The World Trade Organization (WTO) reported on Monday (11) that it received the formal request of Brazil to open a procedure for consultations with the United States regarding the increase in tariffs imposed by the government of President Donald Trump.
The request was communicated today to all WTO member countries. On July 9, the White House announced a 50% tariff over products imported from Brazil to the United States, total than 10% announced in April on “Liberation Day”.
Brazil, in turn, alleges that these measures are incompatible with the obligations that the US assumed in trade agreements traded within the WTO, including its intention to seek a kind of reparation for its commercial deficit through tariffs.
At the WTO, Itamaraty said the United States “flagrantly” flagling “the commitments they made in the organization, such as the” most favored nation principle and tariff ceilings traded within that organization. “
“Bilateral consultations, designed for the parties to seek a negotiated solution for the dispute before the eventual establishment of a panel, are the first formal stage in the context of controversy system in the WTO. The Brazilian government reiterates its disposition to negotiation and hopes that consultations contribute to a solution to the issue,” the Ministry of Foreign Affairs in a statement.
President Lula’s government expects to receive a response to his petition for bilateral consultations and that the dates for corresponding meetings are set, a process that should last a maximum of 60 days.
If there is no agreement, Brazil may request the creation of a panel of experts to resolve this commercial dispute, a step to which – according to current rules – the United States cannot oppose.
USA “took note” from Brazilian critic
Last month, the US delegation “took note” from Brazil’s criticism of the WTO tariff and said the US government is “concerned” about the current unfair conditions of global trade.
The White House “is” concerned that US workers and companies are forced to compete in unequal conditions with countries that are not following the rules and disciplines with which they agreed to become members of this institution.
According to Washington, WTO members “dodged their collective responsibilities for a long time, which contributed to the situation we are currently in.”
Regarding Brazil’s criticism, the US delegation bureaucratically stated that it “took note” of the statements, reiterating President Donald Trump’s position that US relations with other countries do not seem fair.
