Brazil to talk with US over potential threat to financial sovereignty, says finance chief
Sao Paulo, June 2
Brazilian Finance Minister Dario Durigan said Monday he will meet with US authorities this week to discuss the designation of criminal organisations as international terrorist groups, a move that could ultimately threaten Brazil's financial sovereignty.
According to Durigan, labeling the criminal gangs Primeiro Comando da Capital (First Capital Command) and Comando Vermelho (Red Command) as terrorists could open the door to sanctions that might impact Pix, Brazil's instant payment system, posing a threat to sovereignty, Xinhua news agency reported.
In an interview with CBN radio, Durigan warned the US measure could have consequences for Brazilian financial institutions and even jeopardize Pix's operations.
Durigan said the criminal groups cause "social terror" and disrupt public services in various parts of the country, but stressed that they do not meet the criteria established by US law to classify them as international terrorist organizations.
"These organizations do not attack the United States or affect its sovereignty. We believe that this interpretation is a forced application of the legal requirements," he said.
Brazil's government is working to prevent any potential economic fallout from the measure and protect the operation of Pix, a free digital payment system implemented by the central bank that has become the primary means of transactions for Brazilians.
Durigan also linked the measure to a trade dispute launched by the United States under Section 301, a mechanism used by Washington to have alleged unfair trade practices investigated.
According to the minister, Pix is among the complaints submitted by US authorities, in addition to other issues related to bilateral trade.
Accusations of unfair trade practices lack technical grounds, he said, expressing concern about the potential impact of new US measures on Brazil's economy, in the wake of 50 per cent tariffs imposed on Brazilian exports by US President Donald Trump in August 2025, which lasted for nearly four months.
— IANS
Reader Comments
Honestly, as an American watching from abroad, I think our government overreaches far too often. Designating local criminal groups as "international terrorists" just to get leverage over a country's financial sovereignty is ridiculous. Brazil's Pix system is actually brilliant - it's accessible, fast, and free for most people. The US should be learning from such innovations instead of threatening them.
India should take notes from Brazil's stance. We've seen how US sanctions can cripple economies - look at what happened with Iran. Our UPI system is similarly crucial for financial inclusion, and we must ensure no external pressure can destabilize it. 🙏 Brazil's finance chief is absolutely right to push back on this "forced application" of terrorist law. Stay strong, Brazil!
While I agree the US shouldn't interfere with Brazil's internal affairs, let's be fair - these criminal organizations like PCC are genuinely destabilizing for Brazil's society. They control territory, run drug empires, and have infiltrated institutions. The real question is whether the US is using terrorism designation as a genuine security measure or as trade leverage. With those 50% tariffs in mind, I'm leaning towards the latter. 🤔
As someone who has seen international finance up close, this is textbook economic warfare. The US knows Brazil's digital payment system has become too efficient and is eating into the profits of American financial giants. By threatening to sanction Pix, they're trying to slow down Brazil's fintech revolution. Good on Brazil for standing up to this bullying. India should also watch closely - similar pressure could come our way regarding UPI.
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