WT/TPR/M/432/Add.1  
7 March  2023 
(23-1654) Page: 1/364 
Trade Policy Review Body  
23 and 25 November 2022  Original: English/Spanish  
anglais/espagnol  
inglés/español  
 
  
TRADE POLICY REVIEW  
BRAZIL 
  MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Mr Ángel VILLALOBOS RODRíGUEZ (Mexico)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  Brazil .1 
 
 
Organe d'examen des politiques commerciales  
23 et 25 novembre 2022  
EXAMEN DES POLITIQUES COMMERCIALES  
BRÉSIL 
COMPTE RENDU DE LA RÉUNION  
Addendum  
Président : S.E.  M. Ángel VILLALOBOS RODRíGUEZ (Mexique)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  Brésil .1 
 
 
Órgano de Examen de las Políticas Comerciales  
23 y 2 5 de noviembre de 2022  
EXAMEN DE LAS POLÍTICAS COMERCIALES  
BRASIL 
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo.  Sr. Ángel VILLALOBOS RODRíGUEZ (México)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas por  Brasil .1 
 
 
 
 
 
1 In English and Spanish only./En anglais et espagnol seulement./En inglés y español solamente . WT/TPR/M/432/Add.1  
 
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Contents  
OMAN  ................................ ................................ ................................ ...............................  4 
THAILAND  ................................ ................................ ................................ ........................  6 
THAILAND - ADDITIONAL QUESTION  ................................ ................................ .............  13 
GUATEMALA  ................................ ................................ ................................ ...................  14 
ICELAND  ................................ ................................ ................................ ........................  15 
SINGAPORE  ................................ ................................ ................................ ....................  18 
SINGAPORE - ADDITIONAL QUESTIONS  ................................ ................................ ........  20 
AUSTRALIA  ................................ ................................ ................................ ....................  21 
CANADA  ................................ ................................ ................................ .........................  29 
CANADA - FOLLOW -UP QUESTIONS  ................................ ................................ ................  43 
MEXICO  ................................ ................................ ................................ ..........................  44 
MEXICO - FOLLOW -UP QUESTIONS  ................................ ................................ ................  49 
ISRAEL  ................................ ................................ ................................ ...........................  53 
CHINA  ................................ ................................ ................................ ............................  57 
NORWAY  ................................ ................................ ................................ ........................  73 
UNITED  STATES  ................................ ................................ ................................ .............  74 
UNITED STATES - FOLLOW -UP QUESTIONS  ................................ ................................ .... 96 
COSTA RICA  ................................ ................................ ................................ .................  106  
SAUDI ARABIA, KINGDOM OF  ................................ ................................ ......................  109  
PHILIPPINES  ................................ ................................ ................................ ...............  110  
PHILIPPINES - ADDITIONAL QUESTIONS  ................................ ................................ .... 121  
COLOMBIA  ................................ ................................ ................................ ...................  128  
RUSSIAN FEDERATION  ................................ ................................ ................................ . 159  
EUROPEAN UNION  ................................ ................................ ................................ ....... 174  
UKRAINE  ................................ ................................ ................................ ......................  198  
SRI LANKA  ................................ ................................ ................................ ...................  204  
BOLIVIA, PLURINATI ONAL STATE OF  ................................ ................................ ...........  205  
ARGENTINA  ................................ ................................ ................................ ..................  208  
INDIA  ................................ ................................ ................................ ..........................  212  
INDIA - ADDITIONAL QUESTIONS  ................................ ................................ ...............  246  
CHINESE TAIPEI  ................................ ................................ ................................ ..........  257  
NEW ZEALAND  ................................ ................................ ................................ .............  261  
SWITZERLAND  ................................ ................................ ................................ .............  267  
URUGUAY  ................................ ................................ ................................ .....................  277  
UNITED KINGDOM  ................................ ................................ ................................ ........  278  
UNITED KINGD OM - FOLLOW -UP QUESTIONS  ................................ ..............................  307  
MALAYSIA  ................................ ................................ ................................ ....................  310  
KOREA, REPUBLIC OF  ................................ ................................ ................................ ... 324  WT/TPR/M/432/Add.1  
 
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  CHILE  ................................ ................................ ................................ ...........................  326  
CHILE - ADDITIONAL QUESTIONS  ................................ ................................ ................  333  
TÜRKIYE  ................................ ................................ ................................ ......................  338  
DOMINICAN REPUBLIC  ................................ ................................ ................................  339  
DOMINICAN REPUBLIC – ADDITIONAL QUESTIONS  ................................ .....................  347  
VIET NAM  ................................ ................................ ................................ .....................  349  
EL SALVADOR  ................................ ................................ ................................ ...............  351  
ECUADOR  ................................ ................................ ................................ .....................  352  
JAPAN  ................................ ................................ ................................ ..........................  355  
INDONESIA  ................................ ................................ ................................ ..................  356  
 
_______________  
 
 
  WT/TPR/M/432/Add.1  
 
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OMAN  
REPORT BY THE SECRETARIAT (WT/TPR/S/432)  
2.4 Investment Regime  
 
The secretariat report states in Para 2.45 that Brazil still remains open to and encourages FDI, which 
is prevalent across the economy despite foreign ownership limitations in certain sectors.  
 
Question 1:  
Could Brazil elaborate on details about the investment facilitation in food and Agriculture sectors?  
Reply:  
Non-residents can use different instruments to invest in Brazilian agribusiness. Among the 
possibilities, it is worth highlighting:  
Investment by means of financial securities, such as (i)  the Agribusiness Letter of Credit - LCA, 
(ii) the Certificate of Ag ribusiness Receivables - CRA; and (iii) the Certificate of Agribusiness Credit 
Rights - CDCA. These securities are backed by agribusiness receivables, which can be issued by rural 
producers, industries, cooperatives, retailers, trading companies, among oth ers. It is worth pointing 
out that the current stock of LCA, CRA and CDCA is of BRL 326.10 billion, BRL 96.76  billion  and 
BRL 27.63 billion, respectively. This is a very mature market, with great movement of resources. 
According to the legislation in force , these securities can be issued with an exchange variation clause, 
which is very interesting for foreigners to mitigate exchange -related risks;  
Investment in Agribusiness Productive Chains Investment Funds - Fiagro. Fiagro is divided in three 
classes: (i)  real estate, when focused on the acquisition of rural real estate properties or real estate 
credit rights of rural real estate properties; (ii) credit rights, when focused on the acquisition of 
agribusiness credit rights; (iii) participation, when directe d to the purchase of equity in companies 
that are part of the agribusiness complex. The legislation that established Fiagro was enacted a little 
more than a year ago, but the sector is attracting a lot of attention. Fiagro's net equity is composed 
of inves tments of about BRL 7 billion;  
There is still great potential for investment in securities focused on environmental sustainability, on 
social  sustainability , and on governance.  The market is still in its early stages of development, but 
it is expected to g ain prominence in the coming years, especially with the advance/maturing of the 
carbon credits market.  
For more information about agribusiness financial securities and Fiagro:  
- LCA, CDCA and CRA are regulated by Law No.  11,076, of 30 December  2004; and,  
- FIAGRO is regulated by Law No. 14.130, of 29 March  2021.  
 
3.1.6 Anti -dumping, countervailing, and safeguard measures  
 
The secretariat report states in Para 3.61 that at the end of 2021, 113 Brazilian trade remedy 
measures were in force for more than 5 years.  
 
Question 2:  
Could Brazil explain the reasons behind the afore -mentioned trade remedy measures still in force 
for more than 5 years?  
Reply:  
According to paragraph "k" of the Annex I ("Illustrative List of Export Subsidies ") to the ASMC, an 
export c redit practice which is in conformity with the interest rates provisions set out on the 
Arrangement on Officially Supported Export Credits (the OECD Arrangement) shall not be considered 
a prohibited export subsidy.   
According to Resolução CMN n° 4.897/2021  and Portaria ME 8.623/2021, the benchmark interest 
rate for Proex is the Commercial Interest Reference Rate (CIRR), which is the minimum interest rate 
stipulated by the OECD Arrangement.  Therefore, Proex is fully compliant with the  Agreement on 
Subsidies and Countervailing Measures provisions.  
In the case of the export credit insurance programme (SCE), premium rates are set according to the 
methodology established by the OECD Arrangement, which is designed to reflect the credit risk of 
the transaction. Net  operating cash flow of the SCE has been positive in most years since the launch 
of the programme in 1998, meaning that premium revenues usually exceed indemnification 
expenses. As such, the SCE charges premium rates are adequate to cover its long -term ope rating 
costs and losses, and, therefore, the programme is also consistent with Brazil 's 
obligations  under  the ASMC.  WT/TPR/M/432/Add.1  
 
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  Any definitive anti -dumping duty shall be terminated on a date not later than five (5) years from the 
date of its imposition or from the con clusion of the most recent review of the dumping, injury to the 
domestic injury, and causal link between the dumped imports and the alleged injury.  
However, this time period for imposition may be extended by means of a sunset review for an equal 
period if it is determined that the termination of the anti -dumping duty would be highly likely to lead 
to a continuation or recurrence of dumping or the injury arising therefrom.  
 
3.3.3 Sanitary and phytosanitary requirements  
 
The secretariat report states in Para 3.134. that importers of controlled foodstuffs must obtain an 
authorization from ANVISA and a licen ce from a state or municipal sanitary authority; the licen ce 
serves as an authorization from the National Sanitary Surveillance System and is valid throughou t 
Brazil. Some of these products can only be imported after inscription in ANVISA's sanitary register.  
 
Question 3:  
What is the average time required to obtain a reply from the Brazilian authorities with respect to 
importing foodstuff?  
Reply:  
Currently the analysis by Anvisa takes 5 to 15 days on average from the receipt of the request.   
However, It is worth clarifying that an importer can only submit a request to ANVISA to import a 
specific product if (i)  the importer is registered in the SISC OMEX system by "Receita Federal " 
(Brazil 's Federal Revenue Service) and (ii) the importer has obtained from ANVISA a 
general  "Autorização de Funcionamento " (Operating Authorization) to import products subject to 
sanitary surveillance.  
 
3.2.5 Export finance , insurance, and guarantees  
The secretariat report states in Para 3.92, that during 2017 -21, PROEX -Financing was granted 
mainly for exports to Cuba, Mexico, the United States, and China, whereas exports benefitting from 
PROEX -Equalization were mostly shipp ed to the United States, Argentina, Peru, and Chile.  
Question 4:  
Could Brazil explain how these programs are consistent with Brazil 's obligations under Subsidies and 
Countervailing Agreement?  
Reply:  
According to a widely accepted interpretation, paragraph "k" of the Annex I ( "Illustrative List of 
Export Subsidies ") to the ASMC implies that an export credit practice which is in conformity with the 
interest rates provisions set out on the Arrangement on Officially Supported Export Credits (the 
OECD Arrangemen t) shall not be considered a prohibited export subsidy. As previously noted, the 
benchmark interest rate for Proex is the Commercial Interest Reference Rate (CIRR), which is the 
minimum interest rate stipulated by the OECD Arrangement. Therefore, Proex can  be considered 
and export credit program that is in conformity with the OECD Arrangement and, hence, consistent 
with the ASMC.  
In the case of the export credit insurance programme (SCE), premium rates are set according to the 
methodology established by the  OECD Arrangement, which is designed to reflect the credit risk of 
the transaction. As a matter of fact, the net operating cash flow of the SCE has been positive in most 
years since the launch of the programme in 1998, meaning that premium revenues usually  exceed 
indemnification expenses. This suggests that the SCE charges premium rates that are adequate to 
cover its long -term operating costs and losses, and, therefore, that the programme is also consistent 
with Brazil 's obligations under the ASMC.  
  WT/TPR/M/432/Add.1  
 
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THAILA ND 
Secretariat Report (WT/TPR/S/432)  
2 Trade and Investment Regimes  
Para 2.3 Page 35  
Brazil remains open to and encourages inward foreign direct investment (FDI) despite certain foreign 
ownership prohibitions or limitations or prior authorization/approval in some sectors. During the 
review period, it took several steps to improve the business climate, and to facilitate foreign 
investment participation in air transport and financial services, as well as government procurement 
bidding. Brazil continued the re placement of its bilateral investment promotion and protection 
agreements by cooperation and facilitation investment agreements and the conclusion of double 
taxation avoidance treaties/agreements.  
Question:  
Kindly elaborate more on the differences between the bilateral investment promotion and protection 
agreements and the Cooperation and facilitation investment agreements in terms of investment 
conditions and benefits. Why does Brazil need to move away from bilateral investment promotio n 
and protection agreements, and move towards cooperation and facilitation investment agreements?  
 
Reply:  
The Brazilian government has developed its own model of investment agreement, the Cooperation 
and Facilitation Investment Agreement (CFIA). It offers legal protection to foreign investors in Brazil 
and to Brazilian investments abroad, while preserving equal treatment; and regulating the freedom 
of capital movements, asset expropriation and due compensation. Among others, CFIA also includes 
modern  responsible business conduct (RBC) and dispute prevention provisions.  
The Brazilian investment agreement model is an instrument of cooperation and facilitation, 
substantially different from the traditional "bilateral investment treaties " (BITs), as are al so known 
as Investment Promotion and Protection Agreements (APPIs). In the 1990 's, Brazil signed over a 
dozen traditional BIT 's, none of which were ratified by National Congress, in light of investor -state 
dispute settlement (ISDS) obligations.  
CFIA innova tes by establishing investment facilitation as a key element to stimulate FDI flows and 
a more dynamic and long -term interaction between the parties. To this end, it creates an institutional 
governance structure (the Joint Committee) responsible for promot ing cooperation between 
governments and for providing practical and constant support to investors.  
It also establishes a cooperation agenda in areas that improve the investment environment, such as 
business visas, foreign exchange remittances, technical a nd environmental regulation, logistics and 
transport. Furthermore, CFIA institutes the Ombudsperson, that is, the National Focal Point that 
promotes facilitation through the provision of governmental support in solving practical difficulties 
and providing recommendations to investors in a transparent and accessible manner. Enquiries 
about bureaucratic procedures related to the implementation of foreign direct investments are also 
managed by the Ombudsperson, which is currently located at the Ministry of Eco nomy.  
CFIA does not contain clauses present in traditional BITs, such as coverage of portfolio investments 
(it only covers FDI), indirect expropriation, "fair and equitable treatment ", "full protection and 
security " and investor -State dispute settlement (I SDS). The exclusion of these provisions from the 
Brazilian model is in line with the internal discussion on the need to maintain the State's regulatory 
space ( "right to regulate ") and reflects international debates, within the framework of the 
United  Nations Commission for International Trade Law (UNCITRAL), about revisions in the 
ISDS mechanism.  
Brazil has signed CFIA with Angola, Chile, Colombia, United Arab Emirates, Ethiopia, Malawi, 
Morocco, Mexico, Mozambique, Peru, Suriname, Guyana, Ecuador and India  – in addition to the 
Investment Cooperation and Facilitation Protocol (PCFI) with the MERCOSUR partners.  
2 Trade and Investment Regimes  
2.4.4 Investment Promotion and Facilitation  
Para 2.55 Page 58  
During the review period, Brazil continued to promote for eign and local investment through tax 
incentives, concessional finance, cash grants, and industrial site support in several areas including 
automobile manufacturing, transport infrastructure, and the energy sector, where FDI participation 
is allowed throug h public -private partnerships, joint ventures, or concessions (Sections 3 and 4). As 
from May 2020, foreign companies' direct participation in government procurement bidding involving WT/TPR/M/432/Add.1  
 
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  goods and services (Sections 2.4.1 and 3.3.6) was eased as they are no l onger required to have a 
Brazilian partner (business or individual) until the signing of the contract; they may now also enter 
infrastructure bidding processes under a Differentiated Contracting Regime (RDC).105 The Ministry 
of Foreign Affairs – along with  Apex-Brasil (Section 2.4.1), in coordination with the Ministry of 
Economy along with other agencies (e.g. Ministry of Agriculture) – and the National Confederation 
of Industry (CNI) develop tools for attracting FDI in Brazil. Furthermore, the Ministry of Foreign 
Affairs continues to promote investment in Brazil through its Trade Promotion Sections (SECOMs) 
located in 119 embassies and consulates around the world; between 2017 and 2022, the Ministry of 
Foreign Affairs budget for initiatives related to trade  and investment promotion stood at around 
BRL 10 million.106 Since 2016 CONINV (Section 2.4.1) has elaborated proposals aimed at 
encouraging incoming FDI ". 
Question:  
Kindly elaborate more on the implementation of tools for attracting FDI in Brazil which ar e 
coordinated among the Ministry of Foreign Affairs, Ministry of Economy, Apex -Brasil, National 
Confederation of Industry, and relevant agencies.  
 
Reply:  
The National Committee of Investment (CONINV in the Portuguese acronym), currently regulated 
by Decree  nº 9.885 of 2019, is the governmental entity responsible for, among other attributions, 
developing public policy and defining guidelines and actions aimed at attracting FDI and promoting 
Brazilian investment in foreign markets. It is a collegiate body com posed of high -level 
representatives of the ministries of Economy, Foreign Relations, Agriculture, Infrastructure and 
Defence, as well the Presidency.  
In August of 2020, CONINV approved the National Investment Plan (PNI in the Portuguese acronym) 
for the 2020 -2022 biennium. The Plan, which is being implemented by CONINV 's Technical Group, 
has three pillars: Transparency and Governance, Investment Facilitation and Regulatory 
Improvement. Each pillar includes a wide array of initiatives aimed at fulfilli ng their respective 
objectives, namely enhanced synergy and coherence between public policies related to foreign 
investments, development of institutional frameworks that promote a more transparent and 
predictable environment for foreign investors and the review of the regulatory and normative 
framework that impacts foreign investment, making the necessary changes in light of the 
overarching objective to continually guarantee a transparent and predictable business environment.  
 
3. Trade Policies and Practic es by Measure  
3.1 Measures Directly Affecting Imports  
3.1.2 Rules of Origin  
Para 3.21 Page 64  
Since its previous Review, Brazil has expanded its non -preferential rules of origin with an alternative 
criterion for products deemed to have undergone substantia l transformation: non -originating 
materials' share must not exceed 50% of the final product's FOB value. The procedure for verification 
of non -preferential origin has also been updated. As from 2021, verification of non -preferential origin 
is no longer a p rerequisite for the granting of an import licence. The RBF and SECEX may carry out 
the verification at any time, up to five years after importation. False declarations of origin are liable 
to payment of the relevant import duty plus a fine (30% of the cust oms value).  
 
Questions:  
1. Kindly provide explanation on the objectives or rationales as to why Brazil imposes non -
preferential rules of origin on imported products. How does Brazil determine the appropriate criterion 
for non -preferential rules of origin?  
 
Reply:  
Brazil adopts non -preferential rules of origin in order to observe whether the application of a 
particular discipline or measure adopted by the country, referring to imports, is being complied with, 
within the framework of non -preferential  trade policy instruments. Thus, for example, non -
preferential rules of origin are necessary to verify that applied trade defense measures are not being 
evaded.  
The criteria adopted in this matter, by Brazil, are provided for in Art.  31 of Law No. 12,546,  of 14 
December  2011.  
 WT/TPR/M/432/Add.1  
 
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2. Is there a format for the certification/ declaration of non -preferential origin and what 
information would Brazil require in the document?  
 
Reply:  
Brazil does not require any document concerning the proof of origin of non-preferential imports.  
 
3. Kindly provide details about the procedures for verification of non -preferential origin.  
 
Reply:  
Non-preferential origin verification procedures are standardized in SECEX Ordinance No. 87 of 
31 March  2021.  
According to Art. 10 o f the aforementioned Ordinance, the investigation activities aimed at verifying 
and proving the origin of the product shall take place through information provided by interested 
parties, documentary evidence, technical visits to establishments of national producers of goods 
similar to that of the verification of non -preferential origin, on -the-spot verification at the production 
plant and in the foreign producer's office, in the office of the foreign exporter and the Brazilian 
importer, in addition to other  actions that are necessary.  
 
4. Has Brazil notified the non -preferential rules of origin to WTO in accordance with Article 5 of 
the Agreement on Rules of Origin?  
 
Reply:  
Brazil is in notification process.  
The last updated in the non preferential Rules of Origin, in the Brazilian legislation, was the 
implementation of an alternative value rule (50% of maximum non originating content), in addiction 
a previous rule of change tariff heading.  
 
3. Trade Policies and Practices by Measure  
3.1 Measures Directly Aff ecting Imports  
3.1.4 Other charges affecting imports  
Para 3.49 Page 71  
The PIS and COFINS contributions are payable by Brazilian -based: (i)  legal persons on their gross 
revenue or turnover; and (ii) importers (natural or legal persons) of goods and service s. 
Import -related contributions are assessed on the customs value of goods, whereas for imported 
services the base is the amount (before income tax) paid or remitted abroad, augmented by a 
multiplier term comprising the rates of ISS, PIS, and COFINS. Reduc tions to the calculation base are 
prescribed for imports of certain trucks (by 30.2%) and certain vehicles and machinery (by 48.1%). 
In general, a combined rate of 9.25% (1.65% for PIS and 7.6% for COFINS) applies to imported 
services, whereas imports of g oods are subject to a rate of 11.75% (2.1% for PIS and 9.65% for 
COFINS). Imports of certain goods, including pharmaceuticals, cosmetics, machinery and vehicles, 
new rubber tyres and air chambers, and vehicle parts, are subject to higher rates than their 
domestically supplied equivalents. In addition, non -ad valorem  rates are levied on the importation 
of soft drink and beer containers, and fuels. Provisions for zero -rating or exemption are in place for 
a wide range of goods.  
Questions:  
1. Regarding to higher P IS and COFINS rates of imported goods than domestic goods, have they 
been notified to the relevant WTO committees? And please elaborate their legal basis according to 
WTO agreements.  
 
Reply:  
There was no notification, given that the increase in the rates was intended only to compensate for 
the reduction in the Calculation Base on imports carried out by determination of the Federal Supreme 
Court of Brazil.  
 
2. When will Brazil reduce federal and sub -federal levies especially PIS and COFINS rate for 
imported go ods including pharmaceuticals, cosmetics, machinery and vehicles, new rubber tyres 
and air chamber, and vehicle parts?  
 
Reply:  
The rates will be equalized when the tax reform is approved with the creation of a VAT that will 
replace PIS and Cofins. This VAT  will equal the Import Calculation Basis with the Internal Market 
Calculation Basis. Consequently, the rates will be equalized.  WT/TPR/M/432/Add.1  
 
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  4. Trade Policies by Sector  
4.4 Services  
4.4.7 Distribution and e -commerce  
4.4.7.2 E -commerce  
Para 4.294 Page 172  
Cross -border e -commerce trade grew by 15% in 2021 compared with 2020 in Brazil. Brazilian 
shoppers who make purchases on international websites typically purchase more. Important to note 
that many Brazilian websites do not accommodate international credit cards, which creates hurdles 
for foreigners while in Brazil. In 2020, cross -border e -commerce accounted for 21% of total sales, 
around BRL 22.7 billon  
Question:  
Kindly provide a rationale for many Brazilian websites ' not being able to accommodate internati onal 
credit cards.  
 
Reply:  
Regarding the rationale for many Brazilian websites ' not accepting international credit cards, we 
point out that there are no legal or regulatory provision that prevents this practice within the scope 
of the Brazilian Payment Sys tem or the Brazilian Financial System. Furthermore, in general, there 
are no restrictions for this kind of transaction under the rules of the payment cards schemes that 
operate in Brazil.  
 
Government Report (WT/TPR/G/432)  
3. Trade Policy Developments (2017 -21) 
3.5 MERCOSUR  
Para 3.37 Page 21  
The sugar and automotive sectors are the only ones excluded from free trade within MERCOSUR. 
There is no schedule for the inclusion of sugar in the free trade regime, although talks on the issue 
resumed in 2017. Since th e creation of MERCOSUR, there were plans to bring sugar into the Customs 
Union and an Ad Hoc  Group was created to that purpose. Brazil believes it is time to make progress 
towards a gradual liberalization of trade for sugar in MERCOSUR. Trade in the automo tive sector 
between Brazil and MERCOSUR Members is still largely regulated by bilateral agreements within the 
framework of LAIA. Trade flows are duty -free in the sector under specific conditions. In 2020, an 
automotive agreement was established between Bra zil and Paraguay. The common automotive 
policy agreed on by member states in 2000 and 2001 did not enter fully into force as originally 
planned. It is Brazil's intention to advance towards the establishment of a MERCOSUR common 
automotive regime since bila teral sectoral agreements have been concluded with all MERCOSUR 
partners.  
 
Reply:  
The automotive sector in MERCOSUR is mostly regulated by bilateral agreements within the 
framework of LAIA: ACE -2 (Brazil -Uruguay), ACE -13 (Argentina -Uruguay), ACE -14 
(Brazil -Argentina), ACE -57 (Argentina -Uruguay) and ACE -74 (Brazil -Paraguay). Brazil advocates the 
establishment of a MERCOSUR common automotive regime based on these existing agreements as 
this would reduce the number of agreements to be taken into account by the  private sector and thus 
simplify, facilitate and promote trade in the automotive sector within MERCOSUR. A common 
automotive regime shall be a joint construction of MERCOSUR and thus it is not feasible for a single 
member of the bloc to anticipate the out come.  
Question:  
Kindly provide additional information on Brazil 's intention to establish a MERCOSUR common 
automotive regime. Could Brazil share with us approximately when MERCOSUR might start 
implementing this regime? Would the regime be also applied to MERCOSUR FTA dialogue partners 
in an MFN basis (auto -MFN)?  
 
Reply:  
The automotive sector in MERCOSUR is mostly regulated by bilateral agreements within the 
framework of LAIA: ACE -2 (Brazil -Uruguay), ACE -13 (Argentina -Uruguay), ACE -14 
(Brazil -Argentina), A CE-57 (Argentina -Uruguay) and ACE -74 (Brazil -Paraguay). Brazil advocates the 
establishment of a MERCOSUR common automotive regime based on these existing agreements as 
this would reduce the number of agreements to be taken into account by the private secto r and thus 
simplify, facilitate and promote trade in the automotive sector within MERCOSUR. A common WT/TPR/M/432/Add.1  
 
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automotive regime shall be a joint construction of MERCOSUR and thus it is not feasible for a single 
member of the bloc to anticipate the outcome.  
 
4. Tra de Institutional and Regulatory Framework  
4.1 Cross -Cutting Issues  
4.1.3 Trade Facilitation  
Para 4.20 Page 28  
The New Import Process (NIP) has been implemented since 2018 and should be in full effect by the 
end of 2025. The NIP is already capable of coveri ng up to 40% of the total amount imported in 
Brazil. Although the NIP is still under development, it has already had a major impact on reducing 
import time. The average time to import in Brazil dropped from 17 days to 9 days, representing 
annual savings of  USD 10 billion annually for the private sector.  
Question:  
Kindly elaborate more on your import processes, and how they have been improved by "The New 
Import Process (NIP) "? 
 
Reply:  
The changes in processes and in the technology promoted in the current import process/system 
within the scope of the Brazilian Single Window Program have already made it possible to distribute 
tasks among specialized virtual teams, to obtain advance cargo clearance for AEO and to achieve 
paperless trade.  
Furthermore, the New Import Process has the potential to further reduce the goods release time 
after full implementation of the Brazilian Single Window. Among the improvements are:  
 
- Coordinated goods inspection between Customs and OGAs;  
- Improvement of licen ce issue time of OGAs through risk management;  
- Improved trade logistics due to advance clearance of all cargos instead of AEO 's cargos only;  
- Issue of Import licen ces for multiple shipments;  
- Foreign trade taxes and duties with deferred payments.  
 
4. Trad e Institutional and Regulatory Framework  
4.1 Cross -Cutting Issues  
4.1.3 Trade Facilitation  
Para 4.22 Page 28  
At end -February 2022, the AEO programme comprised 490 certified economic operators accounting 
for 25.79% of total trade volume and 26.54% of import  and export declarations registered in 
that month. AEOs benefit ed from significantly lower customs clearance times than non -AEO traders. 
Besides being party to a MERCOSUR agreement for the mutual recognition of AEO programmes, 
Brazil has signed bilateral a greements on the matter with the Plurinational State of Bolivia, China, 
Colombia, Mexico, Peru, Uruguay, Argentina, Chile, Colombia, Costa Rica, Guatemala, Paraguay, 
Peru, Dominican  Republic  and Uruguay. Exploratory talks on the mutual recognition of 
AEO programmes are also underway at MERCOSUR -Pacific Alliance level, and an agreement with the 
United  States  is to be signed in September 2022.  
Question:  
Kindly provide information on criteria used for selecting potential partner for bilateral Mutual 
Recognitio n Agreement of AEO Programmes?  
 
Reply:  
The AEO Brazil Program has signed bilateral Mutual Recognition Agreements (MRA) with Uruguay, 
China, the Plurinational State of Bolivia , Peru, Mexico, Colombia and the United States; and 
plurilateral Mercosur and Regi onal. 
Our main criteria for starting MRA are:  
 
- trade volume (import/export);  
- maturity of the OAS Program (alignment with the SAFE Normative Framework); and  
- availability of human and financial resources.  
 WT/TPR/M/432/Add.1  
 
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  4. Trade Institutional and Regulatory Framework  
4.1 Cross -Cutting Issues  
4.1.3 Trade Facilitation  
Para 4.23 Page 28  
In the context of the AEO Programme, SECEX implemented, in 2021, its Integrated AEO, which 
seeks to broaden the AEO Programme positive effects. Companies previously ce rtified by the Special 
Secretariat of the Federal Revenue of Brazil (RFB) as Authorized Economic Operators can apply to 
join the SECEX Integrated AEO. Benefits offered by the SECEX Integrated AEO allows low risk private 
companies to obtain reduction of doc umentation and information submitted to grant the suspension 
drawback special regime, as well as prioritized analysis of applications for this regime and its 
exemption version. Besides that, certified companies have an exclusive point of contact at SECEX t o 
address operational difficulties related to the suspension and exemption drawback special regimes 
more rapidly.  
Questions:  
1. Kindly elaborate more on risk assessment methods and criteria used for private companies 
that SECEX or RFB will consider as low ris k companies?  
 
Reply:  
The AEO Program in Brazil is structured based on the criteria of the SAFE Normative Framework, of 
the World Customs Organization, and the Trade Facilitation Agreement, of the World Trade 
Organization. The Normative Instruction RFB 1.9 85/2020 indicates the eligibility criteria, 
admissibility requirements and security and customs and tax compliance criteria that companies 
interested in participating in the RFB AEO Program must comply.  
The module of the Integrated OEA Program - SECEX is a partnership between Customs and Secex, 
in which that agency recognizes the operators certified by Customs and offers differentiated benefits 
to these companies. The criteria to join and stay in the SECEX Integrated AEO are regulated by 
Ordinance SECEX No . 107 of 19 August  2021. This Ordinance provides that, to obtain the certification 
and benefits listed in the SECEX Integrated AEO, the private company must be an importer or 
exporter which holds certification in the compliance modality of the AEO Programm e (AEO -C) under 
the terms, limits and conditions set out by the Special Secretariat of the Federal Revenue of Brazil.  
 
2. Kindly clarify whether foreign private companies can, or has joined the SECEX Integrated AEO.  
 
Reply:  
Currently, the certification given within the scope of the AEO Program and other agencies that are 
part of the Program, such as Secex, is granted only to Brazilian companies. In relation of the purpose 
of recognizing foreign companies, we use the Mutual Recognition Agreements, where it is r ecognized 
that the Programs of the participating countries are compatible with each other, so that foreign 
companies also receive benefits when they export to that country.  
 
4. Trade Institutional and Regulatory Framework  
4.2 Sectoral Issues  
4.2.3 Services  
Para 4.100 Page 40  
4.100. In 2021, Brazil's exports of goods and services reached a total of USD 317.2 billion. Exports 
of goods increased 34.8% in comparison with 2020, in parallel with exports of services, which 
increased 16.1%, totalling USD 33.2 billion in 2021. In 2021, imports of goods and services 
increased 30.8% in comparison with 2020, reaching USD 297.9 billion. Imports of goods 
expanded  38.9%, whilst imports of services increased only 1.5%, totalling USD 50.3 billion in 2021.  
4.101. From 20 17 to 2021, exports of services decreased 3.8%, reducing the share of services in 
Brazilian exports from 13.6% to 10.5%. Imports of services contracted 30.9%, reducing 
participation in the composition of Brazilian imports, from 31.2% to 16.9%. The deficit in the 
Services Account has declined since 2018, reaching USD 17.1 billion in 2021. The deficit reduction 
resulted from economic contraction caused by COVID -19 pandemic in 2020 -21 that weighed heavily 
on imports of services. In 2021, the deficit decreased by 18.3%, compared to the previous year.  
4.102. Over the past years, Brazil practically maintained its participation in world trade in services, 
ranking 33rd among world exporters in 2021. In the same year, Brazil ranked 26th among services 
importing count ries. 
Question:  
Kindly provide information on the breakdown of Brazil 's exports and imports of services by major 
trade partners and service sectors.  
 WT/TPR/M/432/Add.1  
 
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Reply:  
Detailed data by partner country is limited by the availability of information and confidentiality. Brazil 
Central Bank disclosure annual data since 2010, of an aggregated set of services, that includes: 
manufacturing services; construction; insurance; financial services; intellectual property services; 
telecommunications, computing and information; other business services (including equipment 
rental); personal cultural and recreational services. Transport, travel and government services are 
not covered. The available data by country covered 62% of the total value exported and 60% of the 
total value imported in 2021.  
Thereby, on the export side, the United States is the main destination for Brazilian exports of 
considered services, with a share of 44.1% of the total exported value of US D 9.1 billion in 2021. 
Followed by UK (5.9% market sha re; US D 1.2 billion negotiated), Netherlands (4.2%; 
USD 863 million) and Germany (3.5%; USD 721 million). Considering the countries that provide 
services to the Brazilian market, the United States is also the country's main partner, with a 43.6% 
market sha re, and US D 12.1 billion traded in 2021. The Netherlands appears in second place on the 
list (7.3%; US D 2 billion), followed by Germany (3.8%; US D 1.1 billion), United Kingdom (3.2%; 
USD 902 million) and France (3%; US D 833 million).  
In service exports, th e sectors that had the largest share in the exported value of services in  2021 
were: "Other Business Services, Including Architecture and Engineering " (46.4% market share), 
"Transport " (19.5%), "Telecommunications, Computing and Information " (9.8%) and 
"Travel" (8.9%). Together, this four sectors accounted for 84.6% of all exported value in 2021. 
Considering now those services that had the largest share of imported value in 2021 were: 
"Transport " (21.7%), "Other Business Services, Including Architecture and  Engineering" (21.6%), 
"Equipment Rental"  (13.9%), "Telecommunications, Computing and Information" (12.9%), "Travel" 
(10.4%) and "Services of Intellectual Property " (10.3%). Together, these six sectors represented 
90.8% of all imported value in 2021.  
  WT/TPR/M/432/Add.1  
 
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  THAILAND  - ADDITIONAL QUESTION  
Document  WT/TPR/S432 Para 4.23  Page 108  
4.23. During the review period, Brazil continued to provide a broad range of assistance programmes 
to its agricultural sector targeting different categories of producers and for reaching different 
objectives, including, inter alia , in the form of administe red interest rate or concessional credit lines, 
price support mechanisms, and insurance premium subsidies (Section 4.1.4).30 No new support 
programme other than the 2021 Feed Brazil (Programa Alimenta Brasil)  was introduced during 
the review period.31  
Ques tion 
Could Brazil provide more information about the 2021 Feed Brazil (Programa Alimenta Brasil), and 
its implementation plan?  
Reply: Programme "Feed Brazil" is a policy aimed at facilitating access to food for people in situation 
of food and nutritional insecurity, providing legal basis for the government's purchases, through the 
acquisition of production from family farmers, extractivists, artisanal fishermen, indigenous peoples 
and other traditional populations. The program has allowed for the acquisiti on of several food items 
produced by family farming, some commercial crops and others with little or no market insertion 
and only regional importance (such as some socio -biodiversity products), in order to enable the 
provision of diversified, healthy and b alanced diets.  
In Brazilian legislation, family farming is an economic activity defined in Law No.  11,326/2004. 
According to the law, a family farmer and a rural family entrepreneur are those (i)  who carry out 
activities in rural areas, (ii) have an area o f up to four fiscal modules, (iii) uses labour from the 
family itself, (iv) has a minimum percentage of family income originating from economic activities 
of its establishment; (v) the management of the establishment is undertaken by the family itself. 
The farmer needs to have obtained a Declaration of Eligibility for the National Program for 
Strengthening Family Agriculture (DAP), an instrument used to identify and qualify the Family  Units 
of Agrarian Production in family farming. In addition to family farmers, artisanal fishermen, 
aquaculturists, mariculturists, foresters, extractivists, quilombolas, indigenous people, agrarian 
reform settlers can obtain the DAP.  
The general rule for purchase is to open a bidding process, to assure public transpa rency and wide 
participation of interested suppliers, in order to obtain market rate prices.   In exceptional cases 
when a bidding process is not possible, Law Nr 14.284/2021 establishes that purchases can only be 
carried out if prices are compatible with p revailing market prices, at a local or regional level.  
  WT/TPR/M/432/Add.1  
 
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GUATEMALA  
WT/TPR/G/432  
3.4.2 Solución de diferencias  
 
Párrafo 3.22. El Brasil ha adoptado recientemente la Ley Nº 14.353/2022, que prevé la suspensión 
de concesiones y otras obligaciones respecto de los Miembros que han apelado los informes de los 
grupos especiales en asuntos en los que el Brasil es reclamante ante un Órgano de Apelación 
inoperante (es decir, informes objeto de apelación "en el vacío"), obstaculizando así la conclusión 
de la diferencia. Según se indica el objetivo de esa Ley es corregir las deficiencias actuales del 
sistema de solución de diferencias de la OMC mediante la creación de incentivos para lograr una 
solución a través de negociaciones entre las partes en la difere ncia y/o del recurso a medios 
alternativos de solución de diferencias.  
Preguntas:  
 ¿Podría Brasil indicar cual ha sido su experiencia en cuanto a la aplicación de esta Ley?  
¿Puede ejemplificar algunos casos que hayan sido resueltos por medio de la misma?  
Respuesta:  
Brasil no ha todavía aplicado la Ley Nº 14.353/2022.  
 
  WT/TPR/M/432/Add.1  
 
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  ICELAND  
Question:  
What is the participation of women in the economy of Brazil?  
Reply:  
Currently, the labor force in Brazil is made up of 107,758,000 individuals, of which women 
are 47,230,000, or 43.8% of the total. Within the labor force, women represent 42.5% of employed 
people and 54.5% of unoccupied people. Women represent 37.8% of private sector workers, 
34.7%  of the self -employed, 59.6% of public sector workers, 29.8% of employ ers, and 62.7% of 
unpaid domestic work.  
 
Question:  
Have specific barriers that limit women 's participation in trade been identified?  
Reply:  
There are several barriers in Brazilian society that hinder the development of businesses run by 
women. Below are the main ones:  
1. Women have less access to credit than men. According to data from the World Bank, 55% of the 
companies led by women pointed to access to financing as the main bottleneck, while this number 
is 43% for companies led by men. This limitation cuts across several sectors, from 
microentrepreneurs to women heads of start -ups who reported having received only 0.04% of the 
resources destined to the sector.  
2. Women entrepreneurs in Brazil perform more household activities, have more family 
responsib ilities, and face a greater number of social obligations (Stewart, 2013; Lenz, Sutter, 
Goldszmidt, Zucco, 2021). This affects the time, energy and attention available for their business.  
3. There is a lack of mentorship directed at women and role models. M entoring and role models are 
key to increasing the perception of representativeness and the sharing of experiences and life paths.  
4. The access to technology and information. Currently Brazil does not have broadband internet 
for 100% of the population and  some regions do not have stable electricity. Besides this, there are 
deficiencies in education and digital literacy, which hinder the use of existing technologies. One of 
the possible impacts of this bottleneck is the diminished presence of women in the t echnology sector, 
representing only 4.7% of start -up managers, and studies show that it is difficult for women to 
develop business in the high -tech sector.  
5. Brazilian cultural norms are also an obstacle. In Brazilian culture, women are responsible for mo st 
of the domestic work and taking care of family members, which diminishes their capacity for 
entrepreneurship in comparison with men.  
6. Finally, there are limitations linked to racial and regional inequalities. Black female entrepreneurs 
tend to pursue entrepreneurship as a business of necessity, and the same is true for most 
entrepreneurs in the North and Northeast (poorer regions). White female entrepreneurs from 
the South and Southeast tend to set up a business driven by opportunities.  
From Oct ober 2019 to March 2023, Brazil has been implementing, in partnership with the 
United  Kingdom, the Brazil Trade Facilitation program, focused on the internationalization of 
Brazilian micro, small and medium -sized enterprises (MSMEs). One of the objectives of the program 
is the mainstreaming of gender and inclusion into trade -related services.  
Under the scope of this program, it was identified that the main barrier to women 's participation in 
trade is the low level of companies owned or led by women in the c ountry. Still, even companies 
owned or led by women face additional challenges, including but not limited to, lack of trade -related 
knowledge and/or skills, lack of company 's capacity to export or import (e.g. lack of skilled 
workforce, lack of market inte lligence, lack of competitive product or price, lack of trade finance), 
risk-averse behavior related to expanding businesses overseas and lack of women -owned/led 
companies to serve as role models to be emulated.  
 
Question:  
Has Brazil implemented any specif ic measures to encourage women 's participation in trade and 
promote women 's entrepreneurship, or are such measures being developed?  
Reply:  
On 8 March  2022, the National Strategy of Female Entrepreneurship - Brazil for Women and the 
Female Entrepreneurship Committee were instituted.  
The strategy was developed in order to promote women's financial independence through 
entrepreneurship and to promote equal opportunities for men and women, with a focus on individual 
vocation.  
The federal decree n° 10.988/2022, issued on 8 March  2022, aims to strengthen the female 
entrepreneurship as an instrument of economic and social development . WT/TPR/M/432/Add.1  
 
- 16 - 
 
 The Strategy seeks to encompass and promote policies to support women's entrepreneurship and 
has the following objectives:  
I - promote favorable environment for the development of female entrepreneurship as a tool for 
economic and individual freedom;  
II - promote access to information regarding public policies, instruments and services that support 
the female entrepreneurship agenda ; 
III - expand the offer of credit by mobilizing public and private resources for investment and 
financing of women's entrepreneurship ; 
IV - promote actions that contribute to the economic autonomy of women in vulnerable situations, 
in alignment with the pro visions of the Brazil Aid Program; and  
V - promote the development and financial sustainability of businesses through:  
(a) entrepreneurial education focusing on the needs of women entrepreneurs;  
(b) dissemination of support networks for female entrepreneur ship; and  
(c) strengthening the ecosystem of innovative entrepreneurship and socio -environmental impact.  
And with the following guidelines:  
I - promotion of competitiveness and economic and social development of the country through the 
strengthening of fem ale entrepreneurship;  
II - predictability, transparency, continuity and coordination in the elaboration and execution of 
public policies to support female entrepreneurship ; 
III - integration with other transversal public policies to foster female entrepren eurship in the 
country ; 
IV - articulation and integration of initiatives among the Executive, Legislative, and Judiciary 
Branches, in all spheres of government, with the active participation of the private sector and civil 
society organizations; and  
V - continuous search for pragmatic short, medium and long term solutions to female 
entrepreneurship by the federal public administration.  
One of the actions so far were the Brazil for Women caravans, held in 14 states, training 
approximately 14,000 women, with a focus on women who still do not generate their own income 
and are beneficiaries of federal income transfer programs.  
The purpose of the Committee, on the other hand, is to bring together various public and private 
actors to discuss, evaluate, and propose  improvements to the National Strategy and its related 
programs.  
The Brazil Trade Facilitation program has already piloted three export promotion services with a 
focus on encouraging and supporting women 's participation in trade:  
a. A business -to-business (B2B) virtual matchmaking service with international buyers;  
b. A business -to-client (B2C) e -commerce export service; and  
c. An export -related capacity building for small producers of non -timber forest products (NFTPs) in 
the threatene d biomes of the Amazon and the Cerrado.  
In each of these piloted export promotion services, the program adopted one or more initiatives to 
specifically encourage and/or support women 's participation, as follows:  
a. In the B2B pilot, the program increased t he female participation in the roundtables, by (i)  selecting 
key sector with a concentration of women -owned and/or -led companies; (ii) promoting 'dialogue 
roundtables ' and networking through social media (WhatsApp) groups to foster knowledge exchange 
between more experienced and less experienced participants; and (iii) providing translating services 
so that language did not become a barrier to female participation.  
b. In the B2C pilot, the program needed to work closely with female networks in Brazil and p romote 
free-of-charge and flexible training hours to the participants.  
c. In the NFTPs pilot, the program worked to raise the cooperatives' awareness of the importance of 
sustainability and inclusion to differentiate and add value to their products in inte rnational markets. 
To allow the inclusion of G&I data in the companies' export strategies, the BTF updated their 
registration system, allowing for the disaggregation of gender and ethnic data of their producers.  
In addition to the piloted export promotion services, the program also developed a series of contents 
to be used by MSMEs and business -supporting organizations to foster gender and inclusion in trade. 
These contents include:  
a. A toolkit to make trade promotion initiatives more inclusive;  
b. An info graphic with 10 valuable tips for women in international negotiations; and  
c. A practical guideline for gender and inclusion in small and medium -sized enterprises, focusing on 
management, communication and exports.  
 WT/TPR/M/432/Add.1  
 
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  Question:  
Are the effects of trade policy on women and men measured and monitored, and if so, how?  
Reply:  
The effects of the piloted exported services under the Brazil Trade Facilitation program were 
measured through surveys with participating companies and producers. The main results were  as 
follows:  
a. In the B2B pilot, the program engaged 577 Brazilian MSMEs in five different and sector -specific 
virtual events. Together, the participants generated approximately USD 13.5 million in new 
businesses in foreign markets. Women -owned and/or -led companies had a 42% participation in all 
the events and a 56% participation in the reported closed deals  
b. In the B2C pilot, the program supported a total of 156 Brazilian MSMEs to move their business 
online and trade internationally, 42% of which were owned and/or led by women. Among them, 
61% declared to have improved their online sales and 75% overcame a critical constraint related to 
online exporting.  
c. In the NFTPs pilot, the program worked with 44 Brazilian cooperatives representing 
approximately  30,000 smallholder farmers. These cooperatives, 81% of which were owned and/or 
led by Afro -Brazilian and other ethnic minorities and 29% by women, received export and 
sustainability training to increase their participation in global markets. Among the part icipants, 
66% felt that aspects related to gender equality and social inclusion helped with the development 
of a more strategic export vision.  
  WT/TPR/M/432/Add.1  
 
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SINGAPORE  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
QUESTION 1:  
2.1 General Framework & 2.2.3.1 Regula tory Framework and Reform  
Pages 36 and 39 (Paras 2.8 and 2.18)  
The WTO Secretariat Report states at para 2.8 that "[u]pon enactment " of international treaties and 
conventions "through a legislative decree and a Presidential Decree, international treaties have the 
same legal status as ordinary laws ". However, it further states at para 2.18 that legislative decrees 
and Presidential Decree are lower in hierarchy than ordinary laws in "Brazil 's range of legal 
instruments ". Given this, wh at does "same legal status " mean? Is it possible for there to be 
inconsistency between an international treaty or convention that is enacted in national law and other 
legal instruments in Brazil, and if so, how would such inconsistency be resolved?  
 
Reply:  
International treaties, in general, have the same hierarchy as national laws. International treaties 
are made effective in domestic law by means of a Presidential Decree, which translates and publicizes 
the treaty, but should not be confounded with the tr eaty itself. It is the treaty which is valid and 
applicable in Brazilian Law and has the same hierarchy as Domestic Laws, with both being higher 
than decrees or other rules established by the Executive power.  
If there is a conflict between an international  treaty and a Brazilian domestic law, the principle of 
lex posterioris will usually apply. Therefore, whichever was enacted last will prevail. There are, 
however, certain types of agreements that have supralegal hierarchy, such as Human Rights 
treaties, an d will prevail even if a newer domestic law is adopted.  
In case of conflict between a treaty and an executive decree, however, the former will prevail 
because of its higher rank.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
QUESTION 2:  
2.2.6 Governm ent procurement  
Page 13 (Para 2.55)  
"An important feature of the Government procurement system in Brazil is access to information. 
During the period under review, the Government continued to advance towards the modernization 
of its procurement systems, hav ing set a Public Procurement National Platform (PNCP), which 
centralizes disclosure of public notices, providing greater transparency in the procurement 
procedures ( https://www.gov.br/pncp/pt -br) ". Could Brazil share if the modernisation of its 
procurement systems and greater transparency in procurement procedures has increased 
participation by foreign businesses in government procurement?  
 
Reply:  
The Public Procure ment National Platform (PNCP) was created as an official website for the 
centralized and mandatory disclosure of the acts required by the procurement law. With its exclusive 
and mandatory use from April 2023, the PNCP shall also offer a unified information  system. Most 
importantly, Normative Instruction No. 10, 2020, by the Secretariat of Management (SEGES) 
amended previous regulations to allow for the registration of foreign companies not established in 
Brazil into the Unified Supplier Registration System (SICAF).  
As of November 2022, there are already 214 foreign companies registered in SICAF, and thus, able 
to participate in public procurement at the federal level in Brazil, even when not established in the 
country.  
QUESTION 3:  
3.5 MERCOSUR  
Page 20 (Para  3.33)  
"The Common Market Group (GMC) and the counsel for the Common Market are the main 
decision -making bodies of MERCOSUR respectively…The GMC oversees the application of the Treaty 
of Asuncion, its protocols and agreements, and can make recommendations to the Council. It is 
entitled to issue mandatory Resolutions that apply to all member states. It is also in charge of 
negotiations with other countries, groups of countries and international organizations. " What matters 
affecting trade and investment poli cy may be the subject of mandatory Resolutions issued by the 
Common Market Group (GMC) and are adopted GMC Resolutions periodically reviewed for conformity 
with international obligations of the MERCOSUR member states?  
 WT/TPR/M/432/Add.1  
 
- 19 - 
 
  Reply:  
According to Article 13 of the Treaty of Asunción, the Common Market Group is the executive organ 
of MERCOSUR. It has, among others, the responsibility of monitoring compliance with the Treaty; of 
taking the necessary steps to enforce decisions adopted by the Council; and of proposi ng specific 
measures for applying the trade liberalization programme, coordinating macroeconomic policies and 
negotiating agreements with third parties. Therefore, there are no restrictions as for the matters 
affecting trade and investment policy that may be the subject of its mandatory Resolutions. 
Resolutions adopted by the GMC are periodically reviewed to ensure conformity with international 
obligations of the MERCOSUR Member States.  
  WT/TPR/M/432/Add.1  
 
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SINGAPORE - ADDITIONAL QUESTIONS  
PART  I: QUESTIONS  REGARDING  THE SECRETARIAT  REPORT  
QUESTION:  
2.4.2  Restricted  activities  
Page  55 (Para  2.49)  
Question  1: The WTO Secretariat  Report  notes  that "…the area of agricultural  land bought  or leased  
by foreigners  cannot  account  for more than 25% of the overall  land area in a given municipal  district;  
in addition,  no more than 10% of agricultural  land in any given  municipal  district  may be owned  or 
leased  by foreign  nationals  from the same  country. " Could  Brazil  provide  the latest  breakdown  of 
land ownership  within  each municipal  district  by foreign  nationals,  and advise  if such data is readily  
available  for foreign  investors?  Could  Brazil  also clarify  how the allotment  of agricultural  land 
amongst  foreign  nationals  within  the limits  are determined?  For example,  would  it be on a first-come  
first-served  basis,  or based  on priority  sectors,  or are the allotments  time-limited?  
REPLY :  
There  is no consolidated  information  available  for land ownership  by foreigners  in Brazilian  municipal  
entities.  The transactions  of land purchase  are made on a "first-come  first-served " basis.   
2.4.5  Dispute  resolution  
Page  59 (Para  2.56)  
Question  2: The WTO Secretariat  Report  notes  that "Investors  may seek contracts  enforcement  
through  the judicial  system  or via alternative  dispute  resolution,  although  processes  can be lengthy;  
a foreign  arbitration  award  is recognized  or executed  in Brazil  in conformity  with the international  
agreements  ratified  by the country  and, in their absence,  with domestic  law. The Brazilian  Superior  
Court  of Justice  (STJ)  must recognize  foreign  judgments  or arbitral  decisions  for such verdicts  to be 
considered  valid in Brazil ". Could  Brazil  indicate  if there is a list of recognised  jurisdictions  or 
established  criteria  for foreign  judgements  or arbitral  decisions  to be recognised  and considered  valid 
in Brazil?  If so, is such information  readily  available  to foreign  investors?  
REPLY :  
There  is no consolidated  information  available  on the topics  mentioned  in the question.  
2.4.6  Bilateral  treaties  and international  cooperation  
Page  59 (Para  2.57)  
Question  3: The WTO Secretariat  Report  notes  that "During  the review  period,  Brazil  continued  the 
replacement  of its 14 bilateral  investment,  promotion,  and protection  agreements  signed  between  
1994 and 1999 by negotiating  and signing  coopera tion and facilitation  investment  agreements  
(CFIAs)  built upon CAMEX,  UNCTAD,  and OECD  guidelines  and based  on risk mitigation,  institutional  
governance,  and thematic  agendas ". Could  Brazil  elaborate  on the key changes,  besides  the 
exclusion  of investor -state dispute  settlement  mechanism,  between  a bilateral  investment,  
promotion  and protection  agreement,  and a cooperation  and facilitation  investment  agreement?  
REPLY :  
The Brazilian Cooperation and Facilitation Investment Agreement (CFIA) model c ontains relevant 
tools to protect investments found in traditional BITs - such as National and Most Favored Nation 
Treatment, transparency, as well as specific conditions for direct expropriation, compensation and 
transfer of currency. It favors mechanisms  to prevent disputes based on dialogue and bilateral 
consultation, based on the roles of an Ombudsperson and a Joint Committee, prior to State -State 
arbitration procedure. It also establishes thematic agendas for future cooperation and facilitation 
where P arties to the treaty can address bottlenecks specific to their investment relations.  
  WT/TPR/M/432/Add.1  
 
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  AUSTRALIA  
Trade Policy Review – Report by Brazil (WT/TPR/G/432)  
Report by Brazil (WT/TPR/G/432)  
4 Trade Institutional and Regulatory Framework  
4.2 Sectoral Issues  
4.2.2 Agriculture  
Page 39, Paragraph 4.92  
The Report states that in 2021 -22 grain production will be 29 % higher than in 2016 -17, in spite of 
adverse weather conditions in some important agricultural states.  
Question 1  
What factors have contributed to the e xpected increase in grain production?  
Reply:  
For the upcoming harvest, the first estimate indicates a production volume of 312.4 million tons, 
15.3% or 41.5 million tons more than in 2021/22. Production growth is owed to progress both in 
area and in produ ctivity, as well as expectation of favourable weather conditions.  
In what regards the planted area, it is expected that 76.6 million hectares will be cultivated, an 
increase of 2.9% over the previous harvest. It is worth noticing that up to three agricult ural crops 
are grown throughout the year in Brazil. Sowing of first -crop occurs between the end of August and 
December. Sowing of second - and third -crops and of winter crops, which total about 
24 million  hectares, start from January on, after the harvest o f the first -crop, in the same area. 
Thus, for all crops, approximately 52.6 million hectares are used.  
The estimated increase in productivity in Brazil is due to the intensive use of technology, such as 
the use of more adapted and productive seeds; soil ma nagement, use and conservation; irrigation, 
and integrated pest management.  
In summary, the main factors responsible for the increase in production in Brazil are:  
(i) conversion of areas used for extensive cattle raising, which has been replacing the use o f natural 
pastures with cultivated grasses and feed, into arable areas;  
(ii) technological knowledge, such as genetic material adapted to climatic conditions, mechanization 
and computer technology used by producers;  
(iii) modernization of the transport inf rastructure, with expansion of the railroad and port networks.  
From a market point of view, the profitability of crops such as soybeans, corn, and cotton, which 
have good liquidity and low world stocks, guides the increase in production. Furthermore, the o utlook 
is for continued strong demand for these products in the international market, considering that oil 
prices are still at high levels, which favours the demand for biofuels, which in turn contributes to 
maintaining good prices for soybeans and corn.  
The perspective of growth in the area of soybeans also creates a good perspective of growth in the 
area of second -crop corn in Brazil. The conflict between Russia n Federation  and Ukraine is another 
factor that favours both the corn producer and the animal protein industry, the main consumer of 
corn and soy  meal.  
Total factor productivity (PTF), which aims to indicate the efficiency with which the economy 
combines all of its in puts to generate output, in the Brazilian agricultural sector grew, in average, 
3.11% annually over the period 2000 -2021. Technology improvements explained most of the growth 
in the gross value of production (~60%).  
PTF is the ratio between the total produ ct index (IP) and the input index (II). The IP is obtained from 
the quantity produced of each product in a given year and the participation of each product in the 
total value of agricultural production in a given year. II is obtained from the quantity of e ach input 
and the share of each input in the total cost of production.  
Over the period 2017 to 2021, TFP, IP and II are estimated as follows:  
 WT/TPR/M/432/Add.1  
 
- 22 - 
 
 
The IP presented, between 2017 and 2021, strong sensitivity to rainfall, drought and frost events, 
while the II  to capital allocation (machinery, equipment, fertilizers and pesticides).  
Those numbers, which do not refer only to grains, but to all products from temporary crops  (30), 
permanent crops (34), animal production (8), and animal production (carcasses) (3), aim to 
represent the performance of the Brazilian agriculture and cattle raising sector in a context of climate 
and supply shocks, especially of capital goods and services.  
For further details see:  
GASQUES, J.G.; BASTOS, E.T.; BACCHI, M.R.P.; VIEIRA FILHO,  J.E.R. Produtividade total dos fatores 
na agricultura - Brasil e países selecionados. Texto para Discussão nº 2.764. Brasília: Ipea, 2022.  
2. VIEIRA FILHO, J. E. R.; GASQUES, J.G.; RONSOM, S. Inovação e expansão agropecuária 
brasileira. In: VIEIRA FILHO, J.E.R.; GASQUES, J.G. (Org.). Uma jornada pelos contraste do Brasil: 
cem anos de Censo Agropecuário. Brasília: Ipea, 2020. p. 121 -134. 
 
4 Trade Institutional and Regulatory Framework  
4.2 Sectoral Issues  
4.2.4 Renewable energy  
Page 41, 4.105 to 4.108  
The Report notes that Brazil has one of world's most renewable energy matrixes and is investing in 
research and in new technologies to improve the  generation, transmission and distribution of energy.  
The Report also refers (paragraph 2.66) to Brazil's transition to a low carbon economy.  
 
Question 2  
Has Brazil collected data or reported on the extent to which its transition and commitment to 
renewabl e energy and a low carbon economy has created new employment opportunities and 
jobs (including for workers displaced as a result of the transition). If such data is collected, what 
percentage of employment in Brazil's energy sector is considered to be a gr een workforce?  
Reply:  
To date, there is no such data collected in Brazil.  
 
WT/TPR/M/432/Add.1  
 
- 23 - 
 
  Trade Policy Review – Report by the WTO Secretariat (WT/TPR/S/432)  
Report by the Secretariat WT/TPR/S/432  
3 Trade Policies and Practices by Measure  
3.3.6 Government Procurement  
Page  96, 3.159  
The report lists procurement methods used under Article 28 of the 2021 Procurement Law and 
outlines a new procurement method, called Competitive Dialogue that has not previously existed in 
the Brazilian system.  
Competitive dialogue allows procuring entities to engage in dialogue with selected suppliers with the 
aim of developing technical solutions capable of meeting the needs of the procuring entities, with 
selected suppliers expected to submit their final propo sals at the end of the dialogue phase.  
 
Question 3  
How do entities establish a list of selected suppliers under the procurement method of 
Competitive  Dialogue?  
Reply:  
According to art. 32 of the Procurement Law, in the pre -selection phase of the competitive dialogue 
method, the following provisions shall be observed:  
I – the Administration shall submit, upon publication of the tender documentation on an official 
website, its already defined needs and requirements, and shall establish a minimum dea dline of 
twenty -five (25) business days for expression of interest in participating in the procurement process;  
II – the criteria used for the pre -selection of the suppliers shall be provided for in the tender 
documentation, and all interested parties that  meet the objective requirements established shall be 
accepted;  
III – the discriminatory publication of information that may imply an advantage to a certain supplier 
shall be prohibited;  
IV – the Administration may not disclose to other suppliers the propo sed solutions or confidential 
information informed by a supplier without its consent;  
V – the dialogue stage may be maintained until the Administration, in a well -grounded decision, 
identifies the solution or the solutions that meet its needs;  
VI – the mee tings with the pre -selected suppliers shall be registered in minutes and recorded using 
audio and video technological resources;  
VII – the tender documentation may provide for using consecutive stages, in which case each stage 
may restrict the solutions or  the proposals to be discussed.  
 
Report by the Secretariat WT/TPR/S/432  
3 Trade Policies and Practices by Measure  
3.3.6 Government Procurement  
Page 96, 3.160  
The report states there are a list of cases in which procuring entities may or must resort to lim ited 
tendering, including for procurement aimed at fostering scientific and technological development, 
procurement of strategic products for the Unified Health System (SUS), procurement to respond to 
emergencies, and the procurement of goods and services b etween public entities.  
Question 4  
What proportion of procurement (either in terms of monetary value or total number of procurements) 
is undertaken through limited tendering?  
Reply:  
Brazil is not currently in a position to provide the proportion of procurement undertaken through 
limited tendering (neither in terms of monetary value nor in total number of procurements) across 
all levels of government. The current systems do not provide  the cross -cutting tools to gather these 
values. This is further complicated by the complex federal structure of the country, in which 
subnational entities have their own systems of statistics. To address this situation, a National Public 
Procurement Porta l (PNCP) was created as an official website for the centralized and mandatory 
disclosure of the acts required by the procurement law. With its introduction and progressive use 
from April 2023, the PNCP shall also offer, in the medium -term, a unified inform ation registration 
system from which to gather relevant statistics from central and subcentral  entities. The PNCP can 
be accessed at https://www.gov.br/pncp/ . WT/TPR/M/432/Add.1  
 
- 24 - 
 
Report by the Secretariat WT/TPR/S/432  
3 Trade Polici es and Practices by Measure  
3.3.6 Government Procurement  
Page 97, 3.163  
The report states that the Normative Instruction allows foreign suppliers from any country to register 
in the Unified Suppliers Registration System (SICAF) and participate in government procurement 
opportunities. There is, however, a need to have legal rep resentative with powers to receive citation 
in Brazil at the beginning of the procurement process (upon registration).  
 
Question 5  
Can Brazil please clarify how this requirement relates to the requirement to have a Brazilian partner 
when the contract is s igned (paragraph 2.55)?  
Reply:  
Before October 2020, foreign companies could participate in government procurement bidding for 
goods and services by establishing themselves as a juridical person in Brazil or by setting up a 
branch or office in the country,  authorized by the government. There had never been a need for a 
Brazilian partner (business or individual). Normative Instruction No. 10, 2020, by the Secretariat of 
Management (SEGES) amended previous regulations to allow for the registration of foreign 
companies not established in Brazil into the Unified Supplier Registration System (SICAF). Therefore, 
after October 2020, there is no need to set up a branch or office or a juridical person in the country.  
On the other hand, there is a requirement to have a legal representative in Brazil with express 
powers to receive citation and respond administratively or judicially for the register in SICAF. This 
was done because foreign companies, just as national companies, may also incur in responsibility, 
irrespecti ve of whether there is a contract already signed, in relation to acts performed during the 
bidding procedure. As of November 2022, there are 214 foreign companies registered in SICAF, and 
thus, able to participate in public procurement in Brazil, even when  not established in the country.  
Report by the Secretariat WT/TPR/S/432  
3 Trade Policies and Practices by Measure  
3.3.6 Government Procurement  
Page 97 -98, 3.167  
The report states that Article 26 of the 2021 Procurement Law provides that a margin of prefere nce 
of up to 10% may be applied to domestically manufactured goods and services. The preference may 
be extended to goods and services of MERCOSUR countries, under certain conditions. The margin of 
preference may be up to 20% for domestic goods resulting fr om technological innovation and 
development carried out in Brazil. The authorities indicate that this provision is not yet enforced due 
to the lack of implementing regulations.  
 
Question 6  
What are the certain conditions where a preference can be extended to MERCOSUR countries?  
Reply:  
The possibility for the executive branch to set out price preferences is still available pursuant 
Article  26 of Law 14.113/21. The permission of such policy in the new Law was a decision of the 
Brazilian Congress. However, for the margin of preference referred to in art. 26, I, to be applicable, 
the provision needs to be further regulated by means of a justified decision of the executive branch. 
A margin of preference defined in a well -grounded decision of the Feder al Government may be 
extended to manufactured goods and services originated from the Member States of the Southern 
Common Market (Mercosur), as long as there is reciprocity provided for in an international 
agreement approved by the National Congress and ra tified by the President.  
Question 6  
Is there a timeframe of when this provision could be enforced?  
Reply:  
There are no plans in the medium term to regulate this provision by the Federal Government. In this 
sense, there are no margins of preference in force  for nationally manufactured goods and services 
that meet Brazilian technical standards and, thus, no need for the extension of a preference to 
certain countries.  
Question 6  
Would Brazil extend such a preference to parties to the WTO  Agreement  on Governme nt 
Procurement (GPA), upon acceding to that Agreement? If so, under which conditions?  WT/TPR/M/432/Add.1  
 
- 25 - 
 
  Reply:  
If Brazil accedes to the GPA, the Agreement will enter into Brazil 's legal framework as a special 
norm, prevailing over the general laws in force that have the sam e coverage. Therefore, the GPA  will 
prevail  over any conflicting  rules even if there are no explicit amendments. The non -application of 
the rules of preference or conditions for their application depend on the terms of the agreement. 
Art. 26, I of Law 14.1 33/21 will not be applied in a manner that is contrary to GPA provisions and 
commitments for covered procurement.  
 
Report by the Secretariat (WT/TPR/S/432)  
4 Trade Policies by Sector  
Page 103, paragraph 4.5 (see also paragraph 23 on page 13)  
The report states that the services sector continues to be the main contributor to Brazil's gross 
value -added and job creation; however, despite improvements in certain areas, services continue 
to suffer from structural weaknesses hindering the growth pote ntial of the entire economy.  
 
Question 7  
Does Brazil have plans to undertake a programme of structural reforms in its services sector?  
Reply:  
Brazil has been undertaking measures to  advance its regulatory framework regarding services, 
focused on improvin g the domestic business environment and economic competitiveness. Brazil has 
reformed its legislation to promote more transparent, predictable and trade -friendly regulation, such 
as the introduction of the "regulatory impact analysis " model, opening of the  telecommunication and 
air services sectors to foreign capital and other recent reforms towards good regulatory practices.  
Report by the Secretariat (WT/TPR/S/432)  
4 Trade Policies by Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.4 Domestic Support  
Page 116, paragraph 4.43  
The report states the data on the guaranteed minimum prices (PGPM) policy were not provided by 
the authorities to the WTO Secretariat for their 2022 TPR.  
 
Question 8  
Could Brazil please provide further information on why data on PGP M operations were not provided 
by the authorities to the WTO Secretariat for their 2022 TPR?  
Reply:  
Since prices of agricultural products are higher than the Minimum Prices defined by the Government, 
there was no need for PGPM operations in 2022, except fo r oranges, a regional crop, with operations 
restricted to 0.33% of regional production.  
 
Report by the Secretariat (WT/TPR/S/432)  
4 Trade Institutional and Regulatory Framework  
4.2 Mining and Energy  
Page 119  
The Report presents an overview of Brazil's prod uction of key minerals and its policy, regulatory and 
operational frameworks. Recently, the Ministry of Mines and Energy has reduced the decarbonization 
requirement for transport for 2023, with a target of 35.45 million tons of carbon from mitigated 
emissi ons, 1.4% below the goal set for 2022, which is 35.98 million tons of avoided emissions.  
 
Question 9  
How will this change in the decarbonization requirement impact the prices of oil in the future? Is this 
a measure designed simply to reduce the price of gasoline and diesel?  
Reply:  
It should be noted that the proposed target is still under public consultation. The Ministry of Mines 
and Energy is receiving contributions from the market and society to later recommend the final 
decarbonization requirement to the National Energy Policy Council.  
Furthermore, the RenovaBio Committee is the technical body of the program established by 
Decree  No. 9,888/2019. It is responsible for the proposing technical targets and has already 
approved a decarbonization requirement  proposal. The committee is composed of several 
institutions: the Ministry of Mines and Energy, as coordinator; the Chief of Staff of the Presidency of 
the Republic; the Ministry of Economy; the Ministry of Agriculture, Livestock and Supply; the Ministry WT/TPR/M/432/Add.1  
 
- 26 - 
 
of the Environment; the Ministry of Science, Technology and Innovations; and the Ministry of 
Infrastructure. The Ministry of Foreign Affairs, the National Agency for Petroleum, Natural Gas and 
Biofuels and the Energy Research Company also participate as per manent guests.  
The aforementioned group, in compliance with the legal requirement provided for by the 
Law 13,576/2017, took into account several aspects in the economic modeling in order to propose 
the target now under public consultation. Among them, we h ighlight the projected reduction in the 
carbon intensity of the Brazilian fuel matrix for the next 10 years and the protection of consumer 
interests in terms of price, quality and supply of fuels. Another important point considered was the 
availability of biofuels supplied by biofuel producers certified in the program.  
Moreover, the proposed target is in line with the emission capacity of CBIOs (decarbonization credit), 
and an effective response is expected from the biofuels production sector in terms of ex panding 
biomass production and production capacity, aiming to expand the supply of biofuels in Brazil. Thus, 
a more audacious target than the one proposed would jeopardize the full functioning of the program 
itself, due to the risk of the lack of CBIOs ava ilable on the market to meet the targets.  
Finally, the target suggested for 2023 adds to predictability and sends a signal to the market related 
to the importance of strategically increasing production and participation of biofuels in the energy 
matrix, wi th a view both to decarbonize the sector and increase energy security.  
Question 9  
How will this change affect the production of biofuels and affect employment in this industry?  
Reply:  
The main idea of RenovaBio is to separate what the biofuel producer rece ives for fuel from what is 
received for providing the public good of decarbonization and air quality improvement. Biofuel 
producers receive additional revenue from CBio 's sales to interested parties. Moreover, the 
Cbio market may, over time, become a refer ence in the pricing of the carbon market - increasing 
biofuels' share in final energy demand of the transport sector, in compliance with sustainable 
practices and increased energy -environmental efficiency.  
Thus, and considering the answer to the previous q uestion, the target that was proposed is aligned 
with the production sector's production capacity for biofuels in the following year and, consequently, 
the capacity to issue CBIOs. A more audacious target than the one proposed would jeopardize the 
full fun ctioning of the program itself, due to the risk of the lack of CBIOs available on the market to 
meet the targets.  
Therefore, the target contributes to the fulfil ment of the program's objective and signals to the 
market the importance of increasing the prod uction and participation of biofuels in the energy matrix, 
with a view both to decarbonize the sector, as well as to increase energy security. The proposed 
target, in this manner, signals Brazil's  interest in expanding the bioenergy related industrial park , 
employment in this industry, as well as the supply and use of biofuels.  
Report by the Secretariat (WT/TPR/S/432)  
4 Trade Policies by Sector  
4.4 Services  
4.4.4 Telecommunications  
Pages 157 -158, paragraph 4.222  
The report states ANATEL is empowered to app ly a cap to interconnection prices charged by all 
operators deemed to have significant market power, however no such cap has been set so far.  
 
Question 10  
Could Brazil provide an update on why a cap has not been set? Is it because ANATEL does not believe 
any operator has "significant market power"?  
Reply:  
As indicated in footnote n. 297 of the report, ANATEL has pursued several other measures relating 
to the regulation of interconnection prices, including reference offers and price replicability analyses. 
These measures have also been applied to providers with SMP.  
 WT/TPR/M/432/Add.1  
 
- 27 - 
 
  Report by the Secretariat (WT/TPR/S/432)  
4 Trade Policies by Sector  
4.4 Services  
4.4.9 Professional Services  
Pages 174 -175, paragraphs 4.307 -4.308  
The report notes that professionals with foreign qualifications must obtain revalidation off their 
degrees from a university recognised by the Ministry of Education. The report also notes, as per 
earlier reports, that procedure for revalidation of foreign diplomas is complex and time consuming.  
 
Question 11  
Could Brazil elaborate on this process and explain what progress has been made in improving this 
situation? Is consideration being given to automatic recognition of foreign qualifications in specific 
circumstances?  
Reply:  
Revalidation and recognition are the names given in Brazil for the processes that allow citizens with 
diplomas issued by foreign institutions to continue their studies or, in some cases, to exercise their 
professional rights in Brazil. Revalidation is the process applicable to undergraduate -level diplomas, 
and recognition is the process applicable to graduate -level diplomas (Master 's and Doctor 's degrees, 
strictly).  
 
As per the National Education Guidelines and Framework Law of 1996 (Law  n. 9394/1996), and in 
accordance with the principle of autonomy granted to universities by Article 207 of the Brazilian 
Federal Constitution, undergraduate diplomas issued by foreign universities must be revalidated by 
a public Brazilian university that o ffers programs in the same level and area. Likewise, Master 's and 
Doctor 's Degrees issued by foreign universities must be recognised by a Brazilian university (either 
public or private) that offers graduate programs in the same area and the same or higher level.  
 
Due to the principle of universities ' autonomy, Brazil does not sign automatic 
revalidation/recognition agreements with any country or region. Universities are however free to 
sign direct agreements with their foreign counterparts that may accelera te these processes.  
 
The remarks from the Report (paragraphs 4.307 -4.308) concerning the complexity and duration of 
the revalidation procedures are based on a 2013 report from the WTO. Since then, the Brazilian 
government has been putting considerable effo rt towards simplifying revalidation/recognition 
processes, while maintaining universities ' autonomy in the matter.  
 
Established in 2008, the Regional University Accreditation System of MERCOSUR (ARCUSUR) is a 
mechanism for quality assessment within the MER COSUR Educational Sector that aims at promoting 
academic and professional mobility in the region, providing simplified procedures for the 
revalidation/recognition of titles issued by participating universities.  
Most importantly, in 2017 the Brazilian Ministry of Education launched the Carolina Bori Platform, 
an electronic system that compiles all relevant information regarding recognition/revalidation of 
foreign titles and stipulates specific time limits for universities to analyse requests. Additionally, the 
system incorporates fast -track procedures that apply to a number of revalidation/recognition cases, 
such as diplomas that were already revalidated by other Brazilian universities in the 
previous  5 years, diplomas from students that benefi ted from official Brazilian scholarships to study 
abroad, or diplomas from foreign institutions accredited in the ARCUSUR. Through the Carolina Bori 
platform, revalidation/recognition processes must be concluded within 180 days in the regular 
procedure, or  90 days in the simplified procedure.  
In July 2022, the National Council of Education, a federal government body linked to the Ministry of 
Education, issued a new resolution (Resolução CNE/CES n 01/2022) with general guidelines for 
revalidation/recognition  processes, with which all universities must comply. The resolution renders 
the processes more predictable and timely.  
 
Question 12  
Acceding to the UNESCO Global Convention on the Recognition of Qualifications concerning Higher 
Education qualifications wou ld facilitate a fair and timely recognition of qualifications. Does Brazil 
intend to accede to this convention?  
Reply:  
Brazil attributes the utmost importance to the facilitation of the recognition of qualifications as a 
means to promote the internationali zation of its Higher Education System and to improve academic 
and professional mobility. The country was an active participant throughout the negotiating process WT/TPR/M/432/Add.1  
 
- 28 - 
 
of the UNESCO Global Convention on the Recognition of Qualifications concerning Higher Educati on 
since its inception in 2013, with Resolution 37C/45. However, in the context of the adoption of the 
Global Convention by the 40th session of the UNESCO General Conference, in 2019, Brazil opted not 
to accede to the treaty, pending further domestic debat e on the matter.  
In this regard, it is important to consider that Brazil has a federative system in which the 
responsibilities regarding education are shared at federal, state and municipal levels with multiple 
stakeholders. Concerning higher education, u niversities ' autonomy enshrined in the Federal 
Constitution requests that the decision to accede to the UNESCO Global and Regional conventions 
on the recognition of qualifications be properly discussed with all relevant actors of society.  
 
Without prejudi ce to the debate on the multilateral initiatives, Brazil has been implementing several 
instruments to facilitate revalidation/recognition processes domestically, as discussed in 
Question  11. 
 
  WT/TPR/M/432/Add.1  
 
- 29 - 
 
  CANADA  
QUESTIONS REGARDING THE SECRETARIAT REPORT (WT/TPR/S/43 2) 
PART 2: TRADE AND INVESTMENT REGIMES  
Page 51, Paragraph 2.38  
The Secretariat's report notes that Brazil has made recent unilateral tariff cuts that will remain in 
force until December 2023 and that Mercosur members are considering tariff cuts to the Common 
External Tariff (CET).  
 
Questions:  
1. Does Brazil anticipate an extension for its tariff cuts beyond December 2023?  
Reply:  
See below.  
 
2. Could Brazil provide details on the progress of discussions among Mercosur members to make 
reductions to the CET?  
Reply: 
The discussions are underway, but it is not possible to anticipate any concrete outcome at this 
moment. As yet, the only reduction in place is the one established by Decision 08/22, which reduced 
the Common External Tariff by 10%, with some exceptions . This agreement was reached in  July 
2022, during the ordinary meeting of the Mercosur Council held before the 60th Summit of Heads 
of State of Mercosur and Associated States, in Asunción.  
 
Page 51, paragraph 2.39  
The Secretariat's report indicates that ne gotiations regarding the implementation of the 2004 
Agreement on the Elimination of Double Collection of CET and the Distribution of Customs Revenue 
in MERCOSUR remain ongoing.  
 
Questions:  
3. Could Brazil provide an update on the status of these negotiations?  
Reply:  
There are currently no active discussions regarding the Elimination of Double Collection of CET and 
the Distribution of Customs Revenue in MERCOSUR.  
 
4. Could Brazil explain how the CET is currently implemented for dutiable imported good s that 
are shipped through the territory of multiple Mercosur members, if the goods enter the markets of 
Mercosur members through which they are shipped?  
Reply:  
Currently all imported products that do not comply with the rules of origin of MERCOSUR are su bject 
to the CET, including if they are imported from another Member State.  
 
Page 59, paragraph 2.57  
It is noted in Footnote 109 that, unlike traditional BITs, Brazil's cooperation and facilitation 
investment agreements (CFIAs) do not provide for an Investor -State dispute settlement (ISDS) 
mechanism; instead they outline progressive steps for the settlement of "issue[s] of interest to an 
investor".  
 
Question:  
5. Noting these CFIAs do not include ISDS mechanisms, do they include state -to-state dispute 
settlement mechanisms?  
Reply:  
CFIAs include a state -to-state dispute settlement mechanism that Parties to the Agreements may 
resort to after they have exhausted all previous dispute prevention procedures.  
 
Page 59, paragraph 2.57  
It is noted that out of the CFIAs signed by Brazil, only those with Mexico, Angola, MERCOSUR, and 
Chile were in force as of April 2022.  
 WT/TPR/M/432/Add.1  
 
- 30 - 
 
Questions:  
6. If these in -force CFIAs do include state -to-state dispute settlement mechanisms, have there 
been any disputes launched under said me chanisms?  
7. What were the results of any state -to-state disputes launched under the in -force CFIAs?  
Reply:  
There have been no disputes launched under the CFIAs currently in force.  
 
PART 3: TRADE POLICIES AND PRACTICES BY MEASURE  
Page 61, paragraph 3.1  
The Se cretariat's report notes that Brazil has implemented export restrictions in response to the 
COVID 19 pandemic.  
Question:  
8. Could Brazil clarify whether these restrictions are still in place and, if so, for which goods?  
Reply:  
Export restrictions in response to the COVID 19 pandemic are no longer in effect since 22 May 2022. 
To clarify, we list below the chronology of events:  
 1. Ordinance No. 188 of 3 February  2020, issued by the Ministry of Health of Brazil – It declares 
the Public Health Emergency of National Importance (Emergência de Saúde Pública de Importância 
Nacional – ESPIN) as a result of human infection by the new coronavirus (2019 -nCoV);  
 2 Law No. 1 3,979 of 6 February  2020 – It provides for measures to fight the international public 
health emergency provoked by the new coronavirus;  
 3. Law No. 13,993 of 23 April  2020 – It provides for export bans on medical, hospital and hygiene 
products which are es sential to fight the pandemic of new coronavirus in Brazil;  
 4. Decree No. 10,407 of 29 June  2020 – It regulates Law No. 13,993 of 23 April  2020, and provides 
for the prohibition of exports of medical, hospital and hygiene products essential to the fight t he 
pandemic of new coronavirus in Brazil, specifically listing items with prohibited export and their 
respective NCM (Mercosur Common Nomenclature) codes. The aforementioned Decree also presents 
some conditions in which the export ban could not be applied,  such as humanitarian reasons, 
international commitments previously assumed by Brazil, the conditions of domestic supply, 
distribution and access to products adequate to the needs of the Brazilian population and the impacts 
on Brazilian supply chains;  
 5. Decree No. 10,752 of 23 July 2021 – It amends Decree No. 10,407 of 29 June 2020;  
 6. Ordinance GM/MS No. 913 of 22 April  2022 - Declares the closure of the Public Health Emergency 
of National Importance (ESPIN) as a result of human infection by the new cor onavirus (2019 -nCoV) 
and revokes the Ordinance GM/MS No. 188 of 3 February  2020. With this Ordinance, as 
Law No. 13,993 of 23  April 2020 had its validity conditioned to the declaration of the ESPIN, the 
export bans on medical, hospital and hygiene products  have lost their effectiveness.  
Page 67, paragraph 3.34  
The Secretariat's report indicates that work is ongoing to update Brazil's bound rate schedule from 
HS 2002 to subsequent versions of the HS. The report also notes that comparison of Brazil's bound 
and applied rates is imprecise due to changes across HS versions.  
 
Questions:  
9. Could Brazil indicate exactly when the transposition of its HS 2002 bound rate schedule to 
subsequent versions of the HS will be complete?  
10. Could Brazil indicate what progress has been made toward the transposition of its HS  2002 
bound rate schedule since the previous Trade Policy Review in 2017?  
Reply:  
Brazil submitted its bound rate schedule transposed to the HS 2007 version to the WTO's Secretariat 
in May/2022. To date, the docum ent is under WTO examination for approval.  WT/TPR/M/432/Add.1  
 
- 31 - 
 
  Page 68, paragraph 3.35  
The Secretariat's report indicates that Brazil currently applies tariffs on 90 tariff lines that exceed 
Brazil's bound rates.  
 
Question:  
11. Could Brazil clarify which tariff lines these include and indicate when it will lower its applied 
rates for these tariff lines to levels that are within its WTO bound commitments?  
Reply:  
The reported situation is related to goods whose tariff levels in the Common External Tariff of 
Mercosur (CET) are higher than the levels bound by Brazil in the WTO. In all cases the bound rate 
is guaranteed to importers requesting the application of those rates to imports from WTO Members.  
It is important to emphasize that after the publication of Gecex Resolution  391, 23  August  2022, 
cases subject to such a hypothesis were substantially reduced, considering that the WTO bound level 
was incorporated as the general tariff applicable to such tariff lines.  
Moreover, the Brazilian government is finishing the work to gr ant similar treatment to a small 
remaining subset of goods whose tariffs were consolidated as "Ex", without direct correspondence 
by tariff line aggregation.  
 
Page 85, paragraph 3.108  
The Secretariat's report indicates that the National Bank for Economic a nd Social Development 
(BNDES) provides certain financing schemes for domestically produced machinery and equipment, 
among other projects.  
 
Question:  
12. Could Brazil provide details on the specific schemes under which the BNDES provides financing 
for domestic  products, and indicate whether these schemes also provide similar financing for like 
products imported from other Members?  
Reply:  
BNDES directly finances the purchase of new domestic and imported machinery and equipment, as 
well as leasing domestic equipm ent, works of infrastructure and working capital when associated 
with an investment project of a total value above BRL 10 million. The financed company has the 
option of acting directly with BNDES or through an on -lending agent bank. In some cases, the 
financing may also be mixed between direct financing by BNDES and indirect financing through 
commercial banks (either public -owned or privately held), acting as an agent banks.  
 
BNDES operates a variety of financial products through numerous programs, with many different 
sectors (e.g. Industry, Agriculture, Commercial Services, Social Development, Exports, 
Internationalization, Technological Innovation, Sustainable Development, Culture, Capital Markets, 
Tourism), as can be seen on the bank web site <www.bndes.gov.br/english>. When financing is 
solely for the purchase or leasing of new equipment, BNDES finances through the FINAME program. 
In such cases financing is made mostly through an agent bank.  
 
The eligibility or receipt of loans is not aff ected by the use of domestic or imported goods, although 
procedures may differ depending on the origin of the good and the technologies involved.  
 
Page  88, paragraph  3.118  
It is noted that "…from July 2020, interested parties may request the revision of ou tdated technical 
regulations that depart from international standards".  
 
Questions:  
13. Could Brazil provide details on the implementation of Decree No. 10229/2020, namely what 
technical regulations have been requested to be revised and the outcomes of these requests.  
Reply:  
Despite the fact that Decree 10.229/2020 is in full force and regulations are subject to its review 
procedure, so far there have been no requests by private individuals to review technical regulations. 
That is, until the present date , there are no technical regulations that were reviewed by this 
procedure.  
 WT/TPR/M/432/Add.1  
 
- 32 - 
 
14. Could Brazil confirm whether "interested parties" includes interested persons from other 
WTO members?  
Reply:  
In the context of Decree 10.229/2020, "interested parties " refers to private individuals, 
administratively bound by a federal regulation, who are willing to develop an economic activity that 
is regulated by a technical regulation which is (or might be) out dated due to technological 
development. There is no explicit reference in the text to "interested persons from other 
WTO members ", but there is no prohibition preventing such a possibility.  
 
Page 95, paragraph 3.155  
The Secretariat Report states that the " value of government procurement across all levels of 
government in Brazil was estimated at BRL  874 billion in 2010".  
 
Question:  
15. If available, could Brazil please provide a more recent estimate of the value of government 
procurement across all levels of gov ernment?  
Reply:  
Brazil is not currently in a position to provide the economic value for the government procurement 
across all levels of government. Current systems do not provide the cross -cutting tools to gather 
these values. This is further complicated by the complex fe deral structure of the country, in which 
subnational entities have their own systems of statistics. To address this situation, a National Public 
Procurement Portal (PNCP) has been created as an official website for the centralized and mandatory 
disclosure of the acts required by the procurement law. With its introduction and progressive use 
from April 2023, the PNCP shall also offer, in the medium -term, a unified information registration 
system from which to gather relevant statistics from central and sub -central entities. The PNCP can 
be accessed at https://www.gov.br/pncp/ . 
The Report further states that at the Federal level "From 2016 to  2020, the amount of procurement 
subject to international competitive bidding continued to be very low, ranging from 0% to 
0.23%  (Table  3.18)".  
 
Questions:  
16. If available, could Brazil please provide data on the amount of procurement subject to 
international competitive bidding at the sub -Federal level?  
Reply:  
Brazil is not currently in a position to provide the exact economic value for the amount of 
procurement subject to international competitive bidding at the sub -Federal level. Current systems 
do not provide the cross -cutting tools to gather these values. This i s further complicated by the 
complex federal structure of the country, in which subnational entities have their own systems of 
statistics. To address this situation, a National Public Procurement Portal (PNCP) was created as an 
official website for the cen tralized and mandatory disclosure of the acts required by the procurement 
law. With its introduction and progressive use from April 2023, the PNCP shall also offer, in the 
medium -term, a unified information registration system from which to gather relevant  statistics from 
central and subcentral entities. The PNCP can be accessed at  https://www.gov.br/pncp/ . 
17. If available, could Brazil please provide data on the value of contracts awards to foreign 
suppliers during the same time period at the Federal and sub -Federal levels?  
Reply:  
Brazil is not currently in a position to provide the economic value of contracts awards to foreign 
suppliers at sub -Federal level. Current systems do not provide the cross -cutting tools to gather these 
values. This is further complicated by the complex fed eral structure of the country, in which 
subnational entities have their own systems of statistics. To address this situation, a National Public 
Procurement Portal (PNCP) was created as an official website for the centralized and mandatory 
disclosure of the  acts required by the procurement law. With its introduction and progressive use 
from April 2023, the PNCP shall also offer, in the medium -term, a unified information registration 
system from which to gather relevant statistics from central and subcentral entities. The PNCP can 
be accessed at https://www.gov.br/pncp/ . WT/TPR/M/432/Add.1  
 
- 33 - 
 
  Page 96, paragraph 3.161  
The Report states that "In 2021, 99% of all federal administration procurement took place through 
reverse auction (Table  3.19)". 
 
Question:  
18. If available, could Brazil please provide data on the procurement methods used at the sub -
Federal level? Is reverse auction also the predominant method?  
Reply [MECON]:  
Brazil is not currently in a position to provide data on the procuremen t methods used at the sub -
Federal level. Current systems do not provide the cross -cutting tools to gather these values. This is 
further complicated by the complex federal structure of the country, in which subnational entities 
have their own systems of sta tistics. To address this situation, a National Public Procurement 
Portal  (PNCP) was created as an official website for the centralized and mandatory disclosure of the 
acts required by the procurement law. With its introduction and progressive use from Apri l 2023, 
the PNCP shall also offer, in the medium -term, a unified information registration system from which 
to gather relevant statistics from central and subcentral entities. The PNCP can be accessed 
at https:// www.gov.br/pncp /. 
Page 98, paragraph 3.171  
The Report states that pursuant to Laws No.  12,462/11 (Article  4) and No.  13,303/16 
(Article  32),"…procurements that are deemed to have a negative impact on the environment must 
provide for appropriate environmental compensation".  
 
Question:  
19. Could Brazil please provide an example of a procurement deemed to have a negative impact 
on the environment and the appropriate environmental compensation?  
Reply:  
Law No. 14,133/21 is a landmark in the evolution of B razilian rules towards the progressive inclusion 
of environmental sustainability criteria in public procurement. But it requires further regulation to 
ensure that all provisions are fully implemented. Law No. 14,133/21 incorporates successful 
provisions of  art. 4 of Law No. 12,462/11, which it will replace, and of art. 32 of Law No. 13,303/16, 
which regulates procurement of state -owned and controlled companies.  
Several provisions of the new law indicate general ways in which those criteria will be taken int o 
account. According to art. 18, paragraph 1, XI, a description of the need for the contract in the 
format of a preliminary technical study shall include a description of potential environmental impacts 
and corresponding mitigation measures, including requ irements of low consumption of energy and 
other resources, as well as reverse logistics for disposal and recycling of goods and rejects, when 
applicable. Art. 45 of the of Law No. 14,113/21 states that:  
Article 45. Procurement processes for engineering works and services shall comply especially with 
the rules related to:  
I – final, environmentally sound disposal of the solid waste generated by the contracted works;  
II – mitigation through conditions and environmental compensation, which shall  be determined 
during the environmental permitting process;  
III – use of products, equipment, and services that provenly help to reduce the consumption of 
energy and natural resources;  
(…) 
 
The mechanism of environmental compensation was established by art . 36 of Law No. 9,985, of 
18 July 2000, and regulated by arts. 31 to 34 of Decree No. 4,340, of 22  August  2002. 
Environmental compensation consists in the obligation to support the implementation or 
maintenance of conservation units of the National System of Conservation Units. The definition of 
the amount to be disbursed by the entrepreneur and the definition of the beneficiary conservation 
units are under the responsibility of the licensing body, based on the degree of impact of the project 
and technical criteria for defining the eligible units. The compensation of the amounts can occur 
directly by the entrepreneur, in the form of direct execution or in the form of execution via the 
Environmental Compensation Fund.  
 WT/TPR/M/432/Add.1  
 
- 34 - 
 
Page 99, paragraph 3.176  
Per the Secreta riat Report, since its previous Review, Brazil has enacted several legislative 
amendments affecting IP protection, including as regards patents, utility models, and trademarks.  
 
Question:  
20. Could Brazil provide additional details on the updates to its IP regime, in particular as regards 
patents, utility models, and trademarks?  
Reply:  
In 2021, main changes in the industrial property law included the revocation of the sole paragraph 
of the 40, which provided a minimum protection period (10 years for inventio ns and 7 years for 
utility models) counted from the patent's granting date. The article 229C was also revoked and 
ended the need for prior consent from the National Health Surveillance Agency for the granting of 
patents for pharmaceutical products and proc esses. Finally, it was included the article 71, which 
provides that in cases of national or international emergency or public interest declared by law or 
by an act of the Federal Executive Branch, or recognition of a state of public calamity of national 
scope by the National Congress, a compulsory, ex officio, temporary licen ce may be granted and 
non-exclusive, for the exploitation of the patent or the patent application, without prejudice to the 
rights of the respective holder, provided that its holder or its licensee does not meet this need.  
 In trademarks, a study was carried out to change some important points in the Industrial Property 
Law regarding the unification of deposit and concession fees, and the moment for presenting the 
Opposition. These propo sals, along with other important points, are being discussed by the IP 
Normative Framework Review Group of the Interministerial IP Group, which at the end of the work 
must present its proposed amendments to the Industrial Property Law. Furthermore, the Dir ectoriate 
of Trademarks of the INPI standardized and made possible the deposit of position marks, which will 
become active in the next few days, and is looking for mechanisms to enable the application of the 
"secondary meaning " administratively.  
Page 99, p aragraph 3.176  
Per the Secretariat Report, since its previous Review, Brazil has ratified the Nagoya Protocol on 
Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their 
Utilization (the Nagoya Protocol).  
 
Question:  
21. Could Brazil clarify whether the implementation of the Nagoya Protocol also included any 
amendments to its IP regime, such as in respect of disclosure requirements?  
Reply:  
Nothing has changed in the IP laws after the implementation of the Nagoya Protocol.  
 
Page 100, paragraph 3.180  
Per the Secretariat Report, Brazil amended its Industrial Property Law in September  2021 to clarify 
the compulsory licensing provisions therein. The amendment expanded the definition of emergencies 
that may justify recourse to compu lsory licences, extended the compulsory licensing mechanism to 
also cover patent applications, and determined the licensing fees to be paid until the patent's value 
is effectively established.  
 
Question:  
22. Could Brazil indicate whether it has issued compulsory licen ces since the amendments?  
Reply:  
After the amendment of art. 71 of Law No. 9,279/1996, by Law No. 14,200/2021, Brazil has not 
issued any compulsory licen ces under the new legislation, since priority was given to voluntary 
licences. In addition, it is worth mentioning that the said Law lacks regulation.  
 
Page 101, paragraph 3.184  
Per the Secretariat Report, Brazilian authorities indicated that between 2017 and 2021, annual 
average pendency times declined as follows: industrial designs, f rom 15.9 to 2.5 months; 
geographical indications, from 23.4 to 20 months; and patents, from 11 to 5 years.  
 WT/TPR/M/432/Add.1  
 
- 35 - 
 
  Question:  
23. Could Brazil identify the contributing factors that led to the decline in pendency times?  
Reply:  
The increase of patents grants is because, in 2019, the INPI started the Plan to Combat the Patent 
Backlog with the objective of reducing the number of requests pending decision by 80% from 
almost  150,000 requests in this situation.  
For this, the INPI started to use the results of the anal ysis of patent applications in other countries 
and regions, such as the examination carried out by the USPTO (United States Patent and Trademark 
Office) and EPO (European Patent Office). In this way, Brazilian examiners, responsible for 
evaluating the inve ntions proposed in patent applications pending at the INPI, can benefit from 
qualified technical work, while saving valuable time.  
In addition, even starting from a technical examination already carried out abroad, the INPI 
examiner has the right to carry out his own analysis in light of the Brazilian legislation in force and 
even disagree on the merits of an invention that has been patented in other countries. Consequently, 
the process of evaluating Brazilian patent applications became more agile, while re specting the 
decision -making independence of INPI examiners.  
Another proposed action concerns invention patents that have already been evaluated in another 
country, the novelty is that the search carried out previously will be attached to the examination o f 
the patent application carried out in Brazil. After this search is coupled with the exam, a requirement 
will be issued for the applicant to approve the document or make changes if necessary. Only then 
will the examining board evaluate the process accordi ng to the Brazilian Industrial Property Law. If 
there is no response from the applicant, the application will be archived. The focus on these patents 
was due to the fact that they represent about 80% of the processes that are in the evaluation queue.  
The idea of the requirement will also be used for applications that have not been evaluated in another 
country, so the INPI examiner will only evaluate the patent after a response from the applicant.  
There are also priority exams that already have a reduced con cession time. This priority exam 
benefits some specific groups, they are: seniors, micro and small businesses, science and technology 
institutions, creators of green technologies and Pantent Prosecution Highway (PPH) participants.  
Page 101, paragraph 3.186  
Per the Secretariat Report, Brazilian authorities indicate that work on a legal framework for the 
development and use of artificial intelligence is ongoing.  
 
Questions:  
24. Could Brazil indicate which stage it is in as regards the legal framework for the development 
and use of artificial intelligence?  
Reply:  
The Legal Framework for Artificial Intelligence (Bill No. 21/20), after approval in the lower chamber 
(Chamber of Deputies) of the National Congress, is currently being considered by the Federal Senate , 
together with two other legislative proposals dealing with the same theme (Bills 5051/2019 and 
872/2021). The following websites allow public view of the legislative processing of the bills, as well 
as their content:  
Bill 21/20: https://www25.senado.leg.br/web/atividade/materias/ -/materia/151547 . 
Bill 5051/2019: https://www25.senado.leg.br/ web/atividade/materias/ -/materia/138790 . 
Bill 872/2021: https://www25.senado.leg.br/web/atividade/materias/ -/materia/147434 . 
On 30 March  2022, the president of the Federal Senate installed a commission composed of legal 
authorities (hereafter, "Commission ") to assist in the preparation of a substitute bill to replace 
Bills 5.051/2019, 21/2020 and 872/2021 (cf. Act of the President of the Federal Senate No. 4, 2022).  
 WT/TPR/M/432/Add.1  
 
- 36 - 
 
25. Noting that the development of a legal framework for artificial intelligence is included under 
the copyright heading, are there expected to be specific links between the framework and 
Brazil's  copyright laws? Will the framework also touch on other specific  aspects of intellectual 
property protection (e.g. patents, IP administration)?  
Reply:  
Article 5, item VIII, of the text approved by the Chamber of Deputies (Bill No. 21/20) provides that 
the "availability of data" is one of the "principles for the develop ment and application of artificial 
intelligence in Brazil". According to this principle, there is no "infringement of copyright by the use 
of data, database and texts protected by it, for the purpose of training artificial intelligence systems, 
provided th at there is no conflict with the normal exploitation of the work by its owner ". On the other 
hand, the Commission established by the Senate to analy se proposals to regulate the use of Artificial 
Intelligence informed during its 9th ordinary meeting, held o n 20 October  2022, that it will present 
a substitute bill broader and more detailed, with the following structure:  
Chapter I – Preliminary Provisions, which is divided into four topics: a) scope of application, b) 
a topic on principles, c) an article on fundamentals and d) an article related to definitions.  
 
Chapter II – Rights  
 
Chapter III – Risk Assessment and Categorization: The Commission's bill will contain criteria 
for risk  classification and rules for algorithmic impact assessment aimed at high risk.  
 
Chapter IV – Governance of the Artificial Intelligence System: the Commission's bill will detail 
procedures and obligations related to documentation, among others.  
 
Chapter V - Civil Liability: this is a topic already addressed in other bills and also in PL 21/2020 . 
 
Chapter VI – Supervision and Inspection.  
 
Chapter VII - Final Provisions: In this chapter, topics such as data mining, research and 
copyright will be discussed.  
 
26. Is Brazil conducting consultations as it develops its legal framework regarding artificial 
intelligence? If so, can Brazil provide information on the consultation process and any results 
to date?  
Reply:  
On 30 March  2022, the president of the Federal Senate  created a commission of jurists 
(hereafter,  "Commission ") to assist in the preparation of a substitute bill to replace Bills 5.051/2019, 
21/2020 and 872/2021 (cf. Act of the President of the Federal Senate No. 4, 2022). Within the scope 
of the Commission,  a series of public hearings was held in which more than 50 experts were heard. 
Afterwards, work was carried out in an international seminar, with the participation of experts from 
all over the world. There was also a public consultation process, within wh ich 102 contributions were 
obtained, later consolidated and systematized with the support of the legislative consultancy of the 
Senate (Federal Senate Information Note - 2022-08682). The commission is expected to complete 
its work on 7 December  2022, when will be presented a final report accompanied by a proposal for 
a substitute bill.  
 
PART 4: TRADE POLICIES BY SECTOR  
Page 109, paragraph 4.26  
It is noted that agricultural or rural credit at administered and preferential interest rates remained 
the major p olicy instrument for the sector; it is provided to both commercial and small -scale family 
farms.  
On Table 4.4 (page 110) – Brazil's federal government agricultural support programmes, 2017 -21 
(prevailing norms for crop -year 2021/22)  – it is noted that the PROCAP -Agro program disbursement 
for the Y2020 and Y2021 is respectively 36 BRL million and 987 BRL million.  
 WT/TPR/M/432/Add.1  
 
- 37 - 
 
  Questions:  
27. What accounts for the 2641% increase of the PROCAP -Agro resources between 2020 
and 10/2021?  
Reply:  
The increase was made possible mainly by a reorganization of the available funds and is in line with 
the priority Brazil gives to agricultural cooperatives.  
 
28. What portion of the agricultural credit resources PROCAP -Agro is used to finance working 
capital?  
Reply:  
PROCAP -AGRO is a program that aims exclusively to make resources available for financing working 
capital in order to meet the immediate operational needs of the cooperatives.  
 
Page 114, paragraph 4.35  
It is noted that agricultural credit resources a vailable to commercial farmers under the Agricultural 
and Livestock Plans reached BRL 251.2 billion in FY2021/22. The FY2019/20 Plan rose by 8.6% to 
BRL 222.7  billion (USD 56.4 billion) when compared to the FY2018/19.  
 
Question:  
29. What accounts for the 23.4%  increase of agricultural credit resources between FY2018/19 and 
FY2021/22?  
Reply:  
Credit resources grew in tandem with the growth of the Brazilian economy in general and with the 
agribusiness GDP in particular. It also reflect a rise in input prices, whic h increased producers needs 
for credit regardless of any actual change in production.  
 
PART 5: APPENDIX TABLES  
Page 190, table A3.2 BNDES selected export finance programmes, 2017  
Activity/products targeted  Conditions  Rates/charges  
EXIM Pre-shipment (BNDES Circular No.  007/2018, 20  August  2018)  
Finances working capital for 
Brazilian exporters of goods. 
Applications above BRL  20 million 
can be made directly with BNDES, 
without agent bank intermediation.  Financing granted for up to 48  months 
for capital goods from large companies 
and 36  months for all other products. 
Covers up to 100% of exports' value for 
MSMEs and 80% for other companies.a 
To qualify automatically, goods must be 
accreditedb by BNDES, or have a 
previously known reference of local 
content, or meet PPB criteria.c Interest rates: BNDES Fixed 
Rated (MSMEs), TLPe, Selicf or 
LIBOR.  
BNDES spread: 1.2% p.a. to 
1.5%  p.a. 
+ BNDES risk premium; or  
+ agent bank spread: 
negotiated between  the 
institution and the exporter.  
EXIM Pre -shipment "anchor" (BNDES Circular No.  008/2018, 20  August  2018)  
Finances working capital for 
companies that carry out indirect 
exports (goods produced by other 
companies).  Financing period, coverage and eligibility 
criteria same as EXIM Pre -shipment.  Interest rates same as for 
EXIM Pre-shipment.  
EXIM Automatic (BNDES Circular No.  009/2015, 24  August  2015)  
Finances commercialization of 
Brazilian goods abroad (at the post -
shipment phase) through a networ k 
of accredited banks in Latin America 
and Africa. Capital and consumer 
goods are eligible.  Financing up to 100% of exports' value, 
with a credit limit of USD10  million per 
application. Financing period: up to 
7 years.  Interest rates: LIBOR + BNDES 
spread (0.4% to 1.35% p.a., 
depending on the importing 
country's political risk) + 
spreads of the intermediary 
financial institutions in Brazil 
and overseas.  
EXIM Post -shipment (BNDES Circular No.  008/2015, 27  July 2015, and annexes)  
Finances commerciali zation of 
Brazilian goods and services abroad. 
Can be granted to the importer via 
the exporter (supplier's credit 
modality) or directly to the importer 
(buyer's credit modality). Eligible 
services include those associated 
with the export of qualified goods , 
as well as construction, engineering 
and aircraft maintenance and repair 
services.  Financing for up to 15  years, and 100% 
of the export value (85% for aircraft 
and related exports). To qualify 
automatically, goods must be 
accreditedb by BNDES, or have a 
previously known reference of local 
content, or meet PPB criteria.c Interest/discount rates: (LIBOR, 
US Treasury Bonds, Euro Area 
Yield Curve, or EURIBOR) 
+ BNDES spread (at least 0.9% 
p.a.) + a risk premium. BNDES 
also levies a management fee 
(up to 1% of  disbursed amount) 
and a commitment fee (up to 
0.5% p.a. on the unused credit 
balance). The intermediary bank 
levies an administration fee 
(up to 1% of disbursed 
amount).  WT/TPR/M/432/Add.1  
 
- 38 - 
 
Questions:  
30. Does Brazil offer financing programs for women -owned and Indigenous -owned businesses?  
a. If so, how does Brazil ensure that women and Indigenous entrepreneurs are informed and 
aware of such programs?  
Reply:  
See below (reply to Question 31).  
31. Does Brazil collect disaggregated data of businesses benefitting from the BNDES export 
finance programmes, in particular women and Indigenous owned businesses?  
Reply:  
BNDES export finance programs are available to Brazilian exporters and do not have any special 
provisions regarding women or indigenous owned businesses.  
Data about BNDES export finance programs is available at: 
https://www.bndes.gov.br/wps/portal/site/home/transparencia/ consulta -operacoes -
bndes/consulta -a-financiamentos -exportacao . 
 
Page 192, Table A4.1 Domestic agricultural support notified to the WTO, 2016/17, 
2017/18, 2018/19, 2019/20  
It is noted that under S&D assistance , Brazil provide input subsidies to low -income o r resource -poor 
producers.  
 
Question:  
32. Could Brazil elaborate on what is considered a "low -income" or "resource -poor" producer?  
Reply:  
For the purpose of the "Programa Nacional de Fortalecimento da Agricultura Familiar" (Pronaf), 
Family farmers and rural family entrepreneurs (small farmers) are those who practice activities in 
the rural environment, simultaneously meeting the following requirements:  
 I - do not hold, in any capacity, an area greater than 4 (four) fiscal modules;  
II - predominantly us e the family's own labor in the economic activities of its establishment or 
enterprise;  
III - have a minimum percentage of family income originating from economic activities in its 
establishment or enterprise, as defined by the Executive Branch;  
IV - run its establishment or enterprise with its family.  
 In addition, the farmer must complete the National Register of Family Farming (CAF) for the 
purposes of identification, inspection and qualification with the federal government for the purpose 
of accessing s pecific public policies.  
QUESTIONS REGARDING THE GOVERNMENT REPORT (WT/TPR/G/432)  
PART  2: GENERAL  ECONOMIC  ENVIRONMENT   
Page 5, paragraph 2.6  
 
Brazil reports that it has promoted in the last years an ambitious supply -side reform agenda aimed 
at boosting pr oductivity, potential growth, and living standards.  
 
Question:  
33. Does Brazil promote and support financial inclusion for women and marginalized groups such 
as Indigenous peoples? If so, how?  
Reply:  
Regarding the financial inclusion of women, on 8 March  2022 the federal decree No. 10.988/2022 
established the National Strategy for Female Entrepreneurship. The Strategy was designed for the 
promotion of women's financial independence through entrepreneurship, as an instrument of 
economic and social development. Through articulation with the private sector and the civil society, 
a Female Entrepreneurship Committee was created, and many initiatives were developed.  WT/TPR/M/432/Add.1  
 
- 39 - 
 
  One of the main objectives of this Strategy is to promote the expansion of credit by mobilizing public  
and private resources for investment and financing of women's enterprises. Other pillars of this 
public policy are the promotion of financial sustainability of businesses through entrepreneurial 
education, dissemination of support networks for female entr epreneurship and strengthening the 
ecosystem of innovative entrepreneurship and socio -environmental impact.  
In this regard, a roadshow with 14 major events in different states was organized in 2022, where 
over 20,000 women had first contact with public pol icies directed towards supporting female 
entrepreneurship and also specifically towards financial inclusion. Public banks such as Banco do 
Brasil and Caixa Econômica Federal can also showcase financial products aimed at the female 
population (more informat ion at https://www.bb.com.br/site/promocoes/bb -pra-elas/ and 
https://investcaixa.gov.br/caixa -pra-elas/paginas/ default.aspx ). 
 
Page 7, Paragraph 2.14  
With respect to the financial system's regulatory framework, Brazil reports that "regulation 
addressing market and operational risks is under development and will be implemented in due 
course".  
 
Question:  
34. Is there a more specific timeline for implementation of such regulation?  
Reply:  
Regulation addressing operational risk is currently under public consultation. It is estimated to be 
made public in 2023, and effective on 1 January 2024. As regards market risk r egulation, as 
standardized model (FRTB) is being examined. Public consultations and its publication is expected 
to take place in 2023, and to become on 1 January  2025.  
 
Page 9, Paragraph 2.26  
Brazil reports that foreign insurance companies are required to be incorporated as a corporation 
under Brazilian law.  
 
Question:  
35. Is there any intention to amend such law and further open this market for foreign companies?  
Reply:  
The requirement of incorp oration as a company corporation under the Brazilian law applies for both 
local and foreign insurance companies, providing for equal treatment between national and foreign 
services suppliers. It is also possible that a branch of an insurance company is acc epted into the 
Brazilian market by presidential decree, but this company would, in any case, have to follow the 
same local rules, including capital requirements in Brazil.  
 
PART  3: TRADE  POLICY  DEVELOPMENTS  
Page 17, Paragraph 3.7  
Brazil reports that, in response to the COVID -19 pandemic, it reduced to zero the MFN import duties 
on certain medical and protective equipment between 18 March 2020 and December 2022.  
 
Questions:  
36. Could Brazil detail what will happen after the duty reduction expires in December 2022?  
Reply:  
In light of the evolution of epidemiological circumstances of the pandemic, Brazilian government is 
evaluating the eventual extension of temporary tariff reductions in response to the COVID -19 
pandemic (current List or a subset of it).  
 
37. Is there any plan to implement a permanent reduction for this list of 548 products?  
Reply:  
In light of the evolution of epidemiological circumstances of the pandemic, Brazilian government is 
evaluating the eventual extension of temporary tariff reductions in re sponse to the COVID -19 
pandemic (current List or a subset of it).  
 WT/TPR/M/432/Add.1  
 
- 40 - 
 
Page 17, Paragraph 3.8  
Brazil reports a horizontal reduction of 10 percentage points across its MFN tariff implemented 
in November 2021 and an additional linear reduction of 10 percentage points implemented 
in July 2022. These reductions are currently due to expire in December 2023.  
 
Questions:  
38. Does Brazil anticipate an extension for its tariff cuts beyond December 2023?  
Reply:  
See below.  
39. Are there any ongoing negotiations in M ercosur to make this temporary reduction permanent?  
Reply:  
The discussions are underway, but it is not possible to anticipate any concrete outcome at this point. 
As yet, the only reduction in place is the one established by Decision 08/22, which reduced th e 
Common External Tariff by 10%, with some exceptions. This agreement was reached in  July 2022, 
during the ordinary meeting of the Mercosur Council held before the 60th Summit of Heads of State 
of Mercosur and Associated States, in Asunción.  
Page 23, Paragraph 3.55  
Brazil reports that it continues to participate in the 1988 Global System of Trade Preferences among 
Developing Countries.  
 
Question:  
40. Does Brazil intend to forego its participation in the Global System of Trade Preferences among 
Developing C ountries as part of its accession bid to the OECD?  
Reply:  
Brazil believes in a world trade system that treats countries commensurate with their level of 
development. A process to begin to forego special and differential treatment in certain future 
negotiat ions flows from the dynamic and progressive nature of SDT. It does not mean that the 
country will immediately refrain from resorting to key flexibilities and transitional measures that 
constitute an essential component of the Brazilian path towards develop ment. Nor does it imply any 
change or reduction in the current flexibility regarding certain rules in the world trade institutional 
framework.  
 
PART  4: TRADE,  INSTITUTIONAL,  AND  REGULATORY  FRAMEWORK  
Page 38, paragraph 4.79 and 4.80  
Brazil reports that the Ministry of Economy's Special Secretariat for Foreign Trade and International 
Affairs  (SECINT) has an institutional framework aimed at supporting MSMEs willing to export, namely 
the PNCE (National Plan for Exporting Culture).  
Brazil also refers to the Learning how to Export (Aprendendo a Exportar) program, which is a virtual 
collection guide devoted to relevant issues on exporting processes and operations. Its approach 
allows people from different backgrounds, regardless of their previous knowledge in i nternational 
trade, to understand the process from the very first steps of internationalization to actually selling 
overseas.  
Question:  
41. Does Brazil collect gender disaggregated data on the portion of its MSMEs, in particular 
women -owned and Indigenous owne d MSMEs, engaging in exports through the PNCE and the 
Learning how to Export programmes? If so, can Brazil provide that data?  
Reply:  
PNCE is ready to disaggregate data regarding the ownership of MSMEs not only by women and 
Indigenous people, but also by af ro-descendant and disabled people. However, it will only start 
collecting such data next year, when its new system is expected to be launched. Following are the 
questions made to the person representing a company that decides to participate in PNCE actions : 
1. Does one or more women own more than half of your company?  
2. Does one or more afro -descendant people own more than half of your company?  
3. Does one or more indigenous people own more than half of your company?  
4. Does one or more disabled people own  more than half of your company?  WT/TPR/M/432/Add.1  
 
- 41 - 
 
  As for the "Learning How to Export Program ", it doesn´t collect data regarding MSMEs´ownership 
profile since it is an open website that doesn´t demand any kind of personal information in order to 
be accessed.  
Page 40, paragraph 4.97  
Brazil reports that the Government adopts national policies aimed at promoting the production of 
food by small farmers through public purchase programs carried out at market prices, such as the 
Feed Brazil Program (Programa Alimenta Brasil, PAB), and the National School Feeding Program.  
Question:  
42. Does Brazil have a national strategy in place to ensure the economic empowerment and full 
participation in trade of rural women and women in the agricultural sector, and Indigenous peoples?  
Reply:  
The participation of women in Brazilian agriculture is on the rise, as exemplified by the following 
data: in Brazil, more than 1.5 million women declared themselves as heads of a rural enterprise, 
according to data from the last agricultural census carried out by the Brazilian Institute of Geography 
and Statistics - IBGE. The figures indicates a 6% growth in leadership positions over a 
11-year period, jumping from 12.6% in 2006 to 18.6% in 2017. According to the Getúlio Vargas 
Foundation (FGV), women  account for 34% of leadership roles on farms, an unprecedented level 
that should not slow down in the next harvests. A survey prepared by the Food Acquisition 
Program  (PAA) and recently published by the National Supply Company (Conab) indicates that, 
in 2019, female participation in family farming broke a record. With regard to indigenous producers, 
in Brazil they can be considered small producers or family farmers and, in this way, they are eligible 
for obtaining benefits of PRONAF.  
 
Page 41, paragraphs 4 .107-4.108  
It is noted that bioenergy and biofuels are playing a key role in Brazil's pursuit of sustainable 
development and climate change mitigation, through the development of policies such as the 
Brazilian Biofuels Policy (RenovaBio), and that Brazil i s working towards the creation of an 
international market for biofuels.  
 
Question:  
43. Is Brazil considering any further measures to encourage the long -term and sustainable 
production and use of biofuels in the transport matrix, and to create an international market for 
such biofuels?  
Reply:  
In addition to the Brazilian Biofuels Policy (RenovaBio), there are other important programs to 
encourage the long -term and sustainable production and use of biofuels in the transport matrix.  
The Fuel of the Future Program,  established by CNPE Resolution No. 7, of 20  April 2021, is an 
important program designed to enshrine Brazil's competitive potential and differentials. It seeks to 
increase the use of sustainable low -carbon fuels, encouraging the development of national vehicle 
technologies. One of its guidelines is to int egrate public policies related to the Program, like the 
"Rota 2030, Vehicle Emissions Control Program " (Proconve), and the "Brazilian Vehicle Labeling 
Program " (PBE).  
In addition, the Rota 2030 Program, established by Law No. 13,755, on 10 December  2018, i s part 
of the strategy aimed at sustainable mobility. The program seeks, through tax incentives, to support 
technological development and innovation in the automotive industry in exchange for the 
development of safer, more economical, and less polluting ve hicles. This program also defines 
energy efficiency targets to be achieved by motor vehicle manufacturers.  
Along these lines, the Vehicle Emissions Control Program (Proconve), established by Conama 
Resolution nº 18, of 6 May  1986, is a program instituted b y the National Environment 
Council  (Conama) that aims to improve the air quality in Brazil through the requirement to 
manufacture and sell vehicles that meet increasingly restrictive emission limits.  
However, the targets set out in Route 2030, for example,  do not take into account environmental 
efficiency in terms of mitigating emissions; they only consider the reduction of energy WT/TPR/M/432/Add.1  
 
- 42 - 
 
consumption.The creation of targets for the sector that cover the complete life cycle of the product 
is being assessed.  
Another example is the Brazilian Vehicle Labeling Program (PBE), which only assesses exhaust 
emissions (tank to wheel). The challenge here is that this Program considers that electric vehicles 
do not emit carbon, regardless of the source of electricity generation.  In this context, one of the 
proposals under development is the integration of RenovaBio with the PBE, thus providing a complete 
life cycle analysis so that the consumer can make the appropriate decision in light of the 
transparency of the real environment al impact caused by his/her choice.  
As can be seen, the Fuel of the Future Program signals the importance of being clear about the 
intended objectives and expected results with energy policies.  
  WT/TPR/M/432/Add.1  
 
- 43 - 
 
  CANADA - FOLLOW -UP QUESTIONS  
With  respect  to Brazil 's answer  to Canada 's question  no. 4 
Follow -up question:  
Could  Brazil  confirm  whether  this indicates  that imported  goods  from a non-MERCOSUR  Member  
would  be subject  to the CET multiple  times  if they are shipped  through  the territory  of multiple  
MERCOSUR  Membe rs? 
REPLY :  
Yes, because  the elimination  of double  CET charges  has not been implemented  yet. 
With  respect  to Brazil 's answer  to Canada 's question  no. 11 
Follow -up questions:  
Could  Brazil  clarify  whether  imports  could  be subject  to tariffs  higher  than Brazil 's bound  rate if 
importers  do not specifically  request  the application  of the bound  rate where  the CET is higher?  
Could  Brazil  clarify  which  of its tariff lines still have applied  rates higher  than its bound  rates?  
REPLY :  
Gecex  Resolution  391 (23 August 2022)  adressed  the mentioned  subject  concerning  48 tariff lines,  
indistinctly  to WTO membership  and requesting.  
Moreover,  Brazilian  government  culminated  technical  work to grant  similar  treatment  to a small 
remaining  subset  of goods  whose  tariffs  were consolidated  as "Ex", without  direct  correspondence  
by tariff line aggregation.  A GECEX  Resolution  regarding  this issue is expected  to be published  in the 
coming  months.  
With  respect  to Brazil 's answer  to Canada 's question  no. 12 
Follow -up question:  
Could  Brazil  clarify  how procedures  differ depending  on the origin  of the good and whether  this 
results  in any preference  for domestic  goods  compared  to imported  goods  under  this scheme?  
REPLY :  
The eligibility  or receipt  of loans from BNDES  is not affected  by the use of domestic  or imported  
goods.  Items  produced  in Brazil  with a previously  known  reference  of local content  are eligible  for 
financing  in a more automatic  way. Mirroring  evolving  market  supply  conditions,  new technologies  
and production  lines develo ped may qualify  to more automatic  procedures  as well. Products  that do 
not meet such reference  may also benefit  from the programs  subject  to a less automatic  procedure.  
  WT/TPR/M/432/Add.1  
 
- 44 - 
 
MEXICO  
PREGUNTAS EN RELACIÓN AL INFORME DE LA SECRETARIA (WT/TPR/S/432)  
3 POL ÍTICAS Y PR ÁCTICAS COMERCIALES, POR MEDIDAS  
 
3.1.3.1 Aranceles NMF aplicados  
Página 70 (párrafo 3.26)  
3.26. Durante el per íodo objeto de examen, el Brasil elimin ó los derechos de importaci ón sobre 
determinados productos aeron áuticos (40 l íneas arancelarias, incluidas 18 l íneas con reducciones 
temporales). En respuesta a la pandemia de COVID -19, el Brasil redujo a cero los derechos de 
importaci ón NMF sobre determinados equipos m édicos y de protecci ón entre el 18 de marzo de 2020 
y el 31 de diciembre de 2022. 29 En noviembre de 2021, con el fin de reducir el impacto econ ómico 
de la pandemia, el Brasil tambi én redujo temporalmente a cero los derechos de importaci ón 
aplicados a la mayor ía de las l íneas arancelarias sujetas a un tipo del 2%  y redujo en un 10% los 
tipos aplicados a la mayor ía de las dem ás líneas sujetas a derechos. Esa reducci ón temporal deb ía 
permanecer en vigor hasta el 31 de diciembre de 2022.30 El 1 de junio de 2022 entr ó en vigor una 
reducci ón adicional del 10%, q ue comprend ía 6.195 l íneas arancelarias, y se prorrog ó la validez de 
la reducci ón temporal anterior hasta el 31 de diciembre de 2023.31 A 1 de julio de 2022, el promedio 
aritm ético de los aranceles NMF aplicados por el Brasil era del 9.4% y los tipos medios aplicados a 
los productos agr ícolas y no agr ícolas (definici ón de la OMC) eran del 8.8% y el 9.6%, 
respectivamente.  
 
Pregunta:  
1. ¿Podría proporcionar Brasil más información referente a si se planean extender por otro 
periodo las reducciones aran celarias temporales en respuesta a la pandemia de COVID -19? 
 
Respuesta:  
A la luz de la evolución de las circunstancias epidemiológicas de la pandemia, el gobierno brasileño 
evaluará la eventual prórroga de las reducciones arancelarias temporales en respues ta a la pandemia 
de COVID -19 o de subconjunto de las medidas que permanezcan necesarias.  
 
3.1.3 Aranceles  
Página 71 (párrafos 3.28 y 3.29)  
3.28. De conformidad con las normas del MERCOSUR, el Brasil mantiene una serie de exenciones 
del AEC temporales y uni laterales. Tres mecanismos del MERCOSUR para la concesi ón de esas 
exenciones se vienen aplicando desde hace mucho tiempo en el Brasil: la lista b ásica de exenciones 
nacionales, las listas de exenciones para equipos de inform ática y telecomunicaciones y para bienes 
de capital y los contingentes para los aranceles m ás bajos.32 Las últimas modificaciones arancelarias 
del Brasil en el marco de esos mecanismos entraron en vigor el 1o de abril de 2022.33  
3.29. Sesigueaplicandounl ímitede100l íneasdelaNCMala listab ásicadeexencionesnacionales del Brasil, 
que tiene por objeto atenuar las dificultades derivadas de la entrada en vigor del AEC del MERCOSUR. 
Las modificaciones de la lista no pueden afectar a m ás del 20% de todas las l íneas consignadas 
durante un período semestral. En abril de 2022, las exenciones previstas por el Brasil con arreglo a 
este mecanismo se refer ían a 95 l íneas de la NCM.34 El plazo fijado para la eliminaci ón de la lista 
básica de exenciones nacionales del Brasil se ha prorrogado h asta el 31 de diciembre de 2028.35  
 
Pregunta:  
2. ¿Podría Brasil indicar los productos que abarca la lista de exenciones unilaterales y nacionales, 
prorrogado hasta el 31 de diciembre de 2028?  
 
Respuesta:  
La Lista Nacional de Excepciones de Brasil y demás excepciones nacionales al Arancel Externo Común 
de MERCOSUR son actualizadas continuamente y sus versiones más recientes están disponibles en 
el sitio web del Ministerio de Economía de Brasil, en la siguiente dirección:  
https://www.gov.br/produtividade -e-comercio -exterior/pt -br/assuntos/camex/estrategia -
comercial/listas -vigentes . 
 
3.1.3.2 Consolidaciones  
Página 72 (párrafo 3.35)  
3.35. En abril de 2022, los tipos aplicados a 90 l íneas arancelarias (frente a 134 en 2017) superaban, 
a veces parcialmente (debido a diferencias en los niveles de agregaci ón), las consolidaciones del WT/TPR/M/432/Add.1  
 
- 45 - 
 
  Brasil. Las autoridades indican que, en todos estos caso s, los importadores pueden solicitar la 
aplicaci ón del tipo consolidado.  
 
Pregunta:  
3. ¿Podría Brasil proporcionar mayor detalle sobre las razones por las cuales sus aranceles 
aplicados son mayores a los consolidados? Esta situación es permanente? Estas medidas son 
notificadas a la OMC?  
 
Respuesta:  
La situación informada se relaciona a los casos de bienes cuyos niveles arancelarios del Arancel 
Externo Común del Mercosur (CET) son mayores que los niveles consolidados por Brasil en la OMC. 
De toda manera, es garantizado a los importadores solicitar la aplicación de las alícuotas 
consolidadas e n caso de importaciones de Miembros de la Organización.  
Es importante recalcar que con la publicación de la Resolución Gecex ° 391, de 23 de agosto 2022, 
se redujo sustancialmente los casos sujetos a tal hipótesis, considerando que se incorporó el nivel 
consolidado en la OMC como arancel general aplicable en las líneas arancelarias pertinentes.  
Asimismo, el gobierno de Brasil informa que está culminando los trabajos con vistas a conferir 
tratamiento similar para un modesto subconjunto remanente de bienes cu yos aranceles fueran 
consolidados como "Ex", sin correspondencia directa en agregación por línea arancelaria.  
 
3.1.3.3 Preferencias  
Página 73 (párrafo 3.38)  
3.38. La mayor ía de las listas arancelarias preferenciales aplicadas por el Brasil se han estable cido 
en la nomenclatura de la ALADI, mientras que sus aranceles aplicados se han establecido en la NCM 
y se actualizan peri ódicamente a la versi ón más reciente del SA. La ausencia de una versi ón com ún 
de la nomenclatura impide realizar comparaciones s ignificativas entre los diferentes acuerdos 
preferenciales y entre estos y el Arancel NMF aplicado actualmente.43 En 2021, la Comisi ón de 
Comercio del MERCOSUR estableci ó un Comit é Técnico Permanente encargado de actualizar las listas 
de preferencias d e los acuerdos con terceros a la versi ón actual de la NCM.44.  
 
Pregunta:  
4. ¿Podría Brasil indicar dónde se podría revisar u obtener las listas actualizadas de las 
preferencias de los acuerdos comerciales con terceros?  
 
Reply:  
Brazil launched in 2020 a ne w tool for information on trade agreements, and is comprised of two 
webpages within Siscomex Web Portal: Trade Agreements ( https://www.gov.br/siscomex/pt -
br/informacoes/acordo s-comerciais ) and Tariff Preferences ( https://www.gov.br/siscomex/pt -
br/informacoes/acordos -comerciais/preferencias -tarifarias ). 
Both web pages are use r friendly and are completely updated.  
 
3.1.6 Medidas antidumping, compensatorias y de salvaguardia  
Página 79 (párrafo 3.58)  
3.58. Desde el anterior examen del Brasil, la estructura institucional de las medidas comerciales 
correctivas sufrió una transform ación, que dio lugar al traspaso de las responsabilidades de las 
evaluaciones del interés público al Departamento de Defensa Comercial (DECOM) de la SECEX a 
partir del 30 de enero de 2019. En consecuencia, el DECOM pasó a denominarse Subsecretaría de 
Defen sa Comercial e Interés Público (SDCOM). Además de las responsabilidades de interés público 
que ha asumido recientemente, la SDCOM se sigue ocupando de realizar las investigaciones en 
materia de derechos antidumping, compensatorios o de salvaguardia (esto e s, de la recopilación y 
el análisis de los datos correspondientes). El proceso de adopción de decisiones sobre la aplicación, 
la modificación y la suspensión de las medidas comerciales especiales, así como sobre la situación 
del mercado de la economía expo rtadora, siguen siendo competencia del Consejo de Ministros de la 
Cámara de Comercio Exterior (CAMEX), que toma en consideración las recomendaciones de la 
SDCOM. La CAMEX puede imponer derechos provisionales sobre las importaciones a partir de la 
fecha de la determinación preliminar.  
 WT/TPR/M/432/Add.1  
 
- 46 - 
 
Preguntas:  
5. ¿Podría indicar cuál es el procedimiento aplicable para evaluar el interés público?  
 
Reply:  
Since January 2019, the public interest in trade defense has been evaluated in Brazil by the 
Undersecretariat for Trade Remedies and Public Interest (SDCOM), within the Secretariat of Foreign 
Trade (SECEX) of the Ministry of Economy. The procedure is currently governed by SECEX Ordinance 
No. 13/2020. According to the regulations in force, in the event of an original investi gation of 
dumping or subsidies, the public interest assessment is mandatory and initiated at SDCOM 
concomitantly with the publication of the SECEX act initiating the original investigation of dumping 
or subsidies. Subsequently, together with the publicatio n of the preliminary determination prepared 
within the scope of an original investigation of dumping or subsidies, SDCOM also presents its 
preliminary conclusions on the public interest assessment, which will support the decision on whether 
or not to apply  provisional duties. Likewise, concomitantly with the final determination prepared 
within the scope of the original investigation of dumping or subsidies, SDCOM will present its final 
conclusions regarding the public interest assessment, which will support  the final decision of the 
competent authority. In cases of sunset reviews of anti dumping or countervailing measures, the 
public interest assessment is optional, carried out by means of a claim submitted based on a duly 
completed Public Interest Questionn aire, or ex officio, at SDCOM's discretion. The opportunity for 
interested parties to submit a Public Interest Questionnaire begins with the publication of the SECEX 
act that initiate the sunset review of antidumping or countervailing measures. Interested parties in 
the public interest assessment process are those that may be affected by the decision to apply trade 
remedies. It should be noted, however, that the initiation of a public interest assessment is not 
allowed in sunset reviews if the claim is subm itted exclusively by foreign producers or exporters or 
any of their parties and/or by foreign governments not cooperating with the ongoing sunset review. 
SDCOM publishes its preliminary conclusions together with the publication of the SECEX act 
containing the deadlines for the sunset review or, if applicable, the preliminary determination 
opinion. In this case, however, the public interest analysis will only be carried out if SDCOM considers 
the existence of sufficient elements of public interest. If the pu blic interest assessment has been 
initiated at the sunset review of anti -dumping or countervailing measures, similarly to what occurs 
in the original investigations of dumping or subsidies, SDCOM will present its final conclusions 
regarding the public inte rest assessment, which will support the final decision of the competent 
authority. Current regulations for public interest allow SDCOM to recommend the non -application of 
provisional anti -dumping or countervailing duties, in its preliminary conclusions, as  well as the 
suspension or reduction of definitive anti -dumping or countervailing duties, in its final 
determinations, for reasons of public interest.  
More information can be found in the Consolidated Public Interest Assessment Guide, available in 
Portugue se and English at the following electronic address: https://www.gov.br/produtividade -e-
comercio -exterior/pt -br/assuntos/comercio -exterior/defesa -comercial -e-interesse -publico/guias . 
 
6. ¿Podría describir en qué consiste el análisis que se realiza para evaluar el interés público?  
 
Reply:  
The public interest assessment seeks to answer the following question: does the imposition of the 
trade remedy measure impact the supply of the product under analysis in the domestic market in a 
way that significantly harms the dynamics of the national mar ket (including the upstream and 
downstream links and the industry itself), in terms of price, quantity, quality and variety, among 
others? The public interest assessment in Brazil is currently carried out in two phases: preliminary 
and final. The prelimina ry assessment takes into account the following key elements: (1) 
characteristics, production chain and market of the product under analysis; (2) international offer of 
the product under analysis; and (3) national offer of the product under analysis. For th e final 
evaluation, in addition to deepening the elements of the preliminary analysis, the following additional 
criterion is also analyzed: (4) impacts of the trade remedy measure on the dynamics of the domestic 
market.  
More information can be found in th e Consolidated Public Interest Guide, available in Portuguese 
and English at the following electronic address: https://www.gov.br/produtividade -e-comercio -
exterior/pt -br/assuntos/comercio -exterior/defesa -comercial -e-interesse -publico/guias . 
 
Página 80 (párrafo 3.61)  
3.61. El Brasil ha presentado regularmente informes semestrales sobre las medidas antidumping y 
compensatorias a los comités competentes de la OMC. A finales de diciembre de 2021 había 149 
medidas antidumping definitivas (incluidos 3 compromisos en materia  de precios y 6 prórrogas WT/TPR/M/432/Add.1  
 
- 47 - 
 
  antielusión) en vigor en el país, frente a las 179 medidas (incluidos 9 compromisos en materia de 
precios y 9 prórrogas antielusión) vigentes a finales de diciembre de 2017 (cuadro 3.6). Durante el 
período 2017 -2021, tres investig aciones en materia de derechos compensatorios dieron lugar a 
resoluciones definitivas con imposición de derechos, una de las cuales se suspendió por motivos de 
interés público. Durante ese período no se aplicaron medidas de salvaguardia en el Brasil. A fin ales 
de 2021, 113 medidas comerciales correctivas llevaban más de cinco años en vigor en el Brasil. 
Según las autoridades, la proporción de las importaciones totales de mercancías del Brasil afectadas 
por medidas comerciales correctivas fue del 1.14% en 20 17, del 1.04% en 2018, del 1.02% en 
2019, del 1.08% en 2020 y del 1.09% en 2021.  
 
Cuadro 3.6 Medidas comerciales correctivas, 2017 -2021 
 2017 2018 2019 2020 2021 
… 
Medidas suspendidas por motivos de interés público  0 7 3 4 1 
Medidas impuestas por motivos de interés público a 3 0 4 1 0 
a Medidas que se apartan de las recomendaciones de la investigación correspondiente por motivos de 
interés público.  
Preguntas:  
Brasil indica que una de las investigaciones en materia de derechos compensatorios fue suspendida 
por motivos de interés público, además de que durante el período examinado no se aplicaron 
medidas de salvaguardia. Después, en el cuadro 3.6 refiere 15 distintas medidas comerciales 
suspendidas por los mismos motivos  y, asimismo, señala diversas medidas comerciales impuestas 
por cuestiones de interés público. Al respecto:  
 
7. ¿Podría aclarar si las medidas suspendidas señaladas en el cuadro 3.6 incluyen a la medida 
compensatoria referida en el párrafo 3.61?  
 
Reply:  
Yes, the countervailing measure mentioned in paragraph 3.61 is included among the measures that 
have been suspended in the public interest of the Table 3.6.  
 
8. ¿Las medidas que fueron suspendidas por motivos de interés público corresponden a medidas 
que ya se encontraban vigentes o se suspendieron antes de aplicarse? En caso de ser medidas que 
se encontraban vigentes, ¿podría explicar cómo es el procedimiento para determinar su suspensión 
por interés público?  
 
Reply:  
Under Brazilian law, public interest asse ssments are mandatory in original dumping or CVD 
investigations and may result in the suspension of the right immediately after its application. It is 
also possible to conduct a public interest assessment while conducting an sunset review. In such 
cases, t he duty may be suspended shortly after its extension.  
In exceptional situations, a public interest assessment related to a measure in force may be opened, 
provided that the minimum period of one year of application or of the last extension of the anti -
dump ing or compensatory measure is fulfilled and that there is proof, through evidence, of the 
occurrence of exceptional supervening fact. It may be considered an exceptional supervening fact, 
among other factors, the proven permanent interruption of the produ ction of the domestic industry 
of the product under analysis or the production in negligible volume to supply the Brazilian market.  
The opening of an exceptional public interest assessment will not be allowed through a claim 
submitted exclusively by foreign producers or exporters or any of their related parties and/or by 
foreign governments that have not collaborated with the original investigation of dumping or 
subsidies or with the sunset review of corresponding antidumping or counter vailing measure.  
Currently, three suspensions of trade defense measures are in force for reasons of public interest. 
The anti -dumping duties on imports of textured polyester yarns, when originating in China and India, 
and the countervailing measure on impo rts of hot -rolled products, originating in China, were 
suspended when the measures were imposed in the original investigation. The suspension of the 
anti-dumping duty on imports of disposable syringes, when originating in China, was effective at the 
time o f the last period -end review, completed in June 2021.  
 WT/TPR/M/432/Add.1  
 
- 48 - 
 
9. ¿Podría aclarar si la nota al pie sobre las medidas impuestas por motivos de interés público se 
refiere a que las medidas fueron impuestas a pesar de que el resultado de la investigación efectuada 
no recomendaba su imposición?  
 
Reply:  
Brazilian legislation determines that the public interest assessment will be terminated for loss of 
purpose in case of negative determination of application or extension of antidumping or 
countervailing measure. Thus, i t is not possible to have a situation in which a measure is applied 
even if the trade remedy investigation recommends not applying it. We note that the cases reported 
in table 3.6 and in its footnote refer to measures whose amount of duty was reduced for r easons of 
public interest.  
 
10. ¿Existen criterios específicos por los que la aplicación de una medida deba apartarse de las 
recomendaciones de la investigación correspondiente?  
 
Reply:  
The public interest assessment aims to assess the existence of element s that exceptionally justify 
the suspension or amendment of provisional or definitive anti -dumping and countervailing measures.  
The public interest is present when the impact of the imposition of the antidumping and 
countervailing measure on economic agent s as a whole proves to be potentially more harmful, 
compared to the positive effects of the application of the trade remedy.  
In the assessment, criteria such as the impact on the downstream and upstream chain, the 
availability of substitute products in ori gins not affected by the trade defense measure, as well as 
the structure of the market and competition may be observed.  
In the case of public interest assessments conducted concurrently with sunset reviews preponderant 
consideration will be given to, among  other factors: the temporality of the measure in force; the 
characterization of the product under analysis as an input for the downstream chain; the fact that 
the measure object of the review or any measures that preceded it have already been the object o f 
an assessment that resulted in its suspension or alteration for reasons of public interest.  
We note that these criteria are not an exhaustive list and none of them, alone or together, will 
necessarily be able to provide a decisive indication.  
 
3.2.3 Pro hibiciones, restricciones y licencias de exportación  
Página 83 (párrafo 3.71)  
3.71. En 2018 se puso en marcha un nuevo sistema para la concesi ón de licencias de exportaci ón, 
que tambi én se est á implantando gradualmente para las de importaci ón. Seg ún las autoridades, el 
sistema facilita las operaciones m últiples por licencia y prev é períodos de validez de las licencias 
diferenciados, as í como la posibilidad de que diferentes sucursales de una misma empresa utilicen 
la licencia.  
Pregunta:  
11. ¿Podría Brasil indicar si los productos sujetos a licencias de exportación bajo el nuevo sistema 
de concesión se incluirán en su próxima notificación de restricciones cuantitativas? Lo anterior, 
tomando en consideración que la última notific ación bienal fue para el período 2016 2018)  
 
Reply:  
Los productos sujetos a licencias de exportación bajo el nuevo sistema de concesión se incluirán en 
su próxima notificación de restricciones cuantitativas.  
  WT/TPR/M/432/Add.1  
 
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  MEXICO  - FOLLOW -UP QUESTIONS  
PREGUNTAS  EN RELACIÓN  AL INFORME  DE LA SECRETARIA  (WT/TPR/S/432)  
3 POLÍTICAS  Y PRÁCTICAS  COMERCIALES,  POR MEDIDAS   
3.3.4.1  Política de competencia   
Página  100 (Párrafo  3.142)   
3.142.  Desde  2017,  el CADE  ha investigado  varios  casos  de conductas  unilatera les en el sector  del 
transporte.  Tambi én ha investigado  la manipulaci ón de licitaciones  en la contrataci ón pública de 
obras  de construcci ón y servicios  externalizados,  así como  los cárteles  en los mercados  de la 
construcci ón y la fabricaci ón de automóviles. Durante  este período, con el fin de contribuir  a 
las reformas  de la reglamentaci ón, el CADE  (en colaboraci ón con la OCDE)  llevó a cabo  un 
examen  del marco  de contrataci ón pública  a nivel  federal  del Brasil  y puso  en marcha  una 
evaluaci ón de las políticas  públicas  por las que se rigen  los puertos  y la aviaci ón civil.  
Preguntas:  
1. ¿Cuáles son los efectos jurídicos de las evaluaciones de políticas públicas 
realizadas por el CADE?  
RESPUESTA:  
CADE  hace varios  estudios  y evaluacion es de sectores  y de políticas  públicas  dentro  de un papel  
llamado  de abogacía  de la competencia.  Es el Departamento  de Estudios  Económicos  el principal  
responsable  por esa función  en la autoridad  de competencia  brasileña.   
Las actividades  de abogacía  de la competencia  del CADE  incluyen  una amplia  gama  de tareas,  que 
van desde  la preparación  de estudios,  la emisión  de opiniones  técnicas  siempre  que se soliciten,  la 
publicación  de directrices  sobre  aspectos  importantes  que se han sometido  al tribunal  y la 
organización  de varios  eventos  para difundir  la cultura  de la competencia.  
A pesar  de no ser vinculantes,  todo ese material  tiene un importante  impacto  de dar más 
previsibilidad  y orientación  para los agentes  económicos  y la sociedad  en general.  Como  ejemplo  
práctico  de la efectividad  y de la importancia  de esa actuación  citamos  el caso de abogacía  de la 
competencia  en el periodo  de la pandemia,  cuando  estudios  del departamento  económico  del CADE  
demostraran  los efectos  nocivos  de propuestas  legislativas  que mencionaban  diferentes  formas  de 
intervención  en los precios,  como:  congelación  de los precios  de los medicamentos;  imposición  de 
descuentos  en las matrículas  escolares;  control  de los precios  de los insumos  esenciales  para los 
servicios  sanitarios;  regulac ión del importe  de las tasas pagadas  por los conductores  a las 
aplicaciones  de transporte  de pasajeros.  Estas  propuestas  pretendían,  en teoría,  satisfacer  la 
necesidad  de los grupos  directamente  afectados  por la reducción  de la actividad  económica  debida  
a la pandemia  de Covid -19. 
Los estudios  de CADE  evidenciaran  los principales  efectos  negativos  que podrían  producir  las 
propuestas  de intervención  en la economía  a través  de controles  de precios:   
- Reducción  de la oferta  de productos  con riesgo  de desabast ecimiento,  en caso de que se produjera  
un incremento  de costes  sin posibilidad  de repercutir  los precios  a los consumidores;  
- La imposición  de controles  de precios  implica  la organización  de un sistema  de vigilancia  del 
comportamiento  de los agentes  econó micos,  lo que se traduce  en elevados  costes  sociales;  
- La intervención  sobre  los precios  afecta  a la percepción  de los agentes  económicos  sobre  las 
condiciones  reales  de la oferta  y la demanda.  Esta incertidumbre  reduce  los incentivos  a la inversión  
y a la entrada  de nuevas  empresas  en el mercado;  
- Los efectos  negativos  sobre  la competencia  y sobre  las inversiones  mencionados  se traducirán  en 
una disminución  de la calidad  de los productos  y servicios  en los mercados  afectados,  así como  en 
una reducción  de la introducción  de innovaciones.  WT/TPR/M/432/Add.1  
 
- 50 - 
 
Como  resultado  del análisis  de CADE  la mayoría  de esas propuestas  no fueron  aprobada,  y se pudo 
evitar  importantes  efectos  nocivos  en la economía.   
Con respecto  a las evaluaciones  realizadas  por la OCDE  para el CADE  mencio nadas  arriba,  hubo 
importantes  recomendaciones  y directrices  para los sectores  analizados.  
El documento  "Combate  a carteles  en licitaciones  en Brasil:  una revisión  de las compras  públicas  
federales ", primeramente,  presenta  recomendaciones  para mejorar  la prevención  y detección  de 
carteles  en compras  públicas,  de acuerdo  con las recomendaciones  y directrices  de la OCDE.   
Entre  las principales  recomendaciones,  el informe  destaca  la necesidad  de fortal ecer a los agentes  
de compras  públicas.  Muchas  investigaciones  de carteles  en licitaciones  se inician  tras denuncias  de 
agentes  de compras  públicas,  que están  en primera  línea de los procesos  de licitación  y en mejor  
posición  para detectar  conductas  sospec hosas.  Además,  los agentes,  que disponen  de conocimiento  
y flexibilidad  para planificar  y elaborar  los anuncios  de contratación  de manera  estratégica,  tienen  
mayor  probabilidad  de adoptar  iniciativas  que incrementen  la competencia  y reduzcan  los riesgos  de 
carteles  en licitaciones.  El informe  también  evidencia  la necesidad  de maximizar  la participación  de 
los licitadores  en el proceso  de compra  pública,  informarse  sobre  el mercado,  fortalecer  la promoción  
de la abogacía  de la competencia  y mejorar  las acciones de detección  y punición.   
Con relación  a la evaluación  de los sectores  de puertos  y de aviación  civil, también  fue realizada  pela 
OCDE.  Según  el documento,  el incremento  de la competencia  favorece  la entrada  de empresas  y 
profesionales  en el mercado,  lo que estimula  las inversiones  y, en última  instancia,  la creación  de 
empleo.  Otro punto  debatido  es la aplicación  de un marco  reglamentario  favorable  a la competencia  
para que las organizaciones  sepan  evitar  costes  innecesarios  y que permita  la flexibilid ad durante  el 
período  posterior  a la pandemia.  Al final, estos informes  presentaron  recomendaciones  que pueden  
mitigar  los daños  observados.  Las conclusiones  de los informes  sobre  los sectores  de puertos  y 
aviación  civil, teniendo  en cuenta  el proceso  de accesión  de Brasil  a la OCDE,  permiten  introducir  
más competencia  en la economía  y promover  un crecimiento  sostenible.  
Esos estudios  realizados  pela OCDE  y sus recomendaciones  son importantes  para destacar  algunos  
puntos  que pueden  ser perfeccionados  por Brasil  según  las mejores  prácticas  internacionales  
propugnadas  por la organización.  Las importancias  de las recomendaciones  son aún más importantes  
nel presente  contexto  de accesión  del país a la OCDE.   
2. ¿Las opiniones  que emite  el CADE sobre  las reformas  de reglamentaciones  o sobre  
políticas  públicas  son vinculantes?  
RESPUESTA:  
Para que opiniones  emitidas  por organismo  público  sean vinculantes,  es necesario  que haya expresa  
determinación  legal.  Las opiniones  de la Abogacía  General  de la Unión,  que se someten  a la 
aprobación  del Presidente  de la República,  son vinculantes  para toda la Administración  Pública  
Federal  (Ley Complementar  73/93,  artículo  40.1).  La Ley 12.529/2011  (Ley de Defensa  de la 
Competencia)  no determina  que opiniones  emitidas  por el CADE  sean vinculantes.  
3. ¿Existen  plazos  para que el gobierno  acate  las recomendaciones  emitidas  por la 
CADE  u obligación  de informar  sobre  las razones  por las que no se aplican  dichas  
recomendaciones?  
RESPUESTA:  
El CADE  ejerce  activamente  la abogacía  de la competencia.  Estudios  realizados  por el Departamento  
de Estudios  Económicos  del CADE  han abordado  los mercados  de petróleo  y gas, transporte  por 
cabotaje,  telecomunicaciones,  medicamentos,  entre otros.  El CADE,  por ejemplo,  ha presentado  
subsidios  para la toma de decisiones  de los legisladores  en la regulación  de los servicios  de 
transporte  privado  de pasajeros  remunerado.  Como  parte de este esfuerzo,  el CADE  instituyó  
recientemente  la Coordinación  de Estudios  de Mercados  y Abogacía  de la Competencia  (Resolución  
28/2020,  artículo  1.III.b.3).  La Ley 12.529/2011  no establece  al gobierno  plazos  ni obligación  de 
informar  sobre  las razones  por las que no se aplican  recomendaciones  del CADE  en el ámbito  de la 
abogacía  de la competencia.  
 WT/TPR/M/432/Add.1  
 
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  Página  100 (Párrafo  3.143)   
3.143.  En el marco  de su programa  de clemencia,  el CADE  puede  concluir  acuerdos  de cese y 
desistimiento  con las empresas  investigadas.  La conciliaci ón suspende  la investigaci ón por el CADE  
a condici ón de que, en un plazo establecido,  se cumplan  determinados  compromisos,  como  el pago 
de multas  de menor  cuant ía. Los acuerdos  de conciliaci ón no son examinados  por los tribunales  
brasile ños, y no se hace constar  la existencia  de una infracci ón en los casos  no relacionados  con 
cárteles.  Durante  el período objeto  de examen,  el CADE  concluy ó un número considerable  de 
acuerdos  de cese y desistimiento,  aunque  las cifras  anuales  indican  una tendencia  descendente  
(cuadro  3.16).   
Preguntas:  
4. ¿Qué  factores  se han identificado  como  causa  del descenso  en solicitudes  de 
terminación  anticipada  por parte  de empresas  que infringen  la ley de competencia?  
RESPUESTA:  
Los estudios  de CADE  demuestran  que no hubo necesariamente  disminución  de la cantidad  de 
acuerdos,  sino de las contribuciones  financier as como  resultado  de los acuerdos  de conciliación.  El 
valor de las contribuciones  financieras  cambia  constantemente  en función  de inúmeras  otras 
variables,  como  el tipo de infracción,  el mercado  en cuestión,  la duración  de la conducta  bajo análisis  
y la manera en que la parte  contribuyó  con las investigaciones.  
5. ¿Existe  la posibilidad  de que terceras  personas  afectadas  por las conductas  
anticompetitivas  acudan  ante tribunales  para demandar  la reparación  de daños?  
RESPUESTA:  
En la Ley 12.529/2011,  está prevista  la posibilidad  de que terceras  personas  afectadas  por las 
conductas  anticompetitivas  acudan  ante tribunales  para demandar  la reparación  de daños:  "Los 
perjudicados,  por si o por los legitimados  mencionados  en el art. 82 de la Ley 8.078,  del 11 de 
septiembre  de 1990,  podrán  ingresar  en juicio  para, en defensa  de sus intereses  individuales  o 
individuales  homogéneos,  obtener  el cese de prácticas  que constituyan  infracción  del orden  
económico,  así como  el recibimiento  de indemnización  por pérdidas  y daños  sufridos,  
independientemente  de investigación  o procedimiento  administrativo,  que no será suspendido  en 
virtud  de la acción  judicial " (artículo  47). 
La Ley 14.470/2022  también  introdujo  importantes  modificaciones  en la Ley 12.529/2011  para 
incentivar  la acción  privada  de personas  afectadas  por conductas  anticompetitivas.  Entre  otras 
cosas,  prevé  la doble  indemnización,  es decir,  el pago del doble  de daños  y perjuicios  por las pérdidas  
sufridas  por terceros  como  consecuencia  de infracciones  contra  el orden  económico.   
6. ¿Las instancias  judiciales  pueden  ordenar  el acceso  a los expedientes  relacionados  
con acuerdos  de conciliación,  en el marco  de demandas  privadas  por daños  causados  por 
prácticas  anticompetitivas?  
RESPUESTA:  
La Resolución  n. 21/2018  del CADE  establece  directrices  para conceder  acceso  a los documentos  de 
su investigación  sobre  terceros/reclamantes  de acciones  de daños  por conductas  anticompetitivas.   
Como  regla general,  el CADE  busca  proteger  sus investigaciones,  clemencia  y acuerdos  de 
transacción  determinando  que, durante  su investigación  y antes  de su decisión  final, los documentos  
y pruebas  se mantengan  confidenciales.  Sin embargo,  el Cade tiene la obligación  de prestar  
información  en cualquier  momento,  inclus o en relación  con documentos  derivados  de acuerdos  de 
conciliación,  si existe  orden  judicial  en tal sentido  
Después  de que el CADE  emita  una decisión  final, todos  los documentos  deben  hacerse  públicos,  
excepto  la información  que la ley considera  confidenci al, como  los secretos  comerciales  y la 
información  que podría  dar lugar a desventajas  competitivas.  
 WT/TPR/M/432/Add.1  
 
- 52 - 
 
Página  100 (Párrafo  3.145)   
3.145.  Durante  el período objeto  de examen,  el Brasil  sigui ó fortaleciendo  y formalizando  
sus iniciativas  de cooperaci ón internacional  en materia  de política de competencia.  En 
junio  de 2022,  el CADE  tenía 21 acuerdos  de cooperaci ón técnica  no vinculantes  con 
autoridades  extranjeras  encargadas  de la competencia  y organizaciones  internacionales . 
Adem ás de desempe ñar un papel destacado  en el debate  sobre  cuestiones  antimonopolio  en el marco  
del MERCOSUR,  el Brasil  tambi én participa  activamente  en foros internacionales  sobre  política de 
competencia,  como  la Red Internacional  de Competencia,  la Conferencia  Internacional  de los BRICS  
sobre  Competencia  y la Alianza  Interamericana  de Defensa  de la Competencia.   
Preguntas:  
7.  ¿Qué  tipo acciones  de cooperación  internacional  se realizaron  al amparo  de los 
acuerdos  internacionales  cooperación  técnica  durante  el periodo  examinado?  
RESPUESTA:  
Las acciones  de cooperación  internacional  bilateral  han incluido  actividades  con autoridades  de 
competencia  nacionales,  por medio  incluso  de e-mails y telefonemas  en los cuales  hay el intercambio  
de experiencias  y puntos  de vista con respecto  a casos  específicos  y también  sobre  la forma  de 
tentar  solucionar  problemas  prácticos  en el curso  de investigaciones,  en el marco  de varias  iniciativas  
para solucionar  casos  con dimensión  internacional,  contribuyendo  para el intercambio  de informa ción 
no confidencial  y experiencia  de tópicos  específicos.  Una parte significativa  de la cooperación  
internacional  multilateral  ha ocurrido  en el ámbito  de comités,  grupos  de trabajo,  conferencias  de la 
OCDE.  Estos  foros posibilitan  una oportunidad  para la discusión  de varios  temas  de competencia  y 
de intercambio  de experiencias  entre  los Estados  Miembros.  La OCDE  es una plataforma  única  en 
términos  de experiencia  y conocimiento.  Una parte importante  de la cooperación  internacional  
involucra  la participació n en organismos  internacionales  como  la ICN. El CADE  ha participado  de 
forma  consistente  de conferencias  internacionales,  oficinas  y seminarios  de derecho  de la 
competencia.  Estos  acontecimientos  han permitido  desarollar  el conocimiento  de los expertos  del 
CADE,  que presentan  regularmente  contribuciones  significativas  en eventos  internacionales.  
Em 2021,  57 acciones  de cooperación  internacional  bilateral  y 50 acciones  de cooperación  
internacional  multilateral  han sido realizadas.2 
8. ¿Existen  tratados  de libre comercio  de los que Brasil  sea Parte  y en los que se 
incluyan  disposiciones  en materia  de competencia  económica?  En caso afirmativo,  ¿los 
tratados  de libre comercio  incluyen  disposiciones  en materia  de control  de 
concentraciones  económicas?  
RESPUESTA:  
El Protocolo de Defensa de la Competencia del Mercosur dispone respecto a la competencia 
económica. En su artículo 7, está previsto: "Los Estados Partes adoptarán, para fines de 
incorporación a la normativa del Mercosur y dentro del plazo de dos años, nor mas comunes para el 
control de los actos y contratos, de cualquier forma manifestados, que puedan limitar o de cualquier 
forma perjudicar la libre competencia o resultar en dominio del mercado regional relevante de bienes 
y servicios, inclusive aquéllos qu e resulten en concentración económica, con vistas a prevenir sus 
posibles efectos anticompetitivos en el ámbito del Mercosur ". 
  
