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News Update on Brazil: Trade and Investment
By Renata Amaral
February 21, 2022
January-February 2022
OECD Accession
On January 25th, the OECD Council decided to open accession discussions with six candidates to OECD Membership – Argentina, Brazil, Bulgaria, Croatia, Peru and Romania. According to OECD, the announcement follows careful deliberation by OECD Members on the basis of its evidence-based Framework for Consideration of Prospective Members and the progress made by the six countries since their first respective requests for OECD membership. As individual roadmaps for the detailed assessment process will now be prepared, the Brazilian Government assures that Brazil is fully in line with the fundamental values of the OECD, such as the defense of free market principles, the strengthening of democracy, economic modernization and the protection of the environment and human rights.
The Brazilian accession to OECD will demand a coordinated effort by the Brazilian government, the private sector and civil society. Also, the country’s accession could definitely be a powerful catalyst for ongoing and needed reforms in Brazil.
Provisional Measure 1.098/2022
Provisional Measure 1,098/22, published on January 27, authorizes the Brazilian Ministerial Board of Foreign Trade and Investment (CAMEX) to retaliate against World Trade Organization (WTO) Members who resort to the Organization’s Appellate Body (AB), paralyzed since December 2019, in order to prevent the resolution of a dispute initiated by Brazil. Since the blockage of the AB there has been a situation of limbo and the possibility for Members to appeal into the void. If a panel decision is appealed, it cannot be adopted until the appeal is completed. If appealed, but this phase cannot be completed, the case remains in limbo. The criteria to be fulfilled by Brazil for the imposition of measures provided for by the new Provisional Measure must observe the following hypotheses of non-compliance with multilateral obligations by a WTO member:
I – when Brazil is authorized by the WTO to suspend the application of concessions or other obligations for that member under WTO agreements; or;
II – when the report of the WTO special group confirms, in whole or in part, the allegations presented by Brazil, as a complainant. This second hypothesis must observe: (a) the existence of an appeal by the WTO member, as a respondent, pursuant to the provisions of Article 17 of the Understanding Relating to Rules and Procedures on Dispute Settlement; (b) that the appeal cannot be considered by the AB or the AB’s report cannot be approved by the Dispute Settlement Body (DSB); and (c) the period of 60 days has elapsed after Brazil has notified the respondent WTO Member of the intention to suspend concessions or other obligations.
Brazil already has at least 2 recent cases in which there was a favorable position from the DSB, the case India – sugar (DS 579) and the Indonesia – chicken case (DS 484). Both disputes fulfill, a priori, the requirements of MP 1.098/22 to be applied.
U.S.-Brazil CEO Forum
On February 7, the Department of Commerce Deputy Secretary Don Graves, National Economic Council (NEC) Director Brian Deese, and Under Secretary of Commerce for International Trade Marisa Lago met virtually with the U.S. section of the U.S.-Brazil CEO Forum to discuss opportunities to increase bilateral trade and investment with Brazil across industry sectors. The meeting was held in advance of a special session of the U.S.-Brazil CEO Forum, during which representatives from the Forum delivered a set of joint recommendations for strengthening the U.S.-Brazil commercial relationship to both governments.
The U.S.-Brazil CEO Forum brings together up to 12 U.S. and 12 Brazilian CEOs to develop joint policy recommendations for the U.S. and Brazilian governments on ways to increase bilateral trade and commerce. The forum is co-chaired by the Secretary of Commerce and NEC Director on behalf of the U.S. government; it is co-chaired by Brazilian Minister of Economy and Presidential Chief of Staff on behalf of the Brazilian government. Mauro Gregorio, CEO of Dow Silicones, is the U.S. private sector co-chair and Marco Stefanini, CEO and founder of Stefanini IT Solutions, is the Brazilian private sector co-chair.
The joint recommendations the CEO sections presented seek to advance commercially meaningful reforms that will increase two-way bilateral trade, revitalize both countries’ economies, provide opportunities for the workforces of both nations, and promote common commitments on sustainability and climate change.
Bilateral Trade
According to the latest trade monitor of Amcham Brazil, international trade of goods between Brazil and the US recovers in 2021 and already exceeds pre-pandemic volumes: US$ 70,5 billion.
Upcoming Events:
Brazil-US Workshop on Remanufactured Goods
The Ministry of Economy and the U.S. Department of Commerce, invite citizens, businesses, non-governmental organizations, members of the academic community and other stakeholders to accompany the Workshop on Remanufactured Goods, to be held on March 8 and 9, in digital format.
Detailed information on panelists and thematic sessions will be released in the coming days.
https://www.linkedin.com/posts/secinteconomia_comercioexterior-activity-6900515725879173121-7Hvi
