The Brazilian government submitted a request for consultations to the United States on Monday (27) within the World Trade Organization's (WTO) dispute settlement system, challenging two tariff measures adopted by the North American country based on Section 301 of the Trade Act of 1974. According to a statement released by the Ministry of Foreign Affairs, Brazil considers the tariffs unjustified and incompatible with the obligations assumed by the United States under the General Agreement on Tariffs and Trade of 1994 (GATT 1994) and the rules governing the WTO dispute settlement mechanism, says the statement from "Agência Brasil"One of the questioned measures stems from a specific investigation into Brazil and imposed an additional 25% tariff on Brazilian products. In the process, the United States examined issues such as digital commerce and electronic payment services, preferential tariffs, application of anti-corruption legislation, protection of intellectual property, access to the ethanol market, and combating illegal deforestation. The second measure resulted from an investigation conducted with 60 economies and established an additional 12.5% tariff on Brazilian products. In this case, the focus of the investigation was the existence and application of restrictions on the import of goods produced, wholly or partially, with forced labor. The request for consultations represents the first formal step in the WTO dispute settlement system. At this stage, countries seek to negotiate a solution to the conflict before the eventual establishment of a panel to analyze the case. According to Itamaraty (Brazil's Ministry of Foreign Affairs), the initiative seeks to challenge the compatibility of the US tariff measures with multilateral trade rules."
Tariff
The new tariffs announced by the United States will affect US$6.6 billion worth of Brazilian products exported to the US market, according to the Ministry of Development, Industry, Trade and Services (MDIC). According to the ministry, the accumulated surcharge of 37.5% affects 16.5% of Brazilian exports to the US. Among the affected items are machinery and equipment, different types of wood, fats and oils, footwear, furniture, and clothing.
This text was translated by machine from Brazilian Portuguese.