Brazil and the US signed an understanding to reform and modernize the WTO

Brazilian Vice President and Minister of Development, Industry, Commerce, and Services, Geraldo Alckmin, said on Wednesday (8) that Brazil and the United States would work together to promote reform and modernization in some of the mechanisms of the World Trade Organization (WTO).

The deal occurred during an Itamaraty Palace meeting with Ambassador Katherine Tai, US Trade Representative.

The meeting dealt with various bilateral and multilateral business cooperation topics, such as more significant opportunities to promote trade and investment, encouraging the construction of more resilient supply chains, a green economy, and the semiconductor industry, among others.

“In the multilateral sphere, Brazil and the US discussed some of the challenges presented by the current international economic context and committed to working in an engaged way for the reform and modernization of the WTO,” said Alckmin.

According to a note from the Ministry of Foreign Affairs, the WTO reform will be mainly on the dispute settlement mechanism, in which the Appellate Body “is paralyzed, undermining the effectiveness of the multilateral trading system.”

The two countries also committed to reviving and deepening the Agreement on Trade and Economic Cooperation (ATEC), contributing to the resumption of discussion on issues of common interest.

According to the ministry, the United States is Brazil’s second-largest trading partner and the country’s primary source of foreign investment stock.

In 2022, bilateral trade totaled US$88.7 billion, a 26% growth compared to the previous year.

With information from Gazeta do Povo