U.S. agrees to WTO talks as China seeks to join Brazil’s case

The U.S. responded on Monday (10) to Brazil’s request for consultations at the World Trade Organization (WTO) to discuss the two tariffs imposed on Brazilian products imported by the country. In a document sent to the body, the U.S. stated that it “accepts Brazil’s request to initiate consultations” and that its representatives are “available to talk with representatives of your mission on a date convenient to both parties for holding the consultations.”

Also on Monday, China requested to take part in the tariff discussion between the U.S. and Brazil, stating that it “has a substantial commercial interest in these consultations.”

In the document, the country says the measures could also affect Chinese exports, since the discussions could affect the competitive conditions for its products in the U.S. market.

“China therefore respectfully requests that it be allowed to participate in the consultations in this dispute,” reads an excerpt from another document linked to the discussion.

The U.S. statement submitted on Monday responds to the complaint filed by Brazil with the WTO, formalized at the end of last month by the Ministry of Foreign Affairs through Brazil’s Permanent Mission to the WTO, in Geneva.

On July 27, Brazil stated that the measures adopted by the U.S. violated commitments made by the country under the multilateral trading system and represent an attempt to impose sanctions unilaterally.

The initiative challenges the two surtaxes announced last month by the Office of the U.S. Trade Representative (USTR), both based on Section 301 of U.S. trade law: the first, an additional 25% tariff related to the investigation into Brazilian trade practices.

The second is the 12.5% tariff linked to the inquiry into Brazil’s alleged failures to curb the exports of products made with forced labor. Combined, the measures raise taxation on a portion of Brazilian products exported to the U.S. market.

In the statement sent to the WTO, Brazil argues that Washington disregarded the most-favored-nation principle, one of the pillars of international trade, by applying specific tariffs against Brazilian products without extending the same treatment to other members of the organization.

It also contends that the U.S. began charging tariffs above the limits bound with the WTO. Another point of the complaint is the allegation that the U.S. resorted to unilateral measures to respond to alleged trade violations, instead of using the dispute settlement mechanism provided for by the organization itself.

“The U.S. is acting inconsistently with Article 23.1 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) by seeking to redress alleged violations of obligations, or other nullification or impairment of benefits under the covered agreements, or impediments to the attainment of the objectives of those agreements, through unilateral determinations and the imposition of tariffs, rather than having recourse to and abiding by the rules and procedures set out in the DSU,” reads an excerpt from the statement.

The document also recounts the history of the trade dispute between the two countries. Brazil notes that, since February 2025, the U.S. has been adopting successive additional tariffs against trading partners under various justifications.

*By Agência O Globo — Brasília

Source: Valor International

https://valorinternational.globo.com/