RESTRICTED  
  
WT/TPR/S/ 432 
19 October  2022 
(22-7842) Page: 1/200 
Trade Policy Review Body   
 
  
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
BRAZIL 
This report, prepared for the eighth Trade Policy Review of Brazil, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex  3 of the Marrakesh Agreement Establishing 
the World Trade Organization), sought clarification from Brazil on its trade policies and practices.  
 
Any technical questions arising from this report  may be addressed to Sergios Stamnas 
(tel. 022 739 5382) , Rosen Marinov (tel . 022 739 6391) , and Robson Fernandes (tel . 022 739 5397)  
 
Document WT/TPR/G/ 432 contains the policy statement submitted by Brazil.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Brazil. This report was drafted in 
English.  
  WT/TPR/S/ 432 • Brazil  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  9 
1  ECONOMIC ENVIRONMENT  ................................ ................................ .........................  15 
1.1  Main Features of the Economy  ................................ ................................ .....................  15 
1.2  Recent Economic Developments  ................................ ................................ ...................  19 
1.2.1   Growth, income, and employment  ................................ ................................ .............  19 
1.2.2   Prices  ................................ ................................ ................................ .....................  21 
1.2.3   Main macroeconomic policy developments  ................................ ................................ .. 22 
1.2.3.1   Monetary and exchange rate policy  ................................ ................................ .........  22 
1.2.3.2   Fiscal policy  ................................ ................................ ................................ ..........  23 
1.2.4   Structural policies  ................................ ................................ ................................ .... 23 
1.2.4.1   Tax reform  ................................ ................................ ................................ ...........  24 
1.2.4.2   Privatization  ................................ ................................ ................................ .........  24 
1.2.4.3   Competition p olicy and corporate governance  ................................ ...........................  25 
1.2.4.4   Labour market policies ................................ ................................ ...........................  25 
1.2.5   Balance of payments  ................................ ................................ ................................  26 
1.3  Developments in Trade and Investment  ................................ ................................ ........  27 
1.3.1   Trends and patterns in merchandise and services trade  ................................ ................  27 
1.3.2   Trends and patterns in FDI  ................................ ................................ .......................  30 
2  TRADE AND INVESTMENT REGIMES  ................................ ................................ ...........  35 
2.1  General Framework  ................................ ................................ ................................ .... 35 
2.2  Trade Policy Formulation and Objectives  ................................ ................................ ........  36 
2.2.1   Trade policy formulation  ................................ ................................ ...........................  36 
2.2.1.1   Executive branches of government  ................................ ................................ ..........  36 
2.2.1.2   Advisory, planning, and other bodies  ................................ ................................ ....... 37 
2.2.2   Trade policy objectives  ................................ ................................ .............................  37 
2.2.3   Trade laws and regulations  ................................ ................................ .......................  39 
2.2.3.1   Regulatory framework and reform  ................................ ................................ ...........  39 
2.2.3.2   Transparency and e -government  ................................ ................................ ............  40 
2.3  Trade Agreements and Arrangements  ................................ ................................ ...........  44 
2.3.1   WTO ................................ ................................ ................................ ......................  44 
2.3.1.1   Features  ................................ ................................ ................................ ..............  44 
2.3.1.2   Trade -related technical assistance  ................................ ................................ ...........  45 
2.3.1.3   Notifications  ................................ ................................ ................................ .........  45 
2.3.2   Regional trade agreements and preferential trade arrangements  ................................ ... 45 
2.3.2.1   MERCOSUR  ................................ ................................ ................................ ..........  50 
2.3.2.2   Preferential trade arrangements  ................................ ................................ .............  53 
2.4  Investment Regime  ................................ ................................ ................................ .... 53 
2.4.1   Regulatory and institutional framework  ................................ ................................ ...... 54 WT/TPR/S/ 432 • Brazil  
 
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  2.4.2   Restricted activities  ................................ ................................ ................................ .. 55 
2.4.3   Registration and approval  ................................ ................................ .........................  56 
2.4.4   Investment promotion and facilitation  ................................ ................................ ........  58 
2.4.5   Dispute resolution  ................................ ................................ ................................ .... 58 
2.4.6   Bilateral treaties and international cooperation  ................................ ............................  59 
3  TRADE POLICIES AND PRACTICES BY MEASURE  ................................ .........................  61 
3.1  Measures Directly Affecting Imports  ................................ ................................ ..............  61 
3.1.1   Customs procedures, valuation, and requirements  ................................ .......................  61 
3.1.2   Rules of origin  ................................ ................................ ................................ .........  64 
3.1.3   Tariffs  ................................ ................................ ................................ ....................  64 
3.1.3.1   Applied MFN tariff  ................................ ................................ ................................ . 64 
3.1.3.2   Bindings  ................................ ................................ ................................ ..............  67 
3.1.3.3   Preferences  ................................ ................................ ................................ ..........  68 
3.1.4   Other charges affecting imports  ................................ ................................ .................  69 
3.1.5   Import prohibitions, restrictions, and licensing  ................................ ............................  72 
3.1.6   Anti-dumping, countervailing, and safeguard measures  ................................ ................  73 
3.1.7   Other measures affecting imports  ................................ ................................ ..............  75 
3.2  Measures Directly Affecting Exports  ................................ ................................ ..............  75 
3.2.1   Customs procedures and requirements  ................................ ................................ ....... 75 
3.2.2   Taxes, charges, and levies  ................................ ................................ ........................  76 
3.2.3   Export prohibitions, restrictions, and licensing  ................................ .............................  76 
3.2.4   Export support and promot ion ................................ ................................ ...................  77 
3.2.4.1   Export support schemes  ................................ ................................ ........................  77 
3.2.4.2   Export processing zones  ................................ ................................ ........................  78 
3.2.4.3   Export promotion  ................................ ................................ ................................ .. 79 
3.2.5  Export finance, insurance, and guarantees  ................................ ................................ .. 80 
3.3  Measures Affecting Production and Trade ................................ ................................ ....... 83 
3.3.1   Incentives  ................................ ................................ ................................ ...............  83 
3.3.1.1   Overview  ................................ ................................ ................................ .............  83 
3.3.1.2   Free trade zones  ................................ ................................ ................................ ... 83 
3.3.1.3   Federal financing facilities  ................................ ................................ ......................  85 
3.3.1.4   Research and development (R&D) programmes  ................................ ........................  86 
3.3.2   Standards and other technical requirements  ................................ ...............................  87 
3.3.3   Sanitary and phytosanitary requirements  ................................ ................................ .... 89 
3.3.4   Competition policy and price controls  ................................ ................................ .........  91 
3.3.4.1   Competition policy  ................................ ................................ ................................  91 
3.3.4.2   Price controls  ................................ ................................ ................................ ....... 93 
3.3.5   State trading, state -owned enterprises, and privatization  ................................ .............  94 
3.3.6   Government procurement  ................................ ................................ .........................  95 
3.3.7   Intellectual property  rights  ................................ ................................ ........................  99 WT/TPR/S/ 432 • Brazil  
 
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  3.3.7.1   Overview  ................................ ................................ ................................ .............  99 
3.3.7.2   Industrial property  ................................ ................................ ...............................  100 
3.3.7.3   Copyright  ................................ ................................ ................................ ............  101 
3.3.7.4   Enforcement  ................................ ................................ ................................ ........  102 
4  TRADE POLICIES BY  SECTOR  ................................ ................................ ....................  103  
4.1  Agriculture, Forestry, and Fisheries  ................................ ................................ ..............  104 
4.1.1   Main features  ................................ ................................ ................................ .........  104 
4.1.2   Policy and institutional framework  ................................ ................................ .............  105 
4.1.3   Border measures  ................................ ................................ ................................ .... 106 
4.1.4   Domestic support  ................................ ................................ ................................ ... 107 
4.1.4.1   Agricultural/rural credit  ................................ ................................ .........................  109 
4.1.4.2   Minimum price guarantees  ................................ ................................ ....................  115 
4.1.4.3   Measures to promote family farming  ................................ ................................ ...... 116 
4.1.4.4   Other measures  ................................ ................................ ................................ ... 118 
4.1.4.4.1   Agricultural/rural insurance  ................................ ................................ ................  118 
4.1.4.4.2   Advance sale facilities  ................................ ................................ ........................  119 
4.1.4.4.3   Zoning, land, and other requirements  ................................ ................................ .. 119 
4.1.4.4.4   Other  ................................ ................................ ................................ ...............  119 
4.2  Mining and Energy  ................................ ................................ ................................ ..... 119 
4.2.1   Mining (excluding hydrocarbons)  ................................ ................................ ..............  119 
4.2.1.1   Main features  ................................ ................................ ................................ ...... 119 
4.2.1.2   Institutional and policy framework  ................................ ................................ .........  120 
4.2.1.3   Regulatory and operational framework  ................................ ................................ ... 121 
4.2.1.4   Border measures and domestic support  ................................ ................................ .. 122 
4.2.2   Energy  ................................ ................................ ................................ ..................  124 
4.2.2.1   Main features  ................................ ................................ ................................ ...... 124 
4.2.2.2   Policy and institutions  ................................ ................................ ...........................  124 
4.2.2.3   Hydrocarbons and biofuels  ................................ ................................ ....................  125 
4.2.2.3.1   Oil ................................ ................................ ................................ ...................  125 
4.2.2.3.1.1   Main features  ................................ ................................ ................................ . 125 
4.2.2.3.1.2   Upstream – Exploration and production (E&P) arrangements  ...............................  126 
4.2.2.3.1.3   Downstream  ................................ ................................ ................................ .. 128 
4.2.2.3.2   Gas ................................ ................................ ................................ .................  129 
4.2.2.3.3   Biofuels ................................ ................................ ................................ ............  129 
4.2.2.3.3.1   Ethanol  ................................ ................................ ................................ .........  129 
4.2.2.3.3.2   Biodiesel  ................................ ................................ ................................ ....... 131 
4.2.2.4   Electricity  ................................ ................................ ................................ ............  132 
4.2.2.4.1   Main features ................................ ................................ ................................ .... 132 
4.2.2.4.2   Policy and institutions  ................................ ................................ ........................  133 
4.2.2.4.3   Regulatory and operational aspects  ................................ ................................ ..... 133 WT/TPR/S/ 432 • Brazil  
 
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  4.3  Manufacturing  ................................ ................................ ................................ ...........  136 
4.3.1   Main features  ................................ ................................ ................................ .........  136 
4.3.2   Policy and institutions  ................................ ................................ .............................  137 
4.3.3   Border measures  ................................ ................................ ................................ .... 138 
4.3.4   Domes tic support  ................................ ................................ ................................ ... 138 
4.3.5   Automotive sector  ................................ ................................ ................................ ... 140 
4.3.6   Information technology  ................................ ................................ ...........................  142 
4.3.7   Aeronautics  ................................ ................................ ................................ ............  143 
4.3.8   Other  ................................ ................................ ................................ ....................  143 
4.4  Services  ................................ ................................ ................................ ...................  143 
4.4.1   Main features  ................................ ................................ ................................ .........  143 
4.4.2   Commitments under the General Agreement on Trade in Services and RTAs  ..................  144 
4.4.3   Financial services  ................................ ................................ ................................ .... 145 
4.4.3.1   Banking a nd finance  ................................ ................................ .............................  146 
4.4.3.1.1   Institutional framework  ................................ ................................ ......................  147 
4.4.3.1.2   Regulatory framework  ................................ ................................ .......................  147 
4.4.3.1.3   Prudential requirements and soundness  ................................ ...............................  147 
4.4.3.1.4   Securities  ................................ ................................ ................................ .........  149 
4.4.3.2   Insurance  ................................ ................................ ................................ ...........  150 
4.4.3.2.1   Institutional framework  ................................ ................................ ......................  151 
4.4.3.2.2   Regulatory framework  ................................ ................................ .......................  151 
4.4.3.2.3   Reinsurance  ................................ ................................ ................................ ..... 153 
4.4.4   Telecommunications  ................................ ................................ ................................  153 
4.4.4.1   Policy and institutions  ................................ ................................ ...........................  154 
4.4.4.2   Regulatory and operational framework  ................................ ................................ ... 155 
4.4.4.3   Interconnection  ................................ ................................ ................................ ... 155 
4.4.4.4   Domestic support  ................................ ................................ ................................ . 155 
4.4.4.5   Number portability  ................................ ................................ ...............................  157 
4.4.4.6   Tariffs ................................ ................................ ................................ .................  157 
4.4.4.7   Competition -related issues  ................................ ................................ ....................  158 
4.4.4.8   Universal Service Obligations  ................................ ................................ .................  158 
4.4.5   Audiovisual and broadcasting services  ................................ ................................ ....... 159 
4.4.6   Transport  ................................ ................................ ................................ ...............  160 
4.4.6.1   Air transport  ................................ ................................ ................................ ........  161 
4.4.6.1.1   Airline services  ................................ ................................ ................................ . 161 
4.4.6.1.2   Regulatory and operational framework  ................................ ................................ . 162 
4.4.6.1.3   Airport and auxiliary services  ................................ ................................ ..............  164 
4.4.6.2   Maritime transport and ports  ................................ ................................ .................  165 
4.4.6.2.1   Shipping  ................................ ................................ ................................ ..........  165 
4.4.6.2.1.1   Policy and institutions  ................................ ................................ .....................  166 WT/TPR/S/ 432 • Brazil  
 
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  4.4.6.2.1.2   Regulatory and operational framework  ................................ ..............................  166 
4.4.6.2.1.3   Domestic support  ................................ ................................ ...........................  167 
4.4.6.2.2   Port services  ................................ ................................ ................................ ..... 168 
4.4.6.2.2.1   Policy and institutions  ................................ ................................ .....................  169 
4.4.6.2.2.2   Regulatory and operational framework  ................................ ..............................  169 
4.4.7   Distribution and e -commerce  ................................ ................................ ...................  170 
4.4.7.1   Distribution  ................................ ................................ ................................ .........  170 
4.4.7.2   E-commerce  ................................ ................................ ................................ ........  171 
4.4.8   Tourism  ................................ ................................ ................................ .................  173 
4.4.9   Professional services  ................................ ................................ ...............................  174 
4.4.9.1   Legal services  ................................ ................................ ................................ ...... 175 
4.4.9.2   Accounting and auditing services  ................................ ................................ ...........  176 
4.4.9.3   Architectural and urban planning services  ................................ ...............................  176 
4.4.9.4   Medical s ervices  ................................ ................................ ................................ ... 177 
5  APPENDIX TABLES  ................................ ................................ ................................ ... 179  
 
CHARTS  
 
Chart 1.1 Product composition of merchandise trade by main HS section, 2017 and 2021  ..........  28 
Chart 1.2 Direction of merchandise trade, 2017 and 2021  ................................ ......................  29 
Chart 3.1 Frequency distribution of MFN tariff rates, 2017 and 2022  ................................ ....... 65 
Chart 3.2 Tariff escalation by 2 -digit ISIC industry, 1  April 2022 ................................ .............  66 
Chart 3.3 Average ap plied and bound tariff rates, by HS section, 1  April 2022 ..........................  68 
Chart 3.4 Tariff preferences of selected trade agreements, 2022  ................................ .............  69 
Chart 3.5 ZFM trade balance, 2017 -21 ................................ ................................ ................  84 
Chart 3.6 ZFM expenditure on inputs and sales revenue, 2017 -21................................ ...........  84 
Chart 3.7 Federal SOEs by sector, December 2021  ................................ ................................  94 
Chart 4.1 Brazil's main agricultural exports , 2017 -21 ................................ ...........................  105 
Chart 4.2 Interest rate spread, January 2016 -January 2022  ................................ ..................  149 
 
TABLES  
 
Table 1.1 Selected macroeconomic indicators, 2017 -21 ................................ .........................  16 
Table 1.2 Basic economic and employment indicators, 2017 -21 ................................ ..............  20 
Table 1.3 Balance of payments, 2017 -21 ................................ ................................ .............  26 
Table 1.4 Trade in services, 2017 -21 ................................ ................................ ...................  30 
Table 1.5 Foreign direct investment (equity)  outflows, 2017 -21 ................................ ..............  31 
Table 1.6 Foreign direct investment (equity) inflows, 2017 -21 ................................ ................  32 
Table 2.1 Brazil's RTAs in force: main features, as of 25  January  2022 ................................ .... 46 
Table 2.2 Indicative list of FDI closed and restricted sectors, 2022  ................................ ..........  56 WT/TPR/S/ 432 • Brazil  
 
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  Table 3.1 Distribution of IDs by risk assessment channel, 2016 -21 ................................ .........  62 
Table 3.2 Structure of the MFN tariff schedule, 2017 and 2022  ................................ ...............  65 
Table 3.3 Federal tax revenue, by main source, 2017 -21 ................................ .......................  70 
Table 3.4 Forgone federal tax revenue, 2017 -21 ................................ ................................ ... 71 
Table 3.5 Import prohibitions, 2021  ................................ ................................ ....................  72 
Table 3.6 Trade remedy actions, 2017 -21 ................................ ................................ ............  74 
Table 3.7 Export taxes, 2017 -22 ................................ ................................ .........................  76 
Table 3.8 Drawback regime implementation, 2017 -21 ................................ ...........................  78 
Table 3.9 PROEX implementation, 2017 -21 ................................ ................................ ..........  81 
Table 3.10 BNDES -EXIM disbursements, 2017 -21 ................................ ................................ . 82 
Table 3.11 SCE/FGE activity, 2017 -21 ................................ ................................ .................  82 
Table 3.12 Brazilian development bank support, 2017 -21 ................................ ......................  85 
Table 3.13 BNDES disbursements by credit scheme, 2017 -21 ................................ .................  85 
Table 3.14 Sectoral science, technology and innovation (S, T&I) funds, 2022  ...........................  86 
Table 3.15 INMETRO tac it approval timelines, 2022  ................................ ...............................  88 
Table 3.16 Competition enforcement, 2017 -21 ................................ ................................ ..... 92 
Table 3.17 Regulated prices, 2022  ................................ ................................ ......................  93 
Table 3.18 Value of federal government procurement in Brazil, 2016 -20 ................................ .. 95 
Table 3.19 Federal administration procurement by m ethod, 2017 -21 ................................ ....... 97 
Table 3.20 Industrial property applications and decisions, 2017 -21 ................................ ........  100 
Table 4.1 Brazil's agri -business trade balance, 2014 -21 ................................ ........................  104 
Table 4.2 Agricultural support, by commodity, 2016 -21 ................................ ........................  108 
Table 4.3 Direct payment and general services support, 2017 -21 ................................ ...........  108 
Table 4.4 Brazil's federal governmen t agricultural support programmes, 2017 -21 (prevailing 
norms for crop -year 2021/22)  ................................ ................................ ...........................  110 
Table 4.5 Sources of agricultural/rural credit, 2010 -21 ................................ .........................  113 
Table 4.6 Price support programmes, FY2019/20  ................................ ................................ . 115 
Table 4.7 Budget allocated to family farming programmes and measures, FY2020/21  ..............  117 
Table 4.8 Licences and titles for mining granted (2017 -June 2022)  ................................ ........  121 
Table 4.9 Financial Compensation for the Exploration of Mineral Resources (CFEM) rates  ..........  122 
Table 4.10 CFEM annual revenue  ................................ ................................ .......................  122 
Table 4.11 Regulatory framework for oil and gas exploration and production, 2021  ..................  126 
Table 4.12 Structure of the financial system, 2017 -20 ................................ ..........................  145 
Table 4.13 Banking soundness indicators, 2017 -20 ................................ ..............................  148 
 
BOXES  
 
Box 1.1 Brazil's response to the COVID -19 challenge  ................................ .............................  17 
 
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  APPENDIX TABLES  
 
Table A1.1 Merchandise exports by HS section and major HS chapter/subheading, 2017 -21 ..... 179 
Table A1.2 Merchandise imports by HS section and major HS chapter/subheading, 2017 -21 ..... 181 
Table A1.3 Merchandise exports by destination, 2017 -21 ................................ ......................  183 
Table A1.4 M erchandise imports by origin, 2017 -21 ................................ .............................  184 
Table A2.1 Notifications  to the WTO, 1 January 2017 -31 January 2022  ................................ ... 185 
Table A3.1 Summary analysis of Brazil's MFN tariff, 1  April 2022  ................................ ...........  189 
Table A3.2 BNDES selected export finance programmes, 2017  ................................ ..............  190 
Table A3.3 Selected federal incentive schemes, 2022  ................................ ...........................  191 
Table A4.1 Domestic agricultural support notified to the WTO, 2016/17; 2017/18; 
2018/19; 2019/20  ................................ ................................ ................................ ...........  192 
Table A4.2 Brazil's air transport agreements and related action, 2022  ................................ .... 193 
 
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  SUMMARY  
1. Since Brazil's previous Review in 2017, efforts for improving economic fundamentals and 
strengthening macroeconomic resilience were undertaken. During the review period and prior to the 
COVID -19 outbreak, Brazil's annual GDP growth rate rose up to 1.8% (20 18) before contracting 
to -3.9% (2020), due to the pandemic. It has since bounced back to an estimated 4.6% in 2021 as 
a result of timely adopted support measures, booming terms of trade, a pick -up in commodity prices, 
recovery in domestic and external dem and, and robust private sector credit growth. Brazil's annual 
average GDP growth rate for the period 2017 -21 was relatively low at 1%, although higher than the 
average of -0.4% in 2012 -16. Developments in the country's position among the most competitive 
economies in the world reflect, inter alia , improvements in the business environment but also 
weaknesses in several areas where reforms have been under way. Between 2017 and 2020, inflation 
at rates ranging from 3.2% to 3.7% remained under the upper limit o f the tolerance range 
established by the Central Bank of Brazil (BCB); however, since January 2021, it exceeded its upper 
limit attaining 8.3% that year, and rose progressively to 12.13% in April 2022, but easing 
subsequently to 11.7% in May 2022. Unemploy ment rose slightly to the historically high rate 
of 13.5% in 2020 and 2021, inter alia , due to the impact of the pandemic.  
2. During the review period, trade and trade -related structural reforms focused on boosting 
productivity, potential growth, and living s tandards, among others, were undertaken in several areas 
including regulatory and institutional issues, privatization, and the labour market. These reforms 
seem to have attracted private investment into transportation, energy, and water and sewage and 
are expected to generate additional infrastructure investment. To protect the poor and the most 
vulnerable people who were disproportionally affected by the COVID -19 pandemic, Brazil put in place 
a large, targeted, and time -bound fiscal package focused on heal th spending, social assistance, and 
support to firms to contain layoffs. During the review period, monetary policy was gradually loosened 
and recently tightened. Between 2017 and 2022, the Selic policy rate was reduced progressively 
from a peak of 14.25% ( August 2015) to a historical low of 2% (applying from 23 July 2020 to 
10 March 2021) and then was raised gradually to 11.75% (29 March 2022) to address rising inflation. 
Brazil's floating exchange rate system continued to work as an important shock absorbe r. During 
the review period, the current account deficit peaked to 3.5% of GDP in 2019 and then shrunk 
to 1.7% in 2020 and 2021 due to, inter alia , improvements in the trade, services, and income 
balances. Brazil's overall gross external debt (including in tercompany lending and debt securities 
traded in the domestic market) grew slightly by an overall rate of 0.5% during the period 2017 -21; 
it peaked to USD 675.8 billion in 2019 and dropped to USD 670.3 billion, or the equivalent of 41.7% 
of GDP in 2021.  
3. Brazil's openness to international trade and its integration into the world economy continued 
to be reflected by the ratio of the country's trade (exports plus imports) in goods and services 
to GDP, which rose significantly from 24.3% in 2017 to 39.2% in 202 1 due to an increase of both 
exports and imports in 2020 and 2021. Merchandise exports have become increasingly concentrated 
on commodities (e.g. vegetable products, live animals, and petroleum and mineral products), 
whereas merchandise imports concentrate d on manufactures. International trade trends reflect the 
rising importance of Asia, particularly China, and the relative decline of the Americas' weight; 
furthermore, merchandise trade with MERCOSUR partners declined considerably, notably on the 
exports s ide. In 2021, China, the European Union, and the United States were Brazil's main export 
markets and its main sources of imports, albeit in a different order (i.e. China, the United  States, 
and the European  Union).  
4. Brazil remains open to and encourages inw ard foreign direct investment (FDI), which is 
prevalent across the economy despite certain foreign ownership prohibitions (e.g. postal services 
and nuclear energy) or limitations or prior authorization/approval requirements in some sectors 
(e.g. health ser vices, rural land acquisition, broadcasting and publishing media, fishing, mining, and 
hydrocarbons exploration). During the review period, Brazil took several steps to improve 
the business climate via regulatory (e.g. the 2021 New Business Environment Law ), 
institutional  (e.g. the creation of the Direct Investments Ombudsman (DIO)), and procedural 
changes, and to facilitate foreign investment participation in air transport (lifting of foreign ownership 
restrictions) and financial services. Legally register ed domestic and foreign companies compete on 
an equal footing when bidding on contracts or seeking tax and non -tax incentives; foreign 
companies' direct participation in government procurement bidding was eased. During the review 
period, FDI equity inflows  bottomed, reflecting the negative impact of the pandemic, and in 2021 
rose at an amount equivalent to 65.3% of their 2017 level; the European Union and the United WT/TPR/S/ 432 • Brazil  
 
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  States were the main sources and destinations of FDI flows. Brazil continued the replacement  of its 
bilateral investment, promotion, and protection agreements by investment cooperation and 
facilitation agreements, as well as the conclusion of double taxation avoidance treaties.  
5. Since its last Review in 2017, Brazil undertook several constitutiona l amendments related to, 
inter alia, transfer of federal financial resources and emergency aid to address the social and 
economic consequences of the COVID -19 pandemic. The institutional framework for trade policy 
formulation remained broadly unchanged, ex cept for the transfer of the Ministry of Industry, Foreign 
Trade and Services including the Executive Secretariat of the Foreign Trade Board/Chamber (CAMEX) 
and the Secretariat of Foreign Trade (SECEX) to a new Ministry of Economy created in 2019. 
Brazil's  stated overall trade and trade -related policy objectives have remained those of industrial 
development, production diversification, technological upgrading, raising competitiveness of 
domestic products, and integration into global value chains and interna tional markets, as well as 
intensifying and diversifying exports. Its three -pillar trade policy agenda consisted of intensification 
of the trade agreements network of the Southern Common Market (MERCOSUR), modernization of 
the MERCOSUR common external tari ff (CET) structure, and reduction of non -tariff barriers to trade. 
During the review period, Brazil adopted measures to simplify regulations, increase transparency, 
and encourage trade, as well as to promote the use of several tools related to good regulat ory 
practices, including the obligation of conducting Regulatory Impact Analyses/Assessments; it also 
made advances in e -government and anti -corruption.  
6. Brazil remains committed to, and is an active participant in, the multilateral trading system. 
During t he review period, it participated in all WTO joint statement initiatives, i.e. e -commerce, 
investment facilitation for development, MSMEs (micro, small, and medium -sized enterprises), and 
services domestic regulation. The procedure for its accession to the  WTO Agreement on Government 
Procurement (GPA) has been under way since May 2020. Brazil applied to join the Agreement on 
Trade in Civil Aircraft in June 2022. In March 2019 it announced that it would begin to forgo special 
and differential treatment in WT O negotiations. At the same time, Brazil has continued strengthening 
regional economic integration through MERCOSUR and Latin American Integration Association 
(LAIA/ALADI) RTAs with an emphasis on deepening existing agreements and negotiating agreements 
with trading partners outside the region; it concluded and implemented certain RTAs (Brazil – Chile, 
Brazil – Paraguay, MERCOSUR – Colombia, MERCOSUR – Egypt), while signature and ratification of 
two RTAs (i.e. with the European Union and the European Free T rade Association) and negotiation 
of other agreements are ongoing. Brazil has submitted many notifications to the WTO. During the 
review period, it was directly involved in five new WTO disputes, four as a complainant and one as 
a respondent; at the same t ime, similar to some other Members, it took action ("appeal in the void") 
to address the lack of a functioning WTO Appellate Body.  
7. The tariff remains one of Brazil's main trade policy instruments, and a non -negligible source 
of tax revenue. Brazil applies the MERCOSUR CET, with some country -specific derogations. As 
at 1 April 2022, Brazil's applied MFN tariff was entirely ad valorem  with rates ranging from  zero 
to 55%; it comprised 35 different rates (up from 19 in 2017). During the review period, Brazil 
eliminated the import duties on certain aeronautical goods and implemented several temporary tariff 
reductions in response to the COVID -19 pandemic. The simple average applied MFN tariff declined 
slightly from 11.6% in 2017 to 10% in April 2022 and 9.4% in J uly 2022. Brazil's bound tariff 
schedule and preferential tariffs are yet to be updated to HS22. While nomenclature differences 
would generate noise in most comparisons between Brazil's bound and applied tariffs, the simple 
average bound tariff rate was so me 20.7 percentage points higher than the average MFN rate applied 
as of 1 July 2022.  
8. Since its last Review, Brazil has continued streamlining its foreign trade formalities and 
gradually implementing its Single Window Programme (Programa Portal Único de Co mércio Exterior) 
launched in 2014. Notable developments include the fully digitized export formalities, the upgraded 
Authorized Economic Operator (AEO) programme, and the publication of a Time Release Study (the 
first one in Brazil based on the World Customs Organization's methodology). Brazil has also 
expanded its non -preferential rules of origin (adding an alternative criterion for products deemed to 
have undergone substantial transformation) and updated the relevant verification procedure. 
Regarding  preferential trade, arrangements have been put in place for the bilateral exchange of 
digitally signed certificates of origin with Argentina, Colombia, Paraguay, and Uruguay.  
9. During the review period, Brazil maintained import prohibitions on health and mo ral grounds, 
and to comply with international conventions to which it is a party; its list of import prohibitions WT/TPR/S/ 432 • Brazil  
 
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  remained broadly unchanged. Brazil remains a significant user of trade remedies, particularly 
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 were taken.  
10. Brazil has made limited use of export taxes, which continue to represent a negligible and 
declining share of federal tax revenues. Two such taxes were eliminated in 2018 and 2021, 
respectively (on raw hides and skins and arms and ammunition). Temporary export prohibitions 
have been applied on certain  medical, hospital, and hygiene products deemed essential for 
combatting the spread of COVID -19 in Brazil. Since 2017, Brazil's drawback and export processing 
zone regimes have been updated, and guidelines for reforming the system of federal -level export 
support have been adopted. Programmes intended to increase exports and to boost the 
competitiveness of export -oriented companies remain in place.  
11. Brazil's internal taxation regime remains complex, including in the treatment of imported 
goods and services. D omestic 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 compe tent 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.  
12. Various incentive programmes remained in place during the review period. The range of 
support measures included administered interest rate o r concessional financing, tax concessions, 
financial contributions, accelerated depreciation, guarantees, grants, advisory services, and credit 
insurance. Brazil maintains certain incentives conditional on compliance with Basic Productive 
Process (PPB) cri teria, which are set with a view to maximizing the utilization of domestically installed 
productive capacity.  
13. While the institutional framework for the implementation and administration of the 
TBT Agreement remained broadly unchanged during the review peri od, several initiatives aimed at 
cutting red tape were launched following the enactment of the 2019 Economic Freedom Rights 
legislation. There have been no major changes to the legal and institutional frameworks for sanitary 
and phytosanitary protection si nce Brazil's previous Review.  
14. Brazil's competition regime did not undergo major changes during the review period, having 
been rationalized in 2012. The national competition authority, the Administrative Council for 
Economic Defense (CADE), implemented seve ral initiatives aimed at enhancing transparency and 
service delivery through digital means. Through cease -and-desist agreements (settlements), 
CADE  also secured divestiture commitments from the state -owned enterprise (SOE) Petrobras with 
a view to fosterin g competition in the natural gas and oil refinery markets. Prices of certain sensitive 
goods and services (e.g. residential electricity and fixed line telephone tariffs, pharmaceuticals) 
continued to be controlled or regulated.  
15. During the review period, st ate involvement in some key sectors, such as mining, oil 
exploration, and electricity, was either reduced or terminated. The authorities also took steps to 
strengthen the governance and transparency of federal SOEs, and facilitate the entry of competitors.  
Nevertheless, the economic footprint of Brazil's SOEs remains large, with many federal SOEs owning 
shares of various private companies. In addition, there are various "public companies" owned or 
controlled by state and municipal governments; consolidated information on them is not available. 
Brazil indicated the existence of one state trading enterprise (STE), the National Company for Food 
Supply (CONAB), in its WTO notification for the years 2018 -19. 
16. A new public procurement law was enacted in 2021 and wi ll fully supersede the previous 
legislation after a two -year transitional period of coexistence; it prohibits discriminatory treatment 
between national and foreign suppliers. SOEs remain subject to separate legislation providing for 
greater flexibility. In  2021, an electronic National Public Procurement Portal (PNCP) was launched. 
Preferences for Brazilian -based bidders and Brazilian -made supplies remain in place. An electronic 
system for the management of tendering processes has been implemented.  WT/TPR/S/ 432 • Brazil  
 
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  17. The legal  and institutional frameworks for the protection of intellectual property (IP) rights 
were modified during the review period. The Intellectual Property Inter -Ministerial Group (GIPI), 
established in July 2019, became responsible for IP policy formulation. The main legislative 
amendments affecting IP protection related to patent protection. During the review period, the 
National Industrial Property Institute (INPI) continued taking steps to cut down processing delays 
and reduce its backlog of applications pe nding review.  
18. Since its previous TPR, Brazil has maintained the broad scope of its sectoral trade policies, 
though it introduced relevant regulatory and institutional changes. A significant number of border 
measures, targeted domestic support, and administ rative processes were either eliminated, 
simplified, or streamlined, while concessions in some important sectors were carried out enabling 
sectoral growth in a number of areas, despite the economic challenges posed by the global pandemic. 
The relatively co mplex 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.  
19. Brazil remains a major player in the global trade of certain agr icultural commodities, in 
particular of soybeans, beef, poultry meat, sugar, orange juice, and coffee. In 2021, the agricultural 
sector's share in gross value -added and employment stood at 8.1% (5.7% in 2017) and 9.7%, 
respectively (including fisheries and  forestry). Despite the dualistic nature of farming 
in Brazil  (commercial and family farming), over the past decades, the agricultural sector registered 
faster labour productivity growth vis-à-vis other sectors. The sector remains crop - and 
export -oriented  and depends on imports of agricultural inputs, in particular fertilizers. The average 
MFN applied tariff for agricultural products in 2022 stood at 9.1% (WTO definition). Its low levels of 
domestic support, minimal market price support, and low protection  illustrate the country as a 
competitive global agriculture exporter. Agricultural or rural credit at administered and preferential 
interest rates remain the major policy instrument for the sector. Agricultural zoning requirements 
continue to link agricult ural support to environmental sustainability. They condition 
producers'  eligibility for concessional credit and subsidized insurance programmes. In addition, 
several specific programmes for both the commercial and family farming segments promote 
sustainabl e agricultural practices; they include credit for plantings on unproductive and degraded 
soils, credit for forest planting, and credit to modernize production systems and preserve 
natural  resources.  
20. Brazil also holds a significant position in the world min ing industry. Brazil is among the leading 
producers of iron ore, manganese, niobium, bauxite, and tin. During the review period, institutional 
and policy developments included the creation of the National Mining Agency (ANM) in 2017 to, 
inter alia, promote  the management of mineral resources and oversee the implementation of the 
Strategic Planning (2020 -23). Tariff protection remained unchanged. Domestic support for 
developing mining companies and sustainable technologies through an Inova Mineral joint init iative 
on credits, subsidies, cooperation projects between institutions and companies is available to 
selected firms. In February 2021, the National Bank for Economic and Social Development (BNDES) 
sold its last block of shares in Vale S.A., the largest mi ning company in Brazil and the company with 
the highest market value on the Brazilian stock exchange. The Federal Government still retains 
specific rights (golden shares) assigned in Vale's bylaws.  
21. Brazil remains a net exporter of crude oil and importer of  refined oil products. Its energy 
matrix continued to be considered one of the greenest in the world. The state -controlled Petrobras 
maintained its dominant position both in upstream and downstream hydrocarbons activities. 
Petrobras sold all of its shares in BR Distribuidora, now named Vibra Energia, which is the main 
player in the oil products distribution and retail markets. In the natural gas sector, a 2021 Gas Law 
is to ensure an open and competitive market, enabling a robust regulatory agenda to build the new 
natural gas market, and opening new investment opportunities. Brazil's 2017 National Biofuels Policy 
(RenovaBio) to support reaching the country's climate goals has been in line with its COP21 
commitments. In its third year of full operation, Renov aBio has been consolidating itself as one of 
the largest decarbonization programmes for the fuel matrix in the world. 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. Brazil is the 
world's third -largest producer of biodiesel; the mandatory ble nding ratio of biodiesel added to oil 
diesel has increased, and their production continues benefiting from incentives and a regulated 
domestic market. During the review period, installed capacity and power generation continued to WT/TPR/S/ 432 • Brazil  
 
- 13 - 
 
  grow at a fast pace. In Ju ly 2021, legislation was passed allowing for the privatization of the 
state-owned Eletrobras through capitalization. Electricity tariffs continue to ensure 
cross-subsidization among different consumer categories.  
22. Manufacturing remains relatively large (acc ounting for 11.3% of gross value -added in 2021), 
albeit declining, and diversified. The "Brazil Cost", incipient research, development and innovation 
initiatives, relatively weak integration into the world economy, and punctual shields from external 
compet ition continued to undermine Brazil's ability to fully exploit its industrial potential. Positive 
reforms and initiatives across the board, including shifting from sector - and industry -oriented policies 
and incentives towards actions aimed at major reforms , tackling infrastructure deficiencies, and 
streamlining the business environment are bound to bear long -lasting results and further attract  FDI. 
The average MFN applied tariff for manufacturing products was reduced from 11.8% in  2017 
to 10.3% in 2022. Clo thing, textiles, and transport equipment continue to benefit from the sector's 
highest tariff protection. Incentives, such as remission of duties and taxes on exports remain in 
place; the incidence of those under the REINTEGRA scheme was seemingly diminish ed. 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 domestic prod ucers 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 Arg entina, Mexico, Paraguay, and Uruguay are in place.  
23. The services sector, a key component of overall export competitiveness, remains the main 
contributor to Brazil's gross value -added (69.8% in 2021) and job creation. However, despite 
improvements in certain areas, it continues to suffer from structural weaknesses hindering the 
growth potential of the entire economy. During the review period, Brazil's commitments under 
the GATS remained unchanged. Brazil undertook specific commitments o n trade in services under 
three  RTAs that contain GATS -plus services commitments. In 2020, Brazil notified an exceptional 
and temporary restriction on the entry of foreign natural persons (mostly non -resident) for a period 
of 30  days to contain the risks r elated to COVID -19. The government -owned banks' share of total 
bank assets dropped to 40% in 2020, and high interest spreads remain in place due to, inter alia, 
the lack of competitive pressure on major banks. The main legal framework for banking remained 
relatively unchanged and the banking system has remained resilient. Since February 2021, an "Open 
Banking" policy increased the sharing of customers' data between financial institutions and aimed to 
increase competition in the financial sector. The share o f non -performing loans (NPLs) eased. 
Nevertheless, high interest spreads between lending rates and the remuneration of deposits remain 
in place. The legal framework for insurance remained largely unchanged. An "Open Insurance" policy 
to allow the sharing o f consumers' information among different companies authorized or accredited 
by SUSEP by sharing data and services has been in place since 2021. Brazil continued to account for 
around 40% of Latin America's reinsurance market; IRB Brasil Resseguros, the for mer state 
monopoly reinsurer, continues to dominate the segment.  
24. The fixed and mobile telephony markets remained fully open to competition, though they are 
dominated by a handful of large operators from abroad. In 2021, Brazil carried out the largest radio  
frequency tender of its history on the 5G mobile telephony technology. Investment barriers seemed 
to continue to make market entry a challenge in television broadcasting.  
25. Several initiatives were undertaken in the transport sector. Due to the COVID -19 pan demic, 
in 2020 regular and non -scheduled flights dropped by 51% as compared to 2019. Emergency 
measures were introduced to mitigate the negative economic effects on the air services sector, as 
well as to adapt the rules applicable to the new scenario, whil e seeking to protect the interests of 
passengers. Civil aviation policy pursued greater insertion of Brazilian aviation into international 
markets through the conclusion of new Air Transport Agreements. In other transport modes, the 
main regulatory change was introduced by "BR do Mar" in January 2022 with the aim to improve 
cabotage and reduce costs, thus providing greater efficiency to maritime and waterways transport 
in Brazil. Eight port terminals in six Brazilian states were conceded to the private sect or under the 
Investment Partnership Programme (PPI).  
26. Cross -border e -commerce trade grew during the review period and Brazil holds the second 
position in Latin America in this segment. To offset the negative effects from the COVID -19 
pandemic, the Ministry of Tourism adopted a number of initiatives and prepared a strategy for the 
recovery of the tourism sector. Regarding professional services, the Doctors throughout Brazil WT/TPR/S/ 432 • Brazil  
 
- 14 - 
 
  Programme (Médicos pelo Brasil) was launched in 2019 with the objective of structuring  the federal 
medical career in places with high social vulnerability.  
27. The Brazilian economy is projected to enter a gradual recovery, but growth is expected to 
remain relatively weak for 2022 as uncertainty around the outlook was viewed as exceptionally hi gh 
although risks to growth were being broadly balanced. Downside risks to Brazil's economic outlook 
include fiscal imbalance, a high unemployment rate, inflationary pressures, and rapid population 
ageing. Brazil's relatively low public external indebtedne ss and its significant cushions, such as its 
currency reserves and strong FDI component of capital inflows, against external financial risks 
remain in place; however, the authorities are cautious about the impact of the war in Ukraine on the 
world economy and Brazil's growth prospects. Future prosperity and sustainable growth continue to 
depend on the implementation of productivity -enhancing structural reforms in several areas 
including revamping the complex tax and incentives regime and reducing the regula tory burden on 
businesses, as well as closing infrastructure gaps. These reforms would increase the resilience of 
the Brazilian economy, thus enabling it to continue to meet its broad -based economic and welfare 
objectives, including inclusive growth and a narrower wealth divide.  
 WT/TPR/S/ 432 • Brazil  
 
- 15 - 
 
  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  Brazil has a population of 214  million (as at March 2022) and remains an inward -oriented and 
diversified upper middle income economy underpinned by immense natural resources, a large 
agricultural sector, a strong industrial base with heavy industries, a sizeable domestic market , and 
a considerable middle class that all together  generate significan t growth potential despite existing 
challenges . In 2021, according to IMF, World  Bank, and United Nations estimates, it was the largest 
economy in Latin America and the Caribbean, the  3rd largest in the Americas , and the 12th 
(8th in 2017) largest in the w orld in gross domestic product (GDP) terms, a drop in its global ranking 
partly due to the COVID -19 pandemic and the Brazilian real's (BRL) depreciation (Section  1.2.3.1).1 
According to the Harvard Growth Lab's economic complexity index, in 2019 
Brazil's  49th (41st in 2017) positioning was indicative that its economy has become relatively less 
complex.2 SMEs play an  important role for economic growth and social inclusion in Brazil.3 Several 
of Brazil's state -owned enterprises (SOEs) have significant econ omic size , with three of them being 
among the world's largest 500  enterprises (Sections 1.2.4.2 and 3.3.5).4 Developments in the 
country's position among the most competitive economies in the world reflect , inter alia, 
improvements in the business environ ment but also weaknesses in several areas where reforms 
have been under way (Sections  2.2.3.2 and  2.4).5 Reportedly, Brazil's GDP per capita and 
productivity indicators were 73% lower than OECD best performers in the period 2000 -19.6 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.7 According to 
the OECD, Brazil's informal economy is larger than that in countries at similar levels of income and 
its labour productivity is estimated to be only one  quarter of average labour productivity in the 
 
1 Brazil is considered by the Inter -American Development Bank (IDB) as being poorly integrated both 
with the rest of the world  and internally, seemingly resulting in  internal disparities in its economic and social 
development. IDB (2019), IDB Group Strategy with Brazil 2019 -2022, June. Viewed  at: 
https://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=EZSHARE -750030607 -12; Instituto Brasileiro de 
Geografia e Estatística  (IBGE), Population of Brazil . Viewed at: 
https://www.ibge.gov.br/apps/populacao/projecao/box_popclock.php . World Bank, Brazil . Viewed at:  
https://data.worldbank.org/country/BR . Investopedia, The Top 25 Economies in the World: Brazil . Viewed at: 
https://www.investopedia.com/insights/w orlds-top-economies/#toc -12-brazil ; and Countryeconomy.com, 
Brazil GDP . Viewed at: 
https://coun tryeconomy.com/gdp/brazil?year=2017#:~:text=The%20GDP%20figure%20in%202017,196%20
countries%20that%20we%20publish . 
2 Observatory of Economic Complexity (OEC) , Brazil . Viewed at: 
https://oec.world/en/profile/country/bra#:~:text=Overview%20In%202019%20Brazil%20was,Economic%20C
omplexity%20Index %20(ECI) . 
3 In 2016, SMEs account ed for 62% of total employment and 50% of national value added, slightly 
below the corresponding OECD averages (70% and 55% , respectively ). OECD (2020), SME and 
Entrepreneurship Policy in Brazil  2020, OECD Studies on SMEs a nd Entrepreneurship , 27 April. Viewed at: 
https://www.oecd -ilibrary.org/docserver/cc5feb81 -
en.pdf? expires=1646068181&id=id&accname=ocid195767&checksum=1DEB23D093C6B39C7D91E43AC4B550
99. 
4 OECD (2020), OECD Review of the Corporate Governance of State -Owned Enterprises: Brazil . Viewed 
at: http://www.oecd.org/corporate/soe -review -brazil.htm . 
5 In 2018, Brazil  ranked 71st among 140 economies ( 80th out of 137 economies in 201 7) in the World 
Economic Forum ( WEF) Global Competitiveness Index. This improvement had been driven by , inter alia, a 
significant simplification of regulations to start and close a business, lower inflation , and a slightly better labour 
market efficiency  (Section  1.2.4. 4). In addition, the competitiveness performance of Brazil benefit ed from a 
relatively high innovation c apability level and from the size of its market. However, according to the WEF,  
further progress on macroeconomic stability should , inter alia , be accompanied by greater trade openness  
(Section  1.3.1) , especially in terms of applied tariffs and non -tariff barriers. WEF (2017) , The Global 
Competitiveness Report 2017 -2018. Viewed at: https://www3.weforum.org/docs/GCR2017 -
2018/05FullRepor t/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf ; and WEF (2019) , The Global 
Competitiveness Report 2019 . Viewed at: 
http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf . 
6 OECD (2021), Economic Policy Reforms 2021: Going for Growth:  Brazil . Viewed at: 
https://www.oecd.org/economy/growth/Brazil -country -note-going -for-growth -2021.pdf . 
7 OECD (2020), OECD Economic Surveys: Brazil 2020 , December. Viewed at: 
https://www.oecd.org/economy/surveys/Brazil -2020-OECD -economic -survey -overview.pdf ; and Business News 
Americas (BNamericas)  (2019), "'Brazil Cost' Hits 22% of GDP", 28  Novembe r. Viewed at: 
https://www.bnamericas.com/en/news/brazil -cost-hits-22-of-gdp. WT/TPR/S/ 432 • Brazil  
 
- 16 - 
 
  formal sector.8 During the review period, growth was irregular due to , inter alia , structural 
weaknesses as well as t he COVID -19 outbreak , which exposed Brazil to an unprecedented health, 
social , and economic challenge, leading to a contraction in 2020 that was followed by a rebound 
in 2021 as a result of timely and decisive economic policies reaction (Box 1.1, Section  1.2.1, 
and Table  1.1).9 During the review period and prior to the COVID -19 pandemic , income inequality 
and the poverty gap remained relatively stable and a policy challenge.10 
Table 1.1 Selected macroeconomic  indicators, 2017 -21 
  2017  2018  2019  2020  2021  
National accounts (% change, unless otherwise indicated)  
Real GDP (at 1995 prices)  1.3 1.8 1.2 -3.9 4.6 
 Consumption  1.4 2.0 1.9 -5.2 3.2 
 Private consumption  2.0 2.4 2.6 -5.4 3.6 
 Government consumption  -0.7 0.8 -0.5 -4.5 2.0 
 Gross fixed capital formation  -2.6 5.2 4.0 -0.5 17.2 
 Exports of goods and non -factor services  4.9 4.1 -2.6 -1.8 5.8 
 Imports of goods and non -factor services  6.7 7.7 1.3 -9.8 12.4 
 XGS/GDP (%) (at current market price)  12.5 14.6 14.1 16.8 20.1 
 MGS/GDP (%) (at current market price)  11.8 14.2 14.8 16.1 19.1 
(Urban) Unemployment rate (%)  12.9 12.4 12.1 13.5 13.5 
Productivity (% change)  
Labour  productivity  .. .. .. .. .. 
Total factor productivity  .. .. .. .. .. 
Inflation and interest rates (annual average)  
Inflation (CPI, % change)  3.4 3.7 3.7 3.2 8.3 
Selic rate (%)  10.1 6.5 5.9 2.8 4.5 
Long-term interest rate (TJLP) (%) 7.1 6.7 6.2 4.9 4.8 
Non-earmarked new credit to non-financial corporations (%)  25.2 20.7 18.7 13.8 16.2 
Earmarked new credit to non -financial corporations (%)  11.8 10.0 9.0 7.8 9.4 
Non-earmarked new credit to households (%)  62.9 52.3 50.6 41.7 41.3 
Earmarked new credit to households (%)  9.0 7.9 7.7 7.2 7.2 
Exchange rate  
BRL/USD (annual average)  3.191  3.654  3.944  5.155  5.394  
Nominal effective exchange rate (% change, appreciation +)  9.5 -9.6 0.0 -19.6 -5.1 
Real effective exchange rate (% change, appreciation +)  8.5 -10.4 -1.8 -20.6 -3.2 
Central government balance (% of GDP)  
Revenue, net  17.5 17.6 18.2 16.1 18.2 
 Tax revenue  6.9 7.1 7.2 6.8 8.1 
Expenditure  19.4 19.3 19.5 26.1 18.6 
Primary balance  -1.9 -1.7 -1.3 -10.0 -0.4 
 including methodological adjustments and statistical 
discrepancies  (as shown in fiscal table)  -1.8 -1.7 -1.2 -10.0 -0.4 
 
8 The sectors in which informality is most common are trade and other services such as repair shops 
and restaurants, which account , respectively , for 26% and 33% of the value added generated by the informal 
economy . OECD (2020), SME and Entrepreneurship Policy in Brazil 2020, OECD Studies on SMEs and 
Entrepreneurship , 27 April. Viewed at: https://www.oecd -ilibrary.org/docserver/cc5feb81 -
en.pdf?expires=1646068181&id=id&accname=ocid195767&checksu m=1DEB23D093C6B39C7D91E43AC4B550
99. 
9 OECD (2020), OECD Economic Surveys: Brazil 2020 , December. Viewed at: 
https://www.oecd.org/economy/surveys/Brazil -2020-OECD -economic -survey -overview.pdf ; and 
World  Bank (2021), The World Bank in Brazil , 14 October. Viewed at: 
https://www.worldbank.org/en/country/brazil/overview#1 . 
10 According to Wo rld Bank estimates , Brazil's Gini coefficient stood at 53.3 in 2017, 53.9 in 2018 , 
and 53.4 in 2019; according to OECD estimates, in 2017 this level was higher than the average for emerging 
markets (45.4) and advanced economies (30.4).  The Gini coefficient is based on the comparison of cumulative 
proportions of the population against cumulative proportions of income they receive, and it ranges between  0 
in the case of perfect equality and 1 in the case of perfect inequality. According  to the OECD, l arge inequalities 
are one factor affecting well -being and they have been on the rise after years of decline. The bottom 40% of 
income earners receive 10% of disposable income, wh ereas the top 10% get more than four times as much.  
Furthermore, a ccording to the same source, f emale workers earn 20% less than men, compared to 13% for 
the OECD average. Women are more likely to be in informal employment and poverty is four times the national 
average among informal workers . According to World Bank esti mates , the poverty gap (at USD  3.20 a day 
(2011 PPP) data stood at 3.7% in 2017 and 2018, and 3.8% in 2019. OECD (2020), OECD Review of the 
Corporate Governance of State -Owned Enterprises: Brazil . Viewed at: http://www.oecd.org/corporate/soe -
review -brazil.htm ; OECD (2020), OECD Economic Surveys: Brazil 2020 , December. Viewed at: 
https://www.oe cd.org/economy/surveys/Brazil -2020-OECD -economic -survey -overview.pdf . World Bank, Gini 
Index – Brazil . Viewed at: https://data.worldbank.org/indicator/SI.POV.GINI?locations=BR ; and World Bank, 
Poverty Gap at $3.20 a Day (2011 PPP) (%) – Brazil . Viewed at: 
https://data.worldbank.org/indicator/SI.POV.LMIC.GP?locations=BR . WT/TPR/S/ 432 • Brazil  
 
- 17 - 
 
    2017  2018  2019  2020  2021  
Overall balance  -7.0 -6.1 -5.4 -13.6 -5.1 
Gross general government debt  73.7 75.3 74.4 88.6 80.3 
Net public debt  51.4 52.8 54.7 62.5 57.2 
Net general government debt  53.2 54.7 57.3 66.6 61.8 
Saving and investment  
 Gross national savings  13.6 12.7 12.2 14.7 17.4 
 Private sector  19.2 17.2 15.7 .. .. 
 Public sector  -5.7 -4.5 -3.5 .. .. 
 Gross domestic investment  14.6 15.1 15.5 16.6 19.2 
 Private sector  13.0 13.4 13.9 .. .. 
 Public sector  1.7 1.7 1.6 .. .. 
Saving -investment gap  -1.0 -2.4 -3.3 -1.9 -1.8 
External sector  
Current account balance  -1.1 -2.7 -3.5 -1.7 -1.7 
Net merchandise trade  2.8 2.3 1.4 2.2 2.3 
 Merchandise exports  10.6 12.5 12.1 14.6 17.7 
 Merchandise imports  7.8 10.2 10.6 12.3 15.4 
Services balance  -1.9 -1.9 -1.9 -1.4 -1.1 
Capital account  0.02 0.02 0.02 0.29 0.01 
Financial accounta -0.8 -2.7 -3.4 -0.9 -2.1 
 Direct investment, neta -2.3 -4.0 -2.5 -2.8 -1.7 
Terms of trade (% change)  5.9 -0.8 0.2 0.9 .. 
Merchandise exportsb (% change)  18.3 9.9 -5.7 -6.7 34.8 
Merchandise importsb (% change)  15.0 22.1 1.6 -10.5 38.9 
Service exportsb (% change)  3.6 2.7 -3.1 -16.6 16.1 
Service importsb (% change)  14.0 -1.9 -2.3 -29.0 1.5 
Gross official reserves (USD billion, end -period)  374.0  374.7  356.9  355.6  362.2  
 in months of imports of goods and services  19.2 16.8 15.9 18.7 14.6 
Gross external debt (USD billion, end -period)  667.1  665.8  675.8  639.3  670.3  
 % of GDP  32.3 34.7 36.1 44.2 41.7 
.. Not available.  
a Net lending (+)/net borrowing ( -). 
b Growth rates are based on USD.  
Source:  Instituto Brasileiro de Geografia e Estatística (IBGE); Central Bank of Brazil (BCB) ; IMF eLibrary 
data; and data provided by the authorities.  
1.2.  Downside risks to Brazil's economic outlook include fiscal imbalance (high level of public debt), 
high unemployme nt rate, inflationary pressures , and rapid population ageing.11 Brazil's low public 
external indebtedness and its significant cushions, such as its currency reserves and strong foreign 
direct investment (FDI)  component of capital inflows (Sections 1.2.5 an d 1.3.2), against external 
financial risks remain in place; however, the authorities are cautious about the impact of the Ukraine 
war on the world economy and Brazil's growth (Section  1.2.1). According to the IMF, as of 2021, 
uncertainty around the outlook  was exceptionally high but risks to growth were viewed as being 
broadly balanced.12 
Box 1.1 Brazil's response to the COVID -19 challenge  
To protect the poor and the most vulnerable people who were disproportionally affected by the 
COVID -19 pandemic, Brazil put timely  in place a large, targeted , and time -bound fiscal package 
focused on health spending, social assistance, and support to firms  and workers. It included new 
spending measures estimated from 8% to 11.4% of GDP in 2020, for which the constitutionally 
mandated expenditure rule has been temporarily suspended (Section  2.1); this large fiscal 
 
11 According to OECD estimates based o n current policies, population ageing  would slow down the 
economy 's growth potential to around 1.5% per annum.  As of 2020, according to the OECD, COVID -19 was 
projected to drive up gross public debt by 20  percentage poin ts to 96.6% of GDP by the end of 2022.  
IDB (2019), IDB Group Strategy with Brazil 2019 -2022, June. Viewed  at: 
https://idbdocs.iadb.org/wsdocs/getdocument.aspx?docn um=EZSHARE -750030607 -12; OECD (2020), 
OECD  Economic Surveys: Brazil 2020 , December. Viewed at: https://www.oecd.org/economy/surveys/Brazil -
2020-OECD -economic -survey -overview.pdf ; IMF (2021), Brazil:  2021 Article  IV Consultation -Press Release; 
Staff Report; and Statement by the Executive Director for Brazil , Country Report No.  2021/217, 22  September. 
Viewed at: https://www.imf.org/en/Publications/CR/Issues/2021/09/22/Brazil -2021-Article -IV-Consultation -
Press-Release -Staff-Report -and-Statement -by-the-466076 . 
12 IMF (2021), Country Report No.  2021/217. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2021/09/22/Brazil -2021-Article -IV-Consultation -Press-
Release -Staff-Report -and-Statement -by-the-466076 . WT/TPR/S/ 432 • Brazil  
 
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  stimulus limited the annual economic growth contraction and helped to reduce the poverty level 
during 2020. Extraordinary financial assistance was provided by the Federal Government to 
federal states and municipalities, which are responsible for most health expenditures. Monetary 
and regulatory meas ures have provided additional credit extension to firms. The main measures 
included:  
1. Income support for low -income workers : a new temporary emergency benefit ( Auxílio 
Emergencial ) amounted to BRL  600 per month disbursed over five months, with a budget 
equivalent to nearly 4% of GDP in 2020. This benefit was paid to over 67  million  informal, 
self-employed , or unemployed workers (nearly two  thirds of Brazil's pre -pandemic workforce) 
earning up to half the minimum wage during April -August 2020; in t he remainder of the year 
2020, the transfers were restricted to approximately 45  million recipients, with a payment of 
BRL 300 per month. A new round of emergency benefits was approved in April  2021 with 
benefits paid until October 2021, when this emergenc y program me was discontinued; this 
program me reached 39.2  million  workers, and its transfer value ranged from BRL 150 to 
BRL 375 depending on the worker's family profile. The Bolsa Familia  Conditional Cash Transfer 
(CCT) program me has been expanded and rec eived resources to enrol 1.2  million  additional 
beneficiaries.  
2. Emergency Program for Employment and Income Sustentation (Programa Emergencial de 
Manutenção do Emprego e da Renda) : a short -time work scheme was implemented in 
April 2020; it was intended to last while the country was in a state of public health calamity 
(as declared by the Congress in March 2020). In April 2021 , the program me was revamped, 
and its duration was fixed for another 120 days. It allowed for reductions in working hours 
(70%, 50%, or 25%) or labour contract suspension, thus enabling firms to save expenses 
with wages and taxes, while workers were paid a benefit by the  Federal Government to 
compensate their earnings reduction. In 2020 , the program me encompassed 9.76  million 
workers and 1.46  million firms, whereas in 2021 it covered 2.59  million  workers and 
0.63 million firms. Although this program me was discontinued in July 2021, the job guarantee 
effects for the participating workers lasted until April 2022 . 
3. Business support : support for SMEs included a low -interest credit line to cover wages for 
employees earning up to two  times the minimum wage, with the credit risk borne by the 
Federal Government, a measure that expired on 31  October  2020, and a government fund to 
provide guarantee for SME loans that would potentially reach 3.2  million  firms. Guarantee 
funds for SMEs are still available at the National Bank for Econo mic and Social Development  
(BNDES), but the operations of the PEAC emergency program me (Programa emergencial de 
accesso ao credito ) ended on 31  December  2020; as of June 2022, a proposal to reopen this 
credit line by the end of 2023 was pending at the Nati onal Congress. Additional corporate 
credit lines were created by BNDES; a Pronampe (Credit Line of the National Program of 
Support for Micro and Small -Sized Enterprises) was transformed into a permanent program me 
for SMEs (Law  No. 14,161, 6  February 20 21), whereas the P redominantly Exporting 
Companies (PEC)  (Credit Incentive Program) ended on  31 December  2021, although there is 
a proposal in the National Congress to reopen this credit line by the end of 2022. Tax liabilities 
and other charges on firms with a particular focus on SMEs were postponed; this measure 
was ended in November 2021 (Resolution CGSN 158). Temporary exemptions from certain 
labour regulations, the possibility to advance annual leave , and other measures created 
further flexibility in worki ng hours for firms and remain in place (Medida Provisoria No . 1109, 
25 March  2022).  
4. Credit and liquidity measures : monetary policy support has reduced interest rates by a joint 
250 basis points (Section  1.2.3.1), combined with prudential and regulatory me asures that 
allowed additional credit extension of up to 18.5% of GDP until December 2020.  Liquidity 
support measures totalled USD  56 billion , and capital requirement reductions totalled 
USD 142 billion.  WT/TPR/S/ 432 • Brazil  
 
- 19 - 
 
  In 2021 the  Federal Government  was looking for ways to wind down the relief measures with such 
spending to be reduced to about a fifth of its 2020 level.  
Source:  OECD (2020), OECD Economic Surveys: Brazil 2020 , December. Viewed at: 
https://www.oecd.org/economy/surveys/Brazil -2020-OECD -economic -survey -overview.pdf ; 
IMF (2021), Country Report No.  2021/217. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2021/09/22/Brazil -2021-Article -IV-Consultation -
Press -Release -Staff-Report-and-Statement -by-the-466076 ; World Bank (2021), The World Bank in 
Brazil , 14 October. Viewed at: https://www.worldbank.org/en/country/brazil/overview#1 ; and EIU 
(2021), Countr y Commerce – Brazil , October. Viewed at: http://www.eiu.com/ . 
1.2  Recent Economic Developments  
1.2.1   Growth, income, and employment  
1.3.  During the review period, Brazil's annual GDP growth was relatively weak , rising 
at 1.8%  (2018) an d contracting to -3.9% (2020), less than in most advanced and emerging 
economies and the smallest contraction among the major Latin American economies, due to the 
COVID -19 outbreak lockdown measures, and it registered a strong rebound at a peak rate of 4.6 % 
in 2021 (Table  1.1). This was due  to, inter alia , the authorities' forceful policy response (Box 1.1), 
booming terms of trade, a pick -up in commodity prices, recovery in domestic and external demand, 
and robust private sector credit growth. The annual average GDP growth rate for the period 2017 -21 
stood at 1%, an increase compared to the average of -0.4% in 2012 -16.13 On the one hand, 
according to the World Bank and other analysts, the path to a full recovery in the medium  term 
remains steep due to structural and fiscal vulnerabilities, the impact of resu rgence of inflationary 
pressures (Section  1.2.3.2) , and the exceptional drought reducing hydroelectricity generation and 
damaging the agricultural sector.14 On the other hand, according to the IMF, an improving labour 
market and high levels of household sa vings would support consumption, depleted inventories would 
be rebuilt , and the upswing in commodity prices would support new investment.15 Under greater 
than usual uncertainty, especially given the rapidly changing scenario with the start of the war 
in Ukraine, in March 2022 the authorities estimated that GDP (at current prices) was to rise by  1% 
in 2022.16 
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 services (Table  1.2); at the same time, the employment 
shares of different activities remained relatively stable. Reportedly, labour productivity (Section  1.1) 
averaged 110.31 points in the period 1988 -22, reaching an all -time high of 252.77 points 
 
13 According to the IMF, the 2021 recovery  has been led by industry and agriculture , with t he authorities 
attribut ing it to their approach to shift from state -driven to private sector -led growth.  WTO do cument 
WT/TPR/S/358/Rev.1, 18  October  2017; OECD (2020), OECD Economic Surveys: Brazil 2020 , December. 
Viewed at: https://www.oecd.org/economy/surveys/Brazil -2020-OECD -economic -survey -overview.pdf ; 
IMF (2021), Country Report No.  2021/217. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2021/09/22/Brazil -2021-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-466076 ; and World Bank (2021), The World Bank in Brazil , 
14 October. Viewed at: https://www.worldbank.org/en/country/brazil/overview#1 . 
14 The authorities indicated that d espite existing fiscal vulnerabilities, the primary balance for 2021 was 
above market expectations and debt to GDP ratio was  below expected as well. Among the 50 largest 
economies, Brazil 's nominal balance was ranked second, behind Singapore (IMF data). Primary expenditure has 
been at historical lows in comparison to recent years and debt ceiling rules have shown to be effectiv e. 
Government payroll has been under control , having reached the lowest level in terms of percentage  of GDP, in 
25 years, with continuous decreases in personnel. Emergency measures during the worst stages of the 
pandemic ended as expected without unnecessa ry extensions. World Bank (2021), The World Bank in Brazil , 
14 October. Viewed at: https://www.worldbank.org/en/country/brazil/overview#1 ; and EIU (2021), Country 
Commerce – Brazil , October.  
15 IMF (2021), Country Report No.  2021/217. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2021/09/22/Brazil -2021-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-466076 . 
16 Central Bank of Brazil (2022), Relatório de Inflação Volume 24/Número 1 , March. Viewed at: 
https://static.poder360.com.br/2022/03/relatorio -trimestral -de-inflacao -bc-
24mar2022.pdf?_ga=2.181271779.5 59419776.1648557050 -1272835409.1638954301 . WT/TPR/S/ 432 • Brazil  
 
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  in January  2022.17 The 2016 Brasil Mais Produtivo  (Brazil More Productive) programme was 
well designed but largely focused on a few low -tech sectors (food, textile s, and furnit ure) and on 
the industrial heartland of the country ; it was replaced by Brasil Mais , with a broader scope in  2020. 
Brasil Mais  aims to improv e the managerial and digital capabilities of Brazilian companies, promoting 
rapid improvements at low cost for entr epreneurs and guaranteeing consistent results in increasing 
productivity and competitiveness ; the programme  is available to MSMEs in the industry, commerce , 
and services sectors.18 Brazil's limited participation in global value chains (GVCs) seems 
characte rized 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%).20 
Table 1.2 Basic economic and em ployment indicators, 2017 -21 
 2017  2018  2019  2020  2021  
Real GDP at market prices (BRL billion, 1995 prices)  1,168.8  1,189.6  1,204.2  1,157.5  1,210.9  
Real GDP at market prices (USD billion, 1995 prices)  366.2  325.6  305.3  224.5  224.5  
Current GDP at market prices (BRL billion)  6,585.5  7,004.1  7,389.1  7,467.6  8,679.5  
Current GDP at market prices (USD billion)  2,063.5  1,916.9  1,873.3  1,448.6  1,608.9  
GDP per capita at current market prices (USD)  9,978.1  9,194.2  8,914.2  6,840.7  7,542.1  
GDP by economic activity at constant 1995 prices (%)  
Agriculture  14.2 1.3 0.4 3.8 -0.2 
Mining and quarrying  4.9 0.4 -9.1 1.3 3.0 
Transformation/manufacturing  2.3 1.4 -0.4 -4.4 4.5 
Electricity, gas, water, sewage and urban cleaning  0.9 3.7 2.6 -0.3 -0.1 
Construction  -9.2 -3.0 1.9 -6.3 9.7 
Services  0.8 2.1 1.5 -4.3 4.7 
Trade  2.3 2.6 1.6 -3.1 5.5 
Transport, storage and courier services  1.0 2.1 0.1 -8.4 11.4 
Information and communication  1.4 1.8 4.5 0.8 12.3 
Financial intermediation and insurance  -1.1 1.0 1.1 4.5 0.7 
Real estate  1.3 3.3 2.4 2.6 2.2 
Public administration, education and public health  0.1 0.1 -0.4 -4.5 1.5 
Other services  0.7 3.5 2.8 -12.3 7.6 
Value added by economic activity at current prices (%)  
Agriculture  5.3 5.2 4.9 6.8 8.1 
Mining and quarrying  1.6 2.7 2.9 3.0 5.5 
Transformation/manufacturing  12.4 12.3 12.0 11.2 11.3 
Electricity, gas, water, sewage and urban cleaning  2.8 2.9 3.0 2.9 2.7 
Construction  4.3 4.0 3.9 3.4 2.6 
Services  73.5 73.0 73.3 72.7 69.8 
 
17 No official data on productivity  were available with the authorities. Viewed at: 
https://tradingeconomics.com/brazil/productivity . 
18 WTO document WT/TPR/S/358/Rev.1, 18  October  2017; Decree No.  10,246 of 18  February  2020. 
Viewed at: http://www.planalto.gov.br/ccivil_03/_Ato2019 -2022/2020/Decreto/D10 246.htm#art16 ; and 
OECD  (2020), SME and Entrepreneurship Policy in Brazil 2020, OECD Studies on SMEs and Entrepreneurship , 
27 April. Viewed at: https://www.oecd -ilibrary.org/docserver/cc5feb81 -
en.pdf?expires=1646068181&id=id&accname=ocid195767& checksum=1DEB23D093C6B39C7D91E43AC4B550
99. 
19 WTO document WT/TPR/S/358/Rev.1, 18  October  2017; Callegari, J., Massaroli Melo , T., and 
Carvalho , C.E.  (2018), "The Peculiar Insertion of Brazil into Global Value Chains ", Review of Development 
Economics  (2018) , Vol. 22, Issue 3 ; WTO, Trade in Value -Added and Global Value Chains: Statistical Profiles . 
Viewed at: https://www.wto.org/english/res_e/statis_e/miwi_e/countryprofile s_e.htm . 
20 The GVC participation rate indicates the share of a country's exports that is part of a multi -stage 
trade process. UNCTAD (2018), World Investment Report 2018 – Investment and New Industrial Policies . 
Viewed at: https://unctad.org/en/PublicationsLibrary/wir2018_en.pdf . WT/TPR/S/ 432 • Brazil  
 
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   2017  2018  2019  2020  2021  
Trade  13.2 13.0 12.9 13.6 15.3 
Transport, storage and courier services  4.3 4.4 4.5 4.3 3.8 
Information and communication  3.4 3.4 3.4 3.5 3.4 
Financial intermediation and insurance  7.6 7.0 7.2 7.1 6.1 
Real estate  9.8 9.8 9.7 10.2 9.5 
Public administration, education and public health  17.6 17.4 17.4 17.9 16.5 
Other services  17.6 17.9 18.1 16.1 15.2 
Structure of national employment (% of occupied population)  
Agriculture  9.3 9.2 9.0 9.5 9.7 
Industry  13.1 13.0 13.0 13.1 13.0 
Construction  7.7 7.4 7.3 7.0 7.6 
Services  69.8 70.4 70.7 70.4 69.7 
Wholesale trade  19.5 19.3 19.2 18.9 19.0 
Accommodation and food supply  5.7 5.8 5.9 5.0 5.1 
Transport, storage and courier services  5.1 5.1 5.2 5.2 5.2 
Real estate  0.6 0.6 0.6 0.6 0.6 
Financial intermediation and insurance  1.4 1.4 1.4 1.5 1.5 
Information and communication  1.4 1.4 1.4 1.6 1.7 
Public administration, education and public health  5.5 5.4 5.3 5.8 5.4 
Education, health and social services  11.3 11.7 11.8 12.7 12.3 
Domestic services  6.7 6.6 6.5 5.6 5.7 
Other collective, social, and personal services  3.9 4.2 4.3 4.1 4.1 
Other activities  8.8 8.9 9.1 9.2 9.1 
Source:  IBGE; and data provided by the authorities.  
1.5.  Following years of sluggish growth and despite recovery signs, unemployment remains 
relatively high and much above its levels of the previous Review.21 During the review period, 
Brazil's  unemployment rose slightly to the historically high rate of 13.5% in 2020 
and 2021 (Table  1.1) inter alia due to the pandemic. The authorities indicate that overall 
unemployment, including informal jobs, stood at 11.2% at the quarter finishing in January 2022, 
the lowest figure since  2016.22 According to the IMF , the labour market is lagging the recovery 
in output.23 
1.2.2   Prices  
1.6.  Between 2017 and 2020 , the headline and core inflation have been under the upper limit of 
the tolerance range established by the Central Bank of Brazil (BCB) (Table  1.1).24 Since 
January  2021, in flation exceeded the upper limit of the tolerance band of the inflation target. 
According to  the BCB, the main drivers for this move were: (i) the strong rise in prices of tradable 
goods in local currency, especially commodity prices; (ii) water scarcity e lectricity tariff flag; and  
(iii) imbalances between demand and supply of inputs and bottlenecks in global production chains.25 
 
21 WTO document WT/TPR/S/358/Rev.1, 18  October  2017; and OECD (2020), OECD Review of the 
Corporate Governance of State -Owned Enterprises: Brazil . Viewed at: http://www.oecd.org/corporate/soe -
review -brazil.htm . 
22 IBGE. Viewed at: 
https://ftp.ibge.gov.br/Trabalho_e_Rendimento/Pesquisa_Nacional_por_Amostra_de_Domicilios_continua/Men
sal/Quadro_Sintetico/2022/pnadc_202202_quadroSintetico.pdf . 
23 IMF (2021) Country Report No.  2021/217. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2021/09/22/Brazil -2021-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-466076 . 
24 The Brazilian Report  (2022), "Inflation in Brazil Continues its Relentless Surge", 11  March . Viewed at: 
https://brazilian.report/liveblog/politics -insider/2022/03/11/inflation -in-brazil -continues -its-relentless -surge/ ; 
and BCB, Inflation Targeting Track Record . Viewed at:  
https://www.bcb.gov.br/en/monetarypolicy/historicalpath . 
25 Since 2015 , the energy bill flags system  has been a way to balance the costs of elec tricity production. 
The flags indicate whether conditions are favourable for energy generation (green flag) or whether there are 
additional costs (yellow flag and red flags level s 1 and 2) . Viewed at:  BCB, Open Letter Explaining Inflation 
above the Upper L imit of the Target Tolerance Band in 2021, dated 11  January  2022. Viewed at:  
https://www.bcb.gov.br/content/monetarypolicy/openletters/OPEN_LETTER_2022.pdf ; and Singh,  Y. (2021), WT/TPR/S/ 432 • Brazil  
 
- 22 - 
 
  The a nnual inflation rate edged higher to 10.54% in February 2022 and 12.13% in April 2022 
(a 2003 high) inter alia  due to highe r education costs, massive surges in commodity prices related 
to the Ukraine war, and Petrobras announcing its biggest fuel price hikes since 2016, after easing 
to 11.73% in May 2022.26 According to the authorities, the inflation of services and of industrial 
goods remain s high, and the recent shocks continue to cause a strong increase in food and 
fuel-related components. A June 2022 Inflation Report indicated inflation projections stand  at 8.8% 
for 2022, 4% for 2023, and 2.7% for 2024.  
1.2.3   Main macroeconomic policy developments  
1.2.3.1   Monetary and exchange rate policy  
1.7.  The BCB remains in charge of monetary and exchange rate policy, and as from February  2021 
it became de jure  autonomous.27 Keeping in flation around the target remains a fundamental 
objective of the BCB , and its main monetary policy tool is the target for the Selic interest rate, set 
by the Monetary Policy Committee (Copom) , which meets eight times a  year and pursues a 
data-dependent str ategy to bring inflation to the target.28 The BCB performs daily open market 
operations to keep the effective Selic rate at the target set by Copom. Below -target inflation has 
opened up space for significant monetary easing.29 Between 2017 and 2022, the Se lic rate was 
reduced progressively from a peak of 14.25% (set in August 2015) to a historical low of  2% 
(23 July 2020-10 March  2021) and then raised gradually to 11.75% (29  March  2022) in a tightening 
to address rising inflation driven by a surge in commod ity prices and a weaker currency compared 
with pre -crisis levels, and keep inflation expectations well  anchored in the current setting 
(Section  1.2.2).30 In 2021, the BCB was confident that the current tightening cycle would lead 
inflation back close to ta rget by end -2022.  
1.8.  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 in fluence 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 (cum ulative) 69% (Table  1.1); in trade -weighted terms, overall, the effective exchange 
 
"Aneel Creates a Water Scarcity Tariff Flag, and the Electricity Bill Will Become even more Expensive", Play 
Crazy Game , 1 September . https://playcrazygame.com/2021/09/01/aneel -creates -a-water -scarcity -tariff-flag-
and-the-electricity -bill-will-become -even-more-expensive/ . 
26 Trading Economics, Brazil Inflation Rate . Viewed at: https://tradingeconomics.com/brazil/inflation -cpi. 
27 According to the IMF, t he approval of de jure  independence of the BCB, and the confirmation of its 
standing by the Supreme Court, w ould enhance further its credibility and the transmission of monetary policy. 
Complementary Law No.  179 of 24 February  2021 reaffirmed price stability as the core mandate o f the 
institution, which w ould also tend to financial stability and smoothing the business cycle to help foster 
economic well -being. The Law introduce d fixed, four -year mandates for BCB governors (that are staggered 
relative to the presidential term), and requires Senate approval for their dismissal.  IMF (2021), Brazil: 2021 
Article  IV Consultation -Press Release; Staff Report; and Statement by the Executive Director for Brazil , Country 
Report No.  2021/217, 22  September. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2021/09/22/Brazil -2021-Article -IV-Consultation -Press-
Release -Staff-Report -and-Statement -by-the-466076 . 
28 BCB, Monetary Policy . Viewed at: https://www.bcb.gov.br/en/monetarypolicy ; and Selic Interest 
Rate. Viewed at: https://www.bcb.gov.br/en/monetarypolicy/selicrate . 
29 OECD (2020), OECD Economic Surveys: Brazil 2020 , December. Viewed at: 
https://www.oecd.org/economy/surveys/Brazil -2020-OECD -economic -survey -overview.pdf . 
30 BRB, Selic Interest Rate . Viewed at: https://www.bcb.gov.br/en/monetarypolicy/selicrate ; and 
IMF (2021), Brazil: 2021 Article  IV Consultation -Press Release; Staff Report; and Statement by the Executive 
Director for Brazil , Country Report No.  2021/217, 22  September. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2021/09/22/Brazil -2021-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-466076 . 
31 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 a n OECD 
member  (Section  2.2.3.1) . Presidential Decree 10 ,997/2022 , 16 March  2022. Viewed at: 
https://www.ey.com/en_gl/tax -alerts/brazil -reduces -financial -transaction -tax-on-foreign -exchange -
settlements ; IMF (2021), Brazil: 2021 Article  IV Consultation -Press Release; Staff Report; and Statement by 
the Executive Director for Brazil , Country Report No.  2021/217, 22  September. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2021/09/22/Brazil -2021-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-466076 . WT/TPR/S/ 432 • Brazil  
 
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  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 pa ndemic, 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 th e pandemic and to Ukraine war-related uncertaint y. 
1.2.3.2   Fiscal policy  
1.9.  During the review period , Brazil's fiscal deficit declined gradually except for 2020 when it 
reached a peak of 13.6% of GDP, the largest fiscal deficit on record, due to COVID -19-related 
unprecedented fiscal support through an emergency package of fiscal and quasi -fiscal 
measures  (Table  1.1 and Box 1.1).33 After peaking at 88.6% of GDP in 2020, gross government debt 
dropped to 80.3% of GDP in 2021, and according to the IMF it should remain around that level over 
the medium  term. A 2019 pension reform, a major milestone that has bee n on the agenda for many 
years, raised effective retirement ages and made pensions more progressive; it was key for fiscal 
sustainability as pension spending would have otherwise doubled by 2060. According to the  OECD, 
although significant progress has bee n made in containing financial subsidies used for directed credit 
operations, improving fiscal outcomes remains one of Brazil's principal challenges.34 
1.2.4   Structural policies  
1.10.    Trade and domestic reform are considered as intrinsically linked. According to the OECD, only 
productivity -boosting structural reforms would allow reali zing Brazil's potential and improving 
well-being and living standards (Sections 1.1 and 1.2.1).35 During the review period , an ambitious 
supply -side reform agenda aimed at boosting produc tivity, potential growth, and living standards 
was launched.36 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 institu tional 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 growth (Box 1.1 and Sec tion 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 reforms; as of June 202 2, 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 According 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). A ccording 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 point s 
over 15 years.38 
 
32 OECD (2020), OECD Economic Surveys: Brazil 2020 , December. Viewed at: 
https://www.oecd.org/economy/surveys/Brazil -2020-OECD -economic -survey -overview.pdf . 
33 IMF (2021), Country Report No.  2021/217. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2021/09/22/Brazil -2021-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-466076 . 
34 OECD (2020), OECD Economic Surveys: Brazil 2020 , December. Viewed at: 
https://www.oecd.org/economy/surveys/Brazil -2020-OECD -economic -survey -overview.pdf . 
35 OECD (2020), OECD Economic Surveys: Brazil 2020 , December. Viewed at: 
https://www.oecd.org/economy/surveys/Brazil -2020-OECD -economic -survey -overview.pdf . 
36 IMF (2021), Country Report No.  2021/217. Viewed at: 
https://www.imf.org/en/Publications/CR/ Issues/2021/09/22/Brazil -2021-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-466076 . 
37 OECD, Brazil . Viewed at: https://www.oecd.org/ economy/growth/Brazil -country -note-going -for-
growth -2021.pdf ; and The Legal 500 (2021), The Main Aspects of the Brazilian Income Tax Reform Proposal . 
Viewed at: https://www.legal500.com/developments/thought -leadership/the -main-aspects -of-the-brazilian -
income -tax-reform -
proposal/#:~:text=The %20Corporate%20Income%20Tax%20(IRPJ,would%20be%20reduced%20to%2026%2
5. 
38 OECD (2020), OECD Economic Surveys: Brazil 2020 , December. Viewed at: 
https://www.oecd.org/economy/surveys/Brazil -2020-OECD -economic -survey -overview.pdf . WT/TPR/S/ 432 • Brazil  
 
- 24 - 
 
  1.2.4.1   Tax reform  
1.11.   According to the OECD, Brazil's fragmented tax system , in which 27 states plus the Federal 
Government apply their own tax codes, gives rise to one of the world's highest tax compliance costs , 
hurting the competitiveness of Brazilian companies, and a wide array of exemptions and special 
regimes , reducing fairness and the redistribution effect of taxes.39 Although tax reform remains a 
priority for the administration, during the review period no changes were completed in this area.40 
A 2021 tax reform proposal inter alia  intends to: (i) unify the PIS ( Program de Integracao Social ) 
and COFINS ( Contribuição para Financiamento da Seguridade Social ) taxes into a federal VAT (CBS) 
at a non -cumulative 1 2%; (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) eliminate interest payments 
on net equity deductions from the IRPJ; (v) tax accrued capital gains in closed -end investment 
funds; and (vi) increase the personal income tax (PIT) exemption threshold by 31%.41 By June  2022, 
discussions were ongoing in Congress. In addition, initiatives by the Congress itself include 
PEC 110/2019, a proposed constitutional amendme nt aimed at a comprehensive tax reform of 
consumption taxes.  
1.2.4.2   Privatization  
1.12.    State involvement in the economy remains significant (Sections 1.1 and 3.3.5) with the 
Federal Government currently controlling 133 SOES (47 directly  owned, 86 indirectly  owned), b ut 
since 2019, the privatization of state -owned assets has been a key area of the agenda to liberalize 
the economy, attract new investors , and promote competition in the domestic market.42 According 
to the authorities, from 2017 to 2022, two directly owned  companies (Codesa and Eletrobras) were 
privatized, two were liquidated (Codomar and Casemg) , and one (Ceitec) is under liquidation.43 
Moreover, in the same period, divestments (i.e. selling subsidiary assets, investments, or divisions 
of a company) largel y targeted the energy sector and included 98 directly and indirectly  owned 
SOEs, inter alia  involving: (i) BR Distribuidora, the largest distributor and trader of petroleum 
derivatives and biofuels (ethanol) in Brazil and Latin America; (ii) Transportadora  Associada de 
Gás S.A. (TAG), the largest natural gas transportation company in Brazil; (iii) Liquigás 
Distribuidora  S.A. (Liquigás), a former subsidiary of the government -controlled Petrobras in bottling, 
distribution , and marketing of the liquefied petroleum gas sector; (iv) Amazonas Energia; and 
(v) Companhia Energética de Alagoas (CEAL). As of June 2022, the National Program of Divestment 
of National Public Assets ( Programa Nacional de Desestatização  (PND)) included 13 directly owned 
state companies in food storage or distribution, IT, machinery, energy, semiconductors, insurance, 
urban transportation , and ports.  As of end -September  2021, the Investment Partnership Project 
(Projeto de Parcerias de Investimento  (PPI)) listed 72 completed pr ojects, 3 mothballed projects, 
and 164 projects in progress , ranging from ports to energy to tourism; as of June 2022 , 14 SOEs 
were qualified in PPI for privatization purposes.44 
 
39 OECD (2020), OECD Economic Surveys: Brazil 2020 , December. Viewed at: 
https://www.oecd.org/economy/surveys/Brazil -2020-OECD -economic -survey -overview.pdf . 
40 EIU (2021), Country Commerce – Brazil , October.  Viewed at: http://www.eiu.com/ . 
41 IMF (2021), Country Report No.  2021/217. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2021/09/22/Brazil -2021-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-466076 ; OECD, Brazil . Viewed at: 
https://www.oecd.org/economy/growth/Brazil -country -note-going -for-growth -2021.pdf ; and BDO (2021), 
Brazil , Corporate Tax News Issue 60, November. Viewed at: https://www.bdo.global/en -gb/microsites/tax -
newsletters/corporate -tax-news/issue -60-november -2021/brazil -tax-reform -stalls. 
42 Panorama das Estatais, Brazil . Viewed at: 
http://www.panoramadasesta tais.planejamento.gov.br/QvAJAXZfc/opendoc.htm?document=paineldopanorama
dasestatais.qvw&lang=en -US&host=QVS%40srvbsaiasprd07&anonymous=true ; Ministry of Economy, Bulletin 
of Federal State Enterprises . Viewed at: https://www.gov.br/economia/pt -br/centrais -de-
conteudo/publicacoes/boletins/boletim -das-empresas -estatais -federais ; and Brazil Services and Information, 
Brazil Privatiza tion Projects . Viewed at: https://www.gov.br/en/government -of-brazil/lat est-news/2021/brazil -
privatization -
projects#:~:text=In%20less%20than%20three%20years,one%20we%20are%20currently%20in . 
43 The March 2022 privatization of Codesa is considered a pilot case for other public ports, especially 
Santos Port Authority, the biggest in Latin America. In June 2022, the privatization of Eletrobras (the largest 
electric energy generation company) was completed in a public offering of shares that raised approximately 
BRL 97 billion (USD  19.5 billion ). As of June 2022, Correios' (the most relevant postal service supplier) 
privatization process is in process . 
44 EIU (2021), Country Commerce – Brazil , October. Viewed at: http://www.eiu.com/ . WT/TPR/S/ 432 • Brazil  
 
- 25 - 
 
  1.2.4.3   Competition policy and corporate governance  
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 
moderni zed. Its l eniency programme has been systematic and 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 Progres s 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 inves tigations involving digital platforms and media , 
as well as of cartel s, were undertaken.  
1.14.   Good corporate governance contributes to sustainable economic development by enhancing 
the performance of companies and increasing their access to outside capital.46 During the review 
period, no changes were brought to the regulatory framework in this area. Since 2017, the Securities 
and Exchange Commission (CVM) has obliged listed companies to report – based on a 
comply -or-explain approach – as per the adoption of the good practices set forth in the Brazilian 
Code of Corporate Governance.47 
1.2.4.4   Labour market policies  
1.15.   During the review period , the labour market was liberalized under Law No  13,467/2017 , which 
made more than 100 changes to standing rules, applying to both exis ting and new work contracts.48 
These changes , inter alia , strengthened incentives for formal hiring, rationalized and made fairer the 
terms for legal action in labour disputes, and regulated remote work; at the same time, core worker 
rights have been preserved and cannot be subject to contractual arrangements.49 Changes included: 
(i) collective -bargaining agreements superseding existing laws for certain issues; (ii) work 
conditions becoming more flexible; (iii) enabling companies to outsource any job, not just support 
activities; (iv) allowing new types of work contracts (e.g. intermittent work, remote work (home 
office) , and exclusive independent contractor); (v) lowering the salary cut -off for receiving 
government -subsidi zed legal costs; (vi) increasi ng flexibility in the "bank -of-hours" system; and 
(vii) liberalizing contract termination by adding the option of "common accord". During the 
pandemic, a temporary program me (Emergency Program for Employment and Income 
Sustentation  (Box 1.1)) was establish ed to reduce the impact of non -pharmaceutical measures 
(lockdowns and alike restrictions) on the labour market, allowing companies to furlough employees 
and reduce the hit to formal sector jobs. Furthermore, the 2019  pension reforms (Section  1.2.3.2) 
chang ed retirement ages and minimum contribution times for workers in the private and public 
sectors; for women in the private sector, the minimum age and contribution period are now 62 and 
15 years, respectively, while for men they are 65 and 20  years.50 
1.16.   Durin g the review period , the minimum monthly wage was increased several times, rising 
gradually from BRL 937 in 2017 to BRL 1,212 as of January 2022. Up until 2019, the pay floor rose 
according to past inflation (as defined in the Constitution) plus the real G DP growth rate of two  years 
earlier; since the expiry of the 2011 law setting this methodology in 2019, the administration has 
set the minimum wage according to past inflation only.51 In a company employing more than 
three  people, two  thirds of all employe es must be Brazilian nationals receiving two  thirds of the 
total payroll.52 
 
45 Competition Policy Intern ational, Brazilian Competition Policy in 2021: Year in Review . Viewed at: 
https://www.competitionpolicyinternational.com/brazilian -competiti on-policy -in-2021-year-in-review/ . 
46 World Bank Group, World Bank Group A to Z 2016: Corporate Governance . Viewed at: 
http://elibrary.worldbank.org/doi/fu ll/10.1596/978 -1-4648-0484-7_corporate_governance . 
47 OECD (2020), OECD Review of the Corporate Governance of State -Owned Enterprises: Brazil . Viewed 
at: http://www.oecd.org/corporate/soe -review -brazil.htm . 
48 EIU (2021), Country Commerce – Brazil , October. Viewed at: http://www.eiu.com/ . 
49 OECD (2020), OECD Economic Surveys: Brazil 2020 , December. Viewed at: 
https://www.oecd.org/economy/surveys/Brazil -2020-OECD -economic -survey -overview.pdf . 
50 EIU (2021), Country Commerce – Brazil , October. Viewed at: http://www.eiu.com/ . 
51 EIU (2021), Country Commerce – Brazil , October. Viewed at: http://www.eiu.com/ . 
52 EIU (2021), Country Commerce – Brazil , October. Viewed at: http://www.eiu.com/ . WT/TPR/S/ 432 • Brazil  
 
- 26 - 
 
  1.17.   Labour informality remains a key policy challenge as labour tax wedges for formal sector 
workers remain high (Section  1.1); the OECD estimates it has risen to above 40%  in 2018.53 Poverty 
is four times the national average among informal workers and women are more likely to be in 
informal employment. Female workers earn 20% less than men, compared to 13% for the 
OECD  average.  
1.2.5   Balance of payments  
1.18.   During the review period , Brazil's c urrent account remained in deficit peaking to 3.5%  of GDP 
in 2019 and then shrinking to 1.7% in 2020 and 2021 (Tables 1.1 and 1.3); according to the IMF , 
in 2020 it was due to improvements in the trade, services , and income balances, supported, 
respectivel y, by the currency depreciation, the contraction in tourism and transport service imports , 
and lower distribution of profits and dividends.54 The 2021 outcome was the partly due to trade 
balance improvements resulting from high commodity prices, a record soybean harvest , and 
recovery in economic activity in trading partners that boosted exports, more than offsetting the 
rebound in imports.  
Table 1.3 Balance of payments, 2017 -21 
(USD million)  
  2017  2018  2019  2020  2021  
Current account  -22,033  -51,457  -65,030  -24,492  -27,925  
Goods and services balance  19,001  7,382  -8,942  11,428  19,252  
Balance on goods (f.o.b.)  57,325  43,373  26,547  32,370  36,363  
 Exports  218,000  239,520  225,800  210,707  284,012  
 Imports  160,675  196,147  199,253  178,337  247,648  
Services and primary income (net)  -81,494  -94,815  -92,761  -59,205  -67,584  
Services balance  -38,324  -35,991  -35,489  -20,941  -17,112  
 Credit  34,458  35,383  34,275  28,576  33,164  
 Debit 72,782  71,374  69,765  49,517  50,275  
Primary income balance  -43,170  -58,824  -57,272  -38,264  -50,471  
 Credit  23,230  13,223  25,129  20,098  29,791  
 Debit 66,400  72,047  82,400  58,362  80,262  
Secondary income balance  2,135  -15 1,184  2,344  3,294  
Capital account  379 440 369 4,141  225 
Balance on current and capital account  -21,654  -51,017  -64,661  -20,351  -27,885  
Financial account (net lending (+)/net 
borrowing  (-)) -17,075  -52,339  -64,357  -12,473  -33,706  
Direct investment  -47,545  -76,138  -46,355  -41,254  -27,285  
 Net acquisition of financial assets  21,341  2,025  22,820  -3,467  19,157  
 Equity capital  21,227  -2,267  20,790  -4,798  19,338  
 Debt instruments  114 4,291  2,030  1,330  -182 
 Net incurrences of liabilities  68,885  78,163  69,174  37,786  46,441  
 Equity capital  63,999  57,322  63,631  33,577  46,470  
 Debt instruments  4,886  20,840  5,543  4,209  -29 
Portfolio investments  17,724  6,861  19,216  12,882  -5,694  
 Net acquisition of financial assets  12,371  458 8,995  11,002  15,164  
 Equity and investment fund shares  10,002  1,990  7,771  11,498  14,489  
 Debt securities  2,368  -1,532  1,224  -496 675 
 Net incurrence of liabilities  -5,353  -6,403  -10,221  -1,880  20,858  
 Equity and investment fund shares  5,674  -3,062  -1,810  -5,206  5,069  
 Debt securities  -11,027  -3,341  -8,411  3,326  15,789  
 
53 OECD (2020), OECD Economic Surveys: Brazil 2020 , December. Viewed at: 
https://www.oecd.org/economy/surveys/Brazil -2020-OECD -economic -survey -overview.pdf . 
54 IMF (2021), Country Report No.  2021/217. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2021/09/22/Brazil -2021-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-466076 . WT/TPR/S/ 432 • Brazil  
 
- 27 - 
 
    2017  2018  2019  2020  2021  
Financial derivatives  705 2,753  1,673  5,397  -960 
 Net acquisition of financial assets  -8,153  -12,079  -27,952  -23,018  -17,024  
 Net incurrence of liabilities  -8,858  -14,832  -29,625  -28,414  -16,064  
Other investments  6,948  11,257  -12,836  24,734  -13,734  
 Net acquisition of financial assets  -2,261  9,582  -2,562  3,908  24,527  
 Net incurrence of liabilities  -9,209  -1,676  10,275  -20,826  38,261  
Reserve assets  5,093  2,928  -26,055  -14,232  13,967  
Errors and omissions  4,579  -1,322  304 7,878  -6,006  
Source:  BCB. 
1.19.   According to the BCB, Brazil's overall gross external debt (including intercompany lending and 
debt securities traded in the domestic market) grew slightly by an overall 0.5% during the 
period  2017-21; it peaked at USD 675.8  billion  in 2019 and dropped to USD 670.3  billion (11.7% 
short-term) or 41.7% of GDP in 2021 (Table  1.1). According to the IMF, external debt is assessed 
to be sustainable over the medium term, but subject to risks as the debt path remains sensitive to 
real exchange rate shocks.55 
1.20.   Betwee n 2017 and 2021, Brazil's foreign exchange reserves dropped by an 
overall  3.1%  (Table  1.1); in 2021 they were equivalent to 22.5% of GDP, 14.6 months of imports 
of goods and services, and 54% of Brazil's overall gross external debt. As of 15  July 2022, the y had 
declined to USD  340.9  billion.56 According to the IMF, in 2021 reserves remained adequate and 
the 2020 external position was broadly in line with the level implied by medium -term fundamentals 
and desirable policies.57 
1.3  Developments in Trade and Invest ment  
1.3.1   Trends and patterns in merchandise and services trade  
1.21.   The openness of the Brazilian economy to international trade and its integration into the world 
economy continued to be reflected by the ratio of the country's trade (exports plus imports) in goods  
and services to GDP; this ratio rose significantly from 24.3% in 2017 to 39.2% in 2021 (Table  1.1), 
partly due to a rise in both exports and imports in 2020 and 2021. According to the OECD, Brazil is 
significantly less integrated into international trade than other emerging market economies and has 
forgone many of the benefits that these markets have reaped from international trade and 
investment.58 According to the same source, stronger integration into the global economy has 
significant potential to raise productivity, real wages , and well -being.  
1.22.   Since the previous Review, Brazil's merchandise exports have become increasingly dependent 
on commoditi es, whereas merchandise imports on manufactures (Chart  1.1, and Tables  A1.1 
and A1.2). As of 2021, the share of vegetable products and petroleum and mineral products in total 
exports had risen, whereas the share of all other product categories had dropped.  Minor changes 
were registered in imports where dependence on machinery, electrical equipment , and 
chemicals  persisted.  
 
