Brazil has strongly criticized the EU’s latest tariff-rate quota (TRQ) system, calling it a unilateral protectionist measure that could further increase tensions in global steel trade.

According to market sources, Brazil’s Ministry of Foreign Affairs and Ministry of Development, Industry, Trade and Services issued a joint statement opposing the EU’s tighter import rules.

The Brazilian government stated that the new measures may limit its access to an important long-term export market while failing to address the root cause of global steel overcapacity. Instead, the government emphasized that the matter should be handled through international and multilateral cooperation, rather than through additional trade barriers.

Brazil had previously requested compensation from the EU under Article XXVIII of the General Agreement on Tariffs and Trade (GATT) for potential trade losses caused by the new system. However, the two sides were ultimately unable to reach an agreement.