Brazil’s Lula to discuss fighting organized crime, tariffs in Trump meeting

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RIO DE JANEIRO (AP) — Brazilian President Luiz Inácio Lula da Silva will discuss cooperation in the fight against organized crime and tariffs with U.S. President Donald Trump, Brazil’s finance minister Dario Durigan said Wednesday, one day ahead of the scheduled meeting between the presidents.

“The goal is to protect Brazil’s population, prioritize the country and maintain constructive dialogue,” Durigan told state broadcaster EBC. “Expectations for the trip are very positive.”

The encounter at the White House follows a crisis in bilateral relations last year, after the Trump administration imposed a 50% tariff on Brazilian goods and tied the measure to the prosecution of former President Jair Bolsonaro for his involvement in a coup plot.

Lula sharply defended Brazil's sovereignty and Trump later loosened tariffs on Brazil as part of his effort to lower consumer costs for Americans.

Trump and Lula started mending fences at the United Nations General Assembly in September, which was followed by their first private meeting in Malaysia in October and subsequent phone conversations.

The Brazilian government’s handling of the 50% tariff likely raised the country's leverage with the Trump administration, said Ana Garcia, an international relations professor at the Rural Federal University of Rio de Janeiro.

“The Trump administration likely sees Brazil as a partner that must be taken somewhat seriously, but will continue to pressure it to make concessions,” Garcia said.

An ongoing point of contention between the two governments is the Trump administration's reported consideration of designating Brazil’s largest criminal factions — Red Command, or CV, and the First Capital Command, or PCC — foreign terrorist organizations.

The designations would give the U.S. more power “to act as a political or economic actor in Brazil,” said Leonardo Paz Neves, an international relations professor at the Getulio Vargas Foundation, a think-tank and university. “It’s a defensive issue for Brazil that doesn’t serve Brazil’s interests at all.”

A Brazilian government official, who spoke on condition of anonymity as they are not allowed to discuss the matter publicly, said that both sides appeared to be committed to deepening cooperation on the fight against organized crime rather than opting for unilateral actions.

Another key item likely to be on the meeting’s agenda is access to Brazil’s rare earth deposits. The South American country has the world’s second-largest reserves of rare earth minerals, used in a wide range of products, including smartphones, electric vehicles, solar panels and jet engines.

Durigan on Wednesday again reiterated Brazil’s position that the nation does not want to be simply a raw material exporter.

“Countries in the global north ... are thirsty for this raw material.” Durigan said. But “while foreign investment is welcome, we want industrial development within Brazil: creating jobs in partnership with our universities.”

The trip to the U.S. is taking place in a difficult domestic scenario for Lula, who last week suffered two blows dealt by Congress. The lower house overrode his veto on a law seeking to reduce Bolsonaro’s time in prison, while the Senate rejected his nomination to the Supreme Court — a first in more than 100 years.

The 80-year-old leader will seek a fourth, nonconsecutive term in the October elections. Polls currently show him neck to neck with Bolsonaro’s Senator son, Flávio.

Lula departed for Washington D.C. early afternoon local time Wednesday, and is expected to arrive in the evening.

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