Thursday, November 23, 2017

WTO defends the free trade of the great powers, while Brazil accommodates itself

The agency opened a case against the country for complaints by the European Community and Japan against programs to encourage local industry, among which are some related to ICT. Although the WTO already resolved to request changes and eliminations, the Brazilian government appealed and the process can be extended until October 2018. After that date, Brazil will have 90 days to proceed with the modifications.

The World Trade Organization (WTO) has asked Brazil to withdraw subsidies for the national production of content, to eliminate the Law on Computing and other programs such as InovarAuto -incentive for technological innovation in the automotive manufacturing chain-, or Support for the Technological Development of the Semiconductor and Displays Industry (Padis, for its Portuguese acronym). The argument for this type of process - which was initiated by the European Union and Japan - is that establishing differentiated tax regimes for products produced in Brazil is a way of subsidizing them, affecting those imported and exercising anti-competitive practices.

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