55 IMF (2021), Country Report No.  2021/217. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2021/09/22/Brazil -2021-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-466076 . 
56 BCB, Selected Economic Indicators . Viewed at: 
https://www.bcb.gov.br/en/statistics/selectedindicators ; and BCB, External Sector Stat istics. Viewed at: 
https://www.bcb.gov.br/en/statistics/externalsectorstatistics . 
57 IMF (2021), Country Report No.  2021/217. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2021/09/22/Brazil -2021-Article -IV-Consultation -Press-
Release -Staff-Report -and-Statement -by-the-466076 . 
58 OECD (2020), OECD Economic Surveys: Brazil 2020 , December. Viewed at: 
https://www.oecd.org/economy/s urveys/Brazil -2020-OECD -economic -survey -overview.pdf . WT/TPR/S/ 432 • Brazil  
 
- 28 - 
 
  Chart 1.1 Product composition of merchandise trade by main HS section, 2017 and 2021  
 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
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). In 2021 China, the E uropean  Union, 
and the  United  States were Brazil's main individual export markets and main s ources of imports 
although in a different order (i.e. China, the United  States , and the European  Union). The relative 
weight of trade with other  Southern Common Market (MERCOSUR ) partners overall declined 
considerably, notably on the exports side.  
Chart 1.[BRA]  Product composition of merchandise trade by main HS sections, 2017 and 2021
2017 2021
Total:   USD 215.0 billion Total:  USD 280.8 billion  
Base metals & 
articles thereof
5.6%Petroleum & 
mineral products 
31.3%
Base metals &
articles thereof
7.3% 
Total:   USD 165.9 billionTotal:   USD 234.7 billion Vegetable 
products
18.5%Other
10.9%
Source:  WTO Secretariat calculations, based on UN Comtrade database.Other 
11.2%Live animals & products
7.2%
Other
9.0%Transport 
equipment
7.8%Prepared food, 
beverages 
& tobacco  
11.7%Other
11.9%
Chemicals 
23.5%Transport
equipment
8.7%Live animals & products
7.0%
Pulp of wood; paper 
& paperboard
3.9%
Vegetable products
2.6%
Machinery;
electrical 
equipment
26.5% Machinery; 
electrical 
equipment
25.9% 
Plastics & 
rubber 6.5% Plastics & 
rubber 6.2% Petroleum & 
mineral products
15.9%Petroleum & 
mineral products
14.5%Precision
equipment
3.3%
Vegetable 
products
2.8%Prepared food, 
beverages 
& tobacco 
9.0%Exports (f.o.b.)
Imports (c.i.f.)Vegetable
products
17.3%
Pulp of wood; paper 
& paperboard
3.1%
Petroleum & 
mineral products
19.4%Chemicals
4.9%Chemicals
4.1%
Chemicals 
19.8%Base metals &
articles thereof
6.8%
Base metals & 
articles thereof
7.1%
Precision 
equipment
2.9%Transport equipment
4.2% Transport
equipment
8.8%
Machinery; 
electrical 
equipment
7.7% Machinery; electrical 
equip.  5.1% WT/TPR/S/ 432 • Brazil  
 
- 29 - 
 
  Chart 1.2 Direction of merchandise trade, 2017 and 2021  
 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
1.24.   During the review period, Brazil remained a net importer of services, running a deficit in the 
services account that rose to 1.9% of GDP before gradually dropping to 1.1% in 2021 (Section  1.2.5, 
and Tables 1.1, 1.3, and 1.4). Transportation, telecommunicat ions, computer and information, and 
other business services remain the major traded services. Due to the pandemic , the weight of travel 
was reduced significantly; the share of operating leasing services, attributable to the oil and gas 
industry at the time  of the previous Review, also decreased. In 2019, the United  States  was Brazil's 
main partner in services trade, accounting for  35.9% of its total services imports and 29.4% of its 
total exports. The E uropean  Union, notably the Netherlands and Germany, ran ked as Brazil's second 
most important partner, accounting for 37.8% of total imports and 27.3% of total exports.59 
 
59 OECD -WTO Balanced Trade in Services Dataset . 
Chart 1.2  Direction of merchandise trade, 2017 and 2021
2017 2021
Exports (f.o.b.)
Asia
36.3%
Total:   USD 215.0 billion Total:  USD 280.8 billion
Other
2.3%
EU-27
19.9%Middle East
2.5%
United States
17.7%Imports (c.i.f.)
EU-27
17.1%
Argentina
5.3%Other 0.4%
United States
17.7%
Total:   USD 165.9 billion Total:   USD 234.7 billionAfrica
4.4%
Middle East
2.0%
Korea, Rep. of
2.3%Korea, Rep. of  
3.3%United States
12.6%Other Asia
11.8%
United States
11.2%Middle East
3.6%
Source :  WTO Secretariat calculations, based on UN Comtrade database.Japan 2.3%China
17.5%Other  
0.8%
EU-27
13.0%
Other MERCOSUR
2.3%China
22.1%
Japan
2.5%
Other Asia
6.7%Other MERCOSUR
1.8%EU-27
14.1%Middle East
5.4%
Argentina
8.2% Other Americas
11.1%Other
2.5%China
31.3%
Argentina
5.9%Other Asia
13.3%
Africa
3.5%
Other Asia   
9.4%Japan
2.4%
Argentina
4.2%Africa
3.4%
Other 
MERCOSUR
2.5%Asia
37.2%Asia
32.8%Asia
46.6%
Other Americas
9.2%Other Americas
9.5%Other Americas
11.9%
Africa  2.9%
Other 
MERCOSUR
2.4%Japan
2.0%
China
22.8%Americas
34.2%Americas
29.1%
Americas
35.6%Americas
34.6%Other Europe
3.1%
Other Europe
3.6%
Other Europe
3.5%
Other Europe
3.1%Russian Federation
2.7%India 3.1%WT/TPR/S/ 432 • Brazil  
 
- 30 - 
 
  Table 1.4 Trade in services, 2017 -21 
  2017  2018  2019  2020  2021  
Total credit (USD million)  34,457.8  35,383.1  34,275.3  28,575.8  33,163.5  
 (% of total credit)  
Manufacturing services on physical inputs 
owned by others  0.02 0.01 0.05 0.04 0.01 
Maintenance and repair services  1.3 3.8 1.4 3.7 3.3 
Transportation  16.7 16.4 16.1 17.7 19.5 
 Passenger  1.1 1.1 0.4 0.2 0.2 
 Freight  5.5 6.0 5.8 6.5 7.5 
 Other  10.1 9.3 10.0 11.0 11.8 
Travel  16.9 16.7 17.5 10.7 8.9 
 Business  4.4 4.5 4.9 2.6 2.2 
 Personal  12.5 12.2 12.6 8.0 6.7 
Construction  0.0 0.0 0.1 0.1 0.1 
Insurance and pension  2.0 1.5 2.8 2.0 2.4 
Financial services  2.0 2.2 3.0 2.9 3.2 
Charges for the intellectual property  1.9 2.3 1.9 2.2 2.1 
Telecommunication, computer and information  6.3 7.4 7.5 8.9 9.8 
Operating leasing services  0.4 0.2 0.4 0.3 0.4 
Other business services, including architecture 
and engineering  49.2 46.1 45.8 47.8 46.4 
Personal, cultural and recreational services  0.9 1.0 1.5 1.4 2.0 
Government goods and services n.i.e.  2.3 2.2 2.0 2.1 2.0 
Total debit (USD million)  72,782.0  71,373.7  69,764.5  49,517.1  50,275.3  
 (% of total debit)  
Manufacturing services on physical inputs 
owned by others  0.00 0.00 0.00 0.00 0.00 
Maintenance and repair services  0.3 0.4 0.5 0.4 0.5 
Transportation  15.3 17.1 17.0 16.8 21.7 
 Passenger  5.5 5.6 5.1 2.2 2.0 
 Freight  5.5 6.5 6.6 8.2 11.3 
 Other  4.3 5.1 5.2 6.4 8.4 
Travel  26.1 25.6 25.2 10.9 10.4 
 Business  7.2 7.0 6.9 2.9 2.8 
 Personal  18.9 18.6 18.3 8.0 7.7 
Construction  0.0 0.0 0.0 0.0 0.0 
Insurance and pension  2.0 2.0 2.3 3.1 3.8 
Financial services  1.0 0.7 0.9 1.0 1.3 
Charges for the intellectual property  7.4 7.2 7.5 8.2 10.3 
Telecommunication, computer and information  5.5 6.7 7.7 12.0 12.9 
Operating leasing services  25.2 22.2 21.0 24.3 13.9 
Other business services, including architecture 
and engineering  13.3 13.9 14.1 19.2 21.6 
Personal, cultural and recreational services  1.2 1.1 0.8 0.6 0.5 
Government goods and services n.i.e.  2.8 3.1 2.9 3.5 3.2 
Source:  BCB. 
1.3.2   Trends and patterns in FDI  
1.25.   During the review period , Brazilian equity investment overseas outflows peaked (2018) and 
then decreased progressively at 17.6% below their 2017 level (Table  1.5). According to UNCTAD, 
overseas FDI dropped due to largely negative outflows from Brazilian firms that continued  to raise 
funds through their overseas subsidiaries.60 FDI equity outflows targeted a variety of economic 
activities, the main recipients being services (e.g. non -financial holdings, financial and auxiliary 
 
60 UNCTAD (202 1), World Investment Report 202 1 – Investing in Sustainable Recovery . Viewed at: 
https://unctad.org/system/files/official -document/wir2021_en.pdf . WT/TPR/S/ 432 • Brazil  
 
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  services, and commerce) and industry (e.g. motor vehicles, trailers, semi -trailers and related parts, 
and basic metallurgy) (Table  1.5). The E uropean  Union and the United  States  were Brazil's main 
outward FDI  destinations in 2021.  
Table 1.5 Foreign direct i nvestment (equity)a outflows, 2017 -21 
  2017  2018  2019  2020  2021  
Total outflows (USD million)  13,026.4  14,794.7  14,229.9  14,034.9  10,731.1  
 % of GDP  0.6 0.8 0.8 1.0 0.7 
 (% of total)  
By sector       
 Crop, livestock and mineral extraction  0.5 3.4 7.0 1.7 0.9 
 Metallic mineral extraction  .. 3.1 6.7 1.2 0.3 
 Others  0.5 0.0 0.2 0.4 0.6 
 Industry  64.3 32.1 16.4 29.6 20.8 
 Basic metallurgy  0.0 6.5 2.9 2.7 6.9 
 Chemical products  9.9 6.1 0.6 19.2 0.2 
 Non-metallic mineral products  0.9 0.7 6.4 1.8 1.6 
 Electrical machines, devices and apparatuses  0.4 0.9 0.2 0.4 0.3 
 Motor vehicles, trailers, semi -trailers and 
 related  parts 0.1 1.7 2.0 0.5 7.0 
 Foodstuff  3.7 0.7 1.2 1.3 0.0 
 Plastic and rubber products  0.2 0.4 0.1 0.1 0.1 
 Machinery and equipment  0.1 0.0 0.1 0.5 0.1 
 Leather and footwear  0.1 .. 0.1 0.1 0.4 
 Textile products  0.1 0.7 0.6 0.1 0.5 
 Coke, oil derivatives and biofuels  46.0 .. 0.1 .. 0.0 
 Other industries  2.8 14.2 2.0 3.0 3.6 
 Services  33.9 63.0 75.1 67.9 77.3 
 Non-financial holdings  16.7 19.2 18.7 26.6 36.2 
 Financial and auxiliary services  6.6 33.5 27.9 29.9 22.6 
 Transportation  0.1 0.2 0.3 0.2 1.2 
 Electricity and gas  0.1 0.2 .. 0.3 0.1 
 Infrastructure works  4.5 0.2 0.1 0.1 0.9 
 Telecommunications  0.0 0.1 .. .. 0.1 
 Commerce, except vehicles  1.0 5.9 20.9 0.7 7.9 
 Storage and transportation auxiliary activities  0.2 0.1 0.3 0.4 0.0 
 Real estate activities  1.0 0.7 1.6 0.9 1.0 
 Buildings and specialized construction 
 activities  0.2 0.0 0.0 0.1 0.1 
 Information technology services  1.6 0.2 1.1 1.5 1.5 
 Headquarter consulting and management 
 activities  0.0 0.0 1.0 0.1 2.0 
 Office services and other services rendered 
 to corporations  0.8 0.0 0.0 0.0 0.9 
 Other services  1.0 2.5 3.0 7.0 2.6 
 Acquisition and sale of property  1.4 1.6 1.6 0.8 1.1 
By partner       
 United  States  10.4 24.4 13.7 29.9 26.2 
 British Virgin Islands  4.4 4.9 4.4 7.0 13.6 
 Luxembourg  2.7 7.6 7.4 9.9 11.1 
 Cayman Islands  8.3 18.9 19.1 6.7 10.1 
 Spain  0.3 0.3 0.5 0.5 7.7 
 Chile 0.3 0.7 0.5 0.9 7.3 
 Netherlands  41.0 14.4 2.3 2.1 5.6 
 Bahamas  2.1 3.2 11.9 29.8 4.4 
 Uruguay  2.5 0.9 0.5 0.6 2.4 
 Switzerland  0.8 1.2 1.0 1.0 2.0 
 Argentina  2.7 8.0 5.8 1.5 1.1 WT/TPR/S/ 432 • Brazil  
 
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    2017  2018  2019  2020  2021  
 United Kingdom  4.1 0.6 0.3 0.7 1.0 
 Portugal  0.7 0.7 0.7 0.7 0.7 
 Mexico  0.1 0.9 0.6 0.9 0.6 
 Colombia  0.6 0.3 17.7 0.3 0.5 
 Austria  0.1 1.4 1.1 0.9 0.4 
 Bermuda  0.0 .. 0.7 0.6 0.4 
 Panama  0.4 0.4 0.4 0.9 0.3 
 Germany  0.0 0.2 0.0 0.0 0.3 
 Peru 0.3 0.3 0.1 0.3 0.2 
 Italy 0.2 0.1 0.4 0.2 0.2 
 Canada  0.4 0.2 0.1 0.2 0.2 
 China  0.0 0.1 0.3 0.1 0.2 
 Other  17.7 10.4 10.5 4.3 3.2 
.. Not available or marked as confidential, number of observations is below three.  
a Other than reinvestment of earnings.  
Source:  BCB. Viewed at: https://www.bcb.gov.br/content/statistics/specials eriestables/InvBrai.xls . 
1.26.   Inward FDI is not only an additional source of capital, but it also brings with 
it entrepreneurship, management skills, and especially new technology, which contribute to 
improved total factor productivity. During the review period , FDI equity inflows bottomed 
in 2020 (Table  1.6), reflecting the negative impact of the coronavirus pandemic on foreign 
investment activity, and in 2021 rose at an amount equivalent to 65.3% of their 2017 level.61 
According to UNCTAD estimates, in 2020 Br azil was the world's 9th (same as in 2018) FDI host 
economy, a drop compared to its 6th position in 2019.62 In 2021 , the main FDI recipients were 
services (e.g.  commerce, information technology services, financial and auxiliary services, 
non-financial holdings, and electricity and gas) and industry (e.g. motor vehicles, trailers, semi -
trailers and related parts, foodstuff, oil derivatives , and biofuels) (Table  1.6). The same year , the 
European  Union remained the leading investor, with a consid erable share attributable 
to Luxembourg and the Netherlands. Despite a major rise in its share in 2021, the United  States  
remained the second source of inward direct investment in Brazil.  
Table 1.6 Foreign di rect investment (equity)a inflows, 2017 -21 
  2017  2018  2019  2020  2021  
Total inflows (USD million)  60,336.1  46,164.8  48,951.2  32,869.2  39,386.2  
 % of G DP 2.9 2.4 2.6 2.3 2.4 
 (% of total)  
By partner       
 United  States  18.3 15.8 21.0 22.9 33.1 
 Luxembourg  7.1 5.2 5.2 4.3 12.8 
 Netherlands  18.1 20.0 12.7 16.4 10.3 
 Cayman Islands  0.8 4.0 6.0 4.5 5.4 
 Canada  0.5 2.9 3.2 1.7 3.8 
 Spain  3.8 7.4 5.9 6.1 3.2 
 Chile 2.7 2.2 7.8 2.3 3.1 
 Germany  5.3 8.2 2.9 2.6 2.9 
 United Kingdom  1.9 1.9 5.9 2.7 2.7 
 Italy 2.5 1.5 1.5 2.9 2.2 
 Singapore  0.3 1.2 0.3 2.4 2.1 
 Switzerland  2.1 2.6 1.6 2.2 2.1 
 Korea , Republic of  0.8 0.7 0.4 0.7 1.5 
 
61 EIU (2021), Country Commerce – Brazil , October. Viewed at: http://www.eiu .com/ . 
62 UNCTAD (2020), World Investment Report 2020 – International Production Beyond the Pandemic . 
Viewed at: https://unctad.org/webflyer/world -investment -report -2020; and UNCTAD (2 021), 
World  Investment Report 202 1 – Investing in Sustainable Recovery . Viewed at: 
https://unctad.org/system/files/official -document/wir2021_en.pdf . WT/TPR/S/ 432 • Brazil  
 
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    2017  2018  2019  2020  2021  
 Panama  0.4 0.3 0.1 1.5 1.5 
 France  5.2 2.9 5.9 6.8 1.4 
 Japan  0.9 2.4 4.0 6.1 1.4 
 Hong Kong, China  1.9 2.0 0.2 0.4 1.1 
 Uruguay  0.4 0.1 0.2 1.3 0.9 
 Bermuda  0.4 1.4 1.1 0.4 0.7 
 Norway  1.6 1.7 4.5 2.3 0.6 
 China  1.1 0.8 0.2 0.4 0.6 
 British Virgin Islands  15.0 3.1 1.0 0.7 0.5 
 Bahamas  1.9 5.7 1.0 0.9 0.5 
 Australia  0.3 0.3 0.3 1.0 0.4 
 Portugal  0.5 0.4 0.3 0.7 0.4 
 Belgium  0.2 0.3 1.0 0.3 0.4 
 Sweden  0.2 0.4 0.6 0.4 0.3 
 Mexico  2.5 0.8 0.8 0.3 0.3 
 Ireland  0.1 0.2 0.2 0.6 0.2 
 Denmark  0.3 0.2 0.1 0.2 0.2 
 Austria  0.3 0.3 0.8 0.8 0.2 
 Argentina  0.2 0.2 0.2 0.0 0.2 
 Finland  0.4 0.1 0.1 0.3 0.1 
 Colombia  0.4 0.1 0.1 0.0 0.1 
 Cyprus  0.1 0.0 0.0 0.0 0.0 
 Peru 0.1 0.1 0.0 0.1 0.0 
 New Zealand  0.1 0.0 0.1 0.0 0.0 
 Other countries  1.4 2.7 2.5 2.5 2.8 
By sector  
Crop, livestock and mineral extraction  9.8 18.5 26.8 21.2 9.0 
 Oil and gas extraction  6.2 11.3 20.2 12.3 3.5 
 Metallic mineral extraction  1.6 2.6 2.6 4.2 1.9 
 Mining support service activities  0.5 3.3 1.5 3.0 0.6 
 Crop, livestock , and related services  1.0 0.5 2.0 1.4 2.9 
 Non-metallic mineral extraction  0.3 0.1 0.1 0.1 0.0 
 Forestry production  0.2 0.6 0.4 0.1 0.1 
Industry  30.9 36.5 20.3 28.7 32.8 
 Basic metallurgy  5.3 2.0 0.4 0.7 0.3 
 Foodstuff  4.3 3.6 2.4 1.8 9.5 
 Chemical products  5.2 5.1 1.9 3.0 1.9 
 Pharmaceuticals  1.0 1.2 0.6 1.3 0.4 
 Motor vehicles, trailers, semi -trailers and 
 related parts  6.5 9.8 5.1 8.1 9.7 
 Machinery and equipment  1.3 1.9 1.4 2.6 1.2 
 Electrical machines, devices and 
 apparatuses  0.8 0.9 0.4 1.9 0.3 
 Pulp, paper and paper products  1.0 4.3 2.6 3.5 0.6 
 Computer equipment, electronic and 
 optical products  0.8 0.8 0.4 0.5 2.1 
 Plastic and rubber products  0.6 1.2 0.6 1.6 0.3 
 Non-metallic mineral products  0.9 2.3 2.6 0.4 0.8 
 Other manufacturing  0.2 0.4 0.1 0.1 0.2 
 Beverages  0.3 0.0 0.0 0.1 0.0 
 Coke, oil derivatives and biofuels  0.6 0.7 0.7 0.5 4.1 
 Metal products, except machinery and 
 equipment  0.6 0.2 0.1 0.3 0.2 
 Other transportation equipment  0.6 0.3 0.1 0.2 0.3 
 Wood products , except furniture  0.1 0.1 0.0 0.1 0.0 
 Textile products  0.1 0.2 0.0 0.1 0.0 
 Publishing activities  0.0 0.5 0.1 1.4 0.4 WT/TPR/S/ 432 • Brazil  
 
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    2017  2018  2019  2020  2021  
 Repair of computers and personal and 
 household goods  0.1 0.0 0.0 0.1 0.0 
 Tobacco products  0.2 0.2 0.1 0.1 .. 
 Other industries  0.3 0.5 0.6 0.5 0.5 
 Services  59.0 44.6 52.5 49.4 57.2 
 Commerce, except vehicles  9.1 6.8 8.7 8.7 9.4 
 Financial and auxiliary services  2.1 6.8 7.2 3.4 6.3 
 Insurance, reinsurance, complementary 
 social security and health assistance  0.6 1.7 0.2 3.8 1.5 
 Real estate activities  2.5 2.3 3.5 1.7 1.9 
 Electricity and gas  20.9 5.4 10.2 5.7 5.6 
 Office services and other services 
 rendered to corporations  0.6 0.9 0.7 1.4 2.0 
 Transportation  7.0 2.3 5.8 0.9 0.5 
 Buildings and specialized construction 
 activities  0.8 1.5 0.5 1.3 0.6 
 Non-financial holdings  0.8 1.7 1.2 6.0 5.7 
 Architectural and engineering services  0.6 0.6 0.5 1.3 0.5 
 Information technology services  1.2 4.1 2.4 2.5 6.8 
 Infrastructure works  0.1 0.8 0.3 0.6 0.4 
 Non-real-estate lease and intangible 
 assets  0.3 0.3 0.3 0.7 1.1 
 Storage and transportation auxiliary 
 activities  4.2 3.6 2.8 0.6 0.6 
 Telecommunications  0.6 0.9 1.2 0.7 0.6 
 Headquarter consulting and management 
 activities  0.5 0.3 0.4 0.5 1.8 
 Advertising and market research  0.4 0.2 0.2 0.2 0.2 
 Commerce and maintenance of vehicles  0.7 0.4 0.4 0.1 0.8 
 Food and beverage service activities  0.4 0.2 0.1 0.2 0.1 
 Lodging  0.4 0.2 0.4 0.6 1.1 
 Travel agencies and tour operators  0.1 0.3 0.0 0.1 0.1 
 Education  0.5 0.3 1.2 3.1 1.9 
 Scientific research and development  0.0 0.1 0.0 0.3 0.2 
 Auxiliary radio and television activities  0.0 .. .. .. .. 
 Collection, treatment and distribution of 
 water  1.6 .. 0.0 .. 1.1 
 Other services  3.1 2.9 4.2 5.1 6.4 
Acquisition and sale of property  0.3 0.4 0.4 0.7 0.9 
.. Not available. Marked as confidential, number of observations is below three. 
a Other than reinvestment of earnings.  
Source:  BCB. Viewed at: https://www.bcb.gov.br/content/statistics/specialseriestables/Investri.xls . 
 WT/TPR/S/ 432 • Brazil  
 
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  2  TRADE AND INVESTMENT REGIMES  
2.1.  Since its last TPR in 2 017, Brazil undertook several constitutional amendments. The institutional 
framework for trade policy formulation and its trade and trade -related policy objectives remained 
broadly unchanged. During the review period , Brazil adopted measures to simplify re gulations, 
increase transparency , and encourage trade , as well as to promote the use of Regulatory Impact 
Analyses/Assessments; it also made advances in e -government and anti -corruption.  
2.2.  Brazil participated in all WTO joint initiatives and the procedure for its accession to the 
WTO Agreement on Government Procurement (GPA) and the Agreement on Trade in Civil Aircraft 
are under way. At the same time, it continues to focus on strengthening regional economic 
integration with an emphasis both on dee pening existing agreements in Latin America and, as 
a Southern Common Market (MERCOSUR ) member, negotiating agreements with trading partners 
outside the region. During the review period, it was directly involved in five new WTO disputes, and 
took action in  response to the WTO  Appellate  Body deadlock.  
2.3.  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 peri od, 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 replacement of its bilateral investment p romotion and protection 
agreements by cooperation and facilitation investment agreements and the conclusion of double 
taxation avoidance treaties/agreements.  
2.1  General Framework  
2.4.  The 1988 Federal Constitution remains the fundamental law of the State. During t he review 
period, 19 amendments to the Constitution were promulgated, thus bringing to 125  (as 
of 15 July 2022) the number of total amendments since its entry in force.1 
2.5.  The Federative Republic of Brazil is composed of the Union, the states, the municipal ities, and 
the Federal District. The Government comprises the executive, legislative, and judiciary branches.2 
The President, assisted by the appointed Cabinet of Ministers, exercises executive power. 
Presidential terms are four years, and re -election is possible once. Presidential, congressional , and 
state elections are held every four years; the next elections are to take place in October  2022. The 
judiciary is composed of the Supreme Federal Court, the Superior Court of Justice, the federal 
regional cou rts and federal judges, state courts and judges, and other special courts and judges.  
2.6.  Legislative bodies at the federal, state, and municipal levels are in charge of drafting and issuing 
specific legislation as stipulated by the Constitution. Legislation f or matters such as monetary policy, 
foreign trade, telecommunications, maritime and air transport, insurance, and utilities is dealt with 
by the bicameral National Congress (Chamber of Deputies and the Senate) with the 
sanction/approval of the President of  the Republic; in addition, the National Congress has 
responsibility for legislating on all matters within the competence of the Union, including approving 
international treaties by legislative decree prior to their promulgation by the President of the 
Republic (ordinary law or constitutional amendments). Legislation on tax, education, social security, 
and health may be issued concurrently by the federal and state legislatures, whil e municipalities 
may only issue laws on areas of local interest and to suppl ement federal and state legislation 
wherever pertinent.3 The legislative process includes the preparation and enactment of ordinary, 
 
1 These amendments, inter alia, involved:  (i) an authorization to transfer federal financial resources to 
states, the Federal District , and municipalities through amendments to the annual bu dget bill; (ii) the 
establishment of extraordinary fiscal, financial , and contracting regime to face the national public calamity 
resulting from the pandemic; (iii) revoking provisions of the Transitory Constitutional Provisions Act and setting 
transitory rules on the reduction of tax benefits partially unlinking the financial surplus from public funds and 
suspending conditionalities for expenditure on granting residual emergency aid to address the social and 
economic consequences of the C OVID -19 pandemic; and (iv) providing discipline at the distribution of financial 
resources by the Federal Government to the Municipal Participation Fund. Viewed at: 
https://www.pla nalto.gov.br/ccivil_03/Constituicao/Emendas/Emc/quadro_emc.htm . 
2 The bicameral National Congress consists of: an 81 -seat Senate (the upper house) with 
representatives of the 26 states, plus the Federal District of Brasília; and a 513-member directly elect ed 
Chamber of Deputies (the lower house). Each state , as well as  the district of Brasília , has its own legislature.  
3 Federal Constitution , Articles 22, 24 , and 30 ; and Title IV (Chapter I, Section  II). WT/TPR/S/ 432 • Brazil  
 
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  supplementary, and delegated laws, as well as amendments to the Constitution. Due to the 
bicameral structure of the Congre ss, all law and amendment proposals have to pass through the 
same process of analysis and voting in both houses and, if approved, the proposal is sent to the 
President of the Republic for sanction, publication, and entry into force. Amendments to the 
Const itution are an exception, as they are promulgated directly after congressional approval. 
Legislative decrees are administrative in nature and require a simple majority in Congress.  
2.7.  The President may resort to provisional measures on issues considered to be  of particular 
importance and urgency, under the provisions of Article  62 of the Constitution. Provisional measures 
become effective upon publication, and should be analysed by Congress upon enactment and voted 
on within a timeframe of 60 days , which may b e extended once for an identical period of time; 
between 6  July 2017 and June 2022, 310 such measures were adopted.4 In the case of tax issues, 
provisional measures passed before the end of the fiscal year may only be applied to the following 
year's budget, except for customs duties on imports, export taxes, the tax on industrial 
products  (IPI) and the financial transac tions tax (IOF), or extraordinary taxes introduced in 
case of war. 
2.8.  International treaties and conventions must be approved by the National Congress to enter into 
force domestically. Upon enactment, through a legislative decree and a Presidential Decree, 
international treaties have the same legal status as ordinary laws; nevertheless, the Supreme 
Federal Court has the power to deem them incompatible with the Federal Constitution and hence 
revoke them, but the authorities indicate that there have been no such  cases so far.5 
2.9.  Brazil consists of 26  federal states and one Federal District. Reportedly, disorderly 
decentralization of administrative functions and financial flows has distorted the allocation of 
resources between the different levels of government.6 According to the Inter -American 
Development Bank (IDB), it seems that the subnational governments do not receive sufficient funds 
so as to deliver the public services under their responsibility; in 2018 they accounted for  44.1% of 
total public spending, eq uivalent to about 24% of GDP, whereas the revenues they collected only 
represented 11% of GDP, which creates large imbalances and makes them highly dependent on 
intergovernmental transfers. Financial limitations reduce public investments, with negative soc ial 
and economic consequences.  
2.2  Trade Policy Formulation and Objectives  
2.2.1   Trade policy formulation  
2.2.1.1   Executive branches of government  
2.10.   The Foreign Trade Board/Chamber (CAMEX), under the Ministry of Economy since  2019 
(previously under the Ministry of Foreign Aff airs and Ministry of Industry, Foreign Trade and 
Services), remains in charge of the formulation, implementation , and coordination of policies and 
activities relating to foreign trade in goods and services, including tourism, with a view to promoting 
foreign trade, investment , and the country's international competitiveness.7 Its main decision body 
is the Commercial Strategy Council, which is chaired by the President of the Republic and composed 
of the Ministers of Economy ; Chief of Staff's Office of the P residency of the Republic, Foreign Affairs, 
Defence ; and Agriculture, Livestock and Food Supply. The CAMEX Executive Management Committee 
Resolution No.  130, which establishes procedural aspects of the Commercial Strategy Council, 
mandates that this body m eet every six months in order to define foreign trade policy guidelines, 
 
4 Portal da Legislação. Viewed at: http://www4.planalto.gov.br/legislacao/portal -legis/legislacao -
1/medidas -provisorias . 
5 International treaties and conventions on human rights that are approved  are equivalent to the 
constitutional amendments . 
6 IDB (2019), IDB Group Strategy with Brazil 2019 -2022, June. Viewed  at: 
https://idbdocs.iadb.org/wsdocs/ getdocument.aspx?docnum=EZSHARE -750030607 -12. 
7 The Ministry of Economy was established in January 2019 and merged four ministries from the 
previous government: the Ministry of Finance ; the Ministry of Industry, Foreign Trade and Services (MDIC) ; 
most of t he Ministry of Labour ; and the Ministry of Planning, Development and Management (MPOG).  
OECD  (2020), SME and Entrepreneurship Policy in Brazil 2020 , OECD Studies on SMEs and Entrepreneurship, 
27 April. Viewed at: https://www.oecd.org/publications/sme -and-entrepreneurship -policy -in-brazil -2020-
cc5feb81 -en.htm ; and Ministry of Economy, About Camex . Viewed at : https://www.gov.br/produtividade -e-
comercio -exterior/pt -br/assuntos/camex/sobre -a-camex . WT/TPR/S/ 432 • Brazil  
 
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  grant negotiating mandate for trade agreements , and authorize trade disputes. The CAMEX 
Executive Management Committee assists CAMEX in regional integration and trade matters, and is 
composed of the Minister of Economy, who presides over it; the Presidency of the Republic; the 
Ministry of Foreign Affairs; the Ministry of Agriculture, Livestock and Food Supply; the Special 
Secretary for Foreign Trade and International Affairs at the Min istry of Economy; the Special 
Secretary for Productivity, Employment and Competitiveness of the Ministry of Economy; the Special 
Secretary of the Federal Revenue of Brazil; the Special Secretary of Finance of the Ministry of 
Economy; and the Executive Secr etary of CAMEX. The Ministry of Foreign Affairs continues to 
represent Brazil in the WTO.  
2.11.   The Ministry of Economy implements trade policy in line with CAMEX guidelines through 
its Secretariat of Foreign Trade (SECEX). SECEX was last restructured on 8  April 2019 
(Decree  No. 9,745) and it now consists of five undersecretariats: Foreign Trade Operations (SUEXT); 
Trade Remedies (SDCOM); International Trade Negotiations (SEINT); Statistics and 
Intelligence  (SITEC); and Trade Facilitation and Internationalization  (SUFAC). The Ministry of 
Economy formulates and implements economic policy, and is in charge of customs and tax policy, 
and revenue collection.  
2.2.1.2   Advisory, planning , and other bodies  
2.12.   The main policy advisory bodies remain the public sector's Institute for A pplied Economic 
Research (IPEA), and the Brazilian Industrial Development Agency (ABDI) , both under the Ministry 
of Economy.8 IPEA provides technical and institutional support to government actions for the 
formulation and revision of public policies and d evelopment programmes in Brazil; actually, the 
ABDI's consists of promoting the debate between the G overnment and companies for setting public 
policies and strategic actions aimed at increasing the competitiveness of the Brazilian economy in 
the face of th e challenges of the digital age.9 Furthermore, non -governmental bodies such as the 
National Confederation of Industry (CNI) and the Centre for  Global Trade and Investment (CGCI) of 
the São Paulo School of Economics – Getúlio Vargas Foundation (EESP/FGV) remain active in 
research and consultative work relating to trade policy formulation. Since May 2014, the CGCI has 
been a member of the WTO Chairs Programme.10 Since 2017, the C GCI has organized more 
than 10 international events , notably the Annual Trade Conferences and several thematic 
workshops, some of them held in conjunction with the WTO Secretariat; it has published more 
than 20 books and e -books and more than 40 articles and working papers  on international trade.  
2.13.   The private sector continues to participate in trade policy formulation through the CAMEX 
Private Sector Advisory Board (CONEX) (Sections 2.2.1.1 and 2.3.1). CONEX provides contributions 
and recommendations to CAMEX's decision -making process related to foreign trade, investment, and 
export financing.11 Its membership includes up to 20 representatives from corporate associations 
and companies from the manufacturing, agri -business , and services sectors; consumer protection 
bodies; and  academic institutions.  
2.2.2   Trade policy objectives  
2.14.   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 compet itiveness; (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 public policy eff iciency.12 The 
 
8 Viewed at: http://agencia.ipea.gov.br/ ; and http://www.abdi.com.br/Paginas/default.aspx . 
9 Recent IPEA publications covered e ffective tariff assistance report to the economic sectors in 
Brazil  (2018), in ternatio nal integration as a vector for the Brazilian economic recovery  as well as intensity and 
structure of non -tariff measures on Brazilian imports  (2016 -18). Viewed at: 
https://www.ipea.gov.br/portal/images/stories/PDFs/pubpreliminar/210915_nt_assitencia_setorital_2021.pdf ; 
exports: https://www.ipea.gov.br/portal/images/stories/PDFs/rtm/211005_rtm_26_art3.pdf ; and 
https://www.ipea.gov.br/portal/images/stories/PDFs/TDs/201204_td_2617.pdf . 
10 Center for Global Trade and Investment, WTO Chairs Programme . Viewed at: http://ccgi.fgv.br/ . 
11 GECEX Resoluti on No. 153/2021 . Viewed at: https://portal.apexbrasil.com.br/regulatory_report/the -
foreign -trade-chamber -camex -at-the-ministry -of-economy -reestablished -the-private -sector -advisory -board -
conex -designed -to-support -camexs -decision -making -process -related -to-foreign-tra/. 
12 IDB, Brazil . Viewed at: https://www.iadb.org/en/countries/brazil/overview . WT/TPR/S/ 432 • Brazil  
 
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  strategy was to address challenges related to gender and diversity , environmental sustainability and 
climate change , and innovation and digital transformation.  
2.15.   During the review period , trade policy remained focused on meeting objectives of 
technological upgrading, raising competitiveness of domestic products, improv ing the business 
environment, integrat ing into global value chains and international markets by negotiating regional 
trade agreements (RTAs), cutting import duties , and reducing bureaucracy.13 Since 2019 , Brazil has 
been pursuing a trade policy agenda based on three  pillars: intensification of th e trade agreements 
network (below and Section  2.3.2); modernization of the MERCOSUR tariff structure 
(Section  2.3.2.1); and reduction of non -tariff barriers to trade. Notwithstanding regulatory and 
institutional progress, Brazil  maintained a long -standing trade and trade -related policy framework 
that shields certain domestic producers from external competition. The policy setting remains to 
some extent characterized by persisting "infant industry" protection and tariff jumping principles.14 
Its tools compri se 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. As a result, despite progress made with temporary tariff reductions since 
2019 and efforts  to make them permanent within the MERCOSUR common external tariff (CET)  
(Section  2.3.2.1), Brazil remains a relati vely inward -oriented and closed economy – as reflected by 
its low albeit significantly risen in 2020 and 2021  – international trade penetration/openness 
(Section  1.3.1), which  by protecting its market reduces the incentives to raising efficiency and 
qualit y or product differentiation.15 
2.16.   During the review period , policies to promote exports, innovation , and micro and small 
enterprises have been in place.16 The 2012 National Plan of Exporting Culture ( Plano Nacional da 
Cultura Exportadora  (PNCE )) aimed at increasing the number of exporters through the development 
of a network of national and state -level institutions involved in export promotion; it now provides 
micro, small, and medium -sized enterprises (MSMEs) interested in trading overseas with a business  
assessment of their main weaknesses and strengths, and offers services to prepare them to export. 
Work to advance in new systems integration and data -sharing solutions based on the concept of 
Integrated Services for MSMEs in International Trade (ISMIT) is  under way via the implementation 
of a digital platform on trade -related services in partnership with the United Kingdom under the 
Trade Facilitation Programme. The 2018 Action Plan for Technological Innovation within the 
framework of the National Strategy  for Science, Technology and Innovation, 2016 -22 sets the 
context of innovation in Brazil by initially presenting some data from the national innovation 
survey  (PINTEC) run by the national statistical office. The Action Plan for Technological Innovation 
is aimed at making Brazil's private sector the main engine of R&D investment , bridging the distance 
between academia and industry , and enhancing the technological content and international 
speciali zation of the Brazilian economy. The June 2019 National Polic y in support of Micro and Small 
Enterprises ( Política Nacional de Apoio e Desenvolvimento das Microempresas e Empresas de 
Pequeno Porte  (PNADEMPE )) gathers information on ongoing initiatives for MPEs, sets out future 
policy directions, and outlines main po licy evaluation criteria. Under Law No.  14,184/2021 the 
regime of export processing zones (EPZs) (Section  3.2.4.2) was significantly remodelled to 
consolidate them as an important vector for boosting exports; the regime was extended to the 
services sector, the minimum period for using the regime was set at 20 years for each beneficiary , 
and the creation of EPZs may now be proposed by the private sector.  
2.17.   Brazil remained focused on strengthening regional economic integration through MERCOSUR 
and Latin American Integration Association (LAIA/ALADI ), which continued to proceed with 
negotiations with trading partners outside the  region (Section  2.3.2). Brazil's trade strategy 
 
13 WTO document WT/TPR/S/358/Rev.1, 18  October  2017; and Thomson Reuters, International Trade in 
Goods and Services in Brazil: Overview . Viewed at: https://uk.practicallaw.thomsonreuters.com/w -011-
0773?transitionType=Default&contextData=(sc.Default)&firstPage=true#:~:text=In%20general%20terms%2
C%20the%20Brazilian,Brazilian%20competitiveness%20by%20reducing%20bu reaucracy . 
14 Tariff jumping refers to the establishment of a production facility within a foreign country, through 
FDI or licensing, in order to avoid a tariff. At the time of the previous Review , the authorities consider ed that 
the determination of whethe r tax and non -tax incentives are "distortive" needs to be made on a case -by-case 
basis, and only after having assessed specific data on a given industry.  
15 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
16 OECD (2020), SME and Entrepreneurship Policy in Brazil 2020 , OECD Studies on SMEs and 
Entrepreneurship, 27 April. Viewed at: https://www.oecd.org/publications/sme -and-entrepreneurship -policy -in-
brazil -2020-cc5feb81 -en.htm . WT/TPR/S/ 432 • Brazil  
 
- 39 - 
 
  targets  "productive" integration with Latin  America and RTAs with major or traditi onal trading 
partners. Action to strengthen trade relations with traditional partners and open new markets for 
Brazilian products through the negotiation and conclusion of trade agreements covering tariffs but 
also aspects such as investment, services, e -commerce, public procurement, trade facilitation and 
technical regulations, sanitary and phytosanitary measures, technical regulations, intellectual 
property, state -owned enterprises, sustainable development , and transparency/anti -corruption 
was undertaken.  
2.2.3   Trade laws and regulations  
2.2.3.1   Regulatory framework and reform  
2.18.   During the review period, Brazil's range of legal instruments remained unchanged. They 
comprise, in the following hierarchical order from highest to lowest: amendments to the Constitution 
(Section  2.1), supplementary laws , ordinary laws , delegated laws , provisional measures , and 
legislative decrees.17 These legal instruments are higher than other instruments such as resolutions, 
Presidential Decrees, ministerial ordinances ( portarias ), contracts , and administrative decisions. 
Since its last Review , Brazil has passed new trade and trade -related legislation in several areas 
including trade facilitation, anti -dumping, state enterprises, public procurement, taxation, tax 
refunds ( Reintegra ), intellectua l property rights, automotive, and digital marketing (Sections  3 
and 4). 
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 t han 
in OECD countries, and lack transparency and simplicity.18 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.19 A 2019 joint OECD/Brazil 
report identified areas where discrepancies existed between Brazil's laws and OECD guidelines.20 
The review found that Brazil should enact measures such as cutt ing 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, recommendations, approval orders, any other act lower than decree with 
normative content) was taken.21 Recent efforts take stock of the complexity of curr ent regulation; 
according to the authorities, as of September 2021, Brazil had identified 72,537 normative acts 
relating to 77  public entities, of which 45,704 were reviewed, 22,519 were revoked , and 3,055 were 
consolidated.22 In addition, work is in progr ess under the National Investment Committee's 
 
17 The very detailed Constitution touches on num erous economic issues, thus requiring frequent 
amendments to update the constitutional framework when significant reforms are envisaged. Federal 
Constitution , Article  59; and OECD (2008), "Government Capacity to Assure High Quality Regulation in Brazil", 
Reviews of Regulatory Reform: Brazil 2008 . Viewed at: http://www.oecd -ilibrary.org/governance/oecd -
reviews -of-regulatory -reform -brazil -2008/government -capacity -to-assure -high-quality -regulation -in-
brazil_9789264042940 -4-en. 
18 The 2018 OECD Product Market Regulation (PMR) indicators measure regulatory barriers to firm entry 
and competition in a broad range of key economic sectors and policy areas by benchmarking a country 's 
regulatory set -ups against internationally accepted best practices. Brazil stands out as one of the most 
restrictively regulated economies when the overall i ndicator is considered, but al so in both its main 
sub-components: barriers to domestic and foreign entry and distortions induced by state involvement.  
OECD  (2020), OECD Economic Surveys: Brazil 2020 , December. Viewed at: 
https://www.oecd.org/economy/surveys/Brazil -2020-OECD -economic -survey -overview.pdf . 
19 On 25  January  2022, the OECD Council decided to open accession discussion s with Brazil. This was 
done on the basis of its evidence -based Framework for Consideration of Prospective Members and the progress 
made by Brazil since its first request for OECD membership . OECD, The OECD and Brazil : A Mutually Beneficial 
Relationship . Viewed at: https://www.oecd.org/latin -america/countries/brazil/ ; and OECD Legal Instruments . 
Viewed at: https://legalinstrum ents.oecd.org/en/adherences . 
20 These areas include d issues related to double taxation; insufficient accounting for such things as 
intra-group transactions, the use or transfer of intangibles , and group restructurings; and legal certainty in 
international t ransactions.  EIU (2021), Country Commerce – Brazil , October. Viewed at: http://www.eiu.com/ . 
21 Decree N o. 10,139/2019 . Viewed at: http://www.planalto.gov.br/ccivil_03/_ato2019 -
2022/2019/decreto/D10139.htm . 
22 Viewed at: https://www.gov.br/secretariageral/pt -br/noticias/2021/setembro/mais -de-22-mil-atos-
inferiores -a-decreto -foram -revogados -nos-ultimos -dois-anos. WT/TPR/S/ 432 • Brazil  
 
- 40 - 
 
  (CONINV) National Investment Plan (PNI) Regulatory Agenda for Improving the Investment 
Environment (Section s 2.4.1 and 2.4.4).  
2.20.   Progress has been made in the use of Regulatory Impact Analyses/Assessments (RIAs).  
Although regulatory agencies complete RIAs on a voluntary basis, the Senate approved a bill on 
Governance and Accountability (PLS 52/2013 in the Senate, and PL 6621/2016 in the Chamber of 
Deputies) into Law 13,848 (Law of Regulatory Agencies) on 25  June 2019; this Law inter alia 
makes  RIAs mandatory for regulations that affect "the general interest" , whereas Law 13,874/2019 
(Economic Freedom Act) made them mandatory for all regulators for non -primary normative 
acts (i.e. non -decree or law).23 A June 2020 Presidential Decree explicitly defined, for the first time, 
cases of new regulations that require an ex ante RIA in cases of new regulations with potential 
economic impacts, including on competition. The decree regulating RIAs has provided for the 
minimum r equirements to be reviewed, as well as the criteria for making them mandatory or waiving 
them.24 It inter alia  sets the RIAs ' procedure and defines a low -impact normative act and regulatory 
costs. The decree applies to the direct federal public administrat ion, its independent agencies , and 
public foundations whenever there is a proposal of normative act of general interest to economic 
agents or users of their services within the scope of their competences; as from 14  October 2021 , 
all federal administration  entities (more than 150 regulators) are obliged to carry out RIAs. 
Moreover, Brazilian public sector agencies maintain a fairly advanced consultation systems to ensure 
stakeholder engagement and public participation in the process of regulation.25 In August 2016, in 
partnership with the private sector and government regulatory agencies, the Brazilian Association 
of Regulatory Agencies (ABAR), a non -governmental organization promoting courses, studies , and 
meetings between regulatory agencies, launc hed a guide on the dimension and indicators for the 
monitoring and evaluation of regulatory activity at federal level.26 RIAs can only lead to non -binding 
recommendations in Brazil, whereas other countries often require a systematic follow -up in such 
cases ; systematic use of ex post evaluation to assess whether regulations achieve their objectives 
is mostly unexplored in Brazil.27 Should the highest authority (director/board/secretary/minister) of 
a public sector entity/agency select an option different from the one established in the RIA, formal 
justification is required.  
2.2.3.2   Transparency and e -government  
2.21.   Brazil continues to attach importance to making laws transparent and readily accessible, 
including by foreigners. Since 2012, the Federal Governm ent has provided citizens, under the 
Access  to Information Act (FOIA), with a unified platform for registering online access to 
information  requests and for foreigners to file an online access to information request 
(http://www.informacao.gov.br ); as of 11  March  2021, its Fala.BR  platform had reached one  million 
requests for access to information directed to bodies and entities of the federal executive power.28 
Under a 2016 National Policy on Open Data, the Feder al Official Gazette  must be available in an 
open format within 180  days of publication.29 Brazilian laws can be obtained from the main legislation 
 
23 Law No. 13,874/2019. Viewed a t: http://www.planalto.gov.br/ccivil_03/_ato2019 -
2022/2019/lei/L13874.htm ; and U.S.  Department of State (2020), 2020 Investment Climate Statements: 
Brazil . Viewed at: https://www.state.gov/reports/2020 -investment -climate -statements/brazil/ . 
24 Decree No.  10,411/2020 . Viewed at: https://www.in.gov.br/en/web/dou/ -/decreto -n-10.411 -de-30-
de-junho -de-2020-264424798 . 
25 OECD (2016), Government at a Glance: Latin America and the Caribbean 2017. Viewed at: 
http://www.oecd.org/gov/government -at-a-glance -latin-america -and-the-caribbean -2017-9789264265554 -
en.htm . 
26 ABAR. View ed at: http://abar.org.br/wp -content/uploads/2016/08/Manual -Abar-03-08-16-SITE-1.pdf. 
27 Concerning ex post  evaluation , according to Decree 10 ,411/2020, during the  first year of each 
presidential mandate all public entities within the federal administration must select and publish in their 
respective websites at least one regulation that will integrate the Regulatory Result Endorsement ( Avaliação de 
Resultado Regula tório (ARR)) agenda. Such regulation must be of general interest of the economic agents or 
users of the services provided by the entity. The regulation assessment must be published before the end of 
each mandate. For the current administration, the ARR age nda is to be published by 14 October 2022 and the 
assessment must be fulfilled by 31 December  2022. Viewed at : https://www.gov.br/economia/pt -
br/assuntos/air/guias -e-documentos/GuiaARRverso5.pdf ; and  OECD (2020), OECD Economic Surveys: 
Brazil  2020, December. Viewed at:  https://www.oecd.org/economy/surveys/Brazil -2020-OECD -economic -
survey -overview.pdf . 
28 Viewed at: https://www.gov.br/acessoainformacao/pt -br/noticias/2021/03/governo -federal -atinge -a-
marca -de-1-milhao -de-pedidos -de-acesso -a-informacao . 
29 In addition to the Fed eral Government, several states and municipalities are already disclosing 
legislation in an open format, as ha s been done by the City Hall of Sao Paulo -SP. Viewed at:  WT/TPR/S/ 432 • Brazil  
 
- 41 - 
 
  website ( http://www4.planalto.gov.br/legislacao ), as w ell as the websites maintained by relevant 
ministries and agencies including the Transparency Platform (Portal da Transparência do Governo 
Federal (Início – Portal da transparência ( portaltransparencia.gov.br ))). Citizens have access  to 
webcasting on the Federal Government's legislation portal and they ca  receive  updates  
on laws ofinterest to them to their email accounts ( http://www.saj.planalto.gov.br/  
saj/Boletins.nsf/frmInscricaoWeb?OpenForm ). Some Brazilian laws are available in English or 
Spanish on the websites of the Ministry of Foreign Affairs and the Ministry  of Economy. Moreover, 
the Brazilian Legal and Legislative Information Portal  (LexML) consolidates within a single database 
legislative and legal information from the main bodies of the legislative,  judiciary , and executive 
branches, as well as some subnat ional entities  (http://projeto.lexml.gov.br/documentacao/resumo -
em-ingles ). Both the House of Representatives  (http://www2.camara.leg.br/atividade -
legislativa/legislacao ) and the Senate ( http://www25.senado.leg.br/web/atividade ) have a 
legislation portal through which users can keep track of all the phases of the law -making process. 
As from 2013 , CAMEX has required that all international trade -related information be published 
online.30 Since 2014, an online information dissemination platf orm, Invest & Export Brazil 
(http://www.investexportbrasil.gov.br/home?l=en ), has provided information including on 
legislation, documentation and procedural requirements, taxation, export fina ncing, trade 
promotion, and business opportunities.  
2.22.   Brazil made significant advances in e -government during the review period.31 It has been 
moving towards digital government by prioriti zing policy issues such as connectivity, data 
governance, interoperabi lity, 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.32 The launch of the revise d 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 
toward s a digitally transformed public sector.33 The Digit al Government Strategy (EGD) (2020 -22) 
is organized in 6 principles, 18 objectives , and 58 initiatives, which means that the EGD provides 
the main guide for the transformation of government through digital technologies. The EGD seeks 
to offer simple and be tter quality public policies and services accessible at any time and place at a 
low cost to the citizen. Progress has been made in the digitali zation 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 d omains, 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 depa rtments 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 launched. Despite 
its array of transparency tools, Brazil has initially seemingly been relatively slow to ado pt 
innovative  e-government technologies to promote transparency and fiscal sustainability, particularly 
at the subnational levels.34 According to the OECD, as the public sector evolves from e -government 
 
http://dados.prefeitura.sp.gov.br/ ; and the City Hall of Recife -PE. Viewed at:  
http://dados.recife.pe.gov.br/es/dataset/diario -oficial . Decree No.  8,777/2016.  
30 CAMEX Resolution No.  78/2013.  
31 EIU (2021), Country Commerce – Brazil , October. Viewed at: http://www.eiu.com/ . 
32 Decree 10 ,332/2020  amended by Decree No.  10,996, 14 March  2022, regulating the Digital 
Government Law (Law No. 14,129/2021), which provides for principles, rules , and instruments for Digital 
Government and for increasing public efficiency.  
33 OECD (2018), Digital Government Review of Brazil: Towards the Digital Transformation of the Public 
Sector , OECD Digital Government Studies, 28 November . Viewe d at: https://www.oecd -
ilibrary.org/docserver/9789264307636 -
en.pdf?expires=1638985121&id=id&a ccname=ocid195767&checksum=192C408B5BFE4C25D07169F84C2BB61
0. 
34 The 2018 IDB Country Development Challenges report pointed out that Brazil needs to use new 
technologies to improve the supply of public services. In the 2020 United Nations e-Government Development 
Index, which measures the motivation and capacity of national governments to use information and 
communication technologies in the delivery of public services, Brazil ranked 54th (44th out of 193 countries 
in 2018), still behind Ur uguay, Chile, and Argentina in the region ; the biennial study ranked Brazil 18th (12th in WT/TPR/S/ 432 • Brazil  
 
- 42 - 
 
  to digital government, a holistic and strengthened go vernment -wide approach would ensure a public 
sector capable of using technology and data not only to increase efficiency but also to develop more 
open, inclusive , and innovative services and policies.35 
2.23.   In all countries, lack of transparency, and thus lack  of public accountability, creates scope for 
administrative discretion and therefore corruption. With a view to fighting corruption, since 
17 December  1997, Brazil has been a signatory to the 1997 OECD Convention on Combating Bribery 
of Foreign Public Offi cials in International Business Transactions (ratification on 24  August  2000, 
implementation 11  June 2002), whose 44  parties (as of 2018) are required to make foreign bribery 
a crime.36 In October 2016, Brazil presented its written follow -up report to the OECD Working Group 
on Bribery that outlined its efforts to implement the recommendations it received during its Phase  3 
evaluation in October 2014; out of 39 recommendations, 18 had been fully implemented, 13  partially 
implemented and 8 not implemented. En forcement efforts in Phase 4 evaluation were scheduled 
for 2022.37 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 obligations 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 threate ned.38 Brazil is also a signatory to 
the 2005 UN Convention against Corruption, the first global comprehensive international 
anti-corruption agreement, whose 189  parties (as of 18  November  2021) are required to establish 
criminal and other offences to cove r a wide range of acts of corruption; it ratified the convention on 
15 June 2005.39 Brazil was among the founders of the 2011 intergovernmental Open Government 
Partnership, which seeks to help governments increase transparency; its latest efforts in this a rea 
are found in its 2021 -23 action plan.40 
2.24.   In February 2021 Brazil's Inter -Agency Committee for Combating Corruption ( Comitê 
Interministerial de Combate à Corrupção  (CICC)) released the National Anti -Corruption 
Strategy  2021-25, which is designed to syste matize and improve the existing mechanisms for 
preventing and detecting corruption crimes and holding those who commit them liable, as well as to 
ensure the coordination of efforts of different public bodies.41 According to the IMF, strengthening 
the effec tiveness of anti -corruption and Anti -Money Laundering/Combating the Financing of 
Terrorism  (AML/CFT) frameworks that would help support investment , and the ongoing transparency 
and open data initiatives as well as the authorities' 2020 Anticorruption Actio n Plan are welcome 
 
2018) countries for e -participation, measuring usage of e -government services . Viewed at: 
https://publicadministration.un.org/egovkb/en -us/data -center ; and IDB (2019), IDB Group Strategy with Brazil 
2019-2022, June. Viewed at: https://idbdocs.iadb.org/ wsdocs/getdocument.aspx?docnum=EZSHARE -
750030607 -12. 
35 OECD (2018), Digital Government Review of Brazil: Towards the Digital Transformation of the Public 
Sector , OECD Digital Government Studies, 28 November . Viewed at: https://www.oecd -
ilibrary.org/docserver/9789264307636 -
en.pdf?expires=1638985121&id=id&accname=ocid195767&checksum=192C408B5BFE4C25 D07169F84C2BB61
0. 
36 In 2021, Brazil ranked 96th out of 180 economies ( 76th out of 168 in 2015), on Transparency 
International's Corruption Perceptions Index (CPI), which measures the perceived level of public sector 
corruption. Same as in 2015, Brazil received a transparency score of 38/100 (higher is better), slightly below 
the Americas regional ave rage and the global average (4 3/100). Viewed at:  
https://www.transparency.org/en/cpi/2021 ; https://www.oecd.org/corruptio n/oecdantibriberyconvention.htm . 
37 OECD (2017), Brazil: Follow-up to the Phase 3 Report & Recommendations , February. Viewed at: 
https://www.oecd.or g/corruption/anti -bribery/Brazil -Phase -3-Written -Follow -Up-Report -ENG.pdf . 
38 OECD (2019), "Law Enforcement Capacity in Brazil to Investigate and Prosecu te Foreign Bribery 
Seriously Threatened, Says OECD Working Group on Bribery", 21  October . Viewed at: 
https://www.oecd.org/corruption/law -enforcement -capacity -in-brazil -to-investigate -and-prosecute -foreign -
bribery -seriously -threatened -says-oecd-working -group -on-bribery.htm . 
39 UN Office on Drugs and Crime, Signature and Ratification Status . Viewed at: 
http://www.unodc.org/unodc/en/treaties/CAC/signatories.html . 
40 Open Government Partnership, Brazil . Viewed at: 
https:/ /www.opengovpartnership.org/members/brazil/ . 
41 The Strategy identifies 15 key action areas: public ethics ; management and governance ; prevention 
of conflicts of interest ; integrity measures ; internal control ; conduct of investigations ; liability of natural  and 
legal persons ; financial and budgetary area ; anti-money laundering measures ; asset return ; interagency 
coordination ; international cooperation and coordination ; scientific research, knowledge building and 
innovation ; institution of ombudsman ; and transparency and exercise of public control.  HSE University Anti -
Corruption Portal (2021), "Brazil Adopts a National Anti -Corruption Strategy", 21  February . Viewed at : 
https://anticor.hse.ru/en/main/news_page/brazil_adopts_a_national_anticorruption_strategy . WT/TPR/S/ 432 • Brazil  
 
- 43 - 
 
  steps.42 The Plan, which includes the review of the current regulation on beneficial ownership to 
intensify the validation and consolidation of information, and the proposal of a new regulation to 
ensure transparency on the final beneficiaries of companies receivi ng public funds are to be fulfilled 
by December 2023.  
2.25.   During the review period, Brazil introduced and implemented further anti -corruption 
legislation. On 25  December  2019, anti -crime legislation was approved (Law 13,869/2019 into force 
as of January  2020),  which included several anti -corruption measures such as regulation of 
immunity/leniency agreements (for information provided by a subject in exchange for reduced 
sentence) that have been widely used since 2015 during the Operation Carwash ( Operação 
Lava Jato) under the so -called Clean Company Act (Law 12 ,846/2013) , which remains in place in its 
original form.43 The 2019 legislation also strengthened the whistle -blower mechanisms, permitting 
anonymous information about crimes against the public administrati on and related offen ces. 
According to the OECD, although whistleblowing procedures have been strengthened , coordination 
among different agencies could be further improved and the 2019 law on the abuse of authority was 
unnecessarily vague , leaving room for retaliation from powerful suspects by allowing prosecution of 
officials if they prosecuted a case "without just cause".44 Enhanced transparency requirements and 
monitoring procedures have been adopted in the context of C OVID -19 emergency aid.45 
2.26.   Since 2003,  the Ministry of Transparency, Oversight and the Comptroller General (CGU) has 
been in charge of increasing administrative transparency through internal control actions, public 
auditing, prevention and fighting of corruption, and its ombudsman role. The 20 10 CGU Pro -Ethics 
Company certification encourages the voluntary adoption of integrity measures by companies 
through the public recognition of those that, regardless of their size and field of activity, are truly 
committed to preventing and fighting corrup tion and other types of fraud.46 In FY2018/19, 
222 companies applied for the certification and 26 companies were recognized as Pro -Ethics.  
2.27.   In 2020 , Brazil concluded an agreement on Trade Rules and Transparency with 
the United  States . The agreement contains annexes: on Good Regulatory Practices, Trade 
Facilitation , and Anti -corruption.47 
 
42 According to the IDB, bureaucratic red tape  limits Brazil 's international integration . IDB (2019), 
IDB Group Strategy with Brazil 2019 -2022, June. Viewed  at: 
https://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=EZSHARE -750030607 -12; IMF (2021), Brazil: 
2021 Article  IV Consultation -Press Release; Staff Report; and Statement by the Executive Director for Brazil , 
Country Report No.  2021/217, 22  September. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2021/09/22/Brazil -2021-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-466076 ; and Anticorruption Plan . Viewed at: 
https://www.gov.br/cgu/pt -br/anticorrupcao/plano -anticorrupcao.pdf . 
43 Detailed information on Law No.  12,846 of 1  August  2013 and its implementing Decree No.  8,420 of 
18 March  2015, which remain in place, may be found in the previous Report . Operation Carwash ha d 
uncovered a complex web of public sector corruption, contract fraud, money laundering, and tax evasion 
stemming f rom systematic overcharging for government contracts, particularly at parastatal oil company 
Petrobras , as well as credit subsidies or tax expenditures to the benefit of specific companies.  WTO document 
WT/TPR/S/358/Rev.1, 18  October  2017; OECD (2020), OECD Economic Surveys: Brazil 2020 , December. 
Viewed at: https://www.oecd.org/economy/surveys/Brazil -2020-OECD -economic -survey -overview.pdf ; and 
U.S. Department  of State (2020), 2020 Investment Climate Statements: Brazil . Viewed at: 
https://www.state.gov/reports/2020 -investment -climate -statements/brazil/ . 
44 OECD (2020), OECD Economic Surveys: Brazil 2020 , December. Viewed at: 
https://www .oecd.org/economy/surveys/Brazil -2020-OECD -economic -survey -overview.pdf . 
45 IMF (2021), Country Report No.  2021/217. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2021/09/22/Brazil -2021-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-466076 . 
46 Viewed at: http://www.cgu.gov.br/assuntos/etica -e-integridade/empresa -pro-etica. 
47 Viewed at: http://siscomex.gov.br /acordos -comerciais/protocolo -atec-relacionado -a-regras -
comerciais -e-de-transparencia/ . WT/TPR/S/ 432 • Brazil  
 
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  2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.3.1.1   Features  
2.28.   Brazil, a foundin g Member of the WTO, participates actively in its work, including as a 
prominent voice for developing countries, and within the BRICS group of leading emerging 
economies, and remains committed to strengthening the multilateral trade system. During the 
review period , it participated in all WTO joint initiatives, i.e. e-commerce, investment facilitation for 
development, MSMEs, and domestic regulation of trade in services. Brazil is a signatory to the joint 
declaration of 31  January  2022, in support of MC12 an d pointing into action in areas such as the 
WTO response to pandemics, fisheries subsidies, and multilateral agriculture negotiations, as well 
as the reform of the WTO's negotiating function, dispute settlement function, and monitoring and 
deliberative fun ction.48 It accords at least most-favoured -nation (MFN)  treatment to trading 
partners, including non -WTO Members. Brazil's trade policies have been reviewed seven  times; its 
last Review was held on 17 and 19  July 2017.  
2.29.   During the review period, Brazil unde rtook efforts to expand its WTO commitments. Brazil has 
been an observer to the WTO Committee on Government Procurement since October 2017; it 
submitted its application for accession to the WTO  Agreement on Government Procurement  (GPA) 
on 18  May 2020, its Replies to the Checklist of Issues in October 2020 as part of the accession 
process, its initial market offer in February 2021, a revised market access offer in November  2021, 
and a final offer in June 2022.49 The GPA accession seeks the improvement of  competitiveness and 
FDI attraction within the country's government procurement market. 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 compl etion of internal procedural requirements.50 
Furthermore, it has submitted its application to join the Agreement on Trade in Civil Aircraft 
in June 2022.51 Concerning special and differential treatment (S&D), in March 2019 Brazil announced 
that it will beg in to forgo S&D in the WTO negotiations.  
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 involved 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 la w 
(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 
 
48 WTO document WT/GC/W/841 , 31 January  2022. 
49 SECEX launched a public consultation for a period of 60 days, to collect contributions on the Brazilian 
accession terms to the GPA ( Circular No. 55/2020 o f CAMEX); these c ontributions c ould be submitted until 
20 October  2020. Thomson Reuters, Internationa l Trade in Goods and Services in Brazil . Viewed at: 
https://uk.practicallaw.thomsonreuters.com/w -011-
0773?transitionType=Default&contextData=(sc.Default)&firstPage=true#:~:text=In%20general%20terms%2
C%20the%20Brazilian,Brazilian%20competitiveness%20by%20reducing%20b ureaucracy ; and ApexBrasil. 
Viewed at: https://portal.apexbrasil.com.br/regulatory_report/the -secretariat -of-foreign -trade -at-the-ministry -
of-economy -secex -me-launched -a-public -consultation -for-a-period -of-60-days-to-collect -contributions -on-the-
brazilian -accession -terms -to-the-world -t/. 
50 CONFAC. Viewed at: http://camex.gov.br/images/PDF/Confac/21 -04-05_PT_CONFAC_2021 -22.pdf . 
51 WTO document TCA/19, 20  June 2022.  
52 The new complainant cases were Canada – Measures Concerning Trade in Commercial 
Aircraft  (DS522); China – Certain Measures Concerning Imports of Sugar  (DS568); India – Measures 
Concerning Sugar and Sugarcane  (DS579); and European  Union  – Measures Concerning the Importation of 
Certain Poultry Meat Preparations from Brazil  (DS607). The new respondent case was Brazil – Measures 
Concerning the Importation of PET Film from Peru and Imported Products in General (DS596) with Peru as a 
complainan t. The new third party cases are quoted as follows: DS604, DS602, DS601, DS600, DS599, DS598, 
DS597, DS595, DS593, DS592, DS591, DS590, DS589, DS588, DS585, DS584, DS583, DS582, DS581, 
DS580, DS578, DS577, DS576, DS573, DS567, DS566, DS564, DS562, DS561, D S560, DS559, DS558, 
DS557, DS556, DS554, DS552, DS551, DS550, DS548, DS547, DS546, DS545, DS544, DS543, DS542, 
DS541, DS539, DS534, DS533, DS526, and DS523.  Viewed at: https://ww w.wto.org/english/thewto  
_e/countries_e/brazil_e.htm . WT/TPR/S/ 432 • Brazil  
 
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  violation by a panel report but having chosen to appeal before the deadlocked WTO  Appellate  Body 
(the so -called "appeal in the void").53 
2.3.1.2   Trade -related technical assistance  
2.31.   Between 2015 and 2018, Brazil benefited from WTO trade -related assistance via participation 
in 72 training activities, inter alia,  relating to the Information Technology Agreement, notifica tions 
(agriculture, import licensing procedures), rules (trade remedies, fisheries subsidies/IUU fishing), 
SPS/TBT, public health, dispute settlement, intellectual property rights/TRIPS, government 
procurement/GPA , and services/GATS.54 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).55 
2.3.1.3   Notifications  
2.32.   During the review period, Brazil made many notifications to the WTO (Table  A2.1); it also 
submitted tariff and trade data annually to the WTO Integrated Data Base.56 Brazil's trade -related 
measures in response to the pandemic's crisis, notifications submitted by  Brazil, and national enquiry 
points for further information as well as proposals sub mitted on COVID -19 are available online.57 
According to the authorities, the country's very good record of notifications was publicly recognized 
by the WTO D irector -General  during her April 2022 visit to Brazil, and there are no outstanding 
notifications.  
2.3.2   Regional trade agreements and preferential trade arrangements  
2.33.   Trade agreements have been a pillar of Brazil's stated strategy of insertion into the world 
economy and its increase of productivity.58 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 Integrat ion 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 (European  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 (Table  2.1 and Section  2.3.2.1).59 In October  2020, it also signed and 
implemented a Protocol updating the 2011 framework Brazil -United  States Agreement on Trade and 
 
53 According to the Secretary of Foreign Trade and Economic Affairs at the Ministry of Foreign Affairs, 
the current paralysis of the WTO Appellate  Body is at the origin of this initiative aimed to protec t the country's 
legitimate commercial interests within the framework of the multilateral trading system and to promote the full 
functioning of the rules -based system and fundamental principles of the WTO. Once the WTO  Appellate  Body is 
back to normal, the initiative will have served its purpose. Furthermore, according to the Secretary of Foreign 
Trade at the Ministry of Economy, Brazil is committed to the WTO reform process, as well as the timely 
restoration of its Appellate  Body. However, similar to other Members, Brazil cannot condone the use of the 
current situation, in detriment to its productive sector. A group of 25 WTO Members, including the 
European  Union  (27 countries)  and Brazil , tried to alleviate the problem of the Appellate  Body by creating a 
plurilateral interim appeals system where disputes between its participants have a final decision.  Valor 
International  (2022), "Brazil to Adopt Unilateral Retaliation in Foreign Trade", 12  January . Viewed at: 
https://valorinternational.globo.com/business/news/2022/01/12/brazil -to-adopt -unilateral -retaliation -in-
foreign -trade. ghtml ; and Official Gazette , Provisional Measure No.  1,098 of 26  January  2022. Viewed at: 
https://www.in.gov.br/en/web/dou/ -/medida -provisoria -n-1.098 -de-26-de-janeiro -de-2022-376276124 . 
54 WTO, Global Trade -Related Technical Assistance Database, Brazil . Viewed at: 
http://gtad.wto.org/ben_country.aspx?entityID=153 . 
55 WTO, Technical A ssistance Management System, Brazil . Viewed at: 
https://tamis.wto.org/ta_beneficiaries/8789 . 
56 WTO document G/MA/IDB/2/Rev.54, 28  September  2021.  
57 WTO, COVID -19 and Trade – Brazil . Viewed at: 
https://www.wto.org/english/tratop_e/covid19_e/covid_details_by_country_e.htm?country=BRA  
58 Viewed at: https://www.gov.br/produtividade -e-comercio -exterior/pt -br/assuntos/comercio -
exterior/publicacoes -secex/serie -acordos-comerciais/arquivos/1 -acordos -comerciais.pdf . 
59 The Agreements with Chile and Colombia are aimed to boost the MERCOSUR -Pacific Alliance 
relationship in light of  the July 2018 MERCOSUR -Pacific Alliance Puerto Vallarta Summit commitments, with a 
focus on free trade and regional economic integration includ ing issues such as services, investment , and trade 
facilitation.  WT/TPR/S/ 432 • Brazil  
 
- 46 - 
 
  Economic Cooperation , which addresses trade facilitation, good regulatory practices , and 
anti-corruption (Section  2.2.3.2). The majority of its RTAs (e.g. with Guyana/Saint Kitts and Nevis 
(a LAIA agreement, see WT/COMTD/84), and individual MERCOSUR agreements, see documents 
WT/COMTD/11, WT/COMTD/59, WT/COMTD/69, WT/COMTD/76, WT/COMTD/77, WT/COMTD/78, 
WT/COMTD/84, and L/5689) are under the purview of the WTO Committee on Trade and 
Development and some remain to be notified. The sco pe of the different RTAs varies widely and four 
of them also cover services (Table  2.1 and Section  4.4.2).60 
Table 2.1 Brazil's RTAs in force: main features, as of 25  January  2022  
RTAs in force  
RTAs entered into force during the review period (2017 -22) 
Brazil – Chile (AAP.CE 35.64)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Chile  
WTO consideration status  
 
WTO document series   
12/12/2018  
25/01/2022  
 
Goods and services  
1.94% of total imports; 2.50% of total exports  
Notified  as a change to the LAIA TM  80. Services 
aspects not y et notified.  
WT/COMTD/RTA15/N/1/Add.35/Supp.30  
Brazil – Paraguay (AAP.CE 74)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Paraguay  
WTO consideration status  
WTO document series   
11/02/2020  
28/09/2020  
2027 
Automotive goods 
1.56% of total imports; 1.08% of total exports  
Notified as a change to the LAIA TM  80 
WT/COMTD/RTA15/N/1/Add.229  
MERCOSUR – Colombia (AAP.CE 72)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Colombia  
WTO consideration status  
WTO document series   
21/07/2017  
20/12/2017  
2018 
Goods  
0.93% of total imports; 1.19% of total exports  
Notified as a change to the LAIA TM 80 
WT/COMTD/RTA15/N/1/Add.229  
MERCOSUR – Egypt  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Egypt  
WTO consideration status  
WTO document series   
02/08/2010  
01/09/2017  
2026 
Goods  
0.26% of total imports; 0.72% of total exports  
Factual presentation issued  
WT/COMTD/RTA10  
RTAs entered into force before 2017   
MERCOSUR – Southern African Customs Union (SACU)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with SACU  
WTO consideration status  
WTO document series   
01/04/2016  
2016 
 
Goods  
0.44% of total imports; 0.43% of total exports  
Factual presentation issued  
WT/COMTD/RTA11  
Brazil – Bolivarian Republic of Venezuela (AAP.CE 69)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with the Bolivarian Republic of 
Venezuela  
WTO consideration status  
WTO document series   
26/12/2012  
14/10/2014  
 
Goods  
0.08% of total imports; 0.39% of total exports  
 
Notified as a change to the LAIA TM 80  
WT/COMTD/RTA15/N/1/Add.68  
 
60 In LAIA/ALADI terms, a partial scope agreement means that not  all LAIA parties have ratified it, but 
the meaning is different in the WTO context. According to the Parties, most of the original partial scope 
agreements now cover 80% -90% of trade among participating trading partners, and therefore the authorities 
consider them as FTAs . WT/TPR/S/ 432 • Brazil  
 
- 47 - 
 
  RTAs in force  
MERCOSUR – Israel  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Israel  
WTO consideration status  
WTO document series   
18/12/2007  
23/12/2009 (for Brazil on 28/04/2010)  
2020 (for Brazil in January 2019)  
Goods  
0.52% of total imports; 0.21% of total exports  
Factual present ation issued  
WT/REG398  
MERCOSUR – India  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with India  
WTO consideration status  
WTO document series   
25/01/2004  
01/06/2009  
2009 
Goods  
3.08% of total imports; 1.71% of total exports  
Factual presentation issued  
WT/COMTD/N/31 and WT/COMTD/RTA/6  
MERCOSUR – Cuba (AAP.CE 62)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Cuba  
WTO consideration status  
WTO document series   
21/07/2006  
02/07/2007  
 
Goods  
0.002% of total imports; 0.10% of total exports  
Notified as a change to the LAIA TM 80  
WT/COMTD/RTA15/N/1/Add.61  
Brazil – Suriname (AAP.A25 TM 41)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Suriname  
WTO consideration status  
WTO document series   
21/04/2005  
26/07/2006  
 
Goods (rice)  
0.001% of total imports; 0.01% of total exports  
Notified as a change to the LAIA TM 80  
WT/COMTD/RTA15/N/1/Add.157  
MERCOSUR – Peru (AAP.CE 58)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Peru  
WTO consideration status  
WTO document series   
30/11/2005  
02/01/2006  
 
Goods  
0.53% of total imports; 1.09% of total exports  
Notified as a change to the LAIA TM 80  
WT/COMTD/RTA15/N/1/Add.57  
MERCOSUR – Andean Community (except 
Plurinational State of Bolivia and P eru) (AAP.CE 59)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Colombia, Ecuador , and the 
Bolivarian Republic of Venezuela  
WTO consideration status  
WTO document series   
 
18/10/2004  
05/01/2005  
 
Goods  
1.06% of total imports; 1.90% of total exports  
 
Notified as a change to the LAIA TM 80  
WT/COMTD/RTA15/N/1/Add.58  
Brazil – Guyana – Saint Kitts and Nevis 
(AAP.A25TM  38) 
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Guyana/San Cristobal)  
WTO consideration status  
WTO document series   
27/06/2001  
31/05/2004  
 
Goods  
0.003% of total imports; 0.04% of total exports  
Notified as a change to the LAIA TM 80  
WT/COMTD/RTA15/N/1/Add.155  
Brazil – Mexico (AAP.CE 53)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Mexico  
WTO consideration status  
 
WTO document series   
03/07/2002  
02/05/2003  
2003 
Goods  
2.03% of total imports; 1.98% of total exports  
Notified under the Enabling Clause and as a change 
to the LAIA TM 80  
Factual presentation issued  
WT/COMTD/RTA7 & 
WT/COMTD/RTA15/N/1/Add.52  WT/TPR/S/ 432 • Brazil  
 
- 48 - 
 
  RTAs in force  
MERCOSUR – Mexico (AAP.CE 54 and AAP .CE 55)  
Date of signature  
Entry into force  
End of transition period  
Coverage (selected features)  
Brazil's merchandise trade with Mexico  
WTO consideration status  
WTO document series   
05/07/2002 -27/09/2002  
05/01/2006 -01/01/2003  
 
Goods (CE 54) – Automotive Agreement (CE 55)  
2.03% of total imports; 1.98% of total exports  
Notified as a change to the LAIA TM 80  
WT/COMTD/RTA15/N/1/Add.53 & Add.54  
Brazil – Bolivarian Republic of Venezuela 
(AAP.A14TM  15) 
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with the Bolivarian Republic of 
Venezuela  
WTO consideration status  
 
WTO document series   
04/07/1995  
18/10/1998  
 
Goods and services  
 
0.08% of total imports; 0.39% of total exports  
Goods aspects notified as a change to the LAIA TM 
80. Services aspects not yet notified  
WT/COMTD/RTA15/N/1/Add.115  
MERCOSUR – Plurinational State of Bolivia 
(AAP.CE  36) 
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with the Plurinational State of 
Bolivia  
WTO consideration status  
WTO document series   
17/12/1996  
28/02/1997  
 
Goods  
0.62% of total imports; 0.54% of total exports  
Notified as a change to the LAIA TM 80  
WT/COMTD/RTA15/N/1/Add.36  
MERCOSUR – Chile (AAP.CE 35)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Chile  
WTO consideration status  
 
WTO document series   
25/06/1996 (goods)  
01/10/1996 (goods) – 19/06/2011 (services)  
 
Goods and services  
1.94% of total imports; 2.50% of total exports  
Goods aspects notified as a change to the LAIA TM 
80. Services aspects not yet notified  
WT/COMTD/RTA15/N/1/Add.35  
LAIA – Seeds (AAP.AG 2)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
WTO consideration status  
WTO document series   
22/11/1991  
18/06/1993  
 
Goods (seeds)  
Notified as a change to the LAIA TM 80  
WT/COMTD/RTA15/N/1/Add.80  
Argentina – Brazil – Uruguay (AAP.A14TM 6)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Argentina and Uruguay  
WTO consideration status  
WTO document series   
27/06/1992  
27/06/1992  
 
Environment -related goods  
6.08% of total imports; 4.97% of total exports  
Notified as a change to the LAIA TM 80  
WT/COMTD/RTA15/N/1/Add.106  
MERCOSUR (AAP.CE 18)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Argentina, Paraguay and 
Uruguay  
WTO consideration status  
 
WTO document series   
26/03/1991 (goods) -15/12/1997 (services)  
29/11/1991 (goods) -07/12/2005 (services)  
2015 
Goods and s ervices  
7.64% of total imports; 6.05% of total exports  
 
Notified under the Enabling Clause and GATS 
Article V and as a change to the LAIA TM 80  
WT/COMTD/1, S/C/N/388, WT/REG238 and 
WT/COMTD/RTA15/N/1/Add.18  
• MERCOSUR – Accession of the Bolivarian Republic 
of Venezuela  
Entry into force  
WTO consideration status   
 
12/08/2012  
Not yet notified  WT/TPR/S/ 432 • Brazil  
 
- 49 - 
 
  RTAs in force  
Brazil – Argentina (AAP.CE 14)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Argentina  
WTO consideration status  
WTO document series   
20/12/1990  
20/12/1990  
 
Automotive goods  
5.29% of total imports; 4.23% of total exports  
Notified as a change to the LAIA TM 80  
WT/COMTD/RTA15/N/1/Add.14  
Global System of Trade Preferences among 
Developing Countries (GSTP)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with GSTP members  
WTO consideration status  
WTO document series   
 
13/04/1988  
19/04/1989  
 
Goods  
25.47% of total imports; 27.90% of total exports  
No report adopted  
L/6564  
LAIA – Cultural Goods (AAR.CEYC 7)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
WTO consideration status  
WTO document series   
27/10/1988  
01/01/1989  
 
Goods  
Notified as a change to the LAIA TM 80  
WT/COMTD/RTA15/N/1/Add.77  
Brazil – Uruguay (AAP.CE 2)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Uruguay  
WTO consideration status  
WTO document series   
20/12/1982  
16/10/1985  
 
Automotive goods/free trade zones  
0.79% of total imports; 0.74% of total exports  
Notified as a change to the LAIA TM 80  
WT/COMTD/RTA15/N/1/Add.2  
LAIA – Agreement on Regional Tariff Prefe rence 
(AAR.PAR  4) 
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with LAIA members  
WTO consideration status  
WTO document series   
 
27/04/1984  
01/07/1984  
 
Goods  
14.03% of total imports; 14.36% of total exports  
Notified as a change to the LAIA TM 80  
WT/COMTD/RTA15/N/1/Add.74  
LAIA – Preferences in favour of Paraguay (AAR.AM 3)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Paraguay  
WTO consideration status  
WTO document series   
30/04/1983  
01/07/1984  
 
Goods  
1.56% of total imports; 1.08% of total exports  
Notified as a change to the LAIA TM 80  
WT/COMTD/RTA15/N/1/Add.73  
LAIA – Preferences in favour of Ecuador (AAR.AM 2)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with Ecuador  
WTO consideration status  
WTO document series   
30/04/1983  
01/05/1983  
 
Goods  
0.05% of total imports; 0.32% of total exports  
Notified as a change to the LAIA TM 80  
WT/COMTD/RTA15/N/1/Add.72  
LAIA – Preferences in favour of the Plurinational 
State of Bolivia (AAR.AM 1)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with the Plurinational State of 
Bolivia  
WTO consideration status  
WTO document series   
 
30/04/1983  
01/05/1983  
 
Goods  
0.62% of total imports; 0.54% of total exports  
Notified as a change to the LAIA TM 80 
WT/COMTD/RTA15/N/1/Add.71  WT/TPR/S/ 432 • Brazil  
 
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  RTAs in force  
Latin American Integration Association (LAIA)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with LAIA members  
WTO consideration status  
WTO document series   
12/08/1980  
18/03/1981  
 
Goods  
 
No report adopted  
L/5342, WT/COMTD/RTA15  
• LAIA – Accession of Panama  
Entry into force  
WTO consideration status   
03/05/2012  
Not yet notified  
• LAIA – Accession of Cuba  
Entry into force  
WTO document series   
26/08/1999  
WT/COMTD/N/10  
Protocol on Trade Negotiations (PTN)  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Brazil's merchandise trade with PTN members  
WTO consideration status  
WTO document series   
08/12/1971  
11/02/1973  
 
Goods  
10.85% of total imports; 13.16% of total exports  
No report adopted  
L/3598  
Note:  The LAIA/ALADI reference is indicated in brackets for some RTAs notified as a change to the 
LAIA 1980 Treaty of Montevideo (LAIA TM 80).  Partial scope agreements cover some and not 
all LAIA parties. Further details can be found at: http://www.aladi.org  and 
http://siscomex.gov.br/acordos -comerciais/ . Merchandise trade data covering both preferential and 
non-preferential treatment are based on 2021 figures.  
Source : WTO Secretariat, based on information from the WTO RTA database. Viewed at: http://rtais.wto.org ; 
and UN Comtrade database.  
2.34.   In December 2020, Brazil's CAPTA system that provided information on tariff 
preferences  under Brazil 's RTAs was replaced by two user -friendly completely updated S iscomex  
web pages, i.e. Trade Agreements  (https://www.gov.br/siscomex/pt -br/informacoes/a cordos -
comerciais ) and  Tariff Preferences ( https://www.gov.br/siscomex/pt -br/informacoes/acordos -
comerciais/preferencias -tarifarias ). Information on ta riff preferences of MERCOSUR agreements 
signed with Israel, Egypt , and SACU is available in the HS 2017 nomenclature.  
2.3.2.1   MERCOSUR  
2.35.   MERCOSUR remains Brazil's main, albeit declining, most important  preferential agreement in 
terms of value of trade, accounting fo r some 5.9% (10.5% in 2017) of its total merchandise exports 
and 7.4% (8.5% in 2017) of its total merchandise imports in  2020 (Tables  A1.4 and A1.5). Brazil is 
a MERCOSUR founding member together with Argentina, Paraguay, and Uruguay; the accession of 
the Plurinational State of Bolivia is pending whereas that of the Bolivarian Republic of Venezuela was 
indefinitely suspended on 5  August  2017.61 This suspension does not affect the validity of the 
preferential trade agreement between Brazil and the Bolivarian  Republic of Venezuela.  
2.36.   In the December 2019 Heads of States summit, five trade -related agreements on the following 
issues were signed: trade facilitation (eliminating fees and taxes on mutual trade); geographical 
indications for numerous products; a revis ion of MERCOSUR's Trade in Services Protocol with respect 
to financial services; a framework for concluding trade facilitation initiatives in the area of technical 
regulations; and a mutual recognition agreement for digital signatures. In November 2019, an  
agreement on the mutual recognition of authorized economic operators was signed by MERCOSUR 
 
61 The block was established in 1991 by the Treaty of Asunción, and its institutional structure was 
defined in the 1994 Protocol of Ouro Preto. MERCOSUR is incorporated in to the LAIA legal regime under  
Economic Complementarity Agreement No.  18. LAIA economic  complementarity agreements are open for 
accession by any LAIA country , through prior negotiations . The Protocol of Accession of the 
Plurinational  State  of Bolivia to MERCOSUR was signed by all its State Parties in July 2015 and is in the process 
of being incorporated by the congresses of the State Parties.  More information on MERCOSUR issues may be 
found in WTO document WT/TPR/S/358/Rev.1, 18  October  2017. MERCOSUR, MERCOSUR Countries . Viewed 
at: https://www.mercosur.int/en/about -mercosur/mercosur -countries/ ; and Rio Times  (2021), "Bolivia Has 
Renewed Its Request to Be Installed as a Full Member of Mercosur", 26  March . Viewed at: 
https://www.riotimesonline.com/brazil -news/mercosur/bolivia -renewed -its-request -to-be-incorporated -as-a-
full-member -of-mercosur/ . WT/TPR/S/ 432 • Brazil  
 
