Brazil needs to defend its domestic market, says Dirceu.
The former Chief of Staff approved the increase in the Tax on Industrialized Products (IPI) for imported cars.
Former Chief of Staff and expelled congressman José Dirceu approved the increase in the Tax on Industrialized Products (IPI) for imported cars, recently adopted by President Dilma Rousseff's government. According to him, there is no reason to withdraw the measure due to the rise in the dollar. "I see no reason, at this moment when the dollar has appreciated, to change this tax. The measure was more than correct," he assessed, after participating in a lecture for union members.
According to the former minister, the dollar is experiencing a period of instability due to the worsening global economic crisis, and Brazil needs to defend its domestic market, just as the United States and China do. "Brazil's problem is the problem of the country's industrialization, of the occupation of the domestic market with practices that are unacceptable," said the minister, referring to the lack of restrictions on imports.
"In Brazil, you can invest, you can set up industry. In the United States and China, you can't do that," said Dirceu, referring to those governments' controls on foreign capital investment in their countries.
Dirceu praised President Dilma Rousseff's speech at the opening of the 66th United Nations General Assembly, in which she advocated for a political solution to the global economic crisis. "The (financial) instability is very high. The situation demands a global discussion, as the president is saying, a more in-depth discussion about global reform."
According to the former minister, the worsening crisis is due to the lack of reforms in the financial systems of some developed countries, such as the United States. "Now they have no way to solve this problem." The former minister also highlighted that although the United States and Europe are the focus of the crisis, Brazil is capable of overcoming it with the strength of its domestic market. "The dollar is now starting to appreciate, interest rates are starting to fall, and the country can grow more," he added.