 
2 Conselho Administrativo de Defesa Econômica (Cade). Relatório Integrado de Gestão, p. 17. Fuente : 
https://cdn.cade.gov.br/Portal/acesso -a-
informacao/auditorias/2021/Relat%C3%B3rio%20Integrado%20de%2 0Gest%C3%A3o%202021_2.pdf . 
Acceso: 05/12/2022 . WT/TPR/M/432/Add.1  
 
- 53 - 
 
  ISRAEL  
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.1 WTO  
2.3.1.1 Features  
2.30 Brazil has continued to protect its trade interests and prevent allegedly unreasonable import 
restrictions of other countries through effective use of the multilateral dispute settlement 
mechanism. Between its last Review in 2017 and April 2022, Brazil was directly i nvolved in five new 
disputes, four as a complainant, and one as a respondent. During the same period, it also 
participated as a third party in 52 cases.52 In May 2022, the Brazilian  Congress approved a law 
(Law No. 14,353, 26 May 2022 ( https://www2.camara.leg.br/legin/fed/lei/2022/lei -14353 -26-maio-
2022-792717 -publicacaooriginal -165370 -pl.html )) authorizing CAMEX to suspend rights  and 
concessions (covering goods, services, and IP rights) against another WTO Member found to be in 
violation by a panel report but having chosen to appeal before the deadlocked WTO Appellate  Body 
(the so -called "appeal in the void").  
 
Question 1 –  
a. Brazil participated as a third party in 52 cases between its last Review in 2017 and April 
2022, making it one of the most active Members on this front. Can Brazil elaborate on its 
criteria to determine how it decides which cases to participate in as a third pa rty? 
b. How does Brazil, as a large economy actively engaged with the multilateral dispute 
settlement mechanism, think this mechanism can be equally accessible to small economies?  
Reply:  
a. Brazil decides its participation in a dispute as a third party based on whether it believes there are 
relevant systemic or specific trade interests at issue. It is a case -by-case analysis.  
b. In the on -going discussions about dispute settlement reform, Brazil is engaging constructively on 
how to address concerns voiced by d eveloping country Members over accessibility constraints in 
using the dispute settlement mechanism. Notwithstanding this, Brazil notes that there are 
instruments in place that could be reinforced in order to enhance access opportunities to smaller 
economie s, such as the Advisory Center on WTO Law (ACWL).  
 
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.1 WTO  
2.3.1.2 Trade -related technical assistance  
2.31. …From 2019 onwards, Brazil participated in another 84 training activities, inter alia , relating 
to accessions, dispute settlement, RTAs, import licensing, trade remedies, SPS/TBT, government 
procurement, TRIPS (including Integrated Health, Trade and Intellectual Property Approach to 
Address the COVID -19 Pandemic), agriculture, services, and statistics (on trade in value added and 
global value chains).  
 
Question 2 - 
Can Brazil share how it determines which technical assistance areas to focus on? How doe s Brazil 
evaluate these activities to determine if they have been successful?  
 
Reply:  
Brazilian participation in technical assistance initiatives is defined on a case by case basis depending 
on the interest of the ministries and technical agencies involved  and also on concrete possibilities of 
participation on each specific activity in a given time.  
 
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.2 Regional trade agreements and preferential trade arrangements  
2.3.2.1 MERCOSUR  
2.41. …Brazil also attaches high priority to economic and trade relations with Mexico especially 
through the expansion of its bilateral with this partner (Economic Complementation 
Agreement  (ACE) No. 53); in 2020, Brazil submitted to Mexico a proposal of terms of reference to 
negotiate a new agreement covering trade in goods and non -tariff matters.  
 WT/TPR/M/432/Add.1  
 
- 54 - 
 
Question 3 -  
Can Brazil provide any updates on the progress of these negotiations?  
 
Reply:  
In the first half of 2022, Brazil received Mexico´s comments on the propos al of terms of reference. 
They have since been under evaluation of the competent Ministries of the Brazilian administration.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1. Brazil applies the Southern Common Market (MERCOSUR) Common External Tariff (CET), with 
some country -specific derogations. The simple average applied most -favoured -nation (MFN) tariff 
declined slightly from 11.6% in 2017 to 10% in April 2022 and  9.4% in July 2022. Temporary tariff 
reductions, as well as export prohibitions on certain medical supplies, have been implemented in 
response to the COVID -19 pandemic. Since  2017, Brazil has continued its trade facilitation action 
by streamlining foreign trade formalities, enhancing its authorized economic operator (AEO) 
programme, a nd gradually implementing its Single Window Programme. It has also expanded its 
non-preferential rules of origin and updated the relevant verification procedure.  
 
Question 4  – 
 Israel would appreciate information on the following questions:  
a. Does Brazil hav e intention to further reduce the MFN tariff? If so, what sectors, might be 
included in such further liberalization?  
 
Reply:  
At this moment there are no discussions in the Brazilian Government to promote further tariff cuts 
in Brazil, beyond those already provided for by GECEX Resolution No. 353, adopted on 23  May 2022.  
 
b. In response to the COVID -19 pandemic, Brazil implemented temporary tariff reductions, as 
well as export prohibitions on certain medical supplies. Are the temporary reductions still in 
place? If so, does Brazil intends to cancel them?  
 
Reply:  
In light of the evolution of epidemiological circumstances of the pandemic, Brazilian government is 
evaluating the eventual extension of temporary tariff reductions in response to the COVID -19 
pandemic ( current List or a subset of it).  
 
3.2. During the review period, Brazil's list of import prohibitions remained broadly unchanged. Brazil 
made limited use of export taxes, two of which were eliminated during the review period. Brazil 
remains a significant u ser of anti -dumping (AD) measures; changes were made to the regulatory 
and institutional framework for trade remedies. Brazil also updated its drawback and export 
processing zone regimes, and adopted guidelines for reforming the system of federal -level exp ort 
support. Brazil's internal taxation regime remains complex, including in the treatment of imported 
goods and services. Support to domestic production and trade in the form of tax and non -tax 
incentives continued.  
 
Question 5  –  
Israel would appreciate it if Brazil Could provide further information on the changes to the regulatory 
and institutional framework for trade remedies.  
 
Reply:  
The main institutional framework changes undertaken since Brazil's last Review concerned the new 
regulation f or the public interest assessments in 2019 and 2020, the new Subsidies and 
Countervailing Measures Regulation in 2021, the trade remedies ordinances consolidation under one 
new unique ordinance per remedy/topic, the use of a new electronic system for excha nging 
documents related to the investigations, the development of detailed Guidelines to explain some 
practices, the use of electronic means, modalities applicable to fragmented industries in trade 
remedies investigations, and COVID 19 -related procedural a djustments. The existing legislation on 
administrative procedures for AD and CVD investigations was also consolidated and updated. The 
new regulations have been notified to the WTO and discussed in the Committees on Anti -Dumping 
Practices, on Subsidies and  Countervailing Measures, and/or on Safeguards.  
 WT/TPR/M/432/Add.1  
 
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  3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.4 Other charges affecting imports  
 
3.42. Whereas federal taxes are automatically deducted from the importer's bank account upon ID 
registration, procedures and systems for the collection of sub -federal taxes vary across Brazil's 
federative states. In several states, presenting hard copies o f tax payment slips remains a 
prerequisite for imports' release. The authorities indicate that all imports will be subject to paperless 
clearance and centralized collection of applicable duties and charges once the DUIMP is fully 
implemented.  
 
Question 6  –  
a. Can Brazil elaborate about the DUIMP implementation process?  
 
Reply:  
The changes in processes and in the technology promoted in the current import process/system 
within the scope of the Brazilian Single Window Program have already made it possible to di stribute 
tasks among specialized virtual teams, to obtain advance cargo clearance for AEO and to achieve 
paperless trade.  
The New Import Process has the potential to further reduce the goods release time after full 
implementation of the Brazilian Single Wi ndow. Among the improvements are:  
- Coordinated goods inspection between Customs and OGAs;  
- Improvement of licen ce issue time of OGAs through risk management;  
- Improved trade logistics due to advance clearance of all cargos instead of AEO 's cargos only;  
- Issue of Import licen ces for multiple shipments;  
- Foreign trade taxes and duties with deferred payments.  
 
b. Will all the procedures for sub -federal taxes across Brazil's federative states become identical 
after the full implementation of DUIMP by the end of 2023?  
 
Reply:  
The payment process for all taxes and duties will be standardized within the Single Window. Though 
the full implementation date is yet to be defined.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trad e 
3.3.6. Government procurement  
3.154. Brazil became an observer to the Committee on Government Procurement in October 2017 
and applied for accession to the WTO 2012 Agreement on Government Procurement (GPA 2012) in 
May 2020. In October 2020, Brazil circul ated its Replies to the Checklist of Issues and an informal 
English translation of its government procurement laws and regulations. Brazil circulated its initial 
market access offer in February 2021, its revised market access offer in November 2021, and it s 
final offer in June 2022. GPA Parties welcomed Brazil's application and active engagement and 
indicated their readiness to engage with Brazil to move this accession process forward.  
 
Question 7 -  
Given that the latest development is the final offer circu lated in June 2022, Israel would appreciate 
it if Brazil could elaborate regarding the following questions:  
a. Does Brazil still see its GPA accession as a priority?  
 
Reply:  
Yes. 
 
b. When does Brazil intend to reply to the comments made by GPA Parties on its final offer?  
 
Reply:  
GPA accession started in May 2020 and submitted a revised offer for the GPA accession 
in November  2021 and its final offer on 14 June 2022. Brazil will soon reply and circulate the 
remaining questions concerning clarifications and comm ents on the final offer and hope to continue 
the productive engagement to advance and conclude its accession.  
 WT/TPR/M/432/Add.1  
 
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4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.6 Transport  
4.4.6.2 Maritime transport and ports  
4.4.6.2.1 Shipping  
4.4.6.2.1.3 Domestic support  
4.276. Domestic support in the form of tax measures remains in place. The Additional Freight Charge 
for the Renovation of the Merchant Navy (AFRMM), a federal tax levied on maritime freight, continues 
to be applied on the combined cost of freight and insurance  though it was reduced from 25% to 8% 
for long -distance navigation (international routes) by Brazilian and foreign ships; from 10% to 8% 
for cabotage navigation; and 40% for inland waterway transportation of liquid bulk cargos in Brazil's 
north and north -east regions. The AFRMM is levied only on unloaded (domestic and import) cargos; 
transit and export cargos are exempt. The tax does not apply to countries with which Brazil has 
negotiated a specific clause in LAIA  Economic Complementary Agreements. The AFRM M on 
international maritime freight increases the cost of imported goods.  
 
Question 8  –  
a. Taking into consideration the significant affect the AFRMM has on the cost of import to Brazil, 
does Brazil intend to cancel the AFRMM tax or further reduce it?  
 
Reply:  
A further reduction on AFRMM is currently under evaluation within the Federal Government.  
 
b. Could Brazil provide the full list of exemptions from the AFRMM (by country and Agreement)?  
 
Reply:  
As a rule, the  Economic Complementation Agreements  Brazil  signed with its regional partners 
under the LAIA umbrella established a waiver with respect to the AFRMM 
(https://www2.aladi.org/nsfaladi/textacdos.nsf/vpaisesR/brasil ) 
 
  WT/TPR/M/432/Add.1  
 
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  CHINA 
Part I Questions Regarding the Secretariat Report  
Page 10 ， Para 9  
Brazil remains a significant user of trade remedies, particularly anti -dumping measures.  
Question 1  
Could Brazil explain what's the rationale behind the frequent use of trade remedies,  particularly anti -
dumping measures?  
Reply:  
The existence of trade remedies is provided for under WTO legal texts. In Brazil, trade remedies 
investigations are initiated by demand from the private sector, which sends the Brazilian government 
a request containin g the elements necessary for an investigation to be initiated. The admissibility 
criteria of a petition, as well as those used by Brazil to conduct trade remedies investigations and to 
apply measures are duly defined in the regulation. This promotes greate r legal certainty, 
transparency and predictability to public and private entities.  
 
Page12, Para 21  
Brazil retained its position as the world's second -largest producer and exporter of ethanol with a 
mandatory ethanol blend ratio fixed at 27%; in addition, other support measures for the production 
and consumption of ethanol, such as credit facilities and tax differentiation and cross-subsidization, 
remain in place.  
Question 2  
Please provide details of the various support measures for ethanol in Brazil.  
Reply:  
Ethanol is used in Brazil in two forms: anhydrous ethanol, mixed with gasoline sold throughout the 
country, and hydrous ethanol (E100).  
The Law 8,723/1991 established the reduction of pollutant emissions by motor vehicles and provided 
the first incentive for ethanol in the country, which is the blending mandate with gasoline. According 
to that law, the Executive Branch must establish the mandatory content of anhydrous ethanol blend 
to all gasoline sold in the country within a range that goes from 18% to 27.5%. Currently, the 
mandatory blending content in force in Brazil is 27%.  
A second in centive is a  tax differentiation  for ethanol (E100) concerning its competitor, gasoline. 
Currently, gasoline has an average ICMS (tax equivalent to VAT) rate of 17.7%, while hydrous 
ethanol collects 10.3% of the national average.  
Federal taxation is curren tly zero for both hydrous ethanol and gasoline. There are other incentives 
that Brazilian ethanol benefits from.  
RenovaBio : Ethanol can be produced and certified under RenovaBio, a voluntary program that sets 
out decarbonization targets for the transport s ector. In this way, ethanol produced by a certified 
production unit, due to its specific energy -environmental performance, is entitled to the issuance of 
CBIOs (Biofuel Decarbonization Credits) that are traded on the Stock Exchange.  
Financing instruments i n the capital market:  incentivized debentures, FIAGRO, 
CRA (Agribusiness Receivables Certificates) are financial instruments that can be accessed by 
ethanol producers and that help finance production by attracting investors in the capital market.  
Page 28, Para 1.23  
Brazil's merchandise trade with Asia, particularly China (which turned into its main trading partner 
possibly due to oil exports rise (Section 4.2.2.3)), was strengthened, whereas the share of the 
Americas dropped (Chart 1.2, and Tables A1.3 and A1.4).  
Question 3  
Does Brazil plan to expand trade in goods with Asia and China? If so, can Brazil provide concrete 
plans and measures? If not, please briefly explain why.  
Reply:  
From 2017 to 2021, Brazilian foreign trade grew 33.8% in value. This increase , however, was 
uneven. During this period, trade with Asia grew by 62.5%, with the United States by 29%, and 
with the European  Union  by 20.5%. Over this period, the share of the Asian market in Brazil's foreign WT/TPR/M/432/Add.1  
 
- 58 - 
 
trade grew from 34.3% in 2017 to 41.7% in 202 1, driven by the increase in China's share, which 
went from 20.1% to 27.1%. This trend however may be partially explained by the commodities price 
increase over the last years. In terms of volume, trade between Brazil and China, for example, 
increased by 1 7.6%, whereas the growth in value was 80.6% for the same period. Brazil's long -term 
goal is to increase trade with all its partners, and Asian countries are among our most important and 
most valued partners. Brazil wants to expand not only its trade in goo ds but also in services, as well 
as to increase FDI flows. In general terms, the goal is to enhance Brazilian competitiveness or at 
least avoid trade diversion and distortion. In terms of strategy, given the increasing importance of 
regulatory measures on trade flows, any structured plan for Asia and other key partners would entail 
mutually beneficial and comprehensive rules on SPS, trade facilitation, e -commerce and trade in 
services, among other disciplines.  
The economic relations between Brazil and China  have been discussed and evaluated in greater 
depth at the Brazilian -Chinese High Level Coordination and Cooperation Commission (COSBAN). 
COSBAN is one of the most relevant bilateral coordination mechanisms for Brazil. It was created in 
May 2004, and is he aded by the vice presidents of the two countries. The mechanism sets up an 
important forum for debating the Brazil -China economic and trade agenda, contributing to the 
maintenance and expansion of the bilateral relationship. In May 2022, during the VI COSB AN, the 
Strategic Plan 2022 -2031 and the Executive Plan 2022 -2026 were signed between Brazil and China. 
Currently, the two governments are in the final stages of preparing half -yearly reports that will show 
progress in all areas covered by the aforemention ed plans.  
In the last years, Brazil has concentrated efforts to intensify its trade agenda with partners beyond 
its traditional Latin American associates. To fulfil these objectives, Mercosur concluded trade 
negotiations with the EU and EFTA in 2019 and wi th Singapore in 2022. MERCOSUR also completed 
an exploratory dialogue with Viet  Nam and is in negotiations with the Republic of Korea, Canada and 
Indonesia.  
 
Page 52, Para 2.41  
Since Brazil's last Review, MERCOSUR has held various rounds of negotiations fo r the conclusion of 
free trade agreements with Canada, the Republic of Korea, Singapore, and Lebanon; in 2020, Brazil 
approved the negotiating mandate for trade agreements with Indonesia and Viet  Nam. 
In December  2021, MERCOSUR and Indonesia announced the launching of negotiations for a 
Comprehensive Economic Partnership Agreement, including trade in goods and services, investment, 
and a wide range of non -tariff matters. Impact assessment studies were prepared by Brazil for the 
future agreements with the Re public of Korea, Indonesia, Singapore, and Viet  Nam, whereas  those 
on Canada were under way as of June 2022. Regarding the regional sphere, MERCOSUR  expects to 
start negotiations of a new economic complementarity agreement with Ecuador in 2022, replacing 
and modernizing commitments taken under ACE No. 59. In 2020, the block presented to some 
countries in Central America and the Caribbean a proposal of terms of reference to negotiate 
individual trade agreements. Brazil also attaches high priority to economic  and trade relations with 
Mexico especially through the expansion of its bilateral with this partner (Economic Complementation 
Agreement (ACE) No. 53); in 2020, Brazil submitted to Mexico a proposal of terms of reference to 
negotiate a new agreement coveri ng trade in goods and non -tariff matters.  
Question 4  
What is Brazil's expectation for the future development of MERCOSUR? Which countries or regions 
are considered to be the priority objectives and directions for MERCOSUR in the next phase of its 
quest for  signing of free trade agreements?  
Reply:  
The Brazilian Government has been working to strengthen its the commercial ties with partners 
inside and outside Latin America, intensifying its agenda of trade negotiations and negotiating 
comprehensive trade agreements. Alongside with the negotiations mentioned in the response to 
question 3, Brazil has prioritized commercial negotiations with Canada, Mexico and Central America.  
 
Question 5  
Does Brazil allow MERCOSUR member countries to nego tiate free trade agreements with countries 
or regions outside the MERCOSUR on its own? Is there any room for flexibility? Could Brazil comment 
on this issue?  
Reply:  
One of the basic principles of MERCOSUR is the consensus rule. Within the context of negoti ations 
carried out jointly by the bloc, there may be specific and limited cases in which MERCOSUR members 
reach individual arrangements with the negotiating partner. Nevertheless, it is important to point 
out that these cases occur in negotiations that are  jointly launched and conducted by all MERCOSUR 
members, following consensus within the bloc in that sense.  WT/TPR/M/432/Add.1  
 
- 59 - 
 
  In general, MERCOSUR negotiates trade agreements with third countries as a bloc. Non -tariff 
matters, such as services, investment, government procu rement, trade facilitation and others, may 
follow different rules.  
 
Page 58, Para 2.55  
During the review period, Brazil continued to promote foreign and local investment through 
tax incentives, concessional finance, cash grants, and industrial site support  in several areas 
including automobile manufacturing, transport infrastructure, and the energy sector, where FDI 
participation is allowed through public -private partnerships, joint ventures, or concessions.  
Question 6  
As the new regulations have improved Brazil's public procurement environment for foreign bidders, 
does Brazil plan to further simplify procedures so that foreign bidders can participate in tenders even 
without the assistance of qualified professionals?  
Reply:  
Paragraph 2.55 of the Se cretariat report is slightly inaccurate. Before October 2020, foreign 
companies could participate in government procurement bidding involving goods and services by 
establishing themselves as a juridical person in Brazil or by setting up a branch or office in the 
country, authorized by the government. There had never been a need for a Brazilian 
partner  (business or individual). Normative Instruction No. 10, 2020, by the Secretariat of 
Management (SEGES) amended previous regulations to allow for the registrat ion of foreign 
companies not established in Brazil into the Unified Supplier Registration System (SICAF). Therefore, 
after October 2020, there is no need to set up a branch or office or a juridical person in the country.  
On the other hand, there is a requi rement to have a legal representative in Brazil with express 
powers to receive citation and respond administratively or judicially for the register in SICAF. This 
was done because foreign companies, just as national companies, may also incur in responsibil ity, 
irrespective of whether there is a contract already signed, in relation to acts performed during the 
bidding procedure. As of November 2022, there are 214 (two hundred and 14) foreign companies 
registered in SICAF, and thus, able to participate in pub lic procurement in Brazil, even when not 
established in the country.  
 
Page 69, Para 3.40  
Brazil's internal taxation regime remains overly complex, including in the treatment of imported 
goods and services.  
Question 7  
What are the underlying causes of the c omplexity of the Brazilian tax system?  
Reply:  
Items 3.40 -3.51 of the Secretariat 's report present several features of the Brazilian tax system that 
could be indicated as underlying causes of its complexity.  
While most countries generally have a single indirect tax (VAT) on sales of goods or services, Brazil 
has different taxes that are imposed at the central, state and municipal levels, in some cases on the 
same transaction. For instance, the federal constitution attributes to the municipalities the power to 
tax services while, with regard to sale of goods, the right to tax is granted to the states. In addition, 
the various federative units may have specific tax regulations, particularly regarding compliance and 
documentation.  
 
Question 8  
To furth er improve the business environment in Brazil and attract foreign investment, does Brazil 
plan to further improve its complex tax system?  
Reply:  
Brazil is making several efforts to simplify its tax legislation, promote legal certainty and attract 
foreign i nvestment.  
It is worth mentioning that there are different bills pending in the National Congress aiming at 
unifying and eliminating various taxes, in addition to introducing new criteria that are more aligned 
to international practices.  
 
Page80, Para 3.88  
In January 2020, CAMEX adopted guidelines for reforming the system of federal -level export support, 
including export insurance and financing policies.  WT/TPR/M/432/Add.1  
 
- 60 - 
 
Question 9  
Could Brazil give us an update on the reform plan and current progress of the export credit i nsurance 
and financing policy?  
Reply:  
As of November 2022, the guidelines set by Camex for the reform of Brazilian export credit system 
has been partially implemented. In practice, there has been no relevant change with respect to the 
Export Credit Insuran ce (SCE). In the case of Proex, substantial action to implement the guidelines 
has been taken in 2021, as noted in the Report by the Secretariat (please refer to paragraph 3.89).  
 
Page82, Para 3.96  
The Brazilian Funds Management and Guarantees Agency (ABGF ), a public enterprise, continues 
acting on behalf of Brazil (the Union) in the administration of the federal export credit 
insurance  (SCE) scheme backed by the FGE.The ABGF is responsible for the structuring, 
management, and monitoring of SCE operations.  
Question 10  
China has noted that the report describes the Brazilian export guarantee agency ABGF and its 
operations. It is understood that ABGF in Brazil announced the suspension of its operations in  2021. 
Please describe/clarify the current operation, man agement entity and model of Brazil's officially 
supported export credit insurance business.  
Reply:  
Since 2014, ABGF, a state -owned enterprise, has been providing to the Brazilian Ministry of Economy 
services related to the export credit insurance (SCE), in cluding the reception, analysis and 
structuring of coverage requests, as well as risk management, accounting, and actuarial services. 
In 2020 and 2021, the Ministry of Economy considered the possibility of hiring a private insurance 
company to replace ABGF . However, after a thorough and diligent analysis of the market, the 
Ministry of Economy decided to extend its contract with ABGF. Therefore, the suspension of 
ABGF  operations has not materialized – and is not expected to do so in the future.  
 
Page 89, Par a 3.123  
The ABNT coordinates the consensus -based development of Brazilian standards, and represents 
Brazil in international and regional standardization forums (ISO, IEC, and MERCOSUR 
Standardization Association (AMN)). The ABNT accepted the Code of Good P ractice for the 
Preparation, Adoption and Application of Standards (Annex 3 of the TBT  Agreement ) in 1995. 136 
Standardization work is carried out by approximately 150 technical committees. Draft standards 
undergo a process of public consultations for 30 d ays. Once a technical consensus is reached, the 
standard is published by the ABNT. Standards older than five years are reviewed to ensure that they 
remain up to date. Brazilian standards may be used as base reference for technical regulations 
adopted by IN METRO.  
Question 11  
Paragraph L of Annex 3 of the TBT  Agreement  states that "Before adopting a standard, the 
standardization body shall allow at least 60 days for comments on the draft standard by stakeholders 
in the territory of a WTO member". Why is the public comment period for Brazil 30 days?  
Reply:  
ABNT has been a signatory to the Code of Good Practices since 1995 and has applied the 60 -day 
deadline for submission to the National Consultation for several years. However, according to ABNT, 
this deadline derives from a reality foreseen in 1995, when the TBT  Agreemen t was first published. 
At that time, current digital resources were not available, particularly with regard to the development 
and use of digital tools for online submission of comments, as well as the increasing use of virtual 
meetings to develop standard s and address received comments. For example, ABNT currently uses 
numerous digital tools that contribute to speeding the process of standard development as a whole, 
with virtual meetings and digitalization of procedures, as well as online access to documen tation and 
submission of comments.  
ABNT, thus, reduced the period for public consultations because practices and conditions have 
changed, as well as the agility required by society for quicker publication of standards, especially 
those dealing with urgent problems of safety, health or environment.  
Thus, with the experience acquired in this process, and in view of the need to streamline the 
preparation procedures, ABNT verified that shorter periods equally fulfil the purposes of 
consultations, that is, they allow society to evaluate the content of a technical document to verify if 
it addresses the need for which it was initially developed: solving a potential or existing problem.  WT/TPR/M/432/Add.1  
 
- 61 - 
 
  Furthermore, ABNT highlights that the adaptation of deadlines to National Consul tations resulted in 
an even greater stimulus to reach the technical maturity of a document before its submission for 
evaluation by the Society, reassuring even further the final results of submissions and keeping the 
Code's prescription to provide transpar ency and access to the process of development of technical 
standards.  
Question 12  
What is the process for developing Brazilian standards?  
Reply:  
ABNT is a non -profit civil association, founded on 28 September  1940 and considered of public utility 
by Law 4, 150, of 21 November  1962. With Resolution nº 7 of Conmetro (National Council of 
Metrology, Standardization and Industrial Quality), of 24 August  1992, The Federal Government 
granted ABNT with the title of the Single National Forum of Standardization, with the mission of 
"coordinating, guiding and supervising the process of elaboration of Brazilian Standards, as well as 
preparing and editing such Standards ". 
As the National Standardization Forum, ABNT is responsible for the development of Brazilian 
Standards (ABNT NBR) and for management of their elaboration process. It is, therefore, a body 
that develops voluntary technical standards in Brazil, which add value in all types of operations and 
business, and is not responsible for the elaboration of leg al instruments, such as Technical 
Regulations.  
ABNT emphasizes that technical standard are the documents established by consensus and approved 
by a recognized body, which provides rules, guidelines or minimum characteristics for activities or 
for their res ults, aiming at obtaining an optimal degree of ordering in a given context. They seek to 
make the development, manufacture and delivery of products and services more efficient, safer and 
cleaner; to facilitate trade between countries making it fairer; to p rovide governments with a 
technical basis for health, safety and environmental legislation, and conformity assessment. They 
share technological advances and good management practices; spread innovation; protect 
consumers and users in general of products an d services; and make life simpler by providing 
solutions to common problems.  
ABNT reiterates that it is a private entity and, therefore, is not part of the direct or indirect public 
administration and the Brazilian Standards issued by ABNT are not to be co nfused with the Technical 
Regulations established by governmental entities. ABNT has no supervisory power.  
 
WT/TPR/M/432/Add.1  
 
- 62 - 
 
ABNT also emphasizes that technical standards do not have precedence over legal instruments, such 
as Technical Regulations, Laws, Ordinances, etc.,  and therefore, the content of a Brazilian Standard 
cannot conflict with any prescriptions in documents from regulatory or legislative bodies.  
The process of preparing an ABNT Technical Document starts from a demand, which can be 
presented by any person, c ompany, entity or regulatory body that is involved with the subject to be 
normalized.  
The pertinence of the demand is analyzed by ABNT and, if feasible, the matter is taken to the 
corresponding Technical Committee for inclusion in its Sectorial Standardiza tion Program (PNS). If 
there is no Technical Committee related to the subject, ABNT proposes the creation of a new 
Technical Committee, which may be a Brazilian Committee (ABNT/CB), a Sectorial Standardization 
Organization (ABNT/ONS) or a Special Study Com mission (ABNT/CEE).  
The subject is thoroughly discussed by the Study Commissions that make up these Technical 
Committees, with participation open to any interested party, until reaching consensus on the 
proposed technical content, generating a Standard Pro ject. For ease of reference, the following 
diagram shows the structural distribution of the ABNT Technical Committees:  
This project is then submitted to a National Consultation, for a period of 30 days, for evaluation of 
content and for any comments. If th ere is no comment, duly justified, that technically disproves the 
proposed content, the document is then published as a Brazilian Standard; otherwise, in the light of 
the justification presented, discussions on the project are reopened, until a new consens us is reached 
and a it is submitted to Consultation again. This "new submission " can be done as many times as 
necessary.  
Finally, ABNT highlights that the standardization process is carried out in compliance with 
international standardization principles, s uch as those described in ISO/IEC Guide 59 (ISO and 
IEC recommended practices for standardization by national bodies) seeking absolute transparency 
and free participation of all interested parties.  
Question 13  
What is the structure of the standards system in Brazil?  
Reply:  
According to ABNT, the diagram below depicts the structure. The Association notes that:  
- Sinmetro (National System of Metrology, Standardization and Industrial Quality) encompasses the 
government sector and the private sector, articulati ng the infrastructure of technological services 
for quality and productivity of the country;  
- Conmetro (National Council of Metrology, Standardization and Industrial Quality): is the Normative 
body of SINMETRO, which is responsible for formulating, orderi ng and supervising the National Policy 
of Metrology, Industrial Standardization and Quality Certification of Industrial Products;  
- CBN (Brazilian Committee for Standardization): aims to advise and support Conmetro in matters 
related to standardization.  
In this context, ABNT, through its structure of Technical Committees, with their respective Study 
Commissions, is responsible for meeting the demands from society for Brazilian Standards. This 
process is managed in its Standardization Board, with the suppo rt of the collegiate of the Managers 
of these Committees, called the Technical Council (ABNT/CT).  WT/TPR/M/432/Add.1  
 
- 63 - 
 
   
 
Page 90, Para 3.133  
Imports of plants and plant products are subject to documentary and inspection requirements that 
vary according to the product's intend ed use and its classification in one of five risk categories.  
Question 14  
Please describe the five classifications and the basis for classifying the risks of imported plants and 
plant products in Brazil.  
Reply:  
The phytosanitary risk classification of reg ulated articles is based on MAPA Ordinance No 65, of 
30 March  2021 which incorporated the MERCOSUR Standard Harmonized Phytosanitary 
Requirements by Risk Category for the Entry of Regulated Articles, approved by Resolution 
MERCOSUR/GMC/RES. nº 10/20.  
Five categories of phytosanitary risk are considered:  
CATEGORY 1: Products of plant origin have been processed to the point where they no longer have 
the ability to be infected/infested by quarantine pests. Therefore, products in this category do not 
require ph ytosanitary measures and no phytosanitary certification is required with respect to pests 
that may be present on the products prior to processing.  
CATEGORY 2: Products of plant origin have been processed, but still have the capacity to be 
infected/infested  by a quarantine pest. The intended use can be, for example, consumption or further 
processing. Products in this category require phytosanitary certification. In cases where the 
assessment of the effect of the method and the degree of processing has determ ined that the 
processed product does not present any risk of pest dispersal, the product should be reclassified into 
Category 1. Although Category 2 products have been processed, the method processing may not 
have completely eliminated all quarantine pests . If it is assessed that the method and degree of 
processing do not eliminate the risk of dispersal of quarantine pests, a Pest Risk Analysis (PRA) may 
be required to determine this.  
CATEGORY 3: Products of plant origin have not been processed and intended  use is for purposes 
other than propagation, for example, consumption or processing. A PRA is required to determine the 
pest risk related to this pathway and whether phytosanitary certification is required.  
CATEGORY 4: Products of plant origin have not bee n processed and intended use is propagation. A 
PRA is required to determine the pest risks associated with this pathway and whether phytosanitary 
certification is required.  
CATEGORY 5: Any other regulated article, not considered in the previous categories and which 
implies a demonstrable phytosanitary risk according to the corresponding PRA. For these products, 
phytosanitary certification may or may not be required.  
 
WT/TPR/M/432/Add.1  
 
- 64 - 
 
Page 94, Para 3.148  
Brazil indicated the existence of one state trading enterprise (STE), t he National Company for Food 
Supply (CONAB), in its WTO notification for the years 2018 -19. Its previous notification on the 
matter, dated 11 September 2018, had not identified any STEs "that fall within the working definition 
of such enterprises". Brazil' s STE notifications have been the subject of discussions at the Working 
Party on State Trading Enterprises.  
Question 15  
What was the purpose of the establishment of the National Company for Food Supply (CONAB)? Why 
was it set up as a state trading enterpri se (STE)?  
Reply:  
Conab is the result of the merger of three public companies: Companhia de Financiamento da 
Produção  (CFP), Companhia Brasileira de Alimentos  (Cobal) and Companhia Brasileira de 
Armazenamento  (Cibrazem) in 1990. It was created to be the ope rational arm of the Ministry of 
Agriculture, Livestock and Food Supply, constituted as a state company, to have more flexibility in 
the execution of public policies aimed at the rural producer. The company is responsible for ensuring 
internal supply, which  can include operations to accumulate, hold and dispose of stocks.  
 
Page104, Para 4.12  
Brazil remains a major player in global agricultural trade, accounting for 5.2% (WTO definition) of 
the world's total agricultural exports in 2020, basically a similar s hare as registered at the time of 
the previous Review (5.1%). It continued to be the world's third -largest exporter of agricultural 
products, behind the European  Union  and the United States.In 2020, Brazil maintained its position 
as the world's biggest supplier of sugar, orange juice, coffee, poultry meat, beef, and soybeans. In 
2021, soybean products remained the largest agricultural export (39.8%), followed by meat 
products, especially poultry and beef (16.4%), wood pulp (11.5%), sugarcane (8.5%), and coffee 
(5.3%). The performance of Brazil's main agricultural exports from 2017 -21 is shown in Chart  4.1 
below.  
Question 16  
Brazil is an important global producer and expo rter of agricultural products and has maintained its 
growth in agricultural exports against the backdrop of the COVID -19 pandemic and the Ukraine 
crisis, playing an important role in maintaining the stability and security of the global food supply 
chain. I n the future, will Brazil continue to maintain or expand its agricultural exports? If so, please 
describe the specific arrangements.  
Reply:  
With an expected growth in agricultural production of around 3% per year, well above projections 
for population growth in Brazil (below 1% per year), it is expected that the world will benefit from 
increasing exportable surpluses from Brazil in the future.  
In addition, the internal consumption and internal production ratio for corn, soybeans and sugar, 
which are currently at 72.7%, 37.4% and 27%, respectively, are expected to decrease over the 
next 10 years, further increasing the aforementioned surpluses.  
Question 17  
From Chart 4.1, we note that exports of soybeans, meat, sugarcane and coffee are on the i ncrease 
between 2019 and 2021, while exports of maize continue to decrease. Please explain the reasons 
for the decrease in maize exports for three consecutive years. Will Brazil increase its exports of 
maize in the future?  
Reply:  WT/TPR/M/432/Add.1  
 
- 65 - 
 
   
The last supply and dema nd balance report released by the National Supply Company (CONAB), on 
9 November  2022, estimates corn exports in the order of 38.5 and 45.0 million tons for the 
years  2022 and 2023, respectively.  
It is worth mentioning that, specifically for the year 2021 , production decreased by 15% compared 
to the previous year. It was the worst performance of corn crops since the 2017/18 harvest, due to 
delayed rains at the beginning of the planting of the first crop and drought and frosts in the main 
producing states d uring the second crop. This production performance influenced the export 
dynamics.  
Therefore, despite the decrease in exports from 2019 to 2021, data for 2022, accumulated 
until October, indicates a change in the referred trend. Exports in volume are alre ady higher than 
exports in 2019.  
 
Page114 Para.4.36.  
 ......Total rural credit disbursements for family farming stood at BRL 22.9 billion (FY2017/18), 
BRL 23.4 billion (FY2018/19), BRL 28.8 billion (FY2019/20), and BRL 33.1 billion (FY2020/21). 
Total rural credit disbursements for commercial farmers stood at BRL 127.7 billion in FY2017/2018, 
WT/TPR/M/432/Add.1  
 
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BRL 128.7  billion  in FY2018/2019, BRL 133.4  billion  in FY2019/20, and BRL 182.9  billion  in 
FY2020/21.  
Question 18  
Agricultural credit expenditures provide much higher funding to commercial farmers than to family 
farms. Please provide data on rural credit expenditures, including the number of commercial and 
family farms that have benefited, and the average amount benefited by commercial and family farms 
respectively.  
Reply:  
In what concerns the 2020 -2021 crop year, data is as follows:  
2020 -2021 Crop Year  
 Contracts  Financed volume (BRL)  Average value (BRL)  
Family Farming  1,480,864  33,104,100,377.04  22,354.59  
Commercial Farming  526,384  213,069,848,122.09  404,780.25  
Page115 Para.4.40  
The state -owned National Food Supply Agency (CONAB) operates both the AGF set by the 
MAPA  Secretary of Agricultural Policy (SPA) for commercial and small -scale farms, and the 
equivalent programme set by the Secretariat for Family Farming and Cooperatives for small -scale 
agriculture (PAA, Section 4.1.4.3) as well as the minimum prices programme for family farms 
(PGPAF  programme).  
Question 19  
Is the implementation of AGF the same for commercial and small -scale farms?  
Reply:  
The Federal Government Acquisition program (AGF) does not make a distinction according to the 
profile of the beneficiary. It can serve small, medium and large producers within a pre -
established  cap. 
 
Question 20  
Are the products c overed by the relevant projects intended for export? Does the implementation of 
the project promote the export of the relevant products?  
Reply:  
None of the market intervention mechanisms of the Minimum Price Guarantee Policy (PGPM) have 
the aim of promoti ng exports.  
Through Federal Government Acquisition (AGF) and the Sale Option Contract (COV) operations, the 
product resulting from the purchase becomes part of public stocks that are later returned to the 
market through public sales auctions and, to a less er extent, in over -the-counter sales operations 
to small farmers.  
Through Price Equalization Premium (PEP) and Equalizer Premium Paid to the Rural Producer 
(PEPRO) operations, the Government grants a subsidy to producers, equivalent to the difference 
between the market price and the minimum price, in order for it to transport and sell those products 
from producing regions to consumer regions.  
Page 136, Para 4.118  
During the review period, positive and significant changes took place due to actions aimed at major 
reforms, the tackling of infrastructure deficiencies, streamlining the business environment, and 
across -the-board tariff reductions.  
Question 21  
What is the current state of infrastructure improvement in Brazil and in what specific areas?  
Reply:  
Brazil has been implementing many important infrastructure  
According to data from the Investment  Monitor of the Ministry of Economy 
(https://investimentos.economia.gov.b r/monitor -investimentos/en/macro.html ), the estimated 
infrastructure investment in Brazil for 2022 is of BRL 188 ,1 billions (BRL 36,7 billions for the transport 
and logistics sector, BRL 81,7 billions for the electric energy sector, BRL 33,5 billions for t he 
telecommunication sector, BRL 18,5 bi for the sanitation sector, and BRL 8,46 billions  for the urban 
mobility sector) and the estimated infrastructure capital stock for the same year is of BRL  2,9 trillion . 
 
Question 22  
Does Brazil plan to provide further incentives for foreign investment in the infrastructure sector?  
Reply:  
The Investment Partnerships Program (PPI) was created by Law No. 13,334 of 2016 to expand and 
accelerate partnerships between the State and the private sector through PP P contracts and other 
privatization measures, with the objetive of, among others, attracting foreign investment in WT/TPR/M/432/Add.1  
 
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  infrastructure, particularly in projects in the sectors of roads, railroads, ports, airports, sanitation, 
electricity, mining, and oil and ga s. 
 
PART II Questions Regarding the Government Statement  
Page 12, Para 2.46  
In 2021, the central government owned 154 companies, of which 47 were directly owned, 
representing 7.6% of the GDP.  
Question 23  
Could the Brazilian side please outline the approxim ate percentage of the 154 enterprises' 
businesses that undertake public service operations? How does the Government provide 
compensation to the enterprises concerned?  
Reply:  
The Brazilian Federal Constitution defines the public services under the competence of the Federal 
Government.  
Article 21. It is incumbent upon the Federal Government:  
(…)  
X- maintain the national postal service and airmail;  
XI - to operate, directly or through authorization, concession or permission, 
telecommunications serv ices (…);  
XII - to operate, directly or through authorization, concession or permission:  
sound and image broadcasting services;  
the electric power services and installations and the energy use of water courses, in 
articulation with the states where the energy potentials are located;  
air navigation, aerospace and airport infrastructure;  
the railway and waterway transport services between Brazilian ports and national borders, 
and the borders of a State or Territory;  
interstate and international road pas senger transportation services;  
sea, river and lake ports;  
(…)  
 XV- organize and maintain the official national statistical, geographic, geological and 
cartographic services;  
(…)  
XXII - execute maritime, airport and border police services;  
XXIII - explore nuclear services and installations of any nature and exercise the state 
monopoly on research, mining, enrichment and reprocessing, industrialization and trade of 
nuclear ores and their derivatives, observing the following principles and conditions: a ) all 
nuclear activity in national territory will only be admitted for peaceful purposes and upon 
approval by the National Congress; b) under a concession or permission regime, the use of 
radioisotopes is authorized for research and medicinal, agricultural , industrial uses and similar 
activities; c) civil liability for nuclear damage waives guilt.  
Among the 154 state -owned companies analyzed at the time, the following are considered public 
service providers:  
·   Postal service and national airmail: Brazil ian Post Office Company - Correios (1)  
·   Telecommunications services: Brazilian Telecommunications Company – Telebras (2)  
·   Broadcasting Services: Brazilian Communication Enterprise - EBC (3)  
·   Electrical energy services and installations: Brazilian Electric Company - Eletrobras 
(privatized by June 2022) and its subsidiaries (4 to 26)  
·   Air navigation, aerospace and airpor t infrastructure:  WT/TPR/M/432/Add.1  
 
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·  Brazilian Air Navigation Company - NAV Brasil - established in June 2021 exclusively 
dedicated to providing air navigation services; (27)  
·   Brazilian Company for Airport Infrastructure - Infraero (28)  
·   Sea, river and lake ports:  
·   Ceara´s Port Authority – CDC; (29)  
·   Santos Port Authority – SPA (CODESP) (30)  
·   Para´s Port Authority - CDP (31)  
·   Rio de Janeiro´s Port Authority - CDRJ (32)  
·   Rio Grande do Norte´s Port Authority – CODERN (33)  
·   Bahia´s Port Authority – CODEBA (34)  
·   Espirito Santo´s Port Authority – CODESA (35)  
·   Nuclear services and facilities:  
·   Nuclear Industries of Brazil S/A – INB: became a subsidiary of ENBPAR (36)  
·   Brazilian company of Participations in Nuclear and Binational Energy S.A - ENBPar (37)  
·   Eletronuclear S.A. – Eletronuclear (38)  
Therefore, considering the 154 state -owned companies, 38 companies (approximately 25%) provide 
services considered public.  
Considering the 38 companies mentioned above, the "compensation" undertaken by t he Federal 
Governament are described below:  
·   Eletrobras and its subsidiaries (22 companies): have been privatized and are no longer 
in the Federal Government's portfolio.  
·   Telebras and EBC: are considered Dependent State -Owned Companies. It means the 
companies receives financial resources from t he National Treasury for the payment of 
personnel expenses or costs in general or capital, excluding, in the latter case, those 
resulting from increased equity interest.  
·   Others (14 companies): Non -dependent State -Owned Companies are enterprises that 
does not receive financial resources from the National Treasury to pay personnel 
expenses or costs in general or even capital, except, in the latter case, those resulting 
from an increase in the equity interest intended for investments. In some cases, the 
companies receive AFAC - Advance for Future Capital Increase from shareholders.  
Page 14, Para 2.61&2.65  
Between 2017 and 2021, 75 operations of export credit insurance were approved under the 
SCE/FGE, which corresponded to USD 16.5 billion in total approved coverage....BNDES disbursed 
BRL 64.3 billion and performed 191,093 credit operations in 2021.  
Question 24  
Could Brazil describe the relationship between SCE/FGE and BNDES in terms of the function and role 
of export credit insurance in Brazil? Does  BNDES require SCE/FGE to provide risk cover when 
providing export credit financing?  
Reply:  
 
BNDES and SCE/FGE are both part of Brazil 's official export credit system and work independently 
from each other. Brazilian exporters may choose to apply for each institution separately or for both 
institutions at the same time. When providing export credit financing, BNDES may assume the 
operation 's risk, work with SCE/FGE or with other obligors, including other Export Credit 
Agencies  (ECAs).  
 
Page 15, Para 2.75  
The perspective of the end of Emergency Aid, in October 2021, and the challenges of the 
post-pandemic situation demanded a quick response from the federal government to mitigate the 
income losses of the most vulnerable families and promote the recovery of th e economy. This took 
place through the creation of a strategy aimed at improving social protection and income transfer WT/TPR/M/432/Add.1  
 
- 69 - 
 
  policies, made possible through the Aid Brazil (Auxílio Brasil), an assistance program which replaced 
the Bolsa Família Program and was i nstituted by Provisional Measure  No. 1,061/2021, converted 
into the Law No. 14,284/2021.  
Page 16, Para 2.78  
The amount paid per family in Auxílio Brasil depends on the basket of benefits to which each family 
is entitled, and may vary depending on income an d family composition, respecting the minimum of 
BRL 400.00. This is an improvement to the the Bolsa Família, as it is simpler, more understandable, 
more equitable and, as a rule, provides higher values.  
Question 25  
We know that the Brazilian Government has  raised the payment standard under the Auxilio Brasil 
from BRL  400 per month to BRL  600 per month since July 2022. Based on the forecast of the 
Brazilian economy next year, what measures will the government take to support the continuation 
of the subsidies ? 
Reply:  
In the current process of transition to the new government, the Brazilian Congress is now examining 
a Draft Law to guarantee budgetary funds to the payment of the BRL 600 in the Budgetary 
Annual  Law of 2023.  
 
Page 17, Para 3.11  
In this context, the Secretariat of Foreign Trade (SECEX) has removed several automatic and non -
automatic import licensing requirements imposed by economic purposes.  
Question 26  
Could Brazil please list the specific import licences that have been removed?  
Reply : 
Since 2019, there has been a significant reduction in the number of licen ces required by SECEX. This 
decrease resulted from the exclusion of treatment for some import operations, such as: products 
subject to trade remedies; products subject to non -preferent ial origin control and statistical 
monitoring.  
Question 27  
Has the remove of the above -mentioned import licences led to the development of import trade with 
relevant countries (regions) and products? If so, please enumerate.  
Reply:  
The changes are still re cent. Therefore, the impacts of this set of measures have not been fully 
quantified yet. However, as the import licensing requirements were applicable to Brazilian imports 
coming from all countries of the world, it is possible to conclude that there was a general reduction 
in the costs and time of carrying out import operations in Brazil.  
 
Page 29, Para 4.28  
The Brazilian Enquiry Points are the Ministry of Agriculture, Livestock and Food Supply and the 
National Health Surveillance Agency, which work in a co ordinated manner. Sanitary and 
phytosanitary measures are normally based on standards, guidelines or recommendations produced 
by Codex Alimentarius, OIE, and IPPC.  
Question 28  
What is Brazil's standard adoption rate for the three international organization s? In which areas are 
the standards developed by the three international organizations not used?  
Reply:  
Despite ongoing efforts by the Brazilian government to set domestic regulations based on the Codex 
Alimentarius Standards, there is no available estimat es as yet of ANVISA 's rate of compliance to the 
Codex Alimentarius Standards. Nonetheless, Brazilian MRLs are established based on scientific 
methodology consistent with international best practices and following the Good Agricultural 
Practice  (GAP) applic able to their region. Agricultural chemical use patterns differ between different 
production regions and countries as pests, diseases and environmental factors vary. This means that 
Brazilian MRLs for agricultural chemicals in food may differ from Codex st andards. However, when 
a product differs from Brazilian MRLs, but is in conformity to Codex Alimentarius Standards, it may 
be imported, provided that the risk assessment does not indicate an unacceptable risk to Brazilian 
consumers.  
 
Page 34, Para 4.57  
NIPS has already shown substantial results since its adoption, such as: ...creation of tools for the 
dissemination and commercialization of IP; ...  WT/TPR/M/432/Add.1  
 
- 70 - 
 
Question 29  
Please specify what tools have been created in Brazil for the dissemination and commercialization o f 
IP and the result of these tools.  
Reply:  
In 2020, the Program INPI for Business was lauched, which involves partnerships with WIPO and 
companies, as well as innovation centers and universities, with the aim at promoting innovation and 
social development in Brazil, in addition to contributing to the increase in registration of industrial 
property assets. The INPI for Business was developed to help entrepreneurs to learn the system and 
the value of IP, establish partnerships through IP and acquire a strateg ic view of the IP use and 
protection. The main results of the Program are more applications, matches at the innovation field, 
IP mentoring and training, and new partnerships.  
 
Page 35, Para 4.62  
...Together with PPH pilot programs, actions on patent priority exams were in place....  
Question 30  
Please explain how applicants participate in the above -mentioned priority examination actions for 
patents, in addition to the PPH pilot program.  
Reply:  
This participation depends on the type of priority procedure. For example, to participate in the elderly 
modality, it is necessary for an elderly person (more than 60 years old) to appear as a depositor or 
holder of the IP right and to present a valid iden tification document in Brazil. There are 19 modalities 
in total; a summary of the requirements are described on this page: https://www.gov.br/inpi/pt -
br/servicos/patentes/tramite -prioritario/modalidades -de-tramite -prioritario -de-patentes . It is 
important to note that we are constantly improving these services, that is, there may be changes 
without prior notice.  
 
Question 31  
Please explain whether businesses located outside Brazil and foreign applicants can participate in 
the said patent priority examination actions.  
Reply  
Any company or person, national or foreign, that meets the requirements can participate in any type 
of priori ty procedure. For example, an elderly depositor can present a passport from any country 
recognized by Brazil.  
 
Page 39, Para 4.93  
Brazilian agricultural policy follows a market -oriented approach, privileging rural credit and risk 
management based on privat e rural insurance. As per WTO definition, Brazil has not provided market 
price support (MPS) to agricultural products between the last review and agricultural 
year 2019/2020.  
Question 32  
Is there any policy support or tax relief for private rural insurance ? 
Reply:  
Agricultural insurance support is either in the form of insurance premium subsidies or by 
compensating farmers for production losses due to natural disasters.  
The Rural Insurance Premium Program (PSR) grants insurance premium subsidies to commerci al 
producers who establish contracts with insurance companies listed by the government.  
The General Agriculture Insurance Program (PROAGRO) for farmers contracting rural credit offers 
partial compensation for bank debts on working capital loans indemnifyin g losses of own resources 
invested in production.  
 
Page 49  
5.8. Brazil will also continue to be committed to MERCOSUR, regional integration – as mandated by 
its Constitution – and to strengthening and fostering new bilateral and RTAs, with a view to 
promot ing cooperation, sustainable development and mutually beneficial results.  
Question 33  
We have noted that from 2017 to 2020, MERCOSUR has completed or is negotiating FTAs with a 
number of WTO members. Brazil has indicated that it will also continue to push forward the 
negotiation of bilateral and regional FTAs in order to promote cooperation, sustainable development 
and mutual benefits. Will Brazil prioritize the negotiation of FTAs with its major trading partners 
among other WTO members in the future? As a founding member of MERCOSUR, what role will Brazil 
play in facilitating the negotiation of FTAs between MERCOSUR and other WTO members?  WT/TPR/M/432/Add.1  
 
- 71 - 
 
  Reply:  
The Brazilian Government is committed to strengthen its trade with different partners inside and 
outside Latin Am erica. The comprehensive FTAs that are being negotiated are instrumental to 
promote the commercial flows and the harmonization of rules. The goal is to increase investment 
and trade in goods and services, as well as enhance Brazilian competitiveness or at least avoid trade 
diversion and distortion. Thus, Brazil, as a founding member of MERCOSUR, is engaged in the 
expansion of MERCOSUR´s trade links with our major partners and other countries and blocs 
interested in new partnerships.  
 
PART III Other Question s 
Question 34  
Regarding Brazil's anti -dumping measures against Chinese exports of garlic . 
In recent years, according to feedback from Chinese enterprises, some importers can apply to the 
court for exemption from anti -dumping duties on Chinese exports of garlic, and most of those 
exempted are new importers, while traditional importers are still liable to anti -dumping duties. 
Please clarify whether these claims are true. If it is true, Please explain the reasons for the 
inconsistent implementatio n of domestic anti -dumping measures.  
Reply:  
The anti -dumping duty is levied on all garlic imports originating in China, regardless of whether the 
importers are new or not. Recalling that the judiciary is independent from the other branches of 
government, a ny decision by a court to grant exemption from anti -dumping duties to an importer 
must be complied with by the executive branch, even if they are later reversed. The Brazilian body 
responsible for antidumping investigations (SDCOM) has endeavored to provid e the necessary 
information and clarifications to the judiciary so that the duty can be applied as foreseen.  
 
Question 35  
Regarding Brazil's countervailing investigation against Chinese aluminium sheets  
On 21 June 2021, Brazil launched an anti -dumping inve stigation alongside a countervailing 
investigation against Chinese aluminium sheets. On 30 January 2022, the Brazilian investigating 
authority issued a final ruling on the aluminium sheet anti -dumping case, ruling that there was no 
evidence that the injury  to the Brazilian domestic industry was caused by Chinese products, and 
therefore no action was taken to close the case. As it is the same product that is under investigation 
and the investigation period is almost the same, the causality analysis in the an ti-dumping case is 
also applicable to the countervailing case. Could the Brazilian side consider terminating the 
countervailing investigation against this product?  
Reply:  
Although the object of analysis is the same (exports of rolled aluminum products), t he relevant 
anti-dumping and anti -subsidy investigation processes follow different regulations and have distinct 
characteristics. In addition, the subsidy investigation period was changed to "January to 
December  2020" and the injury period to "January 2016 to December 2020 ". 
Finally, Secex Ordinance No. 02, of 27 January  2022, which ended the investigation on the existence 
of dumping in exports from China to Brazil of aluminum laminates without the application of anti -
dumping measures, mentions the need to deepen the analyzes effect on prices in light of the 
subsidies investigated.  
In this context, SDCOM informs that it will consider all the manifestations provided by the interested 
parties in the subsidies process and will issue the final determination opinion in December 2022.  
 
Question 36  
On 5 March 2021, the Brazilian investigating authority issued a notice launching an anti -dumping 
investigation against polyester fiber yarn imported from China. According to Hengyi 
Petrochemical  Co.,Ltd., the Chinese respondent, it has actively submitted a reply to cooperate with 
SDCOM investigation, but SDCOM refused to use the domestic sales data Hengyi provided in the 
final ruling, and instead adopted the constructed normal value a pproach. The reason for the rejection 
was that "The company's exports were made through sales by trading companies, while sales in the 
domestic Chinese market were only to the final consumer, and export sales and domestic sales were 
separate trading proces ses". We wonder whether the Brazilian investigating authority's refusal to 
use the domestic sales price of Hengyi Petrochemical to determine normal value is consistent with 
the relevant provisions of the WTO Anti -Dumping Agreement. And we wonder whether th e practice 
is consistent with the relevant provisions of Decree No. 8058 of the Brazilian Anti -Dumping Law.  
Reply:  
Brazilian investigations comply with all the relevant provisions of the WTO Antidumping Agreement 
and domestic antidumping regulations. Regar ding the mentioned calculation, SDCOM recently WT/TPR/M/432/Add.1  
 
- 72 - 
 
received an administrative appeal filed by Hengyi Petrochemical Co.,Ltd. that is being appreciated 
by the investigating authority team for a better understanding about what is exactly being 
questioned by the e xporter.  
Question 37  
Please specify Brazil's approaches and specific legal systems for the protection of geographical 
indications.  
Reply:  
In Brazil, the Geographical Indication (GI) is an industrial property instrument that seeks to 
distinguish the geograp hic origin of a particular product or service.  
As provided in art. 176 of the LPI, the Indication of Origin (IP) or the Denomination of Origin (DO) 
constitutes an IG. Thus, the GI is divided into two species, defined in arts. 177 and 178 of the LPI:  
Art. 1 77. An indication of origin is considered to be the geographical name of a country, city, region 
or locality in its territory, which has become known as a center for the extraction, production or 
manufacture of a given product or provision of a given servi ce. 
Art. 178. Denomination of origin is considered to be the geographical name of a country, city, region 
or locality in its territory, which designates a product or service whose qualities or characteristics 
are exclusively or essentially due to the geogr aphical environment, including natural and human 
factors.  
The first species, IP, protects the geographic name that has become known because of a product or 
service. The second, DO, presupposes that the qualities or characteristics of a given geographic 
area, including natural and human factors, exclusively or essentially influence a product or service, 
typifying it.  
More detais in the trademark manual and the Industrial property Law, available at:  
http://manualdemarcas.inpi.gov .br/projects/manual -de-indicacoes -
geograficas/wiki/02_Indica%C3%A7%C3%A3o_Geogr%C3%A1fica_e_esp%C3%A9cies_de_registr
o#:~:text=2.6.2%20Servi%C3%A7o -
,2.1%20Indica%C3%A7%C3%A3o%20Geogr%C3%A1fica,Denomina%C3%A7%C3%A3o%20de%
20Origem%20(DO) . 
https://www.planalto.gov.br/ccivil_03/leis/l9279.htm . 
Question 38  
Please specify Brazil's legal provisions, application requirements and examination standards for 
position trademarks.  
Reply:  
According to art. 84 of INPI/PR Ordinance No. 8/2022, a position trademark is considered to be one 
formed by the application of a sign in a unique and specific position on a given support, resulting in 
a distinctive set capable of identifying products or s ervices and distinguishing them from other 
identical, similar or similar ones, provided that the application of the sign in the mentioned position 
of the support can be dissociated from a technical or functional effect.  
The uniqueness of the position refer s to it being peculiar in the support, not being a position 
traditionally used for the application of trademark signs.  
Position specificity refers to the positioning of the signal on the support and to the proportion of the 
applied signal in relation to th e support, so that it is possible to assess how much of the support that 
signal occupies.  
The sign applied to the support can be composed of any visually perceptible elements or their 
combinations, such as: words, letters, numbers, ideograms, symbols, draw ings, images, figures, 
colors, patterns and shapes, as long as they are not included in the legal prohibitions.  
The position trademark will also be subject to review for all other legal prohibitions for trademarks.  
  WT/TPR/M/432/Add.1  
 
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  NORWAY  
Maritime transport and ports - shipping  
The report from the secretariat contains interesting and encouraging information on  developments 
in the regulatory framework related to maritime transport markets in Brazil that aim to reduce costs, 
encourage competitiveness and stimulate the use o f maritime transports.  
In para 4.270 (page 166) we have noted the information on the reform of the domestic maritime 
transport markets, including the possibility for the use of foreign vessels while maintaining some 
crewing requirements.   
 
Question 1:  
Could you please provide more details on these new rules, including the possibility to use foreign 
registered vessels, the implicit crewing requirements and the results of the reform so far in terms of 
the development in the number of foreign registered ve ssels in domestic maritime transport.  
Reply:  
Brazil 's legislation on maritime and inland transport has recently gone through significant changes, 
with the adoption of Law N° 14.301/2022, aiming at increasing the use of cabotage transport in the 
Brazilian t erritory, including by increasing the employment of foreign vessels. A certain amount of 
foreign vessels can be bareboat chartered by Brazilian navigation companies to perform cabotage 
transport, in a gradually increasing limit, as well as in other certain  conditions established in 
Article  10 of Law 9.432/1997. Chartered vessels must have Brazilian captain, chief engineer, engine 
driver and cabotage master. The use of chartered foreign vessels is expected to increase gradually 
during the implementation peri od of this Law.  
 
Para 4.274 (page 167) contains information on bilateral agreements on maritime transports, 
including recent termination of the bilateral agreements with Chile, Argentina and Uruguay.  
 
Question 2:  We would appreciate information/confirmatio n that these developments also imply that 
cargo sharing reservations contained in these agreements now are terminated.  Could you indicate 
any results with respect to competition, access to maritime transport alternatives and freight rates 
in these trades?  
Reply:  
Brazil confirms that there is no longer cargo sharing reservation for companies of these countries. 
It is expected that the termination of these agreements provides for more competition and access 
to maritime transport alternatives. However, there a re not yet concrete studies available that provide 
for an ex-post assessment of the termination of the agreements.  
The year 2021 presented the highest historical values for the cost of international freight of goods, 
with the Freightos Baltic Index (FBX  - https://fbx.freightos.com/freight -index/FBX ) reaching a 
maximum value of about US D 11,000, against an average value in previous years of USD 1,500. A 
faster than expected recovery in world dema nd, container shortages, rising fuel prices, port closures 
and other bottlenecks contributed to the escalation of costs that began in 2020. For Brazil, the 
escalation of freight prices of imports began in the 3rd quarter of 2020, when it amounted to 
USD 45.1/ton ne imported. In the 4th quarter of 2021, it was US D 104.3/ton ne, configuring growth 
of 131% between the periods. Among the main countries of origins of imports to Brazil, the biggest 
increases of freight prices were in imports from China, with an inc rease of 181%, and from the 
European  Union , with a growth of 61%, in the same period of comparison.  
  WT/TPR/M/432/Add.1  
 
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UNITED STATES  
Part I. Questions based on the Secretariat Report (WT/TPR/S/431)  
Page 11, paragraph 12:  The Secretariat Report notes that "Brazil maintains certain incentives 
conditional on compliance with Basic Productive Process (PPB) criteria, which are set with a view to 
maximizing the utilization of domestically installed productive capacity".  
Question  1: 
● Please provide the full list of PPB criteria.  
Reply:  
Brazil maintains certain incentives conditional on research, development, and innovation (R&D&I) 
investments, especially in the sector of information and communication technologies (ICT) goods. 
In some cases, compliance with Basic Productive Processes (PPB), a set of industrial operations of a 
given product to be carried out in Brazil, is also required.  
 
● What incentives continue to exist on this criteria?  
Reply:  
The law nº 8.248/1991 ( "ICT Law ") provides for financial credit to offset the taxes IRPJ and CSLL, 
proportional to the expenditure on research, development, and innovation (R&D&I) investments.  
 
● Please explain how the PPB criteria are consistent with Article 3 of the Agreement on 
Subsidies and  Countervailing Measures.  
Reply:  
The current PPBs provide for nothing but "a collection of production steps", which must be carried 
out in Brazil, in order for a company to benefit from the subsidy related to the product subject to 
the PPB under the releva nt program. No contingency requirement not to use imported products can 
be discerned from the wording of the legislation that establishes these PPBs, in accordance with 
Article  3 of the Agreement on Subsidies and Countervailing Measures.  
 
Page 24, Paragrap h 1.2.4.1 : We understand that the government is working on a provisional 
measure, ahead of permanent tax legislation, that would allow Brazil's transfer pricing rules to 
conform to international and OECD standards.  
Question 2:  
● What is the expected timeline for this legislation?  
● Do you anticipate any obstacles to passage?  
Reply:  
Brazil and the OECD team elaborated in a joint project a Draft of a Provisional Measure to change 
the Brazilian transfer pricing system and promote the full alignment with th e 
OECD  TP Guidelines  (TPG). This proposal incorporates the arm's length principle (ALP) and all the 
core elements of the TPG. The proposal will establish the necessary framework for the new transfer 
pricing system. Based on this new framework, additional g uidance will be provided through 
secondary legislation in line with the ALP.  
As has been indicated by the government, the Minister of Economy intends to submit the Provisional 
Measure in 2022 to enter into force in 2023. The secondary legislation is under elaboration, and the 
plan is to deliver it by the mid of 2023.  
Given that the change of the current transfer pricing legislation is a priority for the country and also 
for the accession to the OECD, the government will make all reasonable efforts to ensure  the 
approval of the act. In this respect, it is worth mentioning that the government is constantly 
engaging with the private sector to demonstrate the importance of the project, and, in general, the 
business community supports the alignment.  
Concerning po ssible obstacles, taking into account that legislative power in Brazil is vested in the 
Congress, it is not possible to guarantee at the present moment that the measure will be approved 
within the planned time frame.  
 
Page 40, Paragraph 2.20 : The report i ndicates that progress has been made in the use of 
Regulatory Impact Analyses/Assessments (RIAs) by regulatory agencies.  WT/TPR/M/432/Add.1  
 
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  Question 3:  
● Is there a central government body that reviews the RIAs prepared by Brazil's regulatory 
authorities?  
Reply:  
There were major structural changes in the Ministerial reform that took place at the beginning of the 
current administration. The Ministry of Economy is the result of the merger of the former ministries 
of Finance; Planning, Development and Management; Industry, Fore ign Trade and Services; 
and Labor.  
Currently, although there is no central "oversight body" established by law, the Economic Monitoring 
Secretariat ( "SEAE") of the Ministry of Economy takes the role of coordinating regulatory policy in 
Brazil at the federa l level. The SEAE is responsible for issuing reports on the regulatory impacts of 
drafts and proposed amendments to normative acts of general interest to economic agents that are 
submitted to public consultation, including their regulatory impact analyses.  In this context, 
SEAE reviews the quality and provides non -binding assessments of these RIAs and regulations.  
 
Page 40, Paragraph 2.21: The report catalogues a number of Brazilian Government web sites 
where laws can be found.  
Question 4:  
● Is there a web site dedicated to posting draft regulations for public consultation? If so, please 
share the link.  
Reply:  
Currently, Brazilian government bodies are not required to use a specific dedicated website for their 
public consultations. For example, several regulato ry agencies use their own websites and/or 
consulting mechanisms to receive opinions and comments on draft regulations.  
However, efforts are being made by the Brazilian federal government to encourage all government 
bodies to use the dedicated website "Participa+Brasil " 
(https://www.gov.br/participamaisbrasil/pagina -inicial ) to receive comments and opinions from 
interested stakeholders. With the recently enacted Decree No. 11.243/2022 (of 21 October  2022, in 
Portuguese - https://in.gov.br/en/web/dou/ -/decreto -n-11.243 -de-21-de-outubro -de-2022-
438142785 ), from June 2024 on all bodies will be required to use the "Participa+Brasil " website.  
● Do ministries and agencies publish on their web sites draft regulations for comment?  
Reply: 
As mentioned in the reply above, some regulatory agencies publish on their own draft regulations 
for comment, but the federal government has been encouraging all ministries and agencies to use 
the "Participa+Brasil " website to publish draft regulatio ns and receive comments from interested 
stakeholders and, starting in June 2024, all government bodies will be required to use the 
"Participa+Brasil " website to carry out public consultations.  
 
● What is the difference between information included on the Transparency Platform and in 
the Federal Official Gazette?  
Reply:  
The Official Gazette is a "governmental newspaper", whose purpose is to make publicall official 
decisions and other matters of interest. For example, notices regarding social participation 
processes, regulations, personnel appointment ordinances, bidding processes, administrative 
decisions, etc. are included. In short, for something to be valid, it must be published in the 
Official  Gazette.  
The Transparency Portal is an open access website cr eated by the Office of the Comptroller General 
of the Union - CGU, where citizens can find information of public interest. In this Portal there is 
information that was published in the Official Gazette (examples: bidding, purchases made, official 
travel, e tc.), arranged in an accessible way, as well as information that has not been published, but 
is of public interest (example: salaries of each federal government employee).  
 
Page 45, Paragraph 2.32: The Secretariat Report notes that Brazil has no outstandin g notifications 
at the WTO. We congratulate Brazil on its commitment to transparency and multilateralism.  
Question 5:  
● Can Brazil please elaborate on the key elements that have allowed the government to 
successfully submit all of its notifications at the W TO? Brazil's experience may serve to 
inform all Members towards achieving such an outcome.  
 WT/TPR/M/432/Add.1  
 
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Reply:  
The Brazilian notifications to the WTO are prepared in coordination by all Ministries and governmental 
agencies that are responsible for WTO issues and negot iations, mainly the Ministry of Foreign Affairs, 
the Ministry of the Economy and the Ministry of Agriculture. The Ministry of Foreign Affairs centralizes 
all the inputs received from other ministries, revises them and transmits the consolidated 
notificatio ns to the WTO.  
 
Page 52, Paragraph 2.40 : The Secretariat Report states that "negotiations on free trade 
agreements between MERCOSUR and the European Union, a priority for Brazil, and with the 
EFTA countries were in principle concluded in 2019" … but, as of  June 2022, the MERCOSUR -EFTA 
agreement has not been made public and upon its entry into force, the EU -MERCOSUR agreement 
is to provide partial concessions under TRQs.  
Question 6:  
● When can Members expect to see details of the agreement, such as final annexes and tariff 
schedules, made public?  
● Please elaborate on what the TRQ concessions entail.  
Reply:  
The MERCOSUR -EFTA agreement will be made public when certain pending issues are resolved and 
the parties agree on publication. There is currently no time table established in this sense.  
 
Page 61, paragraph 3.5: The United  States notes Brazil continued streamlining foreign trade 
formalities and upgrading its Integrated Foreign Trade System (Siscomex) under its Single Window 
Programme (Programa Portal Único de Comércio Exterior).  
Question 7:  
● Has Brazil put in place mechanisms to maintain funding to support Siscomex?  
Reply:  
In Brazil, export and import operations take place exclusively through Siscomex. Therefore, there 
are no operations on paper or via other systems. In order to use Siscomex, importers are charged 
a specific fee for using the system, which is the way to keep Siscomex functioning and allow its 
evolution.  
 
Page 68, Paragraph 3.38 : The Secretariat Report states that "in 2021, MERCOSUR's Trade 
Commission established a permanent technical committee in charge of updating the preference 
schedules of agreements with third parties to the current NCM (Common MERCOSUR Nomenclature) 
version" . 
Question 8:  
● When is the technical committee expected to complete this work, and where will it be 
accessible to other Members?  
Reply  
The Technical Committee was established as a permanent body, taking into account that the 
updating of the preference sched ules of agreements with third parties requires continuous work. The 
Committee has an annual work programme which outlines its main activities. Transpositions of 
preference agreements are carried out in collaboration with each third party. After the Technic al 
Committee has drafted one transposition, it is considered by MERCOSUR 's Trade Commission, and 
then the document is exchanged with the third parties. The final version for each transposition is 
released when the exercise is concluded with the third party . 
 
Page 73, paragraph 3.53 : The Secretariat Report notes that Brazil's most recent notifications to 
the Committee on Import Licensing date from 2016. G/LIC/N/1/BRA/7 and G/LIC/N/2/BRA/7 are 
both dated 31  August 2016, which was more than six years ago.  
Question 9:  
● Does Brazil plan to  provide annual notifications for the intervening years?  
Reply:  
Regarding import licensing requirements currently in force, Brazil plans to provide a notification in 
the coming weeks. From 2023 on, updated notifications will be provided annually.  
 WT/TPR/M/432/Add.1  
 
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  Page 73,  paragraph 3.55 : The Secretariat Report states that a new licensing system is already 
operational for exports, but will not be up and running for imports until the end of 2023.  
Question 10:  
● Please explain what needs to be resolved to implement the system for imports.  
● How will Brazil work with stakeholders to implement the system?  
Reply:  
Brazil has 26 federal states and 1 federal district. Each has its own VAT system to calculate the state 
tax that must be charged on each imported good. One of the bi g challenges is to integrate all 
these  27 systems into the Single Window so that the importer can pay all taxes and fees under the 
Single Window. Moreover, we also have 22 other government agencies and each one needs to review 
their process and integrate t heir systems into the Single Window system. In addition, there are other 
technical issues regarding the system to be implemented.  
 
Page 74, paragraph 3.59: The Secretariat Report states that Brazil's existing legislation on 
administrative procedures for AD  and CV investigations was consolidated under SECEX 
Ordinance  No. 171 of 9  February  2022, and that these amendments are being translated in view of 
notifying them to the WTO.  
 
Question 11:  
● When does Brazil expect to notify this legislation to the WTO?  
Reply:  
SECEX Ordinance No. 171 of 9 February 2022, which concerns rules  relating to anti -dumping 
investigations, was notified to the WTO on 5 August  2022 and formalized as document 
G/ADP/N/1/BRA/3/Suppl.18. In turn, Decree No. 10,839, from 18  October  2021,  which regulates 
administrative procedures relating to CVD investigations and the application of countervailing 
measures, was notified to the WTO on 5  August  2022 and formalized as document 
G/SCM/N/1/BRA/2/Suppl.22.  
 
Page 80, paragraphs 3.87 -3.95: The Secr etariat Report states that Brazil maintains several 
export promotion programs that are targeted to enhance and promote Brazil's exports of goods.  
Question 12:  
● Can Brazil please explain how implementation of incentives under these programs will 
comply with its obligations of Article 3 of the Agreement on Subsidies and Countervailing 
Measures?  
Reply:  
According to item "k" of Annex I ( "Illustrative List of Export Subsidies ") to the ASMC, an export 
credit practice which is in conformity with the interest rate p rovisions set out on the Arrangement 
on Officially Supported Export Credits (the OECD Arrangement) shall not be considered a prohibited 
export subsidy.  
The benchmark interest rate for Proex is the Commercial Interest Reference Rate (CIRR), which is 
the min imum interest rate stipulated by the OECD Arrangement. Therefore, Proex is in conformity 
with the interest rate provisions of the OECD Arrangement and, hence, is consistent with the ASMC.  
In the case of the export credit insurance programme (SCE), premium rates are set according to the 
methodology established by the OECD Arrangement, which is designed to reflect the credit risk of 
the transaction. Furthermore, net operating cash flow of the SCE has been positive in most years 
since the launch of the program me in 1998, meaning that premium revenues usually exceed 
indemnification expenses. As such, the SCE charges premium rates that are adequate to cover its 
long-term operating costs and losses.  
Page 86, Paragraph 3.109:   
Question 13:  
● Please explain whether the interest rate equalization scheme through BNDES is included in 
Brazil's most recent subsidy committee notification.  
● If it was not included in the notification, why not?  WT/TPR/M/432/Add.1  
 
- 78 - 
 
Reply:  
The vast majority (98.9%) of disbursements by BNDES with interest ra te equalization concerns 
several programs under Plano Safra (an agricultural program). The credit with equalization does not 
correspond in its entirety to a subsidy. All measures conferred through interest rate equalization for 
the production of agricultur al products are notified by Brazil in the DS:1 format. A smaller share of 
disbursements by BNDES (totaling BRL 743 million) amounts to operations under PSI, the 
Investment Support Program, which has been terminated (its last disbursement was provided 
in 2019). 
 
Page 89, Paragraph 3.125:  The Secretariat Report notes that between January 2017 and May  
2022 Brazil made 1,446 notifications to the WTO TBT Committee, of which 689 were regular 
notifications mostly made under Article 2.9 of the TBT  Agreement . For 74  regular notifications (11% 
of all regular notifications made), the timeliness of the submission allowed for a comment period of 
60 days or more.  
 
Question 14:  
● If only 11% of all regular notifications receive a 60 day or longer comment period, what is 
the average time for the other 89% of regular notifications?  
● Please explain why only 11% of regular notifications receive a 60 -day comment period, 
consistent with the recommendation of the WTO TBT Committee that the normal time limit 
for comments on notifi cations should be 60 days.  
 
Reply:  
The average time provided for comments has been 55 days. The difference to the 60 days provided 
for in regular notifications is due to the fact that the effective date that the regulation is published 
in Brazil occurs som etimes a few days before the date of the notification at the WTO. Notifications 
can only be triggered just after the officially published legal processes. Therefore the 60 days for 
comments are provided for in the regulations. In the circumstances that the  period is shorter (due 
to the notification process exceptional delay of a few days) it can usually be extended at the request 
of the interested party.  
 
Page 89, paragraph 3.125 : Among Brazil's notifications to the WTO TBT Committee, we note 
Brazil's July 2022 notification of its proposal to update technical requirements of mobile phone 
charging interfaces, (G/TBT/N/BRA/1409).  
 
Question 15:  
● Please explain the justification for prescribing the mandatory USB Type -C charging interface.  
● What is the rationale for restricting the flexibility for mobile phone producers to use other 
receptacle interfaces that meet existing voluntary international standards?  
● Additionally, can Brazil specify the process it will take to update these requirements to allow 
for new technology and standards that emerge, e.g. wireless charging and other newer 
charging technologies?  
● Does Brazil have any plans to undertake regulatory impact analysis for this regulation given 
its potential scope?  
Reply:  
Firstly, it is important to c larify that the current technical regulations for conformity assessment of 
mobile phone chargers are focused on safety and performance considering how the product is used 
and handled, always aiming at user safety.  
Regarding the objectives of proposing the standardization of charging through usb ports, we believe 
that the proposal, if approved, could achieve the following objectives exemplified below:  
• Reduction of electronic waste. Currently, every time the user buys or exchanges his mobile phone, 
it comes  with a new charger, which generates a large number of obsolete chargers that are unused 
or thrown away.  
• Ease for the user when using and charging their mobile phones, reusing the charger between their 
phones of different models and brands.  
• Decreased i ndustry costs, as there is a standard for shippers.  
Further information can be obtained from "Informe No. 69/2022/ORCN/SOR " (accessible at:  WT/TPR/M/432/Add.1  
 
- 79 - 
 
  https://sei.anatel.gov.br/sei/modulos/pesquisa/md_pesq_documento_consulta_externa.php?eEP -
wqk1skrd8hSlk5Z3rN4EVg9uLJqrLYJw_9INcO4gErf_h9Bj 0UpNGsKPLVUml8h5Cufp8xpyuvmnh4zk -
UBUiWRWVUTHhPFD9Loa_bNRoVA_2jJv -Il0hxES7s4P ) 
This document presents additional details on the construction and rationale of the proposal.  
We would like to point out that the construction of any proposal for technical requir ements related 
to conformity assessment has the participation of the industry, mainly the mobile phone 
manufacturers (which are mostly international and have representatives in Brazil). The proposal was 
discussed jointly with the industry and the majority of manufacturers were in favor of proceeding 
with the suggestion of public consultation to receive contributions from society.  
It is also important to point out that the Anatel 's regulatory process is quite agile, being able to 
update its technical require ments, in exceptional situations, through a simplified process. Finally, 
we understand that the USB -C interface is extensively adopted by mobile phone manufacturers. In 
October of this year, the European Parliament approved, with 602 votes in favour, 13 ag ainst and 
8 abstentions ( https://www.europarl.europa.eu/news/en/press -room/20220930IPR41928 /long-
awaited -common -charger -for-mobile -devices -will-be-a-reality -in-2024), a resolution determining 
that in 2024 mobile phones and other electronic devices will include the USB -C interface.  
Given this fact, major manufacturers have already announced that  new releases will be in line with 
the European resolution even before the deadline for entry into force of the new regulation. 
Considering that the terminals are designed to meet demands on a global scale, it is understood 
that Brazil's proposal through P ublic Consultation 45/22 is not intended to create unjustified barriers 
to trade, but to ally itself to the international effort to reduce costs and e -waste in medium and 
long term.  
The proposal of this Public Consultation would apply to the certification and approval of new products 
from its entry into force. Equipments already approved and available in the Brazilian consumer 
market will not be affected by the new regulation, and their use and sale will be allowed after the 
new rules come into force. The d ecrease in the use of these equipment already approved by Anatel 
and available in the market will occur in an organic and natural way.  
It should be noted that Public Consultation 45/22 doesn 't propose any restriction on the use or 
development of wireless c hargers. It is exclusively intended for wired charging interfaces.  
 Anatel received more than 420 contributions on Public Consultation 45/22, and is currently 
reviewing contributions, including comments submitted by the US Administration on 
25 August  2022.  
 
Page 89, Paragraph 3.126:  According to the authorities, entities seeking accreditation to carry 
out compulsory conformity assessment activities are generally not required to have a permanent 
office in Brazil, but a few technical regulations stipulate it as a prerequisite.  
 
Questio n 16:  
● Please identify which specific technical regulations stipulate that an entity seeking 
accreditation is required to have a permanent office in Brazil.  
 
Reply:  
The relevant regulation is the following: Regulamento Geral de Certificação de Produtos, Inm etro 
Ordinance – 200 de 29/04/2021.  
 
Page 94, paragraph 3.149 : The Secretariat's report notes that "Many federal SOEs are also 
shareholders in various private companies".  
Question 17:  
● Please provide a list of all "private companies" in which federal SOEs h ave a greater than 
50% stake?  
● Please also provide a list of all "private companies" in which federal SOEs control the 
company regardless of the level of ownership?  
● Do any of the shareholdings taken by SOEs in "private companies" come with special rights 
or privileges or constitute "golden shares"?  WT/TPR/M/432/Add.1  
 
- 80 - 
 
Reply:  
Currently, there are two private companies controlled by federal SOEs. They are: BB Seguridade 
and Caixa Seguridade, which are presently subsidiaries of Banco Brasil and Caixa Econômica Federal, 
respectively.  
Considering that under Brazilian legislation the term control refers to the situation where the 
shareholder has more than 50% of voting shares of a company, the only two cases where this is 
verified is with BB Seguridade and Caixa Seguridade.  
There is no knowledge of such situation in neither BB Seguridade  or Caixa Seguridade.  
 
Page 94, paragraph 3.150:  The report notes that the number of federal SOEs is down from 220 
at end 2017 to 154 as of the writing of the report.  
Question 18:  
● Have the rema ining 66 enterprises been privatized or gone out of business?  
● What is the current status of these enterprises?  
Reply:  
As shown in the table below, some enterprises were merged, others liquidated and some privatized 
during the period of 2017 to 2021.  
The table below shows the status of the federal SOEs in Brazil from 2017 to December 2021.  
Page 94, paragraph 3.150:  The report notes that "at the time of Brazil's previous review, 18  SOEs 
remained dependent on Federal Treasury funding for their operations; in  2021 their combined 
budgetary allocations amounted to BRL 26.8  billion".  
 
Question 19:  
● Which SOEs are still dependent on government funding for their operations?  
● It does not appear that any of the funding provided these SOEs is contained in Brazil's 
WTO subsidy notification. Why has Brazil not notified this funding?  
 
Reply:  
In 2021 there were 18 dependent companies and 16 in 2022. The difference refers to INB – became 
a subsidiary of ENBPAR - and EPL - merged into VALEC.  
1.  Amazônia Azul Tecnologias de Defesa S/A - AMAZUL  
2.  Companhia Brasileira de Trens Urbanos - CBTU  
3.  Companhia de Desenvolvimento dos Vales Do São Francisco e do Parnaíba - CODEVASF  
4.  Companhia de Pesquisa de Recursos Minerais - CPRM  
5.  Companhia Naci onal de Abastecimento - CONAB  
6.  Empresa Brasil de Comunicação - EBC 
7.  Empresa Brasileira de Pesquisa Agropecuária - EMBRAPA  
8.  Empresa Brasileira de Serviços Hospitalares - EBSERH  
9.  Empresa de Pesquisa Energética - EPE 
10. Empresa de Trens Urbanos d e Porto Alegre S/A - TRENSURB  
11. Hospital de Clínicas de Porto Alegre - HCPA  
12. Hospital Nossa Senhora da Conceição S/A - CONCEIÇÃO  
13. Indústria de Material Bélico Do Brasil - IMBEL  
14. Nuclebrás Equipamentos Pesados S/A - NUCLEP  
15. Telecomunicações Br asileiras S/A - TELEBRAS  
16. VALEC - Engenharia, Construções e Ferrovias S/A  
 
State -dependent companies are basically companies that provide public services in the areas of rail 
transport (CBTU, Trensurb and Valec), hospital services (HCPA, HNSC and EBSERH ), 
communications (EBC), supply and storage of agricultural products (CONAB), research and project 
development (Codevasf, CPRM, EPE, EPL, Amazul and Embrapa), and industrial companies of 
strategic public interest (INB, Nuclep, Imbel and Ceitec).  
 
Page 95, paragraph 3.153 : 
Question 20:  
● What SOEs continue to hold dominant positions in their respective markets?  
● What action is Brazil taking to stem their market dominance and open up competition?  WT/TPR/M/432/Add.1  
 
- 81 - 
 
  Reply:  
Petrobras remains dominant in the oil and gas sector. Eletrobras was privatized in 2022.  
Brazil has been pushing forward privatizations, as occurred with Eletrobras in 2022.  
 
Page 96, paragraph 3.160 : The report notes that direct award contracting remains possible for 
procurement aimed at fostering sc ientific and technological development and the procurement of 
strategic products for the Unified Health System (SUS).  
Question 21:  
● What was the value of direct award procurement for the SUS for 2017 -2021?  
● How many direct award contracts were signed during that period for the SUS?  
● What percentage of these contracts required the transfer of technology?  
Reply:  
Given the difficulties on providing an assessment of the exact value of direct award procurement 
and of the number of contracts or percentages for the Unified Health System (SUS), a National Public 
Procurement Portal (PNCP) was created as an official website for the centralized and mandatory 
disclosure of the acts required by the procurement law. With its introduction and progressive use 
beginning in April 2023, the PNCP will offer, in the medium -term, a unified information registration 
system from which to gather relevant statistics from central and subnational entities participating 
in SUS. The PNCP can be accessed at https://www.gov.br/pncp/ . 
Procurement of strategic products for SUS follows the National Policy of Innovation in Health, which 
includes provisions related to public private partnerships. Those partnerships often invol ve 
cooperation both between public institutions and between public institutions and private entities for 
the development, transfer and absorption of technology, as well as for technological training 
concerning strategic products to fulfil the demands of th e SUS. This type of partnership represents, 
in any case, a minor part of procurement and direct awards for SUS.  
 
Page 97, paragraph 3.166 : Brazil has started negotiations for accession to the WTO  Agreement  
on Government Procurement (GPA).  
Question 22:  
● Please detail how the preferences outlined in this paragraph can be implemented consistent 
with the non -discrimination obligations of the GPA.  
● Do these tie -breaking preferences apply to all procurement?  
Reply:  
On joining the GPA, Brazil will not apply any preference to the detriment of other GPA parties related 
to goods and services produced in the country or produced or provided by Brazilian companies in 
procurement modalities covered by that Agreement. This will prevent use of the tie -breaking 
criterion r eferred to in the question. That criterion would, in any case, be very rarely, if ever, applied, 
since it would require that the bids were of the same value and that other criteria fail to break the 
tie between bidding companies.  
 
Page 99, paragraph 3.176 : The Secretariat's Report states that "[a]s of June 2022, Brazil was a 
party to 15 of the 26 treaties administered by the World Intellectual Property Organization (WIPO), 
having ratified the Protocol Relating to the Madrid Agreement Concerning the Internat ional 
Registration of Marks in July 2019" and that "the authorities indicate that Brazil is in the process of 
evaluating the possibility to accede to the Hague Agreement Concerning the International 
Registration of Industrial Designs".  
Question 23:  
● Does Br azil plan to join additional intellectual property treaties? If so, which ones?  
Reply:  
Brazil has taken steps aimed at acceding to the WIPO Performances and Phonograms Treaty (WPPT) 
and also the Budapest Treaty. The processes of accession are currently und er examination by 
Congress for approval and further ratification by the Executive power.  
Brazil has also started a domestic process aimed at acceding to the WIPO Copyright Treaty (WCT) 
and the Beijing Treaty on Audiovisual Performances, which will be sent to Congress for its 
consideration.  
 WT/TPR/M/432/Add.1  
 
- 82 - 
 
Page 101, paragraph 3.186 : In the context of copyright law and, in particular, collective 
management of copyrights, the Secretariat's Report states that in Brazil "work on a legal framework 
for the development and use of  artificial intelligence is ongoing".  
Question 24:  
● Please explain whether and how artificial intelligence will interface with or contribute to the 
monitoring and inspection of collective management of copyright.  
● Please expand on the approach and status of the legal framework under consideration 
regarding the development and use of artificial intelligence in this context.  
Reply:  
After approval in the lower chamber (Chamber of Deputies) of the National Congress, the Legal 
Framework for Artificial In telligence (Bill No. 21/20) is currently being considered by the Federal 
Senate, together with two other legislative proposals dealing with the same theme (Bills 5051/2019 
and 872/2021). The English translation of these bills is available on the official w ebsite of the Senate 
(link).  
On 30 March  2022, the president of the Federal Senate installed a commission of jurists (hereafter, 
"Commission ") to assist in the preparation of a substitute bill to replace Bills 5.051/2019, 21/2020 
and 872/2021 (cf. Act of t he President of the Federal Senate No. 4, 2022).  
Article  5, item VIII, of the text approved by the Chamber of Deputies (Bill No. 21/20) provides that 
"availability of data" is one of the "principles for the development and application of artificial 
intelli gence in Brazil". According to this principle, there is no "infringement of copyright by the use 
of data, database and texts protected by it, for the purpose of training artificial intelligence systems, 
provided that there is no conflict with the normal ex ploitation of the work by its owner ".  
On the other hand, the Commission of jurists established by the Senate to analy se proposals to 
regulate the use of Artificial Intelligence (hereinafter, "Commission"), stated during its 9th ordinary 
meeting, held on 20 October  2022, that it will present a substitute bill that will be broader and more 
detailed, with the following structure:  
Chapter I – Preliminary Provisions, which is divided into four topics: a) scope of application, b) a 
topic on principles, c) an art icle on fundamentals and d) an article related to definitions.  
Chapter II - Rights  
Chapter III – Risk Assessment and Categorization: The Commission's bill will contain criteria for risk 
classification and rules for algorithmic impact assessment aimed at hi gh risk.  
Chapter IV – Governance of the Artificial Intelligence System: the Commission's bill will detail 
procedures and obligations related to documentation, among others.  
Chapter V - Civil Liability: this is a topic already addressed in other bills and a lso in PL 21/2020 . 
Chapter VI – Supervision and Inspection.  
Chapter VII - Final Provisions: In this chapter, topics such as data mining, research and copyright 
will be discussed.  
On 30  March 2022, the president of the Federal Senate installed a commission of jurists 
(hereafter,  "Commission ") to assist in the preparation of a substitute bill to replace Bills 5.051/2019, 
21/2020 and 872/2021 (cf. Act of the President of the Federal Senate No. 4, 2022). Within the scope 
of the Commission, a series of public he arings was held in which more than 50 experts were heard. 
Afterwards, work was carried out in an international seminar, with the participation of experts from 
all over the world. There was also a public consultation process, within which 102 contributions were 
obtained, later consolidated and systematized with the support of the legislative consultancy of the 
Senate (Federal Senate Information Note - 2022-08682). The commission is expected to complete 
its work on 7  December 2022, when will be presented a fi nal report accompanied by a proposal for 
a substitute bill.  
As to whether and how artificial intelligence will interface with or contribute to the monitoring and 
inspection of collective management of copyright, there is still no public policy or specific normative 
proposition addressing these issues jointly.  
 
Page 101, paragraph 3.187 : The Secretariat's Report states that "[u]nder Brazilian law, copyright 
holders may initiate procedures for the prosecution of importers of pirated goods".  
Question 25:  
● Please provide representative examples of the types of copyright piracy cases that have 
been prosecuted under these procedures.  
● Please provide information on the number of procedures initiated and prosecutions carried 
out during the review period.  
● Addition ally, please indicate the number of prosecutions that have resulted in convictions.  WT/TPR/M/432/Add.1  
 
- 83 - 
 
  Reply:  
The Brazilian government has undertaken coordinated actions among different institutions in order 
to combat piracy. Many different initiatives have been undertaken s uch as "Operação 404 ", aimed 
at digital piracy in 11 federal states. The damage caused by illegal streaming is estimated at 
BRL 366 millions per year.  
Page 101, paragraph 3.188 : The Secretariat's Report states that "[a]lthough a comprehensive 
mechanism for the expeditious removal of copyright -infringing content has not yet been formalized 
in Brazilian legislation, Brazil's Superior Court of Justice (Superior Tribunal de Justiça) has ruled that 
failure to act within 24 hours of receipt of a priv ate (extrajudicial) notification containing the precise 
address (URL) of the allegedly infringing content may result in civil liability of the Internet service 
provider".  
Question 26:  
● Please provide representative examples of situations in which this ruling was applied and 
civil liability was found based on failure to act within 24 hours. Please also provide statistics, 
if available, on how the ruling has impacted stakeholders.  
● Please describe any developments that have occurred since this ruling (e.g.  hearings, 
legislative or regulatory proposals, precedential court cases) that relate to legal mechanisms 
for the expeditious removal of copyright -infringing content, including those that address the 
liability of Internet service providers.  
Reply:  
In the j udgment of the Special Appeal ( "Recurso Especial ") number 1531653/RS (judged on 
13/06/2017), the Superior Court of Justice ("STJ") traced the jurisprudential evolution on cases of 
civil liability for providers of "internet applications " ("a set of function alities that can be accessed 
through a terminal connected to the Internet ") for content generated by third parties.  
In summary, the STJ has adopted the thesis of subjective responsibility, according to which the 
application provider is jointly and severall y liable with the person who generated the illicit content 
if, upon becoming aware of the damage caused by certain information, it does not take the necessary 
measures to its removal. This knowledge is given through extrajudicial notification, for events t hat 
occurred before the entry into force of Law 12,965 of 23 April  2014 (known as "Marco Civil da 
Internet").  
However, after the enactment of the aforementioned law, the responsibility of the application 
provider began to require, as a general requirement , non -compliance with a specific judicial 
notification that determines the removal of illegal content from a third party.  
It is extremely important to emphasize that this new general rule does not apply to copyright 
violations by express provision of Law 1 2,965, which excludes from its scope of incidence the 
violation of copyright practiced by third parties.  
This is established by § 2 of art. 19 and art. 31 of the Marco Civil da Internet, verbatim:  
"Art. 19 (...)  
§ 2 The application of the provisions of thi s article to infringements of copyright or related rights 
depends on a specific legal provision, which must respect freedom of expression and 
other  guarantees provided for in article 5 of the Federal Constitution ". 
(…) 
"Art. 31. Until the entry into force of the specific law provided for in § 2 of art. 19, the Internet 
application provider's liability for damages resulting from content generated by third parties, in the 
event of copyright infringement author or related rights, will continue to be governed b y the 
legislation on copyright in force on the date of entry into force of this Law ". 
Therefore, in case of copyright infringement, the old jurisprudence of the Superior Court of Justice 
was not affected by the supervenience of the "Marco Civil da Internet ", so the understanding that, 
when it is communicated that a certain message published on an Internet application provider has 
potentially illegal content, said provider must "preventively remove it within 24 hours, under penalty 
of joint and several liabi lity with the direct author of the damage due to the omission practiced ". 
A few references, in this sense, are Special Appeal ( "Recurso Especial ") N. 1,406,448/RJ, judged on 
10/15/2013 (before "Marco Civil da Internet "); and Special Appeal N. 1,512,647 – MG, judged on 
08/05/2015 (after "Marco Civil da Internet "). Available at: https://tinyurl.com/22w4uxfb . 
From this last judgment we extract the following relevant excerpt:  
"(…) Law no. 12.965/2014 expressly exclud es from its scope of incidence the violation of copyright 
practiced by third parties - which is the object of the present demand -, referring to the specific legal 
discipline any civil liability of the internet provider for 'piracy ' practiced by users of t he service.  
(…) WT/TPR/M/432/Add.1  
 
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[T]here is no doubt that it was not the intention of the legislator to deal with a delicate issue within 
the scope of the first regulation of the internet in Brazil.  
In the words of the illustrious rapporteur of PL n. 2,126/2011 [the bill that gave rise to the Civil 
Rights Framework for the Internet], Deputy Alessandro Molon, 'since the project began to be 
processed in the Chamber, it became clear that copyright would be excluded from the Marco Civil 
da Internet ' (…). 
Other judgments along the same lines handed down by the Superior Court of Justice: REsp N. 
1323754/RJ, judged on 06/19/2012; REsp 1193764/SP, Rel. Ministra NANCY ANDRIGHI, TERCEIRA 
TURMA, judged on 12/14/2 010, DJe 08/08/2011; Resp 1.323.754/RJ, Rel. Ministra NANCY 
ANDRIGHI, TERCEIRA TURMA, judged on 06/19/2012.  
In summary, failure to act after receipt of an extrajudicial (private) notification containing the precise 
address (URL) of the allegedly infringing  content may result in civil liability of the internet service 
provider. Therefore, regarding copyright infringing content, Brazil adopts a "notice and takedown" 
regime similar to those that already exist in the United States or the European  Union  (in the later, 
before the Directive on Copyright in the Digital Single Market – Directive 2019/790). This regime is 
not expressly provided for in copyright law but stems from the interpretation of the law made by the 
Superior Court of Justice in cases suc h as the aforementioned "Recurso Especial " ("Special 
Appeal")  No. 1,512,647. It should be noted that the "reasonable period" for the removal of copyright 
infringing content is generally understood by the Court as 24 hours after receipt of the extrajudicial  
notification – a deadline that certainly would be compatible with the "expeditiously" removal 
requirement under the US Digital Millennium Copyright Act (DCMA).  
 
Page 102, paragraph 3.189 : The Secretariat's Report states that "civil and criminal penalty 
provisions in Brazil's legislation for violations of industrial property, copyright, and related rights 
remained unchanged during the review period".  
Question 27:  
● Please provide an update on the status of Bill 333/1999 to increase penalties for crimes 
relate d to counterfeiting.  
Reply  
Brazil is implementing a new process for imports that will require the prior completion of a catalogue 
with attributes of the products to be imported. Among these attributes with mandatory completion, 
there will be information re quired on trademark registration.  
 
Page 102, paragraph 3.189 : The Secretariat's Report states that "[p]ursuant to Brazil's customs 
legislation, the RFB has authority to seize IP -infringing goods ex officio  or at the request of the right 
holder".  
Question 2 8: 
● Does Brazil have plans to implement a system for recording trademarks at Customs to 
streamline enforcement efforts related to the seizure of counterfeit goods? If so, please 
describe those plans.  
Reply:  
Brazil is implementing a new import process that w ill require the prior completion of a catalog with 
attributes of the products to be imported. We will include attributes on trademark registration with 
mandatory completion.  
 
Page 102, paragraph 3.191 : The Secretariat's Report states, in the context of car rying out 
three  phases of Brazil's "Operation 404 against piracy", that "coordinated actions resulted in the 
shutdown of 334 websites and 94 streaming applications offering copyright -infringing content, the 
execution of over 60 search and seizure warrants across 12 Brazilian states, and several arrests".  
Question 29:  
● Please describe the criminal prosecutions that resulted from these enforcement actions, 
including the criminal statutes under which charges were brought and the current status of 
the prosecutions.  
● Are any additional phases planned for this enforcement operation?  
● If so, what are the goals and target outcomes?  
Reply:  
The results of the operation are as follows: Federal Justice has transferred 16 cases to its jurisdiction; 
Agreements were  reached in 4; 9 cases are still awaiting further investigation; and 51 cases are WT/TPR/M/432/Add.1  
 
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  waiting to be judged. The targets of the operation were charged with copyright infringement, criminal 
association and money laundering.  
 
Page 103, paragraph 4.4:   
Question 3 0: 
● Please detail the concessional loans that are available to local manufacturing suppliers and 
the "production step -related local content requirements tied to domestic support measures".  
Reply:  
Brazil maintains certain incentives conditional on research a nd development (R&D) investments, 
especially for information and communication technologies (ICT) goods. In some cases, compliance 
with Basic Productive Processes (PPB) is also required, which stands as a set of industrial operations 
of a given product to be carried out in Brazil.  
 
Page 105, paragraph 4.14 : The Secretariat Report states that "wheat remains the single most 
important import commodity. Other major imports include maize, malt, wine, olive oil, rice, potatoes, 
and garlic". The United States note s that these agricultural import products by Brazil are subject to 
a 25% merchant marine renewal tax (MMRT) on freight costs when received at Brazilian ports. The 
MMRT is supposed to finance development of the Brazilian merchant fleet and shipyard industry , but 
the tax is only applied to imports – exports are exempt even though Brazilian agricultural exporters 
are heavy users of Brazilian shipyards.  
 
Question 31:  
● Please explain if the MMRT is intended to cover expenses associated directly with importing 
products (i.e. costs of services rendered).  
● If so, how was the 25% rate determined?  
● Please confirm that Brazil does not charge an MMRT tax rate for product exports.  
● Please explain if there is a different treatment when the MMRT is applied on mari time imports 
from Mercosur members vs. non -Mercosur partners.  
 
Reply:  
The Additional on Freight for the Improvement of Merchant Marine (AFRMM) is not intended to cover 
costs associated directly with importing products. Under Brazil's law, it is a Contribut ion on 
Intervention in the Economic Domain (CIDE) levied in the realm of foreign trade. As of today, the 
rate for both long haul and cabotage navigation is 8% (Law No. 14.301 of 7 January  2022), in 
accordance with GATT  1994 Article III. According to commit ments undertaken under the Southern 
Common Market agreements, maritime imports from Mercosur countries are exempt of the AFRMM.  
 
Page 106 -107, paragraph 4.18 : The Secretariat Report states that in 2019, the Brazilian 
government "re -established a tariff rat e quota (TRQ) for wheat amounting to a volume 
of 750,000  metric tons (MT) benefitting from a duty -free intra -quota rate". The United States notes 
that in November 2019, Brazil implemented the commitment, first as a temporary one -year measure 
and then perma nently on 1  December 2020, through Decree 10.557. The TRQ fill -rate only reached 
12% in 2021 compared to 100% utilization in 2020.  
 
Question 32:  
● Please explain the administrative methods used to implement the TRQ.  
● Please describe any policy measures impeding the full utilization, such as a 25% Marine 
Merchant Renewal Tax.  
 
Reply:  
80% of the quota is distributed based on the import history of the interested companies in the 
last 36 months (performance quota), and 20% is destined to companies t hat have not earned a 
performance quota as well as to companies that have exhausted their performance quota.  
For further information, see SECEX Ordinance No. 75, of 2020.  
The fill rate is a result of market circumstances and trade decisions taken by privat e operators. For 
example, there was an increase of approximately 20% in wheat imports from MERCOSUR countries 
in 2021 compared to 2020. From Argentina alone, imports in volume grew more than the total 
volume of BRAQ002. This fact seems to indicate that imp orters opted to source wheat from within 
the trade bloc instead of resorting to the import quota.  WT/TPR/M/432/Add.1  
 
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The Brazilian consumption of wheat in the last 10 years had a maximum volume of 
approximately  12 million  tons. In the year 2021, national production was estim ated at 
8.1 million  tons, while imports from MERCOSUR Members totaled 6.0 million tons. Discounting 
1.1 million tons exported, it appears that these imports, added to national production, fully met 
demand, reducing interest in imports from other sources. T hroughout 2021, there were few requests 
for import licen ces in the WTO  quota.  
General trade data is available, in English, at: http://comexstat.mdic.gov.br/en/geral/65864 . 
There were no operationa l or regulatory changes in relation to the administration of the TRQ that 
could have affected imports under BRAQ002 in 2021, compared to 2020.  
 
Page 108, paragraphs 4.24 and 4.42 : The Secretariat Report indicates that Brazil had very little 
market price support during the covered period. Table 4.2 shows agricultural support numbers 
provided by the authorities, including market price support of 56 in 2019, 860 in 2020, and 
4,915  estimated in 2021 (units not given). Paragraph 4.42 gives market price support numbers 
for 2017 and 2018. The Government Report states (page 39) that Brazil has not provided market 
price support to agricultural products between the last review (in early 2017)  and agricultural 
year 2019/2020.  
 
Question 33:  
 
● Please confirm whether market price support in table 4.2 is in millions of USD.  
 
Reply: Yes.  
 
● Please explain the discrepancy between the Government Report (Page 39, paragraph 4.93) 
indicating that no market price support was provided through 2019/20 and Table 4.2 of the 
Secretariat Report indicating that "Support based on commodity output – MPS" worth 
USD 56 million was given in 2019.  
 
Reply: The difference is due to the fact that table 4.2 utilizes the OECD methodology, while page  39 
of the Government Report refers to the WTO methodology.  
 
Pages 115, paragraph 4.40 : The Secretariat Report describes Brazilian government programs 
designed to implement Brazil's guaranteed minimum prices, including the Premium for Product 
Outflow (PEP) program and the Premium Equalizer Payment to the Producer (PEPRO) program.  
G/AG/N/BRA/ 58 indicates that payments were made under PEP and PEPRO for maize and rice in 
agricultural year 2017/2018. G/AG/N/BRA/69 indicates that payments were made under PEPRO for 
oranges in agricultural year 2019/2020. In AG IMS 87014 Brazil stated that PEP and P EPRO are 
triggered when market prices are below minimum prices, and the payments are not contingent on 
export. During Brazil's last Trade Policy Review (see WT/TPR/M/358/Add.1) Brazil explained that 
PEPRO or PEP  payments may be made upon receipt of interna l commercialization or export 
registration/declaration. Since the programs require these types of documentation, this suggests 
that Brazil has information on which shipments were exported, and which went to domestic 
destinations (at least initially).  
 
Ques tion 34:  
● Please provide information from the reporting period on the value and quantity of PEP/PEPRO 
product shipments that were headed for domestic and export destinations, respectively.  
● Please indicate the states or regions where these shipments originat ed. 
● Please share the domestic and minimum prices that were used to calculate the benefits 
under PEP and PEPRO for these shipments.  
 
Reply:  
The PEP and PEPRO programs are used to facilitate the flow of products from producing regions 
where there is a surplu s of production, to consumer regions in Brazil where there is a shortage. 
Payment is contingent upon presentation of proof of sale and proof of removal of goods from 
producing regions. There is no available information on destinations.  
The shipments for the period originated in the states of Goiás, Mato Grosso do Sul, Mato Grosso, 
Paraná, Rio Grande do Sul and Santa Catarina.  WT/TPR/M/432/Add.1  
 
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  There is no available data at this level of detail.  
 
Page 115 -116, Table 4.6 : The Secretariat Report describes the Federal Government Acquisition 
(AGF) program, through which Brazil's National Food Supply Agency (CONAB) procures government 
stocks at guaranteed minimum prices. G/AG/N/BRA/58 Supporting Table DS:1 included 
USD 77.3 million for acquisition of agricultural products for public stocks, while G/AG/N/BRA/63 
included USD  28.7 million, and G/AG/N/BRA/69 included 5.5  million, all under the same description. 
These figures seem to suggest that Brazil's spending to facilitate acqu isition of public stocks has 
reduced steadily over the review period.  
 
Question 35:  
● Please confirm whether the volume of public stocks acquired has been reduced, or if 
administrative overhead costs have reduced. Please explain what accounts for the 
change( s). 
● Did the National Food Supply Agency (CONAB) conduct any auctions during the review period 
to dispose of public stocks?  
● If no auctions were conducted, how did Brazil dispose of public stocks?  
 
Reply:  
Government purchases occur through "Federal Governmen t Acquisitions" (AGF) and through "Option 
Contracts" (COV), when market prices are below the minimum price of the products.  
Due to the fact that market prices have been above the minimum prices for the last four years, there 
have been no purchases of produ cts by the Government through AGF and COV.  
The stocks then existing were sold mainly through public auctions and over -the-counter sales directly 
to small consumers, to supply the markets.  
 
Page 119, paragraph 4.48 : Paragraph 4.48 describes agricultural zoning requirements that are 
being implemented to promote environmental sustainability.  
 
Question 36:  
● Please explain the environmental sustainability criteria applicants are required to meet in 
order to be eligible fo r concessional credit and subsidized insurance programs.  
 
Reply:  
General environmental sustainability criteria for the Rural Insurance Premium Subsidy Program 
(PSR) and for concessional credit lines under Plano Safra are as follows:  
 ·   A valid registrati on in the Rural Environmental Registry (CAR);  
·   The enterprise should not be totally or partially inserted in Preservation Areas ( "Unidades de 
Conservação "), except if it the economic activity is in conformity with the Preservation Area 
Management Plan ( "Plano de Manejo da Unidade de Conservação "); 
·   The enterprise should not be in the Amazon Biome if the property area is under a valid 
embargo due to economic activities being undertaken in illegal deforestation area of the 
property.  
 Furthermore, as an incentive for the adoption of sustainable practices, a higher premium subsidy is 
paid for those producer contracting policies and a lower interest rate if offered for those producers 
obtaining financing for activities that fall within the ABC Program (Low Carbon Emission Agriculture).  
 In the Rural Insurance Premium Subsidy Program (PSR) there are still no environmental 
sustainability criteria as a requirement for participation in the Program. However, as an incentive for 
the adoption of sustainable practic es, starting in 2023, a higer subsidy percentage will be applied 
for those operations linked to the ABC Program (Low Carbon Emission Agriculture).  
 The environmental requirements to access rural credit are the following:  
 Valid registration in the Rural En vironmental Registry (CAR);  WT/TPR/M/432/Add.1  
 
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 The enterprise should not be totally or partially inserted in Preservation Areas ( "Unidades de 
Conservação "), except if it the economic activity is in conformity with the Preservation Area 
Management Plan ( "Plano de Manejo da U nidade de Conservação "); 
 The enterprise should not be in the Amazon Biome if the property area has valid embargo due to 
the economic activities undertaken in illegal deforestation area of the property.  
 
Page 130, Paragraph 4.88 : The Secretariat Report states that "in March 2022, Brazil reduced its 
import tariff on ethanol (HS 2207) from 18% to zero until 31 December 2022. The tariff rate 
quota  (TRQ) for ethanol expired on 14 December 2020".  
 
The United States commends Brazil's leadership in temporarily reducing import tariffs acro ss many 
staple foods and commodities, including wheat and ethanol, during this period of global inflationary 
price increases. As the top two ethanol producing and consuming countries, our joint efforts to 
further develop the global market for this renewabl e energy source are paramount. Hence, under 
increasing global energy costs for consumers coupled with the need for more sustainable and 
renewable sources of energy, we encourage Brazil to make permanent the zero percent duty on 
ethanol imports from non -Mercosur trading partner countries.  
 
Question 37:  
● Can Brazil provide assurances to trading partners that the tariff rate will be maintained 
at zero for imports of ethanol from non -Mercosur origins after 1 January 2023?  
 
Reply:  
The aforementioned tariff reduc tion is covered by the Brazilian  List of Exceptions to the Common 
External Tariff  (LETEC). All  MERCOSUR member States are currently authorized to have a basic list 
of temporary national exceptions, within their WTO bound rates, although there are different  
provisions and timeframes for each country.  
  
Permanent changes on Common External Tariff are negotiated within Mercosur, following regional 
regulations.  
 
● What processes need to be undertaken by Brazil before 1 January 2023 to avoid a snap -
back to 20% for imported ethanol from non -Mercosur trading partners?  
 
Reply:  
Procedures related to tariff changes in Brazil are provided for in GECEX Resolution 207, of 
28 May 2021.  
 
Page 146, paragraph 4.165: The Secretariat Report notes the successful launch of the Central 
Bank's instant electronic payment system, PIX. The United States supports the expansion of 
electronic payment systems (EPS) that enhance financial access and inclusivity, but we note that 
the BCB's Competitiveness and Market Structure Department bo th regulates the EPS market and 
oversees the operations of PIX, which can be viewed as a competitor to other electronic payment 
systems.  
 
Question 38:  
● Is Brazil taking steps to separate the regulatory and commercial function of this department 
in order to ensure fair competition and regulatory neutrality?  
 
Reply:  
First all, it is important to mention that Pix is an open payment scheme that provides a common 
infrastructure and set of rules for more than 700 private payment service providers (PSP) in an 
innovative and competitive environment. The Central Bank of Brazil (BCB) does not provide any 
service to final users (merchants or individuals), who are served exclusively by banks and non -banks 
participants.  
 
Other instant payment systems, such as the Cod i (Mexico), TIPS (EU), UPI (India) and 
FedNow  (USA), were (or are being) developed under the initiative, or with substantial involvement, 
of central banks. Similarly, to these initiatives, the Pix infrastructure is a public good. Its provision 
by the CBB a ims at increasing the efficiency of the Brazilian payment system. The BCB pursues no WT/TPR/M/432/Add.1  
 
- 89 - 
 
  profit objective with Pix. The fee levied by the BCB on Pix participants is set to cover operational 
costs.  
 
Moreover, in accordance with Central Bank of Brazil statues, a ll policy and regulatory decisions at 
taken by the Central Bank 's board. Accordingly, no single department, or directorate, has leverage 
to unilaterally influence policy, as all decisions are subject to a holistic approach and reviewed by all 
areas of the central bank. In particular, this vetting process verifies the compliance to 
Law 12.865/2013, which mandates regulatory neutrality by the Central Bank.  
 
Part II. Questions based on the Government Report (WT/TPR/G/431)  
Page 13, paragraph 2.57 :  
Question  39: 
● Brazil's latest revised offer for GPA accession, presented in August 2022, indicated that it 
would be updated in September 2022. Can Brazil provide an update on when this offer will 
be revised?  
Reply:  
Brazil submitted a revised offer for GPA accession in November 2021 and its final offer on 
14 June 2022. Internal consultations are ongoing regarding the content of the communication 
referenced in Notes 4 and 5 to Annex 3 of the final offer. Brazil will soon reply and circulate the 
remaining ques tions concerning clarifications and comments on the final offer and hope to continue 
the productive engagement to advance and conclude its accession.  
 
Page 19, paragraph 3.22 :  
Question 40:  
● How does Brazil plan to employ the May 2022 law granting the gover nment of Brazil the 
authority to unilaterally retaliate against countries that are parties in stalled trade disputes 
with Brazil at the WTO?  
● Would Brazil notify the WTO in advance of using this measure?  
 
Reply:  
Law N o. 14.353/2022 allows the Brazilian gove rnment to suspend concessions and other obligations 
with respect to WTO Members that appealed "into the void " (i.e. to a non -functioning Appellate  Body) 
panel reports in disputes in which Brazil is the complainant and the violation of WTO rules was found, 
thereby blocking the procedures. Since Brazil has not so far used that Law, no further detailed 
procedures other than the rules already set out in the Law are presently available. Brazil does not 
understand there to be an obligation to notify the WTO in ca se it decides to use the Law.  
 
Page 19, Paragraph 3.24:  The United States congratulates Brazil on the efforts it has undertaken 
to forgo the use of special and differential treatment in current and future WTO negotiations. As 
Brazil stated in its Governmen t Report, this precedent will "help move the WTO forward".  
Question 41:  
● Can Brazil please elaborate on what it considers the key elements that allowed the 
government to accomplish this? Brazil's experience may serve to inform both developing 
Members and donors on how to successfully achieve such an outcome.  
Reply:  
Brazil understands that Special and Differential Treatment (SDT) should be targeted towards 
Members who truly need such flexibilities and contribute to build a pathway leading to the full 
implem entation of WTO provisions as a way to promote development, which is one of the goals of 
the multilateral trading system. Brazil has committed to start to forgo the use of SDT in current and 
future negotiations. Brazil has consistently engaged in discussio ns aiming at revitalizing and 
strengthening the multilateral trading system and ensuring that it remains beneficial to all its 
members.  
 
Page 22, paragraph 3.43 : The Government's Report states that "[i]n 2019, trade -related 
agreements were signed on the f ollowing issues: … Geographical Indications for numerous 
products  …". WT/TPR/M/432/Add.1  
 
- 90 - 
 
Question 42:  
● Please specify the agreements, products, and terms referenced in this statement.  
● Please clarify whether earlier protected trademark rights and geographical indications (GIs)  
and evidence of the term as a common name for a good in Brazil are grounds for refusing, 
opposing, and/or cancelling GI protection sought under these agreements?  
● Please describe the transparency and due process mechanisms, including opportunities for 
third-parties to provide input, with respect to the recognition of terms as GIs, including 
terms identified in trade agreements.  
Reply:  
The statement refers to the The European  Union -Mercosur Trade Agreement.  
According to the EU -Mercosur agreement, the Parties shall protect the geographical indications 
referred to in Annex of this agreement also where a prior trademark exists. A prior trademark shall 
mean a trademark, which has been applied for, registered or established by use, if that po ssibility 
is provided for by the legislation concerned, in good faith in the territory of one Party before the 
date on which the application for protection of the geographical indication is submitted by the other 
Party under this Agreement.  
Such trademark may continue to be used, renewed and be subject to variations which may require 
the filing of new trademark applications, notwithstanding the protection of the geographical 
indication, provided that no grounds for the trademark 's invalidity or revocation e xist in the 
legislation on trademarks where the trademark has been registered or established.  
Neither the prior trademark nor the geographical indication shall be used in a way that would mislead 
the consumer as to the nature of the intellectual property r ight concerned.  
Besides, the Parties shall not be obliged to protect a geographical indication in the light of a famous, 
reputed or well -known trademark, where the protection is liable to mislead the consumer as to the 
true identity of the product.  
Nothing  shall prevent the use by a Party, with respect to any product, of a customary name of a 
plant variety or an animal breed, existing in the territory of that Party as of the date of entry into 
force of this Agreement.  
Nothing shall prevent the use by a Part y of an individual component of a multi -component term that 
is protected as a geographical indication in the territory of that Party if such individual component is 
a term customary in the common language as the common name for the associated good.  
Nothing  shall require a Party to protect a geographical indication which is identical to the term 
customary in common language as the common name for the associated good in the territory of that 
Party.  
If a translation of a geographical indication is identical wi th or contains within it a term customary 
in common language as the common name for a product in the territory of a Party, or if a 
geographical indication is not identical with but contains within it such a term, these provisions shall 
not prejudice the ri ght of any person to use that term in association with that product.  
According to the EU -Mercosur agreement, for the recognition of geographical indications listed in the 
agreement, the parties must have completed an objection procedure or public consultat ion related 
to these GIs in their respective territories.  
Pages 22 -23, paragraph 3.46 : The Government's Report states that "the European  Union  and 
MERCOSUR reached a political agreement in 2019" on a "comprehensive trade agreement" covering, 
inter alia , intellectual property issues, and that "[a]s of July 2022, the agreement's texts were 
undergoing legal and formal revision …".  
Question 43:  
● Please clarify whether earlier protected trademark rights and GIs are grounds for refusing, 
opposing, and cancelling G I protection sought under this agreement.  
● Please clarify whether genericness is a basis for refusing, opposing, and cancelling 
GI protection sought under this agreement.  WT/TPR/M/432/Add.1  
 
- 91 - 
 
  ● Will prior users of terms that are generic in Brazil be permitted to continue to use those 
terms in Brazil if and when the agreement with the European  Union  enters into force?  
Reply:  
According to the EU -Mercosur agreement, the Parties shall protect the geographical indications 
referred to in Annex of this agreement also where a prior t rademark exists. A prior trademark shall 
mean a trademark, which has been applied for, registered or established by use, if that possibility 
is provided for by the legislation concerned, in good faith in the territory of one Party before the 
date on which the application for protection of the geographical indication is submitted by the other 
Party under this Agreement.  
Such trademark may continue to be used, renewed and be subject to variations which may require 
the filing of new trademark applications, not withstanding the protection of the geographical 
indication, provided that no grounds for the trademark 's invalidity or revocation exist in the 
legislation on trademarks where the trademark has been registered or established.  
Neither the prior trademark nor  the geographical indication shall be used in a way that would mislead 
the consumer as to the nature of the intellectual property right concerned.  
Besides, the Parties shall not be obliged to protect a geographical indication in the light of a famous, 
reputed or well -known trademark, where the protection is liable to mislead the consumer as to the 
true identity of the product.  
Nothing shall prevent the use by a Party, with respect to any product, of a customary name of a 
plant variety or an animal breed, ex isting in the territory of that Party as of the date of entry into 
force of this Agreement.  
Nothing shall prevent the use by a Party of an individual component of a multi -component term that 
is protected as a geographical indication in the territory of tha t Party if such individual component is 
a term customary in the common language as the common name for the associated good.  
Nothing shall require a Party to protect a geographical indication which is identical to the term 
customary in common language as the common name for the associated good in the territory of that 
Party.  
If a translation of a geographical indication is identical with or contains within it a term customary 
in common language as the common name for a product in the territory of a Party, or if a 
geographical indication is not identical with but contains within it such a term, these provisions shall 
not prejudice the right of any person to use that term in association with that product.  
Page 25, paragraph 4.6: The Government Rep ort indicates that since July 2020, interested parties 
may request the revision of outdated technical regulations that depart from international standards.  
Question 44:  
● Have any actions been taken with regard to requests to revised outdated technical stand ards 
that depart from international standards?  
● Are the requests and decisions on requests made public and how can an interested person 
apply to request a revision to an outdated technical regulation?  
● Is there a web link?  
Reply:  
Since the publication of the Decree the Ministry of Economy has promoted a sort of a roadshow 
concerning the revision of outdated technical standards by Decree no. 10.229/2020, in order to 
empower and instruct public officials on the criteria, standards and procedur es of revision.  
So far, there has been no notice of any procedure of revision initiated by this specific policy, since 
no petition from private individuals demanding revision of outdated technical standards have been 
identified. In case the public body doe s not present a specific website page for asking for the 
technical revision, any interested person can file a simple petition in the public body protocol in order 
to start the procedure.  WT/TPR/M/432/Add.1  
 
- 92 - 
 
The web links are multiple, since this procedure has to be specifical ly targeted to the public body 
that has legal power to enact the regulation. For instance, the Ministry of Agriculture provides the 
following web link: https://www.gov.br/agricultura/pt -br/acesso -a-informacao/participacao -
social/inovacao -tecnologica -2013-decreto -ndeg-10-229-2020. 
Page 28, paragraph 4.20 : The Government report states that New Import Process (NIP) has been 
implemented since 2018 and should be in full effect by the end of 2025. Although the NIP is still 
under development, it has already had a major impact on reducing import time.  
Question 45:  
● Please provide further information on the new process of r equiring electronic certificates.  
● Please explain how the system will allow necessary clarifications for full functionality, such 
as strike -throughs that are permitted on paper certificates.  
Reply:  
In Brazil's Single Window all certificates are mapped to international standards for certificates, 
consignments and customs declaration, such as UN/CEFACT and WCO Data Model. So in this way 
we can accept both: 1 - paper certificates that must be presented digitally and with a digital signature 
or 2 - electronic d ocument under international standard.  
Brazilian authorities do not accept strike -throughs on certificates - a new certificate must be issued 
with the corrections (Brazil is not aware of any countries that accept strike -throughs on certificates. 
Brazilian a uthorities accept strike -through on consignments. For example, if a bill of lading (b/l) 
needs to be endorsed, the consignee may endorse the b/l on paper to a new consignee. In Brazil's 
Single Window the consignee needs to ask the shipping agency to send a  new electronic b/l with the 
same number to the Single Window replacing the consignee's information.  
Page 35, paragraph 4.66 : In the context of Law No. 12,853/2013, the Government's Report states 
that "collective management organizations (CMOs) need to be authorized by a federal public 
administration body and, annually, submit information and documents that allow the verification of 
the regularity of the exercise of their activities to guarantee a transparent and effective 
administration".  
Question 46:  
● Please identify publicly available reports and statistics regarding the administration of 
CMOs  that flow from and are informed by these oversight and reporting requirements.  
Reply:  
There are no publicly available reports and statistics regarding the administra tion of CMOs. However, 
the List of Qualified Associations by category and type of work is available on the website of the 
National Secretariat for Copyright and Intellectual Property. In addition, extracts of the qualification 
requests are published in the  Official Gazette of the Union, so that civil society can express itself, as 
well as the final decision of the federal public administration on the requests. Finally, any warnings 
and administrative sanctions related to irregularities detected during the p rocess of monitoring the 
regularity of CMOs are also published in the Federal Official Gazette.  
 
Page 35, paragraph 4.68 : The Government's Report explains that Brazil has "intensified efforts to 
centralize and digitize services" relating to registration of  works protected by copyright. The Report 
also mentions a decree that grants SNDAPI "the powers … to implement and manage the database 
and information of the Brazilian Copyright Registration System" and states that "[t]he system is 
currently under developm ent". 
Question 47:  
● Regarding its efforts to centralize services, has Brazil considered the creation of a single 
federal public body that would be responsible for registration of all types of copyrightable 
works, regardless of the nature of the work?  
● Do Brazil's efforts to digitize services entail online filing of registration applications, online 
searches of electronic registration records, and electronic submission of deposits of works?  
● Please elaborate on the "system … under development" and the timeli ne for its 
implementation.  
Reply:  
As part of one of the actions of the 1st ENPI Action Plan, action 3.A.1.2 was launched in 
October  2022, which refers to the improvement of the registration system of intellectual works, a 
tool that allows the online regist ration of works. Thus, through the gov.br platform, authors are now WT/TPR/M/432/Add.1  
 
- 93 - 
 
  able to register their intellectual creations protected by Copyright, such as literary texts, sermons, 
conferences, choreographies and pantomimes with written scenic execution, audiovisual s, 
photographs, music (with or without lyrics), drawings, projects, sketches, scenery, landscaping and 
architecture projects.  
 
Page 36, paragraph 4.69 : The Government's Report states that "in 2019, there was a Public 
Consultation to improve and update the Copyright Law in the face of new forms of distribution and 
consumption of intellectual works in the digital context", a "Public Consultation Report was prepared 
after evaluation of the contributions received", and "SNDAPI continues to monitor the proposal 
processing process …".  
Question 48:  
● Please provide a status update on this process and summarize updates to the Copyright Law 
currently under consideration.  
● What is Brazil's timeline for implementing updates to the Copyright Law?  
Reply:  
After evaluating the contributions received, a draft bill of law was prepared, together with an opinion 
on the merits and a draft explanatory statement, which were forwarded to the Civil House and the 
General Secretariat of the Presidency of the Republic, accord ing to the usual procedure for 
forwarding proposals for normative acts to the head of the executive branch. In 2022, there were 
additional consultations with the National Secretariats and Entities linked to the Special Secretariat 
for Culture, which sent n ew contributions. At the present time, the National Secretariat for Copyright 
and Intellectual Property continues to monitor the progress of the proposal and provide technical 
support whenever necessary. However, there is no timeline for the implementation  of the update of 
the Copyright Law, especially considering that a government transition process is underway.  
 
Page 36, paragraph 4.70 : The Government's Report states that "in July 2022 … the President … 
sent to the National Congress a proposal for accessi on to the Treaty of the World Intellectual Property 
Organization (WIPO) on Interpretations and Phonograms (WPPT)".  
Question 49:  
● What steps, if any, has Brazil taken to accede to the WIPO Copyright Treaty (WCT)?  
● Is there a timeframe for the executive branch  to send Congress a proposal for accession to 
the WCT? If so, what is that timeframe?  
● What are Brazil's plans for joining the WIPO -administered Beijing Treaty on Audiovisual 
Performances?  
Reply:  
The draft presidential message proposing accession to the WCT is still under consideration by the 
Chief of Staff Office of the Presidency and the General Secretariat of the Presidency of the Republic, 
according to the usual procedure for forwarding proposals for normative acts to the head of the 
executive branch.  There is no timeframe for the executive branch to send Congress a proposal for 
accession to the WCT. In relation to the Beijing Treaty on Audiovisual Performances, there is no 
official position on whether to join said treaty.  
 
Page 40, paragraph 4.96 : Brazil describes that 35% of the balance of the funds raised by 
Agribusiness Credit Bills (LCAs) must be allocated to rural credit at no cost to the National Treasury.  
Question 50:  
● Please provide the annual cost borne by the National Treasury in nominal cu rrency terms 
prior to 2016 and before the rural credit program.  
● For the remaining 65% of this rural credit, what has the annual cost been to the National 
Treasury in nominal currency terms to provide this rural credit program?  
Reply:  
There is no cost for the Treasury at all. The remaining resources (65%) of the LCA value are freely 
allocated by the banks outside the rural credit system.  
 
Page 40, paragraphs 4.98 and 4.99 : In paragraphs 4.98 and 4.99 Brazil describes its Cisterns 
Programme, which is des igned to promote climate adaptation and provide universal access to water 
for agricultural purposes.  
Question 51:  
● Please explain how do these cisterns provide water in a way that is more climate smart than 
other sources of water.  WT/TPR/M/432/Add.1  
 
- 94 - 
 
Reply : 
Rainwater harvestin g through Slab Cisterns has been the best solution found, in technical, economic, 
political, social, and, above all, environmental terms. Here we present the justification for choosing 
cylindrical cisterns (they can be made of iron -cement, wires or pre -made slabs):  
Technically: it is adaptable to a wide variety of semi -arid soil both crystalline and sedimentary. It is 
of easy learning and reproduction, since its technology is currently known by almost every farmer 
bricklayer, and has a very long durability.  There are registries of cisterns with more than 40 years 
of existence.  
Economically: low cost in comparison with its benefits. In average, necessary materials to its 
construction cost US D 494.00 and its final cost, by unit, including labor, is US D 541.00.  With the 
expansion of the number of cisterns built, bricklayers who dominate the technology have an income 
increase of up to US D 147.00.  
Environmentally: since it is a simple and appropriate technology as regards the environment, it does 
not have a negati ve impact, because it does not exploit groundwater and does not deposit any sort 
of residue in the environment. Besides, it interferes positively in the aspect of superficial flow, 
hindering the entrainment of solid materials in excess during the rainy per iod. 
The process of family capacitation regarding the treatment of water and the natural sources of this 
resource strengthens the role of women in family farming, because, by facilitating the access to 
water, it reduces the labor of women and children, who  would often be required to go through long 
distances in search of water.  
Finally, and most importantly, there is a reduction in diseases caused by the ingestion of 
contaminated water, resulting in a reduced level of child mortality in this region and in b etter life 
conditions. Studies have shown that the implementation of cisterns and other social technologies 
that grant access to water in the Brazilian semi -arid have reduced child mortality rates caused by 
severe diarrhea by up to 69%. Families who own a cistern have lower incidence of diarrhea among 
adults and children in the region.  
 
● Please provide examples of how this program increased or diversified agricultural production.  
Reply  
The importance of decentralizing water supply for food security and for agriculture in the Brazilian 
semi-arid has been demonstrated by numerous experiences involving harvesting not only of 
rainwater but also water from other sources - suitable for human consumption and agricultural and 
farming - through simple, cheap and approved methods. These methods have often been 
disseminated by the management of the communities. The Ministry of Citizenship has already 
financed more than 195 thousand social technologies regarding access to water for production of 
food, resulting in:  
 
- Guaranteeing safety and food and nutritional sovereignty for the families that live in the Brazilian 
Semi-arid region;  
- Allowing decentralized access to water for the production of food;  
- Giving support to experiences of technological innovation by far mers;  
- Allowing the exchange of knowledge between farmers;  
- Systematizing successful experiences in that regard;  
- Improving the quality of life of farmer families in the semi -arid region, especially of children, women 
and the elderly; and  
- Generating m onetary and non -monetary income from agricultural and non -agricultural sources to 
agricultural families in the Brazilian semi -arid involved directly in the Program.  
● Please explain whether rural communities share in the cost of these cisterns, or provide in -
kind contributions, including labor, for building cisterns.  
Reply : 
In no case it is requested that beneficiaries share the cost of these cisterns or give contributions in 
cash to the construction of cisterns. Participation of the families is necessary dur ing the process of 
construction, because the excavation of the hole where the cistern is going to be built is carried out 
by familial labor, organized in commissions and joint efforts that execute the general services of 
excavation. In other words, as a wa y of proportionating to the family the feeling of pertaining in WT/TPR/M/432/Add.1  
 
- 95 - 
 
  relation to the cistern, in a way that has always been a part of the methodology of the Program a 
participation of the family in the process of construction, especially in the excavation of th e whole, 
guaranteeing the participation of the family in at least one stage of the process of construction.  
 
Page 49, paragraph 5.8 :  
Question 52:  
What steps is Brazil taking to meet OECD Trade Committee standards for accession?  
 
Reply : 
Brazil has been pa rticipating in the OECD Trade Committee discussions since 1997 and has adhered 
to the Trade Policy Declaration in 2018. As stated in Brazil´s Initial Memorandum, the  Brazilian 
legislation and trade policy remain fully aligned with the OECD Trade Policy Com mittee standards 
and the OECD Trade Policy Declaration . 
  WT/TPR/M/432/Add.1  
 
- 96 - 
 
UNITED STATES  - FOLLOW -UP QUESTIONS  
Part I. Questions  based  on the Secretariat  Report  (WT/TPR/S/431)  
Page  11, paragraph  12: The Secretariat  Report  notes  that "Brazil  maintains  certain  incentives  
conditional  on compliance  with Basic Productive  Process  (PPB)  criteria,  which  are set with a view to 
maximizing  the utilization  of domestically  installed  productive  capacity".  
Question  1: 
● Please  provide  the full list of PPB criteria.  
REPLY:  
Brazil  maintains  certain  incentives  conditional  on research,  development,  and innovation  (R&D&I)  
investments,  especially  in the sector  of information  and communication  technologies  (ICT)  goods.  
In some cases,  compliance  with Basic Productive  Processes  (PPB),  a set of industrial  operations  of a 
given  product  to be carried  out in Brazil,  is also required  
Follow  Up Question:  In what cases  is PPB compliance  required?  Please  provide  examples  of the 
"set of industrial  options " or production  steps  that are required  to be carried  out in Brazil . 
REPLY:  
To benefit  from subsidy  under  ICT Law, PPB compliance  is always  required.   
The general  structure  of current  PPBs is set as follows  in the table.  
Examples  of PPBs Industrial  Options:   
  Productive  Steps  Total  Points  
I Development  project  in the country  - MCT Ordinance  950, of 
12 December  2006,  or MCTI Ordinance  1,309,  of 19 December  2013,  
or MCTIC  Ordinance  356, of 19 January  2018,  or MCTIC  Ordinance  
3,303,  of 25 June 2018.  8 
II Additional  investment  in R&D, worth  2 points  for every  1% additionally  
invested  in R&D, limited  to a maximum  of 6 points.  6 
III Development  of low-level embedded  software  (firmware)  for the board  
responsible  for the central  processing  function.  2 
IV Injection,  molding  or other  forming  process  (3D printing)  or stamping  
of cabinet  housings.  8 
V Assembly  and soldering  of all components  on electronic  boards.  16 
VI Stripping  and crimping  of cables.  3 
VII Final integration.  10 
VIII Tests.  2 
 PPB Goal:  24 points  (Example)   
 
Page  40, Paragraph  2.21:  The report  catalogues  a number  of Brazilian  Government  web sites 
where  laws can be found.  
Question  4: 
● Is there a website  dedicated  to posting  draft regulations  for public  consultation?  If so, please  
share  the link. 
REPLY:  
Currently,  Brazilian  government  bodies  are not required  to use a specific  dedicated  website  for their 
public  consultations.  For example,  several  regulatory  agencies  use their own websites  and/or  
consulting  mechanisms  to receive  opinions  and comments  on draft regulations.  
However,  efforts  are being  made  by the Brazilian  federal  government  to encourage  all 
government  bodies  to use the dedicated  website  "Participa+Brasil"  
(https://www.gov.br/participamaisbrasil/pagina -inicial ) to receive  comments  and opinions  from WT/TPR/M/432/Add.1  
 
- 97 - 
 
  interested  stakeholders.  With the recently  enacted  Decree  No. 11.243/2022  (of 21 October  2022,  in 
Portuguese  - https://in.gov.br/en/web/dou/ -/decreto -n-11.243 -de-21-de-outubro -de-2022-
438142785 ), from June 2024 on all bodies will be required  to use the "Participa+Brasil"  website.  
● Do ministries  and agencies  publish  on their web sites draft regulations  for comment?  
REPLY:  
As mentioned  in the reply above,  some  regulatory  agencies  publish  on their own draft regulations  
for comment,  but the federal  government  has been encouraging  all ministries  and agencies  to use 
the "Participa+Brasil"  website  to publish  draft regulations  and receive  comments  from interested  
stakeholders  and, starting  in June 2024,  all government  bodies  will be required  to use the 
"Participa+Brasil"  website  to carry out public  consultations.  
US FOLLOW -UP QUESTION:  Will the comment  received  on specific  consultations  also be posted  
on Participa+Brasil?  
REPLY:  
Yes. All contributions  shall be signalled  as "accepte d", "not accepted"  ou "partially  accepted".  
Accompanied  by the respective  justification  of their status  resumed  in the public  consultation  report  
that should  be made  available  in the platform  Participa  +Brasil.  
Question  15: 
● Please  explain  the justification  for prescribing  the mandatory  USB Type-C charging  interface.  
● What is the rationale  for restricting  the flexibility  for mobile  phone  producers  to use other  
receptacle  interfaces  that meet existing  voluntary  international  standards?  
● Additionally,  can Brazil  specify  the process  it will take to update  these  requirements  to allow 
for new technology  and standards  that emerge,  e.g. wireless  charging  and other  newer  
charging  technologies?  
● Does Brazil  have any plans  to undertake  regulatory  impact  analysis  for this regulation  given  
its potential  scope?  
REPLY:  
Firstly,  it is important  to clarify  that the current  technical  regulations  for conformity  assessment  of 
mobile  phone  chargers  are focused  on safety  and performance  considering  how the product  is used 
and handled , always  aiming  at user safety.  
Regarding  the objectives  of proposing  the standardization  of charging  through  usb ports,  we believe  
that the proposal,  if approved,  could  achieve  the following  objectives  exemplified  below:  
• Reduction  of electronic  waste.  Currently,  every  time the user buys or exchanges  his mobile  phone,  
it comes  with a new charger,  which  generates  a large number  of obsolete  chargers  that are unused  
or thrown  away.  
• Ease for the user when  using  and charging  their mobile  phones,  reusing  the charger  between  their 
phones  of different  models  and brands.  
• Decreased  industry  costs,  as there is a standard  for shippers.  
Further  information  can be obtained  from "Informe  No. 69/2022/ORCN/SOR"  (accessible  at: 
https://sei.anatel.gov.br/sei/modulos/pesquisa/md_pesq_documento_co nsulta_externa.php?eEP -
wqk1skrd8hSlk5Z3rN4EVg9uLJqrLYJw_9INcO4gErf_h9Bj0UpNGsKPLVUml8h5Cufp8xpyuvmnh4zk -
UBUiWRWVUTHhPFD9Loa_bNRoVA_2jJv -Il0hxES7s4P ). 
This document  presents  additional  details  on the construction  and rationale  of the proposal.  
We would  like to point out that the construction  of any proposal  for technical  requirements  related  
to conformity  assessment  has the participation  of the industry,  mainly  the mobile  phone  
manufacturers  (which  are mostly  international  and have representatives  in Brazil). The proposal  was 
discussed  jointly  with the industry  and the majority  of manufacturers  were in favor of proceeding  
with the suggestion  of public  consultation  to receive  contributions  from society.  WT/TPR/M/432/Add.1  
 
- 98 - 
 
It is also important  to point out that the Anatel's  regulatory  process  is quite agile,  being  able to 
update  its technical  requirements,  in exceptional  situations,  through  a simplified  process.  Finally,  
we understand  that the USB-C interface  is extensively  adopted  by mobile  phone  manufacturers.  In 
October  of this year, the European  Parliament  approved,  with 602 votes  in favour,  13 against  and 
8 abstentions  (https://www.europarl.europa.eu/news/en/press -room/20220930IPR41928/long -
awaited -common -charger  -for-mobile -devices -will-be-a-reality -in-2024), a resolution  determining  
that in 2024 mobile  phones  and other  electronic  devices  will include  the USB-C interface.  
Given  this fact, major  manufacturers  have already  announced  that new releases  will be in line with 
the European  resolution  even before  the deadline  for entry into force of the new regulation.  
Considering  that the terminals  are designed  to meet demands  on a global  scale,  it is understood  
that Brazil's  proposal  through  Public  Consultation  45/22  is not intended  to create  unjustified  barriers  
to trade,  but to ally itself to the international  effort  to reduce  costs and e-waste  in medium  and 
long term. 
The proposal  of this Public  Consultation  would  apply  to the certification  and approval  of new products  
from its entry  into force.  Equipments  already  approved  and available  in the Brazilian  consumer  
market  will not be affected  by the new regulation,  and their use and sale will be allowed  after the 
new rules come  into force.  The decrease  in the use of these  equipment  already  approved  by Anatel  
and available  in the market  will occur  in an organic  and natural  way. 
It should  be noted  that Public  Consultation  45/22  doesn't  propose  any restriction  on the use or 
development  of wireless  chargers.  It is exclusively  intended  for wired  charging  interfaces.  
Anatel  received  more than 420 contributions  on Public  Consultation  45/22,  and is currently  reviewing  
contributio ns, including  comments  submitted  by the US Administration  on 25 August  2022.  
Follow -up Questions:  
• Given that Brazil stated that one of the objectives of the standardization of phone charger 
interfaces is the reduction of electronic waste, has Brazil consid ered allowing the unbundling 
of chargers from mobile phones?  
 
REPLY:  
It is important  to highlight  that the matter  of not allowing  the unbundling  of chargers  from mobile  
phones  has been analysed  from a consumer  protection  perspective  by the National  Consum er 
Secretariat  (Senacon).  
After opening  an administrative  process  in 2021,  Senacon  has concluded,  in 2022,  that the 
unbundling  of chargers  from mobile  phones  constitutes  four consumer  infraction  practices,  namely:  
(i) combined  sale, (ii) sale of incomplete  product  or lacking  essential  functionality,  (iii) refusal  to sell 
the complete  product  due to discrimination  against  the consumer;  and (iv) transfer  of responsibilities  
to third parties.  
Page  94, paragraph  3.150:  The report  notes  that the number  of federal  SOEs is down  from 220 
at end 2017 to 154 as of the writing  of the report.  
Question  18: 
● Have the remaining  66 enterprises  been privatized  or gone out of business?  
● What is the current  status  of these  enterprises?  
REPLY:  
As shown  in the table below,  some  enterprises  were merged,  others  liquidated  and some  privatized  
during  the period  of 2017 to 2021.  
The table below  shows  the status  of the federal  SOEs in Brazil  from 2017 to December  2021.  
Follow -up Question:  Please  include  the table Brazil  is referring  to in the question  above.  
Reply:  WT/TPR/M/432/Add.1  
 
- 99 - 
 
  Merged:  
Cepel – Centro de 
Pesquisas de 
Energia Elétrica - 
Eletrobras  
 
Liquidated  
Codomar  – 
Companhia das 
Docas do 
Maranhão S.A.  
Casemg  – 
Companhia de 
Armazéns e Silos 
do Estado de 
Minas Gerais  
 
Privatized:  
Petroquímica 
Suape – 
Companhia 
Petroquímica de 
Pernambuco - 
Petrobras  
Citepe – 
Companhia 
Integrada Têxtil 
de Pernambuco - 
Petrobras  
Cepisa – 
Companhia 
Energética do 
Piauí - Eletrobras  
Ceron – Centrais 
Elétricas de 
Rondônia S.A. - 
Eletrobras  
BVEnergia – Boa 
Vista Energia S.A 
- Eletrobras  
Eletroacre – 
Companhia de 
Eletricidade do 
Acre - Eletrobras  
Uirapuru – 
Uirapuru 
Transmissora de 
Energia S.A. - 
Eletrobras  
AmE – Amazonas 
Distribuidora de  
Energia S.A. - 
Eletrobras  
CEAL – 
Companhia 
Energética de 2019  Merged:  
ETN – Extremoz 
Transmissora de 
Energia S.A - 
Eletrobras  
Logigás – 
Petrobrás 
Logística de Gás 
S.A - Petrobras  
 
Liquidated:  
CorreiosPar – 
Correios 
Participações S.A - 
Correios  
BB Turismo – 
BBTUR – Viagens 
e Turismo Ltda - 
BB 
 
Privatized:  
TAG – 
Transportadora 
Associada de Gás 
S.A - Petrobras.  
BR Distribuidora – 
Petrobras 
Distribuidora S.A. - 
Petrobras  
Stratura Asfaltos – 
Stratura Asfaltos 
S.A - Petrobras  
 
Divestment:  
Conecta – Conecta 
S.A - Petrobras  
Montevideo – 
Distribuidora de 
Gás Montevideo 
S.A - Petrobras  
 
Created:  
TRANSBEL – 
Transpetro BEL 09 
- Petrobras  2020  Merged:  
Eletrosul - 
Eletrosul Centrais 
Elétricas S.A - 
Eletrobras  
E-Petro - 
Petrobras 
Negócios 
Eletrônicos S.A. - 
Petrobras  
Bescval - BB 
 
Liquidated:  
BNDES Limited - 
BNDES  
 
Privatized:  
Hermenegildo I, 
II e III - 
Eletrobras  
Santa Vitória do 
Palmar - 
Eletrobras  
Geribatu I a XI - 
Eletrobras  
Chuí I, II, IV, V, 
VI, VII e IX – 
Eletrobras  
 
Created:  
Holding XS1 S.A –
Caixa  
XS2 Vida e 
Previdência –
Caixa  
XS3 Seguros – 
Caixa  
XS4 Capitalização 
– Caixa  
Caixa Corretora – 
Caixa  
Caixa DTVM  – 
Caixa  
XS5 
Administradora 
de Consórcios – 
Caixa  
XS6 Participações 
S.A. – Caixa  
XC Adquirência – 
Caixa  2021  Merged:  
Acauã Energia - 
Eletrobras  
AmGT - 
Eletrobras  
Arara Azul - 
Eletrobras      
Ouro Verde I, II 
e III - 
Eletrobras  
Angical 2 
Energia - 
Eletrobras     
Arapapá 
Energia - 
Eletrobras  
Bentevi - 
Eletrobras     
Caititú Energia 
2 e 3 - 
Eletrobras  
Caixapar - 
Caixa  
Carcará Energia 
- Eletrobras  
CDMPI - 
Petrobras  
Complexo 
Eólico Pindaí I, 
II e III - 
Eletrobras  
Coqueirinho 2 
Energia - 
Eletrobras  
Corrupi ão 3 
Energia - 
Eletrobras  
FOTE - 
Eletrobras  
Liquigas - 
Petrobras  
Papagaio 
Energia - 
Eletrobras  
Tamanduá 
Mirim Energia - 
Eletrobras  
Teiú 2 Energia - 
Eletrobras                              
TSBE - 
Eletrobras  WT/TPR/M/432/Add.1  
 
- 100 - 
 
Alagoas - 
Eletrobras  
 
Created:  
Caixa Cartões – 
Caixa  XC Pré -Pagos – 
Caixa  
XC PAT – Caixa  
XC Fidelidade – 
Caixa  
XC Contas de 
Pagamento – 
Caixa  Ventos de Sta. 
Rosa - 
Eletrobras  
Ventos de 
Uirapuru - 
Eletrobras                      
 
Liquidated:  
Ceitec  
 
Privatized:  
Breitener 
Energética, 
Tambaqui e 
Jaraqui - 
Petrobras  
Eólica Mangue 
Seco 2 - 
Petrobras  
Paraíso 
Transmissora 
de Energia - 
Eletrobras  
Refinaria 
Mataripe - 
Petrobras  
XS3, XS4, XS5 
e XS6 - Caixa  
 
Created:  
NAV Brasil  
Refinaria de 
Canoas - 
Petrobras  
Refinaria de 
Mucuripe - 
Petrobras  
Refinaria de 
Mataripe - 
Petrobras  
VDMG  
 
 
Page  94, paragraph  3.150:  The report  notes  that "at the time of Brazil's  previous  review,  18 SOEs 
remained  dependent  on Federal  Treasury  funding  for their operations;  in 2021 their combined  
budgetary  allocations  amounted  to BRL 26.8 billion".  
Question  19: 
● Which  SOEs are still dependent  on government  funding  for their operations?  
● It does not appear  that any of the funding  provided  these  SOEs is contained  in Brazil's  
WTO subsidy  notification.  Why has Brazil  not notified  this funding?  
 WT/TPR/M/432/Add.1  
 
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  REPLY:  
In 2021 there  were 18 dependent  companies  and 16 in 2022.  The difference  refers  to INB – became  
a subsidiary  of ENBPAR  - and EPL - merged  into VALEC.  
1.  Amazônia  Azul Tecnologias  de Defesa  S/A - AMAZUL  
2.  Companhia  Brasileira  de Trens  Urbanos  - CBTU  
3.  Companhia  de Desenvolvimento  dos Vales  Do São Francisco  e do Parnaíba  - CODEVASF  
4.  Companhia  de Pesquisa  de Recursos  Minerais  - CPRM  
5.  Companhia  Nacional  de Abastecimento  - CONAB  
6.  Empresa  Brasil  de Comunicação  - EBC 
7.  Empresa  Brasileira  de Pesquisa  Agropecuária  - EMBRAPA  
8.  Empresa  Brasileira  de Serviços  Hospitalares  - EBSERH  
9.  Empresa  de Pesquisa  Energética  - EPE 
10. Empresa  de Trens  Urbanos  de Porto Alegre  S/A - TRENSURB  
11. Hospital  de Clínicas  de Porto Alegre  - HCPA  
12. Hospital  Nossa  Senhora  da Conceição  S/A - CONCEIÇÃO  
13. Indústria  de Material  Bélico  Do Brasil  - IMBEL  
14. Nuclebrás  Equipamentos  Pesados  S/A - NUCLEP  
15. Telecomunicações  Brasileiras  S/A - TELEBRAS  
16. VALEC  - Engenharia,  Construções  e Ferrovias  S/A 
State -dependent  companies  are basically  companies  that provide  public  services  in the areas  of rail 
transport  (CBTU,  Trensurb  and Valec),  hospital  services  (HCPA,  HNSC  and EBSERH),  
communications  (EBC),  supply  and storage  of agricultural  products (CONAB),  research  and project  
development  (Codevasf,  CPRM,  EPE, EPL, Amazul  and Embrapa),  and industrial  companies  of 
strategic  public  interest  (INB,  Nuclep,  Imbel  and Ceitec).  
Follow Up Question:  For the "industrial companies of strategic public inte rest (INB, Nuclep, Imbel 
and Ceitec) " which industrial goods are produced by each firm? What types of funding are provided 
by the government to these firms (grants, loans, equity) and the amount of funding provided by the 
government.  
 
