U.S. investigation of Brazil may reignite tariff tensions, says Itamaraty director

Although the American tariffs against Brazilian products person been reduced, the Brazilian authorities is inactive disquieted astir different question: the ongoing probe opened by the Americans against Brazil, done Section 301.

“This is perchance the largest 301 ever. Often, a 301 enactment is successful a peculiar sector, adjacent erstwhile it concerns China. Brazil is the people of an extended investigation. There are six topics successful total, each 1 of them immense successful itself”, says Fernando Pimentel, manager of the Commercial Politics Department of the Ministry of Foreign Relations of Brazil (Itamaraty).

The investigation, opened successful July, involves six areas successful which Brazil has been accused of unlawful practices. These are: integer commerce and physics outgo services, including Pix; preferential tariffs; exertion of anti-corruption laws; intelligence property; ethanol market, and amerciable deforestation.

Pimentel spoke astir the concern during an lawsuit hosted by the Brazil-United States House of Commerce (Amcham) this Tuesday, the 25^th. He besides said that Brazil has small power implicit the imaginable results of this investigation.

“The information that we answered good and that we person overmuch information and facts connected our broadside doesn’t mean that the 301 volition beryllium solved successful our favor. There is overmuch discretion successful negotiations”, helium affirms.

“Beyond tariffs, it is important for america to woody good with the 301. It makes nary consciousness for america to woody with the tariff contented lone to look the 301 3 months down the line. Possibly, owed to the sheer scope of the investigation, we whitethorn person to woody with each of that again. We indispensable debar a precise analyzable situation”, helium said.

The probe was opened successful July. In September, determination was a nationalist proceeding astatine which authorities officials, arsenic good arsenic representatives from companies and entities, presented arguments for and against the tariffs. On this occasion, galore American companies made arguments against the tariffs connected Brazil.

“The presumption and effect signifier has been concluded. Next is simply a consultation phase. They person been offered and accepted by Brazil, but it is present up to the American authorities to docket them. We are waiting for that to happen”, said Pimentel.

The probe has nary deadline, but expectations are that it volition extremity successful the coming months.

What is Section 301

Section 301 is simply a portion of America´s Commerce Law of 1974. This instrumentality authorizes the president to instrumentality measures against countries that interruption planetary commercialized rules oregon that instrumentality measures to restrict commercialized with the USA.

Investigations into countries that mightiness person breached rules are initiated by the United States Trade Representative (USTR), which is portion of the administration.

The regularisation states that the USTR indispensable negociate with countries to region commercialized barriers earlier imposing punishing measures.

If nary woody is reached, the American authorities whitethorn notation the contented to planetary bodies, specified arsenic the World Trade Organization, oregon enforce unilateral sanctions connected the people country.