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  Customs General Directors. An automotive agreement between Brazil and Paraguay was also signed. 
In July 2019 MERCOSUR Parties agreed to eliminate roaming taxes in telecommunications 
within  MERCOSUR countries. In December 2021 MERCOSUR Parties agreed to incorporate into 
the MERCOSUR Services Protocol disciplines on postal services, domestic regulation , and 
telecommunications, and a mutual recognition agreement on the  qualification of certain 
professional  services.  
2.37.   As part of MERCOSUR, Brazil maintains preferential trade agreements with Chile, the 
Plurinational State of Bolivia, Mexico, Peru, Colombia, Ecuador, the Bolivarian Republic of  Venezuela, 
and Cuba, all under the LAIA auspices as well as with Egypt, India, SACU,  and Israel  (Table  2.1). In 
November 2018 (in force as from 25  January  2022), Brazil and Chile signed an RTA expanding, 
updating , and moderni zing their non -tariff commitments under ACE No.  35 of  1996 (Ta ble 2.1); it 
includes new disciplines on services and investment, government procurement, TRIPS, e -commerce, 
and trade facilitation and removes roaming fees between both Parties. The MERCOSUR -Egypt 
agreement , which is the only extra regional agreement that entered into force in the review period 
(2017), allows for tariff preferences on 10,166 eight -digit tariff lines ranging from 60% to 100% as 
from 1  September  2022 and the tariff dismantling is to be complete d in September 2026; 
104 lines are excluded.  
2.38.   The Common Market Group (GMC) and the Council for the Common Market (CMC) remain the 
main executive and decision -making bodies of MERCOSUR. MERCOSUR's Trade Commission is 
responsible for the application of commo n trade policy instruments. MERCOSUR member States 
share a CET, which entered into force on 1  January  1995; its rates range from zero to 35% and 
average 11.35% at the 8 -digit level. Various exceptions (national or sectoral) for an established 
period have b een allowed through Decisions by the CMC. All  MERCOSUR member States are 
currently authorized to have an exception list (List of Exceptions to the Common External 
Tariff (LETEC)), although there are different provisions and timeframes for each country. A J uly 2015 
Decision CMC 26/15 authorized Brazil to maintain a basic list of 100  national exceptions to the 
CET within its WTO bound rates until 31  December  2021 and was extended until 31  December  2028 
via the December 2021 Decision CMC 11/21; it may also req uest temporary reduction of the CET for 
capital goods and informatics and telecommunication goods with tariffs lower than those of the CET 
in line with the December 2021 Decision CMC 08/21. There are also exceptions to the CET for toys, 
dairy products , and peaches. The sugar and automotive sectors are the only exclusions to the free 
movement of goods within MERCOSUR, and there is no schedule for the inclusion of sugar in 
MERCOSUR's free trade regime. Trade in the automotive sector between Brazil and MERCOSU R 
members remains largely regulated by bilateral agreements, two of which were negotiated or 
renegotiated in the period under review (Brazil -Paraguay and Brazil -Argentina, Table  2.1). During 
the review period , around 100 CAMEX resolutions introduced custom s tariff changes. For example, 
under CAMEX Resolution  27, 24  April 2018, Brazil revoked the 2% tariff rate quotas set in 2017 on 
certain plastics  (NCM  3920.91.00 and 3906.90.49), thus resetting tariffs at their 16% and 
14% levels.62 Under CAMEX Resolution 269, 4  November  2021, Brazil temporarily and unilaterally 
cut its tariffs by 10% until 31  December  2022, invoking Article  50 of the Treaty of 
Montevideo  (1980). An additional reduction of 10% was approved 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  2023.63 A proposal for a 10% flat -rate reduction of the CET – excluding products 
comprised in MERCOSUR 's current exceptions – is under discussion among MERCOSUR Par ties. 
Negotiations with MERCOSUR partners on CET exceptions and tariff reductions, renegotiation of 
bilateral free trade agreement s, and plans to consolidate parallel RTAs are still ongoing.  
2.39.   The 2004 Agreement on the Elimination of Double Collection of CET  and the Distribution of 
Customs Revenue in MERCOSUR, approved by Decision 54/04, grants local MERCOSUR status to 
imported products that conform to the Common Tariff Policy (PAC). Its implementation consists of 
 
62 Global Trade Alert, Brazil: New Changes to the List of Exceptions to the Mercosur Common External 
Tariff. Viewed at: https://www.globaltradealert.org/intervention/61313/import -tariff-quota/brazil -new-
changes -to-the-list-of-exceptions -to-the-mercosur -common -external -tariff. 
63 This action was intended to mitigate the negative effects of the  pandemic and the Ukraine  war, 
including rising living expenses for lower -income Brazilians and higher costs for companies that use these 
products in the production and commerciali zation of goods ; it does not affect the duty exemptions already in 
place und er the special  Ex Tarifario  or any other Brazilian import regime.  HKTDC Research (2022), "Brazil 
Again Lowers Import Duties on Most Tariff Lines", 27  May. Viewed at: 
https://research.hktd c.com/en/article/MTA3MzM1MTMyNg . WT/TPR/S/ 432 • Brazil  
 
- 52 - 
 
  three stages.64 The first stage entails the granting of a zero CET rate to all merchandise imported 
by a member country that is subject to 100% preferential tariff treatment under 
MERCOSUR  agreements with third parties. The second stage would cover the remaining goods.65 
The third stage would require implementing a customs revenue distribution mechanism and the 
unification of customs systems in all member States. Since 2012, negotiations regarding the 
implementation of these three phases according to Decisions CMC  10/10 a nd 56/10 have been 
largely stalled due to difficulties to advance beyond the first phase. Under Decision CMC 27/2010, 
MERCOSUR approved the MERCOSUR Customs Code, which has yet to come into force.  
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 E FTA countries were in principle concluded in 2019.66 Both agreements are 
more comprehensive than the agreements sig ned 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 technical 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 E uropean  Union is to provide full tariff elimination on  92% 
of imports from MERCOSUR and 95% of its tariff lines, alon g with partial concessions under TRQs, 
fixed margins of preferences , and entry prices, thus raising its coverage to 99% in terms of EU  tariff 
lines.67 MERCOSUR 's offer is to allow for full tariff elimination on 91% of tariff lines; MERCOSUR also 
granted pa rtial concessions to the E uropean  Union in 32 tariff lines. As of June 2022,  the agreement 
with EFTA had not been made public; however, it is understood to be similar to the EU -MERCOSUR 
agreement in terms of trade liberalization and disciplines covered.68 Brazil estimates that at the end 
of the implementation period, 97% of EFTA's exports would be duty -free or partially liberali zed in 
MERCOSUR, with an equivalent figure of 98% -99% of MERCOSUR exports to the EFTA market 
depending on the importing country.69 
2.41.   Since Brazil's last Review , MERCOSUR has held various rounds of negotiations for 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.70 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 Republic of Korea, Indonesia, Singapore , and Viet  Nam, 
whereas those on Canada were under way as of June 2022.71 Regarding the regional sphere, 
 
64 MERCOSUR CMC/DEC 10/10.  
65 This stage is subject to the ratification and entry into forc e of the Customs Code. 
MERCOSUR  CMC/DEC 27/10 and MERCOSUR CMC/DEC 34/11.  
66 Viewed at: https://www.gov.br/produtividade -e-comercio -exterior/pt -br/assuntos/comercio -
exterior/publicacoes -secex/serie -acordos -comerc iais/arquivos/1 -acordos -comerciais.pdf . 
67 On 28  June 2019, the European  Union  and MERCOSUR reached a political agreement for an 
ambitious, balanced , and comprehensive trade agreement covering issues such as tariffs, rules of origin, TBT, 
SPS measures, services, government procurement, IP, sustainable development, and SMEs . The trade 
agreement with the E uropean  Union is the most ambitious agreement on services that Brazil has negotiated so 
far. The agreement guarantees access to maritime services for the first time in MERCOSUR. It is also the first 
agreement signed by Brazil with provisions on e -commerce. European Commission, Mercosur . Viewed at:  
https://ec.europa.eu/trade/policy/countries -and-regions/regions/mercosur/ ; Thomson Reuters, International 
Trade in Goods and Services in Brazil . Viewed at: https://uk.practicallaw.th omsonreuters.com/w -011-
0773?transitionType=Default&contextData=(sc.Default)&firstPage=true#:~:text=In%20general%20terms%2
C%20the%20Brazilian,Brazilian%20competitiveness%20by%20reducing%20bureaucracy ; and EIU (2021), 
Country Commerce – Brazil , October. View ed at: http://www.eiu.com/ . 
68 Thomson Reuters, International Trade in Goods and Services in Brazil . Viewed at: 
https://uk.p racticallaw.thomsonreuters.com/w -011-
0773?transitionType=Default&contextData=(sc.Default)&firstPage=true#:~:text=In%20general%20terms%2
C%20the%20Brazilian,Brazilian%20competitiveness%20by%20reducing%20bureaucracy . 
69 Viewed at: https://www.gov.br/mre/pt -br/media/2019 -09-03-acordo -mercosul -efta-2.pdf. 
70 Viewed at: https://www.gov.br/produtividade -e-comercio -exterior/pt -br/assuntos/comercio -
exterior/publicacoes -secex/serie -acordos -comerciais/arquivos/1 -acordos -comerciais.pdf . 
71 Ministry of Economy,  Publications of the Secretariat of International Trade . Viewed at: 
https://www.gov.br/produtividade -e-comercio -exterior/pt -br/assuntos/comercio -exterior/publicacoes -
secex/publicacoes#series_ancora ; https://www.gov.br/produtividade -e-comercio -exterior/pt -
br/assuntos/comercio -exterior/publicacoes -secex/serie -acordos -comerciais/arquivos/indonesia -estudo -de-
impacto.pdf ; and https://www.gov.br/produtividade -e-comercio -exterior/pt -br/assuntos/comercio -
exterior/publicacoes -secex/serie -acordos -comerciai s/arquivos/vietna -estudo -de-impacto.pdf . WT/TPR/S/ 432 • Brazil  
 
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  MERCOSUR expects to start negotia tions of a new economic complementarity agreement with 
Ecuador in 2022, replacing and moderni zing 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 202 0, Brazil submitted to Mexico 
a proposal of terms of reference to negotiate a new agreement covering trade in goods and non -tariff 
matters. Since mid -March 2019 , trade in automobiles and auto parts between the two countries has 
been duty -free, following th e expiry of bilateral quotas under the  MERCOSUR -Mexico automotive 
agreement (ACE No . 55 – not notified to the WTO).  
2.42.   Dispute settlement in MERCOSUR is regulated by the 2002 Protocol of Olivos, in force 
since January 2004. Member States may choose to file tr ade disputes either within the MERCOSUR 
or the WTO dispute settlement mechanism. Brazil did not participate in any disputes within 
MERCOSUR during the review period.  
2.3.2.2   Preferential trade arrangements  
2.43.   Brazil continues to participate in the 1998 Global System of Trade Preferences among 
Developing Countries (GSTP) (Table  2.1); since 1991, MERCOSUR has participated as a bloc, with a 
single list of concessions granting preferences to participating countries on some 127  HS02  tariff 
headings. These preferences range  from 10% to 100% and their scope includes agricultural 
products, fuels, chemical products, hides and skins, and ferrous and steel products.  
2.44.   Brazil remains a beneficiary of the Generalized System of Preferences (GSP) schemes of 
Australia, New  Zealand , Norw ay, Switzerland (since 2014), Türkiye, and the United  States .72 During 
the review period , it has been graduated from the GSP schemes of Japan (2019) and 
the Eurasian  Economic Union (Armenia, Belarus, Kazakhstan, the Kyrgyz  Republic,  and the 
Russian  Federat ion (2021)).  
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 i nvestment trends due to trade -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 tu rmoil, and the handling of 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, captu ring 47.7% of FDI inflows 
(43.4% of FDI stocks) to the region in 2020.73 Despite some improvement in registering property, 
starting a business, resolving insolvency, bringing expedited business registration , and decreasing 
the cost of the digital certifica te, concerns over poor existing infrastructure, relatively rigid labour  
 
72 UNCTAD (201 8), Generalized System of Preferences – List of Beneficiaries , 1 July. Viewed at:  
https://unctad.org/system/files/official -document/itcdtsbmisc62rev7_en.pdf . 
73 According to the authorities , the decrease in the flow of capital is a global issue rathe r than  just a 
Brazilian reality  as data from several international organizations, such as UNCTAD, OECD, IMF, World Bank, 
WTO, and others , point to a reduction in global investments on average of more than 30% in relation to the 
last decade.  They also consi der that a mong the main elements that have hindered FDI are protectionist 
measures and domestic regulatory barriers adopted by several countries in recent years. They also consider 
that there has been regularity and stability of investment attraction flows  to Brazil that stood at 
USD 49.7 billion  (2015) , USD 53.7 billion  (2016) , USD 66.6 billion  (2017) , USD 59.8 billion  (2018) , 
USD 65.4 billion  (2019) , and USD  24.8 billion  (2020), a pandemic -related drop. According to UNCTAD data, 
Brazil dropped from the world's 6th largest recipient of FDI inflows in 201 9 to the  11th position in 20 20 but 
seemingly rose to the 7th position in 2021; however, in 2019 it maintained its 3rd position in terms of FDI stock . 
CNN B rasil (2022), " Brazil Is the 7th Country that Attracted the Most Foreign  Investment in 2021, says 
UNCTAD", 21  January . Viewed at: https://www.cnnbrasil.com.br/business/brasil -e-o-7o-pais-que-mais-atraiu -
investimento -estrangeiro -em-2021-diz-unctad/ ; UNCTAD (2021), World Investment Report  2021 – Investing in 
Sustainable Recovery . Viewed at:  https://unctad.org/system/files/official -document/wir2021_en.pdf ; UN 
Economic Commission for Latin America and the Caribbean (20 21), Foreign Direct Investment in Latin America 
and the Caribbean 20 21, August . Viewed at:  
https://repositorio.cepal.org/bitstream/handle/11362/47148/4/S2100318_en.pdf ; and EIU (2021), Country 
Commerce – Brazil , October. Viewed at: http://www.eiu.com/ . WT/TPR/S/ 432 • Brazil  
 
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  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 business and hamper investment in Brazil.74 Furthermore, a lack of coordination among 
federal, state, and municipal agencies is seemingly a serious cause for complexity and delays.75 
2.4.1   Regulatory and institutional framework  
2.46.   During the review period, the main regulatory framework governing foreign inv estment 
in Brazil remained relatively unchanged , although action was taken to improve the business 
environment. In 2021 , legislation (New Business Environment Law) was passed for the facilitation 
of starting a business (Section  2.4.3), the protection of mi nority shareholders, the facilitation of 
foreign trade, the Integrated Asset Recovery System (Sira), the charges made by professional 
councils, the profession of public translator and interpreter, on obtaining electricity, on corporate 
reduction of bureauc racy, and procedural acts.76 The New Business Environment Law seeks to 
stimulate the resumption of economic activity after the pandemic and to attract foreign capital as 
well as to simplify the opening and operation of companies in Brazil, making the count ry advance at 
least 20 positions in the World Bank's Ease of Doing Business ranking. Other investment -related 
regulatory and institutional changes included the Establishment of the Declaration of Economic 
Freedom Rights and free market guarantees  (2019) , the approval of the mandate for the preparation 
of the Action Plan on Responsible Business Conduct  (2020) , and the revision of the operational 
setting of the National Investment Committee  (CONINV ) within the scope of the Foreign Trade 
Chamber (CAMEX) of the  Ministry of Economy  (2019).77 The Regulatory Agenda for Improving the 
Investment Environment for the  2021-22 Biennium was issued in 2020.78 Since the 
1995 constitutional amendments, foreign and national capital have received the same legal 
treatment under equal circumstances , which prohibit all forms of discrimination not explicitly 
foreseen in the law. Legally registered companies compete on  an equal footing when bidding on 
contracts or seeking tax and non -tax incentives. Although no rules expressly prohibit foreign 
takeovers, special authorization is required for deals made via share purchase on the stock market.79 
2.47.   The Brazilian Trade and In vestment 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".80 
In 2019, the Ministry of Economy created the Direct Investments Ombudsman (DIO) office to 
 
74 U.S. Department of State (2020), 2020 Investment Climate Statements: Brazil . Viewed at: 
https://www.state.gov/reports/2020 -investment -climate -statements/brazil/ . 
75 World Bank Group (2021), Subnational Doing Business in Brazil 2021  – Comparing Business 
Regulation for Domestic Firms in 27 Brazilian Locations with 190 Other Economies , 8 November. Viewed at: 
https://documents1.worldbank.org/curated/en/149941636370484994/pdf/Comparing -Business -Regulation -for-
Domestic -Firms -in-27-Brazilian -Locations -with-190-Other -Economies.pdf . 
76 The New Business Environme nt Law (Law No.  14,195, 26 August  2021) entered in force on its 
publication date and is to inter alia  produce effects in three years for the procurement of electricity for 
consumers in specified urban areas , in 360 days for the change in the prohibition of  the accumulation of 
positions in publicly held companies , and in 180 days for the electronic charging of taxes related to foreign 
trade operations . 
77 These regulations consist of L aw No. 13,874, 20 September  2019; Decree No.  9,885, 27  June 2019 
(http://www.planalto.gov.br/ccivil_03/_ato2019 -2022/2019/Decreto/D9885.htm ); and CONINV 
Resolution  No. 2, 22 December  2020. The Economic Freedom Law  13,874 includes seve ral provisions to 
simplify regulations, simplify regulatory provisions, and establish norms for the protection of free  enterprise 
and free exercise of economic activity.  
78 The Regulatory Agenda for the Improvement of the Investment Environment is one of th e actions of 
the National Investment Plan (PNI) for the 2021 -22 biennium. The PNI is the CONINV 's work program me 
prepared jointly with  main government bodies . The Regulatory Agenda lists priority strategic rules for 
improving the investment environment bas ed on the best regulatory practices. Its elaboration process was 
guided by the standards established in the OECD's Council Recommendation on Regulatory Policy and 
Governance and in the Brazilian Declaration of Economic Freedom Rights (Law No.  13,874/2019).  After 
consulting Brazilian federal agencies, 13 themes were defined, namely: customs; metrology; air; defense; 
energy; financing, insurance and capital markets; mining; oil and gas; social security; health and sanitary 
surveillance; technology and communi cations; transport; and taxation. CONINV Resolution No.  3, 
22 December  2020. 
79 EIU (20 21), Country Commerce – Brazil , October. Viewed at: http://www.eiu.com/ . 
80 ApexBrasil, Who We Are . Viewed at: http://www.apexbrasil.com.br/en/who -we-are; and 
U.S. Department of State (2020), 2020 Investment Climate Statements: Brazil . Viewed at: 
https://www.state.gov/reports/2020 -investment -climate -statements/brazil/ . WT/TPR/S/ 432 • Brazil  
 
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  provide foreign investors with a single point of contact for concerns related to FDI.81 According to its 
website it is a "single window " for investors, provided by the Executive Secretariat of CAMEX. It is 
responsible for receiving requests and inquiries about foreign investments, to be answered jointly 
with the  public agency responsible for the matter (at the federal, state , and municipal levels) 
involved in each case (the Network of Focal Points).82 The DIO setting allows for supporting the 
investor, by a single governmental body, in charge of responding to dem ands within a short time. 
The following DIO  competencies stand out: to support and guide investors, recommending solutions 
to their grievances (Policy Advocacy); and to propose to public agencies possible improvements in 
the legislation or in their adminis trative procedures.  
2.4.2   Restricted activities  
2.48.   Brazil continues to follow a "negative" list approach in restricting FDI , and national interest 
provisions are found in its Constitution.83 During the review period , foreign ownership restrictions 
for air carriers were lifted; as from 17  June 2019, foreigners have been authorized to hold up 
to 100%  (previously) of voting/capital shares in air transport companies operating either 
domestically or internationally.84 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; the 
authority to recognize the interest of establi shment of new branches of financial institutions 
domiciled abroad and the increase of foreign participation in the capital of financial institutions 
headquartered in the country was passed to the BCB, thus simplifying the recognition procedure.85 
Furthermo re, to improve the quality of the business environment in the country by streamlining the 
procedures for the organization and operation of companies, foreign trade and enforcement of 
debts  (Section  2.4.1), as from  2021, individuals who occupy management positions in joint stock 
companies have no longer been required to reside in Brazil, as long as they keep an attorney -in-fact 
in Brazil for representation purposes.86 
2.49.   Restrictions on foreign investment continue to affect some activities includin g 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 specified 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 
agricultural land in any given municipal district may be owned or leased  by foreign nationals from 
the same country .88 Draft Law No.  4,059/2012, which would lift the limits on foreign ownership of 
 
81 Viewed at: https://oid.economia.gov.br/en . 
82 Viewed at: https://oid.economia.gov.br//en/menus/8 . 
83 Article  172 of the Federal Constitution stipulates that the law shall regulate, based on national 
interests, the foreign capital investments ; shall encourage r einvestments ; and shall regulate the remittance of 
profits.  
84 Provisional Executive Measure 863, 13 December  2018, amended Law 7 ,565/1986, revoking its 
Article 182, thus eliminating any type of limit on the participation of foreign capital in the provision  of air 
services.  Provisional Executive Measure 863 was converted into Law 13,842, 17 June 2019.  
85 According to the authorities, similar  to other domestic processes  elsewhere,  this is now an 
authorization requirement rather than a restriction.  Decree No.  10,029/19 , 26 September  2019, and 
BCB Circular 3,977, 22  January  2020.  
86 Law No.  14,195/2021, 26  August  2021. Lexlink (2021), "Brazil: New Law Facilitates the Organization 
of Companies and Improves the Quality of the Brazilian Business Environment", 4  October . Viewed at: 
https://lexlink.org/brazil -new-law-facilitates -the-organization -of-companies -and-improves -the-quality -of-the-
brazilian -business -environment/ . 
87 Constitutional and infra -constitutional legislation restricts foreign investment in nuclear power 
(Federal Constitution, Article 21, XXIII), certain postal services (Law No. 6,538/1978), healthcare services 
(Federal Constitution , Article 199; and Law No. 8,080/1990 , which updates Article 142 of Law 
No. 13,097/2015), mass media (Federal Constitution, Article 222; Laws No. 10,610/2002 and 
No. 12,485/2011) , rural property (Law No. 5,709/1971), maritime (Law No. 9,432/1997, Decree 
No. 2,256/1997), and insurance (Law No. 11,371/2006).  WTO document WT/TPR/S/358/Rev.1, 
18 October  2017; and EIU (20 21), Country Commerce – Brazil , October. Viewed at:  http://www.eiu.com/ . 
88 U.S. Department of State (2020 ), 2020 Investment Climate Statements: Brazil . Viewed 
at: https://www.state.gov/reports/2020 -investment -climate -statements/brazil/ . WT/TPR/S/ 432 • Brazil  
 
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  agricultural land, has been awaiting a vote in the Brazilian Congress since 2015.89 A bill (Draft 
Law No. 2,963/2019) to ease restr ictions 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 Deputies90 
Table 2.2 Indicative list of FDI closed and restricted  sectors, 2022  
Sector/business  FDI limitation  
A. Closed  
Postal services  Pick-up, transport , and delivery of letters, postcards , and grouped 
correspondence, as well as issuance of stamps and other postage payments  
Nuclear energy  Wholly closed  
B. Restricted  
Financial institutions  Subject to BCB (central bank) approval  
Health services  Allowed for specific activities  
Rural land acquisition  Allowed up to a certain surface and subject to authorization of the National 
Institute of Colonization and Agrarian Reform (INCRA) and other public 
agencies; FDI in rural areas close to the border  requires authorization 
from the Brazilian National Defense  Council, among other procedures  
Broadcasting (TV and 
radio) and publishing 
media  Up to 30% of the capital in open -broadcast and publishing media companies  
Broadcasting subject to local content requirement  
Fishing, mining and 
hydrocarbons  Subject to speci fic authorization requirements  
Source:  WTO Secretariat based on information provided  by the authorities.  
2.4.3   Registration and approval  
2.50.   A company must register with the National Revenue Service (RFB) to obtain a business licen ce 
and be placed on the National Registry of Legal Entities (CNPJ). Through the digital transformation 
initiative (Section  2.2.3.2), as from 2019 foreign companies can open branches via the Internet.91 
Brazil streamlined the process and decreased the time it takes to open a SME t o five days through 
its RedeSimples  Program, the National Network for the Simplification of  Registration and Legalization 
of Companies and Businesses; it also simplified the collection of up to eight federal, state, and 
municipal -level taxes into one singl e payment.92 According to the OECD, in contrast to other 
countries, the Federal Government does not keep a complete count of the number of permits and 
licences required, thus making it hard to keep control over excessive burdens imposed by lower -level 
governments that may not always have an eye for competition.93 
 
89 Office of the United  States  Trade Representative  (2021), 2021 National Trade Estimate Report on 
Foreign Trade Barriers , March. Viewed at: https://ustr.gov/sites/default/files/files/reports/2021/2021NTE.pdf . 
90 Draft Law No. 4,059/2012 is attached to Draft Law No. 2,963/2019. Other legislative proposals 
dealing with the same topic, such as Draft Laws  No. 2,289/2007, No. 2,376/2007, No. 3,483/2008, 
No. 4,240/2008 , and No. 1,053/2015, were also added to Draft Law No. 2,963/2019.  
91 Upon filling out the registration, crea ting an account, and sending the necessary documentation, they 
can submit th e request on the relevant government 's portal through a legal representative ; the e-documents 
are then analy sed by the DREI (Brazilian National Department of Business Registration and Integration) , which 
inform s the applicant of any missing documentation, via the portal and email, giving a 60 -day period to meet 
the requirements. Mondaq (2020), " Brazil: The National Department of Business Registration and Integration 
Enacted Normative Instruction N.59, on April  15, 2019, to Create the Online Application for the Opening of 
Brazilian Branches of Foreign Companies ", 31 March . Viewed at: https://www.mondaq.com/brazil/corporate -
and-company -law/897910/the -national -department -of-business -registration -and-integration -enacted -
normative -instruction -n59-on-april-15-2019-to-create -the-online -application -for-the-opening -of-brazilian -
branches -of-foreign -
companies#:~:text=Through%20the%20appointment%20of%20a,portal%20%22gov.br%22 ; and 
U.S. Department of State (2020), 2020 Investment Climate Statements: Brazil . Viewed 
at: https://www.state.gov/reports/2020 -investment -climate -statements/brazil/ . 
92 Viewed at: https://redesimples.rs.gov.br/19/o -que-e; and U.S. Department of State (2020), 
2020 Investment Climate Statements: Brazil . Viewed at: https://www.state.gov/reports/2020 -investment -
climate -statements/brazil/ . 
93 The authorities indicate that Brazil has a federal system composed of 26 states and the Federal 
District plus thousands of municipalities, with legal autonomy, which could evidently create a challenge to 
"keep a complete count of the number of permits and lic enses required ". OECD (2020), OECD Economic 
Surveys: Brazil  2020, December. Viewed at: https://www.oecd.org/economy/surveys/Brazil -2020-OECD -
economic -survey -overview.pdf . WT/TPR/S/ 432 • Brazil  
 
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  2.51.   The 2021 New Business Environment Law (Law No.  14,195/2021 ) (Section  2.4.1) provides 
for the facilitation for the opening of companies. For easing the opening and operation of companies 
the fol lowing changes inter alia  are envisaged: the automatic granting (i.e. without human analysis) 
of business licen ces and other documents for companies classified in medium -risk activities; the 
unification of federal, state , and municipal tax registrations in  the CNPJ; the maintenance of the 
electronic system by the bodies involved in the process of registering and legalizing companies; the 
electronic citation of legal entities; the expansion of credit modalities for limited companies; the 
ending of the reside ncy requirement for foreign administrators; greater freedom for operating hours; 
the adoption of digital books ; and the removal of the requirement that an address be provided for 
the establishment.  
2.52.   In 2019 legislation was passed for the criteria and proced ures to be observed by the organs 
and entities of the direct, municipal , and foundational federal public administration for the 
classification of the level of risk of economic activity and to set the deadline for tacit approval of the 
public act of liberat ion.94 According to the OECD, Brazil has come closer to the best practice 
among  OECD countries to eliminate the approval requirement for all but a few high -risk activities 
requiring prior inspection and sanitary licensing  equivalent to about 10% of all reg istered companies 
(Section  2.4.2).95 Classification on the risk of an activity may involve the evaluation of its nature, 
inputs , and products, as well as sanitary, environmental , and technological conditions of the 
activity.96 Opening a business is now automatic and done within a day for low -risk activities, which 
cover more than 90% (2021) of applications; as of end -2021, 57.1% of new businesses could open 
in less than one  day.97 Reportedly, sector -specific rules are often mor e restrictive , as professional 
associations can restrict the scope for new entry and provide an easy forum for price collusion, which 
is sometimes reflected in outright minimum charges.98 
2.53.   Incoming foreign investment in all forms must be registered online w ith the BCB through the 
Electronic Statement of Registration – Foreign Direct Investment Module  (RDE-IED), on 
the BCB's Information System (SISBACEN). Foreign capital must be registered in specific modules 
according to the following classification: foreign  direct investment ( FDI); financial operations 
(e.g. loans, long -term import financing, technical assistance , and royalties contracts (ROF)); and 
portfolio investments.99 This classification would be subject to some changes in the near future due 
to the im plementation of the new Foreign Exchange Law (Law 14,286/2021) that comes into force 
on 29  December  2022. Procedures related to the registration of FDI were last simplified in 2017.100 
Foreign capital must be registered within 30 days of the date it enters Brazil or after customs 
clearance in the case of goods.101 Remittances abroad, reinvestment of profits, dividends, other 
resources, and repatriation of invested capital must also be registered with the BCB. Foreign capital 
does not require BCB authorization  provided it is registered. The invested sum must be registered 
in the currency in which the investment was made; this requirement remains in place until Law 
No. 14,286/2021 enters into force on 29  December  2022 (see above).102 As from 2019 , the Minister 
of Economy has been delegated the power authorize a foreign company to operate in 
 
94 Decree No.  10,178/2019 , 18 December  2019. Viewed 
at: http://www.planalto.gov.br/ccivil_03/_ato2019 -2022/2019/decreto/D10178.htm . 
95 CGSIM Resolution N o. 62, 20 November  2020 (https://www.in.gov.br/en/we b/dou/ -/resolucao -cgsim -
n-62-de-20-de-novembro -de-2020-289584141 ); OECD (2020), OECD Economic Surveys: Brazil 2020 , 
December. Viewed at: https://www.oecd.org /economy/surveys/Brazil -2020-OECD -economic -survey -
overview.pdf . 
96 Resolution No.  58, 12 August  2020 ( https://www.gov.br/economia/pt -
br/assuntos/drei/cgsim/ar quivos/Resoluo58de2020.pdf ) and Resolution No.  62, 20 December  2020 
(https://www.gov.br/economia/pt -br/assuntos/drei/cgsim/arquivos/Resoluo622020.pdf ) provide examples of 
classification of activities by the CGSIM.  
97 Ministério da Economía/ Secretaria Especial de Desburocratização, Gestão e Governo Digital /Secretaria 
de Governo Digital /Departamento Nacional de Registro Empresarial e Integração  (2022), Mapa de Empresas -
Boletim do 3º quadrimestre/2021 , 9 February. Viewed at: https://www.gov.br/governodigital/pt -br/mapa -de-
empresas/boletins/mapa -de-empresas -boletim -do-3o-quadrimestre -de-2021.pdf/v iew. 
98 OECD (2020), OECD Economic Surveys: Brazil 2020 , December. Viewed at: 
https://www.oecd.org/economy/surveys/Brazil -2020-OECD -economic -survey -overview.p df. 
99 In cases of investments involving royalties and technology transfer, investors must register with 
Brazil 's patent office, the National Institute of Industrial Property (INPI). Investors must also have a local 
representative. Portfolio investors must have a local financial administrator and register with the Brazilian 
Securities Exchange Commission (CVM).  
100 CMN Resolution  No. 4,533, 24 November  2016,  and BCB Circular No. 3,814, 7 December  2016, 
both effective as from 30  January  2017.  
101 Resolution No.  3,844, 23 March  2010.  
102 Resolution No.  3,844, 23 March  2010.  WT/TPR/S/ 432 • Brazil  
 
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  Brazil  (Section  2.2.1.1).103 Although no rules expressly prohibit foreign takeovers, special 
authori zation is required for deals made via share purchase on the stock market.104 According to the 
Security and Exchange Commission of Brazil (CVM), during the review period, at least 95% of FDI 
applications were approved and rejections are due to non -compliance with domestic legal 
requirements set forth on CMN Resolution 4,373 (discipli nes on the applications of non -resident 
investors in Brazil in the financial and capital markets) or CVM Rules 168 (provides for operations 
subject to special procedures on the Stock Exchanges) and/or 361 (provides for the procedure 
applicable to public of fers for the acquisition of shares in publicly held companies).  
2.54.   No restrictions on remittance of dividends or profits abroad, other than their adequate 
registration in the RDE -IED module, remain in place. Remittances paid to foreign shareholders or 
partner s are not taxed. The same conditions apply for reinvestment. The capitalization of profits, 
dividends, interest on equity capital , and profit reserves in the receiving company in which they were 
produced are registered under the reinvestment item of the IE D module of the RDE. The registration 
of reinvestment is made in the currency of the country to which income could have been remitted, 
or in local currency; this requirement remains in place until Law No. 14,286/2021 enters into force 
on 29 December 2022. Repatriation of capital is also exempt from income tax, unless it exceeds the 
original investment (capital gains), in which case a 15% income tax is withheld.  
2.4.4   Investment promotion and facilitation  
2.55.   During the review period , Brazil continued to promote forei gn 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 
(Sections  3 and 4). As from May  2020, foreign companies' direct participation in government 
procurement bidding involving goods and services (Sections 2.4.1 and 3. 3.6) was eased as they are 
no longer 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 o f 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 fo r 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. CONINV's National 
Investment Plan (PNI) comprising three main pillars  (Governance and Transparency, Investment 
Facilitation , and Regulatory Improvement ) was approved in August 2020. As of April  2022, 
PNI actions under way included: (i) delivering an Action Plan on Responsible Business Conduct 
in August 2022; (ii) negotiati ng a Patent Prosecution Highway Agreement; (iii) facilitat ing the 
implementation of digital transformation projects with an impact on facilitating investments; 
(iv) improv ing service and dialogue between the DIO  (Section  2.4.1) and foreign investors; 
(v) facilitating the granting of visas for foreign workers and investors; and (vi) building a Regulatory 
Agenda for Improving the Investment Environment.107 
2.4.5   Dispute resolution  
2.56.   Brazil adhered to the Convention Establishing the Multilateral Investment Guarantee 
Agency  (MIGA) in 1992, and joined the OECD Investment Committee in 1998 as an observer. It has 
not joined the International Centre for Settlement of Investment Disputes , as it considers that its 
 
103 Decree  No. 9,787, 8 May 2019.  
104 EIU (20 21), Country Commerce – Brazil , October. Viewed at: http://www.eiu.com/ . 
105 Normative Instruction , 10 February  2020 cited at EIU (20 21), Country Commerce – Brazil , October. 
Viewed at: http://www.eiu.com/ . 
106 SECOM . Viewed at: www.investexportbrasil.gov.b r. 
107 Work on the Regulatory Agenda for Improving the Investment Environment, conducted by the 
Foreign Investments Secretariat of CAMEX, is aimed at improving the operational rules affecting foreign 
investment. For the construction of the agenda, 20 governm ent (regulatory agencies and direct administration) 
bodies are involved. After broad consultation, as of April 2022 approximately 200 infra -legal rules had been 
selected for a review process that may positively impact on the attraction of foreign investmen t. These 
standards are being simplified, consolidated , or even revised.  WT/TPR/S/ 432 • Brazil  
 
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  rules of procedure would provide better protection to investors compared to Federal States. Prior to 
becoming an OECD observer, Brazil subscribed to its 1976 Declaration and Decisions on International 
Investment and Multinational Enterprises; it also ratified the 1975 Inter -American Convention on 
Internati onal Commercial Arbitration (Panama Convention) and the  1979 Inter -American Convention 
on Extraterritorial Validity of Foreign Judgments and Arbitration Awards (Montevideo Convention). 
Brazil joined the United Nations Commission on International Trade Law (UNCITRAL) in 2010, and 
its membership is to expire in 2022; Brazil has been recently re -elected for another six -year 
mandate. In 2002, Brazil ratified the 1958 Convention on the Recognition and Enforcement of 
Foreign Arbitration Awards. 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.108 
All administrative decisions can be subject to judicia l review, which grants both domestic and foreign 
investors the possibility of using the judicial system, reducing the needs of external litigation. 
Furthermore, the internal judicial system is independent, and not only national and foreign investors, 
but a lso a foreign state or international organization , can litigate before Brazilian courts over 
contract  matters.  
2.4.6   Bilateral treaties and international cooperation  
2.57.   During the review period , Brazil continued the replacement of its 14 bilateral investment, 
promo tion, and protection agreements signed between 1994 and 1999 by negotiating and signing 
cooperation and facilitation investment agreements (CFIAs) built upon CAMEX, UNCTAD , and OECD 
guidelines and based on risk mitigation, institutional governance , and the matic agendas (see 
below).109 Brazil has negotiated two MERCOSUR protocols on investment : the Buenos Aires Protocol 
(extra -MERCOSUR) and the Colonia Protocol (intra -MERCOSUR).110 None of these BITs or 
MERCOSUR protocols entered in force due to constitutionality concerns.  As of June 2022, Brazil had 
signed 15 CFIAs (including the MERCOSUR Protocol) , including  8 during the review 
period  (i.e. since 2017). They involve Mozambique (30  March  2015), Angola (1  April 2015), Mexico 
(26 May 2015), Malawi (25 June 2015), Colombia (9  October  2015), Chile  (23 November  2015), 
Peru (29  April 2016), MERCOSUR (7  April 2017, see below), Ethiopia (11  April 2018), Suriname 
(2 May 2018), Guyana (13  December  2018), the United Arab Emirates (15  March  2019), Morocco 
(13 June 2019), Ecuador (25  September  2019), and India (25  January  2020).111 Out of these CFIAs 
only those with Mexico, Angola, MERCOSUR , and Chile were in force as of April 2022; those signed 
with Ethiopia, Suriname, Guyana, the United Arab Emirates, Morocco, Ecuador , and India are 
awaiting congressional approval in Brazil, and for the rest ratification by the other signatory was 
pending. Further exploratory dialogues on new CFIAs are ongoing with countries in Africa, the 
Middle  East, and Southeast Asia. The Cooperation and Facilitation of Investments Protocol of 
MERCOSUR (PCFI), a second attempt by the trading bloc to agree on a regional d iscipline for 
investments that draws significantly from Brazil's CFIAs, was signed in April 2017 and ratified 
by Brazil on 21  December  2018.112 The PCFI entered into force for Brazil and Uruguay on 
30 July 2019, and for Argentina on 24  November  2020.  
 
108 U.S. Department of State (2020), 2020 Investment Climate Statements: Brazil . Viewed at: 
https://www.state.gov/reports/2020 -investment -climate -statements/brazil/ . 
109 Unlike traditional BITs, CFIAs do not provide for an Investor -State dispute settlement (ISDS) 
mechanism ; instead they outline progressive steps for the settlement of "issue[s] of i nterest to an investor ". 
U.S. Department of State (2020), 2020 Investment Climate Statements: Brazil . Viewed at: 
https://www.state.gov/reports/2020 -investment -climate -statements/brazil/ ; and WTO document 
WT/TPR/S/358/Rev.1, 18  October  2017.  
110 U.S. Department of State (2020), 2020 Investment Climate Statements: Brazil . Viewed at: 
https://www.state.gov/reports/2020 -investment -climate -statements/brazil/ . 
111 U.S. Department of State (2020), 2020 Investment Climate Statements: Brazil . Viewed at: 
https: //www.state.gov/reports/2020 -investment -climate -statements/brazil/ . 
112 Brazil had negotiated two MERCOSUR protocols on investment (the Buenos Aires Protocol 
(extra -MERCOSUR) and the Colonia Protocol (intra -MERCOSUR) but these BITs and MERCOSUR protocols never 
entered in force due to constitutionality concerns and were later "derogated ". Pérez -Aznar, F . and 
Choer  Moraes, H . (2017) , The Mercosur Protocol on Investment Cooperation and Facilitation: Regionalizing an 
Innovative Approach to Investment Agreements , published at EJIL Talk!, European Journal of International 
Law, 12 September . Viewed at: https://ssrn.com/abstract=3045944  and 
https://deliverypdf.ssrn.com/delivery.php?ID=473081090103074066066005126013005091117005056063054
0050280930740640850981041150691220180630220110240190261161150280690790711160130400420010WT/TPR/S/ 432 • Brazil  
 
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  2.58.   Brazil  is a signatory to 37 double taxation avoidance treaties/agreements (DTAs) of 
which  4 (see below) were signed during the review period (i.e. since 2017) and 36 were in force as 
of April 2022.113 They involve Austria, Argentina, Belgium, Canada, Chile, China , the Czech  Republic, 
Denmark, Ecuador, Finland, France, Hungary, India, Israel, Italy, Japan, the Republic of Korea, 
Luxembourg, Mexico, the  Netherlands, Norway, Peru, the Philippines, Portugal, the 
Russian  Federation, Singapore, the  Slovak  Republic, Sout h Africa , Spain, Sweden, Switzerland, 
Trinidad and Tobago, Türkiye, Ukraine, the United Arab Emirates , and the Bolivarian Republic of 
Venezuela.114 Congress ratified the DTAs with the United Arab Emirates and Switzerland in May and 
June 2021, respectively , and they entered into force on 1 January 2022. A DTA with Singapore, 
signed in  2018, was ratified in  December 2021, but a Presidential Decree regulating its 
implementation remained to be published as of April 2022. A DTA with Uruguay, signed 
on 7 June 2019, remained to be ratified as of  April 2022.  
 
 
29098105104092101118083111070080003096023064097122095012006005 09209800510507112608111407
5083089092015098087113103&EXT=pdf&INDEX=TRUE . 
113 Since 2017, the following DTAs have been updated via amending protocols: Argentina (signed on 
21 July 2017, in force since 1  January  2019), Sweden (signed on 19 March  2019 but not ye t in force), and 
Chile ( 3 March 2022, not yet in force).  EIU (20 21), Country Commerce – Brazil , October. Viewed at: 
http://www.eiu.com/ ; and U.S. Department of State (2020), 2020 Investment Climate Statements: Brazil . 
Viewed at: https://www.state.gov/reports/2020 -investment -climate -statements/brazil/ . 
114 In the case of the United  States , the United Kingdom, and Germany, the authori ties recognize the 
reciprocity of tax treatment that permits the offsetting of tax paid in these countries against the tax due to 
Brazil for individuals. Regarding companies, Brazil grants unilateral tax credit.  WT/TPR/S/ 432 • Brazil  
 
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  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 t o 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 , and gradually implementing its Single Window Programme. It has also expanded its 
non-preferential rules of origin and updated the relevant verification procedure.  
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 peri od. 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 reformi ng 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.  
3.3.  Brazil's TBT, SPS, competition , and price control regimes did not undergo major changes during 
the review period. The economic footprint of Brazil's state -owned enterprises (SOEs) remains large, 
although the authorities have taken steps to strengthen governance  and transparency at the federal 
level, reduce certain  SOEs' market dominance , and facilitate the entry of competitors.  
3.4.  During the review period, Brazil applied for accession to the Agreement on Government 
Procurement ( GPA). A new public procurement law wa s enacted in 2021 and will fully supersede the 
previous legislation after a two -year transitional period of coexistence. The legal and institutional 
framework for the protection of IPRs was also modified.  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedu res, valuation, and requirements  
3.5.  During the review period, Brazil continued streamlining foreign trade formalities and upgrading 
its Integrated Foreign Trade System (S iscomex ) under its Single Window Programme ( Programa 
Portal Único de Comércio Exterior ). Launched in 2014 and jointly coordinated by the Ministry of 
Economy 's Secretariat of Foreign Trade (SECEX) and Special Secretariat of Federal Revenue of 
Brazil  (RFB), the programme aims to reduce the time and costs for import, export , and transit of 
goods.  Since 2017, S iscomex's development has focused on further harmonizing customs and other 
border agencies' procedures, accelerating information flows, and broadening the use of information 
technology and risk management solutions.  
3.6.  Whereas civil servants' ac cess to S iscomex is managed by SECEX, all other users must obtain 
an accreditation ( habilitação ) from the RFB. As it was at the time of Brazil's previous Review, user 
accreditations are still free of charge, with unlimited validity, and come in three types : express, 
limited, or unlimited.1 The terms associated with each user accreditation type were updated in 2020.2 
Access to S iscomex requires a digital certificate compliant with the Brazilian Public Key Infrastructure 
(ICP-Brazil).3 
3.7.  Auxiliary registration requirements were relaxed with the elimination of the Registry of 
Exporters and Importers (REI) and the Integrated System of Trade in Foreign Services, Intangible 
Assets and Other Operations (S iscoserv ) in March 2021 and October 2020, respecti vely.4 Import 
 
1 WTO document  WT/TPR/S/358/Rev.1 , 18 October  2017. 
2 RFB Normative Instruction No.  1,984, 27 October 2020. 
3 RFB Normative Instruction No.  2,022, 16 April 2021. 
4 SECEX Ordinance No.  85, 24 March  2021; SECINT -RFB Ordinance No.  22,091, 8  October  2020;  and 
Law No.  14,195, 26 August  2021. WT/TPR/S/ 432 • Brazil  
 
- 62 - 
 
  transactions with payment terms exceeding 360  days remain subject to registration with the 
Central  Bank of Brazil (BCB) .5 
3.8.  As it was at the time of Brazil's previous 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).6 The fees for registering an import declaration (ID) in S iscomex  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 a n SPS certificate. Since 2015, the RFB only accept s electronically submitted IDs and 
supporting documentation.8 
3.9.  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 S iscomex ; the nature, volume, and value of imports; 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). 
Table 3.1 Distribution of IDs by risk assessment channel, 2016 -21 
 2016  2017  2018  2019  2020  2021  
Total IDs  2,057,119  2,261,156  2,253,142  2,389,902  2,132,035  2,500,265  
 (%) 
Green  92.06  93.89  95.15  95.62  95.95  96.82  
Yellow  3.79 2.86 2.4 2.28 2.45 1.93 
Red 4.07 3.19 2.43 2.08 1.58 1.22 
Grey 0.08 0.06 0.02 0.02 0.02 0.03 
Source:  RFB. 
3.10.   A streamlined import clearance process, based on a single import declaration (DUIMP), was 
launched in October 2018 as a pilot project covering certain imports by sea. The DUIMP may be 
registered in S iscomex  prior to the consignment's arrival at Brazil's border, enabling faster risk 
assessment and coordinated interventions by the administrative bodies in charge of licensing, 
certification , and authorizations. The ra nge of import operations registered with a DUIMP has been 
gradually expanding in parallel with continued procedural improvements.9 The authorities indicate 
that the DUIMP currently accounts for approximately 30% of total imports' value and is expected to 
be fully implemented by the end of 2023.  
3.11.   During the review period, Brazil also continued making improvements to its AEO programme, 
gradually supplementing the benefits10 offered to participants by the RFB with advantages offered 
by other administrative bodies intervening through S iscomex .11 In August 2021, the RFB -managed 
core AEO facility was broadened with a SECEX -managed module.12 Initiatives are under way for the 
incorporation 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 Instit ute of Metrology, Quality and Technology  (INMETRO).13 
 
5 BCB Circular  No. 3,691, 16 December  2013.  
6 WTO document  WT/TPR/S/358/Rev.1 , 18 October  2017.  
7 RFB Normative Instruction No.  2,024, 28 April 2021. 
8 RFB Normative Instruction No.  1,532 , 19 December  2014.  
9 A chronological overview of implemented measures can be viewed at: 
http://siscomex.gov.br/conheca -o-programa/cronograma -de-implementacao . 
10 An overview of AEO benefits c an be viewed at: https://www.gov.br/receitafederal/pt -
br/assuntos/aduana -e-comercio -exterior/importacao -e-exportacao/oea/beneficios -do-programa -oea. 
11 RFB Ordinance  No. 2,384, 13 July 2017; and RFB Normative Instruction No.  1,985 , 29 October  2020. 
12 SECEX Ordinance No.  107, 19 August  2021. 
13 Internal Revenue Service, AEO-Integrated . Viewed at: https://www.gov.br/receitafederal/pt -
br/assuntos/aduana -e-comercio -exterior/importacao -e-exportac ao/oea/beneficios -do-programa -oea/oea -
integrado . WT/TPR/S/ 432 • Brazil  
 
- 63 - 
 
  3.12.   At end -February 2022, the AEO programme comprised 490 certified economic operators 
accounting for 25.8% of total trade volume and 26.5% of import and export declarations 
registered  in that month. AEOs b enefited from significantly lower customs clearance times than 
non-AEO traders.14 Besides being party to a MERCOSUR agreement for the mutual recognition 
of AEO programmes, Brazil has signed bilateral agreements on the matter with the 
Plurinational  State of  Bolivia, China, Colombia, Mexico, Peru, and Uruguay. Exploratory talks on the 
mutual recognition of AEO programmes are also underway bilaterally (with the United  States ) and 
at regional level (MERCOSUR -Pacific Alliance and a possible plurilateral agreemen t with Argentina, 
Chile, Colombia, Costa Rica, the Dominican  Republic,  Guatemala, Paraguay, Peru, and Uruguay).  
3.13.   Engaging the services of a customs broker remains optional. Both the customs brokers and 
their clients must obtain accreditation to use S iscomex . Apart from a Brazilian citizenship 
requirement, there are no regulatory restrictions to competition among customs brokers in Brazil. 
Customs brokers must be inscribed in a Customs Brokers Register ( Registro de Despachantes 
Aduaneiros ) and a Computerized Customs Register of Foreign Trade Agents ( Cadastro Aduaneiro 
Informatizado de Intervenientes de Comércio Exterior  (CAD-ADUANA )), both maintained by 
the RFB.15 
3.14.   According to the authorities, the average customs clearance time for imports across all 
Brazilian  entry points has remained on a downward trajectory, dropping from 34.16  hours in 2016 
to 23.44 hours in 2017, up slightly to 23.89 hours in 2018, and dropping to 19.52 hours in 2019, 
18.5 hours in 2020 , and 15.32  hours in 2021.  
3.15.   In 2020, Brazil published i ts first Time Release Study (TRS) carried out in accordance with the 
World Customs Organization's methodology, based on 262,787 import transactions (by air, sea , and 
road) registered between June and July 2019.16 The TRS found that, on average, it took 7.4  days 
from the goods' arrival until their effective exit from the area under customs control. The average 
release times for consignments arriving by air, sea , and road were 5.8 days, 9.7 days , and 2.3  days, 
respectively.17 The TRS makes a number of recomme ndations, including standardization of 
procedures and timeframes across administrative bodies' respective nationwide networks; 
minimizing risk assessment backlogs; creation of a nationwide mechanism for prompt payment of 
trade -related taxes and licensing f ees; separating the cargo's physical flow from its documentation 
and financial flows; and the replacement of sequential work flows by parallel ones.  
3.16.   During the review period, Brazil took active part in the Committee on Trade Facilitation, 
including by noti fying the definitive implementation date for its three Category  B 
commitments  (31 December 2019); making six experience -sharing presentations; and submitting  a 
proposal on customs cooperation through electronic exchange of information and data.18 
3.17.   Customs a dministration decisions may be appealed in the first instance to the Federal Revenue 
Courts of the Ministry of Economy, and to the Taxpayers' Council in the second instance. Dispute 
settlement procedures may be carried out entirely by electronic means.  
3.18.   Brazil has customs cooperation agreements with Angola, Argentina, the Plurinational State of 
Bolivia, Cabo Verde, Chile, China, Colombia, Costa Rica, Cuba, the  Czech  Republic, 
the Dominican  Republic, Ecuador, El Salvador, France, Guinea -Bissau, Haiti, Hondura s, India, Israel, 
Mexico, Mozambique, the Netherlands, Nicaragua, Norway, Panama, Paraguay, Peru, Portugal, the 
Russian  Federation, S ao Tomé and Pr incipe, South  Africa , Spain, Timor -Leste, Türkiye, Uruguay, 
the United  States, and the Bolivarian Republic of  Venezuela. Additionally, Brazil has bilateral 
 
14 Detailed statistics regarding the AEO programme can be viewed at: 
https://www.gov.br/receitafederal/pt -br/assuntos/aduana -e-comercio -exterior/importacao -e-
exportacao/oea/estatisticas -do-programa -oea. 
15 RFB Normative Instruction s No. 1,209, 7 November  2011 and No.  1,273, 6  June 2012. 
16 Viewed at: https://www.gov.br/receitafederal/pt -br/acesso -a-informacao/dados -
abertos/resultados/aduana/estudos -e-analises/time -release-study -brasil . 
17 The data on imports by road were collected at Brazil's two main points of entry and represented 
approximately 46% of the total volume imported by this mode of transport.  
18 WTO document s G/TFA/N/BRA/1/Add.1 , 14 March  2018; and G/TFA/W/ 51/Rev.1 , 11 November  2021. 
The experience -sharing presentations made by Brazil can be viewed at: 
https://tfadatabase.org/members/brazil/experience -sharing . WT/TPR/S/ 432 • Brazil  
 
- 64 - 
 
  agreements on customs issues with France, India, Israel, the Netherlands, the Russian  Federation, 
South  Africa , the United  Kingdom, and the United  States .19 
3.19.   The dutiable value of imported goods is the sum of t he purchase cost and all expenses incurred 
for freight and insurance (if any) up to the point of entry into Brazil.20 Consignment handling costs 
incurred on Brazil's territory were excluded from the customs value in 2022.21 Brazil applies the 
WTO Customs V aluation Agreement, with reservations on: (i)  the inversion of the order of 
application of the methods stipulated in Articles 5 and 6; and (ii)  the use of the unit price of the 
greatest aggregate quantity sold, foreseen in Article  5, paragraph 2. In such c ases, procedures 
set out in the respective interpretative note prevail, regardless of the importer's request.  
3.20.   The share of IDs cleared using the transaction value method was 99.56% in 2016, 99.49% 
in 2017, 99.42% in 2018, 99.39% in 2019, 99.45% in 2020 , and 99.48% in 2021. The authorities 
affirm that Brazil does not use minimum or reference prices to determine the customs value of 
imported goods. Brazil has applied the Decision on the Treatment of Interest Charges in the Customs 
Value of Imported Goods and the Decision on the Valuation of Carrier Media Bearing Software for 
Data Processing Equipment since 1  March  1998.22 
3.1.2   Rules of origin  
3.21.   Since its previous Review23, 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.24 The 
procedure for verification of non -preferential origin has also been updated.25 As from 2021, 
verification of non -preferential origin is no longer a prerequisite 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 lia ble to payment of the relevant import duty plus a fine (30% of the 
customs value).  
3.22.   Preferential rules of origin are applied in the context of Brazil's trade agreements 
(Section  2.3.2). Eligibility for preferential tariff treatment must be attested by a cer tificate of origin 
or a producer's/exporter's declaration of origin (if provided for in the respective trade agreement) 
for each shipment of the merchandise in question. In addition, some of the trade agreements to 
which Brazil is a party (e.g. MERCOSUR -Israel) contain provisions requiring a certificate of 
non-manipulation in case of transit or transhipment.  
3.23.   Compliance with preferential rules of origin is ascertained by the RFB during customs 
clearance and post -clearance audits. The procedure for verificati on of preferential origin was updated 
in 2018.26 The penalties for false declarations of origin have not been modified since Brazil's previous 
Review.27 During the review period, Brazil also put in place arrangements for the bilateral exchange 
of digital c ertificates of origin in trade with Argentina, Colombia, Paraguay , and Uruguay.  
3.1.3   Tariffs  
3.1.3.1   Applied MFN tariff  
3.24.   All trading partners of Brazil receive at least MFN tariff treatment. Brazil applies the 
MERCOSUR C ET expressed in the Common MERCOSUR Nomenclature ( NCM), which is currently 
based on the 2022 version of the Harmonized System  (HS).  
 
19 Internal Revenue Service, Customs Cooperation Agreements . Viewed at: 
https://www.gov.br/receitafederal/pt -br/acesso -a-informacao/legislacao/acordos -internacionais/acordos -de-
cooperacao -aduaneira . 
20 According to the authorities, import insurance is not compulsory.  
21 Decree No.  11,050, 7  June 2022.  
22 WTO docum ent G/VAL/N/3/BRA/1, 23  October  2002.  
23 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
24 Provisional measure No.  1,040, 29 March  2021 converted into Law No.  14,195, 26  August  2021. 
25 SECEX Ordinance No.  87, 31 March 2021.  
26 RFB Normative Instruction No.  1,864, 27  December  2018.  
27 WTO document  WT/TPR/S/358/Rev.1 , 18 October  2017.  WT/TPR/S/ 432 • Brazil  
 
- 65 - 
 
  3.25.   Brazil's MFN tariff, as applied on 1  April 2022, was entirely ad valorem  and had 10,433 lines 
at the 8-digit level (Table  3.2). While the number of distinct tariff rates incr eased from 19 in  2017 
to 35 in April 2022, rates still ranged from zero to 55%.28 The simple average applied MFN tariff 
declined by 1.6  percentage point s relative to 2017. However, the simple average rate for dutiable 
lines increased from 12.6% in 2017 to 14% in April 2022. The modal rate was 12.6% (down from 
14% in 2017) and 8.1% of all lines carried rates above 20% (Chart  3.1). 
Table 3.2 Structure of the MFN tariff schedule, 2017 and 2022  
  2017  2022a 
Total number of tariff lines  10,226  10,433  
Bound tariff lines (% of all tariff lines)  100.0  100.0  
Simple average rate  11.6 10.0 
HS 01 -24 10.3 9.1 
HS 25 -97 11.8 10.1 
WTO agricultural products  10.2 8.9 
WTO non -agricultural products  11.8 10.1 
Duty-free tariff lines (% of all tariff lines)  7.7 28.6 
Simple average of dutiable lines only  12.6 14.0 
Tariff quotas (% of all tariff lines)  0.4 0.23 
Non-ad valorem  tariffs (% of all tariff lines)  0.0 0.0 
Domestic tariff "peaks" (% of all tariff lines)b 4.5 4.3 
International tariff "peaks" (% of all tariff lines)c 27.0 20.8 
Nuisance applied rates (% of all tariff lines)d 18.2 0.05 
Coefficient of variation  0.7 0.9 
a As applied on 1  April 2022.  
b Domestic tariff peaks are defined as those exceeding three times the overall simple average 
applied  rate. 
c International tariff peaks are defined as those exceeding 15%.  
d Nuisance rates are those greater than zero, but less than or equal to 2%.  
Note:  The tariff applied in 2017 is expressed in HS1 7 nomenclature, whereas the 2022 tariff is in HS22. In 
the absence of a common nomenclature version, the calculated simple average rates are not strictly 
comparable.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
Chart 3.1 Frequency distribution of MFN tariff rates, 2017 and 2022  
(Number of tariff lines)  
 
Note:  Figures above the bars refer to the percentage of total lines.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
 
28 As in the 2017 tariff, the highest import duty rate is applied on desiccated coconuts . 
7.720.4
16.128.7
18.6
8.428.6
2.416.132.0
12.8
8.1
05001,0001,5002,0002,5003,0003,5004,000
Duty free >0%-5% >5%-10 >10%-15% >15%-20% >20%
Note:  Figures above the bars refer to the percentage of total lines.   
Source:  WTO Secretariat calculations, based on data provided by the authorities.Chart 3.2  Distribution of MFN tariff rates, 2017 and 2022 
MFN 2017 MFN 2022
(as at 1 April)WT/TPR/S/ 432 • Brazil  
 
- 66 - 
 
  3.26.   During the review period, Brazil eliminated the import duties on certain aeronautical 
goods  (40 tariff lines, including 18 lines with temporary reductions). In response to the COVID -19 
pandemic, Brazil reduced to zero the MFN import duties on certain medical and protective equipment 
between 18  March  2020 and 31  December  2022.29 In November 2021, with a view to lessening the 
pandemic's economic impact, Brazil also temporarily reduced to zero the import duties on most tariff 
lines carrying a 2% rate and lowered by 10% the rates applied on most other dutiable lines. This 
temporary reduction was to remain in force until 31  December  2022.30 An additional 10% reduction, 
covering 6,195 tariff lines, came into effect on 1  June 2022 and extended the previous temporary 
reduction's validity until 31  December  2023.31 As at 1  July 2022, Brazil's simple average applied 
MFN tariff was 9.4% and the ave rage rates for agricultural and non -agricultural products 
(WTO  definition) were 8.8% and 9.6%, respectively.  
3.27.   The manufacturing sector continues to benefit from the highest tariff protection, followed by 
agriculture and mining (Table  A3.1). In aggregate, th e tariff continues to depict positive escalation 
for manufactured goods: fully processed products attract the highest average applied rate, followed 
by semi -processed goods and raw materials (Chart  3.2 and Table  A3.1). This pattern of escalation 
tends to a ct as a disincentive to improve international competitiveness at the higher stages of value 
addition. The authorities note that any pattern -of-escalation assessment is fraught with 
methodological difficulties and therefore debatable.  
Chart 3.2 Tariff escalation by 2 -digit ISIC industry, 1  April  2022  
 
n.a. Not applicable.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.28.   In line with MERCOSUR rules, Brazil maintains a range of te mporary, individual derogations 
from the CET. Three MERCOSUR mechanisms allowing for such derogations have a long -standing 
implementation record in Brazil: the basic list of national exemptions, the lists of exemptions for 
informatics and telecommunication s equipment and for capital goods, and the quotas for lower 
tariffs.32 Brazil's latest tariff modifications under these mechanisms came into effect 
on 1 April 2022.33 
3.29.   Brazil's basic list of national exemptions, intended to mitigate any difficulties stemmin g from 
the entry into force of the MERCOSUR CET, remains capped at 100 NCM lines. Modifications to the 
 
29 GECEX Resolution No.  17, 17 March  2020, last amended by GECEX Resolution No.  355, 20 June 2022. 
30 GECEX Resolution No.  269, 4 November  2021. 
31 GECEX Resolution No.  353, 23  May 2022.  
32 WTO document WT/TPR/S/212/Rev.1 , 11 May 2009.  
33 GECEX Resolution No.  318, 24  March  2022.  
n.a.n.a.
0%5%10%15%20%25%30%35%
31 32 33 34 35 36 37 38 39 Total
manuf.Chart 3.[BRA]   Tariff escalation by 2 -digit ISIC industry, 2022 (as at 1 April)
Average applied rate
in manufacturing
(10.3%)First stage of processing
Semi-processed
Fully processed
n.a.       Not applicable.31   Food, beverages and tobacco      
32   Textiles and leather  
33   Wood and furniture      37   Basic metals
38   Fabricated metal products and machinery
39   Other manufacturing34   Paper, printing and publishing
35   Chemicals
36   Non -metallic mineral products
Source:  WTO Secretariat calculations, based on data provided by the authorities.WT/TPR/S/ 432 • Brazil  
 
- 67 - 
 
  list may not exceed 20% of all listed lines within a six -month period. As at April 2022, Brazil's 
derogations under that mechanism concerned 95 NCM lines .34 The deadline for the elimination of 
Brazil's basic list of national exemptions has been extended until 31  December  2028.35 
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). Product definitions may be 
narrower  (Ex Tarifário  format) than that of the corresponding 8 -digit NCM code, which may result in 
more than one Ex Tarifário  derogation per tariff line.36 In April 2022, Brazil's Ex Tarifário  BK list 
covered 17,465 products relating to 722 tariff lines and its  Ex Tarifário  BIT list comprised 
1,946  products relating to 144 tariff lines. BIT/BK derogations also applied to 1,033 ful l tariff lines. 
Brazil reduced the import duties on subsets of its BK and BIT lists in 2021 and 2022.37 Brazil has 
been authorized to maintain its lists until end -2028.38 
3.31.   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). These tariff quotas may be specified in Ex Tarifário  format 
(i.e. as a subset of the tariff line). The quantitative  restriction, in -quota rate, and duration of 
application are determined by MERCOSUR's Commerce Commission after consultation with all 
member states.39 As at April 2022, Brazil maintained quotas covering  69 tariff lines (up from  26 
in 2017), all but 6 of which with an in -quota rate set at zero.40 The authorities indicate that quotas 
are usually managed on a first -come , first-served basis.  
3.32.   In 2021, MERCOSUR's Common Market Council extended, until 31  December  2028, the 
validity of the temporary mechanism  allowing its members to apply higher -than-CET rates on up to 
100 tariff lines to address trade imbalances due to the international economic environment.41 The 
authorities indicate that Brazil made no use of this mechanism during 2017 -22. 
3.1.3.2   Bindings  
3.33.   Brazil b ound its entire tariff during the Uruguay Round. Tariffs on agricultural 
products  (WTO  definition) are bound at rates ranging from zero to 55%, with the higher bindings 
reserved mostly for dairy products, grains, and tobacco. Bound rates for non -agricultur al products 
range from zero to 35%. Brazil bound "other duties and charges" at zero.  
3.34.   The process of certifying Brazil's bound tariff schedule to incorporate the changes resulting 
from the introduction of nomenclature versions subsequent to HS02 has not bee n completed.42 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  percentag e point s higher than the average  MFN 
rate applied on 1  April 2022 (Chart  3.3) and 20.7  percentage point s higher than the average MFN 
rate applied on 1  July 2022.  
 
34 Viewed at:  https://www.gov.br/produtividade -e-comercio -exterior/pt -br/assuntos/camex/estrategia -
comercial/listas -vigentes . 
35 Common Market Cou ncil Decision No.  11/21, 13 December  2021. 
36 Besides the lack of equivalent domestic production, Brazilian decisions on the granting of import duty 
reductions take into account considerations such as adoption of new technologies, investment in infrastructu re 
improvements, and complexity of the imported good.  
37 GECEX Resolution s No. 173, 18 March  2021; and No. 318, 24  March  2022. 
38 Common Market Council Decision No.  08/21, 13 December  2021. 
39 Decree No.  10,291, 24 March  2020, implementing MERCOSUR Resolution GMC No.  49/19, 
7 September 2019.  
40 Viewed at: https://www.gov.br/produtividade -e-come rcio-exterior/pt -br/assuntos/camex/estrategia -
comercial/resolucao -gmc-no-49-19-casos -de-desabastecimento . 
41 Common Market Council Decision No.  09/21, 13  December  2021.  
42 WTO document G/MA/W/158/Rev. 3, 28 September  2021. WT/TPR/S/ 432 • Brazil  
 
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  3.35.   In April 2022, the applied rates on 90 tariff lines (down from 134 in 2017) exceeded, 
sometime s partially (due to differences in aggregation levels), Brazil's bindings. The authorities note 
that in all such cases importers may request application of the bound rate.  
Chart 3.3 Average applied and bound tariff rates, by HS section, 1  April  2022  
 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.3.3   Preferences  
3.36.   Brazil grants tariff preferences under bilateral and regional trade agreements, which may 
overlap in terms of trading p artners but differ in terms of product coverage and rules of 
origin  (Chart  3.4 and Table  2.2). In 2022, Brazil applied preferential tariff rate quotas under 
eight such agreements: Brazil -Guyana -Saint Kitts and Nevis (AAP.A25TM -38), Brazil -Suriname 
(AAP.A25 TM-41), Brazil -Uruguay ( Economic Complementation Agreement ( ACE) No. 2), 
Brazil -Argentina (ACE  No. 14), Brazil -Mexico (ACE  No. 53), MERCOSUR -Colombia (ACE  No. 72), 
Brazil -Paraguay (ACE  No. 74), and the Global System of Trade Preferences among Developing 
Countries (GSTP ).  
3.37.   According to the authorities, the share of aggregate preferential imports in the total value of 
Brazil's imports was approximately 12.7% in 2017, 12.5% in 2018, 11.6% in 2019, 10.7% in  2020, 
and 10.8% in 2021. Data accuracy regarding preferential imports is expected to improve upon full 
implementation of the DUIMP . 
3.38.   Most of the preferential tariff schedules applied by Brazil have been set out in the 
LAIA nomenclature, whereas  its applied tariff is in the NCM and is regularly updated to the latest 
HS version.  The lack of a common nomenclature version precludes meaningful comparisons both 
across preferential agreements and against the currently applied MFN tariff.43 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 version.44 
 
43 Notably, it is difficult to detect  the erosion of preferences granted under certain agreements due to 
subsequent lowering of MFN tariffs.  
44 MERCOSUR CCM Directive No.  143/21, 17  December  2021. 
0%5%10%15%20%25%30%35%40%
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21MFN 2022
Final bound
Average MFN 2022
Average final boundChart 3.[BRA]  Average applied MFN and bound tariff rates, by HS section, 2022 (as at 1 April)
01   Live animals & products        
02   Vegetable products
03   Fats & oils      
04   Prepared food, etc.
05   Mineral products
06   Chemicals & products07   Plastic & rubber
08   Hides & skins
09   Wood & articles
10   Pulp, paper, etc.
11   Textiles & articles
12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.
15   Base metals & products
16   Machinery
17   Transport equipment
18   Precision instruments19   Arms & ammunition
20   Miscellaneous manufacturing
21   Works of art, etc.
Source:  WTO Secretariat calculations, based on data received by the authorities.WT/TPR/S/ 432 • Brazil  
 
- 69 - 
 
  Chart 3.4 Tariff preferences of selected t rade agreements, 2022  
 
a Preferences in effect as of 1  September  2022.  
Note:  Figures in brackets refer to the HS nomenclature version in which the preferential schedules are 
provided and on which the calculations are based.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.39.   Trade in automotive products between Brazil and MERCOSUR members remains largely 
regulated by bilateral agreements. The bilateral agreement with Paraguay (AAP.CE 74), in force 
since 2020,  provides for 100% reduction of import duties on 734 tariff lines, conditional on 
imports'  compliance with the rules of origin or with certain regional content levels (within specified 
quotas). Brazil's regime for auto parts not produced domestically was a lso modified during the review 
period  (Section  4.3.5).  
3.1.4   Other charges affecting imports  
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 t o 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 n ature, 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 Interventi on in the 
Economic Domain (CIDE) (Section  4). 
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 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.  
3.43.   During the review period, duties and other taxes on foreign trade transactions accounted for 
less than 14% of federal tax revenue, the largest contributions being attributable to COFINS and 
 
45 Viewed at: https://www.gov.br/receitafederal/pt -br/acesso -a-informacao/dados -
abertos/resultados/aduana/estudos -e-analises/time -release -study -brasil . 
0% 20% 40% 60% 80% 100% Mercosur - Egypt (2017) Mercosur - SACU (2017)Mercosur - Israel (2017)ACE 35 Mercosur - Chile (2012)ACE 62 Mercosur - Cuba (2002)ACE 55 Mercosur - Mexico (2002)Mercosur - India (2002)GSTP (2002)ACE 72 Mercosur - Colombia (1996)ACE 69 Brazil - Venezuela (1996)ACE 59 Mercosur - Ecuador (1996)ACE  58 Mercosur - Peru (1996)ACE 53 Brazil -Mexico (1996)ACE 36 Mercosur - Bolivia (1996)APP 38 Brazil - Saint Kitts & Nevis (1996)APP 38 Brazil - Guyana (1996)
Preferential tariff rate (0%) Preferential tariff rate (>0%) No preferential rates (applied MFN rate)
Note:  Figures in brackets refer to the HS nomenclature in which the preferential schedules are provided and on 
which the calculations are based on.  Table 3.[BRA]   Coverage of selected p referential agreements 
Source:   WTO calculations, based on data provided by the authorities.a        Preferences in effect as of 1 September 2022.aWT/TPR/S/ 432 • Brazil  
 
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  import duties (Table  3.3). Although s tatistics on ICMS collection are not compiled at the federal 
level, the authorities affirm that this tax remains the main source of revenue for most Brazilian 
federative states.  
Table 3.3 Federal tax revenue, by main source, 2017 -21 
 2017  2018  2019  2020  2021  
Total (BRL million)  903,287  981,769  1,041,784  1,009,408  1,310,871  
 (% of total)  
Import duties  3.56 3.60 4.14 4.13 4.55 
Export duties  0.00 0.00 0.00 0.00 0.00 
IPI – local sales  3.56 3.81 3.73 3.62 3.30 
IPI – importation  1.52 1.55 1.83 1.83 2.42 
Income taxes  41.26  39.82  39.81  41.64  42.82  
IOF 3.81 3.82 3.70 3.92 3.71 
Rural territorial tax  0.14 0.15 0.15 0.17 0.18 
COFINS – domestic  19.17  19.79  19.71  19.12  15.77  
COFINS – importation  3.97 4.44 4.97 5.00 6.09 
PIS – domestic  5.33 5.55 5.54 5.43 4.77 
PIS – importation  0.82 0.93 1.04 1.07 1.32 
Social contribution on net profit 
(CSLL)  7.69 7.67 8.03 8.48 9.53 
CIDE 0.65 0.64 0.40 0.26 0.15 
Other  8.51 8.22 6.94 5.32 5.39 
Source:  WTO Secretariat calculations, based on data from the RFB. 
3.44.   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 manufacturing 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.  
3.45.   During the review period, amendments were made both to the IPI's administration and to the 
tax rates.47 In February 2022, the IPI rates on certain vehicles ( NCM heading 87.03) were reduced 
by 18.5% and the rates on most other goods (except tobacco products) were reduced by 25%.48 
Another amendment, amplifying the overall reduction of IPI rates from 25% to 35% (except for the 
Manaus Free Trade Zone), entered in to force on 1  May 2022.49 The resulting decrease in tax 
revenues is estimated at BRL 15.2 billion  for the year 2022, BRL 27.4 billion  for the year  2023, 
BRL 29.3 billion for the year 2024, and BRL 31.9 for the year 2025. The authorities expect that 
narrowi ng the variation of IPI rates across products would mitigate any misallocation of productive 
resources, thereby raising productivity in the long term.  
3.46.   The ICMS is a value  added tax levied on imports, intrastate and interstate transactions 
involving merchan dise, 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 governed 
by 27 distinct regulatory regimes and certain overarching disciplines established at the federal level.  
3.47.   The taxable base, the applicable ICMS rate and  any interstate transfers51 depend on several 
factors, including the ship -from and ship -to tax jurisdiction, the purchaser's tax status, and the 
product's type and intended use. Some companies, including those under federal and sub -federal 
(including munic ipal) ownership/control, are exempted from the ICMS. In addition, product -specific 
 
46 For IPI tax purposes, "manufacture" is defined as any process that modifies the nature, functioning, 
finishing, pres entation or purpose of a product, or improves it for consumption. The IPI paid on inputs used in 
the manufacturing process may be claimed as tax credit; this credit may be offset against IPI due on 
subsequent transactions or against other federal taxes.  
47 A list of legislative amendments can be viewed at: https://www.gov.br/receitafederal/pt -
br/assuntos/orientacao -tributaria/tributos/ipi#8 --legisla --o. 
48 Decree No.  10,979, 25  February  2022.  
49 Decree No.  11,055, 28 April 2022. 
50 Unlike intrastate and interstate electricity trade , imports of electricity are subject to ICMS.  
51 ICMS Agreement No.  236, 27  December  2021; and Complementary Law No.  190, 4  January  2022.  WT/TPR/S/ 432 • Brazil  
 
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  rates and/or (permanent or temporary) exemptions may apply for all states or within a single state. 
ICMS rate and/or tax base reductions may be granted within a state (Secti on 3.3.1.2).  
3.48.   In general, the ICMS is levied on the value of the transaction (including the cost of insurance 
and freight), net of unconditional discounts. The taxable base of imports comprises the c.i.f. value, 
the import duties, the IPI, the ICMS itself , and any other taxes and/or customs -related charges.52 
Typically, ICMS rates on interstate transactions are either 7% or 12%, the former rate being applied 
when the purchaser is located in a poor state (those in the north, north -east, and centre -west 
region s, and the state of Espírito Santo).53 Since January 2013, a uniform ICMS rate of 4% has been 
applied to most goods imported via a state different from the state of final destination.54 
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 imports 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 than their domestically supplied equivalents. In addition, non -ad valorem  rates are levied on 
the importation of soft drink and beer cont ainers, and fuels. Provisions for zero -rating or exemption 
are in place for a wide range of goods.57 
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.58 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 for the  ISS; 
however, municipal tax legislation may impose a withholding responsibility on the contracting entity 
that receives the service.  
3.51.   The Federal Government grants duty and tax concess ions under various initiatives aimed at 
promoting investment and innovation or achieving social objectives. A range of tax breaks, including 
on imported goods and services, are  made available to companies established in export processing 
zones (Section  3.2.4.2) and Free  Trade Zones (Section  3.3.1.2). Sub -federal authorities also grant 
rebates on taxes that fall within their remit (Section  3.3.1). According to RFB estimates 
and projections, import duty concessions would result in forgone revenue in the range  of 
BRL 2.5 billion -BRL 7.2 billion over the 2017 -21 period. Revenue losses on import -related 
IPI concessions were estimated at nearly the same magnitude (Table  3.4). In both cases, the 
Manaus Free Trade Zone accounted for approximately 80% of the respecti ve revenue losses.  
Table 3.4 Forgone federal tax revenue, 2017 -21 
(BRL billion)  
Tax heading  2017  2018  2019  2020a 2021a 
Import duties  2.46 3.16 4.18 5.02 7.22 
IPI –importation  2.59 3.23 3.66 4.22 5.89 
IPI – local sales  22.76  28.59  25.17  22.19  29.10  
COFINS  65.38  71.64  81.17  81.46  67.83  
PIS 12.78  13.93  16.56  16.52  13.58  
Income taxes  108.10  112.27  111.64  113.26  108.98  
 
52 Details regarding the ICMS tax base for imports are available at: 
http://www4.receita.fazenda.gov.br/simulador/glossario.html#ncm . 
53 Subsequent interstate transfers may compensat e the ICMS rate differences between the ship -from 
and ship -to tax jurisdiction.  
54 Federal Senate Resolution No.  13, 25 April 2012.  
55 RFB Normative Instruction No.  1,911, 11 October 201 9. 
56 The COFINS contribution rate is augmented by 1 percentage point  for certain goods listed in Annex  I 
of Law  No. 12,546, 14 December  2011. 
57 Law No. 10,865, 30 April 2004, as amended.  
58 Complementary Law No.  116, 31 July 2003, as amended . WT/TPR/S/ 432 • Brazil  
 
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  Tax heading  2017  2018  2019  2020a 2021a 
IOF 2.58 3.43 4.26 4.25 4.79 
CSLL 9.80 12.70  13.15  14.13  7.98 
AFRMM  0.89 1.04 1.14 1.13 1.28 
Other  60.59  61.23  56.70  50.19  30.18  
a Projections.  
Source : RFB (2019), Statement of Tax Expenditures  (Demonstrativo dos Gastos Tributários, Estimativas 
Bases Efetivas ). 
3.1.5   Import prohibitions, restrictions, and licensing  
3.52.   In general, Brazil maintains import prohibitions on health and moral grounds, and to comply 
with international conventions to which it is a party. The Brazilian list of import prohibitions remained 
broadly unchanged during the review period, apart from an update of th e legislation governing 
controls on weapons and ammunition (Table  3.5). 
Table 3.5 Import prohibitions, 2021  
Product  Description  Legal basis  
Cigarette replicas 
intended for the 
under -aged The importation, production, commercialization, 
distribution and propaganda of any products 
(and packaging) intended for the under -aged 
that replicate the shape of cigarettes (or the 
like) are prohibited  Law No.  12,921, 26 December  2013 
Endangered animals 
and plants  Animals and plants listed as endangered by 
CITES  Decree No.  3,607, 
21 September  2000 
Hazardous waste  Import ban; other movements must follow 
Basel Convention procedures  National Environment Council 
(Concelho Nacional do Meio Ambiente  
(CONAMA)) Resolution No.  452, 
2 July 2012 
Hormone -treated meat 
and poultry  The importation, production, commercialization 
and use of natural or artificial substances with 
anabolic hormonal properties, for the purpose 
of promoting growth and weight, are prohibited  Ministry of Agriculture, Livestock and 
Food Supply (MAPA) Normative 
Instruction No.  17, 18 June 2004  
Illicit drugs  Substances and plants that may cause physical 
or psychological dependence  Secretariat for Health Survei llance 
(Secretaria de Vigilância em Saúde  
(SVS))/Ministry of Health ( Ministério 
da Saúde  (MS)) Ordinance No.  344, 
12 May 1998 
Programmed electronic 
machines for gambling  Prohibited on moral grounds  Law No.  37, 18 November  1966 
Substances that deplete 
the ozone layer  Prohibited substances in accordance with the 
Montreal Protocol  CONAMA Resolution No.  267, 
11 December  2000 
Toys that replicate 
firearms  Imports and domestic production are prohibited  Article  26 of Law No.  10,826 , 
22 December  2003 
Used and retreaded 
tyres Used/retreaded tyres under HS heading 4012, 
even if the intended use is as raw material; 
re-imports after outward processing of tyres 
used in aeronautics (HS  4012.13.00) are 
exempted  CONAMA Resolution No.  452, 
2 July 2012 
Used consumer goodsa May only be imported by the State or 
educational and scientific institutions  SECEX Ordinance No.  23, 
14 July 2011 
Weapons and 
ammunition  Private imports of goods intended for exclusive 
use by military or police forces  Decree No.  10,030 , 
30 September  2019 
Wines  Prohibited if transported in containers of more 
than five litres Law No.  7,678, 8 November 1988 , 
Article  26 
a Imports of used non -consumer goods (except aeronautic goods and packaging materials in 
temporary admission or re -importation) are subject to non -automatic licensing.  
Source:  Information provided by the authorities.  WT/TPR/S/ 432 • Brazil  
 
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  3.53.   Brazil's latest notifications to the Committee on Import Licensing date from  2016.59 During 
the review period, Brazil provided r eplies to several follow -up questions on its import 
licensing  system.60 
3.54.   Brazil maintains automatic and non -automatic import licensing requirements for various 
products, regardless of their origin.61 Requests for both types of licences are submitted online 
through S iscomex  and processed by 18 competent administrative bodies.62 The granting of some 
import licences may require intervention (approval) by more than one body. Import licences are 
non-transferrable and valid for 90  days. Refusal to grant a licence may be appealed before the 
relevant licensing body. Some bodies may levy a fee for the import licence; according to the 
authorities, the fees reflect the cost of services rendered.  
3.55.   The authorities indicate that a new licensing system is being rolled out wi th the DUIMP and is 
already fully operational for exports (Section  3.2.3). The system's full implementation is expected 
to take place by the end of 2023.  
3.56.   The scope of Brazil's licensing requirements was narrowed down during the review period. 
SECEX discont inued automatic import licensing for statistical monitoring purposes in August  2020 
and non -automatic import licensing for trade remedies and origin verifications in April  2021. 
A contract delegating certain licensing competences to Banco do Brasil S.A . was terminated in 
October  2021. The authorities indicate that SECEX currently applies automatic licensing 
requirements to imports under the drawback regime's suspension and exemption modalities, as well 
as non -automatic licensing requirements to imports of u sed goods63, goods subject to similarity 
examination64, and goods under tariff quotas. Non -automatic licensing requirements also remain in 
place to prevent environmental damage and harm to human, plant , or animal health, as well as to 
control imports of pr oducts classified as weapons.  
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.65 
3.1.6   Anti-dumping, countervailing, and safeguard measures  
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 
 
59 WTO documents G/LIC/N/1/BRA/7/ Corr.1, 6 September  2016;  G/LIC/N/2/BRA/7 , 31 August  2016;  
and G/LIC/N/3/BRA/11 , 31 August 2016 . 
60 WTO document s G/LIC/Q/BRA/2 1, 17 July 2017; G/LIC/Q/BRA/2 2, 5 April 2018; G/LIC/Q/BRA/2 3, 
17 April 2018; G/LIC/Q/BRA/2 4, 15 May 2019; G/LIC/Q/BRA/2 5, 14 October  2019; and G/LIC/Q/BRA/2 6, 
11 February  2021. 
61 A compilation of import licensing regulations is provided in SECEX Ordinance No.  23, 14 July 2011, 
and its subsequent amendments . Lists of tariff lines su bject to Internet -based licensing procedures are 
available in Siscomex, and any modifications to licensing formalities are published in Siscomex notifications. 
For up -to-date information on applicable requirements, traders are advised to consult Siscomex's  simulator of 
administrative treatment. Viewed at: http://www.siscomex.gov.br/informacoes/importacao/tratamento -
administrativo -na-importacao/ . 
62 Requests for automatic licensing must be processed within 10 business days, whereas those for 
non-automatic licensing  must be processed within 60 calendar days  of registration in Siscomex ( SECEX 
Ordinance No.  23, 14 July 2011 , Articles 22 and 23). 
63 Imports of  used machinery and equipment remain  conditional on proof that such items are not 
produced in Brazil and cannot be substituted by a similar item currently produced in Brazil.  
64 The lack of equivalent domestically produced goods  remains  an eligibility requirement for certain duty 
and tax concessions . The similarity examination is carried out by SECEX prior to the submission of the import 
declaration ; the relevant modalities are set out in Decree No.  6,759, 5 February  2009. Imports from oth er 
ALADI countries are considered as "special cases".  
65 Viewed at: https://www.gov.br/receitafederal/pt -br/acesso -a-informacao/dados -
abertos/resultados/aduana/estudos -e-analises/time -release -study -brasil . WT/TPR/S/ 432 • Brazil  
 
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  Departme nt 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 assumed 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 applicatio n, 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.  
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 remedie s 
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.69 The exist ing legislation on administrative 
procedures for AD and CV investigations was also consolidated and updated.70 The authorities 
indicate that these amendments are being translated in view of notifying them to the WTO.  
3.60.   Under Brazil's legislation, AD and CV i nvestigations may be initiated simultaneously for the 
same product. However, an AD measure and a CV measure cannot be imposed simultaneously on a 
given product for the purpose of neutralizing the same situation of dumping or export subsidy.71 
3.61.   Brazil has re gularly submitted semi -annual reports on AD and CV actions to the relevant WTO 
Committees. At end -December 2021, there were 149 definitive AD measures (including 3  price 
undertakings and 6 anti -circumvention extensions) in force in Brazil, down from 179 me asures 
(including 9 price undertakings and 9 anti -circumvention extensions) at end -December  2017 
(Table  3.6). During 2017 -21, three CV investigations resulted in final rulings with imposition of 
duties, one of which was suspended on public interest grounds . No safeguard measures were applied 
in Brazil during that period. At end -2021, 113 Brazilian trade remedy measures were in force for 
more than 5 years. According to the authorities, the share of Brazil's total merchandise imports 
affected by its trade rem edy measures was 1.14% in 2017, 1.04% in 2018, 1.02% in 2019, 1.08% 
in 2020, and 1.09% in 2021.  
Table 3.6 Trade remedy actions, 2017 -21 
 
2017  2018  2019  2020  2021  
Industry petitions (complaints)  19 12 8 27 13 
Original investigations initiated  8 7 1 10 13 
Anti-dumping  7 7 1 9 11 
Countervailing  1 0 0 0 2 
Safeguard  0 0 0 1 0 
Reviews initiated  2 0 2 2 2 
Anti-circumvention  0 0 0 0 0 
Scope ruling  2 0 2 1 1 
Changed circumstances  0 0 0 1 1 
Provisional measures imposed  3 3 0 0 0 
Definitive measures imposed  10 7 3 0 4 
Anti-dumping duty  7 9 6 0 1 
Anti-dumping duty and price undertaking  3 0 0 0 0 
Countervailing duty  0 1 1 0 0 
Price undertaking  0 0 0 0 0 
Safeguard measure  0 0 0 0 0 
Sunset review petitions  2 43 42 17 25 
 
66 Decree No.  9,679, 2 January  2019.  
67 Decree No.  9,745, 8 April 2019.  
68 While SDCOM  may not initiate a review without a request from a Brazilian industry , it may decide to 
includ e additional exporting countr ies in duly initiated proceedings whenever there is sufficient information  
justifying such a decision . 
69 Written questions and answers regarding the notified laws and regulations are contained i n 
WTO documents G/ADP/Q1/BRA/ 35-46, G/SCM/Q1/BRA/ 35-46, and G/SG/Q1/BRA/4 -15. 
70 SECEX Ordinance No.  171, 9  February 2022; and Decree  No. 10,839, 18 October  2021. 
71 Decree s No. 8,058, 26 July 2013 and No. 10,839, 18  October  2021.  WT/TPR/S/ 432 • Brazil  
 
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2017  2018  2019  2020  2021  
Sunset review: measures extended  7 8 26 18 35 
Anti-dumping  5 8 26 18 35 
Anti-dumping duty and price undertaking  2 0 0 0 0 
Countervailing  0 0 0 0 1 
Safeguard  0 0 0 0 0 
Measures suspended for public interest reasons  0 7 3 4 1 
Measures reflecting public interest reasonsa 3 0 4 1 0 
Measures in force (at 31  December)  180 179 177 163 152 
Anti-dumping (definitive)  161 161 159 146 140 
Anti-dumping (provisional)  3 3 0 0 0 
Anti-circumvention  9 9 9 9 6 
Price undertaking  9 7 6 5 3 
Countervailing  1 2 3 3 3 
Safeguard  0 0 0 0 0 
a Measures diverging from the respective investigation's recommendations for reasons of public 
interest.  
Note:  The accounting basis is the product -origin pair.  
Source:  Data provided by the authorities.  
3.62.   Judicial reviews of CAMEX decisions follow Brazil's general procedures for appeals of 
governmental acts. Statistics on appeals are not available, due to the lack of a centralized court 
registry . Brazil's Tax on Industrial Products (IPI) and trade remedy measures concerning imports of 
biaxially -oriented polyethylene terephthalate (PET) film have been the subject of consultations 
pursuant to the Dispute Settlement Understanding since July 2022.  
3.1.7   Other measures affecting imports  
3.63.   Brazil observes the trade sanctions imposed by the United Nations or the regional 
organizations to which it belongs. The authorities affirm that Brazil is not a party to any agreements 
or arrangements seeking to influence the  quantity or value of goods and services exported to Brazil. 
Brazil does not have in place any reserve stock requirements.  
3.2  Measures Directly Affecting Exports  
3.2.1   Customs procedures and requirements  
3.64.   During the review period, the registration and customs cleara nce procedures for commercial 
exports were streamlined as part of the gradual improvements being made to 
Siscomex  (Section  3.1.1). Data entry requirements were significantly reduced (by 60%) through the 
consolidation of the previously used export registry and export declaration into a single export 
declaration (DU -E) and the automatic sourcing of information from electronic invoices. Processing 
times were also reduced through improved coordination among administrative bodies and the 
replacement of sequentia l workflows by parallel ones. The DU -E fully replaced the legacy export 
clearance systems as from October 2018. A Single Cargo and Traffic Control System also became 
operational from that date.  
3.65.   In general, export declarations must be processed in S iscomex  before the merchandise is 
loaded for exportation.72 Brazil's AEO programme offers trusted exporters various trade facilitation 
advantages (Section  3.1.1).  
3.66.   The responsibility for certifying Brazilian exports' compliance with most73 preferential rules of 
origin remains delegated to 48 private entities.74 Regardless of the format (hard copy or digital) in 
which the certificate of origin is requested, all issuing entities must have computerized systems 
compliant with the parameters established by LAIA's Digital Certification of Origin Project (COD).75 
All 48 entities have been authorized to issue a Digital Certificate of Origin for preferential trade with 
 
72 The exceptions include  supplies of fuel and food to airlines and ships in international traffic , and 
domestic sales of precious stones and jewellery to non -residents . 
73 Exceptions include  certificates of origin for  in-quota exports of sugar to the E uropean  Union, issued 
by SECEX ; and GSP treatment  and in -quota poultry exports to the E uropean  Union, issued by the BCB . 
74 SECEX Ordinance No.  39, 9 October  2019. 
75 SECEX Ordinance No.  23, 14 July 2011.  WT/TPR/S/ 432 • Brazil  
 
