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Sources say that Brazil will propose a new forum for climate and trade complaints.

Brazil will propose the establishment of a forum where governments can discuss the impact climate policy has on trade. This is an issue that both the U.N. Climate talks and the World Trade Organization have failed to address, according to three officials who are familiar with the plan.

The European Union has been accused by emerging economies such as Brazil, South Africa, and India of restricting the trade with its environmental policies. One example is a December ban on imports that are linked to deforestation.

The EU said that trade discussions should take place at the World Trade Organization.

Brazil, the host of COP30 (the U.N. Climate Summit) in November, wants to break this impasse.

One official said that Andre Correa do Lago, the Brazilian COP30 president who will be making the proposal next week at the WTO annual public forum, is expected to make it during the WTO Forum.

Source: The goal is to get enough support for the forum so that it can be launched at the COP30 summit, in November, with the members already in place.

Officials declined to identify themselves and refused to comment publicly.

Brazil's COP Presidency did not respond immediately to a comment request.

One official expressed concern about the impact on international trade of two EU environmental policies: the EU’s anti-deforestation legislation and its carbon border tax, which will begin imposing pollution fees on imported cement and steel in January.

The official, who is Brazilian, said: "We are worried about the growing trend to limit trade by using climate change as a justification. Today we don't have an appropriate forum to discuss this."

The WTO does not have the capacity to deal with climate change.

Source: The new forum may also provide solutions, such as tools for tracking deforestation which are affordable to producers and acceptable to buyers in Europe.

A spokesperson from the European Commission didn't immediately respond to an inquiry for comment.

The EU has been claiming that its carbon border tax is not a measure of trade, but rather a way to bring foreign producers up to par with European manufacturers who pay for CO2 emissions.

The draft EU negotiating mandate for COP30, which was seen by, stated that the bloc is open to discussing international impacts of its climate policies in "bilaterally, and within the context of WTO, Paris Agreement context, and other appropriate forums."

According to sources, the Brazilian forum's proposal would include at least two groups: one for climate and trade and another on energy transition. The sources added that they wanted to have representatives from both the trade and climate sectors meet every few months.

(source: Reuters)