First step for arbitration? Brazil seized the World Trade Organization (WTO) on Wednesday to challenge the surcharge of punitive customs imposed by the administration of US President Donald Trump, two sources from the Brazilian government said to the AFP.
This is the first measure taken by the government of the president of the left Luiz Inacio Lula da Silva since the entry into force on Wednesday of the customs tasks of 50% in many Brazilian products exported to the United States. Specifically, this is a request for “consultations” with US representatives at the WTO, the first step for possible arbitration.
The reason invoked by the Trump administration to justify this surcharge is mostly politician: he denounces an alleged “witch hunt” against former Brazil president Jair Bolsonaro, judged of course attempt and assigned to the house since Monday.
However, the effect of the surcharge was attenuated by the exemption of almost 700 products, customs duties of 50% of only 36% of Brazilian exports to the United States, according to the Brazilian government. But products such as coffee or beef, of which Brazil is the main exporter in the world, are really beaten.
Franco-Brazilian discussions
Brazilian finance minister Fernando Haddad said Wednesday that he would have a meeting on August 13 with his American counterpart, Treasury secretary, Scott Besent.
He referred to the role played by Deputy Eduardo Bolsonaro, son of the former president, of the United States, as an establishment of sanctions against his own country.
The Brazilian minister also said that on Wednesday an aid plan for the most affected sectors would be launched, especially for the benefit of “small producers, who have no alternative to exports to the United States.”
Source: BFM TV
