Brazil has initiated a dispute at the World Trade Organization (WTO) regarding tariff measures imposed by the United States. According to Brazil, these measures do not comply with US obligations under the General Agreement on Tariffs and Trade (GATT) 1994 and the Dispute Settlement Understanding (DSU). Brazil argues that the United States is seeking redress through tariffs rather than following the established rules and procedures of the DSU.
"Brazil claims the measures are inconsistent with the United States' obligations under various provisions of the General Agreement on Tariffs and Trade (GATT) 1994 and the Dispute Settlement Understanding (DSU) by seeking redress through tariff measures, rather than with recourse to the rules and procedures of the DSU."
The process began with Brazil filing a request for consultations, which is how disputes are formally started in the WTO. This step allows both parties to discuss their concerns in an attempt to resolve them before moving forward to litigation. If there is no resolution after 60 days, Brazil may ask for adjudication by a panel.
Further details about this case can be found in document WT/DS640/1.
Consultations are intended as an initial step within WTO dispute settlement procedures. They provide a chance for countries involved in a disagreement to reach a mutually acceptable solution without proceeding directly to formal legal proceedings. If these talks do not lead to an agreement within two months, either party can escalate the issue for review by a WTO panel. Information about current disputes handled by WTO panels is available at https://www.wto.org/english/tratop_e/dispu_e/dispu_status_e.htm.