Bolsonaro issues MP authorizing Brazil to retaliate against countries that have breached WTO agreements

President Jair Bolsonaro (PL) edited a provisional measure (MP) that authorizes the country to suspend concessions and retaliate against WTO (World Trade Organization) members who have breached agreements.

The MP was published in the Official Gazette this Thursday (27).

According to Palácio do Planalto, the change occurs due to a paralysis in the WTO Appellate Body, since December 2020, due to the impossibility of appointing new members.

“Thus, in cases of decision rendered within the scope of the WTO favorable to the Brazilian allegations, the losing party may exempt itself from the consequences of the conviction for an indefinite period. Simply because the appeal will not be analyzed, due to the impossibility of analysis of the request by the Appeal. In other words, the counterparty will present an appeal request ‘in a vacuum'”, says a note from the Planalto.

In this way, the measure published this Thursday (27) provides that, when the decision at the WTO (in the Dispute Settlement Body) is favorable to Brazil, the country may “suspend the application of concessions or other obligations for that member”. .

For this to happen, the text provides for two conditions: the aggrieved country’s appeal cannot be judged by the Appellate Body or its report cannot be approved by the WTO Dispute Settlement Body; and 60 days have elapsed from the notification from Brazil to the other country.

According to the Planalto, the Camex (Chamber of Foreign Trade) will have the power to suspend the concessions and take other retaliation against WTO members that disobey the agreements.