Brazil Calls for Urgent WTO Reform, Opposes Use of Tariffs as Coercive Tools

Brazilian Minister of Development, Industry, Trade and Services Márcio Elias Rosa made the remarks on the sidelines of the G20 Trade Ministers' Meeting in Milwaukee on Wednesday.

Rosa said discussions at the meeting had highlighted broad support for strengthening the multilateral trading system and restoring the WTO's effectiveness.

“There is consensus, for instance, that the WTO needs to be immediately reinvigorated, and that it should become effective,” Rosa said through an interpreter.

According to the Brazilian minister, the objective should be to establish trade rules that apply across economies rather than allowing the global trading system to become increasingly fragmented.

Rosa said the need for reform was particularly pressing given the current state of the WTO. Referring to Brazilian President Luiz Inacio Lula da Silva's description of the organisation, he said it was “under critical condition”.

He added that there was agreement in principle on the need to reform the WTO, including from the United States, although the details and scope of such changes still needed to be worked out.

“Just existing for existing. It's not enough,” Rosa said, stressing that the organisation needed to play an effective role in regulating international trade disputes.

“WTO should be enough to regulate trade,” he said.

Rosa also outlined Brazil's position on the use of tariffs, arguing against their deployment for purposes beyond conventional trade policy.

“Never have tariffs been used as a coercive or discriminatory tool,” he said through the interpreter.

The Brazilian minister said his government remained committed to negotiations and multilateralism even when differences arise with other countries.

“The Brazilian government is never away from the negotiation table for one reason. Because Brazil believes in multilateralism,” he said.

“We must work and create agreements. A space for Brazil to be defended. It is at the negotiation table,” he added.

Trade ministers at the G20 meeting also discussed food security and global food supplies. Rosa said discussions on the issue were moving towards common ground, while other matters, including excess industrial capacity, remained under consideration.

Established in 1995, the WTO provides the main multilateral framework for international trade rules and dispute settlement. Its members have been discussing reforms covering areas including dispute settlement, negotiating functions and the organisation's ability to respond to changes in global commerce.

The G20, which includes major developed and emerging economies such as India, Brazil and the United States, has increasingly focused on trade tensions, industrial capacity, food security and the future of the multilateral trading system.