Tradelines News

Get the latest news and updates on cross-border customs and international trade.

EU Seeks WTO Mediation in Tax Disputes

Posted November 04, 2014

Under International Trade Issues

(Ulrika Lomas – Tax-News)

The European Union (EU) has sought the World Trade Organisation’s (WTO’s) support to resolve trade tax disputes with Brazil and Russia.

The EU has requested that the WTO establish a panel of experts to rule on what it claims are discriminatory Brazilian tax measures. According to the EU, the bloc aims to re-establish a level playing field between Brazilian and European businesses and products.

At present, goods manufactured in the EU and sold in Brazil face higher taxes than Brazilian products because domestic products can benefit from exemptions from or reductions in the internal taxes imposed in various sectors. For example, the EU says that the tax on imported vehicles can exceed that collected on Brazilian-made cars by 30 percent of a car’s value. When combined with the customs duties levied at the border and other charges, the tax can reach 80 percent of the import value. Read more here.