AT WTO, Japan has expressed concern about Brazil's INOVAR
automotive programme. It said these measures discriminate against foreign
firms, and could be in violation of WTO rules. It was also concerned about
Brazil's use of indirect taxes to assist domestic industries in various sectors,
including communications network equipment.
The EU has
said that it had requested dispute settlement consultations with Brazil
on this matter. Canada, the US, Australia and Korea have also expressed
concerns. Brazil said it was ready to clarify its measures with Japan and
other members. It added that it is engaged in consultations with the EU.
It said its measures are designed to achieve economic development while
promoting technical innovation and protecting the environment.
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