In the event the EU does not pay up, Brazil is likely to impose additional tariffs on hike up existing ones, including the one on powdered milk.
Following the imposition of import tariffs by the European Union on Brazil, the Brazilian government stated, it has asked the bloc for compensation.
The Brazilian government also said, it has notified the World Trade Organization (WTO) that it may adopt its own countermeasures to “rebalance” trade following the EU action.
Brazil is asking for $203.6 million in compensation, said a government source with knowledge of the matter.
In the event the EU denies the move, Brazil could potentially place or increase tariffs on European exports to the country, including powdered milk, said the source.
The source preferred the cover of anonymity since he/she was not authorized to speak publicly about the matter.
On February 1, 2019, the EU had announced limits on steel imports in response to U.S. President Donald Trump’s metals tariffs. By doing so, Trump has established limits and quotas for major exporting countries which include China, Russia, India and others.
“The Brazilian government remains open to dialogue with the European Union in order to seek the best way to address these issues,” said a statement from the Brazilian government.
“It also reiterates its willingness to continue defending the interests of Brazilian producers and exporters with every effort.”