REPLY:  
For the mentio ned companies, their main objecitves are:  
Nuclep - Designs, develops, produces and commercializes heavy components related to nuclear 
plants, shipbuilding equipment and off -shore;   
INB - Focuses in the productive chain of the "Nuclear Fuel Cycle ". Commercializes nuclear materials, 
performs nuclear fuel engineering services and nuclear reactor services;  
IMBEL - Provides military equipment and develops technology to meet the demand of national 
defense and security products;  
CEITEC - Acts on the develo pment and manufacture of products and applications with semiconductor 
and integrated circuits.  The company is under liquidation since December 2020  and, since then, is 
no longer operational.   
Important  to note that three  of the mentioned  companies  (Nuclep,  Imbel  and Ceitec)  are state 
owned  enterprises  dependent  on the financial  resources  allocated  by the National  Treasury  through  
the federal  fiscal budget  to cover  the companies'  personnel  and general  costs.  INB was a dependent  WT/TPR/M/432/Add.1  
 
- 102 - 
 
SOE until October  2022,  when  all company 's shares  were transferred  to another  SOE controlled  by 
the Brazilian  Federal  Government  and, therefore,  ceased  to be classified  as a dependent  company.  
Page  102, paragraph  3.189 : The Secretariat's  Report  states  that "civil and criminal  penalty  
provisions  in Brazil's  legislation  for violations  of industrial  property,  copyright,  and related  rights  
remained  unchanged  during  the review  period".  
Question  27: 
● Please  provide  an update  on the status  of Bill 333/1999  to increase  penalties  for crimes  
related to counterfeiting.  
REPLY:  
Brazil  is implementing  a new process  for imports  that will require  the prior completion  of a catalogue  
with attributes  of the products  to be imported.  Among  these  attributes  with mandatory  completion,  
there  will be information  required  on trademark  registration.  
Follow -up question:  What protections is Brazil incorporating into this new process to prevent 
disclosure of business confidential (BCI) and/or trade secrets information contained in the required 
catalogues?  
 
REPLY:  
No further information  is available  under  the risk of preempting  the results  of matter  currently  under  
internal  debate  and negotiation.  
Page  22, paragraph  3.43: The Government's  Report  states  that "[i]n 2019,  trade-related  
agreements  were signed  on the following  issues:  … Geographical  Indications  for numerous  
products  …". 
Question  42: 
● Please  specify  the agreements,  products,  and terms  referenced  in this statement.  
● Please  clarify  whether  earlier  protected  trademark  rights  and geographical  indications  (GIs) 
and evidence  of the term as a common  name  for a good in Brazil  are grounds  for refusing,  
opposing,  and/or  cancelling  GI protection  sought  under  these  agreements?  
● Please  describe  the transparency  and due process  mechanisms,  including  opportunities  for 
third-parties  to provide  input,  with respect  to the recognition  of terms  as GIs, including  
terms  identified  in trade agreements.  
REPLY:  
The statement  refers  to the The European  Union -Mercosur  Trade  Agreement.  
According  to the EU-Mercosur  agreement,  the Parties  shall protect  the geographical  indications  
referred  to in Annex  of this agreement  also where  a prior trademark  exists.  A prior trademark  shall 
mean  a trademark,  which  has been applied  for, registered  or established  by use, if that possibility  
is provided  for by the legislation  concerned,  in good faith in the territory  of one Party before  the 
date on which  the application  for protection  of the geographical  indication  is submitted  by the other  
Party under  this Agreement.  
Such trademark  may continue  to be used,  renewed  and be subject  to variations  which  may require  
the filing of new trademark  applications,  notwithstanding  the protection  of the geographical  
indication,  provided  that no grounds  for the trademark's  invalidity  or revocation  exist in the 
legislation  on trademarks  where  the trademark  has been registered  or established.  
Neither  the prior trademark  nor the geographical  indication  shall be used in a way that would  mislead  
the consumer  as to the nature  of the intellectual  property  right concerned.  WT/TPR/M/432/Add.1  
 
- 103 - 
 
  Besides,  the Parties  shall not be obliged  to protect  a geographical  indication  in the light of a famous,  
reputed  or well-known  trademark,  where  the protection  is liable to mislead  the consumer  as to the 
true identity  of the product.  
Nothing  shall prevent  the use by a Party,  with respect  to any product,  of a customary  name  of a 
plant variety  or an animal  breed,  existing  in the territory  of that Party as of the date of entry  into 
force of this Agreement.  
Nothing  shall prevent  the use by a Party of an individual  component  of a multi-component  term that 
is protected  as a geographical  indication  in the territory  of that Party if such individual  component  is 
a term customary  in the common  language  as the common  name  for the associated  good.  
Nothing  shall require  a Party to protect  a geographical  indication  which  is identical  to the term 
customary  in common  language  as the common  name  for the associated  good in the territory of that 
Party.  
If a translation  of a geographical  indication  is identical  with or contains  within  it a term customary  
in common  language  as the common  name  for a product  in the territory  of a Party,  or if a 
geographical  indication  is not identical  with but contains  within  it such a term,  these  provisions  shall 
not prejudice  the right of any person  to use that term in association  with that product.  
According  to the EU-Mercosur  agreement,  for the recognition  of geographical  indications  listed  in the 
agreement,  the parties  must have completed  an objection  procedure  or public  consultation  related  
to these  GIs in their respective  territories.  
Follow -up question : Please elaborate on the nature of the objection procedure or public 
consultation conducted with r espect to the proposed GIs referenced in the EU -Mercosur agreement 
and indicate which, if any, terms were the subject of objection and/or refusal of protection.  
 
REPLY:  
The matter  refers  to classified  information.  
Pages  22-23, paragraph  3.46: The Governmen t's Report  states  that "the European  Union  and 
MERCOSUR  reached  a political  agreement  in 2019"  on a "comprehensive  trade  agreement"  covering,  
inter alia, intellectual  property  issues,  and that "[a]s of July 2022,  the agreement's  texts were 
undergoing  legal and formal  revision  …". 
Question  43: 
● Please  clarify  whether  earlier  protected  trademark  rights  and GIs are grounds  for refusing,  
opposing,  and cancelling  GI protection  sought  under  this agreement.  
● Please  clarify  whether  genericness  is a basis for refusing,  opposing,  and cancelling  
GI protection  sought  under  this agreement.  
● Will prior users  of terms  that are generic  in Brazil  be permitted  to continue  to use those  
terms  in Brazil  if and when  the agreement  with the European  Union  enters  into force?  
REPLY: 
According  to the EU-Mercosur  agreement,  the Parties  shall protect  the geographical  indications  
referred  to in Annex  of this agreement  also where  a prior trademark  exists.  A prior trademark  shall 
mean  a trademark,  which  has been applied  for, registered  or established  by use, if that possibility  
is provided  for by the legislation  concerned,  in good faith in the territory  of one Party before  the 
date on which  the application  for protection  of the geographical  indication  is submitted  by the other  
Party under this Agreement.  
Such trademark  may continue  to be used,  renewed  and be subject  to variations  which  may require  
the filing of new trademark  applications,  notwithstanding  the protection  of the geographical  
indication,  provided  that no grounds  for the trademark's  invalidity  or revocation  exist in the 
legislation  on trademarks  where  the trademark  has been registered  or established.  WT/TPR/M/432/Add.1  
 
- 104 - 
 
Neither  the prior trademark  nor the geographical  indication  shall be used in a way that would  mislead  
the consumer  as to the nature of the intellectual  property  right concerned.  
Besides,  the Parties  shall not be obliged  to protect  a geographical  indication  in the light of a famous,  
reputed  or well-known  trademark,  where  the protection  is liable to mislead  the consumer  as to the 
true identity  of the product.  
Nothing  shall prevent  the use by a Party,  with respect  to any product,  of a customary  name  of a 
plant variety  or an animal  breed,  existing  in the territory  of that Party as of the date of entry  into 
force of this Agreement.  
Nothi ng shall prevent  the use by a Party of an individual  component  of a multi-component  term that 
is protected  as a geographical  indication  in the territory  of that Party if such individual  component  is 
a term customary  in the common  language  as the common  name for the associated  good.  
Nothing  shall require  a Party to protect  a geographical  indication  which  is identical  to the term 
customary  in common  language  as the common  name  for the associated  good in the territory  of that 
Party.  
If a translation  of a geogr aphical  indication  is identical  with or contains  within  it a term customary  
in common  language  as the common  name  for a product  in the territory  of a Party,  or if a 
geographical  indication  is not identical  with but contains  within  it such a term,  these  provisions  shall 
not prejudice  the right of any person  to use that term in association  with that product.  
Follow -up questions:  
Is genericness of a term in Brazil a ground for cancelling GI protection in Brazil for terms included 
in the Annex of the EU -Mercosu r agreement?  
 
REPLY:  
Protected  geographical  indications  listed  in Annex  II shall not become  generic  in the territories  of 
the Parties.  Furthermore,  in Brazil,  there  is no ground  for cancelling  a GI whatsoever.  Once a GI is 
recognized/registered,  the only possibility  of its extinction  occurs  if the factors  and reasons  that led 
to the recognition/registration  cease  to exist 
Are any generic  terms/terms  customary  in the common  language  as the common  name  for a product  
in Brazil  due to be restricted  or phased  out of use after the implementation  of the EU-Mercosur  
agreement?  
REPLY:  
Protected  geographical  indications  listed  in Annex  II shall not become  generic  in the territories  of 
the Parties.  Furthermore,  in Brazil,  there  is no ground  for cancelling  a GI whatsoev er. Once a GI is 
recognized/registered,  the only possibility  of its extinction  occurs  if the factors  and reasons  that led 
to the recognition/registration  cease  to exist 
Page  35, paragraph  4.66: In the context  of Law No. 12,853/2013,  the Government's  Report  states  
that "collective  management  organizations  (CMOs)  need to be authorized  by a federal  public  
administration  body and, annually,  submit  information  and documents  that allow the verification  of 
the regularity  of the exercise  of their activities  to guarantee  a transparent  and effective  
administration".  
Question  46: 
● Please  identify  publicly  available  reports  and statistics  regarding  the administration  of 
CMOs  that flow from and are informed  by these  oversight  and reporting  requirements.  
REPLY:  
There  are no publicly  available  reports  and statistics  regarding  the administration  of CMOs.  However,  
the List of Qualified  Associations  by category  and type of work is available  on the website  of the 
National  Secretariat  for Copyright  and Intellectual  Property.  In addition,  extracts  of the qualification  WT/TPR/M/432/Add.1  
 
- 105 - 
 
  requests  are published  in the Official  Gazette  of the Union,  so that civil society  can express  itself,  as 
well as the final decision  of the federal  public  administration  on the requests.  Finally,  any warnin gs 
and administrative  sanctions  related  to irregularities  detected  during  the process  of monitoring  the 
regularity  of CMOs  are also published  in the Federal  Official  Gazette.  
Follow -up question:  Do authorized  CMOs  have to publish  an annual  report  or independent  audit 
report?  If so, how often?  
REPLY:  
According to article 9 of Normative Instruction No. 5/2021 of Ministry of Tourism, CMOs must 
submit a list of documents to the National Secretariat f or Copyright and Intellectual Property by 
1 June of each year. CMOs ' external audit report for the previous year is expressly listed in said 
regulation, but its presentation is only mandatory if said audit has been demanded by the majority 
of the members o f a CMO, or by a union or professional association, pursuant to article 100 of 
Brazilian Copyright Law (Law No. 9,610, of 19 February  1998). Other documents must be 
submitted regardless of any circumstances, such as the annual financial statements and the report 
on management fees charged by the CMO in the previous year.  
  WT/TPR/M/432/Add.1  
 
- 106 - 
 
COSTA R ICA 
Informe de la Secretaría  
Página 192, párrafo 4.304.  
4.304. El Brasil también ha mantenido un portal sobre inversión, con información detallada y 
oportunidades para los inversores nacionales y extranjeros que deseen invertir en el sector 
turístico.414 El Ministerio de Turismo ha publicado un Plan Estratégico para 2020 -2023 con el objetivo 
de fortalecer el sector, centrado en el desarrollo sostenible.415 
 
Pregunta 1:  
 
● ¿Podría Brasil por favor detallar cuáles son algunas de las medidas o acciones que se han 
realizado para promover el turismo centrado en el desarrollo sostenible?  
 
Respuesta:  
Brazil has 10 destinations among the 100 most sustainable for tourism in the worl d. The recognition 
by the Dutch organization  Green Destinations  in 2022 is the result of an articulated work of the 
whole federal government.  
Brazil has signed several International Agreements, such as the Convention on Biological 
Biodiversity, the Interna tional Treaty on Climate Change, and the UN Agenda 2030, among others.  
The Ministry of Tourism, in partnership with ICMBio (Chico Mendes Institute for Biodiversity 
Conservation) and MMA (Ministry of Environment), has conducted economic and financial modeli ng 
studies for tourism support service concessions, which further encourages sustainability.  
Another measure carried out by the government is the National Network of Long -Distance Trails and 
Connectivity (Rede Nacional de Trilhas de Longo Curso e Conectivi dade - RedeTrilhas). Its goal is to 
amplify and diversify the offer of tourist attractions, connecting points of interest in the Brazilian 
cultural and natural heritage through long -distance trails across the country. The Project intends to 
confer greater significance to Brazilian Conservation Units, creating integrated itineraries that foster 
the conservation of biodiversity and the connection between the most diverse landscapes of Brazil. 
It also aims to expand ecotourism beyond public and surrounding are as, besides generating jobs, 
and promoting the development of local communities.  
Another important project developed by the Ministry of Tourism is the "Brazilian Geoparks ", which 
published "The Guidelines for the Development of Tourism Projects in Geopark s", a methodological 
tool to contribute to the creation of mechanisms to promote sustainable tourism, besides orienting 
investments, marketing and publicity actions in the sector.  
It is also worth mentioning the project "Modelo DTI Brasil ", which adapted to  the Brazilian reality 
the methodology of Intelligent Destinations, designed in Spain in 2012. It allows destinations to 
manage their territory in an innovative and sustainable way, improving the quality of life of residents 
and the tourist experience.  
It is also important to remember that, in Brazil, companies increasingly seek good 
ESG (Environmental, Social, and Governance) practices in their performance. ESG funds raised 
BRL 2.5 billion in Brazil in 2020, and more than half of it came from funds create d in the 
last 12 months. It means that, also in the investment area, Brazil is in line with global trends and 
prepared to attract resources from all over the world, and one of our tools for attracting investors is 
the Tourism Investment Portal . 
It is also worth mentioning that the National Tourism Policy aims to promote sustainable tourism in 
natural areas, promoting the activity as a means of education and environmental interpretation. It 
encourages practices with minimal impact, compatible with environmen tal conservation and 
responsible tourism attitudes.   
To promote the National Tourism Policy, focused on sustainable tourism in natural areas, the 
Brazilian Ministries of Tourism and Environment and ICMBio (Chico Mendes Institute for Biodiversity 
Conservation) are jointly developing public -private partnerships and concessions in 
Conservation  Units. The goal is to combine tourist visitation and the environmental conservation of 
these Units.  
Promoting ecotourism and its associated produc tion chains is strategic for developing and protecting 
the environment. Visitation activities in protected areas, among others, activate the production chain 
of tourism, positively impacting the municipal, state, and regional economies. Nature tourism also  
directly promotes environmental education by allowing a better and broader awareness, appreciation 
for nature, and understanding of its weaknesses and potentialities.  WT/TPR/M/432/Add.1  
 
- 107 - 
 
  In this sense, in 2021, the Ministry of Tourism, through its Department of Planning, Par tnerships, 
and Concessions, hired a consultancy to conduct Economic and Financial Feasibility studies for 
4 National Parks:  
a) Lençóis Maranhenses – MA 
b) Jericoacoara – CE 
c) Serra da Bodoquena – MS 
d) Serra da Capivara - MT 
 
Through these contracts, tech nical studies were conducted to prepare for potential partnerships with 
the private sector, with the objective of fostering visitation activities aimed at environmental 
education, environmental preservation and conservation, ecological tourism, environment al 
interpretation, and recreation in contact with nature.  
All studies were completed and delivered to the Ministry of Environment for further procedures to 
prepare the concession agreements.  
 
Página 192, párrafo 4.307.  
4.307. De conformidad con la Constitu ción, el régimen del ejercicio de las profesiones liberales es 
competencia exclusiva del Gobierno federal.420 La inscripción en los colegios profesionales es 
obligatoria para prestar determinados servicios, como los jurídicos, los de contabilidad, arquitec tura 
e ingeniería, y los servicios veterinarios, dentales y médicos.421 No hay ninguna profesión reservada 
a los nacionales brasileños, aunque para ejercer la abogacía y la medicina, entre otras profesiones, 
es preciso tener residencia en el Brasil.422 Los profesionales, nacionales o extranjeros, con título de 
aptitud (diploma de graduación) extranjero deben convalidar su título en una universidad reconocida 
por el Ministerio de Educación y cumplir los requisitos establecidos por la legislación para ejercer  en 
el Brasil. El Consejo Nacional de Educación, dependiente del Ministerio de Educación, establece las 
normas aplicables a la convalidación de diplomas, títulos y certificados extranjeros.423  
 
Pregunta 2:  
● ¿Podría Brasil brindar cuáles profesiones, aparte de abogacía y medicina, requieren tener 
residencia en Brasil?  
 
Reply:  
Además de abogados y médicos, otras profesiones que incluyen requisitos de residencia son para 
prestación de ciertos servicios de turismo, de contabilidad e inmobilia rios 
 
Informe Brasil  
 
Página 55, párrafo 5.8.  
5.8. El Brasil también seguirá apoyando firmemente al MERCOSUR, la integración regional —tal como 
dispone su Constitución — y el fortalecimiento y la promoción de nuevos acuerdos comerciales 
bilaterales y regionales para fomentar la cooperación, el desarrol lo sostenible y la obtención de 
resultados mutuamente beneficiosos. Por último, la adhesión futura del Brasil a la OCDE tendrá 
repercusiones importantes en las perspectivas internacionales y comerciales del país, además de 
reforzar y profundizar las reform as estructurales.  
 
Pregunta 3:  
● A la luz del proceso de adhesión de Brasil a la OCDE, podría Brasil detallar y profundizar en 
las principales reformas estructurales que se llevarán adelante en materia comercial para 
elevar sus políticas públicas en esta ma teria a los mejores estándares internacionales 
promovidos por la OCDE y en línea con los instrumentos legales de la organización.  
 
Respuesta:  
La relación de Brasil con la OCDE se remonta a la década de 1990 y se ha ido intensificando desde 
entonces. Hoy involucra una amplia gama de temas. Además de los temas económicos y 
comerciales, la agenda con la organización involucra agricultura, medio ambiente, empleo, 
educación, ciencia, tecnología e innovación, salud, anticorrupción, competencia, co nsumo, 
crecimiento inclusivo, transporte marítimo, energía nuclear, transparencia, público integridad, 
turismo, gobierno corporativo, gobierno público, entre otros. Durante este período, Brasil se adhirió 
voluntariamente a más de 100 instrumentos de la OCD E y es el país no miembro que ya participa 
en el mayor número de órganos o instancias de la Organización.  
La densificación de las relaciones con la OCDE y, su corolario, la entrada de Brasil en la Organización, 
es uno de varios factores que pueden ayudar a  Brasil a lidiar con muchos de sus cuellos de botella WT/TPR/M/432/Add.1  
 
- 108 - 
 
e ineficiencias, tradicionalmente llamado el "costo Brasil ". Al tener acceso a las mejores prácticas 
internacionales en las diversas áreas que cubre la Organización, el país estaría mejor equipado para 
reducir este costo -objetivo común del gobierno y el sector privado - y para llevar a cabo las reformas 
internas necesarias, no solo económicas, pero también sociaes, relacionadas con el medio ambiente, 
la lucha contra la corrupción, la transparencia, etc.  
Brasil continúa trabajando para converger gradualmente con las mejores prácticas y estándares de 
la OCDE. El análisis de esta convergencia sería realizado por los 26 comités involucrados en el 
proceso de adhesión.  
  WT/TPR/M/432/Add.1  
 
- 109 - 
 
  SAUDI ARABIA,  KINGDOM OF  
PART I: QUESTIO NS REGARDING THE SECRETARIAT REPORT  
2 TRADE AND INVESTMENT REGIMES: 2.4.5 Dispute resolution  
Page 58 (Para 4)  
Brazil has not joined the International Centre for Settlement of Investment Disputes, as it considers 
that its rules of procedure would provide better protection to investors compared to Federal States.  
Question:  
1. Would Brazil please explain how its rules of procedure would provide better protection to 
investors?  
Reply:  
The Brazilian government has developed its own model of investment a greement, the Cooperation 
and Facilitation Investment Agreement (CFIA). It offers legal protection to foreign investors in Brazil 
and to Brazilian investments abroad, while preserving equal treatment; and regulating the freedom 
of capital movements, asset expropriation and due compensation. Among others, CFIA also includes 
modern responsible business conduct (RBC) and dispute prevention provisions.  
The Brazilian investment agreement model is an instrument of cooperation and facilitation, 
substantially diffe rent from the traditional "bilateral investment treaties " (BITs), as are also known 
so-called Investment Promotion and Protection Agreements (APPIs). In the 1990 's, Brazil signed 
over a dozen traditional BIT 's, none of which were ratified by National Congress, in light of 
investor -state dispute settlement (ISDS) obligations.  
CFIA innovates by establishing investment facilitation as a key element to stimulate FDI flows and 
a more dynamic and long -term interaction between the parties. To this en d, it creates an institutional 
governance structure (the Joint Committee) responsible for promoting cooperation between 
governments and for providing practical and constant support to investors.  
It also establishes a cooperation agenda in areas that improv e the investment environment, such as 
business visas, foreign exchange remittances, technical and environmental regulation, logistics and 
transport. Furthermore, CFIA institutes the Ombudsperson, which is the National Focal Point that 
promotes facilitation  through the provision of governmental support in solving practical difficulties 
and providing recommendations to investors in a transparent and accessible manner. Enquiries 
about bureaucratic procedures related to the implementation of foreign direct inve stments are also 
managed by the Ombudsperson, which is currently located at the Ministry of Economy.  
CFIA does not contain clauses present in traditional BITs, such as coverage of portfolio investments 
(it only covers FDI), indirect expropriation, "fair an d equitable treatment ", "full protection and 
security " and investor -State dispute settlement (ISDS). The exclusion of these provisions from the 
Brazilian model is in line with the internal discussion on the need to maintain the State 's regulatory 
space ( "right to regulate ") and reflects international debates within the framework of the 
United  Nations Commission for International Trade Law (UNCITRAL), about revisions in the 
ISDS mechanism.  
Brazil has signed CFIAs with Angola, Chile, Colombia, United Arab Emi rates, Ethiopia, Malawi, 
Morocco, Mexico, Mozambique, Peru, Suriname, Guyana, Ecuador and India – in addition to the 
Investment Cooperation and Facilitation Protocol (PCFI) with the MERCOSUR partners.  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
PART III: OTHER QUESTIONS  
 
  WT/TPR/M/432/Add.1  
 
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PHILIPPINES  
I. ECONOMIC ENVIRONMENT  
Para 1.4 (Page 19)  
 
Since 2017, changes in the overall sectoral pattern of Brazil's GDP have mainly consisted of the 
increasing contribution of agriculture and mining and quarrying – important drivers of Brazilian 
exports, and a decline in manufacturing and services…According to United Nations Conference on 
Trade and Development (UNCTAD) estimates, in 2017, Brazil ranked 21st (22nd in 2020) among 
the world's 25 top exporting developing  economies by GVC participation rate; its GVC participation 
in exports (40% upstream) stood below the average of the developing exporting economies (56%).  
 
Question:  
1. What are the key strategic measures/reforms that Brazil intends to implement in the med ium-
term to further enhance the country's merchandise exports; thus, increase export productivity and 
competitiveness for sustainable growth? Did Brazil's export market remain resilient during currency 
depreciation episodes? Has the depreciation supported the country's export growth?  
Reply:  
Brazil has taken several measures to increase its productivity and, consequently, increase the 
competitiveness of exports in mid -long term. These are horizontal measures such as Economic 
Freedom Act (Law No. 13,874/2019) , the Regulatory Agencies' Law (Law No. 13,848/2019) and the 
Business Environment Act (Law No. 14,195/2021). The Economic Freedom Act main objective is to 
guarantee the free exercise of economic activity and free enterprise, allowing for the intervention o f 
the State only as a subsidiary and exceptional recourse; the Regulatory Agencies Act guarantees 
functional, decision -making, administrative and financial autonomy to Regulatory Agencies; and the 
Business Environment Act advances in economic legislation i n the context of the business 
environment (Section 2.2.1). Furthermore, reductions in tariff levels (Section 3.2) and trade barriers 
(Section 3.3) have the potential to improve exports reducing costs to access imported inputs and 
capital goods and enhancin g the allocation of factors of production in the Brazilian economy.  
Regarding the exchange rate, it is important to remark that the dynamics of exports are more 
influenced by variations in external demand. However, more pronounced and lasting changes in t he 
exchange rate level can influence the dynamics of exports. In 2020, the year in which world GDP 
fell by around 3% (IMF) and world exports fell by 4.9% (WTO), Brazilian exports grew by 2% in 
volume. One of the elements that could have contributed to this  performance was the 28% 
devaluation in the real exchange rate. Nevertheless, a stable exchange rate is crucial as its 
uncertainty has a negative effect on international trade. Brazil has a floating exchange rate regime, 
where the market conditions – suppl y and demand – determine the foreign exchange rate, which 
floats freely. Eventual Central Bank's interventions in the foreign exchange market is limited to 
periods of excessive market volatility.  
 
Para 1.8 (Page 22 -23) 
Brazil maintains a floating exchange rate system with no restrictions on currency conversion and 
transfers for current international transactions; the system continues to work as an important shock 
absorber.31 The BCB has not sought to influence the exchange rate, limiting its currency market  
interventions (direct market interventions and swap contracts) to containing excessive short -term 
volatility. During the review period, the nominal BRL/USD exchange rate depreciated by an overall 
(cumulative) 69% (Table 1.1); in trade -weighted terms, over all, the effective exchange rate 
appreciated, thus raising Brazil's international competitiveness. According to the OECD, depreciation 
was partly related to a flight for safety in the context of the pandemic, declining domestic interest 
rates, and an expan ding domestic capital market.32 To dampen excessive volatility, between 
December 2017 and May 2022, the BCB increased the outstanding stock of FX swaps by 
USD 76.5 billion after jumps in response to the pandemic and to Ukraine war -related uncertainty.  
 
Question:  
2. Apart from increasing the outstanding stock of foreign exchange (FX) swaps, what other 
measures did the Central Bank of Brazil (BCB) implement to dampen excessive volatility in Brazilian 
real in response to global developments su ch as the COVID -19 pandemic, Ukraine -
Russian  Federation n conflict -related uncertainty, and aggressive interest rate hikes by the US 
Federal Reserve?  
Reply:  
Besides foreign exchange (FX) swaps, the BCB has conducted spot sale auctions to cope with excess 
volatility caused by liquidity constraints in the local FX market. In addition, to address temporary WT/TPR/M/432/Add.1  
 
- 111 - 
 
  liquidity shortages, USD credit lines have been placed during periods of perceived scarcity in dollar 
funding conditions.  
 
The BCB´s FX intervention policy s eeks no target for the exchange rate but rather aims at preserving 
proper market functioning by timely dealing with disruptive dynamics which would undermine 
adequate intermediation and price formation of the BRL/USD exchange rate.  
 
 
III. TRADE POLICIES AN D PRACTICES BY MEASURE  
Para 3.156 (Page 95)  
Brazil's decentralized system comprises independent procurement jurisdictions at all levels of 
government that share a common set of rules established by the Federal Government. The common 
elements used to be mainly set out in the 1993 General Procurement Act (Federal 
Law No. 8,666/1993).172 During the period under review, the Federal Government enacted a new 
Government Procurement Law (Law No. 14,133, 1 April 2021 – Procurement Process and 
Administrative Contr act Law), which aimed at updating and simplifying rules and procedures 
currently regulated by the 1993 Procurement Law.173 The 2021 Procurement Law includes 
provisions on transparency, procurement methods, evaluation of bids, exemptions, appeals, and 
contract management, and it applies to procurement procedures, and contracts entered into by 
entities at the federal, state and federal district, and municipal levels in all three branches of 
government (executive, legislative, and judicial). SOEs are not cover ed by the 2021 Procurement 
Law. 
 
Question:  
3. Based on the Secretariat Report, during the period under review, the Federal Government 
enacted the New Government Procurement Law which aimed at updating and simplifying rules and 
procedures currently regulate d by the 1993 Procurement Laws. Could Brazil elaborate on the 
changes, streamlining efforts, and other initiatives pursued to simplify and update its rules and 
procedures on government procurement? What were the challenges and how were they addressed?  
Reply: 
The new procurement law - Law 14,133/2021 – was designed to consolidate the legal provisions of 
different government procurement systems and modernize the rules for public bidding. It also aimed 
at improving the efficiency and transparency of government  procurement, applicable to the three 
levels of government (federal, state, and municipal). The new legal framework for government 
procurement revokes Law n. 8,666/1993 and Law n. 10,520/2002 (Reverse Auction Law), and 
replaces legal provisions of Law n. 1 2,462/2011 (Differentiated Procurement Regime), after a two 
year transition period, as a means to consolidate the provisions from those laws. Therefore, from 
April 2023 onwards, the Law will be exclusively applied. The new law also provided the development  
of a new national government procurement database, which will centralize information on all public 
biddings across the three levels of government, improving transparency. The National Public 
Procurement Portal (PNCP) was created as an official website for  the centralized and mandatory 
disclosure of the acts required by the law. The PNCP can be accessed at https://www.gov.br/pncp/ . 
Among the main updates, one may mention the incorporation of the competitive dialogue modality, 
applicable on specific cases, along with the reverse auction; competitive procurement; contest; and 
auction. Additionally, the law extended the possible criteria for evaluating bidding proposals, which 
are currently six: lower price; biggest disc ount; best technique or artistic content; technique and 
price; biggest bid (in case of auctions); and largest economic return. Those provisions are designed 
to modernize and improve the efficiency of the Brazilian government procurement legal framework.  
 
Para 3.159 (Page 96)  
Article 11 of the 2021 Procurement Law provides that the procurement process should aim at: 
(i) ensuring the selection of the proposal capable of delivering the most advantageous results for 
the procuring entity, including by taking int o account the life cycle cost of the procured object; 
(ii) ensuring fair competition and equal treatment among suppliers; and (iii) encouraging innovation 
and sustainable national development. Article 28 provides for the use of the following procurement 
methods: (i)  reverse auction (pregão); (ii)  competition (concorrência); (iii) open tendering 
(concurso); (iv) auction (leilão); and (v) competitive dialogue (diálogo competitive). Competitive 
dialogue has not previously existed in the Brazilian system. It al lows procuring entities to engage in 
dialogue with selected suppliers with the aim of developing technical solutions capable of meeting 
the needs of the procuring entities. The selected suppliers are expected to submit their final 
proposals at the end of t he dialogue phase.  
 WT/TPR/M/432/Add.1  
 
- 112 - 
 
Question:  
4. The Secretariat Report provides that the procurement process should aim at (i)  ensuring the 
selection of the proposal capable of delivering the most advantageous results for the procuring 
entity, including by taking into ac count the life cycle cost of the procured object; (ii) ensuring fair 
competition and equal treatment among suppliers; and (iii) encouraging innovation and sustainable 
national development. Could Brazil further expound on how it determines the "most advanta geous 
results" for the procuring entity? In lifecycle costing, was this used as part of the selection criteria 
for the bidders? If yes, please explain.  
Reply:  
According to art. 33 and 34 of Law 14,133, which deal with the evaluation criteria, the proposals  
shall be evaluated according to the following criteria:  
I – the lowest price;  
II – the highest discount;  
III – the best technique or artistic content;  
IV – technique and price;  
V – the highest bid in case of auctions;  
VI – the highest economic return.  
The evaluation by the lowest price or highest discount and, when applicable, by technique and price 
shall consider the lowest expenditure for the Administration, having met the minimum quality 
parameters defined in the tender documentation. The indirect costs  related to maintenance, use, 
replacement, depreciation expenses, and expenses incurred due to the environmental impact of the 
object of the procurement, among other factors related to its life cycle, may be taken into account 
for the determination of the lowest expenditure, whenever they are objectively assessed, as provided 
for in the applicable regulations.  
Para 3.166 (Page 97)  
Article 60 of the 2021 Procurement Law provides that in case of a tie between two or more bids, 
several criteria may be used to break the tie, including the possibility of giving preference to goods 
and services produced by: (i) locally established companies; (ii) Brazilian companies; and 
(iii) companies that invest in research and in the development of technology in Brazil. Simila r rules 
also apply to procurement by SOEs.  
 
Question:  
5. The Secretariat Report states that: "in case of a tie between two or more bids, several criteria 
may be used to break the tie, including the possibility of giving preference to goods and services 
produced by: (i) locally established companies; (ii) Brazilian companies; and (iii) companies that 
invest in research and in the development of technology in Brazil. Similar rules also apply to 
procurement by state -owned enterprises". Could Brazil clarify wha t constitutes a "tie" among bidders 
(whether it means that all bidders are compliant with all the legal, financial, and technical 
requirements of a particular bid) and whether the independent procurement jurisdiction (within 
Brazil's decentralized procurem ent system) have the discretion to apply such preference or are they 
mandated to enforce such preference?  
 
Reply:  
Paragraph 1 of art. 60 of Law 14,133/2021 does not determine the immediate application of a 
preference to national companies in case of a tie. If the bids are exactly of the same value, there 
shall be a new round of bids. If the tie remains, a succession of tiebreaking criteria would take 
precedence before the possibility of resorting to the criteria referred to in paragraph 3.166. This is 
also followed by sub -central entities whenever they carry out procurement, and by SOEs, as Law 
13,303/16 refers to tiebreaking criteria that are similar to the ones described above. Those criteria 
would be, in any case, very rarely - if ever - applied, sinc e a "tie" among bidders would require that 
the bids were exactly of the same value.  
 
Para. 3.172 (Page 98)  
Administrative and judicial review procedures available in Brazil can be used by suppliers to 
challenge the conformity of any procurement act by a pr ocuring entity with the applicable legislation. 
In this regard, Chapter II of the 2021 Procurement Law provides details on the applicable 
administrative review procedures, including regarding oppositions, requests for clarification, and 
appeals. These proc edures also apply to foreign suppliers when participating in international 
tendering. A novelty in Brazil's 2021 Procurement Law concerns the introduction of Chapter XII on 
alternative dispute resolution, which encourages contractual parties (i.e. supplier s and procuring 
entities) to solve their disputes by non -judicial methods, including conciliation, mediation, and 
arbitration.  WT/TPR/M/432/Add.1  
 
- 113 - 
 
  Question:  
6. The Secretariat Report provides that administrative and judicial review procedures in Brazil 
can be used by supplier s to challenge the conformity of any procurement act by a procuring entity 
with the applicable legislation. On the applicable administrative review procedures, it includes 
oppositions, requests for clarification, and appeals. It also includes alternative d ispute resolution to 
solve disputes by non -judicial methods. Could Brazil confirm if these procedures include suspension 
and debarment of erring suppliers in Brazil? If yes, what are the grounds, procedures (e.g. who is 
the decision -maker who has jurisdict ion over these offenses), and the extent of the penalties 
imposed (e.g. debarment of a certain number of years, etc.). Is the said sanction mechanism 
centralized?  
 
Reply:  
According to Article 156 of Law 14,133/21, prohibition to the participation in procur ement processes 
and contracts and declaration of disreputability for procurement processes or contracts are among 
the sanctions that can be imposed on the person responsible for the administrative violations 
provided for in this Law.  
The sanction of prohib ition to the participation in procurement processes and contracts shall be 
imposed on the person responsible for the administrative sanctions provided for in items II, III, IV, 
V, VI, and VII of the chapeau of art. 155 of the Law, when the imposition of a more severe penalty 
is not justified, and it shall prohibit the person responsible from participating in procurement 
processes or contracts in the scope of the direct or indirect Public Administration of the federated 
state that imposed the sanction, for n o more than three (3) years.  
The sanction of declaration of disreputability for procurement processes or contracts shall be 
imposed on the person responsible for the administrative sanctions provided for in items VIII, IX, X, 
XI, and XII of the chapeau of art. 155 of the Law, as well as for the administrative sanctions provided 
for in items II, III, IV, V, VI, and VII of the chapeau of such article justifying the imposition of a 
penalty more severe than the sanction referred to above, and it shall prohibit the person responsible 
from participating in procurement processes or contracts in the scope of the direct or indirect Public 
Administration of all federated states, for at least three (3) years and no more than six (6) years. 
This sanction shall be preced ed by legal analysis and shall observe the following rules:  
I – when it is imposed by an entity of the Executive Branch, it shall be in the exclusive jurisdiction 
of a minister of State, state secretary, or municipal secretary, and when it is imposed by an  
independent agency or foundation, it shall be in the exclusive jurisdiction of the highest authority of 
the entity;  
II – when it is imposed by entities of the Legislative and Judiciary Branches, by the Prosecution 
Service, and by the Public Defender's Off ice carrying out administrative duties, it shall be in the 
exclusive jurisdiction of an authority with a hierarchical level equivalent to the authorities referred 
to in item I, pursuant to the applicable regulations.  
 
Para. 3.174 (Page 99)  
Brazil's institu tional framework for the protection of intellectual property (IP) rights was modified 
during the review period. The Intellectual Property Inter -Ministerial Group (GIPI), established in July 
2019 and chaired by the Ministry of Economy, became responsible fo r IP policy formulation. The 
National Industrial Property Institute (INPI) continues to administer the granting and registration of 
industrial property rights, whereas copyright administration is overseen by the Special Secretariat 
for Culture under the Mi nistry of Tourism.  
 
Question:  
7. With a new inter -agency group created for IP policy formulation, does this group also cover 
intergovernmental collaboration, specifically on the enforcement of IP rights given that IP 
enforcement functions are scattered acr oss different government agencies (i.e. customs, police, 
etc.)?  
Reply:  
GIPI is an intergovernmental group that aims at coordinating and formulating IP policies among 
different government bodies, mainly Ministries dealing with IP issues. Brazil has another 
governmental group dealing with the enforcement of IP rights, which is the National Council for the 
Combat of Counterfeiting (CNCP), under the presidency of the Ministry of Justice and Public Security.  
 
Para. 3.177 (Page 99)  
The 2021 WIPO Global Innovation  Index ranked Brazil 57th of 132 economies in terms of innovation 
capabilities, up from 69th (of 127 economies) in 2017. The gap between Brazil's rankings in the WT/TPR/M/432/Add.1  
 
- 114 - 
 
innovation input and innovation output sub -indexes also narrowed significantly, from 60th and 80th 
place, respectively, in 2017 to 56th and 59th place in 2021.186  
 
Question:  
8. In the recently published 2022 WIPO Global Innovation Index (GII), Brazil improved its rank 
from 57th to 54th advancing three places. Which specific part of Brazil's nationa l IP strategy (ENPI) 
do you think contributed the most to this significant improvement in your rankings?  
Reply:  
The GII is one of the metrics employed in the designing of the Brazilian National Intellectual Property 
Strategy (NIPS) and in the monitoring of  its results. One of the recent initiatives that have 
contributed the most to the improvement of Brazil's rank in the GII has been the Plan to Tackle the 
Backlog of patents in the National Institute of Industrial Property, aimed at reducing the time and 
streamlining the process for the examination of a patent. As a result, in the last three years more 
than 90% of the patents filled until 2016 have been subject to a decision.  
 
9. In last year's GII, Brazil was seen to have better innovation inputs than innovation outputs. 
While both metrics were seen to constantly improve since 2019, what are the plans of Brazil to 
further improve the delivery of innovation outputs which are seen to be lagging behind the input 
metric?  
Reply:  
There seems to be a general p attern in the GII according to which developing countries show better 
results in innovation inputs rather than in outputs, while in developed and most innovative countries 
it tends to be the opposite. It is noteworthy that most of IP indicators are innovat ion outputs, what 
means that developed countries in general perform better in IP indicators than developing ones. This 
diagnosis is one of the main drivers for the NIPS. In order for Brazil to improve its IP indicators and 
consequently to have better innov ation outputs, it is necessary also to continue to disseminate 
knowledge about IP rights and its benefits among all stakeholders, as well as to reduce costs related 
to accessing to the system.  
 
Para. 3.188 (Page 101)  
Brazil's civil rights framework for the  Internet contains provisions addressing certain aspects of 
online copyright infringement. Although a comprehensive mechanism for the expeditious removal of 
copyright -infringing content has not yet been formalized in Brazilian legislation, Brazil's Superio r 
Court of Justice (Superior Tribunal de Justiça) has ruled that failure to act within 24 hours of receipt 
of a private (extrajudicial) notification containing the precise address (URL) of the allegedly infringing 
content may result in civil liability of t he Internet service provider.  
 
Question:  
10. Does Brazil have plans to further institutionalize this jurisprudence as an amendment to its 
existing laws or regulations?  
Reply:  
There are no official plans to further institutionalize this jurisprudence, consi dering that a 
government transition process is underway.  
 
Para. 3.189 (Page 102)  
The civil and criminal penalty provisions in Brazil's legislation for violations of industrial property, 
copyright, and related rights remained unchanged during the review per iod. Pursuant to Brazil's 
customs legislation, the RFB has authority to seize IP -infringing goods ex officio or at the request of 
the right holder.  
 
 
 
Question:  
11. Did Brazil notice a trend during the height of the COVID -19 pandemic with regard to spikes in 
the use of online platforms for commerce, proliferation of fake and pirated goods online, and/or 
increasing request for takedowns of IP violating posts from IP owners? If yes, did this trend nudge 
the Brazilian IP Offices and Inter -agency groups to amen d certain provisions in their laws, rules, or 
regulations making it more responsive to the needs of IP owners?  
Reply:  
The COVID -19 pandemic increased trade of fake and pirated goods online worldwide, Brazil included. 
In order to tackle this problems, the N ational Council for Combating Piracy and Intellectual Property 
Offenses (CNCP) has encouraged the establishment of partnerships among different government WT/TPR/M/432/Add.1  
 
- 115 - 
 
  institutions with a view to combat such a trend and protect IP rights in Brazil. In particular, the 
Ministries of Economy and Justice have been working closer together with that aim.  
 
Para. 3.190 (Page 102)  
The National Council for Combating Piracy and Intellectual Property Offenses (CNCP), a body 
regrouping public and private sector representatives creat ed in 2004, coordinates the elaboration 
and implementation of public policies aimed at combating IP offences. In 2021, the Ministry of Justice 
and Public Security approved a new National Plan to Combat Piracy for the period 2022 -25, 
elaborated by the CNCP.  The plan sets out 62 crime -fighting targets with short -, medium -, and long -
term actions to achieve them.  
 
Question:  
12. What is the role of the private sector representatives of this Council? Does this group include 
members from law enforcement agencies o f Brazil?  
Reply:  
CNCP includes both government and non -government entities, including civil society organizations 
and private sector associations. Law enforcement agencies, such as the Federal Police and the 
Federal Highway Police are also members of the CNCP.  
 
IV. TRADE POLICIES BY SECTOR  
Para 4.165. (Page 146)  
According to IMF, the BCB continued to promote financial sector efficiency and inclusion, notably 
through an instant electronic payment system (PIX), which is provided by 769 financial supplier s, 
and used by approximately 110 million individuals as of December 2021. PIX transfers and payments 
increased from BRL 34 million in December 2020 to BRL 1.6 billion in March 2022. Also, from 2016, 
74 credit fintechs and 37 payment institutions have been authorized to operate in Brazil by the BCB. 
Since February 2021, the "Open banking" policy was regulated in four phases to allow the sharing 
of data and services among financial institutions, payment institutions, and other institutions 
licensed by the BCB , through the opening and integration of systems, aimed to increase competition 
in the financial sector. In 2020, the BCB introduced the Controlled Testing Environment for Financial 
and Payment Innovations (BCB Sandbox), aiming to establish a proper framew ork for assessing 
financial innovations within the National Financial System (SFN) and the Brazilian Payments System 
(SPB). Growth in the credit database (Cadastro Positivo) also has led to a 10.3% reduction in 
borrowing costs on non -payroll loans. The BCB  has also implemented a number of efforts to 
strengthen the financial education.  
 
Question:  
13. It was mentioned that PIX transfers and payments increased from BRL 34 million in December 
2020 to BRL 1.6 billion in March 2022 or by 47 times in a span of one  year and a quarter. In terms 
of transactions volume, how large was the increase in the transfer and payments in the PIX, and 
what factors drove said increase? What are the relevant targets set by the Central Bank of Brazil 
(BCB) for payments digitalizatio n, and what strategies have been employed to achieve the same?  
Reply:  
First, it is important to take into account that PIX was launched in Nov 2020. In that sense, a one 
year growth rate represents the performance of a green field project in the payment sy stem. Having 
said that, there are several factors that drove this growth, since  
(i) PIX is a product that must be compulsorily offered by all commercial banks and all large 
payment institutions; and  
(ii) it is free of charge for individuals. Banks can on ly charge companies that transfer funds by 
PIX. For the sake of comparison, credit cards transactions grew 39.5% on quarter basis from BRL 
245,6 bi (Q4'18) to BRL 342,6 bi (Q4'20), and the on -line transaction share using credit cards 
augmented from 20.8% ( Q4'18) to 27.3% (Q4'20).  
 
Another PIX key successful factor has been the disintermediation of a transaction and its cost 
reduction due to the use of the BCB settlement systems, which almost all financial institution is 
connected to. Moreover, PIX is set ov er an open -source technology, which enables several sorts of 
providers for payment services.  
 
Regarding the strategies for payment digitalization, BCB aims to mitigate barriers of entry and to 
keep the level playing field among incumbents and new companies , such as the "Open Finance" 
initiative. In this case, in order to further promote competition in the financial system, BCB provides WT/TPR/M/432/Add.1  
 
- 116 - 
 
a regulatory perimeter that do not focus on the level of innovation of a business model, but rather 
on the risks related to  it. 
 
Para 4.294 (Page 172)  
Cross -border e -commerce trade grew by 15% in 2021 compared with 2020 in Brazil. Brazilian 
shoppers who make purchases on international websites typically purchase more. Important to note 
that many Brazilian websites do not accom modate international credit cards, which creates hurdles 
for foreigners while in Brazil. In 2020, cross -border e -commerce accounted for 21% of total sales, 
around BRL 22.7 billion. Partnerships between Correios (Brazil state -owned postal services 
company) and foreign e -commerce sellers enabled faster long -haul cargo into Brazil by the foreign 
company in charge of delivery up to Brazil's borders, while Correios completes the service for delivery 
in the country. Border clearance was undertaken in only 2.6% of  all cross -border postal shipments, 
from which over 90% were audited for customs tariff purposes. Consumer protection agencies 
(Procon) have been active pursuing and collecting fines on counterfeit products or contraband sold 
on cross -border platforms.  
 
Question:  
14. With Brazil's cross -border e -commerce trade growing significantly in 2021, does the BCB have 
plans on improving cross -border payments, including entering into bilateral or multilateral 
arrangements (e.g. Nexus) to link its local payment system (e.g. fast payment system) with other 
countries' payment systems?  
Reply:  
A new legal framework for the Brazilian foreign exchange market was approved last year, seeking 
modernization, simplification and consolidation of existing legislation. Law 14,286 of December 
2021, which will enter into force on 31 December, 2022, consolidates more than 40 legal provisions, 
which will bring a greater level of legal certainty.  
 
The new law allows the development of innovative business models complying with foreign excha nge 
rules that have the potential to increase competition, simplify access and reduce costs of cross -
border payments in e -commerce.  
 
It also contributes to the BCB participation, in the future, in international initiatives aimed at 
improving cross -border p ayments, including e -commerce, such as multilateral arrangements and 
local payment systems interlinkages.  
 
II. GENERAL ECONOMIC ENVIRONMENT  
Para 2.4 (Page 5)  
In 2021, the economy continued to be affected by COVID -19…On the other hand, inflation continued 
to increase mainly due to food, fuel prices and electricity prices. Inflation rose from 4.52% in 2020 
to 10.06% at the end of 2021. In that year, Brazil began the cycle of raising the basic interest rate 
to contain inflationary pressures, moving from an annual rate of 2.0% in March to 9.75% in 
December, in seven consecutive rate hikes carried by the Central Bank.  
 
Questions:  
15. The report mentioned that inflation in Brazil rose from 4.52% in 2020 to 10.06% at the end 
of 2021, above the Central Ba nk target. At the same time, it discussed the measures adopted by 
the government to address the pandemic. What is Brazil's outlook for inflation given that global 
inflationary pressures are still prevalent? Would there be additional monetary measures from the 
government to further support the economy? How do you manage the tradeoff between fighting 
inflation and supporting economic growth?  
 
Reply:  
In the last few years, the uncertainty regarding the inflationary scenario has become even greater 
due to sever al shocks of large magnitude that impacted in the global economy and made the process 
of conducting monetary policy even more challenging. Current projections are more uncertain than 
usual, which justifies a cautious approach on conducting monetary policy,  stressing also the need 
for a proper balance of risks and alternative scenarios.  
 
The inflation expectation values for 2023, 2024, and 2025 collected domestically by the Focus survey 
(as of 21 Octobre 2022) are around 4.9%, 3.5% and 3.0%, respectively, wh ile the inflation target 
is 3.25%, 3.0% and 3.0% for the respective years.  
 WT/TPR/M/432/Add.1  
 
- 117 - 
 
  In this sense, Brazilian authorities will remain vigilant in order to assess if the strategy of maintaining 
the Selic rate for a sufficiently long period will be enough to ensure t he convergence of inflation 
rates towards the targets. The current strategy will persist until the disinflationary process 
consolidates and inflation expectations anchor around its targets. Future monetary policy steps can 
be adjusted, and Brazilian moneta ry authorities will not hesitate to resume the tightening cycle if 
the disinflationary process does not progress as expected.  
 
Para 2.54 (Page 13)  
Brazil has a decentralized procurement system. Federal, State and Municipal authorities can make 
public purch ases, in accordance with the Procurement Law (Law No. 14,133/2021), which provides 
for five types of bid proceedings that can be used by agencies and public entities: open tendering; 
electronic reverse auction; competitive dialogue; contest; and public auc tion. According to this Law, 
public entities cannot establish differential treatment between Brazilian and foreign companies. For 
procurement of common goods and services, reverse auction ("Pregão") has been consolidated as 
the most popular modality, perfo rmed mostly by electronic means, having enhanced the efficiency 
and transparency of Brazil's procurement system.  
 
Question:  
16. Based on the Government Report, there are five types of bid proceedings that can be used by 
agencies and public entities: open t endering, electronic reverse auction, competitive dialogue, 
content, and public auction. Could Brazil please differentiate and specify the grounds or 
circumstances on when a procuring entity could use these five types of bid proceedings?  
Reply:  
According t o art. 6 of Law 14,133/21, the grounds and circumstances for the five types of 
proceedings are the following:  
● competitive procurement (open tendering): procurement method for special goods and 
services and ordinary and special engineering works and servi ces whose evaluation criterion may 
be: a) the lowest price; b) the best technique or artistic content; c) technique and price; d) the 
highest economic return; e) the highest discount;  
● contest: procurement method for choosing a technical, scientific, or a rtistic work, whose 
evaluation criterion shall be the best technique or artistic content, and for granting an award or 
compensation to the winner;  
● auction: procurement method for disposal of real properties or personal properties that are 
unusable or wer e legally seized to whoever provides the highest bid;  
● reverse auction: mandatory procurement method for acquisition of ordinary goods and 
services whose evaluation criterion may be the lowest price or the highest discount;  
● competitive dialogue: procure ment method for works, services, and purchases in which the 
Public Administration dialogues with suppliers that were previously selected using objective criteria, 
in order to develop one or more alternatives capable of meeting its needs, and the suppliers shall 
submit a final proposal after the end of the dialogues.  
According to article 29, the competitive procurement (open tendering) and the reverse auction follow 
the ordinary sequence of procedures, and the reverse auction is adopted whenever the object h as 
performance and quality standards that can be objectively defined by the tender documentation, 
through typical market specifications. The reverse auction does not apply in the case of contracts of 
specialized technical services of a predominantly intell ectual nature and engineering works and 
services, except for ordinary engineering services.  
According to article 32, the competitive dialogue method is restricted to contracts in which the 
Administration: I – aims at contracting an object involving the fol lowing conditions: a) technical or 
technological innovation; b) impossibility for the agency or entity to have its need met without 
adjusting the solutions available in the market; and c) impossibility for the technical specifications 
to be defined with su fficient accuracy by the Administration; II – perceives the need to define and 
identify the means and alternatives that may meet its needs, with an emphasis on the following 
aspects: a) the most proper technical solution; b) the technical requirements capa ble of 
implementing the already defined solution; c) the legal or financial structure of the contract.  
 
Para 2.55 (Page 13)  
An important feature of the Government procurement system in Brazil is access to information. 
During the period under review, the Government continued to advance towards the modernization 
of its procurement systems, having set a Public Procurement National Platform (PNCP), which 
centralizes disclosure of public notices, providing greater transparency in the procurement 
procedures ( https://www.gov.br/pncp/pt -br). 
 WT/TPR/M/432/Add.1  
 
- 118 - 
 
Question:  
17. According to the Government Report, it was mentioned that the Government continued to 
advance toward the modernization of its procurement system, through the use of the Public 
Procurement National Platform (PNCP), for the disclosure of public notices, providing greater 
transparency in the procurement procedures. Could Brazil please specify the key features of its 
online procurement platform, including challenges and b est practices in using an online procurement 
platform?  
Reply:  
The publication of the acts required by the new procurement law in the National Public Procurement 
Portal (PNCP) is mandatory for central and subcentral entities of the states and municipalities  from 
April 2023. The PNCP shall include, among others, the following information on contracts: I – annual 
contract plans; II – electronic catalogs for standardization; III – public notices for registration and 
pre-qualification, direct award notices and t ender documentation, and their respective attachments; 
IV – tender proposals; V – contracts and addenda; VI – electronic invoices, when applicable.  
 
Para 2.56 (Page 13)  
Bidders can also easily find substantial information online through the Panel on Procur ement 
(http://paineldecompras.economia.gov.br ) and the Transparency Portal 
(http://www.portaltransparencia.gov.br ). In addition, the legislation re quires both federal and sub -
federal governments to give wide publicity to tendering processes.  
 
Question:  
18. It was mentioned in the Government Report that bidders can easily find substantial 
information online through the Panel on Procurement and the Tra nsparency Portal. Could Brazil 
expound on how its existing transparency measures, including but not limited to the use of beneficial 
ownership information (if applicable), prevent, and detect corruption or conflict of interest in 
government procurement.  
Reply:  
The PNCP shall, among other functionalities, offer: I – a unified information registration system; II 
– a panel for consultation of prices, healthcare price database, and access to the Brazilian database 
of electronic invoices; III – a contract plann ing and management system, including the record of 
certified performance of obligations set forth in § 4 of art. 88 of Law 14,133/21; IV – an electronic 
system to hold public sessions; V – access to the National Register of Ineligible and Suspended 
Compani es (Ceis) and the National Register of Punished Companies (Cnep); VI – a system of 
management, shared with the society, of information related to the execution of the contract, which 
enables: a) previously identified interested parties to send, record, sto re, and disclose text messages 
or images; b) the access to the computerized system for monitoring works referred to in item III of 
the chapeau of art. 19 of Law 14,133/21; c)  the communication between the population and 
representatives of the Administratio n and the contracted party designated to provide relevant 
information and clarification, pursuant to the applicable regulations; d)  the disclosure, pursuant 
to the applicable regulations, of a final report with information about the achievement of the goal s 
that justified the contract and any conducts to be adopted to enhance the Administration's activities.  
 
These PNCP features may help to prevent and detect conflict of interest in government procurement. 
A public official of a supplying or contracting age ncy or entity may not participate directly or indirectly 
in the procurement process or in the performance of the contract; and the situations that may 
characterize a conflict of interest in the exercise of the office or position shall be observed, under 
the laws and regulations regulating the matter.  
 
 
Para 2.59 (Page 13)  
There is no approval requirement to bring foreign capital into Brazil. Nevertheless, all foreign capital 
– including foreign direct and portfolio investments, foreign credit and financing – entering Brazil 
must be registered at the Central Bank. The registration is done in declaratory and electronic forms 
in the corresponding modules of the Electronic Declaratory Registration (RDE), at the Central Bank 
Information System (Sisbacen). Repatri ating investments and income related to foreign capital such 
as liquidated equity and bond investments, dividend payments and making payments on a foreign 
loan do not need Central Bank's authorization. It is important to highlight that all the regulations in 
charge of the Central Bank related to international capital are being reviewed due to the enactment 
of Law 14,286/2021 (Exchange and International Capital Law - LCCI). The new law and the new 
regulation will come into force together, on 31 December 2022 . In compliance with the provisions 
of the new Law, the future regulation will innovate by using the proportionality criterion to establish WT/TPR/M/432/Add.1  
 
- 119 - 
 
  the requirements for providing information to the Central Bank considering ranges of values and 
specific conditions.  Therefore, there will be a significant reduction in the scope of foreign capital 
operations subject to the provision of information to the Central Bank.  
 
Questions:  
19. Is registration of foreign capital with the BCB mandatory regardless of where the for eign 
investors will source the foreign exchange (FX) needed to service the repatriation of capital and the 
remittance of earnings thereon? If so, is there a prescribed timeline within which registration must 
be done with the BCB? What are the possible cons equences of/sanctions for non -registration with 
the BCB of foreign capital?  
Reply:  
Currently, all foreign capital entering Brazil must be registered with the Central Bank of Brazil. 
Registration is a necessary condition for remittances associated with fore ign capital. The deadline 
for registration is 30 days. The lack of registration is subject to the collection of fines. It is very to 
highlight that by 12/31/2022 Law 14.286/2021 comes into force, and it will no longer be mandatory 
to provide information on  all foreign capital in Brazil. Proportionality criteria will be used to establish 
the requirements for providing information, considering, for this purpose, values, characteristics and 
purposes of foreign capital in Brazil.  
 
20. What documents are require d to be submitted for the registration of foreign capital? Does the 
BCB require submission of documentary requirements from foreign investors to support purchase of 
FX (regardless of amount) from the local banking system to service foreign capital -related 
transactions? What information are being gathered/obtained by the Central Bank of Brazil through 
its registration system?  
Reply:  
The registration is solely declaratory and by no means implies a previous authorization. It is done 
at the Eletronic Declaratory Registration System – RDE, at the BCB´s information system – Sisbacen. 
Therefore, it is not necessary to present any document to the BCB. The information collected is used 
in the preparation of the Balance of Payments.  
 
III. TRADE POLICY DEVELO PMENTS (2017 -21) 
Para 3.22 (Page 19)  
Brazil has recently adopted Law No. 14,353/2022, which allows for the suspension of concessions 
and other obligations for Members that have appealed panel reports in which Brazil is a complainant 
to an inoperative Appel late Body (i.e. appealed "into the void"), thereby obstructing the conclusion 
of a dispute. The objective of that law is to remedy the present failings of the WTO's dispute 
settlement system by creating incentives for achieving a solution through negotiati ons between the 
disputing parties and/or the recourse to alternative means of settlement  
 
Question:  
21. Based on the recently adopted Law No. 14,353/2022, what is the process of Brazil in 
determining the form and coverage of suspension of concession or oth er obligations under the 
covered agreements? Does the process entail a unilateral imposition of countermeasures or after 
receiving permission from the Dispute Settlement Body(DSB)?  
Reply:  
Law Nº 14.353/2022 allows the Brazilian government to suspend conces sions and other obligations 
with respect to WTO Members that appealed "into the void" (i.e. to a non -functioning Appellate  Body) 
panel reports in disputes in which Brazil is the complainant and the violation of WTO rules was found, 
thereby blocking the pro cedures. Since Brazil has not so far used that Law, no further detailed 
procedures other than the rules already set out in the Law are presently available.  
Para 3.23 (Page 19)  
In another effort to overcome the paralysis of the Appellate Body, Brazil joined  in 2020 the Multi -
Party Interim Appeal Arbitration Arrangement (MPIA). The MPIA is based on Art. 25 of the Dispute 
Settlement Understanding, and provides an alternative, provisional solution to ensure the rules -
based system through the recourse to an inde pendent and effective appeal system.  
 
Question:  
22. What are the benefits enjoyed by Brazil after joining the MPIA? How many dispute settlement 
cases of Brazil have been resolved through the MPIA?  
Reply:  
By joining the MPIA, participants commit not to "app eal into the void" panel reports in disputes 
between each other, thereby ensuring that (i) those disputes will be decided in a manner consistent WT/TPR/M/432/Add.1  
 
- 120 - 
 
with the DSU and (ii) WTO rules will then be properly enforced. Brazil has not resorted to any MPIA 
appeal arbi tration to date.  
 
IV. TRADE INSTITUTIONAL AND REGULATORY FRAMEWORK  
Para 4.21 (Page 28)  
During the review period, Brazil also continued making improvements to its authorized economic 
operator (AEO) programme, gradually supplementing the benefits15 offered t o participants by the 
RFB with advantages conceded by other administrative bodies intervening through SISCOMEX.16 In 
2021, the RFB -managed AEO Program added the participation of SECEX and initiatives are under 
way for the inclusion of the Secretariat of An imal and Plant Health and Inspection (SDA), the National 
Agency for Civil Aviation (ANAC), the Brazilian Health Regulatory Agency (ANVISA), the Brazilian 
Army, and the National Institute of Metrology, Quality and Technology (INMETRO).  
 
Question:  
23. How do es Brazil implement the AEO programme? How did Brazil Receita Federal do Brasil 
(RFB) encourage the companies to be certified under the AEO?  
Reply:  
Brazilian Customs has implemented the program based on international best practices, which are 
today very we ll organized in the SAFE Package (AEO Implementation and Validation Guidance: 
http://www. wcoomd.org/ -/media/wco/public/global/pdf/topics/facilitation/instruments -and-
tools/tools/safe -package/aeo -implementation -guidance.pdf?la=en ). 
Tangible benefits are crucial to make AEO Program attractive. Inspection rate reduction and priority 
of inspection  for AEO companies are essential benefits to ensure predictability in AEO operations. 
Brazil prioritizes the management of these benefits because it understands that they are essential 
as a mechanism to encourage companies to become AEO.  
 In addition, a co mmunication strategy is very important to keep private sector aware of AEO 
Program requirements and benefits.  
 There is a website with information about the Program, as well as a direct channel of communication 
with AEO experts.  
 
Para 4.23 (Page 28)  
In the context of the AEO Programme, SECEX implemented, in 2021, its Integrated AEO, which 
seeks to broaden the AEO Programme positive effects. Companies previously certified by the Special 
Secretariat of the Federal Revenue of Brazil (RFB) as Authorized Econ omic Operators can apply to 
join the SECEX Integrated AEO. Benefits offered by the SECEX Integrated AEO allows low risk private 
companies to obtain reduction of documentation and information submitted to grant the suspension 
drawback special regime, as wel l as prioritized analysis of applications for this regime and its 
exemption version. Besides that, certified companies have an exclusive point of contact at SECEX to 
address operational difficulties related to the suspension and exemption drawback special regimes 
more rapidly.  
 
Question:  
24. What is the percentage of MSMEs that have been onboarded in the AEO programs? Does the 
MSME go through a different process of accreditation and enjoy different benefits compared to larger 
companies?  
Reply:  
Entry into SE CEX Integrated AEO Program follows the regulation established in Ordinance 
SECEX  No. 107, of 19 August 2021. The aforementioned Ordinance establishes that, in order to 
obtain the certification and benefits listed in the Foreign Trade Secretariat program, t he private 
company must act as importers or exporters and also hold AEO -Compliance Certification (OEA -C), 
under the terms, limits and conditions established by the Special Secretariat of the Federal Revenue 
of Brazil (RFB), in their main module of the AEO Program.  
  WT/TPR/M/432/Add.1  
 
- 121 - 
 
  PHILIPPINES - ADDITIONAL QUESTIONS  
Para  4.14 (Page  105)  
Imports  of agri-food products  increased  between  2012 and 2021,  from USD 11.2 billion  to 
USD 15.5 billion.  Wheat  remains  the single  most important  import  commodity.  Other  major  imports  
include  maize,  malt, wine,  olive oil, rice, potatoes,  and garlic.  Brazil  also continues  to depend  on 
substantial  imports  of agricultural  inputs,  in particular  fertilizers  from the Russian  Federation  and 
Belarus.  
Question:  
13. What are the key strategies/initiatives  of Brazil  to address  skyrocketing  prices  of inputs  in the 
global  market  like fertilizers?   
REPLY:   
Brazil  is one of the most significant  importers  of fertilizer  in world.  Around   40 million  tons of 
nitrogen,  phosphorus  or potash  are impor ted per year. Brazil  sought  to contain  the damage  from 
the world  situation  keeping  an open dialogue  with the most important  partners,  with a view to keep 
the trade and guarantee  the supply  chain  for farmers.  Brazil  also stepped  up to monitor  difficulties  
on boarding  or discharging  ships,  since the origin  ports until the final destination  in Brazilian  territory.  
Finally,  the country  intensified  the efforts  to spread  the best agricultural  practices,  using  Embrapa 's 
expertise  and an extensive  network  for techn ical assistance  for optimizing  the use of fertilizers.  
Para  4.16 (Page  106)  
The Agricultural  and Livestock  Plan 2021-22 (Plano  Safra)  continues  to be administered  
by MAPA.  The Plan has been adjusted  to meet the objectives  and criteria  of the broader  Pluria nnual  
Planning  (PPA)  2020-23 under  four main pillars:  sustainability,  family  farming,  investments,  and 
agricultural  insurance.  Accordingly,  the Agricultural  and Livestock  Plan 2021-22 aims at promoting  
agricultural  development  on a sustainable  basis,  as it encourages  technological  modernization  and 
the application  of best agricultural  practices  in the field following  the Brazilian  environmental  
legislation.  
Question:  
14. What are Brazil 's key strategies/initiatives  to promote  modern  and technologically -advanced  
private  sector  investments  in the agriculture  sector?  
REPLY:   
Public  credit  lines have been an essential  part of financing  agriculture.  The annual  Agricultural  Plan 
(Plano  Agrícola e Pecuário – PAP) is the main instrument  and outlines programmes  designed  for the 
sector,  using  credit  lines with differentiated  interest  rates between  smallholders,  medium,  and large 
farmers.  Producers  have financed  agricultural  production  mainly  though  equity  and banks.  However,  
green  investment  opportu nities  and alternative  financing  mechanisms  may be leveraged  through  
cooperatives,  industry,  suppliers  and traders.  Brazil  has dedicated  capital  market  instruments  for 
agriculture  that can be labelled  green  and source  investment  into sustainable  practices.  Brazil 's 
financial  and capital  market  instruments  are ready  to leverage  existing  opportunities  and attract  
long term (private  sector)  capital  for agriculture  at a time when  public  sources  are becoming  
increasingly  scarce.  The most used security  instrument s on public  issuances  to finance  agribusiness  
are the CRA (certificados  de recebí veis do agroneg ócio – agriculture  convertible  bonds)  and LCA 
(financial  agriculture  bills),  together  with other  general  purpose  instruments,  such as Credit  Rights  
Investment  Funds (FIDCs)  and Bonds  (Debentures).  
Page  4.23 (Page  107)  
During  the review  period,  Brazil  continued  to provide  a broad  range  of assistance  
programmes  to its agricultural  sector  targeting  different  categories  of producers  and for reaching  
different  objecti ves, including,  inter alia, in the form of administered  interest  rate or concessional  
credit  lines,  price support  mechanisms,  and insurance  premium  subsidies  xxx 
Para  4.51 (Page  119)  
Main features  (Mining  – excluding  hydrocarbons)  
Brazil  continued  to hold a significant  position  in the international  mining  industry  as the world's  
second -largest  producer  of iron ore and manganese,  the world's  leading  producer  of niobium,  and WT/TPR/M/432/Add.1  
 
- 122 - 
 
one of the top producers  of bauxite  and tin in 2020.  Brazil  has large mineral  reserves  and produces  
a total of 72 mineral  substances  (45 non-metals,  23 metals,  and 4 energy  minerals).  In terms  of 
production  value,  iron (68%),  gold (11%),  and copper  (7%) are Brazil's  main mining  products.  
During  the review  period,  the contribution  of the mining  and quarrying  sectors  to Brazil's  value  added  
GDP grew significantly  from 1.6%  in 2017 to 5.5%  in 2021 (Table  1.2). From 2010 to 2019,  the 
mining  sector  accounted  for around  2.74%  of the labour  force in the country  with around  
1.1 million  workers  in 2019,  of which  85% were engaged  in mineral  transformation  activities.  FDI 
inflow  in mining  support  service  activities  reached  almost  3% of Brazil's  GDP in 2020.  
Question:   
15. During  the review  period,  the contribution  of the mining  and quarrying  sectors  to Brazil 's value -
added  GDP grew significantly  from 1.6%  in 2017 to 5.5%  in 2021.  Were there  government  policies,  
programs,  and/or  support  that were imposed  that may have caused  this significant  growth?  
REPLY:  
In 2016,  the Brazilian Development  Bank (BNDES)  and the Financier  of Studies  and Projects  (FINEP)  
launched  the Plan for Development  Sustainability  and Innovation  in the Mineral  and Mineral  
Transformation  Sector  (Inova  Mineral).  Inova  Mineral  aims at coordinating  actions  to promote  and 
select  Business  Plans that include  research,  development,  engineering  and/or  technological  
absorption,  production  and commercialization  of products,  processes  and/or  innovative  services,  and 
other  actions  necessary  for them to be taken  to the market  in a competitive  manner,  aiming  at the 
development  of Brazilian  companies  and technologies  in the productive  chains  of the mining  industry,  
complementary  and/or  in consortium  with actors  from other  upstream  or downstream  chains  (with 
the exception  of the Oil and Gas segments)  for example,  in the following  segments:  research,  
mineral  exploration  and transformation,  inputs,  machines,  equipment,  software  and systems,  thus 
contributing  to innovation,  local content,  competitiveness  and sustainability  policies linked  to the 
aforementioned  segments.  
The BNDES/FINEP  joint public  consultation  notice  was launched  on 2 August  2016.  The notice  was 
carried  out in two stages:  the final result  of the first stage  was concluded  on 26 May 2017 and the 
final result  of the second  stage  was concluded  in 29 January  2018.   
Companies  and/or  Brazilian  economic  groups  that are interested  in developing,  producing  and 
commercializing  products,  processes  and/or  services  resulting  from the technologies  listed  in the 
thematic  lines of the Notice  could  participate  in the selection  process,  being  able to do so individually  
or in partnership  with companies  of any size and/or  scientific  and technological  institutions.  For this 
purpose,  the interested  party  must register  in the selection  process  as a "Leading  Company".  
The thematic  lines were chosen  according  to the opportunities  identified  by several  agents  operating  
in the sector,  among  entities  of the federal  government,  Scientific  and Technological  Institutions  and 
Brazilian  Companies.  These  thematic  lines were also subject  to consultation  with potential  interested  
parties  for validation  and refinement.  
The selection  process  was governed  by the provisions  contained  in the Notice,  by the rules of the 
Ministry  of Science,  Technology,  Innovations  and Communications  - MCTIC  and of the Ministry  of 
Planning,  Development  and Management  - MP applicable,  by the internal  rules of FINEP  and BNDES  
and by the applicable  legislation  to the types  of financial  support  to be operated  by these  institution s 
within  the scope  of INOVA  MINERAL,  in particular  Law No. 10,973/2004,  regulated  by 
Decree  No. 5,563/2005,  Law No. 11,540/2007,  regulated  by Decree  No. 6,938/2009  and, where  
applicable,  Normative  Instruction  CD/FNDCT/MCT  No. 01/2010 . 
Para  4.57 (Page  121)  
The National  Mining  Plan (PNM)  2030 is the actual  long-term planning  instrument.  PNM 2050 is being  
prepared  to be released  by the end of 2022,  and will set guidelines  for public  policies  towards  
competitive  and sustainable  development  for the mining  sector . The ANM's  Strategic  Planning  (2020 -
23) sets important  guidelines  for the newly  created  agency  and for the mining  sector  as a whole,  
including  the use of good regulatory  policy  tools,  improvement  projects,  regulatory  impact  
assessment,  social  participatio n processes  (PPCS)  with stakeholder  engagement,  and regulations  
regarding  tailings  dams'  safety  and mine closures  following  two large-scale recent  disasters  (Mariana  
in 2015,  and Brumadinho  in 2019),  among  others.  
 WT/TPR/M/432/Add.1  
 
- 123 - 
 
  Question:  
16. What is Brazil  government 's overall  thrust  or direction  for its mineral  resources,  e.g. promote  
domestic  processing,  conserve  and protect  mineral  resources,  etc.? 
REPLY:  
In addition  to the Inova  Mineral,  Brazilian  mining  has the potential  to significantly  expand  the 
sustainable  production  of minerals  In the coming  years,  with significant  opportunities  for foreign  
direct  investment  in Brazil's  mineral  industry.  According  to studies  by IPEA (2022),  despite  the recent  
growth  in mining  production  in the North,  the Southea st and South  regions  concentrate  almost  70% 
of the percentage  share  of gross  mineral  production  in the country.  Minas  Gerais  serves  as an 
example  to characterize  mineral  exploration  because  it is the leading  Brazilian  state in mineral  
production,  with a predominance  of large and medium -sized mines  for iron ore. Minas  Gerais  
(28.4%),  Espírito Santo  (12.0%),  São Paulo  (11.7%),  Bahia  (8.2%)  and Pará (5.85%)  are the main 
mineral  producing  states  in Brazil.  According  to the aforementioned  IPEA survey  (2022),  the 
presence  of mining  activity  was not statistically  significant  in relation  to the increase  in deforestation  
in the Amazon  biome.  Furthermore,  when  observing  the variable  deforestation  with soil degradation,  
by the DETER  System  (2022),  mining  activity  repre sents  less than 1% (0.7%)  of deforestation  in 
the Amazon.  These  results  are interesting  because,  from the perspective  of the mining  
municipalities,  mineral  exploration  did not contribute  to a greater  increase  in deforestation  than the 
other  analyzed  munici palities  that do not have mining  activity.  
It is worth  highlighting  that any mining  activity  in Brazil,  small,  medium  and especially  large mining  
companies,  is subject  to the constitutional  principles  of the economic  and environmental  order.  
Based  on art. 170 of the Brazilian  Federal  Constitution  (CF/88),  all economic  activity  must respect  
the principle  of protecting  the environment  and, under  the provisions  of § 2 of art. 225 (CF/88),  
"Anyone  who exploits  mineral  resources  is obliged  to recover  the degrade d environment,  in 
accordance  with the technical  solution  required  by the competent  public  body,  pursuant  to the law". 
From the point of view of environmental  compensation,  the legislation  requires  the payment  of 
financial  compensation,  proportional  to the environmental  impact,  to be invested,  mostly,  in 
conservation  units and environmental  services  (Law 9,985/2000).  In the field of forest  
compensation,  legislation  that protects  native  vegetation  (eg Law 11,428/2006  and Law 
12,651/2012)  requires  compensation  through  compensatory  planting  projects,  creation  of 
conservation  units and/or  reforestation  projects,  resulting  from economic  activity  (mining)  that 
caused  the suppression  of vegetation.  Therefore,  duly licensed  mining,  in addition  to contributing  to 
forestry development  and biodiversity  conservation,  must promote  the closure  of mines,  with due 
environmental  recovery  in accordance  with the plan approved  by the environmental  and mineral  
licensing.  
Some  ongoing  strategic  actions,  such as the Support  Program  to the Development  of Artisanal  and 
Small -scale Mining  (Pró-Mape)  and the National  Action  Plan for the extraction  of Gold without  
Mercury  (PAN-Minamata),  can contribute  to further  the sustainability  of mining  activity  in the Legal  
Amazon  region.  
Para  4.61 (Page  122)  
The process  of obtaining  a mining  title is described  in the Mining  Code,  Ordinance  No. 155/2016  of 
the DNPM,  and Decree  No. 9,406/2018.74  Law No. 13,540/2017  changed  the distribution  of the 
CFEM  as follows:  (i) 7% to the regulatory  entity  of the mining  sector;  (ii) 1% for the National  Fund 
for Scientific  and Technological  Development  (FNDCT);  (iii) 1.8%  for the Mineral  Technology  Centre  
(CETEM),  linked  to the Ministry  of Science,  Technology,  Innovations  and Communications;  (iv) 0.2%  
to the Brazil ian Institute  for the Environment  and Renewable  Natural  Resources  (IBAMA);  (v) 15% 
for the Federal  District  and the states  where  production  takes  place;  (vi) 60% for the Federal  District  
and the municipalities  where  production  takes  place;  and (vii) 15% for the Federal  District  and 
municipalities,  when  affected  by mining  activity  and production  does not occur  in their territories.  
There  are no export  taxes  on minerals.  Further  information  is provided  by the authorities  in the 
Tables  4.9 and 4.10 below.  
Ques tion:  
17. There  are no export  taxes  being  imposed  on minerals.  Has this resulted  in the mass exportation  
of raw/unprocessed  ores/minerals  and/or  minimal  domestic  mineral  processing?  
REPLY:  WT/TPR/M/432/Add.1  
 
- 124 - 
 
In Brazil,  most products  are traditionally  exempt  from the Export  Tax (paying  a zero tax rate).  Due 
to the large scope  and the long duration  of the policy,  there are no official  studies  available  about  
the impact  of these  exemptions.  
Para  4.100  (Page  132)  
Solar energy  in Brazil  increased  70% from 2020 to 2021,  reaching  13 GW in installed  capacity.  
Energy  auctions  from solar energy  is expected  to reach  over USD 5 billion  in 2022,  in addition  to 
USD 1 billion  already  invested  in solar distributed  generation  since 2012,  expected  to significantly  
increase  in the coming  few years. 
Question:  
18. Installed  capacity  of electricity  from solar resources  increased  to 70% between  2020 and 2021.  
This is equivalent  to 13 GW additional  capacity.  Are there any incentives  that are given  to renewable  
energy  (RE) developers/operators  aside from the tariff prices?  Also, is there any exploration  and 
utility -scale implementation  of nascent  technologies  such as floating  photovoltaic  and rooftop  
installations?   
REPLY:  
In Brazil,  there are several  laws and public  policies  that stimulate  the participation  of the renewable  
energy  sector,  among  which  one can mention:   
• Law No. 10,438/2002  which  created  the Alternative  Electricity  Sources  Incentive  Programme  
- Proinfa  and the Energy  Development  Account;   
• Law No. 11,097,  of 13 January  2005,  which  provides  for the introduction  of biodiesel  into 
the Brazilian  energy  matrix;   
• MME Ordinance  No. 403/2019,  which  establishes  the Electricity  Sector  Modernization  
Implementation  Committee  - CIM;  
• Resolution  No. 6, of 23 June 2022,  which  establishes  the National  Hydrogen  Program  - PNH2;   
• Law No. 13,576,  of 26 December  2017,  which  provides  for the National  Biofuels  Policy  
(RenovaBio);   
• CNPE  Resolution  No. 7, of 20 April 2021,  which establishes  the Fuel of the Future  Program;   
• Decree  No. 5,297,  of 6 December  2004,  which  establishes  the Social  Biofuel  Seal for biodiesel  
producers  that promote  the social  inclusion  of family  farming;   
• Decree  No. 10,946,  of 25 January  2022,  which  allows  the assignment  of physical  spaces  for 
the generation  of electricity  from offshore  enterprises;   
• Decree  No. 11,003,  of 21 March  2022,  which  establishes  the Federal  Incentive  Strategy  for 
the Sustainable  Use of Biogas  and Biomethane;   
• Law No. 14,300,  of 6 January  2022,  which  establishes  the Legal  Framework  for Distributed  
Generation  - GD;  
• Law No. 14,248,  of 25 November  2021,  which  establishes  the National  Biokerosene  Program;   
• Energy  Auctions  for renewable  sources;   
• Law No. 11,488/2007,  which  created  the Special  Incentive  Regime  for Infrastructure  
Development  – REIDI;   
• Law No. 9,427/1996  amen ded by Law No. 13,360/2016,  which  defines  the benefits  of 
reduction  of more than 50% of TUST  and TUSD  for solar,  wind,  biomass,  qualified  
cogeneration,  and PCH sources;   
• ICMS  Agreement  156/2017,  which  extends,  until 31 December  2028,  the ICMS  Agreement  
101/97,  which  grants  exemption  from ICMS  in operations  with equipment  and components  for 
the use of solar and wind energy  generation;   WT/TPR/M/432/Add.1  
 
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  • ME resolution  No. 14, of 19 February  2020,  and No. 69, of 16 July 2020,  which  changes  to 
zero percent  the Import  Tax rates levied  on Capital  Goods  that mentions,  as Ex-tariff,  among  
the items,  there  are several  goods  for the renewable  energy  industry;  
• Law No. 14,302/2022,  which  extends  the term of the Program  to Support  Technological  
Development  of the Semiconductor  Indus try – PADIS,  bringing  benefits  to inputs  and 
equipment  related  to the connection  of solar cells and photovoltaic  solar modules;  and 
• Law No. 9,427,  of 26 December  1996,  which  establishes,  in its §§ 1, 1-A and 1-B, the 
reduction  of tariffs  for the use of electricity  transmission  and distribution  systems  for small 
enterprises  using  renewable  sources  (hydro,  wind,  solar,  biomass  and waste).  
Para  4.104  (Page  133)  
The PDE reaffirmed  the commitment  for the supply  of electricity  from renewable  sources  to reach  
85% in 2020,  set the objective  to reach  the level of 88% by 2030,  in line with Nationally  Determined  
Contribution  (NDC)  assumed  under  the Paris Agreement,  as well as the determinations  of 
Decree  No. 9,578/2018.  The Plan also set focus on the decarbonization  of matrices.  The challenges  
related  to the participation  of renewable  sources  variables,  such as wind and solar photovoltaic,  are 
increasingly  present  in the technical  aspect  as well as in the commercial  and regulatory  aspects  of 
the Plan. 
Question:  
19. Brazil's Ten-year Energy  Expansion  Plan 2030 (PDE 2030)  highlighted  its reaffirmation  to reach  
85% renewable  energy  (RE) share  in its total installed  capacity  by 2020 and 88% by 2030.  In 
paragraph  4.99, it stated  that 84% RE share  was achieved  in 2021.  This nonattainment  of the target  
may be attributable  to the delays  caused  by the pandemic.  What are the support  mechanisms  that 
the country  is implementing  to make  up for the lost target  in 2020 that may affect  the 2030 target?  
REPLY:  
The Brazilian  leadership  in the energy  transition  is the result  of several  policies,  adopted  in recent  
decades,  to stimulate  the competitiveness  of renewable  sources,  culminating  in one of the cleanest  
matrices  in the world.  It is expected  that, by the end of 2022,  almost  47% of the energy  matrix  and 
85% of the electricity  matrix  will have come  from renewable  sources,  almost  triple the share  than 
the world  average.  
This panorama  was initially  paved  by the use of the abundant  water  resources  that the country  
possesses,  coupled  with the decision  to diversify  sources  and interconnect  the different  regions  of 
the country,  to ensure  greater  energy  security,  since the Brazilian  power  matrix,  predominantly  
hydraulic,  has always  been impacted  by climate  effects.  
A recent  episode  that tested  the domestic  energy  security  was the record  water  shortage  
experienced  in 2021,  with the lowest  rainfall  recorded  in the last 90 years.  Even in this adverse  
scenario,  to which  the growth  in energy  demand  resulting  from the post-pandemic  economic  
recovery  was added,  Brazil  met all the demand  while maintaining  a high renewable  profile.   
It is worth  mentioning  that the Brazilian  energy  planning  for the ten-year horizon  is consolidated  in 
the Ten-year Energy  Expansion  Plans (PDEs),  revised  annually,  which  consider,  in their updates,  
recent  occurrences  and lessons  learned,  to redefine  studies  for the elaboration  of an indicative  power  
matrix.  
The last PDE published  was PDE 2031,  also available  in English  (https://www.gov.br/mme/pt -
br/assuntos/secretarias/spe/publicacoes/plano -decenal -de-expansao -de-energia/pde -
2031/english -version ). 
Para  4.204.  (Page  154)  
The sector's  2015-24 Strategic  Plan was renewed  and is aimed  at expanding  access  to and use of 
services  of an adequate  quality  and at affordable  prices,  stimulating  competition  and sustainability,  
supporting  consumer  satisfaction,  and promoting  the dissemination  of sectoral  data and information.  
Its Management  Plan 2021-22 prioritized  the set objectives:  (i) promote  improved  performance  in 
the provision  of telecommunications  services;  (ii) optimize  the granting  and licensing  of stations;  
(iii) improve  the management  of resources  for the provision  of telecommunication  services;  
(iv) improve  economic  regulation  and encourage  innovation  in the sector;  (v) improve  and simplify  WT/TPR/M/432/Add.1  
 
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sectoral  regulation;  (vi) improve  transparency  and social  participation;  (vii) develop  strategic  
management;  (viii) intensify  and improve  the use of IT in regulation;  (ix) ensure  adequate  
infrastructure  and facilities;  (x) promote  management  by results;  and (xi) secure  resources  and 
strengthen  budget  management.  
 
Question:  
21. Based  on the experience  of Brazil,  how did its strategic  plan affect  the digital  divide  in the 
country.  Is it effective  in meeting  its objective/s?  Can we secure  a copy of the plan, for our reference?  
 
REPLY:  
 
According to the most recent summary report available on the implementation of the 2015 -2024 
Strategic  Plan (https://sistemas.anatel.gov.br/anexar -
api/publico/anexos/download/2f5be56a1fa78d9d5a428796406a6621 , in Portuguese), (i)  mobile 
broadband coverage was available, in 2021, fo r 90,15% of the Brazilian population, which accounts 
for 98,57% of the goal for 2023 (91,46%); (ii) broadband coverage was available, in 2020, for 
64,82% of the households in rural areas, which accounts for 88,75% of the goal for 2023 (73,04%); 
and (iii) f ixed broadband coverage was available, in 2021, for 58,66% of households, which accounts 
for 103% of the goal for 2023 (57%). A copy of the plan can be accessed, in Portuguese, at the 
following link:  
https://www.anatel.gov.br/P ortal/verificaDocumentos/documento.asp?numeroPublicacao=327138
&pub=original&filtro=1&documentoPath=327138.pdf .  
 
Para  4.221.  (Page  157)  
Number  portability  has been required  since 2007.  A private  association,  contracted  through  public  
bidding,  continues  to manage  the central  reference  databank  for number  portability.  As a result  of 
the bidding  process,  the managem ent of portability  operations  was delegated  by ANATEL  to the 
Brazilian  Telecommunication  Resources  Association  (ABR Telecom).  ANATEL  also supervises  
wholesale  infrastructure  in the country  and has representatives  of the largest  telephone  operators,  
as well as representatives  of small and regional  operators,  on its board.  Number  migration  is subject  
to conditions  set by ANATEL  and ABR Telecom,  including  a fee of BRL 4. In 2022,  around  700,000  
fixed-line and mobile -phone  subscribers  in Brazil  carry their numb er to a new operator  each month.  
Between  2008 and January  2021,  8,382,861  lines including  1,243,657  fixed lines and 7,139,204  
mobile  phones  were carried  to a different  operator.  
 
Question:  
22. The Philippines  rolled  out the Mobile  Number  Portability  (MNP)  Act last September  2021.  Based  
on the experience  of Brazil,  how did the rollout  of mobile  number  portability  program  affect  the 
overall  service  quality  and competitiveness  in the sector  and what are the disadvantages  or 
tradeoffs,  if any? 
 
REPLY:  
 
Brazil 's National Telecommunication  Agency (ANATEL) regularly monitors the implementation and 
management of the national number portability program and its general assessment is that it has 
had over the last years a positive impact in terms of promoting competition and improving overall 
service quality in the sector.  
 
Para  4.282.  (Page  169)  
During  the review  period,  MInfra's  Ordinance  No. 123/2020  instituted  the Integrated  Transport  
Planning,  which  includes  the federal road, rail, waterway,  and air subsystems,  and the interlinks  and 
logistical  connections  between  them.  The Ordinance  provides  for the establishment  of the National  
Logistics  Plan (PNL),  and the Sectoral  Plans of each of the subsystems  making  the connecti on 
between  the PNL and the actions  of MInfra.  Ordinance  No. 61/2020  establishes  the current  guidelines  
for the preparation  and review  of the following  planning  instruments  for the port sector:  Master  Plan 
(PM) for the planning  of port complexes  aiming  to direct short-, medium -, and long-term actions  
and investments  in ports;  Development  and Zoning  Plan (PDZ),  which  includes  strategies  and actions  
for the expansion,  integration,  and orderly  and sustainable  development  of the areas  and facilities  
of the organ ized ports;  and General  Plan for Concessions  (PGO)  for guiding  investors  and 
consolidating  concession  projects  in the port sector.  
 WT/TPR/M/432/Add.1  
 
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  Question:  
23. Since  the Integrated  Transport  Planning  was instituted  via MInfra  Ordinance  No. 123/2020  is 
there  a possibility  of changes  in the Transport  Plan once the new administration  transitions  after 
Brazil 's election?  
 
REPLY:   
The possible changes in transport policy are not defined yet, as the new administration did not take 
place. It is important to highlight that Minfra Ordinance establishes the need to create a Transport 
Plan, bus does not constitute a Transport Plan in itself.  
  WT/TPR/M/432/Add.1  
 
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COLOMBIA  
I. ECONOMIC ENVIRONMENT  
Para 1.4 (Page 19)  
 
Since 2017, changes in the overall sectoral pattern of Brazil's GDP have mainly consisted of the 
increasing contribution of agriculture and mining and quarrying – important drivers of Brazilian 
exports, and a decline in manufacturing and services…According to United Nations Conference on 
Trade and Development (UNCTAD) esti mates, in 2017, Brazil ranked 21st (22nd in 2020) among the 
world's 25 top exporting developing economies by GVC participation rate; its GVC participation in 
exports (40% upstream) stood below the average of the developing exporting economies (56%).  
  
Question:  
1. What are the key strategic measures/reforms that Brazil intends to implement in the 
medium -term to further enhance the country's merchandise exports; thus, increase export 
productivity and competitiveness for sustainable growth? Did Brazil's e xport market remain resilient 
during currency depreciation episodes? Has the depreciation supported the country's export growth?  
 
Reply:  
Brazil has taken several measures to increase its productivity and, consequently, increase the 
competitiveness of expor ts in mid -long term. These are horizontal measures such as Economic 
Freedom Act (Law No. 13,874/2019), the Regulatory Agencies' Law (Law No. 13,848/2019) and the 
Business Environment Act (Law No. 14,195/2021). The Economic Freedom Act main objective is to 
guarantee the free exercise of economic activity and free enterprise, allowing for the intervention of 
the State only as a subsidiary and exceptional recourse; the Regulatory Agencies Act guarantees 
functional, decision -making, administrative and financial  autonomy to Regulatory Agencies; and the 
Business Environment Act advances in economic legislation in the context of the business 
environment (Section 2.2.1). Furthermore, reductions in tariff levels (Section 3.2) and trade barriers 
(Section 3.3) have the  potential to improve exports reducing costs to access imported inputs and 
capital goods and enhancing the allocation of factors of production in the Brazilian economy.  
Regarding the exchange rate, it is important to remark that the dynamics of exports ar e more 
influenced by variations in external demand. However, more pronounced and lasting changes in the 
exchange rate level can influence the dynamics of exports. In 2020, the year in which world GDP 
fell by around 3% (IMF) and world exports fell by 4.9% ( WTO), Brazilian exports grew by 2% in 
volume. One of the elements that could have contributed to this performance was the 28% 
devaluation in the real exchange rate. Nevertheless, a stable exchange rate is crucial as its 
uncertainty has a negative effect on  international trade. Brazil has a floating exchange rate regime, 
where the market conditions – supply and demand – determine the foreign exchange rate, which 
floats freely. Eventual Central Bank 's interventions in the foreign exchange market is limited to  
periods of excessive market volatility.  
 
 
Para 1.8 (Page 22 -23) 
Brazil maintains a floating exchange rate system with no restrictions on currency conversion and 
transfers for current international transactions; the system continues to work as an important  shock 
absorber.31 The BCB has not sought to influence the exchange rate, limiting its currency market 
interventions (direct market interventions and swap contracts) to containing excessive short -term 
volatility. During the review period, the nominal BRL/U SD exchange rate depreciated by an overall 
(cumulative) 69% (Table 1.1); in trade -weighted terms, overall, the effective exchange rate 
appreciated, thus raising Brazil's international competitiveness. According to the OECD, depreciation 
was partly related to a flight for safety in the context of the pandemic, declining domestic interest 
rates, and an expanding domestic capital market.32 To dampen excessive volatility, between 
December 2017 and May 2022, the BCB increased the outstanding stock of FX swaps by  
USD 76.5 billion after jumps in response to the pandemic and to Ukraine war -related uncertainty.  
 
Question:  
2. Apart from increasing the outstanding stock of foreign exchange (FX) swaps, what other measures 
did the Central Bank of Brazil (BCB) implement t o dampen excessive volatility in Brazilian real in 
response to global developments such as the COVID -19 pandemic, Ukraine ‑Russian conflict -related 
uncertainty, and aggressive interest rate hikes by the US Federal Reserve?  
Reply:  WT/TPR/M/432/Add.1  
 
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  Besides foreign exchange (FX) swaps, the BCB has conducted spot sale auctions to cope with excess 
volatility caused by liquidity constraints in the local FX market. In addition, to address temporary 
liquidity shortages, USD credit lines have been placed during periods of perceived scarcity in dollar 
funding conditions.  
  
The BCB´s FX intervention policy seeks no target for the exchange rate but rather aims at preserving 
proper market functioning by timely dealing with disruptive dynamics which would undermine 
adequate inte rmediation and price formation of the BRL/USD exchange rate.  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
 
Para 3.156 (Page 95)  
Brazil's decentralized system comprises independent procurement jurisdictions at all levels of 
government that share a common set of rules established by the Federal Government. The common 
elements used to be mainly set out in the 1993 General Procurement Act (Federal 
Law No. 8,666/1993).172 During the period under review, the Federal Government enacted a new 
Government Pr ocurement Law (Law No. 14,133, 1 April 2021 – Procurement Process and 
Administrative Contract Law), which aimed at updating and simplifying rules and procedures 
currently regulated by the 1993 Procurement Law.173 The 2021 Procurement Law includes 
provision s on transparency, procurement methods, evaluation of bids, exemptions, appeals, and 
contract management, and it applies to procurement procedures, and contracts entered into by 
entities at the federal, state and federal district, and municipal levels in a ll three branches of 
government (executive, legislative, and judicial). SOEs are not covered by the 2021 Procurement 
Law. 
  
Question : 
3. Based on the Secretariat Report, during the period under review, the Federal Government enacted 
the New Government Proc urement Law which aimed at updating and simplifying rules and 
procedures currently regulated by the 1993 Procurement Laws. Could Brazil elaborate on the 
changes, streamlining efforts, and other initiatives pursued to simplify and update its rules and 
proce dures on government procurement? What were the challenges and how were they addressed?  
 
Reply:  
The new procurement law - Law 14,133/2021  – was designed to consolidate the legal provisions of 
different government procurement systems and modernize the rules for public bidding. It also aimed 
at improving the efficie ncy and transparency of government procurement, applicable to the three 
levels of government (federal, state, and municipal). The new legal framework for government 
procurement revokes Law n. 8,666/1993 and Law n. 10,520/2002 (Reverse Auction Law), and 
replaces legal provisions of Law n. 12,462/2011 (Differentiated Procurement Regime), after a two -
year transition period, as a means to consolidate the provisions from those laws. Therefore, from 
April 2023 onwards, the Law will be exclusively applied. The new  law also provided the development 
of a new national government procurement database, which will centralize information on all public 
biddings across the three levels of government, improving transparency. The National Public 
Procurement Portal (PNCP) was created as an official website for the centralized and mandatory 
disclosure of the acts required by the law. The PNCP can be accessed at  https://www.gov.br/pncp/ . 
Among  the main updates, one may mention the incorporation of the competitive dialogue modality, 
applicable on specific cases, along with the reverse auction; competitive procurement; contest; and 
auction. Additionally, the law extended the possible criteria for  evaluating bidding proposals, which 
are currently six: lower price; biggest discount; best technique or artistic content; technique and 
price; biggest bid (in case of auctions); and largest economic return. Those provisions are designed 
to modernize and i mprove the efficiency of the Brazilian government procurement legal framework.  
  
  
Para 3.159 (Page 96)  
Article 11 of the 2021 Procurement Law provides that the procurement process should aim at: 
(i) ensuring the selection of the proposal capable of delivering the most advantageous results for 
the procuring entity, including by taking into account the life cycle cost of the procured object; 
(ii) ensuring fair competition and equal treatment among suppliers; and (iii) encouraging innovation 
and sustain able national development. Article 28 provides for the use of the following procurement 
methods: (i) reverse auction (pregão); (ii) competition (concorrência); (iii) open tendering 
(concurso); (iv) auction (leilão); and (v) competitive dialogue (diálogo co mpetitive). Competitive 
dialogue has not previously existed in the Brazilian system. It allows procuring entities to engage in WT/TPR/M/432/Add.1  
 
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dialogue with selected suppliers with the aim of developing technical solutions capable of meeting 
the needs of the procuring ent ities. The selected suppliers are expected to submit their final 
proposals at the end of the dialogue phase.  
 
Question:  
4. The Secretariat Report provides that the procurement process should aim at (i)  ensuring the 
selection of the proposal capable of deli vering the most advantageous results for the procuring 
entity, including by taking into account the life cycle cost of the procured object; (ii)  ensuring fair 
competition and equal treatment among suppliers; and (iii) encouraging innovation and sustainable  
national development. Could Brazil further expound on how it determines the "most advantageous 
results" for the procuring entity? In lifecycle costing, was this used as part of the selection criteria 
for the bidders? If yes, please explain.  
 
Reply:  
Accord ing to art. 33 and 34 of Law 14,133, which deal with the evaluation criteria, the proposals 
shall be evaluated according to the following criteria:  
I – the lowest price;  
II – the highest discount;  
III – the best technique or artistic content;  
IV – techniqu e and price;  
V – the highest bid in case of auctions;  
VI – the highest economic return.  
The evaluation by the lowest price or highest discount and, when applicable, by technique and price 
shall consider the lowest expenditure for the Administration, having met the minimum quality 
parameters defined in the tender documentation. The indirect costs related to maintenance, use, 
replacement, depreciation expenses, and expenses incurred due to the environmental impact of the 
object of the pr ocurement, among other factors related to its life cycle, may be taken into account 
for the determination of the lowest expenditure, whenever they are objectively assessed, as provided 
for in the applicable regulations.  
  
Para 3.166 (Page 97)  
Article 60 of  the 2021 Procurement Law provides that in case of a tie between two or more bids, 
several criteria may be used to break the tie, including the possibility of giving preference to goods 
and services produced by: (i) locally established companies; (ii) Braz ilian companies; and 
(iii) companies that invest in research and in the development of technology in Brazil. Similar rules 
also apply to procurement by SOEs.  
 
Question : 
5. The Secretariat Report states that: "in case of a tie between two or more bids, seve ral criteria 
may be used to break the tie, including the possibility of giving preference to goods and services 
produced by: (i) locally established companies; (ii) Brazilian companies; and (iii) companies that 
invest in research and in the development of technology in Brazil. Similar rules also apply to 
procurement by state -owned enterprises". Could Brazil clarify what constitutes a "tie" among bidders 
(whether it means that all bidders are compliant with all the legal, financial, and technical 
requirement s of a particular bid) and whether the independent procurement jurisdiction (within 
Brazil's decentralized procurement system) have the discretion to apply such preference or are they 
mandated to enforce such preference?  
 
Reply:  
Paragraph 1 of art. 60 of L aw 14,133/2021 does not determine the immediate application of a 
preference to national companies in case of a tie. If the bids are exactly of the same value, there 
shall be a new round of bids. If the tie remains, a succession of tiebreaking criteria woul d take 
precedence before the possibility of resorting to the criteria referred to in paragraph 3.166. This is 
also followed by sub -central entities whenever they carry out procurement, and by SOEs, as Law 
13,303/16 refers to tiebreaking criteria that are s imilar to the ones described above. Those criteria 
would be, in any case, very rarely - if ever - applied, since a "tie" among bidders would require that 
the bids were exactly of the same value.  
 
Para. 3.172 (Page 98)  
Administrative and judicial review pro cedures available in Brazil can be used by suppliers to 
challenge the conformity of any procurement act by a procuring entity with the applicable legislation. 
In this regard, Chapter II of the 2021 Procurement Law provides details on the applicable WT/TPR/M/432/Add.1  
 
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  adminis trative review procedures, including regarding oppositions, requests for clarification, and 
appeals. These procedures also apply to foreign suppliers when participating in international 
tendering. A novelty in Brazil's 2021 Procurement Law concerns the int roduction of Chapter XII on 
alternative dispute resolution, which encourages contractual parties (i.e. suppliers and procuring 
entities) to solve their disputes by non -judicial methods, including conciliation, mediation, and 
arbitration.  
 
Question:  
6. The Secretariat Report provides that administrative and judicial review procedures in Brazil can 
be used by suppliers to challenge the conformity of any procurement act by a procuring entity with 
the applicable legislation. On the applicable a dministrative review procedures, it includes 
oppositions, requests for clarification, and appeals. It also includes alternative dispute resolution to 
solve disputes by non -judicial methods. Could Brazil confirm if these procedures include suspension 
and de barment of erring suppliers in Brazil? If yes, what are the grounds, procedures (e.g. who is 
the decision -maker who has jurisdiction over these offenses), and the extent of the penalties 
imposed (e.g. debarment of a certain number of years, etc.). Is the s aid sanction mechanism 
centralized?  
 
Reply:  
According to Article 156 of Law 14,133/21, prohibition to the participation in procurement processes 
and contracts and declaration of disreputability for procurement processes or contracts are among 
the sanctions  that can be imposed on the person responsible for the administrative violations 
provided for in this Law.  
The sanction of prohibition to the participation in procurement processes and contracts shall be 
imposed on the person responsible for the administra tive sanctions provided for in items II, III, IV, 
V, VI, and VII of the chapeau of art. 155 of the Law, when the imposition of a more severe penalty 
is not justified, and it shall prohibit the person responsible from participating in procurement 
processes or contracts in the scope of the direct or indirect Public Administration of the federated 
state that imposed the sanction, for no more than three (3) years.  
The sanction of declaration of disreputability for procurement processes or contracts shall be 
imposed on the person responsible for the administrative sanctions provided for in items VIII, IX, X, 
XI, and XII of the chapeau of art. 155 of the Law, as well as for the administrative sanctions provided 
for in items II, III, IV, V, VI, and VII of the chape au of such article justifying the imposition of a 
penalty more severe than the sanction referred to above, and it shall prohibit the person responsible 
from participating in procurement processes or contracts in the scope of the direct or indirect Public 
Administration of all federated states, for at least three (3) years and no more than six (6) years. 
This sanction shall be preceded by legal analysis and shall observe the following rules:  
I – when it is imposed by an entity of the Executive Branch, it sha ll be in the exclusive jurisdiction 
of a minister of State, state secretary, or municipal secretary, and when it is imposed by an 
independent agency or foundation, it shall be in the exclusive jurisdiction of the highest authority of 
the entity;  
II – when it is imposed by entities of the Legislative and Judiciary Branches, by the Prosecution 
Service, and by the Public Defender 's Office carrying out administrative duties, it shall be in the 
exclusive jurisdiction of an authority with a hierarchical level equ ivalent to the authorities referred 
to in item I, pursuant to the applicable regulations.  
 
Para. 3.174 (Page 99)  
Brazil's institutional framework for the protection of intellectual property (IP) rights was modified 
during the review period. The Intellectua l Property Inter -Ministerial Group (GIPI), established in July 
2019 and chaired by the Ministry of Economy, became responsible for IP policy formulation. The 
National Industrial Property Institute (INPI) continues to administer the granting and registratio n of 
industrial property rights, whereas copyright administration is overseen by the Special Secretariat 
for Culture under the Ministry of Tourism.  
 
Question:  
7. With a new inter -agency group created for IP policy formulation, does this group also cover 
intergovernmental collaboration, specifically on the enforcement of IP rights given that IP 
enforcement functions are scattered across different government agencies (i.e. customs, police, 
etc.)?  
 WT/TPR/M/432/Add.1  
 
- 132 - 
 
Reply:  
GIPI is an intergovernmental group that aims at  coordinating and formulating IP policies among 
different government bodies, mainly Ministries dealing with IP issues. Brazil has another 
governmental group dealing with the enforcement of IP rights, which is the National Council for the 
Combat of Counterf eiting (CNCP), under the presidency of the Ministry of Justice and Public Security.  
  
Para. 3.177 (Page 99)  
The 2021 WIPO Global Innovation Index ranked Brazil 57th of 132 economies in terms of innovation 
capabilities, up from 69th (of 127 economies) in 20 17. The gap between Brazil's rankings in the 
innovation input and innovation output sub -indexes also narrowed significantly, from 60th and 80th 
place, respectively, in 2017 to 56th and 59th place in 2021.186  
  
Question:  
8. In the recently published 2022 WIPO Global Innovation Index (GII), Brazil improved its rank from 
57th to 54th advancing three places. Which specific part of Brazil's national IP strategy (ENPI) do 
you think contributed the most to this significant improvement in your rank ings? 
 
Reply:  
The GII is one of the metrics employed in the designing of the Brazilian National Intellectual Property 
Strategy (NIPS) and in the monitoring of its results. One of the recent initiatives that have 
contributed the most to the improvement of B razil's rank in the GII has been the Plan to Tackle the 
Backlog of patents in the National Institute of Industrial Property, aimed at reducing the time and 
streamlining the process for the examination of a patent. As a result, in the last three years more 
than 90% of the patents filled until 2016 have been subject to a decision.  
 
9. In last year's GII, Brazil was seen to have better innovation inputs than innovation outputs. While 
both metrics were seen to constantly improve since 2019, what are the plans o f Brazil to further 
improve the delivery of innovation outputs which are seen to be lagging behind the input metric?  
 
Reply:  
There seems to be a general pattern in the GII according to which developing countries show better 
results in innovation inputs rat her than in outputs, while in developed and most innovative countries 
it tends to be the opposite. It is noteworthy that most of IP indicators are innovation outputs, what 
means that developed countries in general perform better in IP indicators than devel oping ones. This 
diagnosis is one of the main drivers for the NIPS. In order for Brazil to improve its IP indicators and 
consequently to have better innovation outputs, it is necessary also to continue to disseminate 
knowledge about IP rights and its benef its among all stakeholders, as well as to reduce costs related 
to accessing to the system.  
  
Para. 3.188 (Page 101)  
Brazil's civil rights framework for the Internet contains provisions addressing certain aspects of 
online copyright infringement. Although a  comprehensive mechanism for the expeditious removal of 
copyright -infringing content has not yet been formalized in Brazilian legislation, Brazil's Superior 
Court of Justice (Superior Tribunal de Justiça) has ruled that failure to act within 24 hours of re ceipt 
of a private (extrajudicial) notification containing the precise address (URL) of the allegedly infringing 
content may result in civil liability of the Internet service provider.  
  
Question:  
10. Does Brazil have plans to further institutionalize this  jurisprudence as an amendment to its 
existing laws or regulations?  
  
Reply:  
There are no official plans to further institutionalize this jurisprudence, considering that a 
government transition process is underway.  
  
  
Para. 3.189 (Page 102)  
The civil and criminal penalty provisions in Brazil's legislation for violations of industrial property, 
copyright, and related rights remained unchanged during the review period. Pursuant to Brazil's 
customs legislation, the RFB has authority to seize IP -infringing  goods ex officio or at the request of 
the right holder.  
  WT/TPR/M/432/Add.1  
 
- 133 - 
 
  Question : 
11. Did Brazil notice a trend during the height of the COVID -19 pandemic with regard to spikes in 
the use of online platforms for commerce, proliferation of fake and pirated goods online, and/or 
increasing request for takedowns of IP violating posts from IP owners? If yes, did this trend nudge 
the Brazilian IP Offices and Inter -agency groups to amend certain provisions in their laws, rules, or 
regulations making it more responsive t o the needs of IP owners?  
  
Reply:  
The COVID -19 pandemic increased trade of fake and pirated goods online worldwide, Brazil included. 
In order to tackle this problems, the National Council for Combating Piracy and Intellectual Property 
Offenses (CNCP) has encouraged the establishment of partnerships among different government 
institutions with a view to combat such a trend and protect IP rights in Brazil. In particular, the 
Ministries of Economy and Justice have been working closer together with that aim.  
  
Para. 3.190 (Page 102)  
The National Council for Combating Piracy and Intellectual Property Offenses (CNCP), a body 
regrouping public and private sector representatives created in 2004, coordinates the elaboration 
and implementation of public policies aime d at combating IP offences. In 2021, the Ministry of Justice 
and Public Security approved a new National Plan to Combat Piracy for the period 2022 -25, 
elaborated by the CNCP. The plan sets out 62 crime -fighting targets with short -, medium -, and long -
term a ctions to achieve them.  
  
Question:  
12. What is the role of the private sector representatives of this Council? Does this group include 
members from law enforcement agencies of Brazil?  
  
Reply:  
  
CNCP includes both government and non -government entities, i ncluding civil society organizations 
and private sector associations. Law enforcement agencies, such as the Federal Police and the 
Federal Highway Police are also members of the CNCP.  
 
IV. TRADE POLICIES BY SECTOR  
 
Para 4.165. (Page 146)  
According to IMF, the BCB continued to promote financial sector efficiency and inclusion, notably 
through an instant electronic payment system (PIX), which is provided by 769 financial suppliers, 
and used by approximately 110 million individuals as of December 2021. PIX tra nsfers and payments 
increased from BRL 34 million in December 2020 to BRL 1.6 billion in March 2022. Also, from 2016, 
74 credit fintechs and 37 payment institutions have been authorized to operate in Brazil by the BCB. 
Since February 2021, the "Open bankin g" policy was regulated in four phases to allow the sharing 
of data and services among financial institutions, payment institutions, and other institutions 
licensed by the BCB, through the opening and integration of systems, aimed to increase competition 
in the financial sector. In 2020, the BCB introduced the Controlled Testing Environment for Financial 
and Payment Innovations (BCB Sandbox), aiming to establish a proper framework for assessing 
financial innovations within the National Financial System (SFN ) and the Brazilian Payments System 
(SPB). Growth in the credit database (Cadastro Positivo) also has led to a 10.3% reduction in 
borrowing costs on non -payroll loans. The BCB has also implemented a number of efforts to 
strengthen the financial education.  
  
Question : 
13. It was mentioned that PIX transfers and payments increased from BRL 34  million  
in December  2020 to BRL 1.6 billion in March 2022 or by 47 times in a span of one year and a 
quarter. In terms of transactions volume, how large was the increase in the transfer and payments 
in the PIX, and what factors drove said increase? What are the relevant targets set by the Central 
Bank of Brazil (BCB) for payments digitalization, and what strategies have been employed to achieve 
the same?  
  
Reply:  
First, it is important to take into account that PIX was launched in Nov 2020. In that sense, a one -
year growth rate represents the performance of a green field project in the payment system. Having 
said that, there are several factors that drove th is growth, since  WT/TPR/M/432/Add.1  
 
- 134 - 
 
(i) PIX is a product that must be compulsorily offered by all commercial banks and all large payment 
institutions; and  
(ii) it is free of charge for individuals. Banks can only charge companies that transfer funds by PIX. 
For the sake of c omparison, credit cards transactions grew 39.5% on quarter basis from BRL 245,6 
bi (Q4 '18) to BRL 342,6 bi (Q4 '20), and the on -line transaction share using credit cards augmented 
from 20.8% (Q4 '18) to 27.3% (Q4 '20). 
  
Another PIX key successful factor has been the disintermediation of a transaction and its cost 
reduction due to the use of the BCB settlement systems, which almost all financial institution is 
connected to. Moreover, PIX is set over an open -source technology, which enables several sorts of 
providers for payment services.  
  
Regarding the strategies for payment digitalization, BCB aims to mitigate barriers of entry and to 
keep the level playing field among incumbents and new companies, such as the "Open Finance" 
initiative. In this case, in order  to further promote competition in the financial system, BCB provides 
a regulatory perimeter that do not focus on the level of innovation of a business model, but rather 
on the risks related to it.  
  
Para 4.294 (Page 172)  
Cross -border e -commerce trade grew  by 15% in 2021 compared with 2020 in Brazil. Brazilian 
shoppers who make purchases on international websites typically purchase more. Important to note 
that many Brazilian websites do not accommodate international credit cards, which creates hurdles 
for foreigners while in Brazil. In 2020, cross -border e -commerce accounted for 21% of total sales, 
around BRL 22.7 billion. Partnerships between Correios (Brazil state -owned postal services 
company) and foreign e -commerce sellers enabled faster long -haul cargo into Brazil by the foreign 
company in charge of delivery up to Brazil's borders, while Correios completes the service for delivery 
in the country. Border clearance was undertaken in only 2.6% of all cross -border postal shipments, 
from which over 90% were a udited for customs tariff purposes. Consumer protection agencies 
(Procon) have been active pursuing and collecting fines on counterfeit products or contraband sold 
on cross -border platforms.  
  
  
Question:  
14. With Brazil's cross -border e -commerce trade growing significantly in 2021, does the BCB have 
plans on improving cross -border payments, including entering into bilateral or multilateral 
arrangements (e.g. Nexus) to link its local payment system (e.g. fast payment system) with other 
countries' p ayment systems?  
  
Reply:  
A new legal framework for the Brazilian foreign exchange market was approved last year, seeking 
modernization, simplification and consolidation of existing legislation. Law 14,286 of December 
2021, which will enter into force on 31 December  2022, consolidates more than 40 legal provisions, 
which will bring a greater level of legal certainty.  
  
The new law allows the development of innovative business models complying with foreign exchange 
rules that have the potential to increase co mpetition, simplify access and reduce costs of cross -
border payments in e -commerce.  
  
It also contributes to the BCB participation, in the future, in international initiatives aimed at 
improving cross -border payments, including e -commerce, such as multilat eral arrangements and 
local payment systems interlinkages.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
II. GENERAL ECONOMIC ENVIRONMENT  
 
Para 2.4 (Page 5)  
In 2021, the economy continued to be affected by COVID -19…On the other hand, inflation continued 
to increase mainly due to food, fuel prices and electricity prices. Inflation rose from 4.52% in 2020 
to 10.06% at the end of 2021. In that year, Brazil began the cycle of raising the basic interest rate 
to contain inflationary pressure s, moving from an annual rate of 2.0% in March to 9.75% in 
December, in seven consecutive rate hikes carried by the Central Bank.  WT/TPR/M/432/Add.1  
 
- 135 - 
 
  Questions:  
15. The report mentioned that inflation in Brazil rose from 4.52% in 2020 to 10.06% at the end of 
2021, above the C entral Bank target. At the same time, it discussed the measures adopted by the 
government to address the pandemic. What is Brazil's outlook for inflation given that global 
inflationary pressures are still prevalent? Would there be additional monetary measu res from the 
government to further support the economy? How do you manage the tradeoff between fighting 
inflation and supporting economic growth?  
  
Reply:  
  
In the last few years, the uncertainty regarding the inflationary scenario has become even greater 
due to several shocks of large magnitude that impacted in the global economy and made the process 
of conducting monetary policy even more challenging. Current projections are more uncertain than 
usual, which justifies a cautious approach on conducting mone tary policy, stressing also the need 
for a proper balance of risks and alternative scenarios.  
  
The inflation expectation values for 2023, 2024, and 2025 collected domestically by the Focus survey 
(as of  21 October 2022) are around 4.9%, 3.5% and 3.0%, respectively, while the inflation target 
is 3.25%, 3.0% and 3.0% for the respective years.  
  
In this sense, Brazilian authorities will remain vigilant in order to assess if the strategy of maintaining 
the Selic rate for a sufficiently long period wil l be enough to ensure the convergence of inflation 
rates towards the targets. The current strategy will persist until the disinflationary process 
consolidates and inflation expectations anchor around its targets. Future monetary policy steps can 
be adjuste d, and Brazilian monetary authorities will not hesitate to resume the tightening cycle if 
the disinflationary process does not progress as expected.  
  
Para 2.54 (Page 13)  
Brazil has a decentralized procurement system. Federal, State and Municipal authoriti es can make 
public purchases, in accordance with the Procurement Law (Law No.  14,133/2021), which provides 
for five types of bid proceedings that can be used by agencies and public entities: open tendering; 
electronic reverse auction; competitive dialogue;  contest; and public auction. According to this Law, 
public entities cannot establish differential treatment between Brazilian and foreign companies. For 
procurement of common goods and services, reverse auction ("Pregão") has been consolidated as 
the most  popular modality, performed mostly by electronic means, having enhanced the efficiency 
and transparency of Brazil's procurement system.  
  
Question:  
16. Based on the Government Report, there are five types of bid proceedings that can be used by 
agencies an d public entities: open tendering, electronic reverse auction, competitive dialogue, 
content, and public auction. Could Brazil please differentiate and specify the grounds or 
circumstances on when a procuring entity could use these five types of bid procee dings?  
  
Reply : 
 According to art. 6 of Law 14,133/21, the grounds and circumstances for the five types of 
proceedings are the following:  
 competitive procurement (open tendering): procurement method for special goods and 
services and ordinary and special engineering works and services whose evaluation criterion may 
be: (a) the lowest price; (b) the best technique or artistic content; (c) technique and price; (d) the 
highest economic return; (e) the highest discount;  
 contest: procurement method for choosin g a technical, scientific, or artistic work, whose 
evaluation criterion shall be the best technique or artistic content, and for granting an award or 
compensation to the winner;  
 auction: procurement method for disposal of real properties or personal prope rties that are 
unusable or were legally seized to whoever provides the highest bid;  
 reverse auction: mandatory procurement method for acquisition of ordinary goods and 
services whose evaluation criterion may be the lowest price or the highest discount;  
 competitive dialogue: procurement method for works, services, and purchases in which the 
Public Administration dialogues with suppliers that were previously selected using objective criteria, 
in order to develop one or more alternatives capable of meeting i ts needs, and the suppliers shall 
submit a final proposal after the end of the dialogues.  WT/TPR/M/432/Add.1  
 
- 136 - 
 
According to article 29, the competitive procurement (open tendering) and the reverse auction follow 
the ordinary sequence of procedures, and the reverse auction is adopted whenever the object has 
performance and quality standards that can be objectively defined by the tender documentation, 
through typical market specifications. The reverse auction does not apply in the case of contracts of 
specialized tech nical services of a predominantly intellectual nature and engineering works and 
services, except for ordinary engineering services.  
According to article 32, the competitive dialogue method is restricted to contracts in which the 
Administration: I – aims at  contracting an object involving the following conditions: a) technical or 
technological innovation; b) impossibility for the agency or entity to have its need met without 
adjusting the solutions available in the market; and c) impossibility for the techni cal specifications 
to be defined with sufficient accuracy by the Administration; II – perceives the need to define and 
identify the means and alternatives that may meet its needs, with an emphasis on the following 
aspects: a) the most proper technical solu tion; b) the technical requirements capable of 
implementing the already defined solution; c) the legal or financial structure of the contract.  
 
Para 2.55 (Page 13)  
An important feature of the Government procurement system in Brazil is access to information. 
During the period under review, the Government continued to advance towards the modernization 
of its procurement systems, having set a Public Procurement National Platform (PNCP), which 
centralizes disclosure of public notices, providing great er transparency in the procurement 
procedures ( https://www.gov.br/pncp/pt -br). 
  
Question:  
17. According to the Government Report, it was mentioned that the Government continued to 
advance toward the moderni zation of its procurement system, through the use of the Public 
Procurement National Platform (PNCP), for the disclosure of public notices, providing greater 
transparency in the procurement procedures. Could Brazil please specify the key features of its 
online procurement platform, including challenges and best practices in using an online procurement 
platform?  
  
Reply:  
The publication of the acts required by the new procurement law in the National Public Procurement 
Portal (PNCP) is mandatory for central and subcentral entities of the states and municipalities from 
April 2023. The PNCP shall include, among others, the following information on contracts: I – annual 
contract plans; II – electronic catalogs for standardization; III – public notices for regist ration and 
pre-qualification, direct award notices and tender documentation, and their respective attachments; 
IV – tender proposals; V – contracts and addenda; VI – electronic invoices, when applicable.  
 
Para 2.56 (Page 13)  
Bidders can also easily find su bstantial information online through the Panel on Procurement 
(http://paineldecompras.economia.gov.br ) and the Transparency Portal 
(http:// www.portaltransparencia.gov.br ). In addition, the legislation requires both federal and sub -
federal governments to give wide publicity to tendering processes.  
  
Question:  
18. It was mentioned in the Government Report that bidders can easily find substantia l information 
online through the Panel on Procurement and the Transparency Portal. Could Brazil expound on how 
its existing transparency measures, including but not limited to the use of beneficial ownership 
information (if applicable), prevent, and detect  corruption or conflict of interest in government 
procurement.  
  
Reply:  
The PNCP shall, among other functionalities, offer: I – a unified information registration system; II 
– a panel for consultation of prices, healthcare price database, and access to the  Brazilian database 
of electronic invoices; III – a contract planning and management system, including the record of 
certified performance of obligations set forth in § 4 of art. 88 of Law 14,133/21; IV – an electronic 
system to hold public sessions; V – access to the National Register of Ineligible and Suspended 
Companies (Ceis) and the National Register of Punished Companies (Cnep); VI – a system of 
management, shared with the society, of information related to the execution of the contract, which 
enables : a) previously identified interested parties to send, record, store, and disclose text messages 
or images; b) the access to the computerized system for monitoring works referred to in item III of 
the chapeau of art. 19 of Law 14,133/21; c)    the communica tion between the population and WT/TPR/M/432/Add.1  
 
- 137 - 
 
  representatives of the Administration and the contracted party designated to provide relevant 
information and clarification, pursuant to the applicable regulations; d)   the disclosure, pursuant 
to the applicable regulations, of a final report with information about the achievement of the goals 
that justified the contract and any conducts to be adopted to enhance the Administration 's activities.  
  
These PNCP features may help to prevent and detect conflict of inter est in government procurement. 
A public official of a supplying or contracting agency or entity may not participate directly or indirectly 
in the procurement process or in the performance of the contract; and the situations that may 
characterize a conflict  of interest in the exercise of the office or position shall be observed, under 
the laws and regulations regulating the matter.  
 
Para 2.59 (Page 13)  
There is no approval requirement to bring foreign capital into Brazil. Nevertheless, all foreign capital 
– including foreign direct and portfolio investments, foreign credit and financing – entering Brazil 
must be registered at the Central Bank. The registration is done in declaratory and electronic forms 
in the corresponding modules of the Electronic Declarato ry Registration (RDE), at the Central Bank 
Information System (Sisbacen). Repatriating investments and income related to foreign capital such 
as liquidated equity and bond investments, dividend payments and making payments on a foreign 
loan do not need Cen tral Bank's authorization. It is important to highlight that all the regulations in 
charge of the Central Bank related to international capital are being reviewed due to the enactment 
of Law 14,286/2021 (Exchange and International Capital Law - LCCI). The new law and the new 
regulation will come into force together, on 31 December 2022. In compliance with the provisions 
of the new Law, the future regulation will innovate by using the proportionality criterion to establish 
the requirements for providing info rmation to the Central Bank considering ranges of values and 
specific conditions. Therefore, there will be a significant reduction in the scope of foreign capital 
operations subject to the provision of information to the Central Bank.  
  
Questions:  
19. Is r egistration of foreign capital with the BCB mandatory regardless of where the foreign 
investors will source the foreign exchange (FX) needed to service the repatriation of capital and the 
remittance of earnings thereon? If so, is there a prescribed timelin e within which registration must 
be done with the BCB? What are the possible consequences of/sanctions for non -registration with 
the BCB of foreign capital?  
 
Reply:  
Currently, all foreign capital entering Brazil must be registered with the Central Bank of Brazil. 
Registration is a necessary condition for remittances associated with foreign capital. The deadline 
for registration is 30 days. The lack of registration is subject to the collection of fines. It is very to 
highlight that by 12 /31/2022  Law 14.286/2 021 comes into force, and it will no longer be mandatory 
to provide information on all foreign capital in Brazil. Proportionality criteria will be used to establish 
the requirements for providing information, considering, for this purpose, values, characte ristics and 
purposes of foreign capital in Brazil.  
  
20. What documents are required to be submitted for the registration of foreign capital? Does the 
BCB require submission of documentary requirements from foreign investors to support purchase of 
FX (rega rdless of amount) from the local banking system to service foreign capital -related 
transactions? What information are being gathered/obtained by the Central Bank of Brazil through 
its registration system?  
Reply:  
The registration is solely declaratory and by no means implies a previous authorization. It is done 
at the Eletronic Declaratory Registration System – RDE, at the BCB´s information system – Sisbacen. 
Therefore, it is not necessary to present any document to the BCB. The information collected is used 
in the preparation of the Balance of Payments.  
 
III. TRADE POLICY DEVELOPMENTS (2017 -21) 
 
Para 3.22 (Page 19)  
Brazil has recently adopted Law No. 14,353/2022, which allows for the suspension of concessions 
and other obligations for Member s that have appealed panel reports in which Brazil is a complainant 
to an inoperative Appellate Body (i.e. appealed "into the void"), thereby obstructing the conclusion 
of a dispute. The objective of that law is to remedy the present failings of the WTO's dispute WT/TPR/M/432/Add.1  
 
- 138 - 
 
settlement system by creating incentives for achieving a solution through negotiations between the 
disputing parties and/or the recourse to alternative means of settlement . 
 
Question:  
21. Based on the recently adopted Law No. 14,353/2022, what is the process of Brazil in determining 
the form and coverage of suspension of concession or other obligations under the covered 
agreements? Does the process entail a unilateral imposition of countermeasures or after receiving 
permission from the Dispute Settlement Body(DSB)?  
 
Reply:  
 
Law Nº 14.353/2022 allows the Brazilian government to suspend concessions and other obligations 
with respect to WTO Members that appealed "into the void" (i.e. to a non -functioning Appellate  Body) 
panel repor ts in disputes in which Brazil is the complainant and the violation of WTO rules was found, 
thereby blocking the procedures. Since Brazil has not so far used that Law, no further detailed 
procedures other than the rules already set out in the Law are prese ntly available.  
 
Para 3.23 (Page 19)  
In another effort to overcome the paralysis of the Appellate Body, Brazil joined in 2020 the 
Multi‑Party Interim Appeal Arbitration Arrangement (MPIA). The MPIA is based on Art. 25 of the 
Dispute Settlement Understandin g, and provides an alternative, provisional solution to ensure the 
rules-based system through the recourse to an independent and effective appeal system.  
 
Question:  
22. What are the benefits enjoyed by Brazil after joining the MPIA? How many dispute settle ment 
cases of Brazil have been resolved through the MPIA?  
 
Reply:  
By joining the MPIA, participants commit not to "appeal into the void" panel reports in disputes 
between each other, thereby ensuring that (i) those disputes will be decided in a manner cons istent 
with the DSU and (ii) WTO rules will then be properly enforced. Brazil has not resorted to any MPIA 
appeal arbitration to date.  
 
IV. TRADE INSTITUTIONAL AND REGULATORY FRAMEWORK  
 
Para 4.21 (Page 28)  
During the review period, Brazil also continued ma king improvements to its authorized economic 
operator (AEO) programme, gradually supplementing the benefits15 offered to participants by the 
RFB with advantages conceded by other administrative bodies intervening through SISCOMEX.16 In 
2021, the RFB -manage d AEO Program added the participation of SECEX and initiatives are under 
way for the inclusion of the Secretariat of Animal and Plant Health and Inspection (SDA), the National 
Agency for Civil Aviation (ANAC), the Brazilian Health Regulatory Agency (ANVISA ), the Brazilian 
Army, and the National Institute of Metrology, Quality and Technology (INMETRO).  
  
Question:  
23. How does Brazil implement the AEO programme? How did Brazil Receita Federal do Brasil (RFB) 
encourage the companies to be certified under the AEO?  
  
Reply:  
Brazilian Customs has implemented the program based on international best practices, which are 
today very well organized in the SAFE Package (AEO Implementation and Validation Guidance: 
http://www.wcoomd.org/ -/media/wco/public/global/pdf/topics/facilitation/instruments -and-
tools/tools/safe -package/aeo -implementation -guidance.pdf?la=en ). 
Tangible benefits are crucial to make AEO Program attractive. Inspection rate reduction and pri ority 
of inspection for AEO companies are essential benefits to ensure predictability in AEO operations. 
Brazil prioritizes the management of these benefits because it understands that they are essential 
as a mechanism to encourage companies to become AEO.  
 In addition, a communication strategy is very important to keep private sector aware of AEO 
Program requirements and benefits.  
 There is a website with information about the Program, as well as a direct channel of communication 
with AEO experts.  
  WT/TPR/M/432/Add.1  
 
- 139 - 
 
  Para 4 .23 (Page 28)  
In the context of the AEO Programme, SECEX implemented, in 2021, its Integrated AEO, which 
seeks to broaden the AEO Programme positive effects. Companies previously certified by the Special 
Secretariat of the Federal Revenue of Brazil (RFB) a s Authorized Economic Operators can apply to 
join the SECEX Integrated AEO. Benefits offered by the SECEX Integrated AEO allows low risk private 
companies to obtain reduction of documentation and information submitted to grant the suspension 
drawback speci al regime, as well as prioritized analysis of applications for this regime and its 
exemption version. Besides that, certified companies have an exclusive point of contact at SECEX to 
address operational difficulties related to the suspension and exemption drawback special regimes 
more rapidly.  
  
Question:  
24. What is the percentage of MSMEs that have been onboarded in the AEO programs? Does the 
MSME go through a different process of accreditation and enjoy different benefits compared to larger 
companies?  
  
Reply:  
Entry into SECEX Integrated AEO Program follows the regulation established in Ordinance SECEX 
No. 107, of 19 August  2021. The aforementioned Ordinance establishes that, in order to obtain the 
certification and benefits listed in the Foreign Trade Se cretariat program, the private company must 
act as importers or exporters and also hold AEO -Compliance Certification (OEA -C), under the terms, 
limits and conditions established by the Special Secretariat of the Federal Revenue of Brazil (RFB), 
in their mai n module of the AEO Program.  
  
2.2.2 Objetivos de la política comercial  
Basándose en la información expuesta en el Informe de la Secretaría en el párrafo 2.14 que señala 
que "La estrategia está destinada a abordar los retos relacionados con el género y la diversidad, la 
sostenibilidad medioambiental y el cambio climático, y la innovación y la transformación digital", y 
teniendo en cuenta el papel relevante que las políticas relacionadas con el comercio pueden tener 
para abordar la triple crisis ambiental  (cambio climático, contaminación y pérdida de biodiversidad), 
podría Brasil proporcionar la siguiente información:  
 
 Question:  
25.¿Ha adoptado Brasil en el período objeto de examen alguna política o medida ambiental particular 
relacionada con el comercio?  
  
Respuesta:  
En 2017, el Congreso Nacional ratificó el Convenio de Minamata, que fue promulgada por el decreto 
nº 9.470, del 14 de agosto de 2018. Como resultado, las disposiciones del Convenio, con 
implicaciones importantes para el comercio de mercurio, fueron integradas en la legislación 
brasileña.  
En 2021, se establecieron procedimientos y condiciones simplificados para controlar movimiento 
transfronterizo de desechos peligrosos, bajo el Convenio de Basileia.  
En 2022, el Congreso Nacional aprobó la Enmi enda de Prohibición del Convenio de Basilea, que 
prohíbe a que los estados miembros de la OCDE, UE y Liechtenstein exporten desechos peligrosos 
hacia otros países, principalmente a países en desarrollo o países con economías en transición. Brasil 
ha deposi tado el instrumento ante el Secretario General de la ONU.  
Question:  
26.¿Qué medidas relacionadas con el comercio ha adoptado Brasil para cumplir los compromisos de 
los Acuerdos Multilaterales sobre el Medio Ambiente (AMUMA)? ¿Ha identificado Brasil algún desafío 
relacionado con el comercio que surja de la implementación de AMUMA?  
  
Respuesta:  
Brasil es parte y sigue cumplindo las disposiciones de los Convenios de Basilea, Rotterdam y 
Estocolmo, que regulan, entre otras cosas, el comercio internaciona l de sustancias químicas 
peligrosas.  
  
27.¿Brasil ha adoptado o implementado una estrategia o política de economía circular? ¿Qué políticas 
o medidas relacionadas con el comercio se han adoptado para apoyar la economía circular?  
  WT/TPR/M/432/Add.1  
 
- 140 - 
 
Respuesta:  
En 2019, Brasi l estableció el Programa Nacional "Lixão Zero", que incluye entre sus objetivos 
promover la economía circular y la logística de embalaje inverso en general, y aumentar los objetivos 
de reciclaje.  
En 2022, Brasil reguló su Política Nacional de Desechos Sóli dos, sobre la gestión adecuada de los 
desechos, estableciendo, entre otras medidas, objetivos y metas relacionados con el reciclaje.  
En 2022, Brasil implantó el Programa de Logística Inversa, con objetivos de ampliar la infraestructura 
física y logística y  mejorar la gestión y las capacidades en el tema.  
En 2022, Brasil creó el Certificado de Crédito de Reciclaje ("Recicla+), con miras a promover la 
economía circular, mejorar los mecanismos de reciclaje en el país, promover la integración de redes 
de logíst ica inversa y reducir el desperdicio de materias primas.  
  
2.2.3 Leyes y reglamentos comerciales  
2.2.3.1 Marco reglamentario y reforma  
En el párrafo 2.19 la Secretaria informa que en Brasil "…se está trabajando en el Programa de 
Reglamentación para Mejorar  el Entorno de Inversión, en el marco del Plan Nacional de Inversiones 
del Comité Nacional de Inversiones (CONINV) (secciones 2.4.1 y 2.4.4)"  
  
1. Frente a los regímenes de comercio e inversión, Brasil se ha caracterizado por mantener 
estables los marcos institucionales que salvaguardan la política comercial y de inversión. En 
línea con lo anterior, la política comercial ha estado enfocada en el cumplimiento de los 
objetivos de modernización tecnológica, el aumento de la competitividad de los produc tos 
nacionales, la mejora del entorno empresarial, la integración en las cadenas de valor 
mundiales y en los mercados internacionales mediante la negociación de Acuerdos 
Comerciales Regionales (ACR), la reducción de los derechos de importación, el comercio  
electrónico y la reducción de la burocracia.  
  
Question:  
28.En este contexto, podría Brasil compartir los resultados de la implementación de iniciativas como 
el Programa de Reglamentación para Mejorar el Entorno de Inversión (PRME), el cual busca reducir 
los trámites burocráticos a efectos de facilitar el cumplimiento de la normativa, mejorar la eficacia 
de la administración tributaria y proporcionar seguridad jurídica en relación con los impuestos 
aplicados a las transacciones internacionales.  
 
Respuesta:  
La implementación del Programa de Reglamentación para Mejorar el Entorno de Inversión (PRME) 
está siendo monitoreada por el CONINV, uno de los órganos colegiados de la CAMEX. Este programa 
se elaboró mediante una amplia consulta con los organismos regulad ores y, posteriormente, una 
consulta pública a la sociedad civil. El resultado fue la elaboración de un programa que incluye, 
directa o indirectamente, importantes sectores de la economía. Se trata de un programa centrado 
en las normas infra legales (más o perativas) y contiene aproximadamente 200 normas que serán 
objeto de mejora regulatoria.  
El PRME incluye temas relevantes para hacer el entorno de negocios más amigable y atractivo para 
los inversionistas, incluyendo: 1) modernización del sector eléctrico (generación, transmisión y 
regulación), 2) nuevo mercado de gas, 3) modernización del sector aéreo (certificación de 
aerolíneas, transformación digital, etc.), 4) mejora de reglas y criterios de concesión y renovación 
el registro de medicamentos y los requ isitos para la evaluación de nuevos alimentos y nuevos 
ingredientes, 5) mejora del régimen de despacho aduanero de importación y exportación y del 
régimen de tránsito aduanero, 6) mejora en la tributación de las operaciones de compraventa de 
bienes y servi cios, 7) Modernización del modelo regulatorio de metrología, 8) revisión del mercado 
regular de transporte por carretera para que opere en un entorno de libre y abierta competencia con 
libertad tarifaria), 9) mejora del servicio de transporte ferroviario d e mercancías, tráfico ferroviario 
y operaciones auxiliares, 10) simplificación del Inventario Reglamentario de Navegación Interior, 
11) reglamento de autorización para la construcción y operación de una terminal de uso privado, de 
estación de transferencia  de carga, pequeña instalación portuaria pública e instalación portuaria de 
turismo.  
En ocasión de la 9ª Reunión del CONINV, se presentó el resultado del 3er. Monitoreo del PRME, 
finalizado en agosto de 2022, en el cual el estado informado por los respecti vos órganos es que el 
55% del esfuerzo ya fue concluido, cerca del 35% de las acciones están actualmente en ejecución y 
el 2% está por comenzar, siendo que el 8% no fue informado por el respectivo órgano en el período 
de seguimiento. El cuarto y último mon itoreo está previsto hasta finales de 2022.  
  WT/TPR/M/432/Add.1  
 
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  2.3 Acuerdos y arreglos comerciales  
2.3.1 OMC  
2.3.1.1 Características  
En el párrafo 2.29 se indica que "durante el período objeto de examen, el Brasil se esforzó por 
ampliar sus compromisos en el marco de la OMC. El país tiene la condición de observador en el 
Comité de Contratación Pública de la OMC desde octubre de 2017; presentó su solicitud de adhesión 
al Acuerdo sobre Contratación Pública (ACP) de la OMC el 18 de mayo de 2020, sus respuestas a la 
lista rec apitulativa de preguntas en octubre de 2020 en el marco del proceso de adhesión, su oferta 
inicial de acceso a los mercados en febrero de 2021, una oferta revisada de acceso a los mercados 
en noviembre de 2021 y una oferta final en junio de 2022. Con la ad hesión al ACP se pretende 
mejorar la competitividad y la atracción de IED en el mercado de contratación pública del país. El 
29 de marzo de 2016, el Brasil ratificó el Acuerdo sobre Facilitación del Comercio (AFC) de la OMC 
y lo incorporó a la legislación nacional mediante el Decreto Nº 9.326, de 3 de abril de 2018, una vez 
cumplidos los requisitos de los procedimientos internos. Además, en junio de 2022 presentó su 
solicitud de adhesión al Acuerdo sobre el Comercio de Aeronaves Civiles. En lo que respecta al trato 
especial y diferenciado, en marzo de 2019 el Brasil anunció que iba a empezar a renunciar a la 
utilización de ese trato en las negociaciones de la OMC".  
 
Question:  
29. Colombia felicita a Brasil por el inicio de su proceso en el marco de la OMC pa ra su adhesión al 
Acuerdo sobre Contratación Pública (ACP), y desea conocer detalles respecto al avance en esta 
negociación.  
  
Respuesta : 
El 14 de junio de 2022, Brasil presentó la oferta final en la adhesión al Acuerdo sobre Contratación 
Pública – ACP. El ACP es un importante tratado plurilateral que cuenta con 21 partes signatarias, 
correspondientes a 48 países miembros de la OMC. Para Brasil, la adhesión al acuerdo aumentará 
la competencia interna y la economía en las compras gubernamentales para la Admin istración, que 
ahora contractará más, a menores costos, y permitirá a las empresas brasileñas acceso garantizado 
y privilegiado a contratos realizados en el exterior por valor de US D 1,7 billones. El 18 de mayo de 
2020, Brasil solicitó la adhesión al GPA, del cual es observador desde 2017.  
Para Brasil, el GPA consolida un cierto nivel de apertura en los mercados de compras públicas. El 
ordenamiento jurídico ya garantiza la participación de proveedores extranjeros, salvo excepciones 
específicas. Cabe mencion ar las ventajas que genera adherirse al ACP para la implementación de 
buenas prácticas que contribuyan al gasto eficiente de los recursos públicos, tales como la limitación 
de las compras directas y la reducción de offsets. De acuerdo con la práctica de GP A, la oferta se 
divide en siete Anexos. La oferta final brasileña enumera los órganos y entidades de la 
Administración Pública Federal (Anexo 1), Subcentral (Anexo 2) y Estatal (Anexo 3) que estarán 
sujetos a los compromisos del ACP, así como los bienes (A nexo 4), servicios (Anexo 5) y tipos de 
obras de construcción cubiertas (Anexo 6).  
En el Anexo 7, Brasil propuso destacar políticas públicas importantes en el país que involucran la 
contratación como políticas que promuevan micro y pequeñas empresas, que e stablezcan 
condiciones para adquisiciones en el sector de defensa, que resguarden condiciones especiales para 
compras estratégicas relacionadas con la salud y estimulen el desarrollo de nuevos productos y 
servicios tecnológicos, como alianzas de desarrollo  productivo y compras tecnológicas. La oferta final 
de adhesión de Brasil al Acuerdo fue sometida a la consideración y aprobación de los países del ACP 
en los términos propuestos por el país.  
  
2.4 Régimen de inversión  
2.4.6 Tratados bilaterales y cooperación internacional  
En el párrafo 2.58 se informa que "El Brasil ha firmado 37 tratados/acuerdos para evitar la doble 
imposición, 4 de ellos (véase infra) durante el período examinado —es decir, desde 2017 —. En abril 
de 2022 estaban en vigor 36 de es tos acuerdos con los siguientes países: Austria, Argentina, Bélgica, 
Canadá, Chile, China, República Checa, República de Corea, Dinamarca, Ecuador, Emiratos Árabes 
Unidos, España, Federación de Rusia, Filipinas, Finlandia, Francia, Hungría, India, Israel, Italia, 
Japón, Luxemburgo, México, Noruega, Países Bajos, Perú, Portugal, República Eslovaca, Singapur, 
Sudáfrica, Suecia, Suiza, Trinidad y Tabago, Türkiye, Ucrania y la República Bolivariana de 
Venezuela. El Congreso ratificó los acuerdos para evitar la doble imposición firmados con los 
Emiratos Árabes Unidos y con Suiza en mayo y junio de 2021, respectivamente; estos acuerdos 
entraron en vigor el 1 de enero de 2022. En diciembre de 2021 se ratificó el acuerdo para evitar la 
doble imposición con Singapur,  firmado en 2018; no obstante, en abril de 2022 estaba pendiente de 
publicación el decreto presidencial que debe regular su aplicación. En abril de 2022 estaba pendiente WT/TPR/M/432/Add.1  
 
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de ratificación el acuerdo para evitar la doble imposición firmado con el Uruguay el 
7 de junio de 2019."  
  
30. Con relación al Acuerdo firmado con Colombia el pasado 5 de agosto. Es de interés conocer 
sobre el trámite interno que éste debe surtir en Brasil. Además, conocer en qué etapa se encuentra 
y cuánto tiempo puede demorar su ratifica ción. 
  
Respuesta:  
Para ser incorporados al marco legal brasileño, los tratados internacionales, como es el caso del 
Convenio entre Brasil y Colombia para la eliminación de la doble tributación con respecto a los 
impuestos sobre la renta y para la prevenci ón de la elusión y evasión fiscal y su Protocolo, deben 
ser tanto ratificados por nuestro Congreso Nacional, por medio de decreto legislativo, como 
sancionados por el Poder Ejecutivo, por medio de decreto ejecutivo. En este momento el texto se 
encuentra en  análisis por la Casa Civil de Brasil, última etapa antes de su envío al Congreso. No es 
posible precisar el tiempo que demorarán su ratificación y entrada en vigor, pero en promedio esto 
proceso toma alrededor de tres a cuatro años.  
  
3 POLÍTICAS Y PRÁCTI CAS COMERCIALES, POR MEDIDAS  
3.1. El Brasil aplica el Arancel Externo Común (AEC) del Mercado Común del Sur (MERCOSUR), con 
algunas excepciones para países específicos. El promedio aritmético de los tipos arancelarios 
aplicados en régimen de la nación más favorecida (NMF) disminuyó ligeramente del 11,6% en 2017 
al 10% en abril de 2022 y al 9,4% en julio de 2022. Se han aplicado reducciones arancelarias 
temporales, así como prohibiciones a la exportación de determinados suministros médicos, en 
respuesta a la  pandemia de COVID -19. Desde 2017, el Brasil ha seguido adoptando medidas de 
facilitación del comercio, simplificando los trámites de comercio exterior, mejorando su programa 
de operadores económicos autorizados (OEA) y aplicando gradualmente su Programa d e Ventanilla 
Única. También ha ampliado sus normas de origen no preferenciales y ha actualizado el 
procedimiento de verificación correspondiente.  
  
Question:  
31. En materia de políticas y prácticas comerciales, Brasil se ha caracterizado por adoptar medida s 
de facilitación del comercio que buscan simplificar los trámites de comercio exterior, mejorar el 
programa de Operadores Económicos Autorizados (OEA) y aplicar el Programa de Ventanilla Única 
(PVU). También se han ampliado las normas de origen no prefere nciales y actualizado el 
procedimiento de verificación correspondiente.  
Al respecto, Colombia quisiera conocer si Brasil ha adelantado acciones para revisar las 
prohibiciones, restricciones y licencias impuestas a las importaciones, así como los impuestos, 
cargas, gravámenes y requisitos aduaneros a las exportaciones?  
 
