Trade Compliance Blog

The following information is courtesy of Sandler, Travis & Rosenberg, PA.

Importers Have Short Time to Comment
Before Retaliation List Finalized

The Brazilian Chamber of Foreign Trade (CAMEX) published Nov. 9 a list of 222 items (click here for full list [PDF]) of U.S.-origin products that may be subject to retaliatory duties of up to 100% beginning in January 2010. The World Trade Organization ruled in August that Brazil may impose these duties because the U.S. has failed to comply with an earlier WTO ruling against subsidies provided to U.S. cotton growers. Brazil is now claiming the right to retaliate against up to US$900 million in U.S. goods and services.

Brazilian imports of the U.S. goods on the CAMEX list are valued at US$2.7 billion, representing 10.6% of all goods imported from the U.S. in 2008. Industry and commercial associations and other entities now have until Nov. 30 to provide input on the listed products. After considering domestic industry and consumer interests, CAMEX will develop a final list of about US$450 million worth of U.S. goods and present it to the WTO for approval. These products will then be subject to import duties of up to 100%.

CAMEX has indicated that it may also consider retaliation against U.S. intellectual property rights and services totaling US$450 million, a move that is nearly unprecedented. Given the potential implications of this so-called cross-retaliation and the conflicting opinions as to whether or not to take such a step, the Brazilian government has not yet decided whether to do so . However, Carlos Cozenendey, director of the Itamaraty Economic Department, has said that unless the U.S. takes measures regarding its cotton subsidies there will be retaliation.

Brazilian importers of any of the goods on the attached list should act immediately to voice their concerns regarding the potential duty increase on those goods. This list is not yet final and is still open to amendment. Sandler & Travis professionals in our Washington and São Paulo offices can provide valuable assistance to businesses interested in revising this list and submitting comments to that effect to the government and/or their industry associations.

For more information, please contact:

Jennifer Mulveny
Washington, D.C.
Tel: (202) 216-9307
Fax: (202) 842-2247
jmulveny@strtrade.com

Claudio Marques
São Paulo, Brazil
Tel: +55-11-3045-3080
Fax: +55-11-3045-7550
cmarques@strtrade.com

Filed under:
customs compliance, export compliance, trade compliance by Caroline