The Brazilian government presented this Monday (27) a request for consultations with the United States in the dispute settlement system of the World Trade Organization (WTO). The initiative challenges two tariff measures adopted by the North American country based on Section 301 of the 1974 Trade Act.
Brazil sues WTO against tariffs imposed by the United States
The Brazilian government presented this Monday (27) a request for consultations with the United States in the dispute settlement system of the World Trade Organization (WTO). The initiative challenges two tariff...
In a statement, the Ministry of Foreign Affairs stated that the tariffs are unjustified and incompatible with the commitments assumed by the United States in the General Agreement on Tariffs and Trade of 1994 (GATT 1994) and with the rules that regulate the WTO dispute settlement mechanism.
One of the questioned measures arose from a specific investigation into Brazil and resulted in an additional tariff of 25% on Brazilian products. The process analyzed issues related to digital commerce, electronic payment services, preferential tariffs, the application of anti-corruption legislation, the protection of intellectual property, access to the ethanol market and the fight against illegal deforestation.
The second surcharge was established following an investigation conducted with 60 economies. The measure imposed an additional tariff of 12.5% ??on Brazilian products and examined the existence and application of restrictions on the import of goods produced, in whole or in part, with forced labor.
The request for consultations is the first formal step in the WTO's dispute settlement system. At this stage, countries try to negotiate a way out of the impasse before the possible creation of a panel responsible for analyzing the case.
According to Itamaraty, the objective is to question the compatibility of North American tariffs with multilateral trade rules.
The new United States measures are expected to reach US$6.6 billion in Brazilian products exported to the North American market, according to the Ministry of Development, Industry, Commerce and Services (MDIC).
The accumulated surcharge of 37.5% reaches 16.5% of Brazil's exports to the United States. Among the affected products are machinery and equipment, different types of wood, fats and oils, footwear, furniture and clothing items.
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Source: Noticias ao Minuto - Economia
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