Respuesta:  
Como parte del trabajo del Comité Nacional de Facilitación del Comercio (CONFAC), se ha realizado 
un mapeo de la existencia de normas para la aplicación de la gestión de riesgos, así como el nivel 
de tecnología de automatización que utilizan las dependencias gubernamentales de acuerdo a su 
gestión de riesgos. Con base en esta información, CONFAC ha trabajado en alianza con los órganos 
consentidores para desarrollar solucio nes para la automatización de trámites de licenciamiento o 
liberación de operaciones de comercio exterior y la respectiva integración al SISCOMEX de acuerdo 
a criterios de riesgo. Con el objetivo de automatizar la concesión de licencias o las inspecciones 
fronterizas, los siguientes órganos de consentimiento han desarrollado sistemas de gestión de 
riesgos en diferentes niveles de madurez (Ejército, MAPA, ANVISA, SECEX, INMETRO e IBAMA).  
Los procedimientos para el cumplimiento de las obligaciones de notifica ción relacionadas con el 
Acuerdo sobre Procedimientos para el Trámite de Licencias de Importación y la Decisión sobre 
Restricciones Cuantitativas de la OMC, fueron revisados con el apoyo de la Secretaría Ejecutiva de 
CONFAC y la asistencia de los órganos d e consentimiento. Las notificaciones actualizadas deben 
presentarse a fines de 2022. Además, la información sobre los requisitos de licencia y las 
restricciones cuantitativas estará disponible en portugués en el sitio web de SISCOMEX.  
En cuanto a la revisi ón de las tasas y demás cargas que gravan las operaciones de comercio exterior, 
la Secretaría Ejecutiva de CONFAC realizó un mapeo de estas cargas por Órganos Consensuadores 
en Comercio Exterior, destacando el hecho imponible y la forma de recaudación. El resultado del 
trabajo estará disponible también en la página web de SISCOMEX.  
 WT/TPR/M/432/Add.1  
 
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  Question:  
32. Podría Brasil indicar si ha adelantado acciones para evaluar los resultados de los programas de 
promoción y apoyo a las exportaciones, especialmente de aquellos en focados a las pequeñas y 
medianas empresas?  
  
Respuesta:  
La reciente implementación de un sistema derivado del Plan Nacional de Cultura Exportadora (PNCE) 
- gestionado por el Ministerio de Economía - permitirá obtener datos estadísticos que ayudarán en la 
evaluación de resultados. En particular, se podrá evaluar la evolución de los registros empresas en 
cuanto a su madurez exportadora, por región y sector, además de informaciones sobre el tamaño y 
las principales dificultades de las dichas empresas. La prev isión es que este sistema esté operativo 
en el primer semestre de 2023.  
  
3.2 Medidas que afectan directamente a las exportaciones  
3.2.4 Apoyo y promoción de las exportaciones  
3.2.4.2 Zonas de elaboración para la exportación  
  
En el párrafo 3.81 se señala que "El Brasil actualizó su marco jurídico para las zonas de elaboración 
para la exportación (ZEE) en 2021; la mayoría de las modificaciones relacionadas con los impuestos 
federales entraron en vigor en enero de 2022. De conformidad con el marco jurídico a ctualizado, las 
empresas privadas pueden hacer propuestas de creación de una ZEE en igualdad de condiciones con 
respecto a los Estados federados y los municipios del Brasil. Las empresas de las ZEE ya no están 
obligadas a exportar al menos un 80% de sus in gresos brutos por la venta de bienes y servicios. 
Aunque los beneficios fiscales y administrativos (así como la cláusula de garantía legal de 20 años 
de duración) a que pueden acogerse las empresas de las ZEE autorizadas apenas han variado, sí se 
ha modifi cado el trato fiscal aplicado a sus ventas en el territorio aduanero del Brasil. Desde enero 
de 2022, las empresas de las ZEE autorizadas pueden pagar, en el momento de la adquisición, todos 
los impuestos indirectos sobre los insumos utilizados en la produ cción de bienes vendidos en el 
mercado brasileño, evitando así las sanciones e intereses asociados a la obligación tributaria 
derivada de la venta."  
Asimismo, en el párrafo 3.82 se indica que "el Consejo Nacional de Zonas de Elaboración para la 
Exportación  (CZPE) sigue ocupándose de la aplicación de la política relativa a las ZPE del Brasil, 
incluida la autorización para su creación y para la implantación de empresas en dichas zonas. Para 
poner en marcha una ZEE, también se requiere el permiso de la autorid ad aduanera del Brasil, así 
como la aprobación final del Presidente de la República. Las ZEE autorizadas que no han iniciado su 
actividad transcurridos 48 meses desde la fecha prevista en el calendario de instalación convenido 
pueden perder el derecho de i nstalación. En abril de 2022, el Brasil tenía 14 proyectos de ZEE 
aprobados; de estas ZEE, 2 estaban operativas y 12 estaban en proceso de instalación".  
Question:  
33. Colombia desea conocer en más detalle sobre el Régimen de elaboración para la exportación . 
Su objetivo y en qué se diferencia de las zonas francas. Sus beneficios y compromisos que asumen 
las empresas que deseen estar bajo este régimen.  
  
Respuesta:  
Law 11.508/2007 ( http://www.planalto.gov.br/ccivil_03/_ato2007 -2010/2007/lei/l11508.htm ) 
authorizes the Executive Branch to create, in less developed regions, Export Processing Zones with 
the purpose of developing the export culture, strengthening the balance of p ayments and promoting 
technological diffusion, the reduction of regional imbalances, and the economic and social 
development of the country.  
On its turn, free trade areas are those that are established with the aim of promoting the 
development of specific border areas in the Northern Region of the country and of increasing bilateral 
relations with neighboring countries, according to the Latin American integration policy  
Authorized EPZ companies may import or purchase in the local market goods and services w ith 
suspension of import duties and indirect federal taxes. The suspension applies to both new and used 
capital goods to be incorporated as fixed assets of the enterprises operating in the EPZs. The 
beneficiaries are exempt from import license requirements  or any other federal agency authorization 
for imports and exports, except for those related to sanitary controls, national security, and 
environmental protection.  
Companies under EPZ regime must be greenfield investment, since the transfer from companies 
installed in other places in Brazil is not allowed, and they can only have branches outside of the EPZ 
if of an administrative nature. They also commit to provide the information required by the Executive WT/TPR/M/432/Add.1  
 
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Secretariat of the National Council of Export Proce ssing Zones in the exercise of its regimental 
activities of monitoring and evaluating the regime.  
  
3.3.7 Derechos de propiedad intelectual  
3.3.7.1 Panorama general  
3.174. El marco institucional del Brasil para la protección de los derechos de propiedad intelectual 
se modificó durante el período objeto de examen. El Grupo Interministerial sobre la Propiedad 
Intelectual (GIPI), constituido en julio de 2019 y presidido por el Ministerio de Economía, pasó a 
ocuparse de la formulación de políticas d e propiedad intelectual. El Instituto Nacional de Propiedad 
Industrial (INPI) sigue administrando la concesión y el registro de los derechos de propiedad 
industrial, mientras que la administración de los derechos de autor está a cargo de la Secretaría 
Especial de Cultura, dependiente del Ministerio de Turismo.  
 
Question:  
34. En lo que a los Derechos de Propiedad Intelectual (DPI) respecta, durante el periodo objeto de 
análisis, el marco institucional brasilero fue modificado. En ese orden de ideas, el Grupo  
Interministerial sobre la Propiedad Intelectual (GIPI) pasó a ocuparse de la formulación de políticas 
de PI, el Instituto Nacional de Propiedad Industrial (INPI) administra la concesión y el registro de 
los derechos de propiedad industrial y la Secretaría  Especial de Cultura (SEC) en lo correspondiente 
a los derechos de autor.  
Podría Brasil compartir los resultados derivados de la implementación de esta modificación con 
particular énfasis en protección y duración de trámites y solicitudes?  
 
Respuesta:  
Como  parte de una de las acciones del 1er Plan de Acción de ENPI, en octubre de 2022 se lanzó la 
acción 3.A.1.2, que se refiere a la mejora del sistema de registro de obras intelectuales, una 
herramienta que permite el registro en línea de obras. Así, a través  de la plataforma gov.br, los 
autores podrán registrar sus creaciones intelectuales protegidas por Derechos de Autor, tales como 
textos literarios, sermones, conferencias, coreografías y pantomimas con ejecución escénica escrita, 
audiovisuales, fotografías , música (con o sin letra), dibujos, proyectos, esbozo, escenografías, 
proyectos de paisajismo y arquitectura.  
En el párrafo 3.175 del Informe de la Secretaria se menciona que "El GIPI se encarga de aplicar y 
supervisar la Estrategia Nacional de Propiedad Intelectual (ENPI) para el período 2021 -2030, 
elaborada en el marco de una Política Nacional de Innovación más amplia. Con el objetivo de 
convertir al Brasil en un referente mundial de primer orden en el ámbito de la innovación y la 
creatividad, la ENPI pr evé cinco planes de acción bianuales que comprenden 210 medidas 
organizadas en siete ejes estratégicos. Entre las principales orientaciones estratégicas figuran la 
actualización de la legislación nacional sobre derechos de propiedad intelectual en respuest a a la 
transformación digital del entorno empresarial, el fortalecimiento y la modernización del INPI y una 
mejor inserción del Brasil en el sistema mundial de propiedad intelectual".  
 
Question:  
35. Colombia agradece a Brasil indicar si es posible acceder a mayor información de la Estrategia 
Nacional de Propiedad Intelectual (ENPI) para el período 2021 -2030.  
  
Respuesta:  
El Grupo Interministerial de Propiedad Intelectual (GIPI) fue creado por decreto presidencial en 
2019, con el objetivo de coordinar las ac ciones del gobierno federal en materia de propiedad 
intelectual. Reúne a once ministerios, con derecho a voto, e incluye al Instituto Nacional de la 
Propiedad Industrial (INPI) como invitado en todas las reuniones. También prevé la participación de 
represe ntantes de la sociedad civil por períodos de dos años. En el corazón de la agenda de trabajo 
de GIPI está la Estrategia Nacional de Propiedad Intelectual, cuyo objetivo es establecer gobernanza 
e integrar iniciativas, proyectos y programas relacionados con  la propiedad intelectual, con el fin de 
potenciar la competitividad y el desarrollo económico y social de Brasil. La duración de la Estrategia 
es de diez años (2021 -2030). Son 210 acciones, organizadas en siete ejes estratégicos, a ser 
implementadas por P lanes de Acción bienales.  
Uno de los principales destaques del actual Plan de Acción es el "Proyecto de Combate a la Atraso" 
del INPI, que tiene como objetivo reducir el número de solicitudes de patentes pendientes de decisión 
e implementar medidas de gest ión para mantener el flujo de examen de patentes. A través de una 
serie de medidas objetivas, como la revisión de la normativa, aumento de la productividad de los 
examinadores, además de mejoras en los sistemas informáticos, en 2022 se concluyó el "Proyect o 
de Combate al Atraso", alcanzando la meta de reducir en un 80% la Número de solicitudes de WT/TPR/M/432/Add.1  
 
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  patentes pendientes. Fueron alrededor de 150 mil solicitudes resueltas o archivadas definitivamente. 
Entre las nuevas prácticas, el INPI adoptó el uso de los resul tados de las búsquedas del estado de 
la técnica realizadas en Oficinas de Patentes de otros países o en Organismos Internacionales, 
agilizando las solicitudes de patentes del exterior y también las solicitudes de nacionales que se 
solicitaron en el exterio r. 
Como resultado general, el indicador de tiempo de decisión del examen técnico para solicitudes 
prioritarias de examen de patentes obtuvo un resultado expresivo, al reducirse de 18 meses a los 
12 meses previstos al final del proyecto; y el tiempo medio d e tramitación de nuevas solicitudes de 
concesión de patentes se redujo a cinco años.  
Insertado en el nuevo diseño institucional, representado por el GIPI y la Estrategia Nacional, el INPI 
volvió a practicar un plazo razonable para la protección de las inno vaciones y alineó a Brasil con los 
países desarrollados, resultando un indicador positivo para la inversión en protección vía patentes 
en Brasil recupera su confiabilidad, generando un uso eficaz y eficiente del sistema de patentes 
brasileño.  
En el párrafo  3.175 del Informe de la Secretaria se menciona que "El GIPI se encarga de aplicar y 
supervisar la Estrategia Nacional de Propiedad Intelectual (ENPI) para el período 2021 -2030, 
elaborada en el marco de una Política Nacional de Innovación más amplia. Con e l objetivo de 
convertir al Brasil en un referente mundial de primer orden en el ámbito de la innovación y la 
creatividad, la ENPI prevé cinco planes de acción bianuales que comprenden 210 medidas 
organizadas en siete ejes estratégicos. Entre las principale s orientaciones estratégicas figuran la 
actualización de la legislación nacional sobre derechos de propiedad intelectual en respuesta a la 
transformación digital del entorno empresarial, el fortalecimiento y la modernización del INPI y una 
mejor inserción del Brasil en el sistema mundial de propiedad intelectual.  
  
3.3.7.2 Propiedad industrial  
En el párrafo 3.180 se señala que "en septiembre de 2021, se modificó nuevamente la Ley de 
Propiedad Industrial para aclarar las disposiciones relativas a las licenci as obligatorias. En 
consecuencia, se amplió la definición de las situaciones de emergencia que pueden justificar el 
recurso a licencias obligatorias, se extendió el mecanismo de licencias obligatorias para abarcar 
también las solicitudes de patentes, y se determinó que los derechos de licencia serán exigibles 
hasta que se establezca efectivamente el valor de la patente".  
 
Question:  
36. Frente a las modificaciones realizadas a la Ley de Propiedad Industrial, agradecemos si pueden 
brindar mayor información so bre las aclaraciones relativas a las licencias obligatorias, incluyendo 
mayor detalle sobre la extensión del mecanismo de licencias obligatorias para abarcar también las 
solicitudes de patentes, y respecto el procedimiento relativo a la exigibilidad de los  derechos de 
licencia.  
  
Respuesta:  
One of the main changes in the Law is the possibility of enacting a compulsory license not only for 
granted patents, but also for patent applications which are requested with a view to meeting cases 
of national or international emergency or public interest, as declared by the Federal Executive Branch 
or by recognition of a state of national public calamity by the National Congress. In this way, the 
Law allows the Federal Government to decree the Compulsory Licensing  of technologies of interest 
to face the situations foreseen in the Law that are still under analysis by the INPI. The proposal to 
cover patent applications are aimed at promoting agility in enabling access to useful technologies 
when dealing with national  or international emergencies or public interest cases. The eligibility 
context for enacting compulsory licensing is defined in the Law, as well as the consideration for the 
patent holder or patent application. Yet, such an instrument requires the criteria  to be detailed in its 
own instrument, through regulation of the Law.  
El informe de la Secretaría presenta información detallada sobre las características del marco 
institucional del Brasil para la protección de los derechos de propiedad intelectual. El Pá rrafo 3.177 
detalla que en el Índice Mundial de Innovación de la OMPI de 2021 el Brasil ocupó el puesto 57º de 
132 economías en cuanto a la capacidad de innovación, mientras que en 2017 se clasificó en la 
posición 69º (de 127 economías). También se redujo de manera significativa la diferencia entre las 
clasificaciones del Brasil en los subíndices de recursos y resultados de la innovación, pasando del 
60º y 80º lugar, respectivamente, en 2017 al 56º y 59º lugar en 2021. Por otra parte, el párrafo 
3.178 indic a que en mayo de 2021, el INPI publicó una evaluación exhaustiva de los efectos 
económicos de los sectores brasileños que hacían un uso intensivo de los derechos de propiedad 
intelectual. Finalmente, el cuadro 3.20 - Solicitudes y decisiones relativas a la  propiedad industrial, WT/TPR/M/432/Add.1  
 
- 146 - 
 
2017-2021, presenta información de interés sobre las solicitudes de patentes y las decisiones de 
concesión.  
Tomando como base la información presentada, podría Brasil proveer información detallada sobre:  
37. El número total y en lo p osible valor de los activos de propiedad intelectual (es decir: Número 
de patentes en vigor, de marcas, de IGs, de diseños industriales, de derechos de autor y de 
variedades vegetales y su valor en la medida de lo posible).  
  
Respuesta:  
En el caso de activ os de PI vigentes, tenemos:  
 - número de patentes en vigor = 95.980 (86.288 de titulares no residentes y 9.692 de titulares 
residentes)  
- número de marcas vigentes = 1.698.546 (1.315.725 de propietarios residentes y 382.821 de no 
residentes)  
- número de di seños industriales vigentes = 53.955 (34.020 de titulares residentes y 19.935 de 
titulares no residentes)  
 - número de indicaciones geográficas en vigor = 104 (95 titulares residentes y 9 titulares no 
residentes)  
- número de programas informáticos vigentes  = 34.954 (todos los titulares residentes)  
En Brasil, la protección de variedades vegetales está respaldada por la Ley de Protección de 
Cultivares (Ley nº 9456/97), cuya aplicación no corresponde al INPI.  
En el caso de los Derechos de Autor, sólo la protec ción de los programas de computación está a 
cargo del INPI. La protección de otras obras intelectuales, sujetas a la protección de los derechos de 
autor, está respaldada por la Ley N° 9.610/98.  
  
  
38. Indicar la nacionalidad de los detentores de dichos de rechos de propiedad intelectual (DPI), así 
como de los solicitantes de DPI, indicando si son nacionales o extranjeros. Indicar la evolución de 
las participaciones (share %) de nacionales y extranjeros en el tiempo.  
  
Respuesta:  
En el caso de activos de PI vigentes, tenemos:  
 - número de patentes en vigor = 95.980 (86.288 de titulares no residentes y 9.692 de titulares 
residentes)  
- número de marcas vigentes = 1.698.546 (1.315.725 de propietarios residentes y 382.821 de no 
residentes)  
- número de diseños ind ustriales vigentes = 53.955 (34.020 de titulares residentes y 19.935 de 
titulares no residentes)  
 - número de indicaciones geográficas en vigor = 104 (95 titulares residentes y 9 titulares no 
residentes)  
- número de programas informáticos vigentes = 34.954  (todos los titulares residentes)  
En Brasil, la protección de variedades vegetales está respaldada por la Ley de Protección de 
Cultivares (Ley nº 9456/97), cuya aplicación no corresponde al INPI.  
En el caso de los Derechos de Autor, sólo la protección de los programas de computación está a 
cargo del INPI. La protección de otras obras intelectuales, sujetas a la protección de los derechos de 
autor, está respaldada por la Ley N° 9.610/98.  
La evolución de la participación de postulantes nacional es y extranjeros se muestra en la planilla 
adjunta. Los datos sobre el valor de los activos de PI en Brasil no están disponibles.  
 
 
 WT/TPR/M/432/Add.1  
 
- 147 - 
 
   
 
COl SOLICITUDES DE PI - BRASIL – 2020 A 2022 (hasta octubre)  
  2020  2021  2022  
 PATENTES        
 Total      27.105     26.921     22.200  
 nacyonales       7.990      7.288      5.514  
 extranjeros      19.115     19.633     16.686  
 Share (%)  100 100 100 
 nacyonales  29 27 25 
 extranjeros  71 73 75 
 MARCAS        
 Total     293.612    386.930    339.596  
 nacyonales     260.869    346.751    303.286  
 extranjeros      32.743     40.179     36.310  
 Share (%)  100 100 100 
 nacyonales  89 90 89 
 extranjeros  11 10 11 
 DISEÑOS 
INDUSTRIALES        
 Total       6.269      6.711      5.993  
 nacyonales       4.263      4.520      4.441  
 extranjeros       2.006      2.191      1.552  
 Share (%)  100 100 100 
 nacyonales  68 67 74 
 extranjeros  32 33 26 
 PROGRAMAS DE 
ORDENADOR        
 Total  2999  3259  3005  
 nacyonales  2999 3259 3005 
 extranjeros  0 0 0 
 Share (%)  100 100 100 
 nacyonales  100 100 100 
 extranjeros  0 0 0 WT/TPR/M/432/Add.1  
 
- 148 - 
 
 
 
SOLICITUDES DE PI - BRASIL - 2017 A 2019 (hasta octubre)  
  2017  2018  2019  
 PATENTES        
 Total      28.674      27.636      28.317  
 nacyonales       8.411       7.587       8.312  
 extranjeros      20.263      20.049      20.005  
 Share (%)  100 100 100 
 nacyonales  29 27 29 
 extranjeros  71 73 71 
 MARCAS        
 Total     186.118     205.185     245.200  
 nacyonales     159.207     176.769     218.767  
 extranjeros      26.911      28.416      26.433  
 Share (%)  100 100 100 
 nacyonales  86 86 89 
 extranjeros  14 14 11 
 DISEÑOS 
INDUSTRIALES        
 Total       6.000       6.151       6.433  
 nacyonales       3.532       3.729       4.227  
 extranjeros       2.468       2.422       2.206  
 Share (%)  100 100 100 
 nacyonales  59 61 66 
 extranjeros  41 39 34 
 PROGRAMAS DE 
ORDENADOR        
 Total  1692  2511  3049  
 nacyonales  1692 2511 3049 
 extranjeros  0 0 0 
 Share (%)  100 100 100 
 nacyonales  100 100 100 
 extranjeros  0 0 0 WT/TPR/M/432/Add.1  
 
- 149 - 
 
  39. Estadísticas de la balanza de pagos (BoP) del Brasil sobre "Cargos por uso de propiedad 
intelectual", discriminando "pagos" (payments) y "recibos" (receipts), así como su evolución en el 
tiempo. Idealmente y en la medida de lo posible, señalar los porcentajes de pagos y recibos relativos 
a América Latina.  
 
Respuesta:  
Entre 2008 y 2016 los sectores intensiv os en DPI han presentado déficit comercial. De los 6 sectores 
intensivos en DPI (patentes, modelos de utilidad, marcas, diseños industriales, derechos de autor y 
variedades vegetales), el déficit registró un promedio de USD 16,2 mil millones en el periodo 2008-
2010; USD 40,4 mil millones, entre 2011 -2013; y USD 29,1 mil millones entre 2014 -2016. En todo 
ese período, solamente el sector de variedades vegetales tuvo superávit: USD  2,4 mil  millones 
(2008 -2010); USD 2,1 mil millones (2011 -2013); y USD 1,7 mil m illones (2014 -2016). En 
comparación con los sectores no intensivos en DPI los datos son distintos: superávit de 
USD 39,4 mil millones entre 2008 -2010; superávit de USD 57,3 mil millones entre 2011 -2013; y 
superávit de USD 50,1 mil millones entre 2014 -2016.  
  
40. Señalar la participación porcentual del comercio de DPI en el total del comercio del país, así 
como su evolución en el tiempo  
  
Respuesta:  
No hay todavía estadísticas desagregadas al respecto del comercio de DPI para el período 2017 -
2022.  
 
3.3.7.3 D erecho de autor  
En el párrafo 3.188 la Secretaria informa que "el marco de derechos civiles del Brasil para Internet 
contiene disposiciones que abordan determinados aspectos de la infracción del derecho de autor en 
línea. Aunque todavía no se ha formalizad o en la legislación brasileña un mecanismo integral para 
la rápida supresión del contenido que infrinja los derechos de autor, el Tribunal Superior de Justicia 
(Superior Tribunal de Justiça) del Brasil ha dictaminado que los proveedores de servicios de Int ernet 
pueden incurrir en responsabilidad civil si no actúan dentro de las 24 horas siguientes a la recepción 
de una notificación privada (extrajudicial) que contenga la dirección precisa (URL) del contenido 
presuntamente infractor".  
  
41. Colombia agradece  a Brasil brindar mayor información sobre las decisiones del Tribunal Superior 
de Justicia (Superior Tribunal de Justiça) del Brasil, referidas a la responsabilidad de los proveedores 
de servicios de Internet por la no actuación frente a la notificación pr ivada de presunto contenido 
infractor.  
  
Respuesta:  
En la sentencia del Recurso Especial número 1531653/RS (juzgado el 13/06/2017, DJe 01/08/2017), 
el Superior Tribunal de Justicia ("STJ") trazó la evolución jurisprudencial sobre los casos de 
responsabilidad civil de los proveedores de aplicaciones por contenidos generados por terceros.  
En síntesis, el dicho STJ ha adoptado la tesis de la responsabilidad subjetiva, según la cual el 
proveedor de la aplicación se hace responsable solidariamente c on quien generó el contenido ilícito 
si, al tomar conocimiento del daño que causa determinada información, no tomar las medidas 
necesarias para su remoción.  
Este conocimiento se hace por intermedio de una notificación extrajudicial, para hechos que 
ocurrie ron antes de la entrada en vigor de la Ley 12.965 del 23 de abril de 2014 (conocida como 
"Marco Civil da Internet").  
Sin embargo, después de la promulgación de la referida ley, la responsabilidad del proveedor de la 
aplicación pasó a exigir como requisito general el incumplimiento de una notificación judicial 
específica que haya determinado la retirada de contenidos ilícitos de un tercero.  
Pero la nueva regla general no se aplica a violaciones de derechos de autor por disposición expresa 
de la Ley 12.965, q ue excluye expresamente de su ámbito de incidencia la violación de los derechos 
de autor practicada por terceros, refiriéndose a la disciplina legal específica cualquier responsabilidad 
civil del proveedor de internet por "piratería" practicada por los usu arios del servicio.  
Así lo establece el § 2 del art. 19 y art. 31 del Marco Civil da Internet:  
"Art. 19 (...)  
§ 2 La aplicación de las disposiciones de este artículo a las infracciones de derechos de autor o 
derechos conexos depende de una disposición legal específica, que debe respetar la libertad de 
expresión y otras garantías previstas en el artículo 5 de la Constitución Federal."  
(…) WT/TPR/M/432/Add.1  
 
- 150 - 
 
"Art. 31. Hasta la entrada en vigor de la ley específica prevista en el § 2 del art. 19, la responsabilid ad 
del proveedor de la aplicación de Internet por daños resultantes del contenido generado por terceros, 
en el caso de infracción de derechos de autor o relacionados derechos, seguirán rigiéndose por la 
legislación sobre derechos de autor vigente en la fec ha de entrada en vigor de la presente Ley."  
Por lo tanto, en caso de infracción de derechos de autor, la antigua jurisprudencia del Superior 
Tribunal de Justicia no fue afectada por la superveniencia del "Marco Civil da Internet", por lo que 
sigue siendo v álido el entendimiento bajo el cual, cuando se le comunique que un determinado 
mensaje publicado en un proveedor de aplicaciones de Internet tiene un contenido potencialmente 
ilícito, el dicho proveedor deberá "retirarlo preventivamente en el plazo de 24 h oras, bajo pena de 
responder solidariamente con el autor directo del daño por la omisión practicada. Véase, en este 
sentido, Recurso Especial nº 1.406.448/RJ, julgado em 15/10/2013; y Recurso Especial nº 
1.512.647 – MG. 05/08/2015. Disponible en: https://tinyurl.com/22w4uxfb . 
 
4 POLÍTICAS COMERCIALES, POR SECTORES  
 
4.1 Agricultura, silvicultura y pesca  
  
42. Podría Brasil indicar si tiene una política nacional o instrumentos jurídicos para Prevenir, 
Desalentar y Eliminar la Pesca Ilegal, No Declarada y No Reglamentada, y dado el caso, compartir 
detalles sobre su estructura y funcionamiento?  
  
Respuesta:  
Brasil tiene un conjunto de acciones contra la pesca ilegal, no declarada y no reglamentada (pesca 
INDNR). Como  ejemplos, podemos citar:  
- Grupo Técnico de Trabajo para la Prevención de la Pesca Ilegal, No Declarada y No Reglamentada 
(GTT INN) instituido en la Comisión Interministerial de los Recursos del Mar (CIRM) - Ordenanza N° 
127-2022 - Marina de Brasil;  
- Registro nacional de pescadores profesionales - hay más de 1 millón de pescadores registrados en 
el RGP (Registro General de la Actividad Pesquera);  
- La adhesión de Brasil a la Declaración de Copenhague, para combatir los delitos transnacionales 
asociados a la industria pesquera, como parte de la iniciativa de cooperación internacional "Justicia 
Azul";  
- Adhesión a la Plataforma de Cooperación para la Promoción de la Pesca Sostenible y la Prevención, 
Combate y Eliminación de la Pesca Ilegal, No Declarada y No  Reglamentada (INN) de la Comunidad 
de Países de Lengua Portuguesa (CPLP);  
- Apertura de datos de seguimiento de embarcaciones pesqueras a través de la cooperación con la 
plataforma Global Fishing Watch;  
- En proceso de ratificación a AMEP/FAO - Acuerdo de  Medidas del Estado Rector del Puerto de la 
FAO; 
- Estudios de evaluación de poblaciones de alrededor de 50 recursos pesqueros;  
- Implementación, para algunos recursos, de medidas de ordenamiento de la pesca basadas en 
cuotas de captura;  
- Creación de la Red Pesca Brasil con la recreación y fortalecimiento de los Comités Permanentes de 
Ordenación Pesquera (CPG's) - Decreto nº 10.736/2021 y Ordenanza SAP/MAPA nº 554/2022;  
- Elaboración e implementación de planes de manejo para los principales recursos pesqu eros. 
  
43. Podría Brasil indicar si otorga subvenciones o apoyos gubernamentales al sector de la pesca, y 
en particular a la pesca y actividades relacionadas con la pesca en aguas fuera de la jurisdicción 
nacional?  
  
Respuesta:  
Programa de Subsidio Económ ico al Precio del Petróleo Diesel (Ley N° 9.445, de 14 de marzo de 
1997);  
  
- Plan Safra: líneas de crédito/financiación con interés bonificado;  
 
44. Podría Brasil indicar en qué Organizaciones y/o Arreglos Regionales de Ordenación Pesquera 
participa?  
  
Respuesta:  
ICCAT: Comisión Internacional para la Conservación del Atún Atlántico;  WT/TPR/M/432/Add.1  
 
- 151 - 
 
  - COPACO/COPACO: Comisión de Pesca para el Atlántico Centro -Occidental / Comisión de Pesca para 
el Atlántico Centro -Occidental  
- CCRVMA: Convención para la Conse rvación de los Recursos Vivos Marinos Antárticos  
  
4.4.7.2 Comercio electrónico  
El párrafo 4.294 indica que "Los organismos de protección del consumidor (Procon) han actuado 
diligentemente para identificar los productos falsificados o de contrabando vendid os a través de 
plataformas transfronterizas e imponer las correspondientes multas."  
  
45. Podría Brasil indicar si cuenta con mecanismos para combatir el comercio ilícito en otros sectores 
de la economía? Existe algún marco normativo o se adelantan accione s concretas para luchar contra 
el contrabando de manera más general en la economía? Tiene Brasil algún mecanismo para evitar 
la triangulación en las importaciones de bienes?  
Respuesta:  
En Brasil, el gobierno federal reorganizó un órgano dependiente del Min isterio de Justicia y Seguridad 
Pública, denominado Consejo Nacional de Combate a la Piratería y los Delitos contra la Propiedad 
Intelectual, formado por entidades públicas y privadas (Decreto No. /2019), cuyo objetivo es integrar 
las acciones gubernamenta les en la prevención y lucha contra la piratería.  
De esta forma, este Consejo trazó estratégicamente un plan nacional para combatir la piratería, el 
contrabando, la evasión fiscal derivada de los mismos y los delitos contra la propiedad intelectual. 
Entre las medidas enumeradas por el Consejo, destacamos: (I) - desarrollar estudios y proponer 
medidas y acciones destinadas a combatir la piratería, el contrabando, la evasión fiscal resultante y 
los delitos contra la propiedad intelectual en el país; (II) - realizar levantamientos estadísticos, crear 
y mantener, con base en la información recibida a nivel nacional, una base de datos integrada al 
Sistema Único de Seguridad Pública, con el fin de establecer mecanismos efectivos para prevenir y 
reprimir la pirater ía, el contrabando, la evasión fiscal derivada de los mismos y los delitos contra la 
propiedad intelectual; (III) - apoyar las medidas necesarias para combatir la piratería, el 
contrabando, la evasión fiscal derivada de los mismos y los delitos contra la p ropiedad intelectual 
con los Estados y el Distrito Federal; (IV) - fomentar y asistir en la planificación de operaciones 
especiales y de investigación para prevenir y reprimir la piratería, el contrabando, la evasión fiscal 
derivada de los mismos y los deli tos contra la propiedad intelectual; (V) - proponer mecanismos para 
combatir el ingreso de productos que violen los derechos de propiedad intelectual y controlar el 
ingreso al país de productos cuya importación, aunque regular, pueda convertirse en insumos para 
la práctica de la piratería; (VI) - sugerir inspecciones específicas en puertos, aeropuertos, puestos 
fronterizos y en la red vial brasileña; (VII) - fomentar, asistir y promover la capacitación de los 
agentes públicos involucrados en las operaciones y tratamientos de información relacionados con la 
piratería, el contrabando, la evasión fiscal derivada de los mismos y los delitos contra la propiedad 
intelectual; (VIII) - fomentar o coordinar campañas educativas sobre el combate a la piratería, el 
contrabando, la evasión fiscal derivada de los mismos y los delitos contra la propiedad intelectual; 
(IX) - vigilar, por medio de informes enviados por los Órganos competentes, la ejecución de 
actividades para prevenir y reprimir las violaciones de las obras pr otegidas por derecho de autor; y 
(X)-establecer mecanismos de diálogo y colaboración con los Poderes Legislativo y Judicial, con el 
fin de promover acciones efectivas para combatir la piratería, el contrabando, la evasión fiscal 
resultante de los mismos y los delitos contra la propiedad intelectual.  
Algunas de las principales medidas para combatir la piratería son:  
I) Campañas para educar al consumidor. Una de las principales razones por las que los consumidores 
optan por un producto pirateado es su precio más asequible. Así, puede disfrutar del estatus social 
que genera una marca famosa, aunque el producto no sea auténtico. Por ello, una de las medidas 
más importantes para combatir la piratería son las campañas de sensibilización. Al mostrar de 
manera más a mplia la situación y los problemas macroeconómicos de esta práctica, es posible 
educar al consumidor para que abandone este hábito.  
II) Acciones gubernamentales para combatir la piratería. El CNCP – Consejo Nacional de Lucha contra 
la Piratería – es un ins tituto importante para tratar el tema. Es responsable de aplicar métodos y 
elaborar lineamientos para combatir la piratería, la evasión fiscal y los actos contra la propiedad 
intelectual. Por lo tanto, ayuda a proponer acciones represivas, educativas y eco nómicas, 
involucrando a toda la sociedad en el tema.  
III) Combinación de medidas administrativas y judiciales. Otra práctica importante es combinar una 
serie de medidas para fortalecer la lucha contra la piratería. Por un lado, existen medidas 
administrati vas -a través del refuerzo de las inspecciones aduaneras - y, por otro lado, medidas 
judiciales -relacionadas con el ámbito penal y civil. En el ámbito civil, es posible perseguir a los 
infractores, mediante acciones de abstención e indemnización. En las ac ciones de abstención, es 
posible solicitar una medida cautelar para que los productos pirateados sean retirados del mercado, WT/TPR/M/432/Add.1  
 
- 152 - 
 
incluyendo el uso de la fuerza policial, en caso de ser necesario. Y por la vía penal, las acciones de 
represión de la conducta de piratería contribuyen a la reducción de esta práctica.  
 
INFORME DE GOBIERNO - DOCUMENTO WT/TPR/G/432  
 
2 ENTORNO ECONÓMICO GENERAL  
2.2 Marco jurídico y reglamentario general  
2.2.5 Empresas de propiedad estatal y privatización  
2.46. En 2021, el Gobierno central era propietario de 154 empresas, 47 de ellas de propiedad directa, 
lo que representaba el 7,6% del PIB. Durante el período objeto de examen, se liquidaron dos 
empresas de propiedad directa (Codomar y Casemg), y otra (Ceitec) se halla en pr oceso de 
liquidación a partir de 2022. Además, desde 2017, las desinversiones se centraron principalmente 
en el sector de la energía y afectaron a 97 empresas estatales (de propiedad estatal directa e 
indirecta).  
2.50. Los proyectos de infraestructura cons iderados prioritarios están calificados como tales en el 
programa por el Presidente de la República, previa recomendación del Consejo de Ministros. Una vez 
diseñados y estructurados, se ofrecen a los inversores privados mediante procedimientos 
competitivos . En el curso de sus actividades, el Consejo del PPI puede recomendar la inclusión de 
una empresa de propiedad estatal en el programa y proponer su privatización o liquidación 
(extinción). Esta última función del Consejo se debe a su participación en el Pr ograma Nacional de 
Privatización (PND). Además, los niveles estatal y municipal pueden beneficiarse igualmente del PPI, 
ya que sus empresas de propiedad estatal también están abarcadas por el programa de 
privatización.  
  
46. ¿Cuál(es) parámetro(s) se tiene(n) en cuenta para incluir una empresa estatal en el programa 
para su liquidación o privatización, considerando los potenciales efectos mixtos sobre los 
consumidores?  
  
Respuesta:  
La evaluación sobre la inclusión de una empresa estatal  en el Programa Nacional de Desestatización 
(PND), con miras a su privatización o liquidación, considera si siguen existiendo las razones que 
justificaron la creación de la empresa, las cuales deben ser la seguridad nacional o el interés colectivo 
relevant e, según el art. 173 de la Constitución Federal, realizándose periódicamente en los términos 
del Decreto N° 10.263, de 5 de marzo de 2020, junto con el examen de la sostenibilidad económica 
y financiera de la empresa y los beneficios esperados en términos de mejora de la eficiencia de la 
gestión. Durante los estudios para liquidación o privatización se verifican también otros aspectos 
que influirán en la asignación de activos y la continuidad de la prestación de servicios en caso de 
liquidación, o en la mod elización de la privatización, en caso de venta al sector privado. Entre estos 
aspectos se pueden considerar los diversos impactos sobre los consumidores o sobre el mercado en 
el cual la empresa estatal está operando.  
  
2.2.6 Contratación pública  
2.55. Una  característica importante del sistema de contratación pública del Brasil es el acceso a la 
información. Durante el período objeto de examen, el Gobierno siguió avanzando hacia la 
modernización de sus sistemas de contratación mediante el establecimiento de l Portal Nacional de 
Contratación Pública (PNCP), que centraliza la divulgación de los avisos públicos y da mayor 
transparencia a los procedimientos de contratación ( https://www.gov.br/pncp/pt -br). 
  
47. Coment ario de la SIC: En el proceso de contratación, con el fin de hacer el proceso más eficiente, 
se podría crear una base de datos unificada de los procesos, la cual sea alimentada por las entidades 
públicas (reportando información de contratación) como el Por tal Nacional de Contratación Pública 
(que centraliza la divulgación de los avisos públicos). Asimismo, con el acceso a dicha información, 
la unidad de inteligencia puede ser más eficiente en su labor, así como aplicar herramientas de 
inteligencia artificia l para realizar el análisis de posibles carteles (colusión en la contratación).  
 
Respuesta:  
No hubo pregunta específica sobre el tema.  
  
2.2.9 Producción a largo plazo y financiación de las exportaciones  
2.69. "El BNDES ofrece dos líneas de crédito a la ex portación: a) el crédito previo a la expedición, 
que proporciona capital de explotación a los exportadores brasileños, y b) el crédito posterior a la 
expedición, destinado a la comercialización de bienes y servicios exportados por medio de créditos WT/TPR/M/432/Add.1  
 
- 153 - 
 
  de comp radores o proveedores de conformidad con las normas internacionales. Los desembolsos del 
BNDES en concepto de créditos a la exportación se redujeron de USD 815,4 millones en 2017 a USD 
477,9 millones a fines de 2021, debido principalmente a la menor demand a de los exportadores. 
Casi la totalidad de los desembolsos efectuados para financiar exportaciones en 2021 correspondió 
a bienes de capital. Entre ellos se incluyen autobuses, camiones, vehículos comerciales ligeros, 
maquinaria y equipos industriales, y a eronaves."  
  
48. Colombia agradece mayor explicación sobre las tasas de interés y beneficios de los créditos a la 
exportación ¿Estas líneas ofrecen ventajas al exportador en términos de costos? ¿Podría 
considerarse un subsidio a la exportación en el evento en el que las tasas de interés sean más bajas 
que un crédito regular?  
  
Respuesta:  
BNDES Export Credit lines seek to offer Brazilian exporters of goods and services access to financing 
on comparable conditions with their international competitors, e nsuring a level playing field. To 
achieve this purpose, interest rates are set following usual practice among Export Credit Agencies 
(ECAs) and the market in general.  
  
  
3 EVOLUCIÓN DE LA POLÍTICA COMERCIAL (2017 -2021)  
3.4.2 Solución de diferencias  
  
3.22. El Brasil ha adoptado recientemente la Ley Nº 14.353/2022, que prevé la suspensión de 
concesiones y otras obligaciones respecto de los Miembros que han apelado los informes de los 
grupos especiales en asuntos en los que el Brasil es reclamante ante un Ór gano de Apelación 
inoperante (es decir, informes objeto de apelación "en el vacío"), obstaculizando así la conclusión 
de la diferencia. El objetivo de esa Ley es corregir las deficiencias actuales del sistema de solución 
de diferencias de la OMC mediante l a creación de incentivos para lograr una solución a través de 
negociaciones entre las partes en la diferencia y/o del recurso a medios alternativos de solución de 
diferencias.  
  
49. Colombia solicita ampliar la información de los objetivos y el alcance pre vistos en la Ley Nº 
14.353/2022.  
  
Respuesta : 
La Ley Nº 14.353/2022 ha sido aprobada con el objetivo de garantizar el cumplimiento de los 
Acuerdos de la OMC y la protección de los intereses legítimos brasileños caso otros Miembros de la 
organización apelen "en el vacío" (i.e.  ante un Órgano de Apelación que cesó de funcionar) un 
informe de grupo especial que haya verificado la existencia de violaciones de reglas de la OMC.  
Dicha Ley tiene por finalidad no sólo eliminar estímulos a apelaci ones "en el vacío" en diferencias en 
las cuales Brasil es reclamante, pero también incentivar la búsqueda de una solución negociada para 
ellas. La decisión de aplicarla necesita ser tomada en el más alto nivel gubernamental en materia 
comercial (CAMEX), y su implementación debe aguardar un plazo mínimo de 60 días después de la 
notificación al gobierno de la otra parte en una diferencia.  
  
3.5.2 MERCOSUR y acuerdos extrarregionales  
3.52. En 2017, entró en vigor el Tratado de Libre Comercio entre el MERCOSUR y Egipto. En virtud 
del Tratado, el MERCOSUR ha concedido la eliminación completa de los aranceles con respecto a 
10.166 líneas arancelarias de 8 dígitos (el 99% de todas las líneas arancelarias). El período para el 
desmantelamiento de los arancel es concluirá en septiembre de 2026. El Tratado contiene además 
una cláusula evolutiva sobre la posibilidad de futuros entendimientos para el comienzo de 
negociaciones sobre el acceso a los mercados en el comercio de servicios y las inversiones.  
  
50. Colom bia agradece mayor explicación sobre la cláusula evolutiva negociada en el Tratado de 
Libre Comercio entre el MERCOSUR y Egipto ¿esta cláusula abre la posibilidad de la liberalización 
progresiva del comercio agropecuario y agroindustrial? En caso afirmativ o, ¿durante qué periodo de 
tiempo?  
  
Respuesta:  
La Cláusula Evolutiva del Acuerdo entre MERCOSUR y Egipto permite desarrollar y profundizar las 
relaciones establecidas por el Acuerdo y extenderlas a áreas no cubiertas en el Acuerdo. En ese 
caso, una parte debe hacer una propuesta al Comité Conjunto, que la examina y hace WT/TPR/M/432/Add.1  
 
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recomendaciones por consenso, eventualmente con vistas a la apertura de negociaciones. El 
comercio agropecuario y agroindustrial ya está cubierto por el acuerdo, pero eses temas podrían ser  
objeto de enmiendas con vistas a ampliar su liberalización. No hay periodo de tiempo que limite su 
vigencia.  
  
4 MARCO INSTITUCIONAL Y REGLAMENTARIO DEL COMERCIO  
4.1 Cuestiones transversales  
4.1.3 Facilitación del comercio  
Párrafo 4.19. "El nuevo proceso de exportación funciona plenamente desde 2018, y ha permitido 
una simplificación que aumenta la eficiencia y disminuye los costos para los operadores. Comprende 
la reducción del número de documentos necesarios para concluir las operaciones de comercio 
exterior mediante la declaración única de exportación (DUE); la integración de la DUE en el sistema 
nacional de facturas electrónicas; el nuevo sistema de control de la carga y de tránsito aduanero; la 
concesión de licencias globales para más de una exportació n; la aplicación de controles 
administrativos a posteriori; y la adopción de procedimientos paralelos en lugar de secuenciales. 
Como consecuencia, el plazo medio de exportación se redujo de 13 a 5 días, lo que supone un ahorro 
anual de USD 14.000 millones para el sector privado."  
  
51. Colombia agradece a Brasil dar a conocer los cambios que ha tenido el comportamiento del 
comercio exterior en el marco del nuevo proceso de exportación implementado desde el 2018 hasta 
la fecha.  
  
Respuesta:  
Desde la implemen tación del nuevo proceso de exportación, el tiempo promedio de exportación de 
Brasil se redujo de 13 a 5 días, lo que representa un ahorro de 10 mil millones de dólares al año 
para el sector privado. La balanza exportadora brasileña también sigue creciendo  por arriba del 
promedio histórico, incluso durante los años de crisis económica mundial.  
  
Párrafo 4.27. "En 2020, el Brasil y los Estados Unidos firmaron un Protocolo sobre Normas 
Comerciales y Transparencia. Se negoció en el marco de la Comisión de Rela ciones Económicas y 
Comerciales entre el Brasil y los Estados Unidos (ATEC) e incluye un anexo sobre facilitación del 
comercio y administración de aduanas. El Protocolo, que entró en vigor en junio de 2022, contiene 
disposiciones pertinentes sobre las reso luciones anticipadas, las sanciones, la utilización de 
tecnología en los controles de importación, exportación y tránsito, y el reconocimiento mutuo de los 
operadores económicos autorizados."  
  
52. Colombia agradece a Brasil ampliar información del mencion ado Protocolo sobre Normas 
Comerciales y Transparencia.  
  
Respuesta:  
The Brazil - US Protocol relating to Trade Rules and Transparency entered into force on 9  June 2022, 
following the completion of internal procedures by both countries. The Protocol, signed on 
19 October  2020, modernizes the 2011 Agreement on Trade and Economic Cooperation (ATEC) by 
adding new annexes on Trade Facilitation, Good Regulatory Practices, and Anti -Corruption. It is a 
modern and ambitious agreement that fosters bil ateral trade and investment flows.  
The Protocol aims at: i) eliminating red tape in foreign trade by reducing deadlines and costs of 
operations carried out by private agents; ii) developing and incorporating good regulatory practices 
in bilateral trade; an d iii) reaffirming bilaterally the core of legislative obligations to which Brazil and 
the US are bounded in the multilateral level regarding anti -corruption efforts.  
The full text of the Brazil - US Protocol on Trade Rules and Transparency can be found at the following 
link: https://ustr.gov/sites/default/files/fil es/agreements/tifa/ATEC%20US -Brazil%20Protocol.pdf . 
 
4.1.5 Política de competencia  
4.31. Tras la entrada en vigor de la Ley de Competencia del Brasil (Ley Nº 12.529/2011) en 2012, 
el Sistema Brasileño de Defensa de la Competencia (SBDC) experimentó profund os cambios. En 
consonancia con las mejores prácticas internacionales, la creación de un único organismo autónomo 
encargado de la competencia y la introducción de una política de control de las fusiones ex ante  se 
tradujeron en importantes mejoras de la efi ciencia y modernizaron la aplicación de la legislación 
antimonopolio en el Brasil. Esos cambios también permitieron que el organismo antimonopolio del 
Brasil, el Consejo Administrativo de Defensa Económica (CADE), se concentrara en los precedentes 
pertinen tes, la previsibilidad y la seguridad jurídica, y le proporcionaron las herramientas y el marco WT/TPR/M/432/Add.1  
 
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  necesarios para analizar cuidadosamente los casos de competencia y sentar en el Brasil un 
precedente jurídico coherente, congruente y bien fundado.  
  
53. Brasil  avanzó en un proceso de modernización del sistema de competencia al crear un ente único 
y autónomo encargado de implementar una política de control de las funciones ex-ante. Sin 
embargo, a efectos de evaluar la eficiencia de estas políticas en términos de  comportamientos 
disuasorios de los agentes de mercado, ¿qué mecanismos o de qué manera medirán el impacto, la 
efectividad y la eficiencia de esta política en el mercado?.  
  
Respuesta:  
El Departamento de Estudios Económicos del CADE ha publicado continuame nte encuestas, estudios 
y análisis empíricas acerca de cómo el desarrollo y la implementación de la legislación de 
competencia ha afectado el mercado y el desempeño económico. Estas encuestas, estudios y análisis 
empíricas están públicamente disponibles en : https://www.gov.br/CADE/pt -br/centrais -de-
conteudo/publicacoes -institucionais/estudos -economicos/CADErnos -do-CADE  y en:  
https://www.gov.br/CADE/pt -br/centrais -de-conteudo/publicacoes -institucionais/estudos -
economicos/documentos -de-trabal ho. El Departamento de Estudios Económicos del CADE estimó en 
cerca de BRL 4,76 mil millones los beneficios económicos para toda la sociedad en 2021 en función 
de sus decisiones sobre carteles, conductas unilaterales y actos de concentración.[1] El documen to 
citado ha sido elaborado anualmente por el Departamento de Estudios Económicos, con base en los 
beneficios generados por las decisiones del CADE en el ámbito de infracciones al orden económico. 
En el caso del control de concentraciones, el Departamento de Estudios Económicos también ha 
elaborado análisis ex-post. Por ejemplo, el Documento de Trabajo 005/2022 – Evaluación Ex-Post 
de Acto de Concentración. El caso BVMF -CETIP; Documento de Trabajo 003/2021 – Ex Post  Mergers 
Evaluation – Evidence from the Br azilian Airline Industry; Documento de Trabajo 03/2019 – 
Evaluación Ex Post  de Acto de Concentración: el caso Sadia -Perdigão.  
  
4.39. Por último, como política institucional común generalizada que cobró importancia con la 
pandemia de COVID -19, el CADE se h a esforzado por mejorar sus herramientas digitales y ha puesto 
en marcha otras nuevas. Ha mejorado constantemente su proyecto de detección o "Proyecto 
Cerebro", como se conoce a nivel nacional, en consonancia con las mejores prácticas internacionales 
en las investigaciones sobre cárteles. El proyecto es una interfaz de software que combina datos, 
instrumentos de extracción de datos y pruebas estadísticas con el fin de detectar cárteles. Se trata 
de una poderosa herramienta para identificar hechos inverosími les y pautas de comportamiento 
sospechosas. La comunicación en línea de fusiones y la plataforma de acuerdos de clemencia (Clique 
Denúncia), que ya estaban en funcionamiento, han sido fundamentales en el nuevo contexto 
generado por la pandemia, ya que evit an el contacto personal. Además, se pusieron en marcha la 
herramienta de búsqueda de jurisprudencia y la plataforma de datos del mercado (PIM), que han 
sido instrumentos importantes para la observancia de la legislación en materia de competencia en 
el Bras il. La autoridad de la competencia del Brasil tuvo que adaptar considerablemente sus 
operaciones ordinarias en el contexto de la COVID -19 para poder seguir realizando sus actividades 
con eficacia. Por ejemplo, tuvo que depender en mayor medida de sus herra mientas de detección 
en las investigaciones y del Programa de Clemencia, en lugar de realizar operaciones de registro e 
incautación.  
  
54. En el proyecto de interfaz de software que tiene como fin detectar carteles y dar una alerta 
temprana a la entidad, s e está considerando la aplicación del análisis de los antecedentes y las 
dinámicas cambiantes del (los) mercado(s)?.  
  
Respuesta:  
Desde 2013, CADE ha desarrollado un proyecto para el uso de la inteligencia artificial en la minería 
de datos para detección d e carteles. Este proyecto se llama Proyecto Cerebro. El Proyecto Cerebro 
mapea conductas atípicas que funcionan como indicios de formación de carteles. El monitoreo del 
Proyecto Cerebro es hecho por medio del algoritmo de clasificación, que permite el anál isis de datos 
a partir de la identificación de un estándar de comportamiento preestablecido. Las chances de 
detección de un determinado estándar de comportamiento por el algoritmo dependen de datos, 
informaciones e conductas detalladas. Para agregar inform aciones contextuales a procesos ya 
existentes y para señalar los sectores más sensibles a infracciones económicas, se tiene en cuenta 
la estructura multidimensional de los datos considerando los antecedentes y las dinámicas 
cambiantes de los mercados, a pa rtir de conceptos matemáticos avanzados como modelos, 
operadores y descomposiciones tensoriales,[2] con la utilización de big data y herramientas 
proactivas de detección de carteles como el screening.[3] WT/TPR/M/432/Add.1  
 
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55. ¿Cómo está avanzando la política de competencia y la regulación misma en materia de comercio 
electrónico?  
  
Respuesta:  
La Coordinación -General de Análisis Antitrust 1 es responsable por el análisis de actos de 
concentración que sean procesados bajo el ritmo ordinario involucrando tecnología. La Coordina ción-
General de Análisis Antitrust 4 es responsable por el análisis de actos de concentración que sean 
procesados bajo el ritmo ordinario involucrando mercados regulados, como telecomunicaciones.[4] 
En el Cuaderno Mercados de Plataformas Digitales, de 2021 , son registradas y analizadas 
exhaustivamente las numerosas decisiones del CADE en lo que respecta al comercio electrónico.[5] 
El funcionamiento del comercio electrónico es disciplinado por el Código de Defensa del Consumidor 
(Ley 8.078/90), lo que incluy e no sólo relaciones de consumo B2C (relaciones de consumo entre 
empresa y consumidor), sino también B2B (relaciones de consumo entre empresas). Si una empresa 
es el usuario final, ella puede constituir una relación de consumo con otra empresa. En caso 
contrario, la relación es considerada comercial y es disciplinada por el Código Civil (Ley 
10.406/2002). Informaciones específicas, transparentes y precisas sobre el producto o servicio, la 
oferta, términos y condiciones deben ser ofrecidas al consumidor en e l comercio electrónico (Código 
de Defensa del Consumidor, Artículo VI). Actualizando el Código de Defensa del Consumidor, el 
Decreto 7.962/2013 regula específicamente la contratación electrónica. La adopción de un sistema 
para evitar la violación de datos es obligatoria (Artículo 4, VII). El Marco Civil de Internet (Ley 
12.965/2014), una especie de Constitución de la red de las redes, define los principios, garantías, 
derechos y deberes en el uso de internet, incluyendo el comercio electrónico. La privacida d, la 
protección de datos, el consentimiento y la seguridad de la información son derechos inalienables 
de los usuarios de internet (Artículos 3, 7 y 16). El derecho brasileño es aplicable al comercio 
electrónico internacional que tenga actuación en el ter ritorio nacional (Artículo 11). El comercio 
electrónico debe respetar lo que es determinado por la Ley General de Protección de Datos (Ley 
13.709/2018). La Ley 10.962/2004 y la Ley 13.543/2017 regulan la exhibición de precios de 
productos y servicios al co nsumidor. En el comercio electrónico, la divulgación del precio debe ser 
ostensiva, junto al imagen del producto o a la descripción del servicio, en caracteres fácilmente 
legibles (Ley 10.962/2004, Artículo 2.III). Bajo el Código Procesal Civil (Ley 13.105 /2015), los 
tribunales brasileños son competentes para juzgar casos de relaciones de consumo, si el consumidor 
está domiciliado o tiene residencia en Brasil (Artículo 22.II). Por ende, los consumidores domiciliados 
o residentes en Brasil pueden enjuiciar e n los tribunales brasileños empresas internacionales de 
comercio electrónico domiciliadas en el extranjero.  
De acuerdo con la Ley 9.472/97, la Agencia Nacional de Telecomunicaciones (ANATEL) es 
responsable por regular, disciplinar y fiscalizar el funcionam iento de las redes de telecomunicaciones, 
incluso internet (Artículo 1, Párrafo Único). La Autoridad Nacional de Protección de Datos (ANPD), 
bajo la Ley 13.709/2018, es responsable por la regulación del tratamiento de datos personales, 
incluso en internet.  
Con el Decreto 9.854/2019, una iniciativa del Ministerio de Ciencia, Tecnología, Innovaciones y 
Comunicaciones (MCTIC), Ministerio de Economía (ME) y del Banco Nacional de Desarrollo 
Económico y Social (BNDES) en conjunto con la sociedad civil, fue creado  el Plan Nacional de Internet 
de las Cosas (IoT), así como la Cámara de Gestión y Acompañamiento del Desarrollo de Sistemas 
de Comunicación Máquina a Máquina e Internet de las Cosas. El Decreto 9.854/2019 se fundamentó 
en el estudio Internet de las Cosas: un plan de acción para Brasil, hecho por el MCTIC y BNDES.[6] 
En este estudio, se examinó como la IoT debe ser puesta en práctica, con interoperabilidad ( Decreto 
9.854/ 2019, Artículo 2.I), como una herramienta de desarrollo sostenible de la sociedad. El Plan, al 
incrementar la competencia, innovación y productividad, debe beneficiar directamente el comercio 
electrónico. Del  estudio del MCTIC, ME y BNDES, resultó la Cartilla de Ciudades[7], que detalla cómo 
la IoT debe ser instalada en las ciudades inteligentes. El Decreto 9.854/2019, Artículo 1, determina 
que la IoT sea basada en la "libre competencia y en la libre circulaci ón de datos, observadas las 
directrices de seguridad de la información y de protección de datos personales." A la ANATEL le 
corresponde la regulación de la IoT.[8] 
  
4.2 Cuestiones sectoriales  
4.2.2 Agricultura  
Párrafo 4.98. "El Programa Cisternas se inscribe en un contexto de mejora de la calidad de vida de 
las poblaciones rurales y de promoción de medidas de adaptación al cambio climático, con alta 
incidencia en el territorio semiárido brasileño. La Ley 12.873/ 2013 y el Decreto 9.606/2018 
representan innovaciones en el proceso de implantación de tecnologías sociales de acceso al agua 
que han recibido apoyo dentro de una estrategia de acceso universal al agua en el medio rural para WT/TPR/M/432/Add.1  
 
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  el consumo humano y para la pro ducción agrícola, en aras del pleno desarrollo humano y de la 
seguridad alimentaria y nutricional de las familias en situación de vulnerabilidad social."  
 
56. Colombia agradece a Brasil brindar información detallada sobre el funcionamiento y las ventajas 
del referido Programa Cisternas.  
 
Respuesta:  
La captación de agua de lluvia a través de las Cisternas de Placa ha sido la mejor alternativa 
encontrada en términos técnicos, económicos, políticos, sociales y, sobre todo, ambientales. De ahí 
que se caracterice como una propuesta que suma posibilidades al desarrollo sostenible de la región. 
A continuación se presenta la justificación para elegir la cisterna cilíndrica (que puede ser de hierro -
cemento, estructura de alambre o placas prefabricadas):  
Técnicamente: Se aplica a todo tipo de suelos semiáridos, tanto cristalinos como sedimentarios. Es 
fácil de aprender y reproducir, y hoy su tecnología es dominada por casi todos los albañiles de la 
región, con una longevidad muy alta. Hay registros de cistern as con más de 40 años de existencia.  
Económicamente: Bajo costo en relación a sus beneficios. En promedio, los materiales necesarios 
para su construcción cuestan US D 494,00 y su costo final por unidad, incluida la mano de obra, es 
de US D 641,00. Con la amp liación en el número de cisternas construidas, los albañiles que dominan 
la tecnología ven incrementado su ingreso mensual hasta en US D 147,00.  
Políticamente: Contribuye considerablemente a reducir la dependencia de las familias de los grandes 
terratenient es y de los políticos locales, ya que cada familia al tener su propia cisterna tendrá su 
propia calidad de agua para el consumo humano.  
Ambientalmente: Al ser una tecnología sencilla y respetuosa con el medio ambiente, no tiene un 
impacto negativo, ya que no explota aguas subterráneas ni deposita ningún tipo de residuo en el 
medio ambiente. Además, interfiere positivamente en la escorrentía superficial, evitando el acarreo 
de materiales sólidos en exceso durante la época de lluvias en la región.  
El proceso de formación de las familias para el cuidado del agua y de las fuentes naturales de este 
recurso también lleva a reflexionar sobre el papel de la mujer en la agricultura familiar, ya que al 
facilitar el acceso al agua, se ahorra trabajo a mujeres y niños d e todo el mundo. recorren largas 
distancias en busca del líquido, mostrando la importancia de esta acción en la vida de las familias.  
Finalmente, y lo más importante, hay una reducción de las enfermedades causadas por la ingestión 
de agua contaminada, lo q ue se traduce en una disminución de la tasa de mortalidad infantil en esa 
región y una mejora en las condiciones de vida de la población. Los estudios han demostrado que la 
implementación de cisternas y otras tecnologías sociales para acceder al agua en la  región semiárida 
brasileña redujo la mortalidad infantil causada por enfermedades diarreicas agudas hasta en un 69% 
después de la implementación del programa. Además, las familias que cuentan con cisterna tienen 
menor incidencia de diarrea entre adultos y  niños de la región.  
Las experiencias de captación de agua de lluvia y otras fuentes para el consumo humano y la 
producción agrícola en miles de propiedades y comunidades a través de métodos sencillos, 
económicos y de probada eficiencia técnica ya han demo strado la importancia de descentralizar las 
estructuras de abastecimiento de agua para la seguridad alimentaria y la diversificación de productos 
agrícolas. para las poblaciones de las zonas rurales del semiárido brasileño. Estos métodos han sido 
difundido s rápidamente a través de la gestión por parte de las propias comunidades, valorizando el 
conocimiento producido por agricultores y agricultoras a través del intercambio horizontal de 
conocimientos y la sistematización de experiencias vinculadas a la produ cción de alimentos, el 
manejo de la tierra y el agua, la generación de ingresos y otras estrategias. que garanticen la 
autoestima de las familias y una nueva imagen del semiárido brasileño. En este sentido, consta que 
el Ministerio de la Ciudadanía ya fina nció más de 195.000 tecnologías sociales de acceso al agua 
para la producción de alimentos, resultando en:  
Garantía de seguridad y soberanía alimentaria y nutricional para las familias que viven en la región 
semiárida;  
Acceso descentralizado al agua para l a producción de alimentos de origen vegetal y animal para las 
familias que ya tienen acceso a su primera fuente de agua;  
Valoración las experiencias de innovación tecnológica de agricultores y agricultoras;  
Mayor intercambio de conocimientos entre agricult ores y agricultoras a través de intercambios;  
Sistematización las experiencias exitosas de convivencia con el semiárido;  
Mejora de la calidad de vida de las familias campesinas de la región semiárida, especialmente niños, 
mujeres y ancianos;  
Generación de ingresos monetarios y no monetarios, de origen agrícola y no agrícola, para familias 
campesinas del Semiárido Brasileño directamente involucradas en el Programa.  
En ningún caso los beneficiarios están obligados a compartir el costo de estas cisternas ni a aportar 
contribuciones en especie, incluida la mano de obra, para la construcción de las cisternas. Resulta WT/TPR/M/432/Add.1  
 
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que la construcción de cisternas requiere de una buena participación de las familias durante el 
proceso de construcción, ya que la excavación del ho yo donde se construirá la cisterna es realizada 
por mano de obra familiar, organizada en comisiones y esfuerzos conjuntos que llevan a cabo los 
servicios generales de excavación, entendiendo esta etapa como parte del proceso de propiedad por 
parte del bene ficiario del inmueble conquistado. Es decir, como una forma de brindar a la familia un 
sentido de pertenencia en relación con la cisterna, por lo que siempre ha sido parte de la metodología 
del Programa la participación de la familia en el proceso de const rucción, especialmente en la 
excavación del hoyo, garantizando la participación de la familia en al menos una etapa del proceso 
de construcción.  
 
 
[1] CONSELHO ADMINISTRATIVO DE DEFESA ECONÔMICA (CADE). Documento de Trabalho n° 001/2022 
– Mensuração dos benefícios esperados da atuação do Cade em 2021. Disponible en:  
https://cdn.cade.gov.br/Portal/centrais -de-conteudo/publicacoes/estudos -economicos/documentos -de-
trabalho/2022/DOC_001 -2022_Mensuracao -dos-beneficios -esperados -da-atuacao -do-Cade-em-2021.pdf . 
Acceso: 10/11/2022, p. 4.  
[2] CONSELHO ADMINISTRATIVO DE DEFESA ECONÔMICA (Cade). 1º Termo Aditivo do Plano de 
Trabalho do Termo de Execução Descentralizada n° 0686373. Disponible en  
https://sei.cade.gov.br/sei/modulos/pesquisa/md_pesq_documento_consulta_externa.php?HJ7F4wnIPj2Y8B7B
j80h1lskj h7ohC8yMfhLoDBLddaSUTxGEUqTr2buXDTYHwPJvEAOoFGPAM5SYML02NVwcXG3Ii90PjM0WtGJKNDLt
q8xw -LrVcUjzeBrIzr1HX5C . Acceso:11/11/2022, Meta 5.  
[3] CONSELHO ADMINISTRATIVO DE DEFESA ECONÔMICA (Cade). Guia Combate a carteis em licitação. 
Disponible en:  https://cdn.cade.gov.br/Portal/centrais -de-conteudo/publicacoes/guias -do-cade/guia -de-
combate -a-carteis -em-licitacao -versao -final-1.pdf. Acceso: 14/11/2022, p. 19.  
[4] CONSELHO ADMINISTRATIVO DE DEFESA ECONÔMICA (Cade) . Coordenações -Gerais de Análise 
Antitruste. Disponible en:  https://www.gov.br/cade/pt -br/acesso -a-
informacao/institucional/competencias/coordenacoes -gerais -de-analise -antitruste . Acceso: 11/11/2022.  
[5] CONSELHO ADMINISTRATIVO DE DEFES A ECONÔMICA (Cade). Mercados de plataformas digitais. 
Disponible en:  https://cdn.cade.gov.br/Portal/centrais -de-conteudo/publicacoes/estudos -
economicos/cadernos -do-cade/plataformas -digitais.pdf . Acceso: 11/11/2022, pp. 19 -132. 
[6] BANCO NACIONAL DO DESENVOLVIMENTO (BNDES). Internet das Coisas: um plano de ação para o 
Brasil. Disponible en:  
https://www.bn des.gov.br/wps/portal/site/home/conhecimento/pesquisaedados/estudos/estudo -internet -das-
coisas -iot/estudo -internet -das-coisas -um-plano -de-acao-para-o-brasil . Acceso: 12/11/2022.  
[7] BANCO NACIONAL DO DESENVOLVIMENTO (BNDES). Cartilha de Cidades. Disponible:  
https://www.bndes.gov.br/wps/wcm/connect/site/db27849e -dd37-4fbd-9046-6fda14b53ad0/produt o-13-
cartilha -das-cidades -publicada.pdf?MOD=AJPERES&CVID=m7tz8bf . Acceso: 14/11/2022.  
[8] AGÊNCIA NACIONAL DE TELECOMUNICAÇÕES (Anatel). Internet das Coisas IOT/M2M. Disponible:  
https://sistemas.anatel.gov.br/anexar -api/publico/anexos/download/a028ab5cc4e3f97442830bba0c8bd1dd . 
Acceso: 14/11/2022.  
 
  WT/TPR/M/432/Add.1  
 
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  RUSSIAN  FEDERATION  
4 TRADE INSTITUTIONAL AND REGULATORY FRAMEWORK  
4.2 Sectoral issues  
4.2.4 Renewable energy  
Page 41, Para 4.105  
Brazil has one of the world's most renewable energy matrixes. According to the National Energy 
Balance (BEN, EPE 2022), 44.7% of the domestic energy supply comes from renewable sources. The 
diversification of the energy matrix, which is made possible with the expansion of the supply of 
sugarcane derivatives, wind energy and biodiesel is contributing  to the continuation of this high 
share. Renewable sources will continue to account for a large share of supply, mostly due to the use 
of hydropower, new renewables (wind & solar) and bioenergy, including biofuels.  
 
Question № 1:  
Could Brazil please elabor ate more on the topic of subsidies and other public incentives provided by 
the Brazilian Government to support renewable energy sector?  
 
Reply:  
In Brazil, there are several laws and public policies that stimulate the participation of the renewable 
energy s ector, among which one can mention:  
● Law No. 10,438/2002 which created the Alternative Electricity Sources Incentive 
Programme  - Proinfa and the Energy Development Account;  
● Law No. 11,097, of 13 January  2005, which provides for the introduction of biodi esel into the 
Brazilian energy matrix;  
● MME Ordinance No. 403/2019, which establishes the Electricity Sector Modernization 
Implementation Committee - CIM; 
● Resolution No. 6, of 23 June  2022, which establishes the National Hydrogen Program - PNH2;  
● Law No. 13,576, of 26 December  2017, which provides for the National Biofuels Policy 
(RenovaBio);  
● CNPE Resolution No. 7, of 20 April  2021, which establishes the Fuel of the Future Program;  
● Decree No. 5,297, of 6 December  2004, which establishes the Social Biofuel Seal for biodiesel 
producers that promote the social inclusion of family farming;  
● Decree No. 10,946, of 25 January  2022, which allows the assignment of physical spaces for 
the generation of electricity from offshore enterprises;  
● Decree No. 11,003, of 21 March  2022, which establishes the Federal Incentive Strategy for 
the Sustainable Use of Biogas and Biomethane;  
● Law No. 14,300, of 6 January  2022, which establishes the Legal F ramework for Distributed 
Generation - GD; 
● Law No. 14,248, of 25 November  2021, which establishes the National Biokerosene Program;  
● Energy Auctions for renewable sources;  
● Law No. 11,488/2007, which created the Special Incentive Regime for Infrastructu re 
Development – REIDI;  
● Law No. 9,427/1996 amended by Law No. 13,360/2016, which defines the benefits of 
reduction of more than 50% of TUST and TUSD for solar, wind, biomass, qualified cogeneration, and 
PCH sources;  
● ICMS Agreement 156/2017, which exten ds, until 31 December  2028, the ICMS Agreement 
101/97, which grants exemption from ICMS in operations with equipment and components for the 
use of solar and wind energy generation;  
● ME resolution No. 14, of 19 February  2020, and No. 69, of 16 July  2020, w hich changes to 
zero percent the Import Tax rates levied on Capital Goods that mentions, as Ex -tariff, among the 
items, there are several goods for the renewable energy industry;  
● Law No. 14,302/2022, which extends the term of the Program to Support Techn ological 
Development of the Semiconductor Industry – PADIS, bringing benefits to inputs and equipment 
related to the connection of solar cells and photovoltaic solar modules; and  WT/TPR/M/432/Add.1  
 
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● Law No. 9,427, of 26 December  1996, which establishes, in its §§ 1, 1 -A and  1-B, the reduction 
of tariffs for the use of electricity transmission and distribution systems for small enterprises using 
renewable sources (hydro, wind, solar, biomass and waste).  
 
Question № 2:  
Does Brazil have any plans to develop hydrogen and nuclear energy sectors? Are there any incentives 
in place or under consideration to support development of these sectors?  
 
Reply:  
Hydrogen  
In recent years, the hydrogen market has become a priority in the climate and energy strategy of 
several countries, a s it provides an alternative for hard -to-abate sectors. Due to hydrogen being an 
energy vector, it enables storage and favors the coupling of the energy sector with those of industry 
and transport.  
Brazil has great potential to stand out in this market, gi ven its competitive advantages, with more 
than 80% of the electricity matrix coming from renewable sources. In addition, Brazil has a wide 
range of energy resources that can be used for the production of low -carbon hydrogen through 
different technological routes.  
The use of hydrogen as an energy vector still presents significant technological and market 
challenges, along its entire energy chain (production, transport, storage, and consumption). This 
imposes the need for measures directed to address market a nd industry development concerns. In 
this context, Brazil´s strategic orientation aims to develop a hydrogen economy in the country, in 
harmony with the other sources of our energy matrix.  
In this sense, the National Energy Policy Council (CNPE) stablished  the National Hydrogen Program 
(PNH2) through Resolution No. 6, of 23 June  2022. The objective of PNH2 is to strengthen the 
hydrogen market and industry as an energy vector in Brazil.  
Before CNPE Resolution No. 6, of 2022, other CNPE decisions already iden tified the strategic role 
that hydrogen can play in a future of decarbonized economies, such as CNPE Resolution No. 2, of 
2021, which defined hydrogen as one of the priority themes for investments in research and 
development, and CNPE Resolution No. 6 of 2 021, which guided the definition of guidelines for the 
Program.  
In addition, the National Energy Plan - PNE 2050, published in December 2020, which consists of a 
set of studies and guidelines for the design of a long -term strategy for the Brazilian energy sector, 
presents hydrogen as a disruptive technology, with the following recommendations for the 
advancement of this source:  
● Design regulatory improvements related to quality, safety, transport infrastructure, storage, 
supply, incentive, and use of new t echnologies; and  
● Articulate with other international institutions that have initiatives in the area of hydrogen  
 
Nuclear  
The Brazilian Nuclear Policy (PNB), established by Decree No.  9,600, of 5  December  2018, 
consolidates a set of guidelines for plannin g, actions, and nuclear activities in the country, in 
compliance with national sovereignty, with a view to economic development, alongside the 
protection of human health and of the environment. Additionally, it lists a few objectives, 
among  which:  
● to pre serve the domain of nuclear technology in the country;  
● to meet the demand for clean and firm energy that may derive from future decisions in the 
energy sector;  
● to ensure the safe use of nuclear technology and to strengthen activities related to plannin g 
and responding to emergencies and events related to nuclear safety and the physical protection of 
nuclear facilities;  
● to promote the awareness of Brazilian society, regarding the benefits of the use of nuclear 
technology and the measures that allow its safe use;  
● to encourage research, development, and innovation in nuclear technology;  WT/TPR/M/432/Add.1  
 
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  ● to encourage research and prospection of nuclear ores in the country;  
● to encourage the national production of nuclear ores and their by -products, including 
occurrences associated with other mineral goods, looking forward to meeting domestic demand and 
exports;  
● to encourage the continuous training of human resources necessary for the development of 
nuclear technology and their establishment in this sector;  
● to encourage technical -scientific and industrial training compatible with the needs of the 
nuclear sector;  
● to encourage the planning and execution of projects aimed at the nuclear sector, with a view 
to guarantee the establishment and optimization of th e intellectual capital formed in the country; 
and 
● to ensure the safe management of radioactive waste.  
The National Energy Plan (PNE 2050), published in December 2020, consists of a set of studies and 
guidelines for the design of a long -term strategy for the Brazilian energy sector. In this sense, it 
presents some scenarios that demonstrate that, given some assumptions related to technology and 
other energy sources, there would be a trend towards nuclear expansion in the horizon of 2050. 
However, it would be important to make efforts to overcome some challenges, namely:  
● Effectively communicate the role of nuclear energy;  
● Promote institutional, legal, and regulatory adjustments expansion stories;  
● Assess the magnitude of the expansion associated with th e implementation of the Brazilian 
Nuclear Policy;  
● Ensure the safety of nuclear facilities and the fuel cycle;  
● Extend the life of reactors and define decommissioning rules; and  
● Increase knowledge about national mineral resources applicable to the nucl ear fuel cycle.  
 
4 TRADE INSTITUTIONAL AND REGULATORY FRAMEWORK  
4.2 Sectoral issues  
4.2.4 Renewable energy  
Page 41, Para 4.108  
The Report states that the Brazilian Biofuels Policy (RenovaBio), with the main objective of promoting 
the reduction of greenhouse gas emissions by expanding the production and use of biofuels in the 
transport matrix is a key development  
 
Question № 3:  
Could Brazil please provide more information about the incentives under the RenovaBio policy? 
Please provide the link to th e respective legislative act, if there is one.  
 
Reply:  
Instituted by Law 13.576/2017, the Brazilian National Biofuel Policy (RenovaBio) recognizes the 
strategic role of biofuels (ethanol, biodiesel, biomethane, biokerosene for aviation, and others) in 
the Brazilian energy matrix concerning its contribution to energy security, the predictability of the 
market and the mitigation of greenhouse gas emissions (GHG) in the fuel sector.  
 
Regarding the operationalization of the program, RenovaBio is composed of thr ee strategic axes. In 
the first axis, annually the Government establishes national decarbonization targets for 10 years, 
which are unfolded into mandatory individual targets for fuel distributors, proportional to their shares 
in the fossil fuel market. In the second, biofuel producers voluntarily certify their production and 
receive, as a result, energy -environmental sufficiency scores. These notes are multiplied by the 
volume of biofuel traded, resulting in the decarbonization credit (CBIO) that a producer  can 
commercialize, which is the third axis.  
 
The logic behind RenovaBio is to reward the most efficient production in terms of reducing carbon 
emissions. The more the biofuel reduces carbon intensity when compared to the fossil substitute 
fuel, the more d ecarbonization credits it earns, generating incentives for more efficient energies for 
environmental sustainability.  
 WT/TPR/M/432/Add.1  
 
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The main idea of RenovaBio is to separate what the biofuel producer receives for fuel from what it 
receives for providing the public good of decarbonization and improving air quality. Biofuel producers 
receive additional revenue from CBio 's sales to other interested parties. Moreover, it should be noted 
that the CBio market may, over time, become a reference in the pricing of the carbon mark et - 
increasing biofuels ' share in final energy demand on transport, in compliance with sustainable 
practices and increased energy -environmental efficiency.  
 
Link to Law No. 13,576, of 26 December  2017, which provides for the National Biofuels Policy 
(RenovaBio).  
Link to Decree No. 9,888, of 27 June  2019, which provides for the  definition of mandatory annual 
targets for the reduction of greenhouse gas emissions for the sale of fuels provided for in 
Law No. 13,576/2017, and establishes the National Biofuels Policy Committee - RenovaBio 
Committee.  
 
3 TRADE POLICY DEVELOPMENTS (2017 -21) 
3.4 Participation in the WTO  
3.4.4 Trade and Environmental Sustainability Structured Discussions (TESSD)  
Page 19, Para 3.27  
During MC12, Brazil announced it would join the TESSD Ministerial Declaration and become a co -
sponsor of that  plurilateral initiative. Even while internal consultations were taking place, Brazil was 
the only noncosponsor to present a proposal in the area. Document INF/TE/SSD/W/12 emphasizes 
the central role of the agricultural sector in promoting sustainable deve lopment and draws attention 
to the environmental impacts of agricultural subsidies. Brazil has also been a constructive participant 
in the discussions on trade and sustainability held in the WTO Committee on Trade and Environment.  
 
Question № 4:  
The Report  states that Brazil is a co -sponsor of the TESSD. Is Brazil considering joining the WTO 
Informal Dialogue on Plastic Pollution? If not, why so?  
 
Reply:  
Brazil is still evaluating the possibility of joining the Informal Dialogue on Plastic Pollution (IDP).  
 
 
FUTURE DEVELOPMENTS  
Page 49, Para 5.6  
On the environment, the country stands by the sustainability commitments reached in the Paris 
Agreement and at COP26. It is regulating the Carbon Market, and innovating in creating a methane 
market.  
 
Question № 5:  
Please provide more information on Brazil's approaches and policy tools to regulate the Carbon 
Market.  
 
Reply:  
The sectoral plan for the transition to a low -carbon economy in Brazil mandated by the national 
climate law (Law 12.187 of 2009) united governmen t agencies and private sector representatives 
with the goal of promoting carbon efficiency of industrial processes, supporting studies about the 
carbon intensity of the industry, creating financial incentives and supporting the dissemination of 
low carbon technology.  
 
Furthemore, Brazil is forging ahead with liberal reforms to improve the business environment and 
at the same time, employing market -based instruments in the environmental policy to create new 
opportunities of green growth. Brazil is in the pr ocess of implementing a regulated carbon market. 
On 19 May 2022, as a first step of this process, Decree No. 11,075 established the National System 
for the Reduction of Greenhouse Gas Emissions (Sinare). The regulation of this System is being 
elaborated by  technicians from the Ministry of Economy and the Ministry of the Environment in 
thematic working groups. The goal of implementing a regulated carbon market in Brazil is to help 
the country meet its climate objectives, enabling the transition to a low -carbon economy.  
 WT/TPR/M/432/Add.1  
 
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  REPORT BY THE SECRETARIAT  
SUMMARY  
Page 11, Para 11  
According to the Report, "Brazil's internal taxation regime remains complex, including in the 
treatment of imported goods and services. Domestic and cross -border transactions are subject to 
various federal and sub -federal levies, and cross -cumulation of these taxes for tax base purposes is 
not uncommon. In addition, their application typically varies depending on the product type, the 
competent sub -federal authority, and the importer's tax regi me status. Whereas federal taxes are 
automatically deducted from the importer's bank account upon submission of the customs 
declaration, procedures and systems for the collection of sub -federal taxes (sometimes requiring 
presentation of hard copies for imp orts' release) still vary across Brazil's federative states".  
 
Question № 6:  
Please provide more information on future steps to make the internal taxation regime less 
cumbersome for foreign economic operators.  
Reply:  
Most of the complexity derives from how the tax legislation is structured, especially in the field of 
indirect taxation.  
Items 3.40 -3.51presents several features of the Brazilian tax system that cause complexity. As it 
is demonstrated, Brazil has several taxes that may be imposed by differe nt entities of the federative 
units of Brazil (i.e. Union, States and Municipalities) on the same transaction. The federative units 
of Brazil are subnational entities with autonomy (self -government, self -regulation, and self -
collection) and endowed with th eir own government and constitution, which together form the 
Federative Republic of Brazil. There are 26 states and one federal district and the states are divided 
into municipalities.  
To those entities the Federal Constitution of Brazil grants the power t o tax different types of 
transactions. For instance, the Federal Constitution attributes to the Municipalities the power to tax 
services. With regard to sale of goods, the right to tax is granted to the States.   
As one can note, while most countries genera lly have a single tax (VAT) to tax sales of goods or 
services, Brazil has different taxes that are imposed by different units of the federation. In addition, 
the various units may have legislations with different specificities, especially regarding complia nce 
and documentation. Brazil is making several efforts to simplify its tax legislation, promote legal 
certainty and attract foreign investment.  
As an example, it is worth mentioning that there are different bills pending in the national congress 
that aim to unify and eliminate various taxes, in addition to introducing new criteria that are more 
aligned to the international practice.  
SUMMARY  
Page 12, Para 20  
According to the Report, domestic support for developing mining companies and sustainable 
technologi es through an Inova Mineral joint initiative on credits, subsidies, cooperation projects 
between institutions and companies is available to selected firms.  
Question № 7:  
Please provide more information on the Inova Mineral joint initiative. What are the criteria to be 
included in the list of selected firms that can be provided with domestic support under this initiative? 
Are these incentives available only to domestic players or to foreign players as well?  
 
Reply:  
Inova Mineral is a joint initiative of BN DES and FINEP, aimed at coordinating actions to promote and 
select Business Plans that include research, development, engineering and/or technological 
absorption, production and commercialization of products, processes and/or innovative services, and 
other  actions necessary for them to be taken to the market in a competitive manner, aiming at the 
development of Brazilian companies and technologies in the productive chains of the mining industry, 
complementary and/or in consortium with actors from other upst ream or downstream chains (with 
the exception of the Oil and Gas segments) for example, in the following segments: research, 
mineral exploration and transformation, inputs, machines, equipment, software and systems, thus WT/TPR/M/432/Add.1  
 
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contributing to innovation, local c ontent, competitiveness and sustainability policies linked to the 
aforementioned segments.  
The BNDES/FINEP joint public consultation notice was launched on 2 August  2016. The notice was 
carried out in two stages: the final result of the first stage was con cluded on 26 May  2017 and the 
final result of the second stage was concluded in 29 January  2018.  
Companies and/or Brazilian economic groups that are interested in developing, producing and 
commercializing products, processes and/or services resulting from the technologies listed in the 
thematic lines of the Notice could participate in the selection process, being able to do so individually 
or in partnership with companies of any size and/or scientific and technological institutions. For this 
purpose, the in terested party must register in the selection process as a "Leading Company ". 
The thematic lines were chosen according to the opportunities identified by several agents operating 
in the sector, among entities of the federal government, Scientific and Techn ological Institutions and 
Brazilian Companies. These thematic lines were also subject to consultation with potential interested 
parties for validation and refinement.  
The selection process was governed by the provisions contained in the Notice, by the rule s of the 
Ministry of Science, Technology, Innovations and Communications - MCTIC and of the Ministry of 
Planning, Development and Management - MP applicable, by the internal rules of FINEP and BNDES 
and by the applicable legislation to the types of financi al support to be operated by these institutions 
within the scope of INOVA MINERAL, in particular Law No. 10,973/2004, regulated by 
Decree  No. 5,563/2005, Law No. 11,540/2007, regulated by Decree No. 6,938/2009 and, where 
applicable, Normative Instruction C D/FNDCT/MCT No. 01/2010  
 
1 ECONOMIC ENVIRONMENT  
1.2. Economic Developments  
1.2.1 Growth, income, and employment  
Pages 19 -20, para 1.4  
Brasil Mais aims to improve the managerial and digital capabilities of Brazilian companies, promoting 
rapid improvements at low cost for entrepreneurs and guaranteeing consistent results in increasing 
productivity and competitiveness; the programme is available to MSMEs in the industry, commerce, 
and services sectors.  
 
Question № 8:  
Please clarify whether the Br asil Mais provides for any financial forms of support for entrepreneurs? 
We kindly request Brazil to provide more information about this programme, including regarding the 
criteria that companies should meet to benefit from this programme and the methodolo gy for 
assessing their competitiveness.  
 
Reply:  
The Program "Brasil Mais " offers a series of low -cost and high -impact technical advice for micro, 
small and medium -sized companies from all economy sectors, focusing on productivity and digital 
maturity incre ase. The consultations may be free or the entrepreneur may be charged. So far, there 
is no financial forms of support for entrepreneurs within the scope of Brasil Mais.  
Industries with up to 499 employees can hire consultancy for the enforcement of lean ma nufacturing 
techniques ( "Brasil Mais Produtividade ") by the amount of BRL 2,400.00. In this case, the impact of 
the support is measured by calculating the production line productivity.  
Micro and small companies in the commerce, services and industry sector s with annual gross 
revenues equal to or less than R  BRL 4.8 million can receive free assistance to improve management 
practices ( "Brasil Mais Produtividade ") or to adopt digital transformation methods ("Brasil Mais 
Transformação Digital "). In the first ca se, at the company level, the support impact measurement 
is made by the "work productivity" result indicator. For companies attended by "Brasil Mais 
Transformação Digital ", the "Payback" of the adopted digital transformation solution is measured. 
The compa nies attended in this modality also answer to the digital maturity questionnaire - Check -
up Digital - developed by the Inter -American Development Bank.  
 
1 ECONOMIC ENVIRONMENT  
1.2. Economic Developments  
1.2.1 Growth, income, and employment  
Page 19-20, Para 1.4  
Since 2017, changes in the overall sectoral pattern of Brazil's GDP have mainly consisted of the 
increasing contribution of agriculture and mining and quarrying – important drivers of Brazilian 
exports, and a decline in manufacturing and se rvices (Table 1.2); at the same time, the employment 
shares of different activities remained relatively stable. Reportedly, labour productivity (Section  1.1) WT/TPR/M/432/Add.1  
 
- 165 - 
 
  averaged 110.31 points in the period 1988 -22, reaching an all -time high of 252.77 points in 
Januar y 2022.17 The 2016 Brasil Mais Produtivo (Brazil More Productive) programme was well 
designed but largely focused on a few low -tech sectors (food, textiles, and furniture) and on the 
industrial heartland of the country; it was replaced by Brasil Mais, with  a broader scope in 2020. 
Brasil Mais aims to improve the managerial and digital capabilities of Brazilian companies, promoting 
rapid improvements at low cost for entrepreneurs and guaranteeing consistent results in increasing 
productivity and competitiven ess; the programme is available to MSMEs in the industry, commerce, 
and services sectors.18 Brazil's limited participation in global value chains (GVCs) seems 
characterized by an intense forward participation as a primary product supplier and low backward 
participation, with a reduced use of imports in exports; in 2018, out of 35% of GVC participation in 
total gross exports, forward participation accounted for 22%, whereas backward participation 
for 13%, compared to 32.1% and 12.5%, respectively, in 2015.19  According to United Nations 
Conference on Trade and Development (UNCTAD) estimates, in 2017, Brazil ranked  
21st (22nd in 2010) among the world's 25 top exporting developing economies by GVC participation 
rate; its GVC participation in exports (40% upstream) stood below the average of the developing 
exporting economies (56%).  
 
Question № 9:  
What are the main global value chains in which the Brazilian economy participates through backward 
and forward participation?  
 
Reply:  
Considering the last year av ailable in the TIVA database (2018), the Brazilian economic sector with 
the highest external participation in its exports (backward linkages) is the sector of other transport 
equipment, in which it is worth mentioning the relevance of aircraft production a nd its parts. Of the 
gross value exported in this sector, approximately 33.4% comes from imports. Of the 23 divisions 
belonging to the transformation industry, it is the fifth sector with the highest exported value. 
Therefore, it is the most relevant Brazi lian economic sector integrated with GVC, from the 
perspective of trade opening as an inducer of exports.  
In the forward linkages indicators, the sectors in exports from OECD member countries that have 
the most added value originating in Brazil are base me tals (US D 2,768.4 million), automotive 
vehicles (US D 994.3 million) and Computer, electronic and optical products (US D 797.1 million). 
The sectors that stand out in exports from Asean and East Asia countries that use value added 
originating in Brazil are b ase metals (US D 1,244.7 million), automotive vehicles 
(USD 1,561.6  million) and Textiles, wearing apparel, leather and related products 
(USD 1,508.2  million). Brazilian exports in the sectors of base metals, cotton, and mineral extractive 
industry have a r elevant weight in the value added in exports of the sectors mentioned in these 
countries.  
 
1 ECONOMIC ENVIRONMENT  
1.2. Economic Developments  
1.2.3 Main macroeconomic policy developments  
1.2.3.1 Monetary and exchange rate policy  
Page 22, Para 1.8, Footnot e 31.  
According to the Report, certain foreign exchange operations remain subject to a financial 
transaction tax (IOF) of up to 6.38% that is to be gradually reduced to zero by 2029 for certain 
foreign exchange currency settlements. The gradual reduction in the foreign transaction tax 
represents a step towards Brazil becoming an OECD member.  
 
Question № 10:  
Please clarify which specific foreign exchange operations are subject to gradual reduction in the 
foreign transaction tax by 2029. Which foreign exchan ge operations will not be subject to such 
gradual reduction and why?  
 
Reply:  
All foreign exchange operations will be subject to a gradual reduction and the tax rate will be reduced 
to zero by 2029.  
The reduction will be gradual in each of the four groups:  
a) the first group (A) involves short -term operations - up to 180 days  
The current rate is 6% and the rate will be reduced to zero immediately.  
b) the second (B) comprehends operations with credit or debit cards, travellers checks and 
international  prepaid cards.  WT/TPR/M/432/Add.1  
 
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The current rate is 6.38% and it will be Reduced 1 percentage point each year, reaching to zero  as 
of 2 January  2028 
c) the third group (C) includes the exchange operations for the acquisition of foreign currency in 
cash in Brazil and for the transfer of funds from residents in the country for availability abroad.  
T he current rate is 1.10% and it will be reduced to zero as of 2 January  2028 
d) the fourth group (D), finally, will involve the other exchange operations  
Tax rate of 0.38%. Reduces to zero as of 2 January  2029 
 
1 ECONOMIC ENVIRONMENT  
1.2. Economic Developments  
1.2.4 Structural policies  
1.2.4.3 Competition policy and corporate governance  
Page 25, para 1.13  
During the review period, Brazil's Administrative Council for Economic Defense (CADE) adopted 
several strategies to share experiences and stimulate discussions related to the defence of 
competition (Section 3.3.4). CADE's cartel enforcement programme has been thoroughly 
modernized. Its leniency programme has been systematic a nd consistently enhanced; its 2021 
Guidelines for Evidence in Antitrust Leniency Agreement Proposals with CADE consolidated the 
standard of evidence required to negotiate leniency agreements in cartel cases.45 Progress has been 
made in terms of competition  advocacy. In 2021, CADE released a report on digital platforms and a 
report on competition cases in the private healthcare market. Complex mergers with considerable 
impact on different markets were reviewed and investigations involving digital platforms a nd media, 
as well as of cartels, were undertaken.  
 
Question № 11:  
How have the adopted Guidelines (2021) affected competition jurisprudence?  
 
Reply:  
The 2021 Guidelines3 compile and present the most relevant and decisive CADE 's Administrative 
Tribunal case law on cartel conduct.4 Leading cases of the last 27 years5, from 1993 to 2020, are 
bracketed in eight categories as follows: 1) Evidence from cartel cases heard by t he CADE Tribunal; 
2) Direct evidence of an agreement; 3) Indirect evidence of an agreement; 4) Evidence of a 
practice 's effects in Brazil; 5) Sufficient evidence; 6) Insufficient evidence, when presented in 
isolation; 7) Validity of evidence presented; 8) Evidence of a practice 's degree of coordination.6 
The 2021 Guidelines thus set forth direct and indirect proof patterns usually accepted or rejected by 
CADE 's Administrative Tribunal. In so doing, the 2021 Guidelines set up important references to the 
conduction of internal investigations and data gathering led by applicants and provided key sources 
for the structuring of more effective compliance programs. As regards how the 2021 Guidelines have 
affected competition case law, they have provided Commission ers with systematized proof 
parameters that have assisted them in further developing CADE 's case law. The 2021 Guidelines 
allows fast analysis of the potential of a document to prove infringements in accordance with 
CADE 's historical understanding. The afo rementioned compilation of the most relevant and decisive 
CADE 's Administrative Tribunal case law on cartel conduct has also contributed to align the criteria 
used by the General Superintendence (that signs the leniency agreement) with those of the Tribuna l 
(that can ultimately condemn the conduct). By systematically putting together consolidated evidence 
parameters, 2021 Guidelines have consistently supported CADE 'S Administrative Tribunal in the 
verification and proof of reported infringements. As a whole, CADE 's Administrative Tribunal has 
 
3 CONSELHO ADMINISTRATIVO DE DEFESA ECONÔMICA (Cade). GUIDE Parameters for submitting 
evidence in leniency applications. Available at: https://cdn.cade.gov.br/Portal/centrais -de-
conteudo/publicacoes/guias -do-cade/Guide -Parameters -for-submitting -evidence -in-leniency -applications -
Atualiza do.pdf . Access: 11/11/2022.  
4 CONSELHO ADMINISTRATIVO DE DEFESA ECONÔMICA (Cade). GUIDE Parameters for submitting 
evidence in leniency applications. Available at: https://cdn.cade.gov.br/Portal/centrais -de-
conteudo/publicacoes/guias -do-cade/Guide -Parameters -for-submitting -evidence -in-leniency -applications -
Atualizado.pdf . Access: 11 /11/2022, p. 7.  
5 CONSELHO ADMINISTRATIVO DE DEFESA ECONÔMICA (Cade). GUIDE Parameters for submitting 
evidence in leniency applications. Available at: https://cdn.cade.gov.br/Portal/centrais -de-
conteudo/publicacoes/guias -do-cade/Guide -Parameters -for-submitting -evidence -in-leniency -applications -
Atualizado.pdf . Access: 11/11/2022, p. 13. 
6 CONSELHO ADMINISTRATIVO DE DEFESA ECONÔMICA (Cade). GUIDE Parameters for submitting 
evidence in leniency applications. Available at: https://cdn.cade.gov.br/Portal/centrais -de-
conteudo/publicacoes/guias -do-cade/Guide -Parameters -for-submitting -evidence -in-leniency -applications -
Atualizado.pdf . Access: 11/11/2022, pp. 13 -35. WT/TPR/M/432/Add.1  
 
- 167 - 
 
  developed a holistic proof analysis. Conducts are ascertained by a diverse and vast set of evidences. 
When presented in large numbers, indirect proofs, in connection with direct proofs, may lead  to a 
conviction.  
 
2 TRADE AND INVESTMENT REGIMES  
2.3.2 Regional trade agreements and preferential trade arrangements  
Page 45, Para 2.33  
Trade agreements have been a pillar of Brazil's stated strategy of insertion into the world economy 
and its increase of  productivity. During the review period, its strategy has been focused on going 
beyond its traditional Latin American partners and concluding deeper "new generation" agreements. 
Brazil has intensified its agenda of trade negotiations. Some RTAs within the framework of the Latin 
American Integration Association (LAIA) and MERCOSUR (Brazil -Chile, Brazil -Paraguay, 
MERCOSUR -Colombia, MERCOSUR -Egypt) entered into force. Signing and ratification of agreements 
concluded during the review period are pending (Europe an Union  and European Free Trade 
Area (EFTA)) and negotiation of other agreements (e.g. the Republic of Korea, Canada, Lebanon, 
and Singapore) is under way.  
 
Question № 12:  
Do the Brazilian authorities plan to negotiate any new regional trade agreements in  the near future?  
 
Reply:  
Brazil has signed, jointly with MERCOSUR, regional trade agreements with most South American 
countries and as a rule is open to negotiate bilateral trade agreements on nontariff matters with 
those countries. Moreover, Brazil plans  to negotiate an ambitious bilateral FTA with Mexico and 
supports the dialogue between MERCOSUR and Central American and Caribbean countries in order 
to discuss the possibility of individual trade agreements.  
Beyond Latin America, MERCOSUR has concluded an exploratory dialogue with Indonesia, with whom 
initial negotiating rounds are planned for 2023. We have also held initial talks with Tunisia, in the 
past, which could be resumed over the next few years, in addition to negotiations with other p artners 
based on mutual interest. MERCOSUR has also signalled to some of its partners its interest in 
deepening existing trade agreements.  
 
2 TRADE AND INVESTMENT REGIMES  
2.4. Investment regime  
2.4.2 Restricted activities  
Page 55, Para 2.49  
Restrictions on  foreign investment continue to affect some activities including nuclear power, certain 
postal services, some health services, and mass media (Table 2.2 and Section 4.4).87 Foreigners 
and foreign -controlled companies and businesses may not own land in spec ified areas within 
150 kilometres of Brazil's national borders, directly on its coasts, or in any other geographical areas 
designated and defined as sensitive for national security; foreign ownership of these areas requires 
authorization from the Brazilian  National Defense Council, among other procedures. Furthermore, 
the area of agricultural land bought or leased by foreigners cannot account for more than 25% of 
the overall land area in a given municipal district; in addition, no more than 10% of agricultu ral land 
in any given municipal district may be owned or leased by foreign nationals from the same country. 
Draft Law No. 4,059/2012, which would lift the limits on foreign ownership of agricultural land, has 
been awaiting a vote in the Brazilian Congress since 2015. A bill (Draft Law No. 2,963/2019) to ease 
restrictions on foreign land ownership was approved by the Senate in December 2020 and as of 
June 2022 it was under consideration by the Chamber of Deputies.  
 
Question № 13:  
Please provide more informat ion on the easing of restrictions, envisaged by the Draft Law 
No. 2,963/2019?  
 
Reply:  
The Draft Law no. 2963/19 (still under analysis by the Chamber of Deputies) proposes to facilitate 
the purchase, ownership and lease of rural properties in Brazil by fore ign individuals or companies. 
The proposal eliminates the need for authorization or licen ce for acquisition and possession by 
foreigners, in the case of rural properties with areas not exceeding 15 fiscal modules (in Brazil, the 
value of the fiscal module is set by Institute for Colonization and Agrarian Reform (INCRA) and varies 
from 5 to 110 hectares, depending on the municipality).  The sum of rural areas owned and leased 
to foreigners, however, would still be limited to 25% of the surface of the municipa lities where they WT/TPR/M/432/Add.1  
 
- 168 - 
 
are located and to 10% in the case of companies formed by citizens and companies of the same 
nationality.  
 
Question № 14:  
Are there any plans to ease the restrictions in the nuclear energy sector?  
 
Reply:  
The National Energy Plan - PNE 2050, published in December 2020, consists of a set of studies and 
guidelines for the design of a long -term strategy for the Brazilian energy sector. It contains some 
reflections on the expansion of nuclear power in the country, such as the importance of o vercoming 
some challenges, namely:  
● Effectively communicating the role of nuclear energy;  
● Promoting institutional, legal, and regulatory adjustments for an expansion;  
● Assessing the magnitude of the expansion associated with the implementation of the 
Brazili an Nuclear Policy;  
● Ensuring the safety of nuclear facilities and the fuel cycle;  
● Extending the lifespam of reactors and defining decommissioning rules; and  
● Increasing knowledge on national mineral resources applicable to the nuclear 
fuel cycle.  
In this sen se, overcoming the challenge related to promoting institutional, legal, and regulatory 
adaptations to expansion needs is tantamount for thermonuclear enterprises to have the opportunity 
to participate in a competitive market. It is necessary, for example, to resolve the flexibilization of 
Union monopolies in the nuclear chain, since it is up to the Union to explore nuclear services and 
installations of any nature and to exercise a state monopoly on research, mining, enrichment, 
reprocessing, industrializati on and trade in nuclear ores and their derivatives (Federal 
Constitution  1988, Art. 21, XXIII), and define Public -Private Partnership models with commercial 
and financial arrangements that make thermonuclear enterprises attractive in the face of 
alternativ es and with risks compatible with their economy (in particular, the treatment of civil liability 
for nuclear damage after the easing of the exercise of the Union monopoly). There are also other 
challenges, such as: regulating §6 of Article 225 of the Feder al Constitution of Brazil, which 
establishes that plants that operate with a nuclear reactor must have their location defined by federal 
law, without which they cannot be installed; and, the classification in energy auctions (Law No. 
10.848/2004) and its r egulations. Thus, the Modernization of the Electricity Sector must assess the 
appropriate way of hosting nuclear energy in the ongoing transformations.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.4 Other charges a ffecting imports  
Page 71, para 3.50  
The ISS is a municipal tax levied on a cumulative (cascading) basis on revenues derived from the 
provision of certain services (including from abroad). The relevant list of services and the minimum 
and maximum tax rates (2% and 5% of the transaction value, respectively) are fixed by federal law. 
In general, services subject to the ISS are exempted from the ICMS even if the service transaction 
also involves the sale of goods. In principle, the service provider is liable fo r the ISS; however, 
municipal tax legislation may impose a withholding responsibility on the contracting entity that 
receives the service.  
 
Question № 15:  
What types of services are subject to this tax?  
Reply:  
Services subject to ISS on import are those li sted in the annex to Complementary Law No.  116, 
of 31 July 2003.  
 WT/TPR/M/432/Add.1  
 
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  3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.6 Anti -dumping, countervailing, and safeguard measures  
 
Question № 16:  
Is it possible to initiate an early termination of an anti -dumping measure? If so, what is the applicable 
procedure?  
 
Reply:  
In special situations it is possible to request a revie w of the anti -dumping duty due to changing 
circumstances. As a result of this type of review the duty may be terminated if the continuation or 
resumption of dumping or damage is unlikely, or the duty may be amended if it has ceased to be 
sufficient or has become excessive to counteract the dumping or has become insufficient to eliminate 
the damage to the domestic industry caused by the dumped imports.  
The request must be made by any interested party of the original investigation or the last sunset 
review, w hich must submit a written petition indicating that the circumstances that justified the 
application of the anti -dumping duty have changed. The change in circumstances must be significant 
and lasting, not being shaped by oscillations or fluctuations inhere nt to the market, among others. 
A minimum of one year must have elapsed since the application, amendment, extension or extension 
of a definitive anti -dumping duty.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.6 Anti-dumping, countervailing, and safeguard measures  
Page 74, para 3.59  
The main regulatory framework amendments undertaken since Brazil's last Review concerned the 
use of electronic means, modalities applicable to fragmented industries in trade remedies 
investigations, and COVID -19-related procedural adjustments. These legislative amendments have 
been notified to the WTO and discussed in the Committees on Anti -Dumping Practices, on Subsidies 
and Countervailing Measures, and/or on Safeguards. The existing l egislation on administrative 
procedures for AD and CV investigations was also consolidated and updated. The authorities indicate 
that these amendments are being translated in view of notifying them to the WTO.  
Question № 17:  
According to the Report, the Brazilian legislation on administrative procedures for AD and 
CV investigations has been updated and is currently being prepared for WTO notification. When 
does Brazil plan to submit the notification(s) to the WTO?  
 
Reply:  
The Ordinance SECEX N o. 171 of 9 February 2022, which provides for rules relating to anti -dumping 
investigations, was notified to the WTO on 5 August 2022 under the symbol 
G/ADP/N/1/BRA/3/Suppl.18. In turn, the Decree No. 10,839 of 18 October 2021, which regulates 
administrati ve procedures relating to CVD investigations and the application of countervailing 
measures, was notified to the WTO on 5 August 2022 under the symbol 
G/SCM/N/1/BRA/2/Suppl.22. As for the Ordinance No. 172, regarding procedures applicable to 
CVD investigat ions, it is in the process of being translated to be notified to the WTO.  
 
Question № 18:  
Please clarify whether the abovementioned legislation amendments cover the investigations 
involving fragmented sectors of economy. If yes, please elaborate further on  the amendments 
made.  
 
Reply:  
The Ordinances SECEX No. 162 of 6 January 2022 and No. 171 of 9 February 2022 only consolidate 
rules related to the fragmented industries in force until then and do not introduce novelties to the 
theme.  
 
Question № 19:  
Regardi ng the regulation of investigations involving fragmented sectors of economy, we would 
appreciate further clarification on the criteria used by the investigating authority in assessing 
whether a sector of the economy is "fragmented" or not.  
 WT/TPR/M/432/Add.1  
 
- 170 - 
 
Reply:  
A fragme nted industry is considered to be one that involves a large number of domestic producers. 
This condition must be claimed by the domestic industry and will be dully analyzed by the 
investigating authority to determine whether the national production of the product in question fits 
as a fragmented industry. This determination will be motivated and will take into account, among 
other factors, the degree of pulverization of national production of the product in question and its 
distribution by size of national producers. The qualification as a fragmented industry must be 
requested by domestic producers of the like product or class entity representing them in cases of 
dumping or CVD investigations.  
 
Question № 20:  
According to the latest version of the relevant r egulations notified to the 
WTO (G/ADP/N/1/BRA/3/Suppl.19 -G/SCM/N/1/BRA/2/Suppl.21G/SG/N/1/BRA/3/ Suppl.12), an 
investigating authority has wide discretion in determining whether an industry sector is 
"fragmented" or not. What are the main procedural differ ences between investigative procedures 
with fragmented and non -fragmented industries in terms of involving third country exporters? Are 
there any plans to improve legislation in in this area, including with a view to clarify the methodology 
and criteria ap plied in determining whether the industry sector is "fragmented" or not?  
 
Reply:  
In trade remedies investigations involving fragmented industries, the deadlines for filing petitions 
and additional information to petitions and for analyzing information submitted by industries will be 
determined by the competent investigating authority, within the scope of each process, considering 
the specifics of each fragmented sector of national industry and the principles of proportionality and 
reasonable ness. Once the trade remedies investigation has been initiated, the interested parties of 
the referred procedure may appeal against the Undersecretariat for Trade Remedies and Public 
Interest's decision to enable the national production of the product in q uestion as a fragmented 
industry within thirty days from the publication of the Secretariat of Foreign Trade Circular initiating 
the respective investigation. There are no current plans to amend this legislation.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.6 Anti -dumping, countervailing, and safeguard measures  
Pages 73 -74, para 3.58  
Since Brazil's previous Review, the institutional framework on trade remedies underwent a 
transformation, resulting in the transfer of  responsibilities for public interest assessments to SECEX's  
Department of Trade Remedies (DECOM) as from 30 January 2019.66 Accordingly, DECOM was 
renamed Undersecretariat of Trade Remedies and Public Interest (SDCOM).67 In addition to its 
recently assume d public interest responsibilities, SDCOM remains in charge of carrying out anti -
dumping (AD), countervailing (CV), and safeguard investigations (i.e. fact finding and analysis).68 
Decision -making regarding the application, modification, and suspension of contingency measures, 
as well as the exporting economy's market status, remains the remit of the Council of Ministers of 
the Chamber of Foreign Trade (CAMEX), which takes into account SDCOM recommendations. CAMEX 
may levy provisional duties on imports from  the date of preliminary determination.  
 
Question № 21:  
Please provide the statistics of conducted anti -dumping, countervailing and special safeguard 
investigations that ended without the introduction of respective measures. What are (1) the industry 
sectors and (2) the exporting countries, which are subject to investigations most frequently?  
 
Reply:  
Below are the statics of the investigations that were ended without the application of the respective 
measures:  
 2017  2018  2019  2020  2021  
Original investigations ended without the introduction of measures  
Anti-dumping  1 0 1 2 5 
Countervailing  0 0 0 0 0 
Safeguard  0 0 0 1 0 
Sunset reviews ended without the extension of the measures  
Anti-dumping  1 2 7 3 5 
Countervailing  0 0 0 0 0 
Safeguard  0 0 0 0 0 
 WT/TPR/M/432/Add.1  
 
- 171 - 
 
  Furthermore, the most frequently investigated trade defense sectors are plastics and rubbers, 
chemicals and base metals. In turn, the countries that were the subject of more investigations were 
China, the United States and India.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.2 Measures Directly Affecting Exports  
3.2.4 Export support and promotion  
Page 77, para 3.73  
Enterprises that, in the calendar year preceding application to RECAP, made at least 50% of their 
total gross sa les abroad may benefit from the programme, provided they commit to attaining a 
minimum export sales threshold for the following two calendar years.  
Question 22:  
Please specify a minimum volume of export sales threshold.  
 
Reply:  
The minimum volume of export  sales threshold for the following two calendar years is 50% of the 
enterprise gross revenue.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.2 Standards and other technical requirements  
Page 87, para 3.115  
The Re port mentions that the National Institute of Metrology, Quality and Technology (INMETRO) 
continues serving as, among others, the regulatory and supervising authority for legal metrology 
and compulsory conformity assessment in the areas of security, environ mental, and health 
protection, and prevention of deceptive trade practices.  
Question № 23:  
Please specify which practices are considered as "deceptive trade practices"?  
 
Reply:  
Deceptive trade practices are non -conformities, with the potential to impact the competitiveness of 
companies, resulting from non -compliance with what is established in the measurements and 
conformity assessment procedures provided for in the regulations.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Prod uction and Trade  
3.3.2 Standards and other technical requirements  
Pages 87 -88, para 3.117  
The marketing of products and services, which are both under INMETRO's authority and subject to 
compulsory conformity assessment, remains conditional on inscription i n INMETRO's Register of 
items. In addition, importers of products regulated by INMETRO must apply for an import licence 
through Siscomex and request its analysis for approval at INMETRO. Other regulatory agencies, such 
as ANVISA, MAPA, and ANATEL, also hav e competence to require inscription in their respective 
registers. Pharmaceutical raw materials can only be imported by companies holding an authorization 
to operate in Brazil, issued by ANVISA.  
 
Question № 24:  
Please provide more information about the aut horization requirements that apply to foreign 
companies.  
 
Reply:  
Authorization requirements vary by agency. In ANVISA 's case, for instance, they are established in 
technical regulation "Resolution RDC 81/2008 ". Regarding ANATEL, according to Brazilian 
regulations (Federal Law 9472/97), telecommunications products to be sold and used in Brazil must 
have a Certificate of Conformity issued by a Designated Certification Body (OCD), indicating that 
they comply with Brazilian regulatory requirements. This certifi cate must also be 
approved/homologated by ANATEL. It is also important to note that, for imported products, the 
manufacturer must have a local representative, established according to Brazilian legislation, who 
will be responsible for the product in Brazil . Details may be found in the flowchart available in the 
following link: http://www.anatel.gov.br/Portal/verificaDocumentos/docu mento.asp?numero  
Publicacao=306743&pub=principal&filtro=1 . 
 WT/TPR/M/432/Add.1  
 
- 172 - 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
Page 30, para 3.132  
The prerequisites for the importation of products of animal (including aquatic animal) origin into 
Brazil include assessment or recognition of the exporting country's sanitary inspection systems as 
equivalent to Brazil's, accreditation of the exporting establishments, and approval of each 
establishment's products and labels. Each shipment to Brazil must be accompanied by a sanitary 
certificate issued by the exporting country's competent authorities, and carry approved labels or 
stamps. Imports of animal products and their sub -produc ts may be physically inspected at the port 
of entry, with samples taken for laboratory testing whenever necessary, depending on the foreign 
establishment's compliance record.  
Question 25:  
What are the rules and  procedures for the  adaptation of SPS measures to the regional conditions 
(recognizing the concepts of pest or disease -free areas)? Please provide the relevant legislative acts, 
if any.  
 
Reply:  
Brazil, the principle of regionalization of the SPS  Agreement  is key for preventing the spread of p ests 
and diseases and for guaranteeing a safe trade of animal and plant products. Beyonds the Normative 
Instructions from the Ministry of Agriculture and the National Programs, Brazil fully supports the 
works of the WOAH and the IPPC and applies their stan dards and recommendations.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy  
Page 92, para 3.144  
In 2019, two settlement agreements suspended CADE' s investigations of alleged abuse of dominance 
in the oil refinery market and of alleged anti -competitive practices in the natural gas market by the 
SOE Petrobras. Under the agreements, Petrobras committed to divest eight refineries, fuel 
transportation as sets, its three natural gas carriers, and any indirect ownership of gas distribution 
companies.  
Question 26:  
Which government agency oversees the fulfilment of obligations under these agreements?  
 
Reply:  
CADE and the monitoring trustee (PricewaterhouseCoo pers Independent Auditors, Inc.) are in 
charge of overseeing the fulfil ment of obligations under these agreements.7 
It must be highlighted that it is ultimately up to CADE 's General Superintendence to follow up and 
deliberate over the fulfil ment of obliga tions under these agreements (Ordinance CADE 119/2022, 
Article  2.1). After the General Superintendence 's decision, the Attorney 's General Office at CADE 
issues an opinion (Ordinance CADE 119/2022, Article 2.2). Thereafter the case -file is forwarded to 
CADE 's Administrative Tribunal, which is in charge of the final homologation as regards the fulfil ment 
of obligations under these agreements (Ordinance CADE 119/2022, Article 2.3 and Article 2.4). The 
trustee, actually, is just an intermediary. The supervision  conducted by the trustee stays under the 
lead of CADE, considering that  
it is not feasible for the Competition Authority to regularly supervise if commitments are being met. 
Hence, the competition authority advises the Applicants to appoint a monitoring trustee, who 
oversees the performance of the commitments undertaken by the applicants during the divestiture 
process. As an intermediary, the duties of a monitoring trustee include preserving the divested 
business up to its transfer, monitoring the carve -out process of the divestiture package, searching 
for an appropriate buyer, and tracking compliance with behavioural remedies.  
 
 
7 CONSELHO ADMINISTRATIVO DE DEFESA ECONÔMICA (Cade). Opinion 71/2020/UCD/PFE -CADE -
CADE/PGF/AGU. Available at: 
https://sei.cade.gov.br/sei/modulos/pesquisa/md_pesq_documento_consulta_externa.php?DZ2uWeaYicbuRZE
FhBt-n3BfPLlu9u7akQAh8mpB9yPIvzDVIs8eVYiauEPKGkng2MsiyLL85SpH0RkAZ8biKFs _QYxGVGriC -
2c_RQzXTGshTd9TF5yJGKOcMCZzgY8 . Access: 11/11/2022, Items 3, 25, 61.  WT/TPR/M/432/Add.1  
 
- 173 - 
 
  4 TRADE POLICIES BY SECTOR  
Question 27:  
According to the Report, local content requirements are maintained in the regulation of Brazil's 
industrial sector of economy. Please elaborate further on the regulatory framework for such 
requirements applied for various industries. In addition, we would be grateful if Brazil could clarify 
which government agency is dealing wit h this issue.  
 
Reply:  
Brazil does not grant subsidies contingent upon the use of domestic over imported goods in the 
industrial sector. All subsidies granted by Brazil are notified to the WTO and are consistent with 
WTO rules.  
 
4 TRADE POLICIES BY SECTOR  
Page 103, para 4.3  
Brazil is a net exporter of crude oil and importer of refined oil products. The Brazilian energy matrix 
continued to be one of the greenest in the world, and solar energy capacity increased by 70% from 
2020 to 2021, reaching 13 GW in ins talled capacity. Its state -controlled Petrobras maintained its 
dominant position both in upstream and downstream hydrocarbons activities; for the oil products 
distribution and retail markets, Petrobras sold all of its shares in BR Distribuidora, now called  Vibra 
Energia. In the natural gas sector, a new Gas Law is set to ensure an open and competitive market. 
Brazil started implementing its National Biofuels Policy (RenovaBio). During the review period, 
Brazil's installed capacity and power generation conti nued to grow in a fast pace. In July 2021, 
legislation was passed allowing for the privatization of state -owned Eletrobras.  
 
Question 28:  
Please specify the legislation applied to pricing policies of the Petrobras.  
 
Reply:  
The legislation that objectively  reaches Petrobras when it comes to its pricing policy is: 
Law No. 9,478, of 1997 (art. 61); Law No. 13,303, of 2016 (art. 90); and Law No. 6,404 of 1976 
(art. 117). Furthermore, as one of the economic agents authorized to sell oil and derivatives, the 
company must observe the broader legal framework, such as Law No. 12,529, of 2011.  
 
4 TRADE POLICIES BY SECTOR  
4.3 Manufacturing  
4.3.3 Border measures  
Page 138  
Question 29:  
According to the Report, the number of imported manufactured goods subject to non-automatic 
licensing, quotas and other import restrictions remains uncertain, yet significant. What steps is 
Brazil taking to ensure transparency in the administration of these measures? Where can exporters 
find the list of the measures in force?  
Reply:  
All information is publicly available in SISCOMEX. Administrative treatment is listed in the following 
address: https://www.gov.br/siscomex/pt -br/informacoes/tratamento -administrativo -
1/tratamento -administrativo -na-importacao/ta_lpco_att_imp.xlsx . 
 
4 TRADE POLICIES BY SECTOR  
4.3 Manufacturing  
4.3.8 Other  
Page 143, para 4.152  
The renewal and effective e ntry into force of the 2013 Special Regime for the Development of the 
Fertilizer Industry (REIF), which aimed to provide to fertilizer producers tax benefits, has been under 
consideration in the Chamber of Deputies since 2021.  
 
Question 30:  
Could Brazil ex plain the terms of obtaining the mentioned tax benefits?  
 
Reply:  
Although Law No. 12,794, of 2 April  2013, instituted the REIF, this regime is not yet applicable. It 
is necessary to issue a decree regulating the regime, which is not expected to happen.  
  WT/TPR/M/432/Add.1  
 
- 174 - 
 
EUROPEAN UNION  
WT/TPR/G/432 – Government report BRAZIL  
 
1 OVERVIEW  
2 GENERAL  ECONOMIC  ENVIRONMENT  
2.1 MACROECONOMIC  OVERVIEW  
2.2 GENERAL  LEGAL  AND  REGULATORY  FRAMEWORK  
2.2.6  GOVERNMENT  PROCUREMENT  
Paragraph 2.57, page 13:  "… Brazil started in 2020 its negotiations to access the Global Procurement 
Agreement (GPA) of the WTO. In June 2022, Brazil presented its final offer for accession to the GPA 
and, as of August 2022, is awaiting the answer by the signatories".  
EU question  1: 
What are the plans of Brazil with regard to its ongoing negotiations for the accession to WTO GPA?  
Reply:  
Brazil submitted a revised offer for the GPA accession in November 2021 and its final offer on 
14 June 2022. Brazil is still under internal consultations regarding the content of the communication 
referenced in Notes 4 and 5 to Annex 3 of the final offer. Brazil will soon reply and circulate the 
remaining questions concerning clarifications and comments on the final offer and hopes to  continue 
the productive engagement to advance and conclude its accession.  
 
2.3 SOCIAL  POLICIES  
Paragraph 2.71, page 15:  "Brazil is also continuing to move forward in social development by 
strengthening its policies to fight forced labour and child labour by i mplementing plans, programs 
and actions, in line with international labour standards, to promote decent work. These policies also 
help to improve social inclusion and fight against business illegal competitive practices. Between 
2017 and 2020, Brazilian au thorities rescued 6,426 people from forced labour and removed 8,194 
children from work".  
EU question 2:  
Could Brazil please provide more detailed information on current policies and plans to fight forced 
labour and child labour and provide recent statistic s if available?  
Reply:  
Brazil is taking comprehensive measures in order to combat forced and child labour.  
CHILD LABOUR  
Brazil has a well -developed regulatory framework with regard to the eradication of child labor and 
the protection of adolescent workers. Such regulations enshrine four basic fundamental rights:  
a) The right not to work for children and adolescents under the age of 16 years;  
b) The right to protected work for adolescents aged 16 and 17;  
c) The right to job training for ad olescents, from the age of 14 years;  
d) The guarantee of labor rights.  
The Federal Constitution is the foundation of the current legal framework, through the provisions 
laid down in article 7, item XXXIII, which states the following:  
"prohibition of night,  dangerous, or unhealthy work for those under eighteen years of age, 
and of any work for those under sixteen years of age, except as an apprentice, for those 
above fourteen years of age; "  
Another important provision is article 227, which confirms the prin ciple of integral protection of 
children and adolescents in Brazil, under the following terms:  
Article 227. It is the duty of the family, society, and the State to ensure children, adolescents, and 
young people, with absolute priority, the right to life, health, nourishment, education, leisure, 
professional training, culture, dignity, respect, freedom, and family and community life, as well as 
to guard them from all forms of negligence, discrimination, exploitation, violence, cruelty, and 
oppression. (...)  WT/TPR/M/432/Add.1  
 
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  Internationally, in addition to the 1989 Convention on the Rights of the Child, Brazil is a signatory 
to International Labor Organization Conventions n. 138, on the minimum age for work, and 182, on 
the worst forms of child labor.  
With regard to the minim um age for work in Brazil, it is worth noting that the country complies with 
the provisions of ILO Recommendation n. 146, which establishes, in its article 7(1), that "Members 
should take as their objective the progressive raising to 16 years of the minimu m age for admission 
to employment or work (...) ". 
Regarding the worst forms of child labor, in compliance with the provisions of Articles 3(d) and 4, of 
ILO Convention n. 182, Brazil maintains a list (Decree n. 6,481/2008) of 89 jobs considered harmful 
to health and safety and 4 jobs harmful to morality, and therefore banned for those under the age 
of 18 years.  
At the infraconstitucional level, the following norms related to the protection of children and 
adolescents are relevant:  
a) Child and Ad olescent Statute - which enshrines, in its set of provisions, the Doctrine of 
Integral Protection; and the  
b) Consolidation of Labor Laws - which contains a set of norms (article 402 to 411) aimed 
at protecting children and adolescents in the workplace.  
Finally, Decree n. 9,579/2018 consolidates normative acts enacted by the federal executive branch 
that deal with infants, children and adolescents and apprentices, as well as with the National Council 
for the Rights of Children and Adolescents, the Nationa l Fund for Children and Adolescents, and 
federal programs for children and adolescents, and other provisions.  
The mentioned norms include, among other provisions, the standards for the institution of 
apprenticeship, which enshrine the right to professional  qualification for the adolescent, starting 
from the age of 14 years.  
The apprenticeship aims to ensure the apprentice, enrolled in an apprenticeship program, methodical 
technical and professional training compatible with his or her physical, moral and psy chological 
development.  
In addition to the comprehensive legal framework that Brazil has enacted to prevent and fight 
against child labour, the country has also developed and put in place a variety of policies, programs 
and institutional mechanisms, which contribute to that end.  
To that effect, the National Commission for the Eradication of Child Labor (CONAETI), established 
through Decree n. 10574/2020 is in charge of monitoring and following up on the implementation 
of the National Policy for the Prevent ion and Eradication of Child Labor. CONAETI 's mandates also 
include (i)  to elaborate a Working Plan for the Prevention and Eradication of Child Labor and the 
Protection of Adolescents; (ii) to assess the compliance between ILO Conventions nº 138 and nº 182 
and the national legislation, in order to propose the necessary legislative adaptations; (iii)  to 
elaborate a List of the Worst Forms of Child Labour (List TIP); and (iv) to propose monitoring 
mechanisms for implementation of the Convention nº 182.  
The Labor Inspectors ' competence to inspect child labor is based mainly on the 1988 Federal 
Constitution, the Regulation of Work Inspection (Decree n. 4552/2002), and the Convention n. 81 
of ILO, about labor inspection. There is a specific unit in each federa te unit to conduct the actions of 
combating child labor.  
During the Covid -19 pandemic, according to guidelines issued to the inspection activities, inspections 
involving relevant evidence of child labor were considered urgent.  
Regarding data, Brazil relies  on an important database for establishing and planning actions and 
policies to combat child labor. It comprises data made available by the Brazilian Institute for 
Geography and Statistics - IBGE, specially, gathered from the demographic Census, the Rural Census 
and the National Household Sample Survey (PNAD).  
According to the IBGE data, in 1992 Brazil had little more than 8,4 million children and adolescents 
in child labor situation. Today, according to the last data from PNAD 2019, there are fewer than 
1,8 million  children and adolescents with ages from 5 to 17 in situations regarded as child labor, 
which correspond to 4.6% of the total population of this age group.  
Within the total of children and adolescents in child labor situation, 819 thousand are not  old enough 
to be working. The remainder, 950 thousand, are adolescents legally of working age, but considered 
to be performing prohibited activities, or in prohibited conditions, as stated in the current legislation, 
including informal work (not registere d in the Work and Social Security Card). Comparing the IBGE 
data from 2016 and 2019, a decline is observed, in absolute numbers, of 357 thousand children and 
adolescents in child labor situation.  WT/TPR/M/432/Add.1  
 
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FORCED LABOUR  
Brazil applies a a comprehensive approach in p reventing and confronting forced and slave like labor, 
aimed not only at combating those who recruit and traffic workers and exploit labour in conditions 
analogous to slavery, but also at dealing with the multiple causes that expose people and groups in 
vulnerable situations to a greater risk of victimization.  
The creation of special mobile inspection groups dates back to 1995. The inspections groups are 
made up of labor auditors, labor attorneys, federal police and federal road police, which can be 
dispatc hed throughout the country to apply "in loco" measures to rescue workers, ensure payment 
of reparations, impose fines, include workers in social programs that prevent their re -victimization 
and preserve the necessary conditions for future criminal and civi l accountability of perpetrators. 
According to estimates published by the Ministry of Labor and Social Security, in 2021, more 
than 55,000 workers have been rescued and assisted by the special groups over the course of 
26 years of operation.  
In 2003, the 1 st National Plan for the Eradication of Slave Labor was launched, together with the 
establishment of the National Commission for the Eradication of Slave Labor (CONATRAE). 
CONATRAE is integrated by representatives from different public bodies and branches of power, in 
addition to third sector organizations. Its main role is to coordinate and evaluate the implementation 
of actions provided for in that National Plan.  
Another important measure to combat slave labor was the creation of a register of employers w ho 
have subjected workers to conditions analogous to slavery, also known as the "dirty list of slave 
labor". The register has been used since 2003 as a parameter to evaluate the behavior of companies 
in terms of social responsibility, serving as an indicat or for the Brazilian government not to finance, 
through banks or with public resources, employers who have been judged administratively 
responsible for the exploration of labour in conditions analogous to slavery. The register of employers 
also began to be  used, progressively, by companies concerned with decent work in their value chains 
and in their commercial transactions.  
Law No. 10803, also adopted in 2003, amends Article 149 of the Penal Code, typifying forced labor 
or labor under conditions analogous to slavery more broadly than the applicable international 
definition, by including, among the elements of that crime, the submission of an individual to 
exhausting hours and degrading working conditions, as well as debt slavery.  
In June 2014, Con stitutional amendment nº 81 was approved, to alter Article 243 of the Federal 
Constitution, in order to include rural and urban properties where exploitation of labor under 
conditions analogous to slavery occurs, as possible object of expropriation and for  agrarian reform 
and programs of popular housing, without any compensation to the owner and without prejudice to 
other sanctions provided for by law.  
In 2017, the Federative Pact for the Eradication of Slave Labor was instituted. The pact involves the 
union, the states and the municipalities in the implementation of measures at the level subnational 
for the prevention and fight against work in conditions analogous to slavery and provides, among 
other actions, the creation of commissions and the elaboration of state plans to confront slave labor.  
Apart from the abovementioned measures to fight forced labor, on 6 October  2021, Ordinance n. 
3,484 established the National Procedures to Support Victims of Forced Labor in Brazil This document 
focuses on the provis ion of care to victims, through an integrated approach.  
The Brazilian government has remained committed to promoting measures for the prevention and 
confrontation of forms contemporary views of slavery, both within . 
domestically as well as internationally.  It is worth recalling that Brazil has shared its experiences in 
the prevention of and fight against forced labor through many trilateral and south -south cooperation 
projects, promoted in partnership with the ILO.  
Paragraph 2.72, page 15:  "Brazil is also i mplementing social dialogue practices and technological 
tools in order to inform, train and make the social actors aware of the national law system and the 
international labour standards in order to help businesses achieve sustainable decent work across 
the country".  
EU question 3 : 
Could Brazil please provide further details on the social dialogue practices and technological tools 
mentioned in the paragraph above?  
Reply:  
The federal government concluded, in November 2021, in full compliance social dialogue 
mechanisms, the approval of the Infralegal Labor Regulatory Framework. The new regulatory WT/TPR/M/432/Add.1  
 
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  framework was able to review and simplify over a thousand decrees, ordinances and labor normative 
instructions, which were then consolidated into just 15 standards.  
 According to the Ministry of Labor, the simplification constitutes the first complete revision of all 
these texts, to be carried out in compliance with social dialogue standards. Among the main points 
discussed is the creation of the Permanent Program for Simplifying and Debureaucratizing Labour, 
which will cause the norms to be reviewed every two years.  
In the field of technological tools, the government has developed several applications with services 
aimed at the worker and the employer.  
The most import ant may be the digital work card. The physical work card is a booklet that records 
the person's lifetime employment contracts. The application compiles this information, allows the 
worker to apply for unemployment insurance and verify salary allowance data , for example.  
 Another relevant app is « Meu INSS ». INSS stands for Social Security National Institute, the 
government agency responsible for all kinds of leaves, retirement and other pension benefits. The 
application facilitates legal procedures and th e electronic submission of documents.  
 A third application refers to fighting unemployment. « SINE FACIL » takes care of unemployment 
insurance actions and database management of job openings. The version «employer» allows to 
offer job vacancies, make sea rchs in a curricula database, select candidates, elaborate an interview 
calendar and communicate the results of a selection process. On the jobseeker´s side, the 
"employee» version allows to upload personal and professional data, search for job vacancies, 
schedule interviews, and follow -up on selection processes.  
 
3 TRADE  POLICY  DEVELOPMENTS  
3.3 MEASURES  DIRECTLY  AFFECTING  IMPORTS  
Paragraph 3.12, page 17 : "SECEX only imposes automatic import licensing requirements to imports 
under the suspension and exemption of drawback special regime and non -automatic -import licensing 
requirements to imports of used goods, operations subject to similarity examination and those 
supported by tariff quotas".  
 
Paragraph 3.13, page 18:  "As a result of measures adopted to  reduce non -tariff barriers associated 
with the Brazilian import licensing regime, the number of licenses issued by SECEX decreased 
from 1.2 million in 2019 to 380,000 in 2021".  
EU question 4:  
Could Brazil clarify whether the import licences referred in th is section and the data reported in 
para. 3.13. cover both the automatic and non -automatic licences required for products listed 
under  "administrative treatment"? If not, could Brazil provide similar data on the scope of such 
licences and the average time for processing?  
 
Reply:  
The data reported cover automatic and non -automatic licences. The percentage of non -automatic 
licences eliminated was 77%.  
 
4 TRADE  INSTITUTIONAL  AND REGULATORY  FRAMEWORK  
4.1 CROSS -CUTTING  ISSUES  
4.1.1  IMPLEMENTATION  OF GOOD  REGULATORY  PRACTICES  
Paragraph 4.5, page 25:  "In June 2022, the OECD Review of Brazil's Regulatory Reform was 
completed. The Review analyzed sectors that create barriers to competition, such as regulations that 
create obstacles to the entry of firms, inhib it the entry of firms, or restrict activities in professional 
and network sectors. In a complementary way, the review also identified government efforts to 
develop policies and tools to improve the quality of regulations, such as ex ante  assessment of draft 
regulations, stakeholder engagement in rule making, and administrative simplification. Based on its 
recommendations, action plans are being drawn up for the implementation of initiatives that bring 
the country closer to world best prac tices".  
EU question 5:  
(i) In light of the recent OECD Review of Brazil's Regulatory Reform and of Brazil's objective 
of regulatory simplification, can Brazil share information about the steps it intends to 
take to implement the OECD recommendations on adminis trative simplification?  WT/TPR/M/432/Add.1  
 
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Reply:  
Brazil does not have a specific and clear program on administrative simplification, only preliminary 
studies and discussions on how to implement this (with the quantification of regulatory costs and 
goals for regulators). Ho wever, administrative simplification is a reality in several programs already 
established. For example, the Redesim and the Digitization of Public Services program.  
The National Network for the Simplification of Registration and Legalization of Companies a nd 
Businesses - Redesim was created by the Federal Government through Law No.  11.598/2007 based 
on the following premises: to abbreviate and simplify procedures for opening companies and to 
reduce time and cost for registration and legalization of companie s, thus reducing bureaucracy to 
the minimum necessary. Redesim is a network of computerized systems necessary to register and 
legalize companies and businesses, both within the Union, States and Municipalities. It has made 
possible the standardization of p rocedures, increased transparency and reduction of costs and 
deadlines for starting a business. This entire computerized, linear and unique process is composed 
of the systems of the institutions that participate in it with automatic communication. Among th e 
partners are the registration bodies (Boards of Trade, Civil Registry Offices of Legal Entities and 
Order of Attorneys of Brazil - OAB), tax administrations at the federal, state and municipal levels 
and licensing bodies, in particular the Firefighters, Health and the Environment departments.  
The Digitization of Public Services program is a government endeavor to digitize all public services 
offered to citizens. The digitization of public services generated savings of BRL 2 billion per year, of 
which BRL 1.5 billion for the population and BRL 500 million for the government. The estimate is 
contained in the balance sheet released today (8) by the Special Secretariat for Debureaucratization, 
Management and Digital Government of the Ministry of Economy 
(https://agenciabrasil.ebc.com.br/economia/noticia/2021 -01/digitalizacao -de-servicos -publics -
generates -economy -of-r-2-bi-per-year). Currently, the gov.br portal offers 4,137 services from 
193 federal agencies, of which 2,670 (64.5%) are fully digitized. The por tal also provides 
640 services (15.5%) partially digitized, with steps performed on the portal, but which still require 
some face -to-face procedure, such as delivery of documents. Finally, there are 827 non -digital 
services (20%), which can only be started  on the website, but require physical presence in the other 
phases.  
 
(ii) How does Brazil intend to use the opportunity of the ongoing review of alcoholic beverages 
standards to simplify regulatory requirements and lower non -tariff barriers? Especially wit h regards 
to definitions not in line with international standards and restrictive analytical parameters – for 
imported alcoholic beverages?  
(iii) Has it any plans to simplify import requirements for said products, as part of 
OECD's  recommendation to take s teps to permanently reduce tariff and non -tariff barriers and to 
further automatize and streamline trade formalities?  
 
Reply:  
Regarding the review of Federal Decree 6.871 of 4 June 2009, regulating the Beverage Law 8.918 
of 14  July 1994, Brazil would like to note that it has been notified to the TBT Committee with nº 
G/TBT/N/BRA/1145/Add.1. We welcome the comments and contributions received from several 
Members in reply to our public consultation. Brazilian authorities are currently reviewing all of them 
and we would like to assure that they will be duly considered.  
In the next steps of this regulatory process, we will publish our answers to the comments and also 
a revised draft regulation. This revised draft will be notified to all Members, and further comments 
will be accepted. A public hearing on the subject is scheduled for the first half of 2023.  
The Decree will only deal with the definitions of beverages, without detailing values or limits related 
to analytical parameters (PIQs). These will be dealt with through complementary Ministerial Acts. 
Additionally, in the revision of the Decree and in the edition of other normative acts, one of the main 
principles to be observed is the alignment with existing international standards.  
4.1.3  TRADE FACI LITATION  
Paragraph 4.21, page 28  : "In 2021, the RFB -managed AEO Program added the participation 
of SECEX and initiatives are under way for the inclusion of the Secretariat of Animal and Plant Health 
and Inspection (SDA), the National Agency for Civil Avia tion (ANAC), the Brazilian Health Regulatory 
Agency (ANVISA), the Brazilian Army, and the National Institute of Metrology, Quality and 
Technology (INMETRO)".  WT/TPR/M/432/Add.1  
 
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  EU question 6:  
Could Brazil please give further details on the initiatives under way and any plans  to include other 
administrative bodies in the AEO programme?  
Reply:  
ANAC announced in March 2022 the conclusion of the pilot project of the AEO programme and 
negotiations were initiated for the publication of a normative act and the adaptation of its syst em. 
Initiatives for the inclusion of other agencies are part of Brazil's National Trade Facilitation 
Committee Work Plan.  
4.1.4  SANITARY  AND  PHYTOSANITARY  ISSUES  
Paragraph 4.29, page 29:  "Since the creation of the WTO, Brazil has signed more than 30 bilateral 
agreements on sanitary and phytosanitary matters, based on SPS Agreement principles, besides 
several regional agreements. The main purpose of these agreements is to identify common r ules, 
simplify import controls, provide greater predictability to the parties by establishing timeframes, 
harmonize certification requirements, and facilitate bilateral trade and the entry of selected 
products".  
EU question 7:  
Could Brazil provide updated information on the general conditions for the import of organic products 
in its territory?  
 
Reply:  
Imported products, to be marketed in the country as organic, must comply with Brazilian regulations 
for organic production and:  
I - have certification granted by an organic conformity assessment body accredited by the Ministry 
of Agriculture, Livestock and Supply; or  
II - be from a country that has an equivalence agreement or mutual recognition of organic conformity 
assessment systems with Brazil.  
Law nº 10,831, published on 23 December  2003, established the general rules for the production 
and marketing, including labeling, of organic products in Brazil. Decree nº 6.323/2007 brought more 
specific rules regarding organic agriculture. It was developed in a participatory way, involving the 
entire organic production network and various representatives from the civil society, as well as 
technicians, researchers, extension workers and consumers.  
All the rules in force regarding the commercializati on of organic products can be accessed, in English, 
through the following link:  
https://www.gov.br/agricultura/pt -br/assuntos/sustentabilidade/organi cos/legislacao/ingles . 
There are no specific phytosanitary and sanitary treatments for these products.  
4.1.7  INTELLECTUAL  PROPERTY  
Paragraph 4.64, page 35:  "Brazil is now on final proceedings to accede to the Hague system for 
registering industrial designs, and to launch a new version of the Industrial Designs Manual".  
EU question 8:  
Is Brazil evaluating the possibility to accede to the WIPO Copyright Treaty and the 
WIPO  Performances and Phonograms Treaty, in order to update the protection of copyright and 
relate d rights to the needs of the digital environment?  
 
Reply:  
The draft presidential message proposing accession to the WCT is still under consideration by the 
Chief of Staff Office of the Presidency and the General Secretariat of the Presidency of the Republi c, 
according to the usual procedure for forwarding proposals for normative acts to the head of the 
executive branch. There is no timeframe for the executive branch to send Congress a proposal for 
accession to the WCT, especially considering that a governme nt transition is underway. As for WPPT, WT/TPR/M/432/Add.1  
 
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on 19  July 2022, through Message nº 390, the head of the federal executive branch already sent to 
the National Congress, for analysis and approval, a proposal for accession to the aforementioned 
Treaty.  
 
Paragraph 4. 56, page 34:  "As part of the efforts to improve the Brazilian Intellectual Property  (IP) 
system, the Brazilian Government launched its National IP Strategy (NIPS) in 2021. (…) The strategy 
is composed by 210 actions divided in 7 main axes, to be implemente d in the next 10 years: (…) 
(v) Enforcement and legal certainty (…)"  
EU question 9   
(i) Can Brazil provide further information on efforts planned to tackle trade in counterfeit goods, 
including landlord liability, at marketplaces such as the shopping mall at 25 de Março in São Paulo, 
and counterfeit production centres such as Nova Serrana, Minas Gerais?  
(ii) Could Brazil please explain what steps it is planning to ensure a sufficient number of judges are 
trained in the field of intellectual property, as env isaged in its national strategy?  
 
Reply:  
The National Council for the Combat of Counterfeiting (CNCP) encourages the establishment of 
partnership among different government institutions to combat piracy and counterfeit production. 
In the case of marketplaces, the Federal Revenue Service (RFB) organizes law enforcement 
operations which may result in seizure of goods and closure of shops. The cooperation from 
enterprises that have been offended is essential to initiate the operations.  
There has been  active engagement on judges interested in intellectual property issues. Training and 
discussions are led by the National Justice Council (CNJ), which coordinates a group of those judges. 
There is also a very fruitful cooperation with WIPO in training of j udges in the field of IP, as well on 
exchange of related information and best practices.  
Paragraph 4.59, page 34:  "One of the main actors in the Brazilian IP System, the National Institute 
of Industrial Property (INPI – the Brazilian patent and trademark office) has continued to improve 
its services, underscoring the relevance attributed to the protection and enforce ment of IP rights, 
given that Brazil pursues further social and economic development, respecting, at the same time, 
the balance between rights and duties among producers and users of technology".  
EU question 10 : 
Brazil's report (4.59 -4.65) highlights one o f the main actors in the IP system, the National Institute 
of Industrial Property. What resources can expected to be provided under future National Budgets 
for the Institute to continue to carry out essential tasks such as reducing the backlog of patent 
applications? To what extent can the Institute be expected to obtain the financial and administrative 
autonomy envisaged in law 9.279 of 14/05/1996?  
 
Reply:  
The problem of budget constraint and the contingencies faced in recent years by the Federal 
Governmen t not only impacted the INPI, but the entire Brazilian public administration, so the 
provision of ideal budgetary conditions to the INPI depends on the conditions of the federal public 
budget in general.  
The budget of the federal public administration is p repared by the Executive Branch annually and 
proposed in the Annual Budget Law (LOA), which must be approved by the National Congress. The 
budget assigned to each government agency in the LOA is a composition of balance between 
revenues and expenditures of  the different federal public institutions.  
Proposals to grant greater financial autonomy to the INPI are evaluated by government institutions, 
but the more autonomy is desired, the greater the legal -institutional impact on the INPI. Therefore, 
any measure  needs to be studied with caution and its impacts need to be mapped.  
4.2 SECTORAL ISSUES  
4.2.2  AGRICULTURE  
Paragraph 4.92, page 39:  "Brazilian grain production in 2021 -22 will probably reach 272.5 million 
tonnes, 29% higher than in 2016 -17, in spite of adverse weath er conditions in some important 
agricultural states".  WT/TPR/M/432/Add.1  
 
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  EU question 11:  
Could Brazil explain what factors are behind the increased production of grain? Could Brazil indicate 
whether there was an increase in the arable land area or a change in the crop compos ition?  
 
Reply:  
For the upcoming harvest, the first estimate indicates a production volume of 312.4 million tons, 
15.3% or 41.5 million tons more than in 2021/22. Production growth is owed to increase both in  area 
and in productivity, as well as expectation of favourable weather conditions.  
In what regards the planted area, it is expected that 76.6 million hectares will be cultivated, an 
increase of 2.9% over the previous harvest. It is worth noticing that up to three agricultural crops 
are grown throughout the year in Brazil. Sowing of first -crop occurs between the end of August and 
December. Sowing of second - and third -crops and of winter crops, which total about 
24 million  hectares, start from January on, after the harvest of the first -crop, in the same area. 
Thus, for all crops, approximately 52.6 million hectares are used.  
The estimated increase in productivity in Brazil is due to the intensive use of technology, such as 
the use of more adapted and productive seeds; soil management, use and con servation; irrigation, 
and integrated pest management.  
In summary, the main factors responsible for the increase in production in Brazil are:  
(i) conversion of areas used for extensive cattle raising, which has been replacing the use of natural 
pastures wi th cultivated grasses and feed, into arable areas;  
(ii) technological knowledge, such as genetic material adapted to climatic conditions, mechanization 
and computer technology used by producers;  
(iii) modernization of the transport infrastructure, with exp ansion of the railroad and port networks.  
From a market point of view, the profitability of crops such as soybeans, corn, and cotton, which 
have good liquidity and low world stocks, guides the increase in production. Furthermore, the outlook 
is for continu ed strong demand for these products in the international market, considering that oil 
prices are still at high levels, which favours the demand for biofuels, which in turn contributes to 
maintaining good prices for soybeans and corn. The perspective of gro wth in the area of soybeans 
also creates a good perspective of growth in the area of second -crop corn in Brazil.  
Total factor productivity (PTF), which aims to indicate the efficiency with which the economy 
combines all of its inputs to generate output, in  the Brazilian agricultural sector grew, in average, 
3.11% annually over the period 2000 -2021. Technology improvements explained most of the growth 
in the gross value of production (~60%).  
PTF is the ratio between the total product index (IP) and the input  index (II). The IP is obtained from 
the quantity produced of each product in a given year and the participation of each product in the 
total value of agricultural production in a given year. II is obtained from the quantity of each input 
and the share of each input in the total cost of production.  
Over the period 2017 to 2021, TFP, IP and II are estimated as follows:  WT/TPR/M/432/Add.1  
 
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The IP presented, between 2017 and 2021, strong sensitivity to rainfall, drought and frost events, 
while the II to capital allocation (mach inery, equipment, fertilizers and pesticides).  
Those numbers, which do not refer only to grains, but to all products from temporary crops (30), 
permanent crops (34), animal production (8), and animal production (carcasses) (3), aim to 
represent the perform ance of the Brazilian agriculture and cattle raising sector in a context of climate 
and supply shocks, especially of capital goods and services.  
For further details see:  
GASQUES, J.G.; BASTOS, E.T.; BACCHI, M.R.P.; VIEIRA FILHO, J.E.R. Produtividade total dos fatores 
na agricultura - Brasil e países selecionados. Texto para Discussão nº 2.764. Brasília: Ipea, 2022.  
2. VIEIRA FILHO, J. E. R.; GASQUES, J.G.; RONSOM, S. Inovação e expansão agropecuária 
brasileira. In: VIEIRA FILHO, J.E.R.; GASQUES, J.G. (Org.) . Uma jornada pelos contraste do Brasil: 
cem anos de Censo Agropecuário. Brasília: Ipea, 2020. p. 121 -134. 
WT/TPR/S/432 – WTO Secretariat report BRAZIL  
 
1 ECONOMIC  ENVIRONMENT   
1.2 RECENT ECONOMIC DEVELOPMENTS  
1.2.4  STRUCTURAL POLICIES  
1.2.4.1  TAX REFORM  
Paragraph 1.11, page 24:  "Although tax reform remains a priority for the administration, during the 
review period no changes were completed in this area. A 2021 tax reform proposal inter alia intends 
to: (i) unify the PIS (Program de Integracao Social) and COFINS (Contrib uição para Financiamento 
da Seguridade Social) taxes into a federal VAT (CBS) at a non -cumulative 12%; (ii) reduce the 
corporate income tax rate (CIT or IRPJ) from 34% to 27% or 26%; (iii) reintroduce dividend taxation 
(at 15%, now tax free); (iv) eliminat e interest payments on net equity deductions from the IRPJ; 
WT/TPR/M/432/Add.1  
 
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  (v) tax accrued capital gains in closed -end investment funds; and (vi) increase the personal income 
tax (PIT) exemption threshold by 31%".  
EU question 12:  
(i) Could Brazil please provide an update on  its efforts to simplify the tax system and 
eliminate discriminatory application of the special services tax (CIDE)?  
Reply:  
The government has been considering the possibility of gradually reducing the CIDE tax rate.  
 
(ii) Can Brazil inform about a timeline for  the 2021 tax reform proposal regarding its 
approval and the implementation?  
Reply:  
With respect to the tax reform related to Income Tax, it is worth mentioning that the bill was 
approved by one of the houses of Congress (House of Representatives) and is currently 
pending  approval of the Senate. For the indirect taxation, the bills are still waiting for approval of 
both houses. The intention of the current government was to have both reforms implemented 
already in 2022. However, due to the legislative proc ess, this has not happened. In spite of this, the 
tax reform is still on the agenda and is a priority for Brazil.  
 
2 TRADE AND INVESTMENT REGIMES  
2.2 TRADE POLICY FORMULATION AND OBJECTIVES  
2.2.3  TRADE LAWS AND REGULATIONS  
2.2.3.2  TRANSPARENCY AND E -GOVERNMENT  
Paragraph 2.23, page 42:  "In 2019 concern was expressed by the OECD Working Group on Bribery 
on actions taken by the Executive, Legislative and Judiciary Branches of the Federal State that could 
seriously affect Brazil's ability to fully meet its obligatio ns under the OECD Anti -Bribery Convention 
(under Article 5 on independent investigations and prosecutions) as law enforcement capacity to 
investigate and prosecute foreign bribery was considered as seriously threatened".  
EU question 13:  
(i) Could Brazil please provide an update on efforts planned to ensure the OECD Anti -
Bribery Convention is fully implemented, eg with regard to the independence of federal 
prosecutors and police, the capacity of the justice system to tackle complex corruption 
cases, and facilitatation of cooperation across institutions?  
Reply:  
Brazil has adopted several measures to promote the full implementation of its commitments under 
the OECD Anti -Bribery Convention.  
The Brazilian Federal Prosecution Service (Ministério Pú blico Federal – MPF) continues to expand and 
structure the work of the Special Action Groups on the Fight against Organized Crime (Gaecos), 
which have been established in 22 MPF offices throughout the country. Gaecos are a permanent 
structure within the fe deral prosecution service that replaced the model of ad hoc  task forces and is 
specialized in dealing with large and complex investigations, including in relation to corruption and 
foreign bribery.  
These institutional efforts are reflected in numbers. In 2021, MPF filed a total of 15,840 criminal 
actions. Altogether, 139 persons with privileged jurisdiction have been indicted. In the same period, 
108 new investigations were initiated, and 17 plea bargains were signed. Besides unfolding into 
hundreds of new  investigations, these agreements guarantee the recovery of money diverted from 
the public coffers and the payment of extra -penal fines.  
In the same vein, the Federal Police has also further expanded the structure and competencies of 
its Anti -Corruption Co ordination and created two additional units to handle data analysis and 
strategic knowledge to combat corruption. The Federal Police counts with a robust anticorruption 
structure, with offices in all 26 states and the Federal District that operate under th e coordination 
and supervision of the General Coordination to Combat Corruption and Money Laundering (CGRC).  WT/TPR/M/432/Add.1  
 
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In addition, the Ministry of Justice and Public Security created the National Network of Judicial Police 
in the Fight against Corruption (RENACCOR)  in order to disseminate the expertise, resources and 
knowledge acquired at the federal level to other specialized anti -corruption units of state judicial 
police forces. In 2022, every state of the federation had established a specialized unit in their loc al 
forces and joined the coordination network.  
Another important aspect in the investigation and prosecution of foreign bribery in Brazil is the 
regime for the liability of legal persons. Law 12.846/2013 provides for the civil and administrative 
liability of legal persons for illicit acts committed against national or foreign public administration. 
The Office of the Comptroller General (CGU) is responsible for investigating, prosecuting, and 
sanctioning legal persons involved in such illicit activities thro ugh the Administrative Liability 
Adjudicating Proceeding (PAR).  
Law 12.846/2013 also provides for Leniency Agreements, which are non -trial resolution agreements 
with legal persons that voluntarily admit to committing illicit acts and disclose information t o 
authorities in exchange for mitigated sanctions. This type of negotiated resolution has become a 
central tool in the fight against corruption in Brazil, including foreign bribery. As of November 2022, 
twenty leniency agreements have been successfully con cluded, resulting in the recovery of over 
BRL 15.6 billion (around USD 3 billion) to the public treasury.  
Institutional coordination within the Brazilian anti -corruption system takes place in several ways. At 
the policy level, Brazil established, in 2003, the National Strategy to Combat Corruption and Money 
Laundering (ENCCLA) as the main platform for institutional coordination and joint implementation 
of public policies and solutions to combat corruption and money laundering. In 2019, the federal 
governmen t established the Inter -Agency Committee to Combat Corruption (CICC), with the purpose 
of advising the Presidency of the Republic on the development, implementation, and evaluation of 
policies to fight corruption.  
At the operational level, the Office of th e Comptroller General (CGU), Attorney General 's 
Office  (AGU), Ministry of Justice and Public Security and Federal Court of Accounts have signed a 
cooperation agreement, under the coordination of the Supreme Court, to clarify the attributions and 
legal comp etencies of each institution regarding leniency agreements. The agreement was an 
important instrument to reinforce the legal certainty of leniency agreements, as well as to streamline 
the procedures to negotiate and conclude such agreements.  
In order to op erationalize the exchange of information obtained from collaborative plea agreements 
signed by the Federal Police and leniency agreements signed by AGU and CGU, these three entities 
also signed Implementation Protocol n. 1 (2020), resulting in a gain of sp eed and efficiency in the 
enforcement actions. It is important to note that although the Federal Prosecution Service did not 
sign the TCA, the institution participated in the technical discussions and continues to cooperate with 
the aforementioned institut ions in the joint negotiation and conclusion of leniency agreements.8 
(ii) In addition, could Brazil kindly indicate the resources it is dedicating to step up the fight 
against corruption linked to environmental crime?  
Reply:  
Corruption of public officials lin ked to environmental matters falls under the general criminal, civil 
and administrative anti -corruption framework of the federal government. Both public and private 
sector stakeholders, including natural and legal persons, must comply with the high standar ds of 
integrity set forth in Brazilian legislation.  
Regarding the public sector, all federal agencies involved in the environmental sector, such as the 
Ministry of Environment, and regulatory agencies are part of the Public Integrity System of the 
Federal Executive Branch (SIPEF). Under the supervision and coordination of SIPEF, all federal 
executive bodies must establish "Integrity Programs ", according to a structured set of institutional 
standards, with the purpose of preventing, detecting, sanctioning, and remediating acts of fraud and 
corruption, as well as ethical deviations.  
When developing Integrity Programs, public agencies and entities must consider their nature, size, 
complexity, structure and field to meet the specificities and reali ty of each public organization. The 
institutions are responsible for assessing and managing their integrity risks and vulnerabilities, 
including corruption and related offenses, and adopting the appropriate preventive measures.  
 
