Brazil denounces Trump fares in the WTO and alerts for the political use of trade

The Brazilian government reported on Wednesday (23), at a meeting of the General Council of the World Trade Organization (WTO), the political use of commercial tariffs by the United States.

Brazil has been supported by about 40 countries, including China, Russia, India, Canada and the European Union.

Not to mention Donald Trump’s name directly, Itamaraty accused the practice of representing an attempt to interference with internal affairs and a threat to the stability of international trade.

The demonstration took place in Geneva and was led by Ambassador Philip Fox-Drummond Gough, Itamaraty’s Secretary of Economic and Financial Affairs.

According to him, the imposition of arbitrary tariffs, such as those announced by Trump against Brazilian products, threatens to launch the global economy into a high price spiral and stagnation.

At the center of the complaint is the 50% rate announced by Trump on Brazilian products, scheduled to take effect on August 1. The former US president publicly linked the measure to the way Brazil dealt with Jair Bolsonaro, the alleged “attacks on free elections” and “lack of reciprocity” in business relations.

For the Brazilian government, it is a blatant violation of the WTO rules.

During the WTO Plenary speech, the Brazilian ambassador warned that “power -based negotiations are a dangerous shortcut for instability and war.”

He stated that tariffs are being used as political coercion tools to the detriment of the multilateral system based on common rules.

According to Gough, the practice breaks historical principles of international trade, such as the treatment of the most favored nation and non -discrimination. “These measures raise fundamental issues regarding legal predictability and the balance of market access conditions traded for decades within the scope of GATT [Acordo Geral sobre Tarifas e Comércio] and the WTO, ”he said.

The diplomat also reported that by paralyzing the WTO controversy system, the United States further weakens global trade governance. Brazil defended the resumption of the full operation of the agency and called for collective efforts for the entity’s structural reform.

Support and International Articulation for WTO Reform

The Brazilian position was supported by about 40 delegations, including powers such as China, Russia, Canada, India and the countries of the European Union. China, in its intervention, presented alarming data: 19.4% of world imports are currently submitted to high tariffs, compared to 12.5% six months ago. The affected trade volume already reaches $ 2.7 trillion.

Beijing also criticized recent bilateral bilateral agreements by the US, such as Indonesia, which accepted 19% rates for their products in exchange for free admission to US goods. For China and Brazil, these practices deepen the system fragmentation and violate the principles of the WTO.

Behind the scenes, the Brazilian ambassador met with WTO Director-General Ngozi Okonjo-Iweala, and other key delegations, seeking support for the Brazilian proposal of a broad reform of the organization. “We still have time to save the multilateral trade system,” said Gough.

Brazil keeps bet on dialogue, but nods with reaction

Despite the critical tone, the Brazilian government has reiterated that it will continue to prioritize dialogue with the United States. Brazil sent formal letter to Washington requesting negotiations and possible exceptions to the fare. So far, there has been no official response, but Itamaraty does not rule out a diplomatic mission to Washington in the coming days.

If negotiations failed, Brazil may resort to the WTO controversy solution mechanism – even with its operation impaired by the US boycott. “We will resort to all legal means available to defend our economy and our people,” said Gough.

Internally, the government is already preparing for more blunt answers. An Interministerial Committee on Trading and Economic and Commercial Discounts was created, coordinated by the MDIC with the participation of the farm, the Civil House and the Itamaraty. In addition to retaliation tariffs, Brazil evaluates applying sanctions on intellectual property and US cultural products, based on the new reciprocity law.