Brazil’s ongoing consultation at the World Trade Organization (WTO) on the duties the US has applied over the Brazilian flats imports is likely to be negatively affected by Trump’s foreign trade policy, according to a media report from Brazil newspaper Valor, citing analysts and industry experts.
The media report noted Brazil’s request at the WTO is likely to be “completely ignored” by the Trump administration, given the recent messages sent by the White House to US Congress.
Brazil filed its complaint against the US at the WTO in November last year, claiming duties applied to the CRC and HRC exported by local steelmakers Companhia Siderurgica Nacional (CSN) and flats producer Usiminas were illegally and abusively applied even despite existing international trade rules.
During the consultation phase in December, the Brazilian government sent 145 questions to the US about the investigations, but US officials reportedly gave “evasive” answers or ignored certain questions entirely.
As a result of the ongoing consultation at the WTO, Brazil will now have to decide if it will continue the process with the opening of a specialist panel. However, the White House has already signaled it will use existing trade defense instruments without taking into consideration international trade rules, the media report noted.
“Brazil can open the panel against the US, the panel can say Brazil is right, and the US can even follow the needed processual requisites to then call on an appealing body [at the WTO]. But at the end of the day, if Brazil wins the dispute, Washington tends to ignore the decision that isn’t of its interest,” the media report said.