Lula government challenges U.S. tariff hike at World Trade Organization

The government of President Luiz Inácio Lula da Silva filed a complaint on Wednesday (6) against the United States at the World Trade Organization (WTO) over the sweeping tariffs imposed on Brazil. Although it does not expect concrete results from the organization, Lula’s administration views the move as an important geopolitical stance.

According to sources from Valor, the next step is to hold consultations between representatives of Brazil and the United States in Geneva. The aim at this stage is to work toward a resolution.

The possibility of Brazil appealing to the WTO had been under consideration by the Lula government since the beginning of Donald Trump’s second term as U.S. president, when he launched a global wave of tariffs. However, the Brazilian administration has long considered it unlikely that the United States would comply with any WTO ruling and therefore has treated the appeal as more symbolic than practical.

One of Brazil’s arguments is that the WTO currently includes several individuals closely tied to the U.S. government among its senior ranks, reducing the likelihood of a favorable outcome. Still, the decision to bring the tariff issue before the trade body became unanimous within Lula’s administration after Trump announced a 50% tariff on Brazilian products. The tariff came into effect on Wednesday.

During a meeting of the WTO General Council held in Geneva at the end of July, Brazil reiterated the need to defend the multilateral trade system and condemned the use of arbitrary tariffs that violate the WTO’s core principles and threaten the global economy.

Source: Valor Econômico

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