Brazil’s ‘dumping’ investigations attract attention from WTO

November 7, 2012
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Dumping Investigations

In recent years, Brazil has been accused of carrying out increasingly protectionist trade policies. Critics point to Brazil’s reliance on tariffs, quotas and “dumping” investigations as evidence of its reliance on commercial defense measures.

Earlier this week, the World Trade Organization (WTO) drilled down deeper on the issue of the country’s dumping investigations, which, according to WTO, led all G20 countries from May to September 2012, with 27 cases. “Dumping” refers to the practice of selling products or services abroad for a lower cost than they would sell for domestically.

Folha speculates that Brazil is likely to soon become the world’s leader in dumping investigations – a title that has been held by India for the last five years. The volume of these investigations, coupled with Brazil’s recent pledge to temporarily raise import tariffs on 100 different items, has led to commercial uncertainty within the country.

How do Brazil’s trade policies impact local businesses and consumers?

“Brazil, South America’s largest economy, is also pushing the mantra of protecting local industry,” investments news source MarketMinder reported last month. “One wonders, though, how consumers of these goods ranging from paper to steel will feel about higher prices. The policy doesn’t target any specific nation, instead focusing on the products themselves – a blanket application meaning the increased tariffs would likely withstand WTO challenge.”

Given Brazil’s aggressive challenge to commercial outlets engaging in dumping, companies or individuals with commercial interests in Brazil must retain a Brazilian attorney to ensure that they remain apprised of local laws. As a general practice, any foreigner with commercial or personal interests in Brazil should partner with an experienced law office in Brazil, which can become an incomparable resource.

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