Legal Basis of the Complaint

At the time, the Brazilian representative implicitly criticized the US, stating that Washington’s "chaotically announced and implemented arbitrary tariffs are disrupting global value chains and risk plunging the world economy into a vicious cycle of high prices and stagnation. Such unilateral measures blatantly violate the core principles underpinning the WTO, which are essential for the proper functioning of international trade."

This time, Brazil stated in the communication document that the US measures in question are inconsistent with the US obligations under GATT 1994.

For example, Brazil specifically argues that the US actions violate Article I:1 of GATT 1994 because, while imposing additional tariffs on certain Brazilian products, the US exempted some of its trade partners from such tariffs. This fails to immediately and unconditionally extend to Brazilian products any advantages, favors, privileges, or immunities granted by the US to like products originating in the territories of other WTO members regarding tariffs or charges of any kind imposed on or in connection with importation.

At the same time, the US actions violate Article II:1(b) of GATT 1994, as the ordinary customs duties imposed exceed the bound rates specified in the US Schedule annexed to GATT 1994, and/or the US failed to exempt certain Brazilian goods from any other duties or charges exceeding those stipulated in its Schedule.

Furthermore, the US actions violate Article 23:1 of the DSU by seeking to redress alleged violations of obligations or nullification or impairment of benefits under the covered agreements through tariff measures rather than resorting to the rules and procedures of the dispute settlement mechanism.

Therefore, Brazil reserves the right to raise additional relevant facts, supplementary measures, and claims during the consultation process and in any future requests for the establishment of a panel. Brazil also stated that it looks forward to receiving the US response to this request and setting a mutually convenient date for consultations.

Typically, a request for consultations refers to the formal initiation of dispute consultations at the WTO. This provides the parties involved an opportunity to discuss the issue and seek a mutually satisfactory solution without further litigation. If consultations fail to resolve the dispute within 60 days, the complainant may request a panel ruling.