Brazil has filed a notice of appeal against the panel of World Trade Organization (WTO) that determined the withdrawal of subsidies for national industry sectors. Among them, the subsidies for automotive industry concerning Inovar-Auto program. WTO released a report on the subject in August.
Complaints about Brazilian subsidies were filed by the European Union and Japan. According to an announcement published at WTO's website, appeals to the international body must be based on points of law – considering legal interpretation, for example – and cannot re-open findings made by the panel.
Each appeal is evaluated by three members of a permanent seven-member appellate body. Usually, the appellate body has up to three months to conclude its report. The next few days, WTO will release details of the arguments presented by Brazil.
Brazilian authorities are already working on a new automotive policy to replace Inovar-Auto. Rota 2030, coming into force in January 2018, was designed to offer incentives both to national industry and importers in order to avoid objections by WTO.