Brazil Criticizes Unilateral Trade Measures at WTO, Calling for Multilateral Reform

Strategic Insights -

Brazilian Ambassador Philip Gough, Secretary for Economic and Financial Affairs at the Ministry of Foreign Affairs, addressed the World Trade Organization (WTO) General Council on Wednesday, criticizing the recent threat by a head of state to impose a 50% tariff on Brazilian goods, starting August 1. Gough emphasized that Brazil has long been a committed supporter of multilateralism and that the country will seek negotiated solutions to resolve trade disputes.

Key Takeaways:

  • Brazil's Ambassador to the WTO, Philip Gough, warned of an "extremely dangerous shift toward the use of tariffs as a tool to interfere in the internal affairs of third countries."
  • The Brazilian government is concerned about the use of tariffs to meddle in other countries' internal affairs, which is considered "even more alarming" than traditional trade rule violations.
  • Brazil has been a committed supporter of multilateralism, and the country will prioritize negotiated solutions to resolve trade disputes.
  • The WTO's dispute settlement system remains effectively stalled due to U.S. opposition.
  • Brazil is ready to work on a structural and comprehensive reform of the WTO to address today's challenges.
  • Developing economies must unite in defense of a rules-based multilateral system against coercive trade tactics.
  • China also voiced strong support for reform at the WTO, citing the need to address the proliferation of unilateral tariffs and trade deals that are incompatible with WTO rules.

Statistics:

  • 19.4% of global merchandise imports are now subject to steep tariff hikes, up from 12.5% just six months ago (WTO figures).
  • Trade flows now affected by unilateral tariffs amount to $2.7 trillion, the highest level since the WTO began monitoring these measures in 2009 (WTO figures).
  • Several bilateral trade deals struck between certain countries to ease tensions are "clearly incompatible" with WTO rules, threatening third-party interests (China's speech at the WTO).
  • Brazil has been a committed supporter of multilateralism, and the country will prioritize negotiated solutions to resolve trade disputes.

Sources:

  • World Trade Organization (WTO)
  • Brazilian Embassy to the WTO (Philip Gough's speech)
  • China's speech at the WTO
  • WTO's latest figures on global merchandise imports and tariffs
  • Statement by President Lula on diplomacy and multilateralism