Brazil Opens WTO Dispute Against 50% US Tariffs
Brazil requested dispute consultations with the U.S. at the World Trade Organization on Aug. 11 regarding the 50% tariffs that President Donald Trump recently imposed on Brazilian goods. Brazil said the measures are inconsistent with U.S. obligations under Articles I and II of the General Agreement on Tariffs and Trade (GATT) 1994 and Articles 23.1 and 23.2 of the Dispute Settlement Understanding (DSU).
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Brazil alleged that the tariffs, imposed under the International Emergency Economic Powers Act, violate Article I of the GATT 1994 since the U.S. failed to accord Brazilian products the same "advantage, favour, privilege or immunity" granted to other WTO members. The tariffs also violate Article II of the GATT 1994 by imposing ordinary customs duties beyond the rates provided in the U.S. "Schedule of Concessions" or by failing to exempt Brazilian goods from other duties in excess of those found in the concessions schedule, the dispute consultations request said.
The U.S. also violated Article 23.1 of the DSU "by seeking redress of purported violations of obligations or other nullification or impairment of benefits under the covered agreements through tariff measures, rather than with recourse to the rules and procedures of the DSU," Brazil said. The U.S. imposed the tariffs due to the prosecution of former Brazilian President Jair Bolsonaro and the alleged infringement of the expression rights of U.S. citizens (see 2507300066).
Brazil said the U.S. also violated Article 23.2(a) of the DSU by determining that Brazil violated its WTO commitments "without recourse to dispute settlement under the DSU."