Brazil Seeks WTO Panel Against US Trade Tariffs
The Brazilian government turns to the Dispute Settlement Body after bilateral negotiations over 25% tariffs fail.
The Brazilian government has decided to request the formation of a panel at the World Trade Organization's Dispute Settlement Body. This move follows the lack of a satisfactory agreement during the consultation phase between Brazil and the United States regarding tariff hikes.
The panel will consist of three independent experts in international trade. This group will examine the facts and issue a report on whether the American sanctions comply with multilateral rules. The request is on the agenda for the body's meeting scheduled for the 24th.
WTO rules allow the United States to block the panel's formation at this first meeting. If a veto occurs, the issue will return to the agenda on December 17, when the US loses the ability to prevent the decision on its own.
The dispute involves a 25% surcharge applied to Brazilian products based on Section 301 of the Trade Act of 1974. The Brazilian government classifies the sanctions as unjustified and incompatible with current international obligations.
Government sources state that the WTO action does not halt bilateral negotiations led by the Ministry of Development. The process timeline, if opened, includes a composition phase of up to 90 days and an analysis period of approximately one year.
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