According to the Brazilian Ministry of Agriculture’s notification, the consultation will also put in question, the automatic import licensing system practiced on sugar by China.
The measure results in the application of a final import tariff of 90%, in 2018. Also, according to the Ministry of Agriculture, although the surcharge is not specifically targeted to Brazil, the country was the most affected. The overtaxation on sugar, cause an 90% decrease on Brazilian exports to China.
Brazil was the main sugar supplier of the Chinese market and accounted for about 62% of the total Chinese sugar imports in recent years.
In the notification, the ministry says that the Department of Trade Disputes (Decom), of the Ministry of Economy and Trade, will forward the request to Geneva, when the maximum period of 60 days shall begin for the countries involved to find a solution. After this stage, Brazil may officially request the establishment of a Panel.
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