Brazil Roundup: Brazil may cut military ties with Israel, crypto tax, fight against hunger

Brazil may cut military ties with Israel

In response to the ongoing genocide in Gaza, the Brazilian government is seriously considering halting its military cooperation with Israel. A senior official confirmed that the Ministry of Defence is reviewing arms contracts and security arrangements amid growing public and political pressure. Brazil’s stance signals an increasingly assertive foreign policy that emphasises human rights and aligns with global criticism of Israel's military actions in Gaza. This move may also impact bilateral relations and defence sector contracts.

$250 Million plan to decarbonise Brazil’s industrial sector

Brazil has secured a $250 million commitment from international partners to fund its industrial decarbonization strategy. The funds will support comprehensive investment plans aimed at reducing greenhouse gas emissions in the manufacturing and heavy industry sectors. This initiative aligns with Brazil’s broader climate commitments and will also enhance its technological competitiveness in green industry solutions. The program could position Brazil as a global leader in sustainable industrial transformation.

Crypto tax

Brazil’s crypto industry is reacting with alarm to a surprise provisional measure from the Finance Ministry, which proposes extensive taxation changes for digital assets. The measure, issued without prior consultation, seeks to close loopholes and increase tax compliance but is seen by many as hasty and harmful to innovation. Stakeholders in the crypto sector argue that the proposal could discourage investment and drive startups out of the country. The clash highlights growing tensions between regulators and Brazil’s rapidly expanding fintech ecosystem.

Brazil–Caribbean pact strengthens fight against hunger

At the Brazil–Caribbean Summit, several Caribbean nations joined the Global Alliance Against Hunger and Poverty. The event, which featured the signing of cooperation agreements, emphasised food security, regional integration, and Brazil’s leadership in South-South cooperation. The summit is a milestone in Brazil’s diplomatic outreach to Caribbean countries and furthers President Lula’s vision of Brazil as a key player in global development and humanitarian initiatives.

Economic growth outpaces forecasts, rate holds expected

Brazil’s economy posted stronger-than-expected growth in April, with recent central bank data revealing unexpected resilience despite high interest rates. Analysts attribute the performance largely to the agricultural sector and consumer spending. As a result, Bank of America now expects the central bank to hold its benchmark Selic interest rate steady at 14.75%. This development offers some breathing room for policymakers as they balance inflation control with growth stimulation in a complex macroeconomic environment.