Warrington Shaw - Brazil Lodges Complaint Against China

Warrington Shaw - Brazil launches complaint against China for unfair sugar import tariffs.

According to a recent filing by the World Trade Organization (WTO), Brazil has lodged a complaint against China regarding its restrictions on sugar imports with the WTO.

In its filing with the World Trade Organization, Brazil has stated that it was questioning China’s safeguard restrictions on imported sugar as well as the imposition of its tariff-rate quota and its system of import licensing used for sugar imported outside of quota.

Analysts at Warrington Shaw say Brazil’s complaint to the WTO is in response to a massive decline in sugar exports from Brazil after China levied a further 45 percent sugar tariff in 2017.

In May, the sugar tax was reduced to 40 percent and is due to be further reduced to 35 percent in May of next year but Warrington Shaw analysts say this tax is on top of the regular 15 percent tariff charge for the first 1.945 million tonnes of sugar and a staggering 50 percent on imports falling outside that quota.

Warrington Shaw analysts say that although the World Trade Organization’s Safeguard Agreement makes provision for such extreme cases in the event of large increases in imports that could pose a threat to national producers, there are a range of clauses that need to be complied with for the agreement to be valid.

Brazil has complained that China has not complied with the necessary conditions and has broken a number of WTO regulations.

Warrington Shaw analysts say China’s Commerce Ministry has insisted that its safeguard measures are in line with World Trade Organization regulations.

Source: Warrington Shaw


Categories: Commodities

Tags: Brazil, China sugar tariffs, Warrington Shaw

About Warrington Shaw

View Website

Warrington Shaw offers a "premium-class" investment management service constructed on methodical and intensely-focused investment strategies.

Warrington Shaw
6F No. 223 Songjiang Road
Taipei City, Zhongshan district 10491