By Lisandra Paraguassu
BRASILIA (Reuters) -Brazil's Foreign Ministry has ordered government trade body Camex to start analyzing whether a local reciprocity law could be used against the United States, two sources from the ministry said on Thursday.
The law, passed earlier this year by Brazil's Congress, establishes a legal framework for Brazil to respond to potential unilateral trade measures targeting its goods and services, including countermeasures such as tariffs.
The move would represent an escalation
by Latin America's largest economy in reacting to U.S. President Donald Trump's 50% tariffs on Brazilian imports. Brazil had so far initiated dispute consultations in the World Trade Organization.
The launch of the process came as Brazilian President Luiz Inacio Lula da Silva authorized the use of the law against the U.S., the sources said.
Camex has 30 days to present a report on the matter. If it approves the use of the reciprocity law, a government working group will decide which areas Brazil should target in its measures against the U.S., the sources said.
They added that the U.S. is expected to be informed on Friday about the start of the process.
Brazil's Ministry for Development, Industry, Trade and Services that oversees Camex did not immediately respond to a request for comment.
The U.S. imposed 50% tariffs on imports of Brazilian goods this month, as Trump decried what he called unfair trade practices and accused Brazil of a "witch hunt" against former President Jair Bolsonaro, who is on trial on charges of plotting a coup.
Products such as orange juice and aircraft, which are among Brazil's major exports, were exempted from the higher duties.
Brazilian government officials have publicly complained about lack of room to negotiate the tariffs with the U.S. counterparts.
(Reporting by Lisandra Paraguassu in Brasilia; Writing by Andre Romani; Editing by Kylie Madry and Daina Beth Solomon)
