Brazil and China advance in understanding around the commercialization of sugar

Brazil and China reached an understanding to avoid holding a panel at the World Trade Organization (WTO) regarding tariffs on sugar sales. The announcement was made this Tuesday (21/05) through a joint note from the Ministry of Agriculture, Livestock and Supply (Mapa) and the Ministry of Foreign Affairs.

Consultations with the WTO had been requested by Brazil after China applied safeguards in the form of surcharges to sugar imports. According to the note, "in the request for consultations, Brazil also addressed the administration of the tariff quota maintained by China for the import of sugar, as well as the operation of an automatic licensing system for imports of the product outside the quota." The agreement followed China's commitment not to renew the safeguard policy from May 2020.

"Under the terms of the understanding reached, the concerns that supported the Brazilian request for consultations must be met, in a mutually satisfactory manner, without the need to establish a panel at the WTO to examine the matter", explains the joint note from the Brazilian ministries. "Brazil views positively the result achieved, which reflects the engagement and constructive willingness of both parties to reach a solution to the dispute", concludes the statement.