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:

Ads

You May Also Like

Polls Show Brazil’s Lula Has no Chance of Being Reelected in Sí£o Paulo

If Paulistas (residents from São Paulo, Brazil’s most populous and wealthy state) could decide ...

News Hound

He was bitten by the news bug very early in life. And soon he ...

Brazil: Once Expelled Goldminers Come Back to Yanomami Territory

Illegal goldminers have invaded the land of the Yanomami Indians in the Brazilian Amazônia. ...

Gorgeous, But Who Cares?

CDs or Books by Keyword, Title or Author By Adelaide Bouchardet Davis "Sua disposição ...

Brazilian Market Dips After Record Post-Carnaval High

Latin American stocks were mixed, with Brazilian shares easing lower, as investors locked in ...

Inquiry Shows Brasília’s Corruption Saga Might Be Decades Old

Federal government attorneys in Brazil intend to expand their investigation into a corruption ring ...

Brazilian Shares Rally Echoing Wall Street

Brazilian and Latin American markets followed the U.S. market higher as investors cheered a ...

Looking for Brazil’s Moon Under Water

In 1946 George Orwell wrote an article in which he described his favorite pub ...

For Brazilian President-Elect’s Main Ally Party It’s Payback Time

The PMDB (Party of the Brazilian Democratic Movement), Brazil’s ruling Workers Party main ally ...

Lula Is No Disease, Just the Symptom of a Decaying Brazil

Brazil’s President Lula da Silva is immersed in a seemingly endless corruption scandal; his ...