Brazilian agribusiness submits technical rebuttal to U.S. trade investigation

The Brazilian Confederation of Agriculture and Livestock (CNA) submitted a document on Friday (15/8) containing “technical responses” to the United States, in reaction to a Trump-era measure that opened an investigation into Brazil over alleged unfair trade practices.

The CNA sent the submission to the U.S. Trade Representative (USTR) and plans to attend the public hearing on the investigation in person in September.

“The CNA is confident that the U.S. investigation will demonstrate the commitment, not only of agribusiness but of the entire Brazilian economy, to fair, transparent, and rules-based international trade,” said Sueme Mori, director of International Relations, in a statement.

The process is based on Section 301 of the Trade Act and could result in unilateral economic sanctions. CNA’s document addresses three of the six main areas under review: ethanol market access, illegal deforestation, and preferential tariffs.

Ethanol Market Access
CNA noted that U.S. ethanol was tariff-free between 2010 and 2017. Currently, an 18% Most-Favored-Nation (MFN) rate applies to imports into Brazil.

“The MFN tariff of 18% is lower than that applied to Mercosur countries, which remain at 20%,” the CNA said. “Brazil’s tariff policy is transparent, non-discriminatory, and WTO-compliant.”

The confederation also highlighted that the RenovaBio program is open to foreign producers who meet the technical and environmental criteria and disputed U.S. claims of favoritism toward India and Mexico.

“CNA supports bilateral cooperation with the U.S. on the energy transition, particularly in bioenergy and sustainable fuels, recognizing the relevance of these products for global decarbonization,” it added.

Preferential Tariffs
CNA argued that Brazil grants preferential tariff treatment in a limited manner, in accordance with agreements compatible with the General Agreement on Tariffs and Trade (GATT) and the WTO Enabling Clause, such as deals with Mexico and India.

“Such agreements account for just 1.9% of Brazilian imports and do not discriminate against or harm U.S. exports. In comparison, the U.S. has comprehensive free trade agreements in force with 20 countries,” the CNA said, countering claims of discriminatory treatment toward the United States.

Illegal Deforestation
CNA stressed that Brazil maintains “robust and advanced” environmental legislation, including the Forest Code and the Environmental Crimes Law. Tools such as the Rural Environmental Registry (CAR) ensure traceability and compliance in agribusiness production.

“Control of timber exploitation is conducted through the National System for Monitoring the Origin of Forest Products (Sinaflor) and the Forest Origin Document (DOF+), with mandatory traceability and recognized certifications,” the confederation said.

Source: Globo Rural

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