A World Trade Organization panel on Wednesday ruled that Brazil should dismantle a series of seven different incentive programs for industry, giving the country 90 days to comply. Brazilian diplomat Carlos Cozendey, speaking for the Foreign Ministry, said the government was likely to appeal the ruling under WTO rules. The panel made its ruling based on complaints from Japan and the European Union. The complaint targets tax benefits and other incentives granted to Brazilian industries such as motor vehicles, telecommunications and information technology. A special target was Brazil’s InovarAuto, a broad program of incentives for the auto industry. A Brazilian appeal could push the issue into 2018.
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