BRASÍLIA: The United States has accepted Brazil’s request for formal consultations at the World Trade Organization regarding steep new tariffs.
Washington imposed a 50 percent tariff on more than a third of US-bound Brazilian exports in early August. The duties target key Brazilian products including coffee, beef, and sugar.
The move was framed by former President Donald Trump as punishment against Brazil.
Trump alleged a witch hunt was underway against his ally, former far-right president Jair Bolsonaro. Bolsonaro is currently on trial for allegedly plotting to attempt a coup.
A letter from the US WTO delegation dated August 15 confirmed the acceptance of talks. It stated, “The United States accepts the request of Brazil to enter into consultations.”
The letter added, “We stand ready to confer with officials from your mission on a mutually convenient date for consultations.”
The US response also included a significant caveat concerning the WTO’s jurisdiction. It cautioned that some of the issues raised by Brazil “are issues of national security not susceptible to review or capable of resolution by WTO dispute settlement.”
The initial WTO consultation process is designed to seek a negotiated solution before any arbitration.
Trump‘s original tariff order justified the action by citing Brazilian government policies.
It charged that recent Brazilian actions threatened the US economy, national security, and foreign policy.
The trade dynamic between the two nations adds a unique layer to the dispute.
Unlike most countries targeted by US reciprocal tariffs, the United States runs a trade surplus with Brazil. – AFP
