The joint statement issued by Brazil's Ministry of Foreign Affairs and the Ministry of Development, Industry, Trade and Services criticized the EU's new measures, arguing that they create additional barriers to exports and negatively affect trading partners that are not responsible for global steel overcapacity.
According to the statement, the European Union has introduced new quantitative restrictions on steel imports and increased tariffs on imports exceeding the allocated quotas.
"New regulation narrows market access for traditional exporters"
The Brazilian government stated that, despite the expiry of the safeguard measures introduced in 2018, the new regulation will affect most of the EU's trading partners. The statement emphasized that the new quota system narrows access to the European market for traditional exporters and creates an additional barrier to international steel trade.
Brazil also said it has been negatively affected by global steel overcapacity and will continue to advocate multilateral solutions through international forums. According to the government, restricting exports from countries that are not responsible for excess capacity will neither resolve market imbalances nor prevent the spread of new trade defense measures worldwide.
Brazil and the EU fail to reach agreement on compensation
The joint statement stated that Brazil and the European Union were unable to reach an agreement on compensation under Article XXVIII of the General Agreement on Tariffs and Trade (GATT).
Brazil argued that the new quota system was introduced unilaterally by the EU and that the compensation proposed under the measure was not considered satisfactory.
Nevertheless, the government said it will continue negotiations with the European Union with the aim of reaching a mutually acceptable solution despite the existing differences.
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