Since the Brazilian government has decided not to actively participate in today's meeting with the United States Trade Representative (USTR), each sector is expected to present its own position. Leaders from agriculture, engineering and other industries are expected to attend, as well as representatives from the iron foundry industry through Sindifer, an association of independent iron producers in the southeastern state of Minas Gerais.
Brazilian government officials will attend as observers.
A Sindifer source told SteelOrbis that the association will argue that U.S. steel mills and foundries are dependent on Brazil's cast iron and will suffer if the US imposes tariffs. potential import tax on the product of 37.5 percent.
According to the source, there is no short- or medium-term replacement for Brazilian cast iron. The product is custom-made for the steel industry and has virtually zero net greenhouse gas emissions because its blast furnaces use charcoal instead of mineral coal.
When charcoal is used as a reducing agent, blast furnace emissions are offset by CO2 captured by the next generation of trees.
Until recently, cast iron was included in the list of exceptions to higher import tariffs at the request of US consumers, but was removed from the exceptions in current round of negotiations.
