Brazilian President Luiz Inacio Lula da Silva launched a blistering attack on the United States on Friday, rejecting its decision to designate the country's two largest criminal factions, the Primeiro Comando da Capital (PCC) and Comando Vermelho (CV), as terrorist organizations. The move, announced by US Secretary of State Marco Rubio, is set to take effect on June 5 and has ignited a fierce political firestorm in Brazil ahead of the October presidential election.

A furious response from Lula

Speaking at an event in the northeastern state of Sergipe, Lula warned the United States against "playing games with our democracy" and insisted Brazil would not be treated as a "tinpot republic." He drew a sharp distinction between the profit-driven violence of the gangs and ideologically motivated international terrorism.

“The terror inflicted by these organisations upon communities seeks to generate profit through crime -- specifically through drug and arms trafficking. Those activities must not be conflated with the ideologically, politically, or religiously motivated actions characteristic of international terrorism.”

Lula revealed he had spent three hours with US President Donald Trump at the White House earlier in the month, handing over documents on bilateral cooperation against organized crime. He expressed disappointment that the designation was made despite those talks, suggesting Secretary of State Rubio had been absent from the meeting because he was "prepared to help a son of a Bolsonaro supporter."

Accusations of 'treason' against Flavio Bolsonaro

Lula's anger was directed squarely at Senator Flavio Bolsonaro, a pre-candidate for the presidency in October's election and son of former President Jair Bolsonaro. The senator met with both Trump and Rubio in Washington this week to advocate for the terrorist designation. Lula accused him of "betraying our homeland" by going to the US to "ask for intervention in Brazil," comparing him to Joaquim Silvério dos Reis, a historical figure known for betraying the Inconfidência Mineira separatist movement.

“I spent three hours with President Trump -- three whole hours. Do not play games with the sovereignty of this country. Do not play games with our democracy.”

Brazilian Vice President Geraldo Alckmin also criticized the "Bolsonaro clan," suggesting the senator was using the issue to distract from a scandal involving his ties to the imprisoned former banker Daniel Vorcaro of Banco Master. Alckmin claimed Flavio Bolsonaro had asked Vorcaro for payments related to a film about his father, with the banker allegedly paying 64 million reais.

Economic and security risks

Experts warn the US designation could have significant economic repercussions for Brazil, even without a corresponding domestic law. The label freezes all US-based assets connected to the targeted groups and can penalize anyone offering "material support or resources" to them. This could potentially affect financial institutions and even victims of extortion who are forced to pay the gangs.

“The redesignation of criminal factions as terrorist groups does not have significant practical effects in combating groups like the PCC and CV, but it has important economic consequences if the US adopts sanctions against Brazilian institutions.”

A Brazilian federal police commissioner, Luciano Flores, stated that the PCC and CV do "not fall within the scope of the law that characterizes terrorist organizations" and are instead classified as "criminal organizations operating internationally." The Brazilian presidency warned the unilateral US measure "represents a potential setback in the fight against crime, a risk to human life, and economic harm to the country."

The gangs and the political backdrop

The PCC and CV emerged from Brazil's prisons and have expanded across the country and international borders, dominating the drug trade and wielding control over large urban areas through drug and arms trafficking and extortion. Lula acknowledged the terror they inflict on Brazilian communities but insisted the fight must be led by national institutions. He also demanded the extradition of Brazilian fugitives he claimed are living in the United States, specifically mentioning suspects in Miami and Delaware.

The controversy comes as Brazil's own Congress debates legislation to classify the gangs as terrorists domestically. A bill approved last month by the Chamber of Deputies' Foreign Relations and National Defense Committee would designate the CV, PCC, and 11 other Latin American criminal groups as terrorists, but it still requires further approvals to become law.