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Brazil Tries to Win Time at WTO to Prevent Retaliation

08/31/2017 - 11h05



The Brazilian government decided to appeal a decision by the World Trade Organization (WTO) that gave Brazil 90 days to withdraw seven industrial stimulus programs.

These programs are being questioned by Japan and the European Union and were considered as illegal subsidies, according to a decision made by the panel that analyzed the cases.

The decision to appeal will delay the risk of retaliation by the countries questioning the programs.

The case will be analyzed again by the Appellate Body of the World Trade Organization, which is likely to take between three and six months. With the measure, the Brazilian government hopes to win time to modify the programs or even end them.

It is the case of the "Inovar Auto" automotive program, created by the PT administration, which is scheduled to end in December 2017.

The deputy secretary for Financial and Economic Affairs of Brazil's Ministry of Foreign Affairs, Carlos Márcio Cozendey, says that the final decision by the appellate body is likely to indicate how much time Brazil will have to suspend or modify the programs - the 90 days originally ordered or a longer period.

After this period, the government will have to present the measures carried out. If Japan and the European Union accept them, the retaliation will be prevented.

The WTO will also analyze how demands are met. The EU and Japan will be entitled to retaliation only if the organization agrees that no adjustments were made.

Brazil will question the judicial aspects of the decisions to understand better what can and cannot be done.

Translated by THOMAS MUELLO

Read the article in the original language

Roosevelt Cassio/Reuters
An aerial view of new cars parked at a stock area of the Volkswagen German automaker plant in São Jose dos Campos, near São Paulo
An aerial view of new cars parked at a stock area of the Volkswagen German automaker plant in São Jose dos Campos, near São Paulo

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