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  Argentina, Colombia, Paraguay , and Uruguay.76 Certificates of origin  are valid for 180  days, and 
must be issued within 60  days of the commercial invoice's issuance if the export destination is a 
LAIA or a MERCOSUR partner. The request for a certificate of origin must be accompanied by the 
commercial invoice and a declarati on by the producer.  
3.2.2   Taxes, charges, and levies  
3.67.   Brazil's legislation provides for the possible application of an export tax with a headline rate 
of 30%, which may be decreased or increased (up to 150%) by CAMEX for foreign exchange or trade 
policy purposes.77 In practice, Brazil has made limited use of non -zero export taxes. Two such taxes 
were eliminated in 2018 and 2021, respectively (Table  3.7). During the review period, export taxes 
represented a negligible and declining share of federal tax revenues (Ta ble 3.3). 
Table 3.7 Export taxes, 2017 -22 
HS Heading  Products  Destination  Rate 
(%) Purpose (Legislation)  Situation as at 
June  2022  
2402.20.00  Cigarettes 
containing tobacco  South and Central 
America and the 
Caribbean  150 Control the regularity of trade 
flows (Decree No.  2,876 , 
14 December 1998)  In place  
4101, 4102, 
4103, 
4104.11, 
4104.19  Raw hides and skins 
(bovine, equine, 
sheep or lamb)  Any country  9 Ensuring supply to the 
domestic market (CAMEX 
Resolution No.  42, 
19 December 2006)  Terminated, CAMEX 
Resolution No.  65, 
12 September  2018 
Chapter 93  Arms and 
ammunition, parts 
and accessories 
thereofa South and Central 
America and the 
Caribbeanb 150 Control the regularity of trade 
flows (CAMEX Resolu tions 
No. 17, 6 June 2001; and 
No. 88, 14 December  2010)  Terminated, CAMEX 
Resolution No.  218, 
14 July 2021 
a Except when destined for authorized consumers and for the military and police forces; firearms 
under HS 9302.00.00 (MERCOSUR classification NCM 9303) with intrinsic safety and identification 
features, arms and ammunition under HS  9304.00.00 (NCM 9306.29.00), and ammunition under 
NCM 9306.21.00, 9306.29.00, and 9306.30.00.  
b Excluding Argentina, Chile, and Ecuador.  
Source:  Inform ation provided by the authorities.  
3.68.   The basis for assessing the export tax is the f.o.b. value or the price of the good in the 
international market at the time of exportation.78 The price must not be lower than the cost of 
acquisition or production of the g ood, increased by taxes and other contributions and a profit margin 
of 15% on the sum of costs and taxes. Brazil does not maintain minimum export prices, except as 
a basis for calculating the export tax.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.69.   Brazil maintains export prohibitions for health and environmental protection reasons, and in 
compliance with international agreements and United Nations resolutions.79 Exports of certain 
medical, hospital , and hygiene products (18 tariff lines) deemed essenti al for combating the spread 
of COVID -19 in Brazil were prohibited between April 2020 and May 2022 unless the Ministry of Health 
deemed that there was sufficient supply for the domestic market.80 
3.70.   Export authorization or licensing requirements remain in plac e 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 tariff quotas in certain destination markets.81 
In addition to SUEXT,  15 administrative entities have export authorization competences, and some 
 
76 SECEX Ordinance No.  144, 10  November  2021. 
77 Law No.  9,716, 26 November  1998; and Decree No.  6,759, 5 February  2009. 
78 Decree  Law N o. 1,578, 11 October  1977; and Provisional Measure No.  2,158-35, 24 August  2001. 
79 A compilation of export prohibitions and licensing regulations is provided in SECEX Ordinance No.  23, 
14 July 2011, and its subsequent amendments. A list of tariff lines subject to export prohibitions and licensing 
procedures is available in S iscomex . For up -to-date information on product -specific requirements, traders are 
advised to consult S iscomex 's simulator of adm inistrative treatment. Viewed at: 
http://www.siscomex.gov.br/informacoes/tratamento -administrativo -de-exportacao/ . 
80 Law No.  13,993, 23  April 2020; Decree No.  10,407, 29 June 2020; and SECEX Ordinance No. 188, 
12 May 2022. 
81 Details regarding export quotas can be viewed at: http://siscomex.gov.br/servicos/cotas -de-
exportacao/ . WT/TPR/S/ 432 • Brazil  
 
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  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) we re subject to 
some form of prior authorization.82 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.  
3.2.4   Export support and promotion  
3.2.4.1   Export support schemes  
3.72.   Under Brazil's Predominantly Exporting Companies (PEC) programme, companies deriving 
more than 50% of their gross sales income from abroad remain eligible for suspension of the PIS, 
COFINS, and IPI taxes on locally purchased and imported inputs.83 As at April 2021, there were 
598 enterprises with PEC status, up from 505 enterprises in March 2017.  
3.73.   A similar eligibility criterion continues to apply under the Special Regime for the Purchase of 
Capital Goods f or Exporting Companies (RECAP), which suspends the PIS and COFINS on purchases 
of new (unused) capital goods (machines, equipment, and instruments) for incorporation in the 
beneficiary company's fixed assets.84 Enterprises that, in the calendar year preced ing application 
to RECAP, made at least 50% of their total gross sales abroad  may benefit from the programme, 
provided they commit to attaining a minimum export sales threshold for the following 
two calendar  years. Start -up companies with a lower share of export sales are eligible for 
RECAP  benefits on condition that they reach and maintain the 50% threshold over three years. 
Brazilian shipyards are also eligible for RECAP benefits, irrespective of their export turnover, and do 
not need to undertake export commitments. As at April 2021, 446 enterprises were qualified to 
participate in RECAP, up from 359 enterprises in March 2017.  
3.74.   The PEC and RECAP programmes were among Brazilian measures  that had been the object of 
two dispute settlement cases examined in a harmonized procedure. In December 2018, the 
Appellate  Body ruled that the tax suspensions granted under the PEC and RECAP programmes did 
not constitute subsidies within the meaning of Article  1.1 of the SCM  Agreement .85 
3.75.   During the review period, Brazil mai ntained its Special Regime for the Reimbursement of 
Taxes for Exporters (Reintegra) with some amendments.86 As from June 2018, the scheme enables 
exporters of certain Brazilian -manufactured goods to claim up to 0.1% of their gross export receipts 
as an off set for non -value added (cascading) taxes along the production chain, such as the  ISS, IOF, 
and CIDE.87 In general, the Brazilian -manufactured exports eligible for Reintegra are drawn from 
the IPI incidence list ( Tabela de incidência do IPI ) (Section  3.1.4) and their imported content may 
not exceed 40% of their export price.88 The authorities indicate that refunds and tax credits granted 
under Reintegra totalled BRL 17.4 billion  between January 2017 and June 2022.  
3.76.   Brazil's drawback regime provides for the s uspension, exemption or refund of import duties 
and indirect taxes (IPI, PIS, COFINS, ICMS, and AFRMM) on local or imported inputs and parts used 
to produce exportable goods. The drawback regime's suspension modality allows ex ante  deferral of 
duties and taxes on inputs, whereas the exemption modality provides for the rebuilding of stocks 
 
82 Viewed at:  http://www.siscomex.gov.br/informacoes/tratamento -administrativo -de-exportacao/ . 
83 Laws No.  10,637 , 30 December  2002; No. 10,865 , 30 April 2004; No. 11,196 , 21 November  2005; 
and No.  12,715 , 17 September  2012.  
84 Law No.  11,196, 21 November 2005, as amended by Law No.  12,715, 17 September  2012.  
85 WTO document series WT/DS472  and WT/DS497 . 
86 Law No.  13,043, 13 November  2014; and Decree No.  8,415, 27 February  2015, amended by 
Decree  No. 9,393, 30 May 2018. 
87 The offset may take the form of either a credit against federal tax liabilities or a cash payment.  
Between 1 January  2017 and 31 May 2018, the offset was capped at 2% of gross export receipts . 
88 A 65% imported content threshold applies to pharmaceuticals; electric appliances and materials; 
aircraft and parts; optical, precision measuring, medical or surgical instruments and apparatus; and clocks 
and watches (Decree No.  8,415, 27 February  2015).  WT/TPR/S/ 432 • Brazil  
 
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  ex post, after the final good has been exported. The refund modality provides for the refund of duties 
and taxes paid on imported inputs that have  been used in the production of an exported good.  
3.77.   Several changes to the drawback regime took place during the review period. During 2018 -22, 
inputs imported under the drawback exemption modality were subject to the AFRMM; the relevant 
legal provision will  cease to apply on 1  January  2023.89 In 2020, updates of the drawback regime 
clarified its eligibility criteria and formalized a quantity -based (as opposed to a value -based) 
approach to compliance control.90 In September 2021, the RFB launched a "fast -track" drawback 
facility offering companies in good standing priority in the analysis of their refund/tax 
credit  applications.  
3.78.   During 2017 -21, annual exports under drawback represented some 20% -23% of total 
exports, whereas the corresponding figures for import s ranged between 4% and 6% (Table  3.8). 
Table 3.8 Drawback regime implementation, 2017 -21 
 2017  2018  2019  2020  2021  
Exports under drawback (USD million)  50,102.0  48,965.6  49,523.9  42,090.0  58,090  
Share of total exports (%)  23.0 20.4 22.0 20.1 20.7 
Imports under drawback (USD million)  8,920.6  9,144.1  7,693.5  6,567.5  10,787  
Share of total imports (%)  5.9 5.1 4.3 4.1 4.9 
Fiscal footprint of imports under drawback 
(BRL million)a 7,217.1  8,537.5  7,368.6  8,291.2  10,670.4  
a Comprises import duties and IPI, PIS, and COFINS taxes. Does not include ICMS and AFRMM tax es. 
Source:  Information provided by the RFB.  
3.79.   The Special System of Industrial Warehouses under Standardized Control 
(RECOF/RECOF -SPED) was updated during the review period. Besides procedural changes, eligibility 
requirements were relaxed with the elimination of a BRL 10 million  minimum equity threshold.91 The 
scheme provides for the suspension (for one year, extendable  once) of import duties and 
indirect  taxes (IPI, PIS, COFINS , and, in some cases, ICMS92) on imported or local inputs employed 
in the industrial transformation of products destined for export or the domestic market. Domestic 
sales of any (local or imported ) inputs or the final good are subject to all applicable duties and taxes. 
As at 2  May 2022, there  were 97 companies authorized under  RECOF/RECOF -SPED , of which 
80 were authorized during 2017 -22.93 
3.80.   Brazil continues to apply the Special Regime for the Infor mation Technology Exportation 
Platform (REPES), targeting companies dedicated exclusively to the development of software and 
the provision of IT services. REPES suspends the IPI on imported goods without a domestic 
equivalent (except second -hand ones) for their incorporation as fixed assets, as well as the PIS and 
COFINS on purchases of IT services and new goods. Beneficiaries must export software and 
IT services worth at least 50% of their annual gross income.94 The authorities indicate that, as 
of June 20 22, there were only six beneficiary companies under REPES.  
3.2.4.2   Export  processing zones  
3.81.   Brazil updated its legal framework for export  processing zones (EPZs) in 2021, with most 
federal tax -related amendments becoming effective as from January 2022.95 Pursuant t o the 
updated legal framework, private companies may make proposals for the creation of EPZs on equal 
footing with Brazil's federative states and municipalities. EPZ -resident companies are no longer 
required to export 80% of their gross income from sales o f goods and services. While the fiscal and 
administrative benefits (as well as the 20 -year legal guarantee clause) available to authorized 
 
89 Law No.  14,366, 8 June 2022. 
90 SECEX Ordinance No.  44, 24 July 2020.  
91 COANA Ordinance No.  57, 2 October  2019. 
92 Payment of ICMS may be suspended for beneficiaries in the states of São Paulo and Paraná. In the 
state of Rio de Janeiro, ICMS suspension is admissible for companies in the aeronautical sector.  
93 Viewed at: https://www.gov.br/receitafederal/pt -br/assuntos/aduana -e-comercio -exterior/regimes -e-
controles -especiais/regimes -aduaneiros -especiais/recof -sped. 
94 Law No.  11,196, 21 November  2005, amended by  Law No.  12,715, 17 September  2012. 
95 Law No.  14,184, 14  July 2021.  WT/TPR/S/ 432 • Brazil  
 
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  EPZ companies remain broadly unchanged96, an amendment was made to the tax treatment of their 
sales to Brazil's custo ms territory.97 As from January 2022, authorized EPZ  companies may choose 
to pay, upon acquisition, all indirect taxes on inputs used in the production of goods sold on the 
Brazilian market, thereby avoiding penalties and interest on the tax obligation ari sing from the sale.  
3.82.   The National Council of Export Processing Zones (CZPE) remains in charge of implementing 
Brazil's EPZ policy, including authorizing the creation of EPZs and the establishment of companies 
therein.98 The operationalization of an EPZ also requires the Brazilian customs authority's permission 
and final approval from the President of the Republic. Approved EPZs that fail to start operations 
within 48 months of their agreed installation timetable may lose  their right to establish. As 
of April 2022, Brazil had 14 approved EPZ projects, of which 2 were operational and 12 were in the 
process of establishment.  
3.2.4.3   Export promotion  
3.83.   The Ministry of Foreign Affairs (MRE), working in coordination with the Chamber of F oreign 
Trade (CAMEX) under the Ministry of Economy, has primary responsibility for the promotion of 
cross-border trade and investment. The MRE supervises the Brazilian Trade and Investment 
Promotion Agency (ApexBrasil), which carries out export and investm ent promotion activities in 
accordance with the terms of a management contract signed between the two entities.99 
In March  2022, the MRE re -established the Department of Trade and Investment Promotion (DPR), 
linked to its Foreign Trade and Economic Affairs  Secretariat (SCAEC), with the aim of better 
integrating the economic and commercial dimensions into Brazilian diplomacy, as well as ensuring 
even closer integration of the Ministry's trade and investment promotion activities with those carried 
out by Apex Brasil.  
3.84.   Although it supports companies of all sizes, ApexBrasil maintains a particular focus on 
activities that help enhance exports of SMEs , foster competitiveness , and create jobs. Other strategic 
priorities include: (i) increasing the participation of B razilian companies in international value chains; 
(ii) fostering innovation, design , and technology transfer; and (iii) encouraging the use of 
"sociobiodiverse" resources. ApexBrasil provides services such as market intelligence, business 
capacity -building , trade and image promotion, and development of internationalization strategies. 
Its trade promotion activities include the participation in trade missions and international trade fairs, 
as well as visits of foreign buyers to Brazil. Export promotion suppo rt generally takes the form of 
technical and financial cooperation agreements between ApexBrasil and private -sector associations, 
which include co -financing for up to 60% of a project's total value.  
3.85.   In addition to ApexBrasil, trade information and support services to exporters are made 
available by several public and private institutions, including the Economy Ministry, the  MRE, and 
Banco do Brasil S.A . These entities maintain several online platforms aimed at facilitating the 
internationalization of Brazil ian companies.100 Banco do Brasil S.A . continues to  offer Brazilian 
enterprises with gross annual sales of up to BRL  10 million a credit line ( Proger Exportação Promoção 
Comercial ) for export promotion activities, such as participation in trade fairs, shipment of samples, 
and investments in marketing.101 
3.86.   Outward payments for the promotion of Brazilian products and services abroad remain eligible 
for a reduction of the applicable income tax withheld at source (IRRF) to 0% (from the 
standard  25%).102 Forgon e revenue from the IRRF reduction was estimated at BRL 31.6 million 
 
96 WTO document WT/TPR/S/358/Rev.1 , 18 October  2017. 
97 As a rule, products sold in Brazil's customs territory, as well as the inputs used in their production, 
remain subject to all duties and indirect taxes levied on domestic acquisition or importation. The duty and tax 
amount due must be paid with penalties and interest.  
98 Decree No.  9,933, 23 July 2019.  
99 Decree No.  8,788, 21 June 2016 ; No. 10,044, 4 October 2019 ; and No. 11,024, 31 March 2022 . 
100 Details on entities and tools assisting exporters can be viewed at: 
http://www.investexportbrasil.gov.br/  and http://siscomex.gov.br/aprendendo -a-exportar/onde -buscar -apoio -
ou-informacoes/ . 
101 Viewed at:  https://www.bb.com.br/pbb/pagina -inicial/empresas/produtos -e-servicos/comercio -
exterior/vendas -para-o-exterior/proger -exportacao#/ . 
102 Decree No.  6,761, 5 February  2009, amended by Decree N o. 9,904, 8 July 2019. WT/TPR/S/ 432 • Brazil  
 
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  in 2017, BRL 35.6 million in 2018 , and BRL 41 million in  2019, and projected at BRL 13.2 million 
in 2020 and BRL 9.9 million in 2021.103 
3.2.5   Export finance, insurance, and guarantees  
3.87.   CAMEX, tho ugh its Export Financing and Guarantee Committee (COFIG), remains in charge of 
setting guidelines and conditions for granting federal financial assistance and/or guarantees to 
Brazilian exports, as well as overseeing the operations of the Export Financing Programme (PROEX) 
and the Export Guarantee Fund (FGE). The National Bank for Economic and Social 
Development  (BNDES) continues operating several federally funded export credit schemes under 
the BNDES -EXIM programme. Resources of Brazil's three region -specific constitutional financing 
funds (Section  3.3.1) may also be used to finance eligible export projects. Federal funding in support 
of Brazilian exports is generally provided regardless of the exporter's ownership. No information was 
available on sub -federal export support.  
3.88.   In January 2020, CAMEX adopted guidelines for reforming the system of federal -level export 
support, including export insurance and financing policies. The guidelines envisage, inter alia, 
greater efficiency in the use of public resources  and a review of the legislation related to the Export 
Financing Programme (PROEX), the Export Guarantee Fund (FGE) , and the Export Credit 
Insurance  (SCE)  scheme backed by the FGE.104 The authorities indicate that, to date, actions to 
implement the guidelin es have been taken mainly with respect to PROEX.  
3.89.   Funded with outlays from the federal budget and administered by Banco do Brasil S.A ., 
PROEX  has two  modalities: direct financing (PROEX -Financing) and interest rate equalization 
(PROEX -Equalization). In prin ciple, the programme is aimed at addressing financing gaps where the 
private sector may not be able to fully respond to the needs of Brazilian businesses. The legal 
framework governing PROEX was consolidated and amended in 2021; previously restricted 
opera tional rules were also made public in the process.105 Under the updated framework, COFIG's 
remit no longer includes setting conditions for and approving individual PROEX operations. Other 
noteworthy amendments to PROEX include the replacement of the LIBOR b y the OECD's Commercial 
Interest Reference Rates (CIRRs) as the benchmark for PROEX -Financing loans and the revision of 
some eligible goods' maximum repayment terms to bring them in line with the terms set out in the 
OECD's Arrangement for Officially Suppo rted Export Credits and its sector understandings.  
3.90.   Primarily intended for businesses with an annual turnover of up to BRL 600 million, 
PROEX -Financing provides direct credit to the exporter or overseas buyer of eligible Brazilian goods 
and services. Financ ing is available for up to 100% of the value of exports for credit periods of 
between two months and 2  years, and up to 85% for longer periods (up to 10  years). 
PROEX -Financing may also provide concessional credits in support of Brazilian exports under 
Brazil's technical cooperation projects.  
3.91.   PROEX -Equalization bears part of the cost of credits contracted (by exporters or by overseas 
buyers) from private financial institutions (in Brazil or abroad) to finance Brazilian exports. The credit 
terms (interest ra tes, financing percentage , and collateral) are negotiated between the financing 
institution and the exporter/overseas buyer.106 Equalization may be granted on credits financing up 
to 100% of the exports' value for periods ranging from 60  days to 15  years.  
3.92.   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 
shipped to the United  States , Argentina, Peru , and Chile. Disbursements under both modalities 
peaked in  2018 and decreased somewhat thereafter (Table  3.9). 
 
103 RFB (2019) , Statement of Tax Expenditures  (Demonstrativo dos Gastos Tributários, Estimativas 
Bases Efetivas ). 
104 CAMEX Resolution No.  12, 30 January  2020. 
105 GECEX Resolution No.  166, 23 March  2021; CMN Resolution No.  4,897, 25 March  2021; 
Ordinance  No. 8,623, 20 July 2021; and COFIG Normative Instruction No.  82, 1 September  2021. 
106 Equalization is paid by way of National Treasury Notes (NTN -I) to the institution granting the 
export  credit.  WT/TPR/S/ 432 • Brazil  
 
- 81 - 
 
  Table 3.9 PROEX implementation, 2017 -21 
Year Budgeta 
(BRL)  Total financing 
granted (USD)  No. of 
beneficiaries  Export 
business 
volume (USD)  Main beneficiary industries  
PROEX -Financing  
2017 2,500,000,000 340,033,757 170 367,706,497 Food (38%); mineral 
extraction (28%); textiles and 
footwear (19%)  
2018 2,049,189,000 336,132,756 184 350,112,177 Mineral extraction (37%); 
food (17%); machinery and 
equipment (15%)  
2019 2,100,000,000 325,315,186 192 328,029,169 Mineral extraction (39%); 
machinery and 
equipment  (25%); textiles 
and footwear  (16%)  
2020 2,100,000,000 265,914,843 147 267,827,961 Mineral extraction (45%); 
others (23%); textiles and 
footwear (20%)  
2021 1,999,999,999 161,735,286 94 169,095,541 Machinery and 
equipment  (24%); textiles 
and footwear  (20%); mineral 
extraction (16%)  
PROEX -Equalization  
2017 2,260,000,000 182,239,627 20 6,519,678,408 Machinery and 
equipment  (55%); 
aircraft  (17%); 
vehicles  (15%)  
2018 1,556,282,700 225,959,115 17 7,692,934,899 Machinery and equipment 
(64%); vehicles (18%); 
aircraft (15%)  
2019 1,599,999,999 57,909,717 19 2,139,258,309 Machinery and 
equipment  (40%); 
vehicles  (36%); 
aircraft  (19%)  
2020 600,000,000 52,810,226 20 2,444,950,159 Machinery and 
equipment  (48%); 
vehicles  (30%); 
aircraft  (19%)  
2021 560,000,000  100,702,303 16 3,908,365,281  Machinery and 
equipment  (44%); 
aircraft  (34%); 
vehicles  (20%)  
a Outlay initially set in the annual budget law. Outlay values may be revised during a fiscal year.  
Source:  Information provided by the authorities.  
3.93.   Under the BNDES -EXIM programme , financing is made available both for the production of 
exportable goods and services (pre -shipment) and for their commercialization 
overseas  (post-shipment).107 Credit operations are conducted either directly by BNDES or through 
accredited financial institutions. Resources for BNDES operations, including BNDES -EXIM, come 
mostly from public funds (Section  3.3.1.3).  
3.94.   Access to export financing is governed by a general list of eligible goods and services.108 For 
most BNDES -EXIM sub -programmes, automatic qualification for financing remains conditional on 
meeting Basic Pro ductive Process (PPB) thresholds (Section  3.3.1.1) or industrial policy type 
accreditation criteria established by BNDES (Table  A3.2). According to the authorities, goods and 
services that do not meet these conditions may also benefit from the sub -programm es after receiving 
a favourable assessment (non -automatic qualification).  
3.95.   During 2017 -21, BNDES -EXIM financing was predominantly directed at exports of goods, with 
annual disbursements fluctuating considerably (Table  3.10). Export financing represented 
between 3.4% and 9.1% of the total resources loaned by the BNDES over the same period . The 
main beneficiary industries were machinery and equipment and transport equipment. The main 
 
107 Post-shipment financing may take the form of, inter alia , exporter credit, buyer's credit , and credit 
lines to an accredited overseas financial  institution.  
108 BNDES AEX Circular No.  09/2017, 25  August  2017. Viewed at: 
https://www.bndes.gov.br/wps/wcm /connect/site/6d007fe6 -a658-442f-8f0e-e7e5ddb1ac16/Circular -AEX-
09_2017.pdf?MOD=AJPERES&CVID=mARRL4z . WT/TPR/S/ 432 • Brazil  
 
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  export markets for projects benefitting from post -shipment financing were the  United  States, 
Paraguay , and Norway. The authorities indicate that the lack of services exports financing 
during  2018-21 is reflective of demand dynamics.  
Table 3.10 BNDES -EXIM disbursements, 2017 -21 
(USD mi llion) 
Year Beneficiaries  Total 
disbursements  For 
exports of 
goods  % of total 
exports of 
goods  For exports 
of services  % of total 
exports of 
services  
2017 74 815.41  726.66  0.3 88.76  0.0 
2018 66 1,113.36  1,113.36  0.5 0.00 0.0 
2019 65 470.88  470.88  0.2 0.00 0.0 
2020 39 1,131.44  1,131.44  0.5 0.00 0.0 
2021 17 477.87  477.87  0.2 0.00 0.0 
Source:  WTO Secretariat, based on information provided by BNDES.  
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.109 The ABGF is responsible for the structuring, 
management , and monitoring of SCE operations. The granting of SCE coverage is underwrit ten by 
the Chamber of Foreign Trade (CAMEX) under the Ministry of Economy. The FGE is financed by 
resources from the federal budget and by proceeds and financial gains from the fund's own activities 
and financial operations. According to the authorities, t here are no other export insurance or 
guarantee schemes funded by federal resources in Brazil.  
3.97.   The SCE covers export credit operations against various risks that may affect the production 
or overseas commercialization of Brazilian goods and services. There  are no minimum local content 
requirements and no eligibility restrictions as to the type of exported goods and services; destination 
country eligibility may be affected by internal risk exposure limits. The scheme may be used by 
exporters, financial insti tutions , and export credit agencies that finance, refinance , or guarantee 
Brazilian exports. In February 2020, COFIG suspended SCE operations for MSMEs110 until completion 
of the ongoing reform of the system of federal -level export support.111 
3.98.   During the rev iew period, the number of SCE policies issued annually maintained a downward 
trajectory, dropping from 11 in 2016 to 6 in 2017 and to 1 in 2021, mainly due to the suspension of 
operations for MSMEs and the drop in Brazilian construction services exports. H aving contracted in 
2017-19, the total amount of premiums underwritten rebounded strongly in 2020 -21 (Table  3.11). 
The FGE's total risk exposure declined over the same period and was dominated by export 
transactions to the United  States , the Bolivarian Rep ublic of Venezuela , and Cuba. The main 
beneficiaries of the SCE scheme were from the aircraft, infrastructure , and defence sectors.  
Table 3.11 SCE/FGE activity, 2017 -21 
Year Policies issued  Exportersa Total premiums (BRL)  FGE risk exposure,  
end of the year (USD)  
2017 6 61 258,0449,659.48  18,301,936,085.12  
2018 5 25 72,817,357.71  13,502,852,279.79  
2019 0 3 70,447,249.48  9,284,106,092.77  
2020 1 6 238,197,401.32  7,259,427,527.16  
2021 1 4 258,204,205.81  7,184,189,760.23  
a Indicates only exporters that have made a risk premium payment during the year.  
Source:  Information provided by the authorities.  
 
109 Law No.  12,712, 13 August  2012; and Decree No.  7,976, 1 April 2013.  
110 For the purposes of the SCE scheme, MSMEs are defined as com panies with sales of u p to 
BRL 90 million and exports of up to US D 3 million  in the previous calendar year.   
111 Viewed at: https://www.abgf.gov.br/abgf -na-midia/reforma -do-modelo -de-seguro -de-credito -a-
exportacao/ . WT/TPR/S/ 432 • Brazil  
 
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  3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
3.3.1.1   Overview  
3.99.   Brazil offers incentives and ass istance 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 remain 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 , accelerated depreciation , guarantees , grants , advisory services , and credit insurance.  
3.100.   The Brazilian Agency for Industrial Development maintains an online database with 
non-exhaustive information on federal and sub -federal industrial development support initiatives.112 
An overview of federal i ncentive schemes is presented in Table  A3.3.  
3.101.   Federal government expenditure on incentive and support programmes (excluding forgone 
revenue) amounted to BRL 12,234  million  (0.14% of GDP) in  2021, down from BRL  21,952  million 
(0.33% of GDP) in 2017.113 
3.102.   Incentives granted in the context of certain federal programmes promoting the production 
of information technology, telecommunications , and automation goods remain linked to Basic 
Productive Process (PPB) criteria, which are set with a view to maximizing t he utilization of 
productive capacity installed in Brazil. Compliance with PPB criteria also remains an eligibility 
requirement for incentives provided in the Manaus Free Trade Zone (ZFM). There have been 
no major changes to the institutional framework and  the factors taken into consideration in the 
definition of PPB criteria since Brazil's previous Review.114 The authorities indicate that, as 
from 2019, the beneficiaries of PPB -linked incentives are given the flexibility to choose which 
production processes  they would carry out locally. As from April 2020, provisional approvals for 
PPB compliance are no longer granted.115 Between January 2017 and May 2022, 67 new PPBs were 
adopted, and 269 PPBs were altered. PPBs were among Brazilian measures  that had been th e object 
of two dispute settlement cases examined in a harmonized procedure.116 
3.103.   Brazil's most recent notifications to the WTO Committee on Subsidies and Countervailing 
Measures  cover fiscal years 2017 through 2020.117 Further to its notifications, Brazil has  replie d to 
questions posed by the United  States and the United Kingdom.118 
3.3.1.2   Free trade zones  
3.104.   Brazil maintains a range of incentives for businesses residing in any of the free  trade 
zones  (FTZs) established to promote the development of the country's norther n region. There have 
been no major changes to the legal and institutional framework governing FTZs, as well as to the 
fiscal incentives offered, since Brazil's last Review.119 Federal tax incentives remain in place for the 
Manaus Free Zone (ZFM), the other seven FTZs , and the western Amazon region until the 
years  2073, 2050, and 2023, respectively. The Manaus Free Zone Superintendence  (SUFRAMA), an 
autonomous agency linked to the Ministry of Economy, remains in charge of administering these 
incentive regimes . Additional state -level fiscal incentives also remain in place.  
 
112 Viewed at: http://guia.abdi.com.br/default.aspx . 
113 Viewed at: https://www.tesourotransparente.gov.br/publicacoes/boletim -trimestral -de-estatisticas -
fiscais -do-governo -geral/2021/25 . 
114 WTO document  WT/TPR/S/358/Rev.1 , 18 October  2017.  
115 Law No. 13,969, 26 December  2019. 
116 WTO document series WT/DS472  and WT/DS497 . 
117 WTO document s G/SCM/N/343/BRA , 11 July 2019; and  G/SCM/N/372/BRA , 1 July 2021. 
118 WTO documents  G/SCM/Q2/BRA/53 -56, 26  August  2019-13 April 2022.  
119 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  WT/TPR/S/ 432 • Brazil  
 
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  3.105.   The number of incentive beneficiaries grew considerably during the review period. As 
at June 2022, the ZFM had 17,032 accredited companies whereas the remaining FTZs had a total 
of 10,046  companies. In addition, 12,854 companies benefited from the incentives regime for the 
western Amazon region. Eligibility for establishment in the ZFM remains conditional on observing 
PPB criteria (Section  3.3.1.1), as well as a number of environmental and soc ial requirements. The 
authorities indicate that the ZFM remains the only FTZ hosting production operations.  
3.106.   The ZFM is an industrial hub, producing mainly electronics, motorcycles, chemicals, 
thermoplastics, mechanical machinery, metallurgical products, co nsumer goods, and watches. Its 
trade balance with Brazil remained in surplus, and that with the rest of the world was in deficit, 
throughout 2017 -21. As at the time of Brazil's previous Review, ZFM resident businesses purchased 
inputs mostly overseas, wher eas the bulk of their sales revenue came from the Brazilian 
market  (Charts  3.5 and 3.6). During 2017 -21, investments in the ZFM totalled USD  40.5 billion . 
The ZFM employed on average 88,240 persons (excluding temporary workers and subcontractors) 
in 2021, up from 79,408 in 2017.120 ZFM incentives represented 0.54% of all forgone federal tax 
revenue in  2019 (up from 0.45% in 2017), with the figure projected to reach 0.84% in 2022.121 
Chart 3.5 ZFM trade balance, 2017 -21 
(BRL billion)  
 
Source:  SUFRAMA (May 2022), Indicadores de Desempenho do Polo Industrial de Manaus . 
Chart 3.6 ZFM expenditure on inputs and sales reve nue, 2017 -21 
(BRL billion)  
 
Source:  SUFRAMA (May 2022), Indicadores de Desempenho do Polo Industrial de Manaus . 
 
120 SUFRAMA ( May 2022), Indicadores de Desempenho do Polo Industrial de Manaus 201 6-2022. 
121 RFB (2019) , Statement of Tax Expenditures  (Demonstrativo dos Gastos Tributários, Estimativas 
Bases Efetivas ). 
-100-50050100150
020406080100120140160
2017 2018 2019 2020 2021Chart 3.[]  ZFM trade balance , 2017 -21
Exports abroadExports to BrazilLeft-hand scale:
Right -hand scale:Imports from abroadImports from Brazil
External trade balanceTrade balance with Brazil
Source:  SUFRAMA, Indicadores de Desempenho do Polo Industrial de Manaus 2017-2022.
WT/TPR/S/ 432 • Brazil  
 
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  3.3.1.3   Federal financing facilities  
3.107.   The BNDES remains the main entity providing federal financing to entrepreneurs in Brazil.122 
The range of its operations includes tailored financing, equity participation, non -reimbursable 
financial contributions, and guarantees. The authorities affirm that the BNDES remains without 
competitors in the Brazilian market for long -term, local-currenc y financing solutions, and its portfolio 
comprises mostly greenfield projects in nascent industries that have no other source of financing. 
There were no major changes to the eligibility criteria for BNDES support during 2017 -22.123 Support 
granted by the BNDES over 2017 -21 totalled BRL 324.6  billion  (Table  3.12), against 
BRL 602.5  billion over 2013 -16. The authorities attribute the relative decline in BNDES support to 
lower demand for financing, as well as to the termination of the Programme for the Sustainability of 
Investment (PSI) in 2015.  
Table 3.12 Brazilian development bank support, 2017 -21 
(BRL million)  
 2017  2018  2019  2020  2021  2017 -21 
Agriculture  14,375.22  14,659.68  15,869.73  16,619.81  16,721.0  78,245.4  
Industry  15,044.08  12,304.20  8,815.69  13,263.20  10,408.7  59,835.9  
Infrastructure  26,854.15  30,433.33  24,406.85  24,764.90  26,170.6  132.629.8  
Trade/services  14,477.33  11,906.00  6,221.58  10,273.55  11,001.6  53,880.1  
Total 70,750.79  69,303.22  55,313.84  64,921.47  64,301.9  324,591.2  
Source:  Information provided by the authorities.  
3.108.   The BNDES maintains several schemes that facilitate access to credit, either directly 
or through accredited financial institutions. Projects eligible for financing include implementation, 
expansion, and modernization of fixed assets; new machinery and equipment produced in Brazil and 
accredited by the BNDES; production of various goods and services for export and their ov erseas 
commercialization (Section  3.2.5); and working capital associated with a fixed investment. Indirect 
schemes (through the banking sector) represented 53.5% of total financing granted over 2017 -21. 
The BNDES FINEM programme remained the largest, accou nting for 40.3% of total disbursements, 
followed by the FINAME with 29.5% (Table  3.13). During 2017 -21, there were 452,414 beneficiaries 
of BNDES financing, with projects in agri -business, electricity and gas, trade , and land transport 
accounting for the b ulk of disbursements.  
Table 3.13 BNDES disbursements by credit scheme, 2017 -21 
(BRL million)  
Credit scheme  2017  2018  2019  2020  2021  2017 -21 
Direct schemes  29,185.2  34,535.7  26,344.5  31,347.4  29,491.4  150,904.3  
BNDES FINEM  25,228.8  29,213.5  23,541.2  24,258.6  20,840.4  123,082.4  
BNDES -EXIM 2,819.5  3,934.2  1,490.5  5,865.3  2,308.3  16,417.7  
BNDES Não reembolsável  485.5  437.2  230.8  282.0  256.4  1,691.9  
BNDES Mercado de Capitais  573.8  695.4  981.3  444.2  2,732.2  5,426.9  
BNDES Microcrédito  77.6 112.5  65.0 52.2 196.0  503.3  
BNDES FINAME  - 143.0  35.8 415.6  3,146.4  3,740.8  
BNDES Médias Empresas  - - - 29.5 11.8 41.3 
Indirect schemesa 41,565.6  34,767.5  28,969.3  33,574.1  34,810.5  173,686.9  
BNDES FINAME  14,646.0  19,006.3  16,586.3  16,113.1  20,447.2  86,798.9  
BNDES FINEM  3,828.5  1,354.4  994.8  633.7  913.6  7,724.9  
BNDES Automático  15,205.4  12,254.3  9,391.4  15,571.4  12,191.6  64,614.1  
BNDES FINAME Agrícola  4,940.3  5.9 0.3 - - 4,946.5  
BNDES -EXIM 150.5  266.5  353.4  59.4 258.7 1,088.5  
BNDES FINAME Leasing  109.7  - - - - 109.7  
 
122 BNDES activities are funded by returns on its operations; resources raised in foreign markets; a 
portion of all contributions to the Worker Support Fund (FA T); and public funds provided by the Federal 
Government, its sole shareholder, either in the form of paid -in capital or debt instruments.  
123 Under the BNDES Automatic and FINAME schemes, products with a previously confirmed  domestic 
content of at least  50% (in value terms) are automatically eligible for financing , while products with domestic  
content below th at threshold are subject to a non -automatic analysis procedure.  The domestic content 
threshold  for automatic eligibility  was reduced from 60% to 50% in December 2018.  WT/TPR/S/ 432 • Brazil  
 
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  Credit scheme  2017  2018  2019  2020  2021  2017 -21 
Cartão BNDES  2,685.3  1,880.2  1,643.2  1,196.5  999.3  8,404.5  
Total  70,750.8  69,303.2  55,313.8  64,921.5  64,301.9  324,591.2  
- Nil. 
a Through the banking sector.  
Source:  Information provided by the authorities.  
3.109.   Several BNDES schemes are operated on an interest rate equalization principle, whereby 
resources from the National Treasury are used to cover the difference between the rate charged by 
the BNDES and that effectively  paid by borrowers. During 2017 -21, disbursements under 
interest  rate equalization schemes totalled BRL 79.5 billion , representing 24.5% of total 
BNDES  disbursements.  
3.3.1.4   Research and development (R&D) programmes  
3.110.   Brazil's Scientific and Technological Developme nt Fund ( Fundo Nacional de Desenvolvimento 
Científico e Tecnológico  (FNDCT )), 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 enterpris e 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 fun ded by, inter alia, the 
National Treasury and the Worker Support Fund  (FAT). 
3.111.   The FNDCT comprises 15 sectoral and 2 cross -cutting sub -funds, each with specific focus 
and with its own resources (Table  3.14).124 While there cannot be any transfer of resources between 
sub-funds, they may jointly finance strategic projects. In administering the sectoral sub -funds, 
FINEP follows a regional policy: at least 30% must be invested in Brazil's north, north -east, and 
mid-west regions.125 
Table 3.14 Sectoral science, technology and innovation (S, T&I) funds, 2022  
Fund/Law  Resources  
Petroleum and Natural Gas Fund (CT -PETRO), 
Law No.  9,478 , 6 August  1997, amended by 
Law No. 12,734 , 30 November  2012 25% of the share of the value of royalties exceeding 5% of the 
production of petroleum and natural gas (contracts until 
3 December  2012)  
Energy Fund (CT -ENERG), Law No.  9,991 , 
24 July 2000 0.4% of revenues of concessionaries for the generation and 
transmission of electricity; 0.2% for distribution  
Hydric Resources Fund (CT -HIDRO), 
Law No. 9,993 , 24 July 2000 4% of the financial compensation of electricity generation 
companies  
Land Transport Fund (CT -TRANSPORTE), 
Law No. 9,992 , 24 July 2000 10% of the receipts obtained by the National Transportation 
Infrastructure Department stemming from contracts for the use of 
roads by communications and telecommunications systems  
Mining Fund (CT -MINERAL), Law No.  9,993 , 
24 July 2000 2% of the financial compensa tion of the mining sector  
Space Fund (CT -ESPACIAL), Law  No. 9,994 , 
24 July 2000 Licensing revenues of Brazilian Space Agency and 25% of federal 
revenues from space operations  
Information Technology Fund (CT -INFO), 
Law No. 10,176 , 11 January  2001 0.5% of informatics enterprises' revenues  
University and Enterprise Fund (CT -VERDE 
AMARELO), Laws No.  10,168 , 
29 December  2000 and No.  10,332 , 
19 December 2001  40% of the CIDE, plus 43% of the IPI on informatics products  
Infrastructure Fund (CT-INFRA), 
Law No. 10,197 , 14 February  2001 20% of other funds  
Water Transport and Naval Construction Fund 
(CT-AQUAVIÁRIO), Law No.  10,893 , 
13 July 2004 3% of the AFRMM tax revenue accruing to the Merchant Marine 
Fund (FMM)  
Amazon Fund (CT -AMAZÔNIA), 
Laws No. 8,387 , 30 December  1991; 
No. 10,176 , 11 January  2001; and 
Decree  No. 4,401 , 1 October  2002 At least 0.5% of gross sales of ZFM residents that produce 
informatics -related goods and services  
Biotechnology Fund (CT -BIO), 
Law No. 10,332 , 19 December  2001 7.5% of proceeds from CIDE  
 
124 The CT-INOVAR -AUTO  sub-fund expired on 31 December  2017. 
125 The only exception is the sub -fund for the Amazon region dedicated to financing activities in the 
states of Amazonas, Rondônia, Roraima, and Acre.  WT/TPR/S/ 432 • Brazil  
 
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  Fund/Law  Resources  
Agri-business Fund (CT -AGRO), 
Law No. 10,332 , 19 December  2001 17.5% of proceeds from CIDE  
Aeronautical Fund, (CT -AERO), 
Law No. 10,332 , 19 December  2001 7.5% of proceeds from CIDE  
Health Fund (CT -SAÚDE), Law No. 10,332 , 
19 December  2001 17.5% of proceeds from CIDE  
Source:  Information provided by the authorities.  
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 financial support for the organization of 
conferences, seminars , and fairs approved by the National Council for Scientific and Technological 
Development  (CNPq). T he authorities affirm that eligibility requirements for FNDCT support are not 
based on any nationality, residency, or domestic ownership criteria.  
3.113.   FINEP support may take the form of repayable financing, non -repayable financing to 
non-profit institutions, g rants ( subvenção econômica ) to enterprises, and investments in projects 
and companies.126 FINEP accepts and analyses repayable financing applications continuously, 
whereas applications for non -repayable financing must be submitted in response to a public call for 
proposals. Non -repayable funding is made available to universities and research c entres to improve 
R&D infrastructure, and in programmes and areas determined by the FNDCT's steering committees.  
3.114.   Over the 2017 -21 period , FNDCT disbursements totalled BRL 10.1 billion  for 14,039 projects. 
Significant shares of this amount were attributable  to the cross -cutting, CT -INFRA, and CT -SAÚDE 
sub-funds.  
3.3.2   Standards and other technical requirements  
3.115.   Brazil's institutional framework for the implementation and administration of the 
TBT Agreement has remained broadly unchanged since its previous Review.127 The National Institute 
of Metrology, Quality and Technology (INMETRO) continues serving as the executive secretariat of 
the National Council of Metrology, Standardization and Industrial Quality (CONMETRO); the 
coordinator of the Brazilian Network of Legal Metrology and Quality (RBMLQ -I); the regulatory and 
supervising authority for legal metrology and compulsory conformity assessment in the areas of 
security, environmental , and health protection, and prevention of deceptive trade practices; and the 
national  enquiry point and notification authority under the TBT  Agreement. INMETRO also 
represents  Brazil at the Inter -American Accreditation Cooperation, the International Accreditation 
Forum, the International Laboratory Accreditation Cooperation, the Internatio nal Bureau of Weights 
and Measures, the International Organization of Legal Metrology, and in relevant initiatives 
within  MERCOSUR, LAIA, and the Organization of American States.  
3.116.   The Brazilian Association for Technical Standardization (ABNT) remains in cha rge of 
coordinating the consensus -based development of Brazilian standards, and represents Brazil in 
the ISO/IEC and in regional normalization forums. Besides CONMETRO and INMETRO, 
some  31 federal agencies are responsible for issuing technical regulations and determining 
conformity assessment systems in their respective areas of competence. Any of these competent 
agencies may request that INMETRO coordinate conformity assessment activities for a particular 
technical regulation.  
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 licen ce through S iscomex  and request its analysis for approval at INMETRO.129 Other 
regulatory agencies, such as ANVISA, MAPA , and ANATEL, also have competence to require 
 
126 Investments may be made eith er directly or by way of venture capital and seed money funds . 
127 WTO document  WT/TPR/S/358/Rev.1 , 18 October  2017.  
128 This requirement does not apply to products and services under the regulatory competence of other 
federal agencies. Items subject to patter n approval by INMETRO are exempted.  
129 INMETRO Ordinance No.  18, 14 January  2016.  WT/TPR/S/ 432 • Brazil  
 
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  inscription in their respective registers. Pharmaceutical raw materials can only be importe d by 
companies holding an authorization to operate in Brazil, issued by ANVISA.  
3.118.   In accordance with the Economic Freedom Rights legislation (Section  2.4.1), INMETRO has 
been modernizing its regulatory approval methods with a view to cutting red tape and sim plifying 
rules. Tacit approval timelines for certain INMETRO decisions entered into force on 1  February  2020 
(Table  3.15). In addition, as from July 2020, interested parties may request the revision of outdated 
technical regulations that depart from intern ational standards.130 In September 2020, INMETRO also 
put in place a three -level risk assessment system for legal metrology and compulsory conformity 
assessment activities.131 In February 2022, INMETRO formally adopted a new regulatory model, 
which was the r esult of extensive analysis and public consultations.132 
Table 3.15 INMETRO tacit approval timelines, 2022  
Decision  Maximum period (days)  
Import licence  30 
Inscription in the register of items  55 
Inscription in the register of supplier's declarations  100 
Pattern approval (measuring instrument prototypes)  150 
Repair and maintenance authorization (regulated measuring instruments)  60 
Source:  INMETRO Ordinance No.  161, 13 April 2021.  
3.119.   Brazil's modalities for elaboration, adoption and revision of standards, technical regulations , 
and conformity assessment procedures have not changed significantly since its previous Review.133 
Nevertheless, initiatives aimed at improving MERCOSUR's regulat ory environment brought about 
updated procedures for elaboration, revision, and repeal of MERCOSUR technical regulations and for 
carrying out MERCOSUR conformity assessments134, as well as a MERCOSUR Agreement on Good 
Regulatory Practices and Regulatory Coh erence and a General Framework for Trade Facilitating 
Initiatives Within MERCOSUR.135 
3.120.   Brazil's approach to granting equivalence remains based on the acceptance of some 
conformity assessment outcomes, including test results and audit reports, without explici t 
recognition of foreign technical regulations. Brazil did not notify to the WTO any plurilateral or 
bilateral agreements on TBT matters during the review period. Through INMETRO, Brazil is a party 
to some 120 TBT -related technical cooperation instruments,  of which 89  (including  19 in the field of 
accreditation) are currently in force.  
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 techni cal 
regulations and conformity assessment procedures. Technical regulations 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 a llowed 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 genera lly required, except in exceptional cases. The authorities indicate 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 regulations is five years.  
3.122.   Generally, the process for adopting conformity assessment procedures is similar to the 
one for technical regulations. Conformity assessment may involve certification, perf ormance 
verification, sampling, labelling, inspection, 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 medium risk to 
 
130 Decree No. 10,229, 02 May 2020.  
131 INMETRO Ordinance s No. 265, 10  August  2020; and  No. 282, 26 August  2020. 
132 Viewed at: https://www.gov.br/inmetro/pt -br/assuntos/regulamentacao/modelo -regulatorio -do-
inmetro . 
133 WTO document  WT/TPR/S/358/Rev.1 , 18 October  2017.  
134 Common Market  Group (GMC) Resolution No. 45/17 , 19 December  2017. 
135 Common Market Council (CMC) Decision s No. 20/18 , 17 December  2018; and No.  16/19, 
4 December 2019.  WT/TPR/S/ 432 • Brazil  
 
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  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 mu st 
bear this information in Portuguese and indicate the brand or name of the manufacturer.  
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 Practice 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  technic al committees. Draft standards 
undergo a process of public consultations for 30 days. 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. Brazilia n standards may be used as base reference for technical regulations 
adopted by INMETRO.  
3.124.   As at May 2022, there were 8,934  standards in force in Brazil. Between  January  2017 and 
May 2022, Brazil published 3,093  new standards, some 41% of which were adoptions of 
international  (ISO/IEC) standards. As at 31  May 2022, INMETRO applied the following 
132 compulsory conformity assessment procedures: certification (90 products and 8  services); 
conformity declaration by the supplier (16 products and 10 service s); inspection (7 products); and 
audit (1 process). Additional compulsory conformity assessment procedures are administered by 
other competent entities, such as the Brazilian Health Regulatory Agency (ANVISA), the National 
Telecommunications Agency  ANATEL,  and MAPA. Information on conformity assessment measures 
affecting imports is made available in S iscomex  (Section  3.1.1.).  
3.125.   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. Over the same period, Brazil 
was asked to respond to  six newly raised specific trade concerns at the TBT Committee.137 
3.126.   INMETRO's General Coordination of Accreditation (CGCRE) remains Brazil's national 
accreditation body in the field of conformity assessment.138 It accredits entities engaging in 
certification,  inspection, calibration, and testing. 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 st ipulate it as a prerequisite.  
3.127.   As at 31  May 2022, 493 calibration laboratories and 1,274 testing laboratories were 
accredited in Brazil, down from 382 and 1,046 , respectively , in January 2017. There were also 
1,176  entities with active accreditations to per form conformity assessments (certification, 
inspection, and performance verification), up from 879 in January 2017. Among the 
Brazilian -accredited entities, five  laboratories were located overseas.  
3.3.3   Sanitary and phytosanitary requirements  
3.128.   There have been no major changes to the legal and institutional frameworks for sanitary and 
phytosanitary (SPS) protection since Brazil's previous Review.139 MAPA, through its Secretariat of 
Animal and Plant Health and Inspection (SDA), remains in charge of  SPS measures related to animal 
and plant health. ANVISA, an autonomous body, retains regulation and surveillance responsibilities 
for the protection of human health, including the setting of maximum residue levels of pesticides.140 
The National Technical C ommission on Biosafety  (CTNBio), a multidisciplinary advisory body to the 
Federal Government, remains Brazil's authority for all activities involving genetically modified 
 
136 WTO document G/TBT/CS/2/Rev. 22, 29 February  2016. 
137 Viewed at:  https://epingalert.org/ . 
138 Decree No.  7,938,  19 February  2013.  
139 WTO document  WT/TPR/S/358/Rev.1 , 18 October  2017.  
140 Besides coordinating the National Sanitary Surveillance System and sanitary controls at 
Brazil's  borders, ANVISA regulates health services, public health laboratories, and health -related products 
(including their advertising). ANVISA is connected to the Ministry of Health through a management contract, 
which is renewed periodically.  WT/TPR/S/ 432 • Brazil  
 
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  organisms (GMOs). ANVISA and MAPA continue sharing regulatory and surveillance compet ences 
over certain vegetable products.  
3.129.   Brazil's enquiry points and notification authority for SPS matters have not changed since its 
last Review.141 Between January  2017 and May 2022, Brazil submitted to the  WTO 
1,155  notifications, including 2 emergency an d 834 regular. Approximately 14% of the measures 
announced in regular notifications allowed for a comment period of at least 60 days, and 11% were 
based on international standards. Over the same period, Brazil was asked to respond to one newly 
raised speci fic trade concern at the Committee on Sanitary and Phytosanitary Measures.142 
3.130.   Competence for the adoption of SPS measures remains vested in ANVISA and MAPA. The 
authorities indicate that there have been no major changes to either entity's adoption procedure s 
since Brazil's last Review.143 A non -automatic licensing system remains in place for imports subject 
to SPS controls. The importation of some of these goods may also require prior authorization, 
certification (for unrestricted commercialization or quality ), and/or inscription in a register.  
3.131.   In general, SPS controls for exports from Brazil include registration and accreditation of the 
producer and certification of the exported good. As from October 2021, registration certificates for 
exports of pesticides m ay be granted on the basis of the product's registration in the destination 
jurisdiction, thereby enabling Brazilian -based producers to export pesticides that do not comply with 
the requirements for commercialization on the Brazilian market.144 Product -specific import and 
export formalities (including phytosanitary, quality , and identity requirements) can be consulted and 
fulfilled through S iscomex . 
3.132.   The prerequisites for the importation of products of animal (including aquatic animal) 
origin  into Brazil incl ude 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.145 Each shipment to Brazil must be accom panied 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 -products may be physically inspected at 
the port of entry, with samples taken for labora tory testing whenever necessary, depending on the 
foreign establishment's compliance record.146 
3.133.   Imports of plants and plant products are subject to documentary and inspection 
requirements that vary according to the product's intended use and its classificat ion in one of 
five risk categories. Plant products commercialized in Brazil, including imports, must comply with 
quality -related characteristics (e.g. size, purity, and maturity) laid out in the Brazilian classification 
system, whenever a specific standard  to that effect is in place; the classification of imported plant 
products is done by MAPA.147 The importation of seeds for commercial purposes is strictly limited to 
the species and varieties contained in the National Register of Plant Varieties (RNC) main tained 
by MAPA.148 The conformity of imports is verified at the border, either by the SDA or by accredited 
private companies.149 
3.134.   Importers of controlled foodstuffs must obtain an authorization from ANVISA and a licence 
from a state or municipal sanitary auth ority; the licence serves as an authorization from the National 
Sanitary Surveillance System and is valid throughout Brazil. Some of these products can only be 
imported after inscription in ANVISA's sanitary register.150 
 
141 WTO document  WT/TPR/S/358/Rev.1 , 18 October  2017.  
142 Viewed at:  https://epingalert.org/ . 
143 WTO document  WT/TPR/S/358/Rev.1 , 18 October  2017.  
144 Decree No.  10,833, 7 October  2021.  
145 Normative Instruction No.  35, 25 September  2018. 
146 In general, testing is carried out at MAPA laboratories; when necessary, laboratories officially 
accredited by MAPA may also be used. Testing costs are paid by the owner of the products.  
147 Law No.  9,972, 25 May 2000; and Decree No.  6,268, 22 November  2007.  
148 New plant varieties may be included in the register after specific trials designed to verify their 
adaptation to Brazilian conditions (Normative Instruction No.  50, 15 December  1998).  
149 The rules and guidelines that regulate inspe ctions of imported plants and their products are laid out 
in Normative Instruction MAPA No.  36, 10 November  2006 (WTO document G/SPS/N/BRA/144/Add.1 , 
28 November 2006 and addenda).  
150 Products that require registration are listed in ANVISA Resolution RDC No . 278, 22 September  2005.  WT/TPR/S/ 432 • Brazil  
 
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  3.135.   Brazil maintains an Importation Aler t Regime (RAI) targeting foreign establishments whose 
shipments of edible animal products have been found to be non -compliant with Brazilian 
SPS requirements. Whenever an irregularity is detected and an alert is issued, the overseas 
establishment's subsequ ent shipments (at least 10) of the same product are subject to  100% 
physical inspections and laboratory testing. Repeated irregularities of the same nature would trigger 
suspension of the establishment's licence to export to Brazil. Shipments of goods prod uced and 
certified after the suspension date will not be allowed to enter Brazil, even though importation may 
have already been authorized. If no sufficient evidence of corrective measures taken is 
received  90 days after notification of the exporting count ry's competent authorities, the SDA may 
revoke the establishment's accreditation. In case of recurrent serious irregularities, the SDA may 
suspend the accreditation of all similar establishments from that country or of the entire country.  
3.136.   Whenever required  by the destination jurisdiction, Brazilian -based exporters of products of 
animal origin must obtain accreditation ( habilitação ) for their target market, conditional on a 
favourable official opinion ( parecer official ) by the SDA as to the applicant's docum entary conformity 
and capacity to comply with any market -specific SPS  requirements. A sanitary certificate must also 
be obtained from the SDA for each export shipment.  
3.137.   Brazil prohibits the commercialization, including imports and exports, of hormonal 
substances with anabolic characteristics, unless intended for therapeutic or research use.151 The use 
of substances with anabolic hormonal properties for the purpose of promoting growth and weight in 
bovines and poultry destined for slaughter is ba nned.152 
3.3.4   Competition policy and price controls  
3.3.4.1   Competition policy  
3.138.   The Brazilian competition regime did not undergo major changes during the review period, 
having been rationalized in 2012.153 The Administrative Council for Economic Defen se (CADE) 
remains Bra zil's authority for the protection of competition.154 Consumer protection remains the 
remit of the National Secretariat for Consumers (SENACON). Responsibility for competition advocacy 
is currently shared between CADE and the Secretariat for  Economic Monito ring, and Competition and 
Competitiveness Advocacy under the Ministry of Economy.155 
3.139.   As in most other jurisdictions, Brazil's competition regime does not apply to export -oriented 
anti-competitive practices (including cartels) that have no effect on the dome stic market. 
Additionally, CADE's remit does not include the regulation of prices, the control of public aid, and 
the analysis of anti -competitive conduct's criminal aspects.156 CADE and Brazil's specialized 
regulatory agencies have complementary competence s in regulated sectors; the former has 
authority over competition -related matters, and the latter are competent to issue rulings on 
regulatory grounds.157 
 
151 MAPA Normative Instruction No.  55, 1 December  2011.  
152 MAPA Normative Instruction No.  17, 18 June 2004.  
153 WTO Document WT/TPR/S/283/Rev.1, 26  July 2013.  
154 The enactment of Law No. 13,848, 25 June 2019, conferred on CADE the same status as other 
regulatory agencies, with administrative, budgetary, and financial autonomy . 
155 Decree No.  11,036, 7 April 2022. 
156 CADE remains composed of three bodies: the Administrative Tribunal for Economic Defence, the 
General Superintendence, and the Department of Economic Studies. CADE 's activities are governed by 
Law No. 12,529, 30 November  2011; and Resolution N o. 1, 29 May 2012.  
157 At end -June 2022,  CADE had technical cooperation agreements with the National Agency for Data 
Protection (ANPD), the National Telecommunications Agency (ANATEL), the National Supplementary Health 
Agency (ANS), the National Agency for Waterway Transportation (ANTAQ), the National Civil Aviation 
Agency  (ANAC), the National Cinema Agency (ANCINE), the National Health Regulatory Agency (ANVISA), the 
National Petroleum Agency  (ANP), the National Land Transportation Agency (ANTT), the National Institute of 
Industrial Property  (INPI), and the Securities and Exchange Commission (CVM).  A Joint Normative Act, adopted 
by CADE and the BCB  in December 2018,  sets out the procedures for coordinated action  in merger reviews and 
in the analysis of anti -competitive conduct in Brazil's financi al system. Viewed 
at: https://www.bcb.gov.br/conteudo/home -
ptbr/TextosApresentacoes/Ato%20normativo%20conjunto%205_12_2018%20li mpa.pdf . WT/TPR/S/ 432 • Brazil  
 
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  3.140.   A review of competition policy in Brazil, carried out by the OECD in 2019158, recognized the 
considerab le advances made to date but found scope for further improvements to the legal and 
institutional frameworks. Reform recommendations included making a clearer delineation of the 
investigative and adjudicative functions within CADE , disciplining the recourse to settlement 
agreements , modernizing merger notification criteria , reinforcing penalties and their application , 
fostering private enforcement activity , and boosting international cooperation through provisions on 
investigative a ssistance and exchange of confidential information (without investigated 
parties'  consent) with enforcers in overseas jurisdictions. CADE was also encouraged to speed up 
investigations and reduce case backlog , dedicate more resources to the investigation o f conduct 
cases , address the relatively high staff turnover , and focus on issuing substantive guidelines, in 
addition to procedural ones.159 
3.141.   As a follow -up to the OECD review's recommendations, CADE has created a dedicated unit 
for unilateral conduct analys is and has implemented several transparency -enhancing initiatives. 
During 2017 -22, CADE issued or updated guidelines on submitting data to its Department of 
Economic Studies , fighting cartels in public procurement , antitrust remedies , applying for leniency , 
and submitting evidence in leniency applications. In June 2021, CADE also published the Cade 
Mecum – a compendium of Brazil's antitrust -related legislation. In addition, CADE continued 
improving service delivery through digital means. Besides strengtheni ng its artificial 
intelligence -based investigative means, CADE has launched several online tools, such as a digital 
questionnaire for market information -gathering, a case law database, and a leniency application 
portal ( Clique Denúncia ). The authorities in dicate that Senate Bill No. 283/2016, intended to 
establish a new framework for private antitrust enforcement in Brazil, is currently undergoing a 
legality review at the Chamber of Deputies, which is the last stage before presidential approval.  
3.142.   Since 2017,  CADE has investigated various cases of unilateral conduct in  the transportation 
sector. It has also investigated bid -rigging in public procurement related to construction works and 
outsourced services. In addition, it has been investigating cartels in the  construction and automobile 
manufacturing markets. During that period, with a view to providing inputs for regulatory reforms, 
CADE (in collaboration with the OECD) carried out a review of Brazil's federal -level public 
procurement framework and launched a n assessment of public policies governing ports and 
civil aviation.  
3.143.   As part of its leniency programme, CADE may conclude cease -and-desist agreements with 
investigated undertakings. The settlement would suspend CADE's investigation conditional on the 
fulfilment of specific commitments, including payment of reduced fines, within a set timeframe. 
Settlement agreements are not reviewed by  Brazil's courts and no finding of an infringement is put 
on record in non -cartel cases. During the review period, CADE concl uded a significant number of 
cease -and-desist agreements, although annual figures indicate a downward trend (Table  3.16).  
3.144.   In 2019, two settlement agreements suspended CADE's investigations of alleged abuse of 
dominance in the oil refinery market and of all eged anti -competitive practices in the natural gas 
market by the SOE Petrobras . Under the agreements, Petrobras  committed to divest eight refineries, 
fuel transportation assets, its three natural gas carriers , and any indirect ownership of gas 
distribution  companies.  
Table 3.16 Competition enforcement, 2017 -21 
 2017  2018  2019  2020  2021  
Applications and complaints  503 497 548 556 711 
Merger applications submitted  369 405 442 471 627 
 Reviewed  354 392 420 447 607 
 Not reviewed  9 9 17 22 19 
Merger applications withdrawn  6 4 5 2 1 
Leniency applications  26 11 14 6 20 
Requests for advisory opinions  3 7 3 3 4 
Investigations launched  105 74 89 76 48 
Reviews and investigationsa concluded  392 429 461 471 636 
 
158 OECD (2019), OECD Peer Reviews of Competition Law and Policy : Brazil.  Viewed at: 
www.oecd.org/daf/competition/oecd -peer-reviews -of-competition -law-andpolicy -brazil -2019.htm . 
159 OECD (2019), OECD Peer Reviews of Competition La w and Policy : Brazil.  Viewed at: 
www.oecd.org/daf/competition/oecd -peer-reviews -of-competition -law-andpolicy -brazil -2019.htm . WT/TPR/S/ 432 • Brazil  
 
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   2017  2018  2019  2020  2021  
Mergers  379 404 433 454 611 
 Cleared unconditionally  353 384 406 423 585 
 Cleared subject to remedies  5 6 5 7 6 
 Blocked  3 1 0 0 0 
Abuse of dominanceb 1 4 10 3 2 
Restrictive practicesb 12 21 18 14 23 
Settlements (cease -and-desist 
agreements) approved  70 60 19 17 9 
Total administrative fines (BRL million)  941.7  1,955  960.2  279.4  1,356  
a Investigations launched by the Office of the Superintendent General.  
b Cases adjudicated by the Administrative Tribunal for Economic Defence.  
Source:  CADE.  
3.145.   During the review period, Brazil continued to strengthen and formalize its international 
cooperation efforts on competition policy. As at June 2022, CADE had 21 non -binding technical 
cooperation agreements with overseas competition a uthorities and international organizations. 
Besides playing a leading role in the discussion of antitrust -related matters within MERCOSUR , Brazil 
is also an active participant in international forums on competition policy, including the International 
Compe tition Network, the BRICS International Competition Conference, and the Inter -American 
Alliance for Competition Defence.  
3.3.4.2   Price controls  
3.146.   The consumer price index (IPCA) used in Brazil's inflation targeting regime contains several 
goods and services whose pr ices are deemed insensitive to supply and demand fluctuations, because 
they have been stipulated in long -term contracts or set by a public sector entity (Table  3.17).  
Table 3.17 Regulated prices, 2022  
 Competent entity  
Regulated at the federal level  
Residential electricity  Brazilian Electricity Regulatory Agency (ANEEL)  
Landline phone services  National Telecommunications Agency (ANATEL)  
Healthcare plans  National Regulatory Agency for Private Health Insurance 
and Plans (ANS)  
Pharmaceutical products  Drug Market Regulation Chamber (inter -ministerial body)  
Gambling (lottery tickets)  Caixa Econômica Federal  (federal state -owned bank)  
Interstate bus service  National Transportation Agency (ANTT)  
Postal services (letters)  Empresa Brasileira de Correios e Telégrafos/MCTI  
Regulated at the sub -federal level  
Compressed natural gas (vehicle fuel)  State governments  
Subway  State governments  
Public transport: city bus fares, intercity bus 
fares, city train fares  Municipalities  
Water and sewage fees  Municipalities or state regulatory agencies  
Taxi fares  State governments  
Vehicle registration fees  State governments  
Notary services  State governments  
Natural gas (piped cooking gas)  Rio de Janeiro, São Paulo, and Curitiba municipalities  
Road tolls  State governments  
Traffic fines  State governments  
Regulated professions fees  Regulatory bodies  
Note:  The BCB compiles this information for illustrative proposes only. It does not have any formal control 
over the respective policies.  
Source:  BCB. 
3.147.   Although formally deregulated since 2002, prices of refined petroleum products could be 
influenced by the state -contro lled Petrobras , which still holds a dominant position in certain market 
segments in Brazil (Section  4.2.2.3.1.3 ). Residential electricity and fixed -line telephone tariffs are 
set through concession contracts awarded by the Federal Government. Since 2006, t heir annual WT/TPR/S/ 432 • Brazil  
 
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  readjustments are linked to general price indices. Prices for some  90% of pharmaceutical products 
are regulated by way of maximum manufacturer and consumer prices, which are adjusted annually. 
The timing and size of readjustment of the remainin g regulated prices are at the discretion of the 
respective competent entities.  
3.3.5   State trading, state -owned enterprises, and privatization  
3.148.   Brazil indicated the existence of one state trading enterprise (STE), the 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".160 Brazil's STE notifications have been the subject of d iscussions at 
the Working Party on State Trading Enterprises.161 
3.149.   The Federal Government continues to control a relatively large number of companies with 
commercial activities in a range of industries (Chart  3.7).162 Many federal SOEs are also shareholders 
in various private companies. In addition, there are various "public companies" owned or controlled 
by state and municipal governments; consolidated information on them is not available.  
Chart 3.7 Federal SOEs by sector, December 2021  
 
Source:  Ministry of Economy, Federal State -Owned Enterprises Bulletin , Fourth Quarter 2021.  
3.150.   In December 2021, the Ministry of Economy reported the existence of 154  federal 
SOEs (down from  220 at end -2017), including 47 directly controlled enterprises. These 
SOEs employed 446,607 people, down from 503,376 in 2017.163 As at the time of Brazil's previous 
Review, 18  SOEs remained dependent on Federal Treasury funding for their operations; in  2021 
their combined budgetary a llocations amounted to BRL 26.8 billion .164 The authorities indicate that, 
at end -June 2022, federal SOEs numbered 133, following the dilution of Brazil's shareholdings in 
Eletrobras  from 72% to 45% and the privatization of other state -owned assets (Section s 1.2.4.2 
and 4.2.2.4).  
3.151.   Following the establishment of the Ministry of Economy in 2019, its Special Secretariat for 
Denationalization, Divestment and Markets (SEDDM) has been assigned to, inter alia , oversee the 
reorganization of the State's role in the ec onomy , the formulation of downsizing and divestment 
policies , and the management of the Union's real estate assets. The SEDDM's responsibilities, within 
the Ministry of Economy's remit, also include: (i) proposing, coordinating , and executing policies and 
actions related to privatization and divestment; (ii) coordinating and supervising the execution of 
the National Privatization Programme; (iii) formulating guidelines, and coordinating and defining 
corporate governance criteria for federal SOEs; and  (iv) advising on strategic corporate issues 
of SOEs linked to the Ministry of Economy. The Secretariat for Coordination and Governance of State 
Enterprises (SEST) under the SEDDM is responsible for, inter alia , coordinating the preparation of 
 
160 WTO documents  G/STR/N/18/BRA , 2 November  2020; and G/STR/N/17/BRA , 11 September  2018. 
161 WTO document G/STR/M/34 , 6 December  2018. 
162 According to the authorities' definition, federal SOEs are those companies in which Brazil (the Union) 
owns more than 50% of voting shares.  
163 Although Brazil's federal SOEs have broad autonomy in the management of their workforce, they 
must seek authoriza tion from the Ministry of Economy's Secretariat for Coordination and Governance of State 
Enterprises in specific cases involving hiring or dismissal of staff.  
164 Ministry of Economy (2021),  Federal State -Owned Enterprises Bulletin , Fourth  Quarter. Viewed 
at: https://www.gov.br/economia/pt -br/centrais -de-conteudo/publicaco es/boletins/boletim -das-empresas -
estatais -federais/arquivos/boletim -das-empresas -estatais -federais -20o-edicao . 
71 46 14 7 5 5 3 3 
Oil, gas & electricityFinancial intermediationInfrastructure & transportResearch & project/contract managementManufacturingInformation & communication technologiesHealthcareFood supply
Source:  Ministry of Economy, Federal State -Owned Enterprises Bulletin , Fourth quarter 2021.Chart 3.[BRA] Federal SOEs by sector, December 2021WT/TPR/S/ 432 • Brazil  
 
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  SOEs'  expenditure a nd investment programmes; monitoring SOEs' budget execution; elaborating 
guidelines and actionable parameters on personnel, governance , and budget policies; compiling and 
publishing data submitted by SOEs; and advising on SOE -related matters.165 
3.152.   During the review period, the main legal framework amendments concerning SOEs included 
rules disciplining the divestment of assets by federal mixed -capital companies166, procedures and 
criteria for SOE liquidation167, and governance matters.168 The authorities indicate that SEDDM and 
SEST also took steps to increase transparency regarding federal SOEs' activities and to improve their 
internal control and strategic planning mechanisms.  
3.153.   Some federal SOEs continue to hold dominant positions in their respective markets or 
segments thereof. During the review period, Brazil took steps to stem certain SOEs' market 
dominance and facilitate the entry of competitors. In July 2019, under two settlement agreements 
with CADE (Section  3.3.4.1), Petrobras  committed to divest various ass ets with a view to fostering 
competition in the natural gas and oil refinery markets. Besides diluting the Union's  shareholding in 
Eletrobras , the company's additional equity financing in June 2022 was conditional on the granting 
of two new concessions for  electricity generation  (Section  4.2.2.4).169 
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. I n October 2020, Brazil circulated 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 o ffer in November  2021, and its 
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.170 
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 Braz il'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 international competitive bidding  
continued to be very low, ranging from 0% to 0.23% (Table  3.18).  
Table 3.18 Value of federal government procurement in Brazil, 2016 -20 
(BRL million)  
Year Total value of 
procurement  Share (%) of 
GDP Procurement subject to international 
competi tive 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 
Source:  Information provided by the Ministry of Economy.  
3.156.   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 
 
165 Decree N o. 9,745, 8 April 2019, amended by Decree s No. 10,761, 2 August  2021; and No. 11,036, 
7 April 2022. 
166 Decree No.  9,188, 1 November  2017. 
167 Decree No.  9,589, 29 November  2018, amended by Decree No.  10,549, 23 November  2020. 
168 Resolutions issued by the Inter ministerial Commission on Corporate Governance and Administration  
of the Union 's Equity Interests (CGPAR ) can be viewed at : https://www.gov.br/economia/pt -
br/assuntos/empresas -estatais -federais/legislacao/resolucoes/resolucao .  
169 Provisional Measure No.  1,031,  23 February  2021, converted into Law No.  14,182, 12 July 2021.  
170 For additional details on Brazil's accession  to the GPA 2012 , see WTO documents GPA/AR/3 , 
Section  3.1.2; and GPA/AR/4 , Section  3.1.2.  
171 IPEA and CEPA  (2021), Cadernos Brasil na OCDE – Compras Públicas . Viewed at: 
https://repositorio.cepal.org/bitstream/handle/11362/47061/S2100424_pt.pdf?sequence=1&isAllowed=y . WT/TPR/S/ 432 • Brazil  
 
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  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 Contract Law), which aimed at up dating 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 covered by the  2021 
Procurement  Law.174 
3.157.   The 2021 Procurement Law entered into force on 1  April 2021 and will co -exist with 
the 1993 Procurement Law for a period of two years, i.e. until 1  April 2023. At that date, 
the 1993 Procurement Law will no longer be in force. During the coexistence period, procuring 
entities may choose which of the two laws to apply for each procurement. The  electronic systems of 
the Federal Government will accommodate both regimes during the coexistence period.  
3.158.   To facilitate the implementation of the 2021 Procurement Law, the Secretariat of 
Management of the Ministry of Economy (SEGES) has enacted normative rulings and ordinances, 
including to establish: (i)  administrative procedures for price research for the procurement of goods 
and services; (ii)  procedures for direct awards using electronic procurement tools/platforms; 
(iii) rules to define the estimated total value for the procurement of goods and services; (iv)  rules 
for the designation and performance of contract inspectors and managers; and (v)  the Management 
Committee of the National Network of Government Procurement.175 
3.159.   Article  11 of the 2021 Procurem ent 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 objec t; 
(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)  competiti on (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 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. The selected suppliers are expected to submit their 
final proposals at the end of the dialogue phase.  
3.160.   In addition, direct award contra cting (or limited tendering) remains possible under the 
2021 Procurement Law. For example, Articles 74 and 75 provide a list of cases in which procuring 
entities may or must resort to limited tendering, including for procurement aimed at fostering 
scientif ic 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 
between public entities.  
3.161.   In 2021, 99% of all federal administration pr ocurement took place through reverse auction 
(Table  3.19). Pursuant to this procurement method, a contract is awarded based on the lowest price 
criterion or highest discount. The  2021 Procurement Law requires this method for the acquisition of 
ordinary goo ds and services. Reverse auction does not apply, however, to the procurement of some 
specialized technical services and engineering works and services. Reverse auctions must be 
conducted electronically by entities at the federal level and when states, muni cipalities, and the 
Federal District conduct procurement with federal resources.176 
 
172 WTO document s WT/TPR/S/283/Rev.1 , Section  3.4.4; and WT/TPR/S/358 , Section  3.3.6.  
173 Law No.  14,133, 1  April 2021. Viewed at: http://www.planalto.gov.br/ccivil_03/_ato2019 -
2022/2021/lei/L14133.htm ; and WTO document GPA/ACC/BRA/2/Add.2 , 7 October 2021 . 
174 SOEs at the central and subcentral levels o f government continue to be governed by 
Law No. 13,303/16, which provides additional flexibility and autonomy in terms of procurement procedures.  
175 Normative Ruling s of SEGES No. 65, 7 July 2021; No. 67, 8 July 2021; No. 72, 12  August  2021; and 
No. 75, 16 August  2021; and Decree No.  10,764, 9  August  2021. 
176 Decree No.  10,024, 20 September  2019.  WT/TPR/S/ 432 • Brazil  
 
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  Table 3.19 Federal administration procurement by method, 2017 -21 
(BRL million)  
Method  2017  2018  2019  2020  2021  
Value  % Value  % Value  % Value  % Value  % 
Reverse 
auction  
(pregão ) 59,582.89  95 64,648.53  97 62,186.29  98 73,808.20  98 94,855.60  99 
Competition  
(concorrência ) 2,838.25  5 1,278.92  3 808.50  1 891.60  1 494.87  0 
International 
tendering 
(concorrência 
internacional ) 16.32  0 196.81  0 0.80 0 0.61 0 0.09 0 
Open tendering  
(concurso ) 1.06 0 1.26 0 0.85 0 1.36 0 0.29 0 
Price 
consultation 
(tomada de 
preços ) 185.94  0 323.49  0 348.62  1 433.92  1 201.20  0 
Invitation  
(convite ) 5.78 0 10.85  0 16.33  0 8.27 0 2.97 1 
Total  62,630.26  100 66,459.86  100 63,361.39  100 75,143.95  100 95,555.01  100 
Note:  These figures do not include procurement by federal SOEs. Data regarding the use of direct award 
contracting (limited tendering) by the federal administration were not available.  
Source:  Information provided by the Ministry of Economy.  
3.162.   As a general principle, the 2021 Procurement Law prohibits discri minatory 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. Similarly, 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 adopted the Normative Instruction SEGES No.  10, 10 February  2020. The Normative 
Instruction allows foreign suppliers from any country to register in the Uni fied Suppliers Registration 
System  (SICAF) and participate in government procurement opportunities. There is, however, a 
need to have legal representative with powers to receive citation in Brazil at the beginning of the 
procurement process (upon registrat ion). 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 La w 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 Articl e 67:7, foreign suppliers will only need to submit their 
applications for registration with the relevant professional boards in Brazil at the time of executing 
the contracts.  
3.165.   Possibilities continue to exist to provide Brazilian goods, services , and supplie rs treatment 
more favourable than that accorded to foreign goods, services , and suppliers.  
3.166.   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 possibil ity 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 SOEs.177 
3.167.   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 
 
177 Laws No. 12,462/11 and No. 13,303/16.  WT/TPR/S/ 432 • Brazil  
 
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  to goods and services of MERCOSUR countries, under certain condi tions. 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 MSEs178, including set -asides, quotas, 
and a preferential right to bid one more time if their original bid e xceeded 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 compan ies are eligible for the 
preferential treatment provided by Law No.  123/2006. The proportion of proc urement covered by 
this measure is estimated at around 26% at the federal level.  
3.169.   For procurement related to information technology and communications systems deemed 
strategic by the Federal Government, Article  26:7 of the 2021  Procurement Law provides that  it may 
be restricted to technologies developed and manufactured in Brazil. Moreover, Law No.  8,248/91 
provides that, for the procurement of goods and services related to information technology and 
automation, federal procuring entities must grant a prefer ence to domestically developed goods and 
services. The authorities indicate that this provision is not yet enforced due to the lack of 
implementing regulations.  
3.170.   Preferential treatment is also provided to locally established family farmers, as defined by 
Law No.  11,326/06. For example, pursuant to Decree No.  8,473/2015, the Federal Public 
Administration must direct 30% of the total resources allocated in each fiscal  year for the purchase 
of foodstuffs to Brazilian family farming. Also, procuring entities of the executive branch at all levels 
may resort to limited tendering to purchase foodstuffs from Brazilian family farmers.180 
3.171.   In addition, Article  26:6 of the 2021 Procurement Law allows the use of offsets. Specifically, 
it provides that, upon justification b y the competent governmental authority, procuring entities may 
require commercial, industrial, technological compensation measures, or access to beneficial 
financing conditions, on terms established by the Federal Government. The use of offsets is further 
regulated by Decree No.  7,546/11, which sets out an indicative list of compensation measures 
(e.g. co-production, production under licence, sub -contracted production, technology transfer, and 
capacity -building). Additional compensation provisions in the en vironment and cultural/historical 
sectors can be found in Laws No.  12,462/11 (Article  4) and No.  13,303/16 (Article  32). For example, 
pursuant to both laws, procurements that are deemed to have a negative impact on the environment 
must provide for appropri ate environmental compensation.  
3.172.   Administrative and judicial review procedures 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 
administrative review procedures, including regarding oppositions, requests for clarification , and 
appeals. These procedures also apply to foreign suppliers when participating in int ernational 
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. suppliers and procuring 
entities) to solve their disputes by non -judicia l methods, including conciliation, mediation, and 
arbitration.  
3.173.   During the review period, a new electronic National Public Procurement Portal  (PNCP) was 
launched.181 Since April 2021, the PNCP has served as the official website for the centralized and 
mandat ory disclosure of documents required by  the 2021 Procurement Law. The PNCP also includes 
 
178 Article  3 of Law No. 123/2006 defines Micro and Small Enterprises, respectively, as those that: 
(i) earn less than BRL  360,000 per year; and (ii)  earn between BRL 360,000 and BRL 4,800,000 per  year. 
179 Specifically, Article  48 of Complementary Law No. 123/2006 provides that procuring entities : (i) must 
restrict procurement below BRL 80,000 to MSEs; (ii)  may require sub-contracting to MSEs in the procurement 
of works and services; and (iii)  shall establish a quota of up to 25% for MSEs in the acquisition of goods of a 
divisible nature . 
180 Law No.  10,696/03, Article  19; and Law No.  12,512/11,  Chapter 3.  
181 The creation o f the PNCP was provided for in Article  174 of the 2021 Procurement Law. Viewed at: 
https://pncp.gov.br . WT/TPR/S/ 432 • Brazil  
 
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  other procurement -related information (e.g. information on registration and pre -qualification, award 
notices and tender documentation,  tender proposals , and awarded co ntracts) and offers several 
other functionalities (e.g. a unified registration system, and an e-system to hold public sessions). 
Over time, the PNCP is also expected to become an important source of procurement statistics. SOEs 
and entities at the state an d Federal District and municipal levels continue to enjoy additional 
flexibility in terms of publishing procurement notices and related information and may opt to do it 
via their own systems or, when appropriate, in the Official Gazette . 
3.3.7   Intellectual prope rty rights  
3.3.7.1   Overview  
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 Minist ry of Economy182, 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 
Specia l Secretariat for Culture under the Ministry of Tourism.183 
3.175.   GIPI is in charge of implementing and monitoring the national IP strategy (ENPI) for the 
period  2021-30, elaborated as part of a broader National Innovation Policy.184 With the objective of 
making B razil a world -class hub for innovation and creativity, the ENPI sets out five bi -annual action 
plans comprising 210 actions organized in 7 strategic axes. Key strategic directions include updating 
the national IP legislation in response to the business env ironment's digital transformation , 
strengthening and modernization of INPI , and better insertion of Brazil in the global IP  system.  
3.176.   Since its previous Review, Brazil has enacted several legislative amendments affecting 
IP protection. Noteworthy development s occurred in the patents, utility models , and trademarks 
systems. As 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  Agreeme nt Concerning the International Registration of Marks in July 2019.185 In addition, 
Brazil ratified the Budapest Convention on Cybercrimes in 2020 and the Nagoya Protocol on Access 
to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization 
(the Nagoya Protocol) in 2021. 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.  
3.177.   The 2021 WIPO Globa l 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 innovation input and innovation output sub -indexes also narrowed significantly, fr om 60th and 
80th place, respectively, in 2017 to 56th and 59th place in  2021.186 
3.178.   In May 2021, INPI published a comprehensive assessment of the economic impact of 
Brazilian IP -intensive industries.187 Focusing on applications for IP registration received 
during 2004-08, the study estimates their share in the Brazilian economy's total employment, 
wages, gross value added, and total exports and imports over three periods (2008 -10, 2011 -13, 
and 2014-16). On average during 2014 -16, IP -intensive industries were est imated to account 
for 44.2% of total gross value added, 36% of the workforce , and a trade deficit of USD  29 billion . In 
that period, they also paid an average salary that was 11% higher than the average salary across 
non-IP-intensive sectors.  
 
182 Decree No.  9,931, 23 July 2019.  
183 Decree N o. 10,359, 20 May 2020. 
184 Decree s No. 10,534, 28 October  2020; and No. 10,886, 7 December  2021.  
185 WIPO , WIPO -Administered Treaties: Brazil . Viewed at : 
http://www.wipo.int/treaties/en/ShowResults.jsp?country_id=23C . 
186 The Global Innovation  Index published by the WIPO aims to capture the multi -dimensional facets of 
innovation through approximately 80 indicators, grouped into innovation inputs and outputs . Viewed  at: 
https://www.wipo.int/publications/en/series/index.jsp?id=129 . 
187 INPI (March 2021), IPR-Intensive Sectors in the Brazilian Economy . Viewed at: 
https://www.gov.br/inpi/pt -br/central -de-conteudo/estatisticas/arquivos/publicacoes/setores -intensivos -em-
direitos -de-propriedade -intelectual.pdf . WT/TPR/S/ 432 • Brazil  
 
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  3.3.7.2   Industr ial property  
3.179.   Following an amendment 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 
amendmen t of the IPL also eliminated a provision requiring ANVISA's prior consent for the technical 
examination of patent applications related to pharmaceutical products and processes.  
3.180.   In September 2021, the IPL was further amended to clarify the compulsory licens ing 
provisions therein.189 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 unt il the patent's value is effectively 
established.  
3.181.   During the review period, INPI issued patent examination guidelines for 
software -implemented inventions (updated in 2020) and chemistry -related inventions, published 
a Manual of Industrial Designs , and issued the third revision of its Trademarks Manual.190 Having 
made the necessary adjustments to its procedures and IT systems, INPI in October 2019 started 
acting as an Office of Origin and a Designated Office for trademark registration via the interna tional 
route provided for by the Madrid Protocol. The harmonization of trademark registration procedures 
brought about the acceptance in Brazil of trademark co -ownership, the possibility of multiclass 
trademark applications via the international route, and  the registration of position trademarks.191 
3.182.   Agreements involving industrial property rights licensing and/or assignment, technology 
supply, technical assistance services , and franchising may be registered at INPI. Although 
registration is not mandatory, it  is necessary in order to  have effect for third parties , enable the 
remittance of foreign exchange in the form of royalties and licen ce fees , and qualify for income tax 
deductions. In  2017, the registration procedure was updated to streamline the formal an d technical 
examination of requests.192 
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 requireme nts 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.195 
Table 3.20 Industrial property applications and decisions , 2017 -21 
  2017  2018  2019  2020  2021 
New applications  
Patents  25,658 24,857 25,396 24,339 24,238 
Utility models  2,918 2,587 2,824 2,663 2,574 
Industrial designs  6,000 6,111 6,433 6,263 6,711 
Integrated circuit layout designs  3 3 3 2 0 
Technology transfers  1,166 1,207 1,165 1,045 1,135 
Trademarks  186,103 204,419 245,197 293,502 386,845 
Geographical indications  10 7 16 17 9 
Computer software  1,692 2,511 3,049 2,999 3,259 
 
188 Law No.  9,279, 14 May 1996, amended by Law No.  14,195, 26 August  2021.  
189 Law No.  14,200, 2 September  2021. 
190 Resolutions No.  158, 28 October  2016; No. 208, 27 December  2017; No. 232, 7  January  2019; and 
No. 249, 9  September  2019; and Ordinance No.  411, 23  December  2020. 
191 Resolutions No.  244 and No. 245, 27  August  2019; No.  247 and No.  248, 9  September  2019, and 
Ordinance No.  37/2021 , 21 September  2021.  
192 Normative Instruction No.  70, 11  April 2017.  
193 INPI Resolutions No. 240 and No.  241, 3 July 2019. 
194 INPI Ordinance s No. 149, 7 April 2020; and No. 53, 21 December  2021.  
195 Brazil's PPH  cooperation agreement framework cover s the following jurisdictions: Austria, China , 
Denmark , Europe  (European  Patent Office) , France , Japan , the Republic of Korea , Portugal , Singapore , 
Sweden , United  Kingdom , and United  States.  WT/TPR/S/ 432 • Brazil  
 
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    2017  2018  2019  2020  2021 
Applications pending examination  
Patents  158,924 150,039 137,777 97,317 67,682 
Utility models  6,001 4,990 4,343 3,818 3,837 
Industrial designs  9,288 3,433 2,577 2,437 2,861 
Integrated circuit layout designs  0 0 0 0 0 
Technology transfers  0 0 0 0 0 
Trademarks  359,562 191,535 129,713 205,685 312,125 
Geographical indications  0 0 0 0 0 
Computer software  2,629 0 0 0 0 
Granting decisions  
Patents  5,448 9,968 12,704 20,416 26,887 
Utility models  787 1,098 1,022 857 701 
Industrial designs  6,212 8,699 5,835 5,391 5,468 
Integrated circuit layout designs  22 0 5 2 0 
Technology transfers  1,107 1,085 1,022 890 1,037 
Trademarks  123,362 191,813 205,846 141,775 168,413 
Geographical indications  4 6 6 9 13 
Computer software  5,507 5,140 3,051 2,920 3,180 
Source:  INPI. 
3.184.   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 patents, from 11 to 5 years. Patent filings in the areas of (bio)pharmaceuticals 
and information and comm unication technologies had the longest average pendency times. During 
the same period, most appeals of INPI decisions related to trademarks.  
3.3.7.3   Copyright  
3.185.   Copyright protection is enshrined in the Constitution and remains governed by the Copyright 
Law.196 Brazil maintains a declarative system whereby registration is not a prerequisite for copyright 
protection but provides a presumption of authorship, which may be helpful in judicial procedures. 
Right holders may opt for registration with the Brazilian Natio nal Library (literary works), the School 
of Music or the School of Fine Arts of the Federal University of Rio de Janeiro (musical works and 
visual art), the National Cinema Institute (audiovisual works), the Federal Council of Engineering 
and Agronomy (art istic works related to agronomy, engineering, geography, geology , and 
meteorology), the Council of Architecture and Urbanism of Brazil (artistic works related to 
architecture and urbanism), or INPI (software).  
3.186.   The regulations governing the collective manag ement of copyrights were consolidated and 
updated during the review period.197 The authorities indicate that work on a legal framework for the 
development and use of artificial intelligence is ongoing.  
3.187.   The Copyright Law does not contain provisions with resp ect to the international exhaustion 
of rights; decisions are taken on a case -by-case basis. The authorities indicate that jurisprudence 
on the subject is not presently available, since there is no final decision by  higher courts on the 
issue. Under Brazili an law, copyright holders may initiate procedures for the prosecution of importers 
of pirated goods.  
3.188.   Brazil's civil rights framework for the Internet contains provisions addressing certain aspects 
of online copyright infringement.198 Although a comprehensiv e 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 pr ivate (extrajudicial) notification containing the precise address (URL) of the allegedly 
infringing content may result in civil liability of the Internet service provider.199 
 
196 Law No.  9,610, 19 February  1998.  
197 Decree No.  9,574, 22 November  2018; and Normative Instruction No.  5, 29 November  2021. 
198 Law No.  12,965 , 23 April 2014.  
199 Superior Court of Justice , Special Appeal s No. 1,512,647 and No. 1,707,859. WT/TPR/S/ 432 • Brazil  
 
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  3.3.7.4   Enforcement  
3.189.   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 r ight holder.200 
3.190.   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 aimed at comb ating IP offen ces. 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.201 
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 "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 across 12 Brazilian states, and several arrests.  
3.192.   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).  
 
