On September 3, 2025, the United States Trade Representative (USTR) will hold a hearing on its formal investigation into Brazil’s trade policies and practices. This investigation seeks to determine whether Brazilian actions in areas such as digital trade, tariffs, enforcement standards, and market access are discriminatory or impose undue burdens on US commerce.

Schedule for the Hearing

The USTR has invited public comments and hearing requests by August 18, 2025. Additionally, consultations with the Brazilian government will be conducted in accordance with procedures outlined in the Trade Act.

Initiated following directives from the US President and recommendations from the inter-agency Section 301 Committee, this investigation aims to address potential unfair trade practices under Section 302(b) of the Trade Act. The USTR is particularly concerned about various Brazilian policies that could impact US businesses.

Key Areas of Concern

The focus areas include alleged retaliation against US digital platforms, such as social media companies, due to content moderation issues. This has raised concerns about the potential restriction on US firms’ ability to operate in Brazil’s digital and electronic payments sectors.

In terms of tariffs, there are worries that preferential rates granted by Brazil to certain trading partners could disadvantage US exporters. The USTR argues this practice may be unfair and distort competitive conditions.

Other focal points include the enforcement of anti-corruption measures and transparency commitments in Brazil. According to the USTR, weak enforcement efforts in these areas might not meet global standards for anti-bribery norms.

The intellectual property (IP) protection in Brazil is also under scrutiny. The USTR contends that inadequate IP rights could harm sectors tied to innovation and creative industries within the US economy.

A contentious issue involves the ethanol trade, where previously near-duty-free access for US ethanol has reportedly changed, with significantly higher tariffs now applied to American exports.

Lastly, there are concerns about Brazil’s enforcement of laws aimed at curbing illegal deforestation. This weak enforcement could undermine the standing of US producers of timber and agricultural products in global markets.