On the 15th local time, the Office of the United States Trade Representative announced that it would initiate a “301 Investigation” against Brazil. The investigation will examine whether the actions, policies, and practices of the Brazilian government are related to digital trade and electronic payment services, as well as issues such as “unfair preferential tariffs,” anti-corruption interventions, intellectual property protection, ethanol market access, and illegal deforestation, assessing the restrictions and impacts on U.S. business.
The so-called “301 Investigation” originates from Article 301 of the U.S. Trade Act of 1974. This provision authorizes the U.S. Trade Representative to initiate an investigation into “unreasonable or unjust trade practices” by other countries and to recommend to the President of the United States the implementation of unilateral sanctions following the conclusion of the investigation. (Liu Xiaoqian)