Happy Friday! Today, with no action from the WTO, Brazil takes trade disputes into its own hands. Bolsonaro called in to testify at the Federal Police. Brazil’s inflation perception.
Decree greenlights trade retaliations
President Jair Bolsonaro issued a decree on Thursday allowing the country to retaliate against members of the World Trade Organization (WTO) when trading partners fail to comply with accords. The move has two specific targets in the short term: India and Indonesia, with whom Brazil has ongoing disputes over barriers on Brazilian sugar and poultry exports, respectively.
Why it matters. The Brazilian government says the move is a reaction to the paralysis of the WTO’s Appellate Body, the organization’s highest venue of dispute resolution.
- The body has been defunct since December 2019, when the Trump administration blocked new appointments to the seven-member panel, believing it had overstepped its mandate. The Biden White House has maintained its grip on nominations, citing “systemic concerns” with its functioning.
What they are saying. “It’s good news for sectors which have dedicated efforts to opening cases within the WTO — which is not a straightforward process,” says Cláudia Marques, a lawyer specializing in trade disputes. “It demands collecting evidence against other nations, studying...