Brazil initiates WTO trade dispute against US over tariffs

BOGOTA, Colombia

The Brazilian government has formally requested consultations with the World Trade Organization (WTO) over tariffs imposed by the United States on Brazilian products, according to the foreign ministry on Wednesday. This request, delivered to the US mission to the organization, represents the first official step in a trade dispute.

"​​​​​​​Brazil has filed a request for consultations with the United States of America (USA) under the World Trade Organization (WTO) Dispute Settlement System," said a Foreign Ministry statement

President Luiz Inacio Lula da Silva had previously announced that his government would file a formal complaint with the WTO to try and reverse the US tariffs, which he considers to be in violation of international trade rules.

President Donald Trump imposed a 50% tariff on US imports from Brazil, a move he linked to what he called a "witch hunt" against his political ally, former President Jair Bolsonaro, who is currently facing trial for alleged coup plotting after his 2022 election defeat.

Approximately 36% of Brazilian exports to the United States will be affected by the tariffs, according to estimates from the Ministry of Development, Industry, and Commerce (MDIC).

"By imposing these measures, the US flagrantly violates core commitments made by that country to the WTO, such as the most-favored-nation principle and the tariff ceilings negotiated within that organization," the statement added.

Despite the formalization of the action, the WTO's appellate body has been paralyzed in adjudicating appeals since December 2019, when the US began systematically blocking the appointment of new judges.

Brazilian Vice President Geraldo Alckmin confirmed that "the country is ready to defend its trade interests through the WTO" and that President Lula will now determine the next steps of the consultation, which could lead to a formal complaint and the formation of an expert panel.

This move by the Brazilian government also serves to reinforce the country's role in global trade and send a political message to the US government. The initiative is proceeding in parallel with attempts at direct negotiations between the two countries.

Finance Minister Fernando Haddad announced that he will hold a meeting with the US Treasury Secretary Scott Bessent on August 13 to discuss the tariffs. He said the Lula government is preparing a support package for sectors affected by the tariffs.