UNITED STATES – TARIFF MEASURES ON GOODS FROM BRAZIL

COMMUNICATION FROM THE UNITED STATES

The following communication, dated 15 August 2025, was received from the delegation of the United States with the request that it be circulated to the Dispute Settlement Body (DSB).

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On August 6, 2025, the United States received Brazil's letter, dated August 5, 2025, requesting consultations pursuant to Article 4.4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes ("DSU") and Article XXII:1 of the General Agreement on Tariffs and Trade 1994 ("GATT 1994").

Brazil's request concerns, in part, certain actions of the United States relating to U.S. national security that are not susceptible to review or capable of resolution by WTO dispute settlement.

First, Brazil's request includes certain tariff actions of the United States pursuant to the President's Executive Order 14257 of April 2, 2025,^[1] the National Emergencies Act, and the International Emergency Economic Powers Act, relating to issues of national security. The President determined that these actions were necessary to address the national emergency arising from conditions reflected in large and persistent annual U.S. goods trade deficits with trading partners, threatening the national security and economy of the United States. 

Second, Brazil's request includes certain actions of the United States related to the President's Executive Order 14323 of July 30, 2025,[2] relating to issues of national security. The President determined that additional actions were necessary to address the national emergency arising from recent policies, practices, and actions of the Government of Brazil undermining the rule of law and threatening the national security, foreign policy, and economy of the United States.

Issues of national security are political matters not susceptible to review or capable of resolution by WTO dispute settlement. Every Member of the WTO retains the authority to determine for itself those measures that it considers necessary to the protection of its essential security interests, as is reflected in the text of Article XXI of the GATT 1994.

Brazil's request includes the U.S. initiation of an investigation under Section 301 of the Trade Act of 1974 ("Section 301") concerning certain acts, policies, and practices of Brazil related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption enforcement; intellectual property protection; ethanol market access; and illegal deforestation. As Brazil recognizes in its request, the initiation of a Section 301 investigation indicates only that the tariff and non-tariff barriers "merit a thorough investigation" and "potentially, responsive action."[3] Brazil therefore acknowledges that the United States has made no determination that the issues covered by the Section 301 investigation are actionable, nor adopted responsive action, such as tariffs, pursuant to this Section 301 investigation.

Brazil's request with respect to the Section 301 investigation thus does not concern "measures affecting the operation of any covered agreement taken within the territory of" a Member, within the meaning of DSU Article 4.2. This portion of Brazil's letter does not conform to the requirements of DSU Article 4 for a request for consultations.

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The United States considers that certain of the actions cited by Brazil are issues of national security not susceptible to review or capable of resolution by WTO dispute settlement and that certain of the items in Brazil's letter do not constitute a "measure" within the meaning of Article 4 of the DSU. Without prejudice to these views, the United States accepts the request of Brazil to enter into consultations. We stand ready to confer with officials from your mission on a mutually convenient date for consultations.

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