Brazil Issues US Retaliation List; Open To Talk

Today the Brazilian government published a list of US goods that will be subject to higher import taxes when entering Brazil, according to a press release.

This follows a WTO dispute settlement decision giving Brazil the authorisation to suspend Brazil’s concessions and other obligations in the WTO towards the US which was found in violation of international trade rules over its cotton subsidies (IPW, WTO/TRIPS, 7 September 2009).

The list, which corresponds to retaliation in amount of US $591 million, has been notified to the WTO and was approved in a resolution by the Council of Ministers of the Chamber of External Trade (CAMEX). The resolution will take effect in 30 days.

The remaining amount of annual retaliation granted to Brazil (US$238 million) “will be applied in the sectors of IP and services,” according to the release. The list of goods that might fall under this retaliation will be completed after the conclusion of a public consultation expected to be launched by 23 March (IPW, WTO/TRIPS, 19 February 2010).

Brazil said it remains “open to a dialogue with the United States that may facilitate the achievement of a mutually satisfactory solution to this dispute.”

To see the list, click here.