• Categories
  • Archives

Brazil Takes US to WTO over Orange Juice Surcharges

Brazil orange juice The Brazilian government has decided to ask the World Trade Organization (WTO) to analyze the surcharges adopted by the United States in the case of Brazilian orange juice. The matter should be examined by a panel at the organization, a committee of specialists.

The government of Brazil has been enquiring about procedures by the US Department of Trade to define the dumping margins (predatory trade). According to the Ministry of Foreign Relations (Itamaraty), the methods calculated "artificially" inflate these margins and harm Brazilian juice exports.

Through the practice known as zeroing, the US authorities exclude from the dumping transactions at export prices higher than those charged in the domestic market of the exporter.

For example, if a liter of juice sold for US$ 0.50 in Brazil is exported to the United States for US$ 1, the higher priced sale does not enter in the dumping calculation.

According to Brazil, zeroing results in surcharges to Brazilian juice that would not exist if the calculation were different. That is because the United States does not allow more expensive exports to compensate cheaper sales.

On using only lower prices as references, the North American authorities increase the dumping margin and inflate the surcharge calculation applied to concentrated frozen juice.

In a press statement, the Itamaraty stated that zeroing is incompatible with international credit norms. According to the Foreign Ministry, the WTO Dispute Settlement Body has condemned similar procedures adopted by Mexico, the European Union and the United States themselves.

Before calling for the panel, the Itamaraty made two inquiry rounds with the government of the United States, on January 16th and June 18th, 2009. According to the government of Brazil, talks did not generate results.

The Brazilian request should be analyzed by the Dispute Settlement Body of the WTO on August 31st. As the United States presented an objection, the panel should be established automatically in the organization's next meeting, scheduled for September.

Considered predatory practice, dumping consists in the import of products at prices below those charged in the country of origin. Competition with products abroad weakens sectors of the economy. The United States believe that Brazilian orange juice affects the North American product.

ABr

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

189 Brazilians Die in Federal Roads Alone During Carnaval, a Record

Brazil’s prolonged Carnaval weekend, which started on Friday and only ended at noon this ...

With Lebanon and Morocco, 51 Countries Are Now Banning Brazil’s Beef

Ukraine sanitary authorities announced to the Brazilian embassy in Kiev (the country’s capital) that ...

Santo André Gets Crown as Brazil’s Most Flirtatious Town

Santo André, in the Greater São Paulo, was named “Brazil’s flirtiest city” by the ...

Brazilian Franchises Show Their Stuff in LA’s Franchise Expo

Brazilian companies are coming to Los Angeles for the West Coast Franchise Expo-2006, which ...

Erasing the National Memory in Brazil

Due to lack of funds, São Paulo’s TV Cultura has been reusing old videotapes ...

You Can’t Have Peace With One Billion Hungry People, Brazil’s Lula Tells UN

Brazilian President Luiz Inácio Lula da Silva addressed the third meeting of the United ...

Babel Synopsis

Despite the moralistic streak at Globo, the network is not abandoning its lewd characters. ...

Obama Effect Sends Brazilian Stocks on an Over-9% High

The US rescue effort to save Citicorp coupled with Obama's cabinet picks, which had ...

Brazil Hatches Primer on Risks of Being Recruited into Slave Labor

Showing Brazilian workers the risks of being recruited to perform slave labor is the ...

Gaddafi Meets Lula and Opens Lybia to Brazilian Builders and Petrobras

Libyan President Muammar al-Gaddafi, and Brazilian President Luiz Inácio Lula da Silva met before ...