WASHINGTON, D.C. – National Foreign Trade Council (NFTC) Vice President for Global Trade Policy Tiffany Smith today issued the following statement:
“The bilateral trade relationship with Brazil is important for the success of U.S. businesses operating in both countries, but it is also one of the world’s most challenging markets. We appreciate USTR’s recognition of the harm that the country’s practices covered in the Section 301 determination have on U.S. companies and its effort to address them through this investigation.
“On digital trade, Brazil has advanced or considered several discriminatory digital policies beyond those covered by USTR’s determination, including proposals for ex ante digital competition regulations, an artificial intelligence (“AI”) bill, network usage fees, data center regulations, online marketplace liability requirements, and a digital services tax (DST).
“Brazil has also consistently stood in the way of multilateral progress at the World Trade Organization (WTO) on digital issues, including its recent objection at MC14 to a permanent customs duty moratorium.
“Beyond digital policies, the country’s poor track record of protecting intellectual property rights, including patent delays, inadequate data protection, and inappropriate use of compulsory licensing, is reflected in its nearly 20-year status on the Special 301 Watch List.
“We are hopeful that this process and subsequent bilateral conversations will help address many of these issues. The final Section 301 remedy should be designed to ensure Brazil effectively addresses these concerns. If the end result is persistent broad-based tariffs on Brazilian imports while these barriers remain, that’s not a good result of this process.”
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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade, tax, national security, and supply chain policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses, who account for over $6 trillion in revenue and employ nearly 6 million people in the United States.
