures—such as prior public consultation for interested parties to express their views—it can be applied on an extraordinary and provisional basis by the Executive Branch, during the regular and preliminary stages.

The law can be applied if a country or economic bloc establishes policies that interfere with Brazil's legitimate and sovereign choices, "through the application or threat of unilateral application of trade, financial or investment measures," as is the case with the tariff hike unilaterally announced by Trump.

The law can also be applied if a country violates existing trade agreement rules that harm the country. Another possibility is to apply the law if the other party creates environmental requirements that are more stringent or burdensome than the environmental protection standards adopted by Brazil.

The law serves as a mechanism to regulate trade practices considered unfair in international trade relations. "The important thing is to restore balance in global trade and allow other factors to determine competitiveness, such as product quality, production capacity, and price," he argues.