são paulothe us says it intends to diversify its supply chain to reduce its reliance on china companies in brazil say if the us wants their help it will need to make some changes representatives from companies and trade groups say measures from high tariffs to stringent environmental regulations present hurdles to selling more products to the us which is looking to move away from countries that present geopolitical and security risks to its supply chain us treasury secretary janet yellen has called such an approach friendshoring brazilian steelmakers have long wanted to increase exports to the us but are held back by tariffs and quotas according to marco polo de mello lopes president of the brazil steel institute a group representing companies including gerdau sa and usiminas sa brazil is a longtime supplier of strategic raw materials to the us and we want to increase our exports mr lopes said if the us really wants more sources for steel imports the first thing they have to do is remove the barriers the us government placed import tariffs on certain steel products in 2018 and then granted brazil an exemption for a set amount of the alloy the quota and the tariff need to be lifted before brazilian companies can consider taking measures to boost exports mr lopes said while buying from china can cost less brazil has some advantages to attract us buyers such as shorter delivery times said luiz simm sales director of furniture maker treboll móveis ltda we can generally deliver in half the time that a delivery from china would take mr simm said being closer especially to the east coast is an advantage for us he said there is also more shipping capacity available to east coast ports the office of the us trade representative said the us is committed to working with the administration of new brazilian president luiz inácio lula da silva to strengthen their trade relationship in an email the ustr said it would continue to implement an updated protocol on transparency and trade rules between the two countries through this protocol and our shared priorities we will help us and brazilian businesses bring their products to new customers the ustr said brazils economy could use the boost from increased exports to the us brazils gross domestic product is expected to grow less than 1 in 2023 after an expansion of about 3 in 2022 brazilian companies face other challenges to increasing exports the countrys stringent environmental and labor laws add to the socalled brazil cost employers must pay at least the minimum wage currently about 250 a month while also paying into the social security system providing paid holidays and vacations paying overtime and other benefits for workers companies also must meet environmental rules that promote worker safety limit the use of pesticides protect forests and criminalize actions that damage the environment among other measures while the businesses argue the higher costs make them less competitive investors are putting a greater emphasis on social and environmental responsibility which could benefit some of the companies you wont buy from brazil if you want chinese prices but if you want environmental and labor guarantees along with guarantees that youll be getting a quality product then youll come to us said guilherme rosman ceo of lingerie maker demillus sa indústria e comércio if you want nearshoring you cant buy from countries that dont follow those norms brazilian companies have long clamored for reforms to reduce the brazil cost tatiana prazeres director of international relations of the federation of industries of the state of são paulo which represents more than 100000 businesses from brazils most industrialized state said that friendshoring presents an opportunity for brazil but the country needs to take steps to become more business friendly we need to convert this desire to reality she said