Brazil rejects claims of unfair trade practices with US
The Brazilian Pix instant payment system aims to ensure the security of the financial system without discriminating against foreign companies, Brazil responded to the US. The statement is included in a document sent on Monday (Aug. 18) to the Office of the US Trade Representative (USTR), which has opened an investigation into Brazil for alleged unfair practices.
Signed by Foreign Minister Mauro Vieira, the 91-page document was published on the US Trade Representative’s website. It reinforces Brazil’s position that the country maintains fair commercial practices and does not implement discriminatory or restrictive measures against the United States.
The Brazilian government also challenges the legitimacy of the US Trade Representative’s actions, stating there is no legal or factual basis for the Trump administration’s allegations.
Requested by the Trump administration in July, the investigation aims to identify possible Brazilian practices that could negatively affect US companies, particularly in sectors such as digital payment systems (Pix), ethanol, intellectual property (piracy), and deforestation.
Regarding Pix, the Brazilian defense emphasized that administration by the Brazilian Central Bank ensures neutrality in the instant payment system. The document also noted that other central banks, including the Federal Reserve (the US central bank), are testing similar tools.
“In fact, various governments are taking the initiative to provide infrastructure for instant payments, including the European Union, India, and the United States. The US Federal Reserve, in particular, recently introduced FedNow, a system with functionality similar to Pix,” the document noted.
Lack of legal basis
Brazil argues that there is no legal or factual basis for the US allegations. According to the Brazilian government, the unilateral measures outlined in Section 301 of the US Trade Act of 1974 could undermine the multilateral trading system and harm bilateral relations.
“In its statement, Brazil reiterates that it does not recognize the legitimacy of unilateral instruments such as Section 301, which are inconsistent with the rules and dispute settlement system of the World Trade Organization (WTO). Brazil’s participation in the process is intended as a dialogue and clarification of facts and does not constitute recognition of the validity or jurisdiction of the procedure,” the Ministry of Foreign Affairs said after submitting its defense.
The document also highlights that the trade relationship with the United States is mutually beneficial and that the US has historically maintained a trade surplus with Brazil.
According to the Brazilian government, the statement reinforces Brazil’s view that its economic and regulatory policies are consistent with the international standards established by the WTO.
Piracy
Regarding the accusation of piracy and intellectual property infringement through street vending, the defense stated that Brazil maintains and “robustly” enforces a comprehensive legal regime to protect intellectual property rights.
The Brazilian government stated that it complies with international standards and maintains regulatory frameworks consistent with WTO agreements.
According to the document, the reforms promoted by the Brazilian government in sectors considered sensitive by the US were intended to align with multilateral rules, without harming US competitiveness or interests.
Social media
The Trump administration also questioned the blocking of US social media platforms and the suspension of user accounts ordered by Brazilian courts.
In response, the Brazilian government denied that court decisions, including those of the Supreme Court, have resulted in discriminatory measures that undermine the rights of US companies to operate in Brazil or compete in global markets.
The document also noted that the imposition of fines and coercive measures is standard practice under Brazil’s rule of law, as it is in the United States.
According to Brazil’s defense, Article 19 of the Brazilian Civil Code, cited in the US indictment, is a general rule regulating the legal liability of all companies, regardless of origin, and does not specifically target the United States or any other country.
Deforestation and ethanol
Regarding ethanol, Brazil stated that its policies are in line with multilateral commitments. The document emphasized that the country has historically maintained low tariffs on ethanol imports as part of its WTO obligations.
Concerning deforestation, the government emphasized that its environmental actions do not constitute trade restrictions or hinder the competitiveness of American companies, highlighting its efforts to preserve the environment without restricting the free movement of goods or promoting discrimination.
Aeronautics
On aeronautical products, Brazil noted that it applies zero tariffs to US goods entering the country. The document emphasized that Brazilian aerospace companies have also created jobs in the United States.
Next steps
The Brazilian response is under review by the USTR. The agency will hold a public hearing on September 3, during which representatives from companies, organizations, and government agencies will present their arguments.
The outcome of the dispute, however, is unpredictable because the final decision will be up to Donald Trump’s administration.
