Bolsonaro signs decree allowing Brazil to return to trade dispute over deadlock in WTO

the president of Brazil, Jlug Bolsonaro, signed a decree allowing the country to take unilateral retaliation in commercial disputes as the hearings in the World Trade Organization (WHO), the official newspaper published on Thursday.

The Brazilian government said the measure was due to the WHO Appeals Body stop working because US new appointments are blocked, which means there are no arbitrators to resolve cases and appeals are left in a legal vacuum.

Countries that have lost trade disputes with Brazil have been “indefinitely exempt from consequences simply because their appeals will not be considered,” the government said.

According to a statement issued by Bolsonaro’s office, the decree will enable Brazil to implement the favorable decisions it has reached in the WTO, but which have not yet been implemented due to issues related to the appellate body.

A source of Ministry of Economy said the measure paves the way for the country to take unilateral retaliation In the e Indonesia in trade disputes relating to sugar and poultry respectively.

Brazil has joined a provisional appeal system with other members, including the European Union Y China, but countries like India, Indonesia Y US they did not join, blocking any agreement.

In December, a WTO panel in favor of Brazil, Australia and Guatemala ruled in their 2019 trade disputes with India over sugar subsidies, and called on New Delhi to comply with global rules, but the Asian country later claimed that I will appeal against the decision.

Brazil also waited for Indonesia to accept recommendations made by a panel following a dispute over the chicken market. Brazil had already requested WTO consultations with Indonesia in 2014 on the measures blocking its access to that market.

The South American country won the dispute, but Indonesia called for “a reasonable period” to adopt its recommendations and in December 2020 appealed to the WTO’s appeal body.

“For now, these are the only two countries against which we have won trade disputes, but ultimately went to the appeals body,” the source said.



Reference-www.eleconomista.com.mx

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