200 Decree No . 6,759, 5 February  2009.  
201 Resolution No.  3, 3 December  2021. 
 
 WT/TPR/S/ 432 • Brazil  
 
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  4  TRADE POLICIES BY SECTOR  
4.1.  Brazil remains a major player in the global trade of certain agricultural commodities. In 2021, 
the agricultural sector's  share of gross value  added and employment stood at 8.1% (5.7% in 2017) 
and 9.7%, respectively (including fisheries and forestry). The average MFN applied tariff for 
agricultural products in 2022 stood at 9.1% (WTO definition) (HS 17 definition). Its low levels of 
agricultural support, minimal market price support, and low protection corroborate the country as a 
competitive global agriculture exporter.1 Agricultural or rural credit at administered and preferential 
interest rates remain the major policy instrument for the sector. Agricultural zoning requirements 
continue to link agricultural support to environmental sustainability.  
4.2.  Brazil holds a significant position in the international mining industry. During the review period , 
institut ional and policy developments took place. Tariff protection remained unchanged. Domestic 
support for developing mining companies and sustainable technologies was made available to 
selected firms. BNDES sold its last block of shares in Vale S.A.  
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 installed 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 continued to grow in a fast pace. In July  2021, 
legislation was passed allowing for the privatization of state -owned Eletrobras . 
4.4.  Manufacturing remains relatively large (11.3% of gross value added  in 2020), albeit declining, 
and diversified. Several factors continued to inhibit Brazil's abil ity to fully explore its industrial 
potential. Positive reforms and initiatives across the board are bound to bear long -lasting results 
and further attract FDI. The average MFN applied tariff for manufacturing products was reduced. 
Clothing, textiles, and transport equipment sectors continue to benefit from the highest tariff 
protection. Incentives, such as remission of duties and taxes on exports remain in place. General 
administered interest rate or concessional loans and government procurem ent preferences to local 
suppliers are still in place. Production step -related local content requirements tied to domestic 
support measures were continued. Industry -specific incentives as the automotive (INOVAR -Auto) 
were finalized. Few sector -specific sch emes are still in place. RTAs for motor vehicles are operational.  
4.5.  Services, a key component of overall export competitiveness, remain the main contributor to 
Brazil's  gross value  added (69.8% in 2021). Due to the pandemic, services exports dropped from 
USD 34.3 billion  in 2019 to USD  28.5 billion  in 2020, before reaching USD  33.2 billion  in 2021. 
Services imports fell from USD  69.4 billion  in 2019 to USD  48.4 billion  in 2020, and reached 
USD 50.3 billion in 2021. Despite improvements in certain areas, servi ces continue to suffer from 
structural weaknesses. During the review period, Brazil's commitments under the GATS remained 
unchanged. Brazil undertook specific commitments on trade in services under three RTAs which 
contain GATS -plus services commitments. T he main legal framework for banking remained relatively 
unchanged and the banking system has remained resilient. Since 2021, an "Open Banking" policy 
has been in place. The share of non -performing loans (NPLs) dropped. Nevertheless, high interest 
spreads b etween lending rates and the remuneration of deposits remain in place. 
An "Open  Insurance" policy to allow the sharing of consumers' information among different 
insurance companies authorized or accredited by the Superintendence of Private Insurance (SUSEP ) 
by sharing data and services was implemen ted through openness and systems integration 
since 2021.  
4.6.  The fixed and mobile telephony markets remained fully open to competition, though dominated 
by a handful of large operators from abroad.  
4.7.  Due to the COVID -19 pandemic, in 2020 regular and non -scheduled flights dropped. Emergency 
measures to, inter alia , mitigate the negative economic effects of the pandemic on the air services 
sector were introduced. Civil aviation policy pursued the conclusion of new Air Tran sport 
 
1 OECD/FAO (2021), OECD -FAO Agricultural Outlook 2021 -2030. Viewed at: https://doi.org/10.1787  
/19428846 -en. WT/TPR/S/ 432 • Brazil  
 
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  Agreements. In other transport modes, the main regulatory change was introduced by "BR do Mar" 
programme in 2022. Eight port terminals were conceded to the private sector under the Investment 
Partnership Programme (PPI).  
4.8.  To offset the negative effect s from the COVID -19 pandemic, the Ministry of Tourism adopted a 
number of initiatives and prepared a strategy to recover the tourism sector.  
4.9.  Regarding professional services, the Doctors throughout Brazil Programme ( Médicos pelo 
Brasil ) was launched in 2019 . 
4.1  Agriculture, Forestry, and Fisheries  
4.1.1   Main features  
4.10.   Agriculture accounts for a relatively stable share of gross value  added and employment that 
stood at 8.1% (5.7% in 2017) and 9.7% in 2021, respectively (including fisheries and forestry).2 
The average annual total factor productivity (TFP) growth was 3.18% in the period 2000 -20.3 Over 
the past decades, the labour productivity gap between agriculture and other sectors of the economy 
has sharply declined, with the agricultural sector registe ring faster labour productivity growth 
vis-à-vis other sectors. Brazil is endowed with the world's fourth -largest agricultural area, of which 
over one quarter is arable. Brazilian agriculture is crop - and export -oriented, accounting for 48.1% 
in 2020 and 4 3% in 2021 of Brazil's total exports.4 Almost half of exports are primary commodities 
used as inputs into further processing. The sector continues to provide substantial value  added in 
agriculture -related activities; the entire agri -business chain (includ ing agricultural inputs, as well as 
processing and distribution activities) contributed by 26.6% of the GDP in  2020 (20.5%  in 2019).5 
Agriculture also remains an important contributor to the country's energy supply  (Section  4.2) as, 
inter alia, sugar cane  by-products provide around 20% of the country's energy output. According 
to the OECD, Brazil's low levels of agricultural support, minimal market price support, and 
low protection corroborate the country as a competitive global agriculture exporter.6 
4.11.   During the review period, the agri -business sector (including forestry products) maintained 
its crucial role in sustaining Brazil's trade surplus (Table  4.1). The sector's trade surplus reached 
USD 105 billion in 2021 (19.8% rise to 2020) due to a record expo rt volume of over USD  120 billion , 
mainly due to high agriculture commodities prices.7 
Table 4.1 Brazil's agri -business trade balance, 2014 -21 
(USD million)  
 2014  2015  2016  2017  2018  2019  2020  2021  
Agri-business exports  96,659  88,168  84,937  96,014  101,167  96,851  100,702  120,521  
Agri-business imports  16,613  13,072  13,628  14,153  14,038  13,769  13,047  15,528  
Agri-business trade 
balance  80,046  75,096  71,310  81,861  87,130  83,082  87,655  104,993  
Total trade balance  -4,153  19,512  47,646  66,990  58,033  48,036  50,941  61,407  
Note:  The agri -business numbers include 3,001 HS codes of common Mercosur's nomenclature, i.e.  NCM 
(https://indicadores.agricultura.gov.br/agrostat/index.htm ). 
Source:  MAPA . Viewed at: https://indicadores.agricultura.gov.br/agrostat/index.htm ; and information 
provided by the authorities.  
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 share as 
registered at the time of the previous Review  (5.1%). It continued to be the world's third -largest 
 
2 Information provided by the authorities.  
3 Viewed at: https://www.ipea.gov.br/portal/images/stories/PDFs/TDs/220602_td_2764.pdf . 
4 Viewed at: https://www.ipea.gov.br/cartadeconjuntura/index.php/category/agropecuaria/ . 
5 Viewed at: https://www.cnabrasil.org.br/boletins/p ib-do-agronegocio -alcanca -participacao -de-26-6-
no-pib-brasileiro -em-2020. 
6 OECD/FAO (2021), OECD -FAO Agricultural Outlook 2021 -2030. Viewed at: 
https://doi.org/10.1787/19428846 -en. 
7 Viewed at: https://www.gov.br/agricultura/pt -br/assuntos/noticias/exportacoes -do-agronegocio -
batem -recorde -em-dezembro -e-no-ano-de-2021 and 
https://www.ipea.gov.br/portal/index.php?option=com_content&view=article&id=38868 . WT/TPR/S/ 432 • Brazil  
 
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  exporter of agricultural products, behind the  European  Union  and the United  States.8 In 2020, Brazil 
maintained its position as the world's biggest supplier of sugar, orange juice, coffee, poultry meat, 
beef, and soybeans.9 In 2021, s oybean products remained the largest agricultural export (39.8%), 
followed by me at products , especially poultry and beef  (16.4%), wood pulp (11.5%), sugarcane 
(8.5%), and coffee (5.3%).10 The performance of Brazil's main agricultural exports from 2017 -21 is 
shown in Chart  4.1 below.  
Chart 4.1 Brazil's main agricultural exports, 2017 -21 
(USD billion)  
 
Source:  MAPA , AGROSTAT – Estatísticas de Comércio Exterior do Agronegócio Brasileiro . 
4.13.   In 2021, the main destinations for Brazilian agri -food exports were China (34%) , the 
European  Union (15%), the United  States  (7.5%), Japan (2.1%), and Thailand (2%).11 The weight 
of China as a trading partner for Brazilian agri -business increased during the previous review periods. 
In 2012, China purchased 19.3% of Brazilian agri-food exports, which represented some 
USD 16.1 billion; this amount rose to USD  17.8 billion (24.9%) in 2016 and to over USD  41 billion  
(34%) in 2021.  
4.14.   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.12 Brazil also continues to depend on 
substantial imports of agricultural inputs, in particular fertilizers from the Russian  Federation 
and Belarus.  
4.1.2   Policy and institutional framework  
4.15.   During the review period, Brazil's basic agricultural policy was significantly shaped by the 
Pluriannual Planning  (PPA) (2020 -23).13 In addition to its three main compo nents, i.e. market price 
policy, rural credit, and crop insurance subsidies (Section  4.1.4), which, inter alia, support 
commercial agriculture and small -scale family agriculture, o ther important policy measures include  
promoting sustainable agriculture, li vestock, fisheries, and aquaculture14; regularization of land 
ownership; and promotion of health -related aspects in the agriculture, livestock, and input 
production. With respect to the institutional framework, the main change was the transfer of the 
Ministry of Social and Agrarian Development (MDSA) and its Special Secretariat for Family Farming 
and Agrarian Development (SEAD) to the Ministry of Agriculture, Livestock and Food Supply  (MAPA). 
 
8 WTO (2021), World Trade Statistical Review 2021 . Viewed at: 
https://www.wto.org/english/res_e/statis_e/wts2021_e/wts2021_e.pdf . 
9 Viewed at: https://www. fao.org/faostat/en/#rankings/major_commodities_exports . 
10 MAPA . Viewed at: https://indicadores.agricultura.gov.br/agrostat/index.htm . 
11 MAPA . Viewed at: http://indicadores.agricultura.gov.br/agrostat/index.htm . 
12 Viewed  at: https://www.fao.org/faostat/en/#rankings/commodities_by_country_imports . 
13 Plano Plurianual (2020 -23). Viewed at: https://www.gov.br/agricultura/pt -br/acesso -a-
informacao/acoes -e-programas/ppa . 
14 Viewed at: https://www.gov.br/agricultura/pt -br/acesso -a-informacao/acoes -e-programas/ppa/plano -
plurianual -ppa-202020132023/cadastro_programa_1031 -agropecuaria_sustentavel_ano -base2021.pdf . 
0.05.010.015.020.025.030.035.040.0
Soybeans Meat Sugarcane Coffee Maize2017 2018 2019 2020 2021Chart 4.[BRA]  Main agricultural exports, 2017 -21
Source:  MAPA, AGROSTAT –Estatísticas de Comércio Exterior do Agronegócio Brasileiro ..WT/TPR/S/ 432 • Brazil  
 
- 106 - 
 
  The Secretariat has been renamed to Secretariat for Family Farmin g and Cooperativism.15 The 
Secretariat of Trade and International Relations in MAPA (SCRI/MAPA)16 – former Secretariat of 
Agribusiness International Relations – is responsible for foreign trade issues and WTO notifications 
under the Agreement on Agriculture and the Agreement on the Application of Sanitary and 
Phytosanitary Measures (SPS  Agreement). Th e National Food Supply Company (CONAB), a state 
company linked to MAPA, is responsible for administering a number of agricultural policy measures, 
including those related to strategic storage and minimum price guarantees.  
4.16.   The Agricultural and Livestock Pla n 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. 
Accord ingly, 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 envir onmental 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. Furthermo re, the Plan focuses on small producers fostering credit lines for irrigation, 
purchase and implementation of technological innovations, and construction of warehouses. 17 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.19 The National Development Bank 
(BNDES) 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 resource s 
targeting family farming under the National Program for Strengthening Family Farming (PRONAF).20 
4.1.3   Border measures  
4.17.   In 2022, average MFN applied tariff for agricultural products stood at 8.9% (WTO  definition) 
(HS17 definition) (Table s 3.2 and A3.1). The 55%  peak applied rate of the entire Customs Tariff 
affects desiccated coconuts. Tariffs higher than the average MFN applied tariff for agricultural 
products continued to apply to dairy products (17.6%); beverages, spirits, and tobacco (15.4%); 
sugar and confe ctionery (14.4%); coffee and tea (12.3%); and cereals and preparations (10.2%), 
while imports of cotton (5.7%); oil seeds, fats and oils and their products (6.9%); and animals and 
animal products (7.0%) are subject to average tariffs lower than the sector' s average (Table  A3.1 
and Chart  3.3).21 
4.18.   According to Brazil's recent notifications, the tariff rate quota for apples and pears, under its 
multilateral agricultural market  access commitments, was not implemented in 2017, 2018,  2019, 
and 2020, given that the applied MFN tariff (10%) was below the in -quota rate (13.5%) for both 
products (Section  3.1.3.1). By the end of 2019, the Brazilian government  re-established a tariff rate 
 
15 Viewed at: https://www.gov.br/agricultura/pt -br/assuntos/agricultura -familiar/secretaria -de-
agricultura -familiar -e-cooperativismo . 
16 MAPA structure. View ed at: https://www.gov.br/agricultura/pt -br/acesso -a-
informacao/institucional/documentos/organograma s/copy_of_OrganogramadaAdministracaoDireta.pdf . 
17 Viewed at: https://www.gov.br/agricultura/pt -br/assuntos/politica -agricola/plano -safra/2021 -
2022/um -plano -safra-mais-verde . 
18 Viewed at: https://www.gov.br/agricultura/pt -br/ass untos/noticias/com -total-de-r-251-2-bilhoes -
plano -safra-21-22-aumenta -recursos -para-tecnicas -agricolas -
sustentaveis/ApresentacaoPlanoSafra20212022_finalizado_7.pdf ; https://www.gov.br/agricultura/pt -
br/assuntos/noticias/com -total-de-r-251-2-bilhoes -plano -safra-21-22-aumenta -recursos -para-tecnicas -
agricolas -sustentaveis . 
19 Viewed at: https://www.gov.br/agricultura/pt -br/assuntos/noticias/banco -do-brasil -vai-destinar -r-
135-bilhoes -para-a-safra-2021-2022. 
20 BNDES. Viewed at: 
https://www.bndes.gov.br/wps/portal/site/home/imprensa/noticias/cont eudo/bndes -destinara --rs-5-1-bilhoes -
do-plano -safra-2021-2022-a-pequenos -agricultores . 
21 Pursuant to MERCOSUR's Common Market Council ( CMC) Decision No.  12/21 the duration of the CMC 
Decision No.  29/15 raising three Common External Tariff (TEC)  lines of prepared or preserved 
peaches  (NCM  2008.70.10, 2008.70.20 , and 2008.70.90) to 35% and the duration of CMC Decision No.  30/15, 
which raised the TEC of 11 dairy tariff lines to 28% , were both extended  until 31 December  2030. Other 
agricultural products with high  applied tariffs are garlic ( TEC 0703.20.90) with a 35% ad valorem  tariff, and 
wine ( TEC 2204.21.00) with an ad valorem  tariff of 27%.  WT/TPR/S/ 432 • Brazil  
 
- 107 - 
 
  quota for wheat amounting to a volume of 750 ,000 MT benefi tting from a duty -free 
intra-quota  rate.22 
4.19.   Imports of agricultural products may also benefit from tariff rate quotas applied individually 
by Brazil, in accordance with MERCOSUR's rules on temporary measures regarding supply shortages 
(Section  3.1.3.1). Fro m 2018 to 2021, in accordance with MERCOSUR rules on temporary shortages, 
seven different products had import tariffs temporarily reduced in a rate of 0% by specific quotas 
for a period of 12 months.23 Moreover, nine agricultural products had their tariffs  reduced through 
the List of Exceptions to the Common External Tariff (LETEC) mechanism.24 Mexican exports of 
garlic  to Brazil benefited from a zero in -quota tariff in 2011 under the Economic 
Complementation  Agreement (ACE) No. 53 between the two countries . 
4.20.   Since 1996, all exports from Brazil, including soybeans and maize, have been exempt from 
the interstate tax on the circulation of goods and services (ICMS) (Section  3.1.4).25 
4.21.   From 2019 to 2021, bilateral discussions have been held to open more than 200  new markets 
for Brazilian agricultural products including, inter alia , beef, poultry, plants, animal genetic materials, 
and fruits to a number of countries: Argentina, Canada, China, Egypt, Singapore, and Thailand , 
which are either eliminating previous non -tariff restrictions on these products or resuming their 
importation.26 
4.22.   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 foo d aid 
abroad decreased considerably from 14,478.7 tonnes of rice in 2018, 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.29 
4.1.4   Domestic support  
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 administered in terest rate or concessional 
credit lines, price support mechanisms, and insurance premium subsidies (Section  4.1.4).30 No new 
 
22 WTO documents  G/AG/N/BRA/56, 12  February  2020; G/AG/N/BRA/59, 28  October  2020; and 
G/AG/N/BRA/64, 15  October  2021. In 2019, the referred tariff rate  quota for wheat was implemented through 
SECEX Ordinance No.  44/2019, then replaced by Ordinance No.  60/2020, and later made definitive through 
Decree No. 10,557/2020.  
23 List available at: https://www.gov.br/produtividade -e-comercio -exterior/pt -
br/assuntos/camex/estrategia -comercial/arquivos -listas/anexo_iv_desabastecimento.xlsx . 
24 The corresponding tariff lines are: NCM 1107.10.10, NCM 2207.10.10, NCM 2207.20.11, 
NCM 1006.10.92, NCM 1006.30 .21, NCM 1201.90.00, NCM 1507.10.00, NCM 2304.00.10, NCM 1005.90.10 . 
25 The ICMS affects products that are produced in one state, but utilized in another state. Each state in 
Brazil is allowed to determine the amount of ICMS tax, which generally is in the r ange of about 9% -12% 
(Section  3.1.4). Exempt  pursuant to Article  155, item X -a of the Federal  Constitution, and Complementary  Law 
No. 87/1996.  
26 According to the authorities, these agreements concerned SPS requirements and comprised: 
exchange of general information regarding SPS status of the countries involved; response on SPS -related 
questionnaires and questionnaires on the inspection and surveil lance system of the exporting country; risk 
assessment; and, if needed, an onsite  mission. These processes were followed by further technical exchanges 
and agreement on a sanitary or phytosanitary certificate. List of agreements available at: 
https://www.gov.br/agricultura/pt -br/assuntos/relacoes -internacionais/negociacoes -nao-
tarifarias/documentos/a cordos -sanitarios -e-fitosanitarios . Also v iewed at: https://www.gov.br/agricultura/pt -
br/assuntos/noticias/brasil -abre-100-novos -mercados -externos -para-produtos -
agropecuarios/ABERTURADEMERCADOS_geral.pdf  and https://www.gov.br/pt -br/noticias/agricultura -e-
pecuaria/2022/03/produtos -da-agropecuaria -brasileira -chegam -a-mais-de-200-novos -mercados -mundiais -nos-
ultimos -tres-anos. 
27 WTO documents  G/AG/N/BRA/50, 31  Janua ry 2019; G/AG/N/BRA/53, 11  February  2020; 
G/AG/N/BRA/60, 3  November  2020; and G/AG/N/BRA/65, 3  December  2021.  
28 WTO documents G/AG/N/BRA/54, 11  February  2020; G/AG/N/BRA/62,  3 November  2020; and 
G/AG/N/BRA/67, 3  December  2021.  
29 Further information in WTO document G/AG/W/125/Rev.16/Add.3 , 30 May 2022.  
30 According to the authorities, n ot all the agricultural assistance program mes available were 
implemented during the review period, although they remain ed foreseen in the Brazilian legislation.  WT/TPR/S/ 432 • Brazil  
 
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  support programme other than the 2021 Feed Brazil ( Programa Alimenta Brasil ) was introduced 
during the review period.31 
4.24.   Domestic s upport 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, i n 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 inpu t 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 
cumul ated 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). 
Table 4.2 Agricultural support, by commodity, 2016 -21 
  2016  2017  2018  2019  2020  2021 
(provisional)  
Total support estimate (TSE), USD million  7,832  6,465  5,122  5,254  4,687  9,045  
Percentage of TSE to GDP (%)  0.482  0.353  0.321  0.28 0.32 0.56 
Total PSE (USD million)  5,450  3,760  2,650  2,282  2,362  6,798  
Support based on commodity output – 
payments based on output  .. .. .. 63 862 4,917  
Support based on commodity output – MPS .. .. .. 56 860 4,915  
Direct payment  .. .. .. .. .. .. 
Percentage PSE to gross farm receipts (%)  3.55 2.18 1.77 1.52 1.56 3.36 
General services support estimate (GSSE), 
USD million  2,226.6  2,271.1  2,220.7  1,969  1,487  1,447  
Consumer support estimate (CSE), 
USD million  -422.0  1,012.3  912.7  872 -4 -2,023  
Total producer SCT (USD million)  .. .. .. .. .. .. 
Share of producer SCT in total PSE (%)  .. .. .. .. .. .. 
Percentage SCT (%)  .. .. .. .. .. .. 
Refined sugar  .. .. .. .. .. .. 
Milk .. .. .. .. .. .. 
.. Not available . 
Source:  Provided  by the authorities.  
Table 4.3 Direct payment and general services support, 2017 -21 
(USD million, unless otherwise indicated)  
 2017  2018  2019  2020  2021 
(provisional)  
Direct payment  .. .. .. .. .. 
Share of direct payment to PSE (%)  .. .. .. .. .. 
Based on input use  .. .. 2,100  1,410  1,794  
Based on current area planted/animal 
numbers/receipt/income, production required  .. .. 119 91 87 
General services support estimate (GSSE)  .. .. 1,969  1,487  1,447  
Agricultural knowledge and innovation system  .. .. .. .. .. 
Inspection and control  .. .. .. .. .. 
 
31 WTO document G/AG/N/ BRA/68, 9 February 2022.  
32 The OECD has been publishing reviews of agricultural policies in OECD countries and some other 
economies , including Brazil,  for several years. In these publications, the value of transfers to agricultural 
producers is measured using the producer support estimate (PSE) and associated indicators. The methodology 
for calculating these indicators is different from that used to cal culate the aggregate measure of 
support  (AMS), and the two sets of data are neither compatible nor comparable.  
33 OECD (2021), Agricultural Policy Monitoring and Evaluation 2021: Addressing the Challenges Facing 
Food Systems . Viewed at: https://doi.org/10.1787/2d810e01 -en.  
34 Viewed at: https://data.oecd.org/agrpolicy/agricultural -support.htm .  
35 OECD (2021), Agricultural Policy Monito ring and Evaluation 2021: Addressing the Challenges Facing 
Food Systems . Viewed at: https://doi.org/10.1787/2d810e01 -en. WT/TPR/S/ 432 • Brazil  
 
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   2017  2018  2019  2020  2021 
(provisional)  
Development and maintenance of 
infrastructure  .. .. .. .. .. 
Marketing and promotion  .. .. .. .. .. 
Cost of public stockholding  .. .. 63 6 5 
Share of GSSE to TSE  (%) .. .. 37.47  31.73  15.99  
.. Not available . 
Source:  OECD (2022), Agricultural Policy Monitoring and Evaluation 2022 . 
4.25.   According to Brazil's WTO notifications on domestic support measures during the review 
period, the product -specific aggregate measurement of support (AMS) was USD 91,461.9  million in 
FY2017/18 (maize), USD  9,467.4  million FY2017/18 (rice) , and USD  89 million in FY2019/20 
(orange) (all below their de minimis  level, and for each year overall AMS was much below the final 
bound level of USD  912.1  million ). The non -product -specific AMS stood at USD  1.46 billion  in 
FY2017/18, USD  978 million in FY2018/19, and USD  1.285  billion  in FY2019/20, all below the 
respective yearly de minimis  levels.36 The following products may be supported by non -exempt 
support programmes, according to the available funds and the market price: barley, Brazilian wax, 
canola, cashew nut, cassava, cassava flour, cassava starch, castor beans, coffee, cotton, cottonseed, 
edible beans, ethanol, garlic, grapes, guaraná, jute, maize, malva, milk, oat, orange, peanuts, rice, 
silk cocoon, sisal, so rghum, soybeans, sugar cane, sunflower, triticale and wheat. 
No product -specific support has been granted for those products in the last notified period. Total 
domestic agricultural support notified by Brazil (including green box, special and differential 
treatment, and de minimis  support not subject to reduction commitments) dropped from 
USD 4.254  billion in FY2016/17 (USD  1.947  billion excluding green  box and S&D assistance) to 
USD 2.846  billion in FY2017/18 (USD  1.147  billion excluding green  box and  S&D assistance) and to 
USD 2.456  billion  in FY2018/19 (USD  0.97 billion  excluding green  box and  S&D assistance). The 
domestic agricultural support notified by Brazil in green box decreased from USD  1.66 billion  in 
agricultural year 2016/17 to USD  1.40 billion  in FY2018/19. In FY2018/19, green box support was 
equivalent to approximately to  150% the size of Brazil's total product - and non -product -specific AMS 
in the same period. For more information, please consult Table  A4.1.  
4.1.4.1   Agricultural/rural credit37 
4.26.   Agricult ural or rural credit at administered and preferential interest rates remained the major 
policy instrument for the sector; it is provided to both commercial and small -scale family 
farms  (Table  4.4).38 According to the OECD, the Programme to Strengthen House hold 
Agriculture  (PRONAF)  reduced the preferential annual interest rates for rural credit by between  1% 
to 2%, down to 2.75% for some credit lines for small producers. In addition, Brazil improved 
preferential conditions on some credit lines and postponed credit reimbursement in response to the 
COVID -19 situation. According to the authorities, t his measure was aimed at offsetting the 
country's  high market interest rates  (see below) and to promote access to credit for farmers who 
would not obtain i t otherwise in the domestic financial system. At the same time, as it is used for 
financing a major share of food production for domestic consumption, thus considered an important 
food security tool. Since  1965, the National Rural Credit System (SNCR), whi ch is under the control 
of the BCB, has directed credit to farmers at administered and preferential interest rates. For 
commercial agriculture, the  SNCR system provides credit for marketing, working capital, and 
investment. The National Monetary Council (C MN) is in charge of issuing regulations for agricultural 
credit schemes, which are spelled out in the BCB's Rural Credit Manual  (see below). These 
regulations must be followed by all institutions participating in the SNCR, which includes public 
banks, coop eratives, and private commercial banks. As of January  2022, 589  (468 in 2012) financial 
institutions participated in the  SNCR, of which 49 (28 in 2012) were private banks.  
 
36 WTO document G/AG/N/BRA/58, 19  February  2020; G/AG/N/BRA/63, 17  May 2021; and 
G/AG/N/BRA/69, 18  February  2022.  
37 More information on this measure is available in WTO document WT/TPR/S/283/Rev.1, 26  July 2013.  
38 OECD (2021), Agricultural Policy Monitoring and Evaluation 2021: Addressing the Challenges Facing 
Food Systems . Viewed at: https://doi.org/10.1787/2d810e01 -en. WT/TPR/S/ 432 • Brazil  
 
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  4.27.   In 2021, public banks provided 58%  (58%  in 2016) of total rural credit, followed by private 
banks 21% (30%  in 2016) and cooperatives 20% (12% in 2016).39 
Table 4.4 Brazil's federal government agricultural support programmes, 2017 -21 
(prevailing norms for crop -year 2021/22)  
Produc ts/projects  Beneficiaries  Credit limit  Annual interest 
rate Duration  Disbursement 
(BRL  million)  
Medium -Scale Agricultural Producer Support Programme (PRONAMP)  
Investment in goods and 
services aimed at 
increasing productivity 
and income.  
Financeable items: 
financing, investment and 
technical assistance. In 
case of financing, it is 
also allowed to include 
funds to small expenses 
considered as 
investments (repair and 
conservation of 
production assets, 
installation, acquisition of 
service ani mals, 
deforestation)  Farmers with 
gross annual 
income up to 
BRL 2.4 million  Financing: 
BRL 1.5 million; 
investment: 
BRL 430 million  Financing 
(working capital): 
5.5%; 
Investment: 
6.5%  Financing: up 
to 3 years; 
investment: 
up to 8  years 
(3-year grace 
period ) 2017: 19 ,538 
2018: 20 ,031 
2019: 25 ,239 
2020: 28 ,783 
2021a: 29,070 
Agricultural Cooperatives Capitalization Programme (PROCAP -Agro)  
Acquisition of capital 
shares (paid -in shares – 
parts and working 
capital)  Farmers and 
cooperatives  BRL 65 million  Fixed: 8.0%; 
Post-fixed; 
3.05% + 
monetary 
updating factors  6 years 
(2-year grace 
period); 
working 
capital: 
2 years 
(6-month 
grace period)  2017: 610  
2018: 94  
2019: 44  
2020: 36  
2021a: 987  
Sectoral Plan for Mitigation and Adaptation to Climate Changes for the Consolidation of a Low -Carbon Emission 
Economy in Agriculture  (Plan ABC)  
Projects to reduce 
greenhouse gas 
emissions (e.g.  recovery 
of pastures, recovery of 
degraded areas, organic 
crops, directing planting, 
integration of crops, 
cattle production, forest, 
forest plantation, 
environmental 
recuperation, waste 
treatment, Dendê  
plantation, biological 
nitrogen fixation, soil 
management and 
production of bio -inputs 
or biofertilizers)  Farmers  and 
cooperatives  BRL 5 million  Fixed: 5.5%; 
post-fixed: 
0.67% + 
monetary 
updating factors - 
environmental 
recuperation; 
Fixed: 7%; post -
fixed: 2.10% + 
monetary 
updating factors - 
other applications  Up to 
12 years  2017: 1 ,437 
2018: 2 ,093 
2019: 2 ,079 
2020: 2 ,296 
2021a: 2,154 
 
39 Available at: 
https://www.bcb.gov.br/ estabilidadefinanceira/reportmicrrural/?path=conteudo%2FMDCR%2FReports%2FqvcS
egmentoIF.rdl . WT/TPR/S/ 432 • Brazil  
 
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  Produc ts/projects  Beneficiaries  Credit limit  Annual interest 
rate Duration  Disbursement 
(BRL  million)  
Programme for the Modernization of Agriculture and the Conservation of Natural Resources (MODERAGRO)  
Projects related to 
sanitary and/or 
environmental adapt ation 
needs limited to 35% of 
the amount of the 
investment in the 
following activities/crops: 
apiculture, aquaculture, 
poultry, chinch illa 
production, rabbit 
breeding, floriculture, 
fruit, palm trees, olive 
growing, production nuts, 
horticulture, sheep and 
goat farming, milk, 
fishing, frog culture, 
sericulture and pig 
farming.  
Combat brucellosis and 
tuberculosis; 
construction and 
expansi on of farm sheds  Farmers and 
cooperatives  BRL 880,000 
(individual farmer) 
and 
BRL 2.64 million 
(collectively taken); 
BRL 400,000 for 
purchase of animals  Fixed: 7.5%; 
Post-fixed; 
2.58% + 
monetary 
updating factors  Up to 
10 years 
(3-year grace 
period)  2017: 624  
2018: 1 ,123 
2019: 996  
2020: 1 ,398 
2021a: 848  
Incentives Programme for Irrigation and Protected Cultivation (PROIRRIGA) - (Former Moderinfra)  
Irrigation and protected 
cultivation projects  Farmers and 
cooperatives  BRL 3.3 million 
(individual farmer) 
and BRL 9.9 million 
(collectively taken)  Fixed: 7.5%; 
Post-fixed; 
2.58% + 
monetary 
updating factors  Up to 
10 years 
(3-year grace 
period)  2017: 488  
2018: 489  
2019: 550  
2020: 647  
2021a: 707  
Cooperative Development Programme for the Enhancement of Agricultural Value Added (PRODECOOP)  
Projects to improve 
production systems and 
marketing (installation 
of industries regardless 
of sector – improvement 
or processing). It may 
be financed: studies, 
projects and technology, 
civil engineering, 
installations, national 
equipment, pre -
operational expenses, 
landed costs, working 
capital related to the 
investment project, pay 
in of shares related to 
the project  Cooperatives  Up to 
BRL 150 million (up 
to 90% of the 
project value)  Fixed: 8%; 
Post-fixed; 
3.05% + 
monetary 
updating  factors  Up to 
10 years 
(3-year grace 
period)  2017: 696  
2018: 961  
2019: 635  
2020: 620  
2021a: 306  
Tractor Fleet Modernization Incentives Programme (MODERFROTA)  
Agricultural 
mechanization 
(purchase of tractors, 
implements, harvesters, 
sprayers, self -propelled, 
and equipment for 
preparation, drying, and 
processing of coffee)  Farmers and 
cooperatives  Up to 85% of the 
financed good  Fixed: 8 .5%; 
Post-fixed; 
3.53% + 
monetary 
updating factors  Up to 7  years 
(new) or 
4 years 
(used)  2017: 7 ,093 
2018: 9 ,099 
2019: 6 ,938 
2020: 7 ,525 
2021a: 3,943 
Warehouse Construction and Expansion Programme (PCA)  
Expansion and 
construction of new 
warehouses  Farmers and 
cooperatives  Up to 100% of the 
project value for 
grains storage; up 
to BRL 25 million in 
other investment  Fixed: 5.5%; 
Post-fixed; 
0.67% + 
monetary 
updating factors - 
below 
6,000  tonnes; 
Fixed: 7%; Post -
fixed; 2.1 0% + 
monetary 
updating factors - 
other investment  Up to 
12 years 
(3-year grace 
period)  2017: 767  
2018: 1 ,323 
2019: 1 ,313 
2020: 1 ,927 
2021a: 1,047 WT/TPR/S/ 432 • Brazil  
 
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  Produc ts/projects  Beneficiaries  Credit limit  Annual interest 
rate Duration  Disbursement 
(BRL  million)  
Programme to Encourage Innovation in Agricultural Production (INOVAGRO)  
Technical innovation 
(e.g. incorporation of 
new technologies to rural 
areas, automation and 
adaptation of poultry 
industry, pig breeding, 
dairy cattle farming, 
protected cultivation, 
computerization, 
training, precision 
farming)  Farmers and 
cooperatives  BRL 1.3 million 
(individual farmer); 
BRL 3.9 million 
(collectively taken)  Fixed: 7%; Post -
fixed; 2.1% + 
monetary 
updating  factors  Up to 
10 years 
(3-year grace 
period)  2017: 752  
2018: 1 ,281 
2019: 1 ,211 
2020: 1 ,625 
2021a: 1,280 
Programme to Strengthen Household Agriculture (PRONAF)  
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 
Federal Fund for the Defence of the Coffee Economy (FUNCAFÉ)  
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 
Programme to Support the Renewal and the Implementation of New Cane Fields (Prorenova Rural)  
Increase cane 
production by financing 
the renewal and the 
implementation of new 
cane fields  Farmers and 
cooperatives  without limit  Up to TJLP rate 
plus 1.45% 
remuneration rate 
for BNDES plus a 
rate negotiated 
between the 
beneficiary and 
the accredited 
financial 
institution  Up to 7  years 
(3 years 
grace period)  2017: 13  
2018: 9  
2019: 0  
2020: 0  
2021a: 0 
Others  
Without programme 
(Sem Programa ) .. .. .. .. 2017: 110 ,394 
2018: 116 ,953 
2019: 110 ,340 
2020: 127 ,118 
2021a: 155 ,716 
Total  2017: 167 ,634 
2018: 181,531 
2019: 178 ,583 
2020: 205 ,881 
2021a: 232 ,578 
.. Not available . 
a Until October 2021.  
Source:  BCB. Viewed at: https://www.bcb.gov.br/estabilidadefinanceira/micrrural ; MAPA (2021), Plano 
Agrícola e Pecuário 2021 -2022 Brasília; Manual do Crédito Rural. Viewed at: 
http://www3.bcb.gov.br/mcr ; and BNDES. Viewed at: 
http://www.bndes.gov.br/wps/portal/site/home/financiamento/produto/prorenova -rural. WT/TPR/S/ 432 • Brazil  
 
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  4.28.   Since Brazil's  last Review , the various sources of funding of administered interest rate and 
concessional credit oscillated (Table  4.5). They consisted of mandatory/compulsory resources, rural 
savings, Agribusiness Credit Bills (LCAs), constitutional funds, credit lines  managed by the 
National  Bank for Economic and Social Development (BNDES), free resources, the Brazilian Coffee 
Fund (FUNCAFÉ), the Worker Support Fund (FAT), as well as other funds and sources. Between  2010 
and 2020, the share of credit financed with mand atory resources continued to decline, while sources 
such as rural savings, free resources, and LCAs rose in importance (Table  4.5). In  2021,  LCAs 
continue was the fourth most important source of credit, after rural savings, mandatory resources, 
and free re sources.  
Table 4.5 Sources of agricultural/rural credit, 2010 -21 
(USD million)  
  Mandatory 
resources  Rural 
Savings  LCA Constitutional 
Funds  BNDES  Free 
resources  FUNCAFÉ  FAT Other 
resources  
2010 46.8 30.2 - 7.9 6.6 2 1.9 1.2 3.4 
2011 47.3 30.8 - 7.6 6.8 2.8 1.6 1.3 1.7 
2012 34 31.8 - 8.5 9.9 4.4 1.6 1.3 8.5 
2013 41 32.5 - 7.2 11.3 3.1 1.5 0.2 3.3 
2014 38.4 38.6 - 6.3 10.5 3.4 1.7 0.2 0.9 
2015 38.6 31.6 3.3 7 10.8 4.7 1.7 0.3 2 
2016 28.2 35.3 11.2 7.1 10.4 3.2 1.6 0.1 2.9 
2017 31.2 32.6 11.3 8.6 8.8 2.5 1.5 0 3.6 
2018 31.5 26.4 14.8 9.7 9.2 4.6 1.9 0 1.9 
2019 24.1 29 18.3 9.1 9.4 7 1.8 0 1.3 
2020 24.8 35.4 13.4 8.5 8.5 7.1 1.3 0 0.9 
2021 13.4 9.4 8.3 4.8 3 13.9 0.9 0 1.9 
Source:  BCB. Viewed at: 
https://www.bcb.gov.br/estabilidadefinanceira/reportmicrrural/?path=conteudo%2FMDCR%2FRepor
ts%2FqvcFonteRecursosRelat.rd l. 
4.29.   Funding from mandatory/compulsory resources, where public and private banks participating 
in the SNCR are obliged to either hold their sight deposits as obligatory reserves at the BCB at zero 
interest rate or to allocate the same proportion in loans to agricultural activities at below market 
interest rates , remained in place. As of July 2021, 25% (34% in 2012) of these sight deposits, a 
ratio set at the discretion of the CMN, should be used for agricultural credit at a preferential interest 
rate, at no c ost for the National Treasury.  
4.30.   Rural savings ( Poupança Rural ) schemes maintained by public banks ( Banco do Brasil, Banco 
da Amazônia, Banco do Nordest e) and cooperative banks are obliged to hold 59% (74% as 
from June 2015, previously 67% (June 2013 -May 201 5) and 68% (June 2011 -May 2013)) of 
their sight saving s deposits for agricultural credit at market or preferential interest rates for as long 
as the National Treasury decides to equalize the difference between these rates (see below). For the 
remaining, 20 % are reserve requirements, and the other 20% can be negotiated freely.  
4.31.   Agribusiness Credit Bonds ( Letras de Crédito do Agronegócio  (LCAs)), which are fixed income 
securities backed by credit transactions linked to agri -business, remained in place. They di ffer from 
traditional fixed income instruments because they are exempt from Income Tax (IR) for individuals. 
Since January 2019, 35% of the funds raised by this instrument are compulsorily allocated to rural 
credit, while the remaining 65% are freely negot iated. In either case , there is no cost for the National 
Treasury. Between June 2015 and May  2016, the mandatory ratio stood at 50% of LCAs backed by 
certain types of credit transactions; as of June 2016, it was reduced to 35% of which 40% at a fixed 
rate of up to  12.75% per year and 60% at market rates . According to the authorities, currently there 
is no fixed rate.  
4.32.   The Constitutional Funds are aimed at reducing regional inequalities through the financing of 
production activities including agriculture. The y consist of three regional funds: the 
FNO (North  Region), the FNE (North -East), and the FCO (Centre -West) that similarly to rural savings 
schemes are administered by Banco da Amazônia, Banco do Nordeste, and Banco do Brasil , 
respectively; they are capital ized with federal resources deriving from the Tax on Industrial 
Products  (IPI) and the Income Tax (IR).  
4.33.   Some investment credit allocations under the SNCR, such as P lan ABC, BNDES Agro, BNDES 
Credit for Cereals Producers, BNDES Rural Credit, BNDES Prorenova , BNDES, INOVAGRO, 
Moderagro, Moderfrota, PROCAP -Agro, PRODECOOP, PCA, PROIRRIGA, PRONAF, and PRONAMP , are WT/TPR/S/ 432 • Brazil  
 
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  funded by BNDES under the guidance of MAPA (Table  4.4).40 These programmes are provided 
through 26 financial institutions.41 BNDES also funds investment under the Programme of Support 
to the Sugar and Ethanol Sector (PASS), an ethanol stock programme also managed by MAPA, and 
PAISS Agricola, a programme for the development of agricultural research.42 
4.34.   Rural credit lines operated  by banks with capital deriving from mandatory and free resources 
remain subject to the rules contained in the Rural Credit Manual  (last updated in July 2021).43 
Since  2013, the main changes to the Manual have involved, inter alia , a revision of the financ ing 
terms, mainly on interest rates and limits of financing, as well as the creation of new investment 
programmes (INOVAGRO and PCA). Under the equalization principle, resources from the National 
Treasury are used to cover the difference between market rat es and those applied to certain rural 
credit operations. The equalization principle applies only to resources from federal official 
banks  (Banco do Brasil, Banco do Nordeste, Banco da Amazônia , and BNDES) and cooperative 
banks. The available amount of cred it resources subject to equalization for agriculture is set for the 
annual crop period, from July to June. No data on the annual credit equalization expenditures by the 
National Treasury were provided. To access credit resources  for working capital of up 
to BRL 300,000, beneficiaries must join PROAGRO, but they can choose a rural insurance, to avoid 
debt renegotiation and prevent losses to public and private banks. According to the general rules for 
rural credit programmes, beneficiaries must reside in Braz il, though they are not required to be 
Brazilian nationals. In the case of rural credit lines operated by majority government -owned financial 
institutions, financing may not be granted to companies headquartered abroad or companies whose 
voting capital is majority -owned by foreigners.  
4.35.   Agricultural credit resources available to commercial farmers under the Agricultural and 
Livestock Plans reached BRL 251.2  billion  in FY2021/22.44 The FY2019/20 Plan rose by 8.6% to 
BRL 222.7  billion  (USD  56.4 billion ) when co mpared to the FY2018/19. Compulsory share of sight 
deposits allocated to medium -size producers (PRONAMP) increased from 15% to 25%. Conditions 
for the allocation of 35% of resources from LCA s to rural credit, allowing these credits to be provided 
at non -preferential rates following a resolution by the Central Bank. LCA  resources, which are to 
represent 25% of the National Rural Credit System funds and to be provided at rates freely 
determined by the banks. Preferential interest rates were kept constant in s everal rural credit 
programmes at 0.5% to 4.6% for small producers (PRONAF), 6% for medium -size producers 
(PROMAMP) and 5.25% for the  Sector al Plan for Mitigation and Adaptation to Climate Change s for 
the Consolidation of a Low -Carbon Emission Economy in Agriculture  (Plan ABC). Repayment terms 
of credits for machinery were reduced from 10 to 7 years, and the grace period increased from  12 
to 14  months.45 
4.36.   For 2020 -21, the actual amount of administered interest rate was BRL 152 billion (56% of 
total), while BRL 119 billion  were at market rates. The administered interest rates for PRONAF 
were 2.75% to 4% per year, PRONAMP 5% per year, and between 6 % to 7.5% for the remaining 
producers. Seventy -six percent of the rural credit is targeted to production costs, ma rketing, and 
industrialization, and 24% for investment. 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 r ural credit disbursements for commercial farmers stood at 
BRL 127.7  billion  in FY2017/2018, BRL 128.7  billion in FY2018/2019, BRL 133.4  billion  in 
FY2019/20, and BRL 182.9  billion  in FY2020/21.  
4.37.   According to the authorities, rural debt has been being addres sed since the early 1990s.46 The 
authorities reported that during the review period, the renegotiation of rural financing was governed 
by a number of regulations, including Central Bank Resolutions in accordance with ordinary laws and 
 
40 Viewed at: BNDES Apoio à Agroindústria . 
41 Viewed  at: https://www.bndes.gov.br/wps /portal/site/home/onde -atuamos/agropecuaria/credito -
rural-desempenho -operacional . 
42 Viewed at: https://www.bndes.gov.br/wps /portal/site/home/financiamento/produto/programa -bndes -
de-apoio -ao-setor-sucroalcooleiro ; and https://www.bndes.gov.br/wps/portal/site/home/finan ciamento/plano -
inova -empresa/paiss -agricola . 
43 BCB, Rural Credit Manual . Viewed at: http://www3.bcb.gov.br/mcr/completo . 
44 Ministry of Agriculture, Livestock and Food Supply . Viewed at: https://www.gov.br/agricultura/pt -
br/assuntos/politica -agricola/plano -safra/2021 -2022/banners/grafico -valores -1.png/view . 
45 OECD (2020),  Agricultural Policy Monitoring and Evaluation 2020 . Viewed at: 
https://doi.org/10.1787/8f4be872 -en. 
46 Law No. 9,866/1999.  WT/TPR/S/ 432 • Brazil  
 
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  National Monetary Cou ncil decisions. The oldest rural debts have been subject to renegotiations 
regarding payment deadlines due to the difficulties faced by producers. The authorities asserted that 
Brazil's agriculture notifications to the WTO considered all debt rescheduling for each year as 
subsidies, which reflects the cost to the Government during the implementation period of each 
programme. The authorities informed that among the various initial rescheduling programmes, only 
securitization remains in force and the debt res cheduling programme for Rural Debt Securitization 
was USD  1.01 billion  in agricultural year 2016 -17, USD  957.8  million  in 2017 -18 and 
USD 783.4  million in 2018 -19, also falling under "development programmes".  
4.38.   According to the OECD, a gricultural credit at p referential 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. Furth ermore, due to the reduction in the overall 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 support s provided for 
on-farm investments that explicitly 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 rules 
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 sustainabl e production systems and mitigate emissions as embedded into the Plan ABC.47 
4.39.   The expectation for the next Plano Safra  is the continuation of the trend observed 
since 2019-20 with reduction of the explicit subsidy and of its fiscal cost and the expansion of 
operations at market rates, with greater focus of public resources on small and medium rural 
producers. With this, it is expected to preserve (and even advance) the total amounts of rural credit 
for agricultural activity and agro -industry, wit hout compromising the fiscal adjustment process that 
the country is going through.48 
4.1.4.2   Minimum price guarantees  
4.40.   During the review period, Brazil maintained unchanged its 1966 policy of guaranteed 
minimum prices (PGPM), an important pillar of its agricultural  policy. 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 fe w livestock products like cow and goat milk and honey (Table  4.6). On the basis of 
these minimum guaranteed prices, the Government implements several price support 
mechanisms  (Table  4.6), including direct government purchases (AGF); premiums to commercial 
buyers who pay minimum prices to supply producers (PEP, VEP); and public and private options 
contracts backed by private risk premium options (COV, PROP, PEPRO). In addition to these 
programmes, producers receive various reduced -interest marketing loans that enable them to 
withhold the sale of a product in anticipation of a higher market price (FPPG, FEPM , and FEE below). 
The state -owned National Food Supply Agency  (CONAB ) operates both the AGF set by the MAPA 
Secretary of Agricultural Policy (SPA) for comm ercial 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). The CONAB o perates these programmes on behalf of MAPA. Guaranteed prices 
for small -scale farmers are based on the average regional production cost of family farms.  
Table 4.6 Price support programmes, FY2019/20  
Price support programme/description  
Regulated by Decree No.  57,391, 12 December  1965, and Decree -Law No.  79, 19 December  1966. The PGPM fixes 
minimum guaranteed prices annually for some of Brazil's main crops. Prices a re promulgated by the National 
Monetary Council (CMN) through Ordinances. Ordinance No.  854, 20 August  2014, fixes minimum prices for a 
number of products for the 2014/15 summer harvest. When determining minimum prices, the CMN takes into 
account productio n costs in the different regions, as well as several factors affecting domestic and international 
market prices. The PGPM is implemented through credit lines (EGF and LEC) and commercialization instruments 
(AGF, PEP, VEP, PEPRO, COV and PROP; see below).  
 
47 OECD (2020), "Brazil ", in Agricultural Policy Monitoring and Evaluation 2020 . Viewed at:  
https://doi.org/10.1787/8f4be872 -en. 
48 IPEA Technical Note No. 3, 2nd semester of 2019. Viewed at: 
https://www.ipea.gov.br/portal/images/stories/PDFs/conjuntura/190528_cc_43_nota_tecnica_agricola.pdf . WT/TPR/S/ 432 • Brazil  
 
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  Price support programme/description  
The AGF allows producers and cooperatives to sell their products to the 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.  
The CONAB grants an equalization premium to wholesalers who agree to pay farmers a reference price. The 
premium is determined in public auctions an d generally reflects the difference between the reference price and the 
market price. In addition to guaranteeing minimum prices for producers, the PEP is used to shift the supply of 
agricultural products across regions, so as to avoid shortages and preven t the accumulation of stocks. In theory, all 
products included in the PGPM can participate in the PEP; however, the programme has been used for only a few 
products so far, mainly cotton, corn, wheat, sisal, beans, rice, and wine.  
As in the PEP, the VEP consists of payments of equalization premiums to buyers who agree to pay a minimum price 
to agricultural producers. The premiums are also determined in public auctions. However, in contrast with the PEP, 
where wholesalers acquire products from private stoc ks, the VEP is used to dispose of government stocks.  
The Government offers option contracts to producers and cooperatives through public auctions. Winning bidders 
acquire the right to sell their products to the Government at a future date, for a predeterm ined "execution price" (a 
minimum price plus storage and financial costs). If the execution price is lower than the market price on the due 
date, the option contract is not used. When it deems convenient, the Government may transfer its obligation to buy 
to another party. The scheme may be used for any product covered by the PGPM.  
Similar to the COV; the main difference is that the offer of option contracts comes from private entities. To limit the 
private -sector risk, the Government offers a risk premium.  The value of the premium is determined in public 
auctions, with a maximum price set by the Government. Winning bidders are those willing to accept the lowest 
premium value.  
This scheme offers producers and cooperatives the possibility to sell their produ ct at a premium, equal to the 
difference between reference and market prices, fixed through an auction. In contrast to the PEP, premiums are 
paid directly to producers.  
Note:  The use and costs of these programmes were unavailable . 
Source:  MAPA, based  on CONAB data . 
4.41.   The Producer Price Guarantee (FPPG) for the agro -industry; the Financiamento Especial para 
Estocagem de Produtos Agropecuários Integrantes da PGPM  (Special Financing for Stockholding of 
Agricultural Products Pertaining to PGPM) for PGPM agr icultural products storage for farmers; the 
Financiamento Especial para Estocagem de Produtos Agropecuários não Integrantes da 
PGPM  (Special Financing for Stockholding of Agricultural Products Not Pertaining to PGPM)  to cover 
storage of non -PGPM agricultur al products for farmers allow farmers to withhold the sale of products 
for up to 240 days in anticipation of higher price levels. Agricultural products are used as collateral 
and must be stored in warehouses accredited by the CONAB. The annual interest rat es were set at 
9.5%  for FEPM  loans with reimbursement deadlines of up to 240  days for PGPM  listed product s 
(180 days for no n-PGPM  listed products ) with maximum credit  of BRL 25  million  for up to 80% of 
stocked seeds and BRL 2.4  million  for up to 100% of other stocked products .49 The FEE does not use 
the minimum price as a parameter for calculating the amount to be financed.  
4.42.   According to the OECD, despite the variety of regional price support programmes, prices 
received by domestic agric ultural producers are aligned with international levels and there is very 
little MPS. MPS in Brazil is net of producer levies and excess feed cost for wheat, maize, rice, 
soybean, sugar, milk, beef and veal, pig meat, poultry, cotton, and coffee. In 2017 i t stood at 
USD 350 million, while in 2018 it rose to USD  443 million.50 
4.43.   The authorities informed that the CONAB data, which usually cover operations and amounts 
under both the PGPM and PAA  programmes, and its warehouses facilities , were no longer relevant,  
as CONAB has shifted its role away from holding and distributing stocks. Instead, producers 
benefitting from the referred programmes are required to handle their products directly to 
beneficiaries (e.g. families, schools, hospitals), with the aim of remov ing the Government as the 
intermediary. Data on PGPM operations were not provided by the authorities.  
4.1.4.3   Measures to promote family farming  
4.44.   Support for family farming remains an important component of agricultural policy. Since  2019 
small -scale family agriculture is also under the responsibility of MAPA, as it had been incorporated 
 
49 Banco do Brasil, FEPM and FEE. Viewed at: https://www.bb.com.br/pbb/pagina -
inicial/cooperativas/cooperativas -rurais/comercializacao/fepm -e-fee#/ .  
50 OECD (2020), "Brazil ", in Agricultural Policy Monitoring and Evaluation 2020 . Viewed at:  
https://doi.org/10.1787/8f4be872 -en. The authorities state that Brazil does not provide MPS according to the 
definitions of the WTO, as reflected in  its agricultural notificati ons for agricultural years 2015/16 , 2016/17 , 
2017/18 , and 2018/19 . WT/TPR/S/ 432 • Brazil  
 
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  under the Secretariat for Family Farming and Cooperatives (SAF ), which has the key aim of fighting 
poverty . It also plays a strategic role in controlling prices and the food supply. Support include s 
preferential credit lines  (PRONAF), rural extension (ATER), preferential rules in public procurement 
(PAA, PNAE), rural  insurance (PROAGRO MAIS), price guarantees , and debt rescheduling (Table  4.6, 
Section  4.1.4.2). Access of family farmers to the biodiesel market continues to be promoted under 
the Social Fuel Seal initiative (Section  4.2.2.3.3. 2). Most of the data on the total budgetary outlays 
for family farming under most of the programmes were not provided by the authorities ( Table  4.7). 
Table 4.7 Budget allocated to family farming programmes and measures, FY2020/21  
Programme  Description  Budget  
Programme to 
Strengthen Household 
Agriculture (PRONAF)  Preferential credit to small -scale producers with a gross annual 
income of up to BRL 500,000 per fam ily. BRL 39.3 billion  
Food Purchase 
Programme (PAA)  Support for commercialization of food products from family farms. 
The Government may buy directly from producers, to form 
strategic public stocks, supply public institutions or make 
donations to vulnerable populations. It may also finance the 
storage of food products by family farming organizations, so as 
to allow later commercialization under more favourable conditions.  .. 
National School Feeding 
Programme (PNAE)  Transfer of federal government funds to support the supply of free 
meals in public schools. At least 30% of the amount transferred by 
the Federal Government under the PNAE must be used to acquire 
food products from family farmers.  .. 
Rural Extension and 
Technical 
Assistance  (ATER)  Provision of free educational services aim ed at raising the income 
of family farmers by improving production systems and promoting 
access to services and resources.  .. 
Family Farming 
Insurance Programme 
(PROAGRO MAIS)  Guarantees for small farmers taking out credit for production 
activities under the PRONAF. The insurance covers 80% of the 
expected revenues. Indemnities are up to a maximum of 
BRL 20,000 per farmer per harvest year.  .. 
Harvest Guarantee 
Programme 
(Garantia -Safra)  Guarantees to family farmers affected by droughts or excessive 
rain in north -eastern and north of Minas Gerais. Insurance 
payments are fixed at BRL 850 and transferred in five instalments. 
The number of insured farmers are up to a maximum of 
1.35 million. The programme is finance by a fund composed of 
contributions from municipalities, states and the federal union.  .. 
Price Guarantee 
Programme for Family 
Farming (PGPAF)  An indexation of the credit taken out by family farmers under the 
PRONAF, through which  the price is fixed when the credit is 
granted. Upon repayment of the PRONAF's credit, if the price of 
the product financed has decreased, the farmer benefits from a 
discount from the amount due, equivalent to the difference 
between the product's market pr ice and the price set in the 
programme's index. The limit for the PGPAF bonus per farmer is 
BRL 7,000 each year. The programme covers 49 products, 
including corn, cotton, rice, milk, and oranges.  BRL 0.2 billion  
Support for rural 
production activities 
under the Brazil Without 
Extreme Poverty Plan  Provision of technical assistance, seeds, and direct cash transfers 
to family farmers living in extreme poverty (with a family income 
of less than BRL 85 per capita). Those resources, which are 
non-refundable, are limited to BRL 2,400 per family and must be 
used in rural production activities. The resources are divided into 
three parcels conditioned to the implementation of production 
projects guided by the technical assistance.  .. 
Total budget   BRL 39.5 billion  
.. Not available . 
Source:  Information p rovided  by the authorities.  
4.45.   According to the OECD, agricultural credit is the major policy instrument for medium - and 
small -scale family farmers, under the cooperation between the BCB, the Treasur y (Ministry of the 
Economy) , and the Ministry of Agriculture. The rural credits are mostly earmarked under the National 
Rural Credit System (SNCR) and provided at preferential interest  rates with differentiated conditions 
for small farmers (PRONAF) and medium -size farmers (PRONAMP). Moreover, three  main 
agricultural insurance programmes provide insurance premium subsidies or by compensating WT/TPR/S/ 432 • Brazil  
 
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  farmers for production losses due to climatic adversities: PROAGRO, Price Premium Subsidy 
Program  (PSR) , and Garantia -Safra (GS). PROAGRO is divided into PROAGRO Mais (or Family 
Agriculture Insurance) and PROAGRO for medium -sized, basically linked to PRONAMP. The Rural 
Insurance Price Premium Subsidy Programme (PSR) in its turn aims to cover damages mainly to 
small or medium farmers. Over 80% of the operations are concentrated in the production of 
soyabeans, corn , and wheat and in the states of Rio Grande do Sul and Paraná. Small -scale family 
farmers i n Minas Gerais and the Northeast – generally planting corn and beans on less than 
five hectares – can benefit from the GS Programme, targeted to cover systematic losses due to 
droughts. In addition, because of the COVID -19 crisis, special lines of credit f or family farmers exist 
through PRONAF and for medium -size farmers through PRONAMP and "a new emergency monthly 
financial assistance of BRL 600 (USD  152) for three months was granted to informal workers 
(without an employment contract), unemployed, individ ual "micro -entrepreneur [s]" and to the 
poorest  families. For spouses who are in support of the family, the family allowance [was] 
BRL 1,200  (USD 304) per  month ".51 
4.1.4.4   Other measures  
4.1.4.4.1   Agricultural/rural insurance  
4.46.   Agricultural insurance support continued to be provided to producers through four  main 
programmes, either in the form of insurance premium subsidies covering the difference between a 
fixed premium and market rates through a discount in the fee to farmers (fixed percentage), or by 
compen sating farmers for production losses due to natural disasters. Two of the programmes target 
commercial farmers (the rural insurance premium programme (PSR) and the general agriculture 
insurance programme (PROAGRO)) and the other two target small -scale fami ly farms (the family 
agriculture insurance programme (PROAGRO MAIS) and the crop guarantee programme (GS)) 
(Section  4.1.4.3).52 The operation of these risk management programmes is currently shared among 
federal institutions, including some Ministries and the BCB. During the review period, a number of 
initiatives to improve the effectiveness of the rural insurance premium programme  (PSR) included: 
(i) a pilot programme to facilitate collective negotiation for producers; (ii) greater dissemination of 
the pro gramme 's availability through budget increase and communication plan; (iii) disclosure of 
statistical information on the programme; (iv) greater involvement of the private sector through 
advisory committees; (v) development of the PSR application; and (vi) encouraging the training of 
rural experts with the development of basic training material and a national register of those in 
charge of loss -proofing services. Resources allocated to all agricultural insurance programmes 
amounted to USD  253 million in the  2020 agricultural plan; subsidy rates ranged in  PSR were 
significantly reduced to 20% for soybeans producers and set between 20% and 40% of the premium 
for livestock and all the other crops, of minimum coverage requirements of 65%.53 Resources 
allocated t o the PSR stands at BRL 990 million  (USD 186 million ) in 2022.54 In 2021, the insurance 
contracts supported by the PSR covered about 14  million hectares, compared to 13.7  million 
hectares in 2020 and 5.5  million  hectares in 2017, allowing more than 217,934  of insurance 
contracts, totalling BRL 68.3 billion of insured value. In  2021, resources allocated to PSR subsidies 
were increased by 34% to BRL 1.18 billion  (USD  221 million ). The subsidy rates ranged from 20% 
to 40% of the premium, depending on the crop and the risk coverage. Since 2019, compliance with 
 
51 OECD (2020), "Brazil ", in Agricultural Policy Monitoring and Evaluation 2020 , p. 130. Viewed at : 
https://doi.org/10.1787/8f4be872 -en. 
52 The PSR, which covers all agricultural and livestock activities, as well as forestry and aquaculture, has 
granted insurance premium subsidies of up to BRL 120 ,000 per beneficiary to commercial producers who 
establish contracts with insurance companies lis ted by the Government, although historically the average 
amount of subsidy is under BRL 10 ,000 per farmer according to the authorities. The PROAGRO and its 
PROAGRO MAIS, which targets mid -sized and family farmers, offer eligible farmers partial compensatio n of the 
bank debt on working capital loans used in production of the damaged crop and provides indemnity on loss of 
own resources invested in production; most of its resources are directed to the southern region and to grain 
crops, mainly soybeans. To ben efit from the PROAGRO facilities, producers must pay a premium fee, but no 
data were provided by the authorities on the fees or on the indemnities paid through PROAGRO to producers 
(including family farmers) . 
53 OECD (2020), "Brazil ", in Agricultural Policy  Monitoring and Evaluation 2020 . Viewed at : 
https://doi.org/10.1787/8f4be872 -en. 
54 Resolution  No. 93/2022  from the Interministerial  Rural Insurance  Management  Committee . Viewed  
at: https://pesquisa.in.gov.br/imprensa/jsp/visualiza/index.jsp?data=17/05/2022&jornal=515&pagina=3 . WT/TPR/S/ 432 • Brazil  
 
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  the Agricultural Zoning Program (ZARC) is compulsory for farmers participating in subsidized 
insurance programmes.55 
4.1.4.4.2   Advance  sale facilities  
4.47.   Two facilities allowing farmers to cash in their products prior to sale remain in place and are 
operated by the Banco do Brasil  and/or other private or state -owned financial institutions. The Rural 
Product Certificate (CPR) continues to allow producers to sell their crops prior to the harvest and, 
thus, obtain resources to finance rural activities. The CPR may be issued by produce rs or 
cooperatives, who assume the obligation to deliver a certain amount of commodities at a future 
date. The "CPR Financeira" allows for liquidation in cash and is often used as collateral for acquiring 
credit. Farmers may obtain guarantees for the CPR. Up to 5% of mandatory resources to finance 
rural credit may be used by banks to discount CPRs (Section  4.1.4.1). Farmers and cooperatives 
that sell their products in the futures market may access credit lines by discounting a rural 
promissory note  (NPR) or  a rural duplicate (DR), which allow them to receive proceeds from the sale 
before the harvest.  
4.1.4.4.3   Zoning, land , and other requirements  
4.48.   Agricultural zoning requirements continue to link agricultural support to environment 
sustainability.56 They condition prod ucers' 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 (Section  4.1.4.1). In addition, several 
specific programmes for both the commercial and family farm segments promote sustainable 
agricultural practices; they include credit for plantings on unproductive and degraded soils, credit 
for forest planting, and credit to modernize production systems and pr eserve natural 
resources  (Section  4.1.4.1).  
4.49.   Foreign investment in agricultural land remains restricted and administered by the National 
Land Reform and Settlement Institute (INCRA) (Section  2.4.2).57 The area of agricultural land 
bought or leased by foreig ners shall follow the limits for any given municipal district as indicated in 
the National  System of Rural Registry.  
4.1.4.4.4   Other  
4.50.   The Brazilian System of Inspection of Animal Origin Products (SISBI -POA), which is part of 
the Unified Agricultural Health Care Syste m (SUASA), at state, district , and municipal levels is 
applied to animal origin products traded at local markets and does not affect international trade.58 
4.2  Mining and Energy  
4.2.1   Mining (excluding hydrocarbons)  
4.2.1.1   Main features  
4.51.   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 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).59 In 
 
55 Further information available at: https://www.gov.br/agricultura/pt -br/assuntos/riscos -
seguro/seguro -rural/dados . 
56 OECD (2020), "Brazil ", in Agricultural Policy Monitoring and Evaluat ion 2020 . Viewed at : 
https://doi.org/10.1787/8f4be872 -en. 
57 Viewed at: https://www.gov.br/incra/pt -br/assuntos/governanca -fundiaria/aquisicao -terras -
estrangeiros ; https://www.gov.br/pt -br/servicos/obter -autorizacao -para-estrangeiro -adquirir -ou-arrendar -
terras . 
58 Ministry of Agriculture, Livestock and Food Supply, SISBI -POA. Viewed at: 
https://www.gov.br/agricultura/pt -br/assuntos/suasa/sisbi -1. 
59 CETEM/MCTIC (2018), Mineral Resources and Territories: Human, Socio-Environmental and Economic 
Impacts , Serie Estudos e Documentos n. 96. Viewed at: WT/TPR/S/ 432 • Brazil  
 
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  terms of production value, iron (68%) , gold (11%) , and copper (7%) are Brazil's main mining 
products.60 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.61 FDI inflow in mining support service activities reached almost 3% of Brazil's GDP in  2020.  
4.52.   Mining products also have a major role in Brazil's trade. Export revenue for HS 2662 in 2021  
reached USD  49 billion  while imports amounted to USD  1 billion  compared to USD  22.4 billion of 
exports and USD  1.2 billion  of imports in 2017. Iron ore, iron ore concentrates, and pellets were 
Brazil's main exported product s in 2020, reaching USD  26 billion (over 20% of Brazil's total 
exports).63 In 2021, Brazil iron ore exports reached USD  45 billion , while copper exports amounted 
to BRL 3.4 billion .64 The five main destinations of iron ore exports in 2021 were: China  (65%), 
Malaysia (6%), the Kingdom of Bahrain  (4%), Japan (4%), and Oman (3%).  
4.2.1.2   Institutional and policy framework  
4.53.   The National Mining Agency (ANM) was created in 2017 as an autonomous agenc y and with 
the aim of promoting the management of Brazil's mineral resources, as well as to regulate and 
inspect activities involving the use of mineral resources in the country.65 Some ANM functions include 
implementing the national policy for mining acti vities; establishing norms and standards for the use 
of mineral resources; managing mining rights and titles for the purpose of benefitting from resources 
minerals; adjudicating and regulating administrative processes , such as the granting of mining titles , 
inspection of mining activities , and enforcement of sanctions; determining precautionary measures; 
managing the credits collected from the Financial Compensation for the Exploration of Mineral 
Resources (CFEM), of the annual fee, per hectare and from fin es imposed by the ANM; mediating 
and deciding conflicts between mining activity agents; exercising inspection, on a complementary 
basis, for environmental control, sanitary  conditions , and safety of mining activities, in conjunction 
with other agencies; an d fostering competition between economic agents, monitor ing 
and follow ing up on market practices in the country's mining sector , and cooperat ing with 
competition  agencies.  
4.54.   The Secretariat of Geology, Mining and Mineral Transformation of the Ministry of Min es and 
Energy (SGM/MME) is responsible for elaborating policies that the ANM implements. The MME is also 
responsible for overseeing the performance of the geology, mining, and mineral transformation 
sectors, so as to keep those up to date with best practic es.66 
4.55.   The National Nuclear Safety Authority (ANSN), created by Law No.  14,222/2021, is a federal 
autarchy with administrative, technical, and financial autonomy under the oversight of the MME. The 
ANSN establishes the technical standards of uranium mining operations. Brazil's Nuclear Industries 
(INB), a privately held public co mpany linked to the MME, is responsible for mining nuclear ores, a 
constitutional monopoly pursuant to Article  21 of the Constitution. ANSN replaced the National 
 
http://mineralis.cetem.gov.br:8080/bitstream/cetem/2231/3/SED -96.pdf ; and  U.S. Geological Survey (2020), 
Mineral Commodity Summaries 2020 . Viewed at: https://doi.org/10.3133/mcs2020 . 
60 OECD (2022), Regulatory Governance in the Mining Sector in Brazil . Viewed at: 
https://www.oecd.org/gov/regulatory -policy/regulatory -governance -in-the-mining -sector -in-brazil -63d60aa8 -
en.htm . 
61 OECD (2022), Regulatory Governance in the Mining Sector in Brazil . Viewed at: 
https://www.oecd.org/gov/regulatory -policy/regulatory -governance -in-the-mining -sector -in-brazil -63d60aa8 -
en.htm . 
62 The authorities mentioned that for mining products beyond HS  26 (e.g. fertilizers) the balance of 
trade would be different. Only HS 26 products were considered to apply a similar approach vis-à-vis other 
Members' Reviews . 
63 WTO (2021) World Trade Profiles 2021.  Viewed at: 
https://www.wto.org/english/res_e/booksp_e/trade_profiles21_e.pdf . 
64 Comex  Stat. Viewed at : http://comexstat.mdic.gov.br/pt/home . 
65 ANM substitute d the National Department of Mineral Production (DNPM).  
66 The MME is in charge of granting mining concessions for materials not covered by the ANM, 
e.g. metallic substances and mineral waters.  WT/TPR/S/ 432 • Brazil  
 
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  Nuclear Energy Commission (CNEM) in its regulatory functions. CNEM now is responsible exclusiv ely 
for research and development studies.67 
4.56.   The Mineral Resources Research Company (CPRM) is a Brazilian government company under 
the MME. The CPRM is responsible for the geological service of Brazil, including carrying out 
geological, geophysical, geochem ical, hydrological, and hydrogeological surveys and the 
management and dissemination of geological and hydrological information.68 
4.57.   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.69 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 participation 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.  
4.2.1.3   Regulatory and operational framework  
4.58.   Pursuant to the Constitution, mineral resources, including those in the subsoil, are the 
exclusive property of the Federal Government, though the mined product is owned by those who 
had received exploration rights through specific concession titles. The Fe deral Government has the 
sole responsibility to establish the areas and conditions for the exercise of mining activities in Brazil. 
The Constitution also grants the Federal Government the exclusive responsibility to legislate on 
mining resources.70 
4.59.   The Min ing Code71 regulates the mining rights over Brazil's mineral resources, including by 
setting specific regimes, and by determining the inspection by the Federal Government on research, 
mining , and other aspects of the mining industry ; rights and obligations  of the owners of the mines 
and land ; and the corresponding sanctions in cases of non -compliance. The Mining Code establishes 
five mining regimes: concession; authorization; licensing; mining prospecting permit; and 
monopolization. The authorities did not have information on foreign capital ownerships involving 
mining activities in Brazil, though reference was made to the obligation of registration when foreign 
capital corresponds to more than 51% of the company's ownership.72 The authorities noted Chinese 
state-owned companies acquiring mining assets in Brazil as part of CBMM  (Anglo Niobium/phosphate 
in Catalão).  
4.60.   Between 2017 and 2022, 55,635 titles were granted  (Table  4.8).73 
Table 4.8 Licen ces and titles for  mining granted (2017 -June 2022)  
Year Licensing  Mining concession  Lavra Garimpeira 
permission  Mineral research  
2017 1,515  206 286 9,569  
2018 1,013  336 216 9,295  
2019 1,008  497 178 7,210  
2020 1,154  527 265 5,308  
 
67 Law No. 4,118, 27 August  1962; Law No. 6,189, 16 December  1974; and Law No. 7,781, 
27 June 1989 establish guidelines for the exploration and commercialization of nuclear ores and materials of 
interest to nuclear energy. The latter also establishes the c onditions of importation and exportation of nuclear 
ores, minerals , and ores of interest to nuclear energy in addition to uranium and thorium associated minerals 
and ores, their concentrates, products , and by -products . 
68 Geological Survey of Brazil. Viewed at: http://www.cprm.gov.br/ . 
69 Ministry of Mines and Energy, National Mining Plan 2050 . Viewed at: https://www.gov.br/mme/pt -
br/assuntos/secretarias/geologia -mineraca o-e-transformacao -mineral/pnm -2050. 
70 Federal Constitution (1988) , Articles 20, 21, 22, 49 , and 176 . 
71 Decree Law No.  267/67. 
72 According to the authorities, companies with more than 51% of foreign capital ownership are obliged 
to obtain a previous licen ce to operate given by the Defence National Council  within a 150 kilometre strip along 
the border, pursuant to Law No 6 ,634/1979.  
73 National Mining Agency, Mining Statistics in Brazil . Viewed at: https://www.gov.br/anm/pt -
br/centrais -de-conteudo/mineracao -em-numeros . WT/TPR/S/ 432 • Brazil  
 
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  Year Licensing  Mining concession  Lavra Garimpeira 
permission  Mineral research  
2021 1,115  760 161 10,098  
2022 508 199 148 4,068  
Source:  Information p rovided by the authorities . 
4.61.   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 S cience, Technology, Innovations and 
Communications; (iv)  0.2% to the Brazilian 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 Dis trict 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 inform ation is provided by 
the authorities in the Tables  4.9 and 4.10 below.75 
Table 4.9 Financial Compensation for the Exploration of Mineral Resources (CFEM) rates  
Rate (%) Mineral substance  
1.0 Rocks, sand, gravel, gravel and other mineral substances when intended for immediate use in 
civil construction; ornamental rocks; mineral and ther mal waters  
1.5 Gold 
2.0 Diamond and other mineral substances  
3.0 Bauxite, manganese, niobium and rock salt 
3.5 Iron 
Source:  Law No.  13,540/2017.  
Table 4.10 CFEM annual revenue  
(BRL million)  
2017  2018  2019  2020  2021  
1.839  3.036  4.504  6.081  10.289  
Source:  Information p rovided by the authorities . 
4.62.   In February 2020, the G overnment presented Bill No.  191/2020 to the Chamber of Deputies 
to allow mining in indigenous lands. As of June 2022, it remains on an urgent basis and was still 
without an estimation for its approval.  These lands correspond to 11.6% of the Brazilian territory 
(an area equivalent to the territories of France and the United Kingdom combined).76 
4.2.1.4   Border measures and domestic su pport  
4.63.   Brazil 's average applied tariffs for minerals and metals in 2020 stood at 10.1%, with maximum 
tariffs at 20%, the same rates since in 2017.77 No further information on non -tariff measures were 
provided in addition to those applicable to nuclear miner als above. No domestic processing 
requirements current ly exist.  
4.64.   Similar to other sectors, mining benefits are provided by the Federal Government 
(Section  3.3.1.4). Inova Mineral, a joint initiative of the National Development Bank (BNDES) and 
 
74 OECD (2022), Regulatory Governance in the Mining Sector in Brazil . Viewed at: 
https://www.oecd.org/gov/regulatory -policy/regulatory -governance -in-the-mining -sector -in-brazil -63d60aa8 -
en.htm . 
75 Law No.  13,540/2017 introduced n ew rates for CFEM and changed the form of application on 
gross  sales revenue, after deducting taxes on its commercialization . 
76 Câmara dos Deputados  (2020), "Government Project Enables Mining of Ores on Indigenous Lands", 
6 February. Viewed at: https://www.camara.leg.br/noticias/634893 -projeto -do-governo -viabiliza -exploracao -
de-minerios -em-terras -indigenas/ ; and Câmara dos Deput ados (2022), "House Approves Urgency for Project 
on Mining in Indigenous Lands; Text Will Be Analyzed by Working Group", 9  March . Viewed at: 
https://www.camara.leg.br/noticias/856872 -camara -aprova -urgencia -para-projeto -sobre -mineracao -em-
terras -indigenas -texto-sera-analisado -por-grupo -de-trabalho . 
77 WTO (2021) World Tariff Profiles 2021.  Viewed at: 
https://www.wto.org/english/res_e/booksp_e/tariff_profiles21_e.pdf . WT/TPR/S/ 432 • Brazil  
 
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  Financing of Studies and Projects (FINEP) for the promotion and selection of investment plans that 
contemplate the technological development, production , and commercialization of innovative and 
more sustainable products, processes , and/or services in the production cha ins of the mining and 
mineral transformation industries, has been in place since 2017. In 2017 and 2018, it allocated 
BRL 1.18 billion  in form of credits, subsidies, and cooperation projects between institutions and 
companies, and also through equity participation in selected business plans from Brazilian companies 
meeting criteria, though only BRL 100 million  were disbursed. According to the authorities, this 
amount was a llocated by BRL 88.4 million  to FINEP, BRL 7.5 million  in credits, BRL 17.9 million  in 
subsidies, BRL 2 million  in cooperation , and none in equity participation. The authorities also 
informed that the initiative has since been terminated.78 
4.65.   In February 202 2, the MME signed a cooperation agreement with  BNDES on proposals for the 
sustainable development of the mining sector.79 The purpose of the protocol is the combination of 
efforts between the MME and the BNDES to establish the bas is for future and eventual  cooperation 
between the participants, in order to study, discuss , and propose actions aimed at the development 
of the mining  sector, including adequate financing policies ; environmental, social , and 
governance  (ESG)  aspects ; and research, development , and innovation (RD&I) activities.  According 
to the authorities, t he Protocol of Intent states that it will not entail the transfer of financial resources 
between the participants and/or to third parties.  
4.66.   Under the initiative of the Secretariat of Geology, Min ing and Mineral 
Transformation  (SGM/MME) in partnership with BNDES and supported by the ANM in 2021, the 
Government and the private sector launched a financing network for the mineral sector named Invest 
Mining. Invest Mining is a network of focal points, formed by representatives of public bodies, 
institutions, and private entities,  aimed at  contributing to expand and diversify mineral production 
by fostering  the conditions that favour financing companies in the sector in Brazil. According to the 
authoriti es, there is no application of public resources at Invest Mining.  
4.67.   In February 2021, BNDES sold its last block of shares in the Vale S.A. mining company. As of 
30 April 2022, foreign investors represented around 60% of the mining company's shareholding 
control. Vale is the company with the highest market value on the Brazilian stock exchange  (B3), 
exceeding BRL 500 billion . The Government has specific rights (golden shares) assigned in 
Vale's  bylaws, including change of corporate purpose related to the exploration of mineral deposits; 
modification of the rights attributed to the types and classes of shares issued by the company; sale 
of the company; termination of activities of mineral deposits, ore deposits, mines, railways, ports , 
and maritime terminal s.80 
4.68.   The Government has control of Indústrias Nucleares do Brasil  (INB), a public company, 
incorporated as a privately held corporation, pursuant to Law No.  5,740/1971, Law  No. 6,189/1974, 
and Decree  Law No.  2,464/1988, linked to the MME, under Brazil's sh areholding control. INB carries 
out the activities of the nuclear fuel cycle, acting in the uranium production chain, which is a state 
monopoly, in the stages of mining and its improvement, isotopic enrichment, manufacture of 
uranium powder and pellets, an d assembly of the fuel element used in Brazilian nuclear plants for 
electricity production.  
 
