President Luiz Inacio Lula da Silva of Brazil has strongly criticized the United States' decision to label two of the country's major criminal organizations as "terrorists." In a social media message released on Friday, Lula warned that the designation could be a "setback" for Brazilian law enforcement and represented "arbitrary measures" imposed from abroad.

The condemnation from the Brazilian president came a day after U.S. Secretary of State Marco Rubio announced that the Primeiro Comando da Capital (PCC) and the Comando Vermelho (CV), Brazil's two largest criminal networks, were designated as "specially designated global terrorists." The U.S. administration also indicated plans to add these groups to the list of "foreign terrorist organizations" by June 5.

Lula drew a distinction between criminal activities driven by profit, such as drug and arms trafficking, and international terrorism, which is typically characterized by violence motivated by political, ideological, or religious aims. "The terror inflicted by these organizations upon communities seeks to generate profit through crime," Lula stated, adding that such violent criminal acts "must not be conflated with the ideologically, politically, or religiously motivated actions characteristic of international terrorism."

This U.S. designation carries significant implications, including the freezing of all U.S.-based assets linked to the designated groups. Furthermore, it allows for penalties against individuals or entities providing "material support or resources" to them. Experts have raised concerns that these restrictions could potentially impact financial institutions and even victims of extortion by these groups.

Lula has previously voiced concerns that the "terrorist" label might create a pretext for foreign intervention, a fear he reiterated in his statement without directly naming the U.S. administration. He emphasized Brazil's readiness to collaborate on joint solutions beneficial to all involved nations but stressed that the country "will not tolerate the imposition of arbitrary measures from abroad, nor will we accept their use as a pretext to undermine our sovereignty or our economy."

Rumors of the Trump administration's intention to apply the "terrorist" label to these Brazilian gangs had been circulating for months. Lula and his ministers had reportedly urged the U.S. administration to reconsider this action prior to the official announcement.

The PCC and CV are known to operate extensively within Brazil and have been implicated in widespread criminal activities, including drug trafficking, extortion, and violence. Their designation as terrorist organizations by the U.S. marks a significant escalation in international efforts to combat transnational organized crime.

Brazil's government maintains that its existing legal framework and law enforcement agencies are equipped to handle these domestic criminal threats. The president's strong reaction suggests a potential diplomatic friction between Brazil and the United States over the approach to combating organized crime and the interpretation of what constitutes terrorism.