Brussels, 20/12/2013 (Agence Europe) - In its WTO consultations with the EU, Brasilia says it has strong arguments to prove that it is respecting world trade rules.
“Brazil is not a protectionist country”, said the head of the confederation of Brazilian industry (CNI), Robson Braga de Andrade, after the opening of a WTO procedure on 19 December against tax measures which the European Commission considers discriminate against imported products.
While he recognised that Brazil encouraged a policy of local content which gave priority to national production, Andrade used the argument of the deficit in the goods trade balance in Brazil in 2013 - evaluated at $120 million - to prove that the industry was not protected. “We don't manage to export Brazilian vehicles to Europe - not because of the price but for specific reasons like the non-tariff barriers imposed by these countries which do not approve our products”, he said. Brazil's Minister for Foreign Affairs Luiz Alberto Figueiredo assured that Brazil had “strong arguments to prove that its programmes are in line with WTO rules”.
The EU is challenging tax measures - like selective tax exemptions or tax reductions on goods produced in Brazil - which, in its view, are incompatible with WTO rules. The Commission is particularly targeting the 30% tax rise Brazil started applying to motor vehicles in September 2011 - a tax from which cars and lorries manufactured in Brazil are exempt. This tax, which was due to expire at the end of 2012, has been prolonged under a different form for another five years. The EU is also targeting similar measures for other goods ranging from computers to smartphones to semi-conductors. (EH/transl.fl)