Brazil: car tax – a blow to free trade

Brazil’s tax on imported cars clearly violates WTO rules and is a blow to free trade, the EPP Group’s spokesman on international trade, Daniel Caspary (CDU, Germany) today said. Speaking after a press conference by the European Commission, which today announced it would seek WTO consultations over the discriminatory tax measures, Caspary emphasised:

“In applying one-sided and discriminatory taxes, Brazil undermines its own position as a rising trading nation, in which it increasingly depends on open trade with key partners such as Europe”.

“Discriminatory taxes on imported goods are clearly aimed at keeping foreign competitors at bay. They are a clear violation of the principle behind WTO rules”.

“As a rising trading nation Brazil should aim at creating a level playing field in world trade instead of erecting new barriers. Reverting to protectionist measures carries the danger of becoming a boomerang for Brazil’s export-led economic growth”.

“The discriminatory measures have already resulted in EU car exports to Brazil to fall by more than 11 percent this year. The EU needs to act to protect vital economic interests, and defend its principles of free trade”.