78 BNDES, Inova Mineral . Viewed at: 
https://www.bndes.gov.br/wps/portal/site/home/financiamento/produto/inova -mineral ; FINEP, Inova Mineral . 
Viewed at: http://www.finep.gov.br/apoio -e-financiamento -externa/historico -de-programa/programas -
inova/inova -mineral . 
79 Agência Brasil (2022), " BNDES Will Present Proposals to Boost Mining Sector" , 8 February. Viewed at: 
https://agenciabrasil.ebc.com.br/radioagencia -nacional/economia/audio/2022 -02/bndes -vai-apresentar -
propostas -para-dinamizar -setor-de-mineracao . 
80 Vale, Investors . Viewed at: http://www.vale.com/brasil/PT/investors/company/shareholding -
structure/Pa ginas/default.aspx . According to the authorities, Vale S .A.'s bylaws establishes that the company's 
shares are common and preferred of the "special" class, and Vale will not be able to issue other preferred 
shares, which will belong exclusively to the Federal Government and will have the rights that are expressly and 
specifically assigned in these Bylaws. Furthermore, Vale's capital stock is BRL 77.3  billion , fully subscribed and 
paid in, divided into 5,284,474,782 book -entry shares, of which BRL 77.3  billion , divided into 
5,284 ,474,770  common shares and BRL 176.88 , divided  into 12 special class preferred  shares, all without par 
value. Vale, Bylaws . Viewed at : http://www.vale.com/PT/investors/corporate -governan ce/Documents/Estatuto -
Social -2021_p.pdf . WT/TPR/S/ 432 • Brazil  
 
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  4.69.   Furthermore, several state governments make direct investments in mineral interests, aiming 
to promot e production in partnerships with private companies, such as Copanhia Baiana de Pesquisa 
Mineral  (CBPM) in Bahia, and Companhia Mineradora do Pirocloro de Araxá  (COMIPA) 
in Minas  Gerais.  
4.2.2   Energy  
4.2.2.1   Main features  
4.70.   Brazil, a net exporter of crude oil since 2006, remains self -sufficient in primary energy 
(except  for natural g as, coal, refined  oil products , and hydropower). In 2021, it produced 
425.1  million  barrels  of oil, of which more than 47.2% were exported to China.81 Locally refined oil 
increased by  2.5% year -on-year to 1.8  million  barrels a day.82 In 2021, imports of re fined oil 
increased to  116.7  million barrels.83 In 2021, total energy demand was 301 .5 million  tonnes of oil 
equivalent ( mtoe) (299 .6 mtoe in 2015 and 268 .7 mtoe in 2010). The Brazilian energy matrix (or 
total energy demand) continued as one of the greenest in the world; in 2021, 45% (41.3% in  2015 
and 44.7% in 2010) of energy came from renewable sources compared to an average of less 
than 15% for the rest of the world. In 2021, it consisted of oil and oil derivatives (34.4%) (37.2% 
in 2015), sugarca ne (16.5%) (16.9% in 2015), natural gas (13.5%) (13.7% in 2015), 
hydropower  (11%) (11.3% in 2015), wood and vegetable coal (8.6%), coal (5.7%), other 
renewables (8.3%) (4.7% in 2015), uranium (1.3%), and other non -renewables (0.7%). Solar 
energy capacity i ncreased by 70% from 2020 to 2021, reaching 13 GW in installed capacity. O f the 
final consumption, transport accounted for 32.7%, industries 30.4%, energy sector 11.2%, 
households 10.3%, services 5.1% , and agriculture and livestock 4.9%.84 
4.2.2.2   Policy and insti tutions  
4.71.   Brazil's plan for energy expansion from 2021-31, named Ten-year Energy Expansion 
Plan 2030 (PDE 2030) , is focused on striking a balance between the economic growth projections 
and the necessary expansion of energy supply, as well as ensuring energy  supply at the appropriate 
cost and on a technical and environmentally sustainable basis. It also aims, inter alia , at raising the 
share of renewable sources in the energy and electricity generation matri ces to 48% and 83% 
by 2031,  respectively .85 To attai n these objectives, a total investment of BRL 3.2 trillion is planned, 
of which BRL 2.7 trillion in oil, natural gas , and biofuels, and BRL 528 billion in electricity generation, 
distribution , and transmission . 86 Worth mentioning that n uclear energy is expected to grow with the 
start of operations by Angra  3 power plant estimated for 2026.  
4.72.   Brazil has also launched t he National Energy Plan 2050 , which integrated planning of energy 
resources by the Government as prepared by the Energy Research Company (EPE ) in close 
collaboration with the MME. The plan lays the basis for the formulation of a strategy to expand the 
supply of economic and sustainable energy with a view to meeting the evolution of demand, 
according to a long -term perspective, and by covering e lectric energy, as well as other energy 
sources, notably oil, natural gas , and biomass.87 
 
81 Comex  Stat, General Exports and Imports . Viewed at: http://comexstat.mdic.gov.br/pt/geral/5687 . 
82 Ministry of Mines and Energy, Statistical Data . Viewed a t: https://www.gov.br/anp/pt -br/centrais -de-
conteudo/dados -estatisticos . 
83 EIU (2022), Industry Report – Energy – Brazil , 17 February.  
84 EPE, Brazilian Energy Balance 2020, Summary Report Year 2019 . Viewed at: 
https://www.epe.gov.br/sites -en/publicacoes -dados -aberto s/publicacoes/PublicacoesArquivos/publicacao -
217/SUMMARY%20REPORT%202020.pdf . 
85 EIU (2022), Industry Report – Energy – Brazil , 17 February.  The main changes planned in Brazil's 
energy mix in 2022 -31 are reductions in the shares of petroleum products (from 34% to 32%), 
sugarcane -based ethanol biofuels (from 19% to 17%), firewood and charcoal (from 8% to 7%), and 
coal (from  5% to 4%). Shares will rise for natural gas (from 11% to 14%), renewables (from 8% to 11%) , and 
nuclear power (from 1% to 2%), and hydropower will remain at 13%.  
86 Ministry of Mines and Energy and EPE  (2021), Plano Decenal de Expansão de Energia 2030 , 
25 February . Viewed at: https://www.epe.gov.br/pt/publicacoes -dados -abertos/publicacoes/plano -decenal -de-
expansao -de-energia -2030. 
87 Ministry of Mines and Energy and EPE  (2021), Plano Decenal de Expansão de Energia 2030 , 
25 February . Viewed at: https://www.epe.gov.br/pt/publicacoes -dados -abertos/publicacoes/Plano -Nacional -de-
Energia -2050. WT/TPR/S/ 432 • Brazil  
 
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  4.73.   Under the Federal Constitution, Brazil's hydropower sources and mineral resources (including 
oil and gas), whether in the subsoil, the continental shelf, or in the ex clusive economic zone, are the 
exclusive property of the Union.88 The sector remains dominated by state companies. The MME 
implements the general policy for the sector and chairs the National Energy Policy Council (CNPE),  
which proposes policies and regula tions pertaining to hydrocarbons, biofuels, and electricity to the 
President.89 Two autonomous regulatory agencies are linked to the MME: the National Agency for 
Petroleum, Natural Gas and Biofuels (ANP), which regulates hydrocarbons and biofuels (except f or 
state-level distribution of natural gas); and the National Agency for Electrical Energy (ANEEL), 
responsible for regulating and overseeing the electricity sector. In the downstream segment, all 
activities involving petroleum products, as well as the tra nsportation, processing, storage, 
liquefaction , and re -gasification of natural gas remain subject to ANP authorization, while importation 
and exportation are subject to authorization by the MME. Gas transmission pipelines and storage 
facilities projects mu st also, in general, be proposed by the MME and undergo an auction conducted 
by ANP. The EPE supports planning, inter alia , in areas such as electricity, oil, natural gas and its 
derivatives, coal, renewable energy sources , and energy efficiency.90 
4.2.2.3   Hydroca rbons and biofuels  
4.2.2.3.1   Oil 
4.2.2.3.1.1   Main features  
4.74.   Crude oil represented 11% of Brazilian exports in 2021.91 No information on the oil sector 
share of Brazil's GDP was provided. Output of oil picked up with pre -salt production. In 2019, total 
annual oil production reach ed 1,018  billion  barrels (7.78% higher than in 2018) and more than  60% 
of national production from the "pre -salt" layer . From 2014 to 2019 , the well-lifting costs  have 
sharply dropped by 61%  (from USD  15.3 per barrel to USD  6).92 Brazil remains a net exporter of 
crude oil with an average of 1.16  million barrels a day in 202193 and a net export income (f.o.b.) of 
USD 17 billion  in 2020 and USD 26.6 billion  in 2021. According to the authorities, m ore than 40% 
of exports went to China  in 2021.94 According to market specialists, more than 70% of crude -oil 
exports went to China in 2021.95 This increase is due to a signed loan between Petrobras  and the 
Chinese Development Bank in May 2015.96 However, as much of the locally produced heavy crude 
oil cannot be refined domestically, its refined products are imported. Consequently, since 2011, 
Brazil has remain ed a net petroleum importer, driven by demand for refined oil products much of 
which originate in the United  States, Argentina, Spain, t he Netherlands, India , and Angola .97 
In 2021, petroleum products imports averaged 621 ,000 barrels per day, a  27% increase from 
the 2020.98 It was mainly imported from the United  States , approximately to 361 ,000 barrels per 
day.99 In 2021, Brazil ranked  as the  9th largest oil producer in the world for petroleum and other 
liquid fuels .100 
 
88 Federal Constitution , Article  20. 
89 According to the authorities, the Inter ministerial Council for Sugar and Alcohol (CIMA) has 
been terminated.  
90 More information on the sector's institutional framework is available in WTO document 
WT/TPR/S/283/Rev.1, 26  July 2013.  
91 Comex Stat. Viewed at: http://comexstat.mdic.gov.br/en/comex -vis. 
92 International Trade Administration, Brazil Country Commercial Guide: Energy . Viewed at: 
https://www.trade.gov/country -commercial -guides/brazil -energy .  
93 Ministry of Mines and Energy, Statistical Data . Viewed at: https://www.gov.br/anp/pt -br/centrais -de-
conteudo/dados -estatisticos . 
94 Comex Stat, General Exports and Imports. Viewed at: http://comexstat.mdic.gov.br/pt/geral/5687 7. 
95 EIU (2022), Industry Report – Energy – Brazil , 2nd quarter.  
96 U.S. Energy Information Administration, Brazil . Viewed at: 
https://www.eia.gov/international/analysis/country/BRA .  
97 EIU (2022), Industry Report – Energy – Brazil , 2nd quarter . 
98 Ministry of Mines and Energy, Statistical Data . Viewed at:  https://www.gov.br/anp/pt -br/centrais -de-
conteudo/dados -estatisticos . 
99 Ministry of Mines and Energy, Table  2.53: Imports of Petroleum Derivatives . Viewed at: 
https://www.gov.br/anp/pt -br/centrais -de-conteudo/publicacoes/anuar io-estatistico/arquivos -anuario -
estatistico -2021/tabelas -e-quadros/industria -nacional -do-petroleo/t2 -53.xls . 
100 BP (2021), Statistical Review of World Energy . Viewed at: 
https://www.bp.com/content/dam/bp/business -sites/en/global/corporate/pdfs/energy -economics/statistical -WT/TPR/S/ 432 • Brazil  
 
- 126 - 
 
  4.75.   During the review  period, the state -controlled Petrobras  maintained its dominant position in 
the production and refining markets of petroleum and petroleum products in Brazil. According to the 
authorities, the Government has 50.3% of Petrobras'  voting shares and 36.6% of its capital stock. 
Private Brazilian inv estors hold 18.9% of capital stock, while foreign investors hold 44.5%.101 
Petrobras  is not obliged to meet domestic demand of crude oil before exporting the remainder.  
During the review period, the company continued to account for over 90% of total oil pro duction. 
Whereas Petrobras  is responsible for most of Brazil's  crude oil production, other producers may 
export all of their production of heavy oil, since there is no obligation to sell to refineries in Brazil.102 
The dive in oil prices  and adverse impact of COVID -19 led  Petrobras  to reduce its investments by 
30% in 2020 to USD  8.5 billion.  Investments from other oil companies are also expected to drop by 
up to 30%.103 Reportedly, Petrobras currently accounts for less than 75% of oil output in Brazil, as 
foreign firms  – including Shell, Repsol -Sinopec  (Spain -China), Petrogal (Portugal) , and 
Equinor  (Norway)  – have increased their  production.104 Brazil was the only South  American  country  
to increase  crude  oil production  in 2020.105 
4.2.2.3.1.2   Upstream – Exploration and production (E&P) arrangements  
4.76.   Brazil's two parallel regimes (transfer of rights and production  sharing) for selected 
exploration blocks remained unchanged during the review period (Table  4.11).106 The ANP may grant 
authorizations and/or concessions for specific activities to private companies and consortia 
incorporated under Brazilian law, with headquarters and management in Brazil. Besides creating the 
appropriate entities in Brazil, foreign compan ies must comply, inter alia , with technical -capacity and 
financial -standing requirements.  Since 2010, a  fully state -owned enterprise Pré -sal Petróleo S.A. 
(PPSA) has represented the Government's interests in the consortia performing E&P operations and 
mana ged the commercialization of the State's share of output produced under the 
production -sharing agreements.107 
Table 4.11 Regulatory framework for oil and gas exploration and production, 2021  
 Transfer of right s regime  Production -sharing regime  
Legislation  Law No.  12,276, 30 June 2010 Law No.  12,351, 23 December 2010; 
Law No. 12,304 , 2 August  2010; and 
Law No. 13,356 , November 2016  
Coverage  Seven designated "pre -salt" blocks granted in 
September  2010 Blocks located in the "pre -salt" polygona and 
strategic blocks; the CNPE may extend the list 
of blocks covered  
Exclusive rights 
transferability  Not transferable  Transferable upon MME authorization  
Petrobras  
participation in 
E&P contracts  Holds exclusive rights for exploration and 
production, initially up to a total of 5  billion 
barrels of oil equivalent; once the 5  billion  
barrels limit is reached, blocks will be granted 
under the production -sharing regime  Operatorship by Petrobras is no lo nger 
required as well as minimum 30% interest for 
new pre -salt acreage  
Federal 
Government 
participation in 
E&P contracts  Not possible  Possible through specific fund created by law; 
may participate in investments. PPSA 
represents the Government's interests  in the 
Operational Committee as the PSC manager  
 
review/bp -stats-review -2021-full-report.pdf ; and U.S. Energy Information Admi nistration, Brazil . Viewed at:  
https://www.eia.gov/international/analysis/country/BRA .  
101 The Federal Government's participation in its voting capital must be at least 50% plus one shar e 
(Law No.  9,478, 6  August  1997, Article  62). More information available at : 
https://www.investidorpetrobras.com.br/en/overview/fact -sheet/ .  
102 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
103 International Trade Administration, Brazil Country Commercial Guide: Energy . Viewed at: 
https://www.trade.gov/country -commercial -guides/brazil -energy .  
104 Economist Intelligence Unit (2022), Energy: Brazil , 19 May. Viewed at: 
https://viewpoint.eiu.com/analysis/geography/XC/BR/reports/energy .  
105 U.S. Energy Information Administration (2021), "Brazil Was the Only South American Country to 
Increase Cru de Oil Production in 2020", 6  December . Viewed at: 
https://www.eia.gov/todayinenergy/detail.php?id=50538 .  
106 In 2010, Brazil discontinued the exclusive use of the concession regime for t he exploration and 
production of oil and natural gas, originally regulated by Law No.  9,478, 6 August  1997. From 2010 onward, 
Brazil started having two new regimes: onerous transfer and production sharing . The law that regulated this 
change was Law No. 12,351, 22 December  2010.  More information on the institutional and procedural aspects 
of the current regime is available in WTO document WT/TPR/S/283/Rev.1, 26  July 2013.  
107 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  WT/TPR/S/ 432 • Brazil  
 
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   Transfer of right s regime  Production -sharing regime  
Private sector 
participation in 
E&P contracts  Not possible  Winning bidders in E&P auctions can have up 
to 100% participation in the consortium's 
share  
Local content  Exploration phase: an overall minimum of 
37%, with item -specific minimums between 
5% and 85%; development phase: an overall 
minimum of 55% to 65% (depending on the 
year production began), with item -specific 
minimums between 29% and 100%  Thresholds to be defined  
Government 
revenue from  
E&P contracts  Signing bonus of BRL 74.8 billion; royalties for 
production of hydrocarbons (10% of gross 
revenues)  Signing bonus; royalties (15% of gross 
revenues)  
a The geographical coordinates of the "pre -salt polygon" are defined in the Annex  to Law No . 12,351. 
Source:  Information provided  by the authorities.  
4.77.   The production -sharing regime is aimed at lowering the exploration risk, maximizing the 
government take from oil production, and achieving a more equal distribution of its proceeds among 
Brazilians ; revenue from production -sharing contracts is to finance education, poverty reduction, 
and environmental initiatives.108 To preserve national interests or achieve other energy policy goals, 
the production -sharing regime includes the possibility of direct c ontracts (i.e. without bidding 
procedures) with Petrobras ; nevertheless, there have been no such cases so far. The selection of 
winning bids is based on the portion of crude oil output ( excedente em óleo ) to be shared between 
the Government and the contrac tor, after deducting a percentage of the total production volume to 
cover royalties and costs incurred by the latter. Stiff local content rules and the requirement that 
Petrobras  must have a minimum 30% stake in pre -salt fields seem to have caused development 
delays. As of November 2016, the requirement that Petrobras  must be the sole operator and hold a 
minimum 30% stake in the country's massive offshore pre -salt oil reserves has  been eliminated.109 
Since 2017, Brazil has held eight auctions of pre -salt blocks, attracting significant foreign 
investments.  
4.78.   The National Council on Energy Policy (CNPE) has removed local  content requirements as a 
bid evaluation parameter in auctions, ac cording to the offer made, between a minimum and a 
maximum value. Instead, it has specified predefined and lower percentages from an average 79.5% 
in the 13th bidding round in 2015, to 18% and 40% for subsequent rounds.110 Concessionaries that 
fail to meet their local  content commitments are subject to fines, which vary according to the 
shortfall.111 Between 2017 and 2021, the ANP levied 127 fines totalling BRL 1.40 billion, of 
which  94% ( BRL 1.32 billion ), were applied only to Petrobras . 
4.79.   By the end of 2021, 897 fields were under E&P contracts, of which: 248 were blocks in the 
exploration phase; 38 fields in the production development phase; 33 fields in the production phase; 
and 66 fields in the process of being returned to the ANP .112 Petrobras  had participation in 65 blocks 
at the exploration phase, of which 26 were exclusive concessions to this company, and another  39 in 
partnership with other firms. In total, Petrobras  operates 94% of oil and gas production in Brazil  and 
it has rights of 71 .9%. Additionally, 67 local and 48 foreign companies hold oil rights to exploration 
and appraisal areas in Brazil .113 Petrobras  had the operation of 65 blocks, Shell 18 blocks, Exxon 
17 blocks, Eneva 17  blocks , and other operators  129 blocks.114 With respect to 38 fields in 
 
108 Law No.  12,351/2010.  
109 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
110 International Trade Administration, Energy Resource Guide: Brazil – Oil & Gas . Viewed at: 
https://www.trade.gov/energy -resource -guide -brazil -oil-and-gas  
111 These commitments add an administrative burden involving a tangle of obligations requiring 
concessionaries to hir e certification companies in order to prove compliance and to submit periodic 
expenditure 's reports to ANP; furthermore, there is still a lack of regulatory provisions on waiver requests by 
non-compliant concessionaries to be analysed and judged, that can led to additional fines for the period.  
112 ANP (2021),  Brazilian Oil, Gas, and Biofuels Statistics Yearbook 2021 , p. 53. Viewed at: 
https://www.gov.br/anp/pt -br/centrais -de-conteudo/publicacoes/anuario -estatistico/arquivos -anuario -
estatistico -2021/anuario -2021.pdf . 
113 International Trade Administration, Energy Resource Guide: Brazil – Oil & Gas . Viewed at: 
https://www.trade.gov/energy -resource -guide -brazil -oil-and-gas. 
114 ANP (2021), Brazilian Oil, Gas, and Biofuels Statistics Yearbook 2021 , p. 53. Viewed 
at: https://www.gov.br/anp/pt -br/centrais -de-conteudo/publicacoes/anuario -estatistico/arquivos -anuario -
estatistic o-2021/anuario -2021.pdf ; and ANP (2021), Relatório Anual de Exploração 2020 , p. 27. Viewed WT/TPR/S/ 432 • Brazil  
 
- 128 - 
 
  develop ment, Petrobras  was the sole contractor for 3 fields, and a joint operator in another 9 fields. 
With respect to the 335  fields in production, Petrobras  was the sole contractor for 124, and a joint 
operator in  another 12  fields. Government revenue from E&P activities continues to be collected 
through signature bonuses and royalties applicable to concession agreements and production share 
contracts, as well as special participation and area retention taxes appli cable to concession 
agreements only. According to the authorities, between 2017 and December 2020, annual revenue 
from E&P activities accounted for BRL 275.1  billion  (from BRL 18 billion  in 2016); royalties 
contributed to 31% and special participation 37% of the total revenue , which was channelled to the 
Federal Government (42%), states and municipalities (58%), and health and education (0.11%).  
4.80.   During the review period, Brazil approved initiatives to build confidence with investors and 
increase predictabil ity. These included Law No. 13,586/2017, as regulated by the Normative 
Instruction RFB No. 1,781/2017, extending REPETRO SPED , which exempts goods exports and 
imports of certain taxes until 2040.  A special tax regime was established allowing certain 
invest ments to be tax deducted, aimed at fostering investments on new and existing oil fields. 
Furthermore, concessions of older , mature fields have been extended to improve recovery rates and 
to stimulate further investments.115 
4.2.2.3.1.3   Downstream  
4.81.   Brazil was the eighth -largest producer and the seventh -largest consumer of crude oil, all other 
petroleum liquids , and biofuels consumer in the wor ld in 2019, consuming 3.14  million  
barrels/day  (b/d).116 Gross domestic consumption of petroleum products dec reased by an estimated 
5.0% year -on-year in 2021, to 99.2  mtoe, primarily used for transport and industrial activities.117 
Brazil is a n et 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 , 
Argentina, 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 .121 
4.82.   Brazil's import tariff for hydrocarbons remains set at zero.  
4.83.   Since 2002, all fuel and oil prod uct prices must be set freely (e.g. without government 
approval) by the market. Fuel prices track international oil prices and were increased in 2021 .122 The 
gasoline sold at gas stations is composed of a blend of 73% of gasoline and 27% of ethanol. 
Petrobr as accounts for 3 8.8% of the price sold to consumers ; 24.1% for state -level tax ICMS ; 9.5% 
for federal -level taxes of Contribution for Intervention in the Economic Domain (CIDE), PIS/PASEP , 
and COFINS ; 13.2% for the value of ethanol, and the remaining 14 .3% the retail and distribution 
profits. For diesel, Petrobras ' share of the price sold to consumers corresponds to 6 3.2% of the price, 
followed by 1 1.7% of ICMS, federal taxes including PIS and COFINS combined account for 0%, 
10.4% of biodiesel,  and the rem aining 14 .7% the retail and distribution profits . In 2022, a minimum 
blend of 10% of biodiesel is required, according to National Energy Policy Council (CNPE) 
 
at: https://www.gov.br/anp/pt -br/assuntos/exploracao -e-producao -de-oleo-e-gas/gestao -de-contratos -de-e-
p/fase -de-exploracao/copy_of_raexp2020.pdf . 
115 WTO document WT/TPR/S/358/Rev.1, 18  October  2017; and International Trade Administration, 
Energy Resource Guide: Brazil – Oil & Gas . Viewed at: https://www.trade.gov/energy -resource -guide -brazil -
oil-and-gas. 
116 International Trade A dministration, FAQs. Viewed at: 
https://www.eia.gov/tools/faqs/faq.php?id=709&t=6 . 
117 EPE (2021), Brazilian Energy Balance, Year 2020 . Viewed at : https://www.epe.gov.br/sites -
pt/publicacoes -dados -abertos/publicacoes/PublicacoesArquivos/publicacao -601/topico -596/BEN2021.pdf . 
118 EIU (2022), Industry Repor t – Energy – Brazil , 17 February.  
119 Ministry of Mines and Energy, Statistical Data . Viewed at: https://www.gov.br/anp/pt -br/centrais -de-
conteudo/dados -estatisticos . 
120 Ministry of Mines and Energy, Dynamic Panels on Fuels . Viewed at:  https://www.gov.br/anp/pt -
br/centrais -de-conteudo/paineis -dinamicos -da-anp/paineis -dinamicos -sobre -combustiveis . 
121 International Trade Administration, Energy Resou rce Guide: Brazil – Oil & Gas . Viewed at: 
https://www.trade.gov/energy -resource -guide -brazil -oil-and-gas. 
122 EIU (2022), Industry Report – Energy – Brazil , 17 February . WT/TPR/S/ 432 • Brazil  
 
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  Resolution  No. 25/2021. This share should reach 15% in 2023, according to  CNPE 
Resolution  No. 16/2018. Distributors and resellers account for 14% of the amount paid.  
4.2.2.3.2   Gas 
4.84.   Brazil's proven natural gas reserves reached 338  billion  m3.123 Natural gas extraction 
increased from 38  billion  m3 (2016) to 44.72  billion  m3 (2019)124; Petrobras  accounted for 75% of 
the output in 2020 (93.9% in 2016) whereas foreign firms  – including Shell, Repsol -Sinopec 
(Spain -China), Petrogal (Portugal) , and Equinor (Norway) – increased their  shares. 125 Natural gas 
demand stood at 86  million  m3/day.126 In 2020, domestic gas production accounted for  58%, while 
imports from the Plurinational State of Bolivia represented 23%, followed by  liquefied natural 
gas (LNG)  imports (20%).127 Reportedly, Brazil's natural  gas imports fell by 20.1% year -on-year 
to 7.9 billion  m3 in 2020, followed by an increase in 2021 to fuel gas -fired power generation. 128 Most 
of natural gas in Brazil is imported via the pipeline from the Plurinational State of Bolivia. A pipeline 
from Argentina was used as well. In 2020, Brazil sourc ed around 17% of imported LNG from 
the United  States , Trinidad and Tobago, Argentina, Angola, and  Nigeria. These are mostly imported 
via three Petrobras  terminals, in the states of Bahia, Ceará , and Rio  de Janeiro.129 Currently, 
five LNG terminals were in o peration, of which three are owned by Petrobras . Another three were in 
the development stage , while a few others are planned for the coming years.130 Brazil continued to 
host 9,409 km of gas transmission pipelines, and a 38,620 km distribution network.  
4.85.   A newly adopted Gas Law (Law No. 14,134/2021) has been a significant step towards an open 
and competitive market, enabling a robust regulatory agenda to build the new natural gas market, 
and opening new investment opportunities in Brazil.  
4.2.2.3.3   Biofuels  
4.86.   At the end of 2017, Brazil instituted the National Biofuels Policy (RenovaBio)131, with the 
objective to contribute to the decarbonization of the Brazilian transport matrix in line with the COP21 
commitments. To achieve this, the programme takes into account the r elationship between energy 
efficiency and the reduction of greenhouse gas emissions, and it draws  on three main instruments: 
(i) annual carbon intensity reduction targets (CO 2/MJ) for a minimum period of 10 years; 
(ii) certification of biofuels by efficiency in reducing GHG emissions; and (iii) decarbonization 
Credits  (CBio). From these instruments, the environmental costs of using fossil fuels are converted 
into income for biofuel producers, offering efficie ncy incentives for their sustainable growth. In 2021, 
it avoided the emission of 24.4  million  tonnes of GHG due to the commercialization 
of 24.4 million  CBios by distributors of fossil fuel, which met about 98% of the 2021 target.132 
4.2.2.3.3.1   Ethanol  
4.87.   During the revi ew period, Brazil retained its position as the world's second -largest producer 
and exporter of ethanol in the world after the United  States133, although production decreased 
 
123 International Trade Administration, Energy Resource Guide: Brazil – Oil & Gas . Viewed at: 
https://www.trade.gov/energy -resource -guide -brazil -oil-and-gas. 
124 International Trade A dministration, Brazil  Country Commercial Guide: Energy . Viewed at: 
https://www.trade.gov/country -commercial -guides/brazil -energy . 
125 EIU (2022), Industry Report – Energy – Brazil , 17 February.  
126 ANP (2021), The O&G Industry in Brazil . Viewed at: https://www.gov.br/anp/pt -br/centrais -de-
conteudo/apresentacoes -e-palestras/2021/arquivos/PPT_DG_Evento_EmbaixadadoBrasilnoJapao.pdf . 
127 International Trade Administration, Energy Resource Guide: Brazil – Oil & Gas . Viewed at: 
https://www.trade.gov/energy -resource -guide -brazil -oil-and-gas. 
128 EIU (2022), Industry Report – Energy – Brazil , 17 February.  
129 EIU (2022), Industry Report – Energy – Brazil , 17 February.  
130 International Trade Administration, Energy Resource Guide: Brazil – Oil & Gas . Viewed at: 
https://www.trade.gov/energy -resource -guide -brazil -oil-and-gas. 
131 Law No. 13,576/2017 ; and Ministry of Mines and Energy, RenovaBio . Viewed at: 
https://www.gov.br/anp/pt -br/assuntos/renovabio . 
132 USDA Foreign Agricultural Service, Brazil Biofuels Annual - Annual Report 2021 , Global Agricultural 
Network Report Number BR2021 -0030, 30  August. Viewed at: 
https://ap ps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Biofuels%20Annual_
Sao%20Paulo%20ATO_Brazil_08 -02-2021.pdf . 
133 U.S. Energy Information Administration, Brazil . Viewed at: 
https://www.eia.gov/international/analysis/country/BRA . WT/TPR/S/ 432 • Brazil  
 
- 130 - 
 
  in 2021 by 8.6% year -on-year to 188.5  million  barrels due to droughts affecting the  sugarcane 
harvest.134 The average annual growth rate of the ethanol production for the period 2011 -20 
was 3.7%. In 2020, the state of São Paulo accounted  for 44.8% of the national production, and had 
its relative share decreased by 11.9%, comparison with 2 019.135 The national production of 
anhydrous ethanol was 10.3  million  m3 in 2020, 1.5% lower compared to 2019. The average annual 
growth rate of anhydrous ethanol production for the period 2011 -20 was 1.7%. The production of 
hydrous ethanol decreased by 9.5 %, totalling 22.6  million  m3, 68.8% of national ethanol production. 
The average growth rate in the period 2011 -20 was 4.7%.136 The ethanol fuel industry remained 
dependent on sugar output, support , and international oil pricing developments.  
4.88.   In March 2022, Brazil reduced its import tariff on ethanol (HS 2207) from 18% to  zero 
until 31 December 2022.137 The tariff  rate quota (TRQ) for ethanol expired on 14  December  2020.138 
4.89.   During the review period, the mandatory ethanol blend ratio stood fixed at 27% (E27). Et hanol 
prices are not controlled, and fluctuations in relative prices lead to changes in consumption patterns; 
as sugarcane represents 60% -70% of the cost of producing ethanol, high sugarcane production 
costs and therefore ethanol (E100) prices act as a dis incentive for the use of ethanol  (E100) at petrol 
stations. The Contribution for Intervention in Economic Domain (CIDE) and PIS/COFINS taxes are 
zeroed until December of  2022 for gasoline, anhydrous ethanol , and E100 (hydrous ethanol). 
According to the authorities, there is no preferential tax treatment for ethanol compared to gasoline 
under both the CIDE and PIS/COFINS; h owever, four producer states (São  Paulo, Goiás, 
Mato Grosso , and Minas Gerais) provide differential treatment for ethanol by using different rates of 
state taxes for circulation of goods and services (ICMS) on ethanol (12% -14%) in comparison to 
gasoline (1 7%-18%). The remaining 23 states have the same ICMS for ethanol  (E100) and 
gasoline  (17% -20%).  
4.90.   During the review period, in addition to mandatory fuel blending, other support measures for 
the production and consumption of ethanol involving cross -subsidizat ion, 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.139 
4.91.   BNDES has changed the specific administered interest rate credit lines for investments on 
sugarcane production, expansion of industrial capacity for sugar and ethanol, sugarcane biomass 
technology, c ogeneration, logistics, and multimodal transportation to a specific credit line with 
interest discount rates attached to improvements in RenovaCalc scores for RenovaBio certified units. 
The Brazilian Agricultural Crop and Livestock Plan for 2021/22 gives g reater emphasis on support 
for the Sector al Plan for Mitigation and Adaptation to Climate Change s for the Consolidation of a 
Low-Carbon Emission Economy in Agriculture  (Plan ABC) on sustainable agricultural practices. The 
 
134 EIU (2022), Industry Report – Energy – Brazil , 17 February. Corn-based ethanol production , 
however,  has been sharply increasing.  
135 ANP (2021), Brazilian Oil, Gas, and Biofuels Statistics Year book 2021 , pp. 178. Viewed at: 
https://www.gov.br/anp/pt -br/centrais -de-conteudo/publicacoes/anuario -estati stico/arquivos -anuario -
estatistico -2021/anuario -2021.pdf . 
136 ANP (2021), Brazilian Oil, Gas, and Biofuels Statistics Yearbook 2021 , pp. 180 -182. Viewed at: 
https://www.gov.br/anp/pt -br/centrais -de-conteudo/publicacoes/anuario -estatistico/arquivos -anuario -
estatistico -2021/anuario -2021.pdf . 
137 Ministry of Economy/Chamber of Foreign Trade (CAMEX) Ordinary Meeting 192, 21  March  2022. 
Viewed at: https://www.gov.br/economia/pt -br/assuntos/noticias/2022/marco/camex -reduz -a-zero-imposto -
de-importacao -de-sete-itens-da-cesta-de-consumo -da-populacao . 
138 USDA Foreign Agricultural Service, Brazil Biofuels Annual - Annual Report 2021 , Global Ag ricultural 
Network Report Number BR2021 -0030, 30  August. Viewed at: 
https://apps.fas.usda.gov/newgai napi/api/Report/DownloadReportByFileName?fileName=Biofuels%20Annual_
Sao%20Paulo%20ATO_Brazil_08 -02-2021.pdf . 
139 USDA Foreign Agricultural Service, Brazil Biofuels Annual - Annual Report 2021 , Global Agricultural 
Network Report Number BR2021 -0030, 30  August.  Viewed at: 
https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Biofue ls%20Annual_
Sao%20Paulo%20ATO_Brazil_08 -02-2021.pdf . WT/TPR/S/ 432 • Brazil  
 
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  Plan ABC credit line is set at BRL 5.05 billion  with a 5.5 %-7% interest rate.140 The total financing for 
the industry was BRL 1.39 billion  (BRL 2.74 billion  in 2015).  
4.92.   In 2019, Brazil's ethanol exports averaged approximately 33,000 barrels/day.141 The 
United  States was the main destination fo r Brazil's ethanol exports (13,000 barrels/day), mainly 
through California because of the fuel's favourable treatment compared with domestic corn ethanol 
under California's Low Carbon Fuel Standard (LCFS), as Brazil's sugarcane ethanol emits less carbon 
dioxide than corn -based ethanol.142 
4.93.   Despite being a major ethanol producer, between sugarcane harvest seasons Brazil imported 
more than 22,000 b/d of ethanol from the United  States  in 2019.143 According to the authorities, 
in 2021 Brazil imported more than  5,000 barrels/day of ethanol from the  United  States.144 
4.2.2.3.3.2   Biodiesel  
4.94.   During  the review period, Brazil's biodiesel output grew steadily to 6.76 million  m3 (2021) , 
compared to a rise from 2.7  million  m3 (2012) to 3.9  million  m3 (2015), inter alia, supported by the 
increase of the biodiesel use mandate (see below). Brazil is the world's third -largest producer of 
biodiesel after the United  States  and Indonesia. As of 2021, Brazil had 55 plants authorized to 
produce biodiesel and their capacity represe nted 35,679 million  m3/day.145 
4.95.   The customs tariff on biodiesel (HS 3826) is 12.6%.146 However, external trade of biodiesel is 
very low: imports reached USD  119,605 in 2021, USD  23,292 in 2020, and USD  15,751 in 2019 , 
while biodiesel exports reached USD  9 million  in 2021, USD  3 million  in 2020, and USD  565,661 
in 2019.  
4.96.   The 2004 National Biodiesel Production Programme (PNPB) remains in place. Its aim is to 
promote domestic biodiesel production, reduce petroleum import d ependency, lower pollutant 
emissions and health -related costs, generate jobs and income, and alleviate regional economic 
disparities by passing on benefits to family farmers. It is implemented through blending 
requirements. Public auctions were carried out  by the Brazilian Regulatory Agency 
until 31 December  2021. On 1  January  2022, a new biodiesel commercialization model was 
implemented , replacing the public auctions for direct negotiations among buyers and biodiesel 
producers, as defined by CNPE Resolutio n No. 14/2020, where 80% of the biodiesel market is 
reserved to sugarcane plants that have the Social Fuels Seal.147 
4.97.   The mandatory blending ratio of biodiesel added to the oil diesel has increased to 12% as 
of March 2020, in volume, according to Law No. 13,263/2016. Throughout 2020, the percentage of 
mixture varied from 10% to 11%. In 2021, this mandatory blending ratio varied between 10% 
 
140 USDA Foreign Agricultural Service, Brazil Biofuels Annual - Annual Report 2021 , Global Agricultural 
Network Report Number BR2021 -0030, 30  August. Viewed at: 
https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Biofuels%20Annual_
Sao%20Paulo%20ATO_Brazil_08 -02-2021.pdf . 
141 ANP (2020) , Oil, Natural Gas, and Biofuels Statistical Yearbook 2020 , Table  4.5 (October 2020). 
Viewed at: https://www.gov.br/anp/pt -br/centrais -de-conteudo/publicacoes/anuario -estatistico/anuario -
estatistico -2020. 
142 U.S. Energy Information A dministration, Brazil . Viewed at: 
https://www.eia.gov/international/analysis/country/BRA . 
143 U.S. Energy Information Administration, Brazil . Viewed at: 
https://www.eia.gov/international/analysis/country/BRA . 
144 According to the authorities, from September 2019 to August 2020, there was a quota that allowed 
imports of up to 750  million  litres/per year. From August 2020, this quota was no longer in place and the 
import tariff of 20% comes back into effect, being in force until the recent decision by CAMEX to zero the 
import tariff in March 2022 (until the end of the year). Furthermore, due to the increase in fuel pri ces in  2021, 
Brazilian plants (hybrid for sugar or ethanol production) started to produce more ethanol, thus reducing the 
need to imports.  
145 Ministry of Mines and Energy  and ANP  (2021), Anuário estatístico brasileiro do petróleo, gás natural e 
biocombustív eis - 2021. Viewed at: https://www.gov.br/anp/pt -br/centrais -de-conteudo/publicacoes/anuario -
estatistico/ar quivos -anuario -estatistico -2021/anuario -2021.pdf . 
146 GECEX Resolution No.  272/2021, Annex  II. 
147 Viewed at: https://www.in.gov.br/en/web/dou/ -/despacho -do-presid ente-da-republica -296859038 ; 
and CNPE Resolution No.  14/2020.  WT/TPR/S/ 432 • Brazil  
 
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  and 13%, depending on the auction, as a way to alleviate the impacts of biodiesel high cost on the 
diesel  prices.148 
4.98.   Biodiesel benefits from subsidization through federal tax exemptions and incentives 
for PIS/PASEP and COFINS taxes depending on the nature of the raw material, size of producer , and 
region of production, in order to encourage the production of biodiesel and to promote social 
inclusion, as well as ICMS benefits at the state  level. This scheme also requires a Social Fuel Seal 
Certificate.149 The prices have remained high, over BRL 6/litre since the middle of 2021.  
4.2.2.4   Electricity  
4.2.2.4.1   Main features  
4.99.   During the review period,  Brazil's installed capacity and power generation continued to grow 
at a fast pace. In 2021,  Brazil had 190.2 GW of installed capacity for electricity generation (140.9  GW 
in 2015), generated 653 TWh of electricity, imported 23 TWh, and consumed 570 TWh. H ydroelectric 
sources accounted for 57.5% of installed capacity (65.1% in 2015), followed by wind and 
solar (17.7%), fossil fuel -fired (15.5%), biomass (8.3%), and nuclear (1%) sources.150 
Brazil's  shares of renewables in the 2021 installed capacity of elect ricity was 84%, much above the  
shares of the  world (38%) and OECD countries (40%). Electricity produced by the Itaipu plant and 
imported from Paraguay continues to account for most of Brazil's imports.151 In 2021,  Brazil imported 
17.2 TWh from Paraguay,  3.77 TWh from Argentina , and 2.18 TWh from Uruguay, and 
exported  0.04 TWh to Argentina. In 2021, the main power consumption groups consist of 
manufacturing  (38.5%), residential consumers (26.6%) , service activities (23.4%), 
agriculture  (5.8%) , and the energy sector (5.4%).  In 2020, Brazil imported USD  1,453.9  million  
from Paraguay and USD  34,628 million from Argentina, and exported USD  1,950 million  to 
Argentina.152 New hydro projects were delivered, most notably, the Belo Monte plant in the Amazon  
Basin, in full operation since 2019, and the fourth -largest hydroelectric plant by capacity in the 
world. Other major hydro projects are being developed, such as the 400  megawatt (MW) Tabajara 
hydropower project, the 650  MW Bem Querer hydropower project, and smaller hydro projects with 
500 MW or less.153 
4.100.   Solar energy in Brazil increased 70% from 2020 to 2021, reaching 13 GW154 in installed 
capacity.155 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.156 
4.101.   Brazil currently has two nuclear reactors ( Angra -1 and Angra -2) with a combined capacity 
of 1,884 MW, and they supplied 14.1  billion  kilowatt -hours (kWh) of electricity in 2020. The 
 
148 Ministry of Mines and Energy  and ANP (2021), Anuário estatístico brasileiro do petróleo, gás natural e 
biocombustíveis - 2021. Viewed at: https://www.gov.br/anp/pt -br/centrais -de-conteudo/publicacoes/anuario -
estatistico/arquivos -anuario -estatistic o-2021/anuario -2021.pdf . 
149 Law No. 12,546/2011 and L aw No. 12,865/2013.  Ministry of Agriculture, Livestock and Food Supply, 
Social Biofuel Seal . Viewed at: https://www.gov.br/agricultura/pt -br/assuntos/agricultura -
familiar/biodiesel/selo -biocombustivel -social . 
150 Ministry of Mines and Energy,  Installed Capacity  data: Boletim de Monitoramento do 
Sistema  Elétrico . 
151 Itaipu is jointly administered by Brazil and Paraguay; each country has rights on half of its 
14-GW capacity. The treaty between both countries is set to expire in 2023. Currently, Paraguay uses less than 
20% of its entitlements, selling the remaining to Brazil. In May 2019, the agreement reached by both countries 
for a new power -sharing deal was cancelled due to public outcry in Paraguay, and the final costs to Brazil 
remain unclear.  Ministry of Mines and Energy 2021 data: Boletim Mensal de Energia and En ergy Information 
System of Brazil (SIE Brasil).  
152 Data for imports available  at: http://comexstat.mdic.gov.br/en/geral/56468 . For exports: 
http://comexstat.mdic.gov.br/en/geral/56467 . 
153 Viewed at: https://www.eia.gov/international/analysi s/country/BRA/background#electricity . 
154 These values i ncludes Distributed Generation in total . 
155 Viewed at: https://www.gov.br/mme/pt -br/assuntos/secretarias/energia -
eletrica/publicacoes/boletim -de-monitoramento -do-sistema -eletrico . 
156 International Trade Administration, Brazil Country Commercial Guide: Energy . Viewed at: 
https://www.trade.gov/country -commercial -guides/brazil -energy . WT/TPR/S/ 432 • Brazil  
 
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  third nuclear reactor ( Angra -3) is expected to be completed between 2026 and 2027 with a 
generating capacity of 1,340 MW.157 
4.102.   Eletrobras  continued to play a major role in the electricity sector. In Ju ly 2021, 
Law No. 14,182/2021 allowed the privatization of Eletrobras  through capitalization (issuance of new 
shares). In September 2021, a state -owned holding company was established to take over those 
operations that have been excluded from the Eletrobras  privatization plan, i.e.  Eletronuclear (nuclear  
power subsidiary) and the 50% participation Itaipu hydropower project. The capitalization was 
pending valuation studies coordinated by the BNDES, which needed to be approved by the 
Investment Partnership Pro gram Council (CPPI) and the Federal Audit Court (TCU). According to 
media sources, the privatization occurred on 14  June 2022. In the third quarter of 2021, the 
company accounted for  30.1%  of Brazil's installed generation capacity, as well as 44% of its 
transmission lines compared to 31% and 48.9%  in 2017, respectively. As of 2021, there were 
156 companies responsible for transmission networks and 102  distribution companies (64 in 2017), 
including state - and privately  owned enterprises, such as internationa l companies 
Spanish  Ibedrola  and Italian ENEL.  The annual investment for distribution is around USD  2.2 billion  
per year, 69% of which is in expansion, 19% in improvement , and 12% in  renewal of distribution 
networks. Whereas total investments in the power transmission sector until 2029 are projected to 
reach USD  22 billion , representing USD  15 billion in transmission lines and USD  7 billion in 
substations.158 
4.2.2.4.2   Policy and inst itutions  
4.103.   Brazil's Ten -year Energy Expansion Plan 2030 (PDE 2030)159 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 transmission of electric energy ove r the 
next 10 years.  
4.104.   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 P aris 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.  
4.105.   The electricity sector's institutional framework remained unchanged and comprised the MME 
and the CNPE, the main decision -making  bodies; the regulatory agency (ANEEL); the new National 
Power System Operator (ONS), which coordinate s and control s the National Integrated Grid (SIN); 
the Energy Research Enterprise (EPE), conducting informative studies for energy policy -making; the 
Electric Energy Commercialization Chamber (CCEE), a non -profit private entity managing electricity 
trading; and the Electricity Industry Monitoring Committee (CMSE), which monitors the continuity 
and safety of electricity supply.160 
4.2.2.4.3   Regulatory and operational a spects  
4.106.   During the review period, the main regulatory framework of the electricity sector was 
gradually modernized. Law No.  12,783 of 11  January  2013, which governs electricity generation, 
transmission, and distribution concessions, was amended by Law No.  13,203 of 8  December  2015, 
which provides for the renegotiation of the hydrological risk of electricity generation and establishes 
the bonus for the granting of a concession. Two bills are passing through Congress (PL 1917,  2015 
and PL 414, 2021) setting th e basis for updating the legal framework of the sector, after a public 
 
157 Viewed at: https://www.eia.gov/todayinenergy/detail.php?id=49436 . 
158 International Trade Administration, Brazil  Country Commercial Guide: Energy . Viewed at: 
https://www.trade.gov/country -commercial -guides/brazil -energy . 
159 Viewed at: https://www.epe.gov.br/sites -pt/publicacoes -dados -
abertos/publicacoes/PublicacoesArquivos/publicacao -490/PDE%202030_R evisaoPosCP_rv2.pdf . 
160 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  WT/TPR/S/ 432 • Brazil  
 
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  consultation promoted by the MME in 2017. The main goal is to promote further opening of the 
market while guaranteeing centralized capacity procurement, fostering improvements in the 
spot price formation mechanisms , and reducing sector al charges paid through tariffs.  
4.107.   Since 2019, the MME has been improving, together with the ANEEL, the EPE, the CCEE , and 
the ONS, the infra -legal and regulatory frameworks through a joint task force 
called  "The Modernization of the Power Sector".  
4.108.   As preliminary results of this joint work, the sector al institutions have already enabled the 
implementation of hourly spot prices (a sector al claim since the 1990s ); the procurement of new 
generation projects to pr ovide for capacity reserves; the reduction of sectoral charges related to the 
construction of new renewable energy projects; and the opening of the market for large consumers 
enabling them to buy electricity from any supplier.  
4.109.   In terms of competencies, ANE EL grants concessions for electricity generation, transmission, 
and distribution through authorizations or public tender procedures; the latter may involve auctions, 
which are organized by ANEEL and carried out by the CCEE. The generation concessions grant ed for 
hydropower may be extended at the discretion of the Government, only once for up to 30 years, in 
order to ensure the continuity and efficiency of the service provided as well as low electricity tariffs. 
According to Law No.  12,783/2013, the extensio n is contingent upon the generator's acceptance of 
certain conditions set by ANEEL, including the remuneration tariffs to be applied, a guaranteed 
supply quota allocation, and quality standards. Quotas are allocated through contracts and they are 
revised p eriodically by ANEEL. Regarding self -generation of hydropower, concessions for up to 
50 MW may be extended once for up to 30 years; generators may sell any non -consumed surplus 
in the spot free market. Those not linked to the National Interconnected Grid ( SIN) are not bound 
by the 50  MW threshold. In the case of thermoelectric power generation, the renewal of concessions 
is allowed for up to 20 years and must be requested by the concessionary at least 24 months prior 
to the expiration of the concession.  
4.110.   Setting up thermoelectric plants with a capacity of more than 5 MW requires ANEEL 
authorization; the same applies to hydroelectric plants with a capacity greater than 15 MW but equal 
to or lower than 50 MW. Hydroelectric projects with capacity greater than 50  MW require 
public -provider concessions in order to trade part of their electricity via auctions. Authorizations for 
building and operating new thermoelectric generators and certain hydropower plants are granted 
for 30 years, non -renewable. A renewable per iod of 35 years is envisaged for new hydroelectric 
generators. Concessions for building hydropower plants with a capacity greater than 50 MW are 
granted for 35 years, non -renewable. Legislation in this area included the possibility of undertaking 
existing hydropower plants auctions as a means of collecting a bonus for the concession (a payment 
for the concession right).  
4.111.   Brazil's electricity market remains organized around two trading environments: the 
Regulated Contracting Environment (ACR) and the Free Con tracting Environment (ACL). In the ACR, 
distribution companies hold the exclusive right to supply electricity to captive consumers. These 
companies are not allowed to operate in the ACL, where large consumers (above 2 MW/year in  2020, 
1.5 MW/year in 2021, 1 MW/year in 2022 , and 0.5 MW/year from January 2023 onwards)  may 
purchase energy from generating or trading companies through freely negotiated bilateral contracts. 
Generating companies may sell electricity in both environments.161 In 2021, the size of the  
ACL market had 9,930162 (6,000 in 2016 and 1,427 in 2012) entities registered as free and special 
consumers at the CCEE, and estimated to account for 34.4%163 (25% in 2016 and 27.2% in 2012) 
of domestic electricity consumption.  
4.112.   Energy auctions organized by the MME are the main procurement mechanism for distribution 
companies to acquire energy from generating companies. Under auction rules, all distribution 
companies buy energy at the same price.164 Between 2017 and 2021, 13 energy purchase auctions 
 
161 Decree No.  5,163, 30 July 2004.  
162 Viewed at: https://www.ccee.org.br/web/guest/dados -e-analis es/dados -mercado -mensal . 
163 Viewed at: https://publi c.tableau.com/app/profile/ccee.informa.es.ao.mercado . 
164 The price is set by auction. Generators must offer quotas of energy to be sold at decreasing prices 
until the sum of the quotas equals total demand by the distributors. At this point, an average price for all 
quotas offered is calculated; this price is th e single price to be paid by all distribution companies in their 
purchases of quotas.  WT/TPR/S/ 432 • Brazil  
 
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  for new po wer plants were conducted. In 2021, 8,300  MW of new capacity was contracted 
by distribution companies, with contracts ranging from 15 to 30  years. Imports and exports of 
electricity may only take place through the national grid (SIN) and require ANEEL authorization; 
they may take place under free contracts or in the regulated market. Authorizations are 
non-automatic and are granted through the integrated foreign trade system S iscomex . ANEEL 
approved the final result of the New Energy Auction A -5 from Se ptember 2021, whose investments 
attracted up to BRL 3.067  billion, enabling the operation of 40 plants with a combined capacity 
of 860,796  MW. The supply of electricity from this auction is scheduled for January  2026. The a uction 
included electricity from new generation projects, including hydropower, wind , and solar photovoltaic 
sources, as well as biomass, natural gas, mineral coal , and urban solid waste treatment plants. In 
total, 1,510 lots were traded and reaching 25,145,452.80 MWh at an average sellin g price of 
BRL 238.37 per MWh. The contracts total BRL 5.9 billion . Distributors were already interested in 
acquiring the energy offered by the participating plants. The supply will be for a period of up to 
25 years. In December 2021, the MME defined the a uction schedules for contracting generation and 
concession for electricity transmission over the triennium  2022-24. The two transmission auctions 
scheduled for 2022 indicate investment opportunities in lots that add up to around BRL 11 billion  in 
both even ts.165 
4.113.   Average electricity supply tariffs increased by 14.99% in 2018 and then rose progressively 
by 1.67% (2019), 3.25% (2020), and 8.23% (2021) to BRL 602.73 per MWh  excluding taxes; these 
developments were broadly in line with the average inflation rate of 16.6% (IGPM) and 7.0% (IPCA) 
in the period 2017 -21. These tariff developments, inter alia , were due to application of contractual 
rules for tariff adjustment and review, generation costs , and increase in sector charges (in particular, 
subsidies paid for  in the Energy Development Account  (CDE), rainfall scarcity directly impacting 
hydroelectricity offer , and recourse to generation from thermal plants ).166 
4.114.   The tariffs charged to the final consumers remain regulated by ANEEL and vary depending 
on operational  and other costs incurred by the distribution company. Several changes were 
introduced during the review period. A tariff flag system, which allows the monthly pass -through of 
the extra costs of generating thermal energy to consumers, continued to be appli ed by all 
concessionaires connected to the SIN and to energy distribution concessionaires; the system is 
aimed at preventing energy distributors from experiencing financial problems again.167 Electricity 
tariffs continue to ensure cross -subsidization among different consumer categories; in 2021, 
aquafarming, agricultural irrigation, and manufacturing benefited from lower electricity 
tariffs  (excluding taxes) than those set for services activities. The tax burden on end -user electricity 
tariffs remains signif icant and differs greatly across consumer groups.168 Industries can be credited 
with ICMS according to their production processes.169 The tariff subsidies are funded by the tariff 
 
165 Viewed at: https://epbr.com.br/aneel -homologa -resultado -do-leilao-de-energia -nova-a-5-de-
setembro -de-2021/  and https://www.gov.br/mme/pt -br/assuntos/noticias/ mme-define -cronograma -de-leiloes -
de-energia -e-de-transmissao -para-o-trienio -2022-2013-2024. 
166 EIU (2022), Industry Report – Energy – Brazil , 17 February: "Severe drought afflicted 
Brazil's  hydropower -dependent economy in 2021. To address this, the state authorities permitted 
thermal -power plants to operate for up to six months without power -purchase agreements, the ramping -up of 
natural gas imports, and increasing electricity imports from Argentina and Uruguay".  
167 The system is operated through thre e flags depending on the conditions of electricity generation: 
green flag (favourable generation conditions, no tariff increase); yellow flag (less favourable generation 
conditions, tariff increase by BRL 0.01874 per kWh); and, red flag - tier 1 (more cost ly generation conditions, 
tariff increased by BRL 0.03971 per kWh) and red flag - tier 2 (even more costly generation conditions, tariff 
increase by BRL 0.09492 per kWh consumed). ANEEL. Viewed at: https://www.gov.br/mme/pt -
br/assuntos/noticias/saiba -como -funcionam -as-bandeiras -tarifarias -de-energia -eletrica . 
168 According to the authorities, i t was not possible to identify the impac t of charges because they 
compose the tariff in several tariff components.  
169 There are federal (PIS/COFINS), state (ICMS), local (CIP or COSIP (Contribuição para Custeio do 
Serviço de Iluminação Pública or Contribution for the Cost of Public Lighting) and other taxes/taxes CCC  (Conta 
de Consumo de Combustíveis or Fuel Consumption Account); ECE (Encargo de Capacidade de Emergência or 
Emergency Capacity Charge); RGR (Reserva Global de Reversão or Global Reservation of Reversion); TFSEE 
(Taxa de Fiscalização d e Serviços de Energia Elétrica or Electric Energy Services Supervisory Tax); CDE (Conta 
de Desenvolvimento Energético or Energetic Development Account); ESS (Encargos de Serviços do Sistema); 
P&D (Pesquisa e Desenvolvimento e Eficiência Energética or Resea rch and Development and Energetic 
Efficiency); ONS (Operador Nacional do Sistema or National System Operator); and CFURH (Compensação 
financeira pelo uso de recursos hídrico or Financial Compensation for the Use of Water Resources) included in 
the electric ity bill.  WT/TPR/S/ 432 • Brazil  
 
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  itself based on a transfer quota from the CDE funding. According to the author ities, during the review 
period there were no budget disbursements to fund these subsidies.  
4.115.   During the review period, the CDE, which is a fund regulated by ANEEL and managed by the 
Electric Energy Commercialization Chamber (CCEE) (took over from Eletrobras  in May 2017), 
continued to be used for the promotion of universal access to electricity (see below); the granting 
of electricity tariff discounts to various end -users (e.g. low -income consumers, agricultural 
producers, and irrigation); power generation in  isolated electrical systems (fuel consumption account 
(CCC)); payment of compensation for concessions; the maintenance of a moderate tariff; and the 
promotion of the competitiveness of energy produced from coal , among others.170 The CDE is 
financed through  annual fees paid by all agents commercializing electric energy, fees paid for the 
use of the distribution and transmission systems, the annual payments made by the concessionaires, 
fines paid to ANEEL, and federal government credits. Law  No. 13,360/2016 s ets the objective of 
promoting a better distribution of CDE resources, as well as measures to promote the privatization 
of power distribution companies whose concessions expired and were not renewed but remain 
operated by Eletrobras  because a legislative a mendment provided for the possibility of their 
privatization . Between 2017 and 2021, the CDE funding rose from BRL 16 billion to BRL 23.9 billion, 
of which 43% was channelled to the fuel consumption account and 56%  to support tariff discounts 
to certain en d-users; in 2020 and  2021, 92% and 82% of its funding originated in fees for the use 
of the distribution and transmission systems.  
4.116.   Due to a historically dry period in 2021 in Brazil (the worst rainfall shortage for the 
past 91 years), ANEEL, MME , and CCEE held in December 2021 the first auction for contracting a 
reserve of energy generation capacity. Power availability of 4.6 GW was negotiated, an amount 
equivalent to one third of the generation of the Itaipu Binacional plant. The contracted capacity from 
new and existing thermoelectric plants, with supply starting in 2026 and 2027, may be activated or 
not, as needed. The novelty in the auction consisted of 17 thermoelectric plants that participated 
and contracted directly with energy consumers, through the Federal Government, at an average cost 
of BRL 824,500 per megawatt -hour per year, reflected in savings of more than BRL 10 billion for 
energy consumers according to ANEEL. The contracts will be valid for 15 years.171 
4.117.   No major changes were made to the 2003 L ight for All ( Luz Para Todos ) programme, aimed 
at promoting universal access to electricity, in addition to the subsidized electricity tariffs to 
low-income families, involving invoice discounts ranging from 10% to 100%. Since 2004, the 
programme had broug ht electricity to over 16  million  people in rural areas.172 Originally intended to 
terminate in 2008, the programme was extended until 2022.173 By 2021, an amount of 
BRL 29.96  billion was invested under the programme, of which BRL 21.76  billion  (73%) was financed 
by the Energy Development Account (CDE) and Global Reversion Reserve (RGR).174 
4.3  Manufacturing  
4.3.1   Main features  
4.118.   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 integration into the world economy ; and punctual shields from external 
competition. 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. Manufactur ing's share of total gross 
value  added decreased progressively from  12.6% in  2012 to 11.3% in 2021 (Table  1.2); its share 
in employment also declined slightly from 12.8% in  2012 to 11.3% in 2019. Manufacturing 
accounted for 51.3% of total merchandise expor ts in 2021 (60.7%  in 2012 and 66.2% in 2016), 
mainly meat and meat preparations, iron and steel, sugars and sugar preparations and honey, and 
road vehicles, as compared to  90% of total imports (86.6% in  2012 and 89.2% in 2016) with major 
 
170 Viewed at: https://www.ccee.org.br/mercado/contas -setoriais/conta -de-desenvolvimento -
energetico -cde. 
171 Viewed at: https://agenciabrasil.ebc.com.br/economia/noticia/2021 -12/governo -contrata -46-gw-de-
potencia -em-leilao-de-reserva -de-energia . 
172 Viewed at: https://eletrobras.com/pt/Paginas/Luz -para-Todos.aspx#comites . 
173 Decree No.  9,357, 27  April 2018.  
174 Viewed at: https://eletrobras.com/pt/Paginas/Luz -para-Todos.aspx#comites . WT/TPR/S/ 432 • Brazil  
 
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  categories remaini ng – electrical machinery, parts and pieces, n.e.s. ; fertilizers ; petroleum, 
petroleum products and related materials ; and road vehicles.175 
4.3.2   Policy and institutions  
4.119.   During the review period, Brazil shifted a number of industrial stimuluses away from direct 
support towards structural reforms (e.g. pension rules, new government procurement law), 
privatization, expansion and modernization of infrastructure, taxes reductions across the board 
including the reduction of a number of tariffs on imported goods, simpl ification of procedures and 
de-bureaucratization aimed at long -lasting benefits and resilient industrial sectors.176 Brazil notably 
scrapped out a number of distorting, inefficient , and obscure industrial plans , which were claimed to 
lead to suspicious and illegal benefits and corruption schemes. Previous schemes targeting specific 
sectors or industries, such as Plano Brasil Maior  and Brazil More Productive ( Brasil Mais Produtivo ) 
(Section  1.2.1) , which focused on credit lines under administered interest rat e or favourable 
conditions, public procurement preferences, fiscal incentives, and border measures , were 
terminated.177 
4.120.   In 2019, the Ministry of Economy (ME) (Section  2.2.1) incorporated the functions of the 
abolished Ministry of Industry, Foreign Trade and  Services (MDIC) and is now responsible for, 
inter alia, policy development on industry, trade , and services, which is implemented mainly through 
the Special Secretariat for Productivity, Employment and Competitiveness (SEPEC) and the Special 
Secretariat f or Foreign Trade and International Affairs (SECINT). The Secretariat for the 
Development of Industry, Commerce, Services and Innovation (SDIC) operate s under SEPEC.178 
4.121.   During the review period, Brazil undertook noticeable reforms and actions that positively  
assisted its manufacturing sector, including: (i)  the pension reform that was passed in  2019, making 
it more sustainable and strengthening it s redistributive character; (ii)  a temporary emergency 
programme to offset the economic effects of the COVID -19 pandemic and supported over 
67 million  families; (iii)  doubling the federal government contribution to the B asic Education 
Development Fund ( FUND EB) and providing monetary incentives for local governments to raise the 
quality of education; (iv)  expansion and improvement of vocational training programmes by, 
inter alia, the engagement of the private sector; and (v)  new legislation to reduce the bure aucracy 
and facilitate the opening  of a business and obtaining licences in Brazil.179 
4.122.   Nevertheless, according to the OECD, a number of structural reforms are still needed to 
continue to improve the international competitiveness of Brazilian manufacturing (S ection  1.2.4). 
Some of the key reforms that could unleash significant unexploited potential and play a leading role 
in raising productivity would be: (i)  reform the tax system, including by consolidating consumption 
taxes into one value added tax; (ii)  continue to simplify licence requirements for starting a company; 
(iii) implement one -stop shops for business operations, wherever feasible;  (iv) reduce, with a view 
of eliminating, tariffs and non -tariff barriers in selected sectors with low competition leve ls or where 
local production is non -existent or stagnant for several years, also covering capital goods and 
intermediate inputs; (v)  expand vocational and professional trainings aligned with local labour 
market needs; (vi) prioritize education outcomes and  ensure equality of educational opportunities 
by expanding early -childhood education, and guaranteeing a better selection and training of 
 
175 Data on manufacture exports and imports provided by the authorities were calculated according to 
the new methodology of classification by economic a ctivity developed by the Secretariat of Foreign Trade 
Statistics  available at  https://balanca.economia.gov.br/balanca/metodologia/Nota_ISIC -CUCI.pdf . According to 
the au thorities, this new methodology is based on the International Standard Industrial Classification of All 
Economic Activities (ISIC)  published by the United Nations Statistics Division (UNSD) . 
176 For example, the Economic Freedom Law (Lei de Liberdade Econômica), Law No.  13,874 /2019 
(Section  2.4.1)  determin es free market guarantees for private operators and specif ies the role of the State as a 
normative and regulatory agent. The claimed objective of t he law i s to provide greater administrative 
simplification for a better business environment, clearer rules , and stimulation of competitiveness. Viewed at: 
https://www.gov.br/pt -br/campanhas/liberdade -economica/aspectos -tecnicos -da-lei-de-liberdade -economica . 
177 According to the authorities, Plano Brasil Maior was terminated in 2016.  
178 Ministry of Economy . Viewed at: https://www.gov.br/economia/pt -br. 
179 OECD (2021) , Economic Policy Reforms 2021: Going for Growth . Viewed at: 
https://www.oecd.org/economy/growth/Brazil -country -note-going -for-growth -2021.pdf . WT/TPR/S/ 432 • Brazil  
 
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  teachers; and (vii) envisag e a stronger and more universal social safety net by including 
informal  workers.180 
4.123.   These ch anges could enable Brazil to foster its participation into international trade and spark 
a better integration into global value chains by replicating the trends that have shaped industrial 
production elsewhere. This would also ensure that Brazil taps the b enefits of scale from its large 
domestic market, develop s value chains from its existing areas of strong comparative advantage, as 
well as develop s a more resilient, diversified, sophisticated , and cutting -edge manufacturing sector, 
coupled with a well -designed, competitive , and efficient services providers to fully maximize the 
benefits from structural reforms towards achieving developing goals.  
4.3.3   Border measures  
4.124.   The average MFN applied tariff rate for manufacturing products decreased from 11.8% 
in 2017 to 1 0.3% in 2022 (HS definition, Table  A3.1). Clothing, textiles, and transport equipment 
benefit from the highest tariff protection among WTO categories of products, with average MFN 
applied tariffs of  35%, 22%, and 17.7%, respectively. The number of manufact ured products subject 
to non -automatic import licensing where quotas , policies , and other requirements are imposed 
continues to be high and unclear.181 Trade defence measures in force fell from 180 in 2017 to 152 
in 2021.  
4.125.   Several export incentives remain av ailable (e.g. drawback programme )182; Special Customs 
Regime for Industrial Warehouse under Computerized Customs Control (RECOF and 
RECOF -Sped)183; refund or exempt ion of Social Integration Program (PIS), Contribution for the 
Financing of Social Security (COFINS), Financial Transaction Tax (IOF), Industrialized Goods 
Tax (IPI), Tax on Services  (ISS); official export financing mechanisms184, the Special Regime for the 
Acquisition of Capital Goods by Exporting Enterprises (RECAP)185, and special zones 
(e.g. export -processing zones) .186 Noteworthy to highlight that tax refunds on exports under the 
Reintegra  scheme basically disappeared 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 systematically accu mulate 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.  
4.3.4   Domestic sup port 
4.126.   During the review period, Brazil shifted a number of industrial stimuluses away from direct 
domestic support towards structural reforms. Previous industrial plans, such as the Plano Brasil Maior  
 
180 OECD (2021) , Economic Policy Reforms 2021: Going for Growth . Viewed at: 
https://www.oecd.org/economy/growth/Brazil -country -note-going -for-growth -2021.pdf . 
181 According to the authorities, since 2020 the Secretariat of Foreign Trade (S ECEX) does not impose 
non-automatic import licensing procedures for minimum price control, in line with Article 4 of 
Law No. 13,874/2019 (Economic Freedom Law), which considers an abusive practice issuing regulation , which 
means a restraint of trade or oth erwise a limitation to carry out economic activities in Brazil. In addition, the 
provisions established by Decree  No. 10,178/2019 establishes the need for governmental authorities to 
classify  (and publish) the potential risk of economic activities when imp osing licen sing requirements.  
182 Viewed at: https://www.gov.br/receitafederal/pt -br/assuntos/adua na-e-comercio -exterior/regimes -
e-controles -especiais/regimes -aduaneiros -especiais/drawback . 
183 Viewed at: https://www.gov.br/receitafederal/pt -br/assuntos/aduana -e-comercio -exterior/regimes -
e-controles -especiais/regimes -aduaneiros -especiais/recof -sped and https://www.gov.br/receitafederal/pt -
br/centrais -de-conteudo/formularios/regimes -especiais/recof -sped-regime -aduaneiro -especial -de-entreposto -
industrial -sob-controle -informatizado -do-sistema -publico -de-escrituracao -digital . 
184 Viewed at: https://www.bn des.gov.br/wps/portal/site/home/onde -atuamos/exportacao/como -
funciona -apoio -exportacao . 
185 Viewed at: https://www.gov.br/receitafederal/pt -br/centrais -de-conteudo/formulari os/regimes -
especiais/recap -regime -especial -de-aquisicao -de-bens-de-capital -para-empresas -exportadoras . 
186 Viewed at: https://www.gov.br/produtividade -e-comercio -exterior /pt-br/assuntos/zpe  and 
https://www.gov.br/produtividade -e-comercio -exterior/pt -br/assuntos/zpe/brazilian -export -processing -zones -
epz. 
187 The stated purpose of R eintegra  is to exempt taxes that are charged throughout the production 
process of industrialized goods, such as ISS, IOF , and CIDE . Presidential Decree No.  9,393/2018 . Viewed at: 
http://www.planalto.gov.br/ccivil_03/_ato2015 -2018/2018/decreto/D9393.htm . WT/TPR/S/ 432 • Brazil  
 
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  had several of its programmes expire and not extended. A s of April 2022, the following general 
incentives remained in place: financing in the form of administered interest rate or concessional 
loans by the BNDES – including preferential equipment financing through FINAME188, the Brazilian 
Innovation Agency (FINE P)189 or federal states; government procurement preferences to local 
suppliers; federal, state , and municipal tax and non -tax incentives (e.g.  IPI tax reductions on several 
consumer and capital goods, exempt or reduction of Municipal Services Tax (ISS) and Urban Real 
Estate Tax (IPTU) , rental subsidies, and donation of land sites); and R&D and information technology 
tax incentives. Industry -specific incentives remained available for some sectors, including 
automotive, aeronautics, computing, infrastructure , and defence.190 Some support programmes 
such as those linked to Basic Productive Process (PPB) criteria191, to local manufacturing clusters192, 
and assistance for improving productivity processes (Brasil Mais)193, had either been maintained or 
were introduced to increase competitiveness.  
4.127.   Public procurement preferences to domestic suppliers194, tax reductions , or financing from 
public banks linked to production step -related local content requirements have to some extent 
continued to shield certain  domestic producers from foreign competition.195 According to the 
authorities, BNDES provides long -term financing in wind and solar greenfield plants196 for up to 80% 
of the whole investment (which includes domestic - and foreign -produced equipment). 
Since  January  2021, there are no minimum requirements of Brazilian steel for building wind towers. 
Since August 2020, financing of photovoltaic energy projects of systems above 375  kW is subject to 
having one of the following components accredited with BNDES: modu les, trackers , or inverters.197 
BNDES funding for FINAME was approximately BRL 23.6 billion  in 2020 ( BRL 16.6 billion  in 2014 and 
BRL 16.5 billion  in 2015).198 
4.128.   On 11  January  2019, the Dispute Settlement Body (DSB) adopted its recommendations and 
rulings in Brazil – Certain Measures Concerning Taxation and Charges  (WT/DS472 and WT/DS497) 
brought by the European  Union and Japan, respectively. On 17  January  2020, Brazil informed 
Members that it had agreed that the reasonable period of time (RPT) with the Europea n Union to 
implement the recommendations and rulings of the DSB was by 31  December  2019. According to 
Brazil, three programmes had expired before the adoption of the reports of the Panel and of the 
Appellate  Body: INOVAR -AUTO expired on 31  December  2017, p ursuant to Law  No 12,715/2012; 
PATVD expired on 22  January  2017, pursuant to Law No  11,484/2007; and Digital Inclusion expired 
on 30  December  2015, pursuant to Law No  13,241/2015. Concerning the findings on PPBs, Brazil 
claimed it had either revoked or sub stituted all implementing orders found to be inconsistent with 
the reports. With regards to the findings on the Informatics and PADIS  programmes, Brazil 
mentioned it had enacted Law No  13,969 of 26  December 2019, bringing those measures into 
conformity.199 
4.129.   In September 2019, Brazil established a Chamber for Industry 4.0 (advanced manufacturing 
or the Fourth Industrial Revolution). This Chamber has the objective of increasing the 
 
188 Viewed at: https://www.bndes.gov.br/wps/portal/site/home/fin anciamento . A significant shift has 
been noticed with the increase d focus on SMEs . 
189 Viewed at: http://www.finep.gov.br/ . 
190 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
191 PPB constitutes the minimum set of operations to be carried out in Brazil in order to be recognized as 
effective local industrialization of any given product . Viewed at: https://www.gov.br/produtividade -e-comercio -
exterior/pt -br/assuntos/competitividade -industrial/processo -produtivo -basico -ppb. 
192 Viewed at: https://www.gov.br/produtividade -e-comercio -exterior/pt -br/assuntos/competitividade -
industrial/arranjos -produtivos -locais -apl. 
193 Viewed at: https://brasilmais. economia.gov.br/ . 
194 Law No 14,133/2021 , Article  26.  
195 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
196 According to the authorities, i nvestors are predominantly of foreign origin, who bring in their own 
technological solutions and choose the optimal combination of imports and local production of components to 
meet their risk and return strategies.  
197 According to the authorities, f or both wind and photovoltaic equipment suppliers, BNDES has a policy 
to mirror the market supply conditions, considering new technologies and production lines developed . 
198 According to the authorities,  the reduction of yearly funding for FINAME from 2018 to 2020 in 
comparison with that at the time of the previous Review , besides the reduction in deman d, was due to the fact  
that a majority of disbursements in 2014 and 2015 where under the Programme for the Sustainability of 
Investment (PSI), which expired in 2015. PSI disbursements through FINAME totalled BRL 52.42 billion  in 2014 
and BRL 20.80 billion  in 2015.   
199 WT/DS472/16/Add.2, 17  January  2020.  WT/TPR/S/ 432 • Brazil  
 
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  competitiveness and productivity of Brazilian companies through policy and strategy coordination 
between government, private sector , and academic institutions. Among other  things, the Chamber 
for Industry 4.0 encompasses action related to innovation, automation, use of the Internet of Things, 
robotics, and cloud computing.200 
4.3.5   Auto motive sector  
4.130.   Brazil remained an inward -focused and protected automotive sector that accounted for 3% 
of the total GDP and 18% of the transformation industry output in 2017. The automotive industry 
employed 1.3  million  people (direct and indirect jobs) in 65 factories distributed across 10  states. 
Brazil's motor vehicle industry, the world's eighth largest in 2019 (up from ninth in 2015), and the 
sixth largest domestic market, had an overall revenue of USD  61.9 billion  in 2018, generating 
BRL 65.6 billion i n direct taxes. Production stood at 2 ,944 million  units in  2019, comprising 
2,448 million passenger cars, 355 ,000 light commercials vehicles, 113 ,000 trucks, and 
27,000 buses. Installed capacity is estimated at 5.05  million  units, suggesting that there is 
overcapacity. In 2021, passenger car sales fell by 3.6%, while new commercial vehicles grew 
by 26.9% in a year -on-year basis.  
4.131.   Sales remain dominated by European carmakers followed by those from the United  States 
and Asia. High taxation, weak competition, a nd border protection continue to keep cars relatively 
expensive. According to the industry, the "Brazil Cost" continued to harm its performance mainly 
due an old tax system, outdated laws, excessive bureaucracy and infrastructure deficiency . The 
industry s pent BRL 2.3 billion  every year to calculate taxes levied on business es, coupled with tax 
residues of around 12% on exports that negatively impact international competitiveness.201 
4.132.   Import penetration ratio was not provided (7% in  2006, 27%  in 2011, and 15.1% in 2016). 
Imported new vehicles stood at 310,505 in 2018 and 297,658  in 2019.202 Imports' shares in 2019 
were: Argentina 26.1% (22.9% in 2006), the European  Union 21.1% (36.9% in 2006), 
China  10.5%  (4.2% in 2006), Mexico  10.2% (4.5% in 2006), the Unit ed States 8.6% (13.8% 
in 2006), Japan 6% (11.4% in 2006), and the Republic of Korea 5.5% (1.9% in 2006).  
4.133.   Exports accounted for 784,749 units in 2017, 643,421 in 2018 , and 435,044 in 2019. 
Brazil's  main export markets in 2019 were: Argentina 25.3% (23.1% in  2006), 
theUnited  States  16.4% (17.7% in 2006), Mexico 10.7% (12.7% in 2006), and 
the European  Union  10.1% (14.1% in 2006).  Motor vehicle export earnings dropped significantly 
from USD  10.7 billion in 2017 to USD  5.8 billion  in 2019.203 
4.134.   Border protection, including a 35% MFN tariff rate on motor vehicles , remained unchanged. 
The bilateral agreement with Mexico was expanded to duty -free, quota -free for vehicles and auto 
parts in 2019204 (conditional to a regional content index of 40%) and to buses  and trucks by 2023.205 
Similar agreements exists with Uruguay (December 2015), Argentina (June 2016, expanded 
in September  2019), and Paraguay (February 2020).206 As of 1  June 2022, the MFN import tariff on 
 
200 Viewed at: https://www.gov.br/economia/pt -br/assuntos/noticias/2019/09/go verno -federal -lanca-
plano -para-alavancar -industria -4.0. 
201 ANFAVEA (2020), Anuario da Industria Automobilistica Brasileira 2020 . Viewed at: 
https://anfavea.com.br/anuario2020/anuario.pdf . 
202 ANFAVEA (2020), Anuario da Industria Automobilistica Brasileira 2020 . Viewed at: 
https://anfavea.com.br/anuario2020/anuario.pdf . 
203 ANFAVEA (2020), Anuario da Industria Automobilistica Brasilei ra 2020 . Viewed at: 
https://anfavea.com.br/anuario2020/anuario.pdf . 
204 Viewed at: https://www.gov.br/produtividade -e-comercio -exterior/pt -br/assuntos/comercio -
exterior/regimes -de-origem/certificado -de-origem/cdo -ace-55-mercosul -mexico  and 
http://www2.aladi.org/biblioteca/publicaciones/aladi/acuerdos/ace/pt/ace55/ACE_055_005_Apendice_002_pt.
pdf. 
205 Viewed at: 
http://www2.aladi.org/biblioteca/publicaciones/aladi/acuerdos/ace/pt/ace55/ACE_055_007_Apendice_002_pt.
pdf and https://agenciabrasil.ebc.com.br/economia/noticia/2020 -06/brasil -e-mexico -ampliam -livre-comercio -
automotivo . 
206 The bilateral agreements with Argentina and Uruguay are "Additional Protocols" updating provision s 
in original agreements that entered into force in 1990 and 1983, respectively.  WT/TPR/S/ 432 • Brazil  
 
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  electric and cell -powered vehicles and hybrid vehi cles ranged from zero to 35%. However, most of 
the imports benefits from reduced tariffs rang e from zero to 4%.207 
4.135.   From 1  January  2022, the Foreign Trade Chamber (CAMEX) reduced the tariff rates levied 
on the imports of 12 auto parts products without nation al production from 16% to 2%. A total 
of 3,420 auto parts now benefit from a 2% tariff.208 
4.136.   In May 2022, CAMEX published a decision for reducing tariffs to 18% for semi -dismantled 
vehicles  (SKD) and 16% for fully disassembled vehicles (CKD) for a period of u p to two  years. The 
reduction may be granted to cars and light commercial vehicles with up to 1,500  kg of load capacity 
without domestically equivalent production and it is only applicable to new vehicles in alignment with 
the current automotive policy and  upon a request to the Department of Development of Industry, 
Commerce, Services and Innovation of the M E, via the Electronic Information System (SEI), 
until 31 December  2022. This period may be extended by decision of the CAMEX  Executive 
Management Commit tee.209 
4.137.   The Non -Produced Auto Parts Regime (Regime de Autopeças Não Produzidas) , which allows 
the importation of auto parts without domestically produced equivalent, grant s import tariff 
exemption. Its stated objectives were to develop the automotive sector, stimulate the consolidation 
of the auto parts production chain , and promote the absorption of new technologies in vehicles 
produced in Brazil, based on the 2008 "Agreeme nt on the Common Automotive Policy between 
Argentina and Brazil".210 Pursuant to Law No.  13,755/2018, there is no longer the option of allowing 
the importation of auto parts directly for resale; thus, such importation is applicable only when 
directly destin ed for the industrialization of automotive products. A mandatory application of 2% of 
the imported value is requested in RD&I projects with priority programmes to support industrial and 
technological development for the automotive sector and its chain, con ditional to prior accreditation 
by the M E. 
4.138.   Since its last Review , Brazil informed Members that it had ended the automotive 
industry's  support programme named the Programa de Incentivo à Inovação Tecnológica 
e Adensamento da Cadeia Produtiva de Veículos Aut omotores  (Incentive Programme for 
Technological Innovation and Consolidation of the Automotive Vehicle Supply Chain) or 
INOVAR -Auto, which aimed at promoting technological development in the Brazilian automotive 
industry and addressing competition challeng es by providing benefits from IPI reduction. The 
reduction of the IPI tax rates on automobiles manufactured or imported by accredited companies 
was provided in the form of discount of presumed IPI tax credits; and reduced IPI tax rates on the 
importation o f vehicles originating in certain countries as well as on certain domestic vehicles.  
4.139.    On 17  January  2020, Brazil informed Members that it had agreed that the RPT with the 
European  Union to implement the recommendations and rulings of the  DSB would end on 
31 December 2019 (or 21 June 2019 for prohibited subsidies) in the dispute entitled Brazil – Certain 
Measures Concerning Taxation and Charges  (WT/DS472 and WT/DS497) brought by the 
European  Union and Japan, respectively. According to Brazil, three  programme s had expired before 
the adoption of the reports of the Panel and of the Appellate  Body, notably INOVAR -AUTO, which 
expired on 31  December  2017 pursuant to Law  No 12,715/2012.  
 
207 According to the authorities, although the reductions are temporary, there is no timeframe for 
termination.  
208 Viewed at: https://agenciabrasil.ebc.com.br/economia/noticia/2021 -12/camex -reduz -para-2-
imposto -de-importacao -para-autopecas  and https://www.in.gov.br/web/dou/ -/resolucao -gecex -n-284-de-21-
de-dezembro -de-2021-369766147 . 
209 Viewed at: https://agenciabrasil.ebc.com.br/economia/noticia/2022 -03/camex -regulamenta -
reducao -do-imposto -de-importacao -de-veiculos  and https://www.in.gov.br/en/web/dou/ -/resolucao -gecex -n-
314-de-24-de-fevereiro -de-2022-383084244 . 
210 Viewed at: https://www.gov.br/produtividade -e-comercio -exterior/pt -br/assuntos/competitividade -
industrial/setor -automotivo/regime -de-autopecas -nao-produzidas . WT/TPR/S/ 432 • Brazil  
 
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  4.140.   In 2018, Brazil launched the ROTA 2030 programme , which provides for a tax incen tive 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.211 
4.3.6   Information technology  
4.141.   The development of the information technology (IT)  industry continued as a long -standing 
policy objective in Brazil. According to the authorities, the IT industry's share of GDP was 1.29%212 
in 2019, whereas its share in gross value added stood at 0.3% in 2019 , employing 121 ,026 workers 
in 2019 (134 ,295 in 2015 and 90 ,000 in 2017). The trade balance in IT products stood at 
BRL 40 billion of imports and BRL 5.7 billion  of exports in 2021.  
4.142.   In March 2022, CAMEX reduced by an additional 10% the tariffs on IT goods. This followed 
a previous 10% reduction granted in March 2021, seeking to increase the productivity and 
competitiveness of the Brazilian economy by reducing the costs in strategic produc ts.213 
4.143.   Currently, the IT industry benefits from tariffs ranging from zero to 12.8%.214 Brazil remains 
a non -participant in the WTO plurilateral Information Technology Agreement (ITA).  
4.144.   The Special Regime for the Information Technology Exportation Platform (RE PES) remained 
in force by suspending Social Integration Program (PIS) and Contribution to Social Security 
Financing  (COFINS) taxes on goods imported and IT services provided by  companies that commit to 
export software and IT services to the extent that tho se exports account for more than 50% of the 
company's annual gross income.215 
4.145.   On 11  January  2019, the D SB adopted its recommendations and rulings in Brazil – Certain 
Measures Concerning Taxation and Charges  (WT/DS472 and WT/DS497) brought by the 
European  Union and Japan, respectively. On 17  January  2020, Brazil  informed Members that it had 
agreed that the RPT with the  European  Union to implement the recommendations and rulings of the 
DSB would end on 31  December  2019. According to Brazil, PATVD expired on 22  January  2017, 
pursuant to Law  No 11,484/2007; and Digital Inclusion expired on 30  December  2015, pursuant to 
Law No 13,241/2015. Concerning the findings on Processos Produtivos Básicos (PPBs), Brazil 
claimed it had either revoked or substituted all implem enting orders found to be inconsistent with 
the reports. With regards to the findings on the Informatics and PADIS programmes, Brazil 
mentioned it had enacted Law No  13,969/2019, bringing those measures into conformity.216 
4.146.   Since the previous Review, BNDES h as terminated its Information Technology and Software 
Development Programme ( Programa para o Desenvolvimento da Indústria de Software e Serviços 
de Tecnologia da Informação —Prosoft ), which provided administered interest rate loans to 
companies that include  Brazil in their development plans and add value in exports from the country.  
4.147.   The total amount of domestic support to the IT industry (e.g.  forgone tax revenue, budgetary 
outlays) and an appraisal on its achievements (e.g.  investment, output, employment, a nd exports) 
were estimated at BRL 5.277  billion  in 2022.  
 
211 Law No. 13,755/2018 ; and Minist ry of Economy. V iewed at:  https://www.gov.br/produtividade -e-
comercio -exterior/pt -br/assuntos/c ompetitividade -industrial/setor -automotivo/rota -2030-mobilidade -e-
logistica . 
212 Provided by the authorities, based on code  26 of the International Standard Industrial Classification 
of Economic Activities (ISIC), which encompasses the "Manufacture of comput er, electronic and optical 
products ". 
213 Viewed at: https://www.gov.br/economia/pt -br/assuntos/noticias/2022/marco/camex -reduz -a-zero-
imposto -de-importacao -de-sete-itens-da-cesta-de-consumo -da-populacao  and https://in.gov.br/en/web/dou/ -
/resolucao -gecex -n-318-de-24-de-marco -de-2022-388323757 . 
214 According to the authorities, t he IT industry benefits from tariffs ranging from zero to 16%, but most 
of the tariff lines have been reduced by 20%. After the reductions in April 2022, 79% of the tariff lines at 
the 8-digit level are below 10 .8%. Tariff ave rage for the IT sector (using the maximum tariff per 8 -digit code), 
is 6.7%. 
215 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
216 WTO document WT/DS472/16/Add.2, 17  January  2020.  WT/TPR/S/ 432 • Brazil  
 
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  4.3.7   Aeronautics  
4.148.   In aeronautics, Brazil's privately  owned Empresa Brasileira de Aeronautica  (Embraer) is the 
third-largest producer of commercial jets in the world, having produced over 8,000  aircraft, and is 
a global leader in the 70 - to 130-seat aircraft segment, where it accounts for 60% of global 
deliveries. The Brazilian State continued to retain interest through possession of golden shares 
allowing it veto power. Embraer has always been strongly integrated into global production chains, 
and imports still account for 70% of its value  added. Aircraft imports (HS 8802 and 8803) remain 
subject to zero customs duty and several parts had recently benefited from elimination of tariffs.217 
Embraer is Brazil's third -largest exporting company. Exports had significantly been impacted during 
the COVID -19 pandemic. The aeronautics industry contributed approximately to 0. 5% to 
Brazil's  GDP (2020), providing for 25,000 jobs (directly), and accounted for USD  2.6 billion  in 
export  revenue (2021).  
4.149.   A strategic partnership between Embraer and the US aerospace manufacturer Boeing signed 
in July 2018 , where the latter would take a n 80% stake in the commercial aircraft business of 
Embraer, while the Brazilian company would retain the other 20% stake, as well as the entirety of 
its military and private jet businesses, fell apart in April 2020.218 
4.150.   According to the authorities, the aero nautics industry -specific tax incentives under the 
RETAERO scheme terminated on 14  June 2020.  
4.151.   In April 2022, the Brazilian Council for Commercial Strategy (CEC) approved a mandate for 
requesting Brazil's accession to the WTO  Agreement on Trade in Civil Air craft, claiming it reinforces 
the commitment to the multilateral trading system and granting more predictability and legal 
certainty for productive value chains of the segment.219 The accession request was formalized during 
the 12th Ministerial Conference ( MC12).  
4.3.8   Other  
4.152.   The renewal and effective entry 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 s ince 2021.220 
4.4  Services  
4.4.1   Main features  
4.153.   The services sector continues to be the main contributor to Brazil's gross value  added and 
job creation. The sector's gross value  added share reached 69.8% (2021) (Table  1.2); its share in 
total employment stood at 69% i n 2020, suggesting a high labour productivity ratio.221 
4.154.   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.  
4.155.   Services exports dropped from USD  34.3 billion  in 2019 to USD  28.5 billion  in 202 0, before 
reaching USD  33.2 billion  in 2021. Services imports fell from USD  69.4 billion  in 2019 to 
 
217 Viewed at: https://agenciabrasil.ebc.com.br/economia/noticia/2021 -09/brasil -atualiza -regra -que-
trata-da-importacao -de-produtos -aeronauticos .  
218 Reuters  (2020), "Embraer Hits Out after B oeing Scraps $4.2  Billion Tie -Up", 25  April. Viewed at: 
https://www.reuters.com/article/us -embraer -m-a-boeing -idUSKCN2270KN .  
219 Viewed at: https://www.gov.br/produtividade -e-comercio -exterior/pt -br/assuntos/comercio -
exterior/noticias/2022/abril/brasil -vai-negociar -adesao -ao-acordo -sobre -comercio -de-aeronaves -civis-da-omc. 
220 Viewed at: https://www.camara.leg.br/noticias/846827 -projeto -cria-programa -de-beneficio -fiscal-
para-incentivar -producao -nacional -de-fertilizantes . 
221 More information: http://i -tip.wto.org/services/SearchApplied.aspx , 
https://qdd.oecd.org/subject.aspx?Subject=063bee63 -475f-427c-8b50-c19bffa7392d  and 
https://www.oecd.org/trade/topics/services -trade/documents/oecd -stri-country -note-bra.pdf . WT/TPR/S/ 432 • Brazil  
 
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  USD 48.4 billion in 2020, and climbed to USD  50.3 billion  in 2021.222 Domestic services value  added 
represented 40.6% of Brazil's gross exports in 2018.223 
4.156.   On 12  October  2020, Brazil notified an exceptional and temporary restriction on the entry of 
foreign natural persons (mostly non -resident) for a period of 30 days to contain the risks related to 
COVID -19. The notification was made based on the potential ef fects on services supplies on 
commercial presence and movement of natural persons into the country modes.224 
4.4.2   Commitments under the General Agreement on Trade in Services and RTAs  
4.157.   Brazil's commitments under the GATS were last changed in March 2016 with the r atification 
and insertion of the Fifth Protocol undertakings in the area of financial services.225 Brazil's Schedule 
of Specific Commitments contains undertakings in certain business services (including professional 
services), construction services, courier  services, distribution services, financial services, hotels and 
restaurants services, as well as rail, road , and pipeline transport services and those auxiliary to all 
modes of transport.226 It covers less than one third of all services subsectors in the S ervices Sectoral 
Classification List; measured in such a way, this is less than the average sectoral coverage among 
WTO Members.227 Brazil does not have commitments in such sectors as computer, audiovisual, 
education, environmental, health, maritime transpo rt, and telecommunication services. Brazil has 
not ratified the Fourth Protocol on basic telecommunications.228 Its list of  Article  II (MFN) Exemptions 
covers measures in relation to audiovisual co -production agreements, the supply of land transport 
services with countries of South America, and bilateral maritime transport agreements on cargo 
reservation and cargo sharing.229 
4.158.   As of June 2022, Brazil maintains only two RTAs involving commitments on trade in services: 
MERCOSUR  (ACE No. 18) (2005); and M ERCOSUR -Chile Agreement (ACE No. 35) (2009). However, 
the entry into force of a third agreement, the Agreement on Econ omic and Trade Expansion between 
Brazil and Peru, concluded in April 2016 and covering trade in services, is pending. In 2018, Brazil 
also concluded an additional protocol to its Agreement with Chile (ACE No. 35), which entered into 
force in  January 2022, covering services (cross -border trade in services, telecommunication 
services, financial services, temporary entry of business travellers), as well as e -commerce. 
Moreover, in  2020, MERCOSUR negotiated an additional protocol to its RTA with Colombia 
(ACE No. 72), currently under evaluation by the Brazilian Congress, which also expands the 
disciplines and commitments to trade in services. Brazil has notified one MERCOSUR RTA under 
Article  V of the GATS. In MERCOSUR, Brazil undertook specific commitments on t rade in services 
that went significantly beyond the commitments under the GATS (Section  2.3.2.1). These 
commitments covered new sectors  (computer, R&D, telecommunication, audiovisual, educational, 
environmental, and maritime transport services) and improve d sectoral coverage and/or the level 
of treatment bound in a number of other sectors (professional, distribution, financial, and other 
business services). Under the Brazil -Peru agreement, Brazil undertook market access commitments 
in sports event promotion  and organization, and sport facility operation services.230 
 
222 Viewed at: https://www.gov.br/produtividade -e-comercio -exterior/pt -br/assuntos/comercio -
exterior/publicacoes -secex/boletins -de-comercio -exterior/arquivos/ relatorio -servicos -2020.pdf  and 
https://www.gov.br/produtividade -e-comercio -exterior/pt -br/assuntos/comercio -exterior/publicacoes -
secex/boletins -de-comercio -exterior/arquivos/relatorio -servicos -2021.pdf . 
223 WTO, Brazil: Trade in Value Added and Global Value Chains . Viewed at: 
https://www.wto.org/english/res_e/statis_e/miwi_e/BR_e.pdf . 
224 WTO document S/C/N/1023, 12  October  2020.  
225 More information on Brazil's GATS commitments may be found, inter alia, in WTO documents 
GATS/SC/13, 15  April 1994; and GATS/SC/13/Suppl.3/Rev.1, 27  June 2016.  
226 Sectors in which there are no commitments include computer, telecommunication, audiovisual, 
education, health, environmental, recreational, maritime transport, and air transport services.  
227 WTO document MTN.GNS/W/1 20, 10  July 1991.  
228 During the negotiations of the Fourth Protocol of GATS, certain WTO Members raised reservations 
about Brazil's offer, because it referred to Article  18 of the General Law of Telecommunications 
(Law No. 9,472/97), which allowed the Execu tive Branch to review the participation of foreign capital in 
telecom operators established in Brazil. As a result , Brazil withdrew its telecom offer. Nevertheless, in the 
context of the Doha Round, Brazil did include telecommunications services in its rev ised offer of 2005 
(WTO document TN/S/O/BRA/Rev.1 , 22 June 2005). 
229 WTO document GATS/EL/13, 15  April 1994.  
230 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  WT/TPR/S/ 432 • Brazil  
 
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  4.159.   MERCOSUR RTAs with Egypt and Israel do not cover trade in services, but the parties 
inserted evolutionary clauses aimed at achieving gradual liberalization and the opening of their 
services market s in the future (Section  2.3.2.1).231 Brazil has negotiated FTAs with 
the European  Union and the European Free Trade Area (EFTA), which contain a GATS -plus coverage 
of trade in services. Ongoing negotiations between MERCOSUR and Canada, the Republic of Kore a, 
and Singapore also intend to have a comprehensive coverage of services.  
4.160.   As from 4  November  2015, Brazil has accorded preferential market access treatment to 
services and services suppliers of least developed countries (LDCs) on certain business, constru ction 
and related engineering, distribution, insurance and insurance -related, travel agency and tour 
operator/guide, sporting, auxiliary maritime transport, and freight transportation services.232 
Preferences are predominantly accorded to the supply of thes e services through 
commercial  presence.  
4.4.3   Financial services  
4.161.   Brazil remains the largest financial services market in Latin America. The financial sector has 
already showed signs of rebound from the economic effects of the COVID -19 pandemic. The banking 
system is still well capitalized mainly after years of high interest rates and charges, which continue 
to ensure high profitability.233 During the review period, the contribution of financial and insurance 
services to gross value  added went from 7.6% in 2017 to 7.1% in 2020 (Table  1.2); in 2019, the 
sector employed only 1.3% of the labour force, while the sector participation in GDP has s kyrocketed 
from 1.1% in 2019 to 4.5% in 2020. The financial system assets dropped from USD  4.257  billion 
in 2019 to USD  3.822  billion  in 2020 (Table  4.12). In 2020, banks accounted for 53.3% of the 
system's assets, whereas insurance companies accounted for  1.2%, compared to 59.4% and 1.3% 
in 2016, respectively; investment and pension funds held 30.8% and 10.2% of the remaining assets . 
Table 4.12 Structure of the financial system, 2017 -20 
(USD billion)  
 2017  2018 2019  2020  
Total financial system assets, of which  4,382.8  4,056.9  4,257.4  3,822.2  
Banks  2,414.3  2,191.6  2,183.6  2,036.4  
Assets of state -owned banks  1,121.2  961.2  929.2  814.7  
Non-bank financial and credit institutions (NBFCIs)  93.9 94.2 97.6 106.3  
Insurance companies  58.9 52.3 54.9 44.3 
Pension funds  472.0  438.7  471.1  389.0  
Investment funds  1,275.4  1,213.7  1,374.2  1,178.2  
Other  68.3 66.3 76.2 67.9 
Credits, of which  990.5  872.2  880.7  800.7  
Banks  951.7  835.0  836.5  755.5  
State -owned banks  509.5  430.7  401.2  345.9  
NBFCIs  38.7 37.2 44.2 45.2 
Loans in foreign currency/total loans (%)  14.0 15.0 16.4 15.4 
Credits/GDP (%)  49.8 48.3 48.0 55.7 
Deposits, of which  728.9  704.3  733.1  787.1  
Banks  673.7  650.4  676.4  719.5  
State -owned banks  320.5  288.0  288.4  266.7  
NBFCIs  55.2 53.9 56.7 67.5 
Deposits in foreign currency/total deposits (%)  23.1 21.8 21.8 19.8 
Deposits/GDP (%)  36.6 39.0 40.0 54.8 
Interest rate spread (domestic currency) (%)  18.47  16.52  17.81  14.48  
Source:  BCB. 
4.162.   Brazil's financial sector is large and varied, where private multi -purpose commercial 
banks  (bancos múltiplos ) are the main leading intermediaries in the financial sector. On the other 
hand, public financial institutions also play an important role as lending intermediaries, in addition 
to support ing rural economic activities and agricultural production through targeted loans. A number 
of smaller credit cooperatives serve lower -income retailers, microbusinesses, and SMEs.234 
 
231 WTO document WT/COMTD/RTA10/1/Rev.1, 28  November  2019; and WT/REG398/1/Rev.1, 
2 October  2020.  
232 WTO document S/C/N/839, 5  November  2015.  
233 EIU (2022), Industry Report – Financial Services – Brazil , 26 April. 
234 EIU (2022), Industry Report – Financial Services – Brazil , 26 April. WT/TPR/S/ 432 • Brazil  
 
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  4.163.   The main Na tional Financial System (SFN) regulators continue to be the National Monetary 
Council (CMN) and the National Council of Private Insurance (CNSP). The CMN sets policies and 
issues regulations for financial institutions in line with recommendations from the BCB, the Brazilian 
Securities Exchange Commission (CVM) , and the Superintendence of Private Insurance (SUSEP). 
In 2019, Law No.  13,820/2019 safeguarded the BCB's operational autonomy: the Treasury must 
issue securities in order to ensure an adequate amount  of securities for monetary policy purposes in 
the BCB's portfolio, and defines when reserve of results should be settle d through a transfer to the 
Treasury. In 2021, Complementary Law No.  179/2021 was passed d efining the objectives of 
the BCB, and establi shing its technical and operational autonomy but not its administrative and 
financial autonomy (Section  1.2.3.1). The president and directors of the BCB now have fixed 
four-year terms of office not coinciding with the term of office of the President of the  Republic, and 
may be reappointed once, by decision of the President of the Republic.  
4.4.3.1   Banking and finance  
4.164.   As of 2021, the banking system consists of 1,631 institutions authorized, regulated , and/or 
supervised by the BCB. Of these institutions, there are 13 5 multi -purpose banks and 15 commercial 
banks. Itaú Unibanco, Banco do Brasil, Caixa Econômica Federal, Banco  Bradesco , and Banco 
Santander are the largest banking conglomerates in amount of assets.235 Private banks accounted 
for 59.7% of all financial syst em loans  by the end of 2021 .236 According to Brazilian legislation, every 
financial institution (FI) established in the country is considered a national  FI. As of December 2021, 
214 (173 in 2016) financial institutions had foreign participation from a total of  27 countries, of 
which 160  (133 in 2016) were under foreign control and 54  (40 in 2016) with qualified foreign 
participation (between 10% and 50% of the institution's voting capital). Among the 214 institutions 
with foreign participation, there were 73 multiple -purpose banks, 5 commercial banks, 28 security 
brokerage companies (CTVM), 29 security distribution companies (DTVM) , and 15 payment 
institutions. Government -owned banks' share of total bank assets significantly decreased from 46% 
in 2017 to 36.2% in 2021 (Table  4.12); these banks received 32.6% of deposits and issued 40.36% 
of total domestic  loans, including those directed to agriculture, housing , and infrastructure. 
No divestment/privatization action or plans were undertaken during the review period. The CMN is 
entitled to c hannel the allocation of resources of private financial institutions towards priority regions 
or sectors. Law  No. 13,483/2017 determines that long -term interest rate (TLP) on the remuneration 
of constitutional funds or financing granted by the National Tre asury to the BNDES as a floating and 
inflation sensitive loan cost, hence reducing the spread between interest rates in direct and in 
earmarked credit lines.  
4.165.   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 2021.237 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 servic es 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 Env ironment 
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.  
 
