The World Trade Organization Dispute Settlement Panel has once again ruled in Brazil’s favor, this time regarding a European Union tariff on chicken cuts The decision is final and is supposed to go into effect in 30 days.
In 2002, the EU decided to alter its classification of chicken cuts with the result that Brazilian chicken imports, which had been paying a 15.4% tariff, had to pay 75%, or 1,024 euros per ton. The result was a nosedive in Brazilian chicken exports to the EU of 80%.
In May 2005, Brazil joined Thailand, another big chicken exporter, in a complaint to the WTO with the argument that the EU tariff infringed WTO norms.
According to Roberto Carvalho de Azevedo, who deals with trade disputes at Itamaraty, the Brazilian Foreign Ministry, the WTO decision will benefit Brazil in other farm product disputes.
“This will help us with cotton and sugar exports, where we are extremely competitive,” he said.