G/L/1300  
G/SG/N/12/BRA/3/Suppl.1  
 
28 February 2019  
(19-1150) Page: 1/2 
Council for Trade in Goods  
Committee on Safeguards  Original: English  
 
EUROPEAN UNION'S RESP ONSE TO BRAZIL'S NOT IFICATION TO THE WTO   
CONCERNING THE PROPO SED SUSPENSION OF CO NCESSIONS AND OTHER  
OBLIGATIONS REFERRED  TO IN PARAGRAPH 2 O F ARTICLE 8   
OF THE AGREEMENT ON SAFEGUARDS  
EUROPEAN UNION 
The following comm unication, dated 27 February 2019, is being circulated at the request of the 
Delegation of the European Union . 
 
_______________  
 
 
The European Commission ('the Commission') refers to the document received on 19 February 2019 
concerning Brazil's notificatio n to the WTO of susp ension of concessions (G/L/1296 -
G/SG/N/12/BRA/3) ('the Notification'), supposedly under Article 8.2 of the Agreement on 
Safeguards, following the European Union's imposition of safeguard measures on certain steel 
products.  
 
In the docum ent, Brazil estimates that, as a result of the safeguard measures, the impact on 
Brazilian steel ex porting producers would be of € 180,000,000 (details of the calculation were 
provided in Annex II to the Notification). Accordingly, Brazil proposes a suspens ion of substantially 
equivalent concessions referred to in Article 8.2 of the Agreement on Safeguards in the form of an 
increase in duties on selected products originating in the European Union (details were provided in 
Annex I to the Notification).  
 
European Union's views  
 
The European Union rejects Brazil's request to suspend concessions on imported products originating 
in the EU as a result of its safeguard measures on steel. The European Union finds this request 
surprising as consultations on the EU measures are still ong oing and the request does not conform 
to the requirements in Article 8 of the Safeguards Agreement either procedurally or substantively.  
 
Procedural aspects  
 
The European Union deplores that it has only officially learnt about a formal compensation reques t 
and the details of the calculation by means of the Notification sent to the WTO , dated 
19 February  2019. This approach is all the more surprising given the fact that the European Union 
and Brazil engaged in (ongoing) bilateral consultations in January 20 19 and committed to continuing 
the dialogue, including discussions regarding potential suspension.  
 
The European Union recalls that in the process of the ongoing consultations, Brazil never engaged 
in proper discussions about a potential suspension and th e detai ls thereof. Only on 
18 February  2019, i.e. a day before the publication of the Notification, did Brazil submit a request 
for compensation, whose content differs from the Notification.   
 
As a result, the European Union considers that both Brazil and  the European Union are still in a 
process of fair consultations in which no finding of disagreement has yet occurred within the 30 -day 
period referred to in Article 8.2.  
 G/L/1300 • G/SG/N/12/BRA/3/Suppl.1  
 
- 2 - 
 
  Moreover, Brazil does not have the right to suspend measures for substantive reason s, as stated 
below.  
 
Substantive aspects  
 
As it stands, Brazil's intention to exercise the suspension of concessions is illegal and prohibited 
under WTO rules.  
 
The European Union recalls that for a WTO Member to legally exercise its rights to suspension under 
Article 8.2 of the Agreement on Safeguards within the first three years of the safeguard measure 
being in effect, it must be the case, as required by Articl e 8.3, that: a) the safeguard measures were 
not taken as a result of an absolute increase in imports, or b) that the safeguard measures do not 
conform to the provisions of the Agreement on Safeguards.  
 
The measure adopted by the European Union was clearly  taken as a result of an absolute increase 
in imports of the product under investigation, and it was adopted in conformity with the provisions 
of the Safeguard Agreement. In this respect, Brazil has not provided any evidence to the contrary, 
nor is the saf eguard in non -conformity with the Safeguards Agreement. Article 23 of the DSU 
expressly prohibits WTO Members from determining by themselves that another Member has acted 
inconsistently with a covered agreement like the Agreement on Safeguards. Brazil's in tention to 
exercise the suspension of concessions before the first three years that the measures are in effect 
therefore would be in clear violation of the WTO Agreement on Safeguards and of the DSU.  
 
Should Brazil proceed with its intention to apply, wit hin 30 days from the date of the Notification, 
the suspension of concessions as notified, and impose additional duties on imported products 
originating in the European Union, the European Union would take the necessary steps in the WTO 
against this illegal  action.  
 
The European Union hopes that Brazil can reconsider its decision and withdraw its Notification from 
the WTO. The European Union remains open to discuss Brazil's concerns in the context of the ongoing 
bilateral consultations.  
 
 
__________