Brazil’s trade practices do not violate international standards and are consistent with market rules, said the Foreign Trade Secretary of the Ministry of Development, Industry and Foreign Trade (MDIC), Daniel Godinho, on Monday (Nov. 3). He was optimistic about the complaint the European Union brought against Brazil with the World Trade Organization (WTO).
“Brazil is confident that [its trade] practices are consistent with multilateral standards and optimistic about the outcome of the panel,” Godinho declared, referring to the complaint the EU brought before the WTO against Brazil on Friday (Oct. 31) for discrimination. The EU criticized the difference in tariff Brazil levies on domestic and imported manufactured products.
Among the main points challenged by the EU is the 30 percentage point difference in the Tax on Manufactured Products (IPI in the Portuguese-language acronym) levied on imported cars compared to vehicles assembled in Brazil. The EU went on to cite taxes on smartphones that render them 50% more expensive in Brazil than in most countries, even though technology manufacturers in Brazil benefit from tax reductions to operate.
Source: Agência Brasil