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TAX NEWS - DECEMber 2009 | |||||||||||||||||||||||||||||||||||||||
United States: Potential retaliatory duties on U.S. exports to BrazilBrazil's Foreign Trade Chamber has released a preliminary list of 222 U.S. products for possible retaliation. The list covers products from 49 Chapters of the Harmonized Tariff and represents 10.6% of 2008 U.S. exports to Brazil, which is valued at USD 2.7 billion. Based on public input and a final decision by Brazil's Foreign Trade Chamber, the list of products will be narrowed to represent a value of USD 450 million. The additional duties on the selected products could be up to 100% and could be imposed as from January 2010. On 19 November 2009 the U.S. diplomat to the WTO told the WTO dispute settlement body that the U.S. intends to comply with the WTO ruling in the Brazil-initiated dispute over U.S. subsidies to its producers, users and/or exporters of upland cotton, and, therefore, Brazil would not need to levy its WTO-authorized sanctions. The Brazilian government has not yet published an official response as to whether it will delay commencement of the retaliatory duties or push forward with a January 2010 start date for the increased duties. | |||||||||||||||||||||||||||||||||||||||
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