8 More information on leniency agreements concluded jointly by MPF, CGU and AGU can be found at: 
https://www.gov.br/cgu/pt -br/assuntos/combate -a-corrupcao/acordo -leniencia/acordos -celebrados . WT/TPR/M/432/Add.1  
 
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  CGU, the internal control ce ntral authority, is responsible for monitoring and supervising the 
implementation of Integrity Programs across the federal government, as well as providing guidance, 
training, and resources. As of 2022, 100% of the federal agencies required to adopt Integr ity 
Programs have done so. CGU publishes updated information about the agencies ' implementation 
status at the Public Integrity Portal  and offers an online repos itory of all the published Integrity 
Plans.  
Brazil also addresses the issue of integrity from the perspective of the private sector. 
CGU coordinates several initiatives and partnerships that promote a culture of private integrity, 
ensuring that private sec tor entities are well -equipped to conduct business fairly, particularly in their 
relations with the public sector, and have the appropriate mechanisms for effectively identifying, 
assessing, and mitigating corruption and money -laundering risks.  
Another ess ential tool in the fight against corruption in the environmental sector is the integrated 
ombudsman and access -to-information platform – Fala.BR . Through this centralized platform, any 
individual can make access -to-information requests, reports of wrongdoing and misconduct 
(including anonymously), complaints about the provision of public services; general requests, 
suggestions to simplify bu reaucratic procedures; and compliments to more than 2500 public bodies 
and institutions from federal, state and municipal levels currently registered in the system.  
By offering an accessible reporting channel, Brazil seeks to encourage the oversight of gov ernment 
activities by civil society organizations and individuals and timely detect problems with the provision 
of public services, misconduct of public officials, and non -compliance with law and regulations. This 
mechanism is considered of particular impo rtance for cases of corruption in the environmental 
sector, which are often first reported by civil society.  
More recently, Brazil has made significant legislative changes to strengthen measures to safeguard 
the identity of whistleblowers, create mechanisms to protect them against retaliation and 
compensate them for damages. The regulation even defined the possib ility of establishing reward 
mechanisms as a way of encouraging reporting.  
Decree n. 10.890/2021 established the competence of CGU to receive and investigate complaints of 
retaliation within the federal executive branch. CGU is responsible for, inter alia , adopting or 
determining, ex officio, protective measures; suspending administrative acts of retaliation against 
the right to report; and issuing administrative acts with a view to protecting whistleblowers.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 MEASURE S DIRECTLY AFFECTING IMPORTS  
3.1.1  CUSTOMS PROCEDURES , VALUATION , AND REQUIREMENTS  
Paragraph 3.10, page 62:  "A streamlined import clearance process, based on a single import 
declaration (DUIMP), was launched in October 2018 as a pilot project covering cert ain imports by 
sea (…) and is expected to be fully implemented by the end of 2023".  
EU question 14:  
Could Brazil further clarify how it is working to streamline customs procedures in order to tackle 
arbitrary enforcement?  
Reply:  
The possibility of using t he DUIMP has been gradually expanded, considering that it depends on the 
development of the Single Window (Portal Único de Comércio Exterior) and changes in national 
legislation. Thus, importers currently decide to register the DUIMP (in cases where this i s possible) 
or the Import Declaration. When the DUIMP is fully implemented, a plan will be made to discontinue 
the use of the Import Declaration. Importers will be duly informed, with the necessary advance 
notice, about this procedure.  
 
Paragraph 3.30, page 67:  "3.30 With a view to fostering supply -side innovation and competitiveness, 
MERCOSUR members may individually apply lower import duties on predetermined lists of capital 
goods (BK) and informatics and telecommunications equipment (BIT)…"  
Paragraph 3.31, page 67:  "As a means of addressing shortages within the common market, 
MERCOSUR members may individually apply tariff rate quotas (with an in -quota rate of 2% or zero) 
on up to 100 tariff lines at a time for up to 365 days (renewable)…"  WT/TPR/M/432/Add.1  
 
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EU Ques tion 15 : 
 
Does Brazil intend to simplify and consolidate this exemption scheme, to provide a clearer, more 
stable, and more predictable framework for stakeholders and if so how does it propose to do this?  
Reply:  
The mechanism to promote temporary tariff r eductions to address shortages of products was revised 
in 2019 and is regulated by MERCOSUR GMC Resolution 49/19. This resolution outlines, among other 
aspects, the criteria for characterizing and considering shortage situations, the limit of tariff lines 
per country, the applicable tariffs, as well as other conditions for the approval of the temporary 
reductions. Resolution 49/19 set clearer deadlines for the analysis and approval of each case by 
other MERCOSUR members. Currently there are no negotiations to change this mechanism. The 
Government of Brazil presents every request under this mechanism in the following web site: 
https://www.gov.br/produtividade -e-comercio -exterior/pt -br/assuntos/camex/estrategia -
comercial/pleitos -em-analise . 
 
3.1.4  OTHER CHARGES AFFECTING IMPORTS  
Paragraph 3.40, page 69:  "Brazil's internal taxation regime remains overly complex, including in the 
treatment of imported goods and services".  
EU question 16:   
(i) Does Brazil expect to adopt a simpler tax system during the next Trade Policy Review period? If 
so, what minimum fe atures could the new fiscal framework be expected to have?  
(ii) Would Brazil consider harmonizing the tax rates for non -molasses based rum and cachaça with 
the rates for all other spirits, regardless of their specificities, in order to ensure compatibility  with 
its WTO commitments?  
 
Reply:  
There are different bills pending in the national congress aiming at unifying and eliminating various 
indirect taxes, in addition to introducing new criteria that are more aligned to international practices, 
which should greatly reduce the complexity of our tax system. A tax reform would probably take 
place gradually, in several stages, due to its complexity and impacts.  
The IPI tax rate is individualized for each product, considering issues of essentiality and target 
audience. Thus, as cachaça is a popular alcoholic beverage, its tax rate is lower than that of other 
spirits. In any case, the applicable rate is the same for domestic cachaça and eventually imported 
cachaça. This applies to all types of alcoholic beverages, w hich have the same rate applicable on the 
domestic market or on imports  
Paragraph 3.42, page 69:  "Whereas federal taxes are automatically deducted from the importer's 
bank account upon ID registration, procedures and systems for the collection of sub -federal taxes 
vary across Brazil's federative states. In several states, presenting hard copies of tax payment slips 
remains a prerequisite for imports' release.45 The authorities indicate that all imports will be subject 
to paperless clearance and centralized collection of applicable duties and charges once the DUIMP is 
fully implemented".  
EU question 17:  
What is the timeframe for all imports to be subject to paperless clearance and centralized collection 
of duties and charges and for the DUIMP full implementat ion? 
Reply:  
The DUIMP full implementation is expected to be concluded by the end of 2024. The Management 
Committee (Comissão Gestora) of Siscomex will deliberate on this issue in its last meeting of 2022.  
 
Paragraph 3.44, page 70:  "The IPI is a federal tax levied on domestically produced and imported 
manufactured goods, following the value added principle.46 For domestic transactions, the tax is 
typically levied on the ex -factory value of a product upon its release from the manufac turing facility. 
The IPI levied on imports is based on the c.i.f. value plus the import duty and other applicable fees 
and foreign exchange charges. In principle, the same rates apply on domestically produced and 
imported goods".  
EU question 18 : 
How does B razil justify the difference in IPI tax rates applying to Cachaça and to imported spirits, 
and does Brazil intend to harmonize these tax rates to put an end to this discrimination?  
 WT/TPR/M/432/Add.1  
 
- 187 - 
 
  Reply:  
The IPI tax rate is individualized for each product, considering is sues of essentiality and target 
audience. Thus, as cachaça is a popular alcoholic beverage, its tax rate is lower than that of other 
spirits. In any case, the applicable rate is the same for domestic cachaça and eventually imported 
cachaça. This applies to  all types of alcoholic beverages, which have the same rate applicable on the 
domestic market or on imports.  
 
3.1.5  IMPORT PROHIBITIONS , RESTRICTIONS AND LICENSING  
Paragraph 3.54, page 73:  "Refusal to grant a licence may be appealed before the relevant lic ensing 
body".  
EU question 19:  
What is the procedure for such appeal and how long does it take on average to receive a final 
decision on such appeal?  
 
Reply:  
The procedures for the use of administrative appeal at the federal level are established in 
Law 9.784/99, with a period of analysis of up to 30 days.  
 
3.3 MEASURES AFFECTING PRODUCTION AND TRADE  
3.3.2  STANDARDS AND OTHER TECHNICAL REQUIREMENTS  
Paragraph 3.117, page 87:  "The marketing of products and services, which are both under 
INMETRO's authority and subject to compulsory conformity assessment, remains conditional on 
inscription in INMETRO's Register of items. In addition, importers of products regulated by INMETRO 
must apply for an import licence through Siscomex and request its analysis for approval at INMETRO. 
Other regulatory agencies, such as ANVISA, MAPA, and ANATEL, also have competence to require 
inscription in their respective registers. Pharmaceutical raw ma terials can only be imported by 
companies holding an authorization to operate in Brazil, issued by ANVISA".  
Paragraph 3.118, page 88:  "In accordance with the Economic Freedom Rights legislation (Section 
2.4.1), INMETRO has been modernizing its regulatory a pproval methods with a view to cutting red 
tape and simplifying rules".  
EU Question 20:  
In accordance with the Economic Freedom Rights legislation, is any other Brazilian entity committed 
to cutting red tape and simplifying rules (e.g. ANVISA, ANATEL, MAPA )? If so, could Brazil inform 
about the entities and the specific improvements being put forward?  
 
Reply:  
In general, Brazilian regulatory agencies, usually having a higher level of maturity than other 
regulatory bodies, are committed to the process of reg ulatory simplification and reduction of the 
regulatory burden as a whole. We can mention, for example, the National Telecommunications 
Agency - ANATEL, which, since 2018, has revoked approximately 300 resolutions 
(https://informacoes.anatel.gov.br/paineis/regulamentacao ).The Brazilian Health Regulatory 
Agency - Anvisa also has a program called "Regulatory Guillotine" which, since 2016, has revoke d 
almost 1/3 of all its regulations ( http://antigo.anvisa.gov.br/en/guilhotina -regulatoria ). As for the 
direct administration, we can mention the example of the Ministry of Agriculture, which carried out 
a major review and simplification for the release of low -risk activities ( https://www.gov.br/pt -
br/noticias/agricultura -e-pecuaria/ 2021/01/simplification -for-release -of-low-risk-activities ). 
These efforts have been intensified from 2019 with the edition of Decree n 10.139/19. As a result, 
between 2019 and 2022, 80.967 normative acts were reviewed at the federal level, of which 31.637 
were revoked and 5.102 were consolidated.  
 
3.3.6  GOVERNMENT PROCUREMENT  
Paragraph 3.155, page 95:  "From 20 16 to 2020, the amount of procurement subject to international 
competitive bidding continued to be very low, ranging from 0% to 0.23% (Table 3.18)".  
EU question 21:  
A very low percentage of the total federal procurement value is subject to international co mpetitive 
tendering. Is it expected that the 2021 Public Procurement Law will have an impact on this situation? 
If so, is there an estimation of such impact and could it be shared?  
 WT/TPR/M/432/Add.1  
 
- 188 - 
 
Reply:  
Brazil is not in a position to provide an estimation of the amount of procurement that will be subject 
to international competitive tendering. The 2021 Public Procurement Law further emphasised the 
principles of non -discrimination between national and foreign suppliers. Most importantly, Normative 
Instruction No. 1 0, 2020, by the Secretariat of Management of the Ministry of Economy (SEGES) 
amended previous regulations to allow for the registration of foreign companies not established in 
Brazil into the Unified Supplier Registration System (SICAF). As of November 202 2, there are already 
214 (two hundred and fourteen) foreign companies registered in SICAF, and thus, able to participate 
in public procurement in the federal level in Brazil, even when not established in the country.  
 
Paragraph 3.167, page 97:  "Article 26 of the 2021 Procurement Law provides that a margin of 
preference of up to 10% may be applied to domestically manufactured goods and services. The 
preference may be extended to goods and services of MERCOSUR countries, under certain 
conditions. The margin o f preference may be up to 20% for domestic goods resulting from 
technological innovation and development carried out in Brazil. The authorities indicate that this 
provision is not yet enforced due to the lack of implementing regulations".  
 
EU question 22 : 
(i) Are there plans to review the preferences to domestic suppliers/products as set out in the 2021 
Public Procurement Law?  
(ii) Could Brazil clarify what its plans are with regard to any implementing decrees of margin of 
preference?  
Reply:  
The possibility  for the Executive to set out price preferences is still available pursuant Article  26 of 
Law 14,113/21. The permission of such policy in the new Law was a decision of the Brazilian 
Congress. However, for the margin of preference referred to in art. 26, I,  to be applicable, the 
provision needs to be further regulated by means of a justified decision of the Executive. There are 
no existing decree implementing those margins. In addition, there are no plans in the medium term 
to regulate this provision by the Federal Government. In this sense, there are no margins of 
preference in force for nationally manufactured goods and services that meet Brazilian technical 
standards and, thus, no need for the extension of a preference to certain countries.  
Paragraph 3.16 2, page 97:  "As a general principle, the 2021 Procurement Law prohibits 
discriminatory treatment…"  
Paragraph 3.165, page 97 : "Possibilities continue to exist to provide Brazilian goods, services, and 
suppliers treatment more favourable than that accorded t o foreign goods, services, and suppliers ". 
EU question 23:  
(i) Does Brazil intend to eliminate or reduce some of these discriminatory elements during 
the next Trade Policy Review period?  
Reply:  
When Brazil accedes to international public procurement agreements , they enter into Brazil 's legal 
framework as a special norm, prevailing over the general laws in force that have the same coverage. 
Therefore, these agreements will prevail  over any conflicting  rules even if there are no explicit 
amendments. The non -application of the rules of preference or conditions for their application 
depends on terms of the agreement. Art. 26, I of Law 14,133/21 will not be applied in a manner 
that is contrary to provisions and commitments for covered procurement in those agreements.  
(ii) Has Brazil foreseen specific measures to improve the publicity of its international 
tenders?  
Reply:  
The National Public Procurement Portal (PNCP) was created as an official website for the centralized 
and mandatory disclosure of the acts required by the procurement law. With its exclusive and 
mandatory use from April 2023, the PNCP shall also offer a unified information system which might 
be eventually adapted to increase the publicity of international tenders, such as automatic summary 
translation of  notices into a WTO language.  
 
Paragraph 3.173, page 98:  "During the review period, a new electronic National Public Procurement 
Portal (PNCP) was launched ". 
EU question 24:   
Could Brazil clarify whether there are any plans to extend the obligation to publ ish on the National 
Public Procurement Portal (PNCP) to subcentral entities?  
 WT/TPR/M/432/Add.1  
 
- 189 - 
 
  Reply:  
The publication of the acts required by the new procurement law in the National Public Procurement 
Portal (PNCP) is already mandatory for subcentral entities of the states and municipalities from 
April 2023. The PNCP shall include, among others, the following information on contracts: I – annual 
contract plans; II – electronic catalogs for standardization; III – public notices for registration and 
pre-qualification, d irect award notices and tender documentation, and their respective attachments; 
IV – tender proposals; V – contracts and addenda; VI – electronic invoices, when applicable. Cities 
with up to twenty thousand (20,000) inhabitants shall have six (6) years of the date of publication 
of this Law to adapt to the publication.  
 
3.3.7  INTELLECTUAL PROPERTY RIGHTS  
3.3.7.1  OVERVIEW  
Paragraph 3.183, page 100:  "During the review period, INPI continued taking steps to reduce 
processing delays and its backlog of applicati ons pending review ". 
EU question 25:   
(i) Does Brazil foresee further cuts to the INPI's budget?  
(ii) How is INPI planning to address the current backlog of pharmaceuticals patent applications -of 
nearly 10 years on average?  
(iii) Does INPI foresee any me asures to increase the protection of test data submitted to the 
government?  
 
Reply:  
There is no plan to cut INPI 's budget further.  
The current average decision time for patent applications, including the pharmaceutical area, 
is 4 years, starting from the examination request. The practice of using search and examination, 
when available, for applications filed at other patent offices continues to be used by INPI. Other 
actions refer to the possibility of prioritizing the processing of patent applications in the health area, 
related to certain diseases (cancer, AIDS, covid -19, rare diseases, and neglected diseases). Besides, 
in 2021, the article 229C of the Industrial Property Law was revoked, which abolished the 
requirement for prior consent from the National  Health Surveillance Agency for the granting of 
patents for pharmaceutical products and processes. These actions will help to reduce the backlog of 
pharmaceuticals patent applications.  
INPI foresees no measure to increase the protection of test data.  
3.3.7 .2 INDUSTRIAL PROPERTY  
Paragraph 3.184, page 101:  "The authorities indicate that between 2017 and 2021, annual average 
pendency times declined as follows: industrial designs, from 15.9 to 2.5 months; geographical 
indications, from 23.4 to 20 months; and pa tents, from 11 to 5 years. Patent filings in the areas of 
(bio)pharmaceuticals and information and communication technologies had the longest average 
pendency times. During the same period, most appeals of INPI decisions related to trademarks".  
EU question  26: 
How does Brazil intend to further reduce the backlog in patent and trademark applications and to 
improve the protection of geographical indications (GIs) – notably against generic names?  
 
Reply:  
Actions with an impact on the reduction of the patent backlog, such as the use of search available 
in other offices, will be maintained. Projects are currently under way that aim to determine the 
impact of outsourcing the search for patent applications and the use of artificial intelligence tools in 
the exam to provide more agility and quality to the work of examiners, technicians, and 
collaborators. In addition, INPI leads an initiative to automate the processing of patent applications.  
INPI does not have a backlog in trademark applications. It only ha s a normal stock of requests 
required within a compatible examination period. Also, the Industrial Property Law and the domestic 
legislation that regulates GI requests already have articles that protect against generic names.  WT/TPR/M/432/Add.1  
 
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INPI continuously seeks, toget her with the competent bodies, the replacement of its staff of 
temporary and permanent examiners and technicians. Measures were also taken to provide better 
working conditions with the expansion of remote work and the signing of a cooperation agreement 
with WIPO to improve the examination system.  
3.3.7.4  ENFORCEMENT  
Paragraph 3.192, page 102:  "The authorities indicate that during the review period the most 
common types of IPR infringement included audiovisual piracy and counterfeit goods (mostly 
cigarettes and toys)".  
EU question 27 : 
Given the extent of trade in counterfeit products in the cou ntry– can Brazil explain what strategy it 
intends to put in place to address this issue?  
 
Reply:  
The National Council for the Combat of Counterfeiting (CNCP), headed by the Ministry of Justice and 
Public Security, coordinates efforts to combat counterfeit products and promote the enforcement of 
IP rights in Brazil. CNCP is composed of both government and non -government entities, including 
civil society organizations and private sector associations. In 2021, the Ministry of Justice and Public 
Security approv ed a new National Plan to Combat Piracy for the period 2022 -25. The plan sets 62 
crime -fighting targets.  
 
4 TRADE POLICIES BY SECTOR  
4.1 AGRICULTURE , FORESTRY AND FISHERIES  
4.1.3  BORDER MEASURES  
Paragraph 4.22, page 107:  "According to Brazil's recent WTO notifications and information, similar 
to past practice, no export subsidies were granted to agricultural products in the period 2017 -20.27 
Brazil's food aid abroad decreased considerably from 14,478.7 tonnes of rice in 2 018, 4,059 tonnes 
in 2019 also of rice and none in 2020.28 In 2020 and 2021, Brazil provided humanitarian financial 
aid only in fully grant form".  
EU question 28 : 
(i) Is the shift to provision of humanitarian financial aid only in fully grant form related to a policy 
decision?  
(ii) does Brazil intend to continue the provision of assistance in fully grant form in the future?  
Reply: Yes, for both items (i) and (ii).  
 
4.1.4  DOMESTIC SUPPORT  
Paragraph 4.24, page 108 + Table 4.5, page 113 : "Domestic support to agri cultural producers 
remained at a low level compared to that of OECD countries.32 According to the OECD, Brazil's total 
support estimate (TSE) to agriculture averaged 0.3% of GDP in 2018 -20 (0.35% in 2012 -15), well 
below the OECD average of 0.63% (Table 4.2 ).33 In 2020, support to farmers as measured by the 
producer support equivalent (PSE) corresponded to 1.3% of gross farm receipts in the period, also 
below the OECD average of 18.1%.34 OECD notes that, in the last five years, PSE fell both in nominal 
terms  and as a percentage of gross farm receipts".  
EU question 29 : 
Could Brazil explain what conditions, if any, related to climate change mitigating measures and 
ensuring reduced negative environmental impacts must be met in order to obtain this support?  
 
Reply: 
General environmental sustainability criteria for the Rural Insurance Premium Subsidy Program 
(PSR) and for concessional credit lines under Plano Safra are as follows:  
· A valid registration in the Rural Environmental Registry (CAR);  
· The rural property should not be totally or partially located in Conservation Units ( "Unidades de 
Conservação "), except if it the economic activity is in conformity with the Conservation Unit 
Management Plan ( "Plano de Manejo da Unidade de Conservação "); WT/TPR/M/432/Add.1  
 
- 191 - 
 
  · The rural  property should not be in the Amazon Biome if its area is under a valid embargo due to 
economic activities being undertaken in the area of this property.  
Furthermore, as an incentive for the adoption of sustainable practices, a higher premium subsidy is 
paid for those producer contracting policies and a lower interest rate is offered for those producers 
obtaining financing for activities that fall within the scope of the ABC Program (Low Carbon Emission 
Agriculture).  
4.1.4.2  MINIMUM PRICE GUARANTEES  
Paragraph 4.40 , page 115 + table 4.6, page 115 : "On the basis of these minimum guaranteed prices, 
the Government implements several price support mechanisms (Table 4.6)".  
EU question 30 : 
(i) Are the price support programmes listed in table 4.6 still operational? Given t hat they do not 
appear in the most recent domestic support notification G/AG/N/BRA/69, how are they reflected in 
Brazil's domestic support notifications?  
(ii) how does Brazil include the minimum price guarantees in the domestic support notifications?  
 
Reply: 
These programmes are part of the agricultural policy toolkit at disposal of the Brazilian government 
and may be implemented when necessary. It should be noted, however, that AGF and COV were not 
implemented during the review period.  
Whenever one of the se programs are implemented, they are included in Brazil 's notifications in the 
appropriate supporting table. For instance, PEPRO operations were included in the Supporting 
Table  DS:6 of G/AG/N/BRA/69.  
4.1.4.4  OTHER MEASURES  
4.1.4.4.3  ZONING , LAND, AND OTHER REQUIREMENTS  
Paragraph 4.48, page 119:  "Agricultural zoning requirements continue to link agricultural support to 
environment sustainability. (…) Specific programmes for both the commercial and family farm 
segments promote sustainable agricultural practice s; they include credit for plantings on 
unproductive and degraded soils, credit for forest planting, and credit to modernize production 
systems and preserve natural resources".  
EU question 31:  
Can Brazil elaborate further on how it ensures that its support  to agricultural production takes into 
account its environmental impact?  
 
Reply:  
Brazil has established Program ABC+, a specific financing line to enable the adoption of low 
greenhouse gas (GHG) emission technologies recommended in the ABC+ Plan, which is  available in 
the Crop Plan of the Ministry of Agriculture, Livestock and Supply 
(https://www.gov.br/agriculture/pt -br/subjects/agricultural -policy/ha rvest-plan/2022 -2023/ ). 
The Brazilian government has been constantly improving its rural credit granting system. In the 
2022-2023 Crop Plan, for example, several changes were made, such as adapting the ABC Program 
to the new technologies promoted by the AB C+ Plan, in addition to expanding the coverage of the 
Sectoral Plan for Adaptation to Climate Change and Low Carbon Emissions in Agriculture, with a view 
to promote Sustainable Development in PRONAF, a program that offers specific credit lines to family 
farmers.  
4.2 MINING AND ENERGY  
4.2.2  ENERGY  
4.2.2.2  POLICY AND INSTITUTIONS  
Paragraph 4.71, page 124:  "[…] Worth mentioning that nuclear energy is expected to grow with the 
start of operations by Angra 3 power plant estimated for 2026".  WT/TPR/M/432/Add.1  
 
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EU question 32:   
In addition to the start -up of Angra 3, scheduled for 2026, does Brazil plan to expand its nuclear 
powe r plants or increase this type of energy through alternatives such as mini nuclear reactors?  
 
Reply:  
The National Energy Plan (PNE 2050), published in December 2020, consists of a set of studies and 
guidelines for the design of a long -term strategy for the  Brazilian energy sector. It presents some 
scenarios that demonstrate that, given some assumptions related to technology and other energy 
sources, there would be a trend towards nuclear expansion in the horizon of 2050. However, it would 
be important to ma ke efforts to overcome some challenges, namely:  
●  Effectively communicating the role of nuclear energy;  
●  Promoting institutional, legal, and regulatory adjustments to expansion;  
●  Assessing the magnitude of the expansion associated with the implementat ion of the 
Brazilian Nuclear Policy;  
●  Ensuring the safety of nuclear facilities and the fuel cycle;  
●  Extending the lifespan of reactors and define decommissioning rules; and  
●  Expanding knowledge about national mineral resources applicable to the nucl ear fuel 
cycle.  
In the coming years, the technological perspectives related to nuclear energy will be dominated by 
the consolidation of the new generation of reactors (III+), whose first units came into operation 
in recent years around the world. The devel opment and deployment of the first small modular 
reactors (SMR), currently in the initial licensing process in several countries, are also expected. In 
the coming decades, the expansion of nuclear power generation in the world will be based on 
Generation I II+ models and SMRs.  
In Brazil, the technological option was for pressurized water reactors (PWR), the most adopted 
technology worldwide. This option will be maintained for Angra III and for new power plant projects 
that are eventually defined throughout t he 2020s. After 2030, new projects may be based on PWR, 
SMR, and fourth -generation reactor technology, if the latter reaches technological maturity and 
competitiveness.  
4.2.2.4.2  POLICY AND INSTITUTIONS  
Paragraph 4.103, page 133:  "Brazil's Ten -year Energy Expansion Plan 2030 (PDE 2030) covering 
the electricity sector consolidates strategic objectives and initiatives to improve its performance. It 
aims to anticipate discussions and assess how technological changes, combined with economic, 
environmental, and consumers' preferences, should affect the national electricity system, as well as 
the opportunities to expand the matrix of generation and transmission. The PDE 2030 indicated the 
need to invest around BRL 365 billion in generation, distribution, and trans mission of electric energy 
over the next 10 years".  
EU question 33:  
Can Brazil specify if PDE 2030 includes the possibility for households and commercial power 
producers to sell a surplus of their produced electricity from solar energy to a national grid?  
 
Reply:  
The last Ten Year Energy Expansion Plan (PDE) published was PDE 2031, which does not include the 
possibility for households and commercial energy producers to sell their surplus electricity produced 
from solar energy to a national grid.  
In Brazil, households and commercial producers can participate in the Compensation System, 
established by ANEEL Normative Resolution No. 482/2012. In this system, known as net metering, 
the active energy injected by a consumer unit with microgeneration or distributed  mini-generation 
is transferred to the local distributor and subsequently compensated with the consumption of active 
electricity from that same consumer unit or from another consumer unit of the same ownership.  WT/TPR/M/432/Add.1  
 
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  4.3 MANUFACTURING  
4.3.1  MAIN FEATURES  
Paragraph 4.118, page 136:  "Brazil has a large and diversified manufacturing sector, but while parts 
of it are thriving, others still struggle due to the "Brazil Cost" (Section 1.1); incipient research, 
development, and innovation initiatives; weak integra tion into the world economy; and punctual 
shields from external competition".  
EU question 34:  
Has Brazil considered reviewing its industry protection schemes in the short term to deal with its 
competitiveness challenges?  
Reply:  
Brazil recently reduced impo rt tariffs by 20% for 87% of products classified in the Harmonized 
System universe, which shows a tendency to withdraw protection from the national industry.  
 
4.3.3  BORDER MEASURES  
Paragraph 4.124, page 138:  "The number of manufactured products subject to non -automatic import 
licensing where quotas, policies, and other requirements are imposed continues to be high and 
unclear".  
EU question 35:  
 
(i) Could Brazil specify which tariff lines are subject to automa tic and non -automatic licen ces? 
(ii) Does Brazil foresee a further reduction of tariff lines subject to automatic and non -automatic 
import licensing requirements? If so, what would be the involved sectors and tentative calendar?  
Information on automatic an d non -automatic licen ces is available at  
https://www.gov.br/siscomex/pt -br/informacoes/tratamento -administrativo -1/tratamento -
administrativo -na-importacao/ta_lpco_att_imp.xlsx . 
Within the scope of CONFAC' s work, the existence of regulations for the application of risk 
management has been mapped, as well as the level of automation technology used by administrative 
bodies according to their risk management needs. Based on this mapping exercise, CONFAC has 
worked in partnership with the consenting bodies to develop solutions for the automation of licensing 
procedures or the release of foreign trade operations and the respective integration into SISCOMEX 
according to risk criteria related to consenting bodies ' level of maturity and number of opportunities 
to use parameters to automate licensing or border inspections. The following consenting bodies have 
developed and implemented risk management systems at different levels of maturity: Army, MAPA, 
ANVISA, SECEX, INMETRO and IBAMA.  
 
4.4 SERVICES  
4.4.1  MAIN FEATURES  
Paragraph 4.154, page 143:  "While not always producing a direct export, the performance of the 
services sector remains a key component of the country's overall export competitiveness. In 2020, 
Brazil was the world's 33rd-largest exporter (21st excluding intra -EU trade) and 24th importer of 
services (14th excluding intra -EU trade). Trade in services remains a minor component of 
Brazil's  foreign trade".  
EU question 36:   
Regarding foreign trade in services in Brazil, does Brazil intend to adopt measures to bring taxes on 
services provided from abroad in line with services provided by domestic companies?  
 
Reply:  
Brazil published Law No. 14.440, of 2  September, 2022, which authorizes the inclusion of services 
in the suspension drawback regime, as of 1  January 2023. The measu re will allow Brazilian exporters 
to acquire imported or domestic services with suspension payment of 2 (two) federal taxes, 
PIS/Pasep and Cofins, provided that these services are directly and exclusively linked to the export 
or delivery abroad of a produc t resulting from the use of the drawback mechanism.  
A reduction of CIDE -Remessas is currently being evaluated within the Ministry of the Economy.  WT/TPR/M/432/Add.1  
 
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4.4.3  FINANCIAL SERVICES  
4.4.3.2  INSURANCE  
4.4.3.2.3  REINSURANCE  
Paragraph 4.197, page 153:  "Since 2007, the r einsurance business has been open to private 
reinsurance companies, including foreign -owned and foreign -based companies. In 2017, new 
regulations facilitated for international players entering the Brazilian reinsurance market through the 
elimination of fou r classes of business from minimum insurance retention requirements. Also 
mandatory placements with local reinsurers were eliminated, as well as limits on intra -group 
cessions. Since 2019, a 95% cession from local reinsurers to foreign -owned companies has been 
established. The issuance of debentures and other financial debt instruments (insurance linked 
securities (ILS)) by local reinsurers was enabled276 and a new contractual freedom framework on 
large risks was issued".  
EU question 37:   
(i) Does Brazil fo resee to eliminate or, at least, increase the retrocession limit currently applied on 
local players willing to operate with companies located abroad?  
(ii) Does Brazil intend to eliminate the 40% preferential offer for local reinsurers, as reflected in the 
Complementary Law 126/2007?  
Reply:  
The cession limit is established by Law N° 126/2007 and has been greatly increased recently 
(through Decree 10,167/2019) from 10% (insurance companies) and 50% (reinsurance companies) 
to 95% for both local insurance and reinsurance companies. There is also no limit for cessions of 
reinsurance and retrocession for foreign admitted reinsurers. SUSEP has been conducting a revision 
of the regulatory framework on the reinsurance sector, in light of the SUSEP 2022  Regulation Plan 
as determined by Decree N° 10,139/2019 and Resolution CNSP N° 168/2007. In this context, a 
proposal under evaluation by SUSEP aims at revising rules regarding the cession limit for reinsurance 
and retrocession, eliminating the limit of ces sion for insurers and improvements of the limit for local 
reinsurers.  
The Capital Market Initiative (IMK) of 2020, conducted by the Ministry of Economy and SUSEP, 
discussed the preferential offer for local reinsurers, and its final report suggested a gradu al 
elimination of this institute, among other suggestions. However, the preferential offer is established 
by Law N° 126/2007 and any changes will require Congress evaluation and approval.  
 
4.4.6  TRANSPORT  
4.4.6.2  MARITIME TRANSPORT AND PORTS  
4.4.6.2.1  SHIPPING 
4.4.6.2.1.2  REGULATORY AND OPERATIONAL FRAMEWORK  
Paragraph 4.270, page 166:  "The main regulatory change was introduced by Law No. 14,301/2022 
establishing the "BR do Mar". Its main aim is to improve cabotage and reduce costs, thus providing 
greater ef ficiency to maritime and waterways transport in Brazil. The Law also aims at encouraging 
competitiveness, increasing the availability of the fleet in the national territory, and promoting the 
entry of new cargo transport companies in Brazil".  
EU question 3 8: 
(i) Could Brazil clarify the measures intended to promote the entry of new cargo transport 
companies in Brazil?  
(ii) Do these measures apply to foreign -owned and/or foreign -flagged operators/vessels?  
(iii) Does the intended promotion of entry of new c argo transport companies in Brazil target Brazil 
owned companies/companies only?  
 
Reply:  
Law N° 14,301/2022 aims at increasing the use of cabotage transport in the Brazilian territory, 
including by improving the employment of foreign vessels. A certain amo unt of foreign vessels can 
be bareboat chartered by Brazilian navigation companies to perform cabotage transport, in a 
gradually increasing limit, as well as in other conditions established in its Article 10 of 
Law 9,432/1997. The use of chartered foreign vessels is expected to increase gradually during the WT/TPR/M/432/Add.1  
 
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  implementation period of this Law, with a 3 -year window during which the number of chartered 
vessels will remain limited.  
 
Paragraph 4.270, page 166:  "… the Law continued to make possible the chartering of foreign vessels 
by the contractual modality "by time" (time charter) and "by trip" (voyage charter), and innovated 
by allowing it without requiring ballasts, as well as the innovative flexibility regarding the chartering 
of foreign ships under the modal ity called "bareboat charter". The chartering of foreign ships in 
the "bare hull" modality, with flag suspension, can be formalized through a contract between an EBN 
and its wholly owned foreign subsidiary (whose all shares belong to the Brazilian company)  or wholly 
owned subsidiary of another EBN".  
Paragraph 4.271, page 167:  "The chartering of foreign ships in the time charter modality can be 
formalized through a contract between EBN and its wholly owned foreign subsidiary (whose shares 
belong to the Brazi lian company) or wholly owned subsidiary of another EBN. The chartering of a 
foreign ship in the "bareboat" modality, with flag suspension, is authorized by Brazilian shipping 
companies for cabotage navigation, without ballast on property, according to a p hased -out time -
frame".  
EU question 39:   
(i) Could Brazil clarify whether the foreign vessel chartered in the voyage charter or the bareboat 
charter contractual modality must be wholly owned by a foreign subsidiary of a Brazilian company?  
(ii) Could Brazil clarify whether flag suspension is one of the conditions for the conclusion of time 
charters or voyage charters?  
 
Reply:  
The foreign vessel must be chartered by a so -called EBN (Brazilian Navigation Company) from its 
subsidiaries or other EBN 's subsidiaries. In order to be constituted as an EBN, a company must be 
established according to the Brazilian law. Flag suspension is necessary in bareboat chartering of 
vessels for cabotage navigation in cases where no authorization is required by the comp etent 
authorities.  
 
Paragraph 4.272, page 167:  ""Another innovation worth mentioning is that chartered vessels are no 
longer obliged to have a crew composed of at least two thirds of Brazilians, conditional to their 
registration to the "BR do Mar" programm e and performing cabotage navigation. However, it is still 
mandatory that the captain, the chief engineer, and, in certain cases, the cabotage master and 
engine conductor are Brazilian nationals".  
EU question 40:   
Could Brazil clarify whether a minimum pro portion, other than the previous requirement of at least 
two thirds, of Brazilian crew members on board chartered vessels registered in the "BR do Mar" 
programme exists under the new legislation?  
 
Reply:  
Chartered vessels registered in the programme must h ave Brazilians as captain, chief engineer, 
engine driver and cabotage master.  No minimum proportion is applied.  
Paragraph 4.275, page 167:  "Law No. 14,195/2021 revoked the obligation that required that cargo 
of government entities (including public enterpr ises), and goods benefitting from official tax or credit 
programmes having to be transported by Brazilian -flag vessels. Exports of crude oil extracted in 
Brazil must be transported by Brazilian companies. In case of non -availability of a ship with a 
Brazil ian flag or the flag of the importer or exporter for transporting freight, ANTAQ may release the 
shipment to a specifically designated third flagship. When no Brazilian flagship is available or the 
fares are considered unreasonable, a permit (certificate o f release of cargo prescribed (CLCP)) may 
be issued for the carriage of import cargos by foreign flagged vessels".  
 
EU question 41:   
(i) Could Brazil clarify whether cargo of government entities (including public enterprises), and 
goods benefitting from of ficial tax or credit programmes can be transported by foreign -flagged 
vessels regardless of the availability of Brazilian -flagged vessels under Law No. 14,195/2021?  
(ii) Could Brazil clarify whether the procedure of releasing shipment to a specifically des ignated 
third flagship or issuing a permit for the carriage of import cargos is still in place under 
Law No. 14,195/2021?  
(iii)  If so, does it concern all categories of cargo or only specific types of cargo (e.g. exports of 
crude oil extracted in Brazil)?  
 WT/TPR/M/432/Add.1  
 
- 196 - 
 
Reply: 
Yes. Goods benefitting from official tax or credit programmes can be transported by foreign -flagged 
vessels, regardless of their nationality. Law 14,195/2021 revoked Article 2 of the Decree N° 666 
that established certain cargo reservations. There is no  longer the need for authorization for the 
transportation of these import cargo. Nonetheless, the transport of crude oil and its byproducts 
produced in Brazil has to be made through a Brazilian Navigation Company, regardless of the ship 's 
nationality, in l ight of the Union 's monopoly established in Article 177 of the Federal Constitution 
of 1988.  
 
4.4.6.2.1.3  DOMESTIC SUPPORT  
Paragraph 4.276, page 167  : "Domestic support in the form of tax measures remains in place. The 
Additional Freight Charge for the Renovation of the Merchant Navy (AFRMM), a federal tax levied on 
maritime freight, continues to be applied (…). The tax does not apply to countries with which Brazil 
has negotiated a specific clause in LAIA Economic Complementary Agreements".  
EU question 42:   
Could Brazil clarify how it ensures that this tax does not lead to discrimination by origin? Could Brazil 
submit further details on the specific clau se in LAIA Economic Complementary Agreements?  
 
Reply:  
AFRMM fees are applied in a non -discriminatory manner in what refers to the flag of the vessel. The 
clauses pertaining to the AFRRM in Complementary Economic agreements are established under the 
Montevi deo Treaty, which is an agreement to promote Latin American integration under the 
GATT  Enabling Clause.   
 
Paragraph 4.277, page 167: "AFRMM resources are deposited (…) to finance the development of the 
Brazilian merchant fleet and shipyard industry through administered interest rate loans to domestic 
shipping companies ordering ships from domestic shipyards and to local shipbuilders producing, 
reforming, or repairing vessels for domestic and foreign shipping companies".  
EU question 43:   
How does Braz il reconcile its support measures to shipyards with Articles XVI of the GATT and three 
of the SCM  Agreement ? 
 
Reply:  
AFRMM  rates are decided taking in consideration the infrastructure needed for handling domestic or 
international cargo, as well as the econ omic conditions and market structure of different 
sectors.  AFRMM  fees are applied on a non -discriminatory basis as regards the flag of the vessel.  
 
4.4.6.2.2.1  POLICY AND INSTITUTIONS  
Paragraph 4.283, page 169:  "The Sectoral Plans, including for ports, will link the National Logistics 
Plan and the actions of the MInfra and should contemplate the study of initiatives for execution 
through partnership with the private sector, called Sector Partnership Plans ". 
EU question 44:   
Could Brazil clarify whether Sector Partnership Plans relating to ports will allow partnerships with 
foreign private companies?  
Reply:  
The Sectoral Plan relating to ports is expected to recommend actions to be undertaken both by the 
government  and by partnerships between public and private agents. The conditions for these 
partnerships will be defined accordingly.  
 
4.4.9  PROFESSIONAL SERVICES  
Paragraph 4.308, page 175:  "In practice, procedures for revalidation of foreign diplomas remain 
complex and time consuming".  
EU question 45:  
Could Brazil elaborate on any development or progress made in this regard?  
 
Reply:  
Revalidation and recognition are the names given in Brazil for the processes that allow citizens with 
diplomas issued by foreign institutions to continue their studies or, in some cases, to exercise their 
professional rights in Brazil. Revalidation is the process applicable to undergraduate -level diplomas, WT/TPR/M/432/Add.1  
 
- 197 - 
 
  and recognition is the process applicable to graduate -level diplomas (Master 's and Doctor 's degrees, 
strictly).  
 
As per the National Education Guidelines and Framework Law of 1996 (Law n. 9394/1996), and in 
accordance with the principle of autonomy granted to universities by Article 207 of the Brazilian 
Federal Constitution, undergraduate diplomas issued by foreign universities must be revalidated by 
a public Brazilian university that offers programs in th e same level and area. Likewise, Master 's and 
Doctor 's Degrees issued by foreign universities must be recognised by a Brazilian university (either 
public or private) that offers graduate programs in the same area and the same or higher level.  
 
Due to the p rinciple of universities ' autonomy, Brazil does not sign automatic 
revalidation/recognition agreements with any country or region. Universities are however free to 
sign direct agreements with their foreign counterparts that may accelerate these processes.  
 
The remarks from the Report (paragraphs 4.307 -4.308) concerning the complexity and duration of 
the revalidation procedures are based on a 2013 report from the WTO. Since then, the Brazilian 
government has been putting considerable effort towards simplify ing revalidation/recognition 
processes, while maintaining universities ' autonomy in the matter.  
 
Established in 2008, the Regional University Accreditation System of MERCOSUR (ARCUSUR) is a 
mechanism for quality assessment within the MERCOSUR Educational Sector that aims at promoting 
academic and professional mobility in the region, providing simplified procedures for the 
revalidation/recognition of titles issued by participating universities.  
 
Most importantly, in 2017 the Brazilian Ministry of Education launched the Carolina Bori Platform, 
an electronic system that compiles all relevant information regarding recognition/revalidation of 
foreign titles and stipulates specific time limits for universities to analyse requests. Additionally, the 
system incorpo rates fast -track procedures that apply to a number of revalidation/recognition cases, 
such as diplomas that were already revalidated by other Brazilian universities in the previous 
5 years, diplomas from students that benefit ed from official Brazilian scho larships to study abroad, 
or diplomas from foreign institutions accredited in the ARCUSUR. Through the Carolina Bori platform, 
revalidation/recognition processes must be concluded within 180 days in the regular procedure, 
or 90 days in the simplified proce dure.  
 
In July 2022, the National Council of Education, a federal government body linked to the Ministry of 
Education, issued a new resolution (Resolução CNE/CES n 01/2022) with general guidelines for 
revalidation/recognition processes, to which all unive rsities must comply. The resolution renders the 
processes more predictable and timely.  
  WT/TPR/M/432/Add.1  
 
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UKRAINE  
PART I: QUESTIONS REGARDING THE SECRETARIAT  REPORT  (WT/TPR/S/432)  
 
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.2 Regional trade ag reements and preferential trade arrangements  
2.3.2.1 MERCOSUR  
Page 51 (Para 2.38)  
According to the Report, under CAMEX Resolution 269, 4 November 2021, Brazil temporarily and 
unilaterally cut its tariffs by 10% until 31 December 2022. Brazil additionally reduced its tariff by 
10% on around 87% of the tariff lines (6,195 lines) by GECEX Resolution 353, 23  May 2022, which 
is to remain in force until 31 December 2023. It is also mentioned that this action was intended to 
mitigate the negative eff ects of the Russia n Federation 's war against Ukraine, including rising living 
expenses for lower -income Brazilians and higher costs for companies that use these products in the 
production and commercialization of goods.  
 
Questions:  
1. Would Brazil kindly describe the main economic effects and indicators expected to be achieved 
due to the tariff reduction?  
 
Reply:  
These measures aimed to horizontally mitigating the effects of supply shocks caused by the 
pandemic and the international context on Brazi lian economy.  
 
In our simulations, considering both reductions, that is, 20% decrease in tariffs, the economic 
impacts are positive for Brazil in the long run (2040). We estimate a GDP increase of 0.33% and 
an investment increase of 0.80%, both relative to  the baseline values (scenario in which there is 
no tariff reductions). Such estimates are approximately 45 and BRL 22 billion in 2021, respectively. 
Regarding foreign trade, we expect growth in exports (1.88% or BRL 74 billion) and imports (1.58% 
or BRL 7 6 billion). The simulation also presents a decrease in consumers ' prices.  
 
2. What sectors of the Brazilian economy are impacted by the global negative effects of 
Russia n Federation 's military aggression against Ukraine?  
 
Reply:  
In 2022, the Brazilian econ omy has been experiencing pressure on price levels. Restriction in world 
supply has mainly pressured the prices of foods such as soy, corn, and wheat, as well as fuel and 
fertilizers. Brazil is a major exporter of soybeans and corn, but the parity of the d omestic price with 
the international price means that Brazilian consumers are also affected. On the other hand, Brazil 
is a major importer of fuel and fertilizers. The import price of these products doubled in the year . 
 
3 TRADE POLICIES AND PRACTICES BY M EASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Page 63 (Para 3.18)  
The Report indicates that Brazil has customs cooperation agreements with the large number of 
Members of the WTO.  
 
Question:  
3. Consider ing that Article 12 of the Agreement on Trade Facilitation envisages provisions on 
customs cooperation among WTO Members and, from our point of view, should enhance bilateral 
cooperation in this sphere, Ukraine would appreciate if Brazil could describe alg orithm of possible 
cooperation and elucidate procedure of entering into and maintaining such bilateral agreements.  
 
Reply:  
Brazil and Ukraine are in an advanced stage of negotiations for a bilateral customs cooperation 
agreement ( "Agreement on Cooperation and Mutual Assistance in Customs Matters "). Brazil is 
currently awaiting Ukraine 's reaction to the text proposal sent by the Brazilian Embassy in Kiev to 
the Ukrainian Government on May 2021, with a view to conclude negotiations and allow for the 
signing o f the agreement.   
 WT/TPR/M/432/Add.1  
 
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  3.1.3 Tariffs  
3.1.3.1 Applied MFN tariff  
Page 65 (Para 3.25)  
The Report informs that the simple average applied MFN tariff declined by 1,6 percentage points 
relative to 2017.  
 
Question:  
4. Ukraine notes that the simple average applied MFN tariff of Brazil decreased slightly in the past 
few years. Could Brazil inform if there is any plan to further lower or eliminate its applied MFN 
tariffs, considering the current economic situation?  
 
Reply:  
Changes on Common External Tariff are  negotiated within Mercosur scope, following disciplines and 
Block regulations.  
  
Discussions about the structure and tariff levels in Mercosur are currently carried out by the Ad  Hoc 
Group to Examine the Consistency and Dispersion of Common External Tarif f (CET)  – GAHEC.  
 
3.1.6 Anti -dumping, countervailing, and safeguard measures  
Page 73 (Para 3.58)  
The Report informs about recent transformation of the institutional framework on trade remedies 
and it states that decision -making regarding the application, modification, and suspension of 
contingency measures, as well as the exporting economy's market status, remains the remit of the 
Council of Ministers of the Chamber of Foreign Trade (CAMEX), which takes into account 
Recommendations of the Undersecretariat of Trade Remedies and Public Interest (SDCOM).  
 
Currently, there are two antidumping measures in place regarding products originating in Ukraine 
(heavy plates, seamless carbon steel line pipes for oil and gas pipelines).  
 
Question:  
5. Taking into account t hat the export potential of Ukrainian producers could not threaten to cause 
any material injury to the Brazilian domestic industry due to emergency circumstances in Ukraine, 
could Brazil, please, clarify if Brazilian domestic legislation defines some speci al procedures allowing 
to revoke or review above -mentioned measures on an expedited basis?  
 
Reply:  
In special situations it is possible to request a review of the anti -dumping duty due to changing 
circumstances. As a result of this type of review the duty  may be terminated if the continuation or 
resumption of dumping or damage is unlikely, or the duty may be amended if it has ceased to be 
sufficient or has become excessive to counteract the dumping or has become insufficient to eliminate 
the damage to the domestic industry caused by the dumped imports.  
The request must be made by any interested party of the original investigation or the last sunset 
review, which must submit a written petition indicating that the circumstances that justified the 
application of the anti -dumping duty have changed. The change in circumstances must be significant 
and lasting, not being shaped by oscillations or fluctuations inherent to the market, among others. 
A minimum of one year must have elapsed since the applica tion, amendment, extension or extension 
of a definitive anti -dumping duty.  
 
4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.4 Telecommunications  
4.4.4.4 Domestic supportPage 156 (Para 4.208)  
The Report informs that the changes in the use of the Fund for Univer salization of 
Telecommunications Services (FUST) included the obligation to provide all Brazilian public schools 
with broadband Internet access with resources from FUST by 2024.  
 
Questions:  
6. Could Brazil, please, clarify information about the obligation that was assumed by the operators 
to provide all public schools with broadband Internet access?  
 
7. Does the Brazilian Government control the activity of such operators and, if so, by what means?  
 WT/TPR/M/432/Add.1  
 
- 200 - 
 
Replies to 6 and 7:  
"Fundo de Universalização dos Serviços de Telecomunicações " – Fust ( "Fund for the Universalization 
of Telecommunications Services ") is a fund that aims at financing actions and projects conducted by 
public and private entities, civil society and schools, in light of the objectives of improving access to 
telecommunication services, reducing regional inequalities and fostering the use of new 
technologies. The initiatives that receive such funding are selected by a Directing Board, composed 
by ministries, agencies, telecom operators and c ivil society, as defined in Law N° 9,998/2000.  
 
Page 156 (Para 4.214)  
The Report mentions the Connected Amazon Project that aims to launch optical sub -fluvial cables, 
bringing high -capacity transport infrastructure to connect dozens of municipalities in t he 
Amazon  Region.  
 
Question:  
8. Would Brazil kindly inform more about the Connected Amazon Project, in particular on the 
concept of participants engagement, the list of the Project's participants, directions of 
implementation and legal regulation of the Pr oject, obligations and leverages from the State within 
the Project, the cost of the Project and sources of its funding, as well as payback period?  
 
Reply:  
The Connected Amazon Project has several participants, particularly ministries, governmental 
agencies  and institutes, the armed forces and universities, from federal and local level, with 
leadership by the Ministries of Defense; Communications; and Science, Technology and Innovation. 
The main regulatory instrument of this initiative is Interministerial Or dinance N° 586/2015, which 
establishes its objectives and a governing body. The project was divided in several phases, and 
phase 3 was concluded in 2021. Resources come from different participants, such as the Ministries 
of Education and Health, ICMBio, am ong others.  
 
PART II: QUESTIONS REGARDING THE REPORT  BY BRAZIL  (WT/TPR/G/432)  
 
2 GENERAL ECONOMIC ENVIRONMENT  
2.2 General Legal and Regulatory Framework  
2.2.9 Long run production and export finance  
Page 14 (Para 2.66)  
The Report states that the National Bank of Social and Economic Development missions are also 
aligned to the transition to a low carbon economy, with a focus on expanding renewable energy, 
developing the market for carbon credits and promoting productive sector operations that have a 
positive environmental impact.  
 
Question:  
9. Could Brazil kindly explain how exactly the positive environmental impact of productive sector 
operations will be measured?  
 
Reply:  
BNDES currently has tools for climate financing that are aimed at tracking di sbursements and result 
indicators of the financed operations. The Bank offers three platforms for dissemination of 
information about its collaboration to Green Economy, to the Brazilian NDC and to the SDGs that 
are available at:  
 
https://www.bndes.gov.br/wps/portal/site/home/transparencia/estatisticas -desempenho/ods . 
 
https://www.bndes.gov.br/wps/portal/site/home/desenvolvimento -
sustentavel/resultados/emissoes -evitadas/avoided -emissions . 
 
https://www.bndes.gov.br/wps/portal/site/home/desenvolvimento -
sustentavel/resultados/desembolsos -em-economia -verde -e-desenvolvimento -social/desembolsos -
economia -verde -desenvolvimento -social . 
 WT/TPR/M/432/Add.1  
 
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  3 TRADE POLICY DEVELOPMENTS (2017 -21) 
3.4 Participation in the WTO  
3.4.2 Dispute settlement  
The Report underlines that Brazil attaches high priority to strengthening of the WTO dispute 
settlement system (DS) and has actively participated in the mechanism since its very first dispute 
that advanced beyond the consultations stage.  
 
Question:  
10. Could Brazil share its vision on the process of DS reform?  
 
Reply:  
In Brazil´s view, the DSU has  been tested over 25 years and has served Members well. DS reform 
should therefore focus on finding a solution to the specific issues underlying the current crisis of 
the dispute settlement mechanism by 2024, in accordance with the MC -12 Outcome Document 
mandate.  
With this in mind, Brazil is constructively engaged in the on -going discussions on DS Reform, and 
has identified the following interests as central to any satisfactory outcome:  
1. Availability of adjudication that can be promptly and automaticall y initiated by a complainant in 
order to resolve the dispute;  
2. Independent, impartial adjudicators;  
3. Clear procedures, including timelines and due process rules, for prompt resolution - no ability by 
any Member to block proceedings;  
4. Binding decision s by adjudicators, subject to negative consensus;  
5. Consistency of decisions;  
6. Possibility of review;  
7. Multilaterally -backed enforcement.  
 
3.4.4 Trade and Environmental Sustainability Structured Discussions (TESSD)  
Page 19 (Para 3.27)  
The Report menti ons Document INF/TE/SSD/W/12 that emphasizes the central role of the 
agricultural sector in promoting sustainable development and draws attention to the environmental 
impacts of agricultural subsidies.  
 
Question:  
11. Could Brazil comment on the further perspectives of the consideration of the issue of the 
environmental impacts of agricultural subsidies in the WTO?  
 
Reply:  
Brazil acknowledges that the issue of agricultural subsidies should be dealt primarily within the 
COA-SS. We note, however, th at although Art. 20 of AoA mandated a reform on rules for 
agricultural subsidies (which in itself is a recognition of the imbalance in the GATT towards countries 
that were heavy subsidizers), progress in this field has not been achieved. In the same way so me 
members believe TESSD is useful to overcome deadlocks in other committees, Brazil is convinced 
that WTO members will benefit from a broad and transparent debate on the complex issues related 
to sustainability in agriculture in the context of the TESSD, including members and relevant 
stakeholders.  
 
3.6 Investment Agreements  
Page 24 (Para 3.56)  
Under the Report, Brazil signed 14 traditional Bilateral Investments Agreements (BITs) during the 
1990s, but the Brazilian National Congress decided not to ratify them.  
 
Question:  
12. Would Brazil, please, clarify the reasons why signed BITs were not ratified, whether and how 
its provisions were implemented?  
 
Reply:  
Although the Brazilian Cooperation and Facilitation Investment Agreement (CFIA) Model contains 
releva nt tools to protect investments found in traditional BITs - such as National and Most Favored 
Nation Treatment, transparency, as well as specific conditions for direct expropriation, compensation 
and transfer of currency - it favors mechanisms to prevent d isputes based on dialogue and bilateral WT/TPR/M/432/Add.1  
 
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consultation, prior to State -State arbitration procedure, while traditional BITs have as their main 
backbone Investor -State Dispute Settlement, a well -known controversial mechanism.  
Brazil signed 14 traditional BITs in the 1990s, none of which approved by the Brazilian Congress. 
That those agreements were detrimental to the regulatory capacity of the States to pursue legitimate 
policy interests and that there were potential conflicts with the principle of equality ens hrined in the 
Federal Constitution were among the reasons that led to their rejection by the National Congress.  
 
4 TRADE INSTITUTIONAL AND REGULATORY FRAMEWORK  
4.1 Cross -Cutting Issues  
4.1.7 Intellectual property  
Page 34 (Para 4.60)  
The Report notes that  the National Institute of Industrial Property (INPI) has developed a number 
of systems in order to streamline its internal processes.  
 
Question:  
13. Could Brazil, please, clarify which methodologies were used for internal processes 
optimization  (before im plementation of abovementioned systems)?  
 
Reply:  
Please refer to question 14.  
 
Page 35 (Para 4.61)  
The Report notes that the INPI has also promoted several actions to mitigate the impact of its 
patent backlog, such as the Backlog Combat Project that aimed, in two years, to reduce the total 
of 149,912 patent applications filed until 2016 with required examination and pending decision (at 
the end of 2021, it reached 77% of reduction, compared to the 80% initially planned).  
 
Question:  
14. Could Brazil ki ndly share its experience and information on practical actions performed for 
Patent backlog management including Backlog prioritization, as well as clarify which tools and 
approaches were used?  
 
Reply:  
In 2019, Brazil 's National Institute of Industrial Pro perty (INPI) started the Plan to Combat the 
Patent Backlog with the objective of reducing the number of requests pending decision by 80% 
from almost 150,000 patent requests in this situation.  
The Backlog Combat Plan is strongly based on simplification of p rocedures, which do not directly 
involve the development of systems for this purpose. The INPI takes advantage of search and 
examination data, when available, for applications filed with other patent offices, so as to avoid 
duplicating work that has alread y been done.  
INPI has also been using the results of patent applications analysis in other countries and regions, 
such as examinations carried out by the USPTO (United States Patent and Trademark Office) and 
the EPO (European Patent Office). In this way, B razilian examiners can benefit from qualified 
technical work, while saving valuable time.  
 
It should be highlighted that, even when starting from a technical examination already carried out 
abroad, the INPI examiner has the right to carry out his own analy sis in light of the Brazilian 
legislation in force and disagree on the merits of an invention that has been patented in other 
countries.  
 
There are also priority exams with reduced concession times that benefit specific groups, such as: 
seniors, micro and small businesses, science and technology institutions, creators of green 
technologies and Patent Prosecution Highway (PPH) participants.  
 
4.2 Sectoral Issues  
4.2.8 Telecommunications  
Page 48 (Para 4.155)  
Under the Report, "Brazil has engaged in internation al cooperation for the deployment of 
connectivity infrastructure through the deployment of submarine and terrestrial optic fiber cables, 
providing direct connections to Africa and Europe. In this regard, the inauguration of the Ellalink 
submarine cable in 2021 is an important achievement, connecting Brazil directly to Europe".  
 WT/TPR/M/432/Add.1  
 
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  Questions:  
15. Ukraine appreciates Brazil`s experience of implementation of trunk networks construction 
projects at the international and intercontinental levels and it would be grat eful if Brazil could share 
information about: participants of such projects; the impact of implementation of such projects on 
the Brazilian economy; payback period of such projects and challenges arisen during its 
implementation; legal documents and agreem ents concluded for the implementation of projects 
and the role of the State in its implementation.  
 
Reply:  
The federal government was directly involved in the Ellalink submarine cable project, including in 
a portion of the funding of the project (around 5% ) and in its conception, an action of the 
Brazil -European  Union  Digital Dialogue. An organization of the Brazilian Ministry of Science, 
Technology and Innovation will coordinate the use of this submarine cable.  
 
16. Would, Brazil, please, also share information about national companies operating in the trunk 
networks market and elucidate the role of the State for their activities, mechanism of collaboration 
between national and international companies, the form of its participation in international pr ojects 
(for example, public -private partnership, consortium with other companies including international 
companies, etc.)?  
 
Reply:  
Brazilian legislation provides for a wide array of arrangements relating to the participation of public 
and private corporati ons in the provision of high -capacity transport networks. Regulatory 
intervention in these markets has been limited to a specific set of measures, which are disciplined 
in the General Plan for Competition Goals (PGMC) - see para 4.129 of the report.  
 
17. H ow does joint use of operators' networks effect the economic activity of companies and 
consumers?  
 
Reply:  
The principle of integrated operation is a cornerstone of Brazilian telecommunication legislation. 
Considering its legal mandate, ANATEL regulates the provision of telecommunication services via 
rulemaking and case by case application of the sectoral rules concerning quality of 
service,  competition  and consumer -related issues.  
 
18. Ukraine would like to know the number of companies that per form activities related to the 
construction and/or maintenance of trunk networks as well as the procedure for collaboration with 
other participants of the telecommunications market.  
 
Reply:  
As indicated in para 4.146 of the report by Brazil, the Structural  Plan for Telecommunications 
Networks (PERT) is a valuable repository of data relating to this question. For more information, 
please refer to  https://www.gov.br/anatel/pt -br/dado s/infraestrutura/pert  (in Portuguese).  
 
19. Would Brazil, please, kindly provide information about possible contact points within institutions 
engaged in the process of formation of state policy in the field of telecommunications (National 
Telecommunicatio ns Agency, relevant Ministry, etc.) for further bilateral communication?  
 
Reply:  
Brazil 's Ministry of Foreign Affairs can act as contact point for telecommunication issues, at 
dns@itamaraty.gov.br  or dtd@itamaraty.gov.br . 
 
  WT/TPR/M/432/Add.1  
 
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SRI LANKA  
Two Questions on Trade Policies of Brazil raised by Sri Lanka  
Q.1) It is understood that countries might adopt their own rules and regulations relating to "Organic  
Products ". However, Sri Lanka delegation would like to get a clarification from the Brazil side, 
whether there is a possibility to relax the process of ob taining organic certificates by the 
companies in developing countries when they export organic products to Brazil, since these 
exporters have fulfilled requirements applicable for obtaining organic certifications compatible 
with the EU, United States, and Japan?  
 
Reply:  
To obtain organic certification and to market organic products in Brazil, it is necessary to follow the 
Brazilian regulations. There is no differentiation for developing countries in the organic recognition 
process, even if that country has fulfilled requirements applicable for obtaining organic certifications 
in other countries. However, there is the possibility of negotiating a mutual recognition agreement 
between the two countries, such as the Brazil -Chile agreement, in which a  list of recognized products 
was approved.  
 
Q.2) It was informed by some exporters in Sri Lanka, that it is very complex process and difficult to 
get specific information relating to regulatory/certification requirements applicable on a 
particular product based on the HS code or the Brazilian Mercosur Custom Code (NCM) either 
in Portuguese or English, using the Trade Information Portal of Brazil 
[https://www.gov.br/siscomex/pt -br/sistemas -de-comercio -exterior/sistemas -do-portal -
unico ]. In this context, Sri Lanka delegation would like to get a clarification from the Brazil 
delegation whether any user -friendly mechanism has been introduced or whether the Brazilian 
authorities intend to introduce any user -friendly mechanism in the future, enabling foreign 
suppl iers to access information relating to regulatory/certification requirements applicable for 
imports in Brazil (Custom duties/internal government duties/trade statistics etc.) in English?  
 
Reply:  
The currently available system allows searches only in Portug uese and just presents information 
about the consenting body responsible for the licen ce (https://siscomex.desenvolvimento  
.gov.br/tratamento/private/p ages/consulta_tratamento.jsf ). Within the scope of the Brazilian 
Foreign Trade System, consultation with a more transversal format is being built (by SH), with 
feedback on the technical requirements necessary to obtain the licen ce. 
  WT/TPR/M/432/Add.1  
 
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  BOLIVIA , PLURINATIONAL  STATE OF  
a. Señale qué productos se benefician del apoyo y promoción a las exportaciones como el Régimen 
Especial de Adquisición de Bienes de Capital para Empresas Exportadoras (RECAP) o el Régimen 
Especial de Reintegro de Impuestos para las Empresas Expo rtadoras (REINTEGRA), entre otros.  
 
Reply:  
The Mercosur Common Nomenclature codes for products that can benefit from Recap are listed in 
Decree No. 5789, of 25 May  2006.  
In turn, the products that benefit from Reintegra are those whose Mercosur Common Nomenclature 
codes are listed in the annex to D ecree No. 8,415, of 27 February  2015.  
 
b. Por otra parte, indique si aún permanece el régimen de desgravación fiscal del Brasil, el cual 
prevé la suspensión o la exención de aranceles de importación e impuestos indirectos federales 
(Impuesto sobre los Prod uctos Industrializados (IPI), Programa de Integración Social (PIS), 
Contribución a la Financiación de la Seguridad Social (COFINS), Impuesto sobre la Circulación de 
Mercancías y la Prestación de Servicios (ICMS), y el Derecho Adicional para la Renovación d e la 
Marina Mercante (AFRMM)) percibidos sobre los insumos nacionales o importados o las partes que 
se utilicen para producir bienes exportables.  
 
Respuesta:  
Las materias señaladas en la pregunta refieren tanto a la competencia fiscal federal como a la de 
cada uno de los 27 entes subfederales de Brasil, es decir, los 26 estados y el Distrito Federal.  Para 
mayores aclaraciones sobre la competencia fiscal federal, se sugiere consultar el sitio electrónico de 
la Receita Federal do Brasil  https://www.gov.br/receitafederal/pt -br. 
 
c. Asimismo, señale los sectores que reciben incentivos o subvenciones públicas, para su producción 
interna, tales como créditos otorgados por parte del Banc o de Desarrollo del Brasil.  
 
Reply:  
Information about BNDES sectoral disbursements is available at: https://www.bndes.  
gov.br/wps/portal/site/home/transparencia/estatisticas -desempenho . 
 
d.Indique si existe o si se mantienen las ayudas a la agricultura, co mo el crédito agrícola/rural, 
programas de venta anticipada y programas de fomento a la agricultura familiar.  
 
Reply:  
Brasil pone a disposición de los agricultores familiares la posibilidad de acceder a una línea específica 
de crédito rural, a través del P rograma Nacional de Fortalecimiento da Agricultura 
Familiar  (PRONAF), para financiar proyectos individuales o colectivos de agricultores familiares y 
colonos de la reforma agraria.  
Sus objetivos son mejorar los ingresos y la calidad de vida en las zonas rurales; orientar y fomentar 
la conservación de los recursos naturales; promover el desarrollo sostenible en las zonas rurales; y 
difundir las tecnologías necesarias para mejorar la economía agropecuaria, mediante el 
financiamiento de las actividades  y servicios agropecuarios y no agropecuarios que se desarrollen 
en el establecimiento rural o en las áreas comunitarias cercanas.  
Para tener acceso al PRONAF el agricultor necesita solicitar la emisión de una "Declaración de Aptitud 
al PRONAF " (DAP) o solicitar su inscripción en el "Registro Nacional de la Agricultura Familiar " (CAF). 
Para calificar tanto para DAP como para CAF, el agricultor debe cumplir con algunos requisitos. En 
general, estos son: (i) el área rural que la familia posee no p uede exceder de 4 módulos fiscales; 
(ii) la mano de obra utilizada debe ser predominantemente familiar; (iii) la renta bruta anual no 
debe exceder BRL 500.000; y (iv) al menos el 50% de todos los ingresos deben provenir de 
actividades desarrolladas en el á rea rural de propiedad de la familia.  
Una vez en posesión de la DAP/CAF, el agricultor familiar puede solicitar financiamiento para 
producción o inversión. En el caso de inversión, la familia puede obtener "Asistencia Técnica y 
Extensión Rural " (ATER) para  elaborar el proyecto técnico para el cual pretende recibir 
financiamiento.  
 
e. El Arancel de Brasil refleja la adopción de criterios como la progresividad positiva para productos 
manufacturados (desincentivando la mejora de la competitividad internacional ), las exenciones del 
Arancel Externo Común (AEC) temporal y unilateral, y el fomento de la innovación y la competitividad WT/TPR/M/432/Add.1  
 
- 206 - 
 
de la oferta reduciendo aranceles a la importación de bienes de capital, equipos de informática y 
telecomunicaciones.  
En el actual co ntexto geopolítico (conflicto armado) ¿el Brasil encaminó alguna medida arancelaria 
para sus importaciones?  
 
Reply:  
En consideración a la situación internacional, Brasil adoptó la Resolución GECEX 353, de 2021, con 
el objetivo de mitigar los efectos de los  choques de oferta provocados por la pandemia y el contexto 
internacional sobre la economía brasileña.  
 
La mencionada norma puso en vigor rebaja adicional de uno 10% para cerca del 87% del universo 
arancelario (6,195 líneas), con previsión de vigencia hast a 31 de diciembre de 2023.  
 
f. Cuál es el impacto de la aplicación de la progresividad positiva para productos manufacturados 
aplicado en el tratamiento arancelario del Brasil; donde los bienes manufacturados cuentan con un 
promedio elevado, seguidos de lo s semielaborados y las materias primas, desincentivando la 
competitividad internacional.  
 
Reply:  
Estudios acerca de temas arancelarios y negociaciones internacionales están disponibles en el sitio 
electrónico de la Secretaria de Comercio Exterior del Minis terio de Economia en la 
dirección:  https://www.gov.br/produtividade -e-comercio -exterior/pt -br/assuntos/comercio -
exterior/publicacoes -secex . 
 
g. Los cigarrillos electrónicos están sujetos a la aplicación de algún impuesto específico, 
considerando que, a partir de esta gestión entró en vigencia la Séptima Enmienda del Sistema 
Armonizado.  
 
Reply:  
Según la Nomenclatura Común del Mercosur en su versió n 2022, adaptada a la Séptima Enmienda 
del Sistema Armonizado, los cigarrillos electrónicos están clasificados en el código 
arancelario  8543.40.00.   
 
El nivel del derecho de importación aplicable en Brasil para dicho producto es 9 .6% ad valorem . 
 
h. Según las estimaciones del informe Doing Business 2017 del Banco Mundial, en los dos últimos 
años se ha facilitado el comercio transfronterizo gracias a las mejoras introducidas en el sistema 
electrónico.  
¿Qué mejoras en el sistema informático se implementaron p ara la facilitación y el control del 
comercio transfronterizo?  
 
Reply:  
The changes in processes and in the technology promoted in the current import process/system 
within the scope of the Brazilian Single Window Program have already made it possible to dis tribute 
tasks among specialized virtual teams, to obtain advance cargo clearance for AEO and to achieve 
paperless trade.  
 
i. En materia aduanera, Brasil ha celebrado acuerdos de cooperación con varios países entre ellos el 
Estado Plurinacional de Bolivia, ¿Es posible identificar de manera descriptiva los resultados 
cuantitativos y cualitativos?  
 
Reply:  
Los acuerdos de intercambio de información entre Brasil y el Estado Plurinacional de Bolivia han 
hecho posible la implementación de la cooperación aduanera entre los dos países.  
 
Desde 2017 y hasta octubre de 2022, Brasil recibió 16 solicitudes de intercambio de información de l 
el Estado Plurinacional de  Bolivia. Entre ellas, 15 han sido respondidas, y solo una de las solicitudes, 
presentada en 2019,  sigue pendiente de respuesta.   
 
En el mismo período, sin embargo, no se han registrado solicitudes de intercambio de información 
de Brasil a l el Estado Plurinacional de  Bolivia.  WT/TPR/M/432/Add.1  
 
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j. La proporción de declaraciones de importación correspondientes a productos despachados 
mediante el método del valor de transacción fue del 99 .87% en 2013, el 99 .89% en 2014, el 99 .66% 
en 2015 y el 99.56% en 2016. Cuando es necesario, se recurre a métodos alternativos, siguiendo 
la jerarquía establecida en el Acuerdo sobre Valoración en Aduana. Las autoridades afirman que el 
Brasil no utiliza precios mínimos ni precios de referencia para determinar el valor de aduana de las 
mercancías importadas.  
¿Qué parám etros se utilizan para la aplicación del método del valor de transacción en las 
importaciones, y, por qué no utilizan precios de referencia?  
 
Reply:  
La utilización del método del valor de transacción depende del cumplimiento de las condiciones 
establecidas  en el artículo 1 del Acuerdo sobre Valoración en Aduana de la OMC. Ante la imposibilidad 
de utilizar el método del valor de la transacción, se utilizan los métodos alternativos, siguiendo los 
principios y normas previstos en el Acuerdo. Según los términos  de la Introducción General del 
Acuerdo, se prohíbe el uso de valores arbitrarios o ficticios. Por lo tanto, no se utilizan ni los precios 
mínimos ni los precios de referencia para determinar el valor en aduana de las mercancías 
importadas. En Brasil, los precios de referencia se utilizan únicamente con fines de gestión de 
riesgos, para identificar las declaraciones que presentan dudas razonables en cuanto al valor en 
aduana declarado, según lo dispuesto en la Decisión 6.1 del Comité de Valoración en Aduana . 
 
k. Considerando que existen diferentes incentivos a la exportación, por ejemplo, el programa de 
desgravación fiscal, la devolución de los impuestos gravados en el marco del Programa de 
Integración Social (PIS) y la Contribución a la Financiación de la S eguridad Social (COFINS), la 
financiación oficial de las exportaciones, el Régimen Especial de Adquisición de Bienes de Capital 
para Empresas Exportadoras (RECAP), zonas especiales (por ejemplo zonas de elaboración para la 
exportación) y medidas adoptadas en virtud del Plan Nacional de Exportación, de junio de 2015.  
¿Qué acciones se implementan para evitar el contrabando de exportación en zonas fronterizas?  
 
Reply:  
Las acciones para prevenir el contrabando de exportación se basan en técnicas de gestión de r iesgos, 
que incluyen el uso de tecnologías disruptivas. Las denuncias también son fuentes de información 
para el inicio de estas acciones. La regularidad de las operaciones se analiza en el marco de las 
auditorías a posteriori , en las que se solicita al im portador que presente información y documentos 
que demuestren el cumplimiento de los requisitos para beneficiarse de las ventajas que ofrecen los 
programas.  
 
l. Si bien el marco normativo principal del comercio electrónico fue modificado por última vez en  la 
gestión 2014, ¿Qué iniciativas públicas se promovieron para la actualización de la Ley de 
Comercialización Digital?  
 
Reply:  
Frente al crecimiento reciente del comercio electrónico y su importancia para los flujos de bienes y 
servicios, el gobierno bras ileño sigue trabajando por la actualización del marco normativo y 
regulatorio sobre e -commerce en sus distintas frentes. Ejemplo es la Ley General de Protección de 
Datos (LGPD, 13.709/2018) que, además del Marco Civil de la Internet de 2014, busca asegurar  la 
protección de los consumidores en plataformas digitales. Otros esfuerzos asociados al e -commerce 
se observan en el tema de firmas electrónicas, medios de pagamentos digitales, entre otros.  
 
  
 
Solicitudes de intercambio de información procedentes de Bolivia   
Ano  Cantidade   Contestados   
2017  3  3  
2018  3  3  
2019  7  6  
2020  2  2  
2021  1  1  
2022  No hay solicitudes   
 WT/TPR/M/432/Add.1  
 
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ARGENTINA  
Informe WT/TPR/S/432  
1. ENTORNO ECONÓMICO  
1.2 Evolución económica reciente  
1.2.1 Crecimiento, ingresos y empleo  
En el párrafo 1.4 se indica que la iniciativa "Brasil Mais Produtivo" de 2016 estaba bien concebida 
pero se centraba en gran medida en unos pocos sectores de baja tecnología (alimentos, text iles y 
muebles) y en el corazón industrial del país; fue sustituida en 2020 por la iniciativa "Brasil Mais", 
cuyo alcance es más amplio. Esta última iniciativa tiene por objeto mejorar la capacidad de gestión 
y la capacidad digital de las empresas brasileñ as, promoviendo mejoras rápidas de bajo costo para 
los empresarios y garantizando resultados coherentes en el aumento de la productividad y la 
competitividad; está a disposición de las mipymes de los sectores de la industria, el comercio y los 
servicios.  
Pregunta 1  
¿Cuáles son específicamente los beneficios previstos y los requisitos que las empresas deben cumplir 
para acceder a los beneficios de la iniciativa "Brasil Mais"? ¿El acceso a tales beneficios está limitado 
solo a empresas brasileñas?  
 
Respuesta:  
Brasil Mais Program aims to address the low levels of management and hardships in the adoption of 
digital technologies in the work routine of micro, small and medium -sized companies (MSMEs), 
through the diffusion of the culture of innovation in processes and the promotion of the adoption of 
digital technologies. To achieve this objective, the program offers training, technical support and 
specialized consultancy to help companies in the industry, commerce and services to improve their 
management and production practices, with management by indicators and lean manufacturing 
tools, and to adopt technologies for improvement and monitoring of processes, from the most basal 
to advanced solutions of Economy 4.0, such as Internet of Things and artificial  intelligence. The 
program should reach up to 120,000 companies between 2020 and 2022, with expansion planned 
for the coming years.  
Aiming at digital transformation, the Brasil Mais Program incorporated the positive results of the 
Brasil Mais Productivo Pr ogram and expanded its reach and scope, through the experience, structure 
and capillarity of the S System partners (National Industrial Learning Service - Senai and Brazilian 
Service Support for Micro and Small Enterprises - Sebrae). This expansion is part  of a broader policy 
to promote the modernization of the productive sector. With the development of managerial skills 
and practices, the program seeks to improve insight skills, critical thinking, administrative skills, 
short- and long -term planning, leade rship, control, decision -making skills, productive 
reorganization, adoption of a culture of instituting continuous improvement practices and 
identification of investment opportunities by developing managerial skills in the various areas 
necessary for the p roper functioning of a company, such as performance management, indicators, 
operations and sales, quality, strategy, production, knowledge, human capital and digitalization.  
 
1.2.4 Políticas estructurales  
1.2.4.4 Políticas relativas al mercado laboral  
En el párrafo 1.15 se explica que, mediante la Ley Nº 13.467/2017, se introdujeron cambios en el 
mercado laboral que, entre otras cosas "regularon el teletrabajo".  
Pregunta 2  
¿Podría indicar cuáles han sido las regulaciones introducidas al teletrabajo?  
 
Reply:  
La nueva ley sobre teletrabajo (Decreto 14.442 de 03/08/2022)  define el teletrabajo (o "trabajo a 
distancia") como la prestación de servicios fuera de los locales de la empresa o también de forma 
híbrida (presencial y a distancia), que no pueda caracteriz arse como trabajo externo. La 
posibilidad  de prestación de servicios en esta modalidad deberá constar expresamente en el contrato 
de trabajo.  La adopción de la nueva ley  refleja las recientes  transformaciones en las relaciones de 
trabajo y la reestructurac ión de muchas empresas y sus respectivas actividades laborales incluso 
después de las transformaciones en el mundo del trabajo verificadas después del adviento de la 
pandemia de la COVID -19. 
 
En el párrafo 1.17 el informe describe que la informalidad laboral sigue siendo un desafío de política 
fundamental en Brasil, ya que las cuñas fiscales para los trabajadores del sector formal se mantienen 
elevadas (sección 1.1); según las estimaciones de l a OCDE, en 2018 aumentó a más del 40%. La WT/TPR/M/432/Add.1  
 
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  pobreza entre los trabajadores informales es cuatro veces la media nacional, y es más probable que 
las mujeres tengan empleos informales. Las mujeres trabajadoras ganan un 20% menos que los 
hombres, cuando la media  de la OCDE es del 13%.  
Pregunta 3  
¿Podría indicar el gobierno brasileño qué medidas ha tomado en el periodo bajo examen para 
resolver el problema de la informalidad en el mercado de trabajo y cuáles han sido los resultados de 
las mismas?  
 
Reply:  
En 2017, Brasil llevó a cabo una compresiva reforma laboral, con el propósito central de reducir la 
informalidad, la que es una de las peores causas de precarización en las relaciones de trabajo. La 
reforma ha permitido nuevas modalidades de contratación, con el de bido respeto a todas las 
garantías legales y derechos constitucionales.  
La reforma laboral brasileña es el resultado de discusiones de muchos años sobre los desafíos del 
mercado laboral frente a las deficiencias en la legislación laboral y las fallas en el  funcionamiento de 
la justicia laboral.  
 
2. REGÍMENES DE COMERCIO E INVERSIÓN  
2.3 Acuerdos y arreglos comerciales  
2.3.2.1 MERCOSUR  
2.3.2.2 Arreglos comerciales preferenciales  
En el párrafo 2.43 el informe indica que Brasil sigue participando en el Sistema Global de Preferencias 
Comerciales entre Países en Desarrollo (SGPC) de 1998; desde 1991, el MERCOSUR participa en 
bloque, con una lista única de concesiones consistentes en el otorgamiento de preferencias a los 
países participantes con respecto a unas 127  partidas arancelarias del SA 2002. Estas preferencias 
oscilan entre el 10% y el 100%, y en su ámbito de aplicación están comprendidos los productos 
agropecuarios, los combustibles, los productos químicos, las pieles y cueros, y los productos férreos 
y de acero.  
Pregunta 4  
¿Podría Brasil explicar la razón o razones por las cuales no ha ratificado aún los resultados de la 
III Ronda de Negociaciones del SGPC (Ronda de Sao Paulo) finalizadas en 2010?  
 
Respuesta:  
Brazil is pleased to inform that it has completed its internal procedures within its National Congress 
for the approval of the São Paulo Round of negotiations of the GSTP with the publication of the 
Legislative Decree no. 145/2022, published in Official Ga zette of 14 October  2022.  
 
2.4 Régimen de inversión  
2.4.4 Promoción y facilitación de las inversiones  
En el párrafo 2.55 informa que "[e]n agosto de 2020 se aprobó el Plan Nacional de Inversiones (PNI) 
del CONINV, (…). En abril de 2022 estaban en marcha la s siguientes medidas previstas en el PNI: 
(…) ii)  la negociación de un acuerdo para el procedimiento acelerado de examen de patentes; iii) la 
facilitación de la puesta en marcha de proyectos de transformación digital que puedan facilitar las 
inversiones; ( …); v)  la facilitación de la concesión de visados a trabajadores e inversores 
extranjeros"  
Pregunta 5  
¿Podría brindar mayor información sobre los trabajos que se están desarrollando actualmente en el 
marco del Plan Nacional de Inversiones en materia de p rocedimientos acelerados de examen de 
patentes, de facilitación de la puesta en marcha de proyectos de transformación digital que puedan 
facilitar las inversiones y de facilitación en el otorgamiento de visados a trabajadores e inversores 
extranjeros?  
 
Reply: 
En materia de procedimientos acelerados de examen de patentes, la Secretaría del CONINV, a cargo 
de la Subsecretaría de Inversiones Extranjeras (Sinve), realizó reuniones de coordinación con la 
Secretaría Especial de Productividad y Competitividad (SEP EC/ME) y el Instituto Nacional de 
Propiedad Intelectual (INPI) para adelantar esta demanda. Como resultado de estas negociaciones, 
se acordó que entre los países BRICS, solo India no tenía un acuerdo de PPH (Patent Prosecution 
Highway Agreement) con el gob ierno brasileño. Así, se sugirió que durante una reunión de los BRICS 
se aproveche una reunión bilateral con India, para que se retome el tema a discusión. Por lo tanto, 
el tema fue remitido al MRE y se espera su posible evolución.  WT/TPR/M/432/Add.1  
 
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En lo que se refiere a los proyectos de transformación digital, hay varios proyectos que están siendo 
ejecutados por el Ministerio de Infraestructura, tales como: Documento Electrónico de Transporte 
DT-e; Puerto Sin Papeles (PUCOMEX); Embarque más seguro, iniciativa de  la Secretaría Nacional de 
Aviación Civil del Ministerio de Infraestructura – SAC/MInfra; TECA DIGITAL, destinado a simplificar 
y agilizar el transporte de carga aérea y Transformación Digital de los servicios de aprobación de 
proyectos de inversión de Deb entures Incentivados y Reidi (Régimen Especial de Incentivos para el 
Desarrollo de Infraestructuras) en el sector de infraestructuras de transporte.  
Sobre  la facilitación de la concesión de visados, en la reunión del Grupo Técnico del CONINV sobre 
este tem a, la División de Inmigración del Ministerio de las Relaciones Exteriores (MRE) informó que, 
de acuerdo con la Ley N° 13.445/2007, que instituyó la Ley de Migración en el país, ya no existe 
una visa específica de negocios. De acuerdo con esta Ley, existen los siguientes tipos de visa: la 
visa de visita, concedida a los extranjeros que vienen a Brasil por turismo, negocios, tránsito, 
actividades deportivas o artísticas y demás casos definidos en la normativa; visa temporal, que se 
otorga por razones de traba jo, estudio, investigación y reunión familiar, entre otras; visa 
diplomática, que se otorga a autoridades y funcionarios extranjeros en misión oficial en Brasil; y la 
visa de cortesía, otorgada a personalidades y autoridades extranjeras en viaje no oficial  a Brasil. 
También se señaló que, en 2019, Brasil decidió liberar unilateralmente la exención de visa para 
países considerados estratégicos, como Estados Unidos, Canadá, Australia y Japón. La medida tiene 
como objetivo estimular el turismo y los negocios i nternacionales con Brasil. También podrán llevarse 
a cabo negociaciones bilaterales, regionales o plurilaterales al respecto. Además, con el fin de agilizar 
el sistema de análisis de visas por parte de la red consular, se destacó el trabajo de los Centros de 
Visas, que son empresas tercerizadas que brindan servicios a las oficinas consulares en la realización 
del trámite y tramitación de documentos relacionados con las solicitudes de visa.  
 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES  
3.1 Medidas que afectan direct amente a las importaciones  
3.1.4 Otras cargas que afectan a las importaciones  
En el párrafo 3.42 el informe indica que, en varios Estados de Brasil, la presentación de copias 
impresas de los comprobantes de liquidación tributaria sigue siendo un requisito previo para el 
levante de las importaciones, y que las autoridades han indicado que todas las importaciones estarán 
sujetas al despacho sin papel y a la recaudación centralizada de los derechos y cargas aplicables 
una vez que la DUIMP esté plenamente impla ntada.  
Pregunta 6  
¿Podrían indicar el plazo en que el DUIMP estará plenamente implementado?  
 
Reply:  
It is expected to be concluded by the end of 2024. The Management Committee ( "Comissão 
Gestora ") of Siscomex is expected to take a decision on the issue in its last meeting of 2022.   
 
3.2 Medidas que afectan directamente a las exportaciones  
3.2.4 Apoyo y promoción de las exportaciones  
3.2.4.1 Programas de apoyo a las exportaciones  
El párrafo 3.72 indica que, en el marco del programa destinado a las Empresas Predominantemente 
Exportadoras (PEC), las empresas que obtienen más del 50% de sus ingresos brutos de las ventas 
en el extranjero siguen teniendo derecho a la suspensión de los gravámenes PIS, COFINS e IPI sobre 
las compras de insumos, ya sean nacionales o  importados. En abril de 2021 había 598 empresas 
predominantemente orientadas a la exportación (frente a 505 empresas en marzo de 2017).  
Pregunta 7  
¿Podrían enumerar todos los criterios que debe cumplir una empresa para ser 
considerada  "Predominantemente Exportadora"?  
 
Reply:  
Se considera persona jurídica preponderantemente exportadora aquella cuyos ingresos brutos por 
exportaciones al exterior, en el año calendario inmediatamente anterior a la adquisición, hayan sido 
iguales o superiore s al 50% (cincuenta por ciento) del total de sus ingresos brutos por enajenación 
de bienes y servicios en el mismo período, después de excluir los impuestos y contribuciones que 
gravan la venta.  
El objetivo del régimen es únicamente evitar la acumulación d e impuestos sobre los insumos, no 
promover las exportaciones.  
Base: art. 40 de la Ley 10.865/2004.  
 WT/TPR/M/432/Add.1  
 
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  3.3 Medidas que afectan a la producción y al comercio  
3.3.5 Comercio de Estado, empresas de propiedad estatal y privatización  
En los párrafos 3.148 a 3.153 el informe indica que el gobierno de Brasil inició en 2019 una política 
de desinversión de las empresas con participación estatal, creando para supervisar ese proceso la 
Secretaría de Desnacionalización, Desinversión y Mercados (SEDDM) del Ministerio de Ec onomía. El 
informe menciona, asimismo, que las empresas públicas federales se redujeron de un total de 220 
en 2017 a  133 en 2022, habiendo en 2022 un total de 503.376 personas empleadas, número que 
bajó a 446.607  personas a diciembre de 2021.  
Pregunta 8  
¿Podría indicar si el objetivo del gobierno en cuanto al proceso de desinversión es reducir a cero el 
número de empresas públicas federales?  
 
Reply:  
The main objective of the Brazilian government is that the development of public policies be carried 
out in t he most efficient way, either through SOEs or through other institutional models.  
Thus, the maintenance of an SOEs will be justified to the extent that it is considered the best way 
to provide society with the necessary services. If the government 's analy ses indicate that a SOE is 
not the most efficient model for delivering a public policy and that the private market can provide 
service with quality, the privatization process can be initiated.  
 
Informe WT/TPR/G/432  
3. EVOLUCIÓN DE LA POLÍTICA COMERCIAL (20 17-2021)  
3.5. MERCOSUR  
Pregunta 9  
¿Podría Brasil indicar en qué instancia del procedimiento interno de aprobación se encuentran los 
instrumentos mencionados en el párrafo 3.43 y cuál es su plazo aproximado de finalización?  
Respuesta:   
Los acuerdos mencionados se encuentran en trámite en comisiones temáticas de la Cámara de 
Diputados de Brasil:  
 
- Acuerdo para la eliminación del cobro de cargos de Roaming Internacional a los usuarios 
finales del MERCOSUR : Comissão de Relações Exteriores e de Defesa N acional y Comissão de 
Constituição e Justiça e de Cidadania  
- Acuerdo sobre Facilitación del Comercio del MERCOSUR : Comissão de Relações Exteriores e 
de Defesa Nacional; Comissão de Desenvolvimento Econômico, Indústria, Comércio e Serviços; 
Comissão de Fin anças e Tributação; y Comissão de Constituição e Justiça e de Cidadania  
- Acuerdo para la protección mutua de las Indicaciones Geográficas originarias en los 
territorios de los Estados Partes del MERCOSUR : Comissão de Relações Exteriores e de Defesa 
Nacion al; Comissão de Desenvolvimento Econômico, Indústria, Comércio e Serviços; y Comissão de 
Constituição e Justiça e de Cidadania  
- Acuerdo de reconocimiento mutuo de Certificados de Firma Digital del MERCOSUR : 
Comissão de Constituição e Justiça e de Cidadani a 
 
Una vez aprobados en las respectivas comisiones, los acuerdos seguirán para votación en el plenario 
de la Cámara de Diputados. Una vez aprobados en plenario, pasarán por tramitación en el Senado 
Federal. No es posible estimar un plazo para la aprobación  final de los acuerdos en el Legislativo.  
 
El Acuerdo de Reconocimiento Mutuo de Operadores Economicos  Autorizados de MERCOSUR 
entró en vigencia en la fecha de su firma (artículo 9).  
 
4. MARCO INSTITUCIONAL Y REGLAMENTARIO DEL COMERCIO  
4.2.3.  Servicios  
Párrafo 4.100, según las estadísticas de Brasil, en 2021, luego de la contracción económica post -
pandemia, las importaciones de bienes crecieron un 38.9% mientras que las de servicios crecieron 
un 1.5%, esto es, 26 veces menos que las de bienes.  
Pregunta 10  
¿Existe en Brasil alguna tasa, impuesto o costo diferencial aplicado a los servicios domésticos y/o a 
los importados de modo tal que genere un desincentivo para las importaciones?  
 
Reply:  
Tasas e impuestos no son aplicados, como regla general, de manera diferencial o discriminatoria 
entre proveedores de servicios domésticos y extranjeros. Excepcionalmente se aplican tasas 
diferenciales a servicios importados, como el CIDE -Remessas, la CONDECINE y la TUF, basada en 
necesidad de captación tributar ia en ciertos sectores .  WT/TPR/M/432/Add.1  
 
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INDIA  
Questions based on Secretariat Report (WT/TPR/S/432)  
WT/TPR/S/432, Pg. -15, 1.1  - Reportedly, Brazil's GDP per capita and productivity indicators were 
73% lower than OECD best performers in the period 2000 -19. As of November 2019, the so -called 
Brazil cost, i.e. a set of structural constraints hampering competitiveness, was estimated at 
BRL 1.5 trillion (USD 350 billion) or 22% of GDP. According to the OECD, Brazil's informal economy 
is larger than that in countries a t similar levels of income and its labour productivity is estimated to 
be only one -quarter of average labour productivity in the formal sector.  
Question 1:   
India would appreciate a response on how Brazil accounts for its informal economy's performance, 
in this context three separate responses are sort:  
1. What are the mechanisms adopted by Brazil's institutions to enhance labour productivity in 
the informal sector?  
2. Provide the list of productivity parameters used for assessing labour performance of the 
inform al sector - are they different from what is used for the formal sector?  
3. What is the process of aggregation of these indicators from a sub -federal level to the central 
institutional level - a) do the private sector (educational institutions, etc) play any r ole, and 
b) does it use a census or survey -based assessment?  
Reply:  
Brazil is committed to increasing the productivity of its workforce, creating solid structures for 
professional qualification and skills development.  
The challenge posed by the pandemic of reconciling the maintenance of jobs and income with 
emergency public health measures led Brazil to implement successful programs, such as the 
Emergency Aid, which ensured immediate income - at a time when commerce and other 
environments of work  were partially closed - to more than 68 million citizens in vulnerable situations, 
part of them in the informal economy.  
In addition to supporting the informal worker, the Government also helped micro and small 
entrepreneurs, through another policy: the N ational Support Program for Micro and Small Businesses 
(PRONAMPE). The Brazilian government encouraged financial inclusion and access to microcredit for 
entrepreneurs, who form the social fabric of our productive structure.  
With an unequivocal commitment t o the pillars of flexibility, less bureaucracy and digital 
transformation in the labor market, Brazil achieved important numbers.  
Among the G20 countries, Brazil registered the biggest drop in unemployment in the last 12 months. 
The country reached more th an 96 million employed individuals in the labor market, a historic record. 
Last year, 2.7 million jobs were formalized, the highest level in the last 10 years. Only until April of 
this year, 800,000 new jobs were created.  
Brazil is committed to valuing its  workforce through the creation of a program aimed at young 
apprentices. More than 200,000 apprentices will receive support in their training and strengthening 
their qualifications this year.  
The federal government has not forgotten vulnerable groups, such  as informal workers, workers 
with low professional qualifications, young people, the elderly and women. Formulating more 
comprehensive public policies that effectively bring everyone on board and reversing inequalities in 
the labor market is critical so t hat no one is left behind.  
Devising legal frameworks and strategies to reduce informality in the labour sector and provide more 
better opportunities for decent work is one of main challenges faced by policymakers. We believe in 
social dialogue as a fundame ntal democratic tool for a sustainable economic recovery, with measures 
that encourage the creation of socially fair and environmentally correct jobs.  
WT/TPR/S/432, Pg. -19, Pg. -23, 1.4 & 1.10 . Brazil's limited participation in global value chains 
(GVCs) se ems characterized by an intense forward participation as a primary product supplier and 
low backward participation, with a reduced use of imports in exports; in 2018, out of 35% of GVC 
participation in total gross exports, forward participation accounted f or 22%, whereas backward 
participation for 13%, compared to 32.1% and 12.5%, respectively, in 2015. According to United 
Nations Conference on Trade and Development (UNCTAD) estimates, in 2017, Brazil WT/TPR/M/432/Add.1  
 
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  ranked  21st (22nd in 2010) among the world's 25 top expo rting developing economies by GVC 
participation rate; its GVC participation in exports (40% upstream) stood below the average of the 
developing exporting economies (56%).  
Trade and domestic reform are considered as intrinsically linked. According to the OE CD, only 
productivity -boosting structural reforms would allow realizing Brazil's potential and improving well -
being and living standards.  
Question 2:  
Brazil has very low participation in global value chains as suggested in paragraph 1.4, reflected by 
its GVC participation in exports (40% upstream) which is lesser than the developing 
country's  average of 56%.  
1. Against this backdrop, Brazil is requested to explain how the productivity -boosting structural 
reforms would help increase the participation by fi rms to boost its GVC participation?  
Reply:  
In the last years, concessions of infrastructure, sanitation, energy, cabotage, 5G and 
telecommunications raised 30 billion dollars of signing bonus and committed 200 billion dollars of 
investment for the next dec ade. Brazil continues to push ahead with structural reforms and 
modernization of regulatory frameworks.  
The improvement of the business environment comes with greater international integration and 
boosts GVC participation.  
2. Could Brazil indicate the secto rs selected for the productivity -boosting structural reforms?  
Reply:  
The policies conducted in Brazil for productivity -boosting structural reforms are horizontal.  
 
WT/TPR/S/432, Pg. -22, 1.7 & 1.8  - The BCB remains in charge of monetary and exchange rate 
policy, and as from February 2021 it became de jure  autonomous.  
Brazil maintains a floating exchange rate system with no restrictions on currency conversion and 
transfers for current international transactions; the system continues to work as an important sh ock 
absorber.  
Question 3:  
Foreign exchange operations remain subject to a financial transaction tax (IOF) of up to 6.38% 
which is to be gradually reduced to zero by 2029 for certain foreign exchange currency settlements.  
1. Has Brazil conducted any detailed analysis of the implication of the process of elimination of 
IOF? In the context of its impact on the floating exchange rate system and would it alter 
the RER? 
Reply:  
The IOF levied on cross -border operations has been progressively reduced over the years, notably 
from 2003 to 2014. Whether due to their nature or the volume of operations involved, none of the 
remaining active IOF rates has a prudential intent or impact on the well -functioning floating 
exchange rate regime and, as such, it doesn 't alter the R ER. It is currently considered a source of 
fiscal revenue instead, and thus, the analysis involved in this last round of reduction has solely 
focused on its fiscal impact.  
WT/TPR/S/432 Pg. -23, 1.10 . Trade and domestic reform are considered as intrinsically  linked. 
According to the OECD, only productivity -boosting structural reforms would allow realizing 
Brazil's  potential and improving well -being and living standards (Sections 1.1 and 1.2.1). During the 
review period, an ambitious supply -side reform agenda aimed at boosting productivity, potential WT/TPR/M/432/Add.1  
 
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growth, and living standards was launched. According to the authorities, Brazil is one of the very 
few countries in which market -friendly structural reforms have been moving ahead despite the 
pandemic. They, inter alia, involved institutional reforms; autonomy of the BCB (Section 1.2.3.1); 
privatization; labour market and pension reform (Section 1.2.3.2 and 1.2.4.4); efficiency and 
inclusiveness in the financial sector; new mechanisms to control mandatory spending g rowth 
(Box 1.1 and Section 2.1); import tariffs reductions (by 10% for 1,495 products, all import tariffs 
below 2% to zero) (Section 3.1.3.1); and new laws on sanitation, start -ups, natural gas, and 
bankruptcy. The Government is very committed structural r eforms; as of June 2022, approval of 
further labour reform and then changes to social security regulations and a proposal for an 
administrative reform and several bills about taxation were under discussion at the Congress and in 
advanced stages.37  Accordin g to the IMF, recent reforms have already attracted private investment 
of USD  8.3 billion (0.6% of GDP) into transportation, energy, and water and sewage in 2020, and 
are expected to generate additional infrastructure investment (Section 1.3.2). According to 
the OECD, further reforms to improve domestic regulation and competition, reduce barriers to 
foreign trade, and improve institutions and economic governance could boost annual per capita GDP 
growth by 0.9 percentage points over 15 years.  
Question 4:  
According to the OECD 2020) report "OECD Economic Surveys: Brazil 2020, December" external 
competition is hampered by high trade barriers that have cut off Brazil from opportunities for 
international trade. Trade barriers are even higher for capital goods and intermediate inputs, 
elevating domestic production costs. High average tariff rates are one of the major barriers. What 
steps Brazil has taken to remove the trade barriers?  Link: https://www.oecd.org/  
economy/surveys/Brazil -2020-OECD -economic -survey -overview.pdf . 
Reply:  
Brazil has followed a trade agenda based on 3 pillars:  
I. Celebrati on of commercial agreements;  
II. Modernization of the tariff structure; and  
III. Reduction of non -tariff barriers to trade.  
Among the main steps to remove trade barriers to Brazilian exporters and to imports, we highlight 
the conclusion of important free t rade agreements (eg: Mercosur – European  Union , 
Mercosur  – EFTA and Protocol of Trade Rules and Transparency Brazil – United States), the 
promotion of trade facilitation and reduction of bureaucracy in Brazilian foreign trade and import tax 
reduction in co njunction with other Mercosur Partners.  
WT/TPR/S/432, Pg. -38, 2.15  – "The policy setting remains to some extent characterized by 
persisting "infant industry" protection and tariff jumping principles. Its tools comprise border 
measures coupled with complex and possibly distortive tax and non -tax incentives, inter alia , 
involving local content requirements, administered interest rate or subsidized credit, and other 
targeted subsidies often leading to cross -subsidization elements affecting the economy and its 
prospects".  
Question 5:  
What are some of the sectors in which Brazil imposes domestic content requirements as a non -tax 
incentive?  
Please provide further details on the local content requirement applicable to all sectors. Have these 
local content requireme nt clauses been notified to the WTO under the relevant committees?  
Reply:  
Brazil does not grant subsidies contingent upon the use of domestic over imported goods. All 
subsidies granted by Brazil are notified to the WTO and are consistent with WTO rules.  WT/TPR/M/432/Add.1  
 
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  WT/TPR/S/432 Pg. -39, 2.19 . During the review period, regulatory reform was initiated. 
Brazil's  regulatory requirements on product markets appear to have long been significantly more 
cumbersome and restrictive than in OECD countries, and lack transparency and  simplicity. Following 
its application for full OECD membership in 2017, Brazil adopted measures to simplify regulations, 
increase transparency, and encourage trade, including more than 30 OECD legal instruments. 
A 2019 joint OECD/Brazil report identified areas where discrepancies existed between Brazil's laws 
and OECD guidelines. The review found that Brazil should enact measures such as cutting red tape 
to facilitate compliance, improving tax administration effectiveness, and providing legal certainty 
regarding taxes for international transactions. In 2019, regulatory action for the review and 
consolidation of normative acts below decrees (i.e. ordinances, resolutions, normative instructions, 
office notices, normative guidelines, guidelines, recommendation s, approval orders, any other act 
lower than decree with normative content) was taken. Recent efforts take stock of the complexity 
of current regulation; according to the authorities, as of September 2021, Brazil had 
identified  72,537 normative acts relati ng to 77 public entities, of which 45,704 were reviewed, 
22,519 were revoked, and 3,055 were consolidated. In addition, work is in progress under the 
National Investment Committee's  
(CONINV) National Investment Plan (PNI) Regulatory Agenda for Improving t he Investment 
Environment (Sections 2.4.1 and 2.4.4).  
Question 6:  
Brazil should enact measures such as cutting red tape to facilitate compliance, improving tax 
administration effectiveness and providing legal certainty regarding taxes for international 
transactions. However, Indian Companies still face numerous challenges in operating and exporting 
to Brazil, due to the complexities of Brazil's domestic tax system, including multiple cascading taxes 
and tax disputes among the various states . Can Brazil address the issues faced by Indian companies 
operating there?  
 
Reply:  
Considering the implementation of better regulation practices, in accordance with the provisions of 
Decree No. 10,139/2019, the Executive Secretariat of the Foreign Trade Board Chamber carried out 
the exercise of reviewing Camex 's regulatory stock. In all, 317 normative acts were revoked, 
approximately 20% of Camex's regulatory inventory. In addition, many normative acts were 
reviewed and consolidated. It is worth me ntioning the Resolutions that consolidated Brazil's import 
tariff, taking into consideration all Common External Tariffs exemptions (as explained in itens 3.28, 
3.31 and 3.32). These Resolutions also consolidated the BK and BIT products for which the impor t 
tariffs are zero (as explained in item 3.30).  
Considering measures towards the investment landscape, the Regulatory Agenda for Improving the 
Investment Environment (RAIIE) was developed through extensive consultations with regulatory 
agencies and, subseq uently, a public consultation with civil society. The result was the elaboration 
of a program that directly or indirectly includes important sectors of the economy. This is a program 
focused on infra -legal regulations (more operational) and contains approx imately 200 regulations 
that will be subject to regulatory improvement.  
 
The RAIIE includes relevant topics to make the business environment more friendly and attractive 
to investors, including: 1) modernization of the electricity sector (generation, trans mission and 
regulation), 2) new gas market, 3) modernization of the aviation sector (certification of airlines, 
digital transformation, etc.), 4) improvement of rules and criteria for granting and renewing the 
registration of medicines and the requirements  for the evaluation of new foods and new ingredients, 
5) improvement of the customs clearance regime for imports and exports and the customs transit 
regime, 6) improvement in the taxation of transactions for the sale of goods and services, 7)  
Modernization  of the regulatory metrology model, 8) review of the regular road transport market so 
that it operates in an environment of free and open competition, 9) improvement of the rail freight 
service, rail traffic and auxiliary operations, 10) simplification of the Inland Navigation Statutory WT/TPR/M/432/Add.1  
 
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Inventory, 11) authorization regulation for the construction and operation of a terminal for private 
use, a cargo transfer station, a small public port facility and a tourism port facility.  
WT/TPR/S/432, Pg. -52, 2.40 . During  the review period, action for expanding the 
MERCOSUR  RTAs network was taken. Negotiations on free trade agreements between MERCOSUR 
and the European  Union, a priority for Brazil, and with the EFTA countries were in principle concluded 
in 2019. Both agreem ents are more comprehensive than the agreements signed in the past as in 
addition to tariff reductions they cover issues such as services, IPRs, government procurement, and 
sustainable development; as of June 2022, the parties were still concluding the tec hnical and legal 
review, after which the texts are to be translated, prepared for signature, and submitted for 
parliamentary ratification. Upon its entry into force, the agreement with the European  Union is to 
provide full tariff elimination on 92% of impo rts from MERCOSUR and 95% of its tariff lines, along 
with partial concessions under TRQs, fixed margins of preferences, and entry prices, thus raising its 
coverage to 99% in terms of EU tariff lines.  
Question 7:  
India would like to understand the details o f the trade agreement between the European  Union and 
MERCOSUR, in particular, the details of the TBT and SPS chapters in the agreement, in terms of its 
usage for application as a market access barrier for 95% of tariff lines.  
1. Do these chapters on regulation provide the HS details?  
Reply:  
No. 
2. What is the extent of harmonization or elimination of regulations achieved under the SPS  and 
TBT measures?  
Reply:  
The TBT Chapter applies to the whole universe of goods. There are, however, two specific sectori al 
initiatives, regarding electric and electronic equipment and vehicles. In the electric and electronic 
equipment sectorial initiative (Annex 1 of the TBT Chapter) there is a definition of the scope. 
Regarding the Car Annex, it applies to "trade between t he Parties of all categories of self -propelled 
road vehicles (including passenger, cars, buses, motor cycles, vans, trucks), together with their 
equipment and parts, falling inter alia  under Chapters 40, 84, 85, 87, 90 and 94 of the HS 2017 
(hereinafter re ferred to as "products covered"). " 
The full, pre -signature, text of the Chapter and the Car Annex can be found in the following 
addresses: https://www.gov.br/mre/pt -br/medi a/barreiras -tcnicas -ao-comrcio.pdf  (TBT Chapter 
and Electric and electronic equipment annex); and · https://www.gov.br/mre/pt -br/media/anexo -
auto. 
The TBT chapter establishes disciplines that go  beyond the WTO and consolidate an agenda of good 
practices regulations that Brazil has been implementing in recent years, particularly within the scope 
of the OECD accession project. In addition, the chapter encourages regulatory coop -eration, 
transparenc y and establishes that impact assessment studies can be carried out in the adoption of 
measures. Furthermore, it consolidates the recognition of international reference organizations.  
The SPS chapter also seeks to go beyond the WTO 's SPS  Agreement , includi ng in relation to the 
observance of the scientific principle, observance of international standards from the "three sis -ters" 
(CODEX, WOAH and IPPC), and transparency and predictability when adopting measures.motivo.pdf 
(Car Annex).  
 
WT/TPR/S/432 Pg. -61, 3.2 . During the review period, Brazil's list of import prohibitions remained 
broadly unchanged. Brazil made limited use of export taxes, two of which were eliminated during 
the review period. Brazil remains a significant user of anti -dumping (AD) measures; changes were 
made to the regulatory and institutional framework for trade remedies. Brazil also updated its 
drawback and export processing zone regimes, and adopted guidelines for reforming the system of 
federal -level export support. Brazil's internal taxation regime remains complex, including in the 
treatment of imported goods and services. Support to domestic production and trade in the form of 
tax and non -tax incentives continued.  
 WT/TPR/M/432/Add.1  
 
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  WT/TPR/S/432 Pg. -10, 9 . During the review period, Brazil maintained import prohibitions on 
health and moral grounds, and to comply with international conventions to which it is a party; its 
list of import prohibitions remained broadly unchanged. Brazil remains a significant user of trade 
remedies, particu larly anti -dumping measures. The regulatory framework on trade remedies was 
amended and its institutional setting underwent a transformation. The number of definitive anti -
dumping measures dropped from 161 (2017) to 140 (2021) and no safeguard measures wer e taken.  
 
Question 8:  
Brazil remains a significant user of anti -dumping (AD) measures, changes were made to the 
regulatory and institutional framework for trade remedies. (also refer to 4.1.6 Anti -dumping, 
countervailing, and safeguard measures - TPR by Brazil). Will Brazil revi ew and remove Anti -Dumping 
Duties on the import of the following items: -  
● Iron or steel, cast grinding balls and similar articles for mills (up to 19 /6/2023 ) 
● Cast Iron Tubes effective up to November 2024;  
● PET sheets and Films effective up to May 2026;  
● Polyester Textured Synthetic Yearn – Investigation initiated on 4 /3/2021  
As these barriers have also contributed to impeding imports from India besides their overall imports.  
 
Reply:  
Brazil notes that the measure applied to cast iron tubes was terminated for reasons of public interest 
on 4 November  2021 through GECEX Resolution No. 264 of 2021.  
The collection of the antidumping duty applied to polyester textured synthetic yearn has been 
suspended for public interest reasons since its application on 28 August  2022 by GECEX 
Resolution  No. 385, of 2022 . 
As for the other measures, we emphasize that the duration of an anti -dumping duty or countervailing 
measure may be extended for an equal period through an end -of-period review, which must be 
requested by the domestic industry or on its behalf, through a written petition, duly substantiated, 
accompanied by indications that the extinction of the anti -dumping duty would very likely lead to 
the continuation or resumption of dumping and the resulting harm. Thus, as  a rule, these extensions 
must be demanded by the domestic industry, that must present an application for a sunset review 
not later than four months before the end of the duty duration.  
 
WT/TPR/S/432, Pg. -62, 3.8 & 3.9 . As it was at the time of Brazil's pr evious Review, commercial 
imports must still be declared in Siscomex, unless they are declared with a simplified import 
declaration (DSI) or a parcels import declaration (DIR). The fees for registering an import declaration 
(ID) in Siscomex were updated in  2021.7 The requisite supporting documentation includes suppliers' 
invoices; a packing list; a bill of lading (or air waybill); and, where applicable, an import licence 
and/or permit, a certificate of origin, or an SPS certificate. Since 2015, the RFB only  accepts 
electronically submitted IDs and supporting documentation.  
IDs are assigned into one of four selectivity channels: green (automatic clearance), yellow 
(documentary inspection), red (documentary and physical inspection), and grey (documentary, 
physical, and fraud -related inspection). The risk analysis factors are regularly updated and include 
the importer's fiscal compliance record; operational and financial capacity; frequency of use of 
Siscomex; the nature, volume, and value of i mports; taxation value; country of origin; and the 
import regime. During the review period, the share of IDs processed through the green channel 
increased steadily, whereas those of the yellow and red channels decreased (Table 3.1).  
Question 9:  
In the back drop of growing digital trade, India would like to understand what is the extent of the 
breakup of commercial imports to be declared under the Siscomex into 1) simplified import 
declaration (DSI), 2) parcels import declaration (DIR), and the Import declara tion (ID).  
a. Does Table 3.1, row one titled Total ID (Import declaration) represent 100% of total 
imports by Brazil?  WT/TPR/M/432/Add.1  
 
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Reply:  
Table 3.1 presents only the information regarding Import Declarations (ID).  
b. If not, then what is the per cent share of Total ID in the  total imports by Brazil?  
Reply:  
Please find below the information regarding Parcels Import Declaration (DIR) and  Simplified Import 
Declaration (DSI).  
 
DIR 2016*  2017*  2018  2019  2020  2021  
Green  334.783  1.533.452  1.892.726  2.058.892  1.916.688  2.218.228  
Red 9.771  88.393  348.038  371.300  542.082  1.699.699  
Total**  344.554  1.621.845  2.240.764  2.430.192  2.458.770  3.917.927  
* The information provided in the "2016" column refers only to shipments through courrier companies. 
The information provided in the "2017" column includes all shipments through courrier companies 
and partially postal shipments. That is because in 2017 a new system was implemented  (Siscomex 
Remessa).  
** The numbers provided in this table do not include the pa rcels that were subject to import tax 
exemption (with a customs value under BRL 50, among other requirements).   
DSI 2016  2017  2018  2019  2020  2021  
Total 46.908  48.351  39.435  38.621  21.842  18.794  
 
WT/TPR/S/432, Pg. -64, 3.21.  – Brazil has expanded its non-preferential rules of origin with an 
alternative criterion for products deemed to have undergone substantial transformation: non -
originating materials' share must not exceed 50% of the final product's FOB value.  
Question 10:  
For non-preferential RoO, does Brazil allow self -certification by exporters wherein the exporter or 
the producer self -certifies the origin of the product without any government body verifying it? Or is 
there involvement of any government agency in the certific ation of origin process?  
Reply:  
As to non -preferential proof of origin, Brazil does not require any proof of origin in the importer 
process.  
In case of reasoned doubts as to the declared origin of a particular good, the Secretariat of Foreign 
Trade of the Special Secretariat of Foreign Trade and International Affairs, of the Ministry of 
Economy, may initiate and carry out a special procedure of non -preferential origin verification, based 
on Law No. 12,546, of 14 December  2011, and SECEX Ordinance No. 87, of  31 March 2021.  
In the case of Brazilian exportations, the importer country is who require the way and the conditions 
of the proof of origin. Self - certification, certificate of origin or other condition.  
WT/TPR/S/432, Pg. -67, 3.34 . The process of certifyi ng Brazil's bound tariff schedule to 
incorporate the changes resulting from the introduction of nomenclature versions subsequent to 
HS02 has not been completed. In the absence of a common nomenclature version, comparisons 
between Brazil's bound and applied  tariffs (based on HS02 and HS22, respectively) are prone to 
imprecision. With that caveat, the simple average bound tariff rate (30.2%) was some 
20.2 percentage points higher than the average MFN rate applied on 1 April 2022 (Chart 3.3) and 
20.7 percentag e points higher than the average MFN rate applied on 1 July 2022.  
Question 11:  
Sustainability and climate change concerns have driven the last three transpositions carried out by 
WCO (HS12, HS17 and HS22), given this consideration, India requests for the s teps taken by Brazil WT/TPR/M/432/Add.1  
 
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  to address the imprecision caused by the absence of a common nomenclature version, in addressing 
and tracing the progress under the SDGs, in particular the Goal -12. 
Reply:  
Brazil submitted its bound rate schedule transposed to the HS 2 007 version to the WTO's Secretariat 
in May/2022. To date, the document is under WTO examination for approval.  
WT/TPR/S/432 Pg. -86, 3.110 . Brazil's Scientific and Technological Development Fund (Fundo 
Nacional de Desenvolvimento Científico e Tecnológico (F NDCT)), created in 1969, remains a major 
source of financing for science, technology, and innovation (S, T&I) projects. The Financiadora de 
Estudos e Projetos (FINEP), a public enterprise linked to the Ministry of Science, Technology and 
Innovation (MCTI),  continues acting as the FNDCT's executive secretariat, with responsibility for 
accounting and administrative operations. FINEP also serves as financial agent for specific 
programmes funded by, inter alia , the National Treasury and the Worker Support Fund (FAT).  
3.112.  FINEP finances Brazilian research institutions and companies active at every phase and 
dimension of the scientific and technological development cycle (e.g. basic research, applied 
research, and technological innovation). It also provides fin ancial support for the organization of 
conferences, seminars, and fairs approved by the National Council for Scientific and Technological 
Development (CNPq). The authorities affirm that eligibility requirements for FNDCT support are not 
based on any nation ality, residency, or domestic ownership criteria.  
Question 12:  
The number of patents filled in Brazil has decreased from the year 2017 to 2021. (Table 3.20). Why 
are the Financiadora de Estudos e Projetos (FINEP) and policies of the Ministry of Science, 
Technology and Innovation (MCTI) not contributing to the Patent filing in the Country? What are the 
reasons for the decrease in the number of patent filings from 2017 -2021?  
Reply:  
Although FINEP and other funding agencies provide support for the development of innovation in 
the country, the broader context of low economic growth followed by the COVID -19 pandemic 
harshened the conditions for innovation in the country.  
WT/TPR/S/432 Pg. -87, 3.117 . 
The marketing of products and services, which are both under INMETRO's authority and subject to 
compulsory conformity assessment, remains conditional on inscription in INMETRO's Register of 
items.128 In addition, importers of products regulated by INMETRO must apply for an import licence 
through Siscomex and request its analysis for approval at INMETRO.129 Other regulatory agencies, 
such as ANVISA, MAPA, and ANATEL, also have competence to require inscription in their respective 
registers. Pharmaceutical ra w materials can only be imported by companies holding an authorization 
to operate in Brazil, issued by ANVISA.  
Question 13:  
Pharmaceutical raw materials can only be imported by companies holding an authorization to operate 
in Brazil, issued by ANVISA (als o refer to para 4.13 of page 26 of TPR by Brazil). Will Brazil consider 
granting fast track/suo moto approvals for products manufactured in India that already have 
approvals of Stringent Authorities like USFDA and EMA?  
Reply:  
To import API (Active Pharmace utical Ingredients) the importer must have an AFE (Company 
Authorization to Import). The approval of the AFE takes approximately 30 days after submitted to 
Anvisa.  
For some API, the manufacturing site must have a GMP (Good Manufacturing Practices) Certific ate 
issued by Anvisa. The GMP certificate is issued if the company complies with GMP standards that are 
verified during an GMP inspection that can be conducted by Anvisa or an inspection conducted by 
one of the participating authorities of the API Cluster Program. 
(https://globalregulatorypartners.com/brazils -anvisa -is-accepted -in-international -api-inspection -
program/ ). 
It is also worth noting that Anvisa is currently working in reliance frameworks under the umbrella of 
Resolution RDC 741/2022. Each specific office i s working in their own specific framework according 
to the product category (medicines, medical devices, e.g.) and procedure (registration, inspection, 
e.g.). The reference authorities may vary according to the product category and procedure.  
 WT/TPR/M/432/Add.1  
 
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WT/TPR/S/432 , Pg.-88, 3.121 . 
At the national level, CONMETRO's non -binding Guide on Good Regulatory Practices continues to 
frame the elaboration, dissemination, periodic review, and elimination of technical regulations and 
conformity assessment procedures. Technical r egulations may be established through laws, decrees, 
ordinances, normative instructions, or resolutions, and should be published in the Official Gazette. 
A period of six months is typically allowed between the publication of a measure and its entry into 
force. Ministries and agencies with authority to elaborate and issue technical regulations may do so 
ex officio or at the request of a third party. The holding of public consultations is generally required, 
except in exceptional cases. The authorities indica te that most technical regulations enacted in Brazil 
are based on international standards or MERCOSUR regional standards; when this is not the case, 
they are based on performance criteria. The recommended period for review and revision of technical 
regulat ions is five years.  
Question 14:   
Brazil is requested to elaborate on the following,  
1. The holding of public consultations is generally required, except in exceptional cases. What 
events fall under the ambit of exceptional cases?  
Reply:  
The events that exemplify exceptional cases are:  
1. rectification or correction of the technical regulation;  
2. when there is no change of merit in the technical regulation;  
3. for urgent safety, health, environmental protection or national security issues (as in the case  of 
the Sars Covid -19 pandemic).  
2. The authorities indicate that technical regulations enacted in Brazil can be based on 
performance criteria. What are the parameters to defined under the performance criteria?  
Reply:  
As the object of technical regulations va ry, the performance criteria used in each technical regulation 
depends on the international standard used as a reference. Thus, the rule for defining the 
performance criteria is that of the international standard used as a reference for the technical 
regulation.  
WT/TPR/S/432, Pgs. -88-89, 3.122 . Generally, the process for adopting conformity assessment 
procedures is similar to the one for technical regulations. Conformity assessment may involve 
certification, performance verification, sampling, labelling, in spection, and a conformity declaration 
by the supplier; certain activities (e.g. certification) may be delegated to accredited third parties. 
The supplier's declaration of conformity is an admissible instrument only for products or services of 
low to mediu m risk to human health and safety. In general, labelling requirements relate to the 
products' quality, quantity, composition, guarantee, shelf life, origin, and risks to consumer health 
and safety. All labels must bear this information in Portuguese and in dicate the brand or name of 
the manufacturer.  
Question 15:  
Brazil is requested to explain the following,  
1. How is the term third party defined? Are foreign firms allowed to engage as a third party?  
Reply:  
Third party body is defined in the ABNT ISO/IEC 17000 Standard as: "Body that performs conformity 
assessment services whose activities are carried out by a person or an organization that is 
independent of the person or organization that provides the object , and of user interest in that 
object ". And according to the definition, foreign bodies may qualify as third party bodies (accredited) 
in activities related to technical regulations, however, they will need to comply with the provisions 
of the General Regu lation for Product Certification, Inmetro Ordinance 200 of April 2021, that is, 
having legal representation in the Brazilian territory.  
 WT/TPR/M/432/Add.1  
 
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  WT/TPR/S/432, P -88-89, 3.122 . Generally, the process for adopting conformity assessment 
procedures is similar to the on e for technical regulations. Conformity assessment may involve 
certification, performance verification, sampling, labelling, inspection, and a conformity declaration 
by the supplier; certain activities (e.g. certification) may be delegated to accredited th ird parties. 
The supplier's declaration of conformity is an admissible instrument only for products or services of 
low to medium risk to human health and safety. In general, labelling requirements relate to the 
products' quality, quantity, composition, gua rantee, shelf life, origin, and risks to consumer health 
and safety. All labels must bear this information in Portuguese and indicate the brand or name of 
the manufacturer.  
Question 16:  
Brazil is requested to explain the following,  
1. What are the parameters to declare a product or service of low to medium risk to humans 
and safety?  
Reply:  
Decree No. 10.178/2019, which regulates Art. 3, item I, of the Economic Freedom Law (Law  
No. 13,874/2019) was used as the basis for defining the parameters of low  and medium risk to 
safety and people. Such parameters are defined in the Technical Note of Inmetro 's Conformity 
Assessment Board ( https://www.gov.br/inmetro/pt -br/centrais -de-
conteudo/publicacoes/metodologia -de-classificacao -de-risco_dconf.pdf ). 
2. How long does a product or service take to get accredited?  
Reply:  
The time needed for product or service certification depends on th e scope of the measure to be 
accredited and on the level of proficiency of the conformity assessment body requesting 
accreditation. Thus, it is not possible to determine, a priori , how long an accreditation takes.  
 
WT/TPR/S/432, Pg. -89, 3.123 . The Secretar iat Report notes that the ABNT coordinates the 
consensus -based development of Brazilian standards, and represents Brazil in international and 
regional standardization forums (ISO, IEC, and MERCOSUR Standardization Association (AMN)). It 
further notes that standards older than five years are reviewed to ensure that they remain up to 
date. 
Question 17:   
India would appreciate a response from Brazil on the following,  
1. Are there any separate Brazilian standards for MSMEs/SMEs?  
Reply:  
ABNT, in its standard development process, takes into account all the links in the production chain, 
so that a Brazilian Standard is applicable to organizations of all sizes.  
Seeking to engage SMEs even more, ABNT established cooperation agreements with the most 
repres entative entity of the sector in Brazil (SEBRAE) to seek to expand even more the participation 
of these organizations in the standardization work, since the use of standards by SMEs increase their 
ability to participate in markets.  
2. If not, how do the autho rities ensure that the general Brazilian standards do not negatively 
impact MSMEs/SMEs - particularly in the context of Global Value Chains?  
Reply:  
In addition to the procedures described in the previous reply, ABNT encourages the participation of 
regulato ry entities in the development of Brazilian Standards so that they can observe this aspect.  
WT/TPR/S/432, Pg. -89, 3.126 . The Secretariat Report notes that entities seeking accreditation 
to carry out compulsory conformity assessment activities are generally  not required to have a 
permanent office in Brazil, but a few technical regulations stipulate it as a prerequisite.  WT/TPR/M/432/Add.1  
 
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Question 18:  
India would appreciate a response from Brazil on the following:  
How do the authorities ensure authentic certification, inspection, calibration and testing by entities 
that do not have a permanent office in Brazil?  
1. Could you elaborate, which technical regulations stipulate to have a permanent office in 
Brazil as a prerequisite?  
Reply:  
It is the General Regula tion for Product Certification – Inmetro Ordinance 200 of 29  April 2021.  
 
2. Also, kindly highlight the types of products for which this pre -requirement of having a 
permanent office in Brazil is required.  
Reply:  
All products under Inmetro 's regulatory competence.  
 
3. Has the Covid -19 pandemic brought about any changes in the conformity assessment 
procedure? If yes, which are the products that have been affected?  
Reply:  
In general, when tests were required to attest conformity, tests from laborat ories abroad were 
accepted. There has also been extensions in the validity of test certificates, both due to the closure 
of laboratories and to the impossibility of carrying out the tests in Brazil.  
WT/TPR/S/432, Pg. -90, 3.130 . The Secretariat Report notes  that Brazil has a non -automatic 
licensing system in place for imports subject to SPS controls. The importation of some of the goods 
may also require prior authorization, certification (for unrestricted commercialization or quality), 
and/or inscription in a register.  
Question 19:  
Brazil is requested to provide information relating to the category of goods that may require prior 
authorization, certification, and/or inscription in a register. Further, what are the criteria for 
determining which goods would be  subjected to such treatment?  
Reply:  
Information about administrative treatment is available in SISCOMEX. A list of specific measures is 
published the following address: https://www.gov.br/siscomex/pt -br/informacoes/tratamento -
administrativo -1/tratamento -administrativo -na-importacao/ta_lpco_att_imp.xlsx . 
WT/TPR/S/432 Pg. -95, Table 3.18 . Value of federal government procurement in Brazil.  
Year  Total value of 
procurement  Share  
(% of GDP)  Procurement subject to international competitive bidding  
Total value  Share (%) of total procurement  
2016 94,039.2  1.50 162.2  0.17 
2017 78,190.8  1.19 16.3 0.02 
2018 87,651.4  1.25 196.8  0.23 
2019 72,035.1  0.97 0.8 0.00 
2020 87,644.6  1.17 16.3 0.02 WT/TPR/M/432/Add.1  
 
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  Question 20:  
Except for the year 2016 the share of international bidders is less than 0.1% for all years from 
2017-20. What are the reasons behind the low number of grants of bids to international bidders?  
Reply:  
Before October 2020, foreign companies could participate in government procurement bidding for 
goods and services by establishing themselves as a juridical person in Brazil or by setting up a 
branch or office in the country, authorized by the government.  
Normative Instruction No. 10, 2020, by the Secretariat of Management of the Ministry of Economy 
(SEGES) amended previous regulations to allow for the registration of foreign companies not 
estab lished in Brazil into the Unified Supplier Registration System (SICAF). Therefore, after 
October  2020, there is no need to set up a branch or office or a juridical person in the country. As 
of November 2022, there are already 214 (two hundred and fourteen)  foreign companies registered 
in SICAF, and thus, able to participate in public procurement in the federal level in Brazil, even when 
not established in the country.  
WT/TPR/S/432 Pg. -95, 3.156 . Brazil's decentralized system comprises independent 
procuremen t jurisdictions at all levels of government that share a common set of rules established 
by the Federal Government. The common elements used to be mainly set out in the 1993 General 
Procurement Act (Federal Law No. 8,666/1993). During the period under revi ew, the Federal 
Government enacted a new Government Procurement Law (Law No. 14,133, 1  April 2021 – 
Procurement Process and Administrative Contract Law), which aimed at updating and simplifying 
rules and procedures currently regulated by the 1993 Procureme nt Law. The 2021 Procurement Law 
includes provisions on transparency, procurement methods, evaluation of bids, exemptions, appeals, 
and contract management, and it applies to procurement procedures, and contracts entered into by 
entities at the federal, st ate and federal district, and municipal levels in all three branches of 
government (executive, legislative, and judicial). SOEs are not covered by the 2021 Procurement  
Law. 
Question 21:  
1. The 2021 Procurement Law includes provisions on transparency, procurement methods, 
evaluation of bids and exemptions etc. How the new 2021 Law would affect the participation of 
International bidders?  
Reply:  
The 2021 Public Procurement Law further emphasised the principles of non -discrimination between 
national and foreign suppliers, which were already present in the legal framework. Normative 
Instruction No. 10, 2020, by the Secretariat of Management of the Ministry of Economy (SEGES) 
amended previous regulations to allow for the registration of foreign companies not established in 
Brazil into the Unified Supplier Registration System (SICAF). As of November 2022, there are already 
214 (two hundred and fourteen) foreign companies registered in SICAF, and thus, able to participate 
in public procurement in t he federal level in Brazil, even when not established in the country.  
2. What were the reasons to bring the new 2021 Procurement law? Does the new Procurement law 
affect the multilateral and bilateral Agreements of Brazil with other countries?  
Reply:  
The n ew procurement law - Law 14,133/2021 – was designed to consolidate the legal provisions of 
different government procurement systems and modernize the rules for public bidding. It also aimed 
at improving the efficiency and transparency of government procure ment, applicable to the three 
levels of government (federal, state, and municipal). The new legal framework for government 
procurement revokes Law n. 8,666/1993 and Law n. 10,520/2002 (Reverse Auction Law), and 
replaces legal provisions of Law n. 12,462/20 11 (Differentiated Procurement Regime), after a two -
year transition period, as a means to consolidate the provisions from those laws. Therefore, from 
April 2023 onwards, the Law will be exclusively applied. The new law also provided the development 
of a ne w national government procurement database, which will centralize information on all public 
biddings across the three levels of government, improving transparency. The National Public 
Procurement Portal (PNCP) was created as an official website for the cen tralized and mandatory 
disclosure of the acts required by the law. The PNCP can be accessed at https://www.gov.br/pncp/ . 
Among the main updates, one may mention the incorporation of the competitive dialogue modality , 
applicable on specific cases, along with the reverse auction; competitive procurement; contest; and WT/TPR/M/432/Add.1  
 
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auction. Additionally, the law extended the possible criteria for evaluating bidding proposals, which 
are currently six: lower price; biggest discount; be st technique or artistic content; technique and 
price; biggest bid (in case of auctions); and largest economic return. Those provisions are designed 
to modernize and improve the efficiency of the Brazilian government procurement legal framework.  
When Brazi l accedes to bilateral or plurilateral public procurement agreements, they enter into 
Brazil 's legal framework as a special norm, prevailing over the general laws in force that have the 
same coverage. Therefore, these agreements will prevail over any confl icting rules even if there are 
no explicit amendments. For example, the non -application of the rules of preference for national 
products and services or conditions for their application depends on terms of the agreement. Such 
preferences will not be applie d in a manner that is contrary to provisions and commitments for 
covered procurement in those agreements.  
WT/TPR/S/432 Pg. -96, 3.159 . Article 11 of the 2021 Procurement Law provides that the 
procurement process should aim at: (i) ensuring the selection of the proposal capable of delivering 
the most advantageous results for the procuring entity, including by taking into account the life cycle 
cost of the procured object; (ii) ensuring fair competition and equal treatment among suppliers; and 
(iii) encouragin g innovation and sustainable national development. Article 28 provides for the use of 
the following procurement methods: (i) reverse auction (pregão); (ii) competition (concorrência); 
(iii) open tendering (concurso); (iv) auction (leilão); and (v) competit ive dialogue (diálogo 
competitive). Competitive dialogue has not previously existed in the Brazilian system. It allows 
procuring entities to engage in dialogue with selected suppliers with the aim of developing technical 
solutions capable of meeting the ne eds of the procuring entities. The selected suppliers are expected 
to submit their final proposals at the end of the dialogue phase.  
Question 22:  
The competitive dialogue allows procuring entities to engage in dialogue with selected suppliers to 
develop t echnical solutions capable of meeting the needs of the procuring entities. How does it 
promote competition in the bidding process?  
Reply:  
According to art. 32, §1º, of the Procurement Law, the competitive dialogue promotes competition 
both in the pre -selection phase and in the final selection phase. This is ensured by the following 
provisions:  
I – the Administration shall submit, upon publication of the tender documentation on an official 
website, its already defined needs and requirements, and shall establ ish a minimum term of twenty -
five (25) business days for expression of interest in participating in the procurement process;  
II – the criteria used for the pre -selection of the suppliers shall be provided for in the tender 
documentation, and all interested  parties that meet the objective requirements established shall be 
accepted;  
III – the discriminatory publication of information that may imply an advantage to a certain supplier 
shall be prohibited;  
IV – the Administration may not disclose to other suppli ers the proposed solutions or confidential 
information informed by a supplier without its consent;  
V – the dialogue phase may be maintained until the Administration, in a well -grounded decision, 
identify the solution or the solutions that meet its needs;  
VI – the meetings with the pre -selected suppliers shall be registered in minutes and recorded using 
audio and video technological resources;  
VII – the tender documentation may provide for using consecutive phases, in which case each phase 
may restri ct the solutions or the proposals to be discussed.  
VIII – the Administration shall, upon declaring that the dialogue has been completed, attach to the 
records of the procurement process the registrations and recordings of the dialogue phase, start the 
comp etitive phase by publishing the tender documentation including the specification of the solution 
that meets its needs and the objective criteria to be used for the selection of the most advantageous 
proposal, and define a term of no less than sixty (60) bu siness days for all suppliers pre -selected 
pursuant to item II of this paragraph to submit their proposals, which shall include the elements 
required for carrying out the project;  WT/TPR/M/432/Add.1  
 
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  IX – the Administration may request clarification or adjustments to the prop osals submitted, 
provided that they do not imply discrimination or influence the competition between the proposals;  
X – the Administration shall define the winning proposal according to the criteria published at the 
beginning of the competitive phase, ensu ring the most advantageous contract as the result.  
WT/TPR/S/432 Pg. -97, 3.162 . As a general principle, the 2021 Procurement Law prohibits 
discriminatory treatment between national and foreign suppliers. Article 9 provides that procuring 
entities may not ac cord differentiated commercial, legal, labour, or social security treatment to 
Brazilian and foreign companies, including regarding the currency, and the method and location of 
payments, even when financing from international agencies is involved. Similarl y, procuring entities 
may not establish preferences based on the place of birth, the principal place of business, or the 
domicile of suppliers.  
Question 23:  
Article 9 uses the term "may" instead of the terms "shall" or 'must". The use of the term "May" 
legally provides scope for discriminated treatment to international bidders. This provision can be 
used to give favourable treatment to domestic bidders. Whether the lawmakers intend to keep the 
scope for discrimination or to provide favourable treatment towa rds the domestic bidders?  
Reply:  
The 2021 Public Procurement Law further emphasised the principles of non -discrimination between 
national and foreign suppliers, which were already present in the legal framework. According to 
article 9 of Law 14,133/21, the  public official appointed to act in the area of procurement processes 
and contracts, except for the cases provided by law, cannot establish a differentiated commercial, 
legal, labor, or social -security treatment between Brazilian and foreign companies, in cluding with 
respect to currency, method, and place of payments, even when credit facilities provided by 
international agencies are involved.  
WT/TPR/S/432 Pgs. -97-98, 3.167 & 3.168 . Article 26 of the 2021 Procurement Law provides 
that a margin of preferenc e of up to 10% may be applied to domestically manufactured goods and 
services. The preference may be extended to goods and services of MERCOSUR countries, under 
certain conditions. The margin of preference may be up to 20% for domestic goods resulting from  
technological innovation and development carried out in Brazil. The authorities indicate that this 
provision is not yet enforced due to the lack of implementing regulations.  
3.168 . Complementary Federal Law No. 123/2006 institutes the National Statute of Micro and Small 
Enterprises (MSEs) and provides preferential measures for MSEs  178, including set -asides, quotas, 
and a preferential right to bid one more time if their original bid exceeded the best offer by up 
to 10% 179, for procurement taking place at the Federal, state and Federal district, and municipal 
levels. The preferences apply to all levels of the Brazilian public administration, unless more 
favourable terms are stipulated in any sub -federal legislation or procuring entity -specific regulations. 
Foreign -owned or controlled MSEs locally established as Brazilian companies are eligible for the 
preferential treatment provided by Law No. 123/2006. The proportion of procurement covered by 
this measure is estimated at around 26% at the federal level.  
Question 24:  
Is the preferential treatment under Article 26 of the 2021 Procurement Law consistent with 
Article  III (8) of GATT  1994? 
Reply:  
The possibility for the Executive branch to set out price preferences is still available pursuant 
Article  26 of Law 14 ,113/21. The permission of such policy in the new Law was a decision of the 
Brazilian Congress. However, for the margin of preference referred to in art. 26, I, to be applicable, 
the provision needs to be further regulated by means of a justified decision of the Executive branch. 
There is no existing decree implementing those margins. In addition, there are no plans in the 
medium term to regulate this provision by the Federal Government. In this sense, there are no 
margins of preference in force for nationa lly manufactured goods and services that meet Brazilian 
technical standards and, thus, no need for the extension of a preference to certain countries. 
Procurement rules in Brazil are applied for products purchased for governmental purposes and not 
with a v iew to commercial resale. Therefore, there is full consistency with article III(8)(a) of GATT.  WT/TPR/M/432/Add.1  
 
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WT/TPR/S/432 P -100, Table 3.20 . 
Question 25:  
From the year 2017 to 2021, the number of pending applications was continuously reduced to half 
across the years from 2017 to 2021. In spite of constant new applications, the patent grant was 
increased five -fold from 5,448 in 2017 to 26,887 in 2021. What are the factors behind this growth?  
Reply:  
The increase of patent grants is mostly due to the fact that, in 2019, the INPI started the Plan to 
Combat the Patent Backlog with the objective of reducing the number of requests pending decision 
by 80% from almost 150,000 requests in this situation.  
For this, the INPI started to use the results of the analysis of pate nt applications in other countries 
and regions, such as the examination carried out by the USPTO (United States Patent and Trademark 
Office) and EPO (European Patent Office). In this way, Brazilian examiners responsible for evaluating 
the inventions propos ed in patent applications pending at the INPI could benefit from qualified 
technical work, while saving valuable time.  
In addition, even starting from a technical examination already carried out abroad, the INPI 
examiner has the right to carry out his own analysis in light of the Brazilian legislation in force and 
even disagree on the merits of an invention that has been patented in other countries. Consequently, 
the process of evaluating Brazilian patent applications became more agile, while respecting the  
decision -making independence of INPI examiners.  
Another action concerns invention patents that have already been evaluated in another country, the 
novelty is that the search carried out previously will be attached to the examination of the patent 
applicat ion carried out in Brazil. After this search is coupled with the exam, a requirement will be 
issued for the applicant to approve the document or make changes if necessary. Only then will the 
examining board evaluate the process according to the Brazilian I ndustrial Property Law. If there is 
no response from the applicant, the application will be archived. The focus on these patents was due 
to the fact that they represent about 80% of the processes that are in the evaluation queue.  
The idea of the requiremen t will also be used for applications that have not been evaluated in another 
country, so the INPI examiner will only evaluate the patent after a response from the applicant.  
There are also priority exams that already have a reduced concession time. This pr iority exam 
benefits some specific groups, such as: seniors, micro and small businesses, science and technology 
institutions, creators of green technologies and Patent Prosecution Highway (PPH) participants.  
WT/TPR/S/432, Pg. -100, 3.179 . Following an amen dment of Brazil's Industrial Property Law 
(IPL) in August 2021, the term of patent protection (20 years for inventions and 15 years for utility 
models) commences from the patent application's filing date.188 Previously, the Law also provided 
for a minimum protection period (10 years for inventions and 7 years for utility models) counted 
from the patent's granting date. The latter provision was revoked after a Supreme Court ruling 
declared it unconstitutional. The amendment of the IPL also eliminated a provi sion requiring 
ANVISA's prior consent for the technical examination of patent applications related to pharmaceutical 
products and processes.  
Question 26:  
Does Brazil's patent law provide for patent term extension to compensate for delays by the 
regulatory authority and/or patent term adjustment to compensate for delays by the patent office?  
Reply:  
No. The Brazilian Supreme Court declared the article 40 of the Industrial Property Law 
unconstitutional. This article provided a minimum protection period (10 years for inventions and 7 
years for utility models) counted from the patent's granting date, as mentioned in the report.  
WT/TPR/S/432, Pg. -100, 3.180 . In September 2021, the IPL was further amended to clarify the 
compulsory licensing provisions therein. The amendment expanded the definition of emergencies 
that may justify recourse to compulsory licences, extended the compulsory licensing mechanism to 
also cover patent applications, and determined the licensing fees to be paid until the patent's v alue 
is effectively established.  WT/TPR/M/432/Add.1  
 
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  Question 27:  
What are the emergencies defined in Brazil's Industrial Property Law (IPL) that justify the recourse 
to compulsory licences? During the pandemic, did Brazil issue any compulsory licences for COVID -19 
health pro ducts?  
Reply:  
Law No. 14,200, of 2 September  2021, modified Law No. 9,279, of 14 May  1996 (the Industrial 
Property Law), to establish the following: in cases of national or international emergency or of public 
interest declared by law or by act of the Fede ral Executive Power, or recognition of a state of public 
calamity of national scope by the National Congress, an obligation, ex officio, temporary and non -
exclusive, a licen ce may be granted for the exploitation of the patent or the patent application, 
without prejudice to the rights of the respective owner, provided that its owner or its licensee do not 
satisfy this need.  
The entire law is available at https://in .gov.br/en/web/dou/ -/lei-n-14.200 -de-2-de-setembro -de-
2021-342651440 . 
Brazil has not issued any compulsory licences for COVID -19 health products.  
WT/TPR/S/432, Pg. -101, 3.186 . The regulations governing the collective management of 
copyrights were consolida ted and updated during the review period. The authorities indicate that 
work on a legal framework for the development and use of artificial intelligence is ongoing.  
Question 28:  
What is Brazil's rationale for extending copyright protection to AI -generated content, given that 
many jurisdictions, like the United States, European  Union and Australia, extend copyright protection 
only to works created by a human being?  
Reply:  
Brazil does not extend copyright protection to AI -generated content, since only persons are 
considered to be authors. Works produced using AI are protected provided that the author has been 
identified.  
WT/TPR/S/432, Pg. -101, 3.188 . Brazil's civil rights framework for the Internet contains 
provisions addressing certain aspects of onlin e copyright infringement.198 Although a 
comprehensive mechanism for the expeditious removal of copyright -infringing content has not yet 
been formalized in Brazilian legislation, Brazil's Superior Court of Justice (Superior Tribunal de 
Justiça) has ruled th at failure to act within 24 hours of receipt of a private (extrajudicial) notification 
containing the precise address (URL) of the allegedly infringing content may result in civil liability of 
the Internet service provider.  
Question 29:  
Is Brazil likely to  create specific legislation for IP enforcement in the digital environment in the 
future? What rules does Brazil have regarding Rights Management Information and Technological 
Protection Measures?  
Reply:  
There are no official governmental plans to create s pecific legislation for IP enforcement in the digital 
environment, considering that a government transition process is underway.  
Regarding Rights Management Information and Technological Protection Measures, although Brazil 
is not yet a signatory to the WI PO Internet Treaties, the Copyright Law (Lei nº 9,610, of 
19 February  1998 – "Lei de Direitos Autorais ") incorporated this protection, establishing in art. 107:  
Art. 107. Regardless of the loss of the equipment used, it will be responsible for the damages,  never 
less than the value that would result from the application of the provisions of art. 103 and its sole 
paragraph, who:  
I - alter, delete, modify or disable, in any way, technical devices introduced in copies of protected 
works and productions to prev ent or restrict their copying;  
II - alter, suppress or disable, in any way, the encrypted signals intended to restrict communication 
to the public of protected works, productions or broadcasts or to avoid copying them;  WT/TPR/M/432/Add.1  
 
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III - delete or alter, without author ization, any information on rights management;  
IV - distribute, import for distribution, broadcast, communicate or make available to the public, 
without authorization, works, performances or actions, copies of performances fixed in phonograms 
and broadcast s, knowing that the information on rights management, encrypted signals and devices 
technical have been removed or modified without authorization.  
WT/TPR/S/432, Pg. -102, 3.189 . The civil and criminal penalty provisions in Brazil's legislation 
for violation s of industrial property, copyright, and related rights remained unchanged during the 
review period. Pursuant to Brazil's customs legislation, the RFB has authority to seize IP -infringing 
goods ex officio or at the request of the right holder.  
Question 30:  
Does Brazil provide ex officio enforcement with respect to criminal enforcement, civil enforcement 
and enforcement in the digital environment?  
The RFB undertakes routine actions in which piracy can be identified and, in case of flagrant violation, 
RFB has  the authority to seize the goods. A judicial order is required in case of an action at the 
request of the right holder.  
WT/TPR/S/432, Pg. -102, 3.191 . In 2019, Brazil's Federal Police carried out "Operation 
Copyright", taking coordinated action in five Bra zilian states to shut down websites with pirated 
content and seize equipment. As a result, 100 applications and 136 websites were closed down. 
During 2019 -21, the Integrated Operations Secretariat of the Ministry of Justice and Public Security 
led enforcem ent operations in three phases of "Operation 404 against piracy". The coordinated 
actions resulted in the shutdown of 334 websites and 94 streaming applications offering copyright -
infringing content, the execution of over 60 search and seizure warrants acr oss 12 Brazilian states, 
and several arrests.  
Question 31:  
What regime does Brazil have concerning intermediary liability in the digital environment?  
Reply:  
As a general rule, Law 12,965 of 23 April 2014 (known as "Marco Civil da Internet" or "Internet civil 
rights framework ") establishes the following legal regime:  
(i) the provider of "Internet connection " (defined as "action that enables a terminal to send and 
receive data packets over the Internet, by IP address assignment or authentication ") will not be 
civilly liable for damages arising from content generated by third parties;  
(ii) the provider of "Internet applications " (defined as: "a set of features that can be accessed by 
a terminal connected to the Internet ") can only be liable for civil damages resulting from content 
generated by third parties if, after a specific court order, it does not take steps to make the content 
identified as infringing unavailable.  
That is, the internet prov ider's civil liability for damages resulting from content generated by third 
parties is subsidiary and will occur in the event of non -compliance with a court order that determines 
the unavailability of illicit content. There are two main exceptions to this  rule:  
(i) The Internet application provider that delivers content generated by third parties will be 
secondarily liable for infringement of privacy resulting from disclosure, without consent of its 
participants, of photos, videos or other materials conta ining nudity or acts of a sexual private 
character when, after receipt of notification by the participant or legal representative, fail to promote, 
diligently, and within the technical limits of its service, the unavailability of such content;  
(ii) regardi ng copyright infringing content, Law no. 12,965/2014 (Marco Civil da Internet) 
expressly excludes from its scope of incidence the violation of copyright practiced by third parties. 
Brazil adopts a "notice and takedown" regime similar to those that already exist in the United  States  
or the European  Union  (in the later, before the Directive on Copyright in the Digital Single Market – 
Directive 2019/790). This regime is not expressly provided for in copyright law but stems from the 
interpretation of the law ma de by the Superior Court of Justice in cases such as "Recurso Especial " 
("Special Appeal") No.  1,512,647 (Available at: https://tinyurl.com/22w4uxfb ). It should be noted 
that the "reasonable period" for the remo val of copyright infringing content is generally understood 
by the Court as 24 hours after receipt of the extrajudicial notification – a deadline that certainly 
would be compatible with the "expeditiously" removal requirement under the US Digital Millenniu m 
Copyright Act (DCMA).  WT/TPR/M/432/Add.1  
 
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  WT/TPR/S/432 Pg. -104 Table 4.1 Brazil's agri -business trade balance, 2014 -21 
Question 32:  
1. Total trade balance between the years 2014 -2015 increased from - USD 4,153 to USD  19,512. 
The total trade balance has reached USD 61,407 in  2021. What are the major factors that improved 
the total trade balance?  
Reply:  
The trade balance increased in 2021 compared to 2015 due commodity price inflation in 2021 
(COVID 19 effects in world international trade) and the strong performance of Brazili an agricultural 
crops during these years.  
For example, the FAO Food Price Index (a measure of a basket of food commodities) averaged 125,7  
points in 2021, 35% higher than the food prices registered in 2015 (which reached 93,0  points). In 
2020, the FAO inde x was 98,1 points. Only considering the exports of Brazilian agribusiness, 2021 
had shown average prices 21 .2% higher than observed in 2020.  
Regarding the performance of the Brazilian agricultural sector, the grain production was 
209,5  millions of tons in the 2014/2015 harvest (46% in soybeans). In 2020/2021, the harvest 
reached 252,5 millions tons (54% in soybeans). Soybeans are the main driver of Brazilian 
agribusiness exports representing 32% of the total value registered in 2021 (US D 39 billion), 
follow ed by fresh beef (US D 8 billion), raw sugar (US D 8 billion), soybean meal (US D 7 billion) and 
fresh chicken meat (US D 7 billion).  
2. Agribusiness trade balance has increased from USD 80,046 in 2015 to USD 104,993 in 2021. 
What were the major factors responsible for this change?  
Reply:  
The major factors behind the improvement in total trade balance relate to Brazil 's competitiveness 
in agri -business, on the back of decades of productivity gains and for being a reliable partner to 
almost all the countri es in the world. Additionally, Brazil benefited from an increase in the price of 
several commodities in recent years, as mentioned above.  
WT/TPR/S/432 Pg. -106, 4.16.  The Agricultural and Livestock Plan 2021 -22 (Plano Safra) 
continues to be administered by MAPA. The Plan has been adjusted to meet the objectives and 
criteria of the broader PPA 2020 -23 under four main pillars: sustainability, family farming, 
investments, and agricultural insurance. Accordingly, the Agricultural and Livestock Plan 2021 -22 
aims at promoting agricultural development on a sustainable basis, as it encourages technological 
modernization and the application of best agricultural practices in the field following the Brazilian 
environmental legislation. Aligned with those goals, the Plan  promotes the financing for the 
production of bio -inputs, use of renewable energy, and the adoption of environmental 
conservationist practices in the use and management of natural resources. Furthermore, the Plan 
focuses on small producers fostering credit  lines for irrigation, purchase and implementation of 
technological innovations, and construction of warehouses. The budget for the Plan has increased 
by 6.3%, amounting to BRL 251.2 billion (BRL  177.8 billion for costs and marketing and 
BRL 73.4 billion  for investments, representing a 29% increase from the previous plan).18 Banco do 
Brasil is responsible for handling a significant part of the Plan, reaching BRL 135 billion, of which 
BRL 34 billion  targets small producers. The National Development Bank (BND ES) will be responsible 
for BRL 20 billion of the funding via accredited financial institutions, of which 25% has been allocated 
to small producers. This represents a 58% increase in the resources targeting family farming under 
the National Program for Str engthening Family Farming (PRONAF).  
Question 33:  
1. Can the authorities provide disaggregated figures on the appropriation or the intended use of the 
increased allotment under the stated plan?  
Reply:  
The disaggregated figures are as follows:  
- Moderfrota ( acquisition of tractors and harvesting machines): BRL 7.53 billion  
- Moderagro (agricultural modernization and natural preservation of natural resources): BRL  1.89 
billion  
- Proirriga (irrigation and under cover vegetable growing): BRL 1.35  WT/TPR/M/432/Add.1  
 
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- ABC (low carbon program): BRL 5.05 billion  
- PCA (warehouse construction and widening): BRL 4.12 billion  
- Inovagro (farm technological innovation): BRL 2.6 billion  
- Prodecoop (cooperative development): BRL 1.65 billion  
- Pronaf (family farm program): BRL 17.6 bil lion 
- Pronamp (medium size farmers): BRL 4.88 billion  
- Procap -Agro Giro (working capital for cooperatives): BRL 1.5 billion  
The disaggregated figures are as follows:  
- Moderfrota (acquisition of tractors and harvesting machines): BRL 7.53 billion  
- Moder agro (agricultural modernization and natural preservation of natural resources): 
BRL 1.89 billion  
- Proirriga (irrigation and under cover vegetable growing): BRL 1.35  
- ABC (low carbon program): BRL 5.05 billion  
- PCA (warehouse construction and widening) : BRL 4.12 billion  
- Inovagro (farm technological innovation): BRL 2.6 billion  
- Prodecoop (cooperative development): BRL 1.65 billion  
- Pronaf (family farm program): BRL 17.6 billion  
- Pronamp (medium size farmers): BRL 4.88 billion  
- Procap -Agro Giro (wo rking capital for cooperatives): BRL 1.5 billion  
2. Is there information on the nature of the subsidies that will be provided under this plan and which 
boxes of the WTO do they fit in: amber, blue or green?  
Reply:  
There are no new programs in this plan, and programs are already notified by Brazil in its DS:1 
notifications.  
WT/TPR/S/432, Pg. -107, footnote 30. "According to the authorities, not all the agricultural 
assistance programmes available were implemented during the review period, although the y 
remained foreseen in the Brazilian legislation".  
Question 34:  
Which of the agricultural assistance programmes were not implemented during the review period? 
Were they specific to products or regions?  
Reply:  
Some PGPM programs, such as the AGF, VEP and CO V, were not implemented. All implemented 
assistance programs were notified by Brazil to the WTO.  
WT/TPR/S/432, Pgs. -107, 108, 4.23 . During the review period, Brazil continued to provide a 
broad range of assistance programmes to its agricultural sector targ eting different categories of 
producers and for reaching different objectives, including, inter alia , in the form of administered 
interest rate or concessional credit lines, price support mechanisms, and insurance premium 
subsidies (Section 4.1.4). No new support programme other than the 2021 Feed Brazil (Programa 
Alimenta Brasil) was introduced during the review period.  WT/TPR/M/432/Add.1  
 
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  Question 35:  
From Document no. G/AG/N/BRA/68, India understands that Program 'Feed Brazil' has replaced the 
'Program of acquisition of agricultural products from family farming' since 3 December 2021. 'Feed 
Brazil' involves the acquisition of agricultural products from family farming to build stocks and 
promote food and nutrition security. India seeks clarity on the followi ng. 
a. How does 'feed Brazil' differ from 'Program of acquisition of agricultural products from family 
farming?  
Reply:  
The relevant difference is the update of the maximum annual payments to eligible small 
farmers, family farmers, and agricultural cooperatives.  
b. What is the annual budget allocated to the measure?  
Reply:  
For this year there is an estimated provision of USD 40 million. It is very difficult to estimate 
future provisions, but they are expected to be between USD 40 million and USD 60 mill ion. 
c. What are the agricultural products covered under the measure and their acquisition price?  
Reply:  
Considering that the purpose of the program is to increase access to food for people and 
groups in vulnerable situations, through the acquisition of produ ction from family farmers, 
extractivists, artisanal fishermen, indigenous peoples and other traditional populations, there 
is no predetermined role of products that can benefit. The program has allowed for the 
acquisition of several food items produced by family farming, some commercial crops and 
others with little or no market insertion and only regional importance (such as some socio -
biodiversity products), in order to enable the provision of diversified, healthy and balanced 
diets.  
d. One of the goals of fe ed Brazil is to generate income for family farmers. How does the measure 
help in achieving this goal?  
Reply:  
Programme "Feed Brazil" has as one of its goals to encourage family farming and promote the 
economic and social inclusion of family farmers, foster ing sustainable production, food 
processing and manufacturing and income generation; and to boost the consumption and add 
value to food produced by family farming.  
According to article 33, V, of Law 14.284, one of the modalities of food acquisition under t his 
program is the so -called "institutional purchase", that is, purchase from family farmers, 
through a public call, to meet demands for foodstuffs defined by the purchasing body and, in 
the hypotheses defined by the Steering Group of the Programme, for do nation to consumer 
beneficiaries.  
WT/TPR/S/432 Pg. -108, 4.24 . Domestic support to agricultural producers remained at a low 
level compared to that of OECD countries.32 According to the OECD, Brazil's total support estimate 
(TSE) to agriculture averaged 0.3% of GDP in 2018 -20 (0.35% in 2012 -15), well below the 
OECD  average of 0.63% (Table 4.2).33 In 2020, support to farmers as measured by the producer 
support equivalent (PSE) corresponded to 1.3% of gross farm receipts in the period, also below t he 
OECD average of 18.1%.34 OECD notes that, in the last five years, PSE fell both in nominal terms 
and as a percentage of gross farm receipts. In this respect, there was very little market price support  
(MPS) and domestic prices almost fully align with in ternational markets. According to the  OECD, 
most support to producers is through input payments, in particular concessional credit and, to lesser 
extent, crop insurance. Wheat, rice, and cotton are the products with the highest rates of specific 
commodity transfer (SCT). The share of potentially most -distorting support fell to 21% of cumulated 
gross producer transfers in 2018 -20 compared to 66% in 2000 -02. OECD also noted that more than 
90% of support to general services (GSSE) covers research, development,  and innovation, and 
represented 39% of the TSE in 2018 -2035 (Table 4.3, Section 4.1.4).  WT/TPR/M/432/Add.1  
 
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Question 36:  
The Total Support Estimate (TSE) to Agriculture producers is just 0.3% of the GDP which is less than 
the OECD average of 0.63% of GDP (2018 -2020). In 2020 , support to farmers as measured by the 
producer support equivalent (PSE) corresponded to 1.3% of gross farm receipts in the period, also 
below the OECD average of 18.1%.  
Why are TSE and PSE for the agriculture sector low even though the Agriculture sector  is a major 
contributor to the GDP of Brazil?  
Reply:  
Productivity gains, based on the application of science and technology, mainly through EMBRAPA, 
has been the main drive of the growth of Brazilian agricultural production in recent decades . Since 
the 200 0s, the productivity rate of Brazilian agriculture has been the fastest growing in the world 
among significant agricultural producers. Thus, the productivity of Brazilian production, combined 
with the quality and health of our products, make the sector ver y competitive without relying on 
high levels of subsidies.  
 
