It is difficult to see room for tariff reversal at this time, says former WTO

To WW, Roberto Azevêdo, former director of the WTO (World Trade Organization), assessed that the chances of reversing the tariffs imposed by the United States are very low at the current time.

In an interview, Azevêdo stated that "it is very difficult to see room for changing the course at this moment".

Predicted measure with no surprises
The expert highlighted that the current scenario does not represent anything new.

According to Azevêdo, the so-called Section 301 functioned as a plan B in case the previously imposed tariffs were reversed by the American Supreme Court.

"What's happening isn't exactly a surprise," he said.

He explained that the Supreme Court effectively reversed the tariffs applied under the context of national emergency, refuting this claim, which led to the conclusion of the investigation with a deadline to end in mid-July.

Azevêdo highlighted that both the closing date and the scope of the measure were already expected.

"The breadth of this measure is also not surprising, because it covers exactly the same tariff universe that had been covered by the previous tariff", he explained.

What changed, according to him, was only the value of the tariff, which fell from 40% to 25%.

Additional layers of taxation
In addition to the 25% tariff, Azevêdo warned of the existence of a second Section 301, related to forced labor, which will be applied against 60 countries, with a minimum tariff of 10% or 15%.

The expert emphasized that the measure is not specifically aimed at Brazil.

"Hundreds of countries, in fact, are affected by these tariffs," he declared.

When asked about the possibility of a reversal, Azevêdo was categorical in stating that the chances are remote, regardless of the progress of the negotiations.

He mentioned that there was contact between the US trade representative, Jamieson Greer, and the minister of Mdic (Ministry of Development, Industry, Commerce and Services), Márcio Elias Rosa, but considered that the negotiations have not yet progressed significantly.

"I think it's unlikely, there could be a change here or there, a small thing, but I don't see much room for a dramatic reversal", he concluded.

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Source: CNN