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Brazil should appeal WTO decision on subsidy policies

The report was already known to the Brazilian government, but was only officially released Wednesday by the World Trade Organization

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Carlos Marcio Bicalho Cozendey, undersecretary of economic and financial affairs at the Brazilian Foreign Ministry

Brazil will appeal a decision from the World Trade Organization ordering the country to withdraw industrial stimulus programs in 90 days for subsidy policies adopted in programs in the automotive, telecommunications and information technology sectors. The report was already known to the Brazilian government, but was only officially released Wednesday by the World Trade Organization.

On Wednesday, the WTO said that seven Brazilian stimulus programs, including four directly related to electronics and IT, have provided nearly US$8bn in incentives since 2010. The subsidies benefitted the electronics, steel and auto sectors, among others.

“Our tendency is to appeal, but I will not go into detail in the content for obvious reasons of strategy,” Carlos Marcio Bicalho Cozendey, undersecretary of economic and financial affairs at the Brazilian Foreign Ministry, told a news conference in which it commented the report of the WTO.

Japan and the European Union opened proceedings against Inovar-Auto, encouraging technological innovation in the motor vehicle production chain, the Support Program for the Technological Development of the Semiconductor and Displays Industry (Padis) and the IT Law.