ITI: USTR Must Avoid Tariff Escalation Following Brazil Section 301 Determination
WASHINGTON – Following the Office of the U.S. Trade Representative’s (USTR) Section 301 determination regarding Brazil’s trade practices and corresponding proposal to apply 25 percent tariffs on all goods from Brazil, global tech trade association ITI issued a statement supporting the U.S. government’s findings while cautioning against the detrimental impacts of broad tariff actions.
“ITI commends USTR’s efforts to analyze and address the persistent barriers to trade in Brazil and strongly supports its determination that U.S. companies face significant trade barriers in Brazil, said ITI Director for the Americas Husani Durans de Jesus. “However, while we welcome the U.S. government’s focus on resolving these issues, we are deeply concerned that applying across-the-board tariffs of 25 percent could severely disrupt the broader U.S.-Brazil commercial relationship and risk undermining ongoing bilateral negotiations. Complex trade policy problems require negotiated trade policy solutions. We strongly encourage policymakers to prioritize ongoing diplomatic engagement over tariff escalation to ensure that our significant current trade with Brazil is not inadvertently threatened.”
To achieve a mutually beneficial resolution, ITI strongly urges the U.S. government to continue to build upon ongoing high-level discussions and leverage existing bilateral mechanisms, such as the U.S.-Brazil Commercial Dialogue, which has a proven track record of successfully addressing non-tariff barriers in the past.