WT/TPR/S/432 Pg. -108, 4.24.  Domestic support to agricultural producers remained at a low 
level compared to that of OECD countries.32 According to the OECD, Brazil's total support estimate 
(TSE) to  agriculture averaged 0.3% of GDP in 2018 -20 (0.35% in 2012 -15), well below the 
OECD  average of 0.63% (Table 4.2).33 In 2020, support to farmers as measured by the producer 
support equivalent (PSE) corresponded to 1.3% of gross farm receipts in the period,  also below the 
OECD average of 18.1%.34 OECD notes that, in the last five years, PSE fell both in nominal terms 
and as a percentage of gross farm receipts. In this respect, there was very little market price 
support  (MPS) and domestic prices almost fully align with international markets. According to the 
OECD, most support to producers is through input payments, in particular concessional credit and, 
to lesser extent, crop insurance. Wheat, rice, and cotton are the products with the highest rates of 
specif ic commodity transfer (SCT). The share of potentially most -distorting support fell to 21% of 
cumulated gross producer transfers in 2018 -20 compared to 66% in 2000 -02. OECD also noted that 
more than 90% of support to general services (GSSE) covers research,  development, and 
innovation, and represented 39% of the TSE in 2018 -2035 (Table 4.3, Section 4.1.4).  
Question 37:  
What reasons were recognized by the authorities for the almost 50% increase in the Total Support 
Estimate provided to the agriculture sector for the year 2021?  
Reply:  
First, despite this increase, Brazil's TSE is still extremely low if compared to other countries. Second, 
the increase was mainly due to changes in the basic interest rate.  
WT/TPR/S/432, Pg. -112, 4.4 . Programme to Strengthen House hold Agriculture (PRONAF)  
Products/Projects  Beneficiaries  Credit limit  Annual 
interest 
rate Duration  Disbursement  
BLR Million  
Provides credit to 
small -scale producers 
with annual income of 
BRL 500.000 per 
family; to families 
within the land reform 
framework; to small -
scale fishermen; to 
aquaculture farmers; to 
forestry; to indigenous; 
to small - scale 
extractivists; to 
quilombola 
communities.  Small -scale 
producers  Up to 
BRL 400,000 to 
pig breeding, 
poultry farming 
and fruit 
farming  Up to 3% 
and 
4.5%  Up to 10 years 
(3-year grace 
period) - 
investment; 
12 months - 
working capital  2017: 22,740 
2018: 24,653 
2019: 25,957 
2020: 31,171 
2021a: 33,083  
 WT/TPR/M/432/Add.1  
 
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  Question 38:   
India observes that the Programme to Strengthen Household Agriculture (PRONAF) has been 
regularly notified as input subsidies for low -income or resource -poor farmers under Article  6.2 of the 
Agreement on Agriculture. Table 4.4 mentions that a credit limit of "up to BRL 400,000 to pig 
breeding, poultry farming and fruit farming" is available u nder the program.  
Brazil is requested to provide information regarding the basis of identifying the low -income or 
resource -poor farmers in Brazil for Article 6.2 of the AoA.  
Reply:  
For the purpose of the "Programa Nacional de Fortalecimento da Agricultura Familiar" (Pronaf), 
Family farmers and rural family entrepreneurs (small farmers) are those who practice activities in 
the rural environment, simultaneously meeting the following requirements:  
I - do not hold, in any capacity, an area greater than 4 (four)  fiscal modules;  
II - predominantly use the family's own labor in the economic activities of its establishment or 
enterprise;  
III - have a minimum percentage of family income originating from economic activities in its 
establishment or enterprise, as defin ed by the Executive Branch;  
IV - run its establishment or enterprise with its family.  
In addition, the farmer must complete the National Register of Family Farming (CAF) for the 
purposes of identification, inspection and qualification with the federal gove rnment for the purpose 
of accessing specific public policies.  
WT/TPR/S/432, Pg. -112, 4.4 . Federal Fund for the Defence of the Coffee Economy (FUNCAFÉ)  
Products/Projects  Beneficiaries  Credit limit  Annual 
interest 
rate Duration  Disbursement  
BLR Million  
Provides credit to 
marketing, 
researching, stocking, 
plantation and other 
expenses to coffee 
farmers and traders.  Producers, 
cooperatives, 
roster and 
instant coffee 
producers, 
coffee 
benefactor and 
exporters.  For farmers: 
BRL 3 million (working 
capital) or BRL  4.5 million 
(commercialization); for 
industries: BRL  50 million 
(commercialization)  7% one year  2017: 2,482 
2018: 3,423 
2019: 3,280 
2020: 2,736 
2021a: 3,437  
Question 39 : 
India seeks the following clarifications on the domestic support measures related to credit to 
marketing, researching, stocking, plantation and other expenses to coffee farmers and traders.  
a. How does Brazil intend to notify this support in their DS:1 notification?  
Reply:  
Brazil will  notify support to coffee farmers under FUNCAFE as product -specific support when there is 
subsidy being granted.  
 
b. India notes that Brazil has notified support to coffee farmers under FUNCAFE as product -
specific support in their DS:1 notification of 2015 -16, and 2016 -17, however the same 
has not been notified in the subsequent notifications. Could Brazil explain the reasons 
for not notifying the support in subsequent DS:1 notifications?  
Reply:  
As explained in Brazil's notifications through footnotes and also in answers to questions posed by 
India at the CoA, most of Brazil 's domestic support is assessed as the difference between the applied 
interest rate of each of the specific programs and the reference market rate in the case of credit 
programs.  WT/TPR/M/432/Add.1  
 
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In this  specific case, the domestic support is an implicit subsidy based on the difference between 
the Brazilian Coffee Fund (FUNCAFE) interest rate and SELIC interest rate. When there is no 
difference between these rates, there is no subsidy to be notified as do mestic support.  
This measure was not included in Brazil's most recent domestic support notifications because no 
domestic support was granted.  
 
WT/TPR/S/432 Pg. -115, 4.38 . According to the OECD, agricultural credit at preferential interest 
rates represents an important share of agricultural support. In this regard, Brazil could consider a 
reform of the concessional credit system for a gradual downsizing of concessional loans for working 
capital to commercial farms. Furthermore, due to the reduction in the ov erall market interest rate 
in Brazil, access to credit by rural borrowers could be further facilitated through the simplification of 
regulations and procedures for accessing commercial credit. Refocusing supports provided for 
on-farm investments that expli citly incorporate technological innovations and advanced farm 
management and environmental practices should be considered. Those could be provided in addition 
to the existing insurance and credit support conditional on environmental criteria and zoning rul es 
that encourage environmental aspects. The National Policy on Climate Change has emission 
reduction targets for agriculture of around 5% -6%. Some preferential credit is available to 
modernize sustainable production systems and mitigate emissions as embed ded into Plan ABC.  
Question 40:  
Have any initiatives been undertaken by the Brazilian government to reform the concessional credit 
system?  
Reply:  
The two main innovations were: (i) enhanced competition among financial institutions by allowing 
the participa tion of all institutions that operate rural credit, approved by Law 13,986 of 7  April 2020, 
to access subsidized resources for the subsequent provision of rural credit; and (ii) the creation of a 
new resource allotment methodology based on their spread and  capillarity.  
WT/TPR/S/432, Pg. -116, 4.6 . The direct government purchases (AGF) allows producers and 
cooperatives to sell their products to the state -owned National Food Supply Agency (CONAB) at a 
guaranteed minimum price, so as to support farmers' income stability and form public stocks. The 
instrument is applied on specific products and regions, for up to 100% of a farmer's production. 
Products purchased under the AGF must be stored in warehouses accredited by the CONAB.  
Question 41 : 
1. It is requested to  provide the following information about direct government purchases (AGF).  
a. What are the products covered by direct government purchases?  
b. Who are the eligible farmers to receive the guaranteed minimum price under this 
measure? How are they identified/ selected?  
c. In 2021 -22, what products were procured under this measure? What were the applicable 
minimum price and eligible production for the products covered under this measure?  
d. How are the accumulated stocks under this measure disposed of?  
Reply: 
There were no AGF operations during the review period.  
2. According to table 4.6 "The basic element of this policy remains the regionally -set minimum 
guaranteed prices that cover a broad range of crops from rice, wheat, maize, cotton, and soybeans, 
to regional crops like cassava, beans, açaí, guaraná, and sisal, as well as a few livestock products 
like cow and goat milk and honey"  
a. What is the crop -wise procurement by the government under the Policy of Guaranteed Minimum 
Prices (PGPM) during 2020, 202 1 and 2022?  
b. What is the role of CMN in determining the minimum guaranteed prices under PGPM?  
Reply:  
The National Monetary Council is the final instance of approval of minimum prices proposed by the 
Ministry of Agriculture, Livestock and Food Supply (MAP A). It approves minimum prices under a WT/TPR/M/432/Add.1  
 
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  financial and a budgetary perspective. Minimum prices are made official by MAPA ministerial 
orders  ("portarias "). 
WT/TPR/S/432, Pg. -142, 4.140 . In 2018, Brazil launched the ROTA 2030 programme, which 
provides for a ta x incentive of up to 12.5% reduction in corporate income tax rate (IRPJ) and Social 
Contribution on Net Income (CSLL) for companies of the automotive sector that invest in 
R&D activities.  
Question 42:  
What is ROTA 2030 programme, can Brazil share details of the incentives provided under it and is 
WTO compatible? Further, Brazil is requested to share the outcome in terms of economic and 
environmental goals achieved as a result of the scheme so far and the impact on the domestic  
economy.  
Reply:  
The ROTA 2030 program provides for a tax incentive that can vary between 10.2% (non -strategic 
expenses) and 12.5% (strategic expenses) of expenses actually incurred, and can only be used to 
deduct the Corporate Income Tax (IRPJ)) and Social Contribution on  Net Income (CSLL), taxes levied 
on profit. On average, qualifying companies far exceeded the minimum requirement for each 
category.  
WT/TPR/S/432, Pg. -147, 4.167 & 4.168 . During the review period, the main legal framework 
for banking remained unchanged, ex cept for the changes introduced by Complementary 
Law No. 179/2021 to Law No. 4,595/1964.239. The banking sector and other financial services are 
regulated at the federal level. The BCB's normative acts are undergoing simplification and 
streamlining procedu res. Those are all available online.  
4.168 . Market access conditions in financial activities remain similar to those outlined in the previous 
report. Foreign banks continue to be allowed to establish only subsidiaries; those directly responsible 
for the ad ministration of the financial institutions must be Brazilian residents. Direct branching of 
foreign banks is not allowed. The establishment of new subsidiaries of foreign financial institutions 
and the increase in participation of foreign individuals or le gal entities in the equity of national 
financial institutions can now be authorized direct by the BCB following the fulfilment of requirements 
by CMN. Applications by foreign investors must specify, inter alia , the amount of foreign participation 
in total capital, the investor's existing activities in the Brazilian financial system, and the benefits to 
the Brazilian economy. Representation within Brazil of financial institutions headquartered abroad 
continued to require prior authorization by the BCB; local  representatives must be individuals or 
legal entities resident in Brazil. Representative offices are prohibited from taking deposits or 
undertaking any other financial transactions. Cross -border supply of banking services is not 
permitted. Consumption of banking services abroad is not regulated.  
Question 43:  
1. Can Brazil provide more details regarding its policy objectives for BCB's normative acts and 
how would it aid in further developing a conducive environment for the banking and financial 
sector?  
Reply:  
The decision -making process is collegiate at the CMN, the BCB and the CVM — on regulatory matters 
within their respective purview. Prudential regulation is based on technical analyses and international 
regulatory standards. Before their implementation by t he regulatory and supervisory entities, the 
proposed rules are submitted frequently to public consultations, depending on the complexity or the 
expected impact of the regulatory innovation. The regulation issued by the CMN and the BCB is 
disclosed through several channels of communication. Aiming to introduce proportionality in banking 
regulation — to foster the efficiency of the National Financial System without compromising its 
effectiveness — financial institutions in Brazil are categorized in five segme nts, S1 through S5, 
according to their risk profile and the relevance of their international activity. In this proportionate 
approach, institutions more exposed to risks or with relevant international activity (S1) have to 
comply with a more comprehensive and complex regulation, while institutions with less risk exposure 
(S5) must observe simpler rules.  WT/TPR/M/432/Add.1  
 
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2. Are there any schemes or policies for furthering efforts as regards to permitting the cross -
border supply of banking services?  
Reply:  
The regulatory policy has been under permanent assessment and furthering efforts of lifting 
restrictions take under consideration Brazilian specific circumstances and level of development of 
the financial system, as well as risk management and prudential requi rements, in line with other 
countries ' practices.  As an example of recent advances we list the permission – since 2015 – for 
foreign central clearing counterparties (CCPs) to provide cross -border clearing and settlement 
services to residents in Brazil (onl y in relation to transactions carried out in OTC markets; the lifting 
of restrictions in 2021 for cross -border derivative transactions for non -hedging purposes and the 
new law on foreign exchange market and international capital transactions (Law 14,286, o f 2021 – 
effective next 31  December, 2022).  
 
WT/TPR/S/432, Pg. -157, 4.221 . Number portability has been required since 2007. A private 
association, contracted through public bidding, continues to manage the central reference databank 
for number portability.  As a result of the bidding process, the management of portability operations 
was delegated by ANATEL to the Brazilian Telecommunication Resources Association (ABR Telecom). 
ANATEL also supervises wholesale infrastructure in the country and has representat ives of the 
largest telephone operators, as well as representatives of small and regional operators, on its board. 
Number migration is subject to conditions set by ANATEL and ABR Telecom, including a fee of 
BRL 4.304 In 2022, around 700,000 fixed -line and mobile -phone subscribers in Brazil carry their 
number to a new operator each month. Between 2008 and January 2021, 8,382,861 lines 
including  1,243,657 fixed lines and 7,139,204 mobile phones were carried to a different operator.  
Question 44:  
India would ap preciate a response from Brazil on the following:  
1. Are international private associations allowed to participate in the public bidding process?  
 
Reply:  
In order to participate on any public bidding process or to receive a service authorization, Brazilian 
laws require the establishment of a national company (a subsidiary) in accordance with our legal 
framework . 
 
2. If allowed, then are there any provisions for the national treatment of international private 
associations?  
 
Reply:  
As informed in the previous answer,  the establishment of a national company is required.  
 
3. What are the criteria used to delegate management of portability operations?  
Reply:  
The delegation of the management of the portability operations to ABR Telecom dates back to 2007, 
when a Portability Implementation Group was established by ANATEL to take decisions regarding 
the process. The managing entity must comply with certain requir ements, including its establishment 
in Brazil according to domestic laws and regulations (Regulation 460, ANATEL). In 2007, several 
companies took part of the bidding process to provide technological solutions for ABR Telecom, 
which, since then, have been provided by a Brazilian company. The regulation was later updated by 
Resolution No. 749, of 15 March  2022. More information can be obtained (in Portuguese) at: 
https://informacoes.anat el.gov.br/paineis/portabilidade . 
 WT/TPR/M/432/Add.1  
 
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  Questions based on Government Report (WT/TPR/G/432)  
WT/TPR/G/432 Pg. -17, 3.5 . All trading partners of Brazil receive at least most -favoured -nation 
(MFN) tariff treatment. The MERCOSUR Common External Tariff (CET) and the Common MERCOSUR 
Nomenclature (NCM) are currently based on the 2022 version of the Harmonized System (HS) 
accordingly to the Executive Committee of Foreign Trade Chamber (Gecex) Resolution No. 272/2021. 
The regulation also consolidates tariffs levels ap plied in Brazil, enhancing transparency to domestic 
trade operators and foreign partners.  
Question 45:  
Brazil being a member of MERCOSUR has brought out various aspects of MERCOSUR  in para 3.5 of 
TPR submitted by Brazil.  India would appreciate what steps are taken by Brazil being one of the 
leading members of this forum  for the limited Expansion of the Trade Agreement 
between  India MERCOSUR proposed by India in April 2022.  
Reply:  
MERCOSUR has been continuously engaged in updating the Preferential Tra de Agreement with India. 
A high -level meeting took place in September 2021 and in 2022 several talks were held with Indian 
counterparts and among MERCOSUR partners to propose a framework of an expanded agreement. 
The topic is also being discussed in bilate ral fora, such as the Brazil -India Joint Commission, which 
took place last August. The recurrent discussions demonstrate the importance Brazil and MERCOSUR 
attach to the topic.  
 
WT/TPR/G/432 Pg. -19, 3.22 . Brazil has recently adopted Law No. 14,353/2022, wh ich allows for 
the suspension of concessions and other obligations for Members that have appealed panel reports 
in which Brazil is a complainant to an inoperative Appellate  Body (i.e. appealed "into the void"), 
thereby obstructing the conclusion of a dispu te. The objective of that law is to remedy the present 
failings of the WTO's dispute settlement system by creating incentives for achieving a solution 
through negotiations between the disputing parties and/or the recourse to alternative means of 
settlement .  
Question 46:  
Brazil had initiated the WTO dispute (No. DS579) against India on Sugarcane and sugar subsidies 
(Para 3.22 of 3.4.2 Dispute Settlement of TPR by Brazil). With India's ethanol program, the issue of 
subsidies for sugar exports may get mitigat ed. Also, 90% of Indian Sugarcane farmers are marginal, 
possessing meagre land holdings.  
However, in Brazil Sugarcane producers from the north and north -eastern states received a direct 
subsidy, the Regional Producer Subsidy. (also refer to Para 4.90 of pa ge 130 of TPR by Secretariat) . 
India looks forward to amicable bilateral discussions to settle this issue that would benefit both 
countries. Does Brazil agree with India's view that the dispute must be settled amicably through 
dialogue?  
 
Reply:  
First, Brazil welcomes any initiative, such as the Indian ethanol program, that may help mitigate the 
negative effects of the sugar and sugarcane programs challenged in the DS579 dispute.  
Brazil reiterates, as it has been doing repeatedly in contacts with  the Indian government, its 
willingness to reach a non -litigious solution to the DS579 dispute, through dialogue and negotiation.  
Brazil considers that all its measures concerning sugarcane producers are fully consistent with its 
obligations under the WTO  Agreement s. 
 
WT/TPR/G/432 Pg. -20, 3.31 . Since 2017, Brazil's strategy has also focused on going beyond its 
traditional Latin American partners, intensifying its agenda of trade negotiations, and negotiating 
comprehensive trade agreements. Some trade agreem ents entered into force during the review 
period (Brazil –Argentina, Brazil -Chile, Brazil –Mexico, Brazil –Paraguay, MERCOSUR -Colombia, 
MERCOSUR –Egypt) and some FTAs negotiations were concluded (MERCOSUR –European  Union, 
MERCOSUR –European Free Trade Area [EFTA ] and MERCOSUR –Singapore). Signing and ratification 
of these agreements are still pending and the negotiation of other agreements (with e.g. the 
Republic  of the Republic of Korea , Canada and Lebanon) is under way.6 Together with the other 
MERCOSUR Members,  Brazil has concluded exploratory dialogues with Indonesia and Viet  Nam and 
launched negotiations with Indonesia in December 2021. These initiatives reflect the growing WT/TPR/M/432/Add.1  
 
- 238 - 
 
openness and support of both the Brazilian government and the private sector regarding free trade 
negotiations.  
Question 47:  
Since 2017, Brazil's strategy has also focused on going beyond its traditional Latin American 
partners, intensifying its agenda of trade negotiations, and negotiating comprehensive trade 
agreements. Brazil has conclud ed exploratory dialogues with Indonesia and Viet  Nam and launched 
negotiations with Indonesia in December 2021 (para 3.31, WT/TPR/G/432 page 20), is Brazil 
planning to have direct negotiations with India, keeping in view  tremendous potential between the 
nations?  
 
Reply:  
Brazil and its MERCOSUR partners are currently in discussions to update the Trade Agreement with 
India. Brazil believes the expansion could comprehend the coverage in terms of goods and services 
as well as the negotiation of new chapters. T o Brazil, the expansion should, first and foremost, 
envisage a balanced and mutually beneficial outcome. Last semester, MERCOSUR held several talks 
with Indian counterparts to debate proposals for the expansion and intends to present soon a 
framework to ad vance discussions.  
 
WT/TPR/G/432 Pg. -26, 4.12 . Bilaterally, Brazil and Argentina concluded, in 2022, negotiations 
on a Mutual Recognition Agreement on Vehicle Approval regarding safety issues. Brazil also has 
bilateral cooperation initiatives on technical regulations with Australia, the Plurinational State of 
Bolivia, Cabo Verde, China, Chile, Colombia, Costa Rica, Cuba, the Dominican  Republic , Ecuador, 
Germany, Guatemala, France, India, Italy, Japan, Kazakhstan, Lebanon, Mexico, Mozambique, 
New Zealand, Panama, Paraguay, Peru, Portugal, the Republic of Korea, Singapore, South  Africa, 
Spain, Russian  Federation, Trinidad and Tobago, Türkiye, Ukraine, the United Arab Emirates, the 
United  Kingdom, the United  States, Uruguay and, Bolivarian Republic of  Venezuela.  
Question 48:  
Para 4.12(WT/TPR/G/432 page 26), Brazil has concluded in 2022, negotiations on a Mutual 
Recognition Agreement on Vehicle Approval with Argentina. As India is the 4th largest Car producing 
country  (OICA 2021) , MRA with India in this sector will be mutually beneficial for both countries. 
Would Brazil like to have an MRA with India on these specified products?  
 
Reply:  
The Mutual Recognition Agreement on Vehicle Approvals between Brazil and Argentina was signed 
on 22 September  2022,  and has not entered into force yet. It encompasses safety requirements and 
is, so far, limited to Categories M1 and N1 (light vehicles and light commercial vehicles). The texts 
of the Agreement can be found in the following addresses: 
http://www2.aladi.org/biblioteca/publicaciones/aladi/acuerdos/ace/pt/ace14/ACE_014_045_pt.pdf  
(Portuguese version); and http://www2.aladi.org/biblioteca/publicaciones /aladi/acuerdos/ace  
/es/ace14/ACE_014_045.pdf  (Spanish version).  
Considering India´s consultation on whether Brazil would like to have an MRA on these specified 
products, Brazil would need to make internal consultations on the possibility of engaging 
prosp ectively in negotiations with India regarding a Mutual Recognition Agreement on Vehicle 
Approvals.  
WT/TPR/S/432 Pg. -29, 4.29. Since the creation of the WTO, Brazil has signed more than 30 
bilateral agreements on sanitary and phytosanitary matters, based on  SPS Agreement  principles, 
besides several regional agreements. The main purpose of these agreements is to identify common 
rules, simplify import controls, provide greater predictability to the parties by establishing 
timeframes, harmonize certification requirements, an d facilitate bilateral trade and the entry of 
selected products. The importance of such agreements for Brazilian exporters and their trade 
partners can be measured by the sustainable increase in production and in volume of trade exports 
with more than one hundred countries and the integration of medium and small -sized agricultural 
producers into the international market in sectors as honeybee, organic products, fresh fruits and 
flowers.  WT/TPR/M/432/Add.1  
 
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  Question 49:  
Can the Brazilian authorities provide information on the S PS measures imposed and if there has 
been any change in the policy after the year 2020, for the following commodities?  
(a) Spices  
(b) Processed vegetables  
(c) Cocoa products  
(d) Guergam meal  
(e) Ayush and Herbal Products  
Reply:  
In 2020, MAPA Normative Instruction nº 25, of 7 April  2020 was published, which updates the 
standard regarding Pest Risk Analysis.  
 
In 2021, Ordinance MAPA nº 65, of 30 March  2021 was published, which incorporated the MERCOSUR 
Standard Harmonized Phytosani tary Requirements by Risk Category for the Entry of Regulated 
Articles, approved by Resolution MERCOSUR/GMC/RES. nº 10/2020.  
 
All products listed in India 's question apparently undergo some form of processing. As stated in 
Ordinance MAPA 65/2021, depending  on the degree of processing and the intended use of the 
product, it can be considered in one of the following five phytosanitary risk categories:  
 
CATEGORY 1: Products of plant origin that have been processed to the point where they no longer 
have the abi lity to be infected/infested by quarantine pests. Therefore, products in this category do 
not require phytosanitary measures and no phytosanitary certification is required with respect to 
pests that may be present on the products prior to processing.  
 
CATEGORY 2: Products of plant origin have been processed, but still have the capacity to be 
infected/infested by a quarantine pest. The intended use can be, for example, consumption or further 
processing. Products in this category require phytosanitary certifi cation. In cases where the 
assessment of the effect of the method and the degree of processing has determined that the 
processed product does not present any risk of pest dispersal, the product should be reclassified into 
Category 1. Although Category 2 pr oducts have been processed, the processing method may not 
have completely eliminated all quarantine pests. If it is assessed that the method and degree of 
processing do not eliminate the risk of dispersal of quarantine pests, a Pest Risk Analysis (PRA) may  
be required.  
 
CATEGORY 3: Products of plant origin that have not been processed and the intended use is other 
than propagation, for example, consumption or processing. A PRA is required to determine the pest 
risk related to this pathway and whether phytos anitary certification is required.  
 
CATEGORY 4: Products of plant origin that have not been processed and the intended use is 
propagation. A PRA is required to determine the pest risks associated with this pathway and whether 
phytosanitary certification is  required.  
 
CATEGORY 5: Any other regulated article, not considered in the previous categories and which 
implies a demonstrable phytosanitary risk according to the corresponding PRA. For these products, 
phytosanitary certification may or may not be require d. 
 
Normative Instruction MAPA 25/2020 establishes in its article 3 that products "that do not have the 
capacity to be infected or infested by quarantine pests will be exempt from the PRA", referring to 
Phytosanitary Risk Category 1. Therefore, depending o n the method and the degree of processing 
as well as the intended use of the product, it may or may not be exempt from PRA and Phytosanitary 
Certification.  
 
If it is determined that a product has not been subjected to an adequate method or degree of 
proces sing to eliminate the risk of pests, it is necessary to carry out a PRA, in which a general 
analysis by species/product is made.  
 WT/TPR/M/432/Add.1  
 
- 240 - 
 
In the light of the above, and given the general nature of the question, Brazil can only affirm that it 
is possible that the p hytosanitaty requirements for some of these products have changed. Brazil 
invites India to present bilateral consultations regarding the specific products of interest.  
WT/TPR/G/432, Pg. -34, 4.57. NIPS has already shown substantial results since its adoptio n, 
such as: reduction of 80% of the patent backlog; elimination of the mandatory participation of 
ANVISA (the National Health Regulatory Agency) in the patent process; creation of tools for the 
dissemination and commercialization of IP; elaboration of mate rials to tackle IP crimes in digital 
environment followed by enforcing actions to that end; insertion of IP in SMEs and innovation 
programs; elaboration of a proposal for the simplification of regulation on transfer of technology 
transactions.  
Question 50:  
How does Brazil propose to simplify the regulation of the transfer of technology transactions? Does 
Brazil provide any concessions for processing IP applications from MSMEs and start -ups? 
Reply:  
Brazilian patent office provides for a quick track for MSMEs  and startups as well as STI institutions. 
Green tech and tech transfer are also contemplated.  
WT/TPR/G/432, Pg. -35, 4.62 . New Patent Prosecution Highway (PPH) pilot programs are being 
negotiated. Together with PPH pilot programs, actions on patent priority exams were in place. The 
first one consists of transforming the former "priority examination" (restricted to applications in the 
patent application queue awaiting the technical examination) in "priority procedure" (involving all 
activities of the patent process – from submission of documentation for filing to the end of the 
process at the INPI). The second action is a pilot project that allows patent applications with 
technology already available on the market and applications with technology resul ting from public 
funding to be prioritized.  
Question 51:  
With which countries has Brazil negotiated a Patent Protection Highway arrangement?  
Reply:  
Argentina, Austria, Chile, China, Colombia, South the Republic of Korea , Costa Rica, Denmark, El 
Salvador, Ecuador, Spain, USA, Europe (EPO), France, Japan, Nicaragua, Nicaragua, Paraguay, 
Panama, Peru, Portugal, United Kingdom, Dominican  Republic , Singapore, Sweden and Uruguay.  
WT/TPR/G/432, Pg. -35, 4.66  From the enactment of Law No. 12,853/2013, which amended  Law 
No. 9,610/1998 (Copyright Law), the federal government has the competence to enable, monitor, 
and inspect the collective management of copyright. From then on, collective management 
organizations (CMOs) need to be authorized by a federal public admini stration body and, annually, 
submit information and documents that allow the verification of the regularity of the exercise of their 
activities to guarantee a transparent and effective administration.  
Question 52:  
On what basis do collective management org anizations in Brazil distribute royalty collected from 
broadcasters between performers and producers of phonograms?  
Reply:  
In Brazil, Law No. 9,610/1998 (Copyright Law) provides that the collection and distribution of rights 
related to the public performan ce of musical and literary -musical works and phonograms will be 
carried out through collective management associations created for this purpose by their holders, 
who must unify the collection in a single central office for collection and distribution. Thus , both the 
collection and distribution of rights related to the public performance of musical and literary works 
and phonograms must be centralized in a single collecting entity, with its own legal personality, in 
this case, the Central Office of Collectio n and Distribution (ECAD). The entity is not for profit and is 
managed through the unitary vote of each association that integrates it, including with regard to 
deliberations on criteria for the distribution of collected resources. The ECAD is managed by s even 
music associations, which represent authors, artists and other members affiliated to them, namely 
Abramus, Amar, Assim, Sbacem, Sicam, Socinpro and UBC. According to the ECAD Distribution 
Regulations, currently, the related part is divided between the  different holders based on the 
following proportion: 41.7% for the performer, 41.7% for the phonographic producer (which can be WT/TPR/M/432/Add.1  
 
- 241 - 
 
  a record company), and 16.6% for the accompanying musician. Within each category, and in some 
cases is the rule, such as that o f the accompanying musician - there may be more than one 
titleholder. If the phonogram register does not include the accompanying musicians, the related part 
will be divided between 50% for the performer and 50% for the phonographic producer.  
WT/TPR/G/432,  Pg.-36, 4.75 . The Decree No. 10,139/2019 provides for the review and 
consolidation of normative acts, according to the best international practices, which affects directly 
the entire regulatory environment, favoring SMEs as well, although not mentioning t hem explicitly. 
These regulations act to bring better regulatory practices to the Brazilian legal system, which 
ultimately favors micro and small companies.  
Question 53:  
India requested details on Decree No. 10,139/2019 as to how it has impacted the MSMEs operations:  
1. Can Brazil highlight some of the regulatory and trade facilitation practices that have affected 
micro and small companies?  
2. Did Brazil take any measure which departed from the Decree driving and promoting domestic 
MSMEs rather than sourcing inte rnationally?  
3. What are some of these challenges that still affect Brazilian micro and small companies?  
Reply:  
The Decree No. 10.139/2019 applies to licen ces and authorizations required for import, export and 
transit. The regular review of such regulations will provide an up -to-date regulatory framework in 
line with the best international practices, cutting red tape for the private sector in general and, as a 
consequence, for micro and small companies.  
WT/TPR/G/432, Pg. -38, 4.79 . The Ministry of Economy's Special Secretariat for Foreign Trade 
and International Affairs (SECINT) has an institutional framework aimed at supporting MSMEs willing 
to export, namely the PNCE (National Plan for Exporting Culture). It promotes concerted actions 
through a ne twork of national and state level institutions to help MSMEs trade overseas.  
Question 54:  
Can the Member explain this mechanism (PNCE) put in place to support the domestic MSMEs to 
export?  
1. What are some of the lingering challenges adversely affecting the MSMEs to participate in 
international trade?  
 
Reply:  
Export culture itself is not easily assimilated by MSMEs. Many of them still believe that trading 
overseas is not within their reach and that only big companies can engage in this kind of activity. 
Besides, some other factors inhibit MSMEs from trying to export, such as: foreign language, the 
difficulty of collecting accurate data from other countries, the lack of strategic export planning and 
the size of the domestic market.  
2. India requests  Brazil for a detailed sectoral break -up of MSMEs which benefit ed from it.  
Reply:  
This kind of data is not collected yet.  
3. How effective has this mechanism been?  
Reply:  
It can be said that the initiative has been successful when it comes to engaging the sta keholders 
and facilitating the coordination and communication efforts among the institutions that deals with 
export activity. At present, PNCE has deep institutional roots, both on the national and state level. 
They permanently share information among them  and work in partnership on many occasions. 
However, it is still not possible to accurately measure the effectiveness of such institutional 
framework, mainly because PNCE does not have access to the data collected by each partner from 
the companies they su pervise. But Brazil hopes to overcome this problem in the months.  
4. How does the Member plan to overcome challenges that firms may face in accessing this 
platform?  WT/TPR/M/432/Add.1  
 
- 242 - 
 
Reply:  
Mainly by disseminating the advantages of the new PNCE system, which counts on a powerf ul 
initiative that allows the participation of all partners in a single platform (BRAEXP), so that 
MSMEs  can easily find help to overcome the hurdles they face along the way to exporting.  
 
WT/TPR/G/432, Pg. -38, 4.81 . Moreover, the Brazilian government is m aking efforts towards the 
implementation of a digital platform on trade -related services, called BRAEXP, in partnership with 
the British government, under the Trade Facilitation Programme.  
Question 55:  
India would appreciate a response from Brazil on the f ollowing:  
1. Can the Member please explain the working of this platform?  
Reply:  
The platform is a digital environment in which Brazilian MSMEs can access export -related services 
offered by public and private institutions or third parties of any nationality, including, but not limited 
to, services for export maturity assessment, business training, business intelligence, trade 
promotion, financing, insurance and guarantees, logistics, customs clearance and documentation, 
among others.  
It contains s everal modules for integration of services to support the internationalization of MSMEs, 
the three most important of which are related to: (i) a marketplace for offering services, (ii)  a 
platform for publishing and managing online content, and (iii) a set of Application Programming 
Interfaces – APIs – for data exchange with external systems.  
 
2. What are the steps taken to overcome the digital divide?  
Reply:  
BRAEXP does not address the digital divide issue.  
 
3. India would like to understand how the partnership between the two countries plans to address 
the digital infrastructure gap that may be prevalent across Brazil.  
Reply:  
BRAEXP does not address the digital infrastructure gap issue  
WT/TPR/G/432, Pg. -38, 4.82 . BRAEXP is designed to be a marketplac e that connects different 
providers and their systems, in which MSMEs will be able to do an export maturity assessment and 
find a wide range of export services to attend their needs, from management skills courses and 
market research to financing, insuranc e and logistics. The project is pioneer in Latin America and is 
grounded in the concept of "Integrated Services for MSMEs in International Trade" (ISMIT), that is 
the digitization and integration of all services to enable an export.  
Question 56:   
Brazil is  requested to share the following details,  
1. Can the Member explain the mechanism via which MSMEs will be able to do an accurate 
export maturity assessment?  
Reply:  
The mechanism is the PNCE digital platform, which will be integrated to BRAEXP and works as 
follows: first, any interested MSME register itself and respond to a thorough questionnaire that will 
allow the system to generate a business assessment comprising four dimensions: strategy, 
management, market and operations; based on such assessment, the s ystem will also present a 
business maturity assessment, which indicates how prepared a company is regarding the 
requirements needed when it comes to trading overseas. At this point, the company is presented to 
an array of actions aimed at raising its abili ty to export. Finally, since the PNCE digital platform is 
connected to BRAEXP, the user will be able to easily find which institutions/companies – public or WT/TPR/M/432/Add.1  
 
- 243 - 
 
  private – may provide his/her company with services and/or tools that will help internationalize 
his/her business.  
2. What are the challenges that the Brazilian government is facing in implementing such an 
initiative?  
Reply:  
So far, the main challenges are related to strengthening the governance established (since this is a 
project executed in partnership between many different actors: Ministry of Economy, Ministry of 
Foreign Affairs, Brazilian Trade and Investment Promotion Agency -Apex-Brasil, Brazilian Micro and 
Small Business Support Service -Sebrae, Brazilian National Confederation of Industr y-CNI and 
Brazilian Confederation of Agriculture and Livestock -CNA) and legal matters, which will define the 
relationship between users and service providers, as well as each partner 's duties, obligations, rights 
and competencies.  
WT/TPR/G/432 Pg. -39, 4.91 . "Brazil's long -standing agribusiness competitiveness and the trend 
of its production and exports have been supported by sustained investments in agricultural research, 
consolidating the country's leadership as a major agricultural producer and exporter. In 2021, 
agribusiness was responsible for USD 120.5 billion in exports that represented 43% of Brazil's total 
exports. Brazilian participation in world trade in the sector is 6.6%. Brazil is the world's main exporter 
of soybeans, poultry meat, bovine meat,  sugar and coffee, and the second main exporter of corn 
and cotton".  
Questions 57:  
1. What is the total budget allotted and utilized for different agricultural research programmes by 
Brazil in 2020 and 2021? Kindly elaborate on the specific measures undert aken in the research 
programmes.  
2. Which areas/ products are being accorded priority  under the research programmes?  
Reply:  
Since this data is not collected yet, Brazil reserves the right to revert bilaterally to India to discuss 
the matter  
WT/TPR/G/432 Pg .-39, 4.95 . "The main sources of agricultural financing have continued to be 
resources from demand deposits and rural savings compulsorily destined for rural credit, resources 
from financial institutions, freely allocated in rural credit at free interest r ates, and from Agribusiness 
Credit Bills (LCA) directed to rural credit and credit lines managed by the National Economic and 
Social Development Bank (BNDES), as well as the "Constitutional Funds" aimed at reducing regional 
inequalities and promoting socia l and economic development through the financing of agriculture, 
agro-industry and other sectors, in addition to infrastructure, innovation and technology. These 
funds are targeted to the North, Northeast and Center -West regions (FNO, FNE and FCO)".  
Questi ons 58:  
1. What are Agribusiness Credit Bills (LCA)?  
Reply:  
LCA are bills issued exclusively by commercial banks, and 35% of its value are compulsorily allocated 
in rural credit.  
2. What is the amount of rural credit provided from Agribusiness Credit Bills  (LCA), National 
Economic and Social Development Bank (BNDES), and Constitutional Funds?  
Reply:  
Amount of rural credit provided in the agricultural year (July/June) by source of resources, in 
BRL million, are as follows:  
SOURCE  2020/2021  2021/22  
LCA 38,529  57,810  
BNDES  17,441  12,236  
FCO 7,109  6,257  
FNE 7,989  10,952  
FNO 6,499  7,967  
3. Does the term 'free interest rate' mean zero interest? What is the commercial interest rate for 
such loans? Who bears the cost of rural credit to the financial institutions?  WT/TPR/M/432/Add.1  
 
- 244 - 
 
Reply:  
Free interest rate means that the rate is freely set by commercial banks in rural credit operations.  
The free interest rate varies according to the specific loan involved, if destined for working capital 
or for investment. In the period July/September, these rates were 8% in 2021 and 12 .9% in 2022.  
The Treasury bears the cost when the rural credit is provided with subsidized resources. The Treasury 
pays to the bank the difference between capital cost plus adminis trative costs plus tax costs and the 
interest rate.  
WT/TPR/G/432 Pg. -40, 4.97 . The Government adopts national policies aimed at promoting the 
production of food by small farmers through public purchase programs carried out at market prices. 
Through the Fee d Brazil Program (Programa Alimenta Brasil, PAB), which replaced the Food 
Acquisition Program (Programa de Aquisição de Alimentos, PAA), the Government buys food 
produced by family farmers and distributes it to social organizations that serve individuals a nd 
families in situation of food and nutrition insecurity. The new Program guarantees food security for 
both producers and consumers and strengthens local and regional commercial networks. Compared 
to the former PAA, the PAB has expanded the annual limits of amounts paid to families for the 
purchase of food. In the last 10 years, the Program has invested more than BRL 5 billion. In 2020, 
as a strategy to face the COVID -19 pandemic, the Program invested BRL 700 million, which 
guaranteed a market for farmers facing the closure of their marketing channels due to social 
isolation, in addition to guaranteeing a flow of food donations to social assistance entities. Another 
important public purchase program, the National School Feeding Program, in turn, encourages the 
purchase of food from family farms for use in school meals.  
Questions 59:  
a. How does "Feed Brazil" differ from the "Program of acquisition of agricultural products from 
family farming"?  
Reply:  
The relevant difference is the update of the maximum annual p ayments to eligible small farmers, 
family farmers, and agricultural cooperatives.  
b. At what price does the "Feed Brazil" programme procure from farmers? How this price is 
determined? What are the agricultural products covered under the programme?  
Reply:  
The general rule for purchase is through a bidding process, to assure public transparency and wide 
participation of interested suppliers, in order to obtain market rate prices. In exceptional cases when 
a bidding process is not possible, Law no. 14,284/2021 es tablishes that purchases can only be 
carried out if prices are compatible with prevailing market prices, at a local or regional level.  
Considering that the purpose of the program is to increase access to food for people and groups in 
vulnerable situations,  through the acquisition of production from family farmers, extractivists, 
artisanal fishermen, indigenous peoples and other traditional populations, there is no predetermined 
role of products that can benefit. The program has allowed for the acquisition o f several food items 
produced by family farming, some commercial crops and others with little or no market insertion 
and only regional importance (such as some socio -biodiversity products), in order to enable the 
provision of diversified, healthy and balan ced diets.  
c. What is the eligibility for farmers to be covered under this programme?  
Reply:  
In Brazilian legislation, family farming is an economic activity defined in Law No. 11,326/2004. 
According to the law, a family farmer and a rural family entrepreneur  are those (i)  who carry out 
activities in rural areas, (ii) have an area of up to four fiscal modules, (iii) uses labour from the 
family itself, (iv) has a minimum percentage of family income originating from economic activities 
of its establishment; (v) the management of the establishment is undertaken by the family itself. 
The farmer needs to have obtained a Declaration of Eligibility for the National Program for 
Strengthening Family Agriculture (DAP), an instrument used to identify and qualify the Famil y Units 
of Agrarian Production in family farming. In addition to family farmers, artisanal fishermen, 
aquaculturists, mariculturists, foresters, extractivists, quilombolas, indigenous people, agrarian 
reform settlers can obtain the DAP.  WT/TPR/M/432/Add.1  
 
- 245 - 
 
  WT/TPR/G/432, Pg. -41, 4.104  - Regarding Brazilian data on foreign trade in services, it is worth 
noting that the Brazilian Integrated System for Foreign Trade in Services and Intangibles (Siscoserv) 
was discontinued in 2020. The system's shutdown was part of a broad process of reducing 
bureaucracy, facilitating, and improving the business environment promoted by the federal 
government, based on the Economic Freedom Act (Law No. 13.874/2019). The objective was to 
provide cost reduction and simplify processes for public and pri vate agents. This measure did not 
result in loss of information, as statistics on foreign trade in services continued to be produced and 
published by the Central Bank of Brazil based on foreign exchange contracts, in accordance with the 
best practices and recommendations of the Balance of Payments and International Investment 
Position Manual (BPM6 - IMF).  
Question 60:  
1. Could Brazil provide detailed information about the "Economic Freedom Act (Law 
No. 13.874/2019)? If Brazil could indicate if there are any preferential terms for foreign 
players under the Initiative?  
Reply:  
Law No. 13,874/2019 (Economic Freedom Act) was enacted establishing the adoption of Regulatory 
Impact Analysis (RIA), Public Consultations and Regulatory Result Assessment (ARR) for Re gulatory 
Agencies and other public administration offices. At the end of 2020, Brazil and the United  States  
signed the Protocol on Transparency, Business and Good Regulatory Practices, which entered into 
force in June 2022. The Protocol has an annex dedica ted to binding commitments on good regulatory 
practices, expanding the requirements of RIA and social participation and bringing innovations 
regarding the institution of regulatory oversight, regulatory agenda and annual report of the 
regulatory impact cau sed by the regulations issued. Decree No. 11,243/2022 was recently enacted 
in order to support the implementation of the Protocol. It allows the participation of foreigners in 
public consultations.  
Questions based on General Observations  
Question 61:  
For the preparation of the significant parts of the Secretariat Report, it is the Organisation for 
Economic Co -operation and Development (OECD) reports have been used. While other 
intergovernmental sources have also been used, India would like to know if this o ver-dependence 
on OECD reports is accepted by the membership.  
Brazil is requested to provide details of its domestic institutions working for data collection and other 
analyses.  
Reply:  
Since the 1990s Brazil participates in OECD committees and the reports of OECD regarding Brazil 
are a natural consequence of the Brazilian participation in OECD fora. Aside from this fact, the 
Reports of the TPRB are of exclusive responsibility of the WTO Secretariat, which has complete 
autonomy to use the documents and sourc es considered useful.  
The Brazilian Institute of Geography and Statistics (IBGE) is the main Brazilian institution responsible 
for data collection and analyses of the Brazilian economy and society.   
Question 62:  
Can Brazil give details regarding the curren t status of the Prorenova soft loan scheme notified by 
Brazil vide notification (G/AG/N/BRA/52)?  
Since 2021, Prorenova is not a program with its own budget or financing conditions.  
  WT/TPR/M/432/Add.1  
 
- 246 - 
 
INDIA  - ADDITIONAL QUESTIONS  
Questions  based  on Secretariat  Report  (TPR/S/432)   
WT/TPR/S/432,  Pg.-38, 2.15 – "The policy  setting  remains  to some  extent  characterized  by 
persisting  "infant  industry"  protection  and tariff jumping  principles.  Its tools comprise  border  
measures  coupled  with complex  and possibly  distortive  tax and non-tax incentives,  inter alia, 
involv ing local content  requirements,  administered  interest  rate or subsidized  credit,  and other  
targeted  subsidies  often leading  to cross-subsidization  elements  affecting  the economy  and its 
prospects. "  
Question  1:  
1. Please  provide  details  of the sectors  in which  Brazil  imposes  the local content  requirement.  
Whether  the local content  requirements  are not inconsistent  according  to Article  3 (1) b of the 
SCM Agreement  as being  prohibited.  Have these  local content  requirement  clauses  been notified  to 
the WTO under the relevant  committees?   
REPLY:  
The contracts  signed  by the National  Agency  of Petroleum,  Natural  Gas and Biofuels  (ANP)  with the 
winning  companies  in the bidding  rounds  and with Petrobras  in the onerous  assignment  areas  include  
a local content  require ment,  which  focuses  on the exploration  and development  phases  of the 
production.  The requirements  are consistent  with WTO rules.  
2. Please  also provide  a list of sectors  wherein  administered  interest  rates or subsidized  credit  is 
provided.   
REPLY:  
Brazil  does not grant  subsidies  contingent  upon the use of domestic  over imported  goods.  All 
subsidies  granted  by Brazil  are notified  to the WTO and are consistent  with WTO rules.  
 
WT/TPR/S/432,  Pg-54, 2.47. The Brazilian  Trade  and Investment  Promotion  Agency  (Apex-
Brasil)  continues  to play a leading  role in attracting  FDI to Brazil  by working  to identify  business  
opportunities,  promoting  strategic  events,  and lending  support  to foreign  investors  willing  to allocate  
resources  to Brazil;  it also supports  Brazilian  companies'  efforts  to invest  abroad  under  its 
"internationalization  program"   
Question  2:  
What support  is made  available  by the Brazilian  government  for its investors  under  the 
internationalization  program?  Please  provide  the full details.   
 
REPLY:  
Support  given  for the internationalization  of Brazilian  companies  refers  to activities  typical  of trade 
promotion  agencies  all around  the world,  such as, for instance,  (a) providing  information  regarding,  
inter alia, the legal and infra-legal regulation  of other  countries  and potential  local partners  and 
suppliers/clients;  and (b) offering  advice  related  to the definition  of strategies  for starting  and 
advancing  in the process  of internationalization.  This type of assistance  responds  to case-by-case 
needs,  involvi ng mainly  information  gaps experienced  by Brazilian  companies  concerning  foreign  
markets  and business  environments.   
 
WT/TPR/S/432,  Pg-55, 2.48. As from January  2020,  to increase  competition  in the market  the 
recognition  of foreign  participation  in domestic  financial  institutions  as being  of national  interest  has 
been simplified  and non-discriminatory  treatment  for foreign  investors  has been ensured  
Question  3:  
What measures  were undertaken  to ensure  simplifying  processes  in domestic  financial  institutions  
for foreign  investors?   
EPLY:  WT/TPR/M/432/Add.1  
 
- 247 - 
 
  Presidential  Decree  10,029/2019  and BCB Circular  3,977/2020  lifted the previous  requirement  of a 
presidential  decree  for the establishment  of foreign  banks  in Brazil  or for foreign  ownership  in 
domestic  banks.  Currently,  the Central  Bank of Brazil  (BCB)  authorizes  any establishment  of foreign  
banks  and participation  of foreign  investors  in financial  institution  regardless  of the residency  of the 
investor.  
 
WT/TPR/S/432  Pg.-61, 3.2. During  the review  period,  Brazil's  list of import  prohibitions  remained  
broadly  unchanged.  Brazil  made  limited  use of export  taxes,  two of which  were eliminated  during  
the review  period.  Brazil  remains  a significant  user of anti-dumping  (AD) measures;  changes  were 
made  to the regulatory  and institutional  framework  for trade remedies.  Brazil  also updated  its 
drawback  and export  processing  zone regimes,  and adopted  guidelines  for reforming  the system  of 
federal -level export  support.  Brazil's  internal  taxation  regime  remains  complex,  including  in the 
treatment  of imported  goods  and services.  Support  to domestic  production  and trade in the form of 
tax and non-tax incentives  continued.   
Question  4: 
 
1. What type of federal -level export  support  is provided  by Brazil  for its exports?  
REPLY:  
The tax treatment  of Brazilian  exports  follows  world  practice  and seeks  to relieve  indirect  taxes  on 
exports.  The drawback  special  customs  regime,  instituted  by Decree -Law nº 37, of 1966,  and 
improved  by several  subsequent  norms,  is a special  customs  regime  that allows  the suspension  or 
elimination  of taxes  levied  on the acquisition  of inputs  used in the industrialization  of exported  
products.  Curren tly, there are three  types  of drawback:  suspension,  exemption  and tax refund.  The 
first two are managed  by the Foreign  Trade  Secretariat  – Secex,  while the third is under  the 
jurisdiction  of the Federal  Revenue  Service  – RFB, and in practice  is no longer  used. Additionally,  
there  are export  credit  measures  such as Export  Financing  Program  (Proex)  and Export  Credit  
Insurance  (SCE),  financed  by the Export  Guarantee  Fund (FGE).  
 
2. What type of differential  support  is provided  in the treatment  of imported  goods  and services  
vis-a-vis domestic  production  and trade  and how this differential  support  will be justified  
under  the WTO rules?   
REPLY:  
As a signatory  of the WTO Agreement,  Brazil  has incorporated  GATT  rules into its domestic  legal 
system  that guarantee  internally the same  treatment  to imported  and domestically  produced  goods.  
 
WT/TPR/S/432,  Pg-100, 3.183.  During  the review  period,  INPI continued  taking  steps  to reduce  
processing  delays  and its backlog  of applications  pending  review  (Table  3.20).  Procedural  
developments  included  modification  of the preliminary  requirements  for patent  applications193,  
expansion  of fast-track examination  facilities194,  and a growing  network  of bilateral  work-sharing  
agreements  under  the Patent  Prosecution  Highway  (PPH)  initiative  
Question  5: 
1. What is the basic framework Brazil adopted for PPH and is it uniform for all countries?  
REPLY:  
Brazil  adopts  the PCT IPRP and the granting  decision  as the base documents  for the PPH application.  
 
WT/TPR/S/432,  Pg-101, 3.188.  Brazil's  civil rights  framework  for the Internet  contains  
provisions  addressing  certain  aspects  of online  copyright  infringement.198  Although  a 
comprehensive  mechanism  for the expeditious  removal  of copyright -infringing  content  has not yet 
been formalized  in Brazil ian legislation,  Brazil's  Superior  Court  of Justice  (Superior  Tribunal  de 
Justiça) has ruled that failure  to act within  24 hours  of receipt  of a private  (extrajudicial)  notification  
containing  the precise  address  (URL)  of the allegedly  infringing  content  may result  in civil liability  of 
the Internet  service  provider  WT/TPR/M/432/Add.1  
 
- 248 - 
 
 
Question  6: 
1. Taking  into account  that the internet  service  provider  must act within  24 hours  of receipt  of a 
private  (extrajudicial)  notification  containing  the infringement  URL. Could  the Brazilian  authorities  
report  in more detail  what actions  are taken  by the internet  service  provider  upon receiving  a 
notification  of the allegedly  infringing  content?  Is there  any procedure  to prevent  the removal  of 
works  for the unfounded  allegation  of infringement?  Are there any approaches  in place to identify  
the mirror  rogue  website?  
REPLY:  
Law No. 12,965,  of 23 April 2014,  also known  as the "Marco  Civil da Internet " ("Civil Rights  
Framework  for the Internet "), establishes  principles,  guarantees,  rights  and duties  for the use of the 
internet  in Brazil.  Article  19 of this Law, which  deals with the liability  of internet  service  providers,  
establishes  in its second  paragraph  that the legal regime  applicable  to copyright  infringements  
depends  on a specific  legal provision  – which  has not yet been enacted.  The current  Brazilian  
Copyright  Act (Law No. 9,610, of 19 February  1998)  does not provide  specific  treatment  on the 
matter.  In this context,  the removal  of infringing  copyright  content  in the country  is governed by 
the jurisprudence  of the Superior  Court  of Justice  (the court responsible  for standardizing  the 
interpretation  of federal  law throughout  Brazil,  as well as for the definitive  solution  of civil and 
criminal  cases  that do not involve  constitutional  matters),  which  established  a model  similar  to the 
"notice  and takedown " regime  prevailing  in the United  States.  
The settled  jurisprudential  understanding  of the Brazilian  Superior  Court  of Justice  is that the 
responsibility  of intermediaries  occurs  from the moment  the service  provider  is notified  judicially  or 
extra judicially  and does not proceed  with the removal  of the illegal  content.  According  to the decision  
of Special  Appeal  No. 1.698.647  – SP (available  at: https://tinyurl.com/2hl3jvnk ), for the provider  
to be required  to remove  allegedly  infringing  content,  it is necessary  to indicate  the "URL" of the 
website  that serves  this content.  It is worth  pointing  out that there are trials in progress  at the STJ 
that may change  the current  understanding  of the matter.  In addition  to the enforcement  measures  
adopted,  providers  develop  processes  to avoid  litigation  and violations,  in accordance  with their 
terms  of use and internal regulations.  
2. Are there  any plans  to review  the present  enforcement  process?  
REPLY:  
There  are initiatives  of the Brazilian  government  towards  drafting  a Bill to Reform  the Copyright  Act. 
A Public  Consultation  in 2019 gathered  several  proposals,  including a "notice  and notice " system  
(similar  to that adopted  in Canada)  for the removal  of infringing  content  by internet  service  
providers,  which  is the main proposal  for revising  the current  model  (see consolidated  data public  
consultation,  available  at: https://tinyurl.com/y6722m9e ). 
WT/TPR/S/432,  Pg-102, 3.189.  The civil and criminal  penalty  provisions  in Brazil's  legislation  
for violations  of industrial  property,  copyright,  and related  rights  remained  unchange d during  the 
review  period.  Pursuant  to Brazil's  customs  legislation,  the RFB has authority  to seize IP-infringing  
goods  ex officio  or at the request  of the right holder.  
Questions  7: 
1. Can Brazil  share  the average  number  of IP-infringing  goods  seized  every year at the border  by 
customs  authorities  both on the import  as well as export  side for each IP area?  
REPLY:  
Please find below a table with aggregated data on the number of IP -infringing goods seized every 
year at the border by Brazilian customs authorities . 
 
 
 
 
 
 
 WT/TPR/M/432/Add.1  
 
- 249 - 
 
  
Merchandise  
unit of 
measurement  2019  2020  2021  Jan-Oct 2022  TOTAL 
UNIT  
TOTAL 
(R$) 
% 
TOTAL 
UNIT  
TOTAL 
(R$) 
% 
TOTAL 
UNIT  
TOTAL 
(R$) 
% 
TOTAL 
UNIT  
TOTAL 
(R$) 
% Bags and 
accessorie
s unit 2.141
.072 
27.826
.856,2
8 0,85
% 2.738.
825 
27.590.7
56,75  0,91
% 5.216.
605 
52.222.8
13,39  1,15
% 2.113
.455 
25.263.4
19,84  1,01
% kg 192.
741 71.15
4 208.3
81 5.41
8 
Toys unit 6.60
2.78
9 
153.4
91.72
9,16 4,7
1% 4.056
.211 
81.182.
813,12  2,6
8% 2.181
.730 
42.567.
549,45  0,9
3% 1.03
9.80
2 
42.114.
295,45  1,6
9% kg 894.
102 503.8
24 200.8
93 165.
342 Shoes  
Sneakers  
kg 134.
162 
22.29
2.881,
30 0,6
8% 30.87
1 
13.205.
443,69  0,4
4% 7.109  
9.353.5
44,47  0,2
1% 11.4
83 
10.278.
967,39  0,4
1% unit 159.
876 132.6
82 147.3
91 96.5
83 Others  kg 40.0
02 
7.885.
771,4
5 0,2
4% 21.24
4 
9.103.8
82,81  0,3
0% 290.8
03 
51.315.
707,87  1,1
3% 39.4
04 
9.439.6
17,87  0,3
8% unit 119.
642 482.0
82 621.2
26 135.
851 Sunglass
es kg 13.9
37 
95.67
0.628,
15 2,9
4% 10.44
9 
50.940.
529,18  1,6
8% 38.31
0 
28.297.
299,59  0,6
2% 20.4
45 
17.771.
973,68  0,7
1% unit 2.15
9.22
6 1.534
.926 1.685
.243 980.
682 Perfumes  
kg 890 
12.93
6.063,
30 0,4
0% 1.533  
13.767.
638,69  0,4
5% 15.51
8 
20.128.
274,88  0,4
4% 2.69
3 
15.192.
872,29  0,6
1% unit 144.
213 177.7
95 208.5
22 130.
859 Watches  
unit 1.38
0.73
4 
40.69
0.339,
60 1,2
5% 1.220
.769 
34.995.
615,94  1,1
5% 1.444
.091 
80.781.
921,30  1,7
7% 899.
524 
28.357.
306,38  1,1
4% kg 105.
853 33.87
3 199.9
51 8.92
8 Streaming 
Device, 
Receptor 
via 
Satelite  kg 1.41
7 
24.85
1.095,
21 0,7
6% -800 
29.662.
443,07  0,9
8% 955 
294.515
.334,96  6,4
6% 20.5
46 
143.342
.444,14  5,7
4% unit 112.
194 157.8
70 1.378
.642 416.
648 Clothing  kg 1.66
6.42
1 
228.5
22.62
9,56 7,0
2% 1.867
.219 
225.203
.082,63  7,4
2% 2.488
.598 
329.732
.116,40  7,2
3% 855.
453 
105.932
.565,42  4,2
4% unit 15.5
95.6
29 14.67
8.305  14.55
5.640  9.17
0.70
4 
Total    
  614.1
67.99
4,01     485.652
.205,88      908.914
.562,31      397.693
.462,46    
 WT/TPR/M/432/Add.1  
 
- 250 - 
 
WT/TPR/S/432,  Pg-102, 3.191.  In 2019,  Brazil's  Federal  Police  carried  out "Operation  
Copyright",  taking  coordinated  action  in five Brazilian  states  to shut down  websites  with pirated  
content  and seize equipment.  As a result,  100 applications  and 136 websites  were closed  down.  
During  2019-21, the Integrated  Operations  Secretariat  of the Ministry  of Justice  and Public  Security  
led enforcement  operations  in three  phases  of "Operati on 404 against  piracy".  The coordinated  
actions  resulted  in the shutdown  of 334 websites  and 94 streaming  applications  offering  copyright -
infringing  content,  the execution  of over 60 search  and seizure  warrants  across  12 Brazilian  states,  
and several  arrests.  
Questions  8: 
 
1. Can Brazil  explain  under  what circumstances  the state may close a website  for copyright  
violations?  
REPLY:  
Preliminarily,  it is important  to point out that in Brazil,  contrary  to what happens  in other  
jurisdictions,  administrative  or police  authorities  do not have the power  to block or close websites  
"ex officio ", without  prior court order.  Furthermore,  a court order  can only be issued  at the request  
of the injured  party in civil cases,  or the administrative  or police  authority  in criminal  cases.  
Having  made  this clarification,  we note that Brazilian  legislation  does not specifically  deal with closing  
or blocking  websites.  Article  105 of the Brazilian  Copyright  Act (Law No. 9,610, of 19 February  1998)  
grants  the compete nt judicial  authority  the power  to order  the suspension  or immediate  interruption  
of the "transmission  and retransmission,  by any means  or process,  and communication  to the public  
of artistic,  literary  and scientific  works,  interpretations  and phonograms,  carried  out in violation  of 
the rights  of their owners ". The third paragraph  of art. 184 of the Brazilian  Penal  Code 
(Decree -Law No. 2,848, of 7 December  1940),  in turn, criminalizes  the conduct  of making  goods  
protected  by copyright  available  to the public, including  over the internet,  without  the express  
authorization  of the rights  holder.  Violation  of copyright  related  to computer  programs  is criminalized  
by art. 12 of Law No. 9,609,  of 19 February  1998 (known  as the "Software  Law"). In addition,  the 
Criminal  Procedure  Code (Decree -Law No. 3689 of 3 October  1941)  provides  for search  and seizure  
as one of the measures  to be adopted  in the prosecution  of crimes  against  immaterial  property  (see 
paragraph  of article  529).  
However,  based  on the analogical  and extensive  interpretation  of these  and other  rules,  the Brazilian  
Judiciary  has decreed  measures  such as the redirection  and blocking  of websites  used to infringe  
intellectual  property,  in addition  to their de-indexing  in search  engines  such as Google  and Bing. 
Unfortunately,  as these  measures  deal with criminal  matters  or investigations  in progress,  most of 
the judicial  processes  that determined  the blocking  of websites  are being  carried  out in secrecy  of 
justice  or are still in the first degree  of jurisdic tion (whose  decisions  do not create  a precedent  for 
other  jurisdictional  bodies).  It is to be expected  that the general  criteria  and circumstances  that 
allow the blocking  of websites  will eventually  be harmonized  by the Superior  Court  of Justice,  the 
court responsible  for standardizing  the interpretation  of federal  law throughout  Brazil,  as well as for 
the definitive  solution  of civil and criminal  cases  that do not involve  constitutional  matters.  
2. Can Brazil  provide  additional  information  on the process  to report  counterfeits  or acts of piracy?  
For example,  is there a website  where  an aggrieved  person  may file concerns?  
REPLY:  
As for the process  to report  counterfeits  or acts of piracy,  reports,  or complaints  about  alleged  sales 
of illegal  products  (pirate , counterfeit,  smuggled  or, in any way, in violation  of intellectual  property)  
must be directed  to the police  (federal  or member  states  of the federation),  as well as tax authorities  
or agencies  of consumer  protection.  Complaints  may also be forwarded  to the National  Council  for 
Combating  Piracy  and Intellectual  Property  Offenses  (CNCP),  by email  to cncp@mj.gov.br.  
3. Was the action  taken  by authorities,  ex-officio  or on the complaint  by any party?  
REPLY:  
As mentioned  above,  administrative  or police  authorities  do not have the power  to block or close 
websites  "ex officio ". 
WT/TPR/S/432,  Pg-130, 4.90. During  the review  period,  in addition  to mandatory  fuel blending,  
other  support  measures  for the production  and consumption  of ethanol  involving  cross-subsidization,  WT/TPR/M/432/Add.1  
 
- 251 - 
 
  credit  facilities,  and tax incentives  remained  in place.  Sugarcane  producers  from the north  and north -
eastern  states  received  a direct  subsidy,  the Regional  Producer  Subsidy.  Tax incentives  for flex-fuel 
cars (around  80% of all motor  vehicles  sales),  involving  lower  rates for the tax on Industrialized  
Products  (IPI),  the Contribution  to the Social  Integration  Program/Contribution  for Financing  Social  
Security  (PIS/COFINS),  and the state tax for circulation  of goods  and services  (ICMS),  continued  to 
play an important  role in supporting  ethanol  consumption.  
Question  9: 
How is Brazil  accounting  for the cross-subsidisation  of ethanol  production?  Does Brazil  include  the 
cross-subsidisation  as part of its AMS calculations?  If so, under  which  disciplines  of the Agreement  
on Agriculture  is Brazil  notifying?  
REPLY:  
During  the period  covered  by the TPR no direct  subsidies  for ethanol  production  were made  available  
by the Federal  Government,  which  is why there are no AMS calculations  for the product.  
It should  also be noted  that the volume  of ethanol  produced  in these  states  during  the period  is 
between  6% and 7% of national  production,  with little influence  on the market,  as shown  in the 
table below.  
 
As for cross-subsidies,  the existing  incentives  are not considered  part of the AMS because  they are 
not directly  linked  to ethanol  production  or consumption.  
 
Questions  based  on Government  Report  (WT/TPR/G/432)   
WT/TPR/G/432,  Pg-21, 3.40. Protocol  on Cooperation  and Facilitation  of Investments  (Decision  
CMC 03/2017)  represents  a milestone  in the regulation  of investments  in the region.  The Protocol  
addresses  the business  community's  interest  in minimizing  risks and preventing  disputes  related  to 
investments.  It also seeks  to encourage  mutual  investments  within  the region  through  
intergovernmental  dialogue  mechanisms,  which  support  companies  in the process  of 
internationalization.  The Protocol  will provide  for greater  disclosure  of business  opportunities,  
exchange  of information  on regulatory  frameworks  and appropriate  mechanisms  to prevent  and, 
eventually,  settle  disputes.  
Question  10: 
Has there been an impact  on FDI flows into Brazil  post-adoption  of CFIA?  
REPLY:  
Brazil  climbed  three  positions  in 2021,  becoming  the sixth country  that attracted  the most FDI, 
according  to UNCTAD´s  World  Investment  Report.   
WT/TPR/M/432/Add.1  
 
- 252 - 
 
The specific  impact  of CFIAs  on FDI flows,  however,  is still hard to measure,  especially  when  one 
considers  that only a limited  number  of CFIAs  is currently  in force and that Brazil  has been among  
the largest  recipients  of FDI throughout  the last two decades  or so, even when  no investment  
agreements  were in force.   
Nonetheless,  it is worth  pointing  out that the Ombudsperson  of Foreign  Direct  Investment,  which  is 
a central element  of the CFIA model,  has been assisting  foreign  potential  investors  and investors  
operating  in Brazil.  Initially  designed  to assist  foreign  investors  from countries  that were Parties  to 
CFIAs  with Brazil,  the Ombudsperson 's original  decree  was altered  in 2019 to make  it available  to 
foreign  investors  regardless  of their nationality.  Since  this alteration,  the Ombudsperson  has 
followed  up on 15 requests  – general  questions  about  legislation  and administrative  procedures  
related  to investments  – and 12 inquiries  – consultations  related  to specific  cases  affecting  
investments  – presented  by investors  from various  countries,  including  the United  States,  the United  
Kingdom,  Italy,  India,  Germany,  Denmark,  Portugal,  Spain,  México, Türkiye and South  Africa. 
 
WT/TPR/G/432,  Pg-24, 3.57. Brazil  has focused  on designing  a new model  of investment  
agreement  based  on a thorough  review  of studies  by international  organizations  (UNCTAD  and OECD  
Guidelines),  extensive  consultations  with the Brazilian  private  sector,  and international  
benchmarki ng. This process  led to the drafting  of the Cooperation  and Facilitation  Investment  
Agreement  (CFIA),  which  seeks  a balanced  outcome  combining  the promotion  of an attractive  
environment  for investors  while preserving  space  for public  policies.  The new Brazilian model  
sidelines  the limitations  identified  in traditional  BITs in favour  of a positive  approach  comprising  
institutional  cooperation  and facilitation  of investment  flows.  This model  has been used since 2013.   
 
Question  11:  
What has been Brazil 's experience  with dispute  settlement,  after the signing  of new-age investment  
agreements  along  the lines of CFIA?   
REPLY:  
There  have been no disputes  launched  under  the CFIAs  currently  in force.  
 
WT/TPR/G/432,  Pg-25, 4.5. In June 2022,  the OECD  Review  of Brazil's  Regulatory  Reform  was 
completed.  The Review  analyzed  sectors  that create  barriers  to competition,  such as regulations  that 
create  obstacles  to the entry of firms,  inhibit  the entry  of firms,  or restrict  activities  in professional  
and network  sectors.  In a complementary  way, the review  also identified  government  efforts  to 
develop  policies  and tools to improve  the quality  of regulations,  such as ex ante assessment  of draft 
regulations,  stakeholder  engagement  in rule making,  and administrative  simplification.  Based  on its 
recommendations,  action  plans  are being  drawn  up for the implementation  of initiatives  that bring 
the country  closer  to world  best practices.   
 
Question  12:  
What were the foreign  investment  policy  changes  that were introduced  by the Brazilian  government  
during  the review  period?   
REPLY:  
There  have not been major  policy  changes  introduced  by the Brazilian  government  during  the review  
period.  With regards  to investment  policy  measures  it is important  to highlight  the continuity  of the 
investment  facilitation  principles  of cooperation,  dispute  prevention,  streamlining  of measures,  for 
example  simplification  of authorization  procedures,  and transparency.  Brazil  has also advanced  in 
incorporating  Responsib le Business  Conduct  disciplines  (RBC)  and environmental  sustaintabilty  
criteria  in to its bilateral  and plurilateral  agreements,  as well as to the investment  chapters  of its 
FTAs.  
 
WT/TPR/G/432,  Pg-34, 4.56.  As part of the efforts  to improve  the Brazilian  Intellectual  Property  
(IP) system,  the Brazilian  Government  launched  its National  IP Strategy  (NIPS)  in 2021.  The strategy  
aims at reaching  an effective  and balanced  national  IP system,  to be widely  known,  used and WT/TPR/M/432/Add.1  
 
- 253 - 
 
  enforced.  NIPS is expected  to promote  creativity,  investments  in innovation,  and access  to 
knowledge,  contributing  to improving  overall  competitiveness  of the Brazilian  economy  as well as 
the country's  socioeconomic  development.  The strategy  is comp osed by 210 actions  divided  in 7 
main axes,  to be implemented  in the next 10 years:  (i) IP for competitiveness  and development;  
(ii) Awareness,  education  and capacity  building  on IP; (iii) Governance  and Institutional  
Strengthening;  (iv) Legal  framework  modernization;  (v) Enforcement  and legal certainty;  (vi) 
Intelligence  and vision  of future;  (vii) Insertion  of Brazil  in the IP global  system.   
Question  13: 
1. What programs  have been developed  for this purpose  and how are they planned  to be 
implemented?  
REPLY: 
Most projects  under  implementation  in the first Action  Plan (from  August  2021 to July 2023)  were 
already  in place but isolated  from a centralized  governance,  while new initiatives  were created.  There  
was no program  developed  at a first moment.  The idea of the first Action  Plan was to prioritize  and 
capture  all existing  actors  and initiatives  under  the same  umbrella  to first organize  them (based  on 
the 210 actions  and guidance  provided  by Decree  10.886),  respecting  the agenda  and programs  in 
place from many actors.  Now (during  the first semester  of 2023),  for the next Action  Plan (August  
2023 to July 2025),  we will look into the results  of the many  initiatives  and build new programs  and 
projects  to fill gaps,  integrate  or complement  what is working,  as well as exclude  initiatives  that 
were not effective  in these  first 24 months.  The deliverables  of the first and second  semesters  can 
be found  in the Monitoring  Reports  attached  (unfortunately  they are only in Portuguese).  Soon the 
next reports  will be publis hed. 
 
2. What steps  is Brazil  taking  to include  Brazil  in the IP global  system,  other  than ongoing  
negotiations  related  to PPH and signing  of The Hague  Agreement?  
REPLY:  
Brazil  understands  its participation  in the IP global  system  is an important  tool to improve  the 
national  system  and environment  of IP and innovation,  as well as to create  opportunities  and ease 
the path for Brazilian  companies  and people  to protect  and export  their intellectual  property  in 
foreign  countries,  and to absorb  foreign  intellect ual property  into our country.  However,  this is a 
process  that goes in parallel  with the development  of national  positions  and the improvement  and 
maturity  of the national  system.  That is why this global  insertion  must be balanced  and must take 
into consid eration  the national  needs  and capacities.  
The strategic  management  of the National  Institute  of Industrial  Property  (INPI -BR) is committed  to 
strengthen  Brazil's  integration  into the international  IP system.  
 
With regard  to multilateral  cooperation,  the Institute  works  with WIPO,  BRICS  
(http://www.ipbrics.net/index.html ), PROSUL  (https://prosur.org/ip ), IBEPI  
(https://www.segib.org/pt -br/programa/programa -ibero-americano -de-propriedade -industrial -e-
promocao -do-desenvolvimento/ ),IP & Gender  Latin American  Network  
(https://www.redpigenero.org/ ), and CPLP (https://www.cplp.org/ ). 
Regarding  bilateral  cooperation,  we highlight  relations  with Denmark,  United  Kingdom,  Japan  and 
United  States  of America.  
Also, Brazil, as a member  of the Mercosur,  has negotiated  or is negotiating  free trade agreements  
including  IP chapters  with Canada,  Singapore,  EFTA,  and European  Union.  
WT/TPR/G/432,  Pg-34, 4.57.  NIPS has already  shown  substantial  results  since its adoption,  such 
as: reduction  of 80% of the patent  backlog;  elimination  of the mandatory  participation  of ANVISA  
(the National  Health  Regulatory  Agency)  in the patent  process;  creation  of tools for the dissemination  
and commercialization  of IP; elaboration  of materials  to tackle  IP crimes  in digital  environment  
followed  by enforcing  actions  to that end; insertion  of IP in SMEs  and innovation  programs;  
elaboration  of a proposal  for the simplification  of regulation  on transfer  of technology  transactions.   WT/TPR/M/432/Add.1  
 
- 254 - 
 
Question  14: 
1. As Brazil  has eliminated  mandatory  participation  of ANVISA  in the patent  process,  is there  still a 
possibility  that a patent  is taken  up by ANVISA  for their views?  If yes, what are the circum stances  
when  such participation  is permitted?  
REPLY:  
Yes. ANVISA  can always  contribute  to the process  of examination  as a third party,  in the terms  of 
article  31 of the Law 9279.  The INPI will consider  the contributions,  but will not be bound  to accept  
it as an obstacle  to grant  the patent.  
 
2. What are the tools which  are being  used for the dissemination  and commercialization  of IP? 
REPLY:  
Among  the initiatives  carried  out by the INPI, it is worth  mentioning  (i) the discussion  of IP related  
issues  in events  that are not dedicated  to IP but are attended  by potential  users  of the IP system;  
(ii) the development  of content  aimed  at disseminating  basic notions  of IP among  local innovation  
agents  that work in other  government  programs  of digital  and innovat ion transformation  for SMEs;  
(iii) inclusion  of IP contents  in governmental  programs;  (iv) INPI programs,  such as INPI for 
Business,  IP Showcase,  WIPO  Green,  academy  and courses,  Mentorship,  Matchmaking,  and IP at 
Schools.  
 
3. Does Brazil  provide  specific  support  or recognitions  including  financial  support  or rebates  for SMEs  
of domestic  as well as foreign  countries  IP generators?  If not, does Brazil  is foreseeing  implementing  
any such measures?  
REPLY:  
INPI offers  discount  for trademarks  registration  of micro-enterprises,  individual  micro -entrepreneurs  
and small businesses.  There  are no other  specific  support  for SMEs  related  to IP, but there are 
general  financing  assistance  to SMEs  that can be used,  among  others,  to pay IP services  and 
consultancy  (for exam ple, through  BNDES  financing  and SEBRAETEC).  
 
WT/TPR/G/432,  Pg-34, 4.58.  Both the designing  and implementation  of the strategy  bring 
together  public  and private  stakeholders  to discuss  proposals  to improve  the Brazilian  IP legal 
framework.  The involvement  of different  institutions  also aims at increasing  transparency  and best 
governance  practices  by bridging  technical  knowledge  and policy  aims in order  to build and improve  
IP programs,  projects  and legislation.  The coordination  of public  institutions  in partnership  with 
private  ones also generates  intangible  results  and gains  that contribute  to the credibility  and stability  
of the Brazilian  IP system  in the medium  to the long run.  
Question  15: 
What are the modalities  of engagement  of public  and private  institutions  in the implementation  
process?  
Reply:  
Any public  or private  institution  can engage  within  the initiatives  of NIPS,  in a voluntary  manner.  
The engagement  can be in many  forms,  but rarely  relates  to the transfer  of funds.  Most contributions  
are through human  resources/work,  structure,  services,  marketing,  content,  institutional  support.  
The partnerships  are based  mostly  on common  interest  and agendas.  For the next Action  Plans,  the 
aim is to have more funding  and common  resources  to create  new, integrated  and broader  
programs/projects/initiatives  among  public  and/or  private  institutions.  
 
WT/TPR/G/432,  Pg-35, 4.62.  New Patent  Prosecution  Highway  (PPH)  pilot programs  are being  
negotiated.  Together  with PPH pilot programs,  actions  on patent  priority  exams were in place.  The 
first one consists  of transforming  the former  "priority  examination"  (restricted  to applications  in the 
patent  application  queue  awaiting  the technical  examination)  in "priority  procedure"  (involving  all 
activities  of the patent  proce ss – from submission  of documentation  for filing to the end of the 
process  at the INPI).  The second  action  is a pilot project  that allows  patent  applications  with WT/TPR/M/432/Add.1  
 
- 255 - 
 
  technology  already  available  on the market  and applications  with technology  resulting  from public 
funding  to be prioritized.   
 
Questions  16: 
Are the priority  examination  provisions  available  for both foreign  and the domestic  entities?  
REPLY:  
Yes, as long as they fulfil the conditions  set forth in the normative  acts, there is no difference  
between  foreign  and domestic  entities.  
 
WT/TPR/G/432,  Pg-35, 4.66.  In the field of copyright,  from the enactment  of 
Law No. 12,853/2013,  which  amended  Law No. 9,610/1998  (Copyright  Law),  the federal  
government  has the competence  to enable,  monitor,  and inspect  the collective  management  of 
copyright.  From then on, collective  management  organizations  (CMOs)  need to be authorized  by a 
federal  public  administration  body and, annually,  submit  information  and documents  that allow the 
verification  of the regularity  of the exercise  of their activities  to guarantee  a transparent  and effective  
administration.   
Question  17: 
1. Can Brazilian  authorities  provide  additional  information  on the measures  adopted  
to ensure  the transparent  and effective  administration  of CMOs?  
REPLY:  
Every  year, the National  Secretariat  for Copyright  and Intellectual  Property  examines  the information  
and documents  submitted  by CMOs,  who are obliged  to submit  them by the first day of June of each 
year. Upon verification  of possible  non-compliance  with legal and regulatory  provisions,  including  
the lack or omission  of documents,  the CMO is notified,  and must present  clarifications  and additional  
documentation.  If the irregularity  persists,  the matter  is referred  to the competent  body of the 
Secretariat  (General  Coordination  for Inspection  and Combating  Piracy)  for the initiation  of 
sanctioning  procedures.  Such administrative  processes,  like all public  processes,  are generally  open 
to any interested  party.  
 
WT/TPR/G/432,  Pg-36, 4.69.  Regarding  the modernization  of the national  copyright  legislation,  
in 2019,  there  was a Public  Consultation  to improve  and update  the Copyright  Law in the face of 
new forms  of distribution  and consumption  of intellectual  works  in the digital  context.  A Public  
Consultation  Report  was prepared  after evaluation  of the contributions  received.  In 2022,  SNDAPI  
continues  to monitor  the proposal processing  process  and provide  technical  support  whenever  
necessary.   
 
Question  18: 
Could  Brazilian  authorities  elaborate  further  on the amendments  being  considered  in the national  
copyright  legislation  based  on public  consultation?  What are the next actions  planned  to strengthen  
the copyright  regime?  
REPLY:  
After evaluating  the contributions  received,  a draft bill was prepared,  together  with an opinion  on 
the merits  and a draft explanatory  statement,  which  were forwarded  to the Executive  Office  ("Casa 
Civil") and the General  Secretariat  of the Presidency  of the Republic,  according  to the usual  
procedure  for submitting  proposals  to the head of the Executive  Branch.  In 2022,  there were 
additional  consultations  with the National  Secretariats  and entities  linked  to the Special  Secretariat  
for Culture,  which  sent new contributions.  At the current  moment,  the National  Secretariat  for 
Copyright  and Intellectual  Property  continues  to monitor  the progress  of the draft bill and provide  
technical  support  whenever  necessary.  
There  is no timeline,  as yet, for the implementation  of the update  of Brazil 's Copyright  Act. However,  
the reform  of the Copyright  Act is one of the ongoing  actions  of the National  Intellectual  Property  WT/TPR/M/432/Add.1  
 
- 256 - 
 
Strategy  ("Estrat égia Nacional  de Propriedade  Intelectual  – ENPI"), which  aims at strengthening  
public  policies  for intellectual  property.  Documents  and information  related  to ENPI may be found  at 
its official  website  (available  at: https://www.gov.br/pt -br/propriedade -intelectual/estrategia -
nacional -de-propriedade -intelectual ), which  contains  a breakdown  of its action  programs  and 
respective  stages  of implementati on.  
Questions  based  on General  observation  
Programa  BNDES  de Apoio  ao Setor  Sucroalcooleiro  – BNDES  PASS  (BNDES  Support  
Program  for the Sugar  and Alcohol  Sector  - BNDES  PASS)   
This program  is yet another  initiative  to support  the fight against  the economic  effects  of the 
coronavirus  pandemic,  directly  targeting  companies  in the sugar  and alcohol  sector  that carry out 
fuel ethanol  storage  activities  and have revenues  of more than BRL 300 million.  The BNDES  has 
announced  the implementation  of a new programme  termed  the Support  Programme  for the Sugar  
and Alcohol  sector  from August  2020 to support  the industry  facing  challenges  due to the coronavirus  
crisis.   
The program  is targeted  at companies  in the sugar -alcohol  sector  that carry out storage  activities  
for fuel ethanol  to ensure  that there are no depreciation  effects  in fuel prices.   
It is an integrated  action  with other  banks,  through  co-financing,  to support  these  companies  in the 
need for liquidity  generated  by the crisis.  With this, the BNDES  seeks  to minimize  the risk of energy  
shortages  in the post-pandemic  period.  The credit  line will be USD 600 million  and contracted  
through  a consortium  of private  banks  led by Banco  do Brasil.  The program  encourages  the 
maintenance  of jobs and replacement  of jobs in the sector.  In addition,  it preserves  environmental  
sustainability,  as ethanol  is a source  of clean and renewable  energy.  The operation  will have a 24-
month  term,  with a grace  period  of up to 6 months,  and the guarantee  will be the ethanol  stock that 
each plant has.  
Question  19:  
Has Brazil  suspended  the operation  of this emergency  measure  currently? Is it still in operation?  If 
the programme  has been extended  and is currently  in force,  what are the reasons  for this extension?  
REPLY:  
The BNDES PASS Program was launched in June 2020 as an emergency measure and was finished 
by September 2020. It wa s not renewed . 
  WT/TPR/M/432/Add.1  
 
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  CHINESE T AIPEI 
PART  II: REGARDING  THE  SECRETARIAT  REPORT  (WT/TPR/S/432)  
 III. TRADE  POLICY  DEVELOPMENTS  
3.3.7  INTELLECTUAL  PROPERTY  RIGHTS  
3.3.7.1  OVERVIEW  
Page 99 (Para 1)  
3.174. Brazil's institutional framework for the protection of intellectual property (IP) rights was 
modified during the review period. The Intellectual Property Inter -Ministerial Group (GIPI), 
established in July 2019 and chaired by the Ministry of Economy, became responsible for IP policy 
formulation. The National Industrial Property Institute (INPI) continues to administer the granting 
and registration of industrial property rights, whereas copyright administration is overseen by the 
Special Secretariat for Culture under the Ministry of Tourism.  
Questi on 1:  
Could Brazil please provide us supplementary information pertaining to the leadership hierarchy, 
budget, and human resources of the GIPI?  
Reply:  
The Interministerial Intellectual Property Group (GIPI), was established by Decree  9,931 
(23 July 2019) a ims to coordinate the federal government's action on intellectual property and the 
implementation of the National Intellectual Property Strategy. It is chaired by the Ministry of 
Economy, a function assigned to the Special Secretariat for Productivity, Emp loyment and 
Competitiveness (SEPEC). The Executive Secretariat of the GIPI is the responsibility of the 
Undersecretariat for Innovation and Digital Transformation (SIN) of the Secretariat for the 
Development of Industry, Commerce, Services and Innovation ( SDIC).  
Eleven (11) Ministries are members of the GIPI, with voting rights. The National Institute of 
Industrial Property (INPI) is invited to participate in all meetings. Civil society representatives are 
expected to participate for two -year terms. In addi tion to continued participation, GIPI may invite 
external bodies or experts to specific meetings. Representatives who are not members do not have 
the right to vote.  
GIPI plenary meetings take place every six months. Extraordinary meetings can be called at any 
time. In addition to plenary meetings, ad hoc  technical groups can be set up with a limited mandate 
to develop specific actions and debates, preparing documents and preparatory studies for plenary 
decision -making that require technical background, fact s and data.  
The Undersecretariat for Innovation of the Secretariat for Development of Industry, Commerce, 
Services and Innovation of the Special Secretariat for Productivity, Employment and 
Competitiveness of the Ministry of Economy provides technical and administrative support to Gipi, 
including human resources and budget.  
GIPI`s recommendations are not mandatory to its members. GIPI does not have its own budget and 
the actions planned in the National Intellectual Property Strategy depends on the budget of  its 
members. GIPI by itself does not have an own staff. The administrative tasks are carried on by the 
Undersecretariat for Innovation of the Secretariat for Development of Industry, Commerce, Services 
and Innovation of the Special Secretariat for Product ivity, Employment and Competitiveness of the 
Ministry of Economy, which is composed currently by five persons.  
3.3.7.2 Industrial property  
Page 100 (Para 5)  
3.183. During the review period, INPI continued taking steps to reduce processing delays and its 
backlog of applications pending review (Table 3.20). Procedural developments included modification 
of the preliminary requirements for patent applications, expansion of fast -track examination 
facilities, and a growing network of bilateral work -sharing agreem ents under the Patent Prosecution 
Highway (PPH) initiative.  WT/TPR/M/432/Add.1  
 
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Question 2:  
Regarding the steps taken to reduce backlog, what kinds of measures does "expansion of fast -track 
examination facilities" refer to?  
Reply:  
The INPI is making the requirements of PPH more flexible and consequently increasing the number 
of processes that can be the object of requirements.  
TRADE POLICY REVIEW OF BRAZIL  
Written Questions from the Separate Customs Territory of Taiwan , Penghu, Kinmen and 
Matsu  
 
PART  I : REGARDING  THE  GOVERNMENT  REPORT  (WT/TPR/G/432)  
I. GENERAL ECONOMIC ENVIRONMENT  
(1) 2.2 GENERAL LEGAL AND REGULATORY FRAMEWORK  
(2) 2.2.5 STATE -OWNED ENTERPRISES AND PRIVATIZATION  
Page 12 (Para 2&12)2.44 Brazil took a key step towards meeting the best inter national governance 
practices for state -owned enterprises (SOEs) with the publication of Law 13,303 in 2016. It has 
directly contributed to the reversal of the negative economic scenario not only by providing relief to 
government budgets, but also by impro ving services for the population. An important example of 
this movement was the adherence of Brazil to the OECD guidelines of governance for SOEs in 2021, 
as result of a peer review conducted in  2019.  
2.46 In 2021, the central government owned 154 companie s, of which 47 were directly owned, 
representing 7.6% of the GDP. During the review period, two directly owned companies were 
liquidated (Codomar and Casemg), and another one (Ceitec) is under liquidation as of 2022. 
Moreover, since 2017, divestments large ly targeted the energy sector and included 97 SOEs (directly 
and indirectly owned).  
2.49. Since the creation of the Brazilian Investments Partnerships Program (PPI) 
(Law No. 13,334/2016), Brazil has witnessed the increase in the development of new and 
better -structured projects. The PPI aims to expand and strengthen the interaction between the state 
and the private sector through partnership contracts for the implementation of public infrastructure 
projects and other privatization measures. To this end,  the program favors guidelines such as 
stability, legality, legal security, predictability, and transparency in the State's relations with the 
private entities involved.  
2.50. Those infrastructure projects considered as top priorities are qualified in the program by the 
President of the Republic, after recommendation by a Council of Ministers. Once modelled and 
structured, they are offered to private investors through competitive procedures. In its activities, 
the PPI Council can recommend the inclusion of a SOE in the program, suggesting its privatization 
or liquidation (extinction). This latter assignment of the Council is due to its role in the National 
Privatization Program (PND). In addition, the state and municipal levels could also benefit from the 
PPI, as their SOEs are also covered by the privatization program.  
2.53. Indirect privatizations, considered disinvestments, were also included in the PPI between 2017 
and 2022. The most important ones were subsidiaries controlled by Petrobras (oil and gas) a nd 
Eletrobras (electricity). Other types of disinvestments related to SOEs included on the portfolio have 
already been auctioned: airports (31 owned by Infraero), port terminals, national railways, irrigation 
and interbasin river transfer.  
 WT/TPR/M/432/Add.1  
 
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  Question 3:  
Would Brazil please explain how Law 13,303 is also applicable to SOEs owned by state governments?  
Reply:  
As stated in Law 13.303/2016, its effects are applicable to all levels of government, municipal, state 
and federal.   
Could Brazil please inform us the so urce where we can find more detailed information about SOEs  of 
state governments.  
In Brazil, federal SOEs are under the governance of the Secretariat of Coordination and 
Governance  – SEST, in the Ministry of Economy. Detailed information on state SOEs migh t be 
available in the state´s local government, such as the state´s comptroller´s office and finance 
secretariat.  
 
We note that Brazil's state governments have been promoting the privatization of SOEs and their 
participation in the PPI program. Could Brazi l please elaborate how effective have these programs 
been?  
 
Reply:  
Considering  2017-2021, 18 projects involving direct privatization of a Federal SOE were included on 
the PPI portfolio. One of them was excluded from the program in 2021, so 17 projects rema ined in 
the portfolio. The included SOEs are from different areas such as electricity, transportation (port 
authority), urban mobility, IT, telecommunications, and trading hub, among others.   
The projects evolved considerably during this period. Nevertheless, most privatizations and 
extinctions were programmed to happen in 2022 or later. In fact, two of them were finally privatized 
in 2022: Eletrobras (electricity) and Codesa (port authority). Besides, two SOEs were extinguished 
during this period : Casemg (bulk storage, mostly grains) and Codomar (port authority).   
 
Indirect privatizations, considered disinvestments, were also included on PPI between 2017 and 
2022. The most important were subsidiaries controlled by Petrobras (oil and gas) and Eletr obras 
(electricity). Other types of disinvestments related to SOEs included on the Portfolio have already 
been auctioned: airports, port terminals, national railways, irrigation and interbasin river transfer.   
The privatization of state -owned companies of states or municipalities is provided for in art. 2 of 
Law No. 9,491, of 09/09/1997, which authorizes the National Bank for Economic and Social 
Development - BNDES, by determination of the Investment Partnership Program Council - CPPI, to 
sign a contractual instrument with the federative entities to supervise the privatization process of 
its state -owned companies, holders of concession, permission or authorization to provide public 
services. The effectiveness of the mechanism derives from the BNDE S' experience in privatization 
processes and from the existence of a well -defined legal framework. The Bank works in the 
structuring of projects aimed at attracting private partnerships, identifying opportunities and 
conducting the process from the study a nd modeling phase to the signing of the privatization contract 
between the government and the private partner.  
 
The submission of an updated assessment of the effectiveness or description of privatization actions 
of state -owned companies controlled by stat es or municipalities over time would be within the scope 
of the competences of Special Secretariat of the Investment Partnerships Program – SEPPI. The 
progress report on projects and other actions within the scope of the 2021 Investment Partnerships 
Progra m – PPI can be found at the following electronic address, which highlights, in relation to states 
and municipalities and their state -owned companies, support for the structuring of Public -Private 
Partnerships (PPPs) in social infrastructure (pages 41 to 43), especially in the areas of public lighting 
and sanitation:  
https://www.gov.br/econo mia/pt -br/orgaos/seppi/centrais -de-conteudo/documentos/relatorio -da-
secretaria -especial -do-ppi-congresso -nacional -2021-1.pdf. 
 
PART  II: REGARDING  THE  SECRETARIAT  REPORT  (WT/TPR/S/432)  
III.TRADE POLICIES BY SECTOR   
(1) 3.1 Measures Directly Affecting Import s 
(2) 3.1.4 Other charges affecting imports  WT/TPR/M/432/Add.1  
 
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Page 69 (Para 9)  
3.40. Brazil's internal taxation regime remains overly complex, including in the treatment of 
imported goods and services. Domestic and cross -border transactions are subject to various federal 
and sub -federal levies, including Tax on Industrial Products (IPI), Tax on the Circulation of Goods 
and Services (ICMS), contributions to the social integration programme (PIS) and to finance social 
security (COFINS), and Tax on Services (ISS). The cross -cumulation of these taxes for tax base 
purposes is not uncommon. In addition, their application typically varies depending on the product 
type, the competent sub -federal authority, and the importer's tax regime status.  
3.41. Depending on their nature, certain  transactions (including cross -border ones) may also be 
subject to other charges, such as the Additional Freight Charge for the Renovation of the Merchant 
Navy (AFRMM), the Financial Transactions Tax (IOF), and the Contribution for Intervention in the 
Economic Domain (CIDE) (Section 4).  
3.46. The ICMS is a value added tax levied on imports, intrastate and interstate transactions 
involving merchandise, inter -municipal and interstate transportation services, and communication 
services.50 Taxable merchandise transactions are those involving a change of ownership, as well as 
transfers between a company's affiliates/branches, and importation (including for own use or 
consumption). Being in the competence of Brazil's federative states, the ICMS is gov erned by 
27 distinct regulatory regimes and certain overarching disciplines established at the federal level.  
Question 4:  
In response to inflation, Brazil's government has lowered import taxes and ICMS since2022, thereby 
decreasing the tax revenue of gover nments may push aside other fiscal expenditures. What 
measures does Brazil intend to adopt in order to maintain a high -quality business environment while 
continuing to attract foreign investment?  
Reply:  
A tax reform is on the agenda and is a priority for Brazil.  
  WT/TPR/M/432/Add.1  
 
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  NEW ZEALAND  
REPORT BY THE WTO SECRETARIAT (WT/TPR/S/432)  
WT/TPR/S/432, page 24, paragraph 1.11  
Section 1.2.4.1, paragraph 1.11 states "according to the OECD, Brazil's fragmented tax system, in 
which 27 states plus the Federal Governm ent apply their own tax codes, gives rise to one of the 
world's highest tax compliance costs (…). Although tax reform remains a priority for the 
administration, during the review period no changes were completed in this area".  
Question 1:  
● What has been the  cause for limited progress on tax reform, despite this being a priority for 
the current government? What are Brazil's plans to advance reform in this area, considering 
that the current tax system affects the competitiveness of Brazilian companies?  
Reply:  
There are different bills pending in the national congress that aim to unify and eliminate various 
indirect taxes, in addition to introducing new criteria that are more aligned to the international 
practice, which should greatly reduce the complexit y of our tax system.  
However, the Tax Reform in Brazil depends on political factors and the performance of deputies and 
senators in our National Congress, who represent different economic groups often with antagonistic 
aspirations.  
The Tax Reform will prob ably take place gradually, in several stages, due to its complexity and 
impacts.  
It is expected some progress on the tax reform, or at least on some aspects of it, but we cannot 
predict exactly which ones, nor at what time it will take place.  
 
WT/TPR/S/432 , page 37 paragraph 2.14  
Section 2.2.2, paragraph 2.14 states, "Overall, according to the IDB, Brazil's economic strategy for 
the period 2019 -22 has been structured into four key areas: (i) improve the business climate and 
narrow gaps in infrastructure for  enhanced competitiveness; (ii) promote national and international 
integration to boost productivity; (iii) build a more effective public sector that promotes fiscal 
sustainability; and (iv) reduce social inequality and lack of opportunities by enhancing p ublic policy 
efficiency. The strategy was to address challenges related to gender and diversity, environmental 
sustainability and climate change, and innovation and digital transformation ". 
 
Question 2:  
● Could Brazil explain how efforts to improve public po licy efficiency have aimed to reduce 
social inequality and enable women's participation in international trade?  
Reply:  
There are different bills pending in the national congress that aim to unify and eliminate various 
indirect taxes, in addition to introdu cing new criteria that are more aligned to the international 
practice, which should greatly reduce the complexity of our tax system.  
However, the Tax Reform in Brazil depends on political factors and the performance of deputies and 
senators in our National  Congress, who represent different economic groups often with antagonistic 
aspirations.  
The Tax Reform will probably take place gradually, in several stages, due to its complexity and 
impacts.  
It is expected some progress on the tax reform, or at least on some aspects of it, but we cannot 
predict exactly which ones, nor at what time it will take place.  
WT/TPR/S/432, page 63, paragraph 3.15  
Section 3.1.1, paragraph 3.15 relating to the Time Release Study (TRS) carried out in 2019 notes 
the average time taken  between arrival of a shipment (of all modes of transport)) and exit from 
customs control is 7.4 days.  
Question 3:  
● Could Brazil elaborate on whether the Federal Revenue of Brazil has a policy target to reduce 
transaction processing times and, if so, what those targets are?  
Reply:  
Several initiatives have been conducted by the Special Secretariat of Federal Revenue of Brazil (RFB) 
with the aim of reducing transaction processing times. The main measure refers to the development 
of the national single wi ndow (Portal Único de Comércio Exterior), which aims to simplify and WT/TPR/M/432/Add.1  
 
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modernize customs procedures. Through this system it will be possible to provide more efficient, 
harmonized and integrated processes among all public and private stakeholders.  
In addition , reducing processing time has been on the agenda of the meetings of the Local 
Committees for Trade Facilitation (COLFAC). These committees are coordinated by the RFB and 
include the participation of representatives from the public and private sectors. The  COLFAC activities 
are based on the recommendations that have been established by the TRS.  The purpose of the 
meetings is to identify bottlenecks in customs procedures and to propose measures for improvement, 
aiming to reduce the time and costs of foreign trade operations. In addition, these committees are 
appropriate forums for sharing best practices among Customs and other government agencies.  
 
WT/TPR/S/432, pages 89 and 90, paragraphs 3.125 and 3.129  
Section 3.3.2, paragraph 3.125 states "for 74 regular notifications (11% of all regular notifications 
made), the timeliness of the submission allowed for a comment period of 60 days or more".  
Section 3.3.3, paragraph 3.129 states "approximately 14% of the measures announced in regular 
notifications allowed of  a comment period of at least 60 days, and 11% were based on international 
standards".  
Question 4:  
● Noting that the majority of Brazil's TBT and SPS notifications over the period covered in the 
report did not provide for a comment period of 60 days, what ar e Brazil's procedures for 
ensuring that WTO members are notified and provided with a suitable period to prepare 
comments? Has Brazil considered streamlining its notification process to allow for longer 
comment periods?  
Reply:  
The average time provided for comments has been 55 days. The difference to the 60 days provided 
for in regular notifications is due to the fact that the effective date that the regulation is published 
in Brazil occurs sometimes a few days before the date of the notification at the WTO.  Notifications 
can only be triggered just after the officially published legal processes. Therefore the 60 days for 
comments are provided for in the regulations. In the circumstances that the period is shorter (due 
to the notification process exceptional d elay of a few days) it can usually be extended at the request 
of the interested party.  
 
● Observing that not all SPS measures adopted by Brazil over the period covered by the report 
have been based on internationally recognised standards, would Brazil consid er aligning its 
regulations more with international standards, such as the ones set by CODEX?  
WT/TPR/S/432, page 116, paragraph 4.44  
Section 4.4.4.3, paragraph 4.44 states that "Support for family farming remains an important 
component of agricultural policy. Since 2019 small -scale family agriculture is also under the 
responsibility of MAPA"  
Question 5:  
● New Zealand would welcome more information regarding the family farming support 
programme, specifically what the eligibility criteria programme are, as well the outcomes of 
the programme.  
Reply:  
Brazil makes available to family farmers access to a specific line of rural credit, though the Programa 
Nacional de Fortalecimento da Agricultura Familiar  (PRONAF), to finance individual  or collective 
projects of family farmers and of land reform settlers.  
Its aims are to improve income and quality of life in rural areas; guide and encourage the 
conservation of natural resources; promote sustainable development in rural areas; and dissemi nate 
technologies needed to improve the agricultural economy, through the financing of agricultural and 
non-agricultural activities and services developed in the rural establishment or nearby community 
areas.  
To have access to PRONAF, the farmer needs to r equest the issuance of a "Declaration of Aptitude 
to PRONAF " (DAP) or to request its register in the "National Register of Family Farming " (CAF). To 
be qualified to both DAP or CAF, the farmer needs to meet some requirements. In general, these 
are: (i)  the size of the family property cannot exceed 4 fiscal modules; (ii) the labor force used must 
be predominantly family labor; (iii) the annual gross income must not exceed BRL 500,000; and 
(iv) at least 50% of all income must come from activities developed in  the family property.  WT/TPR/M/432/Add.1  
 
- 263 - 
 
  Once in possession of the DAP/CAF, the family farmer can apply for financing for production or 
investment. In the case of investment, the family can obtain "Technical Assistance and Rural 
Extension " (ATER) to prepare the technical pro ject for which it intends to receive financing.  
For the current Agricultural Plan (Plano Safra), resources for small rural producers were increased 
by 36%. BRL 53.61 billion will be destined for financing through the National Program for the 
Strengthening of Family Farming (Pronaf).  
 
WT/TPR/S/432, pages 119, paragraphs 4.48  
Section 4.1.4.4.3, paragraph 4.48 states "Agricultural zoning requirements continue to link 
agricultural support to environment sustainability".  
Question 6:  
● Apart from agricultural suppo rt in the form of government loans, how is Brazil currently 
incentivising sustainable agricultural practices, and what plans does it have to increase 
incentives in future?  
Reply:  
Brazil has been encouraging the adoption of sustainable production technologi es since 2010, with 
the adoption of the ABC Plan, originally valid for the period 2010 to 2020. For the period 2020 to 
2030 a new ABC Plan was launched in 2021, now called the Sectoral Plan for Adaptation to Climate 
Change and Low Carbon Emission in Agricu lture and Livestock Production (ABC+).  
The ABC+ presents new conceptual bases, which were elaborated from the lessons learned in its 
first decade. In this new phase, the Plan also started to stimulate the adoption and maintenance of 
practices, products, pr ocesses and sustainable production systems (SPSabc), which contribute to 
the mitigation of GHG, namely: Practices for Recovery and Renovation of Degraded Pastures (PRPD); 
Crop-Livestock -Forestry Integration Systems (ILPF); Agroforestry Systems (SAF); Plant ed Forests 
(FP); Bio -inputs (BI); Irrigated Systems (IS); Livestock Waste Management (MRPA).  
To expand the incentives and the adoption of SPSabc, ABC+ has innovated, seeking to expand the 
offer of new sustainable production technologies, such as No-Till Vegetable Growing System (SPDH), 
Irrigated Systems (IS), and Intensive Finishing (IT). It also established an Operative Plan with four 
programs (Program for Access to Credit and Financing; Program to Stimulate the Adoption and 
Maintenance of SPSabc ; Program for Strategic Cooperation; and Program for Valuation and 
Recognition), and five strategies (Technical Assistance and Rural Extension Strategy (ATER), 
Capacity Building and Technology Transfer; Communication and Awareness Raising Strategy; 
Governa nce, Monitoring and Evaluation Strategy; Climate Risk Management and Mitigation 
Intelligence Strategy; and Research, Development and Innovation Strategy).  
 
REPORT BY BRAZIL (WT/TPR/G/432)  
WT/TPR/G/432, page 7, paragraph 2.16  
Section 2.2.2, paragraph 2.16 s tates that "the BCB is fully committed to the sustainability agenda 
and has implemented regulation over the last few years to that end", including "BCB Resolution no. 
140/2021, strengthening the compliance of rural credit with provisions prohibiting credit  to agents 
with illegal social, environmental or climate practices".  
Question 7:  
● Noting that Bank of Brazil Resolution no. 140/2021 was issued one year ago, how is its 
implementation progressing? Is it BCB itself that verifies compliance with social, 
environmental and climate criteria or does it rely on third -party verification?  
Reply:  
BCB itself verifies all the items of Resolution BCB No. 140/2021. It has been implemented as 
described below:  
i. Verification of the borrower 's registration in t he Rural Environmental Registry (CAR) (Res. No.  140, 
item 2) is done automatically at the moment of contracting the operation.  This has been functioning 
since 2017.  
ii. Verification of possible  overlaping of the financed plot with federal preservation unit s (Res.  
No. 140, items 3 and 4) is done for all rural credit operations, but after actually contracting of the 
credit. In case of non -compliance, the financial institution which granted the credit is questioned, 
and the operation subjected to be declassifi ed and informed to other competent authorities (such as 
Ibama, ICMBio, or the Public Prosecutor).  Declassification results in substantial cost increase for the 
borrower.  
iii. Overlap of the financed plot with Indigenous (Res. No.  140, item 5) and 'Quilombo la[1]' lands 
(Res. No. 140 , item 6) are automatically verified at the moment of contracting. If there is an overlap, 
the credit operation is rejected.  WT/TPR/M/432/Add.1  
 
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iv. In the Amazon biome, the property containing the financed plot is verified for the existence of 
embargoes by Ibama or ICMBio (R es. No. 140, item 8 -a). This verification is done after contracting, 
in the normal BCB 's monitoring process. In case of non -compliance, the financial institution which 
granted the credit is questioned, and  the operation subjected to be declassified and inf ormed to 
other competent authorities (such as Ibama, ICMBio, or the Public Prosecutor).  Declassification 
results in substantial cost increase for the borrower.  
v. Deployment of verification of restrictions for the practice of illegal deforestation for rura l credit 
proponents  under the support of the National Land Reform Program (PNRA) (Res. no. 140 item 8 -b) 
is expected to be due by June, 2023.  
vi. Automated verification if the borrower is listed in the register of employers who kept workers in 
conditions a nalogous to slavery  (Res. No. 140, item 9)  is done at the moment of contracting. It has 
been functioning since 2014.  If the borrower is in the list, the credit operation is rejected.  
[1] remaining communities of descendants of enslaved people  
 
WT/TPR/G/432 , page 17, paragraph 3.9  
Section 3.2, paragraph 3.9 states that "Mercosur has been reducing tariff levels since 2017".  
Question 8:  
● In July this year, Mercosur countries agreed on a 10% horizontal reduction of the Common 
External Tariff. Are any further imp ort tariff cuts planned or currently being negotiated?  
Reply:  
The discussions are underway, but it is not possible to anticipate any concrete outcome at this 
moment. As yet, the only reduction in place is the one established by Decision 08/22, which reduced 
the Common External Tariff by 1%, with some exceptions. This  agreement was reached in July 2022, 
during the ordinary meeting of the Mercosur Council held before the 60th Summit of Heads of State 
of Mercosur and Associated States in Asunción, Paraguay.  
 
WT/TPR/G/432, page 19, paragraph 3.27  
Section 3.4.4, paragraph 3.27 states that "during MC12, Brazil announced it would join the 
TESSD  Ministerial Declaration and become a co -sponsor of that plurilateral initiative".  
Question 9:  
● Is there a proposed timeline for Brazil joining and becoming a co -sponsor of the 
TESSD  Ministerial Declaration?  
Reply:  
Brazil is already a member of the TESSD.  
 
● At a TESSD discussion, Brazil presented a proposal on the role of agriculture in promoting 
sustainable development. Would Brazil be interested in joining TESSD structured 
discussions , such as on sustainable supply chains?  
Reply:  
Brazil is an active member ofr the TESSD and has been participating in the debates taking place on 
all 4 working groups at TESSD. Brazil became a co -sponsor of its Ministerial Declaration during MC12.  
 
WT/TPR /G/432, page 41, paragraph 4.107  
Section 4.2.2, paragraph 4.98 states "Brazil also considers bioenergy, including biofuels, an 
indispensable tool for the expansion and diversification of the energy matrix. Nowadays, biomass27 
electricity – generated mostly  from sugarcane processing plants – accounts for about 8% of Brazil's 
total electricity energy supply. By 2031, biomass, wind and solar generation are expected to supply 
22% of the country's electricity energy needs ". 
 
Question 10:  
● Can Brazil offer more information regarding how much of a role the Brazilian government is 
taking when addressing the transition from fossil fuels to biofuels/bioenergy, and how 
successful this transition has been?  
Reply:  
One of the incentives is provided by the Brazilian National Biofuel Policy (RenovaBio) Instituted by 
Law 13.576/2017. The program recognizes the strategic role of biofuels (ethanol, biodiesel, 
biomethane, biokerosene for aviation, and others) in the Brazilian energy matrix concerning its WT/TPR/M/432/Add.1  
 
- 265 - 
 
  contribution to en ergy security, the predictability of the market and the mitigation of greenhouse 
gas emissions (GHG) in the fuel sector.  
The logic behind RenovaBio is to reward the most efficient production in terms of reducing carbon 
emissions. The more the biofuel reduc es carbon intensity when compared to the fossil substitute 
fuel, the more decarbonization credits it earns, generating incentives for more efficient energies for 
environmental sustainability.  
In addition to the Brazilian Biofuels Policy (RenovaBio), other important programs are being worked 
on to encourage the long -term and sustainable production and use of biofuels in the transport matrix.  
The Fuel of the Future Program, established by CNPE Resolution No. 7, of 20  April 2021, is an 
important program design ed to enshrine Brazil's competitive potential and differentials. The intention 
is to increase the use of sustainable low -carbon fuels, encouraging the development of national 
vehicle technology. One of its guidelines is to integrate public policies related  to the Program, like 
Rota 2030, Vehicle Emissions Control Program (Proconve), and Brazilian Vehicle Labeling 
Program  (PBE).  
In short, the Rota 2030 Program, established by Law No. 13,755, on 10 December  2018, is part of 
the strategy aimed at sustainable m obility. The program seeks, through tax incentives, to support 
technological development and innovation in the automotive industry in exchange for the 
development of safer, more economical, and less polluting vehicles. Route 2030 also defines energy 
efficiency targets to be achieved by motor vehicle manufacturers.  
Along the same lines, the Vehicle Emissions Control Program (Proconve), instituted by Conama 
Resolution nº 18, of 6 May  1986, is a program instituted by the National Environment Council 
(Conama) t hat aims to improve the air quality in Brazil through the requirement to manufacture and 
sell vehicles that meet increasingly restrictive emission limits.  
However, the targets set out in Route 2030, for example, do not take into account environmental 
efficiency in terms of mitigating emissions, they only consider the reduction of energy consumption. 
Thus, the creation of targets for the sector that covers the complete life cycle of the product is being 
evaluated.  
Another example is the Brazilian Vehicle La beling Program (PBE), which only assesses exhaust 
emissions (tank to wheel). The challenge here is that this Program considers that electric vehicles 
do not emit carbon, regardless of the source of electricity generation. In this context, one of the 
propos als under development is the integration of RenovaBio with the PBE, thus providing a complete 
life cycle analysis so that the consumer can make the appropriate decision in light of the 
transparency of the real environmental impact caused by his/her choice.  
As can be seen, the Fuel of the Future Program signals the importance of being clear about the 
intended objectives and expected results with energy policies.  
 
WT/TPR/G/432, page 49, paragraph 5.6  
Section 5, paragraph 5.6 states that "it [the country] is r egulating the carbon market, and innovating 
in creating a methane market".  
Question 11:  
● Could Brazil share more details about its carbon and methane markets, the sectors they will 
cover and how the markets will contribute to emissions reduction?  
● Will the methane market that Brazil is creating apply to biogenic methane from agricultural 
emissions?  
Reply:  
Since 2009, the Brazilian government has had a specific industrial policy targeted to sectors with 
high emissions of GHG, such as Steelmaking an d Cement.  
"The sectoral plan for the transition to a low carbon economy in Brazil" mandated by the national 
climate law (Law No. 12.187, of 2009), united government agencies and private sector 
representatives with the goal of carbon efficiency of industria l processes, pioneered studies about 
the carbon intensity of the industry, created financial incentives and supported the dissemination of 
low carbon technology.  
The Ministries of industry, Environment, and Science and Technology, with financial support fr om 
GEF, implemented a project for Sustainable Steelmaking and promoted the development and 
dissemination of sustainable charcoal as an alternative to coal in the sector.  
With the support of the International Energy Agency (IEA), the Cement sector elaborate d a roadmap 
to the adoption of Low Carbon technology in the Brazilian industry. Now, the industry is updating 
this plan toward carbon neutrality.  
Brazil was part of the Partnership for Market Readiness (PMR) and did foundational work for the 
implementation  of economic instruments for carbon pricing. Congress is discussing a new law to WT/TPR/M/432/Add.1  
 
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create a national emissions trading scheme to help the economy achieve the goal of carbon 
neutrality.  
Currently, Brazil is in the process of implementing a regulated carbon ma rket, which will allow the 
negotiation of carbon credits and methane (carbon equivalent) credits. On 19  May 2022, as a first 
step of this process, Decree No. 11,075 was published, establishing the National System for the 
Reduction of Greenhouse Gas Emissio ns (Sinare). The regulation of this System is being elaborated 
by technicians from the Ministry of Economy and the Ministry of the Environment in thematic working 
groups, which will define in the future which sectors will be covered. The goal of implementi ng a 
regulated carbon market in Brazil is to help the country meet its climate objectives, enabling the 
transition to a low -carbon economy.  
  WT/TPR/M/432/Add.1  
 
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  SWITZERLAND  
Report by the Secretariat (WT/TPR/S/432)  
 
3. TRADE POLICIES AND PRACTICES BY MEASURES  
3.1.3.1 Applied MFN tariff  
Para.3.25 and Chart 3.1 (page 65) : According to paragraph 3.25 "a number of distinct MFN tariff 
rates increased from 19 in 2017 to 35 in April 2022". In addition, "the simple average rate for 
dutiable lines increased from 12.6% in 2017 to 14% in April 2022".  
QUESTION 1  
● Could Brazil provide  the reasons of this increase?  
 
Reply:  
Brazil reduced tariff rates regarding 87% of tariff codes raising the quantity of MFN tariff levels in 
force since then. Concerning the simple average rate increase for dutiable tariff lines, it is the 
statistical eff ect of cuttings from 2% to 0% to all tariff lines previously charged in this tariff level 
(2,123 tariff lines).  
 
● Could Brazil provide more details regarding the dutiable tariff lines where the rate is between 
>10% and 15%?  
 
Reply:  
This range of tariff levels covers fundamentally capital goods,  informatics and telecommunications 
equipment, consumer goods and their parts.  
 
Para.3.26 (page 66) : Paragraph 3.26 states that Brazil temporarily (until 31  December  2022) 
reduced to zero the import duties o n most tariff lines carrying a 2% rate and lowered by 10% the 
rates applied on most other dutiable lines.  
QUESTION 2  
● Could Brazil explain the relation between this temporary decrease in dutiable lines and the 
increase reported in paragraph 3.25?  
● Will the t emporary duty reduction be extended after 31 December 2022?  
● Which are the lessons learned from this temporary duty reduction/elimination?  
 
Reply:  
The simple average rate increase for dutiable tariff lines is the statistical effect of cuttings from 2% 
to 0%  to all tariff lines previously charged in this tariff level (2,123 tariff lines), without any tariff 
elevation in practice.  
 
Permanent changes on Common External Tariff are negotiated within Mercosur scope, following 
disciplines and Block regulations.  
 
3.1.3.2 Bindings  
Para 3.35 (page 68) : Paragraph 3.35 indicates that "applied rates on 90 tariff lines exceeded, 
sometime partially, Brazil's binding and that in all such cases importers may request application of 
the bound rate".  
QUESTION 3  
● For which reason does Brazil not amend its applied MFN duties?  
● Which mechanisms are in place to guarantee that importers are aware of the tariff 
differences and have the possibility to request the application of the lower bound rate?  
● Do importers have the possibilit y to request the refund of the difference between the higher 
applied rate and the lower bound rate?  
 
Reply:  
The reported situation is related to goods whose tariff levels in the Common External Tariff of 
Mercosur (CET) are higher than the levels consolidat ed by Brazil in the WTO. In all cases it is 
guaranteed to importers requesting the application of bound rates in imports from WTO Members.  
 
It is important to emphasize that after the publication of Gecex Resolution 391, 23  August  2022, 
cases subject to su ch a hypothesis were substantially reduced, considering that WTO bound level 
was incorporated as the general tariff applicable to such tariff lines.  
  WT/TPR/M/432/Add.1  
 
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Moreover, the Brazilian government informs that it is finishing the work to grant similar treatment 
to a small remaining subset of goods whose tariffs were consolidated as "Ex", without direct 
correspondence by tariff line aggregation.  
 
3.1.4 Other charges affecting imports  
Para 3.40 and 3.42 (page 69):  According to paragraphs 3.40 and 3.42, Brazil's internal taxation 
regime remains overly complex, including the treatment of imported goods and services, i.e various 
federal and sub -federal levies, different procedures and systems for their collection.  
QUESTION 4  
● When will the DUIMP (single import declaration) be fully implemented?  
Reply:  
It is expected to be concluded by the end of 2024. The Management Committee (Comissão 
Gestora) of Siscomex will deliberate the issue in its last meeting of 2022.   
● Which ot her reforms has Brazil undertaken to alleviate the administrative burden for traders?  
 
Reply:  
Since 2019, there has been a significant reduction in the number of licen ces required by SECEX. This 
decrease resulted from the exclusion of treatment for some operations, such as: products subject 
to trade remedies; products subject to non -preferential origin control and statistical monitoring.  
Brazil's National Trade Facilitation Committee Work promoted a review of fees and other charges 
levied on foreign trade operations. The results will be available on the SISCOMEX website.  
Also, the changes in processes and in the technology promoted in the current import process/system 
within the scope of the Brazilian Single Window Program have already made it  possible to distribute 
tasks among specialized virtual teams, to obtain advance cargo clearance for AEO and to achieve 
paperless trade.  
 
Para 3.49 (page 71):  According to paragraph 3.49 the contributions to the social integration 
programme (PIS) and to fi nance social security (COFINS) seem to be higher for certain imported 
goods (i.e. pharmaceuticals, cosmetics, machinery and vehicles, new rubber tyres and air chambers, 
and vehicle parts).  
QUESTION 5  
● Could Brazil provide the rationale for this difference of treatment that is not in line with the 
National treatment principle?  
 
Reply:  
Law 12.546/2011 created the "Contribuição Previdenciária sobre a Receita Bruta " ("Social Security 
Contribution on Gross Revenue ") for certain sectors of the Brazilian economy. There was a 
substitution of a direct tax on payrolls to an indirect tax on turnover. Therefore, goods produced by 
these companies had an additional tax, which needed to be also applied to like imported goods as a 
border tax adjustment. Brazil, therefore, r aised the rates of PIS/COFINS -imports to match the new 
indirect tax on these products. It is in line with the National Treatment principle as a BTA.  
 
● For which reason do these different contributions rates only affect certain goods?  
 
Reply:  
They only apply to products whose domestic equivalents are taxed by the "Contribuição 
Previdenciária sobre a Receita Bruta " ("Social Security Contribution on Gross Revenue "), in order to 
equalize tax rates.  
 
● What and when will Brazil remedy this situation?  
 
Reply:  
There is nothing to remedy, as the rates are equivalent.  
 
 
3.2.3 Export prohibitions, restrictions, and licensing  
Para 3.71 (page 77) : Paragraph 3.71 states that a new system for export licensing was implemented 
in 2018 and is being gradually rolled out for import licensing as well.  
QUESTION 6  
● Could Brazil indicate when the new system will be fully rolled rolled out  for import licensing?  
 WT/TPR/M/432/Add.1  
 
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  Reply:  
In the international view, it is still very common to see the import customs declaration s ystem as a 
separate system from the import licensing system. But the Siscomex Single Portal is a single system 
with several modules, so the Duimp (customs declaration system) and LPCO (licen ce system) are in 
the same scope of deliveries. So the answer is t he same as 3.1.4.  
 
● Which changes/improvements will come into effect?  
 
Reply:  
The New Import Process has the potential to further reduce the goods release time after full 
implementation of the Brazilian Single Window. Among the improvements are:  
- Coordinat ed goods inspection between Customs and Other Government Agenciess;  
- Improvement of licen ce issue time of OGAs through risk management;  
- Improved trade logistics due to advance clearance of all cargos instead of AEO 's cargos only;  
- Issue of Import licences for multiple shipments;  
- Foreign trade taxes and duties with deferred payments.  
 
3.3.4.1 Competition policy  
Para 3.140 (page 92) : In the Secretariat's report it is stated in para. 3.140 that one of the 2019 
OECD's reform recommendations is to "boost international cooperation through provisions on 
investigative assistance and exchange of confidential information (without investigate d parties' 
consent) with enforcers in overseas jurisdictions". In the Brazil's report (para. 4.47), different cases 
investigated with other antitrust authorities in the year 2021 are mentioned.  
QUESTION 7  
● Could Brazil's authorities exchange confidential i nformation within these cases with foreign 
jurisdictions? If not, do Brazil intend to develop in international agreements the possibility 
to exchange confidential information?  
 
Reply:  
CADE can only exchange information subject to restricted access if the r espective parties grant a 
waiver of confidentiality. According to Memorandum of Understanding between the Competition 
Authorities of BRICS members, Article 6.1: "A Party will not be required to communicate information 
to any of the other Parties if the com munication of such information is prohibited by the domestic 
law of the Party possessing the information or if such communication would be incompatible with 
the interests of that Party ".9 
Even if the parties grant the Waiver, the information exchange usua lly occurs maintaining the 
restriction level. That is, the information exchange occurs, but the other Competition Authority 
cannot disclose the information, which must be kept restricted and out of reach from the external 
public.  
 
3.3.6 Government Procurem ent  
Para 3.154 (page 95):  Paragraph 3.154 provides information regarding Brazil's GPA accession 
process. Switzerland supports Brazil's willingness to accede to the GPA 2012 and appreciates Brazil's 
firm engagement in this accession process.  
QUESTION 8  
● How does Brazil intend to ensure that the results achieved so far can lead to a positive 
outcome in the future? What are the perspectives to overcome the remaining outstanding 
issues in this process?  
 
Reply:  
Brazil acknowledges Switzerland`s support to Brazil`s accession to the GPA 2012. Having submitted 
its final offer on 14 June 2022, Brazil is still under internal consultations regarding the content of 
the communication referenced in Notes 4 and 5 to Annex 3 of the final offer. Brazil will soon reply 
and circulate the remaining questions concerning clarifications and comments on the final offer and 
hopes to continue the productive engagement to advance and conclude its accession.  
 
 
9 CONSELHO ADMINISTRATIVO DE DEFESA ECONÔMICA (Cade).  Memorandum of Understanding 
between the Competition Authorities of BRICS me mbers. Available at: https://cdn.cade.gov.br/Portal/acesso -
a-informacao/convenios -e-transfere ncias/acordos -internacionais/MOU%20BRICS%20 -
%20Assinado%20%28002%29.pdf . Access: 12/11/2022.  WT/TPR/M/432/Add.1  
 
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Para 3.165 - 3.171 (pages 97 -98): Paragraphs 3.165 -3.171 describe the dif ferent possibilities (such 
as margin of preference, set -aside and quota for SMEs, offsets) foreseen in the new law on 
government procurement to provide Brazilian goods, services, and suppliers a more favourable 
treatment than that accorded to foreign goods , services, and suppliers.  
 
QUESTION 9  
● How Brazil intends to reconcile these measures with the non -discrimination and national 
treatment commitment that would become enforceable with Brazil's accession to the GPA?  
 
Reply:  
The possibility for the Executive to set out price preferences is still available pursuant Article 26 of 
Law 14,113/21. The permission of such policy in the new Law was a decision of the Brazilian 
Congress. However, for the margin of preference referred to in art. 26, I, to be ap plicable, the 
provision needs to be further regulated by means of a justified decision of the Executive. There is 
no existing decree implementing those margins. In addition, there are no plans in the medium term 
to regulate this provision by the Federal Go vernment. In this sense, there are no margins of 
preference in force for nationally manufactured goods and services that meet Brazilian technical 
standards.  
If Brazil accedes to the GPA, the Agreement will enter into Brazil 's legal framework as a special 
norm, prevailing over the general laws in force that have the same coverage. Therefore, the GPA 
will prevail over any conflicting rules even if there are no explicit amendments. The non -application 
of the rules of preference, set -aside and quotas and offset s depends on terms of the agreement. 
Potential more favorable treatment will not be applied in a manner that is inconsistent with the GPA 
provisions and commitments for covered procurement.  
 
4 TRADE POLICIES BY SECTOR  
4.1.4.1 Agricultural/rural credit  
Para 4.38 (page 115) : According to the Secretariat report, refocusing supports paid for on -farm 
investments that explicitly "incorporate technological innovations and advanced farm management 
and environmental practices" could be considered.  
QUESTION 10  
● Are there any plans to refocus the support provided for on -farm investments in this regard?  
● If not, could Brazil please convey its reasoning for it?  
 
Reply:  
Brazil considers that available credit lines to on -farm investments already provide the necessary 
focus on the aforementi oned targets.  
 
For instance, Brazil has established specific investment programs, such as the ABC Program, whose 
targets were recently reinforced in accordance with the ABC+ Plan to include measures related to 
climate change adaptation as targets, and the Inovagro program, aimed at supporting farm 
technological innovation.  
 
Furthermore, some of the Pronaf subprograms, namely the Bioeconomy, the Semi -arid, and the 
Forestry and Agroecology, are also aligned with ABC program and ABC+ Plan.  
 
Table 4.4 (page 110) : The Plan ABC is the main public program to finance low -carbon agri culture in 
Brazil and supports projects to reduce greenhouse gas emissions.  
QUESTION 11  
● Could Brazil please provide further information on the requirements to receive payments 
under this program?  
 
Reply:  
The ABC+ Plan, in reality, provides environmental policy guidelines and targets that inform Brazil 's 
voluntary commitments of reducing the greenhouse effects under international agreements.  
The ABC Program is the credit line to finance low -carbon agriculture and projects to reduce 
greenhouse  gas emissions in Brazil.  WT/TPR/M/432/Add.1  
 
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  The ABC Program finances projects that are aligned with the ABC+ Plan, such as the recovery of 
degraded areas and pastures; the implementation of crop -livestock -forest integration systems; and 
the adoption of conservationist pract ices for the use, management and protection of natural 
resources.  
● With a focus on beef production and deforestation, how does the program help to mitigate 
and adapt to climate change?  
 
Reply:  
First, as mentioned before, the ABC Program helps to mitigate and adapt to climate change through 
the financing of practices such as integrated production of crop, livestock and forestry and the 
recovery of degraded areas. It brings no incentive to deforestation, quite the opposite.  
 
On this theme, Brazil suggests the following report recently published by IICA: "Sustainable 
Livestock: a bastion against climate change and in favor of the preservation of ecosystems in Latin 
America " (https://cop27.iica.int/libro -hitos/ ). 
● What is the participation rate in the Plan ABC?  
 
Reply:  
Brazil 's most recent agricultural plan has allocated BRL 6.19 billion for financing under the ABC 
Program.  
4.1.4.1 Agricultural/rural credit and 4.1.4.2 Minimum price guarantees  
These two pillars of Brazilian domestic support for the agricultural sector (credits and minimum price 
guarantees) focus strongly on keeping up agricultural production.  
QUESTION 12  
● With a view to environmental challenges, how does Brazil ensure that the production which 
is supported by the government, contributes to more environmental sustainability of the 
sector?  
 
Reply:  
First of all, it should be noted that Brazil has possibly the strictest legislation in the world regarding 
land use for agricultural purposes in its Forest Code.  
For instance, every rural property must preserve, without financial compensation by the 
government, a percentage of its area with native vegeta tion cover, an area denominated "Legal 
Reserve ". This is an area located within a property or rural possession, with the function of ensuring 
the sustainable economic use of the natural resources of the rural property, assisting in the 
conservation and reh abilitation of ecological processes and promoting the conservation of 
biodiversity, as well as the shelter and protection of wild fauna and native flora. Its minimum size 
depends on its location: 80% of the total area for properties located in Legal Amazon  region; 35% 
for properties located in the Cerrado region; 20% for properties located in the other regions.  
Access to public funds must also observe the ZARC (see question 13).  
4.1.4.4.3 Zoning, land, and other requirements  
Para 4.48 (page 119) : According to the Secretariat report, "agricultural zoning requirements 
continue to link agricultural support to environmental sustainability. They condition producers' 
eligibility for concessional credit and subsidized insurance programmes. Compliance with zoning 
applies to all concessional credit and all insurance premium subsidies for any product covered by 
the zoning".  WT/TPR/M/432/Add.1  
 
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QUESTION 13  
● Could Brazil please provide any details on the agricultural zoning requirements and how they 
are related to agricultural support and e nvironmental sustainability?  
● Which products are covered by the zoning?  
● Is there a link between the products covered by the zoning and deforestation?  
 
Reply:  
The Agricultural Climate Risk Zoning (ZARC) is an agrometeorological study that delimits production 
regions and planting seasons according to their probabilities of yield loss due to adverse 
meteorological events. In other words, Zarc indicates "what to gr ow", "where to grow " and "when 
to grow " with greater chances of success. This allows farmers or other agribusiness actors to plan 
their activities and avoid excessive climate risk.  
ZARC is developed by Embrapa and is officially published by the Brazilian Federal Government. More 
than 60 production systems and 40 crops are evaluated, including annual and perennial crops. ZARC 
results must be compulsorily followed by the producer in order to access agricultural policy programs 
such as "PSR" and "Proagro ".  
The PSR is the private rural insurance subsidy program. Proagro is a protection mechanism for 
farmers that guarantees debt coverage from rural credit operation in the event of yield loss due to 
adverse weather events.  
There is no direct relationship betwee n agricultural zoning and deforestation. Nonetheless, PSR and 
Proagro can only be accessed by producers that comply with current environmental legislation and 
the Brazilian Forest Code.  
 
4.3.2 Policy and institutions  
Para 4.122 (page 137) : Among the structural reforms still needed to continue to improve the 
international competitiveness of Brazilian manufacturing, the OECD pointed out, in paragraph 4.122, 
to the reform of the tax system, including by consolidating consumption taxes into one value -added 
tax, the implementation of one -stop shops for business operations or the reduction of tariffs and 
non-tariff barriers in selected sectors with low competition or where local production is non -existent 
or stagnant for several years, among others.  
QUESTION  14 
● Have the Brazilian authorities already considered the implementation of some or all of them?  
 
Reply:  
There are tax reform proposals under discussion in our national congress to reduce our corporate 
income tax (from 34% to 27% or 26%) and to address the complexity of our indirect taxes by 
consolidating several value -added taxes into a single VAT.  
 
4.3.3 Border measures  
Para 4.124 (page 138):  According to paragraph 4.124, "the number of manufactured products 
subject to non -automatic import lic ensing where quotas, policies, and other requirements are 
imposed continues to be high and unclear".  
QUESTION 15  
● Which reforms do Brazilian authorities consider to bring more transparency and legal security 
to the non -automatic import licensing requirement s? 
Reply:  
Procedures for compliance with notification obligations related to the WTO  Agreement  on Import 
Licensing Procedures and the Decision on Quantitative Restrictions, were reviewed with the support 
of the Executive Secretariat of CONFAC and the assis tance of consenting bodies. Updated 
notifications should be submitted by the end of 2022. In addition, information on licensing 
requirements and quantitative restrictions are available in Portuguese on the SISCOMEX website  
 
4.3.5 Automotive sector  
Para 4. 131, 4.135 and 4.137 (pages 140 and 141)  
Paragraph 4.131  underscores that cars are relatively expensive in Brazil due to high taxation, weak 
competition and border protection.  
QUESTION 16  
● Could Brazil provide details on the reforms it will introduce to boost the competitiveness of 
this important sector?  
 
Reply:  
The direction of the automotive policy turns to mobility and sustainable logistics, with:  WT/TPR/M/432/Add.1  
 
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  • definition of vehicular energy efficiency targets from the tank to the wheel and the well t o the 
wheel, as well as recyclability, in addition to recording the stock inventory of the manufacturing units 
of automakers installed in Brazil and green taxation;  
• follow -up of the stock inventory of the current fleet and the regulation of the green sea l, which 
initiates a trajectory of monitoring the emissions of vehicles that were sold in the past;  
• support for the development, production and adoption of new green propulsion technologies 
will enable the global technological alignment of the automotive  industry installed in Brazil.  
• encouraging consumers to use biofuels through information mechanisms.  
 
According to paragraph 4.135  import tariffs levied on 12 auto parts products without national 
production were reduced from 16% to 2%.  
QUESTION 17  
● Could Brazil explain the reason why the import tariffs for these 12 products have not been 
fully eliminated from 1 January 2022?  
● Could Brazil already evaluation the impact of the measure?  
● Will other auto part products also benefit from a similar measure wh ere the local production 
has been stagnant for several years?  
 
Reply:  
Tariff reductions on auto  parts without equivalent domestic production are regulated by Gecex 
Resolution 368, 20 July 2022.  
 
The list of auto parts tariff reduction is available in Gecex  Resolution 284, 21 December 2021 and it 
is being updated regularly.  
 
Paragraph 4.137  states that the Non -Produced Auto Parts Regime, which allows the importation of 
auto parts without domestically produced equivalent, grants import tariff exemption.  
QUESTION 18  
● Does this regime only apply in the case of the 2008 "Agreement on the Common A utomotive 
Policy between Argentina and Brazil"?  
● If not, which are the requirements to benefit from the import tariff exemption?  
 
Reply:  
The Non -Produced Auto Parts Regime stems from the 2008 "Agreement on the Common Automotive 
Policy between Argentina and Brazil ". This Agreement originates from the 38th Additional Protocol to 
the Economic Complementation Agreement No. 14 (ACE -14) between Brazil and Argentina and was 
modified by the 40th, 41st, 42nd and 44th Additional Protocols do ACE -14. The requirements to benefit 
from this regime are available on:  
https://www.gov.br/pt -br/servicos/obter -reducao -em-tarifas-de-importacao -de-autopecas . 
 
4.3.6 Information technology  
Para 4.143 (page 142):  According to paragraph 4.143, "the IT industry benefits from tariffs ranging 
from zero to 12.8%". In the today's world, digitalization is accelerating. Studies have shown that 
the participation in the ITA reduces costs, which leads to increased use of ICT goods because they 
are more affordable and of higher -quality for enterprises and households. In addition, other sectors 
have benefit ed from increased productivity an d economic growth due to an easier access and use of 
ICT products.  
QUESTION 19  
● As Brazil applies zero duty on certain IT products and has reduced its tariff on most tariff 
lines by 20%, could Brazil provide details on the future steps in will undertake tow ards 
increased liberalization in the IT sector?  
 
Reply:  
Permanent  changes on Common External Tariff are negotiated within Mercosur scope, following 
disciplines and Block regulations.  
 
Procedures related to tariff changes in Brazil are provided for in GECEX  Resolution 207, 28  May 2021.  
 WT/TPR/M/432/Add.1  
 
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Report by the Government (WT/TPR/G/432)  
 
2.3 Social policies  
Para 2.71 (page 15) : Switzerland welcomes very much Brazil's move forward in social development 
by fighting forced labour and child labour. That authorities rescued  6'426 people form forced labour 
and removed 8'194 children from work between 2017 and 2020 reflect an important step in the right 
direction. The numbers are however alarming.  
QUESTION 20  
● How does Brazil ensure that forced labour and child labour will not integrated into global 
value chains?  
 
Reply:  
Brazil has a well -developed regulatory framework with regard to the eradication of child labor and 
the protection of adolescent workers. Such regulations enshrine four basic fundamental rights:  
a) The right not to work for children and adolescents under the age of 16 years;  
b) The right to protected work for adolescents aged 16 and 17;  
c) The right to job training for adolescents, from the age o f 14 years;  
d) The guarantee of labor rights.  
The Federal Constitution is the foundation of the current legal framework, through the provisions 
laid down in article 7, item XXXIII, which states the following:  
"prohibition of night, dangerous, or unhealthy work for those under eighteen years of age, and 
of any work for those under sixteen years of age, except as an apprentice, for those above 
fourteen years of age; " 
Another important provision is article 227, which confirms the principle of integra l protection of 
children and adolescents in Brazil, under the following terms:  
Article 227. It is the duty of the family, society, and the State to ensure children, adolescents, 
and young people, with absolute priority, the right to life, health, nourishm ent, education, 
leisure, professional training, culture, dignity, respect, freedom, and family and community life, 
as well as to guard them from all forms of negligence, discrimination, exploitation, violence, 
cruelty, and oppression. (...)  
Internationally , in addition to the 1989 Convention on the Rights of the Child, Brazil is a signatory 
to International Labor Organization Conventions n. 138, on the minimum age for work, and 182, on 
the worst forms of child labor.  
With regard to the minimum age for work  in Brazil, it is worth noting that the country complies with 
the provisions of ILO Recommendation n. 146, which establishes, in its article 7(1), that "Members 
should take as their objective the progressive raising to 16 years of the minimum age for admis sion 
to employment or work (...) ". 
Regarding the worst forms of child labor, in compliance with the provisions of Articles 3(d) and 4, 
of ILO Convention n. 182, Brazil maintains a list (Decree n. 6,481/2008) of 89 jobs considered 
harmful to health and safe ty and 4 jobs harmful to morality, and therefore banned for those under 
the age of 18 years.  
At the infraconstitucional level, the following norms related to the protection of children and 
adolescents are relevant:  
a) Child and Adolescent Statute - which enshrines, in its set of provisions, the Doctrine of 
Integral Protection; and the  
b) Consolidation of Labor Laws - which contains a set of norms (article 402 to 411) aimed at 
protecting children and adolescents in the workplace.  
Finally, Decree n. 9,579/ 2018 consolidates normative acts enacted by the federal executive branch 
that deal with infants, children and adolescents and apprentices, as well as with the National Council 
for the Rights of Children and Adolescents, the National Fund for Children and A dolescents, and 
federal programs for children and adolescents, and other provisions.  
The mentioned norms include, among other provisions, the standards for the institution of 
apprenticeship, which enshrine the right to professional qualification for the ad olescent, starting 
from the age of 14 years.  
The apprenticeship aims to ensure the apprentice, enrolled in an apprenticeship program, methodical 
technical and professional training compatible with his or her physical, moral and psychological 
development.  WT/TPR/M/432/Add.1  
 
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  In addition to the comprehensive legal framework that Brazil has enacted to prevent and fight 
against child labour, the country has also developed and put in place a variety of policies, programs 
and institutional mechanisms, which contribute to that end.  
To that effect, the National Commission for the Eradication of Child Labor (CONAETI), established 
through Decree n. 10574/2020 is in charge of monitoring and following up on the implementation 
of the National Policy for the Prevention and Eradication of Ch ild Labor. CONAETI 's mandates also 
include (i) to elaborate a Working Plan for the Prevention and Eradication of Child Labor and the 
Protection of Adolescents; (ii) to assess the compliance between ILO Conventions nº 138 and 
No. 182 and the national legisl ation, in order to propose the necessary legislative adaptations; (iii)  to 
elaborate a List of the Worst Forms of Child Labour (List TIP); and (iv) to propose monitoring 
mechanisms for implementation of the Convention nº 182.  
The Labor Inspectors ' competen ce to inspect child labor is based mainly on the 1988 Federal 
Constitution, the Regulation of Work Inspection (Decree n. 4552/2002), and the Convention No. 81 
of ILO, about labor inspection. There is a specific unit in each federate unit to conduct the act ions of 
combating child labor.  
During the Covid -19 pandemic, according to guidelines issued to the inspection activities, inspections 
involving relevant evidence of child labor were considered urgent.  
Regarding data, Brazil relies on an important database for establishing and planning actions and 
policies to combat child labor. It comprises data made available by the Brazilian Institute for 
Geography and Statistics - IBGE, specially, gathered from the demographic Census, the Rural Census 
and the National Ho usehold Sample Survey (PNAD).  
According to the IBGE data, in 1992 Brazil had little more than 8,4 million children and adolescents 
in child labor situation. Today, according to the last data from PNAD 2019, there are fewer than 
1,8 million children and ado lescents with ages from 5 to 17 in situations regarded as child labor, 
which correspond to 4.6% of the total population of this age group.  
Within the total of children and adolescents in child labor situation, 819 thousand are not old enough 
to be working.  The remainder, 950 thousand, are adolescents legally of working age, but considered 
to be performing prohibited activities, or in prohibited conditions, as stated in the current legislation, 
including informal work (not registered in the Work and Social S ecurity Card). Comparing the 
IBGE data from 2016 and 2019, a decline is observed, in absolute numbers, of 357 thousand children 
and adolescents in child labor situation.  
Brazil applies a comprehensive approach in preventing and confronting forced and slave  like labor, 
aimed not only at combating those who recruit and traffic workers and exploit labour in conditions 
analogous to slavery, but also at dealing with the multiple causes that expose people and groups in 
vulnerable situations to a greater risk of v ictimization.  
The creation of special mobile inspection groups dates back to 1995. The inspections groups are 
made up of labor auditors, labor attorneys, federal police and federal road police, which can be 
dispatched throughout the country to apply "in lo co" measures to rescue workers, ensure payment 
of reparations, impose fines, include workers in social programs that prevent their re -victimization 
and preserve the necessary conditions for future criminal and civil accountability of perpetrators. 
Accordin g to estimates published by the Ministry of Labor and Social Security, in 2021, more 
than 55,000 workers have been rescued and assisted by the special groups over the course of 
26 years of operation.  
In 2003, the 1st National Plan for the Eradication of Sl ave Labor was launched, together with the 
establishment of the National Commission for the Eradication of Slave Labor (CONATRAE). 
CONATRAE is integrated by representatives from different public bodies and branches of power, in 
addition to third sector orga nizations. Its main role is to coordinate and evaluate the implementation 
of actions provided for in that National Plan.  
Another important measure to combat slave labor was the creation of a register of employers who 
have subjected workers to conditions an alogous to slavery, also known as the "dirty list of slave 
labor". The register has been used since 2003 as a parameter to evaluate the behavior of companies 
in terms of social responsibility, serving as an indicator for the Brazilian government not to fin ance, 
through banks or with public resources, employers who have been judged administratively 
responsible for the exploration of labour in conditions analogous to slavery. The register of employers 
also began to be used, progressively, by companies concern ed with decent work in their value chains 
and in their commercial transactions.  
Law No. 10803, also adopted in 2003, amends Article 149 of the Penal Code, typifying forced labor 
or labor under conditions analogous to slavery more broadly than the applicabl e international 
definition, by including, among the elements of that crime, the submission of an individual to 
exhausting hours and degrading working conditions, as well as debt slavery.  
In June 2014, Constitutional amendment nº 81 was approved, to alter A rticle 243 of the Federal 
Constitution, in order to include rural and urban properties where exploitation of labor under WT/TPR/M/432/Add.1  
 
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conditions analogous to slavery occurs, as possible object of expropriation and for agrarian reform 
and programs of popular housing, wi thout any compensation to the owner and without prejudice to 
other sanctions provided for by law.  
In 2017, the Federative Pact for the Eradication of Slave Labor was instituted. The pact involves the 
union, the states and the municipalities in the impleme ntation of measures at the level subnational 
for the prevention and fight against work in conditions analogous to slavery and provides, among 
other actions, the creation of commissions and the elaboration of state plans to confront slave labor.  
Apart from the abovementioned measures to fight forced labor, on 6 October  2021, 
Ordinance  No. 3,484 established the National Procedures to Support Victims of Forced Labor in Brazil 
This document focuses on the provision of care to victims, through an integrated appr oach.  
The Brazilian government has remained committed to promoting measures for the prevention and 
confrontation of forms contemporary views of slavery, both within  
domestically as well as internationally. It is worth recalling that Brazil has shared its e xperiences in 
the prevention of and fight against forced labor through many trilateral and south -south cooperation 
projects, promoted in partnership with the ILO.  
 