235 Multi-purpose commercial banks  are private or public financial institutions that carry out the asset, 
liability, and ancillary operations of the various financial institutions, through the following portfolios: 
commercial, investment and/or development, real estate credit, leasing and credit, financing and investment.  
236 EIU (2022), Industry Report – Financial Services – Brazil , 26 April. 
237 IMF (2021), Brazil - Staff Report for the 2021 Article  IV Consultation , Country Report No.  2021/217, 
22 September. Viewed at: https://www.imf.org/ -
/media/Files/Publications/CR/2021/English/1BRAEA2021001.ashx . WT/TPR/S/ 432 • Brazil  
 
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  4.4.3.1.1   Institutional framework  
4.166.   The BCB has enjoyed operational autonomy since the mid -1990s but became independent 
in 2021 vi a Complementary Law No.  179/2021 (Section  1.2.3.1) . The BCB continues to authorize 
financial institutions and supervise deposit -taking financial institutions, other financial institutions, 
financial intermediaries, p ayment institutions, consortium companies, leasing companies, and 
payment schemes. The BCB and the CVM continued to concurrently supervise securities brokers and 
dealers, investment brokers, foreign investor portfolios, and the clearing and settlement syst em. 
The CVM supervises stock and futures exchanges, mutual funds, securities issuers, portfolio 
managers, broker/dealers, and individuals operating in the securities markets. The BCB supervises 
prudential aspects, as well as financial conduct and competiti on issues, and the CVM  supervises 
capital market operations.238 
4.4.3.1.2   Regulatory framework  
4.167.   During the review period, the main legal framework for banking remained unchanged , except 
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 procedures. Those are all available  online.240 
4.168.   Market access conditions in financial activities rema in similar to those outlined in the previous 
report. Foreign banks continue to be allowed to establish only subsidiaries; those directly responsible 
for the administration 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 legal entities in the equity of national 
financial institutions can now be authorized direct by the  BCB following the fulfilment of requirements 
by CMN. 241 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 benefit s 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 offi ces 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.  
4.4.3.1.3   Prudential requirements and soundness  
4.169.   Since March 20 13, Brazil has implemented the Basel III framework recommendations on 
banking supervision. According to a report by the Basel Committee on Banking Supervision 
of November 2020, Brazil had implemented all provisions, except the one on a  measure related to 
banks' disclosure of their overall capital buffers, i.e. total loss -absorbing capacity242, which establish 
minimum capital requirements of 10.5% (8% requirement +  2.5% conservation buffer) similar to 
the Brazilian requirements (9.25% requirement +  1.25% cons ervation buffer in 2017).243 Rules  
regarding the countercyclical capital buffer (0% requirement of risk -weighted assets (RWA)) and 
additional requirement for systemically important banks have already been implemented (0.25% 
requirement of RWA in 2017) . Impl ementation of the capital framework follows the schedule 
recommended by Basel III, ending in 2019. Recommendation s on liquidity and leverage ratios have 
also been implemented according to the Basel III schedule. A requirement that systemically 
important banks adopt a recovery plan has been in place since 2016. The 1995 Credit Guarantee 
Fund (FGC), a private not -for-profit entity, administers a compulsory deposit insurance scheme 
contributing to the SFN's stability. As of December 2020, the credit covered by the 
FGC (BRL 1.673  trillion) was equivalent to around 53% of total deposits ( BRL 3.162  trillion ). The 
 
238 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
239 The main legislation includes Article  192 of the Federal Constitution; Article  52 of the Temporary 
Constitutional Provisions Act; Law No.  4,595, 31  December  1964; Law No.  4,728, 14  July 1965; 
Law No. 6,024, 13  March  1974; Law No.  7,492, 16  June 1986;  Law No. 9,613, 3  March  1998; Supplementary 
Law No.  105, 10 January  2001; and Resolution No.  3,040/2002. WTO document WT/TPR/S/358/Rev.1, 
18 October  2017.  
240 BCB. Viewed at: https://www.bc b.gov.br/estabilidadefinanceira/buscanormas . 
241 Presidential Decree No. 10,029, 26  September  2019.  
242 EIU (2022), Industry Report – Financial Services – Brazil , 26 April. 
243 On 16  March  2020, the BCB reduced the Conservation Capital Buffer from 2.5% to 1.25% for 
one year. Viewed at: https://www.bcb.gov.br/en/pressdetail/2322/nota . WT/TPR/S/ 432 • Brazil  
 
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  individual coverage ceiling is BRL 250,000 (USD  50,000).244 A new resolution guarantees the 
coverage of credits up to BRL 1 million  (USD 250,000) within a four -year period, including to foreign 
investors.245 Since September 2013, the credit unions have had their own gu arantee fund  (FGCoop), 
which follows the same general conditions applicable to the FGC, including individual 
coverage  ceilings.  
4.170.   According to the IMF, the banking system has remained resilient and real credit growth is 
supporting the recovery and a  stress t ests suggested that the banking system can withstand a severe 
adverse shock .246 Profitability declined in 2020 to a pre -tax profit of BRL 94.2 billion  from 
BRL 129 billion in 2019.247 However, according to the IMF, bank profitability remains high and capital  
buffers are adequate. An increase in household and corporate deposits during the pandemic had 
increased liquidity buffers, where credit growth exceeded 10% for both private and corporate 
in 2020.248 
4.171.   During the review period , the system -wide capital ratios decreased but remain ed well above 
the regulatory minima  (Table  4.13).249 The share of n on-performing loans  (NPLs) eased to 2.24% 
at end -2020, from 3.11% at end -2019. No data on the loan loss reserves to cover for NPL have been 
provided for the review period.  The overall ratio loan -deposit was 75.1% at end -2020, down 
from 78.9% in September 2021, suggesting that banks have little net reliance on internatio nal or 
domes tic capital markets.250 
4.172.   The IMF also noted that  the elimination of the tax asymmetry between investments overseas 
and their corresponding foreign exchanges (FX) hedges had reduced banks' incentive to 
"over -hedge" FX risks and lessened banks' vulnerability t o currency depreciation. 251 
Table 4.13 Banking soundness indicatorsa, 2017 -20 
(%) 
  2017  2018  2019  2020  
Capital adequacy ratio  18.2 18.0 17.1 16.8 
Tier 1 capital ratio  14.5 14.6 14.2 14.6 
Return on assets  1.5 1.6 2.0 1.2 
Non-performing loans/total loans (%)  3.6 3.1 3.1 2.2 
Non-performing loans/bank loans (%)  3.5 3 3 2.2 
Non-performing loans/NBFCI loans (%)  4.8 4.2 4.3 2.9 
External funding to total funding  10.3 11.7 12.5 12.2 
a Includes public and private banks.  
Source:  BCB. 
4.173.   High-interest spreads between lending rates and the remuneration of deposits remain in 
place despite the decline following a drop in Selic , which reached as low as 2% in the end of  2020 
and beginning of 2021, before c limbing to 11.75% in April 2022 to contain the economic effects in 
the aftermath of the pandemic (Table  4.12, Chart  4.2, Section  1.2.3.1). The recent rising trend has 
been attributed to inflationary pressures and external conditions. Credit allocation, how ever, was 
 
244 The FGC is financed by associated financial institutions , which must contribute 0.0125% of the 
balance of the accounts guaranteed (current accounts, savings accounts, and term deposits). Credits of up to 
BRL 250,000 (approximately US D 50,000) per person per financial institution are eligible for FGC coverage. 
Viewed at: 
https://www.fgc.org.br/backend/upload/media/arquivos/Nossos%20Numeros/Dem onstrac%CC%A7o%CC%83
es%20Financeiras/Relatorio%20Anual/relatorio_semestral_2021.pdf . 
245 Viewed at: https://www.fgc.org.br/garantia -fgc/fgc -nova-garantia . 
246 IMF (2021), Country Report No.  2021/217. Viewed at: https://www.imf.org/ -
/media/Files/Publications/CR/2021/English/1BRAEA2021001.ashx . 
247 Decline in banks' pro fits in 2020 were also due to a fall in net interest income (NII) , which fell 
by 9.1% in 2020, to BRL 318  billion , as interest rates fell. EIU (2022), Industry Report – Financial Services – 
Brazil , 26 April 2002.  
248 IMF (2021), Country Report No.  2021/217. Viewed at: https://www.imf.org/ -
/media/Files/Publications/CR/2021/English/1BRAEA2021001.ashx . 
249 EIU (2022), Industry Report – Financial Services – Brazil  – 26 April. 
250 EIU (2022), Industry Report – Financial Services – Brazil  – 26 April. 
251 IMF (2021), Country Report No.  2021/217. Viewed at: https://www.imf.org/ -
/media/Files/Publications/CR/2021/English/1BRAEA2021001.ashx . WT/TPR/S/ 432 • Brazil  
 
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  positively benefited from the changes in BNDES  lending and that of other state -owned banks to 
favour SMEs.  
Chart 4.2 Interest rate spread, January 2016 -January 2022  
 
Source:  IMF, International  Financial Statistics.  
4.174.   Brazil maintains information -sharing agreements with the European Central Bank and 
financial supervisory authorities of 32 countries and territories: Argentina, Andorra, Australia, 
Austria, the Bahamas, the Kingdom of Bahrain, the Cayman Islands, Chile, China, Colombia, 
Ecuador, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Liechtenstein, Luxembourg, 
Mexico, Panama, Paraguay, Peru, Poland, Portugal, South  Africa, Spain, Switzerland, the 
United  Kingdom, Uruguay, the United  States , and the Holy See.  
4.4.3.1.4   Securities  
4.175.   Brazil's stock exchange, which was r enamed from the São Paulo Stock 
Exchange  (BM&FBovespa) to B3 in March 2017, after taking over the publicly held company Cetip,  
which organized the over -the-counter markets. B3 is the largest stock exchange in Latin America 
and it is the only formal market for trading in securities and derivatives in Brazil. B3 is itself a 
shareholder -owned company, and its stock are traded on its own market. The number of listed 
companies in B3  stood at 1,297 in 2021, and the number of Brazilian companies with listed stocks 
for trading was 463; the latter represented a market value of USD  853 billion , equivalent to 53% of 
GDP (2021). As at end -December 2021, there were 204 securities companies authorized to trade 
on B3 and they represented a net aggregate income of USD  1.455  billion . 
4.176.   The CVM, an independent government entity under the M E, remains in charge of regulating 
and supervising the securitie s markets in Brazil, with the exception of government and private 
bonds, which are regulated by the BCB. 252 Administrators of stock exchanges and of organized 
over-the-counter platforms, as well as some market associations, have been granted self -regulator y 
power and are considered auxiliary entities of the CVM.253 
4.177.   No changes had been made to the main laws governing the securities market since  2017.  
Activities and products related to public offering of securities, tender offers, intermediation or 
brokerage a s regards trading involving securities or derivatives, clearing and settlement of such 
 
252 The main legislation includes Law No.  6,385/76 (the Securities Law) and Law No.  6,404/76 (the 
Corporation Law) as amended by Law No.  10,303 of 31  October  2001 and Law No.  10,411 of 
26 February  2002; and Law No.  11,638 of 28  December  2007. More information on regulatory, institutional , 
and procedural matters in this area is available in WTO document WT/TPR/S/283/Rev.1, 26  July 2013.  
253 WTO document WT /TPR/S/358/Rev.1, 18  October  2017.  
0%10%20%30%40%50%60%
Jan-16
July-16
Jan-17
July-17
Jan-18
July-18
Jan-19
July-19
Jan-20
July-20
Jan-21
July-21
Jan-22Lending rate
Deposit rate
Interest spread
Source:     IMF, International Financial Statistics online information.Chart 4.[BRA]   Interest rate spread (%), January 2016 to January 2022WT/TPR/S/ 432 • Brazil  
 
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  operations, investment funds, and securitization, among others , are regulated and subject to 
registration and authorization.254 
4.178.   A Financial Transaction Tax (IOF) on capit al for investment in equity and debt securities 
remains in place to reduce the volatility, and to correct imbalances in the foreign exchange market; 
it is levied on financial transactions on foreign exchange conversions (IOF -FX) and transactions 
involving bonds and securities (IOF -Securities). Currently, the IOF rates on the investments of 
non-resident investors in the financial and capital markets are all zero.  
4.179.   In September 2021, the IOF rate was increased to fund the social programme Auxílio Brasil . 
The n ew daily rate for corporates increased from 0.0041% (referring to the annual rate of 1.50%) 
to 0.00559% (referring to the annual rate of 2.04%), and for individuals, the current daily rate 
jumped from 0.0082% (referring to the annual rate of 3.0%) to 0.011 18% (referring to the annual 
rate of 4.08%). These rates reached the credit operations whose events occurred between 
20 September 2021 and 31  December  2021. As of 2022, the rates decreased back to 0.0041% for 
companies and 0.0082% for citizens. The Governm ent had zeroed the IOF rate on loans 
from 3 April 2020 until 26  November  2020, and from 15 until 31  December  2020 to facilitate access 
to credit during the COVID -19 pandemic, but reinstated the tax at the beginning of 2021.  
4.180.   No distinction is made between financial institutions on the basis of origin, as institutions 
registered in Brazil are considered local entities. Foreign investors have access to all the investment 
products available to domestic investors, including forwar d, futures, and options contracts of farm 
products.255 Foreign investors receive national tax treatment in relation to operations in the financial 
and capital markets.  
4.4.3.2   Insurance  
4.181.   In 2020, the contribution of insurance activities to GDP stood at 4%, up from 3 .29% in  2015. 
Despite rapid growth over recent years, Brazil's population remains underinsured, premiums rose 
from BRL 289.5  billion  in 2020 and to BRL 306.3 in 2021.256 Between 2017 and 2020, insurance 
companies' assets, in USD, shrunk from USD  58.9 billion to USD  44.3 billion  owing to the 
real's  depreciation and the effects from the pandemic . According to the "World Insurance" (Swiss 
Re Institute), the insurance market in Brazil ranked 14th in the world ranking in 2019 in terms of 
total premium issuance (l ife and non -life). Market concentration in the insurance industry, albeit still 
high, was slightly reduced; in 2020, the market share of the five largest companies in the industry 
stood at 33% in terms of direct premiums, as compared to 38% in 2002 and 34%  in 2010. The 
same analysis covering economic groups instead of companies show s a higher concentration, where 
the five largest economic groups account for 43% of market share in 2020.257 Bancassurance plays 
a significant role, particularly in life business;  many larger banks (e.g. Banco Bradesco, 
Itaú Unibanco, Santander , and public banks such as Banco do Brasil and Caixa Econômica Federal ) 
continue to offer a full range of insurance services, whereas large stand -alone insurers 
(e.g. Brasilseg, Porto  Seguro,  Mapfre Spain, Tokio  Marine, Allianz Seguros, Zurich Santander Brasil, 
Zurich  Minas  Brasil, and Liberty Seguros) tend to dominate non -life insurance. Stand -alone insurers 
such as Porto  Seguro and Mapfre have access to Bancassurance distribution channels th rough 
corporate arrangements/cross -ownership.  
4.182.   By the end of 2021, there were 124 insurance companies, 14 local reinsurers, and 
33 admitted reinsurers registered in Brazil before the SUSEP,  compared to 118, 16 , and 36 in 2016, 
respectively.  
4.183.   As of December 2021, considering 72 occasional reinsurers in addition to the local and 
admitted reinsurers, 119 reinsurance companies in total were authorized to do business in Brazil, as 
compared to 133 in late 2016. IRB  Brasil Re, the sole provider of reinsura nce in Brazil until 2007, 
remains the top reinsurer operating in the country.  In 2021, there were 45 foreign -owned companies 
 
254 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
255 Resolution CMN 4,373, 29  September  2014.  
256 Premium expenditure in OECD countries is typically 7% -12% of GDP. EIU (2022), Industry Report  – 
Financial Services  – Brazil , 26 April. 
257 Superintend ence of Private Insurance  (SUSEP), 9 º Relatório de Análise e Acompanhamento dos 
Mercados Supervisionados . Viewed at: http://www.susep .gov.br/menuestatistica/SES/relat -acomp -mercado -
2021.pdf . WT/TPR/S/ 432 • Brazil  
 
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  with a market share of 17% (life insurance) and 58% (non -life insurance). The number of 
foreign -owned reinsurers was 114 (33 admitt ed, 72 occasional, 9 local) with a market share of 67%, 
including retrocessions from other reinsurers. Insurance companies are precluded by law from 
engaging in other financial activities; nevertheless, they may provide more than one type of 
insurance serv ices and may hence be composite (life and non -life insurer).  
4.184.   Premiums in insurance of persons is the largest segment accounting for BRL 177 billion  
in 2021; followed by damage insurance at BRL 90.2 billion  for which automobile coverage accounts 
for nearly half. The sector was boosted by the obligation of vehicle owners to carry liability insurance. 
Premiums for investment -linked policies reached BRL 24.2 billion , while other types of retirement 
savings – including Planos Gerador de Benefício Livre  (PGBLs) pension schemes – accounted for 
around BRL 15 billion .258 
4.4.3.2.1   Institutional framework  
4.185.   No changes were made to the institutional framework of the insurance industry since 2017. 
The Federal Government has the resp onsibility for formulating insurance policy, as well as for 
establishing standards and overseeing operations in the national insurance system (SNSP). The 
National Council of Private Insurance (CNSP) remains the main body responsible for setting policies 
for the private insurance industry, including establishing the characteristics of the various insurance 
contracts, and for the regulation of the national private insurance system. SUSEP, an autonomous 
body under the M E, is in charge of the control and superv ision of insurance, reinsurance, open 
private pension funds, and capitalization (investment plans) and brokerage operations. 
SUSEP  implements the CNSP policies. SUSEP signed MoUs with the Federal Insurance Office (FIO) 
of the United  States and with Argenti na, and a multilateral MoU ( MMoU ) with the International 
Association of Insurance Supervisors (IAIS) through which it can cooperate and exchange 
information with all other signatories (currently 77 insurance supervisors). In 2015, SUSEP was 
granted provisi onal equivalence to Solvency II (article 227) by the European Insurance and 
Occupational Pensions Authority (EIOPA), a step towards full equivalence.259 In 2022, SUSEP will 
become a signatory to the MMoU of Assal (Asociación de Supervisores de Seguros de 
América Latina).  
4.4.3.2.2   Regulatory framework  
4.186.   During the review period, the legal framework for insurance remained largely unchanged.260 
CNSP Resolutions and SUSEP Circulars regulate the industry's operational activities. Insurance 
companies are precluded by law from  engaging in other financial activities; nevertheless, they may 
provide more than one type of insurance service and may hence be composite (life and non -life). 
Bancassurance remains the main distribution channel of insurance in Brazil. The only exceptions 
apply to health insurance companies, which must be specialized; life insurance companies, which 
may deal in open pension funds; and reinsurance companies. Insurance policies issued by insurers 
belonging to the same economic group, such as banks, are common ly sold inside bank branches as 
part of the services mix offered therein.  
4.187.   In July 2021, SUSEP published Resolution No. 11/2022 with its Regulatory Plan for 2022. 
Among other  things, it sought to continue the process of simplifying the regulation of the sec tor, 
reducing complexity and costs of the regulatory framework, in addition to adhering to the best 
international practices, stimulating the development of the insurance market , and adopting an 
increasingly less prescriptive and more principled approach. T hese included rules that deal with 
reinsurance and retrocession operations (including assignment limit), co -insurance operations, 
operations in foreign currency , and insurance contracts abroad. For transport group insurance, the 
revision of current norms  and the consolidation of regulations on carrier's civil liability insurance 
were envisaged. In the field of rural insurance, SUSEP proposed revisions to Decree No.  5,121/2004, 
 
258 EIU (2022), Industry Report – Financial Services – Brazil , 26 April. 
259 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
260 The main legislation includes Decree Law No.  73/ 1966, as modified by Decree  No. 60,459/1967, 
Decree Law No.  261/1967, Law No.  10,190/2001, Supplementary Law No.  109/2001, Supplementary 
Law No. 126/2007, and Law No.  12,249/2010.  WT/TPR/S/ 432 • Brazil  
 
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  along with revisions to personal insurance plans, house insurance, and open suppl ementary pension 
plans to meet the needs of consumers and further competition in the sector.261 
4.188.   All insurance, local reinsurance (see below), capitalization/investment, and private pension 
fund companies remain subject to a supervisory fee ( Taxa de Fiscalização dos Mercados de Seguro 
e Resseguro, de Capitalização e de Previdência Complementar Aberta ); the fee increases in line with 
the margin of solvency whereas for admitted reinsurers there is a single fee per supplier. Insurance 
companies must pay a (higher) fee for the head office and for each risk location.262 
4.189.   Insurance brokers must register with SUSEP after passing a technical exam. New insurance 
products do not require SUSEP's prior approval (except for large risks263) but they should be 
submitted  for analysis and filing prior to their marketing. Life insurance products that offer survivor 
coverage and annuities, as well as capitalization plans and open pension products, require prior 
approval from SUSEP. SUSEP may suspend any product that is found  not to comply with the 
industry's regulatory framework or specific provisions thereof, including technical flaws. The number 
of new products submitted to SUSEP and those rejected could not be provided by the authorities.  
4.190.   Market access conditions remained unchanged, except for improvements in reinsurance 
(see below). Establishment of a foreign life or non -life insurance company, be it  a locally 
incorporated company or a subsidiary, requires prior approval from SUSEP, whose authorization 
ensures the granting  of national treatment to the foreign company concerned. The number of 
registration approvals and rejections could not be provided by the authorities. Foreign insurance 
companies providing insurance of any kind, including reinsurance, can be incorporated u nder 
Brazilian law in the form of a legal entity. Direct branches of foreign insurance companies require an 
additional level of approval by the Federal Government and must follow the same regulatory rules 
as locally incorporated companies, including capita l requirements.  
4.191.   Solvency capital requirements for insurance, reinsurance companies , and open pension funds 
are defined by CNSP Resolution No. 432/2021 and vary according to the region of operation, the 
type of activity , and standard risk -based model . Accor ding to the authorities, there continued to be 
no barriers to the domestic trade of insurance services as long as a company complies with these 
solvency capital requirements.264 
4.192.   The contracting of insurance abroad by resident natural persons or legal person s established 
in Brazil is allowed to cover risks for which there is no provision of insurance in Brazil, provided that 
this represents no violation of existing legislation; cover risks abroad where the insured is a resident 
natural person in Brazil, for w hich the term of the insurance contract is limited exclusively to the 
period in which the insured person is abroad; and insurance policies that are the subject to 
international agreements ratified by Brazil. Supplementary Law No . 126/2007 continued to allo w 
Brazilian legal persons to contract insurance abroad to cover risks abroad upon notification 
to SUSEP.265 
4.193.   A new approval system for innovative insurance services and products has been 
implemented since 2020, known as regulatory sandbox in insurance, allow ing differentiated 
regulatory requirements during a determined time period under tight scrutiny by SUSEP.266 
4.194.   Since December 2021, Brazil has been implementing the "Open Insurance" policy to allow 
the sharing of consumers' information among different compani es authorized or accredited by SUSEP 
by sharing data and services through openness and systems integration. At phase 1, from 
December  2021 to June 2022, implementation of the sharing of services offered and clients 
communication channels was possible. At p hase 2, from September 2022 to June 2023, 
implementation of the sharing of personal data of customers or services within the scope 
of "Open  Insurance", conditional to the prior consent of the respective customers. For phase 3, from 
 
261 Viewed at: https://www.gov.br /economia/pt -br/orgaos/orgaos -colegiados/conselho -de-recursos -do-
sistema -nacional -de-seguros -privados -de-previdencia -aberta -e-de-capitalizacao/acesso -a-
informacao/noticias/2022/susep -aprova -plano -de-regulacao -de-2022. 
262 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
263 SUSEP Resolution No. 407/2021.  
264 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
265 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
266 CNSP Resolution  No. 381/2020 . WT/TPR/S/ 432 • Brazil  
 
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  December 2022 to June 20 23, implementation of the Open Insurance services, including portability, 
modifications , and other actions as envisaged in the main policy.267 
4.195.   Other regulatory improvements included the possibility of issuing subordinated debt268, use 
of remote means (insura nce contracting via mobile applications)269, market conduct practices270, 
and flexibilization of non -life retail insurance.271 
4.4.3.2.3   Reinsurance  
4.196.   Brazil accounts for 39% of Latin America's reinsurance market, and the volume of business 
written in Brazil is expected to grow as the Government invests in energy projects and infrastructure 
upgrades, along with growing middle class, which should require huge reinsurance capacity to 
sustain the primary market .272 As at December 2021, 119  reinsurance companies were authorized 
to do business in Brazil (161 in 2015), of which 14 were local and 105 foreign -owned ( 33 registered 
as admitted and 72  as occasional, compared to 145 in late 2015).  
4.197.   Since 2007, the reinsurance  business has been open to private reinsurance companies, 
including foreign -owned and foreign -based companies.273 In 2017, new regulations facilitated for 
international players entering the Brazilian reinsurance market through the elimination of 
four classe s of business from minimum insurance retention requirements. Also mandatory 
placements with local reinsurers were eliminated , as well as limits on intra -group cessions .274 
Since  2019, a 95% cession from local reinsurers to foreign -owned companies  has been 
established .275 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.277 
4.198.   IRB Brasil Re, the former state monopol y reinsurer, continues to dominate the segment with 
a market share of 48% of reinsurance premiums ceded by insurers in 2021 , followed by Munich Re 
do Brasil Resseguradora, Mapfre, Austral, Allianz, Swiss Re, Scor, Zurich, Junto, Chubb Resseguros, 
and Lloyd 's.278 IRB Resseguros also has a market share of 25% of total reinsurance premiums 
(i.e. ceded to local, admitted , and occasional reinsurers) , followed by Munich Re do Brasil 
Resseguradora, Mapfre Reaseguros, Austral, Lloyd 's, Scor , and Allianz.  
4.4.4   Telecommunications  
4.199.   Telecommunications market and information services (including telecom, computer, and 
broadcasting services) accounted for 3.5% of gross value added in 2020 compared with 3.4% 
in 2017 (Table  1.2). In 2022, Brazil continued a s the world's fourth -largest mobile telephony market 
on a subscription basis (behind China, the United  States , and India). As elsewhere in Latin America, 
the introduction of pre -paid cards has been a major spur to deeper mobile -phone penetration; 
neverthel ess, the share of pre -paid subscriptions has fallen from above 80% in 2004 -12 to 70% 
in July 2016 and then to 46.6% in January 2022. As of August 2021, the number of mobile telephony 
users, 258.3  million, roughly registered the same levels of 2015, 257.8  million. 4G technology 
accounted for 77.5% of active mobile subscriptions on the network, followed by 11.1% for  3G 
and 10.8% for 2G (September 2021). During the review period, the number of fixed broadband 
service users continued to increase (17%) and in 20 22 there were 40.8  million access points. 
Fixed -line telephony penetration continued to fall steadily from 20.1 per 100 people in 2007 to 
14.9 per 100 in 2015 and then to 13.2 per 100 in 2022; this has occurred on the back of cheaper 
 
267 Viewed at: https:// openinsurance.susep.gov.br/ . 
268 CNSP Resolut ion No. 391/2020.  
269 CNSP Resolution No. 408/2021 . 
270 CNSP Resolution No. 382/2020.  
271 SUSEP Circulars No. 620/2020, No. 621/2021 , and No. 639/2021 . 
272 EIU (2022), Industry Report – Financial Services – Brazil , 26 April 2022.  
273 Supplementary Law No.  126, 15 January 2007.  
274 A cession is the portion of insurance transferred to a reinsurer by the ceding company. 
CNSP  Resolution No.  322, 20 July 2015.  
275 Decree  No. 10,167/2019.  
276 CNSP Resolution 396/2020.  
277 CNSP Resolution 407/2021 . 
278 EIU (2022), Industry Report – Financial Services – Brazil , 26 April. WT/TPR/S/ 432 • Brazil  
 
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  mobile -phone technolog y and services, a particular driver of telephony penetration among 
low-income users.279 
4.200.   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)/América 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/América Móvil , a transaction that was approved by the Administrative Council for Economic 
Defen se (CADE ) in the end of 2021 .280 Oi will keep its fibre network 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.  
4.201.   As of Ja nuary 2022, the fixed -line market consisted of 172 operators (32 in 2012 and 
65 in 2015), and was dominated by Claro (formerly Embratel) (30.7%), Oi  (formerly 
Telemar)  (30.1%), Vivo (Telefonica) (26.2%), Algar (Telecom) (4.7%), and TIM (Telecom 
Italia)  (2.8%). The mobile telephony market, consisting of 11 operators (18 in 2012 and 20 in 2015), 
continued to be dominated by Vivo (33%), Claro (27.8%), TIM (20.3%), Oi (16.3%) , and 
Algar (1.5%). The number of companies authorized to supply fixed broadband servic e stood at 
6,922 operators in 2021 (1 ,725 in 2012 and 3 ,223 in 2015), and continued to be dominated by 
Claro (23.9%), Vivo (15.5%), and Oi (12.6%).282 
4.202.   In 2021, Brazil carried out the largest radio frequency tender in its history on the 5G mobile 
telephony t echnology. 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 
highways); deployment of fibre -optic backhaul in 530 municipal seats; and investment reaching 
BRL 3.1 billion for public school connectivity.283 
4.203.   In 2020, the number of active mobile -broadband subscriptions per 100 inhabitants 
reached 90 (compared to an average of 67.5 across all developing countries), while that of fixed 
broadband subscriptions increased to 17 (compared to 12.1 for developing countries). The 
percentage of the Brazilian population using the Internet reached 81% in 2 020, up from 41% in  2010 
and 58% in 2015. While ICT prices have generally declined in recent years, the price of a fixed 
mobile basket , expressed as a percentage of GNI has increased during the COVID -19 pandemic, 
from 1.43% in  2018 to 3.49% in 2021. The av erage for countries in the Americas was 5.13% of GNI 
in 2021, while the world average was 2.98%. For their part, the prices for mobile data and voice 
baskets (high consumption) have decreased, from 1.8% to 1.05% of GNI, over the same period. 
The average fo r countries in the Americas was 3.91% of GNI in 2021, while the world average 
was 2.86%.284 
4.4.4.1   Policy and institutions  
4.204.   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.285 Its Management Plan 2021 -22 prioritized the set objectives: (i) promote 
improved performanc e 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 sectoral regulation; (vi) improve transparency and social 
participation; (vii) develop strategic management; (viii) intensify and improve the use of IT in 
 
279 EIU (2022), Industry Report – Telecommunications – Brazil , 17 March . 
280 Oi's mobile operation assets, such as spectrum, network elements , and users were transacted , but 
not the company itself. The operation was also approved by ANATEL regarding the regulatory aspects.  
281 EIU (2022),  Industry Report – Telecommunications – Brazil , 17 March . 
282 Agência Nacional de Telecomunicações (ANATEL ), Panorama . Viewed at: 
https://informacoes.anatel.gov.br/paineis/acessos/panorama . 
283 Agência Nacional de Telecomunicações (ANATEL ) (2022), Relatório Anual 2021 . 
284 ITU, Statistics . Viewed at: https://www.itu.int/en/ITU -D/Statistics/Pages/stat/default.aspx . 
285 Viewed at: https://www.gov.br/anatel/pt -br/acesso -a-informacao/acoes -e-programas/planejamento -
estrategico . WT/TPR/S/ 432 • Brazil  
 
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  regulation; (ix) ensure adequate infrastructure and facilities; (x) promote management by results; 
and (xi) secure resources and strengthen budget management.286 
4.205.   The Ministry of Communications, through the Secretariat of Telecommunications, is the 
federal body responsible for policy formulation and planning for the sector.287 The National 
Telecommunications Agency (ANATEL), the sector's administratively independent and financial ly 
autonomous regulator, is responsible for policy implementation, licence regulation, overseeing 
incumbents' operations, managing the electromagnetic spectrum, certifying telecommunications 
equipment, and protecting consumers' rights. It also has the lega l authority to review and control 
retail prices of fixed telephony services under the public service regime as well as to approve mergers 
in the sector from a regulatory perspective, whereas competition issues per se are analy sed 
by CADE  (the competition a uthority).288 
4.4.4.2   Regulatory and operational framework  
4.206.   During the review period, t he major changes were the r evision of the General 
Telecommunications Law (LGT) in 2019 , implementing the possibility of changing the 
telecommunications service concession contract s to an authorization regime and the possibility of 
successive extension of the grants.289 In 2020, the concession instrument for authorization of 
telecommunications services  was revised , as were other extension and transfer s of authorizations 
for radio fre quencies, in addition to granting telecommunications services and rights to operate 
satellites.290 Also in 2020, the regulation of the G eneral Antenna Law (Law No.  13,116) establish ed 
rules for deploy ing and sharing of telecommunications infrastructure, and for simplifying and 
harmonizing rules to promote the expansion of network coverage.  It is an important milestone for 
the advancement of 5G in Brazil.291 In 2020, the r evision of the Law on the Fund for Universalization 
of Telecommunications Services (FUST) through modernization of the fund's application rules and 
guidelines for promotion of broadband Internet connection.292 Decree No. 9,612/2018 on the 
5G Public Notice and establishing guidelines for cond ucting the spectrum auction for 5G networks, 
as well as the commitments of the offsets linked to the concessions with a view to  universal coverage 
of telecommunications services.293,294 
4.4.4.3   Interconnection  
4.207.   Network interconnection under non -discriminatory conditi ons and at reasonable rates 
continued to be mandatory for the provision of public telecommunication services.295 
Cross -subsidization, discriminatory discounts, abusive behaviour, and other anti -competitive 
practices are prohibited.296 ANATEL sets the interco nnection prices for the public service regime 
operators and operators with significant market power (SMP) under cost -oriented methodologies.297 
4.4.4.4   Domestic support  
4.208.   In 2020, the changes in the use of the FUST , previously restricted to fixed telephony, are 
now a lso to be applied in other telecommunications services, such as fixed broadband and mobile 
 
286 Viewed at: https://www.gov.br/anatel/pt -br/acesso -a-informacao/acoes -e-programas/planejamento -
estrategico/plano -de-gestao . 
287 The Ministry of Communications was re -created in 2020 after being detached from the Ministry of 
Science, Technology, and Innovation.  
288 WTO document WT/TPR/S/358/Rev.1, 18  October  2017. 
289 Law N o. 9,472/97 updated by Laws N o. 13,879/2019 and No. 14,173/2021.  
290 Decree  No. 10,402/2020.  
291 Decree  No. 10,480/2020.  
292 Law No. 9,998/2000 revised by Law No. 14,109/2020 and Law No.  14,173/2021.  
293 Decree No.  9,612/2018 with its amendments and regulations.  
294 More information on the issues discussed in this section is available in WTO document s 
WT/TPR/S/283/Rev.1, 26  July 2013; and WT/TPR/S/358/Rev.1, 18  October  2017. 
295 Law No. 9,472/97 , Articles 146, 147 , and 152.  
296 General Regulation on Interconnection, annexed to ANATEL Resolution No.  693 of 17 July 2018.  
297 Criteria for defining "significant market power" are established in ANATEL Resolution No.  438 of 
10 July 2006.  According to the authorities, ANATEL does not control interconnection tariffs in a direct manner 
in the context of private service regimes. When service suppliers are unable to resolve negotiation disputes, 
they can resort the matter to ANATEL, which may set terms f or settling the dispute.  WT/TPR/S/ 432 • Brazil  
 
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  telephony. These changes  included the obligation to provide all Brazilian public schools with 
broadband Internet access with resources from  FUST by 2024.  
4.209.   The Contrib ution for the Promotion of Public Broadcasting (CFRP), the Contribution for the 
Development of the National Film Industry (CONDECINE) , and the Inspection Fee of 
Installation  (TFI), which makes up the Telecommunications Inspection Fund (FISTEL) , had been 
reduced until the end of  2025. The measure is valid for stations in small plots of land controlled by 
a central station, known as antennas or VSAT stations, used to connect to the Internet via satellite. 
The Functioning Inspection Fee (TFF) was also reduced for these stations.  
4.210.   Furthermore, Law No. 14,172/2021 allocated BRL 3.5 billion  to the states and the 
Federal  District to guarantee access to the Internet for educational purposes, targeting teachers and 
students of basic education in the public education system. To receive the benefit with resources 
from FUST, the student must belong to a family registered in the Single Registry for Social 
Programmes of the Federal Government ( CadÚnico ) or be enrolled in schools in indigenous 
or quilombola  commun ities. 
4.211.   Law No.  14,351/2022 established the Internet Brazil Programme within the Ministry of 
Communications with the purpose of promoting free access to the Internet in mobile broadband to 
basic education students of the public education system, as well as to families enrolled in the 
Single  Registry for Social Programmes of the Federal Government.298 
4.212.   Law No.  14,180/2021 instituted the Innovation Education Connected Policy with the 
objective of supporting the universalization of high -speed Internet access and promoting the 
pedagogical use of digital technologies in basic education. The policy envisages financial support 
including with resources from FUST, which may occur through the transfer of resources to states, 
the Federal District, municipalities , and scho ols to purchase an Internet access service, electronic 
devices , and licences for digital educational resources.  
4.213.   The Integrated and Sustainable Amazon Programme ( Programa Amazônia Integrada 
e Sustentável  (PAIS)) enabled the construction of the Federal Publi c Administration's Private 
Communication Network resources for the implementation of fibre -optic transport networks in the 
Northern Region. The resources from the 26 GHz band authorizations will be allocated to public 
school connectivity projects to be def ined through the Group for Monitoring the Costing of School 
Connectivity Projects (GAPE).  
4.214.   The Connected Amazon Project (PAC) aims to launch optical sub -fluvial cables, bringing 
high-capacity transport infrastructure to connect dozens of municipalities in t he Amazon Region. 
Schools, hospitals, judicial courts , and public security and national security agencies will be served 
and are part of the North Connected Programme. ANATEL will monitor, through the Monitoring Group 
for the Implementation of Solutions fo r Interference Problems in the 3,625 to 3,700 MHz  band 
(Gaispi), the implementation of six more Infovias on the rivers of the Amazon, totalling 9,000  km of 
sub-fluvial optical cables.  
4.215.   The Broadband in Schools Programme (PBLE) started in April 2008, after the signature of 
Addendums to the Authorization Terms for the exploitation of fixed broadband service 
between  ANATEL and the local fixed telephony concessionaires. The main obligation a ssumed by the 
companies was to connect all urban public schools to the Internet, free of charge, until 
December  2025. In the PBLE, each urban school must be served with broadband at a speed 
equivalent to the best offer commercially disseminated to the publ ic or, at least, with 2  Mbps when 
provided by terrestrial medium technology and 500 Kbps when provided by satellite. The 
management of the programme is carried out jointly by ANATEL, the Ministry of Education, in 
partnership with the Ministry of Communicat ions, and with the state and municipal education 
secretariats. ANATEL is responsible for monitoring the programme implementation. The programme 
counted, in  November 2021, almost 65 ,000 urban public educational institutions connected to 
the Internet.  
 
298 Agência Brasil  (2021), "Provisional Measure that Creates the Internet Brazil Program Published", 
8 December. Viewed at: https://agenciabrasil.ebc.com.br/en/educacao/noticia/2021 -12/provisional -measure -
creates -internet -brazil -program -published . WT/TPR/S/ 432 • Brazil  
 
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  4.216.   Pursua nt to Decree No. 10,610/2021, which approved the General Goals Plan for 
Universalization of the Fixed Telephone Service Commuted Provided in the Public Regime  (PGMU  V), 
ANATEL made available a subsidy on the existence of high -capacity telecommunications ne twork 
infrastructure used in the provision of telecommunications services (backhaul) in municipalities that 
did not have fibre -optic backhaul infrastructure.  
4.217.   In 2021, ANATEL raised BRL 1.3 billion  for FUST , BRL 3.56 billion  for the Telecommunications 
Inspe ction Fund (FISTEL)299, and BRL 223.6  million  for the Contribution for the Promotion of Public 
Broadcasting (CFRP).  
4.218.   To achieve its policy objectives, the Government uses its 2012 Geostationary Satellite 
Defence and Strategic Communications ( Satélite Geoestacionário de Defesa e Comunicações 
Estratégicas  (SGDC )) project , which implemented via Visiona Tecnologia Espacial  a joint venture 
between Embraer (51%) and Telebras (49%).300 The satellite was launched on 4  May 2017 providing 
for high -speed broadband  Internet connection in 100% of the Brazilian territory.  
4.219.   According to the authorities, the  2012 National Broadband Programme Special Taxation 
Regime (REPNBL) with local content requirements was terminated on 31  December  2016.  
4.220.   Since December 2018, governmen t agencies are no longer required to procure email, 
file-sharing, teleconferencing , and Voice-over-Internet -Protocol (VoIP) services from SERPRO, 
Brazil's Federal Data Processing Agency.301 According to the Ordinances  No. 141 and No. 54 of the 
former  Minist ry of Planning, Budget and Logistics , access to the source code for hardware and 
software used in the Federal Government's email, file -sharing, teleconferencing, and VoIP solutions 
may be required.302 
4.4.4.5   Number portability  
4.221.   Number portability has been requir ed since 2007.303 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 B razilian 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 bo ard. 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.305 
4.4.4.6   Tariffs  
4.222.   Under the LGT, ANATEL reviews and controls the retail prices of fixed telephony services 
rendered by the companies operating under the public service regime (see above). It sets maximum 
rates for the basic service plan, although concessionaries may still offer alternative plans on a 
non-discriminatory basis. Prices for local, national, and international long -distance c alls are subject 
to specific regulations. No retail price caps for mobile telephony or for fixed telephony provided 
under the private service regime are in place; caps are only fixed under the public service 
regime  (i.e. public concession). Cross -subsidiza tion between different services or user markets is 
prohibited. Telecom operators under the private service regime are free to set retail prices for their 
services. The cost of wholesale (carrier -to-carrier) leased lines up to certain capacities is also 
 
299 The F ISTEL  Law (Law  No. 5,070/1966) determines the charge of BRL 26.83 whenever a new cell 
phone com es into operation and that one third of this amount is paid annually for the operation of the device.  
300 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
301 Decree  No. 9,637/2018 revoked Decree  No. 8,135/2013 . 
302 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
303 ANATEL Resolution No.  460, 3 March  2007.  
304 TechinBrazil , Telephone Number Portability in Brazil . Viewed at: http://techinbrazil.com/teleph one-
number -portability -in-brazil . 
305 Available at:  https://www.abrtelecom.com.br/numeros -portabilidade/total -geral. WT/TPR/S/ 432 • Brazil  
 
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  regulated by ANATEL as well as certain interconnection charges when involving suppliers 
with SMP.306 
4.223.   Strong market competition continued to lead to further improvements in the quality of 
service and to reductions in tariffs. According to the International Tele communications Union's  ICT 
Price Basket (IPB) index, in 2019 Brazil's average prices for low usage voice and data 
(70 min + 20 SMS + 500  MB) represented 1.8% of GNI per capita (4.8% in 2010 and 1.8% in 2014) 
and Brazil ranked 79th out of 179 countries.307 Between December 2017 and January 2022, the 
average price per minute for calls from fixed -line to fixed -line rose by 19.26% (from BRL 0.07562 
to BRL 0.09019); the rates on local and long -distance calls made from fixed to mobile phones were 
varied from BRL 0.21100 in 2017 to BRL 0.22809 in 2021. In 2021, ANATEL authorized fixed 
telephony tariff adjustments of 11.68%.  It is estimated that the average price per minute of mobile 
phone calls fell by 37.48% (from BRL 0.14 to BRL 0.09) from 2017 to 2021. Between 20 17 and  2021, 
the average monthly broadband prices for GB consumed also dropped by 47.53% (from BRL 0.75 
to BRL 0.39).  
4.4.4.7   Competition -related issues  
4.224.   ANATEL is responsible for approving mergers in the telecommunications sector from 
a regulatory perspective. The  General Plan of Competition Goals addresses the asymmetric 
obligations placed on groups deemed to have SMP in identified relevant markets. In  2018, it was 
updated and established a new regulatory framework based on asymmetric measures applied where 
there is a high probability of the exercise of market power by an economic group holding SMP, 
according to its degree of competition in categorized geographic areas. ANATEL will reassess the 
Relevant Markets and asymmetric Regulatory Measures, as well as the hol ders of SMP, every 
four years. It may also, ex officio  or at the request of the interested party, modify the Asymmetric 
Regulatory Measures as long as they are submitted to Public Consultation.308 Another condition for 
reassessment occurs when the original measure is deemed inefficient. During the review period, 
ANATEL dealt with 147  proceedings involving interconnection  issues.  
4.225.   The level of concentration in the mobile telephony market measured by number of operators 
in Brazil and by the Herfindahl -Hirschman  Index  (HHI) Index show less concentration as compared 
to other countries in Latin America.309 
4.4.4.8   Universal Service Obligations  
4.226.   Universal Service Obligations (USO) continue to apply to telecommunication s operators 
under the public servi ce regime (i.e. the incumbents of local fixed telephony services), which must 
meet the goals established by the legislation.310 
4.227.   The 5th General Plan of Goals for the Universalization of the Fixed Commuted Telephone 
Service Provided in the Public Regime (PGMU V) came into force in January 2021 determining the 
obligation on fixed telephony concessionaires to implement fibre -optic backhaul ( transport network) 
in municipalities, isolated urban areas , and rural agglomerations that do not yet have this 
infrastructure, reaching 100% of the locations before 31  December  2024. On the other hand, 
PGMU  V revoked the obligation to install 4G antennas i n 1,473 locations, which was provided for in 
PGMU  IV. The PGMU  V also provided  that the locations  that would  be served  by fixed wireless  access  
system  for the Fixed  Commuted  Telephone  Service  under  previous  PGMU  IV will be prioritized  for 
mobile  telephony  in biddings  for the radio frequency  bands  of 700 MHz, 2.3 GHz, 3.5 GHz, and 
26 GHz (5G Notice).  To date, isolated  and remote  areas  have been reached  only through  the 
implementation  of PGMU  obligations  established  under  the five fixed-line operators  of public service  
regime  concessions  that contain  their investment  targets  in these  areas .311 
 
306 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
307 ITU, ICT Price Baskets . Viewed at: https://www.itu.int/net4/ITU -D/ipb/#ipbcomparison -tab. 
308 Viewed at: https://www.gov.br/anatel/pt -br/regulado/competicao/mercados -de-atacado . 
309 OECD (2020), OECD Telecommunication and Broadcasting Review of Brazil 2020 . Viewed at: 
https://doi.org/10.1787/30ab8568 -en. 
310 Presidential Decree No.  10,610/2021.  
311 FUST funds totalled BRL 1.32  billion  in 2021. From 2017 until June 2022, the Fund has raised 
BRL 5.35 billion . FISTEL funds totalled BRL 3.56  billion  in 2021. Since 2017 until June 2022, the Fund has WT/TPR/S/ 432 • Brazil  
 
- 159 - 
 
  4.4.5   Audiovisual and broadcasting services  
4.228.   Brazil remains Latin America's largest media market and the only Portuguese -speaking 
country on the continent; in 2021, it boasted a  USD 30 billion  media and entertainment 
industry  (M&E).312 Brazil has thousands of radio stations and hundreds of TV channels, both very 
influential media with highly concentrated ownership that are tightly regulated by the 
Government.313 According to the au thorities, there are 632 digital TV generators and 146 analogue 
TV generators. And close to 20 ,000 retransmission stations.  
4.229.   The Broadcasting Secretariat (SERAD), under the Ministry of Communications, is in charge 
of formulating and assessing the implementa tion of public policies, guidelines, objectives , and goals 
related to broadcasting services and their auxiliary services, as well as to propose studies and 
activities aimed at technological innovation in the sector. Quotas on content are determined by 
the Films National Agency (ANCINE), under the Ministry of Tourism.  
4.230.   The digital TV transition scheduled to switch off analogue in 2016 was held off until  2018 
in 1,326  cities, where the analogue shutdown is mandatory for the operation of 4G mobile services 
in the 700  MHz band, whereas the remaining 2,865 cities will have their analogue shutdown 
processes completed by 2023.314 Over 12  million  digital TV set -top boxes were distributed for 
low-income families under the Digitalize Brazil programme, set to in the end of 2023.  
4.231.   The Brazilian public service broadcaster (PSB) is the Empresa Brasil de Comunicação  (EBC), 
with a budget of around USD  178 million  (BRL 650 million ), of which USD  109 million 
(BRL 400 million) is used to operate the network. Resources come from th e Contribution to Foster 
Public Broadcasting ( Contribuição para o Fomento da Radiodifusão Pública ), disbursed by the 
Telecommunications Fund ( Fundo de Fiscalização das Telecomunicações  (FISTEL )). In April 2019, 
EBC unified TV Brasil (the main public channe l in the country) with the government channel TV  NBR 
and rebranded it as the new TV Brasil.315 
4.232.   Investment barriers seemed to continue to make market entry a challenge.316 Foreign 
ownership in " free-to-air" television broadcasting  is limited to 30%, while 80% of the programming 
aired on "free -to-air channels" must be Brazilian. In the subscription television market, including 
satellite and cable television, content quotas require most channels317 to air at least 3.5 hours per 
week of Brazilian programm ing during prime time, with at least half of these productions made by 
independent Brazilian production companies,  thereby creating enormous demand for independently 
produced national content to be acquired or co ‑produced by channels in order to fulfil the  quotas.318 
There are also quotas for Brazilian channels in subscription television,  that is , one third (limited to 
a maximum quota of 12 channels) of all channels included in any television package must be 
Brazilian and specialized in "qualified content", such as films and series. Subscription television 
programmers are also subject to the 11% CONDECINE levy on remittances, which can be waived if 
an amount equal to at least 3% of remittances is invested in local productions.319 
 
raised BRL 12.5 1 billion . So far the revenue collected through FUST and FISTEL has been retained by the 
National Treasury and never been used in USO -related activities. Viewed at : 
https://informacoes.anatel.gov.br/paineis/arrecadacao/ . 
312 Data provided by the authorities.  
313 Free-to-air (FTA) broadcasting services are considered public services in Brazil through a bi dding and 
licensing regime. The broadcasting licences are administered by the Ministry of Science, Technology and 
Innovation (Ministério da Ciência, Tecnologia, Inovações e Comunicações  (MCTIC )) pursuant to the National 
Broadcasting Licensing Plan. A Presi dent's Office approval is needed before final approval by National 
Congress  (Federal Constitution , Article  223). ANATEL then is responsible for authorizing the use of the 
radiofrequency spectrum.  The rights to operate stations dedicated to retransmitting ( Retransmissão de 
Televisão  (RTV)) and to repeat the signal (Repetição de Televisão (RpTV)) produced by a content -generating 
station (television retransmission) are granted by MCTIC. As of 2020, there were 8,470 digital television 
retransmission authori zations and 680  television licences.  
314 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
315 OECD (2020), OECD Telecommunication and Broadcasting Review of Brazil 2020 . Viewed at: 
https://doi.org/10.1787/30ab8568 -en. 
316 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
317 According to the authorities, quotas are applied only on channels with qualified content and not on 
all channels.  
318 Law No.  12,485/2011.  
319 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  WT/TPR/S/ 432 • Brazil  
 
- 160 - 
 
  4.233.   The Federal Government has ded icated many resources to support the domestically filmed 
entertainment sector through the Audio -visual Sector Fund (FSA), with resources from the 
Contribution for the Development of the National Film Industry (CONDECINE). The FSA provides 
resources to the  Programa de Apoio ao Desenvolvimento do Cinema Brasileiro (PRODECINE), the 
Programa de Apoio ao Desenvolvimento do Audiovisual Brasileiro (PRODAV), and the Programa de 
Apoio ao Desenvolvimento da Infraestrutura do Cinema e do Audiovisual (PROINFRA). The in dustry 
also benefits from tax incentives based on the Audio -visual Law320, where companies can support 
different types of audiovisual projects in order to obtain tax reductions. The amount of tax forgone 
was not provided by the authorities.  
4.234.   A fixed tax is levied on each foreign film released in theatres, foreign home entertainment 
products, and foreign programming for broadcast or subscription television; the taxes seem 
significantly higher than the corresponding taxes levied on domestic productions, and are also 
assessed on audiovisual content for advertising. Remittances to foreign right holders of audiovisual 
works are subject to a 15% or a 25% income withholding tax; however, the recipient of that 
remittance may obtain a deduction of 70% of this tax, provided t hat these resources are invested 
in local independent productions . In addition, local distributors of foreign films are subject to a levy 
of 11% of remittances to the foreign producer. This levy, a component of the CONDECINE, is waived 
if the recipient of the remittance agrees to invest 3% of the remittance in local independent 
productions , the same as for subscription TV programming.  
4.235.   All films and television shows must be printed locally, as importation of colour prints for the 
theatrical and television ma rkets is prohibited; audiovisual content distributed in six copies or less 
does not need to be printed locally.  Domestic film quotas also exist for theatrical screening and 
home  video distribution.321 
4.236.   Brazilian audiovisual titles included in over -the-top (O TT) libraries are increasing.322 Netflix 
ordered the production of 11 original Brazilian titles by 2019 and announced the development of 
40 projects in 2022 . Amazon Prime ordered its first original Brazilian title in 2019  and has continued 
to announce new p roductions since then. HBO MAX  is investing in new formats based on Brazilian 
popular soap operas . Brazilian movies represented about 6.3% of the movie librar ies on the 
seven  largest OTT platforms. Meanwhile, Brazilian series accounted for 23.1%.323 
4.237.   The Cul tural Incentive Law (Law No. 8,313/91), known as Rouanet Law, the main 
mechanism for promoting culture in Brazil and for the production of creative activities, was simplified 
from approval process to accountability in order to reduce bureaucracy and expand  the cultural 
sector. Targeting the financing of smaller and widespread cultural incentives, the ceiling for support 
was reduced from BRL 1 million  to BRL 500,000, while the new artist ceiling was set at BRL 3,000 
for each approved project. This shift sought to increase the number of projects in different parts of 
the country.324 
4.238.   Competition in the telecommunication s sector is protected and promoted via  ex ante  sectoral 
regulation and  ex post  antitrust regulation.  
4.4.6   Transport  
4.239.   During the review period, the share of transport (including storage and courier) in total trade 
in services remained stable, 4.3% in 2017, 4.4% in 2018, 4.5% in 2019 , and 4.3% in 2020 
(Table  1.2). In 2020, transport services accounted for 17% (13 % maritime, 3.5% air, 0.5% road) 
of services imports and 18% (15% maritime, 2% air, 1% road) of services exports. 
 
320 Law No.  8,685/93.  
321 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
322 Currently, t here is no local content quotas applicable for OTT services.  
323 OECD (2020), OECD Telecommunication and Broadcasting Review of Brazil 2020 . Viewed at: 
https://doi.org/10.1787/30ab8568 -en. 
324 Viewed at: https://www.gov.br/pt -br/noticias/cultura -artes-historia -e-esportes/2022/02/governo -
federal -divulga -novas -regras -da-lei-de-incentivo -a-cultura . WT/TPR/S/ 432 • Brazil  
 
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  Brazil's  merchandise export transportation mix is as follows: 88.4% maritime , 5.3% air , 5.3%  road, 
0.1%  river, and 0.1% rail.325 
4.240.   According to t he last edition of the World Bank's Logistics Performance Index  for 2018 -19, 
in terms of quality of infrastructure Brazil ranked 56th out of 160 countries.326 
4.241.   Road transportation by truck is still the primary method of transport for goods 
domestically.  Around 61% of cargos transportation is by highway, 21% by rail, 12% by cabotage, 
4% by pipeline, 2% by waterway , and less than 1% by air.327 Logistics costs are estimated at 
around  12% of Brazil' s GDP (4% more than in the United  States), resulting in approximately 
USD 845 million  in extra logistics costs.  According to the World Bank, logistics bottlenecks represent 
up 7% to the exports' costs in Brazil.328 
4.4.6.1   Air transport  
4.4.6.1.1   Airline services  
4.242.   Brazil rema ins among the world's largest domestic aviation markets and in number 
of airports.  
4.243.   Due to the COVID -19 pandemic, in 2020 scheduled and non -scheduled flights dropped 
by 50.8%  as compared to 2019. The number of passengers had its first drop since  2016, 
with 52 million domestic and international passengers, representing a 56.4% reduction 
over 2019.329 Emergency measures to mitigate the negative economic effects on the sector, as well 
as to adapt the rules applicable to the new scenario, while seeking to protect  the interests of 
passengers, such as temporarily exempting them from fines for delayed airline ticket reimbursement 
were adopted, pursuant to Provisional Measure No.  925/2020 (converted into 
Law No. 14,034/2020), and ANAC Resolution No.  556/2020. Brazilia n main companies registered 
losses of BRL 20.4 billion  in 2020.  
4.244.   For regular flights only, the domestic market suffered a drastic reduction in  2020 
with 406,300 flights ( -49.4%) and 45.2  million  passengers transported ( -52.4%). Aircraft utilization 
(revenue  passenger kilometres /available seat kilometre ( RPK/ASK )) registered an 80% decrease as 
compared to 2019. Revenues per ASK (RASK) dropped 53.4% , and costs and expenses per 
ASK (CASK) rose 40.8%.  
4.245.   While the international market, which was more heavily impacted by the pandemic, showed 
a sharper reduction in both supply and demand, with 59,900 flights performed ( -58.9%), while the 
number of passengers transported fell by 72%, to 6.8  million . This resulted in a reduction in RPK/ASK 
from 84% to 65%. Brazili an carriers accounted for 34% of the share in international demand (RPK) 
transported in 2020.  
4.246.   In 2021, 62,583,147 revenue passengers were transported in Brazil (+38.3% compared 
to 2020).330 
4.247.   In 2020, 21.5% of Brazil's imports (by value) and 6.1% of its expor ts were moved via 
air cargo compared to 21.3% of imports and 5.9% of exports in 2016.331 According to the authorities, 
 
325 FOB value for 2021, available at: http://comexstat.mdic.gov.br/pt/home . By volume, available at: 
https://cnt.org.br/boletins . 
326 Viewed at: https://lpi.w orldbank.org/ . 
327 Innovation Norway (2020), Overview of the Logistics Sector in Brazil (Abridged Version) . Viewed at: 
https://fgvcelog .fgv.br/sites/gvcelog.fgv.br/files/innovation_norway_ -_relatorio_reduzido_ -_23-12-2020.pdf . 
328 International Trade Administration, Brazil  Country Commercial Guide: Infrastructure.  Viewed at: 
https://www.trade.gov/country -commercial -guides/brazil -infrastructure . 
329 Agência Nacional de Aviação Civil – ANAC (2020), Anuário do Transporte Aéreo 2020 . Viewed at: 
https://www.gov.br/anac/pt -br/assuntos/dados -e-estatisticas/mercado -de-transporte -aereo/anuario -do-
transporte -aereo/anuario -do-transporte -aereo . 
330 Viewed at: https://www.gov.br/anac/pt -
br/canais_atendimento/consumi dor/boletins/BoletimdeMonitoramentodoConsumidor.gov.br_ANUAL_20212.pdf . 
331 Comex Stat . Viewed  at: http://comexstat.mdic.gov.br/pt/home . WT/TPR/S/ 432 • Brazil  
 
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  Brazilian companies accounted for 20.3% of total international air cargo transported in the country 
in 2020, compared to 24% in 2015.  
4.248.   Gol, a private -owned air company, maintained the largest share in the domestic passenger 
market, with 16.7  million  passengers transported, followed by Latam and Azul in 2020. The average 
domestic fare fell by 14.5% in 2020 compared to the previous year in real  terms, while the average 
domestic yield (price charged per kilomet re flown) decreased by 23.3%. Azul had the highest 
average yield value, at BRL 0.347. Latam and Gol had average yield values of BRL 0.266 and 
BRL 0.260, respectively.  
4.249.   The air transport mark et remains highly concentrated; no domestic companies with state 
participation operate in this segment and no mergers or takeovers took place from 2013 onwards in 
this market. Avianca suspended its operations in the country in May 2019.332 In 2020, 13 Brazi lian 
companies provided scheduled and non -scheduled air transport services (excluding air taxi), of which 
three  provided mainly cargo operations. In the same year, a total of 106 companies provided 
international air transport services, of which 30  operated  only in the cargo transportation segment. 
Among Brazilian companies, three (Gol, LATAM, and Azul) represented 99.5% of the domestic 
market share (in terms of RPK). Among the main cargo companies, LATAM Cargo Brasil (previously 
Absa LAN Cargo) carried 30.9 % of the total cargo freight in the domestic market. Brazilian 
companies accounted for 29.4% of international flights to and from Brazil in 2020. LATAM, Gol , and 
Azul accounted for 85% of international flights operated by Brazilian companies; considering b oth 
domestic and foreign carriers, these three Brazilian companies had shares of 13.5%, 7.2% , and 
4.3% in flights in 2020, respectively; whereas foreign companies TAP, Aerolineas Argentinas, 
Lan Cargo S.A. , and Copa Airlines had shares of 7.1%, 6.4%, 5.5% , and 5.4% , respectively.  
4.4.6.1.2   Regulatory and operational framework  
4.250.   The main legal instrument remains the Brazilian Aeronautical Code (CBA) of 1986, last 
amended in 2016.333 The major change in the sector was introduced by Law No. 13,842/2019 , which 
permitted int ernational companies with up to 100% foreign capital to operate in Brazil. In May  2019, 
Air Europa was incorporated as the first 100% foreign -owned airline in Brazil. In addition to this, 
five other companies had received authorization from ANAC to operate  scheduled international 
services to and from Brazil: Norwegian, Sky Airline, FlyBondi, Italia Transporto , and Fast Colombia 
(Viva Air). The lease of foreign aircraft requires prior authorization. Another important amendment 
on the Aeronautical Code aims a t significantly simplifying authorization processes and civil aviation 
in general.334 For aircraft that will be used in commercial air transport by Brazilian certified operators, 
Brazilian -registered aircraft should be used; however, foreign -registered aircraft may be authorized 
in cases where agreements exist.  
4.251.   The institutional framework governing the aviation sector was slightly modified where the 
Council for Civil Aviation (CONAC)  serves as an advising body of the Presidency of the Republic for 
the formulation of the Brazilian civil aviation policy. The Ministry of Infrastructure (MInfra ) 
coordinates and supervises actions for the development of airport and aeronautical infrastructure 
through the Civil Aviation Secretary. The Brazilian Civil Aviation Authority (ANAC)335 regulates and 
inspects civil aviation activities and airport and aeron autical infrastructure. ANAC is linked to the 
Ministry of Infrastructure. The Agency is not hierarchically subordinate to the Ministry and it has 
administrative independence, financial autonomy , and fixed mandates for its directors . 
4.252.   Domestic air fares are determined freely by airline companies, with no prior approval being 
necessary. However, companies must report their fares on a monthly basis to ANAC for statistical 
purposes.336 
 
332 Nevertheless, in May 2022, Gol and Avianca announced a merger and creation of a new group named 
Abra. The transaction needs to be reviewed by CADE. Viewed at: https://exame.com/exame -in/nasce -o-grupo -
abra-gol-e-avianca -debaixo -do-mesmo -controle -e-mais/ . 
333 Laws No. 7,565 of 19  December  1986; and No. 13,319, 25  July 2016.  
334 Law No.  14,368/2022.  
335 ANAC's monitoring report of its strategic indicators available at: https://www.gov.br/anac/pt -
br/acesso -a-informacao/acoes -e-
programas/arquivos/MonitoramentoIndicadoresEstrategicos2020_2021_Final_Diagramado.pdf . 
336 Law No.  11,182, 27 September  2005, Article  49; and ANAC Resolution No.  140/2010.  WT/TPR/S/ 432 • Brazil  
 
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  4.253.   Pursuant to Law No.  14,034/2020, emergency measures for civil aviation to tack le the effects 
of the COVID -19 pandemic were introduced , determining the cases that exclude the possibility of 
indemnity for off -balance sheet damage as a result of failure to perform the air transport contract . 
Law No. 13,874/2019 established principles for the interpretation of legislation and contracts in the 
sector and establishing norms for the protection of free enterprise and free exercise of economic 
activity as well as simplification of requirements for incorporation of companies and si mplification of 
authorization processes . Law No.  13,848/2019 provided disciplines on the management, 
organization, decision -making process , and social control of regulatory agencies including  ANAC. 
These disciplines established mandatory compliance require ments for the regulatory process, 
ensuring that studies are carried out, guaranteeing social participation , and analy sing the regulatory 
impact prior to issuing regulations that may impose obligations on those regulated; 
ANAC  Resolution  No. 556/2020 introd uced temporary and exceptional relaxation of the provisions 
to offset the effects of the COVID -19 pandemic. It expired on 30  October  2021 for domestic flights 
and on  31 March  2022 for international flights.  
4.254.   Since 2015, ANAC has been revising regulations on  the general conditions of carriage and 
passenger rights in Brazil. The General Conditions of Carriage entered into force in March  2017, and 
introduc ed regulations based on international best practices and in line with the Brazilian Consumer 
Protection Cod e (allowing the consumer the right to cancel a purchase before its completion) ; the 
harmonization between the general conditions of carriage and the Consumer Protection Code is 
important to promote regulatory stability and to reduce judicial cases.337 As reported in the previous 
Review , air transport companies continue to be entitled to include checked baggage in the ticket 
price or to charge it separately.338 
4.255.   Civil aviation policy pursued greater insertion of Brazilian aviation into international markets 
to improve the country's connectivity through the conclusion of Air Transport Agreements.339 During 
the review period, new Air Services Agreements (ASAs) or MoUs were signed with Angola;  the 
Kingdom of  Bahrain; Colombia; Côte  d'Ivoire; Czech  Republic; Guatemal a; Guyana; Israel; 
Luxembourg; Netherlands; Qatar; Rwanda; the United Arab Emirates; the 
Netherlands -Saint Maarten, Viet  Nam; Sri Lanka; and Türkiye (Table  A4.2). Brazil currently 
maintains 116 bilateral ASAs (102 in 2017), including open skies agreements with more than 
69 countries. During the review period, MoUs were signed with Cabo Verde; Cambodia; China; 
Colombia; Czech  Republic; El Salvador; Finland; Greece; Haiti; Hong  Kong,  China; the Islamic 
Republic of Iran; Luxembourg; Malaysia; Malta; Nicaragua;  Portugal; Qatar; Scandinavian countries 
(Denmark, Norway , and Sweden); Slovenia; Thailand; the United Kingdom; and the 
United  Arab Emirates.  According to the authorities, b ilateral negotiations with Chile, 
the United  Kingdom, Cabo Verde, El Salvador, Domi nican  Republic , Czech  Republic , Qatar, Finland , 
and Oman introduced 7th traffic rights for all -cargo services only.  
4.256.   Brazil participates in the Fortaleza Agreement on regional air transport services covering 
all routes that are not operated under bilateral agreements among the parties.340 It is also a 
signatory to the 2012 Multilateral Open Skies Agreement for the member States of the 
Latin American Civil Aviation Commission (LACAC) with reservations regarding 7th, 8th, and 
9th freedom traffic right s.341 Currently, a process for lifting reservations on 7th freedom traffic rights 
for all -cargo services only is under analysis by the Brazilian National Congress. The 
ICAO's  International Air Services Transit Agreement had just been approved , permitting 
liberalization of 7th freedom just for cargo and considered an open sky agreement.  Agreements to 
 
337 ANAC Resolution No.  400, 13 December  2016.  
338 WTO docum ent WT/TPR/S/358/Rev.1, 18  October  2017.  
339 The term "Air Transport Agreements" is used here to refer to Air Services Agreements, Memoranda 
of Understanding, Exchange of Notes, and other such relevant instruments. Those agreements are available at: 
https://www.gov.br/anac/pt -br/assuntos/internacional/acordos -internacionais/acordos -de-servicos -
aereos/acordos -bilaterais . 
340 Other signatories are Argentina, the Plurina tional State of Bolivia, Chile, Paraguay, Peru, and 
Uruguay.  
341 As part of the COVID -19 response and aviation recovery, at the end of 2020 LACAC concluded a 
new multilateral agreement to liberalize air cargo services in the region. The agreement came into e ffect 
immediately among its 10 signatories, and establishes expanded traffic rights, namely "seventh freedom" 
traffic rights, permitting airlines from one LACAC member State to provide all -cargo services between two 
other signatory States without restricti ons on routes and capacity. The agreement will remain in effect for 
one year, until 31  December  2021, and may be extended for a further year, at the discretion of LACAC 
member States.  WT/TPR/S/ 432 • Brazil  
 
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  facilitate vaccine and medical supplies were also established during the pandemic until the end of 
December 2022.  
4.4.6.1.3   Airport and auxiliary services  
4.257.   The National  Commission  of Airport  Authorities  (CONAERO)  acts as a consultative  and 
deliberative  commission  composed  by bodies  that directly  work with airport  management  in order  
to make  airports  more efficient.  
4.258.   The Department  of Airspace  Control  (DECEA)  is subordinated  to the Aeronautical  Command  
and the Ministry  of Defence.  The Aeronautical  Accidents  Investigation  and Prevention  
Center  (CENIPA)  is also subordinated  to the Aeronautical  Command  and the Ministry  of Defence  and 
is responsible  for the investigation  and preven tion of accidents.342 
4.259.   During the review period, almost BRL 7 billion  were invested in Brazilian  airports, ensuring 
significant improvements in infrastructure and operations. The punctuality index (delays up to 
30 minutes) of flights worsened from 91.9% in 2 016 to 89.9% in 2021. From January to 
October  2021, the 10 busiest airports with number of boarding and disembarking passengers 
were:  Guarulhos (18.180  million ), Viracopos (8.088  million ), Brasília (8.001  million ), 
Congonhas  (7.010  million), Recife (5.928  million ), Confins (5.257  million ), 
Santos  Dumont  (5.256  million), Salvador (4.102  million ), Porto Alegre (3.536  million ), and 
Fortaleza  (2.960  million ). Combined these airports accounted for 64.5% of taking -off and 64.5% of 
landings. For cargo in 2021, around 89% of boarded cargo was concentrated in 10 airports: 
São Paulo (GRU), Manaus, Brasília, São Paulo (Congonhas), Rio de Janeiro (Galeão), Fortaleza, 
Recife, Salvador, Belém , and São Paulo (Campinas). The three bi ggest airports in terms of domestic 
cargo  – Guarulhos, Manaus , and Campinas  – accounted for 49% of the cargo transported in the 
country.  
4.260.   Brazilian aeronautical infrastructure includes 4,004 private aerodromes registered by the 
National Civil Aviation Agenc y (ANAC), 1,325 helipads , and 510 public aerodromes. Among the latter, 
152 operate regular flights and 22 offer international flights.  
4.261.   As of 2021, Brazil counted 3,184 airports (45 international) and airstrips, of which 503  were 
state-owned compared to 2,5 64 and 606 in 2016, respectively. INFRAERO, a public enterprise linked 
to the MInfra, remains in charge of the operation and management of commercial airports, 
air navigation support stations, and cargo terminals across the country , though data were not 
provided by the authorities. INFRAERO participation reduced due to the implementation of the 
airports concessions programme .343 Since the beginning of 2019, Brazil has granted 34 airports to 
the private sector. The 5th, 6th, and 7th concession rounds offered flexible regulations, compatible 
and proportional to the size of each airport in relation to tariffs, investments , and quality of services. 
The requirements regarding the level of service will adhere to the reality of each airport, aimed at 
the best servic e to the user. The 7th round of airport concessions involve 16 airports, and the auctions 
were scheduled for the first half of 2022 with an estimated investment of BRL 8.8 billion  during the 
duration of the contracts. These included the following airports:  SP-MS-PA Block : Congonhas and 
Campo de Marte in São Paulo/SP, Campo Grande/MS, Corumbá/MS, Ponta Porã/MS, Santarém/PA, 
Marabá/PA, Parauapebas/PA , and Altamira/PA; RJ -MG Block: Santos Dumont and Jacarepaguá in 
Rio de Janeiro/RJ, Montes Claros/MG, Uberlândi a/MG , and Uberaba/MG; and the North Block II: 
Belém/PA and Macapá/AP. The future concessionaires of the two terminals will have five  years, 
instead of three, to complete works to correct non -conformities at airport sites, obtaining 
environmental and other certifications and licences. The same period applies to infrastructure 
improvements, which will allow for an increase in the number of passengers served. For these 
airports, the factoring index initially calculated at 90% was limited to 80%, which means th at they 
will have 30 movements per hour at peak times, instead of  32 as initially planned. Together, the 
 
342 Viewed at: https://www.gov.br/anac/en/about -anac/brazilian -civil-aviation -sector . 
343 WTO document WT/TPR/S/358/Rev.1, 18  October  2017. It is expected that all INFRAERO airports will 
be transferred to the private sector, as it is undergoing a  gradual extinction, with employees and assets being 
transferred to the state -owned NAV Brasil Serviços de Navegação Aérea S.A., created in mid -2018.  WT/TPR/S/ 432 • Brazil  
 
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  16 air terminals were responsible for hosting 39.2  million  passenger departures and arrivals and 
26% of passengers who paid for airfare in the Brazilia n air transport market in 2019.344 
4.262.   Currently, ANAC is responsible for coordinating slots in five airports in Brazil: 
Congonhas  (CGH), Guarulhos (GRU), Pampulha (PLU), Recife (REC), and Santos Dumont (SDU). In 
addition to the coordinated airports, there  were eight airports that have been declared by ANAC as 
airports of interest  – Brasília (BSB), Confins (CNF), Florianopolis  (FLN), Fortaleza  (FOR), 
Galeão  (GIG), Porto Alegre (POA), Salvador (SSA), and Viracopos (VCP)  – whose coordination and 
schedule allocation process is carried out by the airport operator itself. According to the authorities, 
ANAC has recently published a revised regulation for slots in Brazil, which takes into consideration 
efficiency and competitiveness and enables easier access fo r new entrant airlines.  
4.263.   Since May 2011, private investors have been allowed to build, manage, and operate airports 
through concessions, a fundamental factor for the development and modernization of the airport 
infrastructure in Brazil. No legal restriction s for the participation of foreign investors in Brazilian 
airports are in place.345 
4.264.   ANAC determines ceiling fees for different airport services and adjusts them annually; the 
fees are applied to the service provided (i.e. boarding, connection, landing , and permanence).346 
The boarding fees for domestic and international flights are different, but according to the authorities 
there is no discrimination between national and foreign air carriers, as the fee charged is the same 
for the same service provided.347 
4.265.   Foreign airlines are automatically granted authorization to provide ground -handling services 
for their own aircraft, as long as their home country grants reciprocal treatment to Brazilian airlines. 
Operators other than airlines, domestic or foreign, are re quired to set up a company in Brazil in 
order to provide auxiliary services. Domestic and foreign companies may provide aircraft 
maintenance services in Brazil, provided they obtain a Brazilian maintenance -shop certification and 
a Certification of Approval  of the Company issued by the ANAC. Brazilian airlines may contract 
maintenance services abroad.348 
4.4.6.2   Maritime transport and ports  
4.4.6.2.1   Shipping  
4.266.   During the review period, 95% (94.8% in the previous report) of Brazil's merchandise 
trade  (domestic and foreign) was c arried by sea of which 1% was transported by national flag 
vessels. Brazil's national flag merchant fleet capacity rose from 3.4  million  deadweight tonnes  (dwt) 
in 2010 to 4.3  million dwt in 2016 and to 9.6  million  dwt in 2020.349 According to UNCTAD data, 
in 2021 Brazil ranked  17th as ship -owning economy with USD  16 billion  of commercial value of the 
fleet. In dwt terms, Brazil owned the world's 26th (21st in 2011 and 25th in 2016) largest fleet (0.65% 
of total dwt) consisting of 13. 9 million  dwt (15.8  million dwt in 2016) for 383  vessels (387  in 2016). 
National flag vessels are 292, while foreign flag vessels are 91.350 In 2021, the national flag fleet in 
thousands dwt terms  consisted of oil tankers (37.53%) (39.8% in 2015), bulk carriers  (12.53%) 
(19.5% in 2015), and container ships (5.93%) (17.6% in 2015).351 The market remains 
concentrated, with the five largest operators controlling 50% in 2022 of the dwt (88.3% in  2016). 
As at 2021, the largest Brazilian flagged fleet (international and domestic routes) w as owned by the 
 
344 Viewed at: https://www.gov.br/infraestrutura/pt -br/assuntos/noticias/2021/12/anac -aprova -
documentos -da-7a-rodada -de-concessoes -e-processo -segue -ao-tcu. 
345 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
346 ANAC Resolution No.  216, 30 January  2012.  
347 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
348 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
349 UNCTAD , Maritime Profile  for 2020 . Viewed at: 
https://unctadstat.unctad.org/CountryProfile/MaritimeProfile/en -GB/076/index.html . 
350 UNCTAD (2021), Review of Maritime Transport 2021 . Viewed at: 
https://unctad.org/system/files/official -document/rmt2021_en_0.pdf . The authorities indicated that the 
number of national flag vessels are 2,746, while foreign flag vessels are 1,080 . 
351 UNCTAD , Maritime Profile for 2020 . Viewed at: 
https://unctadstat.unctad.org/CountryProfile/MaritimeProfile/en -GB/076/index.html . WT/TPR/S/ 432 • Brazil  
 
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  state company Petrobras /Transpetro , with 24 ships and 15% of total  dwt, followed by Alliança 
(8 ships, 3%), ELCANO (10 ships, 3%), Log -in (6 ships, 1.5%) , and Norsul (20  ships, 1 .7%).352 
4.267.   In 2020, Brazil figured as the second -largest shipping source of ton ne-miles and ton nes 
generated by bulkers of over 100,000 dwt after Australia. Notably, Brazil also ranked 2nd of world 
iron ore  exports with 23%, much of which  is destined for China.353 
4.268.   In 2021, 1.21  billion  tonnes of exported cargo we re transported by maritime shipping, 
composed by 58% of solid bulk cargo, 26% of liquid bulk cargo, 11% of containers , and 5% of 
general loose cargo. The main exported products by maritime shipping were iron ore (53%), 
soyabeans (13%), and petroleum and de rivatives (8%). The main destined markets were China 
(51%), the United  States (4%), Malaysia  (4%), Singapore (4%), and Japan (3%).354 
4.4.6.2.1.1   Policy and institutions  
4.269.   Brazil's national maritime policy plan dates back to 1994, and was recently changed by 
Law No. 14,301/2021.355 In 2019, the Secretariat of Ports was renamed to National Secretariat of 
Ports and Waterways Transports and integrated into the Ministry of Infrastructure (MInfra). The 
Secretariat of Ports formulates policies and guidelines for the development and promotion of the 
maritime, river , and lake ports and port facilities sector. Brazil's regulatory agency for maritime 
services remains the National Waterways Transport Agency (ANTAQ), a public -law independent 
agency now linked to the MInfra. The ANTAQ r egulates and supervises the Port Authority, the federal 
waterway infrastructure, private terminals, and shipping companies.356 
4.4.6.2.1.2   Regulatory and operational framework  
4.270.   The main regulatory change was introduced by Law No. 14,301/2022 establishing 
the "BR do Mar".357 Its main aim is to improve cabotage and reduce costs, thus providing greater 
efficiency to maritime and waterways transport in Brazil. The Law also aims at encouraging 
competitiveness, increas ing the availability of the fleet in the national territory,  and promot ing the 
entry of new cargo transport companies in Brazil. Brazilian shipping companies (EBNs) can operate 
without having their own fleet of vessels by chartering EBN -i (Empresa Brasileira de Investimento 
na Navegação ) vessels, using bareboat cha rtered vessels with flag suspension or time -chartered 
vessels, from a wholly  owned subsidiary of Brazilian shipping companies abroad, to fulfil a long -term 
contract or to fulfil a special cabotage operation that has the purpose of transporting cargo in typ e, 
route , or market not yet existing or consolidated in Brazilian cabotage. Hence, 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 modality called "bareboat 
charter". The chartering of foreign ships in the "bare hull" modality, with flag suspen sion, 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.  
4.271.   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 Brazilian 
company) or wholly  owned subsidiary of another EBN. The chartering of a foreign ship in 
the "bareboat" modality, with flag suspensio n, is authorized by Brazilian shipping companies for 
cabotage navigation, without ballast on property, according to a phased -out time -frame.  
 
352 Painel de Autorizações de Navegação . Viewed at : http://outorgasnav.antaq.gov.br . 
353 UNCTAD (2021), Review of Maritime Transport 2021 . Viewed at: 
https://unctad.o rg/system/files/official -document/rmt2021_en_0.pdf . 
354 ANTAQ (2021), Anuário Estatístico  2021. Viewed at: https://www.gov.br/antaq/pt -
br/noticias/2022/setor -portuario -movimenta -1-2-bilhao -de-toneladas -de-cargas -em-2021/anuario -2021-vf-
003.pdf . 
355 In January 2021, a Presidential Decree created an Interministerial Working Group (GTI) to update 
the National Maritime Policy, provided for in Decree No. 1,265/1994. The reform should cover the current use 
of the marine space, and seek better conditions t o explore economic activities related to the sea.  
356 Viewed at: https://www.gov.br/antaq/pt -br/acesso -a-
informacao/institucional/copy_of_competencias . 
357 The main regulation consists of Law s No. 9,432 , 8 January  1997; No.  7,652, 3 February  1998; and 
No. 10,233, of 5 June 2001.  WT/TPR/S/ 432 • Brazil  
 
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  4.272.   Another innovation worth mentioning is that chartered vessels are no longer obliged to have 
a crew composed of at l east two thirds of Brazilians, conditional to their registration to 
the "BR do Mar" programme and performing cabotage navigation. However, it is still mandatory that 
the captain, the chief engineer, and, in certain cases, the cabotage master and engine con ductor 
are Brazilian nationals.358 
4.273.   Brazilian -flag vessels must be owned by natural persons residing or domiciled in Brazil, or 
by a Brazilian shipping company. The captain, the chief engineer , and two thirds of the crew of a 
Brazilian -flag vessel must be Br azilian nationals. Brazil does not impose foreign equity restrictions. 
No restrictions apply to the origin of capital for the establishment of a multimodal transport operator 
commercially registered in Brazil.359 
4.274.   Brazil requires reciprocity treatment in international maritime transport services agreements 
signed with foreign countries.360 As of 2021, Brazil had bilateral agreements on maritime transport 
services with 8 countries, compared to 11 in 2017 .361 The agreements with Chile, Argentina , and 
Uruguay were not renewed.  
4.275.   Law No. 14,195/2021 revoked the obligation that required that cargo of government entities 
(including public enterprises), 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 Brazilian 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 of release of cargo prescribed  (CLCP)) may be issued 
for the carriage of import cargos by foreign flagged vesse ls; 2,104 certificates were issued in 2018, 
2,217 in 2019, and 3,317 in 2020. Foreign vessels that enter Brazilian ports are charged a specific 
lighthouse fee, with exemptions for vessels under 1,000 dwt and in cases of reciprocity under 
bilateral trade ag reements.362 
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 cos t 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.363 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 Comple mentary Agreements. The 
AFRMM on international maritime freight increases the cost of imported goods.  
4.277.   AFRMM resources are deposited in the Merchant Marine Fund (FMM), which is managed 
by the MInfra, with BNDES, Banco do Brasil  and Caixa Econômica Federal  as its financial agents 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, refo rming , or repairing vessels for domestic and foreign shipping 
companies. The conditions of these loans depend on the amount of "national content" used in the 
production of the vessels or in the construction, expansion, and modernization of shipyards; the 
origin of the goods or equipment to be financed; and the type of vessel (cargo, passengers, etc.).364 
Between  2017 and 2021, the FMM allocated a total of BRL 7.56 billion  in credits to the shipping 
 
358 Normative Resolution CNIG MJSP No. 6, 2017 ; and Resolution  No. 42/2020 of National Council for 
Immigration.  
359 Law No.  9,611, 19 February 1998; Decree No.  3,411; and  WTO document WT/TPR/S/358/Rev.1, 
18 October 2017.  
360 Federal Constitution , Article  178; and Law No.  9,432, 8 January  1997, Article  5. 
361 These countries are Algeria, China, France, Germany, Poland, Portugal, the Russian  Federation , and 
the United  States . 
362 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
363 Law No.  10,893, 13 July 2004, governs the AFRMM. Law No.  12,599/2012 clarified that  the AFRMM is 
a tax, not a customs duty that must be included for purposes of determining the sales tax (ICMS) on imports. 
Reduction by Law  No. 14,301/2022, "BR do Mar".  
364 BCB Resolution BACEN No.  4,919 , 24 June 2021.  WT/TPR/S/ 432 • Brazil  
 
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  industry compared to BRL 19.7 billion  from 2012 to 2015 and BRL 8.9 billion in the 
period  2008-11.365 
4.278.   Freight revenues from goods carried between Brazil and a foreign country by vessels 
registered at the Special Brazilian Registry (REB) remain exempt from the Contribution to the Social 
Integra tion Programme (PIS) and the Contribution to the Social Security Financing (COFINS).366 The 
construction, maintenance, repair, and modernization of vessels registered under the REB in 
Brazilian shipyards enjoy the same fiscal treatment as exports of industr ial goods in general, 
e.g. reimbursement of domestic indirect taxes. Moreover, in some states, inputs and other materials 
for the construction of ships and petroleum platforms are exempt from the Tax on the Circulation of 
Goods and Services (ICMS).367 Recip rocal income tax exemption applies to foreign shipping 
companies domiciled in countries where Brazilian shipping companies benefit from the same 
treatment for international shipping traffic activities.368 Neither an estimate of the amount of forgone 
tax rev enue through these measures nor an appraisal on the attainment of any targets 
set (e.g. investment, output, employment, or exports) was available.369 
4.279.   Brazil has not undertaken any commitment on maritime transport under GATS. Brazil signed 
the UN Convention on a Code of Conduct for Liner Conferences in 1975 but has not ratified it yet, 
as its provisions on rejection of proposals on freight rates put forward by Liner Conferences (article 
14, paragraph 6) do not conform with Brazilian law.370 Brazil is a member of the International 
Maritime Organization (IMO) and has ratified a number of IMO conventions related to maritime 
safety, prevention of maritime pollution, and civil liability, among others. During the review period, 
no action was taken to either sign or r atify any other IMO conventions or recent amendments to 
those to which it was already a signatory. Brazil is a party to the Multilateral Agreement on Inland 
Waterway Transportation through the Paraguay -Parana Rivers, together with Argentina, 
the Plurinatio nal State of Bolivia, Paraguay, and Uruguay.371 
4.4.6.2.2   Port services  
4.280.   During the review period, port cargo movement continued to increase. Between  2015 
and 2021, it rose from 1  billion  tonnes to 1.21  billion  tonnes. In the same period, private terminals 
handled abo ut 66.3% of total cargo movements , which consisted of loading 65.2% rather than 
unloading merchandise.372 The main products transported remain commodities, including iron ore, 
petroleum and petroleum products, soybeans, bauxite, corn, coal, and sugar, which  all together  
continue to account for almost three quarters of all cargo moved. The average waiting time in  Brazil 
is 5.5 days. Brazil has one of the highest waiting times for loading, on average more than a week. 
Median time in port is 0.77 days for conta iner ships. For dry bulk carrier, the loading of ton nes per 
minute is 25, while discharge is 9  tonnes per  minut e. Average waiting time to load is 174  hours ; for 
discharge it is 131  hours.373 
4.281.   In 2021, there were 36 (35 in 2012 and 37 in 2016) "organized" mar itime and fluvial 
public  ports under the jurisdiction of the MInfra, of which 18 were operated by state or municipal 
governments or public consorti a, and 17 (18 in 2012 and 19 in 2016) were administered by the 
publicly owned Companhia Docas . The MInfra is in charge of another 46 inland fluvial ports.374 As 
at May 2021, there were 204  (134 in 2012 and 188 in 2016) private port facilities/terminals  (TUPs); 
 
365 The main reason for reduction in disbursements from FMM resources is associated with the change in 
the purpose of the projects, predominantly construction  before being gradually replaced by repair and docking 
projects, which have significantly lower financial amounts. Accordi ng to the authorities , the pandemic was also 
a catalyst for this reduction, as industrial activities between 2020 and 2021 were paralyzed or reduced.  
366 Provisional Measure No.  2,158-35, 4 August  2001.  
367 Decree No.  25,403, 2 July 1999.  
368 Income Tax Code (Article  176); and Decree Law No.  5,844, 1943, Article  30. 
369 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
370 UN, Declarations and Reservations . Viewed at: 
https://treaties.un.org/Pages/ViewDetails.aspx?src=TREATY&mtdsg_no=XII -
6&chapter=12&clang=_en#EndDec . 
371 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
372 ANTAQ (2021), Anuário Estatístico 2021 . Viewed at: http://ea.antaq.gov.br/ . 
373 UNCTAD (2021), Review of Maritime Transport 2021 . Viewed at: 
https://unctad.org/system/files/ official -document/rmt2021_en_0.pdf . 
374 Viewed at: https://www.gov.br/infraestrutura/pt -br/assuntos/transporte -aquaviario/sistema -
portuario . WT/TPR/S/ 432 • Brazil  
 
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  many companies operate TUPs, mostly used for exporting their own cargos.375 Some of the ports 
and terminals specialize in the shipment of a single commodity (e.g. mineral ore in the ports of 
Ponta da Madeira and Tubarão). In 2021, the main Brazilian ports in terms of tonnes of cargo handled 
were Santos (27.7%), Itaguaí (12.6%), and Paranaguá (12.6%).  Concerning TUPs, Ponta da 
Madeira  (22.7%), Tubarão (8%) , and Angra dos Reis (8%) were the leaders in cargo handled.376 
4.4.6.2.2.1   Policy and institutions  
4.282.   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 subsys tems making the 
connection 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 po rt 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 organized ports; and General Plan for Concessions  (PGO) for guiding 
investors and consolidating concession projects in the port sector.377 
4.283.   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.378 
4.284.   Decree  No. 10,703/2021 established the National Commission of Ports 
Authorities  (CONAPORTOS) composed of  representatives of the MInfra, which will preside over it; 
the Civil House; the Ministry of Justice and Public Security; the Ministry of Defence; the Ministry of 
Economy; the Ministry of Agriculture, Livestock and Food Supply; the National Health Surveill ance 
Agency  (ANVISA); the National Waterway Transport Agency (ANTAQ); and the National Department 
of Transport Infrastructure (DNIT). Representatives of sectoral associations and other relevant public 
or private entities may also be invited to participate in its meetings, without the right to vote. Its 
competences are , inter alia, to: (i) promote the integration of the activities of public entities in 
organized ports and port facilities; (ii)  promote improvements in regulatory acts with a view to 
optimizing  the flow of vessels, goods, products , and people and the occupation of physical spaces in 
organized ports and increasing the quality, safety , and speed of operational processes; (iii)  establish 
and monitor performance parameters for public entities in org anized ports and port facilities and 
propose their revision, when necessary; (iv)  establish mechanisms that ensure efficiency in the 
release of goods and products to operators who meet the requirements established by public entities 
in organized ports and port facilities; (v)  propose measures to the competent bodies or entities to 
implement international standards and practices related to port operations and maritime transport.  
4.285.   Decree No. 10,858/2021 , which aims to improve and modernize  certain ports,  listed 
eight port terminals in six Brazilian states for concession to the private sector under the Investment 
Partnership Programme (PPI), including a terminal in the Port of Santos, the largest container port 
in Latin America, and the ports of Rio de Janeiro/R J, Salvador/BA, Ilhéus/BA, Mucuripe/CE , and 
Itaqui/MA. These ports receive cargo, such as solid mineral and vegetable bulks and fuels. One of 
the terminals, Ilhéus, also receives passengers. The estimation was for the terminals to be auctioned 
by the end  of 2022.379 
4.4.6.2.2.2   Regulatory and operational framework  
4.286.   During the review period, the Port Law, which regulates direct and indirect public use of 
ports and their installations along with activities deployed by port agents, enacted in 2013, remained 
 
375 ANTAQ , Painel de Monitoramento de Instalações Privadas . 
376 ANTAQ (2021), Anuário Estatístico 2021 . Viewed at: http://ea.antaq.gov.br/ . 
377 Viewed at: https://www.gov.br/infraestrutura/pt -br/assuntos/transporte -
aquaviario/copy_of_planejamento -portuario . 
378 The National Logistics Plan 2035 . Viewed at: https://ontl.epl.gov.br/wp -
content/uploads/2021/10/PNL_2035_29 -10-21.pdf . 
379 Viewed at: https://www.gov.br/infraestrutura/pt -br/assuntos/noticias/curtas -
infraestrutura/2021/11/ppi -qualifica -oito-terminais -portuarios -para-concessao -a-iniciativa -privada . WT/TPR/S/ 432 • Brazil  
 
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  in force.380 The regulatory framework still allows the leasing of public port areas and facilities to the 
private sector, including foreign companies. Many activities in the public ports are carried out by 
private local and foreign companies under leasing contracts, w hich have an initial duration of 
25 years that is renewable for another period of 25  years. Firms supplying auxiliary port services 
(such as handling and logistics) must be established in Brazil, but foreign capital may participate 
and receive national tre atment.381 The REPORTO scheme continues to provide for IPI, COFINS, PIS, 
and import duty exemption on machinery and equipment used to modernize and expand ports. The 
Programme Future of the Port Sector was launched in September 2021, with the aim of stimula ting 
the modernization of organized ports and increasing their competitiveness, with a focus on reducing 
bureaucracy, improving management, increasing training of managers and port workers , and 
implement ing new technology for promoting more logistical effi ciency.  
4.287.   The lighthouse fee (TUF) on foreign vessels  to cover lighthouse operation costs , which is 
charged each time a foreign ship uses a port in a different Brazilian state, remains in place at the 
following rates: USD  1,500 for vessels from 1,000 dwt to 50,000 dwt; USD  2,250  for vessels 
from 50,000 dwt to 100,000 dwt; and USD  3,000 for vessels of over 100,000  dwt. Vessels 
under  1,000  dwt are exempt. The TUF revenue is used for repair and maintenance of navigation 
signals (e.g. lighthouses) along the Brazi lian coast, with a view to maintaining safety levels for 
navigation in Brazilian territorial seawaters.382 The total TUF revenue was not provided.  
4.288.   Port charges in Brazil are at a similar level to those at other ports in Latin America. For the 
organized port s (public ports), the Organized Ports Tariff Regulation Procedure (ProREP) sets the 
instructions or technical notes explaining the methodology used , and it is integrated with other 
ANTAQ electronic systems. A tariff structure can only be changed upon submi ssion and acceptance 
of a project via ProREP for tariff adjustment for an ordinary tariff review , or for changes in the current 
tariff structure.383 For the leased terminals (inside public ports), the price is generally free, but 
a "price cap" model may be established at the lease contract and discounts can be freely negotiated 
among the parties. Private terminal prices are not subject to control.  
4.4.7   Distribution and e -commerce  
4.4.7.1   Distribution  
4.289.   Distribution services (including retail and wholesale) accounted for 15 .3% of gross 
value  added in  2021 (12.5% in 2016) and 19% of total employment (Table  1.2). The sector consists 
of large national and international distribution networks as well as of a large number of micro and 
small family establishments; in 2019, there we re 1,222,965 retail companies and 225,089  wholesale 
companies employing 7,544,289 and 1,714,732 people, respectively.384 The importance of retail in 
the economy continues to be increasingly recognized and highlighted , besides being the largest 
generator of formal jobs. The Brazilian distribution market (retail and wholesale) is heterogeneous. 
Retail supermarkets and the retail appliance market are concentrated. Companies with up 
to 19 employees corresponded to 27.7% of the net revenue of the sector in 2018, while companies 
with more than 500 persons accounted for 32.4% of the net revenue.385 In 2020, the supermarket 
chains segment registered revenue of BRL 554 billion  and accounted for 7.5% of GDP.386 In 2021, 
the five largest companies (Carrefour Com Ind Ltda,  Assaí Atacadista, Grupo Pão  de Açúcar, 
Mateus  Supermercados, and Ceconsud Brasil Comercial Ltda ) accounted for 68% of the outlets and 
 
380 Law No.  12,815/2013 ; Presidential Decree No.  8,465/2015 ; Ministerial Decree  No. 499/2015 ; 
Ministerial Decree No.  349; Normative Resolution No.  01-ANTAQ , 13 February  2015; and Normative Resolution 
No. 05-ANTAQ , 23 February  2016.  
381 For m ore information on port regulations, please consult the previous TPR  report in WTO document 
WT/TPR/S/358/Rev.1, 18  October  2017.  
382 Viewed at: https://www.gov.br/pt -br/servicos/realizar -pagamento -da-tarifa -de-utilizacao -de-farois -
tuf. 
383 Viewed at: https://www.gov.br/antaq/pt -br/assuntos/instalacoes -portuarias/portos/tarifas -das-
autoridades -portuarias . 
384 Brazilian Institute of Geography and Statistics (IBGE), Pesquisa Anual de  Comércio . Viewed at: 
https://www.ibge.gov.br/estatisticas/economicas/comercio/9075 -pesquisa -anual -de-
comercio.html?=&t=destaques . 
385 IBGE, Brazil in Figures. Viewed at:  
https://biblioteca.ibge.gov.br/visualizacao/periodicos/2/bn_2021_v29.pdf . 
386 Brazilian Association of Supermarkets (ABRAS). Viewed at: https://www.abras.com.br/economia -e-
pesquisa/ranking -abras/dados -gerais . WT/TPR/S/ 432 • Brazil  
 
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  78% of the turnover of the 20 major chains operating in Brazil.387 Four of the world's top 250 retailers 
in total revenue are Brazilian  (Magazine Luiza S.A. (No.  195), Varejo S.A. (No.  196), 
Lojas  Americanas  S.A. (No.  247), and Raia Drogasil S.A. ( No. 249)), though those 
retailers'  operations are focused on the Brazilian market. All four retailers achieved double -digit 
growth in 2020, with Magazine Luiza, the leading Brazilian retailer, reaching revenue growth 
of 46.2%. During the pandemic, its Internet sales grew by 123%.388 Magazine Luiza was the largest 
e-commerce operator in Brazil, with revenue of USD  3.3 billion  in 2021.389 
4.290.   The main legislation on distribution services remains the 2002 Brazilian Civil Code. Several 
municipal and state -level regulations, the Code of Consumer Protection (CDC) and the new 
legislation on e -commerce govern the activity. No foreign equity limit is imposed in the sector, and 
no quotas or economic needs tests are applied in relation to the establishment or expansion of 
distribution services suppliers. No products are subject to exclusive distribution rights, and bo th 
franchising and direct selling are allowed.390 Commercial presence in retail services and franchising 
is unrestricted. Foreign entry in wholesale is allowed except for wholesale trade services of solid, 
liquid , and gaseous fuels and related products wher e the foreign company must be legally 
established in Brazil and meet domestic requirements.391 Distribution sector activities are subject to 
the competition policy and consumer protection legislation.392 
4.291.   The Agreement on Economic and Trade Expansion Brazil -Peru, whose implementation is 
pending, contains WTO -plus commitments in distribution services (commissioned agent services, 
wholesale, retailing services, and franchising) for which there is no limitation in cross -border supply, 
consumption abroad , and comm ercial presence.393 According to the authorities, an agreement with 
Colombia also allows commercial presence abroad (mode 3) covering distribution services.  
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 to 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%.395 According to UNCTAD, 
the share of individuals using the Internet is around 74%. However, in 2 020 the country ranked 
only 62nd (60th in 2018 and 72nd in 2019) among 152 countries in the B2C (business to consumer) 
E-Commerce Index 2019 also due to low Universal Postal Union (UPU) postal reliability score (46  out 
of 100).396 Internet shoppers share of  Internet users is 34%, corresponding to 24% of the 
population.397 During the COVID -19 pandemic, 7.3  million  Brazilians shopped online for the first 
time. E -commerce sales rose by 47% in the first half of 2020 , which was the biggest increase 
in 20 years.398 All five  largest B2C e -commerce sites in Latin America operate in Brazil: 
 
387 Superhiper  (2021), Ranking ABRAS  2021, No. 537. Viewed at: 
https://superhiper.abras.com.br/pdf/270.pdf . In 2018, Walmart's shareholders sold its operations in Brazil. 
Walmart had over 500 units and employed over 50 ,000 people.  
388 Deloitte (2022), Global Powe rs of Retailing; Resilience Despite Challenges . 
389 ECommerceDB, The eCommerce Market in Brazil . Viewed at: 
https://ecommercedb.com/en/markets/br/all . 
390 Law on Franchising ( Lei sobre o contrato de fra nquia empresarial ), 15 December  1994. Viewed at: 
http://www.planalto.gov.br/ccivil_03/Leis/L8955.htm . 
391 WTO document S/DCS/W/BRA, 24  January  2003; and ANP Resolution No.  58, 17 October  2014.  
392 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
393 These commitments exclude CPC 62118 - Sales on a fee or contract basis of goods;  CPC 62271 - 
Wholesale trade services of solid, liquid and gaseous fuels and related products; and CPC 63297  - Retail sales 
of fuel oil, bottled gas, coal and wood . 
394 UNCTAD, The UNCTAD B2C E -Commerce I ndex 2020 - Spotlight on Latin America and the Caribbean . 
Viewed at: https://unctad.org/system/files/official -document/tn_unctad_ict4d17_en.pdf . 
395 Insider Intelligence (2021), "These Are the Top Global Economic Markets", 14  July. Viewed at: 
https://www.emarketer.com/content/top -global -ecommerce -markets . 
396 UNCTAD, The UNCTAD B2C E -Commerce I ndex 2020 - Spotlight on Latin America and the Caribbean . 
Viewed at: https://unctad.org/system/files/official -document/tn_unctad_ict4d17_en.pdf . 
397 UNCTAD, UNCTAD B2C E -Commerce I ndex 2019. Viewed at: https://unctad.org/system/files/official -
document/tn_unctad_ict4d14_en.pdf . 
398 UNCTAD, The UNCTAD B2C E -Commerce I ndex 2020 - Spotlight  on Latin America and the Caribbean . 
Viewed at: https://unctad.org/system/files/official -document/tn_unctad_ict4d17_en.pdf ; and UNCTAD (2021), WT/TPR/S/ 432 • Brazil  
 
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  Mercado  Livre, B2W, Amazon, Casas  Bahia, and Dafiti. From those, B2W (Americanas, Submarino , 
and Shoptime) and Casas Bahia operate only in Brazil. In 2019, the market's largest segme nts were 
electronics (42%), travel (29%), household goods (6%), clothes and apparel (4%), health and 
beauty (3%), and groceries (1.5%).  
4.293.   Home and decoration goods registered a 155% increase in the number of orders and 67% 
in revenue, followed by increases i n online pet shops (56%), sports items (48%), department 
stores  (37%), food (34%), and self -service (32%). From 2020 to 2021, sales increased by 31%, 
the average price of purchased items increased 22%, the number of orders increased by 7.4%, the 
number of orders with free shipping grew by 8%, and mobile sales increased by 56.2%.399 
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 Brazil.400 In 2020, cross -border e -commerce accounted 
for 21% of total sales, around BRL 22.7 billon. Partnerships between Corr eios (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 complete s the 
service for delivery in the countr y. 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%), followed  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%), digital wallet  (8%), and bank transfer (6%).  
4.296.   The main e -commerce regulatory framework involves e -commerce req uirements 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 righ ts 
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.  
4.297.   Brazil has no de minimis  rule whereby goods below a cert ain 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) 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 exemption (excluding the ICMS  tax) for p ackages 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 exceeding USD  3,000.403 According to t he authorities, a new legislation on customs duties and 
procedures for e -purchases was under consideration.  
 
