The European Union has launched a case against Brazil at the World Trade Organisation over import taxes – covering everything from cars to computers.
Brussels believes the import tariffs are unfair and break global trade rules.
Brazil imposes a 30 percent tax on imported motor vehicles as it seeks to build up a local car industry.
Carmakers are offered tax breaks if they invest there, which has prompted European companies – including BMW, Volkswagen and Jaguar Land Rover – to build plants in Brazil.
A German lawmaker in the European Parliament, Daniel Caspary, says EU car exports to Brazil fell by more than 11 percent this year partly because of the taxes.
Brazil insisted it is “complying with international trade rules”.
The 30 percent import levies which also apply to goods ranging from computers to smartphones and semiconductors, have also angered Japan, the United States and other big trading nations, which could join the dispute.
Brussels stressed the dispute should have no bearing on delicate free-trade talks with Mercosur, which brings together Brazil, Argentina, Uruguay, Paraguay and Venezuela.
Brazil would be a major beneficiary of that far-reaching trade accord, but without a deal, it will lose its favourable access to the European Union next year because it is no longer considered a poor developing nation but an upper-middle income one.
After 10 rounds of talks and several meetings in Geneva, home to the WTO, the two sides have failed to resolve the long-running row over the import taxes.
“The protection of Brazil’s domestic industry comes at the expense of Europe’s imported goods and that is unacceptable,” said an EU official close to the discussions. “We have had many bilateral meetings but Brazil has taken no concrete steps.”
Copyright © 2014 euronewsMore about:
- 1Earth Overshoot Day arrives earlier as we consume too much for planet to replenish
- 2China fines Japanese car parts makers for price-fixing
- 3Argentina’s debt manoeuvres not seen as ending default crisis
- 4BHP Billiton spin-off to simplify world’s biggest mining company
- 5The ‘Green Rush’ takes off as US businesses invest in legal marijuana
- 1Russia to boost food trade with Egypt to compensate for Western ban
- 2Eurozone growth bottoms out in second quarter
- 3Greek farmers suffer in economic war between Russia and EU
- 4Cigarette plain packaging plan has Philip Morris ready to sue UK government – report
- 5Earth Overshoot Day arrives earlier as we consume too much for planet to replenish
- 1#ن: How an Arabic letter was reclaimed to support Iraq’s persecuted Christians | euronews, world news
- 2Ellen MacArthur: making waves on a journey to a circular economy | euronews, the global conversation
- 3Air Algerie loses contact with plane from Ouagadougou to Algiers | euronews, world news
- 4Putin T-Shirts flying off the shelves at Moscow megastore | euronews, world news
- 5Malta opera star Joseph Calleja’s summer concert draws big crowd | euronews, le mag
- 6Moscow claims Ukrainian jet flew close to Malaysian airliner | euronews, world news
- 7Everything you need to know about the Ebola virus | euronews, world news
- 8Massive Swedish forest fire is declared a national emergency | euronews, world news
- 9Hong Kong gets smart on mobility | euronews, urban visions
- 10Portugal hopes to become a pensioner’s paradise with zero tax offer | euronews, reporter
- 11Beyond the subconscious | euronews, futuris
- 12Eastern Ukrainians ‘hate Russian-led guerrillas’ — Arseniy Yatsenyuk | euronews, interview
- 13Romania buys into bitcoin big time | euronews, corporate
- 14Poland wants compensation from the EU for Russian import ban | euronews, world news
- 15A robot that grows | euronews, futuris
- 16EU’s Russia sanctions doing more harm than good says Hungary’s PM Orban | euronews, world news
- 17Iceland warns Europe’s airlines of possible volcanic eruption | euronews, world news
- 18Turkey’s women have the last laugh | euronews, world news
- 19Greek farmers suffer in economic war between Russia and EU | euronews, economy
- 20Man, 27, fails in suicide bid after tigers reject chance to eat him | euronews, world news
Wires > Business
- 23:50 CET Exclusive – Funds could face market curbs after lobbying backfires
- 23:43 CET Exclusive – Funds could face market curbs after lobbying backfires
- 23:11 CET Hewlett-Packard posts surprise revenue gain after PC sales spike
- 22:36 CET Hewlett-Packard posts surprise revenue gain
- 22:14 CET Hewlett-Packard manages surprise quarterly revenue gain
- 21:38 CET Argentina aims to skirt U.S. court, bring debt under national law
- 20:51 CET Argentina bonds, peso reel on country’s debt swap plan
- 20:23 CET Exclusive – Bain Capital to invest in shoemaker TOMS: sources