Brazil initiates WTO dispute consultations over additional duties imposed by U.S.

GENEVA, July 30 (Xinhua) -- Brazil has requested the World Trade Organization (WTO) dispute consultations with the United States regarding additional U.S. duties on products originating in Brazil as a result of two investigations by the U.S. under Section 301 of the U.S. Trade Act of 1974, said the WTO Thursday on its website.

According to the WTO, Brazil said the additional duties are above the duties otherwise applicable under the U.S. harmonized tariff schedule. The request was circulated to WTO members on July 30.

Brazil contends the U.S. measures, which consist of an additional ad valorem duty of 25 percent on all products originating in Brazil (subject to certain exemptions) as a result of a Section 301 investigation and an additional ad valorem duty of 12.5 percent on products of Brazil (subject to certain exemptions) as a result of another Section 301 investigation focused on allegations related to forced labor, are inconsistent with various provisions of the WTO's General Agreement on Tariffs and Trade (GATT) 1994 and the Dispute Settlement Understanding.

Brazil on July 23 rejected the U.S. decision to impose the 12.5 percent tariff, calling the Section 301 investigation "arbitrary and unjustified." The Brazilian government said the United States had used forced labor as a pretext for protectionist trade policy, despite Brazil having submitted documents and explanations on its legislation and enforcement mechanisms during the investigation. Brazil also said it would immediately invoke the response mechanisms under its "Reciprocity Law." The U.S. tariffs, imposed on dozens of markets over allegations of lax enforcement of forced labor bans, took effect on July 24.

The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel. ■