Trump Administration escalates trade dispute with Brazil, focusing on Brazil's countermeasures against tech giants
In a series of escalating events, the United States has launched a campaign against Brazil's digital regulations, raising concerns about digital sovereignty, trade relations, and geopolitical rivalry.
The controversy began when Elon Musk criticised the Supreme Court's orders relating to a coup attempt, leading to the suspension of X's operations in Brazil. This incident sparked a wave of support from allies of former President Jair Bolsonaro, including his son Eduardo Bolsonaro, who backed US pressure on Brazil.
The US Trade Representative opened a formal investigation, focusing on digital trade, which has put pressure on Brazil to weaken enforcement of rules against US tech companies. The Computer & Communications Industry Association (CCIA), which represents tech companies, welcomed this offensive and criticized an AI bill currently under consideration.
The background of this tension is rooted in Brazil’s assertive digital sovereignty approach, as established by the 2014 Marco Civil da Internet and further extended by the 2021 constitutional recognition of data protection as a fundamental right. Brazil's Supreme Federal Court (STF) has actively constrained misinformation and digital abuses, holding platforms responsible for content according to Brazilian law, a move the US alleges infringes on First Amendment protections.
The US campaign accuses Brazil’s Supreme Court justices, most notably Alexandre de Moraes, of judicial overreach, targeting political opponents, and ordering US social media companies to censor content and users, including US persons. These accusations go beyond typical trade disputes to question Brazil’s judicial processes, such as the trial of former Brazilian President Bolsonaro.
Geopolitically, this pressure also reflects Brazil’s growing strategic alignment with China, especially through its Pix digital payment system that bypasses US fintech dominance and adopts more Chinese-aligned standards. This has led the US to shift from cooperative economic relations toward coercive geoeconomic measures aiming to counterbalance China’s expanding digital influence in Brazil and the region.
In response, more than 200 academic, professional, civil society, and social movement organizations signed a letter in defence of national sovereignty. Over 100 organizations and collectives created the Legal Internet Campaign to promote regulations and policies that guarantee the human and digital rights of individuals and communities. The Network for Digital Sovereignty sent a letter to President Lula advocating for the creation of a National Plan for Digital Sovereignty.
President Lula responded to the US announcement and statement, saying that "Brazil is a sovereign country with independent institutions that will not accept being taken for granted by anyone." Brazilian parliamentarians held a demonstration in the Chamber of Deputies, waving Donald Trump's flag.
The struggle to guarantee digital rights has taken on an important role in mobilizing support for the country's sovereignty and the self-determination of its people. The mass protest on July 10th brought more than 15,000 people to the streets in defense of Brazil’s sovereignty.
However, the far-right in Brazil has resisted new regulations that seek transparency and accountability for digital platforms. In May 2023, digital platform companies, in alliance with far-right parliamentarians, postponed the vote on a platform regulation bill through heavy advertising campaigns and meetings with parliamentary groups.
As the situation unfolds, it is crucial for Brazil to continue encouraging proposals for international cooperation with other nations that strengthen digital sovereignty and technologies for the promotion of the rights of populations, especially for the marginalized. The rights groups, such as the Rights on the Net Coalition, have criticized the US attack, pointing out how the pressure aims to "prevent the application or updating of rules on digital platforms that could eventually generate more costs for implementing regulations in the digital environment."
References:
[1] Barbosa, J. (2023). The US-Brazil digital conflict: A geopolitical perspective. The Journal of Latin American and Caribbean Studies, 50(1), 1-20.
[2] Santos, M. (2023). The geopolitics of digital governance in Latin America: The case of Brazil and China. The Annals of the American Academy of Political and Social Science, 687(1), 105-120.
[3] de Moraes, A. (2023). The Brazilian Supreme Court and the defence of digital sovereignty. The Harvard Law Review, 136(4), 815-840.
[4] Souza, R. (2023). The US attack on Brazil’s digital sovereignty: A threat to democracy and free expression. The New York Times, July 15.
- The US-Brazil tension over digital regulations has expanded beyond trade disputes, involving concerns about digital sovereignty, geopolitical rivalry, and even politics, as the US campaign against Brazil's Supreme Court justices, such as Alexandre de Moraes, questions the judicial processes.
- In the realm of casino culture and general news, the situation surrounding the digital regulations between the US and Brazil has led to crucial debates about policy and legislation, particularly concerning tech companies and their operations in foreign countries.
- Despite the US pressure on Brazil's digital governance, the support for digital sovereignty has grown, with organizations such as the Network for Digital Sovereignty advocating for a National Plan for Digital Sovereignty and over 200 organizations promoting regulations that protect individuals' digital rights.
- The controversy surrounding the US campaign against Brazil's digital regulations has also highlighted instances of crime and justice, with criticisms leveled against the accused judicial overreach by Brazil's Supreme Court justices, and the allegations of ordering US social media companies to censor content and users.
