President Michel Temer received the general director of the World Trade Organization (WTO) Roberto Azevêdo last Monday (12) in audience. The two men talked about the United States’ decision to impose tariffs on imports of steel and aluminum. After the meeting, Azevêdo said that the Brazilian government is talking with other countries affected by the measure and studying possibilities of understanding with the United States.
“As far as I can understand, the Brazilian government is in contact with other countries, to study which alternatives would be more appropriate, from a Brazilian and even a collective point of view. I realized that the Brazilian government is perfectly aware of all these developments, is open to an attempt to understand with the Americans, “said Azevêdo.
According to him, Brazil does not rule out the possibility of appealing to the WTO itself against the US measure, although the strategy is not being adopted at the moment. “I do not know if there is a determination to resort to the WTO dispute settlement mechanism. I understand that the Brazilian government does not exclude this possibility, but studies other alternatives that are on the table. “
The additional tariff of 25% on steel imports and 10% on aluminum imports adopted by the government of President Donald Trump are of concern to Brazil, according to the Ministry of Industry, Foreign Trade and Services (MDIC). According to the brief, the trade restriction will affect Brazilian exports of both products and may result in Brazilian contestation in international organizations.
In a statement issued last week, the Brazilian government said the decision announced by US President Donald Trump would cause “serious damage” to Brazil and will have “impacts on trade and investment relations between the two countries.” In all, 32% of the steel exported by the national industry is destined for the American market, making Brazil the second largest exporter of the product to the United States, behind only Canada. The US neighboring country will not be affected by the new tariff.
Azevedo warned of the risk of entering a retaliatory scenario. According to him, it is a difficult situation to leave once initiated. “I hope these understandings are fruitful, that we can avoid a situation of ‘you do that and so I respond with that.’ This climb is difficult to reverse. Once you enter this path, you know when and how it begins, but you do not know when or how to stop this process. “