Brazil to talk with U.S. over potential threat to financial sovereignty, says finance chief


SAO PAULO, June 1 (Xinhua) -- Brazilian Finance Minister Dario Durigan said Monday he will meet with U.S. authorities this week to discuss the designation of criminal organizations 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.

In an interview with CBN radio, Durigan warned the U.S. 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 U.S. 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 U.S. 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 U.S. measures on Brazil's economy, in the wake of 50 percent tariffs imposed on Brazilian exports by U.S. President Donald Trump in August 2025, which lasted for nearly four months.

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