"Switzerland Climbs to  the Top of Global E -Commerce Index", 17  February . Viewed at: 
https://unctad.org/news/switzerland -climbs -top-global -e-commerce -index . 
399 International Trade Administration, Brazil Country Commercial Guide: eCommerce.  Viewed at: 
https://www.trade.gov/country -commercial -guides/brazil -ecommerce . 
400 International Tr ade Administration, Brazil Country Commercial Guide: eCommerce.  Viewed at: 
https://www.trade.gov/country -commercial -guides/brazil -ecommerce . 
401 Viewed at: https://www.statista.com/statistics/519746/age -distribution -of-on-line-shoppers -in-
brazil/ . 
402 The 1990 Consumer Defence Code (CDC), Decree No.  7,962, 15 March  2013, which regulates the 
CDC in order to adapt it to Brazil's e -commerce reality, and Law No.  12,965 ( Marco Civil da Internet ), 
23 April 2014.  
403 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  WT/TPR/S/ 432 • Brazil  
 
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  4.4.8   Tourism  
4.298.   Brazil ranked 54th in the world in 2019 in terms of passenger arrivals, totalling  
6.4 million  tourists, and ranked 47th in travel receipts.404 Brazil's travel and tourism sector amounted 
to BRL 597 billion in 2019 and BRL 402 billion  in 2020, registering a sharp 32.6% drop after the 
start of the COVID -19 pandemic. These values corresponded to 7.7% and 5.5% of Brazil's GDP. The 
sector employed 7 .64 million  people in 2019 and 6.19  million  in 2020, registering a 19% reduction 
during the first year of the pandemic. These numbers corresponded to 8.2% and 7.2% of the total 
employees, respectively.405 In 2019, domestic spending in tourism reached USD  75.7 billion , while 
international spending accounted for USD  4.8 billion , represent ing 94% and 6%  of total spending , 
respectively. In  2020, domestic spending registered USD  48.8 billion  (94%) while interna tional 
spending dropped to USD  2.9 billion  (6%). Leisure spending represented 89% of the spending, while 
business spending the remaining 11%. In 2019, the main source markets were Argentina (31%), 
the United  States  (9%), Paraguay (6%), Chile (6%), and Urug uay (4.2%).406 In terms of travel 
balance, in 2018 Brazil registered USD  5.917  billion  in travel receipts against USD  18.263  billion  in 
travel expenditures, with a deficit of USD  12.346  billion .407 All hotels are privately owned , and there 
is foreign partici pation in hotel management activities.  
4.299.   The National Council of Tourism (CNT) remains responsible for bringing together government 
and non -government stakeholders to jointly establish the strategic direction for tourism in Brazil; its 
activities are coordin ated by the Ministry of Tourism.408 Pursuant to Decree No.  10,359/2020, the 
competences of the Ministry of Tourism are , inter alia , the development of the national tourism 
policy; promotion of national tourism; foster ing public and private initiatives to en courage tourist 
activities; planning, coordination, supervision , and evaluation of tourism incentive plans and 
programmes; management of the General Tourism Fund; regulation, inspection, certification , and 
classification of activities and equipment of tour ism service providers; national culture policy; and 
protection of historical, artistic , and cultural heritage. The Brazilian Tourist Board (Embratur), an 
autonomous social service, gained more autonomy and agility to carry out its functions, including 
the dissemination of "Marca Brasil" abroad.409 
4.300.   During the review period, the National Tourism Plan 2018 -22 establish ed guidelines and 
strategies for the implementation of the National Tourism Policy and organiz ed the actions to be 
adopted by the public sector. One of the set objectives in the policy is that tourism contributes to 
the reduction of regional, social, and economic inequalities by increasing the labour supply and 
improving income distribution through reduction of bureaucracy in the sector , expansion of 
investments , and access to credit to stimulate competitiveness and innovation. Due to the COVID ‑19 
pandemic, the goals established (increased foreign tourists, increased travel receipts , and new jobs 
in the sector) were missed.  
4.301.   The main regulatory framework governing tourism remains virtually unchanged.410 
4.302.   In addition to the general programmes available to all business activities , other specific 
programmes that provide concessional or admi nistered interest rate loans to investors are: 
FUNGETUR – General Tourism Fund; PROGER – Tourism Investment; FNE – Programme for 
Supporting Regional Tourism in the North -East; FNO – Financing Programme for the Sustainable 
Development of the Amazon (Tourism ); FCO Entrepreneurship – Credit Line; BNDES Automatic; 
BNDES FINEM – Enterprise Financing; BNDES – FINAME  Machinery and Equipment; BNDES Card; 
 
404 United Nations World Tourism Organization (UNWTO). Viewed at: https://www.unwto.org/tourism -
data/country -profile -inbound -tourism . 
405 World Travel & Tourism Council , Brazil: 2022 An nual Research: Key Highlights . Viewed at: 
https://wttc.org/Research/Economic -
Impact/moduleId/704/itemId/77/controller/DownloadR equest/action/QuickDownload . 
406 World Travel & Tourism Council , Brazil: 2022 Annual Research: Key Highlights . Viewed at: 
https:/ /wttc.org/Research/Economic -
Impact/moduleId/704/itemId/77/controller/DownloadRequest/action/QuickDownload . 
407 OECD (2020), OECD Tourism Trends and Policies 2020 . Viewed at: 
https://www.oecd.org/cfe/tourism/OECD -Tourism -Trends -Policies%202020 -Highlights -ENG.pdf . 
408 Viewed at: https://www.gov.br/turismo/pt -br/composicao/c onselho -nacional -de-turismo . 
409 Pursuant to Law No.  14,002/2020,  the Brazilian Institute of Tourism was transformed into the 
Brazilian Agency for the International Promotion of Tourism but kept the same "commercial name" Embratur.  
410 It mainly consists of the General  Tourism Law (Law No.  11,771, 17 September  2008).  WT/TPR/S/ 432 • Brazil  
 
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  and Proger (as from May 2016) .411 FUNGETUR (managed by the Ministry of Tourism) and the 
constitutional financing funds (FNO, FNE, FCO) have tourism -specific credit lines, whereas the 
Worker Support  Fund (FAT) has two general credit lines (Proger Urban Investment and Proger Urban 
Working Capital) that cover the activities of the sector. According to the authorities, b etween  
January  2019 and December 2021, the total amount disbursed for tourism infrastructure projects 
stood at BRL 1.8 billion . In the same period, 2,582 tourism infrastructure projects were concluded 
and around 40,000 jobs were created.412 
4.303.   The Ministry of Tourism, Sebrae , and Embratur launched the Programme Invest in Tourism 
to accelerate the development of the sector and to increase its quality and competitiveness 
in 30 Strategic Tourist Routes in Brazil, with a focus on job creation. The initial investmen t was 
estimated at BRL 200 million .413 Furthermore, other sector -specific programmes include the Support 
for Events Generating Tourist Flows; Programme More Credit More Tourism targeting special credit 
lines to public civil servants and retirees for contrac ting domestic tourism services; Touristic 
Gastronomy Programme, aimed at promoting local aspects for sustainable development of tourism; 
and Project Experiences of Rural Brazil fostering the tourism sector trade of goods and services made 
by family agricul ture. 
4.304.   Brazil also kept an investment portal with detailed information and opportunities for domestic 
and foreign investors targeting the tourism sector.414 The Ministry of Tourism released a Strategy 
Plan for 2020 -23 to strengthen the sector with a focus on  sustainable development.415 
4.305.   To offset the negative effects from the COVID -19 pandemic, the Ministry of Tourism adopted 
a number of initiatives and prepared a strategy to recover the tourism sector, such as the Programme 
Safe Tourism, with behaviour guideli nes, certifications, and other actions to enhance safety in the 
tourism sector.416 A number of certification schemes, conduct guide, and sustainability and security 
plans and strategies on touristic mobility and connectivity were also implemented in the sec tor.417 
4.4.9   Professional services  
4.306.   Professional services remain an important component of Brazil's economy, reaching 
BRL 347 billion in 2019 for value  added, and employing 5.255  million  people in over 
450,000 companies.418 The Siscoserv data compiling information on services exports and imports 
was discontinued as from July 2020. Since the discontinuation of the Siscoserv, the Foreign Trade 
Secretariat, within the Ministry of the Economy, publishes annual reports on Trade in Services, with 
statistics co mpiled by the BCB for the balance of payments, in line with the Manual on Statistics on 
International Trade in Services recommendations, including EBOPS classification.419 
4.307.   Under the Constitution, the Federal Government has exclusive powers to regulate the 
practice of professions.420 Registration in professional associations is mandatory for the provision of 
certain services, such as legal, accounting, architectural and engineering services, and veterinary, 
 
411 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
412 According to t he authorities, PRODETUR+Tourism was no longer in operation and it was about to be 
formally terminated.  
413 Viewed at: https://www.gov.br/turismo/pt -br/acesso -a-informacao/acoes -e-programas/investe -
turismo  and https://www.gov.br/turismo/pt -br/centrais -de-conteudo/mtur -cartilha -investe -turismo -pdf. 
414 Website address of the Tourism Investment Portal: https://investimento.turismo.gov.br/ . 
415 Viewed at: https://www.gov.br/turismo/pt -br/acesso -a-informacao/acoes -e-
programas/planejamento -estrategico -institucional -2013-pei and https://www.gov.br/turismo/pt -br/acesso -a-
informacao/acoes -e-programas/planejamento -estrategico -institucional -2013-
pei/Plano_Estr ategico_MTur__2020_.pdf . 
416 Viewed at: https://www.gov.br/turismo/pt -br/acesso -a-informacao/acoes -e-programas/retomada -
do-turismo  and https://www.gov.br/turismo/pt -br/acesso -a-informacao/acoes -e-programas/retomada -do-
turismo/GuiadeRetomadaEconmicadoTurismoResumoExecutivo.pdf . 
417 Viewed at: https://www.gov.br/turismo/pt -br/acesso -a-informacao/acoes -e-programas/turismo -
responsavel  and https://www.gov.br/turismo/pt -br/acesso -a-informacao/aco es-e-programas/forum -mob-tur. 
418 IBGE, Pesquisa Anual de Serviços 2019 . Viewed at: 
https://www.ibge.gov.br/estatisticas/economicas/se rvicos/9028 -pesquisa -anual -de-
servicos.html?=&t=destaques . 
419 SECEX 2021 Annual Report on Trade in Services . Viewed at : https://www.gov.br/produtividade -e-
comercio -exterior/pt -br/assuntos/comercio -exterior/publicacoes -secex/boletins -de-comercio -
exterior/arquivos/relatorio -servicos -2021.pdf . 
420 Federal Constitution , Article  22. WT/TPR/S/ 432 • Brazil  
 
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  dental , and medical care.421 No professions are reserv ed for Brazilian nationals, but practice of the 
legal, medical, health, and other professions require residence in Brazil.422 Nationals and foreign 
professionals with foreign qualifications (graduation diploma) must obtain revalidation of their 
degrees from  a university recognized by the Ministry of Education, and meet the requirements 
established by law to practise in Brazil. The National Education Council of the Ministry of Education 
regulates the revalidation of foreign diploma, titles, and certificates.423 
4.308.   The request for revalidation must be submitted to a recognized Brazilian university through 
a new online platform.424 The revalidation process is facilitated if the university has an Equivalence 
or Reciprocity Cooperation Agreement with the foreign university. In practice, procedures for 
revalidation of foreign diplomas remain complex and time consuming.425 Brazil does no t have any 
agreement for automatic recognition of qualifications other than with Portugal; therefore, the rules 
are the same for all countries, except Portugal. Furthermore, diplomas and transcripts must be 
legalized in the Brazilian consulates where the s tudies were conducted. Foreign professionals with a 
work contract are subject to the same legal labour rights and requirements as locals.  
4.309.   Under MERCOSUR Decision No.  25/2003426, a regulatory framework allows for granting 
temporary work permits to service pr oviders in member countries.427 A framework agreement for 
reciprocal recognition and grant of registration for temporary professional exercise in 
agro-measurement engineering, agronomy, architecture, geology , and engineering was agreed 
in March  2022. Brazil ian professional associations can issue regulations for granting temporary 
licences, for instance, for architectural, urban planning, engineering, geology , and agronomy 
professionals. However, applicants must have a temporary work contract and a resident v isa, either 
permanent or temporary, enabling them to apply for a temporary professional licence.428 
4.4.9.1   Legal services  
4.310.   The regulatory framework governing legal services remains unchanged.429 The Brazilian 
Bar Association (OAB) continues to regulate and set the s tandards of conduct and qualifications for 
the legal profession at the federal level, and has exclusive authority to admit and discipline attorneys. 
Only lawyers registered with the OAB may receive the title of attorney and perform legal activities 
in Braz ilian law. Anyone possessing a foreign law degree may be admitted to practise law in Brazil 
as an attorney, provided the law degree is validated at a recognized Brazilian law school, and the 
applicant passes the OAB Bar exam, and registers with the OAB. An  attorney's main registration 
must be at the sectional council of the federative unit where he/she intends to establish professional 
domicile. The licence to practise law as an attorney is valid for an indefinite term and attorneys are 
allowed to practice Brazilian law. Brazilian law firms are organized as limited liability entities, with 
unlimited liability of the partners with respect to losses attributed to the practice of law. The 
association of lawyers with non -lawyers is prohibited.430 
4.311.   Foreign -qualifie d lawyers may also practice in Brazil as foreign law consultants. A foreign 
lawyer may establish a consultancy firm in foreign law in Brazil. In this case, the foreign lawyer is 
not required to validate the law degree or to pass the Bar exam. However, OAB authorization and 
registration for legal consultancy services are required and are granted for renewable periods of 
three years. Requirements for obtaining a licence to practise as a foreign law consultant include 
proof of a legal instrument granting recip rocal treatment to Brazilian attorneys in the 
 
421 For some professions, registration is straightforward, as some professional councils, e.g.  the Council 
of Psychology and the Council of Administration, allow foreigners to be registered only after revalidating their 
foreign diploma and showing a profic iency test in the Portuguese language. International Trade Administration, 
Brazil Country Commercial Guide: Licensing Requirements for Professional Services . Viewed at: 
https://www.trade.gov/country -commercial -guides/brazil -licensing -requirements -professional -services . 
422 Immigration Law, Law No.  13,445, 24 May 2017.  
423 Resolution No.  3, 22 June 2016, on the norms ; and Ordonnance of 13  December  2016 on the 
procedures.  
424 Viewed at: https://www.gov .br/pt -br/servicos/reconhecer -ou-revalidar -diploma -de-curso -superior -
obtido -no-exterior . The Platform portal: https://plataformacarolinabori.mec.gov.br/usuario/acesso . 
425 WTO document WT/TPR/S/283/Rev.1, 26  July 2013.  
426 Internalized through Legislative Decree N o. 347, 23 December  2008.  
427 The National Education Council Resolution No.  106/2007 provides for the implementation of Decision 
No. 25/2003 in Brazil.  
428 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
429 Law No.  8,906, 4 July 1994 (as amended).  
430 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  WT/TPR/S/ 432 • Brazil  
 
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  applicant's  country of origin. Foreign law consultants are forbidden from offering consultancy 
services or counselling in Brazilian law and from exercising work as an attorney -at-law. They are 
only allowed to p rovide consultancy on the foreign law of the country where they are licensed to 
practise law. Brazil maintains a Registry of Foreign Law Consultants.431 According to the authorities, 
217 foreign lawyers are registered in Brazil as consultants in foreign law . 
4.312.   A consultancy firm providing foreign law services must be constituted and registered in 
Brazil, and all of its lawyers must be authorized by the OAB. A foreign law consultancy firm cannot 
enter into partnership with a Brazilian attorney practicing Brazil ian law or hire Brazilian lawyers 
unless employed as foreign law consultants.432 
4.313.   A reciprocity agreement with Portugal allows for Portuguese nationals registered at the 
Portuguese Bar Association to register with OAB and practi se law in Brazil subject to a law degree 
obtained from an officially authorized and accredited educational institution in Portugal.433 
4.4.9.2   Accounting and auditing services  
4.314.   According to the Federal Accounting Council (CFC), there are currently 522,798 accounting 
professionals registered in t he country.434 The number of foreign accountants operating in Brazil 
could not be provided.  
4.315.   The regulatory framework governing the accounting and auditing services remains 
unchanged. The profession remains regulated by the Federal Accounting Council (CFC), a special 
corporative body of public law, which remains, inter alia , responsible for compil ing and updating the 
Brazilian Rules of Accountancy. The CFC comprises 1 representative from each of the 27  Regional 
Accounting Councils (CRCs) , which are responsible for implementing the CFC Directives and for the 
registration and supervision of accountan ts in their respective jurisdictions.435 
4.316.   Similar to other professional services, persons holding an accountancy degree from a foreign 
university are required to revalidate their diploma with a Brazilian public university and attend an 
accountancy graduation  course to become acquainted with Brazilian accountancy standards. After 
passing a CFC Sufficiency Exam, professional registration with the local CRC is required.436 
4.4.9.3   Architectural and urban planning services  
4.317.   As of June 2022, there were 212,525 architects and urban planners registered at the Council 
of Architecture and Urbanism of Brazil (CAU/BR). There were 29,984 architecture and urban planning 
companies in Brazil during the same period. A total of 8,853,390 architecture and urbanism projects  
were undertaken.437 
4.318.   The regulatory framework governing architectural and urban planning services remains 
unchanged.438 The CAU/BR at the national level and the Councils of Architecture and 
Urbanism  (CAU/UF) in each of the f ederative states remain responsible for overseeing the exercise 
of these professions. Registration with the relevant CAU/UF is mandatory to exercise the profession 
of architect and urban planner, and is valid throughout the national territory.439 
4.319.   Brazilian citizens and foreigners holding a permanent residence visa who have a university 
degree in architecture and urban planning from an officially recognized foreign institution may 
obtain  CAU registration provided they meet certain requirements. Their degree m ust be duly 
 
431 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
432 More information about the relevant procedures is availab le in WTO document WT/TPR/S/283/Rev.1, 
26 July 2013.  
433 OAB Provision No. 129/2008 regulates the registration of Portuguese lawyers in Brazil.  
434 Viewed at:  https://www3.cfc.org.br/spw/crcs/ConselhoRegionalAtivo.aspx . 
435 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
436 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
437 CAU/BR, Anuário  de Arquitetura e Urbanismo 2019 . Viewed at: https://caubr.gov.br/wp -
content/uploads/2019/06/ANU%C3%81RIO -FINAL -WEB.pdf . 
438 Law No.  12,378, 31 December  2010.  
439 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  WT/TPR/S/ 432 • Brazil  
 
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  legalized by the competent Brazilian consulate and revalidated by an authorized institution 
in Brazil.440 
4.320.   Fixed -term registration may be granted to Brazilian and foreign architects in possession of a 
foreign diploma and a fixed -term work contrac t in Brazil or to winners of an international architecture 
and urbanism competition (international awards).441 In these cases, validation of the foreign diploma 
is not required, but it must be issued by an officially recognized institution in the country of  origin. 
The fixed -term registration is valid for the contract duration and only for the activities specified 
therein; proof of residency in Brazil is required.442 Exceptionally, foreign professionals with no 
permanent residency in Brazil may obtain fixed -term registration, provided they are accompanied in 
all their professional activities by a registered Brazilian architect or architect association with 
residence in  Brazil.443 
4.321.   From January  2014 to January 2019, a registration facilitation agreement between B razil 
and Portugal, which was aimed at promoting the bilateral exchange of knowledge and cooperation, 
as well as reciprocity in registration conditions , allowed for registration of Brazilian and Portuguese 
architects and urban planners in the other country 's register (the CAU/BR or the Order of Architects 
(OA/PT) of Portugal) upon fulfilment of the following requirements: holding a definitive registration 
in their respective country; Brazilian professionals having at least one year of registration at CAU 
and Portuguese professionals having completed a year of compulsory internship; and registration at 
the Register of Individual Taxpayers  (CPF) in Brazil for the members of OA /PT or a Tax Identification 
Number (TIN) in Portugal for those enrolled at CAU/BR.444 The agreement applied only to native or 
naturalized Brazilian and Portuguese persons. For definitive registration, the professional had to 
prove residence in the host country and present the diploma revalidated by the competent authority. 
According to CAU/ BR, there are 9 Brazilian architects registered in OA/PT  and 66 Portuguese 
professionals in Brazil . A new MoU between OA/PT and CAU/BR was signed in June 2022 to evaluate, 
among other aspects, new conditions for implementation of the previous Cooperation Agreement. A 
mutual recognition agreement negotiated between the Federal Council of Engineering of Brazil and 
Portugal's Order of Engineers entered into force in 2015, and a Cooperation Agreement between 
CAU/BR and the Superior Council of Colleges of Spain Architects (CSCAE) was signed in  May 2022. 
CAU/BR also maintains MoUs with other foreign architectural council s, i.e. the United  States (NCARB 
and AIA), the United Kingdom, Costa Rica, Angola, France, Cabo Verde, China, the European  Union 
(Architects Council of Europe), and the United Nations Office for Project Services  (UNOPS).445 
4.4.9.4   Medical services  
4.322.   During the revie w period, the main regulatory framework governing medical services 
remained largely unchanged. Healthcare services are still relatively open to foreign investment 
conditional to limitations set out in the Federal Constitution and corresponding laws.446 
4.323.   Medical doctors in Brazil are regulated by the Federal Council of Medicine (CFM)447, and the 
legal practice of medicine is subject to registration under the competent Regional Council of 
Medicine  (CRM).  
4.324.   The supplementary health sector in Brazil, which comprises  around 50  million  people and 
has annual revenues of more than BRL 240 billion , is also open to foreign investment. This sector is 
regulated by the National Supplementary Health Agency (ANS), a federal regulatory agency with 
administrative, technical , and decision -making autonomy. ANS ' role includes the enactment of rules 
and inspection of market segments, with the aim of promoting the public interest in supplementary 
health care, in addition to regulating sector operators , including with regard to their re lationships 
 
440 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  
441 CAU Resolution No.  35, 6 October  2012.  
442 CAU Resolution No.  26, 6 June 2012.  
443 Law No.  12,378, 31 December  2010, Article  6. 
444 CAU. Viewed at: http://www.caubr.gov.br/acordo -entre -brasil -e-portugal -permite -que-arquitetos -
trabalhem -nos-dois-paises/ . 
445 Viewed at: https://transparencia.caubr.gov.br/cooperacao/ . 
446 Federal Constitution, Article 199, para.  3; Law No. 8,080/1990 ; and Law  No. 13,097/2015.  
447 Law No.  3,268/ 1957 regulated by Decree No.  44,045/ 1958, Law  No. 11,000/ 2004, and 
Decree  No. 6,821 /2009. WT/TPR/S/ 432 • Brazil  
 
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  with providers and consumers, in order to guarantee the sector's sustainability and the quality of 
the services provided.  
4.325.   The More Doctors ( Mais Médicos ) Programme, which aimed at attracting doctors for the 
National Public Health Services (SUS)  in response to much -needed health care in smaller 
municipalities and remote locations448, was replaced by the Doctors throughout Brazil 
Programme  (Médicos pelo Brasil ), launched in  2019 with the objective of structuring the federal 
medical career in places  of high social vulnerability. The latter programme is managed by the Agency 
for the Development of Primary Health Care (ADAPS).449 
4.326.   For the Doctors throughout Brazil Programme, the Government foresaw that over 
4,600 professionals would be hired in 2022 unde r the general Consolidation of Labour Laws  (CLT). 
According to the authorities, the new programme aims to hire 18 ,000 physicians. Any physician with 
a diploma issued by a Brazilian educational institution and professionals trained in foreign institutions 
with (i) a diploma revalidated in Brazil via the Foreign Higher Education Institutions (Revalida), 
(ii) a permanent visa, (iii) enrolment in the Regional Medical Council (CRM), and (iv) a certificate of 
proficiency in Portuguese are eligible to apply to the programme.450 
4.327.   To deal with the health emergency, the use of telemedicine for medical services, including 
medical consultation and digital medicine prescription, was permitted on an exce ptional and 
temporary basis.451 In May 2022, the CFM approved a new regulation establishing rules for the 
practice of telemedicine. It is defined as the exercise of medicine mediated by digital, information, 
and communication technologies, for the purposes of assistance, education, research, disease and 
injury prevention, management, and health promotion. Doctors can choose telemedicine based on 
their assessment that face -to-face care is not more appropriate (i.e. based on the safety and quality 
of patient c are). Telemedicine is only allowed for service providers established or located in the 
national territory. Health service providers have to be registered with the relevant Regional Council 
of Medicine. Telemedicine is the subject of Bill No.  1,998/2020, wh ich authorizes and defines the 
practice of telemedicine. The bill was approved in April by the House of Representatives and is 
pending Senate approval. In the meantime, telemedicine is regulated by the CFM resolution.452 
 
 
448 OECD (2021), Primary Health Care in Brazil , OECD Reviews of Health Systems.  
449 Law No. 13,958 /2019.  
450 Viewed at: http://maismedicos.gov.br/ . 
451 Ministry of Health O rdinance No. 467/20 . 
452 CFM Resolution No.  2,134/2022 ; and Law No. 13,989/2020.  WT/TPR/S/ 432 • Brazil  
 
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by HS section and major HS chapter/subheading, 
2017 -21 
HS Section/chapters/subheadings  2017  2018  2019  2020  2021  
Total exports (USD billion)  215.0  231.9  221.1  209.2  280.8  
 (% of total exports)  
01 Live animals and products  7.2 6.5 7.6 8.2 7.0 
 02 Meat and edible meat offal  6.5 5.7 6.9 7.6 6.5 
 0202 Meat of bovine animals; frozen  2.0 2.0 2.6 3.2 2.5 
 0207 Meat and edible offal of poultry, fresh, chilled or 
 frozen  3.1 2.6 2.9 2.7 2.5 
02 Vegetable products  17.3 18.9 18.3 20.2 18.5 
 08 Edible fruit and nuts  2.3 2.0 2.2 2.6 2.2 
 09 Coffee, tea, maté and spices  2.3 2.0 2.2 2.6 2.2 
 0901 Coffee  2.1 1.9 2.1 2.4 2.1 
 10 Cereals  2.3 1.9 3.5 3.1 1.7 
 1005 Maize (corn)  2.2 1.7 3.3 2.8 1.5 
 12 Oil seeds and oleaginous  fruit 12.1 14.4 11.9 13.9 13.9 
 1201 Soya beans, whether or not broken  12.0 14.3 11.8 13.7 13.8 
03 Fats and oils  0.7 0.6 0.5 0.6 1.0 
04 Prepared food, beverages and tobacco  11.7 9.4 9.0 10.9 9.0 
 17 Sugars and sugar confectioner  5.4 2.9 2.4 4.2 3.3 
 1701 Cane or beet sugar and chemically pure sucrose, in 
 solid form  5.3 2.8 2.3 4.2 3.3 
 22 Beverages, spirits and vinegar  5.3 2.8 2.3 4.2 3.3 
 23 Residues, waste of food industry; animal fodder  2.5 3.1 2.9 3.1 2.8 
 2304 Oil -cake and other solid residues, resulting from the 
 extraction of soya -bean oil  2.3 2.9 2.6 2.8 2.6 
05 Mineral products  19.4 23.3 25.7 26.0 31.3 
 26 Ores, slag and ash  10.4 10.2 11.7 13.8 17.4 
 2601 Iron ores and concentrates; including roasted 
 iron pyrites  8.9 8.7 10.3 12.3 15.9 
 27 Mineral fuels and oils  8.7 12.8 13.7 11.9 13.7 
 2709 Petroleum oil (..), crude  7.7 10.9 10.9 9.4 10.9 
 2710 Petroleum oils (..), other than crude  0.8 1.7 2.7 2.4 2.6 
06 Chemicals and products thereof  4.9 4.7 4.6 4.3 4.1 
 28 Inorganic chemicals, precious metal compound, isotopes  1.8 1.8 1.8 1.6 1.5 
07 Plastics and rubber  2.5 2.2 2.1 1.8 1.9 
 39 Plastics and articles thereof  1.6 1.4 1.4 1.2 1.3 
08 Raw hides and skins; leather, furskins and articles thereof  0.9 0.7 0.6 0.5 0.5 
09 Wood, cork, straw  1.3 1.4 1.3 1.5 1.6 
 44 Wood and articles of wood, wood charcoal  1.3 1.4 1.3 1.5 1.6 
10 Pulp of wood; paper and paperboard  3.9 4.5 4.3 3.7 3.1 
 47 Pulp of wood; recovered paper and paperboard  3.0 3.6 3.4 2.9 2.4 
 4703 Chemical wood pulp, soda or sulphate, other 
 than dissolving grades  2.8 3.4 3.2 2.7 2.3 
11 Textiles and textile articles  1.1 1.1 1.6 1.9 1.6 
 52 Cotton  0.7 0.8 1.3 1.6 1.3 
12 Footwear, headgear, etc.  0.6 0.5 0.5 0.4 0.4 
13 Articles of stone, plaster, cement  0.9 0.8 0.8 0.8 0.8 
14 Precious stones and metals  1.5 1.4 1.9 2.6 2.2 
 7108 Gold (..) unwrought or in semi -manuf. forms, or in 
 powder  form 1.3 1.2 1.7 2.3 1.9 
15 Base metals and articles thereof  7.1 7.1 6.9 5.8 6.8 
 72 Iron and steel  5.0 5.1 5.0 4.1 5.1 
 7207 Iron or non -alloy steel; semi -finished 
 products  thereof  1.5 1.7 1.4 1.3 2.0 WT/TPR/S/ 432 • Brazil  
 
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  HS Section/chapters/subheadings  2017  2018  2019  2020  2021  
16 Machinery, electrical equipment  7.7 7.7 7.1 5.4 5.1 
 84 Machinery and mechanical appliances, parts thereof  6.2 6.2 5.5 4.0 3.8 
 85 Electrical and electronic equipment  1.6 1.5 1.6 1.4 1.3 
17 Transport equipment  8.8 7.2 6.0 4.4 4.2 
 87 Vehicles , other than railway, tramway  6.8 5.4 4.2 3.2 3.2 
18 Precision equipment  0.4 0.4 0.5 0.3 0.3 
19 Arms and ammunition  0.2 0.1 0.2 0.2 0.1 
20 Miscellaneous manufactured articles  0.4 0.4 0.4 0.4 0.5 
21 Works of art, etc.  0.1 0.1 0.2 0.0 0.1 
Other  1.2 1.0 0.0 0.0 0.0 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
  WT/TPR/S/ 432 • Brazil  
 
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  Table A1. 2 Merchandise imports by HS section and major HS chapter/subheading, 
2017 -21 
HS Section/chapters/subheadings  2017  2018  2019  2020  2021  
Total imports (USD billion)  165.9  192.8  193.2  166.3  234.7  
 (% of total imports)  
01 Live animals and products  1.5 1.2 1.2 1.2 1.0 
02 Vegetable products  2.8 2.4 2.5 3.0 2.6 
 10 Cereals  1.2 1.1 1.2 1.4 1.3 
03 Fats and oils  0.6 0.6 0.5 0.8 0.7 
04 Prepared food, beverages and tobacco  2.2 1.9 1.8 1.9 1.4 
05 Mineral products  15.9 16.2 14.9 10.9 14.5 
 27 Mineral fuels and oils  14.7 15.1 13.9 10.1 13.6 
 2709 Petroleum oils and oils obtained from bituminous 
 minerals;  crude  1.8 2.7 2.5 1.7 1.7 
 2710 Petroleum oils and oils from bituminous minerals, 
 not crude  7.5 7.0 7.0 4.8 5.9 
 2711 Petroleum gases and other gaseous hydrocarbons  1.6 2.0 1.5 1.1 2.7 
06 Chemicals and products thereof  19.8 19.9 20.5 22.5 23.5 
 28 Inorganic chemicals  1.3 1.3 1.2 1.2 1.2 
 29 Organic chemicals  5.3 5.7 5.8 6.5 5.9 
 2933 Heterocyclic compounds with nitrogen 
 hetero -atom(s) only  1.2 1.2 1.4 1.6 1.5 
 30 Pharmaceutical products  4.1 3.9 3.9 4.4 4.8 
 3002 Human blood, antisera, other blood fractions (..)  1.8 1.8 1.7 2.1 3.0 
 3004 Medicaments therapeutic or prophylactic use (..)  2.0 1.9 2.0 2.0 1.7 
 31 Fertilizers  4.8 4.8 5.1 5.2 7.1 
 3102 Fertilizers; mineral or chemical, nitrogenous  1.3 1.3 1.4 1.7 2.1 
 3104 Fertilizers; mineral or chemical, potassic  1.6 1.8 1.9 1.7 2.0 
 3105 Fertilizers; mineral or chemical, other (..)  1.6 1.5 1.5 1.7 2.5 
 38 Miscellaneous chemical products  2.6 2.6 2.8 3.4 2.9 
 3808 Insecticides, rodenticides, fungicides, herbicides, 
 and the like (..)  1.5 1.6 1.9 2.2 1.8 
07 Plastics and rubber  6.2 5.7 5.6 5.9 6.5 
 39 Plastics and articles thereof  4.2 4.0 3.9 4.2 4.6 
 40 Rubber and articles thereof  2.0 1.7 1.7 1.7 1.9 
08 Raw hides and skins; leather, furskins and articles thereof  0.3 0.3 0.3 0.2 0.2 
09 Wood, cork, straw  0.1 0.1 0.1 0.1 0.1 
10 Pulp of wood; paper and paperboard  0.8 0.7 0.7 0.6 0.6 
11 Textiles and textile articles  3.2 3.0 2.9 2.8 2.5 
12 Footwear, headgear, etc.  0.3 0.3 0.3 0.3 0.2 
13 Articles of stone, plaster, cement  0.7 0.7 0.7 0.8 0.8 
14 Precious stones and metals  0.3 0.3 0.4 0.4 0.4 
15 Base metals and articles thereof  5.6 5.9 5.8 6.1 7.3 
 72 Iron and steel  1.2 1.3 1.2 1.1 2.1 
 73 Articles of iron and steel  1.5 1.5 1.5 1.6 1.6 
 74 Copper and articles thereof  0.9 0.9 0.8 0.9 1.2 
 76 Aluminium and articles thereof  0.9 1.1 1.1 1.1 1.2 
16 Machinery, electrical equipment  26.5 25.0 26.4 28.2 25.9 
 84 Machinery and mechanical appliances, parts thereof  13.2 12.9 14.0 14.7 13.4 
 8411 Turbo -jets, turbo -propellers and other gas turbines  1.9 1.8 2.2 2.0 1.8 
 85 Electrical machineries and parts thereof  13.3 12.2 12.4 13.5 12.6 
 8517 Telephone sets, including telephones for 
 cellular  networks (..)  2.7 2.3 2.4 2.8 2.0 
 8542 Electronic integrated circuits  2.5 2.4 2.2 2.4 2.2 
17 Transport equipment  8.7 11.3 11.0 9.8 7.8 
 87 Vehicles other than railway, tramway  7.4 8.1 7.7 6.1 6.5 
 8708 Parts and accessories of motor vehicles of 
 heading  No. 8701 to 8705  3.8 3.7 3.7 3.2 3.3 
 88 Aircraft, spacecraft, and parts thereof  1.1 1.1 1.2 1.2 0.9 WT/TPR/S/ 432 • Brazil  
 
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  HS Section/chapters/subheadings  2017  2018  2019  2020  2021  
18 Precision equipment  3.3 3.3 3.3 3.4 2.9 
 90 Optical, photo, technical, medical, etc. apparatus  3.2 3.2 3.2 3.3 2.8 
19 Arms and ammunition  0.02 0.04 0.03 0.1 0.1 
20 Miscellaneous manufactured articles  1.2 1.1 1.1 1.1 1.0 
21 Works of art, etc.  0.01 0.01 0.01 0.01 0.003  
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
  WT/TPR/S/ 432 • Brazil  
 
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  Table A1. 3 Merchandise exports by destination, 2017 -21 
  2017  2018  2019  2020  2021  
Total exports (USD billion)  215.0  231.9  221.1  209.2  280.8  
 (% of total exports)  
Americas  34.2 32.8 31.3 26.3 29.1 
 United  States  12.6 12.5 13.5 10.3 11.2 
 Other America  21.6 20.3 17.8 16.0 17.9 
 Argentina  8.2 6.4 4.4 4.1 4.2 
 Chile 2.3 2.8 2.3 1.8 2.5 
 Mexico  2.1 1.9 2.2 1.8 2.0 
 Canada  1.3 1.4 1.5 2.0 1.8 
 Colombia  1.2 1.2 1.4 1.1 1.2 
 Peru 1.0 0.9 1.0 0.8 1.1 
 Paraguay  1.2 1.3 1.1 1.0 1.1 
 Saint Lucia  0.2 0.2 0.0 0.0 0.8 
 Uruguay  1.1 1.3 1.1 0.8 0.7 
Europe  17.2 18.0 17.1 17.1 16.6 
 EU-27 14.1 14.8 13.6 13.2 13.0 
 Netherlands  3.4 3.5 3.2 3.2 3.3 
 Spain  1.8 2.2 1.8 1.9 1.9 
 Germany  2.3 2.2 2.1 2.0 1.8 
 Italy 1.7 1.5 1.4 1.5 1.4 
 Belgium  1.5 1.4 1.4 1.3 1.2 
 Portugal  0.7 0.6 0.5 0.8 0.9 
 France  1.0 1.1 1.2 1.0 0.9 
 EFTA 0.8 0.8 1.1 1.2 1.3 
 Switzerland  0.4 0.4 0.6 0.7 0.7 
 Other Europe  2.3 2.4 2.4 2.7 2.4 
 Türkiye  0.8 1.0 1.0 1.3 1.1 
 United Kingdom  1.3 1.3 1.3 1.2 1.1 
CISa 1.4 0.9 1.0 0.9 0.8 
Africa  4.4 3.5 3.4 3.8 3.4 
 Egypt  1.1 0.9 0.8 0.8 0.7 
Middle East  5.4 4.2 4.9 4.2 3.6 
 United Arab Emirates  1.2 0.9 1.0 1.0 0.8 
 Iran, Islamic Republic of  1.2 1.0 1.0 0.6 0.7 
Asia 36.3 39.8 42.3 47.7 46.6 
 China  22.1 27.6 28.7 32.4 31.3 
 Japan  2.4 1.9 2.5 2.0 2.0 
 Other Asia  11.8 10.3 11.2 13.3 13.3 
 Singapore  0.9 1.0 1.3 1.8 2.1 
 Korea, Republic of  1.4 1.5 1.6 1.8 2.0 
 India 2.2 1.7 1.3 1.4 1.7 
 Malaysia  1.2 0.9 1.3 1.5 1.7 
 Thailand  0.8 0.8 0.8 1.0 1.0 
 Viet Nam 0.8 0.8 0.9 1.1 0.9 
 Indonesia  0.8 0.6 0.8 1.0 0.7 
 Hong Kong, China  1.2 1.2 1.1 1.1 0.7 
Other  1.0 0.8 0.0 0.0 0.0 
Memorandum:  
EU-28 15.4 16.1 14.9 14.4 14.1 
MERCOSUR  10.7 9.2 6.9 6.3 6.4 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
  WT/TPR/S/ 432 • Brazil  
 
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  Table A1. 4 Merchandise imports by origin, 2017 -21 
  2017  2018  2019  2020  2021  
Total imports (USD billion)  165.9  192.8  193.2  166.3  234.7  
 (% of total imports)  
Americas  35.6 35.4 35.3 33.2 34.6 
 United  States  17.7 18.0 19.0 17.9 17.7 
 Other America  17.9 17.4 16.3 15.3 16.9 
 Argentina  5.9 6.0 5.7 4.9 5.3 
 Mexico  2.8 2.8 2.7 2.4 2.0 
 Chile 2.2 1.8 1.7 1.8 1.9 
 Paraguay  1.7 1.5 1.5 1.8 1.6 
 Saint Lucia  0.0 0.0 0.0 0.0 1.3 
 Canada  1.2 1.3 1.3 1.2 1.2 
 Colombia  0.9 1.0 0.8 0.8 0.9 
 Uruguay  0.8 0.6 0.6 0.7 0.8 
 Plurinational State of Bolivia  0.9 0.9 0.8 0.7 0.6 
 Peru 1.0 1.0 0.8 0.5 0.5 
Europe  23.4 22.4 22.2 22.5 20.3 
 EU-27 19.9 19.1 18.6 18.9 17.1 
 Germany  5.9 5.9 5.8 5.8 5.1 
 Italy 2.6 2.6 2.5 2.5 2.5 
 France  2.9 2.8 2.6 2.6 2.1 
 Spain  1.9 1.7 1.6 1.7 1.5 
 Belgium  1.1 1.0 0.9 0.9 1.1 
 Netherlands  1.2 0.9 1.2 0.9 0.9 
 Sweden  0.7 0.7 0.7 0.8 0.8 
 EFTA 1.6 1.5 1.7 1.6 1.3 
 Switzerland  1.2 1.2 1.4 1.2 1.0 
 Other Europe  1.9 1.8 1.9 2.0 1.9 
 United Kingdom  1.5 1.3 1.4 1.4 1.1 
 Türkiye  0.4 0.4 0.4 0.5 0.6 
CISa 2.1 2.3 2.4 2.2 3.1 
 Russian  Federation  1.7 1.9 2.1 1.8 2.7 
Africa  3.5 3.6 3.0 2.3 2.9 
 Morocco  0.6 0.5 0.5 0.7 0.9 
Middle East  2.5 2.8 2.8 2.8 2.0 
Asia 32.8 33.4 34.1 36.9 37.2 
 China  17.5 19.0 19.4 22.1 22.8 
 Japan  2.5 2.6 2.5 2.6 2.3 
 Other Asia  12.7 11.8 12.2 12.2 12.1 
 India 1.9 2.1 2.4 2.6 3.1 
 Korea, Republic of  3.3 2.9 2.7 2.8 2.3 
 Viet Nam 1.4 1.3 1.4 1.5 1.3 
 Chinese  Taipei  1.3 1.2 1.2 1.3 1.2 
 Thailand  1.0 0.9 0.9 0.9 1.0 
 Indonesia  0.9 0.7 0.7 0.7 0.8 
 Malaysia  0.9 0.9 0.7 0.7 0.8 
 Australia  0.9 0.6 0.5 0.4 0.5 
Other  0.1 0.2 0.2 0.2 0.0 
Memorandum:  
EU-28 21.4 20.4 20.0 20.3 18.3 
MERCOSUR  8.7 8.2 7.8 7.5 7.9 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on UN Comtrade database.   WT/TPR/S/ 432 • Brazil  
 
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  Table A2. 1 Notifications to the WTO, 1  January  2017 -31 January  2022  
Agreement  Description  Periodicity  WTO document 
(last  if recurrent)  
Agreement on Agriculture  
Articles  10 and 18.2 - 
ES:1 Export subsidies 
commitments  Annual  G/AG/N/BRA/65,  03/12/2021  
Articles 10 and  18.2 - 
ES:2 G/AG/N/BRA/66, 03/12/2021  
Articles 10 and 18.2 - 
ES:3 G/AG/N/BRA/67, 03/12/2021  
Article  18.2 - DS:1 Total aggregate 
measurement of support  Annual (or longer for 
developing and 
least developed 
Members)  G/AG/N/BRA/63, 17/05/2021  
Article  18.2 - MA:1 Market access -
administration of tariff 
and other quota 
commitments  One-off then changes 
ad hoc G/AG/N/BRA/55, 12/02/2020  
Article  18.2 - MA:2 Market access - volume 
of imports under tariff 
and other quotas  Annual  G/AG/N/BRA/64, 15/10/2021  
Article  18.3 - DS:2a New or modified exempt 
domestic support 
measures  Ad hoc  G/AG/N/BRA/34, 26/01/2015  
G/AG/N/BRA/31, 18/11/2013  
General Agreement on Trade in Services (GATS)  
Article  III:3 Trade in Services - 
Laws/regulations (GATS)  Ad hoc  S/C/N/1023, 12/10/2020  
Article  III:4 and/or 
Article  IV:2 Contact and enquiry 
points  Once S/ENQ/78/Rev.20, 
25/03/2020  
WT/L/847a Preferential treatment to 
services and service 
suppliers of LDCs  Once; ad hoc  for 
changes thereafter  S/C/N/839, 05/11/2015  
Agreement on the Implementation of Article  VI of the GATT  1994  
Article  16.4 Anti-dumping actions  Ad hoc  Multiple notifications; from 
G/ADP/N/295, 30/01/2017 
to G/ADP/N/363, 
08/12/2021  
Anti-dumping actions 
(taken within the 
preceding six months)  Semi-annual  G/ADP/N/357/BRA, 
19/10/2021  
Article  18.5a Laws/regulations (and 
changes thereto, 
including changes in the 
administration of such 
laws)  Once; ad hoc  for 
changes thereafter  G/ADP/N/1/BRA/3, 
20/09/2013  
GATT  1994  
Article  XVII:4(a) - 
Understanding on the 
Interpretation of 
Article  XVII State trading activities  Annual (triennial full 
notification and 
annual changes)  G/STR/N/18/BRA, 
02/11/2020  
Article  XXIV:7(a) - 
Free-Trade Areas  Free trade areas 
(agreement)  Ad hoc  WT/REG98/N/1, 01/04/2019  
Article  XXVIII:5  Modification of schedules 
(reserve the right to 
modify schedules for a 
three -year period)  Triennial  G/MA/378, 01/10/2020  WT/TPR/S/ 432 • Brazil  
 
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  Agreement  Description  Periodicity  WTO document 
(last  if recurrent)  
Agreement on Import Licensing Procedures  
Article  1.4(a)a Sources in which rules 
and information relevant 
to the Agreement are 
published and copies of 
publications  Once; ad hoc  for 
changes thereafter  G/LIC/N/1/BRA/7, 
31/08/2016  
Article  8.2(b)a Changes in 
laws/regulations and 
administrative 
procedures (first 
notification: full text of 
relevant legislation)   G/LIC/N/1/BRA/6, 22/10/ 2014 
Articles  5.1, 5.2, 5.3a Institution of import 
licensing procedures or 
changes thereto  Ad hoc  G/LIC/N/2/BRA/7, 
31/08/2016  
G/LIC/N/2/BRA/6, 
22/10/2014  
Article  7.3a Replies to Questionnaire 
on Import Licensing 
Procedures  Annual  G/LIC/N/3/BRA/11, 
31/08/2016  
Agreement on Subsidies and Countervailing Measures  
Article  25.1 and 
Article  XVI:1 of 
the GATT  Subsidies  Annual (triennial full 
notification and 
annual changes)  G/SCM/N/372/BRA, 
01/07/2021  
Article  25.11  Countervailing duty 
actions  Ad hoc  G/SCM/N/384, 11/11/2021  
G/SCM/N/382, 15/09/2021  
G/SCM/N/381, 06/08/2021  
G/SCM/N/340, 28/11/2018  
G/SCM/N/338, 17/09/2018  
G/SCM/N/330, 22/02/2018  
G/SCM/N/316, 21/02/2017  
Countervailing duty 
actions (taken within the 
preceding 6 months)  Semi-annual  G/SCM/N/379/BRA, 
19/10/2021  
Article  32.6 Laws/regulations (and 
changes thereto, 
including changes in the 
administration of 
such laws)  Once (at the date of 
entry into force of 
the WTO  Agreement 
for existing laws and 
regulations); ad hoc  
(as and when a 
Member establishes 
such laws and 
regulations, or 
makes changes in 
existing laws and 
regulations or in the 
administration of 
such laws ) G/SCM/N/1/BRA/2/Suppl.16, 
20/10/2020  
G/SCM/N/1/BRA/2/Suppl.15, 
14/10/2020  
G/SCM/N/1/BRA/2/Suppl.14, 
30/01/2019  
 
G/SCM/N/1/BRA/2/Suppl.13, 
30/01/2019    
G/SCM/N/1/BRA/2/Suppl.12, 
08/02/2018  
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  Agreement  Description  Periodicity  WTO document 
(last  if recurrent)  
Agreement on Safeguards    
Article  12.5 and 8.2 Suspensions of 
equivalent concessions  Ad hoc  (when 
relevant action is 
taken)  G/L/1422; 
G/SG/N/12/BRA/5, 
14/12/2021   
Article  12.6 Laws/regulations and 
administrative 
arrangements (and 
changes thereto), or 
absence thereof  Once (promptly after 
the date of entry into 
force of the 
WTO Agreement); 
ad hoc (promptly 
after the 
establishment of 
such laws, 
regulations and 
administrative 
procedures, with 
updates as necessary 
to reflect 
modifications)  G/SG/N/1/BRA/3/Suppl.7, 
20/10/202 0 
  G/SG/N/1/BRA/3/Suppl.6, 
14/10/2020  
G/SG/N/1/BRA/3/Suppl.5, 
30/01/2019  
G/SG/N/1/BRA/3/Suppl.4, 
30/01/2019  
G/SG/N/1/BRA/3/Suppl.3, 
08/02/2018  
Agreement on the Application of Sanitary and Phytosanitary Measures    
Article  7, Annex  B Sanitary/phytosanitary 
regulations  Ad hoc  Multiple notifications; from 
G/SPS/N/BRA/1204, 
05/01/2017 to 
G/SPS/N/BRA/2000, 
28/01/2022    
Agreement on Technical Barriers to Trade    
Article  10.7a Bilateral and multilateral 
agreements; conformity 
assessment procedures; 
standards; technical 
regulations  Ad hoc  G/TBT/10.7/N/132, 
01/07/2016    
G/TBT/10.7/N/131, 
01/07/2016    
G/TBT/10.7/N/130, 
30/06/2016    
G/TBT/10.7/N/129, 
30/06/2016    
Article  2.10 Technical regulations 
(urgent)  Ad hoc  G/TBT/N/BRA/1155, 
26/03/2021    
Article  2.9 Technical regulations  Ad hoc  Multiple notifications; from 
G/TBT/N/BRA/702, 
05/01/2017 to 
G/TBT/N/BRA/1305, 
25/01/2022    
Articles 2.9 and  5.6  Technical regulations 
and conformity 
assessment procedures  Ad hoc   Multiple notifications; from 
G/TBT/N/BRA/806, 
11/04/2018 to 
G/TBT/N/BRA/1264, 
22/09/2021    
Article  5.6 Conformity assessment 
procedures  Ad hoc  Multiple notifications; from 
G/TBT/N/BRA/927, 
22/10/2019 to 
G/TBT/N/BRA/1157, 
30/03/2021    
Article  5.7 Conformity assessment 
procedures  Ad hoc  G/TBT/N/BRA/978, 
16/03/2020   
Unspecified   Technical regulations  Ad hoc  G/TBT/N/BRA/635, 
22/04/2015    
Trade Facilitation Agreement (WT/L/911)a    
Category A commitments  Once WT/PCTF/N/BRA/1, 
29/07/2014    WT/TPR/S/ 432 • Brazil  
 
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  Agreement  Description  Periodicity  WTO document 
(last  if recurrent)  
TRIPS  Agreement   
Article  63.2 Laws / regulations  Once (as soon as 
possible after an 
obligation under the 
TRIPS  Agreement 
becomes effective for 
the Member in 
question); ad hoc  (in 
case of subsequent 
modifications of laws 
and regulations or the 
introduction of new 
ones)  IP/N/1/BRA/4; 
IP/N/1/BRA/P/6; 14/11/ 2019 
 
Regional Trade Agreement   
Enabling clause - RTA Preferential  arrangements  Ad hoc  Multiple notifications; from 
WT/COMTD/N/53, 
20/06/2017 to 
WT/COMTD/RTA15/N/1, 
03/03/2020   
Notification of category commitments under the TFA   
Article  1.4 Trade Facilitation 
(category commitments 
under the TFA)   G/TFA/N/BRA/2, 17/03/2017  
 
 Trade Facilitation 
(category commitments 
under the TFA)   G/TFA/N/BRA/1, 17/03/2017  
 
Agreement on Rules of Origin   
Article  5 §4 A II Laws / regulations  Once (within 90 days 
of the date of entry 
into force of the 
WTO Agreement for 
the Member 
concerned)  G/RO/N/186, 15/04/2019  
 
Decision on Notification Procedures for Quantitative Restrictions (G/L/59)     
Quantitative  restrictions 
(complete  notification)  Biennial  G/MA/QR/N/BRA/2, 
28/09/2018    
a Latest notification so far.  
Source:  WTO Secretariat  
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  Table A3. 1 Summary analysis of Brazil's MFN tariff, 1  April  2022  
  Number 
of lines  Average 
(%) Range 
(%) Coefficient 
of 
variation 
(%) Duty -free 
(%) 
Total  10,433  10.0 0-55 0.9 28.6 
HS 01 -24 1,341  9.1 0-55 0.6 11.7 
HS 25 -97 9,092  10.1 0-35 0.9 31.1 
By WTO category  
WTO agricultural products  1,081  8.9 0-55 0.6 15.3 
 Animals and products thereof  139 7.0 0-14.4 0.6 20.1 
 Dairy products  37 15.8 0-55 0.7 16.2 
 Fruit, vegetables, and plants  297 8.6 0-55 0.6 13.8 
 Coffee and tea  30 11.4 0-18 0.4 10.0 
 Cereals and preparations  140 10.1 0-18 0.5 15.7 
 Oils seeds, fats, oil and their products  131 7.0 0-12.6 0.5 15.3 
 Sugars and confection ery 23 13.8 0-18 0.3 8.7 
 Beverages, spirits and tobacco  78 15.1 0-27 0.2 1.3 
 Cotton  7 5.7 5.4-7.2 0.1 0.0 
 Other agricultural products, n.e.s.  199 6.8 0-12.6 0.6 21.1 
WTO non -agricultural products  9,352  10.1 0-35 0.9 30.2 
 Fish and fishery products  367 9.1 0-32 0.3 4.6 
 Minerals and metals  1,231  8.6 0-18 0.6 19.3 
 Chemicals and photographic supplies  3,298  5.0 0-18 1.2 55.9 
 Wood, pulp, paper and furniture  432 9.2 0-18 0.6 15.5 
 Textiles  836 22.1 0-35 0.4 5.5 
 Clothing  243 35.0 35-35 0.0 0.0 
 Leather, rubber, footwear and travel goods  234 13.8 0-35 0.7 7.3 
 Non-electric machinery  1,135  9.7 0-18 0.5 19.6 
 Electric machinery  614 10.7 0-22.5 0.6 24.6 
 Transport equipment  246 17.3 0-35 0.7 20.7 
 Non-agricultural products, n.e.s.  689 11.3 0-30 0.6 21.3 
 Petroleum  27 0.3 0-5.4 3.6 92.6 
By ISIC sectora 
 ISIC 1 - Agriculture, hunting and fishing  544 6.4 0-55 0.7 25.6 
 ISIC 2 - Mining  126 2.3 0-9 0.9 29.7 
 ISIC 3 - Manufacturing  9,762  10.3 0-55 0.9 28.7 
 Manufacturing excluding food processing  8,921  10.2 0-35 0.9 30.7 
By stage of processing  
 First stage of processing  1,068  6.0 0-55 0.8 26.0 
 Semi-processed products  3,964  7.7 0-26 1.0 42.0 
 Fully processed products  5,401  12.4 0-55 0.7 19.3 
By HS section  
 01 Live animals and products  522 8.3 0-55 0.6 11.3 
 02 Vegetable products  420 7.0 0-55 0.6 20.7 
 03 Fats and oils  79 8.2 0-10.8 0.3 3.8 
 04 Prepared food, beverages and tobacco  320 13.5 0-35 0.3 2.5 
 05 Mineral products  208 1.8 0-5.4 1.0 50.0 
 06 Chemicals and products thereof  3,096  4.7 0-16.2 1.2 57.4 
 07 Plastics, rubber, and articles thereof  432 9.5 0-18 0.7 29.2 
 08 Raw hides and skins, leather, and its products  113 10.3 0-35 0.6 11.5 
 09 Wood and articles of wood  182 7.0 0-12.6 0.6 20.3 
 10 Pulp of wood, paper and paperboard  223 9.9 0-16 0.5 13.5 
 11 Textiles and textile articles  1,051  25.0 0-35 0.4 3.4 
 12 Footwear, headgear, etc.  70 24.1 0-35 0.4 1.4 
 13 Articles of stone, plaster, cement  222 9.6 0-18 0.4 7.7 
 14 Precious stones and metals, pearls  65 8.4 0-16.2 0.7 26.2 
 15 Base metals and articles thereof  748 10.4 0-18 0.5 13.6 
 16 Machinery, electrical equipment, etc.  1,761  10.1 0-22.5 0.6 21.5 
 17 Transport equipment  259 16.9 0-35 0.7 21.2 
 18 Precision equipment  444 10.1 0-20 0.7 26.8 
 19 Arms and ammunition  25 17.3 0-18 0.2 4.0 
 20 Miscellaneous manufactured articles  174 15.0 0-20 0.3 9.2 
 21 Works of art, etc.  19 3.6 3.6-3.6 0.0 0.0 
a ISIC (Rev.2) classification, excluding electricity (1 line).  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
  WT/TPR/S/ 432 • Brazil  
 
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  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 com panies 
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 network of accredited 
banks in Latin America and Africa. 
Capital and consumer goods are 
eligible.  Financing up to 100% of exports' value, 
with a credi t 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 commercialization of Brazilian 
goods and services abroad. Can be 
granted to the importer via the 
exporter (supplier's credit modality) or 
directly to the impor ter (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 EU RIBOR) 
+ 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).  
a BNDES defines MSMEs as those whose annual gross operating revenue does not exceed 
BRL 300 million.  
b A new methodology for goods' accreditation became effective on 3  December  2018. As a result, the 
formerly used index of nationalization (measuring a product's domestic content in value or weight 
terms) was replaced by an index that takes into account the national production chain's 
involvement, the product's technological conten t, R&D investments' share in turnover, export 
sales'  share in turnover, value added per employee, and qualified workers' share in the workforce. 
For more details, see https://www.bndes.gov.br/wps/portal/site/home/financiamento/servicos -
online/credenciamento -de-equipamentos . 
c PPB criteria are a set of predefined manufacturing steps that must take place in Brazil 
(Section  3.3.1.1).  
d The BNDES Fixed Rate is calculated daily. It was 12.22% p.a. for credits up to 36 months and 
11.95% p.a. for credits up to 48 months as of 12  April 2022.  
e The TLP is based on fixed and variable components. Its fixed component is the three -month average 
real interest rate on five -year National Treasury Notes (NTN -B) multiplied by fixed adjustment 
factor. The variable component is inflation, as measured by the IPCA. As of 12  April 2022, the TLP 
was IPCA + 4.94% p.a.  
f The S elic rate is the overnigh t rate set daily by the Central Bank of Brazil.  
Source:  Information provided by the authorities.  
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  Table A3. 3 Selected federal incentive schemes, 2022  
Description  Beneficiaries  Total revenue 
forgone  2017 -22 
(BRL  million)a 
Programme for Technological Development of the Semiconductor Industry (PADIS)  
Zero-rated PIS, COFINS, and IPI on imported or 
locally purchased machinery, appliances, and 
equipment to be incorporated into fixed assets. 
Zero-rated CIDE on sales of transmitt ers; 
Zero rated IRPJ and financial credit to offset the IRPJ, 
proportional to the expenditure on research, 
development and innovation. Expiry  date:  
31 December 2026.  Semiconductor and display 
manufacturers that invest at 
least 5% of their gross domestic 
earnings in R&D.  2,658.9  
Programme for Technological Development of the Digital TV Equipment Industry (PATVD)  
Zero-rated IPI, PIS, COFINS, and CIDE on sales of 
transmitters, as well as on overseas payments for 
capital goods and for the use of technology or 
software. Expiry date: 22  January 2017.  Companies that invest in R&D 
and manufacture transmitters.  0.2 
Special Regime of Incentives for Infrastructure Development (REIDI)  
Suspends PIS and COFINS on machinery and 
equipment acquired for incorporation as fixed assets 
in infrastructure works.  Builders of infrastructure 
facilities for transportation, 
energy (electricity and gas), 
basic sanitation, and irrigation.  7,772.5  
Special Tax Regime for the Defence Industry (RETID)  
Suspends PIS, COFINS, and IPI on imports by RETID 
beneficiaries, and on domestic suppliers'  sales to 
RETID beneficiaries. Expiry  date: 22  March 2032.  Companies admitted to RETID 
and their suppliers of inputs and 
services.  494.7  
Special Tax Regime for the Modernization and Expansion of Ports (REPORTO)  
Acquisition of machinery and equipment is exempt 
from IPI, COFINS, PIS, and import duty (in case of 
goods without domestic equivalent). 
Expired  on 31 December  2020 and reinstated during 
1 January 2022 -31 December 2023. Port operators, concessioners 
and users, as well as railroad 
concessioners and dredging 
companies.  903.5  
Special Regime for the Brazilian Aerospace Industry (RETAERO)  
Suspends PIS and IPI on domestic sales and imports 
of specific goods.  
Expiry date: 14  June 2020.  Companies that manufacture 
inputs or provide technology 
services to RETAERO 
beneficiaries in the production, 
modernization, maintenance or 
repair of aircraft.  16.0 
IT Capacity -Building and Competitiveness -Enhancement ( Lei da informática ) 
Reduces IPI rates on IT goods manufactured 
according to a predefined PPB. Financial credit to 
offset the IRPJ, proportional to the expenditure on 
research, development, and innovation.  Computing, automation, 
telecommunications, 
microelectronics, software and 
technical services industries.  39,426.8  
Innovation Law  
Halves IPI rates on relevant machinery, equipment, 
appliances and instruments. Zero -rates income 
tax (IR) on overseas payments to regist er/maintain 
IPRs. Allows various tax base reductions (deductible 
expenses, same -year depreciation, and accelerated 
amortization).  Companies investing in 
technology R&D  19,084.9  
a Includes estimates for the years 2020 -22. 
Source:  RFB, Statement of Tax Expenditures  (Demonstrativo dos Gastos Tributários, Estimativas Bases 
Efetivas , 2019)  
   
  WT/TPR/S/ 432 • Brazil  
 
- 192 - Table A4. 1 Domestic agricultural support notified to the WTO, 2016/17 , 2017/18 , 2018/19 , 2019/20  
(USD '000)  
 Agricultural Year 
2016/17  Agricultural Year 
2017/18  Agricultural Year 
2018/19  Agricultural Year 
2019/20  
  Below  
de minimis    Below  
de minimis    Below  
de minimis    Below  
de minimis  
Product -specific AMS  75,291.2    100,929.3    0   88,995    
Coffee  9,130.9  Yes ..   ..   ..   
Maize  64,146.6  Yes 91,461.9  Yes ..   ..   
Rice ..   9,467.4  Yes ..   ..   
Sugar cane  247.5  Yes ..   ..   ..   
Wheat  1,766.2  Yes ..   ..   ..   
Orange  ..   ..   ..   88,995  Yes 
Non-product -specific AMS  1,872,553.9  Yes 1,046,534.3  Yes 977,836  Yes 1,285,543  Yes 
Non-product -specific production and marketing credit  650,476.2    ..   10,309    ..   
Debt rescheduling programmes  1,015,427.9    957,774.5    783,449    738,138    
Insurance programmes  206,649.8    88,759.8    184,078    547,405    
Total AMS  0   0   0   0   
Green box assistance  1,660,735.3    1,590,668.5    1,404,471    1,085,762    
Research  63,456.8    65,625.7    50,67 0   16,055    
Pest and disease control  20,591.1    19,704.1    16,568    12,588    
Training services  1,930.4    1,554.8    1,171    3,123    
Extension and advisory services  87,561.9    107,878.8    68,689    42,082    
Inspection services  643.5    728.2    507   5,441    
Marketing and promotion services  2,639.2    6,811.2    3,776    1,323    
Infrastructural services  15,757.3    58,720.5    19,405    10,472    
Other general services  43,315.6    45,645.8    57,863    37,600   
Public stockholding for food security purposes  89,685.4    77,681.9    63,371    28,985    
Domestic food aid  1,219,999.6    1,173,778.6    1,003,748    837,27 0   
Payments for relief from natural disasters  115,154.5    32,539.0    118,703    90,823    
S&D assistance  645,925.9    108,272.1    74,21 0   84,955    
Investment subsidies generally available to agriculture  534,046.6    54,703.3    52,225    60,03 0   
Input subsidies available to low -income or resource -poor producers  111,879.3    53,568.8    21,985    24,925    
Support for diversification from growing illicit narcotic crops  ..   ..   ..   ..   
Total notified assistance  4,254,506.3    2,846,404,2    2,456,517    2,545,255    
.. Not available . 
Source:  WTO document G/AG/N/BRA/52, 1  February  2019; G/AG/N/BRA/58, 19  February  2020; G/AG/N/BRA/63, 17  May 2021; and G/AG/N/BRA/69, 18  February  2022.    
  WT/TPR/S/ 432 • Brazil  
 
- 193 - Table A4. 2 Brazil's air transport agreements and related action, 2022  
Partner (signature)  Entry into 
force  Traffic rights 
(freedoms)  
Cooperative arrangementsa 
Multiple designationb Pricing  Capacity  
Withholding clausef 
Statistics  
ALI 5th 
7th 
cabotage  
Dual approval  
Dual disapproval  
Country of origin  
Zone pricing  
Free pricing  
Predetermination  
Free determination  
Other  
Albania (ASA signed on 04/11/2015)   x   x x     x  x  x x 29.0 
Angola (signed on 16/12/1993, new ASA 
signed on 24/09/2019)  16/12/1983     x x     x x   x x 10.0 
Argentina (signed on 02/06/1948, new ASA 
negotiations initiated on 19/10/2006)  30/06/1967  x   x x   x   x   x x 16.0 
Aruba (MoU signed on 23/06/2006, new ASA 
signed on 16/09/2014)   x   x x     x  x  x x 29.0 
Australia (signed on 21/04/2010, MoU signed 
on 08/07/2008)   x   x x   x   x   x x 16.0 
Austria (signed on 16/07/1993, MoU signed on 
15/11/1995)  10/10/1995     x x x     x   x x 13.0 
Azerbaijan (negotiations initiated on 
10/12/2012)      x x     x  x  x x 23.0 
Bahrain , Kingdom of  (ASA signed on 
14/11/2018)  28/08/2021  x   x x     x  x  x x 29.0 
Bahamas (signed on 07/12/2016)   x   x x     x  x  x x 29.0 
Barbados (signed on 26/04/2010, MoU signed 
on 19/05/2005)   x    x x     x   x x 10.0 
Belgium (signed on 04/10/2009, MoU signed 
on 20/05/2008)  22/09/2011  x   x x   x   x   x x 16.0 
Benin (MoU signed on 07/12/2016, ASA signed 
on 26/04/2018)      x x     x  x  x x 24.0 
Bolivia, Plurinational State of (signed on 
02/06/1951, new MoU signed on 02/09/2004)  18/06/1954  x    x x     x   x x 10.0 
Botswana (ASA negotiations initiated and MoU 
signed on 08/12/2016)   x   x x     x  x  x x 29.0 
Burkina Faso (ASA negotiations initiated and 
MoU signed on 18/04/2012)      x x     x  x  x x 23.0 
Cambodia (ASA negotiations initiated and M oU 
signed on 27/03/2017)   x   x x     x x   x x 29.0   
  WT/TPR/S/ 432 • Brazil  
 
- 194 - Partner (signature)  Entry into 
force  Traffic rights 
(freedoms)  
Cooperative arrangementsa 
Multiple designationb Pricing  Capacity  
Withholding clausef 
Statistics  
ALI 5th 
7th 
cabotage  
Dual approval  
Dual disapproval  
Country of origin  
Zone pricing  
Free pricing  
Predetermination  
Free determination  
Other  
Cameroon (ASA negotiations initiated and MoU 
signed on 19/01/2006)       x   x   x   x x 13.0 
Canada (signed on 15/05/86, MoU signed on 
18/02/2011, new ASA signed on 08/08/2011)  09/03/1990  x   x x     x  x  x x 29.0 
Cabo Verde (signed on 29/07/2004, new ASA 
signed on 31/10/2016, MoU signed on 
09/12/2021)  13/03/2008  x xc  x x     x  x  x x 29.0 
Chile (signed on 30/07/2009, MoU signed on 
13/05/2010, new Route Scheduled updated via 
exchange of correspondence and in force since 
13/04/2020)  13/04/2020  x xc  x x     x  x  x x 35.0 
China (signed on 11/07/1994, M oU signed on 
13/09/2017)  16/02/1998  x   x x   x   x   x x 16.0 
Colombia (ASA signed on 28/05/1958, new 
ASA signed on 19/10/2021 and M oU signed on 
12/12/2018)  02/07/1975  x   x x   x   xd   x x 16.0 
Congo, Dem. Rep. of (ASA negotiations in 
course, MoU signed on 08/12/2021)      x x     x  x  x x 29.0 
Costa Rica (ASA signed on 04/04/2011)  24/09/2018  x   x x     x  x  x x 29.0 
Côte d'Ivoire  (ASA signed on 13/10/2017)      x x     x  x  x x 23.0 
Cuba (signed on 27/05/98, MoU signed on 
25/02/2011, new ASA signed on 31/01/2012)  17/05/2000     x x     x x   x x 15.0 
Curaçao (negotiations initiated on 01/07/2011, 
new ASA signed on 03/12/2013, new MoU 
signed on 20/05/2015)   x   x x     x  x  x x  
29.0 
Czech  Republic  (ASA negotiations finished 
(waiting for signature) and M oU signed on 
08/12/2021)   x xc  x x     x  x  x x 29.0 
Dominican  Republic  (signed on 14/05/2018, 
MoU signed and Protocol of Amendment of the 
ASA initialled on 07/12/2021)   x xc  x x     x  x  x x 29.0 
Ecuador (ASA negotiations initiated and MoU 
signed on 19/04/2012, ASA signed on 
02/05/2013)   x xc  x x     x  x  x x 29.0   
  WT/TPR/S/ 432 • Brazil  
 
- 195 - Partner (signature)  Entry into 
force  Traffic rights 
(freedoms)  
Cooperative arrangementsa 
Multiple designationb Pricing  Capacity  
Withholding clausef 
Statistics  
ALI 5th 
7th 
cabotage  
Dual approval  
Dual disapproval  
Country of origin  
Zone pricing  
Free pricing  
Predetermination  
Free determination  
Other  
Egypt (negotiations initiated on 24/06/2005, 
new MoU signed on 22/10/2015)      x x   x   xd xd  x x 16.0 
El Salvador (ASA negotiations finished and M oU 
signed on 06/12/2021)   x xc  x x     x  x  x x 21.0 
Ethiopia (negotiations initiated on 01/07/2010, 
ASA signed on 24/05/2013)   x   x x     x  x  x x 21.0 
Finland (ASA negotiations initiated and M oU 
signed on 14/09/2018)   x xc  x x      x  x  x x 29.0 
France (signed on 29/10/1965, new ASA 
negotiations initiated on 13/03/2008, updated 
via exchange of correspondence on June 2012)  19/02/1967  x   x x   x   x   x x 18.0 
French Polynesia, France (M oU signed on 
03/06/2016, complementing the ASA between 
Brazil and France signed on 29/10/1965)  19/02/1967  x   x x   x    x  x x 29.0 
Germany (signed on 29/08/57, new ASA 
negotiations initiated on 23/11/2007)  15/08/1964  x   x x   x   x   x x 18.0 
Ghana (ASA signed on 12/04/05, new MoU 
signed on 29/06/2010)   x   x x     x xd   x x 21.0 
Greece (ASA negotiations finished (waiting for 
signature) and M oU signed on 07/12/2021)   x   x x     x xd   x x 21.0 
Guatemala (ASA signed on 30/10/2017)   x   x x     x  x  x x 29.0 
Guinea, Republic of (ASA negotiations initiated 
and MoU signed on 08/12/2016)      x x     x  x  x x 23.0 
Guinea -Bissau (MoU signed on 21/10/2015)   xe   x x      xd   x x 7.0 
Guyana (New ASA signed on 28/06/2017)   x   x x     x  x  x x 29.0 
Haiti (ASA negotiations initiated and M oU 
signed on 21/12/2018)   xe   x x     x  x  x x 29.0 
Hong Kong,  China (signed on 06/09/1991, new 
ASA negotiations initiated and new MoU signed 
on 06/12/2017)  04/07/1994  x   x x   x    x  x x 24.0 
Hungary (signed on 03/04/1997)  16/07/1999      x x     x   x x 4.0 
Iceland (ASA negotiations initiated and MoU 
signed on 01/07/2010)   x   x x     x  x  x x 29.0   
  WT/TPR/S/ 432 • Brazil  
 
- 196 - Partner (signature)  Entry into 
force  Traffic rights 
(freedoms)  
Cooperative arrangementsa 
Multiple designationb Pricing  Capacity  
Withholding clausef 
Statistics  
ALI 5th 
7th 
cabotage  
Dual approval  
Dual disapproval  
Country of origin  
Zone pricing  
Free pricing  
Predetermination  
Free determination  
Other  
India (signed on 10/09/06, MoU signed on 
04/05/10, new ASA signed on 08/03/2011)   x   x x     x xd xd  x x 21.0 
Iran, Islamic Republic of (ASA negotiations 
initiated and M oU signed on 11/12/2018)   xe   x x     x xd x  x x 29.0 
Iraq (signed on 21/01/1977)  12/12/1979       x     x   x x 0.0 
Israel (signed on 22/07/2009, new ASA signed 
on 31/03/2019)  14/06/2011  x   x x     x  x  x x 21.0 
Italy (updated via exchange of correspondence 
in November 2010)  10/09/1952     x x     x x   x x 15.0 
Jamaica (MoU signed on 12/12/2013, ASA 
signed on 13/02/2014)   x   x x     x  x  x x 29.0 
Japan (ASA signed on 14/12/1956, MoU signed 
on 10/04/2014)  28/11/1962  x   x x   x   x   x x 16.0 
Jordan (signed on 05/11/1975, new ASA 
negotiations initiated and MoU signed on 
09/12/2012)  12/08/1976  x   x x     x  x  x x 29.0 
Lebanon (signed on 04/02/1997, MoU signed 
on 08/02/1995)  23/04/1998  x    x x     x   x x 10.0 
Kenya (ASA signed on 14/09/2010, new ASA 
negotiations initiated and MoU signed on 
10/09/2010)  06/06/2016  x   x x     x  x  x x 29.0 
Korea, Rep. of (signed on 11/08/1992, new 
ASA negotiations initiated on 24/04/2009)  31/05/1995  x   x x     x  x  x x 29.0 
Kuwait , State of  (signed on 22/07/2010)  29/01/2019  x   x x     x  x  x x 29.0 
Luxembourg (M oU signed on 06/06/2018, new 
ASA signed on 22/11/2018)   x   x x     x  x  x x 29.0 
Macao , China  (signed on 15/07/1994)  08/02/1996  x   x x x     x   x  14.0 
Malaysia (signed on 18/12/1995, new ASA 
negotiations initiated and M oU signed on 
07/12/2017)  06/08/1998  x   x x x      x  x x 21.0 
Malta (ASA negotiations initiated and M oU 
signed on 25/06/2019)   x   x x     x xd xd  x x 21.0 
Mauritius (MoU signed on 07/12/2016)   xe   x x     x xd xd  x x 15.0   
  WT/TPR/S/ 432 • Brazil  
 
- 197 - Partner (signature)  Entry into 
force  Traffic rights 
(freedoms)  
Cooperative arrangementsa 
Multiple designationb Pricing  Capacity  
Withholding clausef 
Statistics  
ALI 5th 
7th 
cabotage  
Dual approval  
Dual disapproval  
Country of origin  
Zone pricing  
Free pricing  
Predetermination  
Free determination  
Other  
Mexico (new ASA signed on 26/05/2015)  29/09/2018  x   x x   x   xd xd  x x 24.0 
Morocco (new ASA negotiations initiated and 
MoU signed on 11/09/2009)  07/03/1979     x x   x   x   x x 10.0 
Mozambique (ASA signed on 17/06/2010, MoU 
signed on 04/06/2009)   x   x x   x   x   x x 16.0 
Namibia (ASA negotiations initiated and MoU 
signed on 12/12/2013)   x   x x     x  x  x x 29.0 
Netherlands (new ASA signed on 08/07/2019)  01/07/2021  x   x x     x xd xd  x x 29.0 
New Zealand  (signed on 18/06/1996, MoU 
signed on 12/12/2012 and new ASA signed on 
11/03/2013)  29/10/1998  x   x x     x  x  x x 29.0 
Nicaragua (ASA negotiations initiated and M oU 
signed on 29/10/2018)   x   x x     x  x  x x 29.0 
Nigeria (signed on 06/09/2005, new MoU 
signed on 13/12/2005)  25/09/2008  xe   x x     x x   x x 15.0 
Oman (ASA negotiations initiated and MoU 
signed on 01/07/2010, new MoU signed on 
08/12/2021)   x xc  x x     x  x  x x 29.0 
Panama (ASA signed on 25/05/2007, updated 
via exchange of correspondence in July 2014)  11/01/2010  x xc  x x     x  x  x x 29.0 
Paraguay (signed on 20/12/1952, new ASA 
signed on 08/06/2016)  20/05/1954  x xc  x x     x  x  x x 29.0 
Peru (signed on 11/12/2009, new MoU signed 
on 15/08/2008)  21/08/1957  x xc  x x   x  x  x  x x 24.0 
Philippines (ASA negotiations initiated and MoU 
signed on 20/05/2013)   x   x x   x    x  x x 24.0 
Poland (signed on 13/03/2000, updated by 
exchange of correspondence in April 2001)  09/12/2019     x x x        x x 24.0 
Portugal (MoU 2019 ) 08/03/2007  x   x x     x  x  x x 29.0 
Qatar (ASA signed 28/10/2018 MoU 
13/12/2019)   x xc  x x     x  x  x x 29.0   
  WT/TPR/S/ 432 • Brazil  
 
- 198 - Partner (signature)  Entry into 
force  Traffic rights 
(freedoms)  
Cooperative arrangementsa 
Multiple designationb Pricing  Capacity  
Withholding clausef 
Statistics  
ALI 5th 
7th 
cabotage  
Dual approval  
Dual disapproval  
Country of origin  
Zone pricing  
Free pricing  
Predetermination  
Free determination  
Other  
Russian  Federation (signed on 22/01/1993, 
MoU signed on 14/02/2008 and new ASA 
negotiations initiated on 09/02/2011)  07/11/1995     x x     x x   x x 15.0 
Rwanda (ASA signed on 14/08/2019)   x   x x     x  x  x x 29.0 
Saint Maarten (ASA signed on 08/07/2019)  01/07/2021  x   x x     x  x  x x 29.0 
Saudi Arabia , Kingdom of  (ASA signed on 
14/04/2015)  01/09/2021  x   x x     x    x x 21.0 
Scandinavia (Denmark, Norway , and Sweden)  
(signed on 18/03/1969, new ASA negotiations 
initiated and M oU signed on 13/12/2018)   
19/02/1970  
 
08/12/1969  x   x x     x  x  x x 29.0 
Senegal (ASA signed on 16/05/2007, new ASA 
negotiations initiated and MoU signed on 
10/12/2021)  06/11/2009  x   x x   x   x   x x 16.0 
Serbia (ASA negotiations initiated and MoU 
signed on 19/10/2015, new MoU signed on 
22/03/2022)   x   x x     x  x  x x 23.0 
Seychelles (MoU signed on 12/12/2013, ASA 
signed on 19/05/2015)   x   x x     x  x  x x 29.0 
Sierra  Leone  (ASA negotiations initiated and 
MoU signed on 12/12/12)   x   x x     x  x  x x 29.0 
Singapore (signed on 25/11/2008, new ASA 
negotiations initiated on 27/06/2008, MoU 
signed on 29/06/2010)  02/09/1999  x   x x     x  x  x x 29.0 
Slovenia (ASA negotiations initiated and M oU 
signed on 22/03/2021)   x   x x     x  x  x x 29.0 
South  Africa  (signed on 26/11/1996, MoU 
signed on 27/05/2008)  17/10/2001  x   x x   x   x   x x 16.0 
Spain (signed on 28/11/1949, new ASA 
negotiations initiated on 13/07/2018)  11/03/1954  x   x x     x xd xd  x x 21.0 
Sri Lanka (ASA negotiations initiated and MoU 
signed on 08/08/2014)   x   x x     x  x  x x 29.0 
Sudan (ASA negotiations initiated and MoU 
signed on 10/12/2013)   x   x x     x  x  x x 29.0   
  WT/TPR/S/ 432 • Brazil  
 
- 199 - Partner (signature)  Entry into 
force  Traffic rights 
(freedoms)  
Cooperative arrangementsa 
Multiple designationb Pricing  Capacity  
Withholding clausef 
Statistics  
ALI 5th 
7th 
cabotage  
Dual approval  
Dual disapproval  
Country of origin  
Zone pricing  
Free pricing  
Predetermination  
Free determination  
Other  
Suriname (signed on 28/01/1980, new ASA 
negotiations initiated and MoU signed on 
21/08/2009)  13/07/1983  x   x x   x  x  x  x x 24.0 
Switzerland (ASA signed on 08/07/2013)  13/06/2021  x   x x     x  x  x x 29.0 
Tanzania (negotiations initiated on 
30/08/1989, new ASA negotiations initiated 
and MoU signed on 10/12/2013)   x   x x     x  x  x x 29.0 
Thailand (signed on 21/03/1991) MoU signed 
12/4/2017  22/06/1994  x   x x     x x x  x x 29.0 
Trinidad and Tobago (signed on 23/07/2008, 
MoU signed on 01/12/2005)   x    x   x   x   x x 13.0 
Togo (ASA negotiations initiated and MoU 
signed on 12/12/2013)   x   x x     x  x  x x 29.0 
Türkiye (signed on 21/09/1950, new ASA 
negotiations  initiated on 11/05/2006, MoU 
signed on 19/10/2015), new ASA signed 
12/5/2017  29/03/1952  x   x x     x x   x x 21.0 
Ukraine (ASA signed 13/12/1996, new ASA 
negotiations initiated and MoU signed on 
02/12/2009, MoU signed on 19/02/2008)   x   x x   x      x x 16.0 
United Arab Emirates (ASA signed on 
16/03/2017)  17/10/2018  x   x x     x  x  x x 29.0 
United Kingdom (signed on 31/10/1946, new 
ASA negotiations initiated on 22/10/2008, 
updated via exchange of correspondence in 
October 2010, MoU signed on 4/11/2020)  18/08/1950  x xc  x x     x  x  x x 35.0 
United  States  (New ASA signed on 
19/03/2011)  21/05/2018  x   x x     x  x  x x 29.0 
Uruguay (signed on 10/03/2009, MoU signed 
on 11/07/2012)  11/01/2011  x xc  x x     x  x  x x 29.0 
Venezuela, Bolivarian Republic of (ASA signed 
on 30/09/2008, MoU signed on 07/08/2008)  10/10/1991  x   x x   x   x   x x 16.0 
Viet Nam (MoU signed on 22/10/2015, new 
ASA signed on 02/07/2018)      x x     x  x  x x 23.0   
  WT/TPR/S/ 432 • Brazil  
 
- 200 - Partner (signature)  Entry into 
force  Traffic rights 
(freedoms)  
Cooperative arrangementsa 
Multiple designationb Pricing  Capacity  
Withholding clausef 
Statistics  
ALI 5th 
7th 
cabotage  
Dual approval  
Dual disapproval  
Country of origin  
Zone pricing  
Free pricing  
Predetermination  
Free determination  
Other  
Yemen (ASA negotiations initiated and MoU 
signed on 03/07/2013)   x   x x     x  x  x x 29.0 
Zambia (ASA negotiations initiated and MoU 
signed on 10/12/2013 )  x   x x     x  x  x x 29.0 
Zimbabwe (ASA negotiations initiated and MoU 
signed on 11/03/2010)   x   x x     x  x  x x 29.0 
a One party's airlines may sign code -share and other cooperation agreements with the other party's airlines and with third countries' airlines.  
b Parties are allowed to grant authorization to more than one airline to exploit the rights agreed.  
c Up to 7th traffic rights for all -cargo services only.  
d Free de termination of capacity for all -cargo services and predetermination for passenger -combination services.  
e Up to 5th traffic rights for all -cargo services and up to 4th traffic rights for passenger -combination services.  
f "Withholding clauses" exist in all ASAs signed by Brazil covering capacity as well as safety and security aspects, as a breach of contractual clauses and pr ecaution.  
Note:  The term "Air Transport Agreements" is used here to refer to Air Services Agreements, Memoranda of Understanding, E xchange of Notes, and other such relevant 
instruments . 
Source:  WTO Secretariat , based on information provided by the authorities . 
__________