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Statement by Minister Seko on Circulation of the WTO Appellate Body Report on Certain Measures Concerning Taxation and Charges by Brazil

December 14, 2018

  1. On December 13 (Geneva time), the Appellate Body circulated its report on certain measures concerning taxation and charges by Brazil which have been examined by the WTO at the request of Japan and the EU.
     
  2. Upholding Japan’s claims, the Appellate Body concluded that Brazil’s market-distorting measures such as federal tax reductions for the information and communications industry and the automobile industry that are granted in relation to research and development within Brazil and the use of local content requirements are WTO-inconsistent and recommended that Brazil bring the measures into compliance with the Agreements.
     
  3. Collaborating with the EU, Japan will request Brazil to accept the Appellate Body Report and to rectify the WTO-inconsistent measures faithfully and immediately.
     
  4. This Appellate Body Report has significance in that it clearly reiterates that protectionist market-distorting measures, which are most commonly observed in, but not exclusive to emerging economies, are not permissible under the WTO Agreements. Japan will make further efforts in order to rectify market-distorting measures, including through the Trilateral Meeting of Trade Ministers and other opportunities.

Division in Charge

Office for WTO Compliance and Dispute Settlement, Multilateral Trade System Department, Trade Policy Bureau

Last updated:2018-12-14