Brazil says US fee of steel violates WTO rules and impairs relationship

In the text, Brazil recognizes US government’s efforts to promote industrial development and internal job creation, but points out that these measures should follow current agreements between the two countries.

“Brazil urges that the United States give priority to dialogue and cooperation rather than the unilateral imposition of commercial restrictions, which risk feeding a negative spiral that can severely harm our mutually beneficial commercial relationship,” the text says.

The Brazilian government also points out that all tariffs applied in the importation of products throughout Brazil follows the WTO parameters, including ethanol, nominally cited by the US government as a high tariff –18%.

“In the same sector of ethanol and sugarcane sugar, the US maintains a rate of $ 340 per tonne (the equivalent of approximately 80% rates), which penalizes Brazilian exports. Brazil does not apply any 80% tariff,” the document points out.

The text also raises one of the main arguments used so far by the Brazilian government: Brazil’s average tariff for US imports is 2.75%, with several products with zero rate.

To date, Brazil tries to negotiate the imposition of the rate on steel and aluminum, which came into force on March 12. But according to a source, there is a greater concern with what the US government should announce next week.