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The Hindu·2 min read·medium

Brazil requests WTO consultations over U.S. tariffs

R
Reuters
Brazil requests WTO consultations over U.S. tariffs
✦AI Summary

Brazil has formally requested consultations with the United States through the World Trade Organization to challenge new tariffs imposed by the Trump administration. The Brazilian government argues that the 25% tariffs on specific goods and additional levies related to labor practices are unjustified and violate international trade agreements.

Why it matters

This move signals a potential escalation in trade tensions between the U.S. and Brazil, testing the efficacy of WTO dispute resolution mechanisms.

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Brazil has requested consultations ​with the U.S. ⁠under the World Trade Organization’s dispute settlement system over tariffs announced by ‌the Trump administration this month, the Brazilian Foreign Relations Ministry ‌said in a statement ‌on ⁠Monday.

The request is related ⁠to tariffs of 25% imposed by the U.S. on imports of some ​Brazilian goods ‌for alleged unfair trade practices, and up to 12.5% tariffs on goods from dozens of nations, ‌including Brazil, linked to allegations ​of lax enforcement of forced labour bans.

Brazil said ⁠the measures are “unjustified and inconsistent” with U.S. obligations under the WTO’s “General ‌Agreement on Tariffs and Trade 1994” and “Understanding on Rules and Procedures Governing the Settlement of Disputes”.

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