Joint press release by the Ministry of Foreign Affairs, the Ministry of Economy and the Ministry of Agriculture, Livestock and Supply – Provisional Measure authorizes Brazil to suspend concessions to WTO Members filing an ‘empty appeal’

Brazil published Provisional Measure n. 1098/22, of 1.26.2022, authorizing the Foreign Trade Chamber (CAMEX) to retaliate members of the World Trade Organization (WTO) that file an appeal to the WTO Appellate Body, currently inoperative, with a view to hinder the settlement of a dispute  initiated by Brazil (‘empty appeal’). The measure also authorizes CAMEX to suspend intellectual property rights in those cases, therefore updating Law n. 12270, of June 24, 2010. Retaliatory measures may be applied in the form of suspension of concessions, obligations or rights by Brazil at the WTO, that is, it may include restrictions on trade in goods and services and on intellectual property.

The Appellate Body has been inoperative since December 2019, when it lost its quorum of three members necessary to decide appeals. The authorization to retaliate trading partners that file an ‘empty appeal’ will be in effect only as long as the Appellate Body remains inoperative.

In view of this paralysis, Brazil has sought negotiated solutions to the disputes to which it is a party and has encouraged alternative means of settling disputes, such as arbitration. To this end, it participates in the Interim Appeal Arbitration Arrangement (MPIA) along with 24 WTO Members.

The Brazilian Government reaffirms its commitment to the multilateral trading system and it will continue to work towards the full re-establishment of the WTO dispute settlement system. In addition, it has the firm conviction that negotiated solutions should be sought to all disputes to which it is a party or will be a party.