A few days ago, Brazilian newspaper Valor Economico reported that Brazil is preparing to commence proceedings against South Africa at the World Trade Organisation (WTO). This will be the first time that Brazil takes action at the WTO against a member of the BRICS group. Well, the day has come.
The Brazilian Inter-Ministerial Body Responsible for Trade Policy (Camex) gave the green light yesterday to the Ministry of Foreign Relations to lodge formal consultation request against South Africa’s anti-dumping determinations on Brazilian poultry and pork. According to sources, Brazil stated that it tried to resolve the issue informally, first through a potential trade-off between Brazilian poultry and South African wine, but South Africa did not show interest in such a negotiation. After the failed negotiation attempts Brazil pushed for informal consultations in Geneva but South Africa did not respond to these requests. Accordingly, it is claimed, Brazil has no other option but to lodge the disputes at the WTO.
If the matter progresses further, it will be first time that South Africa participates in a WTO dispute.