[CTC] USTR Announces Initiation of Section 301 Investigation of Brazil’s Unfair Trading Practices

[Arthur Stamoulis]

*USTR Announces Initiation of Section 301*
*Investigation of Brazil’s Unfair Trading Practices *


July 15, 2025

*WASHINGTON* – Today, the Office of the United States Trade Representative
initiated an investigation of Brazil under Section 301 of the Trade Act of
1974. The investigation will seek to determine whether acts, policies, and
practices of the Government of Brazil related to digital trade and
electronic payment services; unfair, preferential tariffs; anti-corruption
interference; intellectual property protection; ethanol market access; and
illegal deforestation are unreasonable or discriminatory and burden or
restrict U.S. commerce.

“At President Trump’s direction, I am launching a Section 301 investigation
into Brazil’s attacks on American social media companies as well as other
unfair trading practices that harm American companies, workers, farmers,
and technology innovators,” said Ambassador Greer. “USTR has detailed
Brazil’s unfair trade practices that restrict the ability of U.S. exporters
to access its market for decades in the annual *National Trade Estimate
(NTE) Report
<https://ustr.us7.list-manage.com/track/click?u=b58f12c4da47019d98a1e84ef&id=bd8237b8b5&e=b51deaca73>*.
After consulting with other government agencies, cleared advisers, and
Congress, I have determined that Brazil’s tariff and non-tariff barriers
merit a thorough investigation, and potentially, responsive action."

*Background*

Section 301 of the Trade Act of 1974, as amended, (Trade Act) is designed
to address unfair foreign practices affecting U.S. commerce. Section 301
may be used to respond to unjustifiable, unreasonable, or discriminatory
foreign government practices that burden or restrict U.S. commerce. Under
Section 302(b) of the Trade Act, the Trade Representative may self-initiate
an investigation under Section 301.

A Section 301(b) investigation examines whether the acts, policies, or
practices are unreasonable or discriminatory and burden or restrict U.S.
commerce. Considering the specific direction of the President, and the
advice of the inter-agency Section 301 Committee, the United States Trade
Representative has initiated an investigation. The U.S. Trade
Representative must seek consultations with the foreign government whose
acts, policies, or practices are under investigation. USTR has requested
consultations with Brazil in connection with the investigation. USTR will
hold a hearing in connection with this investigation on September 3, 2025.
To be assured of consideration, interested persons should submit written
comments, requests to appear at the hearing, along with a summary of the
testimony, by August 18, 2025. USTR will hold a hearing in connection with
this investigation on September 3, 2025.

As set out in the Federal Register notice, the investigation relates to a
number of trading practices, including:

   - *Digital trade and electronic payment services:* Brazil may undermine
   the competitiveness of U.S. companies engaged in these sectors, for
   example, by retaliating against them for failing to censor political speech
   or restricting their ability to provide services in the country;
   - *Unfair, preferential tariffs:* Brazil accords lower, preferential
   tariff rates to the exports of certain globally competitive trade partners,
   thereby disadvantaging U.S. exports;
   - *Anti-corruption enforcement:* Brazil’s failure to enforce
   anti-corruption and transparency measures raises concerns in relation to
   norms relating to fighting bribery and corruption;
   - *Intellectual property protection:* Brazil apparently denies adequate
   and effective protection and enforcement of intellectual property rights,
   harming American workers whose livelihoods are tied to America’s
   innovation- and creativity-driven sectors;
   - *Ethanol:* Brazil has walked away from its willingness to provide
   virtually duty-free treatment for U.S. ethanol and instead now applies a
   substantially higher tariff on U.S. ethanol exports; and
   - *Illegal deforestation:* Brazil appears to be failing to effectively
   enforce laws and regulations designed to stop illegal deforestation,
   thereby undermining the competitiveness of U.S. producers of timber and
   agricultural products.

A copy of the Federal Register Notice is available *here
<https://ustr.us7.list-manage.com/track/click?u=b58f12c4da47019d98a1e84ef&id=87773a7069&e=b51deaca73>*
.

A docket for comments regarding the investigation will be available *here
<https://ustr.us7.list-manage.com/track/click?u=b58f12c4da47019d98a1e84ef&id=c8c7673939&e=b51deaca73>*
.

A docket for requests to appear at the public hearing to be held in
connection with this investigation will be available *here
<https://ustr.us7.list-manage.com/track/click?u=b58f12c4da47019d98a1e84ef&id=1c0f234366&e=b51deaca73>*
.


###

U.S. Trade Representative Press Office
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