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[INTERNATIONAL] · Brazil, United States · 68 sources

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Brazil Takes WTO Dispute Over US Tariffs on Brazilian Exports

The United States has imposed a 25 % tariff on a range of Brazilian products under Section 301 of the Trade Act, and added a further 12.5 % surcharge, bringing the combined duty on some items to 37.5 %. The measures target sectors such as steel, aluminium, automotive parts, footwear and furniture and are justified by Washington on the basis of alleged forced‑labour violations.

Brazil’s government filed a formal request for consultations with the World Trade Organization on 27 July, arguing that the tariffs breach the WTO General Agreement on Tariffs and Trade (GATT 1994) and discriminate against Brazil compared with other WTO members. Analysts estimate the duties could affect roughly US$15 billion in Brazilian exports and shave 0.10‑0.26 % off the country’s GDP.

In response, Brazil’s major trade unions submitted a document to Minister Márcio Elias Rosa outlining proposals to mitigate the impact: boosting domestic production, expanding public investment, strengthening the National Development Bank (BNDES), and linking aid programmes to the preservation of jobs. The unions also call for new market diversification and stronger Mercosur integration.

Amid the dispute, President Luiz Inácio Lula da Silva and Chinese President Xi Jinping discussed accelerating a Mercosur‑China free‑trade agreement, which Brazil hopes could offset some of the loss from the U.S. tariffs.

Entities

Brazil · Brazil (Federal Government) · Brazil (Federal Government) · Brazil (Government) · Brazil (government) · Brazilian trade unions (CUT, Força Sindical, UGT, etc.) · General Agreement on Tariffs and Trade 1994 · Itamaraty (Brazilian Ministry of Foreign Affairs) · Jamieson Greer · Luiz Inácio Lula da Silva · Ministry of Development, Industry and Foreign Trade (MDIC) · Ministry of Foreign Affairs (Itamaraty)

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