Document points to Pix as “possible unfair practice” and complains about piracy in the country
The Brazilian government will submit on Monday (18) to the US a response on commercial investigation opened by the management of Donald Trump, which has PIX as one of the targets and is based on section 301 of American trade legislation.
Delivery date was released in early August by Chancellor Mauro Vieira. At the time, he called “absolutely legitimate” the practices questioned by the US report – scored by USTR (US Commerce Representative Office).
Document points to Pix as “possible unfair practice” and complains about piracy in the country. “Brazil also seems to be involved in a series of unfair practices regarding electronic payment services, including, among others, the promotion of its electronic payment services developed by the government,” says an excerpt from the document, revealed in July.
Brazilian government defined the action of the Trump government as unjustifiable. The US was also accused of using the measure mistakenly.
What is section 301?
Section 301 is a US commercial policy tool to investigate alleged unfair business practices. The US government can start investigations into commercial barriers, tariff policies and even digital restrictions, as in the case quoted by Trump. Section 301 was instituted by the 1974 Commerce and Tariff Law and already used on several occasions against countries such as China, India and Nations of the European Union.
The device allows measures against countries considered unfair in trade. It acts as an instrument of commercial retaliation. Section 301 allows the US to apply sanctions such as extra rates or import restrictions against countries that, according to US evaluation, impair their exports or companies.
In practice, it is a legal basis used to press partners. The section is often used as a bargaining mechanism: the US applies or threatens to apply sanctions to force changes to commercial policies in other countries.
