Brazilian Development, Industry, Trade and Services Minister Márcio Elias Rosa has called for urgent reform of the World Trade Organization (WTO) and said tariffs should not be used as coercive or discriminatory tools. He made the remarks on the sidelines of the G20 Trade Ministers’ Meeting in Milwaukee.Key HighlightsBrazil is calling for reform of the WTO.Minister Márcio Elias Rosa backed universal rules for global trade.Brazil opposes using tariffs as coercive or discriminatory tools.Rosa said the WTO should remain the framework for resolving trade disputes.G20 ministers are discussing food security, industrial overcapacity and global trade rules.Brazil and the US have also agreed to create a working group on bilateral trade issues.Brazil Calls for WTO ReformRosa said discussions at the G20 trade meeting reinforced the need to strengthen the WTO and make the organisation more effective.According to the Brazilian minister, there is agreement in principle among participants on the need for WTO reform, although the details and scope of such reforms still need to be discussed. He said the objective should be a multilateral trading system with rules that apply universally rather than further fragmentation of global trade.The WTO provides the main multilateral framework for international trade rules and dispute settlement. Brazil has traditionally supported strengthening the multilateral trading system and WTO-centred trade governance.Brazil Opposes Coercive Use of TariffsRosa also said Brazil does not support the use of tariffs as coercive or discriminatory instruments.His comments came as tariffs and the future of global trade rules remain major issues at the G20 meeting. The US has argued for changes to aspects of the existing trade system, including the Most-Favoured-Nation principle, while other economies have stressed the importance of maintaining multilateral rules.Brazil's position is that trade disputes should be addressed through negotiation and multilateral mechanisms. Rosa said Brazil remains committed to discussions with its trading partners even when disagreements arise.(READ MORE : India-Brazil Trade: Brazil Calls India a Highly Important Trading Partner)G20 Discusses Food Security and Industrial CapacityTrade ministers at the Milwaukee meeting are also discussing food security and global food supplies.Rosa said ministers had moved towards some common ground on food-related issues, although other subjects, including excess industrial capacity, remained under discussion.Industrial overcapacity has become a significant issue in global trade discussions, particularly in sectors such as steel. The US has raised concerns about production supported by what it describes as non-market policies, while countries including China have disputed such characterisations.Brazil and US Set Up Trade Working GroupSeparately, Brazil and the United States have agreed to establish a working group to discuss bilateral trade issues.The decision followed a meeting between Rosa, Brazilian Foreign Minister Mauro Vieira and US Trade Representative Jamieson Greer on the sidelines of the G20 meeting.The US is expected to submit a proposal covering tariff and non-tariff issues in the coming weeks. Both governments have said they want to work towards a mutually acceptable understanding.The discussions come after Washington announced additional tariffs on certain Brazilian imports in July. The two countries are now continuing negotiations on the wider trade relationship.Brazil Pushes Multilateral ApproachBrazil's latest comments underline its preference for negotiations and multilateral institutions in dealing with global trade disputes.The country's position at the G20 comes as major economies debate how existing trade rules should respond to tariffs, industrial policies, supply-chain concerns and changing patterns of international commerce.The Milwaukee meeting is therefore addressing both the future of the WTO and the broader question of how G20 economies can manage differences within the global trading system.
