President Lula’s government sent to the United States a report on practices investigated by Washington in the financial, commerce, digital, deforestation, corruption and intellectual property.
After, the US government reported that it would investigate Brazil based on section 301 of the country’s trade law.
Several suspicions of alleged unfair practices were raised to trade or harmful to American companies, such as import tariffs, non -tariff barriers, uncontrolled deforestation. Not even the PIX payment system and product sales on 25 de Março Street in São Paulo were spared.
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What are the next steps?
After sending the report to Washington, negotiators from the US and Brazil will return to discuss the topic in a public hearing that will take place in early December this year.
If the US Commerce Representative Office (USTR) concludes that Brazil has anti -specific practices in trade relations between the two countries, compensatory measures may be adopted, such as new barriers to Brazilian products. The process should take at least one year.
What were Brazil’s arguments?
See in 6 points to follow the main arguments presented by the Brazilian government to the US.
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1 – Digital trade and electronic payment services
The United States state that Brazilian court decisions could make digital platforms responsible for user content, that databases and privacy could limit information flows and that the PIX system would give undue advantage to national services.
Brazil counteracts. It says that the decisions of the Federal Supreme Court on the liability of platforms does not impose strict responsibility to companies and requires a court order for most cases of illegal content.
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It also argues that policy balances freedom of expression with the need to prevent online criminal activities and that confidential court orders are a legitimate and legitimate practice used to protect the parties involved.
On the data, it states that the general data protection law is aligned with global standards, such as the European Union GDPR.
In relation to Pix, it is described as a public, non -exclusive and open access infrastructure, created to modernize the payment market, promote competition, financial inclusion and reduce transactions costs. And it says the system can be accessed by foreigners.
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2 – Preferred tariffs
The US government states that Brazil favors Mexico and India over the US.
Brazil replied that it does not restrict American trade through tariffs and cites that the applied rates are low, with 73.7% of US exports entering Brazil with zero fare. It argues that commercial agreements with India and Mexico are in accordance with the rules of the World Trade Organization for developing countries.
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3 – Anti -corruption law
Americans say that an alleged insufficient application of anti -corruption laws in Brazil undermines US companies.
Brazil rejects the allegations that its anti -corruption application is inconsistent, selective or that it aims at US companies. The document argues that Brazilian politics is an effort to fight corruption impartially.
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4 – Intellectual property
The US complains about an alleged lack of effective protection against piracy and forgery (and cite 25 March Street in Sao Paulo) and speaks of excessive deadlines for patent analysis.
The Brazilian document claims that it fulfills international standards and argues that the rules seek a balance between the protection of intellectual property rights and the promotion of the public good, which includes the protection of public health.
“Brazilian authorities have been making a joint efforts to end forgery operations in physical markets, such as the 25 de Março Street region,” he adds.
5 – ethanol
In another recurring complaint, the US claimed that Brazilian tariffs unbalance the ethanol trade.
The Brazilian government states that it has not imposed discriminatory barriers against US ethanol and that tariffs are lower than that the country applies to Brazilian exports (the Brazilian fare is 18%, while the US is 52.5%).
6 – Illegal deforestation
The US also complains about alleged failures in the application of environmental laws, which, they say, create unfair competitive advantage.
Brazil states that it is taking active and concerted measures to repress illegal deforestation and eliminate the portion of supply chain products originating from illegally deforested land.
