Brazil Rebukes U.S. 301 Probe, Urges WTO Talks over 50% Tariffs

Brazil delivered a 91-page submission to the Office of the U.S. Trade Representative rejecting the legitimacy of a Section 301 investigation opened in July into alleged unfair trade practices. Brasília said the unilateral probe violates World Trade Organization rules and should be resolved multilaterally, adding that it "does not recognise" determinations taken outside the WTO framework. The Brazilian document argues that policies on digital trade, intellectual-property protection, ethanol tariffs, environmental enforcement and the Pix instant-payments system comply with international commitments and do not discriminate against U.S. companies. It notes that 73.7 percent of U.S. exports already enter Brazil duty-free and urges Washington to engage in “constructive dialogue” rather than consider retaliatory measures. Brazil’s response follows President Donald Trump’s decision on 9 July to impose emergency tariffs of 50 percent on Brazilian goods. Earlier this month, Brazil asked the WTO to review the duties and the pending Section 301 case; the United States accepted consultations but asserted that the measures are tied to national security and therefore not subject to WTO adjudication. Finance Minister Fernando Haddad said any reduction in the new levies hinges on U.S. willingness to negotiate, while Brazil remains open to talks aimed at easing the trade dispute.