US accepts Brazil’s consultation bid at WTO on tariffs
The US agreed to Brazil’s request for a consultation at the World Trade Organization (WTO) about the tariffs imposed by President Donald Trump.
However, Washington argued that some of Brazil’s claims involve “national security” issues, which cannot be reviewed by the organization.
In its response, released on the WTO website, the US government says that the 50-percent tariffs on Brazilian products, as well as ongoing trade investigations, are part of necessary measures to protect US interests.
“These actions were necessary to address the national emergency arising from conditions reflected in large and persistent annual US goods trade deficits with trading partners, threatening the national security and economy of the United States,” the US government stated.
“US national security [issues are] not susceptible to review or capable of resolution by WTO dispute settlement,” the document goes on to read.
The tariffs, the text adds, were imposed because Brazil’s recent policies and practices are “undermining the rule of law and threatening the national security, foreign policy, and economy of the United States.”
A symbolic dispute
Earlier this month, Brazil had filed a consultations request with the WTO over the 50-percent tariffs imposed by President Donald Trump’s administration. The move marked the beginning of a trade dispute in which the WTO seeks to mediate a dialogue to reach an agreement.
If no agreement is reached within 60 days, Brazil may request the establishment of a panel to adjudicate the dispute.
As the WTO has had its settlement mechanism weakened, such trade disputes have in practice become political and symbolic in nature.
The Brazilian Foreign Ministry has stated it intends to introduce new arguments and accusations should the dispute proceed to a panel.
Allegations made by Brazil
In its request for consultations, Brazil accuses the US of violating rules of the General Agreement on Tariffs and Trade and the Dispute Settlement Understanding. Among the topics raised are:
- Principle violation – failure to treat all WTO members equally, by exempting certain trading partners and penalizing Brazil;
- Tariffs above limit – the 50-percent rate exceeds the levels agreed upon by the US itself at the WTO;
- Discriminatory treatment – the surcharge imposes less favorable conditions on Brazil than those set out in the list of US trade concessions; and
- Failure to comply with dispute settlement rules – unilateral US penalties violate procedures set out in multilateral agreements.
