GENEVA, SWITZERLAND – Brazil has asked the World Trade Organization for consultations over new U.S. tariffs — 10% on all Brazilian products and an additional 40% on certain goods — circulated to WTO members on August 11. Officials say the measures violate U.S. commitments under the General Agreement on Tariffs and Trade (GATT) and the WTO’s dispute rules by imposing penalties without first pursuing settlement procedures.
The case recalls Brazil’s 2003 WTO challenge against U.S. cotton subsidies, a landmark ruling that ultimately reformed American export credit programs and secured a $300 million payment to Brazil’s cotton sector. That dispute demonstrated the effectiveness of using WTO channels to protect agricultural trade interests.
This time, Brazil’s farm exports — including soybeans, beef, sugar, and cotton — face increased costs in a key market. The government has opted against immediate retaliation, instead focusing on legal remedies and domestic support to buffer exporters. Agricultural leaders say the stakes are high but view the WTO process as the best path to resolve tensions and safeguard market access for rural producers.
One significant difference is that the WTO Dispute Resolution process is non-functioning as the U.S. has blocked, for the past five years, any new members to the Panel.