4.2.4 Renewable energy  
Para 4.105 -4.108  highlight Brazil's situation and efforts towards ren ewable energy. Switzerland 
considers this important with a view to achieve sustainable economic growth.  
QUESTION 21  
● How does Brazil ensure that the expansion and diversification of the energy matrix goes 
hand in hand with environmental sustainability and protection of indigenous minorities for 
future economic development?  
Reply:  
The environmental aspect is considered since the initial stages of energy planning, in planning 
studies. The studies vary according to the nature of the object; in general, they seek to avoid or 
reduce interference in sensitive areas or that are protected from the socio -environmental point of 
view.  
An environmental licen ce is also required for potentially polluting activities or undertakings. In this 
context, environmental li censing is an administrative procedure through which the competent 
environmental agency, upon request from the entrepreneur or institution responsible for the activity, 
licences/authorizes the location, installation, expansion and operation of activities or enterprises that 
use environmental resources considered effectively or potentially polluting, or those that, in any 
way, may cause environmental degradation, which must be predicted, corrected, monitored, 
mitigated and, when necessary, compen sated.  
 
The main guidelines for carrying out the environmental licensing process, in general terms, are 
expressed in the National Environmental Policy, in the Resolutions of the National Environmental 
Council and in legal provisions applicable to the subje ct. 
The participation of society, through public hearings, is foreseen in the environmental licensing 
process, with the goal of guaranteeing the disclosure of information about the projects, in particular 
regarding i) possible risks to the environmental qu ality of the areas of influence of the projects; and 
ii) possible mitigating and environmental control measures designed to reduce these effects. The 
public hearings are also a means to understand the expectations and concerns of the affected 
populations a nd allow the licensing body to gather the manifestations and interests of different social 
groups.  
The indigenous issue, within the scope of environmental licensing, is handled by FUNAI, which has 
the institutional mission of protecting and promoting the r ights of indigenous peoples, as well as 
promoting consultation with indigenous communities.  
  WT/TPR/M/432/Add.1  
 
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  URUGUAY  
In view of the 8th TPR of Brazil, Uruguay wishes to submit 2 questions.  
Please, find below the questions in Spanish:  
 
1.  
"En el punto 4.75 del Informe de  Gobierno, se hace referencia al Decreto No. 10.411/2020 que 
regula la evaluación del impacto de la reglamentación. Tendiendo en cuenta que Brasil es signatario 
del paquete de recomendaciones y declaraciones sobre MIPYMES (INF/MSME/4), ¿podría Brasil 
detallar como ha implementado el anexo 4 (recomendación sobre promoción de la inclusión de las 
MIPYMES en el desarrollo regulatorio); y en particular cómo incluye a las MIPYMES en el desarrollo 
regulatorio?  
 
Reply:  
On 24  October 2022, the Brazilian federal gove rnment published Decree No. 11.243, which provides 
for the measures to be adopted to promote good regulatory practices in the Federal Executive 
Branch. The Decree regulates the Agreement between the Government of Brazil and the Government 
of the United  States of America related to Trade and Transparency Rules, signed in Brasília and 
Washington (D.C.), in October 2020. The regulation enables the application of the Annex of the 
agreement on Good Regulatory Practices, imposing several rules for the enactment o f normative 
acts inferior to the decree. This Decree amends Decree 10.411 in some important points. Among 
the new rules adopted, the inclusion of specific disciplines for MSMEs stand out. According to the 
revised Decree, the edition, amendment or revocatio n of normative acts of general interest to 
economic agents will be preceded by an RIA. The RIA will be concluded through a report containing 
the impacts on micro and small businesses. The content of the RIA report must be detailed and 
complemented with add itional elements specific to the specific case, according to its degree of 
complexity, scope and repercussion of the matter under analysis. The RIA report will include an 
analysis of the impacts on micro and small businesses and will predict the measures t hat can be 
adopted to minimize these impacts.  
 
2. 
 
En los puntos 4.7 y 4.28 del Informe de Gobierno se hace referencia a la participación de Brasil en 
los Comité de Obstáculos Técnicos al Comercio (OTC) y Medidas Sanitarias y Fitosanitarias (MSF), 
respecti vamente. ¿Podría Brasil compartir información sobre el funcionamiento de sus mecanismos 
interinstitucionales internos para la elaboración y presentación de notificaciones a dichos Comités, 
así como para el análisis y la presentación de comentarios sobre la s notificaciones presentadas por 
otros Miembros"?  
 
Reply:  
Respuesta: En Brasil, el organismo responsable por presentar las notificaciones a la OMC es el 
Ministerio de Relaciones Exteriores. El Ministerio de Agricultura, Ganadería y Abasto (MAPA), dentro 
de sus competencias en materia MSF y OTC, cuenta con dos coordinaciones para gestionar ambas 
materias. Estas dos coordinaciones, que están a cargo de la Secretaría de Comercio y Relaciones 
Internacionales del MAPA, trabajan integradas con otros sect ores dentro del Ministerio, con el fin de 
notificar a la OMC todos los documentos importantes emitidos por el país, para responder a los 
comentarios sobre los mismos, para comentar las notificaciones de terceros países, entre otras 
providencias. En el ámbi to MSF, el MAPA luego remite las notificaciones directamente al MRE para 
su envío a la OMC. En el ámbito OTC, las notificaciones se remiten al Instituto Nacional de Metrología, 
Calidad y Estadística (INMETRO), para su posterior envío al MRE, de conformidad  con la 
Resolución  N. 05/1995 del CONMETRO.  
  WT/TPR/M/432/Add.1  
 
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UNITED K INGDOM  
SECRETARIAT REPORT (S432)  
Secretariat Report (S432)  
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
1.2.4  Structural Policies  
 
1.2.4.4 Labour market policies  
 
UK Question 1:  The Secretariat Report addresses changes to Brazilian labour law made over the 
review period. What steps is Brazil taking to advance labour standards through its trade policy?  
 
Reply:  
Since the last Brazilian review in 2017, the changes in the Brazilian Labour law have the aim to 
eliminate restrictions on the celebration of labour contracts and for flexibility to labour relations. It 
vows to remove and flexiblize some norms regarding labour relations with a view to the growth of 
productivity and  the opening of new work places. The improvement of labour policies will surely 
bring better conditions to the Brazilian competitivity and international trade policy.  
 
UK Question 2 : How will the EU -MERCOSUR FTA contribute to upholding and promoting these 
standards?  
 
Reply:  
Labour provisions are incorporated in Trade and Sustainable Development Chapter of the 
Agreement. As Brazilian law and public policies have always upheld high labour standards, the 
Brazilian Government considers that the MERCOSUR -EU FTA is in line with its current practices.  
 
Secretariat Report (S432)  
2 TRADE AND INVESTMENT REGIMES  
2.2 Trade Policy Formulation and Objectives  
2.2.2  Trade policy objectives  
Paragraph 2.14.  
 
UK Question 3 : Could Brazil please provide more information on how  their trade policy objectives 
will address environmental sustainability and climate change challenges?  
 
Reply:  
Brazil believes that trade can be a key driver of sustainable development in all its dimensions. In 
this regard, Brazil was actively engaged in  the fisheries subsidies negotiations and has recently 
decided to join the Trade and Environment Structured Discussions (TESSD) and will go on 
participating in the discussions on the issue.  Domestic support and market access reform in 
agriculture will also  remain Brazil 's priorities. Fulfilling the international obligation contained in 
Article  20 of the Agreement on Agriculture is how the Membership will deliver on the goals that led 
to the creation of the WTO and make a key contribution to the promotion of  food security and the 
SDGs.  
 
Secretariat Report (S432)  
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.2  Regional trade agreements and preferential trade arrangements  
2.3.2.1  MERCOSUR  
 
UK Question 4 :  
 
The UK understands that Brazil does not recognise the Geographical Indication (GI) for Scotch 
Whisky. This, unfortunately, limits the intellectual protection for this product. Could Brazil please 
indicate whether they are evaluating the possibility of granting GI  registration to Scotch Whisky, 
which will protect Brazilian consumers from the sale of misleadingly labelled products?  
 
Reply:  
Yes, Brazil is evaluating the possibility of granting GI registration to Scotch Whisky.  WT/TPR/M/432/Add.1  
 
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  Secretariat Report (S432)  
2 TRADE AND I NVESTMENT REGIMES  
2.4 Trade Policy Formulation and Objectives  
2.4.4  Investment promotion and facilitation  
Paragraph 2.55.  
 
UK Question 5 :  
 
Paragraph 2.55 states that Brazil is in the progress of "Facilitating the granting of visas for foreign 
workers and investors" to encourage more inward FDI. Could Brazil please explain:  
a. Are these visas being offered globally or only to nationals of specific countries?  
b. What kind of easements are being offered?  
c. What kind of activities can the foreign workers undertake on these visas and what is the 
eligibility threshold for them (i.e. salary/qualification)?  
d. To which sectors of the economy does the visa facilitation relate?  
 
Reply:  
Brazil 's recently reformed its migration law with the approval of Law 13,445/201 7, proving for a 
more open and receptive migration regime. Investor and workers can now apply for a temporary 
visa, as well as specific work permits that facilitate the temporary exercise of certain activities, 
including to provide technical assistance and  technological transfer, invest or represent a financial 
institution, among others. There is not usually a specific sector or profession related to the visa/work 
permit; certain thresholds may apply, however, depending on the activity (e.g. proof of adequa te 
professional qualification and experience). Beyond this general improvement, Decree N° 9,731/2019 
removed the requirement of visitor visa for certain countries, allowing easier short -term entry and 
stay for business purposes. MERCOSUR countries also hav e greater access due to a residency 
agreement.  
 
Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1  Customs procedures, valuation, and requirements  
Paragraph 3.14.  
 
UK Question 6 :  
 
Could Braz il please explain what the rationale is for requiring analysis of all imported products twice, 
both at their origin and at their destination? Additionally, could Brazil please clarify why registrations 
and licen ces are mandatory for each shipment?  
 
Reply:  
As a rule, Brazil does not require the analysis of all imported products twice, both at their origin and 
at their destination. If the case happened with a specific product, please provide information about 
the situation so we can provide a more deta iled reply.  
 
Currently, the Brazilian Foreign Trade System limits the use of the import licen ce to only one 
shipment. Therefore, for each import it is necessary to enter a new import licen ce request so that 
the other government agencies can verify if the product is already registered. It is a rework for the 
private sector and for the public sector.  
As for the new import process currently being implemented, as a rule, import licen ces are valid for 
multiple shipments, but there are still cases where an i mport licen ce is required for each shipment, 
such as live animals, medicines controlled internationally by the WHO, etc.  
 
Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1  Customs procedures , valuation, and requirements  
Paragraph 3.15.  
 WT/TPR/M/432/Add.1  
 
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UK Question 7 : 
 
Could Brazil please provide further information as to how it plans to implement the recommendations 
of the Time Release Study (TRS) to further reduce the average release times for consignments?   
 
Reply:  
Several initiatives have been conducted by the Special Secretariat of Federal Revenue of Brazil (RFB) 
with the aim of reducing transaction processing times. The main measure refers to the development 
of the national single window (Portal Único de Comércio Exterior), which aims to simplify and 
modernize customs procedures. Through this system it will be possible to provide more efficient, 
harmonized and integrated processes between all public and private stakeholders.  
In addition, reducing processing time has been on the agenda of the meetings of the Local 
Committees for Trade Facilitation (Colfac). These committees are coordinated by the RFB and include 
the participation of representatives from the public and private sectors. The Colfac act ivities are 
based on the recommendations that have been established by the TRS. The purpose of the meetings 
is to identify bottlenecks in customs procedures and to propose measures for improvement, aiming 
to reduce the time and costs of foreign trade opera tions. Moreover, these committees are 
appropriate fora for sharing best practices between Customs and other government agencies  
Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
Paragraph 3.3.  
 
UK Question 8 :  
 
Could Brazil please provi de an update on the ongoing review of the Federal Decree 6.871 of 
4 June 2009, regulating the Beverage Law 8.918 of 14 July 1994, and whether it plans to notify the 
final text to the WTO TBT Committee prior to adoption? Additionally, could Brazil please ex plain how 
it intends to use the opportunity of the ongoing revision process to adapt definitions and restrictive 
analytical parameters (PIQs) to international standards?  
 
Reply:  
Regarding the review of Federal Decree 6.871 of 4 June 2009, regulating the Be verage Law 8.918 
of 14  July 1994, Brazil would like to note that it has been notifying to the TBT Committee with nº 
G/TBT/N/BRA/1145/Add.1. We welcome the comments and contributions received from several 
Members in reply to our public consultation. Brazili an authorities are currently reviewing all of them 
and we would like to assure that they will be duly considered.  
 
In the next steps of this regulatory process, Brazil will publish its answers to the comments and also 
a revised draft regulation. This revis ed draft will be notified to all Members, and further comments 
will be accepted. A public hearing on the subject is scheduled for the first semester of 2023.  
 
The Decree will only deal with the definitions of beverages, without detailing values or limits r elated 
to analytical parameters (PIQs). These will be dealt with through complementary Ministerial Acts. 
Additionally, in the revision of the Decree and in the edition of other normative acts, one of the main 
principles to be observed is the alignment with  existing international standards.  
 
UK Question 9:   
 
Could Brazil please provide an update on the ongoing review of the import licen ces application and 
approval process published in Circular Nº 1, of 12 January 2022, and whether it plans to notify the 
final text to the WTO TBT Committee prior to adoption?  
 
Reply:  
Brazil plans to provide a notification of the import licensing requirements currently in force in the 
coming weeks. From 2023 on, updated notifications will be provided annually to the Committee  on 
Import  Licensing, not the TBT Committee.  
 WT/TPR/M/432/Add.1  
 
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  Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1  Customs procedures, valuation, and requirements  
Paragraphs 3.8. and 3.10.  
 
UK Question 10 :  
 
Could Brazil please provide further information on the streamlined clearance process, and the 
expected timelines for the implementation of it, up until the end of 2023? Will the single import 
declaration reduce the requirement for supporting documentation to be provided for each shipment 
imported by a supplier?  
 
Reply:  
The changes in processes and in the technology promoted in the current import process/system 
within the scope of the Brazilian Single Window Program have already made it possible to distribut e 
tasks among specialized virtual teams to obtain advance cargo clearance for AEO and to achieve 
paperless trade.  
 
Furthermore, the New Import Process has the potential to further reduce the goods release time 
after full implementation of the Brazilian Single Window. Among the improvements are:  
 
- Coordinated goods inspection between Customs and OGAs;  
- Improvement of licen ce issue time of OGAs through risk management;  
- Improved trade logistics due to advance clearance of all cargos instead of AEO 's cargos only;  
- Issue of Import licen ces for multiple shipments;  
- Foreign trade taxes and duties with deferred payments.  
 
Single import declaration will reduce the requirement for supporting documentation because the 
Brazil 's Single Window  focuses on data interoperability and on the advent of the import licen ce issued 
to multiple shipments.  
 
It is expected that the New Import Process will have its full implementation by the end of 2024. The 
Management Committee (Comissão Gestora) of Siscome x will deliberate the issue at its last meeting 
of 2022.   
 
Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1  Customs procedures, valuation, and requirements  
Paragraphs 3.9.  
 
UK Question 11 :  
 
In 2001, Brazil introduced the obligation to affix physical strip tax stamps to a number of alcoholic 
beverages (including Scotch Whisky), for anti -smuggling purposes. However, the tax strip is not 
required for other alcoholic beverages even though those  products are also subject to excise duty. 
Could Brazil please confirm whether other less trade -restrictive measures are under analysis, such 
as QR codes?  
 
Reply:  
The anti -smuggling policies by our Customs authorities is based on the kinds of alcoholic bev erages 
that are more subject to smuggling. The policies are applied on a non -discriminatory basis for all 
WTO Members and domestic producers.  
 
Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.6  Anti-dumping, countervailing, and safeguard measures  
Paragraph 3.58.  
 WT/TPR/M/432/Add.1  
 
- 282 - 
 
UK Question 12:  
 
The Secretariat Report highlights that one of the key new features in Brazil's trade remedies system 
is the consolidation of the public interest evaluatio n. Could Brazil please provide information on how 
these evaluations have affected the trade remedies system and if it plans to keep these evaluations?  
 
Reply:  
Intervention in the public interest in the Brazilian trade remedies system is exceptional, carri ed out 
when the impact of the imposition of the antidumping and countervailing measure on economic 
agents as a whole is potentially more harmful when compared to the positive effects of the 
application of the remedy measure.  
 
The following figure, publishe d in the SDCOM 2021 report, summarizes for the last 5 years the 
number of decisions in the public interest, with and without intervention, as well as their relationship 
with the number of decisions in trade remedies proceedings conducted by the Brazilian i nvestigating 
authority.  
 
Brazil understands that the public interest analysis is important to weigh whether the imposition of 
the trade remedies measure impacts the supply of the product under analysis in the domestic market 
(from both domestic producers and imports), in order to significantly harm the dynamics of the 
national market (including the upstream and downstream links and the industry itself), in terms of 
price, quantity, quality and variety, among others.  
 
Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.2 Measures Directly Affecting Exports  
3.2.2  Taxes, charges and levies  
 
UK Question 13 :  
 
Brazil's reduction of the IPI tax rates in February 2022 was welcomed. However, there remains a 
difference in taxation app lied to the Brazilian spirit Cachaça and spirits such as Scotch Whisky and 
gin. Can Brazil provide an indication of when the IPI tax rates for Scotch Whisky and gin will be 
reduced in line with other spirits?  
 
Reply:  
The IPI tax rate is individualized for each product, considering issues of essentiality and target 
audience. Thus, as cachaça is a popular alcoholic beverage, its tax rate is lower than that of other 
spirits. In any case, the applicable rate is the same for domestic cachaça and eventually impor ted 
cachaça. This applies to all types of alcoholic beverages, which have the same rate applicable on the 
domestic market or on imports.  
 19 2041
2449
37 75
1 0 041329
01325385063
2017 2018 2019 2020 2021
Trade remedy decisions
Public interest decisions with an impact on trade remedy measures
Public interest decisions with no impact on trade remedy measuresWT/TPR/M/432/Add.1  
 
- 283 - 
 
  Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.1  Incentives  
 
UK Question 14 :  
 
Could Brazil please clarify how it implements and enforces domestically, both at the federal and 
state/municipal levels, its subsidy obligations under the WTO SCM  Agreement  and WTO  Agreement  
on Agriculture?  
 
Reply:  
Brazil complies with its subsidies obligations under WTO agreements. As WTO agreements are 
mandatory by law, they are enforced through institutional structure in national and subnational 
levels, such as legal supervision. The different federative entities in Br azil maintain dialogue and 
exchange information regarding possible programs that could eventually affect Brazil's international 
commitments.  
 
Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.5 State trading, state -owned enterprises, and privatization  
 
UK Question 15 :  
 
The Secretariat Report provides details of the number of federal -level state -owned enterprises and 
their distribution by sector. Could Brazil please clarify whether the same information is available for 
state-owned enterprises at state and municipal level? If so, could Brazil please provide this 
information?  
 
Reply:  
The Federal Government has no knowledge of an aggregate report being published for SOEs on state 
and munici pal levels.  
 
Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.5  State trading, state -owned enterprises, and privatization  
 
UK Question 16 : 
 
The Secretariat Report states that in 2019, the Ministry of Economy's Special Secretariat for 
Denationalization, Divestment and Markets (SEDDM) has been assigned to oversee the 
reorganization of the State's role in the economy and the formulation of downsizing and divestment 
policies. Could Brazil pleas e clarify what activities SEDDM has undertaken since 2019 towards "the 
reorganisation of the State's role in the economy" and "the development of downsizing and 
divestment policies", and how these activities are monitored?  
 
Reply:  
After its creation, in 20 19, SEDDM acted in the evaluation of state -owned companies to verify 
whether the reasons that justified the creation of the state -owned company remain, which must be 
national security or the relevant collective interest, according to art. 173 of the Federa l Constitution, 
along with the examination of the company's economic and financial sustainability and the expected 
benefits in terms of improved management efficiency. This assessment resulted in the inclusion of 
companies in the National Privatization Pro gram - PND or their qualification in the Investment 
Partnerships Program - PPI, as the case may be. In 2019, there were five state -owned companies 
in the PND/PPI, and in 2022, this number increased to 18 companies10 belonging to different sectors 
 
10 Agência Brasileira Gestora de Fundos Garantidores e Garantias (ABGF); Autoridade Portuária de 
Santos S.A  (SPA); Centrais de Abastecimento de Minas Gerais S.A. (C EASAMINAS); Centro Nacional de 
Tecnologia Eletrônica Avançada S.A (CEITEC); Companhia Brasileira de Trens Urbanos (CBTU); Companhia das 
Docas do Estado da Bahia – CODEBA;  Companhia Docas do Pará – CDP; Companhia Docas do Rio de Janeiro 
(CDRJ), Companhia de Entrepostos e Armazéns Gerais de São Paulo (CEAGESP); Empresa Brasil de WT/TPR/M/432/Add.1  
 
- 284 - 
 
of econom ic activity, such as postal service, supply, information technology, insurance, 
communication, energy and transport, among others.  
 
In 2022, the privatization of Centrais Elétricas Brasileiras (Eletrobras), the largest Brazilian electric 
power generation c ompany, was completed in a public offering for distribution of shares that raised 
approximately BRL 33.69 billion, linked to the renewal of the concession contracts of 22 hydroelectric 
plants for BRL 25.38 billion in grant bonuses, plus BRL 32 billion in p ayments to the Energy 
Development Account (CDE) in 30 years. Companhia Docas do Espírito Santo (Codesa) was also 
privatized in a process that foresees investments of around BRL 800 million, which is considered a 
pilot for the auction of other ports by the Federal Government.  
 
Centrais de Abastecimento de Minas Gerais S.A. is scheduled to be privatized on 22  December  2022. 
Ceasaminas, after more than 22 years since its inclusion in the PND, is to be privatized for a 
minimum price of R  BRL 423.6 million, and Companhia Brasileira de Trens Urbanos (CBTU -MG), 
which foresees public and private investments in the modernization and expansion of rail transport 
systems in Minas Gerais, is to be privatized for a minimum price of BRL 3.7 billion.  
 
As for the other companies included in the PND/PPI, most of them are in the phase of studies and 
definition of privatization modeling, and in the case of Autoridade Portuária de Santos S.A (SPA), 
the expectation is that the auction will be held in the first semester of 2023.  
 
The inspection of privatization activities is carried out by the official control bodies, which are: (i)  the 
Comptroller General of the Union (CGU), an executive branch  of the Brazilian federal government 
tasked with assisting the president regarding the treasury and public assets and the government's 
transparency policies; and (ii) the Federal Court of Accounts (TCU), pertaining to the Legislative 
branch, which audits t he accounts of administrators and other persons responsible for federal public 
funds, assets, and other moneys, as well as the accounts of any person that causes loss, 
misapplication, or other irregularities that result in losses to the public treasury.  
 
Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.5  State trading, state -owned enterprises, and privatization  
Paragraph 3.149.  
 
UK Question 17 : 
 
Section 3.149 states that information on fede ral SOE shareholder ownership and companies owned 
or controlled by state and municipal governments is unavailable. Could Brazil please outline what 
plans they have in place to make this information available?  
 
Reply:  
The Federal Government has implemented relevant improvements in governance and transparency 
for Federal SOEs during the last few years, all in alignment with OECD´s recommendations from the 
Peer Review. Further improvements are outlined by the Federal Government for the near future, but 
not con sidering state and municipal SOEs 's information.  
 
Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.6  Government Procurement  
Paragraph 3.160.  
 
UK Question 18 : 
 
Section 3.160 states that there is a list of cases in which procuring entities "may or must resort to" 
limited tendering. Could Brazil please explain in which cases procuring entities must resort to limited 
tendering?  
 
Comunicação (EBC); Empresa Brasileira de Correios e Telégrafos (ECT); Empresa de Tecnologia e Informações 
da Previdência (DATAPREV); Empresa de Trens Urbanos de Porto Alegre S.A (TRENSURB); Empresa Gestora de 
Ativos (EMGEA); Nuclebras Equipamentos Pesados S. A. (NUCLEP); Pré-Sal Petróleo S.A. – PPSA; Serviço 
Federal de Processamento (SERPRO); e Telecomunicações Brasileiras S.A. (TELEBRAS).  WT/TPR/M/432/Add.1  
 
- 285 - 
 
  Reply:  
Arts. 74 and 75 of Law 14,133/21 regulate two situations that can lead to direct awards, which are 
connected to the expressions "must " or "may".  
Article  74 brings a non -exhaustive list in which the procurement procedure is not applicable due to 
the unfeasibility of competition. This occurs, for instance, due to the very nature of the object or in 
the absence of competing undertakings, taking into account certain requirements. In those cases, 
the authority must resort to a direct award to be able to fulfil its needs. The procurement process is 
not applicable in case the competition is not feasible, especially:  
I – acquisition of materials, equipment, products, or services that can only be provided by an 
exclusive manufacturer, company, or sales representative;  
II – hiring of a professional artist, directly or through an exclusive businessman, provided that he/she 
is recognized by specialized critics or by public opinion;  
III – engagement of certain specialized technical services of a predominantly intellectual nature with 
professionals or companies of well -known specialization.  
IV – objects that may be or are required to be contracted through registration;  
V – acquisition or lease of properties which facilities and location make their choice necessary.  
On the other hand, art. 75, brings an exhaustive  list which allows the manager, within her discretion, 
to choose direct awards, although it is technically possible to carry out a procurement process. This 
is the case, for example, when the value of the contract is low or to deal with facts/acts that may  
require urgent actions of the Public Administration.  
 
Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.6  Government Procurement  
Paragraph 3.164.  
 
UK Question 19 :  
 
Could Brazil please expl ain what their plans are to publish summary notices in one of the 
WTO languages, in line with the GPA requirements?  
 
Reply:  
The National Public Procurement Portal (PNCP) was created as an official website for the centralized 
and mandatory disclosure of the  acts required by the procurement law. With its exclusive and 
mandatory use from April 2023, the PNCP shall also offer a unified information system which might 
be eventually adapted to increase the publicity of international tenders, such as automated 
translation of summary notices for covered procurement into a WTO language, in line with GPA 
requirements.  
 
Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.6  Government Procurement  
Paragraph 3.166.  
 
UK Question 20 : 
 
Section 3.166 states that Article 60 of the 2021 Procurement Law provides a tie break mechanism 
in the case of a tie between two or more bids. Could Brazil please indicate how the criteria prescribed 
by Article 60 are non -discriminatory and how they comply with the GPA?  
 
Reply:  
Paragraph one of art. 60 of Law 14,133/2021 does not determine the immediate application of a 
preference to national companies in case of a tie. If the bids are exactly of the same value, there 
shall be a new round of bids. If the tie remains, a succession of tiebreaking criteria would take 
precedence before the possibility of resorting to the criteria referred to in paragraph 3.166. This is 
also followed by sub -central entities whenever they carry o ut procurement and by state owned or 
controlled enterprises, as Law 13,303/16 refers to tiebreaking criteria that are similar to the ones 
described.  
However, if Brazil is invited to join GPA, Brazil will not apply any preference to goods and services 
produ ced in the country or produced or provided by Brazilian companies regarding covered WT/TPR/M/432/Add.1  
 
- 286 - 
 
procurement to the detriment of other GPA parties. This prevents using the tie -breaking criteria 
referred to in the question. That criteria would be, in any case, very rare ly, if ever, applied, since it 
would require that the bids were exactly of the same value.  
 
Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.6  Government Procurement  
Paragraph 3.167.  
 
UK Qu estion 21 : 
 
 Section 3.167 states that Article 26 of the 2021 Procurement Law provides that a margin of 
preference may be applied to varying percentages. However, this has not yet been implemented. 
Could Brazil please indicate whether there is a plan for s aid regulations to be implemented in the 
near future?  
 
Reply:  
The possibility for the Executive to set out price preferences is still available pursuant to Article 26 
of Law 14,113/21. The permission of such policy in the new Law was a decision of the Braz ilian 
Congress. However, for the margin of preference referred to in art. 26, I, to be applicable, the 
provision needs to be further regulated by means of a justified decision of the Executive. There are 
no existing decrees implementing those margins. In a ddition, there are no plans in the medium term 
to regulate this provision by the Federal Government. In this sense, there are no margins of 
preference in force for nationaly manufactured goods and services that meet Brazilian technical 
standards.  
 
Secretar iat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.6  Government Procurement  
Paragraph 3.169.  
 
UK Question 22:  
 
Section 3.169 states that for procurement related to information technology and communications 
systems deemed strategic by the Federal Government, there may be restrictions to technologies 
developed in Brazil. Could Brazil please give examples of this type of procurement?  
 
Reply:  
In order for these restrictions to be applicable, the p rovision needs to be further regulated by means 
of a justified decision of the Executive. There is no existing decree implementing those restrictions. 
In addition, there are no plans in the medium term to regulate this provision by the Federal 
Government s o no examples can be presented.  
 
Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.6  Government Procurement  
Paragraph 3.171.  
 
UK Question 23 : 
 
Section 3.171 states that Article 26:6 of the 2 021 Procurement Law allows the use of offsets in 
specific situations. Could Brazil please outline whether there are any plans in place to reduce offsets 
and is there a timeline for this?  
 
Reply:  
Offsets are an instrument established by the Brazilian Law, w hich provides for the possibility of 
measures of commercial, industrial and technological compensation in public procurement. This 
requirement is set out by art. 26, § 6, of Law 14,133, of 1 April 2021, which requires "previous 
justification of the compete nt authority ". WT/TPR/M/432/Add.1  
 
- 287 - 
 
  The modality of offsets that include development of scientific and technological capacity constitute 
an essential component of the Brazilian path towards development. The rationale for using public 
procurement to support innovation is that, because of their purchasing power, governments shape 
innovation directly and indirectly. The New Federal Strategy of Development for Brazil, set out by 
Decree 10,531 of 26 October 2020, places technological innovation and scientific research at the 
centre of the development strategy. Cycles of long -term strategies are set in periods of 
12 (twelve)  years.  
 
Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.6  Government Procurement  
Paragraph 3.171.  
 
UK Question 24 :  
 
The Secretariat Report refers to the recent ratification of the Madrid Protocol and the review of 
accession to the Hague Agreement. Could Brazil please indicate whether they plan to ratify the 
following WIPO International Treaties:  
● Nice Agreement  
● Singapore Treaty  
● Locarno Treaty  
 
Reply:  
There is currently no plan to ratify the treaties mentioned above.  
 
Secretariat Report (S432)  
3 Trade Policies and Practices by Measure  
3.3 Measures directly affecting imports  
3.3.7  Intellectual property rights  
3.3.7.1  Overview  
Paragraph 3.174.  
 
UK Question 25 :  
 
The Secretariat Report states that Brazil's IP policy is now formulated by the Intellectual Property 
Inter-Ministerial Group (GIPI), chaired by the Ministry of Econom y, with INPI administering the 
registration of IP rights. Could Brazil please clarify what is GIPI's precise role and competence when 
it comes to formulating IP policy in Brazil and for deciding -on IP issues. Additionally, could Brazil 
please indicate whic h criteria GIPI considers when assessing GI applications?  
 
Reply:  
The purpose of the GIPI is to coordinate the federal government's action on intellectual property and 
implement the National Intellectual Property Strategy.  
 
As defined in Decree 9.931, of 23 July 2019, the GIPI attributions are to:  
- promote the cohesion of actions, programs, projects and initiatives of public bodies and entities 
with competences related to intellectual property issues;  
- express an opinion on normative acts that deal with the subject of intellectual property and related 
topics;  
- advise the GIPI 's bodies about the signing of treaties, conventions and international acts, bilateral 
and multilateral, in matters of intellectual property;  
- carry out consultations with  the private sector on the subject of intellectual property.  
 
It is important to notice that GIPI`s recommendations are not mandatory to the bodies that compose 
it. 
 
GIPI does not analy se requests for the protection of GIs, which is an attribution of INPI.  The 
international recognition of some GIs may be subject to political consideration due to their value in 
trade agreements negotiations.  
 
 WT/TPR/M/432/Add.1  
 
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Secretariat Report (S432)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures affecting production and trade  
3.3.7 Intellectual Property Rights  
3.3.7.2  Industrial Property  
Paragraph 3.181.  
 
UK Question 26 :  
 
Paragraph 3.181 refers to the ability to file and protect position trademarks in Brazil. Could Brazil 
please indicate which other non -traditional trademarks can be filed in Brazil and how should these 
be represented, i.e.  graphical representation, MP3, MP4 etc?  
 
Reply:  
Provisions concerning the registration of trademarks can be found in Law Nº 9.279 of 1996 
("Industrial Property Law " - IPL), as well as in rel evant ordinances issued by Brazil 's National 
Institute of Industrial Property (INPI). Besides position trademarks, the aforementioned regulations 
allow for the registration and protection of tridimensional trademarks, provided that they fulfil the 
conditio ns set forth, inter alia , in Article 124 of the IPL. Further information on the registration of 
tridimensional trademarks can be found in INPI 's Trademark Manual: 
http://manualdemarcas.inpi.gov.br . 
 
Secretariat Report (S432)  
4 Trade Policies by Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.2  Policy and institutional framework  
Paragraph 4.15.  
 
UK Question 27:   
 
Could Brazil please provide details on its policy measures to promote sustainable agriculture, 
livestock, fisheries, and aquaculture? Could Brazil please indicate whether it developing policies on 
traceability and transparency in their agricultural product ion supply chains?  
 
Reply:  
In 2009, during the 15th UNFCCC COP, Brazil expressed its voluntary commitment of reduction in 
GHG emissions, in a range from 36.1% to 38.9% relative to the projected emission in 2020.  
 
As a result of those commitments, Brazil l aunched in 2010 the Low -carbon Agriculture Plan (ABC), 
covering the period until 2020 and representing one of the main instruments of the Brazilian 
agricultural policy for promoting sustainability and facing detrimental effects of climate change in 
agricul ture. The objective of ABC Plan is harmonizing sustainable development and mitigation actions 
in the whole rural productive sector, based on stimuli to the adoption of practices and technologies 
which enable obtaining results simultaneously in mitigation o f GHG emissions and adaptation of 
systems to climate change, as well as deliver productivity gains and sustainability.  
 
For the 2020 -2030 period, the Ministry of Agriculture, Livestock and Food Supply (MAPA) launched 
a new ABC Plan, referred as Climate Cha nge Adaptation and Low Carbon Emission in Agriculture 
Plan (ABC+). The ABC+ presents new conceptual bases derived from lessons learned in its first 
decade. In this new phase, the Plan stimulates the adoption and conservation of practices, products, 
process es and sustainable systems of production (SPSabc) which contribute to lower GHG emissions, 
namely: practices for recovery and renovation of degraded grasslands (PRPD); no -till farming 
system for grains (SPDG); no -till farming system for greenery (SPDH); cr op-livestock -forest 
integration system (ILPF); agriforest systems (SAF); planted forests (FP), Bio -inputs (BI); irrigated 
systems (SI); animal production waste management (MRPA); and intensive termination (TI). 
Furthermore, the Plan reinforces adaptation a s a fundamental instrument for the agricultural sector 
to counter climate change and incorporate the concept of integrative landscape approach (AIP), 
aligning Brazil to the main governance strategies in the international scenario.  
 
ABC+ is the most importa nt public policy focused on countering climate change in the context of 
sustainable development in the agricultural sector.  
 WT/TPR/M/432/Add.1  
 
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  Secretariat Report (S432)  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry and Fisheries  
4.1.4  Domestic Support  
4.1.4.4  Other  Measures  
4.1.4.4.3  Zoning, land, and other requirements   
Paragraph 4.48.  
 
UK Question 28 :  
 
Could Brazil please indicate how they measure environmental sustainability, and how successful it 
has been in linking agricultural support to environmental sustai nability? Could Brazil please explain 
what action it is taking to mitigate emissions and biodiversity loss from farming and land use change?  
 
Reply:  
Sustainability is a very broad term, as it encompasses social, economic and environmental pillars. 
The tec hnologies supported by ABC+, known as SPSabc, have scientifically demonstrated results in 
promoting rural sustainability, for instance by preserving natural resources, particularly soil and 
water, and by promoting resilience in the sector. By adopting thes e technologies, rural producers 
are transforming the countryside, leaving behind production practices that could be detrimental to 
the environment, in favor of new technologies and concepts which are both environment -friendly 
and also more productive and b enign to rural producer income and living.  
 
In order to follow ABC+ progress and SPSabc adherence, Brazil has devised an operative plan that 
will enable a precise assessment of the progress in sustainability in the agriculture and livestock 
sector. The operative plan pursues the following specific o bjectives:  
 
I. Maintaining stimuli to the adoption and conservation of agricultural systems with are 
preservationist and sustainable, with gains in productivity and income, improvements in resilience 
and reductions in GHG emissions;  
 
II. Strengthening act ions oriented to imparting technologies, qualification and technical assistance;  
 
III. Stimulating and supporting applied research for the development or improvement of systems, 
practices, products, sustainable production processes with focus on gains in r esilience, productivity 
and income, as well as on control of GHG emissions;  
 
IV. Creating and strengthening mechanisms which enable acknowledging and valuing producers that 
adopt systems, practices, products, sustainable production processes;  
 
V. Fostering , improving and diversifying economic, financial and fiscal sources and instruments 
linked to systems, practices, products, sustainable production processes;  
 
VI. Upgrading the management system of ABC+ for the implementation of monitoring, report and 
verification (MRV) and for the monitoring and evaluation of portfolio actions and results;  
 
VII. Fostering agriculture integrated to the landscape, in order to incentivize environmental 
compliance in rural properties and sustainable production in spaces dedica ted to agriculture and 
livestock.  
 
In this sense, all actions included in the operative plan have been designed from the following 
programs and strategies:  
 
Programs  
 
I. Program of access to credit and financing;  
II. Program for stimulating adoption and co nservation of SPSabc;  
III. Strategic cooperation program;  
IV. Program for Acknowledgement and recognition.  
 WT/TPR/M/432/Add.1  
 
- 290 - 
 
Strategies:  
 
I. Strategy for technical assistance and rural extension (ATER), qualification and technology 
transfer;  
II. Communication and awareness strategy;  
III. Strategy for governance, monitoring and evaluation;  
IV. Strategy for intelligence in climate risk management and mitigation; and  
V. Strategy for research, development and innovation.  
 
As explained in previous answers, since 2010, B razil has implemented the ABC Plan, which 
represents one of the main public policies for agriculture, in order to promote sustainability and 
addressing detrimental effects of climate change in the countryside. For the period from 2020 
to 2030, it was launc hed the ABC+, now referred as Climate Change Adaptation and Low Carbon 
Emission in Agriculture Plan (ABC+).  
 
Secretariat Report (S432)  
4 TRADE POLICIES BY SECTOR  
4.2 Mining and Energy  
4.2.1  Mining (excluding hydrocarbons)  
4.2.1.1  Main features  
Paragraph 4 .51. 
 
UK Question 29 :  
 
Could Brazil please provide more information regarding the due diligence it is undertaking to ensure 
mining does not contribute to deforestation?  
 
Reply:  
Brazilian mining has the potential to significantly expand the sustainable pr oduction of minerals in 
the coming years, with significant opportunities for foreign direct investment in Brazil's mineral 
industry. According to studies by IPEA (2022), despite the recent growth in mining production in the 
North, the Southeast and South r egions concentrate almost 70% of the percentage share of gross 
mineral production in the country. Minas Gerais serves as an example to characterize mineral 
exploration because it is the leading Brazilian state in mineral production, with a predominance of 
large and medium -sized mines for iron ore. Minas Gerais (28.4%), Espírito Santo (12.0%), São 
Paulo (11.7%), Bahia (8.2%) and Pará (5.85%) are the main mineral producing states in Brazil.  
According to the aforementioned IPEA survey (2022), the presence of m ining activity was not 
statistically significant in relation to the increase in deforestation in the Amazon biome. Furthermore, 
when observing the variable deforestation with soil degradation, by the DETER System (2022), 
mining activity represents less tha n 1% (0.7%) of deforestation in the Amazon. These results are 
interesting because, from the perspective of the mining municipalities, mineral exploration did not 
contribute to a greater increase in deforestation than the other analyzed municipalities that do not 
have mining activity.  
It is worth highlighting that any mining activity in Brazil, small, medium and especially large mining 
companies, is subject to the constitutional principles of the economic and environmental order. 
Based on art. 170 of the Bra zilian Federal Constitution (CF/88), all economic activity must respect 
the principle of protecting the environment and, under the provisions of § 2 of art. 225 (CF/88), 
"Anyone who exploits mineral resources is obliged to recover the degraded environment,  in 
accordance with the technical solution required by the competent public body, pursuant to the law ". 
From the point of view of environmental compensation, the legislation requires the payment of 
financial compensation, proportional to the environmental impact, to be invested, mostly, in 
conservation units and environmental services (Law 9,985/2000). In the field of forest 
compensation, legislation that protects native vegetation (eg Law 11,428/2006 and 
Law 12,651/2012) requires compensation through compe nsatory planting projects, creation of 
conservation units and/or reforestation projects, resulting from economic activity (mining) that 
caused the suppression of vegetation. Therefore, duly licensed mining, in addition to contributing to 
forestry developme nt and biodiversity conservation, must promote the closure of mines, with due 
environmental recovery in accordance with the plan approved by the environmental and mineral 
licensing.  
Some ongoing strategic actions, such as the Support Program to the Develop ment of Artisanal and 
Small -scale Mining (Pró -Mape) and the National Action Plan for the extraction of Gold without WT/TPR/M/432/Add.1  
 
- 291 - 
 
  Mercury (PAN -Minamata), can contribute to further the sustainability of mining activity in the Legal 
Amazon region.  
 
Secretariat Report (S43 2) 
4 TRADE POLICIES BY SECTOR  
4.2 Mining and Energy  
4.2.1  Mining (excluding hydrocarbons)  
4.2.1.4  Border measures and domestic support  
 
UK Question 30 : 
 
The Secretariat Report notes that in 2017 and 2018, Brazil allocated BRL 17.9 million in subsidies 
under its Inova Mineral joint initiative. Subsidies provided under this initiative were not notified 
under Brazil's 2019 or 2021 subsidy notifications. Could Brazil please clarify what types of subsidies 
(e.g. grants, loans, or other types) were provided through the Inova Mineral initiative?  
 
Reply:  
According to the "BNDES/FINEP JOINT PUBLIC NOTICE: DEVELOPMENT, SUSTAINABILITY AND 
INNOVATION PLAN IN THE MINING AND MINERAL TRANSFORMATION SECTOR – INOVA MINERAL", 
economic subsidies were offered to B razilian companies and/or economic groups that were interested 
in developing, producing and commercializing the products, processes and/or services resulting from 
technologies and products with a focus on:  
- "Critical minerals ", research, development, improvement and escalation of mining 
technologies;  
- Technologies and processes for reducing and mitigating risks and environmental impacts; 
and 
- Pioneer development and production of machines, equipment, software and systems for 
mining and miner al transformation.  
 
The Joint Public Notice defined "Economic Subsidy " as "support with non -refundable resources to 
participating companies ", respecting the budget limit, and obeying the following destinations:  
- Execution of research and development project s or provision of technological services by 
companies;  
- Hiring development projects or technological services with Scientific and Technological 
Institutions ( "ICTs") or their support foundations;  
- Cost and capital expenses, such as hiring and allocating rese archers, masters or doctors, 
training personnel, purchasing raw materials or components for building prototypes; and  
- Capital expenditures are limited to up to 20% of the grantable project value.  
 
UK Question 31 :  
 
Could Brazil please clarify what assessmen t it has made as to whether subsidies provided under the 
Inova Mineral initiative constitute notifiable subsidies under Article 1 of the Agreement on Subsidies 
and Countervailing Measures?  
 
Reply:  
According to Brazil 's assessment, all subsidies granted by Brazil have been notified to the WTO and 
are consistent with WTO rules.  
Inova Mineral was launched in 2016. The Brazilian Development Bank (BNDES) provided support 
exclusively through credit facilities extended to applicants that met all the req uirements, which were 
established to identify innovative potential, positive externalities and sound business plans. 
Application requirements are publicly available at: 
https://www.bndes.gov.br/wps/wcm/connect/site/f17601eb -1c8d-4aff-9bec-
eddbae3bbf15/inova_mineral_edital.pdf?MOD=AJPERES&CVID=lp. -ENS and 
https://www.bndes.gov.br/wps/wcm/connect/site/08ca0d6b -6246-4851-a765-
da2fad46bafb/inova_mineral_edital_anexoII.pdf?MOD=AJPERES&CVID=lp. -Me. 
 
Secretariat Rep ort (S432)  
4 TRADE POLICIES BY SECTOR  
4.3 Manufacturing  
4.3.3  Border measures  
Paragraph 4.125.  WT/TPR/M/432/Add.1  
 
- 292 - 
 
UK Question 32 :  
 
Drawback and manufacturing zones are widely used as incentives for local manufacturing and 
compliant to international trade law. However, bot h the legislation and compliance are complex, and 
companies might be blocked from accessing such incentives. Could Brazil please explain how can 
Brazilian customs work to make these easier to implement and utili ze? 
 
Reply:  
In the case of the suspension and  exemption drawback, legislation and rules for compliance are not 
complex. Basically, the only requirements that a Brazilian company needs to access both modalities 
of the regime are being qualified by the Special Secretary of the Federal Revenue of Brazil  as a 
foreign trade operator and producing some good for export.  
 
However, the company benefiting from the regime must maintain strict control over its logistical and 
manufacturing processes to fulfil the agreed export commitment, avoiding the payment of t axes 
suspended or exempted with penalty charges.  
 
The administration of the regime is completely carried out in a computerized module of the Brazilian 
Foreign Trade System (SISCOMEX), integrated with both import and export customs declarations. 
The legisla tion and instructions for qualification under the regime are easily obtained, being 
complemented by detailed manuals that are also easily accessible. All legal requirements and 
manuals for the usage of drawback can be found on the Siscomex website 
(https://www.gov.br/siscomex/pt -br). 
 
In July 2020, an important work was undertaken to simplify the terms and conditions for usufruct 
of the suspension and exemption drawback, which allowed the publication of O rdinance Secex nº 44 
of 24 July 2020. Also, in September 2022, Joint Ordinance SECINT/RFB No. 76 of 9 September  2022 
was issued, with a view to revising the standard rules, bringing simplification and greater legal 
certainty to companies.  
 
It is also important to mention another regime that allows companies to import or acquire products 
in the domestic market with suspension of federal tax payments. It is called the  "Regime Aduaneiro 
Especial de Entreposto Industrial sob Controle Informatizado"  (Recof) , which covers the common 
modality and the digital bookkeeping modality (Recof -Sped). A new Normative Instruction will soon 
be published, consolidating two previous normative acts. In order to spread knowledge about the 
regime, including its advantages and  compliance requirements, Brazilian Customs recently held an 
important event. On this occasion, companies had the opportunity to share experiences and solve 
doubts about Recof. This is an example of the initiatives that Brazilian Customs have conducted in 
order to promote interaction between the public and private sectors, with a view to disseminating 
and improving the special customs regimes.  
 
Based on the principles of transparency and publicity, Brazilian Customs provide  detailed manuals 
about drawback a nd other manufacturing zones on the following website : 
https://www.gov.br/receitafederal/pt -br/assuntos/aduana -e-comercio -exterior/manuais . 
 
Secretariat Report (S432)  
4 TRADE POLICIES BY SECTOR  
4.3 Manufacturing  
4.3.5  Automotive Sector  
Paragraph 4.134. (p. 140)  
 
UK Question 33 : 
 
The Secretariat Report notes the range from zero to 35% on import tariffs for electric and cell -
powered vehicles and hybrid vehicles. Could Brazil please give further details, especially with regards 
to buses in these categories? Additionally, is Brazil co nsidering changes to this tariff to encourage 
investment in this sector? Is Brazil considering tariff reductions for infrastructure related to the 
sector, for example, Electric Vehicle Charging Infrastructure?  
 WT/TPR/M/432/Add.1  
 
- 293 - 
 
  Reply:  
Currently the tariff rate applied for buses is 35%. Brazilian government evaluates in light of national, 
regional, and international norms how to boost environmental sustainability and climate change 
challenges concerning trade policy.  
 
Secretariat Report (S432)  
4 TRADE POLICIES BY SECTOR  
4.3 Manufacturing  
4.3.5  Automotive Sector  
Paragraph 4.136. (p. 141)  
 
UK Question 34 :  
 
Could Brazil please provide an update on whether the tariff reduction for fully disassembled vehicles 
(CKD), which is due to end on 31 December 2022, will be extended?  
 
Reply: 
The tariff reduction concerning fully disassembled vehicles (CKD) is disciplined in Annex V of Gecex 
Resolution 272, 2021, without any provision of expiring date.  
  
Specifically, the mentioned tariff reduction are covered by Ex 002, Ex 003 and Ex  006 in 8703.40.00 
tariff line (NCM); Ex 002, Ex 003 and Ex 006 in 8703.60.00; Ex 002 in 8703.80.00; and Ex 002 in 
8704.60.00 NCM code.  
 
Secretariat Report (S432)  
4 TRADE POLICIES BY SECTOR  
4.4 Services  
Paragraph 4.308.  
 
UK Question 35 :  
 
The Secretariat Report mentions that revalidations of degrees remain challenging in Brazil. Could 
Brazil please provide information on any actions or initiatives to improve the operating environment 
for both domestic and international Fintech companies? Which actions are Brazil implementing to 
facilitate such processes?  
 
Reply:  
Revalidation and recognition are the names given in Brazil for the processes that allow citizens with 
diplomas issued by foreign institutions to continue their studies or, in some cases,  to exercise their 
professional rights in Brazil. Revalidation is the process applicable to undergraduate -level diplomas, 
and recognition is the process applicable to graduate -level diplomas (Master 's and Doctor 's degrees, 
strictly).  
 
As per the National Education Guidelines and Framework Law of 1996 (Law n. 9394/1996), and in 
accordance with the principle of autonomy granted to universities by Article 207 of the Brazilian 
Federal Constitution, undergraduate diplomas issued by foreign universities  must be revalidated by 
a public Brazilian university that offers programs in the same level and area. Likewise, Master 's and 
Doctor 's Degrees issued by foreign universities must be recognised by a Brazilian university (either 
public or private) that offer s graduate programs in the same area and the same or higher level.  
 
Due to the principle of universities ' autonomy, Brazil does not sign automatic 
revalidation/recognition agreements with any country or region. Universities are however free to 
sign direct agreements with their foreign counterparts that may accelerate these processes.  
 
The remarks from the Report (paragraphs 4.307 -4.308) concerning the complexity and duration of 
the revalidation procedures are based on a 2013 report from the WTO. Since then,  the Brazilian 
government has been putting considerable effort towards simplifying revalidation/recognition 
processes, while maintaining universities ' autonomy in the matter.  
 
Established in 2008, the Regional University Accreditation System of MERCOSUR ( ARCUSUR) is a 
mechanism for quality assessment within the MERCOSUR Educational Sector that aims at promoting WT/TPR/M/432/Add.1  
 
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academic and professional mobility in the region, providing simplified procedures for the 
revalidation/recognition of titles issued by participatin g universities.  
 
Most importantly, in 2017 the Brazilian Ministry of Education launched the Carolina Bori Platform, 
an electronic system that compiles all relevant information regarding recognition/revalidation of 
foreign titles and stipulates specific tim e limits for universities to analyse requests. Additionally, the 
system incorporates fast -track procedures that apply to a number of revalidation/recognition cases, 
such as diplomas that were already revalidated by other Brazilian universities in the previ ous 5 
years, diplomas from students that benefit ed from official Brazilian scholarships to study abroad, or 
diplomas from foreign institutions accredited in the ARCUSUR. Through the Carolina Bori platform, 
revalidation/recognition processes must be conclud ed within 180 days in the regular procedure, or 
90 days in the simplified procedure.  
 
In July 2022, the National Council of Education, a federal government body linked to the Ministry of 
Education, issued a new resolution (Resolução CNE/CES n 01/2022) wit h general guidelines for 
revalidation/recognition processes, to which all universities must comply. The resolution renders the 
processes more predictable and timely.  
 
Specifically concerning Fintech companies, Brazilian Central Bank has been providing the financial 
sector with efficiency and inclusion. As of 2016, 74 credit fintechs and 37 payment institutions have 
been authorized to operate in Brazil by the BCB. Since February 2021, the "Open banking" policy 
was regulated in four phases to al low the sharing of data and services among financial institutions, 
payment institutions, and other institutions licensed by the BCB, through the opening and integration 
of systems, aimed to increase competition in the financial sector.  
 
Secretariat Report (S432)  
4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.9  Professional Services  
4.4.9.4  Medical Services  
Paragraph 4.327.  
 
UK Question 36 :  
 
Could Brazil please elaborate on how telemedicine solutions will be assessed and incorporated into 
SUS?  
 
Reply:  
In Jun e 2022, Ordinance N° 1,348 established guidance for the use of telemedicine in the SUS, 
which must be conducted directly between doctors and patients through the use of technology that 
guarantees the integrity, privacy and security of information. Telemedi cine services can be provided 
in both mobile and permanent health facilities ( "Unidades Básicas de Saúde ") that are dully 
registered. A pilot project (UBS Digital) aims at providing mechanism to improve access and 
integration to telemedicine solutions on f acilities in more remote areas.  
 
GOVERNMENT REPORT ( G432)  
Government Report (G432)  
2 General Economic Environment  
2.2 General Legal and Regulatory Framework  
Paragraph 2.10.  
 
UK Question 37 : 
 
Could Brazil please provide more information on how it is encouraging Innovation Public 
Procurement, including how it will bring ethics, inclusion, and diversity into policy for new 
technologies?  
 
Reply:  
The Legal Framework for Science Technology and Innovation (Law no. 13.243/2016 and 
Decree  No. 9283/2018) provi des the legal foundation for technological orders by public institutions. 
This mechanism of Innovation Public Procurement enabled the signature of an Agreement between WT/TPR/M/432/Add.1  
 
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  Oswaldo Cruz Foundation (a public research institute) with AstraZeneca for the productio n of a 
Covid -19 vaccine in Brazil.  
 
Since 2021, Brazil has also a Legal Framework for Startups [4]. The framework presents measures 
to encourage the creation of new innovative companies and establishes incentives for investments 
through the improvement of  the business in the country. The legislation also facilitates procurement 
of innovative solutions by the public sector and brings greater legal security to entrepreneurs and 
investors. With regard to public biddings, joint ventures and subsidiaries the fr amework created a 
special category for startups, with the objective of testing innovative solutions. Prior to this 
modification, many startups faced difficulties or were unable to participate in tenders. The bidding 
for startups should include an indicatio n of the problem to be solved and the results expected by the 
public administration, including the technological challenges to be overcome. The value of the 
agreement may be up to BRL 8 million.  
 
Several initiatives are going on in the field of inclusion and diversity into policy for new technologies. 
The Innovative Women Program [5] is an initiative by Finep and the Ministry of Science, Technology 
and Innovation (MCTI) to encourage startups led by women, in order to contribute to increasing 
female represe ntation in the national entrepreneurial scenario, through training and recognition of 
enterprises that may favor the increase of Brazilian competitiveness. The Innovative Women 
Program offers acceleration aimed specifically at the female audience for up to  30 (thirty) selected 
startups. Since 2005, Brazil has the Women and Science Program [6]. The program encourages 
scientific production and reflection on gender relations, women and feminism in the country and the 
participation of women in the field of scie nce and academic careers.  
 
Brazil has, since 2012, a Quota Law (Law nº 12,711/2012) that guarantees the reservation of 50% 
of enrollments per course in federal universities and federal institutes of education, science and 
technology to students who come e ntirely from public secondary education, in courses regular or 
youth and adult education. The remaining 50% of vacancies remain for broad competition. Some 
institutions have their own systems to benefit students from some specific groups, such as people 
with disabilities, indigenous people and African descendants.  
 
The Brazilian Micro and Small Business Support Service (Sebrae) has a specific program for Black 
community called program Black Start, aimed at Afrobrazilians entrepreneurs with businesses in 
technology. The program aims to contribute to the maturation process of startups led by 
Afrobrazilian people and strengthen the innovation ecosystem. Those selected will participate in 
training workshops, mentorships with market specialists, connection events  and will have access to 
the Sebrae For Startups networks, which has more than 30 programs specialized in supporting all 
phases of a startup.  
 
UK Question 38 : 
 
Could Brazil please provide details on any mechanisms to encourage international innovation, for  
example, for attracting new talent and start -ups to its innovation ecosystem? Additionally, could 
Brazil please explain what support is available to reduce costs and bureaucracy for opening and 
closing start -ups, including international start -ups?  
 
Reply : 
Brazil enacted Complementary Law No. 167, as of 2019, which created the so -called "Inova Simples " 
[1]. Such mechanism allows the opening of startups and other small businesses through a 
governmental website, instantly, without any costs. Such entrepreneu rs are granted with a tax 
number (CNPJ) which allows them to issue invoices for tax purposes. They are also entitled to pay 
taxes under a simplified system called "Simples Nacional ". Inova Simples aims at fostering 
innovative business models.  
 
Besides that , Brazil also enacted Federal Law No. 13,874 as of 2019, known as "Lei da Liberdade 
Econômica ". According to such law, anyone who wants to develop an economic activity qualified as 
low risk ( "baixo risco ") is exempted of obtaining a public authorization to  start their business.  
 
As per international startups, Brazil changed and made it easier the procedure to establish a branch 
of a foreign company in the country (filial de empresa estrangeira). A request must now be filed 
before the Departamento de Registr o Empresarial e Integração - DREI, which will analy se it in order WT/TPR/M/432/Add.1  
 
- 296 - 
 
to grant the authorization. Before this change, the entire procedure took an average of forty -five 
days. Now it takes up to three.  
 
Since 2017, Brazil started the Innovation Diplomacy Program (PDI), carried out by the Ministry of 
Foreign Affairs. The program seeks to break down the stereotypes related to Brazil's image abroad 
and to showcase a country that is able to generate knowledge, goods and services in sectors on the 
scientific frontier. In addition to monitoring public policies, the program includes activities aimed at 
raising Brazil's profile in foreign innovation ecosystems, including identifying partnerships in the 
scientific field, attracting investments, supporting the internationalization of startups, mobilizing the 
Brazilian scientific diaspora abroad, and fostering collaboration between Brazilian and foreign 
technology innovation areas, among others.[3]  
Brazil has a "Startup Visa " to entrepreneurs engaged in innov ation activities. To do so, it is necessary 
to obtain a prior residence permit issued by the Ministry of Justice and Public Security (General 
Coordination of Labor Immigration), whose requirements are set out in Normative Resolution (RN) 
13/2017 of the Nat ional Immigration Council. The request for authorization is facilitated by the 
possibility of being carried out over the Internet, on the Migrante Web portal 
(http://migranteweb.mte.gov.br/ ). The RN 13/2017 al lows the granting of prior authorization for 
"entrepreneurs who intend to settle in Brazil with the purpose of investing in innovation, basic or 
applied research, of a scientific or technological nature", provided that the investment "is not less 
than BRL 150,000.00 (one hundred and fifty thousand reais)". In addition to submitting a business 
plan with a 3 -year execution period, the investor must meet at least one of the following conditions: 
I - have received investment, financing or resources directed at supporting innovation from a 
government institution; II - be located in a technological park; III - be incubated or be a graduated 
enterprise; IV - have been a finalist in a government program in support of startups; or V - have 
benefited from a startup ac celerator in Brazil.  
Since 2021, Brazil has a "digital nomads visa " regulated by Normative Resolution CNIG/MJSP  No. 45, 
of 9 September 2021, provided for the granting of a temporary visa and residence permit for 
immigrants, without an employment relationsh ip in Brazil, whose professional activity can be carried 
out remotely, called "Nomade Digital". Digital nomad is the meaning used to describe the traveler 
who intends to carry out remote work residing in a third country. The regulation of the visa to be 
granted to the digital nomad offers legal security to foreign nationals who wish to reside in the 
national territory, in addition to contributing to the transfer of income from abroad to Brazil.  
Source:  
[1]https://www.gov.br/empresas -e-negocios/pt -br/inova -simples . 
[2]https://www.gov.br/pt -br/noticias/financas -impostos -e-gestao -publica/2022/03/plataforma -
gov-br-impulsiona -abertura -de-filiais-de-empresas -estrangeiras -no-
brasil#:~:text=%E2%80%9CHoje%2C%20as%20empresas%20estrangeir as%20conseguem,neg
%C3%B3cios%20no%20Brasil%E2%80%9D%2C%20explica . 
[3]https://www.gov.br/mre/en/subjects/science -technology -and-innovation/inno vation -diplomacy -
program . 
[4]https://www.in.gov.br/en/web/dou/ -/lei-complementar -n-182-de-1-de-junho -de-2021-
323558527 . 
[5]http://www.finep.gov.br/apoio -e-financiamento -externa/programas -e-
linhas/mulheresinovadoras   
[6]https://www.gov.br/cnpq/pt -br/acesso -a-informacao/acoes -e-programas/programas/mulher -e-
ciencia/mulher -e-ciencia . 
 
UK Question 39:   
 
Could Brazil please confirm if the simplification of import procedures for goods and research inputs 
also considers other complex local taxation across different states, besides import tax exemption 
that still affects the overall costs in internalising merchandise into Brazil?  
 
Reply:  
In general, the ICMS (Tax on Circulation of Goods and Services), which is a State tax that has 
different rates depending on the destination of the goods, applies to all imports. Although this tax is 
established by each State, the regulations have similar c haracteristics. There is differentiation WT/TPR/M/432/Add.1  
 
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  regarding some exemptions and rates, as explained, but the composition of the ICMS calculation 
base must consider the value of the goods contained in the import document.  
 
Government Report (G432)  
2 GENERAL ECONOMI C ENVIRONMENT  
2.2 General Legal and Regulatory Framework  
2.2.5  State -owned enterprises and privatization  
 
UK Question 40 :  
 
Could Brazil please clarify how its laws governing the activities of state -owned enterprises are 
implemented and enforced at both the federal and state/municipal levels?  
 
Reply:  
In line with federal laws, the state governments implement the regulations by publishing state 
decrees. Monitoring is carried by the state comptroller´s offices.  
 
Government Report (G432)  
2 GENERAL ECONOMIC ENVIRONMENT  
2.2 General Legal and Regulatory Framework  
2.2.5  State -owned enterprises and privatization  
Paragraph 2.45. (SOE Governance Indicator IG -SEST)  
 
UK Question 41 :  
 
Could Brazil please clarify the criteria that IG -SEST uses to assess "the fulfilm ent of legal, infralegal 
and good governance practices by SOEs"? Does this instrument apply to SOEs at both the federal 
and state/municipal levels of government?  
 
Reply:  
IG-Sest methodology includes 3 dimensions that are made up of Blocks with Evaluation I tems 
(questions). All groups receive weights according to their relevance, acuity and complexity of 
execution. The results are assessed by Sest members and independent members, who play an 
advisory role in analyzing the items. This dual committee promotes more transparency and greater 
reliability to the results. IG -Sest remains an instrument in use only for federal companies.  
 
Government Report (G432)  
2 GENERAL ECONOMIC ENVIRONMENT  
2.2 General Legal and Regulatory Framework  
2.2.6  Government Procurement  
Paragraph 2.55.  
 
UK Question 42 : 
Section 2.55 of Brazil's Government Report states that the Public Procurement National Platform 
(PNCP) website publishes public procurement information. Could Brazil please indicate whether it 
plans to enable re viewing in English on this website?  
 
Reply:  
The National Public Procurement Portal (PNCP) was created as an official website for the centralized 
and mandatory disclosure of the acts required by the procurement law. With its exclusive and 
mandatory use from  April 2023, the PNCP shall also offer a unified information system which might 
be eventually adapted to increase the publicity of tenders, such as automated translation of 
summary notices for covered procurement into a WTO language, in line with GPA requi rements.  
 
Government Report (G432)  
2 GENERAL ECONOMIC ENVIRONMENT  
2.2 General Legal and Regulatory Framework  
2.2.6  Government Procurement  
Paragraph 2.56.  
 WT/TPR/M/432/Add.1  
 
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UK Question 43 : 
 
Section 2.56 of Brazil's Government Report states that there are two platforms for bidders to view 
procurement information. Could Brazil please indicate whether it plans to enable reviewing in English 
on this website?  
 
Reply:  
Those platforms will be in full interaction with the National Public Procurement Portal (PNCP), whi ch 
was created as an official website for the centralized and mandatory disclosure of the acts required 
by the procurement law. With its exclusive and mandatory use from April 2023, the PNCP shall also 
offer a unified information system on statistics with an open data format.  
 
Government Report (G432)  
3 TRADE POLICY DEVELOPMENTS (2017 -21) 
3.1 Latest Developments in Brazilian Foreign Trade  
Paragraph 3.3.  
 
UK Question 44 : 
 
Could Brazil please explain what due diligence it is undertaking to ensure manufacturing exports do 
not contribute to deforestation?  
 
Reply:  
Brazil has developed a consistent policy framework for the protection and sustainable use of 
biodiversity, including Law 9.985/2000, which establishes the National System of Protected Areas,  
the Forest Code of 2012, which regulates the protection of private forests and establishes the Rural 
Environmental Registry - CAR, and Law 13.123/2015 on the equitable sharing of benefits arising 
from the use of genetic resources and associated traditiona l knowledge. In this sense, the National 
Investment Committee (Coninv) approved the development of an Action Plan on Responsible 
Business Conduct (PACER) as part of the National Investment Plan 2020 -2022, in which initiatives 
related to low carbon policies  are being inserted in order to promote more and more qualified 
investments and encourage the implementation of clean technologies. Recently, in July, Brazil signed 
a Memorandum of Understanding with the CBI - Climate Bonds Initiative. The objective of thi s 
cooperation is to use the taxonomy of the institution, which is already a reference for the elaboration 
of the environmental taxonomy of the European  Union , for example, to demonstrate the comparative 
sustainability of several Brazilian export products.  
 
Government Report (G432)  
3 Trade Policies and Practices by Measure  
3.3 Measures directly affecting imports  
Paragraph 3.11.  
 
UK Question 45 : 
 
Brazil's Government Report states that Brazil has undertaken efforts to reduce the cost of 
government interventio n on foreign trade operations to the minimum necessary to guarantee that 
public policies are properly applied – in line with provisions set forth in the Economic Freedom Act, 
and in the WTO's Trade Facilitation Agreement. Could Brazil please confirm if and  when it intends to 
extend these efforts to imports regulated by MAPA and inspected by VIGIAGRO, particularly with 
regard to the enforcement of Normative Instruction no. 67 of 2018 for products such as beverages 
(non-alcoholic and spirits)?  
 
Reply:  
The ado ption of trade facilitation measures in Brazil is an ongoing practice that involves the adoption 
of new rules or the revision of previous ones. Brazil invites the United Kingdom to inform the Brazilian 
government, through the appropriate channels, any diff iculties it is experiencing in exporting 
non-alcoholic beverages and spirits.  
 
UK Question 46 :  
 
Could Brazil please confirm if and when it intends to extend these efforts to imports regulated by 
MAPA and inspected by VIGIAGRO, particularly with regards to  the enforcement of Normative WT/TPR/M/432/Add.1  
 
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  Instruction no. 67 of 2018 for products such as beverages (non -alcoholic and spirits)?  
 
Reply:  
Please refer to answer n. 45.  
 
Government Report (G432)  
3 TRADE POLICY DEVELOPMENTS (2017 -21) 
3.4 Participation in the WTO  
3.4.4  Trade and Environmental Sustainability Structured Discussions (TESSD)  
Paragraph 3.27.  
 
UK Question 47 :  
 
Brazil announced it would join the Trade and Environmental Sustainability Structured Discussions 
(TESSD) during MC12. Could Brazil please indicate how it will utili ze its role in the TESS -D discussion 
to push forward discussions on climate change and trade? For example, regarding trade -related 
climate measures and environmental goods and services.  
 
Reply:  
Brazil will utili ze its role in the TESSD discussion to emphasize the need to respect the principle of 
common but differentiated responsabilities, which is the conerstone of every environmental 
agreement. Furthermore, Brasil will stress the need to take into account all Sustainable Developme nt 
Goals when designing trade related climate measures.  
 
Government Report (G432)  
3 TRADE POLICY DEVELOPMENTS (2017 -21) 
3.5 MERCOSUR  
Paragraph 3.39  
 
UK Question 48 :  
 
With reference to the mutual recognition agreement on the qualification of certain professional 
services that was reached in 2021, could Brazil please provide more information on the professions 
that are included in the agreement? Additionally, could Brazi l please indicate whether this agreement 
establishes automatic recognition, or simply defines the process for regulators to engage in?  
 
Reply:  
The referred mutual recognition agreement, signed on July 2022 by all MERCOSUR States, provides 
for the establis hment of a mechanism of reciprocal recognition of certificates and qualification for 
agronomy, surveying, architecture, geology and engineering. The agreement institutes procedures, 
conditions, and general guidance for the regulators on the recognition pro cess, including the 
establishment of focal points. The agreement does not establish automatic recognition.  
 
Government Report (G432)  
3 TRADE POLICY DEVELOPMENTS (2017 -21) 
3.5 MERCOSUR  
Paragraph 3.44.  
 
UK Question 49 :  
 
Could Brazil please explain how it is meeting its commitment as a MERCOSUR member to facilitate 
the active participation of civil society and social movement in discussing public policies in the areas 
of labour and human rights? Could Brazil please also indicate the extent to which these en gagements 
are having an impact on policy development in these areas?  
 
Reply:  
MERCOSUR has legal mechanisms that enable civil society to take part in the meetings of its fora, 
such as the GMC Resolution Nº 53/2019, which prescribes the modalities and conditions according 
to which the private sector and civil society are allowed to p articipate in MERCOSUR meetings. This 
mechanism is especially relevant in the Work Subgroup Nr. 10, which handles labor, employment 
and social security. Furthermore, it is worth noting that the Ouro Preto protocol, in its first Article, 
defines the Economi c-Social Consultative Forum (FCES) as part of the institutional structure of the WT/TPR/M/432/Add.1  
 
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bloc. The FCES, in activity since 1996, congregates business representatives, unions and civil society 
and aims to contribute to the economic and social progress of the region  in cooperation with the 
Common Market Group (GMC).  
 
Finally, MERCOSUR has been endeavoring to bring closer the societies of the member states. 
Examples of this effort are the publication of the MERCOSUR Citizenship Statute in 2021, which 
assembles the rig hts granted to the citizens of member states by the bloc 's normative. Likewise, the 
Political Consultation and Coordination Forum (FCCP) has been promoting events in each MERCOSUR 
'pro tempore ' presidency about relevant social themes, such as border integr ation, sustainable 
development, and justice and security, in order to enable dialog and exchange of information 
between pundits and groups of interest of the member states and collect inputs for MERCOSUR policy 
making.  
 
Government Report (G432)  
4 TRADE IN STITUTIONAL AND REGULATORY FRAMEWORK   
4.1 Cross -Cutting Issues  
4.1.1  Implementation of good regulatory practices  
 
UK Question 50 :  
 
The UK welcomes the approach to transparency of regulation and the adoption of Good Regulatory 
Practices, including a focus  on the use of Regulatory Impact Assessments. However, in their Review 
of Regulatory Reform in Brazil, the OECD note that different regulatory quality tools, including 
consultation, could be more fully utilised to ensure the effective participation of citi zens and 
consumers in the development of regulation. Could Brazil please provide further information on the 
action plan it is developing in response to the OECD report, and how this will extend to the 
participation of international stakeholders?  
 
Reply:  
Seeking to achieve greater alignment with respect to the social participation process, or at least the 
use of minimum criteria for social participation, SEAE/Ministry of the Economy launched the "Guia 
de Engajamento e Participação Social " ("Social Participat ion and Engagement Guide "). It aims to 
bring Brazil closer to the best international practices, including with regard to OECD guidelines, 
seeking to help those involved in the management of processes in which the contribution of the 
public is relevant in t erms of decision -making.  
 
In addition to providing a clear view of the relevant considerations in the design and implementation 
of a significant public participation program, it presents regulatory bodies and public administration 
in general with guideline s regarding the approach, methods and tools to be used within their 
regulatory procedures and elaboration of the Regulatory Impact Analysis (RIA). Finally, it seeks to 
move forward in order to encourage greater approximation and greater response to the dem ands of 
stakeholders, especially those affected, from the beginning of the regulatory process and, whenever 
possible, through deliberative processes.  
 
Another point refers to the Brazil -United States protocol. In this case, Decree No. 11,092, of 2022, 
regulated the Trade and Economic Cooperation agreement between the Government of the 
Federative Republic of Brazil and the Government of the United States of America related to 
Commercial and Transparency Rules, enabling the practical application of the intern ational act. 
Within the process of transparency and social participation, the Decree requires public consultation 
and the publication of data from the Regulatory Impact Analysis (RIA) related to edited normative 
acts. 
 
Decree n. 11.243/2022 was recently en acted in order to support the implementation of the Protocol. 
It allows the participation of foreigners in public consultations.  
 
Government Report (G432)  
4 TRADE INSTITUTIONAL AND REGULATORY FRAMEWORK   
4.1 Cross -Cutting Issues  
4.1.2  Technical regulations and standards  
Paragraph 4.10.  
 WT/TPR/M/432/Add.1  
 
- 301 - 
 
  UK Question 51 : 
 
Could Brazil please indicate what action it is taking to engage with the Program for the Endorsement 
of Forest Certification Schemes?  
 
Reply:  
Inmetro submitted the request for evaluation of Cerfl or (the Brazilian Forest Certification Program) 
to the PEFC Council for the first time in October 2004 to obtain its international recognition. After 
the entire evaluation process of the Brazilian Program, public consultation with interested parties, 
Cerflor documentation on the PEFC website [ http://www.pefc.org ], the PEFC Steering Committee 
recommended the Program's member countries to recognize the Brazil's forest certification system. 
The result of the Cerflor recognition vote was announced at the 9th PEFC General Assembly held in 
Brussels on 28 October  2005 f or a period of 05 years.  
 
In 2011, Inmetro had its recognition renewed and in 2022 it is undergoing a new recognition renewal 
process, having already taken some steps to achieve it ( https://pefc.org/discover -pefc/our -pefc-
members/national -members/instituto -pro-manejo -florestal ). 
 
Government Report (G432)  
4 Trade Institutional and Regulatory Framework  
4.1 Cross -Cutting Issues  
4.1.2  Technical regul ations and standards  
Paragraph 4.14.  
In 2021, ANVISA was re -elected as member of the ICH Management Committee reaffirming Brazil's 
commitment to international cooperation and coordination in regulatory harmonization.  
 
UK Question 52 :  
 
Could Brazil please  elaborate on the implementation of ICH guidelines, citing which stage Brazil is 
in and the expected next steps and timeline?  
 
Reply:  
Brazil would like to refer to its implementation of ICH guidelines available in the ICH Website, which 
is updated twice a year. 
 
UK Question 53 : 
 
Could Brazil please clarify whether ANVISA is proactively searching reliance mechanisms and the 
priority countries considered in this process?  
 
Reply:  
Anvisa is currently working in reliance frameworks under the umbrella of Resolution RDC 741/2022. 
Each specific unit/office is working in its own specific framework according to the product category 
(medicines, medical devices, e.g.) and procedure (registration, inspection, e.g.). The reference 
authorities may vary according to  the product category and procedure. Priority is given to authorities 
participating in International Harmonization initiatives, such as ICH and PIC/s.  
 
UK Question 54 :  
 
Could Brazil please clarify whether ANVISA foresees that temporary measures adopted du ring the 
pandemic will become permanent, streamlining the issuing of Good Manufacturing Practices (GMP) 
certification?  
 
Reply:  
Anvisa is currently working in the reliance framework for GMP certification. The experience gained 
with reliance practices used d uring the pandemic is an input for the framework elaboration.  
 
Government Report (G432)  
4 TRADE INSTITUTIONAL AND REGULATORY FRAMEWORK   
4.1 Cross -Cutting Issues  
4.1.5  Competition Policy  
 WT/TPR/M/432/Add.1  
 
- 302 - 
 
UK Question 55 :  
 
Could Brazil please clarify which measures it un dertakes to ensure that its competition law, including 
in relation to antitrust enforcement, mergers, and cartels, is implemented and enforced at federal 
and municipal levels?  
 
Reply:  
CADE 's Cease and Desist Agreements (Law 12.529/2011 (Competition Law), A rticle 85.8) and 
CADE 's decisions (Competition Law, Article 93), imposing a fine or an obligation to do or not to do, 
are extrajudicial enforcement orders. As such, CADE 's Cease and Desist Agreements and 
CADE 's decisions are implementable and enforceable a t federal, state and municipal levels. If a 
Cease and Desist Agreement is not complied with, CADE enforces the sanctions provided for therein 
and determines the continuation of the administrative proceeding and other administrative and 
judicial measures fo r the enforcement thereof (Competition Law, Article 85.11) In case of non -
compliance of a decision, the President of CADE 's Administrative Tribunal is informed. He then 
determines the Attorney 's General Office at CADE to arrange for the decision 's judicial  enforcement 
(Competition Law, Article 81). Enforcement of exclusively fine -related decisions are carried out as 
set forth by Law 6.830/80 (Competition Law, Article 94). The enforcement of CADE 's decisions occurs 
at the Federal District 's Federal Court, De fendant 's headquarters or the district in which the 
Defendant is resident, at CADE 's choice (Competition Law, Article 97). The enforcement of CADE 's 
decisions takes precedence over other kinds of lawsuits, except habeas corpus  and writ of mandamus 
(Competition Law, Article 101).  
 
Government Report (G432)  
4 TRADE INSTITUTIONAL AND REGULATORY FRAMEWORK   
4.1 Cross -Cutting Issues  
4.1.7  Intellectual Pro perty  
Paragraph 4.64.  
 
UK Question 56 : 
 
Paragraph 4.64 refers to Brazil's forthcoming accession to the Hague system for registering industrial 
designs, and to the launch of a new version of the Industrial Design Manual. Could Brazil please 
provide a timeline on these?  
 
Reply:  
The accession to the Hague system for registering industrial designs is in the final phase: it has 
already legislative approval and it will be in force after the ratification by the President of Brazil. INPI 
plans to launch a new  version of the Industrial Design Manual in the beginning of 2023.  
 
Government Report (G432)  
4 Trade Institutional and Regulatory Framework  
4.2 Sectoral Issues  
4.2.3  Services  
 
UK Question 57 :  
 
Could Brazil please clarify whether it provides subsidies to services sectors, and, if so, could it provide 
a breakdown of the distribution of those subsidies across sectors?  
Reply:  
Please refer to question 58.  
 
UK Question 58 : 
 
Could Brazil please clarify which measures it has implemented to regulate the provision of subsidies 
to service sectors (including to ensure transparency), and how these measures are enforced at both 
the federal and state/municipal levels?  
 
Reply:  
Brazil does provide sector -specific subsidies for services. The Audiovisual Sector Fund (FSA) is  the 
main example, aiming at fostering the audiovisual industry in the country. Such subside is provided 
for by law, which discriminates clearly where and how contributions shall be applied.  WT/TPR/M/432/Add.1  
 
- 303 - 
 
  Government Report (G432)  
4 Trade Institutional and Regulatory Fra mework  
4.2 Sectoral Issues  
4.2.4  Renewable Energy  
Paragraph 4.105.  
 
UK Question 59:   
 
Could Brazil please elaborate on its plans for offshore wind and hydrogen to diversify its energy 
matrix? Could Brazil please explain if it intends to promote auctions of offshore wind in 2023?  
 
Reply:  
Hydrogen  
In recent years, the hydrogen market has bec ome a priority in the climate and energy strategy of 
several countries, as it provides an alternative for hard -to-abate sectors. Due to hydrogen being an 
energy vector, it enables storage and favors the coupling of the energy sector with those of industry 
and transport.  
Brazil has great potential to stand out in this market, given its competitive advantages, with more 
than 80% of the electricity matrix coming from renewable sources. In addition, Brazil has a wide 
range of energy resources that can be used f or the production of low -carbon hydrogen through 
different technological routes.  
The use of hydrogen as an energy vector still presents significant technological and market 
challenges, along its entire energy chain (production, transport, storage, and cons umption). This 
imposes the need for measures directed to address market and industry development concerns. In 
this context, Brazil´s strategic orientation aims to develop a hydrogen economy in the country, in 
harmony with the other sources of our energy ma trix. 
In this sense, the National Energy Policy Council (CNPE) stablished the National Hydrogen Program 
(PNH2) through Resolution No. 6, of 23 June  2022. The objective of PNH2 is to strengthen the 
hydrogen market and industry as an energy vector in Brazil.  
Before CNPE Resolution No. 6, of 2022, other CNPE decisions already identified the strategic role 
that hydrogen can play in a future of decarbonized economies, such as CNPE Resolution No. 2, of 
2021, which defined hydrogen as one of the priority themes fo r investments in research and 
development, and CNPE Resolution No. 6 of 2021, which guided the definition of guidelines for the 
Program.  
In addition, the National Energy Plan - PNE 2050, published in December 2020, which consists of a 
set of studies and gu idelines for the design of a long -term strategy for the Brazilian energy sector, 
presents hydrogen as a disruptive technology, with the following recommendations for the 
advancement of this source:  
●  Design regulatory improvements related to quality, safe ty, transport infrastructure, 
storage, supply, incentive, and use of new technologies; and  
●  Articulate with other international institutions that have initiatives in the area of 
hydrogen  
Offshore Wind  
Brazil has favorable natural endowments for the installation and operation of projects for offshore 
electricity generation. With 7,367 km of coastline and 3.5 million km² of maritime area under its 
jurisdiction, the country has an extensive continental shelf, with shallow waters along the coast. The 
incidence of trade winds, characterized by constant intensity and direction, is present in the 
Northeast region of the country, contributing to the feasibility of offshore wind projects.  WT/TPR/M/432/Add.1  
 
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The National Energy Plan (PNE) 2050 presents scenarios in which an insta lled capacity of electricity 
generation by offshore wind in Brazil would reach around 16 GW by 2050, if there is a 20% reduction 
in the cost of installing this source. This perspective remains even with the indication of high growth 
in onshore wind capacit y in the 2050 scenario.  
Considering the reality of this source in 2022, offshore wind is still not competitive with other 
expansion options. However, this scenario may change, depending on the evolution of the source's 
technological maturity, as well as te chnical -economic, socio -environmental studies and regulatory 
development.  
As one of the great recent highlights that contributed to the evolution of national knowledge about 
offshore wind generation, activities and studies to identify the Brazilian offshor e wind potential 
resulted in the publication, in April 2020, of the Offshore Wind Map - Prospects and paths for offshore 
wind energy ( https://www.epe.gov.br/sites -pt/publicacoes -dados -
abertos/publicacoes/PublicacoesArquivos/publicacao -
456/Roadmap_Eolica_Offshore_EPE_versao_R2.pdf ). 
The RoadMap aimed to identify possible barriers and challenges for  the development of offshore 
wind power in Brazil, as well as better understand different aspects related to this source. For 
instance, it was identified that, for areas with speeds above 7m/s and 100 m high, the potential of 
Brazil would be 697 GW in plac es with a depth of up to 50m - of which 276 GW for depths of up to 
20m and 421 GW for depths of 20m to 50m.  
The following guidelines have already been published, with the goal to establish a pathway for the 
development of offshore ventures in Brazil:  
- Decree No. 10,946, of 25 January  2022, provides for the assignment of use of physical areas for 
the generation of electricity from offshore enterprises;  
- Normative Ordinance No. 52/GM/MME, of 19 October  2022, defines the complementary rules and 
guidelines fo r the assignment of use of areas off the coast, to generate electricity; and  
- Interministerial Ordinance MME/MMA No. 03, of October 119, 2022, creates the guidelines for 
creating the Single Portal of Management of the Use of Offshore Areas.  
At the same ti me, it is envisaged that offshore generation will gradually occupy a place of relevance 
in the Brazilian electricity matrix and boost the generation of jobs over the next few years.  
It should be mentioned that, for 2023, there are no plans for dedicated au ctions for offshore wind 
energy.  
Government Report (G432)  
4 Trade Institutional and Regulatory Framework  
4.2 Sectoral Issues  
4.2.7  Ports and Maritime Transport  
Paragraph 4.130. and 4.131.  
 
UK Question 60 :  
 
Could Brazil please expand on how the Cabotage Transport Stimulation Program 'Br do Mar' will 
foster competitiveness, giving examples of opportunities for foreign companies and the timeline for 
these opportunities?  
 
Reply:  
Law N° 14,301/2022 aims at increasing the use of cabotage transport in the Brazilian territory, 
including by improving the employment of foreign vessels. A certain amount of foreign vessels can 
be bareboat chartered by Brazilian navigation companies to perform cabotage transport, in a 
gradually increasing limit, as well as in  other certain conditions established in its Article  10 of 
Law 9,432/1997. The use of chartered foreign vessels is expected to increase gradually during the 
implementation period of this Law, with a 3 -year window with the number of chartered vessels 
remain ing limited. This law also established the Brazilian Shipping Investment Company, that can 
charter vessels and spare companies to have to invest in their own fleet.  
 WT/TPR/M/432/Add.1  
 
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  Government Report (G432)  
5 Future developments  
Paragraph 5.5.  
 
UK Question 61 :  
 
Could B razil please provide more information on how the new regulatory framework in oil & gas will 
interact with Brazil's UN Nationally Determined Contributions and net -zero goals?  
 
Reply:  
Brazil is a developing country of continental dimensions, whose population  already exceeds 
210 million inhabitants. The current regulatory framework for the oil and gas sector is, therefore, 
aimed at monetizing its reserves, attracting investments, generating jobs, income and government 
participation, which contributes to improv ing the quality of life of its population, especially those 
who need it the most, through social policies that the P&G sector contributes to, directly or indirectly.  
The regulatory framework for operational safety and environmental licensing applied in Bra zil is 
among the most rigorous in the world, guaranteeing the sustainable development of exploration and 
production of oil and natural gas resources.  
Brazil has been establishing itself as a major producer and exporter of oil and natural gas, mainly in 
the offshore environment, with excellent results in terms of greenhouse gas emissions per barrel of 
oil produced, as a result of the low carbon footprint of the operations carried out.  
Recently, the National Environment Council (CONAMA) Resolution 382/2006 wa s updated, enabling 
the construction of FPSOs within the "all-electric " concept, more efficient in terms of of greenhouse 
gases emissions.  
With regard to natural gas, it can serve as fuel for the energy transition to a matrix with lower 
greenhouse gas emissions. Currently, natural gas represents around 13% of the Brazilian energy 
matrix, while other fossil fuels represent around 34%. Thus, there is room for natural gas to increase 
its share in the Brazilian energy matrix.  
It is important to highlight that Brazil has an energy matrix that is one of the cleanest in the world 
– more than 48% of our energy sources are renewable, while the world average is only 14%.  
Government Report (G432)  
5 Future developments  
Paragraph 5.6.  
 
UK Question 62:   
 
Could Brazil please explain which policies it is exploring to achieve industrial decarbonisation, and 
what role explicit carbon pricing might play?  
 
Reply:  
Since 2009, the Brazilian government has had a specific industrial policy targeted t o sectors with 
high emissions of GHG, such as Steelmaking and Cement. "The sectoral plan for the transition to a 
low carbon economy in Brazil" mandated by the national climate law (Lei. 12.187 of 2009), united 
government agencies and private sector represe ntatives with the goal of carbon efficiency of 
industrial processes, pioneered studies about the carbon intensity of the industry, created financial 
incentives and supported the dissemination of low carbon technology. The Ministries of industry, 
Environmen t, and Science and Technology, with financial support from GEF, implemented a project 
for Sustainable Steelmaking and promoted the development and dissemination of sustainable 
charcoal as an alternative to coal in the sector. With the support of the Intern ational Energy Agency 
(IEA), the Cement sector elaborated a roadmap to the adoption of Low Carbon technology in the 
Brazilian industry. Now, the industry is updating this plan toward carbon neutrality.  
 
Brazil was part of the Partnership for Market Readine ss (PMR) and did foundational work for the 
implementation of economic instruments for carbon pricing. Congress is discussing a new law to 
create a national emissions trading scheme to help the economy achieve the goal of carbon 
neutrality. Brazil is in the  process of implementing a regulated carbon market.  WT/TPR/M/432/Add.1  
 
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On 19 May  2022, Decree No. 11,075 was published, establishing the National System for The 
Reduction of Greenhouse Gas Emissions (Sinare) and determining the elaboration of Sectoral Plans 
for Climate Chan ge Mitigation.  
 
The regulation of this System is being elaborated by technicians from the Ministry of Economy and 
the Ministry of the Environment in thematic working groups.  
 
The goal of implementing a regulated carbon market in Brazil is to help the count ry meet its climate 
objectives, enabling the transition to a low -carbon economy.  
 
Government Report (G432)  
5 Future developments  
Paragraph 5.6.  
 
UK Question 63:   
 
Could Brazil please provide more information regarding the creation of a methane market?  
 
Reply: 
Since 2009, the Brazilian government has had a specific industrial policy targeted to sectors with 
high emissions of GHG, such as Steelmaking and Cement.  
"The sectoral plan for the transition to a low carbon economy in Brazil" mandated by the nationa l 
climate law (Lei. 12.187 of 2009), united government agencies and private sector representatives 
with the goal of carbon efficiency of industrial processes, pioneered studies about the carbon 
intensity of the industry, created financial incentives and su pported the dissemination of low carbon 
technology.  
The Ministries of industry, Environment, and Science and Technology, with financial support from 
GEF, implemented a project for Sustainable Steelmaking and promoted the development and 
dissemination of su stainable charcoal as an alternative to coal in the sector.  
With the support of the International Energy Agency (IEA), the Cement sector elaborated a roadmap 
to the adoption of Low Carbon technology in the Brazilian industry. Now, the industry is updating 
this plan toward carbon neutrality.  
Brazil was part of the Partnership for Market Readiness (PMR) and did foundational work for the 
implementation of economic instruments for carbon pricing. Congress is discussing a new law to 
create a national em issions trading scheme to help the economy achieve the goal of carbon 
neutrality.  
Currently, Brazil is in the process of implementing a regulated carbon market, which will allow the 
negotiation of carbon credits and methane (carbon equivalent) credits. On 19 May  2022, as a first 
step of this process, Decree No. 11,075 was published, establishing the National System for the 
Reduction of Greenhouse Gas Emissions (Sinare). The regulation of this System is being elaborated 
by technicians from the Ministry of Ec onomy and the Ministry of the Environment in thematic working 
groups, which will define in the future which sectors will be covered. The goal of implementing a 
regulated carbon market in Brazil is to help the country meet its climate objectives, enabling t he 
transition to a low -carbon economy.  
  WT/TPR/M/432/Add.1  
 
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  UNITED KINGDOM - FOLLOW -UP QUESTIONS  
Secretariat  Report  (S432)   
2 TRADE  AND INVESTMENT  REGIMES  
2.3 Trade  Agreements  and Arrangements  
2.3.2  Regional  trade  agreements  and preferential  trade  arrangements  
2.3.2.1  MERCOSUR  
UK Question  4: The UK understands  that Brazil  does not recognise  the Geographical  Indication  (GI) 
for Scotch  Whisky.  This, unfortunately,  limits  the intellectual  protection  for this product.  Could  Brazil  
please  indicate  whether  they are evaluating  the possibility  of granting  GI registration  to Scotch  
Whisky,  which  will protect  Brazilian  consumers  from the sale of misleadingly  labelled  products?  
Brazil  Reply :  
Yes, Brazil  is evaluating  the possibility  of granting  GI registration  to Scotch  Whisky.  
UK Question  4 Follow -Up: Could  Brazil  please  clarify  what stage  of the process  they are at for 
evaluating  GI at this point and when  they expect  this to be concluded?  
REPLY:  
The GI evaluation  process  contains  two phases:  the preliminary  examination  (which  verifies  if the 
applicant  presented  all required  documents,  according  to the Brazilian  legislation)  and the content  
examination  (which  evaluates  the substance  of the application).  The aforementioned  GI application  
is currently  going  through  the preliminary  examination  phase.  The Brazilian  authority  for industrial  
property  (Instituto  Nacional  de Propriedade  Industrial  - INPI) has required  that the application  be 
amended  and has specified  a deadline  for receiving  the revised  version  of the documents.  
Subsequently,  the analysis  will observe  the legal timeframe  for this subject,  established  by the INPI 
Decree  number  4, published  on 12 January  2022 (PORTARIA/INPI/PR  Nº 04). 
 
Government  Report  (G432)   
4 Trade  Institutional  and Regulatory  Framework  
4.1 Cross -Cutting  Issues  
4.1.2  Technical  regulations  and standards  
Paragraph  4.14.  
In 2021,  ANVISA  was re-elected  as member  of the ICH Management  Committee  reaffirming  Brazil 's 
commitment  to international  cooperation  and coordination  in regulatory  harmonizatio n.  
UK Question  52: Could  Brazil  please  elaborate  on the implementation  of ICH guidelines,  citing  
which  stage  Brazil  is in and the expected  next steps  and timeline?   
 
Brazil  Reply : Brazil  would  like to refer to its implementation  of ICH guidelines  available  in 
the ICH Websi te, which  is updated  twice a year. 
UK Question  52 Follow -Up: Thank  you for your response  signalling  the ICH guidelines  available  
on the ICH website.  On the website,  there are some  guidelines  which  have not been implemented  
by ANIVSA  yet. Some  of these  are past the deadline.  Could  Brazil  please  clarify  if this is due to 
specific  barriers?  For those  with implementation  deadlines  in the future,  please  could  Brazil  clarify  
how these  will be prioritised?   
REPLY:  
The revision  of existing  regulation  is planned  according  to the Brazilian  Government  Good Regulatory  
Practices  and to Anvisa 's Regulatory  Agenda,  available  at https://www.gov.br/anvisa/pt -
br/assuntos/regulamenta cao/agenda -regulatoria . All revised  resolutions  (technical  regulations)  are 
aligned  and harmonized  with ICH guidelines.  The issuing  of new resolutions  also follows  the principle  
of alignment.  The decision  to include,  revise  or issue a legislation  does not take into account  specific  WT/TPR/M/432/Add.1  
 
- 308 - 
 
barriers.  The topics  are selected  according  to scientific  developments,  health  needs  or regulatory  
gaps,  as well as human  resources  and expertise  available  to conduct  this process.  
UK Question  54: Could  Brazil  please  clarify  whether ANVISA  foresees  that temporary  measures  
adopted  during  the pandemic  will become  permanent,  streamlining  the issuing  of Good 
Manufacturing  Practices  (GMP)  certification?  
 
Brazil  Reply : Anvisa  is currently  working  in the reliance  framework  for GMP certification.  The 
experience  gained  with reliance  practices  used during  the pandemic  is an input for the 
framework  elaboration.  
UK Question  52 Follow -Up: Could  Brazil  please  provide  an update  on the expected  deadline  for 
the completion  of this framework?  
REPLY:  
Anvisa  follows  good regulatory  practices.  
The draft technical  document  was completed,  and it will now undergo  internal  procedures  for 
approval  by Anvisa 's Board  of Directors,  which  is expected  to take place on December  2022.  After 
approval  by the Board of Directors,  the draft will be open for public  consultation  and comments  for 
at least 60 days.  The review  of the contributions  and the final document  should  be published  by May 
2023.  
 
Secretariat  Report  (S432)  
4 TRADE  POLICIES  BY SECTOR  
4.1 Agricultur e, Forestry  and Fisheries  
4.1.4  Domestic  Support  
4.1.4.4  Other  Measures  
4.1.4.4.3  Zoning,  land,  and other  requirements  
Paragraph  4.48.  
UK Question  28: Could  Brazil  please  indicate  how they measure  environmental  sustainability,  and 
how successful  it has been in linking  agricultural  support  to environmental  sustainability?  Could  
Brazil  please  explain  what action  it is taking  to mitigate  emissions  and biodiversity  loss from farming  
and land use change?  
 
UK Question  28 Follow -Up: Could  Brail please  explain  which metrics  they are using  to determine  
whether  their ABC+  policy  is successful?   
REPLY:  
Brazil  has been encouraging  the adoption  of sustainable  production  technologies  since 2010,  with 
the adoption  of the ABC Plan, originally  valid for the period  2010 to 2020.  For the period  2020 to 
2030,  a new ABC Plan was launched  in 2021,  now called  the Sectoral  Plan for Adaptation  to Climate  
Change  and Low Carbon  Emission  in Agriculture  and Livestock  Production  (ABC+).  
The ABC+  presents  new conceptual  bases,  which were elaborated  from the lessons  learned  in its 
first decade.  In this new phase,  the Plan also started  to stimulate  the adoption  and maintenance  of 
practices,  products,  processes  and sustainable  production  systems  (SPSabc),  which  contribute  to 
the mitigation  of GHG,  namely:  Practices  for Recovery  and Renovation  of Degraded  Pastures  (PRPD);  
Crop-Livestock -Forestry  Integration  Systems  (ILPF);  Agroforestry  Systems  (SAF);  Planted  Forests  
(FP); Bio-inputs  (BI); Irrigated  Systems  (IS); Livestock  Waste  Managem ent (MRPA).  
To expand  the incentives  and the adoption  of SPSabc,  ABC+  has innovated,  seeking  to expand  the 
offer of new sustainable  production  technologies,  such as No-Till Vegetable  Growing  System  (SPDH),  
Irrigated  Systems  (IS), and Intensive  Finishing  (IT). It also established  an Operative  Plan with four 
programs  (Program  for Access  to Credit  and Financing;  Program  to Stimulate  the Adoption  and 
Maintenance  of SPSabc;  Program  for Strategic  Cooperation;  and Program  for Valuation  and 
Recognition)  and five strategies  (Technical  Assistance  and Rural Extension  Strategy  (ATER),  Capacity  WT/TPR/M/432/Add.1  
 
- 309 - 
 
  Building  and Technology  Transfer;  Communication  and Awareness  Raising  Strategy;  Governance,  
Monitoring  and Evaluation  Strategy;  Climate  Risk Management  and Mitigation  Intelligence  Strategy;  
and Research,  Development  and Innovation  Strategy).  
 
Secretariat  Report  (S432)   
4     TRADE  POLICIES  BY SECTOR   
4.4    Services   
4.4.9   Professional  Services   
4.4.9.1  Legal  services  
Paragraph 4.312  
UK Question : Could  Brazil  please  explain  the reasons  for why a foreign  law consultancy  firm may 
not enter  into a partnership  with a Brazilian  attorney  practicing  Brazilian  law or hire Brazilian  lawyers  
unless  employed  as foreign  law consultants?   
REPLY:  
According  to relevant  legislation,  a foreign  law consultancy  firm can only be established  in Brazil  if 
composed  exclusively  by foreign  law consultants,  with the exclusive  purpose  of providing  
consultancy  in foreign  law. The licence  to a foreign  professional  to practice  foreign  law consultancy  
prohibits  them from providing  consultancy  in Brazilian  law. The practice  of legal services  by foreign  
lawyers  in Brazil  shall be subject  to the relevant  regulatory  framework,  particularly  OAB ("Brazil  Bar 
Association ") Ordinance  91/2000.  
 
Secretariat  Report  (S432)   
4     TRADE  POLICIES  BY SECTOR   
4.4    Services   
4.4.9   Professional  Services   
4.4.9.1  Legal  services  
Paragraph 4.313  
UK Question : Could  Brazil  please  clarify  whether  the reciprocal  agreement  with Portugal  refers  to 
the practice  by Portuguese  lawyers  in Brazil  of Portuguese  or other  foreign  law; the practice  of 
Brazilian  law; or both?  
 
REPLY:  
According to the reciprocal agreement with Portugal, a Portuguese lawyer, licensed by the relevant 
professio nal body in Portugal, can require a licence by OAB to practice law in Brazil, subject to 
general requirements established in Law 8,906/1994, among others. They can also practice foreign 
law, subjected to the specific requirements for such practice, establi shed in OAB Ordinance 91/2000.  
  WT/TPR/M/432/Add.1  
 
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MALAYSIA  
GOVERNMENT REPORT  
 
Page 36  
 
4.1.8 Micro, Small and Medium -Sized Enterprises (MSMEs)  
 
4.81 Moreover, the Brazilian government is making efforts towards the implementation of a 
digital platform on trade-related services, called BRAEXP, in partnership with the British 
government, under the Trade Facilitation Programme.  
 
4.82. BRAEXP is designed to be a marketplace that connects different providers and their 
systems, in which MSMEs will be able to do an export maturity assessment and find a wide 
range of export services to attend their needs, from management skills courses and market 
research to financing, insurance and logistics. The project is pioneer in Latin America and 
is grounded in the concept o f "Integrated Services for MSMEs in International Trade" 
(ISMIT), that is the digitization and integration of all services to enable an export.  
 
4.83. This initiative is coordinated by the Ministry of Economy and counts on the participation of five 
other n ational institutions: the Ministry of Foreign Affairs, the Brazilian Trade and 
Investment Promotion Agency (Apex), the Brazilian Micro and Small Business Support 
Service (Sebrae), the Brazilian National Confederation of Industry (CNI) and the Brazilian 
Confederation of Agriculture and Livestock (CNA).  
 
4.84. The Brazilian and British governments have an important partnership under the Trade 
Facilitation Programme to promote inclusive and sustainable economic growth in Brazil 
through the internationalization of the country's MSMEs. The cooperation includes the 
creation of BRAEXP.  
 
Question:  
 
1. Is there a national policy that sets the direction for the development of MSMEs in Brazil?  
 
Reply:  
The Complementary Law 123 from 6 December  of 2006 (National Statute for Micro and Small --sized 
Enterprises) sets the main existing rules in Brazil for micro and small -sized enterprises, as the special 
and differential treatment they shall be given according to the Federal Constitution from 1988. Its 
article 2 states that the Union is competent to formulate a National Pol icy for the development of 
micro and small -sized Entrepreneurs, which is still being drafted.  
 
2. Brazilian MSMEs have been growing through the regional cooperation and expand their 
market in the United Kingdom, United States and Chile. What are the programme s under 
the regional cooperation that explore their potential in gaining access to regional markets?  
 
Reply:  
The framework of The Southern Common Market (Mercosur), under resolution Resolution 59/1998 
of the Common Market Group, provides guidelines to strengthen MSMEs within the bloc.  
 
3. In relation to the BRAEXP digital platform mentioned in para 4.81 -4.84 we seek more 
information about BRAEXP, its scope of application, key elements/components, the services 
it provides/supports, the differe nt stakeholders/parties it connects and how it facilitates 
cross-border e -commerce exports by MSMEs, in particular, the key achievements made to 
date. 
 
Reply:  
The platform BRAEXP is a digital environment in which Brazilian MSMEs can access export -related 
services offered by public and private institutions or third parties of any nationality, including, but 
not limited to, services for export maturity assessment, business training, business intelligence, 
trade promotion, financing, insurance and guarantees, logistics, customs clearance and 
documentation, among others.  WT/TPR/M/432/Add.1  
 
- 311 - 
 
  It contains several modules for integration of services to support the internationalization of MSMEs, 
the three most important of which are related to: (i) a marketplace for offering services, ( ii) a 
platform for publishing and managing online content, and (iii) a set of Application Programming 
Interfaces – APIs – for data exchange with external systems.  
BRAEXP has not been introduced to the public yet. When it is launched, it will start mainly w ith 
services offered by the Ministry of Economy, the Ministry of Foreign Affairs, the Brazilian Trade and 
Investment Promotion Agency (Apex -Brasil), the Brazilian Micro and Small Business Support Service 
(Sebrae), the Brazilian National Confederation of In dustry (CNI) and the Brazilian Confederation of 
Agriculture and Livestock (CNA). Then, services offered by other institutions, whether public or 
private, will be progressively added.  
The platform may facilitate cross -border e -commerce exports by MSMEs, as it is expected that 
BRAEXP will offer services from e -commerce platforms – such as Amazon, Correios, etc. – and also 
services that are related to the engagement, learning and preparation of MSMEs that want to begin 
to export or export more using e-commerce.  
 
Page 37  
 
4.78. Data from the Brazilian National Institute of Statistics (IBGE) indicate the composition of micro 
and small Brazilian companies by the gender of workers and entrepreneurs. It is also 
possible to observe the number of employees b y economic activity in this 
segment  (Table  4.4). 
 
Question:  
 
4. Is there any industry sector that is being prioriti zed in terms of MSME development in 
Brazil?  
 
Reply:  
There is no prioritized sector for MSMEs development in Brazil.    
 
5. Are there any specific policies or programs being implemented that are focused on non -
registered enterprises/informal MSMEs?  
 
Reply:  
Created by Complementar Law No. 128, as of 2008, the Microempreendedor Individual - MEI is one 
of the most successful Brazilian public po licies focused on non -registered enterprises/ informal 
MSMEs. It allows a sole individual whose business make up to 81,000 BRL of annual gross income 
to formally open her/his business. The full procedure is carried out online, without any costs. As a 
MEI, she/he also pay less taxes than any other entrepreneur. According to "Mapa de Empresas "[1] 
(Business Map), 60% of the entrepreneurs in Brazil are organized as MEI. Currently Brazilian 
Congress is discussing increasing the aforementioned threshold to 130,00 0 BRL [2].  
 
However, MEI do not encompasses such cases when more than one individual want to open an 
enterprise together. In view of that, Brazil enacted Complementary Law No. 167, as of 2019, which 
created the so -called "Inova Simples " [3]. Such mechanism  allows the opening of startups and other 
small businesses through a governmental website, instantly, without any costs. Such entrepreneurs 
are granted with a tax number (CNPJ) which allows them to issue invoices for tax purposes. They 
are also entitled to  pay taxes under a simplified system called "Simples Nacional ". Inova Simples 
aims at fostering innovative business models.  
 
Source:  
[1] https://www.gov.br/empresas -e-negocios/pt -br/mapa -de-empresas/painel -mapa -de-
empresas . 
[2] https://exame.com/brasil/mei -pode-ter-novo-limite -de-144-mil-deputados -tentam -acelerar -
projeto -sobre -simples/ . 
[3] https://www.gov.br/empresas -e-negocios/pt -br/inova -simples . 
 
Page 41  
4.2.4 Renewable energy  
 
4.105. Brazil has one of the world's most renewable energy matrixes. According to the National 
Energy Balance (BEN, EPE 2022), 44.7% of the domestic energy supply comes from WT/TPR/M/432/Add.1  
 
- 312 - 
 
renewable sources. The diversification of the energy matrix, which is made possibl e with 
the expansion of the supply of sugarcane derivatives, wind energy and biodiesel is 
contributing to the continuation of this high share. Renewable sources will continue to 
account for a large share of supply, mostly due to the use of hydropower, new renewables 
(wind & solar) and bioenergy, including biofuels. 4.106. Only 30% of Brazil's hydroelectric 
potential has been exploited. The potential for increased production of this renewable and 
affordable energy source is an integral part of the country's long-term strategy for the 
sector. Widespread access to affordable energy is crucial to achieve the goals of sustainable 
development, to promote social inclusion and poverty reduction; to advance national 
integration and the reduction of greenhouse gas emi ssions; and to improve 
competitiveness. Brazil is therefore, investing in research and in new technologies to 
improve the generation, transmission and distribution of energy.  
 
Question:  
 
6. Brazil faced a reduction in rainfall volumes which led to a decrease in hydroelectric 
generation. Given that, does Brazil has any plans to review the expansion of renewable 
energy sources (such as wind, solar and co -generation) for electric production? If yes, what 
are the plans?  
 
Reply:  
The Brazilian leadership in the energy transition is the result of several policies, adopted in recent 
decades, to stimulate the competitiveness of renewable sources, culminating in one of the cleanest 
matrices in the world. It is expected that, by the end of 2022, almost 47% of the ener gy matrix and 
85% of the electricity matrix will have come from renewable sources, almost triple the share than 
the world average.  
This panorama was initially paved by the use of the abundant water resources that the country 
possesses, coupled with the dec ision to diversify sources and interconnect the different regions of 
the country, to ensure greater energy security, since the Brazilian power matrix, predominantly 
hydraulic, has always been impacted by climate effects.  
A recent episode that tested the do mestic energy security was the record water shortage 
experienced in 2021, with the lowest rainfall recorded in the last 90 years. Even in this adverse 
scenario, to which the growth in energy demand resulting from the post -pandemic economic 
recovery was add ed, Brazil met all the demand while maintaining a high renewable profile.  
It is worth mentioning that the Brazilian energy planning for the ten -year horizon is consolidated in 
the Ten -year Energy Expansion Plans (PDEs), revised annually, which consider, in  their updates, 
recent occurrences and lessons learned, to redefine studies for the elaboration of an indicative power 
matrix.  
The last PDE published was PDE 2031, also available in English . 
 
7. What are other significant GHG contributor in Brazil, other than energy sector?  
 
Reply:  
Other significant contributors are, for example, industrial processes, waste treatmen t and land use. 
This is why such sectors are contemplated by Brazil 's NDCs, as can be accessed on: 
https://unfccc.int/sites/default/files/NDC/2022 -06/Updated%20 -%20First%20NDC%20 -
%20%20FINAL%20 -%20PDF.pdf . 
 
Page 46  
 
4.2.8 Telecommunica tions  
 
4.142. The expansion of investments in telecommunications and of mobile and fixed broadband are  
illustrated by recent data of Internet access. According to a 2021 "TIC Domicilios" survey, 
82% of households in Brazil have either fixed or mobile broadband service subscriptions 
in 2021, in comparison to only 61% in 2017. Other initiatives, namely the Wi -fi Brasil 
Program (2021), aimed at increasing Internet coverage and access in underserved areas, 
particularly rural and remote locations, have been  put forward and have helped bridge the 
digital divide within the country. In this regard, the rural population with access to the 
Internet also grew from 34% in 2017 to 71% in 2021. Brazil is home to the 5th largest 
digital population in the world, as 81%  of its population are Internet users.  
 WT/TPR/M/432/Add.1  
 
- 313 - 
 
  Question:  
 
8. As Brazil's digital population is the 5th largest in the world, how did Brazil managed to 
reduce the digital divide in the society and promote digital inclusion in government's service 
provision?  
 
Reply:  
Brazil 's Governemnt in the past years has promoted several initiatives for digital inclusion, such as 
the Brazilian Strategy for Digital Transformation (E -Digital), which can be accessed on " 
https://www.gov.br/mcti/pt -br/acompanhe -o-mcti/transformacaodigital/estrategia -digital ". 
 
According to latest data from the Brazilian Institute of Geography and Statistics (IBGE), 90% of 
households in Brazil have internet access. The Brazilian Strategy for Digital Transformation (E -
Digital) for the period 2022 -2026 (in Portuguese, https://www.gov.br/mcti/pt -br/acompanhe -o-
mcti/transformacaodigital/arquivosestrategiadigital/e -digital_ciclo_2022 -2026.pdf) was launched 
recently, on 16 November  2022, by Ordinance n. 6543 of the Ministry of Science, Technology, and 
Innovation (MCTI), with the aim of co -coordinating and integrating governmental initiatives and 
actions on digital issues within a coherent framework and is structured around the five "enabling " 
pillars of (i) infrastructure and access to ICTs, (ii) research, development, and innovation, 
(iii) building trust in the digital environment, (iv) education, skills, and professional qualification, 
and (v) international dimension; and five cross -cutting digital transformation issues of (i)  digital 
economy transformation, (ii) data -driven economy, (iii) a world of connected devices, (iv)  new 
business models, and (v) digital transformation in the governm ent. 
 
9. What are the Brazilian government's initiatives to increase internet accessibility and reduce 
the cost of telecommunications service for the people?  
 
Reply:  
Within the framework of the Brazilian Strategy for Digital Transformation (E -Digital), there are 
initiatives to attain the following objectives: promote the expansion of the population's access to the 
internet and digital technologies, with quality of service and economy; take high -capacity data 
transport networks to all Brazilian municipalities; expand mobile and fixed broadband access 
networks in urban and rural areas; Disseminate digital inclusion initiatives. To find out more, please 
vist: https://www.gov.br/mcti/pt -br/acompanhe -o-mcti/transformacaodigital/estrategia -digital -
eixoA  and also refer to answer n. 8.  
 
10. Other than investments in telco and connectivity, what are the initiatives by the 
government to bridge the digital divide?  
 
Reply:  
Please refer to answers n. 8 and n. 9.  
 
11. What is Brazil's digital adoption plan or vision for the future and where is Brazil currently 
on this plan?  
 
Reply:  
Instituted by Decree No. 9,319, of 21 March  2018, and amended by Decree No.  9,804, of 
23 May 2019, and Decree No. 10,782, of 30 August  2022, the National System for Digital 
Transformation (SinDigital) is composed of by the Brazilian Strategy for Digital Transformation (E -
Digital), its thematic axes and its governance structure. The Decree of 30 August established the 
strategy to be implemented until 2026.  
 
Page 48  
 
4.154. In 24 September 2021, the largest spectrum offer in ANATEL's history, the so -called "5G 
Auction" (Public Bidding No. 1/2021 -SOR/SPR/CD -ANATEL, regarding the issuance of 
Authorizations for the Use of Radiofrequencies in the 700 MHz, 2.3 GHz, 3.5 GHz and 26 
GHz, with the possibility of granting the Personal Mobile Service – SMP) was approved by 
the Agency's Board of Directors. The Bidding Notice was published in the Officia l Gazette 
of 27 September 2021. The results of the Auction amount for BRL 46.7 billion in fees and 
investment obligations, including the implementation of 5G standalone, coverage of federal 
highways and investment in connectivity projects for public school s. WT/TPR/M/432/Add.1  
 
- 314 - 
 
Questions:  
 
12. The 5th Generation technology has the potential to grow and expand the digital economy. 
What are the Brazilian government's approach towards developing the 5G technology 
infrastructure?  
 
Reply:  
As mentioned in item 4.154, investment obligati ons taken by companies as part of the 5G auction 
process include, among others, expansion of mobile broadband coverage through investments in 5g 
antennae and fiber -optic backhaul network, increasing connectivity for elementary public schools 
both in urban and rural areas, building of private and public communication networks for the federal 
government, and building of eight "info highways " in the Amazon region in the context of the 
program "Connected North " ("Norte Conectado).  
 
13. What are the steps taken or measures put in place by the Brazilian government in 
facilitating the development of emerging technologies such as augmented reality, artificial 
intelligence and smart cities?  
 
Reply:  
The Brazilian Strategy for Artificial Intelligence (EBIA) was launched o n 6 April  2021 by the Ordinance 
n. 4.617 from the Ministry of Science, Technology, and Innovation (MCTI) and updated on 
13 July 2021, by Ordinance n. 4.979 from the MCTI and established the main guidelines for the 
initiatives to be taken by the Brazilian g overnment for the research, development, and innovation 
of AI solutions, as well as for AI ethical and responsible use and adoption.   
 
SECRETARIAT REPORT  
 
Page 40  
2.2.3.2 Transparency and e -government  
 
2.22. Brazil made significant advances in e-government during the review period. It has been moving 
towards digital government by prioritizing policy issues such as connectivity, data 
governance, interoperability, open government data, and citizen -driven service delivery. 
This move began with the publication of the Digital Governance Policy and Strategy in 2016 
and accelerated during the pandemic with the Digital Government Strategy. The launch of 
the revised Digital Governance Policy and Strategy (2016 -19), the main strategy on digital 
government policy providing a framework for programmes and actions, reflected the 
Government's commitment to advance towards a digitally transformed public sector.  
 
Questions:  
 
14. Brazil has established various policies to enhance transparency and promote e -
government.  What are the significant digital government measures implemented to 
improve the efficiency and integrity of public administration?  
 
Reply: 
 
Since 2000, Brazilian government has made an effort to evolve its processes and the provision of 
public services as an aid to Information and Communication Technologies (ICTs). The Program of 
Electronic Government has initiated in Brazil a series of adaptations, innovations and challenges to 
the implementation of better public services.  
Many policies and ini tiatives were created until 2016, but with the publishing of the Strategy of 
Digital Government (EGD, in Portuguese), a new paradigm of public administration was implemented 
for the relationship between the Brazilian state and its society. Debureaucratizat ion, modernization 
of the State, simplification of processes, better access to public information, transparency, better 
public services and rationalization of public expenditure are some advances that the policy of 
electronic and digital governance allow.  
Since 2019, the new Strategy of Digital Government (EGD) has signalled a more vigorous and 
collaborative effort to face possible challenges and deliver a wider range of digital services to the 
population. The aim is a greater improvement of the level of tr ust in the government and its relation 
with the citizens in the digital world.  WT/TPR/M/432/Add.1  
 
- 315 - 
 
  Currently, Brazil celebrates the advances regarding the implementation of new technologies in the 
relationship between the State and the society. Many goals created by the EGD w ere achieved 
(33 out of 59 initiatives – November/22), as the structural platforms of digital government, which 
continue to be improved in the integration of information and systems, as well as the simplification 
and improvement of public services to citiz ens.  
It is important to mention the platform GOV.BR as well, created by Decree 9.756. Its main goal is 
to gather, in the same place, services offered to citizens and information concerning Federal 
Government actions.  
This new perspective aims to forge a suitable relation between the citizen and the State: simple and 
focused on the needs of the user of public services.  
With regard to the improvement of integrity of public administration, Decree 9.203 was published 
by the end of 2017, which created the poli cy of federal administration governance. The article 19 of 
this piece of legislation determines that federal bodies must create a program of integrity, aiming to 
promote the adoption of measures and institutional actions aimed at prevention, detection, 
punishment and the fighting against fraud and acts of embezzlement.  
Furthermore, there was the creation of the Federal Executive Power System of Public Integrity 
(SIPEF, in Portuguese). Its main body is the Office of the Comptroller General of Brazil, which 
establishes norms and procedures to the administration of integrity programs and to the activities 
related to the administration of integrity risks to all these organs.  
Beyond measures indicated above, it is also worth noticing:  
- The consolidation of 622 domains of federal government in a single web site. There are only 
two left to reach the goal;  
- The implementation of means of digital payments for 30% of services. The implementation 
of 25, 51% has already been accomplished;  
  - The establishment of the i nteroperability bus of federal government systems.  
 
15. Are there any targets by the Brazilian Government to improve the government's end -to-
end online services to the public?  
 
Reply:  
Among the goals of the Strategy of Digital Government aimed at the improvement of services, the 
following must be highlighted :  
- Initiative 1.1: Transforming 100% of public services that can be digitalized, until the end 
of 2022. Currently, 86% have already been digitalized.  
- Initiative 1.2: simplifying and facilitatin g the opening, change and closure of companies in 
Brazil in a way that such procedures may be completed in one day, until 2022.  
- Initiative 2.1: offering a means of standardized evaluation of satisfaction to for at least 
50% of digital public services unt il 2022.  
- Initiative 2.2.: improvement of users ' satisfaction of public services and obtaining a 
medium level of at least 4.5 points  in a scale of 5 points until 2022.  
- Initiative 2.3: improvement of the perception of usefulness of information services i n the 
single portal gov.br and achieving, at least, 75% of positive evaluations, until 2022.  
Regarding the principle of integrated government, it is important to mention:  
- Initiative 6.1.: promoting the interoperability of federal government systems, in a way that 
at least 600 public services can dispose of autofill of information related to the Register 
Citizen Base, the National Register of Legal Entities and the Registe r of Postal Addressing, 
until 2022.  
- Initiative 6.2: raising to 20 the quantity of attributes in the citzen 's base register, until 
2022.  
- Initiative 6.3: establishing 15 base registers of reference for interoperability of federal 
government, until 2022.  
- Initiative 6.4: establishing a framework for federal government systems interoperability 
bus until 2020, in a way to guarantee that people, organizations and computational systems 
share their data. It has been already concluded.  
About the framework for intelligent government:  
 - Initiative 9.1: implementation of a mechanism of personalization of digital public services 
offer, based on user profile, until 2022;  
- Initiative 9.2: increase on notifications to citizens in at least 25% of digital services.  
 
Regarding open and transparent government:  
 - Initiative 14.2: improvement of the means for social participation and offering a new 
platform of participation, until 2021.  WT/TPR/M/432/Add.1  
 
- 316 - 
 
Page 41  
 
2.22. Brazil made significant advances in e -government during the review period.31 It has been 
moving towards digital government by prioritizing policy issues such as connectivity, data 
governance, interoperability, open government data, and citizen -driven service delivery. 
This move began with the publication of the Dig ital Governance Policy and Strategy in 2016 
and accelerated during the pandemic with the Digital Government Strategy.32 The launch 
of the revised Digital Governance Policy and Strategy (2016 -19), the main strategy on digital 
government policy providing a f ramework for programmes and actions, reflected the 
Government's commitment to advance towards a digitally transformed public sector.33 The 
Digital Government Strategy (EGD) (2020 -22) is organized in 6 principles, 18 objectives, 
and 58 initiatives, which me ans that the EGD provides the main guide for the transformation 
of government through digital technologies. The EGD seeks to offer simple and better quality 
public policies and services accessible at any time and place at a low cost to the citizen. 
Progres s has been made in the digitalization of government procedures and services. By 
end-2021, over 3,600 government services across all areas could be delivered online, 
equivalent to 73% of the total of federal government services offered (4,955) at the Gov.br  
Platform. The number of users of the Gov.br Platform reached more than 119 million by the 
end of 2021 and it hosts 569 federal government Web domains, including the websites of all 
ministries. Its goal is to eliminate dispersion and improve the experience  of users of public 
services. A National Digital Government Network through which federated entities have 
access to shared digital government platforms was established; as of December 2021, there 
were 16 states, 12 capitals, and 56 municipalities adhering to the Gov.Br Network, which is 
aimed at expanding cooperation and collaboration in structuring digital government 
initiatives. All federal departments must use the Comprasnet portal 
(https://www.gov.br/compras ) before hiring suppliers (Section 3.3.6); under the new 
Bidding Law (Law No. 14,133/21) all public or private procurement portal systems must be 
integrated and in August 2021, the National Public Contracting Portal (PCNP) was lau nched. 
Despite its array of transparency tools, Brazil has initially seemingly been relatively slow to 
adopt innovative e -government technologies to promote transparency and fiscal 
sustainability, particularly at the subnational levels.  
 
Question:  
 
16. Any re ason to the slow adoption rate of e -government technologies?  
 
Reply:  
In what pertains to the adoption of innovative e -government technologies to promote transparency 
and fiscal sustainability, it is important to highlight the National Public Procurement Portal (PNCP), 
which was created as an official website for the central ized and mandatory disclosure of the acts 
required by the procurement law. With its introduction and progressive use from April 2023, the 
PNCP shall also offer, in the medium -term, a unified information registration system from which to 
gather relevant sta tistics from central and subcentral entities. The PNCP can be accessed at 
https://www.gov.br/pncp/ . 
 
Page 53  
2.4 Investment Regime  
 
2.45. Brazil remains open to and encourages FDI, which is prevalent across the economy despite 
foreign ownership limitations in certain sectors (Section 2.4.2). Notwithstanding relatively 
irregular FDI inflows in line with global investment trends due to t rade-restrictive measures 
in foreign markets, recent recession, several leading manufacturing transnationals announcing 
their partial withdrawal (e.g. Ford, Mercedes -Benz, and Sony), disinvestments (Petrobras), 
ongoing political turmoil, and the handling o f the COVID -19 crisis that inter alia  slowed down 
ongoing privatization programmes, Brazil's huge market and natural resources opportunities 
maintained its position as the most attractive investment location in South America, capturing 
47.7% of FDI inflows  (43.4% of FDI stocks) to the region in 2020. Despite some improvement 
in registering property, starting a business, resolving insolvency, bringing expedited business 
registration, and decreasing the cost of the digital certificate, concerns over poor exis ting 
infrastructure, relatively rigid labour laws, complex tax/local content/regulatory requirements, 
high transportation and labour costs, low domestic productivity, and ongoing political 
uncertainties seemingly form part of the extra costs of doing busin ess and hamper investment WT/TPR/M/432/Add.1  
 
- 317 - 
 
  in Brazil. Furthermore, a lack of coordination among federal, state, and municipal agencies is 
seemingly a serious cause for complexity and delays.  
 
Question:  
 
17. What are the main reasons for the partial withdrawal of investments by Ford, Mercedes -
Benz, Sony and disinvestment by Petrobras?  
 
Reply:  
According to Petrobras ' Strategic Plan for the 2022 -2026 period, the divestments are part of an 
active Portfolio management, fundamental to improve the allocation of capital, as it allows Petrobras 
to focus on assets and operations that present higher returns and lower risks. In  its Strategic Plan, 
the Company focus on what it does best, which is the exploration of assets of oil and gas in deep 
and ultradeep waters, especially pre -salt assets, where Petrobras has competitive edges and is able 
to generate more value. Divestments i n E&P are primarily active in international, onshore and mature 
water fields. On the Refining, Gas and Energy segment, Petrobras is in the process of selling 
refineries - focused on complying with an agreement with the antitrust authorities in Brazil - in 
addition to terrestrial gas pipelines, stakes in other companies, oil fuel thermal power plants and 
fertilizers.  
In its Strategic Plan for the 2022 -2026 period, Petrobras plans to maintain production assets focused 
on pre -salt and ultra -deep waters and to keep some refineries in the Southeast region of Brazil. It 
plans to invest a total of US D 68 billion. Of this amount, US D 57.3 billion will be invested in 
exploration and production activities, with a focus on pre -salt exploration and production of new 
frontiers and discovered areas. In the Refining, Gas and Energy segment, investments will reach 
USD 7.1 billion , for the expansion of refining capacity, with a focus on efficiency and new products. 
In the Commercial and Logistics area, investments planned for  the period will total US D 1.8 billion , 
shared between maintenance and diversification of modals to achieve greater agility and efficiency, 
allowing Petrobras to reach markets with greater competitiveness, with an emphasis on safety and 
operational efficie ncy. Additionally, US D 1.8 billion will be invested in corporate processes, with an 
emphasis on digital transformation.  
Regarding Ford, Mercedes -Benz and Sony, the Brazilian government would not be able to comment 
on their decisions, as they are privately -owned companies.  
 
18. What type of investments have still remained in Brazil by the respective companies?  
 
Reply:  
Regarding Ford, Mercedes -Benz and Sony, the Brazilian government would not be able to comment 
on their decisions, as they are privately -owned companies.  
 
Page 69  
 
3.1.4  Other charges affecting imports  
 
3.49. The PIS and COFINS contributions are payable by Brazilian -based: (i) legal persons on their 
gross revenue or turnover; and (ii) importers (natural or legal persons) of goods and services. 
Import -related contributions are assessed on the customs value of goods, whereas for 
imported services the base is the amount (before income tax) paid or remitted abroad, 
augmented by a multiplier term comprising the rates of ISS, PIS, and COFINS .55 Reductions 
to the calculation base are prescribed for imports of certain trucks (by 30.2%) and certain 
vehicles and machinery (by 48.1%). In general, a combined rate of 9.25% (1.65% for PIS 
and 7.6% for COFINS) applies to imported services, whereas imp orts of goods are subject to 
a rate of 11.75% (2.1% for PIS and 9.65% for COFINS).56 Imports of certain goods, including 
pharmaceuticals, cosmetics, machinery and vehicles, new rubber tyres and air chambers, and 
vehicle parts, are subject to higher rates t han their domestically supplied equivalents. In 
addition, non -ad valorem  rates are levied on the importation of soft drink and beer containers, 
and fuels. Provisions for zero -rating or exemption are in place for a wide range of goods.  
 
Question:  
 
19. What are the main reasons for these specific groups of products to have different PIS and 
COFINS taxes?  
 WT/TPR/M/432/Add.1  
 
- 318 - 
 
Reply:  
Some products are subject to the so -called "monophase taxation " of PIS/Cofins. In this form of 
taxation, the tax burden is concentrated on the produc er or importer due tax efficiency matters. The 
other links in the chain are exempt from contributions. This is the case for pharmaceuticals, 
cosmetics, machinery and vehicles, new rubber tyres and air chambers, and vehicle parts. As all 
taxation in the cha in is concentrated only on the producer or importer, the applicable tax rate is 
higher than the modal rate. This applies both to sales on the domestic market and to imports. The 
use of non -ad valorem  rates on the importation of certain products, like fuels and beverages, aims 
to avoid evasion through customs undervaluation. The difference between the general import tax 
rate (11 .75%) and the corresponding tax rate in the domestic market (9 .25%) stems f rom the need 
to offset the effect of the Supreme Court decision that withdrew the ICMS tax from the PIS/Cofins -
Importation calculation basis.  
 
Page 72  
 
3.1.5 Import prohibitions, restrictions, and licensing  
 
3.57. Besides any product -specific import controls, the customs release of consignments shipped to 
Brazil in wooden packaging also requires analysis of the packaging and consent by the 
Ministry of Agriculture, Livestock and Food Supply (MAPA). The analysis may be carried 
out before or after cargo arrival, depending on established procedures at each MAPA local 
unit. MAPA local units have some discretion over the way their operations are organized, 
including with regard to implementing manual or automated processes and using a  risk 
assessment framework for selection of wooden packaging containers to be inspected. As a 
result, at certain border posts all consignments in wooden packaging are physically 
inspected.  
 
Question:  
 
20. Please elaborate the risk assessment framework for woo den packaging containers for 
inspection. Are there any standards or technical regulations that Malaysian exporters need 
to abide by?  
Reply:  
The Ministry of Agriculture, Livestock and Food Supply (MAPA) follows the guidelines of ISPM 15 
from IPPC. In order  to update the relevant regulation, MAPA recently published its 
Ordinance  No. 514, of 8 November 2022, which establishes inspection and phytosanitary 
certification procedures for packaging and wooden supports for packaging of goods imported to or 
exported from Brazil, and for wooden components and parts used for its manufacture, among other 
provisions. The Ordinance is in the process of notification to the WTO and is available in the following 
address: https://www.in.gov.br/en/web/dou/ -/portaria -mapa -n-514-de-8-de-novembro -de-2022-
442554508 . 
 
Page 76  
 
3.2.3 Export prohibitions, restrictions, and licensing  
 
3.70. Export authorization or licensing requirements remain in place for several products, mainly for 
safety, health, security, environmental, or native fauna protection reasons. SUEXT remains in 
charge of licensing Brazilian exports that are subject to ta riff quotas in certain destination 
markets. In addition to SUEXT, 15 administrative entities have export authorization 
competences, and some products require authorization by more than one entity. As at June 
2022, exports classifiable under 1,832 eight -digit tariff lines (representing around 17.7% of 
Brazil's tariff) were subject to some form of prior authorization. The main product categories 
requiring prior export authorization included chemicals, pharmaceuticals, wood products, and 
live animals.  
 
3.71. A new system for export licensing was implemented in 2018 and is being gradually rolled out 
for import licensing as well. The authorities indicate that system introduced support for 
multiple operations per licence, differentiated licence validity periods, and use of the licence 
by different branches of the same company.  
 WT/TPR/M/432/Add.1  
 
- 319 - 
 
  Question:  
 
21. Please clarify the new system for import licensing and what are the requirements 
for Malaysian exporters to export wood products to Brazil under the new system?  
 
Reply:  
The New I mport Process has the potential to further reduce the goods release time after full 
implementation of the Brazilian Single Window. Among the improvements are:  
- Coordinated goods inspection between Customs and OGAs;  
- Improvement of licen ce issue time of O GAs through risk management;  
- Improved trade logistics due to advanced clearance of all cargos instead of AEO 's cargos only;  
- Issuing of Import licen ces for multiple shipments;  
- Foreign trade taxes and duties with deferred payments.  
New Import Process will reduce the requirement for supporting documentation because ofBrazil 's 
Single Window focus on data interoperability and the advent of the import licen ce issued to multiple 
shipments.  
 
 
Page 83  
 
3.3.1.1 Overview  
 
3.99. Brazil offers incentives and assistance to businesses in various configurations. Most state and 
municipal governments implement stimulus measures independently of the federal 
programmes in place. The scope of incentive programmes may be regional, sectoral,  or 
outcome -specific (e.g. fostering research). Most initiatives aim at promoting entrepreneurship, 
technological and infrastructure upgrades, innovation, exports (Section 3.2.4), energy 
efficiency, and regional development. Specific federal programmes rem ain in place for the 
automotive, information technology, aeronautics, and petroleum industries (Section 4). The 
range of support measures includes targeted long -term loans, tax incentives, non -repayable 
financial contributions, equity financing, accelerate d depreciation, guarantees, grants, 
advisory services, and credit insurance.  
 
Question:  
 
22. What are the types of incentives offered and the eligibility criteria for foreign investors to 
apply for incentives in Brazil?  
 
Reply:  
Apex-Brasil is the Brazilian government 's trade and investment promotion agency. Regarding the 
investment activity, it s upports international investors as they analy se the opportunities to establish 
a plant in Brazil, start a partnership with a Brazilian company, or commit capital in Brazil through 
funds and companies. Their goal is to satisfy investors needs and generate r esults as we attract 
technology, innovation, new companies and generate jobs in Brazil. Through Apex -Brasil, foreing 
investor can find all the necessary support to invest in Brazil ( https://investinbrasil.com. br/). In 
what regards the types of incentives, they vary according to each program. The elegibility criteria 
can be found in the respective program 's regulations. Brazil encourages Malaysia and any other 
interested Member to request more details about spec ific programs bilaterally. In any case, Brazil 
reinforces that all incentives are duly compliant to the pertinent multilateral rules. For those that are 
considered subsidies in the sense of the WTO  Agreement  on Subsidies and Countervailing Measures, 
detail ed information can be found in Brazilian New and Full Notifications to the Committee on 
Subsidies and Countervailing Measures.  
 
Page 95  
 
3.3.6 Government procurement  
 
3.155. The value of government procurement across all levels of government in Brazil was estimated 
at BRL 874 billion in 2010.171. In 2020, at the federal level, the value of government 
procurement was estimated at BRL 87,644.6 million, accounting for 1.17 % of Brazil's GDP. 
These figures are similar to those available from 2016 to 2020, except for 2019, which has 
slightly lower figures. From 2016 to 2020, the amount of procurement subject to WT/TPR/M/432/Add.1  
 
- 320 - 
 
international competitive bidding continued to be very low, rangin g from 0% to 
0.23%  (Table  3.18).  
 
Question:  
 
23. Please provide further details on sectors involved under the Government Procurement (GP).  
 
Reply:  
Brazil is not currently in a position to provide the request information. The current systems do not 
provide the cross -cutting tools to gather these values. This is further complicated by the complex 
federal structure of the country, in which subnational e ntities have their own systems of statistics. 
To address this situation, a National Public Procurement Portal (PNCP) was created as an official 
website for the centralized and mandatory disclosure of the acts required by the procurement law. 
With its intro duction and progressive use from April 2023, the PNCP shall also offer, in the medium -
term, a unified information registration system from which to gather relevant statistics from central 
and subcentral entities. The PNCP can be accessed at https://www.gov.br/pncp/ . 
 
 
Page 97  
 
3.162. As a general principle, the 2021 Procurement Law prohibits discriminatory treatment between 
national and foreign suppliers. Article 9 provides that procuring entities may not accord 
differentiated commercial, legal, labour, or social security treatment to Brazilian and foreign 
companies, including regarding the currency, and the method and location of payments, 
even when financing from international agencies is involved. Simila rly, procuring entities 
may not establish preferences based on the place of birth, the principal place of business, or 
the domicile of suppliers.  
 
3.163. To facilitate participation by foreign suppliers in government procurement, the Ministry of 
Economy ad opted the Normative Instruction SEGES No. 10, 10 February 2020. The 
Normative Instruction allows foreign suppliers from any country to register in the Unified 
Suppliers Registration System (SICAF) and participate in government procurement 
opportunities. Th ere is, however, a need to have legal representative with powers to receive 
citation in Brazil at the beginning of the procurement process (upon registration). The 
Normative Instruction also simplifies requirements related to the qualification of suppliers , 
for instance by only requesting sworn translations of qualification documents in Portuguese 
at the time of signing the contract.  
 
3.164. The 2021 Procurement Law further facilitates the submission of bidding documents by foreign 
suppliers. For example, Article 67:4 provides that certificates and other documents related 
to the technical and professional qualification issued by foreign entities must be accepted 
if they are accompanied by a Portuguese translation. Also, registration with the competent 
professional body in Brazil is no longer a prerequisite for foreign suppliers to submit bids 
and participate in government procurement opportunities. Pursuant to Article 67:7, foreign 
suppliers will only need to submit their applications for registration with t he relevant 
professional boards in Brazil at the time of executing the contracts.  
 
3.165. Possibilities continue to exist to provide Brazilian goods, services, and suppliers treatment 
more favourable than that accorded to foreign goods, services, and suppl iers. 
 
Question:  
 
24. Please explain further the difference in information related to Government Procurement 
(GP) in Items 3.162 and 3.165, since all WTO Members should be accorded the MFN 
treatment.  
 
Reply:  
Since government procurement is not covered by the GATT [art. III, 8 (a)] or the GATS [art. XIII], 
the MFN treatment does not apply to WTO members.  
In any case, the possibility for the Executive to give more favourable treatment by means of price 
preferences is still available pursuant to Article 26 of Law 14,133/21. The p ermission of such policy 
in the new Law was a decision of the Brazilian Congress. However, for the margin of preference WT/TPR/M/432/Add.1  
 
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  referred to in art. 26, I to be applicable, the provision needs to be further regulated by means of a 
justified decision of the Executiv e. A margin of preference, defined in a well -grounded decision of 
the Federal Government, may be extended to manufactured goods and services originated from the 
Member States of the Southern Common Market (Mercosur), as long as there is reciprocity with th e 
Country, which shall be provided for in an international agreement approved by the National 
Congress and ratified by the President of the Republic.  
 
25. What are the criteria for the procurement procedures of domestic products over foreign 
products under the  Government Procurement (GP)?  
 
Reply:  
The 2021 Public Procurement Law further emphasised the principles of non -discrimination between 
national and foreign suppliers. The law prohibits different criteria for national and foreign products 
and services. Foreign companies that do not operate in the Country shall submit equivalent 
documents, whenever they exist, pursuant to the applicable regulations issued by the Federal 
Government. Pursuant to the terms of the Law, the tender documentation may n ot provide for 
qualification, classification, and evaluation conditions that constitute access barriers to the foreign 
supplier.  
 
 
26. Please advise the minimum threshold for public procurement contract value for Malaysian 
companies to bid for government procu rement projects?  
 
Reply:  
Malaysian companies may bid in any government procurement projects, irrespective of the value. 
Before October 2020, foreign companies could participate in government procurement bidding for 
goods and services by establishing thems elves as a juridical person in Brazil or by setting up a 
branch or office in the country, authorized by the government. There had never been a need for a 
Brazilian partner (business or individual). Normative Instruction No. 10, 2020, by the Secretariat of 
Management (SEGES) amended previous regulations to allow for the registration of foreign 
companies not established in Brazil into the Unified Supplier Registration System (SICAF). Therefore, 
after October 2020, there is no need to set up a branch or office  or a juridical person in the country.  
On the other hand, there is a requirement to have a legal representative in Brazil with express 
powers to receive citation and respond administratively or judicially for the register in SICAF. This 
was done because fo reign companies, just as national companies, may also incur in responsibility, 
irrespective of whether there is a contract already signed, in relation to acts performed during the 
bidding procedure.  
 
As of November 2022, there are 214 (two hundred and fourteen) foreign companies registered in 
SICAF, and thus, able to participate in public procurement in Brazil, even when not established in 
the country.  
 
Page 128  
 
4.2.2.3.1.3 Downstream  
 
4.81. Brazil was the eighth -largest producer and the seventh -larges t consumer of crude oil, all 
other petroleum liquids, and biofuels consumer in the world in 2019, consuming 
3.14 million  barrels/day (b/d).116 Gross domestic consumption of petroleum products 
decreased by an estimated 5.0% year -on-year in 2021, to 99.2 mto e, primarily used for 
transport and industrial activities.117 Brazil is a net import of refined -oil products, which 
increased by 96% year -on-year to 116.7 million barrels in 2021 mainly of imports of diesel, 
naphtha, and LPG from the United States, Argenti na, Spain, the Netherlands, India, and 
Angola. 118 A total of 19 refineries with a cumulative capacity of 2.4 million b/d was 
responsible for the domestic refined -oil output of 1.8 million b/d, an increase of 2.5% on 
a year to year.119 In 2020, 41,673 gas stations were in operation in Brazil, by Vibra 
Energia (27.51% of Brazil's fuel distribution market), Raízen, Ipiranga, and several other 
smaller fuel distributors.120 Petrobras sold all of its shares in BR Distribuidora, now 
renamed as Vibra Energia, with  the aim to achieve more effective competition on the 
wholesale of oil products.  
 WT/TPR/M/432/Add.1  
 
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Question:  
 
27. What are the incentives provided in Brazil for new investments in the manufacturing of 
refined petroleum products after 2020?  
 
Reply:  
Law No. 12,431, of 2011, and its regulations, allow fundraising with a view to implement investment 
projects in the area of infrastructure, in the form of incentivized debentures, including for the 
production and storage of fuel and other oil derivatives. In addition, the national condition of net 
exporter of crude oil and the process of disinvestment in refining conducted by Petrobras contribute 
to a business environment favorable to competition and investment in the production of oil 
derivati ves. 
 
Page 142  
 
4.143. Currently, the IT industry benefits from tariffs ranging from zero to 12.8%. Brazil remains a 
non-participant in the WTO plurilateral Information Technology Agreement (ITA).  
 
Question:  
 
28. Does Brazil intend to participate in the WTO ITA? If so, under what circumstances?  
 
Reply:  
The Brazilian Government is committed to the multilateral trade liberalization agenda, as can be 
seen by Brazil´s application to access the Agreement on Trade in Civil Aircraft presented to the WTO 
in June 2022, along with the ongoing process of the country´s accession to the Government 
Procurement Agreement. At the moment, Brazil is not engaged in discussions regarding a 
participation in the WTO Information Technology Agreement.  
 
Page 171  
4.4.7.2 E -commerce  
 
4.292. In 2019, Brazil's retail e -commerce sales reached USD 20 billion, only behind Mexico 
(USD  31 billion) in the retail e -commerce sales in Latin America. E -commerce sales 
correspond to 1.1.% of Brazil's GDP and registered at 7.6% increase from 2018 t o 
2019.394 Brazil ranked 10th in the total worldwide retail e -commerce in 2021, with 0.8% 
of the global share, and registered the world's 2nd largest growth rate of e -commerce 
sales, 26.8%.  
 
4.294. Cross -border e -commerce trade grew by 15% in 2021 compared  with 2020 in Brazil. Brazilian 
shoppers who make purchases on international websites typically purchase more. 
Important to note that many Brazilian websites do not accommodate international credit 
cards, which creates hurdles for foreigners while in Brazi l. In 2020, cross -border e -
commerce accounted for 21% of total sales, around BRL 22.7 billon. Partnerships between 
Correios (Brazil state -owned postal services company) and foreign e -commerce sellers 
enabled faster long -haul cargo into Brazil by the foreig n company in charge of delivery up 
to Brazil's borders, while Correios completes the service for delivery in the country. Border 
clearance was undertaken in only 2.6% of all cross -border postal shipments, from which 
over 90% were audited for customs tariff  purposes. Consumer protection agencies (Procon) 
have been active pursuing and collecting fines on counterfeit products or contraband sold 
on cross -border platforms.  
 
4.295. Most online shoppers are in the age range between 36 to 50 years old (35%), follow ed by 
those 25 to 35 years old (32%), 51 years old and above (16.6%), and 18 to 25 years old 
(16.4%).401 Digital payment with PIX are likely to reshape e -commerce payment 
methods. Currently, cards (59%) are the most used form, followed by cash (23%), digit al 
wallet (8%), and bank transfer (6%).  
 
4.297. Brazil has no de minimis  rule whereby goods below a certain value are exempt from customs 
duties and taxes. Virtually all international e -purchases are subject to a 60% flat/single 
equalization tax on the purchase price covering/compensating customs duty and other 
internal taxes/ charges on imports and can also be charged for the state -level VAT (ICMS) WT/TPR/M/432/Add.1  
 
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  ranging from 17% to 25%. Certain medicines (upon submission of specific documentation) 
and printed books or periodicals are the only exceptions to these tax requirements. An 
exemptio n (excluding the ICMS tax) for packages valued at USD 50 or less applies only to 
remittances from a person to another person for personal use or gifts of lower value but 
not for commercial operations. A Simplified Taxation Regime applies to goods not 
excee ding USD 3,000. According to the authorities, a new legislation on customs duties 
and procedures for e -purchases was under consideration.  
Questions:  
 
29. Grew by 26.8% over how many years? Would the assumption be during the review period 
of 2017 -2021?  
 
Reply:  
In the footnote n. 395 of item 4.292 of the report by the Secretariat, it is indicated that the source 
of this data is "Insider Intelligence (2021), "These Are the Top Global Economic Markets", 14 July. 
Viewed at: https://www.emarketer.com/content/top -global -ecommerce -markets ", The rate of  
26.8% is an estimate made in May 2021 for the growth of retail commerce sales from 2020 to 2021.  
 
30. Promoting e -commerce activities among MSMEs will elevate the income level and uplift the 
livelihood of people. What are the programmes conducted by the Brazilian government to 
increase the e -commerce activities in the remote areas of Brazil?  
 
Reply:  
There is no initiative carr ied out by the Brazilian government at the moment to address specifically 
the promotion of e -commerce activities among MSMEs in remote areas, even though MSMEs from 
remote areas in Brazil, such as, for instance, the Amazon region, could benefit from nation al 
programs to increase digitalization of MSMEs and regional development programmes implemented 
by federal agencies, such as the Superintendency for the Development of the Amazon region 
(SUDAM), and regional development banks, such as the Bank of the Amazo nian Region (BASA).  
 
31. What are the measures by Brazilian authority to expand the cross -border trading activities 
in the region?  
 
Reply:  
Brazil signed a Trade Facilitation Agreement and an E -commerce Agreement with Mercosur 
Members. The Free Trade Agreement with Chile, signed in 2018 and already in force, contains an e -
commerce chapter and a trade facilitation chapter.  
 
32. For consumers to purchase via e -commerce platforms in Brazil, they will only be able to 
use local Brazilian issued credit card. Is this assumption correct?  
 
Reply:  
There are no rules regarding what type of card can be used on the platforms. It is a private decision 
of the market 's participants.  
 
33. Does Brazil expect the composition of payment methods to change in the coming years? 
I.e. usage and adoption of digital wallets?  
 
Reply:  
We consider that digital payments with PIX are likely to de dominant regardless of whether the funds 
are in a bank account or a digital wallet.  
 
34. With regard to the new legislation on customs duties and procedures for e -purchases 
mentioned in para 4.297, we seek more information on what would be the scope and key 
elements or features of the said legislation as well as the progress and timeline for its 
enactment.  
 
