BRASILIA (dpa-AFX) - The Trump administration has launched an investigation into Brazil's 'unfair' trading practices under Section 301 of the Trade Act of 1974.
The Office of the United States Trade Representative said the investigation will seek to determine whether acts, policies, and practices of the Brazilian Government related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption interference; intellectual property protection; ethanol market access; and illegal deforestation are unreasonable or discriminatory and burden or restrict U.S. commerce.
US Trade Representative Ambassador Jamieson Greer said he is launching the investigation as directed by President Donald Trump, who last week demanded Brazilian authorities to desist from prosecuting former President Jair Bolsonaro.
Ambassador Greer said he will look into Brazil's attacks on American social media companies as well as other unfair trading practices that harm American companies, workers, farmers, and technology innovators. 'USTR has detailed Brazil's unfair trade practices that restrict the ability of U.S. exporters to access its market for decades in the annual National Trade Estimate (NTE) Report. After consulting with other government agencies, cleared advisers, and Congress, I have determined that Brazil's tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action.'
Section 301 of the Trade Act is designed to address unfair foreign practices affecting U.S. commerce. Section 301 may be used to respond to unjustifiable, unreasonable, or discriminatory foreign governments' practices that burden or restrict U.S. commerce.
USTR has pointed out a number of Brazil's trading practices it considers as unfair, which needs to be probed.
The Trade Representative expressed concern that Brazil may undermine the competitiveness of U.S. companies engaged in Digital trade and electronic payment services by retaliating against them for failing to censor political speech or restricting their ability to provide services in the country.
USTR alleges that Brazil accords lower, preferential tariff rates to the exports of certain globally competitive trade partners, thereby disadvantaging U.S. exports.
Brazil has walked away from its willingness to provide virtually duty-free treatment for U.S. ethanol and instead now applies a substantially higher tariff on U.S. ethanol exports, it says.
Brazil's failure to stop illegal deforestation is undermining the competitiveness of U.S. producers of timber and agricultural products, according to USTR.
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