Brazil’s Ministry of Trade, in a request submitted to WTO members on August 11, announced that it is seeking dispute consultations with the United States. In the request, Brazil argued that the tariff measures in question are inconsistent with various provisions of the General Agreement on Tariffs and Trade (GATT) 1994 and the Dispute Settlement Understanding (DSU).
Brazil claims that the U.S. is attempting to resolve the issue through unilateral tariff measures rather than by following the rules and procedures set out in the DSU.
According to WTO rules, a request for consultations officially initiates a dispute process. This stage offers the parties an opportunity to discuss the matter and seek a satisfactory resolution before moving to litigation. If no agreement is reached within 60 days, the complaining party may request the establishment of a dispute settlement panel.
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