Representing the Brazilian Government at the General Council meeting of the World Trade Organization (WTO), Itamaraty’s Secretary of Economic and Financial Affairs, Ambassador Philip Fox-Drummond Gough, criticized the use of “unilateral trade measures as an interference instrument in the internal affairs of other countries”.
During the meeting, in Geneva between July 22 and 23,, at Brazil’s initiative, themes related to the need for respect for the multilateral rules -based commerce system were discussed.
“Unfortunately, at this very moment, we are witnessing an unprecedented attack on the Multilateral Trade System and Credibility of the Arbitrary Tariffs, announced and implemented chaoticly, are interrupting global value chains and risk launching the world economy into a high price spiral and stagnation,” said the Brazilian diplomat.
Recently the US President, Donald Trump, announced the tariff increase to be applied from August 1 on Brazilian products exported to the US.
In the demonstrations, Trump has associated the measure with alleged commercial disadvantages in the relationship between the two countries and also how investigations against former President Jair Bolsonaro have been conducted by the Federal Supreme Court (STF).
Flagrant violation
According to Philip Fox-Drummond Gough, such unilateral measures represent “blatant violation of the fundamental principles that support the WTO, essential for the functioning of international trade.” He warned of the risks of this type of treatment for the world economy, as it undermines legal cancencies and predictability of the multilateral trade system.
“In addition to the widespread violations of the rules of international trade – and even more worrying -, we are witnessing an extremely dangerous change towards the use of tariffs as a tool to try to interfere with the internal affairs of third countries,” argued the Brazilian diplomat.
Structural reform
Faced with this worrying scenario, Brazil has again argued that countries redouble their efforts on a structural reform of the multilateral trade system and the full recovery of the role of the WTO.
“We will continue to prioritize negotiated solutions and trust in good diplomatic and commercial relations. If negotiations failed, we will resort to all legal means available to defend our economy and our people – and this includes the WTO controversy system,” he added.
Following, the Brazilian diplomat said that the inability to find solutions will promote “a negative spiral of measures and counteles that will make us poorer and more distant from the objectives of prosperity and sustainable development.”
Union of Developing Economies
At the end, he said Brazil is ready to start working towards a broad and comprehensive structural reform of the WTO, and defended the union of developing economies to deal with the situation.
“Developing economies, which are the most vulnerable to commercial coercion acts, should come together in defense of the rules -based multilateral trade system. Power -based negotiations are a dangerous shortcut for instability and war.”
