Brazil sues WTO against new tariffs imposed by the United States For decades, turning to the World Trade Organization (WTO) was the way countries used to try to resolve trade disputes. This week, the Brazilian government called the agency to contest tariffs imposed by the United States on Brazilian products. The request occurs in a different scenario from the past: after a gradual loss of influence, the WTO's main adjudication system is practically paralyzed, while the largest economies have resorted to political means to defend their economic interests. ?? In theory, a country turns to the WTO when it considers that another member has adopted a measure that violates international trade rules, such as unjustified tariffs or barriers. However, since the US blocked the appointment of new members of the Appellate Body, the disputes may move forward, but face difficulties in reaching a definitive decision. (learn more below) In summary, the request presented by Brazil questions the two tariffs recently adopted by the USA: One of them is the 25% tariff on part of Brazilian products following an investigation that highlighted alleged unfair commercial practices. The other is the 12.5% ??surcharge applied to more than 60 American trading partners, related to trade in products that use forced labor. (understand better here) For experts interviewed by g1, Brazil's bet is not to obtain a quick response to overturn the tariffs, but to formalize the challenge, strengthen the country's diplomatic position and build a legal basis that can be used in future trade negotiations. Why turn to a weakened organization? ? Created in 1995, the World Trade Organization establishes rules for international trade and offers a mechanism for countries to challenge measures considered incompatible with agreements signed between its members. Since 2019, the WTO's main appeals system has been practically paralyzed. The Appellate Body, responsible for reviewing the decisions of expert panels, lost the minimum number of members after the US blocked the appointment of new members. For Roberto Uebel, professor of International Relations and coordinator of the Center for American Studies and Business at ESPM, this scenario represents "the biggest blow ever suffered by the WTO in its almost 30 years of existence, Brazil's departure is more symbolic than effective". According to him, the situation brings the organization closer to a merely consultative forum. Cargo transport operation in port Bruno Leão/ Sedecti Uebel also highlights that the world is going through an unusual moment, in which a great power refuses to follow economic logic and closes itself off from multilateralism. ? Multilateralism is cooperation between several countries through common rules, institutions and agreements to resolve international problems. The idea is that global decisions are made through collective negotiation, and not just through the imposition of a single power. The weakening of the WTO also reflects the change in stance of the world's two largest economic powers. "When the USA and China stop placing China at the center of their disputes, any institution would lose strength", says political scientist and UFPI professor Elton Gomes. For him, the tariffs adopted by the American government stopped being just a commercial tool and started to function as "geopolitical pressure preferred by them to extract agreements and cause burdens on ideologically rival countries", serving as a kind of ammunition to obtain strategic advantages in negotiations. What does Brazil gain from the process? For Roberto Uebel, the main effect is in the reaffirmation of principles. Brazil activates the WTO in defense of multilateralism, one of the pillars of Brazilian foreign policy. It is a way of stating that you consider these tariffs to be unjustified and incompatible with international rules. Elton Gomes highlights the importance of building a legal record. "Brazil doesn't just want to receive standards. It seeks to contribute to their construction. Each dispute generates jurisprudence and a set of documents that can guide future decisions." He recalls that, for Brazil, acting in international institutions has always been a way of expanding its influence in the face of the military weight of the great powers. Brazil has already used the WTO in other disputes The current appeal follows a strategy that Brazil has already used in other trade conflicts at the World Trade Organization (WTO). One of the most emblematic cases was the dispute against the USA over cotton subsidies, opened in 2002. At the time, the Brazilian government argued that American transfers to producers distorted the international market by artificially reducing cotton prices and harming Brazilian farmers. In 2004, the WTO won Brazil's case. After years of appeals and discussions about compliance with the decision, the country was authorized, in 2009, to apply trade sanctions against the USA. The retaliation, however, never got off the ground. In 2010, the two countries signed a provisional agreement and, four years later, they definitively ended the dispute. The outcome included the payment of US$300 million by the US to the Brazilian Cotton Institute (IBA), in addition to changes in American support programs for the sector. Sul de Minas concentrates cities among the leaders of MG exports and imports in 2026 Ana Torres/Headquarters Also in 2002, Brazil challenged the subsidies granted by the European Union to sugar producers at the WTO. Three years later, the Appellate Body confirmed that part of the measures were incompatible with international trade rules. The decision led the European bloc to reformulate its policy for the sector, reducing subsidies and expanding space for more competitive exporters, such as Brazil. In another prominent dispute, Brazil and Canada faced each other in the airline sector