Reply:  
The new legislation under study intends to increase the exemption amount to US D 100.00, extend 
this exemption to courier companies and commercial operations.  At that time, the 60% rate will not 
be modified.  The proposal for the new legislation was forwarded to the Minister of the E conomy for 
approval, where it is currently in progress.  
  WT/TPR/M/432/Add.1  
 
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KOREA, REPUBLIC OF  
PART  I: Questions  Regarding  the Secretariat  Report   
 
Page 13 (Para  22) 
22. [...] General  administered  interest  rate or concessional  loans  and government  procurement  
preferences  to local suppliers  are still in place.  Production  step-related  local  content  
requirements  tied to domestic  support  measures  continue  to shield  domesti c producers  
from  foreign  competition . Industry -specific  incentives,  such as for the automotive  (INOVAR -
Auto),  were ended.  Few sector -specific  schemes,  such as those  for information  technology  and 
aeronautics,  remain  in place.  Automotive  trade agreements  with Argentina,  Mexico,  Paraguay,  and 
Uruguay  are in place.  
Page 38 (Para  2.15)  
2.15. [...] Notwithstanding  regulatory  and institutional  progress,  Brazil  maintained  a long-standing  
trade and trade-related  policy  framework  that shields  certain  domestic  produc ers from external  
competition.  The policy  setting  remains  to some  extent  characterized  by persisting  "infant  industry"  
protection  and tariff jumping  principles.14  Its tools comprise  border  measures  coupled  with 
complex  and possibly  distortive  tax and non-tax incentives,  inter  alia, involving  local  
content  requirements , administered  interest  rate or subsidized  credit,  and other  targeted  
subsidies  often leading  to cross-subsidization  elements  affecting  the economy  and its prospects  
Question  1 
Even though  Brazil notified,  in 2020,  the DSB that Brazil  is in full compliance  with the DSB rulings  
and recommendations  in the dispute  that Brazil  had undergone  concerning  LCR, local content  
requirement,   
the TPR Secretariat  Report  still points  out the existence  of LCR providing  protection  to some  infant  
industries.  Could  Brazil  explain  it's position  about  the points  that the Secretariat  Report  raised  
about  LCR? 
REPLY:  
As stated  in its 2020 notification  to the DSB, Brazil  has fully complied  with the rulings  in the 
aforementioned  dispute.  Brazil  does not grant  subsidies  contingent  upon the use of domestic  over 
imported  goods  in the industrial  sector.  All subsidies  granted  by Brazil  are notified  to the WTO and 
are consistent  with WTO rules.   
Page 11 (Para  11) 
11. Brazil's  internal  taxation  regime  remains  complex , including  in the treatment  of 
imported  goods  and services . Domestic  and cross-border  transactions  are subject  to various  
federal  and sub-federal  levies,  and cross-cumulation  of these  taxes  for tax base purposes  is not 
uncommon.  In addition,  their application  typically  varies  depending  on the product  type, the 
competent  sub-federal  authority,  and the importer's  tax regime  status.  Whereas  federal  taxes  are 
automatically  deducted  from the importer's  bank account  upon submission  of the customs  
declaration,  procedures  and systems  for the collection  of sub-federal  taxes  (sometimes  requiring  
presentation  of hard copies  for imports'  release)  still vary across  Brazil's  federative  states.  
Page 12 (Para  18) 
18. [...] The relatively  complex  tax system , lack of a fully-fledged  competitive  financing  system,  
infrastructure  bottlenecks,  and a number  of administrative  measures  continued  to hinder  the full 
sectoral  efficiencies . 
Page 138 (Para  4.125)  
4.125.  Several  export  incentives  remain  available  [...] Noteworthy  to highlight  that tax refunds  on 
exports  under  the Reintegra  scheme  basically  disappear ed as the refund  rate was set at 
0.1%  of export  revenue  since 2018 (Section  3.2.4.1).187  This has been criticized  by some  sectors,  
which  claim  that under  the complex  Brazilian  tax system,  companies  that tend to WT/TPR/M/432/Add.1  
 
- 325 - 
 
  systematically  accumulate  tax credits  and do not generate  enough  tax debits  to offset  
them  are unable  to deduct  some  indirect  tax on their  purchases  of inputs  and capital  
goods , and are thus prevented  from avoiding  accumulation  of taxes  levied  on exported  goods  
Question  2 
The complexities  of Brazil's  taxation  system  in terms  of internal  taxation,  export  border  adjustment  
(export  rebate)  and tax incentives  could  lead to increased  uncertainties  to foreign -invested  
businesses  located  within  the country.  And also there  is a concern  that the taxation  system  might  
act as a trade barrier.  In this point of view,  does Brazil  have plans  to streamline  and clarify  its 
taxation  system?  
REPLY:  
The Brazilian National Congr ess (Parliament) is currently examining a Draft Law on the reform of 
the taxation system in Brazil, with a view to simplify and consolidate the law and other legal edits 
on the matter.  
 
  WT/TPR/M/432/Add.1  
 
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CHILE  
WT/TPR/S/432  – Informe  de Secretaría  OMC 
2 REGÍMENES  DE COMERCIO  E INVERSIÓN   
2.4 Régimen  de inversión  
2.4.1  Marco  reglamentario  e institucional  
Párrafo  2.47,  p. 58 y 59. 
"La Agencia  Brasileña  de Promoción  de Exportaciones  e Inversiones  (APEX -Brasil)  sigue 
desempeñando  un papel  destacado  en la atracción  de la IED al Brasil;  con esta finalidad,  trabaja  en 
la identificación  de oportunidades  comerciales,  la promoción  de eventos  estratégicos  y la prestación  
de apoyo  a los inversores  extranjeros  dispuestos  a destinar  recursos  al Brasil,  además  de respa ldar 
los esfuerzos  de inversión  en el extranjero  de las empresas  brasileñas  en el marco  de su "programa  
de internacionalización".  En 2019,  el Ministerio  de Economía  creó la oficina  del Ombudsman  de las 
Inversiones  Directas  (OID)  a fin de proporcionar  a los inversores  extranjeros  un punto  de contacto  
único  para las cuestiones  relacionadas  con la IED. Según  su página  web, se trata de una "ventanilla  
única"  para inversores  que depende  de la Secretaría  Ejecutiva  de la CAMEX.  El OID se ocupa  de 
recibir  las solicitudes  y consultas  sobre  inversiones  extranjeras,  a las que responde  conjuntamente  
con el organismo  público  competente  en la materia  (federal,  estatal  o municipal)  que intervenga  en 
cada caso (Red de Centros  de Coordinación).  La figura  del OID permite  apoyar a los inversores  a 
través  de un único  organismo  público  que se ocupa  de responder  a las solicitudes  en un plazo breve.  
Entre  las competencias  del OID destacan  las siguientes:  apoyar  y orientar  a los inversores,  
recomendando  soluciones  a sus reclamacione s (promoción  de políticas);  y proponer  a los organismos  
públicos  posibles  mejoras  en la legislación  o en los trámites  administrativos"  
Pregunta  1: El párrafo  2.47, señala  que, en 2019,  el Ministerio  de Economía  creó la oficina  del 
Ombudsman  de las Inversio nes Directas  (OID)  a fin de proporcionar  a los inversionistas  extranjeros  
un punto  de contacto  único  para las cuestiones  relacionadas  con la IED. Al respecto,  Chile 
agradecería  si Brasil  pudiera  comentar  sobre  su experiencia  reciente  con la oficina  del Ombudsman  
y si pudieran  compartir  estadísticas  sobre  la utilización  de la figura  del Ombudsman,  tales como  tipo 
de casos  que manejan,  resultados  del manejo  de los casos,  entre otros.  
 
RESPUESTA:  
El Ombusdman  de las Inversiones  Directas  (OID)  fue creado  originalmente  por el Decreto  
Presidencial  nº 8.863/2016,  para atender  los Acuerdos  de Cooperación  y Facilitación  de Inversiones  
(ACFI)  que Brasil  ha negociado  y firmado  bilateralmente  y que requieren,  entre  otras disposiciones,  
la creación  de un mecanismo  de asistencia  a los inversores  extranjeros  (Ombudsman  de 
Inversiones).  En 2019,  hubo modificación  de dicho  decreto  y actualmente  el OID asiste  a todos  los 
inversores  extranjeros  en Brasil.  
El OID integra  la estructura  de la Secretaría  Ejecutiva  de la Cámar a de Comercio  Exterior  (CAMEX)  
del Ministerio  de Economía,  bajo la supervisión  del Consejo  de ministros  de la CAMEX  (CEC),  y está 
compuesto  por: 
I - el secretario  ejecutivo  de la CAMEX,  que representa  institucionalmente  y coordina  las actividades  
del OID;  
II - una Secretaría,  administrada  por la Subsecretaría  de Inversiones  Extranjeras  (SINVE);  
III - un Grupo  Asesor,  compuesto  por representantes  de los ministerios  que constituyen  la CAMEX;  
y 
IV - una Red de Puntos  Focales,  integrada  por los puntos  focales  de las dependencias  y entidades  
de la administración  pública  a nivel federal,  así como  los indicados  por las Unidades  de la Federación.  
Actualmente,  la Red de Puntos  Focales  está integrada  por 37 dependencias  federales  y 13 estatales.  
 
Esta estructura  proporciona  asistencia  a los inversores  extranjeros,  mediante  un único  organismo  
gubernamental  (CAMEX),  encargado  de responder  a las solicitudes  en un plazo breve  a través  de su 
principal  plataforma  interactiva,  el sitio web del OID – www.oid.economiga.gov.br , finalizado  en abril 
de 2019.  Este sitio web es también  un sistema  de información  que controla  y gestiona  las demandas  WT/TPR/M/432/Add.1  
 
- 327 - 
 
  recibidas.  El sitio web del OID es la principal  herramienta  de interacción  entre el OID, los 
inversionistas  y los organismos  gubernamentales  implicados  en cada caso (Red de Punto  Focales).   
Clasificamos  la asistencia  a los inversores  extranjeros  en dos tipos:  Consultas  y Cuestionamientos.  
Las Consultas  son utilizadas  para aclarar  dudas  general es sobre  la legislación  o los procedimientos  
administrativos  relacionados  con la inversión.  Los Cuestionamientos  son utilizados  para resolver  
quejas,  en coordinación  con el organismo  gubernamental  implicado  en un caso concreto  (Policy  
Advocacy ). 
Los casos  atendidos  por el OID se encuentran  bajo secreto  comercial,  de conformidad  con el Capítulo  
VI de su Reglamento  Interior,  y bajo protección  de datos  personales,  de conformidad  con la Ley 
N° 13.709/2018  (Ley General  de Protección  de Datos).  
Saldo  de la asistencia  a través  del sitio web del OID (abr 2019 - nov 2022):  
- Asistencia  total:  Hemos  recibido  26 solicitudes  de inversores  extranjeros  (16 consultas  y 13 
cuestionamientos);  
- Las principales  peticiones  tienen  relación  con cuestiones  fiscales,  laboral es, financieras  y 
administrativas.  
- Las demandas  proceden  de los siguientes  países:  Estados  Unidos,  Reino  Unido,  Italia,  India,  
Alemania,  Dinamarca,  Portugal,  España,  México,  Emiratos  Árabes  Unidos,  Türkiye , Sudáfrica  y 
China.  
- Los sectores  implicados  fueron:  proyecto  de energía  renovable;  actividades  de servicios  
financieros;  tecnología  de la información;  fabricación  de estructuras  metálicas;  servicios  de 
arquitectura  e ingeniería;  suministro  y distribución  de electricidad;  transporte  de agua;  metalurgia ; 
extracción  de minerales  metálicos;  petróleo  y gas; comercio  al por mayor;  fabricación  de productos  
farmacéuticos;  fabricación  de productos  de caucho  y plástico;  y fabricación  de vehículos  de motor,  
remolques  y carrocerías;  fabricación  de máquinas,  electr odomésticos  y materiales  eléctricos.  
Con el objetivo  de dar mayor  publicidad  al mecanismo,  la Subsecretaría  de Inversiones  Extranjeras  
(SINVE/SE -CAMEX)  ha realizado  una amplia  labor de divulgación  del OID. Por lo tanto,  se realizaron  
varias  presentaciones  con algunos  de los países  con los que Brasil  tiene Acuerdo  de Cooperación  y 
Facilitación  de Inversiones  (ACFI),  como:  Chile,  Colombia,  India,  Emiratos  Árabes  Unidos  y México.  
Además  de estos  países,  también  se realizaron  presentaciones  en las embajadas  de Reino  Unido,  
Alemania  y EUA, con la participación  de representantes  de "Select  USA"; así como  con las Cámaras  
de Comercio:  Brasil -Francia;  Cámara  de Comercio  Latinoamericana  de Singapur;  AMCHAM  e 
"Invest  Hong Kong". 
Otra importante  iniciativa  de difusión  fueron  las presentaciones  realizadas  con las principales  firmas  
de abogados  representantes  de inversionistas  extranjeros  en Brasil  (11 firmas),  tales como:  Veirano  
Associados;  Pinheiro  Neto;  Mattos  Filho;  Tozzini  Freire  Abogados;  Machado  Meyer;  entre  otros.  
 
WT/TPR/G/432  – Informe  de Gobierno  
3.6 Acuerdos  de inversión  
Párrafo  3.57,  p. 26 
"Después  de que el Congreso  Nacional  rechazó  los acuerdos  de inversión  bilaterales,  el Gobierno  
brasileño  intensificó  su labor para definir  nuevas  directrices  que orientarían  las ulteriores  
negociaciones  sobre  dichos  acuerdos.  El Brasil  se ha centrado  en el diseño  de un nuevo  modelo  de 
acuerdo  de inversión  basado  en un examen  detenido  de los estudios  realizados  por organizaciones  
internacionales  (Directrices  de la UNCTAD  y la OCDE),  amplias  consultas  con el sector  privado  
brasileño  y estudios  comparativos  internacionales.  Este proceso  condujo  a la redacción  de un 
Acuerdo  de Cooperación  y Facilitación  de Inversiones,  cuyo objetivo  es lograr  un resultado  
equilibrado  que combine  la promoción  de un entorno  que pueda  atraer  a los inversionistas  y al 
mismo  tiempo  preserve  el margen  para la formulación  de las políticas  públicas.  El nuevo  modelo  
brasileño  soslaya  las limitaciones  de los acuerdos  de inversión  bilaterales  conve ncionales  y adopta  
un enfoque  positivo  que abarca  la cooperación  institucional  y la facilitación  de las corrientes  de 
inversión.  Este modelo  se utiliza  desde  2013".  
Pregunta  2: En el párrafo  3.57, sobre  Acuerdos  de Inversión  se indica  que Brasil  adoptó  un modelo  
de acuerdos  de inversión  basado  en la cooperación  institucional  y la facilitación  de los flujos  de 
inversión.  Al respecto,  Chile agradecería  si Brasil  pudiera  comentar  si presentan  estadísticas  o WT/TPR/M/432/Add.1  
 
- 328 - 
 
antecedentes  que demuestren  que el modelo  ha sido efectivo para la generación  de más inversiones  
y menos  controversias.  
RESPUESTA:  
Brasil  escaló  tres posiciones  en 2021,  convirtiéndose  en el sexto  país que más IED atrajo,  según  el 
"World  Investment  Report " de la UNCTAD.  Sin embargo,  el impacto  específico  de los ACFIs  en los 
flujos  de IED sigue difícil de medir,  especialmente  cuando  se considera  que solo un número  limitado  
de ACFIs  está actualmente  en vigor y que Brasil  ha estado  entre  los mayores  receptores  de IED 
durante  las últimas  décadas,  incluso  cuando  no era Parte de ningún  acuerdo  de inversión.  
No obstante,  vale la pena señalar  que la Oficina  del Ombudsman  de Inversión  Directa  (OID),  que es 
un elemento  central  del modelo  ACFI,  asiste  a potenciales  inversores  e inversores  extranjeros  que 
operan  en Brasil.  Diseñado  inicialmente  para ayudar  a los inversores  extranjeros  de países  que eran 
Partes  de ACFIs  con Brasil,  el decreto  original  del OID se modificó  en el 2019 para ponerlo  a 
disposición  de los inversores  extranjeros  en general,  sin depender  de su nacionalidad.  Desde  esta 
reforma,  el OID ha dado seguimiento  a preguntas  generales  sobre  legislación  y procedimientos  
administrativos  relacionados  con inversiones,  así como  a consultas  relacionadas  con casos  
específicos  que afectan  inversiones,  presentadas  por inversionistas  de diversos  países,  incluyend o 
Estados  Unidos,  Reino  Unido,  Italia,  India,  Alemania,  Dinamarca,  Portugal,  España,  México,  Türkiye  
y Sudáfrica.  
 
4 MARCO  INSTITUCIONAL  Y REGLAMENTARIO  DEL COMERCIO   
4.1 Cuestiones  transversales   
4.1.2  Normas  y reglamentos  técnicos   
Párrafo  4.6, p. 28 
"Desde 2019,  en virtud  de la legislación  relativa  a los derechos  de libertad  económica,  el Instituto  
Nacional  de Metrología,  Calidad  y Tecnología  (INMETRO)  ha modernizado  sus métodos  de aprobación  
reglamentaria  para reducir  los trámites  burocráticos  y simplif icar las normas.  Los plazos  de 
aprobación  tácita  para determinadas  decisiones  del INMETRO  entraron  en vigor el 1 de febrero  de 
2020,  como  se muestra  en el siguiente  cuadro.  En septiembre  de 2020,  el INMETRO  también  
estableció  un sistema  de evaluación  del riesgo de tres niveles  para las actividades  de metrología  
legal y evaluación  de la conformidad  obligatoria.  Además,  a partir  de julio de 2020,  las solicitudes  
de revisión  de los reglamentos  técnicos  que se apartan  de las normas  internacionales  pueden  
presen tarse a través  de la Presidencia  del INMETRO.  Cabe señalar  también  que, en febrero  de 2022,  
el INMETRO  publicó  la Orden  Nº 30, en la que se aprueba  su nuevo  marco  reglamentario,  se 
establecen  directrices  para modernizar  el enfoque  reglamentario  del INMETRO  y se establece  un 
período  de transición  de cinco años para su aplicación.  En agosto  de 2022,  el INMETRO  planeaba  la 
hoja de ruta para esa aplicación  (cuadro  4.1)".   
 
 
Pregunta  3: En el párrafo  4.6, se sostiene  que "a partir  de julio de 2020,  las solicitudes  de revisión  
de los reglamentos  técnicos  que se apartan  de las normas  internacionales  pueden  presentarse  a 
través  de la Presidencia  del INMETRO ". Al respecto,  Chile agradecería  contar  con mayores  
antecedentes  respecto  en que medida  o bajo que circunstancia  los emisores  de Reglamentos  
Técnicos  se apartan  de las Normas  Internacionales.  Además,  Chile agradecería  a Brasil  si puede  
proveer  información  estadística  que refleje  esta desvinculación  respecto  a las normas  
internacionales.  
REPLY:  
On February  5th 2020,  Brazil  published  the Decree  10,229,  which  regulates  the right to develop,  
execute,  operate  or market  a product  or service  in disagreement  with the outdated  technical  
WT/TPR/M/432/Add.1  
 
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  standards  mentioned  in item VI of the caput  of art. 3 of Law No. 13,874,  of 20 September  2019.  
This decree  applies  to all Brazilian  regulators,  including  Inmetro.  
In the Brazilian  regulatory  environment,  some  technical  regulations  have become  obsolete  without  
being  revised  according  to more updated  international  standards.  Regulators,  from the publication  
of the economic  freedom  decrees,  must ensure  less prescriptive  regulations  that allow the use of 
more updated  standards,  in order  to avoid  this international  mismatch.  In this context,  the 
aforementioned  2019 and 2020 norms  aim at decrea sing the regulatory  complexity  related  to such 
standards.  
Párrafo  4.7, p. 28 
"De conformidad  con el Acuerdo  sobre  Obstáculos  Técnicos  al Comercio  (OTC),  el Brasil  notificó  a la 
OMC,  entre  enero  de 2017 y mayo  de 2022,  1.446  reglamentos  técnicos  y procedimi entos  de 
evaluación  de la conformidad,  incluidos  nuevos  reglamentos,  adiciones,  revisiones,  correcciones  y 
suplementos.  Por regla general,  las normas  internacionales  constituyen  la base de la formulación  de 
los reglamentos  técnicos.  El INMETRO  es el servic io nacional  del Brasil  que facilita  información  sobre  
los reglamentos  técnicos  y los procedimientos  de evaluación  de la conformidad.  INMETRO  promueve  
también  la cooperación  bilateral,  regional  y multilateral  con otros servicios  de información  sobre  los 
obstáculos  técnicos  al comercio  de la OMC con objeto  de aumentar  la transparencia  y fomentar  el 
intercambio  de información"  
Pregunta  4: En el párrafo  4.7, se sostiene  que "De conformidad  con el Acuerdo  sobre  Obstáculos  
Técnicos  al Comercio  (OTC),  el Brasil  notificó a la OMC,  entre enero  de 2017 y mayo  de 2022,  1.446  
reglamentos  técnicos  y procedimientos  de evaluación  de la conformidad,  incluidos  nuevos  
reglamentos,  adiciones,  revisiones,  correcciones  y suplementos".  Al respecto,  Chile valora  que Brasil  
aporte  transparencia  respecto  a la notificación  de sus reglamentos  y procedimientos  técnicos  en la 
OMC.  No obstante,  Chile aprecia  que, en algunos  casos,  las notificaciones  de Brasil  sometidas  a 
consultas  en el Comité  OTC de la OMC,  no generan  el espacio  para proveer  comentarios  (el ítem de 
Plazo de Comentarios  indica  "no aplica").  Se entiende  que la extensión  de al menos  60 días para 
permitir  comentarios  a los países  que lo requieran  es una práctica  que está adoptada  por el Comité.  
Al respecto,  Chile agradecería  si Brasil  puede  indicar  ¿cuáles  son las razones  del por qué en el 
ejemplo  mencionado  previamente,  no se permite  efectuar  comentarios  en muchas  de sus 
notificaciones  ordinarias  (ya que en su contexto  no existe  urgencia)  al Comité  OTC?   
REPLY:  
Answer:  In order  to contribute  to enhance  transparency  within  the WTO,  Brazil  often notifies  
regulations  that will facilitate  trade  with WTO members.  Taking  into account  all notifications  
submitted  by Brazil,  the average  time provided  for comments  has been 55 days.  This difference  of 
five days in comparison  with the Committee 's practices  occurs  because  sometimes  the regulations  
are published  in Brazil  a few days before  they are notified  to the WTO.  Notifications  can only be 
triggered  after the officially  published  legal procedures.  Therefore,  the 60 days for comments  are 
provided  for in the regulations.  In the cases  that the period  provided  is shorter  than 60 days,  it 
usually  can be extended  at the request  of the interested  party. 
Párrafo  4.8, p 28. 
"De 2017 a 2021,  el Brasil  ha intensificado  su participación  en organizaciones  internacionales  
dedicadas  a la elaboración  y aplicación  de normas,  como  el Codex  Alimentarius,  la ISO, la CEI, la 
UIT y el Comité  de Expertos  en Transporte  de Mercancías  Peligrosas  y en el Sistema  Globalmente  
Armonizado  de Clasificación  y Etiquetado  de Productos  Químicos,  entre otros,  con el objetivo  de 
mantener  su reglamentación  armonizada  con las normas  internacionales  en los respectivos  sectores.  
El Brasil también  incrementó  su participación  en iniciativas  internacionales  de armonización  y 
convergencia  de la reglamentación  en la esfera  de los medicamentos,  los dispositivos  médicos  y los 
cosméticos"  
Pregunta  5: En el párrafo  4.8, se sostiene  que "con el objetivo de mantener  su reglamentación  
armonizada  con las normas  internacionales  en los respectivos  sectores.  El Brasil  también  incrementó  
su participación  en iniciativas  internacionales  de armonización  y convergencia  de la reglamentación  
en la esfera  de los medicamentos,  los dispositivos  médicos  y los cosméticos".  Al respecto,  a Chile le 
llama  la atención  que, en productos  cosméticos,  la Agencia  Nacional  de Vigilancia  Sanitaria  (ANVISA)  
requiere  que en dichos  productos  se deba informar  sus ingredientes  en el idioma  portugués.  Chile 
destaca  la existencia  de la Nomenclatura  Internacional  de Ingredientes  Cosméticos  (INCI),  la cual 
es una nomenclatura  internacionalmente  aceptada  para informar  los ingredientes  en este tipo de 
productos.  Por tanto,  Chile considera  que el requisito  para informar  los ingredientes  en el idioma  WT/TPR/M/432/Add.1  
 
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portugués  genera  una carga  adicional  al exportador  chileno  a dicho  destino.  En dicho  sentido,  Chile 
agradecería  a Brasil  si puede  explicar  la razón  por la que no se ha armonizado  sus reglamentacio nes 
en este ámbito.  
REPLY:  
Anvisa 's Resolution  RDC 432/2020  establishes  that personal  hygiene  products,  cosmetics  and 
perfumes  marketed  in Brazil  must inform,  in their labels,  their chemical  composition  both in 
Portuguese  in the INCI.  This resolution  was issued  in compliance  with a judicial  decision  from an 
appellate  court in Brazil  ("Public  Civil Action "/"Ação Civil Pública" nº 0028713 -
35.2008.4.02.5101/RJ),  against  which  it is not possible  to file an appeal.  In the decision,  the court 
considered  that the absence  of lists of components  in Portuguese  was in violation  of the Brazilian  
Consumer 's Code.  Thus,  it ordered  Anvisa  to issue a regulation  establishing  the mandatory  
description  of the components  in Portuguese  for the labeling  of persona l hygiene  products,  cosmetics  
and perfumes.  
4.2 Cuestiones  sectoriales  
4.2.3  Servicios  
Párrafo  4.101,  p 45 
"De 2017 a 2021,  las exportaciones  de servicios  disminuyeron  un 3,8%,  lo que redujo  la participación  
de los servicios  en las exportaciones  brasileñas  del 13,6%  al 10,5%.  Las importaciones  de servicios  
se contrajeron  un 30,9%,  y su participación  en la composición  de las importaciones  brasileñas  se 
redujo  del 31,2%  al 16,9%.  El déficit  de la cuenta  de servicios  ha mostrado  una evolución  
descendente  desde  2018 y se situó en USD 17.100  millones  en 2021.  La reducción  del déficit  fue 
consecuencia  de la contracción  económica  causada  por la pandemia  de COVID -19 en 2020-2021,  
que afectó  profundamente  a las importaciones  de servicios.  En 2021 el déficit  se redujo  en un 18,3%  
respecto  del año anterior"  
Pregunta  6: El párrafo  4.101  establece  que de 2017 a 2021,  las exportaciones  de servicios  
disminuyeron  un 3,8%  y que la reducción  del déficit  fue consecuencia  de la contracción  económica  
causada  por la pandemia  de COVID -19 en 2020-2021.  Al respecto,  Chile agradecería  si Brasil  pudiese  
indicar  si habrá  identificado  la causa  de dicho  decrecimiento  para el periodo  de 2017 a 2019,  es 
decir,  previo  a la pandemia  por el COVID -19. 
RESPUESTA:   
Entre  2017 y 2019,  previo  a la pandemia  por el COVID -19, el déficit  de la cuenta  de servicios  registró  
una reducción  de 7,4%.  Esta disminución  se debió  principalmente  a la caída de las importaciones  de 
servicios,  que cayeron  un 4,2%,  mientras  que las exportaciones  se contra jeron solo un 0,5%  en el 
mismo  período.  La reducción  en los gastos  del país con servicios  al exterior  fue determinada  
principalmente  por la menor  adquisición  con alquiler  de equipos  y también  viajes  al exterior,  las dos 
principales  cuentas  del país de gastos con servicios  al exterior.  
 
4.2.8  Telecomunicaciones  
Párrafo  4.138.  p 50.  
"El mercado  de la telefonía  móvil  experimentó  un ciclo de recuperación  durante  los años examinados.  
Tras una disminución  del número  de abonados  de telefonía  móvil  a principios  del período,  que llegó 
a ser de 239 millones  de abonados  en diciembre  de 2017,  este mercado  alcanzó  la cifra de 259 
millones  de abonados  en abril de 2022,  con una teledensidad  de 104,7  líneas  móviles  por cada 100 
habitantes",  
Párrafo  4.139.  p 50.  
"Otro  cambio  durante  el período  examinado  fue la consolidación  de los principales  agentes  del 
mercado  de telecomunicaciones,  entre  otras cosas  mediante  fusiones  de empresas,  como  la fusión  
de Claro y Nextel  en 2019 y de Oi en 2021.  Entre  2017 y 2021,  se constató  una nueva  disminución  
de los precios  en los mercados  mayorista  y minorista,  así como  una amplia  adopción  de las 
aplicaciones  de mensajería  en lugar de los servicios  tradicionales  de voz y SMS. En el período  objeto  
de examen  también  se registró  un aumento  de la proporción  de líneas  de pospago  con respecto  a 
los teléfonos  de prepago,  como  lo demuestra  el hecho  de que actualmente  alrededor  del 53,5%  de 
las líneas  móviles  sean de pospago  (y el 46,5%  de prepago),  en comparación  con el 28,5%  en 2017.  
Además,  los servicios  móviles  siguieron  siendo  importantes  como  medio  de acceso  a Internet  en el WT/TPR/M/432/Add.1  
 
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  Brasil,  habida  cuenta  de que, según  la encuesta  TIC Domicílios  de 2020,  el 64% de la población  
brasileña  (el 49% en 2017)  depende  exclusivamente  de una conexión  móvil  para acceder  a los 
servicios  de Internet.  De esta encuesta  se desprende  que la proporción  de usuarios  de Internet  que 
dependen  (no exclusivamente)  de una conexión  móvil  (que en 2017 era del 96% y aumentó  hasta  
el 99% en 2021)  sigue  siendo  elevada"  
Párrafo  4.140.  p 51.  
"El uso de Internet  también  siguió  registrando  un crecimiento  extraordinario,  estimulado  por el 
aumento  del acceso  a servicios  de banda  ancha  en todo el país como  consecuencia  de las medidas  
adoptadas  por el Gobierno  para ampliar  el acceso y hacer  más asequibles  las conexiones  en el marco  
del Plan Nacional  de Banda  Ancha  y otras políticas  públicas.  El despliegue  de redes  4G se aceleró  
durante  el período  objeto  de examen,  superando  el número  de conexiones  a redes  3G en octubre  
de 2017 y, desde  entonces,  se ha agrandado  la brecha  entre estas tecnologías.  En diciembre  de 
2021,  197,2  millones  de personas  tenían  acceso  a las redes  4G en el Brasil,  y 28,8 millones  de 
personas  a las redes  3G, lo que ha ampliado  de manera  significativa  el acceso  a los servicios  móviles  
de banda  ancha  en los últimos  años.  Además,  el número  de abonados  a servicios  fijos de banda  
ancha,  que en diciembre  de 2017 era de 26,8 millones,  alcanzó  la cifra de 41,7 millones  en diciembre  
de 2021"  
Párrafo  4.141.  p 51.  
"En cambio, el número  de líneas  telefónicas  fijas disminuyó  considerablemente  durante  el período  
objeto  de examen.  En 2017,  41,4 millones  de personas  tenían  acceso  a esas líneas,  mientras  que 
esta cifra fue de tan solo 28,9 millones  de personas  en diciembre  de 2021. También  se registró  una 
disminución  del número  de abonados  a la televisión  de pago,  que pasó de ser de 18,1 millones  de 
abonados  en diciembre  de 2017 a 15,9 millones  de abonados  en diciembre  de 2021"  
 
Pregunta  7: Considerando  lo establecido  en los párrafos 4.138  al 4.141,  sobre  el aumento  del uso 
de telefonía  móvil  y el uso de internet.  Chile agradecería  a Brasil  si pudiese  entregar  más información  
sobre  el uso de datos,  voz y mensajería  en modo  de itinerancia  (roaming),  en particular  para el caso 
de Chile. En específico,  la información  que Brasil  pueda  tener  sobre  el número  de ciudadanos  chilenos  
ocupando  el servicio  de itinerancia  en Brasil  como  también  de ciudadanos  brasileros  utilizándolo  en 
Chile.  Lo anterior,  tomando  en consideración  el acuerdo  bilateral.  
REPLY:  
Brazil  does not currently  have the requested  data. 
 
Párrafo  4.152.  p 53.  
"En 2019,  la Ley General  de Telecomunicaciones  (LGT,  Ley Nº 9.472/1997)  fue modificada  por la 
Ley Nº 13.879/2019  a fin de establecer  un nuevo  marco  que fomente  las inversiones  en banda  ancha  
e infraestructura.  Entre  los principales  cambios  figuran  la posibilidad  de adaptar  las concesiones  de 
telefonía  fija con autorizaciones  orientadas  al mercado,  el establecimiento  de un mercado  secundario  
del espectro  y la introducció n de nuevas  normas  para la renovación  de las licencias  para servicios  
de telecomunicaciones  por satélite.  Estas  normas  permiten  otorgar  licencias  a los operadores  de 
satélite  por un plazo de 15 años,  que se puede  prorrogar  sin limitaciones"  
Párrafo  4.153.  p 53.  
"Otro  cambio  importante  en la legislación  de telecomunicaciones  fue la modificación  de la Ley Nº 
9.998/2000  por la Ley 14.109/2020,  que permite  un uso más eficiente  del Fondo  de Universalización  
de los Servicios  de Telecomunicaciones  (FUST).  Este Fondo  puede  utilizarse  ahora  para realizar  
inversiones  en iniciativas  relacionadas  con las políticas  públicas  de acceso  y conectividad,  a 
diferencia  de lo que ocurría  en el marco  del régimen  anterior,  más estricto,  que solo permitía  al 
Fondo  invertir  en servicios  del régimen  público  (telefonía  fija)" WT/TPR/M/432/Add.1  
 
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Pregunta  8: En los párrafos  4.152  y 4.153  se indican  ciertas  mejoras  a la ley de telecomunicaciones  
de Brasil,  con el objetivo  de hacer  un mercado  más competitivo  a través  de facilitar inversiones  y 
ampliar  el uso de los fondos  de infraestructura.  Al respecto,  Chile agradecería  a Brasil  si pudiese  
indicar  si dichas  modificaciones  contienen  alguna  restricción  a la nacionalidad  de las empresas  que 
buscan  invertir  en Brasil,  de ser así, ¿Existen  requisitos  de establecimiento?  
 
RESPUESTA:   
La Ley General de Telecomunicaciones (LGT, Ley N° 9.472/1997) establece que la prestación de 
servicios de telecomunicaciones debe ser realizada por empresa constituida según las leyes 
brasileñas, con sede y administración en el país. En el actual marco normativo, no hay requisitos de 
nacionalidad específica o limitación cuantitativa para la participación de capital extranjero.  
  WT/TPR/M/432/Add.1  
 
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  CHILE - ADDITIONAL QUESTIONS  
WT/TPR/S/432  – Informe  de Secretaría  
2 REGÍMENES  DE COMERCIO  E INVERSIÓN  
2.2 Formulación  y objetivos  de la política  comercial  
2.2.2  Objetivos  de la política  comercial  
Párrafo  2.14,  p 40. 
"En general,  según  el BID, la estrategia  económica  del Brasil  para el período  2019-2022 se ha basado  
en cuatro  pilares  estratégicos:  i) mejorar  el clima de negocios  y reducir  las lagunas  de infraestructura  
para mejorar  la competitividad;  ii) promover  la integración  nacional  e internacional  para incrementar  
la capacidad  productiva;  iii) construir  un sector  público  más eficaz  que promueva  la sostenibilidad  
fiscal;  y iv) reducir  la desigualdad  social  y la falta de oportunidades  mediante  la mejora  de la 
eficiencia  de las políticas  públicas.  La estrategia  está destinada  a abordar  los retos relacionados  con 
el género  y la diversidad,  la sostenibilidad  medioambiental  y el cambio  climático,  y la innovación  y 
la transformación  digital"  
Pregunta : Respecto  al párrafo  2.14 el cual se refiere  a la estrategia  económica  de Brasil  para el 
periodo  2019-2022 ligados  a retos sobre  innovación  y la transformación  digital,  entre  otros,  Chile 
agradecería  saber  si Brasil  pudiera  compartir  posibles  obstáculos  o incentivos  que ha identificado,  
que pudieran  afectar  el avance  y desarrollo  hacia una economía  digital,  tanto a nivel interno  como  
externo.  
REPLY:  
Since  the 1990s,  Brazil  has adopted  instruments  aimed  at the industrial  development  of companies  
in the ICT sector.  Among  them,  the Information  Technology  Law stands  out. The law amounted  to 
BRL 6.9 billion s in tax waivers  for companies  in the sector  that proved  their RD&I activities,  in 2021.  
In a more general  panorama,  the public  sector  (federal  government  and state governments)  
accounted  for about  53.6%  (USD 196.776  billion)  of the national  expenditure  on RD&I,  from 2010 
to 2019,  and the private  sector,  for approximately  46.4% of the total (USD 170.111  billion ). 
According  to the Ministry  of Science,  Technology  and Innovation  (MCTI)  Information  Technology  Law 
Results  Report  (Base  Year 2019),  the Law benefited  479 companies  in 2019,  of which  42% (202)  
were micro  or small  companies;  33% (159)  medium -sized;  and about  25% (118)  medium -large and 
large companies.  
Regarding  telecommunications  infrastructure,  Brazil  has conducted,  for several  years,  policies  that 
aim at increasing  service  expansion  and adoption.  In order  to focus on long-term policy  coordination,  
Brazil  first issued  a National  Broadband  Plan (2010  -2017),  followed  by the National  Digital  
Transformation  Strategy  (2018 -2022),  with goals and targets  recently  updated  for the period  2022-
2026.  The Brazilian  Telecom  Public  Policy  aims at promoting:   
(a) access  to telecommunications,  especially  through  the expansion  of fixed and mobile  broadband  
internet  access  (with adequate  quality  and speed),  as well as the expansion  of broadband  internet  
access  in areas  where  the supply  is currently  inadequate,  such as remote  areas;   
(b) digital  inclusion,  to guarantee  the population 's access  to telecommunications  networks,  systems  
and services  based  on ICTs;  and  
(c) a market  of broad,  free, and fair competition;  
In addition  to financing  challenges  related  to RD&I and the expansion  of telecommunication  access  
in a continental -size territory,  there  is a need to increase  the number  of trained  engineers,  scientists  
and technologists,  and the creation  of opportunities,  in order  to attract  and retain  qualified  personnel  
to the National  System  of Science,  Technology  and Innovation  (SNCTI).  
In terms  of emerging  technologies  for the digital  economy,  the Brazilian  government  has promoted  
the creation  of eight Applied  Research  Centers  (CPA)  in Artificial  Intelligence  (AI), aimed  at the 
development  of scientific,  technological  and innovation  research.  The Centers  will be supported  for 
a period  of five years,  renewable  for another  five years,  depending  on the results  achieved.  Each 
CPA may receive  up to BRL 1 million  per year from the public  sector  and another  BRL 1 million  from 
one or more partner  companies.  The partnership  contracts  of four of the centers  have already  been WT/TPR/M/432/Add.1  
 
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signed;  two others  are in the process  of concluding  the signature  process  and two more are currently  
undergoing  the selection  process.  
The MCTI and the Brazilian  Company  for Research  and Industrial  Innovation  (EMBRAPII)  created  the 
MCTI/EMBRAPII  Network  of Technologies  and Digital  Innovation  to enhance  the productive  capacity  
and competitiveness  of Brazilian  companies.  The objective  is to encourage  the use of emerging  
technologies  in the production  process  of the nationa l industry,  offering  an innovation  ecosystem  
with complementary  technological  skills,  which  will have non-reimbursable  resources  and research  
centers  with infrastructure  and qualified  professionals  to support  the industry  to innovate,  the called  
EMBRAPII  Units. 
Moreover,  Brazil  has signed  cooperation  agreements  with other  countries,  aiming  at expanding  
scientific  and technological  production.  Between  2020 and 2022,  several  seminars  on the subject  of 
Artificial  Intelligence  were held with Germany,  Japan,  the United  States,  Switzerland  and the 
Netherlands,  among  others.  Brazil  has also launched  calls in collaboration  with the European  Union  
and the USA for research  projects  related  to 5G, IoT, cloud  computing  and cybersecurity.  
Regarding  digital  government  actions, it is worth  mentioning  the implementation  of the legal 
framework  for startups,  through  Complementary  Law No. 182, of June 2021.  The norm encourages  
investments  in research,  development  and innovation  in innovative  companies.  In addition,  it seeks  
to promote  innovation  in the productive  sector,  allowing  the public  sector  to hire innovative  solutions  
through  a simplified  bidding  process,  which  only specifies  the problem  to be solved  and the solutions  
expected  by the Public  Administration.  
Also very important to advance  the digital  transformation  was the preparation  of the Digital  
Government  Strategy  (EGD),  contained  in Decree  10,332  and amended  by Decrees  10,996  and 
11,260.  The EGD contains  principles,  objectives  and initiatives  for digital  government  that represent  
a change  in the state's  relationship  with citizens  by promoting  the use of ICTs. Public  services  
become  citizen -centric  and are designed  to improve  the citizen 's experience  in interaction  with public  
authorities.  
WT/TPR/G/432  – Informe  de Gobierno 
1 PANORAMA  GENERAL  
Párrafo  1.2, p 4. 
"Durante  el período  abarcado  en este examen  de las políticas  comerciales  (2017 -2021),  el comercio  
ha sido una de las líneas  rectoras  del proceso  de modernización  de la economía  brasileña.  En este 
sentido,  el Brasil  ha tratado  de ampliar  su integración  en el comercio  internacional  para aumentar  
la productividad  y la competitividad  de su economía  y garantizar  un crecimiento  sostenible.  Desde  
2019,  el Brasil  aplica  un programa  de comercio  basado  en tres pilares,  a saber:  i) la intensificación  
de la red de acuerdos  comerciales;  ii) la modernización  de la estructura  del arancel  aduanero  del 
MERCOSUR,  y iii) la facilitación  del comercio.  Si bien es cierto  que sigue  habiendo  numerosos  
desafíos,  se han logrado  avances  importantes  en varias  esferas.  Así, por ejemplo,  en julio de 2022 
los Miembros  del MERCOSUR  decidieron  reducir  en un 10%,  de manera  permanente,  su arancel  
exterior  común.  El Brasil  también  ha eliminado  parte  de sus licencias  de importación.  En el programa  
de comercio  del Brasil  también  se ha seguido  haciendo  hincapié  en sus contribuciones  a la seguridad  
alimentaria  y en la eliminación  de las distorsiones  del comercio  —como  las que existen  en el comercio  
de productos  agrícolas — que socavan  las oportunidades  para los países  en desarrollo"  
Pregunta : El párrafo  1.2 menciona  que el bloque  MERCOSUR  decidió  reducir  en un 10%,  de manera  
permanente,  su arancel  externo  común.  Al respecto,  Chile agradecería  a Brasil  compartir  si, en el 
marco  del bloque  MERCOSUR,  se está evaluando  posibles  futuras  reducciones  adicionales.  
REPLY:  
The discussions  are currently  underway.  At the moment,  the only reduction  in place is the one 
established  by Decision  08/22,  which  reduced  the Common  External  Tariff by ten percen t, with some  
exceptions.  This agreement  was reached  in July 2022,  during  the ordinary  meeting  of the Mercosur  
Council  held before  the 60th Summit  of Heads  of State  of Mercosur  and Associated  States  in Asunci ón, 
Paraguay.  WT/TPR/M/432/Add.1  
 
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  3 EVOLUCIÓN  DE LA POLÍTICA  COMERCIA L (2017 -2021)  
3.1 Evolución  reciente  del comercio  exterior  brasileño  
Párrafo  3.2, p 18. 
"El período  2017-2021 se caracterizó  por la generación  de importantes  superávits  en el comercio  de 
mercancías.  El superávit  del comercio  de mercancías  alcanzó  la cifra de USD 57.300  millones  en 
2017,  y se redujo  a USD 43.400  millones  en 2018 y a USD 26.600  millones  en 2019.  En los dos 
años siguientes,  los superávit  aumentaron  de nuevo,  a USD 32.400  millones  y a USD 36.400  
millones,  respectivamente.  En lo que respecta  al destino  de las mercancías,  las exportaciones  a Asia 
se incrementaron  un 67,4%;  a América  del Norte,  un 22,1%;  a Europa,  un 21,7%;  a Oriente  Medio,  
un 3,5%;  y a África,  un 0,9%.  Las destinadas  a América  del Sur disminuyeron  un 3,4%  en ese 
período " 
Pregunta : El párrafo  3.2, sobre  comercio  exterior  brasileño,  menciona  que las exportaciones  a Asia 
se incrementaron  un 67,4%;  a América  del Norte,  un 22,1%;  a Europa,  un 21,7%;  a Oriente  Medio,  
un 3,5%;  y a África,  un 0,9%.  Sin embargo,  las destinadas  a América del Sur disminuyeron  un 3,4%  
en el periodo  (2017 -2021).  Al respecto,  Chile agradecería  conocer  si Brasil  cuenta  con planes  para 
fomentar  sus exportaciones  a América  del Sur, junto con destacar  posibles  políticas  públicas  
relacionadas  con este fomento . 
REPLY:  
Brazil has proposed negotiations to further liberalize existing trade agreements with South American 
partners, such as Chile (rules of origin), Ecuador and Colombia. Moreover, Mercosur members have 
discussed the possibility of incorporating the au tomotive and the sugar sectors into the bloc. In 
2022, Brazil signed free zones agreements with Uruguay and Colombia, establishing free trade of 
goods produced in such zones.  
3.5.2  MERCOSUR  y acuerdos  extrarregionales  
Párrafo  3.47.  p 25. 
"Las negociaciones  entre  el MERCOSUR  y la Asociación  Europea  de Libre Comercio  (AELC)  
concluyeron,  en principio,  en 2019,  dos años después  de la primera  ronda.  La conclusión  de estas 
negociaciones  es otro resultado  de los esfuerzos  para ampliar  la red de acuerd os comerciales  del 
Brasil  y el MERCOSUR  y tuvo lugar poco después  de la conclusión  de las negociaciones  entre el 
MERCOSUR  y la Unión  Europea.  El Brasil  estima  que, al final del período  para la aplicación,  el 97% 
de las exportaciones  de la AELC estará  libre de derechos  o parcialmente  liberalizado  en el 
MERCOSUR,  con una cifra equivalente  de entre  el 98% y el 99% de las exportaciones  del MERCOSUR  
al mercado  de la AELC,  dependiendo  del país importador.  El acuerdo  también  contiene  disposiciones  
sobre  los servic ios, las inversiones,  la contratación  pública  y la propiedad  intelectual.  En julio de 
2022,  el acuerdo  estaba  siendo  objeto  de una revisión  formal  y jurídica  antes  de que las partes  
pudieran  enviarlo  para su firma"  
Pregunta : El párrafo  3.47 se refiere  a las negociaciones  entre el MERCOSUR  y la Asociación  Europea  
de Libre Comercio  (AELC)  el cual, en julio de 2022,  estaba  siendo  objeto  de una revisión  formal  y 
jurídica  antes  de que las partes  pudieran  enviarlo  para su firma.  Al respecto,  Chile agradecería  a 
Brasil compartir  antecedentes  sobre  el estado  actual  y posibles  avances  de este Acuerdo,  
considerando  el periodo  de agosto  2022 a la fecha.  
REPLY:  
Negotiations with the EFTA countries were concluded in 2019. However, there are still a few specific 
technical  discussions undergoing. The technical teams have been working to conclude these pending 
issues as soon as possible. Furthermore, the text of the Agreement is undergoing a legal review. 
This exercise is well advanced, and Brazil expects to conclude these o utstanding discussions, as well 
as the legal review, in 2023.  
 
4 MARCO  INSTITUCIONAL  Y REGLAMENTARIO  DEL COMERCIO  
4.1 Cuestiones  transversales  
4.1.8  Microempresas  y pequeñas  y medianas  empresas  (mipymes)  
Párrafo  4.79,  p 42 WT/TPR/M/432/Add.1  
 
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"La Secretaría  Especial  de Comercio  Exterior  y Asuntos  Internacionales  del Ministerio  de Economía  
dispone  de un marco  institucional  destinado  a apoyar  a las mipymes  que desean  exportar,  a saber,  
el Plan Nacional  de Cultura  Exportadora  (PNCE).  Promueve  acciones  concertadas  a través  de una 
red de instituciones  nacionales  y estatales  para ayudar  a las mipymes  a comerciar  en el extranjero.  
La plataforma  digital  del PNCE  proporciona  a las empresas  brasileñas  una evaluación  empresarial  
generada  automáticamente  y una lista de medidas  recome ndadas  para su aplicación  por esas 
empresas  que les ayudarán  en su camino  hacia la exportación"  
Párrafo  4.80,  p 42 
"Otro  programa  es el denominado  Aprendiendo  a Exportar  (Aprendendo  a Exportar),  que es una 
guía recopilatoria  virtual  que trata de cuestiones  pertinentes  relacionadas  con los procesos  y las 
operaciones  de exportación.  Su enfoque  permite  a personas  procedentes  de entornos  distintos,  
independientemente  de sus conocimientos  previos  en materia  de comercio  internacional,  entender  
el proceso  desde  las primeras  etapas  de la internacionalización  hasta  la venta  efectiva  en el 
extranjero.  Cabe mencionar  que esta herramienta  se concibió  no solo para apoyar  a las mipymes  
que quieran  exportar,  sino también  para difundir  la cultura  exportadora  en todo el país" 
Párrafo  4.81,  p 42 
"Además,  el Gobierno  brasileño,  en asociación  con el Gobierno  británico,  está realizando  esfuerzos  
para aplicar  una plataforma  digital  de servicios  relacionados  con el comercio,  denominada  BRAEXP,  
en el marco  del Programa  de Facilitaci ón del Comercio"  
Párrafo  4.82,  p 42 
"La plataforma  BRAEXP  está concebida  como  un mercado  que conecta  a diferentes  proveedores  y 
sus sistemas,  y en el que las mipymes  podrán  realizar  una evaluación  de la madurez  de las 
exportaciones  y encontrar  una amplia  gama de servicios  de exportación  para atender  sus 
necesidades,  desde  cursos  sobre  aptitudes  de gestión  e investigaciones  de mercados  hasta  servicios  
de financiación,  seguros  y logística.  El proyecto,  que es pionero  en América  Latina,  se basa en el 
concepto  de "Servicios  Integrados  de Comercio  Internacional  para las Mipymes"  (ISMIT),  es decir,  
en la digitalización  y la integración  de todos  los servicios  que posibilitan  las exportaciones"  
Párrafo  4.83,  p 42 
"En esta iniciativa,  cuya coordinación  está a cargo  del Ministerio  de Economía,  participan  otras cinco 
instituciones  nacionales:  el Ministerio  de Relaciones  Exteriores,  la Agencia  Brasileña  de Promoción  
de Exportaciones  e Inversiones  (APEX),  el Servicio  Brasileño  de Apoyo  a las Microempresas  y 
Pequeñas  Empre sas (SEBRAE),  la Confederación  Nacional  de Industria  (CNI)  del Brasil  y la 
Confederación  Brasileña  de Agricultores  y Ganaderos  (CNA)"  
Párrafo  4.84,  p 42 
"Los Gobiernos  brasileño  y británico  tienen  una importante  asociación  en el marco  del Programa  de 
Facilitación  del Comercio  destinada  a promover  un crecimiento  económico  inclusivo  y sostenible  en 
el Brasil  mediante  la internacionalización  de las mipymes  del país. La cooperación  incluye  la creación  
de la plataforma  BRAEXP"  
Párrafo  4.85,  p 42 
"Además,  en el marco  del Diálogo  Comercial  entre  el Brasil  y los Estados  Unidos,  ambos  países  
colaboran  para promover  la cooperación  en materia  de facilitación  del comer cio para las mipymes,  
en particular  mediante  el intercambio  de información  y mejores  prácticas  y la participación  de los 
actores  pertinentes  del sector  privado  en esas iniciativas"  
Párrafo  4.86,  p 42 
"En lo que respecta  a los acuerdos  comerciales  regionale s (ACR),  el Acuerdo  de Libre Comercio  entre  
el Brasil  y Chile (en vigor desde  enero  de 2022),  y los textos  de los acuerdos  de principio  concluidos  
entre  el MERCOSUR  y la Unión  Europea  (en junio de 2019)  y el MERCOSUR  y Singapur  (en julio de 
2022)  contienen  capítulos  dedicados  al apoyo  a las mipymes  en el comercio  transfronterizo.  Las 
disposiciones  de estos capítulos  se centran  principalmente  en la facilitación  del acceso  a la 
información  relacionada  con el comercio,  como  los tipos de los derechos  de aduana  y los reglamentos  
y procedimientos  aplicados  a la importación,  la exportación  y el tránsito,  entre otras cuestiones.  
Además,  se establecen  compromisos  en materia  de cooperación  e intercambio  de información  con 
miras  a mejorar  la capacidad  de las mipymes  para beneficiarse  de las oportunidades  creadas  por 
esos acuerdos"  WT/TPR/M/432/Add.1  
 
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  Pregunta : Chile quisiera  destacar  los programas  y políticas,  identificados  en los párrafos  4.79 al 
4.86, que incentivan  y desarrollan  el camino  de las Mipymes  de Brasil  en la exportación  de sus 
productos  y servicios.  Al respecto,  Chile agradecería  a Brasil  indicar  si existen  incentivos  adicionales  
para que, en el contexto  de la participación  de las Mipymes  en el comercio  exterior,  más mujeres  
puedan  aprovechar  los beneficios  del comercio  exteri or. 
 
REPLY:  
From October  2019 to March  2023,  Brazil  has been implementing,  in partnership  with the United  
Kingdom,  the Brazil  Trade  Facilitation  Program,  which  focuses  on the internationalization  of Brazilian  
micro,  small  and medium -sized enterprises  (MSME s). One of the objectives  of the program  is the 
mainstreaming  of gender  into trade -related  services.  The Brazil  Trade  Facilitation  Program  has 
already  established  the following  export  promotion  services,  with a view to encourage  and support  
women 's participation  in trade:  
a. A business -to-business  (B2B)  virtual  matchmaking  service  with international  buyers;  
b. A business -to-client  (B2C)  e-commerce  export  service;  and 
c. An export -related  capacity  building  for small producers  of non-timber  forest  products (NFTPs)  in 
the threatened  biomes  of the Amazon  and the "Cerrado ". 
In each of these  export  promotion  services,  the program  adopted  one or more initiatives  to 
specifically  encourage  and support  women 's participation  in trade,  as follows:  
a. In the B2B service,  the program  increased  the female  participation  in the roundtables,  through  
the following  actions:  (i) selecting  key sectors  with a high concentration  of women -owned  and 
women -led companies;  (ii) promoting  'dialogue  roundtables ' and networking  through  social  media  
groups  (such  as WhatsApp)  to foster  knowledge  exchange  between  more experienced  and less 
experienced  participants;  and (iii) providing  translation  services,  to ensure  that the language  is not 
a barrier  to female  participation  in exports.  
b. In the B2C service,  the program  needed  to work closely  with female  networks  in Brazil  and 
promote  free-of-charge  and flexible  training  to the participants.  
c. In the NFTPs  service,  the program  worked  to raise the cooperatives'  awareness  of the importance  
of sustainability  and inclusion  to differentiate  and add value  to their products  in international  
markets.  To allow the inclusion  of G&I data in the companies'  export  strategies,  the BTF updated  
their registration  system,  allowing  for the disaggregation  of gender  and ethnic  data of the producers.  
In addition  to the export  promotion  services,  the program  also developed  content,  targeting  MSMEs  
and business -supporting  organizations,  to foster  gender  and inclusion  in trade.  The content  include:  
a. A toolkit  to make  trade promotion  initiatives  more inclusive;  
b. An infographic  with ten valuable  tips for women  in international  negotiations;  and 
c. A practical  guideline  for gender  and inclusion  in small  and medium -sized enterprises,  focusing  on 
mana gement,  communication  and exports.  
  WT/TPR/M/432/Add.1  
 
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TÜRKIYE  
THE GOVERNMENT  REPORT  (WT/TPR/G/432)  
3.5 MERCOSUR,  3.41,  p. 22 
On page 22 of The Government  Report,  it is stated  that "In 2020,  MERCOSUR  Members  concluded  
the negotiations  of the Electronic  Commerce  Agreement.  In light of the increasing  importance  of e-
commerce  in Brazilian  and regional  economies,  this Agreement  aims at facilitating  trade by electronic  
means,  providing  legal certainty  and creating  an environment  that protects  users  of e-commerce,  
their privacy  and data. In that regard,  MERCOSUR's  Electronic  Commerce  Agreement  provides  for 
non-imposition  of customs  duties  on electronic  transmissions;  electronic  authentication  and 
signature;  online  consumer  protection;  protection  of personal  information;  cross-border  transfer  of 
information  by electronic  means;  location  of computing  facilities;  principles  on the access  and use 
of the Internet  for electronic  commerce;  unsolicited  commercial  electronic  messages  ("spam");  
electronic  commerce  facilitation;  and cooperation. " 
Question:   
Could  Brazil  kindly  elaborate  on the MERCOSUR  Agreement  on Electronic  Commerce  (2020)  in the 
scope  of cross-border  transfer  of information  by electronic  means  and location  of computing  
facilities?  
REPLY:   
The MERCOSUR Agreement o n Electronic Commerce includes specific articles regarding the cross -
border transfer of information by electronic means and location of computing facilities. For cross -
border transfer of information, the agreement provides for the free flow of information for business 
purposes, subject to the relevant disciplines on protection of personal data. In its turn, dispositions 
on location of computing facilities state that no MERCOSUR country will require another MERCOSUR 
country to use or locate computing facilit ies in its territory as a condition for conducting business, 
while also recognizing that housing personal information in computing facilities abroad can configure 
a cross -border transfer of information. Both articles do not cover financial services.  
 
  WT/TPR/M/432/Add.1  
 
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  DOM INICAN REPUBLIC  
Párrafo  2.1 Enumera  los riesgos  de deterioro  de las perspectivas  económicas  del Brasil.   
Pregunta  1: ¿Qué medidas  precautorias  ha asumido  el gobierno  brasileño  para disminuir  el 
desequilibrio  fiscal (alto nivel de deuda  pública),  la elevada  tasa de desempleo  y las presiones  
inflacionarias?   
REPLY:  
Please  refer to paragraphs  2.1 to 2.5 of Government  Report.  
Párrafo  1.2.1  referente  al programa  "Brasil  Mais",  
Pregunta  2: ¿Qué parámetros  de diagnóstico  se utilizaron  para identificar  las mejoras  en el aumento  
de la productividad  y la competitividad  de las MIPYMES  de los sectores  de la industria,  el comercio  
y los servicios?  
RESPUESTA:  
La productividad  del trabajador  brasile ño viene  cayendo  a lo largo de los años.  Según  datos  de la 
Organización  para la Cooperación  y el Desarrollo  Económicos  (OCDE),  se necesitan  cuatro  brasileños  
para hacer  el mismo  trabajo  que un estadounidense.  El problema  de la productividad  es más 
pronunci ado en las micro,  pequeñas  y medianas  empresas  (MIPYMES).  
"Brasil  Mais" es una iniciativa  del Gobierno  Federal  para aumentar  la productividad  de las MIPYMES  
brasileñas  mediante  la mejora  de las prácticas  de gestión  y producción  y la transformación  digital.  
Es un programa  de bajo costo  y rápida  implementación  que ofrece  soporte  técnico  y capacitación  
para ayudar  a las empresas  a mejorar  la gestión,  innovar  procesos,  reducir  el desperdicio  y aumentar  
las ventas.  
Actualmente,  en alianza  con el Instituto  de Investigaciones  Económicas  Aplicadas  (IPEA),  se está 
realizando  una evaluación  de impacto  (ex-post) de "Brasil  Mais" con el objetivo  de identificar  sus 
contribuciones  como  instrumento  para promover  el crecimiento,  el desarrollo  y el aumento  de la 
productivida d, también  midiendo  su impacto  en los ingresos  de las empresas  atendidas.  Como  
resultado,  además  de identificar  los elementos  positivos,  se describirán  los desafíos  y 
recomendaciones  para su resolución  y, en consecuencia,  la mejora  de la política.  
Párrafo  2.4 Relativo  al Régimen  de inversión,  La IED del Gobierno  de Brasil  está presente  en toda 
su economía,  si bien existen  limitaciones  a la propiedad  extranjera  en determinados  sectores.  A 
pesar  de qué, debido  a las medidas  restrictivas  del comercio  en los mercados  extranjeros  y en 
consonancia  con las tendencias  mundiales  de la inversión,  las entradas  de IED son relativamente  
irregulares.  
Pregunta  3: ¿Cuáles  son las restricciones  aplicadas  a los gobiernos  extranjeros  para el acceso  de 
inversiones  a Brasil?  
RESPUESTA:  
Como  regla general,  el capital  extranjero  recibe,  en Brasil,  el mismo  trato que el capital  nacional,  
como  designado  en la Constitución  Federal  de Brasil  de 1988.  Limitaciones  al capital  extranjero  son 
excepcionales,  estipuladas  expresamente  en ley, como  en los sectores  de servicios  postales  y de 
energía  nuclear.  No obstante  la existencia  de restricciones  puntuales,  recientes  modificaciones  
legales  ampliaron  el acceso  del capital  extranjero  al mercado  brasileño  y retiraron  limitaciones  
cuantitativas  antes  existentes,  notadamente  en los sectores  de servicios  de telecomunicaciones  y de 
transporte  aéreo.   WT/TPR/M/432/Add.1  
 
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2.2.3.2  Transparencia  y comercio  electrónico   
2.27.  En 2020,  el Brasil  concluyó  un acuerdo  sobre  normas  comerciales  y transparencia  con los 
Estados  Unidos.  El acuerdo  contiene  anexos  sobre  buenas  prácticas  de reglamentación,  facilitación  
del comercio  y lucha  contra  la corrupción.  
 
Pregunta  4: ¿Podrían  precisar si ese acuerdo  se encuentra  en implementación  y si incluye  
mecanismos  de cooperación  para su implementación?  
 
RESPUESTA:  
The Agreement  is already  in force.  Since  2006,  the Commercial  Dialogue,  a bilateral  mechanism  
between  the US Department  of Commerc e and the Secretariat  of Foreign  Trade  from the Ministry  of 
the Economy,  functions  as a cooperation  mechanism  between  the two countries,  and dialogues  exist 
to facilitate  the implemention  of the agreement.   
 
2.4.2  Actividades  restringidas  
 
2.49. Las restricciones  a la inversión  extranjera  siguen  afectando  a algunas  actividades,  como  la 
energía  nuclear,  determinados  servicios  postales,  determinados  servicios  sanitarios  y los medios  de 
comunicación  (cuadro  2.2 y sección  4.4). Los extranjeros  y las empresas  y negocios  bajo control  
extranjero  no pueden  poseer  tierras  en determinadas  zonas  dentro  de un radio de 150 kilómetros  
de las fronteras  nacionales  del Brasil,  directamente  en la costa  o en cualquier  otra zona geográfica  
designada  y definida  como  zona sensible  para la seguridad  nacional;  la propiedad  extranjera  de 
estas zonas  requiere,  entre otros trámites,  la autorización  del Consejo  de Defensa  Nacional  del 
Brasil.  Además,  la superficie  de tierra  agrícola  comprada  o arrendada  por extranjeros  no puede 
representar  más del 25% de la superficie  total de un distrito  municipal  determinado,  y no se puede  
vender  o arrendar  más del 10% de las tierras  agrícolas  de un distrito  municipal  a nacionales  
extranjeros  procedentes  del mismo  país. El proyecto  de ley Nº 4.059/2012,  que eliminaría  los límites  
a la propiedad  extranjera  de las tierras  agrícolas,  está pendiente  de votación  en el Congreso  
brasileño  desde  2015. En diciembre  de 2020,  el Senado  aprobó  un proyecto  de ley (el Proyecto  de 
ley Nº 2.963/2019)  para flexibilizar  las restricciones  a la propiedad  de tierras  por extranjeros;  en 
junio de 2022,  este proyecto  estaba  siendo  examinado  por la Cámara  de Diputados.   
 
Pregunta  5: ¿Para  cuándo  se tiene prevista  la aprobación  del Proyecto  de Ley No. 4.059/2012?  
 
RESPUESTA:  
No hay previsión  posible  para la aprobación  del proyecto,  ya que correpsonde  al Congreso  el proceso  
legislativo.   
La Cámara de los Diputados y el  Senado Federal  son denominados internamente de  Congreso 
Nacional, que tiene como principales responsabilidades elaborar las leyes y proceder a la fiscalización 
contable, financiera, presupuestaria, operacional y patrimonial de la Unión y de las entidades de la 
administración directa e indirecta.  
El sistema bicameral adoptado por Brasil prevé la manifestación de las dos Casas en la preparación 
de las normas judiciales. Esto es, si una materia tiene inicio en la Cámara de los Diputados, el 
Senado hará su revisión y viceversa a la excepción de materias pa rticulares de cada órgano.  
El Congreso Nacional trabaja en períodos de tiempo propios y por ende el Poder Ejecutivo no puede 
prever cuándo o si será aprobado el proyecto mencionado.  
Pregunta  6: ¿Esos  proyectos  de ley no perimen  en el Congreso?  
 
RESPUESTA:  
 
No hay previsíon  de derogación  de proyectos  presentados  al Congreso.   
 
2.4.6  Tratados  bilaterales  y cooperación  internacional  
 
2.57.  Durante  el período  examinado,  el Brasil  continuó  sustituyendo  sus 14 acuerdos  bilaterales  de 
promoción  y protección  de las inversiones  firmados  entre  1994 y 1999,  además  de negociar  y firmar  
acuerdos  de cooperación  y facilitación  de las inversiones  que se ajustan  a las directrices  de la CAMEX,  WT/TPR/M/432/Add.1  
 
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  la UNCTAD  y la OCDE  y se basan  en la reducción  de riesgos,  la gobernanza  institucio nal y las agendas  
temáticas  (véase  infra).  
 
Pregunta  7: Agradeceríamos  más detalles  sobre  en qué consiste  la sustitución  de los acuerdos  
bilaterales  de promoción  y protección  de las inversiones  suscritos  por Brasil  entre 1994 y 1999.  
 
RESPUESTA:  
El reporte  se refiere  a los acuerdos  de promoción  y protección  de inversiones  suscritos  en los años 
90 que jamás  fueron  aprobados  por el Congreso  Nacional  de Brasil,  lo que imposibilitó  su ratificación.  
Posteriormente,  los problemas  identificados  por los legisladore s con respecto  a esos acuerdos  fueron  
llevados  en cuenta  en la elaboración  del modelo  de Acuerdo  de Cooperación  y Facilitación  de 
Inversiones  (ACFI),  que Brasil  negocia  desde  el 2014.  Es decir,  técnicamente  no se trata de 
sustitución  de acuerdos,  sino de no ratificación  y, en consecuencia,  negociación  de un nuevo  modelo.  
No obstante  contenga  herramientas  relevantes  para proteger  las inversiones  que se encuentran  en 
los acuerdos  clásicos  de promoción  y protección  de inversiones  - como  el Trato Nacional  y de Nación  
Más Favorecida,  la transparencia,  así como  condiciones  específicas  para la expropiación  directa,  la 
compensación  por pérdidas,  y los pagos  y transferencias  – el modelo  ACFI favorece  mecanismos  de 
prevención  de controversias  basados  en el diálogo  y la consulta  bilateral  (a través  de un 
Ombudsperson  y un Comité  Conjunto),  previos  al procedimiento  de arbitraje  Estado -Estado.  
También  establece  agendas  temáticas  para la futura  cooperación  y facilitación  donde  las Partes  del 
tratado  pueden  trabajar  cuestio nes específicas  de sus relaciones  de inversión.  
 
 
Pregunta  8: ¿Después  de ese período  se suscribieron  acuerdos  de promoción  y protección  de las 
inversiones?  Especificar  por qué tipo de acuerdo  han sido sustituidos,  en su caso. 
 
RESPUESTA:  
 
Brasil  no volvió  a suscribir  acuerdos  clásicos  de promoción  y protección  de las inversiones  como  
aquellos  14 suscritos  en los años 90. El Acuerdo  de Cooperación  y Facilitación  de Inversiones  (ACFI),  
desarrollado  por el gobierno  brasilero,  es el modelo  de acuerdo  de inversión  que Brasil  viene  
negociando  y suscribiendo  desde  el 2014.  
 
Párrafo  3.5 referente  al Sistema  Integrado  de Comercio  Exterior:  
Pregunta  9: ¿Qué cambios  o medidas  se han llevado  a cabo para facilitar  la eficientizarían  de este 
sistema  en el marco  de las tecnologías  implementadas?  
RESPUESTA:  
 
El desarrollo  de la Ventanilla  Única  de Brasil  se basó en el uso de estándares  internacionales  para 
documentos  de comercio  exterior.  Contar  con un sistema  altamente  tecnológico  que no utiliza  
estándares  internacionales  hace inviable  la interoperabilidad  entre  las Ventanillas  Únicas  regionales  
y globales.  
La interoperabilidad  entre  Ventanillas  Únicas  es una de las mayores  razones  para reducir  tiempos  y 
costos,  ya que es posible  recibir  información  con anticipación,  cruzar  datos  de diferentes  actores  e 
incluso  elimina  la necesi dad de brindar  la misma  información  más de una vez. Pronto,  la Ventanilla  
Única  logra una capacidad  de control  más inteligente  a través  de la gestión  de riesgos,  interviniendo  
menos  en la logística  de los actores  privados,  beneficiando  tanto a la administr ación pública  como  
al sector  privado,  redundando  en reducción  de tiempos  y costos.  Esta es una de las principales  
medidas  de facilitación  del comercio.  
De esa forma,  la primera  actividad  del proyecto  Portal  Único  de Comercio  Exterior  fue la 
armonización  de datos,  la cual mapeamos  los datos  con los principales  estándares  internacionales  
como  WCO DataModel,  ePhyto  IPPC,  IATA CargoXML,  COD ALADI,  estándares  UNCEFACT,  IMO FAL 
Forms,  entre otros.  
 WT/TPR/M/432/Add.1  
 
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Párrafo  3.64 concerniente  a la Única  Declaración  de exportación  (DU-E): 
Pregunta  10: ¿A nivel de volumen  exportador,  ¿Cómo  se evidencia  que la fusión  del registro  de 
exportación  y la declaración  de exportación  ha afectado  la actividad  exportadora?  
RESPUESTA:  
 
Con la fusión  del registro  de exportación  y la declaración  de exportación,  se identificó  una reducción  
del 70% en los documentos  entregues  por el exportador  y una reducción  del 60% en la cantidad  de 
campos  necessarios  a seren  completados  por el exportador.  Además  de que todos  los documentos  
ahora  se entregan  electró nicamente  (el 99% del comercio  sin papel,  el 1% son documentos  en papel  
debido  a la obligación  de los acuerdos  comerciales,  como  el certificado  fitosanitario  o el certificado  
de origen),  también  se utiliza  la firma digital  y ya no se firma con bolígrafo.  
Tales medidas  permitirán  una reducción  de 13 días a 5 días en el tiempo  promedio  de exportación,  
lo que significa  que Brasil  ha duplicado  su capacidad  para despachar  carga  de exportación  a través  
de puertos,  aeropuertos  y fronteras  terrestres  brasileñas.  
Párrafo  3.66 Con respecto  al Proyecto  de Certificados  de Origen  Digitales:   
Pregunta  11: ¿Es aparente  alguna  desventaja  a las PYMES  causada  por el requerimiento  de 
sistemas  informáticos  de un grado  específico  de modernidad  tecnológica  para la declaración  de 
bienes  de exportación?  
RESPUESTA:  
 
No hay desventajas  a las PYMEs  en la utilización  de Certificados  de Origen  Digital  - COD. Por el 
contrario,  la utilización  de CODs  permite  una reducción  de los costos  de emisión  de documentos  a 
las PYMES.  Las entidades  emisoras  de los certificados  de origen  en Brasil  tienen  sus sistemas  
informáticos  ya desarrollados  y están  disponibles  para apoyar  a todos  los exportadores,  
principalmente  las PYMEs.  
Párrafo  3.90 Acerca  del programa  Financiación  PROEX:  
Pregunta  12: ¿Cuáles  actividades  de seguimiento  y gestión  fueron  puestos  en marcha  para 
monitorear  el uso efectivo  de los fondos  y asegurar  el retorno  de esta inversión  como  práctica  
efectiva  para la potenciación  de la actividad  exportadora?  
RESPUESTA:  
 
At the first quarter  of every  year, the Exports  Financing  and Guarantees  Committee  (Cofig)  prepares  
a report  on the performance  of the program  in the previous  year. That report  presents  an overview  
of the transactions  financed  by Proex,  describing  features  such as the types and economic  complexity  
of exported  goods,  destination  countries,  and the quantity  of companies  supported  by the program.  
Moreover,  there  are bodies  and councils  within  the Brazilian  government  structure  that periodically  
evaluate  different  public  policies. In 2021,  for example,  the Council  of Policy  Monitoring  and 
Evaluation  selected  Proex  as one the policies  that will be subject  to in-depth  evaluation  in 2022.  
Therefore,  different  government  bodies  with expertise  in policy  evaluation,  such as the Institute  for 
Applied  Economic  Research,  have been working  alongside  the technical  experts  of the Ministry  of 
Economy  and "Banco  do Brasil " on a thorough  impact  evaluation  of the program.  
Párrafo  3.128  donde  se menciona  a la Agencia  Nacional  de Vigilancia  Sanitaria (ANVISA)  
Pregunta  13: Se solicita  conocer  en qué fase de implementación  está la normativa  RDC No. 432 
sobre  etiquetado,  donde  se establece  la obligación  de indicar,  en portugués,  la composición  química  
en las etiquetas  de los productos  de higiene  personal,  cosméticos  y perfumes.  En nuestros  
intercambios  con el punto  de contacto  OTC-OMC de Brasil  en 2021,  nos informaron  que estaban  
evaluando  retrasar  la entrada  en vigor para noviembre  2023 y que evaluaban  alternativas  como  la 
utilización  de códigos  QR para minimizar  los costos  de estas nuevas  prescripciones  en materia  de 
etiquetado.   WT/TPR/M/432/Add.1  
 
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  REPLY:  
It must be highlighted  that Brazil  published  Resolution  RDC 499/2022,  that postponed  the entry  into 
force of Resolution  RDC 432/2020  until November  1st, 2023.  It also allows  the use of QR codes  to 
fulfill labelling  requirements.  
Párrafo  4.25: ¿Cuál  es el sacrificio  fiscal o gasto  tributario  que representan  los programas  federales  
de apoyo  y fomento  a las actividades  agrícolas/rurales?  
RESPUESTA:  
 
Brazil  Current  Total AMS in the period  from July 2019 to June 2020 was USD 9,12 billion.  Public  
spend  on the same  period  was approximately  USD 529,11  billion.  
Párrafo  4.35 donde  se menciona  del Plan Sectorial  de Mitigación  y Adaptación  al Cambio  Climático  
para la Consolidac ión de una Economía  con Bajas  Emisiones  de Carbono  en la Agricultura  (Plan ABC):  
Pregunta  14: ¿Cuáles  son los requisitos  que debe cumplir  un productor  para ser considerado  como  
beneficiario  de los créditos  rurales  ofrecidos  por este plan?  
RESPUESTA:  
 
En Brasil  existe  el Plan Sectorial  para la Adaptación  al Cambio  Climático  y Bajas  Emisiones  de 
Carbono  en la Agricultura  - Plan ABC+  (https://www.gov.br/agricultura/pt -
br/assuntos/sustentabilidade/plano -abc/arquivo -publicacoes -plano -abc/final -isbn-plano -setorial -
para-adaptacao -a-mudanca -do-clima -e-baixa -emissao -de-carbono -na-agropecuaria -
compactado.pdf ), que trae en su ámbito  un plan estratégico  de implementación,  las bases  
conceptuales  y la estrategia  de gobernanza,  así como  un programa  específico  de financiación.  El 
Plan ABC+  hace parte del Plan Safra,  del Ministerio  de Agricultura,  Ganadería  y Abastecimiento  
(https://www.gov.br/agricultura/pt -br/assuntos/politica -agricola/pla no-safra/2022 -2023/ ). 
El Plan ABC+  tiene como  objetivo  promover  la adaptación  de la agricultura  y la ganadería  brasileñas  
al cambio  climático  y la mitigación  de las emisiones  de GEI, con el aumento  de la eficiencia  y la 
resiliencia  de los sistemas  de produ cción,  a través  de la gestión  integrada  del paisaje.  
El núcleo  del Plan son los Sistemas,  Prácticas,  Productos  y Procesos  de Producción  Sostenibles  
(SPSABC),  que, una vez adoptados,  permiten  lograr  una agricultura  y una ganadería  más resilientes  
y sostenib les, en términos  sociales,  económicos  y medioambientales.  El SPSABC  lleva al terreno  un 
concepto  de uso conservacionista  de los recursos  naturales,  especialmente  suelo y agua,  
considerando  un "complejo  de tecnologías  sistémicas  para conservar,  preservar  o recuperar  los 
recursos  naturales  con una gestión  integrada  del suelo,  el agua y la biodiversidad,  compatible  con 
el uso de insumos  externos".  
Los métodos  de producción  contenidos  en el ABC+  garantizan  la eficiencia  y la rentabilidad  del 
sistema  productivo,  al tiempo  que promueven  la conservación  de los recursos  naturales  y del 
ecosistema.  Por lo tanto,  la línea de crédito  del Plan de Cultivos,  conocida  como  Programa  ABC+,  
sólo financia  las tecnologías  de producción  sostenibles  y resilientes  contenidas  en el Plan, a saber:  
(i) sistemas  de integración  de cultivos,  ganado  y bosques  (ILPF)  y sus combinaciones,  como  la 
integración  de cultivos  y ganado  (ILP),  la integración  de cultivos  y bosques  (IPF),  la integración  de 
cultivos  y bosques  (ILF);  
ii) Sistemas  agroforestales  (SAF);  
iii) Prácticas  de Recuperación  y Renovación  de Pastos  Degradados  (PRPD);  
iv) Sistema  de Siembra  Directa  de Cereales/Caña  de Azúcar  (SPDG);  
v) Sistema  de Siembra  Directa  Vegetal  (SPDH);  
vi) Bosques  plantados  (FP); WT/TPR/M/432/Add.1  
 
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vii) Gestión  de residuos  ganaderos  (MRPA);  
viii) Bioinsumos  (BI); 
ix) Sistemas  de regadío  (SI); y 
x) Faena  de animales  en régimen  intensivo  (TI). 
Cabe señalar  que es probable  que todos  los productores  rurales  adopten  el SPSABC,  siempre  que 
quieran  pasar  de un sistema  degradante  a otro más sostenible  y resistente.  Sin embargo,  esta 
adopción  puede  ocurrir  con el uso de recursos  de la línea de crédito  oficial  del Gobierno  Federal  o 
mediante  el uso de otras formas  de financiación,  esta decisión  es voluntaria.  Una vez consc iente de 
los beneficios  de utilizar  el SPSABC,  el productor  puede  optar  por la financiación  oficial  y solicitar  
recursos  de la línea de crédito.  
Antes  de que los productores  rurales  puedan  solicitar  un crédito  a través  del sistema  bancario  oficial,  
deben  presentar  numerosos  documentos  exigidos  por el sistema  financiero.  Entre  los documentos  
figuran  certificados  y garantías,  habituales  en este tipo de préstamos.  Toda esta normativa  está 
recogida  en el Manual  de Crédito  Rural (MCR).  
El MCR contiene  todas  las normas  aprobadas  por el Consejo  Monetario  Nacional  (CMN),  publicadas  
por el Banco  Central  de Brasil,  a las que deben  atenerse  los beneficiarios  y las instituciones  
financieras  que operan  en el Sistema  Nacional  de Crédito  Rural (SNCR).  El MCR exige  inicialm ente:  
(i) Cumplimiento  de las recomendaciones  y restricciones  de la zonificación  agroecológica  y de la 
zonificación  ecológico -económica  (ZEE);  
ii) Presentación  de coordenadas  geodésicas  (CG),  vinculadas  a una zona delimitada  de la finca 
rústica,  entregadas  en soporte  físico o electrónico.  
iii) Documento  expedido  por un registro  de la propiedad  con fecha  no superior  a 1 (un) año que 
acredite  la dominialidad  de la finca rústica.  
iv) Solicitud  de regularización  de tierras,  en caso de ocupación  en una zona del Gobierno  Federal;  
v) Documento  acreditativo  de la ocupación  regular  de zonas  en los Estados,  de acuerdo  con la 
normativa  estatal  específica;  
vi) Declaración  del órgano  responsable  de las Reservas  de Desarrollo  Sostenible,  Reservas  
Extractivas  y Bosques  Nacionales  que formen  parte de Unidades  de Conservación  de Uso Sostenible.  
vii) Declaración  Aptitudinal  del Pronaf  (DAP)  o documento  del Registro  Nacional  de la Agricultura  
Familiar  del Programa  Nacional  de Fortalecimiento  de la Agricultura  Familiar  (CAF-Pronaf);  y 
(viii) presentación  del recibo  de registro  en el Catastro  Ambiental  Rural (CAR)  y cumplimiento  del 
Código  Forestal  Brasileño.  
Además  de estos documentos,  para el Programa  ABC+  existe  también  en el MCR la necesidad  de 
presentar  un proyecto  técnico  básico,  que es el mayor  diferencial  de esta línea para las demás  
contenidas  en el Manual.  El proyecto  técnico  básico  debe ser específico  del inmueble  donde  se 
instalará  uno de los SPSABC,  con al menos  4 puntos  georreferenciados,  donde  las partidas  a financiar  
deben  estar necesariamente  alineadas  con los objetivos  del Programa  ABC+,  que son: 
I - reducir  las emisiones  de gases  de efecto  invernadero  derivadas  de las actividades  agrícolas  y 
ganaderas;  
II - reducir  la deforestación  
III - aumentar  la produ cción agrícola  y ganadera  sobre  bases  sostenibles;  
IV - adecuación  de las propiedades  rurales  a la legislación  medioambiental;  WT/TPR/M/432/Add.1  
 
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  V - aumentar  la superficie  de bosques  cultivados;  y 
VI - estimular  la recuperación  de zonas  degradadas;  
Además  del proyecto  técnico, se requiere  lo siguiente:  
I - que el proyecto  técnico  específico  sea firmado  por un profesional  cualificado,  conteniendo  
obligatoriamente  la identificación  del inmueble  y su superficie  total;  
II - un esbozo  descriptivo  y la historia  del uso de la zona del proyecto;  
III - comprobante  de análisis  de suelo  y la respectiva  recomendación  agronómica,  conteniendo  el 
contenido  de materia  orgánica  del suelo,  además  de los ítems  usuales;  
IV - un plan de gestión  agrícola,  agroforestal  o forestal,  según  proceda,  para la zona del proyecto;  
V - para un proyecto  técnico  específico  de agricultura  orgánica,  se requiere  la inscripción  en el 
Registro  Nacional  de Productores  Orgánicos  o una declaración  de seguimiento  del proyecto  de 
conversión  emitida  por una certificadora  acreditada  por el Ministerio  de Agricultura,  Ganadería  y 
Abastecimiento;  y 
VI - para los proyectos  técnicos  específicos  que incluyan  la aplicación  de planes  de gestión  forestal  
sostenible,  el plan de gestión  debe ser aprobado  por el organismo  medioambienta l competente.  
Pregunta  15: ¿Qué resultados  ha visto este plan con respecto  al incentivo  de introducción  de 
operaciones  agrícolas  con bajas  emisiones  de carbono?  
RESPUESTA:  
Todas  las bases  conceptuales  y estructuras  del Plan ABC+  se fundamentan  en la ciencia  y se insertan  
en el concepto de promoción  de una agricultura  con bajas  emisiones  de carbono.  Las tecnologías  
definidas  en ABC+,  conocidas  como  Sistemas,  Prácticas,  Productos  y Procesos  de Producción  
Sostenibles  (SPSABC),  cuando  se adoptan  en el campo,  promueven  la sostenibilidad,  la resiliencia  y 
la conservación  de los recursos  naturales.  
Como  resultado  de los diez primeros  años de aplicación  del Plan ABC (2010  a 2020)  hemos  tenido  
lo siguiente:  
i) Mejor  secuestro  de carbono  y reducción  de las emisiones  de gases  de efecto  invernad ero (GEI);  
ii) Reducción  de la necesidad  de nuevas  deforestaciones;  
iii) Recuperación  de la calidad  y la capacidad  productiva  del suelo;  
iv) Reducción  de la erosión  y de la escorrentía  superficial  del agua de lluvia;  
v) Mejor  infiltración  del agua de lluvia; 
vi) Mejor  cobertura  del suelo a lo largo del ciclo productivo;  
vii) Aumento  de la fijación  de carbono  en el suelo y en la biomasa,  con mayor  concentración  de 
materia  orgánica  en el suelo (SOM)  y enriquecimiento  de la biodiversidad;  
viii) Menor  evaporaci ón del agua del suelo;  
ix) Menor  incidencia  de plagas  y menor  uso de agroquímicos;  
x) Diversificación  de la producción  en la misma  zona y minimización  de los riesgos  climáticos  y de 
mercado;  
xi) Bienestar  animal  debido  al microclima  generado  por el compone nte arbóreo  en el sistema  
productivo;  WT/TPR/M/432/Add.1  
 
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xii) Tecnología  adaptada  a los agricultores  familiares,  pequeños,  medianos  y grandes  productores;  
xiii) Promueve  una mayor  resistencia  sobre  el terreno;  y 
xiv) Permite  la integración  de sistemas  y tecnologías  de producción  sostenibles.  
Más informaciones  sobre  los resultados  del Plan ABC (2010  a 2020)  pueden  ser consultadas  en: 
https://www.input brasil.org/wp -content/uploads/2020/10/Agroicone -Estudo -Plano -ABC-2020.pdf . 
Pregunta  16: ¿Qué pautas  se utilizan  para la evaluación  del desarrollo  del potencial  económico  en 
conjunto  con el impacto  ambiental  de estos proyectos?  
RESPUESTA:  
Con base en lo respondido  anteriormente,  los SPSABC  ya han sido estudiados  y probados  en todo el 
territorio  nacional,  es decir,  sólo pasaron  a formar  parte de la ABC+  cuando  se comprobó  que 
incrementan  la producción  y productividad  en el campo,  mejorando  el ingreso  del productor rural,  
además  de desarrollar  grandes  beneficios  al sistema  productivo  y al medio  ambiente,  tales como:  
i) Mejor  secuestro  de carbono  y reducción  de las emisiones  de gases  de efecto  invernadero  (GEI);  
ii) Reducción  de la necesidad  de nuevas  deforestac iones;  
iii) Recuperación  de la calidad  y la capacidad  productiva  del suelo;  
iv) Reducción  de la erosión  y de la escorrentía  superficial  del agua de lluvia;  
v) Mejor  infiltración  del agua de lluvia;  
vi) Mejor  cobertura  del suelo a lo largo del ciclo product ivo; 
vii) Aumento  de la fijación  de carbono  en el suelo y en la biomasa,  con mayor  concentración  de 
materia  orgánica  en el suelo (SOM)  y enriquecimiento  de la biodiversidad;  
viii) Menor  evaporación  del agua del suelo;  
ix) Menor  incidencia  de plagas  y menor  uso de agroquímicos;  
x) Diversificación  de la producción  en la misma  zona y minimización  de los riesgos  climáticos  y de 
mercado;  
xi) Bienestar  animal  debido  al microclima  generado  por el componente  arbóreo  en el sistema  
productivo;  
xii) Tecnología  adaptada  a los agricultores  familiares,  pequeños,  medianos  y grandes  productores;  
xiii) Promueve  una mayor  resistencia  sobre  el terreno;  y 
xiv) Permite  la integración  de sistemas  y tecnologías  de producción  sostenibles.  
  WT/TPR/M/432/Add.1  
 
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  DOMINICAN REPUBLIC  – ADDITIONAL QUESTIONS  
Pág. 43 
2.21. Para el Brasil  sigue  siendo  importante  elaborar  leyes que sean transparentes  y de fácil acceso,  
también  para los extranjeros.  Desde  2012 el Gobierno  Federal  ha puesto  a disposición  de los 
ciudadanos,  de conformidad  con la Ley de Acceso  a la Información  (LAI),  una plataforma  unificada  
que permite  registrar  el acceso  en línea a las solicitudes  de información,  también  a los extranjeros  
(http://www.informacao.gov.br ); a 11 de marzo de 2021,  su plataforma  Fala.BR  había  alcanzado  
un millón  de solicitudes  de acceso  a la información  dirigidas  a organismos  y entidades  del poder  
ejecutivo  federal.  Con arreglo  a la Política  Nacional  de Datos  Abiertos  de 2016,  la Gaceta  Oficial  
Federal  debe estar disponible  en formato  abierto  antes  de que transcurran  180 días de la publicación.  
Las leyes brasileñas  pueden  obtenerse  en el sitio web principal  sobre  legislación  
(http://www4.planalto.gov.br/legislacao ), así como  en los sitios web mantenidos  por los ministerios  
y organismos  pertinentes,  como  la Plataforma  de Transparencia  (Portal  da Transparência  do Governo  
Federal  (Início  - Portal  da transparência  (portaltransparencia.gov.br))).  Los ciudadanos  tienen  
acceso  a transmisiones  a través  de la web en el portal  de legislación  del Gobierno  Federal  y pueden  
recibir  información  actualizada  sobre  las leyes que les interesen  en sus cuentas  de correo  electrónico  
(http://www.saj.planalto.gov.br/saj/Boletins.nsf/frmInscricaoWeb?OpenForm ). Algunas  leyes 
brasileñas  están  disponibles  en inglés  o español  en los sitios web del Ministerio  de Relaciones  
Exteriores  y el Ministerio  de Economía.  Por otro lado, el Portal  de Información  Jurídica  y Legislativa  
del Brasil  (LexML)  engloba  en una única  base de datos  información  legislativa  y jurídica  de los 
principales  órganos  de los poderes  legislativo,  ejecutivo  y judicial,  así como  de algunas  entidades  
subnacionales  (http://projeto.lexml.gov.br/documentacao/resumo -em-ingles ). Tanto  la Cámara  de 
Representantes  (http://www2.camara. leg.br/atividade -legislativa/legislacao ) como  el Senado  
(http://www25.senado.leg.br/web/atividade ) disponen  de un portal  de legislación  a través  del cual 
los usuarios  pueden  hacer  un seguimiento  de todas las fases del proceso  legislativo.  Desde  2013 la 
CAMEX  exige  que toda la información  relacionada  con el comercio  internacional  se publique  en línea.  
Desde  2014,  una plataforma  de difusión  de información  en línea,  denominada  Invest  & Export  Brasil  
(http://www.investexportbrasil.gov.br/home?l=es ), proporciona  información  sobre  prescripciones  
en materia  de legislación,  documentación  y procedimientos,  tributación,  financiación  de las 
exportacio nes, promoción  del comercio  y oportunidades  comerciales,  entre  otros temas.  
Pregunta  1: ¿Puede  el gobierno  de Brasil  hacer  un balance  de los resultados  obtenidos  mediante  el 
uso de la plataforma  Invest  & Export  Brasil,  así como  de cualquiera  de las demás  plataformas  
mencionadas?  
 
RESPUESTA:  
 
Con respecto  al portal  Invest&Export  Brasil,  aunque  muchas  empresas  brasileñas  reporten,  en sus 
contactos  con el Departamento  de Promoción  Comercial  e Inversiones,  utilizar  informaciones  
disponibles  en el sitio, el Ministerio  de Relaciones  Exteriores  no cuenta  con datos  consolidados  que 
permitan  evaluar  los resultados  obtenidos  mediante  el uso de la plataforma.   
 
Pág 91 
 
3.106.  La ZFM es un polo industrial  donde  se fabrican,  principalmente,  productos  electrónicos,  
motocicletas,  productos  químicos,  termoplásticos,  maquinaria  mecánica,  productos  metalúrgicos,  
bienes  de consumo  y relojes.  En 2017-2021,  su balanza  comercial  con el Brasil se mantuvo  
excedentaria,  mientras  que con respecto  al resto del mundo  fue deficitaria.  Al igual que cuando  se 
realizó  el anterior  examen  del Brasil,  las empresas  establecidas  en la ZFM compraron  insumos  
principalmente  en el extranjero,  mientras  que la mayor  parte de sus ingresos  derivados  de las ventas  
procedía  del mercado  brasileño  (gráficos  3.5 y 3.6). En el período  de 2017-2021,  las inversiones  en 
la ZFM alcanzaron  un valor de USD 40.500  millones.  En 2021,  la ZFM empleó  en promedio  a 88.240  
persona s (excluidos  los trabajadores  temporales  y los subcontratistas),  frente  a 79.408  en 2017.120  
Los incentivos  de la ZFM representaron  el 0,54%  de todos  los ingresos  fiscales  federales  condonados  
en 2019 (frente  al 0,45%  en 2017),  y la cifra prevista  para 2022 alcanzaría  el 0,84%.   
 
Pregunta  2: ¿Puede  el gobierno  de Brasil  explicar  los incentivos  otorgados  o mecanismos  
implementados  para que las empresas  establecidas  en las zonas  francas  vendan  un porcentaje  tan 
considerable  de sus productos  al mercado  de Brasil? 
 WT/TPR/M/432/Add.1  
 
- 348 - 
 
RESPUESTA:  
 
Los incentivos federales de la ZFM son básicamente la exención del impuesto sobre productos 
industrializados (IPI) y la reducción del impuesto de importación (II), que se aplican a las empresas 
que producen en la región, cumplen con el PPB y, en ciertos casos, invierten una porción mínima de 
sus ingresos en actividades de investigación, desarrollo e innovación (PD&I). Por la propia naturaleza 
de los incentivos ofrecidos, ocurre lo que se destacó en la pregunta: gran importación de insumo s 
del exterior (por los incentivos ofrecidos), pero compra de insumos brasileños también, y alto 
porcentaje de sus ingresos a otros estados de Brasil, con bajas exportaciones a otros países. Según 
datos e informaciónes recientes de la Superintendencia de l a Zona Franca de Manaus (SUFRAMA), 
que gestiona estos incentivos, las exportaciones del Polo (en reales o dólares) rondan el 1,5% al 2% 
de los ingresos en los últimos años, incluyendo datos parciales para 2022.  
 
  WT/TPR/M/432/Add.1  
 
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  VIET NAM  
1. WT/TPR/S/432  
Para  1.11 
Question : Please  provide  follow -up situation  of Brazil 's tax reform  process  after discussion  in 
Congress  since June 2022.  
REPLY:  
The bill on income  tax was approved  by one of the houses  of Congress  (House  of Representatives)  
and is currently  pending  approv al of the Senate.  As for the indirect  taxation,  the bills are still waiting  
for approval  of both houses.  Tax reform  is on the agenda  of Congress  and is a priority  for Brazil.  
Para  3.58 
It is stated  that the exporting  economy 's market  status  remains  the remit of the Council  of Ministers  
of the Chamber  of Foreign  Trade  (CAMEX),  which  takes  into account  the Department  of Trade  
Remedies  (SDCOM)  recommendation.  
Question : Please  elaborate  how CAMEX  and SDCOM  analyze  and evaluate  the market  economy  
mechanisms  of an exporting  country,  including  a brief introduction  of relevant  policies  and 
regulations.  
REPLY:  
As per Article  4 of Decree  no. 8.058,  of 26 July 2013,  "It falls to CAMEX  the granting  of market  
economy  status  for purposes  of trade  defense. ". When  consideri ng whether  market  economy  
conditions  prevail  in an investigation,  Brazil  will be guided  Decree  no. 8.058  and, if applicable,  any 
country -specific  regulation  will be considered,  such as Viet Nam's Protocol  of Accession.  In the case 
of Viet Nam, as the provisions of subparagraph  255.(a)(ii)  have expired,  the other  provisions  will 
apply.  
2. WT/TPR/G/432  
Para  3.31 and Para  3.51 
It is stated  that Brazil  has concluded  exploratory  dialogues  with Indonesia  and Viet Nam,  and 
launched  negotiations  with Indonesia  in December  2021.   
Question:  Please  provide  updates  of Brazil  and MERCOSUR  on the process  of studying  the possibility  
of starting  FTA negotiations  between  MERCOSUR  and Viet Nam.  
REPLY:  
Under  the exploratory  dialogue,  MERCOSUR  State  Parties  agreed  on the possibility  of entering  into 
negotiations  for a comprehensive  agreement  with Viet Nam.  It is Brazil 's view that there is great 
potential  between  the two regions.  MERCOSUR  continues  to evaluate  internally  the best way to move  
forward  with this negotiation.  
Para  3.36 
It is stated  that MERCOSUR  Members  decided  to reduce  permanently  the Common  External  Tariff 
(CET)  by 10%,  with different  exceptions.  All MERCOSUR  member  states  are currently  authorized  to 
have an except ion list of products  on which  higher  or lower  tariffs  vis-à-vis the CET will be applied.  
There  are different  provisions  for each country.  
Question : Please  further  elaborate  Brazil 's exception  list of products  on which  higher  or lower  tariff 
vis-à-vis the CET will be applied.   
REPLY:  
With respect  to the recent  tariff cuts promoted  by MERCOSUR,  the leading  decision -making  body of 
MERCOSUR  (Council  of the Common  Market)  approved  the Decision  No. 8/22 in July 2022,  which  
established  a partial  revision  of the CET. This measure,  which  can be applied  to 80% of MERCOSUR's  
tariff schedule,  provides  a 10% cut in the CET. WT/TPR/M/432/Add.1  
 
- 350 - 
 
In addition,  as stated  by article  2 of Decision  8/22,  Member  States  are allowed  to individually  
promote  further  tariff cuts of 10% in national  attachments,  which  cannot  include  specific  economic  
sectors  such as textiles,  footwear,  toys, dairy products,  peaches  and the automotive  sector.   
However,  Decision  nº 8/22 does not allow MERCOSUR  Members  to raise tariffs  vis-à-vis the CET in 
each national  attachment.  
  WT/TPR/M/432/Add.1  
 
- 351 - 
 
  EL SALVADOR  
Documento  WT/TPR/S/432  
2 REGÍMENES  DE COMERCIO  E INVERSIÓN  
2.3. A pesar  de las prohibiciones,  limitaciones  o exigencias  de autorización/aprobación  previa  que 
afectan  a la propiedad  extranjera  en algunos  sectores,  el Brasil  sigue  abierto  a la entrada  de 
inversión  extranjera  directa  (IED)  y la promueve.  Durante  el período  objeto  de examen,  adoptó  
varias  medidas  destinadas  a mejorar  el clima empresarial  y a facilitar  la participación  de la inversión  
extranjera  en el transporte  aéreo  y los servicios  financieros,  así como  los procedimientos  de licitación  
para la contratación  pública.  También  prosiguió  la sustitución  de sus acuerdos  bilaterales  de 
promoción  y protección  de las inversiones  por acuerdos  de cooperación  y facilitación  de las 
inversiones  y la celebración  de tratados/acuerdos  para evitar  la doble  imposición.  
Pregunta:  Podría  Brasil  explicar  ¿en que consisten  las medidas  adoptadas  para la mejora  del clima  
empresarial  y la participación  de los servicios  financieros?   
REPLY:  
Please refer to sections  2.2.1 and 2.2.2 of the Government  Report.  
Pregunta:  Podría  Brasil  explicar,  ¿en que consiste  el cambio  realizado  entre  acuerdos  bilaterales  de 
promoción  y protección  de las inversiones  por acuerdos  de cooperación  y facilitación  de las 
inversiones  y la celebración  de tratados/acuerdos  para evitar  la doble  imposición?  
RESPUESTA:  
El reporte  se refiere  a los acuerdos  de promoción  y protección  de inversiones  suscritos  en los años 
90 que jamás  fueron  aprobados  por el Congreso  Nacional  de Brasil,  lo que imposibilitó  su ratificación.  
Posteriormente,  los problemas  identificados  por los legisladores  con respecto  a esos acuerdos  fueron  
llevados  en cuenta  en la elaboración  del modelo  de Acuerdo  de Cooperación  y Facilitación  de 
Inversiones  (ACFI) , que Brasil  negocia  desde  el 2014.   
No obstante contenga  herramientas relevantes para proteger las inversiones que se encuentran en 
los acuerdos clásicos de promoción y protección de inversiones - como el Trato Nacional y de Nación 
Más Favorecida, la tran sparencia, así como condiciones específicas para la expropiación directa, la 
compensación por perdidas, y los pagos y transferencias – el modelo ACFI favorece mecanismos de 
prevención de controversias basados en el diálogo y la consulta bilateral  (a través  de un 
Ombudsperson y un Comité Conjunto), previos al procedimiento de arbitraje Estado -Estado. 
También establece agendas temáticas para la futura cooperación y facilitación donde las Partes del 
tratado pueden trabajar cuestiones específicas de sus relacio nes de inversión . 
  WT/TPR/M/432/Add.1  
 
- 352 - 
 
ECUADOR  
Sobre  el Informe  de Brasil  
 
Párrafos  2.10 a 2.12 
¿Cuál  es el sector  o actividad  que más apoyo  a la innovación  ha recibido  ayuda  dentro  de los 
programas  mencionados  en los párrafos  2.10 a 2.12?  
 
REPLY:  
 
Regarding  the InovAtiva  Brasil  program,  mentioned  at paragraph  2.11, the most common  sectors  
or activities  among  the enterprises  supported  are IT, communications,  healthcare,  and services.  
 
Párrafo  3.11 " (...) En este contexto,  la Secretaría  de Comercio  Exterior  (SECEX ) eliminó  varias  
prescripciones  en materia  de licencias  de importación  automáticas  y no automáticas  impuestas  con 
fines económicos  (...)" ¿Podría  informar  que partidas  arancelarias  fueron  eliminadas  del trámite  de 
licencias  de importación  automáticas  y no automáticas  impuestas  con fines económicos?  
 
REPLY:  
 
The tariff positions  of the MERCOSUR  Common  Nomenclature  (MCN)  that were eliminated  are: 
8301.10.00;3918.90.00  ;3920.51.00  ;4008.21.00  ;4011.50.00  ;4013.90.00  ;5007.90.00  ;5205.2
3.10 ;5310.10.10  ;5401.10 .11 ;5402.33.10  ;5402.33.20  ;5407.53.00  ;5407.74.00  ;5506.20.00  ;5
508.10.00  ;5513.21.00  ;5604.10.00  ;5608.11.00  ;6004.10.33  ;6004.10.34  ;6006.32.90  ;6102.20
.00 ;6103.42.00  ;6106.10.00  ;6106.20.00  ;6107.12.00  ;6115.10.92  ;6214.30.00  ;6302.60.00  ;64
03.91.90  ;6505.00.11  ;7009.91.00  ;7304.19.00  ;7304.51.11  ;7305.11.00  ;7305.19.00  ;7306.19.
00 ;7604.21.00  ;7604.29.20  ;7606.11.90  ;7606.12.90;8205.40.00  ;8214.20.00  ;8305.20.00  ;842
7.90.00  ;8459.10.00  ;8460.19.00  ;8479.60.00  ;8714.10.00  ;9003.11.00  ;9003.19.10  ;9004 .10.0
0 ;9606.22.00  ;3918.90.00;3920.51.00;4011.20.90;4013.10.90;4013.90.00;5205.24.00;5208.39
.00;5402.33.10;5402.33.20;5402.33.90;5402.44.00;5402.47.10;5402.47.20;5402.47.90;5407.54
.00;5407.61.00;5407.69.00;5503.20.90;5512.19.00;5515.11.00;5516.11.00;5516. 12.00;5604.10
.00;5608.11.00;5903.10.00;6005.36.00;6005.37.00;6005.38.00;6006.31.10;6006.31.20;6006.32
.10;6006.32.20;6006.33.10;6006.33.20;6006.33.90;6006.34.10;6006.34.20;6006.34.90;6103.43
.00;6104.43.00;6104.53.00;6104.62.00;6104.63.00;6105.10.00;6105.20. 00;6107.11.00;6109.10
.00;6203.42.00;6204.42.00;6204.43.00;6204.53.00;6204.59.00;6406.90.90;7209.16.00;7209.17
.00;7210.49.10;7225.30.00;7225.50.90;7604.21.00;7604.29.20;8205.40.00;8714.10.00;9003.90
.90;9004.10.00;5603.14.20;4011.10.00  ;4011.20.90  ;4013.20.0 0 ;5007.10.10  ;5007.20.10  ;500
7.20.90  ;5007.90.00  ;5407.20.00  ;5407.52.20  ;5509.32.00  ;5516.14.00  ;5603.12.30  ;5903.20.0
0 ;5903.90.00  ;6001.10.20  ;6004.10.31  ;6004.10.32  ;6101.30.00  ;6102.30.00  ;6106.10.00  ;610
6.20.00  ;6108.22.00  ;6109.90.00  ;6110.30.00  ;6111.20.00  ;6111.30.00  ;6115.95.00  ;6201.92.0
0 ;6202.92.00  ;6203.12.00  ;6203.33.00  ;6203.43.00  ;6204.44.00  ;6204.62.00  ;6204.63.00  ;620
4.69.00  ;6205.20.00  ;6205.30.00  ;6206.30.00  ;6206.40.00  ;6209.20.00  ;6215.20.00  ;6302.22.0
0 ;6305.33.10  ;6305.39.00  ;7005. 21.00  ;7009.91.00  ;7305.11.00  ;8214.20.00  ;8465.91.10  ;847
7.10.11  ;8481.80.97  ;9404.90.00  ;9607.11.00  ;9607.19.00  ;9607.20.00  ;5407.51.00;5407.52.10
;6001.92.00;6202.13.00;6202.93.00;5407.10.19;5603.13.30;5603.93.20;6006.31.90;6117.10.00
;6209.30.00;4007.00. 11;5509.21.00;5509.22.00;5510.11.11;7210.61.00;7210.70.10;3920.51.00
;3921.90.19;6903.90.91;6903.90.99;8505.19.10;7013.28.00;7013.37.00;7013.49.00;7606.11.90
;7606.12.90;8714.10.00;9603.29.00;9608.10.00;7606.11.90;7606.12.90;4011.20.90;6505.00.12
;0703.20.10; 0703.20.90;2004.10.00;2501.00.19;2835.39.20;2905.13.00;2907.11.00;2909.43.10
;2915.31.00;2915.39.31;2916.12.30;2917.12.10;2922.11.00;2922.15.00;3204.15.90;3701.30.21
;3701.30.31;3801.10.00;3824.84.00;3824.85.00;3824.86.00;3824.87.00;3824.88.00;3824.91.00
;3824.99.89;3902.10.20;3902.30.00;3904.10.10;3907.61.00;3907.69.00;3920.62.19;3920.62.91
;3920.62.99;4002.59.00;4009.11.00;4011.10.00;4011.20.90;4011.40.00;4011.70.10;4011.70.90
;4011.80.90;4011.90.10;4011.90.90;4806.40.00;4810.22.90;4810.13.89;4810.19.89;4810.9 2.90
;6301.40.00;6305.10.00;6402.91.10;6402.99.10;6403.40.00;6403.51.10;6403.51.90;6403.59.10
;6403.59.90;6403.91.10;6403.99.10;6404.20.00;6405.10.10;6405.10.20;6405.10.90;6405.20.00
;6405.90.00;6809.11.00;6907.21.00;6907.30.00;6907.40.00;7005.29.00;7007.11.0 0;7007.19.00
;7007.21.00;7007.29.00;7208.36.10;7208.36.90;7208.37.00;7208.51.00;7208.52.00;7210.70.10
;7217.10.19;7217.10.90;7225.19.00;7226.19.00;7225.40.90;7228.30.00;7304.19.00;7304.31.10
;7304.31.90;7304.39.10;7304.39.20;7304.39.90;7304.51.19;7304.59.10;7 306.40.00;7306.90.20
;7312.10.90;7325.91.00;7411.10.90;8414.51.10;8708.29.99;8545.11.00;9617.00.10;0304.81.00
;4411.13.91;5503.19.10; 5509.21.00; 5509.32.00;  WT/TPR/M/432/Add.1  
 
- 353 - 
 
  603.11.10;6205.20.00;6212.10.00;7305.11.00;  8474.31.00;  8705.10.10;  6402.19.00;  
6403.19.00;7607.11.90;  
2704.00.11;2704.00.12;2710.19.91;3204.15.90;3918.90.00;4003.00.00;4008.21.00;4011.70.10;
4011.70.90;4011.80.90;4011.90.10;4011.90.90;4013.90.00;6005.36.00;6005.37.00;5510.90.11;
5510.90.12;5510.90.13;5510.90.19;5510.90.90;5603.14.90;54 07.51.00;5407.52.10;5407.54.00;
5509.62.00;6110.20.00;6204.23.00;6211.43.00;6305.32.00;6804.22.11;6907.21.00;6907.30.00;
6907.40.00;7005.10.00;7005.29.00;7007.11.00;7007.19.00;7007.21.00;7007.29.00;7210.49.10;
7009.92.00;7010.90.90;7208.27.90;7208.38.90;7208. 38.90;7210.50.00;7217.10.19;7217.10.90;
7222.20.00;7225.40.90;7228.30.00;7304.19.00;7304.31.10;7304.31.90;7304.39.10;7304.39.20;
7304.39.90;7304.51.19;7304.59.10;7304.59.90;7305.12.00;7306.40.00;7306.90.20;7312.10.90;
7315.82.00;8214.20.00;8302.10.00;8305.20. 00;8427.90.00;8428.10.00;8443.32.99;8460.19.00;
8479.60.00;8501.40.19;8501.40.19;8507.10.10;8705.10.10;9003.90.90;9004.10.00;9018.90.10;
9404.90.00;9606.21.00;9606.29.00;9617.00.10;3920.20.19;8505.19.10;7217.20.10;7217.20.90;
3921.13.90;4007.00.19;5503.20.10; 9018.31.11;9018.31.19;3822.00.90;3926.90.40;9018.39.99;
6210.10.00;9018.90.10;6505.00.90;6210.40.00;6210.50.00;6211.33.00;5509.51.00 . 
 
Sobre  el informe  de la Secretaría  
 
Párrafo  1.1 
¿Se ha identificado  en algún  motivo  en particular  para que el Brasil  haya retrocedido  en su ubicación  
en el ranking  sobre  complejidad  de la economía?  
 
REPLY:  
 
Please  refer to the hypothesis  and assumptions  provided  by the Harvard  Growth  Lab's economic  
complexity  index,  responsible  for the afore mentioned  ranking.  
 
Párrafo  2.20 
¿Cuáles han sido los mayores  retos en la implementación  de las herramientas  de análisis/evaluación  
del impacto  de la reglamentación  (AIR)?   
 
REPLY:  
 
First, there  is no regulatory  calculator  that allows  one to calculate  costs and benefits  (estimated  and 
effective)  intuitively.  Furthermore,  there  is little available  and reliable  data on each sector,  including  
on the costs of an average  company.  
Another  difficulty  is that, currently,  the Brazilian  legislation  requires  the elaboration  of RIA for the 
edition  of any regulation.  Since  it is too costly  for regulatory  bodies  to carefully  carry this out, there  
are many  requests  for waiver  of RIA, justified  or not. 
 
Párrafo  2.47 
¿Cómo  se evalúa  hasta  el momento  la implementación  del Ombudsman  de las Inversiones  Directas 
(OID)?  
 
RESPUESTA:  
 
El Ombusdman  de las Inversiones  Directas  (OID)  fue creado  originalmente  por el Decreto  
Presidencial  nº 8.863/2016,  para atender  los Acuerdos  de Cooperación  y Facilitación  de Inversiones  
(ACFI)  que Brasil  ha negociado  y firmado  bilateralmente  y que requieren,  entre  otras disposiciones,  
la creación  de un mecanismo  de asistencia  a los inversores  extranjeros  (Ombudsman  de 
Inversiones).  En 2019,  hubo modificación  de dicho  decreto  y actualmente  el OID asiste  a todos  los 
invers ores extranjeros  en Brasil.  
El OID integra  la estructura  de la Secretaría  Ejecutiva  de la Cámara  de Comercio  Exterior  (CAMEX)  
del Ministerio  de Economía,  bajo la supervisión  del Consejo  de ministros  de la CAMEX  (CEC),  y está 
compuesta  por: 
I - el secretari o ejecutivo  de la CAMEX,  que representa  institucionalmente  y coordina  las actividades  
del OID; 
II - una Secretaría,  administrada  por la Subsecretaría  de Inversiones  Extranjeras  (SINVE);  
III - un Grupo  Asesor,  compuesto  por representantes  de los ministerios  que constituyen  la CAMEX;  
y WT/TPR/M/432/Add.1  
 
- 354 - 
 
IV - una Red de Puntos  Focales,  integrada  por los puntos  focales  de las dependencias  y entidades  
de la administración  pública  a nivel federal,  así como  los indicados  por las Unidades  de la Federación.  
Actualmente,  la Red de Puntos Focales  está integrada  por 37 dependencias  federales  y 13 estatales.  
Esta estructura  proporciona  asistencia  a los inversores  extranjeros,  mediante  un único  organismo  
gubernamental  (CAMEX),  encargado  de responder  a las solicitudes  en un plazo breve  a través de su 
principal  plataforma  interactiva,  el sitio web del OID – www.oid.economiga.gov.br,  finalizado  y 
puesto  à disposición  en abril de 2019.  Este sitio web es también  un sistema  de información  que 
controla  y gestiona  las demandas  recibidas.  
El sitio web del OID es la principal  herramienta  de interacción  entre  el OID, los inversionistas  y los 
organismos  gubernamentales  implicados  en cada caso (Red de Punto  Focales).  Clasificamos  la 
asistencia  a los inversores  extranjeros  en dos tipos:  Consultas  y Cuesti onamientos.  Las Consultas  
son utilizadas  para aclarar  dudas  generales  sobre  la legislación  o los procedimientos  administrativos  
relacionado  con la inversión.  Los Cuestionamientos  son utilizados  para tratar  de resolver  quejas  en 
coordinación  con el organism o gubernamental  implicado  en un caso concreto  (Policy  Advocacy).  
Los casos  atendidos  por el OID se encuentran  bajo secreto  comercial,  de conformidad  con el Capítulo  
VI de su Reglamento  Interior,  y bajo protección  de datos  personales,  de conformidad  con la Ley N° 
13.709/2018  (Ley General  de Protección  de Datos).  
Saldo  de la asistencia  a través  del sitio web del OID (abr 2019 - nov 2022):  
- Asistencia  total:  Hemos  recibido  26 solicitudes  de inversores  extranjeros:  16 consultas  y 13 
cuestionamientos.  
- Las principales  peticiones  se refieren  a temas  relacionados  con cuestiones  fiscales,  laborales,  
financieras  y administrativas.  
- Estas  demandas  proceden  de los siguientes  países:  Estados  Unidos,  Reino  Unido,  Italia,  India,  
Alemania,  Dinamarca,  Portugal,  España,  México,  Emiratos  Árabes  Unidos,  Türkiye , Sudáfrica  y 
China.  
- Y los sectores  implicados  fueron:  proyecto  de energía  renovable;  actividades  de servicios  
financieros;  tecnología  de la información;  fabricación  de estructuras  metálicas;  servicios  de 
arquitectur a e ingeniería;  suministro  y distribución  de electricidad;  transporte  de agua;  metalurgia;  
extracción  de minerales  metálicos;  petróleo  y gas; comercio  al por mayor;  fabricación  de productos  
farmacéuticos;  fabricación  de productos  de caucho  y plástico;  y fabricación  de vehículos  de motor,  
remolques  y carrocerías;  fabricación  de máquinas,  electrodomésticos  y materiales  eléctricos.  
Con el objetivo  de dar mayor  publicidad  al mecanismo,  la Subsecretaría  de Inversiones  Extranjeras  
(SINVE/SE -CAMEX)  ha realizado  una amplia  labor de divulgación  del OID. Por lo tanto,  se realizaron  
varias  presentaciones  con algunos  de los países  con los que Brasil  tiene un Acuerdo  de Cooperación  
y Facilitación  de Inversiones  (ACFI),  como:  Chile,  Colombia,  India,  Emiratos  Árabes  Unidos  y México.  
Además  de estos  países,  también  se realizaron  presentaciones  en las embajadas  del Reino  Unido;  
de Alemania;  de EUA, con la participación  de representantes  de Select  USA, así como  con las 
Cámaras  de Comercio:  Brasil -Francia;  Cámara  de Comercio  Latinoamericana  de Singapur;  AMCHAM  
e Invest  Hong Kong.  
Otra importante  iniciativa  de difusión  fueron  las presentaciones  realizadas  con las principales  firmas  
de abogados  representantes  de inversionistas  extranjeros  en Brasil  (11 firmas),  tales como:  Veirano  
Associados;  Pinheiro  Neto;  Mattos  Filho;  Tozzini  Freire  Abogados;  Machado  Meyer;  entre  otros.  
 
Párrafo  4.294  
¿Cómo  ha "correios " enfrentado  el aumento  del volumen  de comercio  electrónico  luego  de la 
pandemia  post covid 19? ¿han aumentado  empleos  en el sector?   
 
RESPUESTA:   
En razón de la pandemia y la ampliación del comercio electrónico, las demandas por servicios 
postales en Brasil crecieron significativamente en 2020 y 2021. Para hacer frente al aumento de 
envíos postales, los "Correios " adoptaron nuevas modalidades de con tratación de funcionarios 
temporarios expertos, entre otras iniciativas en búsqueda de apoyar empresas y consumidores como 
el programa "Clique e Retire " (selección de una agencia para sacar el producto directamente) y 
"Locker Correios " (instalación de sist ema de armarios en locales específicos donde el usuario puede 
recibir su producto) . 
  WT/TPR/M/432/Add.1  
 
- 355 - 
 
  JAPAN  
Report  by the Secretariat   
1 ECONOMIC  DEVELOPMENT   
1.2 Recent  Economic  Development   
1.2.2  Prices   
Question  1: Paragraph  1.6 page  21 
According  the June 2022 Inflation  Report,  the annual  inflation  rates are projected  to stand  at 8.8%  
for 2022,  4% for 2023,  and 2.7%  for 2.24, respectively.  In this forecast,  expect  for the deceleration  
of international  commodity  prices,  what components  of the price index  would  contribute  to the 
decline  in inflation  over the next couple  of years?  Besides,  appreciated  if you could  provide  an 
estimate  of penetration  rate of BRL to inflation.  
REPLY:   
Banco  Central  do Brasil  (BCB)  has recently  published  the September  2022 Inflation  Report, released  
on 09/29/2022,  which  we will take as a reference  for the following  analysis.  In this Inflation  Report,  
the headline  inflation  figures  changed  to 5.8%  for 2022,  4.6%  for 2023 and 2.8%  for 2024.  The 
projected  fall in inflation  for 2023 is related to the behavior  of market  prices,  since the BCB expects  
a higher  administered  prices  inflation  in 2023 (9.3%)  than in 2022 (-4.0%).  This administered  prices  
behavior  mainly  reflects  a tax exemption  implemented  in 2022,  the expected  resumption  of federal  
taxes  on fuels in 2023 and hypotheses  for electricity  flag rates.  On the other  hand,  the projected  
market  prices  inflation  is lower  for 2023 (3.1%)  than for 2022 (9.5%).  As for 2024 inflation  
projections,  the BCB expects  that both market  prices  (2.6%)  and administered  prices  (3.7%)  will 
work to lower  headline  inflation.  As important  factors  for the inflation  decrease  over the projection  
horizon,  we can mention  the contractionary  monetary  policy  and the dynamics  of inflation  
expectations,  which  show a downw ard trend  until 2025.  Furthermore,  the effects  of inflation  inertia  
tend to fade away.  
In the Phillips curve of the BCB 's small -scale aggregate model, published as a box in the December 
2021 Inflation Report, the exchange rate directly affects market price s inflation in two ways. First, 
by a contemporary term of imported inflation (pass -through of 1.8%) and by a lagged term of 
exchange rate variation (pass -through of 1.7%). However, the total pass -through is in fact higher, 
11% (7% stemming from market pric es and 21% from administered prices), due to the inertia of 
the Phillips curve and because several administered prices are affected by the exchange rate to 
different degrees. For instance, gasoline prices are highly affected by the exchange rate . 
  WT/TPR/M/432/Add.1  
 
- 356 - 
 
INDONES IA 
PART  I: QUESTIONS  REGARDING  THE SECRETARIAT  REPORT  
2.3 Trade  Agreements  and Arrangements   
2.3.1  WTO   
2.3.1.1  Features  
Page 44 Para 2.29 
Brazil  ratified  the WTO Agreement  on Trade  Facilitation  (TFA)  on 29 March  2016 and passed  it into 
domestic  legislation  through  Decree  No. 9,326,  3 April 2018 upon completion  of internal  procedural  
requirements.  
3 TRADE  POLICIES  AND PRACTICES  BY MEASURE   
Page 61 Para 3.1 
(….) Since  2017,  Brazil  has continued  its trade facilitation  action  by streamlining  foreign  trade  
formalities,  enhancing  its authorized  economic  operator  (AEO)  programme,  and gradually  
implementing  its Single  Window  Programme.  It has also expanded  its non-preferential  rules of origin  
and updated  the relevant  verification  procedure.  
Question:  
1. Indonesia wants to know how the Brazilian TFA has been implemented, particularly in terms of 
transparency and ease of access to information about Brazil's export -import policies as 
mandated by the TFA.  
REPLY:   
Brazil  continued  streamlining  foreign  trade formalities  and upgrading  its Integrated  Foreign  Trade  
System  (SISCOMEX)  under  its Single  Window  Programme  (Programa  Portal  Único de Comércio 
Exterior).  Launched  in 2014 and jointly  coordinated  by the Economy  Ministry's  Secretariat  of Foreign  
Trade  (SECEX)  and Special  Secretariat  of Federal  Revenue  of Brazil  (RFB),  the programme  is at the 
center  of Brazilian  trade facilitation  policies  and aims to reduce  bureaucracy.  It will allow companies  
to present  information  only once, reducing  time and expenses  to both exporters  and importers.  
Regarding  transparency,  following  the publication  of GECEX  Resolution  No. 378/2022,  the Portal  
Único  website  (www.siscomex.gov.br),  which  already  provided  access  to information  regarding  
trade-related  legislation,  requirements,  documents,  forms  and systems,  has incorporated  Brazil's  
national  foreign  trade enquiry  point,  Comex  Responde  (available  in Portuguese,  English  and 
Spanish).  
2. The establishment and operation of the Brazilian National Commit tee on Trade Facilitation 
(NCTF).  
REPLY:   
As for the NCTF,  it was restructured  by Presidential  Decree  No. 10.373/2020  and had its internal  
rules approved  by GECEX  Resolution  No. 377/2022.  The Committee  remains  responsible  for guiding,  
coordinating,  harmoni zing and supervising  the activities  of federal  agencies  related  to foreign  trade 
operations,  bearing  in mind,  among  others,  the implementation  of Brazil's  commitments  under  the 
TFA. The importance  of private  sector  participation  has been highlighted  by the maintenance  of a 
Cooperation  Subcommittee  in which  public  and private  stakeholders  can work together  to improve  
trade facilitation  in Brazil.  
 
4.4.4  Telecommunications  
Page 154 Para 4.202  
In 2021,  Brazil  carried  out the largest  radio frequency  tender  in its history  on the 5G mobile  
telephony  technology.  The 45 lots collected  in the 5G auction  totalled  BRL 47.2 billion,  and included  
several  commitments  for the winning  bidders,  such as coverage  of all 5,570  Brazilian  municipalities  
with 5G; service  2,349  stretches  of highway  with 4G, totalling  35,784  km (all federal  paved  WT/TPR/M/432/Add.1  
 
- 357 - 
 
  highways);  deployment  of fibre-optic backhaul  in 530 municipal  seats;  and investment  reaching  
BRL 3.1 billion  for public  school  connectivity.  
Questions:  
3. How is the auction process of 5G frequency in Brazil?  
REPLY:   
Brazil  held the Public  Spectrum  Bidding  nº 1/2021 -SOR/SPR/CD -ANATEL  on 2021 (available  Here)  
where  radio-frequencies  for 5G (700 MHz, 2,3 GHz, 3,5 GHz and 26 GHz) where  auctioned  and 
various  obligations  to deliver  5G networks  were imposed  to the bidding  winners.  The obligations  
entailed  as a result  of the 5G auction  process  can potentially  increase  the availability  of general  
telecom  infrastructure,  since,  in return  for the awarded  spectrum,  awardees  are to fulfil a series  of 
infrastructure  deployment  targets  – e.g. highway  coverage,  fiber backhaul  –, including  at the 
municipal  level.  This approach  results  in national  and subnational  projects  for all the awarded  
companies  in which  access  to the available  spectrum  is used as mechanism  to increase  network  
integration,  providing  results  that are also valuable  from a socio-economic  point of view.  
Apart  from the general  coverage  obligations,  the auction  also established  some  particular  tasks to 
be accomplished  by means  of co-regulatory  approaches,  where  Brazilian  Telecommunications  
Agency  (Anatel)  shares  with the awardees  the governance  of certain  aspects  that are very relevant  
to the deployment  of 5G infrastructure  and also to bridge  the digital  divide . In that sense,  the auction  
established  two governance  structures:  
-One for solving  interference  and to clear the 3,3-3,7GHz  frequency  range  in all the state capitals  of 
Brazil  to give room to 5G implementation,  GAISPI  (more  information  available  at: 
https://www.gov.br/anatel/pt -br/composicao/grupos -de-trabalho/gaispi  and 
https://sigaantenado.com.br/ ); 
-Another  to connect  unconnected  public  schools  throughout  Brazil,  providing  connectivity,  terminal  
equipment  and any other  infrastructure  necessary  to enable  full access  and usage,  GAPE,  (more  
information  at: https://www.gov.br/anatel/pt -br/composicao/grupos -de-trabalho/gape ).  
More information  can also be found  in the following  webpage:  https:/ /www.gov.br/anatel/pt -
br/assuntos/5G/leilao -de-espectro -5g. 
 
4. How is the implementation of Public -School Connectivity, especially during the pandemic?  
REPLY:   
In November  2021,  the 5G Auction  established  several  coverage  commitments  (obligations  to 
provide  telecommunications  services)  for the winning  bidders.  The winning  bidders  of 26GHz  band 
must fulfill a commitment  of Connectivity  in Public  Schools  of Basic Education,  with the necessary  
quality  and speed  for the pedagogical  use of ICTs in educational  activities  regulated  by the Connected  
Education  Innovation  Policy,  established  by Law No. 14.180/2021,  and Decree  No. 9.204/2017.  It 
will be up to the School  Connectivity  Project  Funding  Monitoring  Group  (Gape)  to define  the technical  
criteria,  targets,  and deadlines  for meeting  this commitment.  The cost of this program  is 
approximately  BRL 3.1 billion  and will be funded  by the winners  of the 5G auction.  
 
4.4.4.5  Number  portability   
Page 157 Para 4.221  
Number  portability  has been required  since 2007.  A private  association,  contracted  through  public  
bidding,  continues  to manage  the central  reference  databank  for number  portability.  As a result  of 
the bidding  process,  the management  of portability  operations  was delegated  by ANATEL  to the 
Brazilian  Telecommunication  Resources  Association  (ABR Telecom).  ANATEL  also supervises  
wholesale  infrastructure  in the country  and has representatives  of the largest  telephone  operat ors, 
as well as representatives  of small and regional  operators,  on its board.  Number  migration  is subject  
to conditions  set by ANATEL  and ABR Telecom,  including  a fee of BRL 4. In 2022,  around  700,000  
fixed-line and mobile -phone  subscribers  in Brazil  carry their number  to a new operator  each month.  
Between  2008 and January  2021,  8,382,861  lines including  1,243,657  fixed lines and 7,139,204  
mobile  phones  were carried  to a different  operator.  WT/TPR/M/432/Add.1  
 
- 358 - 
 
Questions:  
5. How is the implementation of Number Portability in Braz il?  
REPLY:   
Portability  enables  fixed-line (Fixed  Switched  Telephone  Service  - STFC)  and mobile  (Personal  Mobile  
Service  - SMP) customers  to keep their telephone  number  (User  Access  Code and Non-Geographic  
Codes),  regardless  of the service  provider  which  it is linked.  This facility  was introduced  in the 
country  in 2007.  
More information  referring  to the Numbering  Regulation  is available  at:  
https://informacoes. anatel.gov.br/legislacao/resolucoes/2022/1641 -resolucao -749. 
and  
https://informacoes.anatel.gov.br/legislacao/resolucoes/2022/1640 -resolucao -750. 
Consumers  can request  portability  through  contact  only with their future  provider,  in a simple  way, 
which  enables  a successful  and transparent  experience.  The portability  request means  the 
cancellation  of services  with the current  provider  and its execution  terminates  the contract.  Only the 
services  used up to the day the portability  takes  effect  may be charged  by the current  provider.  
The Brazilian  number  portability  model  provided  that a third-party managing  entity  would  manage  
the entire  portability  process  and, through  the National  Reference  Database  (BDR),  would  update  
the Operators'  Operational  Database  (BDO).  This database  (BDO)  would  be used for the correct  
forwarding  of calls, regardless  of the provider  to which  the number  belongs.  
A second  authentication  factor  is currently  being  implemented  for Number  Portability  procedures.  
This innovation  will be carried  out using  SMS and aims to prevent  fraud.  
 
6. How Number Portability mechanism in Brazil deals with market competition between service 
providers and service quality assurance?  
REPLY:  
The rules for Number  Portability  were edited,  initially,  with the main purpose  of ensuring  a user's  
right.  
However,  as stated  above in the previous  question,  when  the regulation  established  that the future  
service  provider  was in charge  of the migration  process,  leaving  the new company  responsible  for 
interacting  with the current  subscriber's  service  provider,  the intention  was to minimize  any 
anticompetitive  behavior  that could  prevent  the portability  from happening.   
As a positive  outcome,  the possibility  of changing  service  providers  easily  promotes  competition  and 
results  in better  quality  services  and more affordable  prices  for consumers.  
Anatel  continuously  monitors  the execution  of activities  and the performance  of service  providers  
considering  the obligations  related  to this topic.  On a monthly  basis,  the Agency  publishes  the 
number  of portability  requests  carried  out in the country  through  a dashboard  in its website.  
This dashboard  shows  the annual  and monthly  results  obtained  in fixed and mobile  telephony.  The 
information  can be accessed  at: https://inform acoes.anatel.gov.br/paineis/portabilidade . 
 WT/TPR/M/432/Add.1  
 
- 359 - 
 
  PART  II: QUESTIONS  REGARDING  THE GOVERNMENT  REPORT  
3.4 Participation  in the WTO  
3.4.1  Negotiations  
Page 18 Para 3.17 
In the period  under  review,  Brazil  has been actively  engaged  in the negotiations  of the joint initiatives  
on E-Commerce,  Investment  Facilitation  for Development  and Services  Domestic  Regulation.  Brazil  
took part in conclusion  of the JSI on Services  Domestic  Regulation  in December  2021,  and presented  
a pre-finalization  schedule  with five additional sectors  (Postal  Services,  Telecommunication  Services,  
Environmental  Services,  Maritime  Transport  Services  and Air Transport  Services),  showing  its 
commitment  to an ambitious  outcome  of this initiative.  Brazil  has also actively  participated  in all 
negotiations  during  the WTO's  Twelfth  Ministerial  Conference  (MC12).  
Question:  
7. How does Brazil view the placement of the topic of "Updating WTO Telecommunication Services 
Reference Paper" under the discussion of Joint Statement Initiative on E-Commerce WTO and 
other meeting in Bilateral, Regional and Multilateral Level?  
Brazil  is not part of the WTO Telecommunication  Services  Reference  Paper.  As a participant  of the 
JSI on E-Commerce,  Brazil  is engaged  in the discussions  of the small group  on telecommunication  
services,  taking  into consideration  the current  draft and providing  its perspective  on the main issues  
under  review.  Brazil  has also negotiated  telecommunication  disciplines  in its FTAs.  
 
4.2.8  Telecommunications   
Page 46 Para 4.143  (on the Government  Report ) 
Today,  Brazil's  telecommunication  sector  is fully open to competition  and presents  different  market  
dynamics.  While  the mobile  market  is concentrated,  having  a handful  of large operators  from abroad,  
including  Telefónica (Spain),  Telecom  Italia (Italy)  and Teléfonos  de México (Telmex)/Am érica Móvil 
(Mexico),  almost  half of the fixed market  is controlled  by thousands  of regional  providers.  A recent  
change  was the selling  of the mobile  telephony  operation  of Oi to Claro,  Vivo and TIM, three big 
companies  in this market.  The operation  was conditioned,  in 2021,  by CADE,  to a merger  control  
agreement.  
 
Page 154 Para 4.200  (on the Secretariat  Report ) 
During  the review  period,  the telecommunications  market  remained  fully open to competition,  
though  dominated  by a handful  of large operators  from abroad,  including  Telefónica (Vivo)  (Spain),  
Telecom  Italia (TIM Brasil)  (Italy)  and Teléfonos  de México (Telmex)/Am érica Móvil (Claro)  (Mexico),  
as well as a domestic  company,  Oi, which  filed for bankruptcy  protection  in 2016 and had been taken  
over by Telefónica, TIM Brasil,  and Telmex/Am érica Móvil, a transaction  that was approved  by the 
Administrative  Council  for Economic  Defense  (CADE)  in the end of 2021.280  Oi will keep its fibre 
networ k assets  with focus on fibre-optic business.281  In the broadband  retail market,  small and 
regional  operators  account  for almost  a half of the connections  nationwide,  which  dominate  the 
market  in several  municipalities.  
 
Questions:  
8. How is the implementation  of market competition in telco and e -commerce sector under the 
current regime?  
REPLY:   
Competition  in the telecommunications  sector  is firmly  established,  both as legal principle  and as a 
concrete  factor  in regulatory  action.  As mentioned  in paragraph  4.225.  of the Secretariat  Report,  
concentration  levels  in Brazil  are low in comparison  to countries  in the Latin American  Region.   WT/TPR/M/432/Add.1  
 
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In line with the best regulatory  practices,  the regulator  plans  its intervention  in accordance  with a 
specific  set of goals and analyses,  which  have been embodied  in PGMC  (see paragraph  4.149  of the 
Government  Report ). As a crucial  sector  in Brazil,  e-commerce  plays an important  role in the cross-
sectoral  digitalization  of the economy.  
 
9. Are there any requirements for Foreign Suppliers to enter, any Foreign Equity Participation 
requirement, or cooperation requirement with local players?  
REPLY:   
Brazilian  legislation  provides  for foreign  participation  in the telecommunication  sector.  In 2021, the 
general  requirement  concerning  corporate  domicile  was revoked  by Law No. 14,195,  which  amended  
Art. 18 of the General  Telecommunications  Law (Law No. 9.472,  of 1997)  and suppressed  the legal 
mandate  to set up additional  criteria  relating  to foreign  companies.  
Law No. 14,195,  of 2021:  https://www.planalto.gov.br/ccivil_03/_Ato2019 -
2022/2021/Lei/L14195.htm .  
Law No. 9.472,  of 1997:  https://www.planalto.gov.br/ccivil_03/leis/l9472.htm . 
 
Page 47 Para 4.148  (on the Government  Report ) 
The "General  Antenna  Law",  an infrastructure  legislation  of 2015,  seeks  to reduce  instances  of 
duplication  of mobile -network  base station  in urban  areas  by making  a requirement  for operators  to 
share  infrastructure  and excess  capacity.  In 2017,  ANATEL  approved  Resolution  683, which  further  
disciplined  conditions  for infrastructure  sharing  among  telecommunication  services  providers,  aiming  
at optimizing  resources  and improving  the quality  of services.  In 2021,  after Article  12 of the 
"General  Antenna  Law" was legally  challenged,  the Brazilian  Supreme  Court  supported  that this 
provision  was constitutional,  therefore,  states  and municipalities  cannot  charge  any fee or 
consideration  for the passage  of telecommunication  infrastructure  through  state or municipal  public  
lands,  which  can greatly  reduce  the expected  cost for the sharing  of infrastructure.  
 
Page 155 Para 4.206  (on the Secretariat  Report ) 
4.206.  During  the review  period,  the major  changes  were the revision  of the General  
Telecommunications  Law (LGT)  in 2019,  implementing  the possibility  of changing  the 
telecommunications  service  concession  contracts  to an authorization  regime  and the possibility  of 
successive  extension  of the grants.  (…) 
 
Questions:  
10. How is the implementation of telco infrastructure sharing in Brazil?  
REPLY:   
Infrastructure  sharing  is widely  implemented  in Brazil.  Even before  5G implementation,  control  of 
towers  and ducts  has seen a renewed  interest,  with existing  players  aiming  to position  themselves  
as relevant  suppliers  of infrastructure  to market  entrants.   
As it is evident  when  such situations  arise,  infrastructure  arrangements  are a crucial  topic for 
regulation  and antitrust  matters.  Brazilian  authorities  –Brazilian  Competition  Authority  (CADE)  and 
Brazilian  Telecommunications  Agency  (Anatel)  – have so far dealt with the matter  in a case-by-case 
approach  and considering  the applicable  thresholds  for antitrust  and regulatory  review  
(https://www.gov.br/cade/en?set_language=en ). 
 
11. How far is involvem ent of the Government in regulating the process?  
REPLY:   
General  antitrust  and regulatory  requirements  apply  to infrastructure  sharing.  As mentioned  in 
paragraph  4.148  of the Government  Report,  a legislation  was approved  in 2015 to improve  WT/TPR/M/432/Add.1  
 
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  conditions  of infrastructure  sharing  and in 2017 the Brazilian  Telecommunications  Agency  (Anatel)  
moved  to implement  the new set of rules by means  of Resolution  No. 683. PGMC  also contains  
specific  provisions  regarding  the sharing  of ducts  and other  passive  infrastructur e. So far additional  
regulatory  intervention  has not been deemed  necessary.  
12. Is there any specific organ established to handle this process? In addition, are there differences 
between Tower Sharing and Ducting Sharing?  
REPLY:   
As mentioned  above  in the response  to question  10, CADE  and Anatel  share  responsibilities  regarding  
the approval  of infrastructure  sharing.  The current  PGMC  allows  for differences  regarding  the 
regulatory  treatment  of tower  and ducts,  given  that some  specific  provisions  only apply  to the latter,  
due to reasons  related  to market  dynamics  (no specific  discriminatory  behavior  has been detected  
in relation  to tower  companies,  since analysis  suggest  companies  in the sector  will aim to provide  
infrastructure  to all interested  providers,  considering  their core business).  
Page 48 Para 4.150  
With regard  to Internet -related  measures,  Brazil  introduced  Law No. 12,965,  of 23 April 2014,  on 
network  management  in the context  of network  neutrality,  as well as on the protection  and keeping  
of records  (logs) and personal  data of Internet  users,  which  apply  both to Internet  connection  
(service)  providers  and to Internet  application/content  providers.  
Question:  
13. How are the process and challenges of formulation and enforcement of policy to regulate network 
neutrality and data protection in Brazil, especially for network management of data transfer, 
also what are the challenges of establishment of National Agency for Data Protection (ANPD), 
including to determine its element and function?  
REPLY:   
There  are three important  laws in Brazil  when  it comes  to Data regulation  and Digital  Law: 1) Law 
No. 13.709/2018  – LGPD,  2) Law No. 12.965/2014,  3) Law No. 12.527/2011  – LAI.  
First, there  is LGPD  that is in force since May 2021 and it aims to regulate  how personal  data is 
captured  and processed  in Brazilian  territory  and to guarantee  safeguards  to protect  privacy  and 
personal  data. Also, LGPD  creates  more specific  application  and security  guidelines,  detailing  existing  
data types  and ensuring  all data movement  (inclu ding offline).  It also created  Brazilian  National  Data 
Protection  Authority,  henceforth  ANPD.    
Considering  the general  aspect  of our LGPD,  ANPD  is responsible  for a myriad  of topics  related  to 
Data protection  and Privacy  Protection.  In this regard,  ANPD  tackled  those  challenges  with the use 
of long-term planning  alongside  prioritization.  One of ANPD  first steps  was to design  and stick to a 
Regulatory  Agenda  for the 2021-2022 biennium  that was timely  executed.   
ANPD  still faces the challenge  of regulating  a significant  number  of topics  in the near future.  On 
8 November  2022,  the Authority  approved  the Regulatory  Agenda  for the 2023-2024 biennium.  The 
agenda  considered  contributions  made  by society  through  public  calls and meetings.   
The agenda  is the planning  instrument  that brings  together  regulatory  priority  actions,  with the 
objective  to provide  greater publicity,  predictability,  transparency,  and efficiency  to the Authority's  
regulatory  process.   
Additionally,  ANPD  also faces the educational  facet of its mandate,  mainly  through  the challenge  of 
creating  a data protection  culture  nationally.  ANPD  aims to bring a long-lasting  change  of perspective  
on the matter  and to consolidate  the value  of data protection  and privacy  protection  into the core of 
organizations.  In order  to do that, ANPD  is making  an effort  to be present  at as many  fora as 
possible,  either nationally  or internationally,  so to be part of the ongoing  dialogues  related  to the 
sector.  
ANPD  makes  a point to send representatives  to forums,  debates  and other  events  that address  data 
protection,  privacy  protection,  artificial  intelligence,  internet management,  IT security,  to name  
some  of wide range  of topics.  In sum, ANPD  is concerned  with all topics  that might  impact  the 
national  dialogue  on data and privacy  protection.  In this regard,  ANPD  publishes  orientation  guides  
exploring  specific  topics of privacy  and security  in a practical  approach  that had proven  to be an 
effective  tool to the educational  purpose  of the Authority.   WT/TPR/M/432/Add.1  
 
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An important  matter  on international  cooperation  regards  Data Transfer  Policy.  ANPD  understands  
that it is necessary,  in the context  of personal  data processing  and its cross-border  path, to 
guarantee  that LGPD  principles  will be respected  throughout.  With that in mind,  the Brazilian  
regulation  of international  data transfer  does not aim to create  obstacles  to data travel.  In fact, it 
seeks  to amplify  the legal security  for individuals  and companies  involved,  while it amplifies  the 
transparency  and informat ive self-determination  and it preserves  the ethics  and the competitiveness  
of Brazilians  organizations.   
Data transfer  is regulated  by the Article  33 of the LGPD.  As the law stablishes,  ANPD  is responsible  
for evaluating  the level of harmonization  between  Brazilian  and the foreign  country 's data protection  
regulation  in order  to authorize  the transfer.  Today,  ANPD  is refining  its criteria  and soon it will 
publish  a specific  guide  on the legal hypothesis  of personal  data processing  as well as specific  
regula tion on international  personal  data transfer.  
There  is also the Law No. 12.965/2014,  known  as Marco  Civil da Internet,  henceforth  MCI, it is a 
reference  in regulating  the Brazilian  internet  and has privacy  protection  as one of its main pillars.  
This was the first law in the country  to regulate  principles,  safeguards,  rights  and duties  of network  
users  and companies,  addressing  the legal relationships  established  on the internet.    
According  to article  9, first paragraph,  article  5, second  paragraph,  article  6, and article  8, item I of 
MCI, and article  17 of the Decree  No. 8.771/2015,  the internet  neutrality  theme  and its management  
will be regulated  by the Brazilian  Telecommunications  Agency  – ANATEL,  considering  the guidelines  
established  by the Internet  Management  Committee  – CGIbr.  On this topic,  these  entities  are 
responsible  to cover  the regulation  and management  of internet  neutrality.  
Finally,  there is the Access  to Information  Act (Lei de Acesso  à Informa ção), henceforth  LAI, in which  
the legislator  guarantees  due access  to public  information  to reach  and respect  transparency  levels  
in public  bodies.    All three  laws express  similar  principles,  and have rules and purposes,  which  
complement  and reinforce  each other,  whether  in terms  of promoting  the principle  of transparency  
or the protection  of personal  information,  they also reiterate  basic safeguards  that need to be 
protected  in digital  world.   
Page 48 Para 4.151  (on the Government  Report ) 
Furthermore,  the General  Data Protection  Law (Law No. 13,709/2 018) was enacted  to protect  the 
rights  to freedom  and privacy.  The law disciplines  treatment  of personal  data, available  in physical  
or digital  means,  carried  out by a legal or a natural  person  of public  or private  law, encompassing  a 
vast set of operation s that could  take place in manual  or digital  means.  The Constitutional  
Amendment  115/2022  included  the protection  of privacy  rights  in the list of fundamental  rights,  
being  elevated  in the Federal  Constitution's  hierarchy.  The National  Data Protection  Authority 
(ANPD),  established  in 2020 to ensure  the compliance  with Law No. 13,709,  became  a federal  
autarchy  in 2022 and was granted  more autonomy  in its decision -making.  
Page 172 Para 4.296  (on the Secretariat  Report ) 
The main e-commerce  regulatory  framework  involves  e-commerce  requirements  such as full 
identification  of the supplier  on the site, provision  of the physical  and electronic  address  on the site, 
clear and precise  information,  the delivery  of a summary  and a full agreement,  purchase  
confirmation,  rules for online  customer  service,  information  security,  the right of cancellation,  rules 
for requested  chargebacks,  and rules for collective  purchases.402  Furthermore,  the General  Personal  
Data Protection  Law (LGPD),  Law No. 13,709/2018,  was enacted  to protect the fundamental  rights  
of freedom  and privacy,  as well as to protect  the free formation  of the personality  of each individual.  
The Law talks about  the processing  of personal  data, available  in physical  or digital  media.  
Question:  
14. How is the mechanism of law enforcement of General Data Protection Law in Brazil?  
REPLY:   
According  to LGPD,  article  55-J, sub-section  IV, ANPD  has the power  to supervise  and apply  sanctions  
in case of data processing  carried  out in breach  of the legislation,  through  an administrative  process  
that ensures  the right to adversarial  proceeding,  full defense,  and the right of appeal.  ANPD 's 
Resolution  No. 1/2021,  article  40, provides  that inspection  sector  shall carry out preliminary  
investigations  when  the evidence  of infraction  is not sufficient  for the immediate  establishment  of 
an administrative  sanctioning  process,  that may happen  by the sector 's decision  or upon request.     WT/TPR/M/432/Add.1  
 
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  Besides,  Article  55-J, sub-section  XIII of LGPD  provides  that ANPD  is competent  to issue regulations  
and procedures  on personal  data protection  and privacy.  Moreover,  ANPD  is now working  on the 
process  of formulating  the Inspection  Process  and the Sanctioning  Administrative  Procedure.  The 
draft resolution  was published  for public  hearing.  As explai ned before,  ANPD  has published  
Resolution  No. 1/2021  that regulates  the Inspection  Process  and Administrative  Sanctioning  Process.  
Right now the ANPD  normatization  team is working  on a norm  to define  standards  for penalty  dosage.  
 
Page 48 Para 4.153  
Anothe r important  change  in the telecommunication  legislation  was the amendment  of the 
Law No. 9,998/2000  by Law 14,109/2020,  allowing  a more efficient  use of the Universal  Service  
Fund (USF).  The USF can now be used for investments  in initiatives  related  to access and connectivity  
public  policies,  in contrast  with the older stricter  regime  where  the fund could  only be invested  in 
services  under  the public  regime  (fixed  telephony).  
15. How is the implementation of the shift of Universal Service Fund (USF) allocation, which was 
initially dedicated for public sector, and now to access and connectivity upgrade? Do they use 
Private - Public Partnership (PPP) or other schemes to implement?  
REPLY:   
According  to Law No. 14,109/2020,  investments  in programs,  initiatives and actions  for 
telecommunication  services  based  on the Universal  Service  Fund (USF)  can be executed  by private  
entities,  certain  unions  or public  schools,  through  instruments  signed  with the federal  government.  
In the evaluation  of programs,  project s and activities  where  USF resources  can be applied,  
preference  will be given  to those  initiatives  that involve,  at the same  time, the government,  private  
entities,  unions,  non-governmental  organizations  and public  schools.  
 
PART  III: GENERAL  QUESTIONS  
Cold Rolled  Stainless  Steel 304 
16. The Government of Indonesia (GOI) would like to seek for the Brazilian Investigation Authority 's 
reconsideration of the subsidy margin calculation and take into consideration the GOl's 
statements presented at the public hear ing which emphasized the following areas:  
a) Provision of Nickel Ore for LTAR:  
• The GOI has never entrusted or instructed any mandate to the nickel ore producers to 
sell the nickel ore at LTAR to the downstream industries. As such, neither of the 
Indonesian Nickel Ore producers is a public body nor are they a government -entrusted 
body within the meaning of the SCM Agreement.  
• The GOI would like again to emphasize the opinion of the Panel and Appellate  Body 
among others in the US - Export Restraints (DS194), which firmly determined that 
export restraints do not constitute a "financial contribution" under the SCM  Agreement . 
b) Provision of Coal and Coke for LTAR:  
• The GOI does not maintain domestic obligation upon coal producers, particularly 
concerning sa les and transaction price, to Indonesian stainless -steel Industries.  
 
c) Provision of Land for LTAR:  
• The GOI is of the view that it is important to correctly define the nature of ownership of 
the land. In principle, individual ownership of the land is acknowledged in Indonesia. As 
the GOI had properly described and presented the evidence before the verification team 
that Indonesia Morowali Industrial Park acquired the pieces of land from local people 
through independent negotiation with the previous lan downers who are private parties.  
• Further, the GOl only provides land administrative services through the local land office 
to formalize the rights over the land. Most importantly the Nilai Jual Obiek Pajak (NJOP) 
represents the benchmark of land price for the purpose of land tax collection. NJOP in a WT/TPR/M/432/Add.1  
 
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certain area is established and adjusted by the local government revenue office taking 
into account the prevailing land price in the area. NJOP does not constitute the 
benchmark price for the land transaction. As such, there is no countervailable issue over 
the land.  
REPLY:   
Issue  in due process  by Brazilian  Authorities.  
 
17. Brazil new regulation (transnational subsidy)  
On 14 February  2022,  the Government  has implemented  the new CVD rules,  namely  SECEX  
Ordinance  No. 172 of 14 February  2022.  In this new regulation  (Subsection  XI of Transnational  
Subsidies),  it is stipulated  that: 
"Art. 112. As a rule, the Undersecretary  of Commercial  Defense  and Public  Interest  will not 
consider  subsidies  granted  by a government  of a country  other  than the one in which  the 
investigated  company  is located,  or subsidies  granted  by an international  lending  or development  
institution,  with the following  exceptions:  
I. if the members  of an international  consortium  dedicated  to the production  of a n investigated  
product  receive  actionable  subsidies  from their respective  countries  of origin  to assist,  allow or 
enable  participation  in the investigate d consortium;  
II. if the government of the country of the investigated company, in a clear and explicit way, 
endorses, recognizes or adopts the granting of subsidies by the other government as if such 
measures were part of its own policy of granting subsid ies; or  
III. when such subsidies are granted by an association of two or more foreign countries, including 
their political subdivisions, their dependent territories or their possessions, organized in a 
customs union, in which case they will be treated as a  single country."  (Unofficial translation).  
According  to the Brazil  new regulation,  there are 3 elements  of actions  taken  by exporting  countries  
that can be considered  as Transnational  Subsidies.  One of them is if the exporting  country  endorses,  
recognizes  or adopts  subsidies  from other  governments.  
a) We would like to seek the clarification whether this new regulation align with the Agreement 
on Subsidies and Countervailing Measures (ASCM) since it seems that the Brazilian Government 
tend to extend the defini tion of the WTO Rules?  
b) Article 1.1. (a)(1) of ASCM stated that ...... "a subsidy shall be deemed to exist if: (a)(1) there 
is a financial contribution by a government or any public body within the territory of a Member 
(referred to in this Agreement as "go vernment"), i.e.  where.... ". Regarding this issue, Indonesia 
needs further clarification from Brazil.  
REPLY:   
Considering  the interpretation  principles  set out on the Vienna  Convention  on the Law of Treaties,  
there  is full compliance  of the Brazilian  legislation  with the Agreement  on Subsidies  and 
Countervailing  Measures  (ASCM).   
Brazil understands that SECEX Ordi nance No. 172, from February 47h, 2022, is according to ASCM. 
The ASCM is mentioned as the basis for the Ordinance 172 in its chapeau, both nominatively and 
through Decree No. 1355, that incorporated Uruguay Round Agreements into Brazilian Law. The 
definit ions are more specific than in the agreement, but they do not diverge from the legal text.  
 
__________