Japan, Others Rap Brazil's Import Tax on Industrial Goods

Geneva, March 25 (Jiji Press)--Japan and other economies, at a World Trade Organization meeting on Monday, criticized Brazil's import tax on industrial products, which is slapped in addition to tariffs. The tax was originally introduced for imported automobiles in order to promote local auto production and shore up local industries, In 2012, Brazil widened the scope of products subject to the tax to include such items as chemical fibers and fertilizers. At the WTO Council for Trade in Goods meeting, Japan, the United States and the European Union argued that the expansion in the coverage of the tax may be violating WTO trade rules that ban discriminatory treatment of domestic and imported products, and urged the South American country to scrap the measure. But Brazil countered by saying that the move is intended to promote the shift to environmentally friendly products. The WTO council will hold the next meeting on the Brazilian tax on Oct. 18. If the parties involved remain apart, the problem may be handled at the WTO's dispute settlement mechanism. The council also discussed Ukraine's plan to increase tariffs on some 300 products. Japan complained that the measure runs counter to the WTO's efforts toward global trade liberalization. Many other WTO members also criticized the Ukrainian move. If Ukraine pushes ahead with the tariff hike, many other countries may follow suit, sources familiar with the situation warned. END