ANNOUNCED AS TEMPORARYNo
On 18 February 2019, Brazil submitted a notification under article 12.5 of the WTO Safeguard Agreement of proposed suspension of concessions and other obligations stipulated in paragraph 2 of Article 8 of said agreement. The proposed suspension follows the imposition of definitive safeguard duties on imports of certain steel products by the European Union, see related state act.
Following the suspension of concessions and other obligations, Brazil notified the WTO within 30 days of the possible increase of additional duties on a number of goods originating from the European Union. The duty may be withdrawn, modified, supplemented or replaced before its the actual imposition. The duty will be in place for a period equal to the duty imposed by the EU.
Brazil additionally noted that: "The total amount of € 180 million for the period from 2019 to 2021 was converted to US dollars, reaching a total of US$ 205.2 millions of exports from Brazil to the European Union that would be affected by the 25% additional duty imposed by the safeguard measures. The total amount of tariffs generated would be equal to US$ 51.3 millions. Therefore, a suspension of trade concessions on the products in Annex I which does not exceed the amount that would result from the application of the EU measures to the imports of the steel originating in Brazil represents an appropriate suspension of the application of substantially equivalent trade concessions in line with the Agreement on Safeguards."
Notably, a number of other counties have also notified the WTO of suspending concessions and other obligations in reaction to the EU's definitive safeguard duty on imports of certain steel products, see related state acts.
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