RESTRICTED  
  
WT/TPR/G/358  
12 June  2017 
(17-3105) Page: 1/35 
Trade Policy Review Body  Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
BRAZIL 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Brazil  is 
attached.  
 
 
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 . WT/TPR/G/358 • Brazil  
 
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  Contents  
1   OVERVIEW  ................................ ................................ ................................ ..................  4 
2   GENERAL ECONOMIC ENV IRONMENT  ................................ ................................ ..........  4 
2.1   Macroeconomic Overview  ................................ ................................ .............................  4 
2.2   General Legal and Regulatory Framework  ................................ ................................ ....... 5 
2.2.1    Business environment  ................................ ................................ ...............................  5 
2.2.2    Financial system  ................................ ................................ ................................ ....... 7 
2.2.3    Insurance market  ................................ ................................ ................................ ..... 8 
2.2.4    Securities market  ................................ ................................ ................................ ....11 
2.2.5    Government procurement  ................................ ................................ ......................... 11 
2.2.6    Exchange rate and foreign capital regime  ................................ ................................ ...11 
2.2.7    Export insurance ................................ ................................ ................................ ......12 
2.2.8    Long run production and export finance  ................................ ................................ ......12 
2.3   Social Policies  ................................ ................................ ................................ ............ 13 
3   TRADE POLICY DEVELOP MENTS (2013 -16) ................................ ...............................  14 
3.1   Latest Developments in Brazilian Foreign Trade  ................................ .............................. 14 
3.2   Participation in the WTO  ................................ ................................ .............................. 14 
3.2.1    Negotiations  ................................ ................................ ................................ ............ 14 
3.2.2    Dispute settlement  ................................ ................................ ................................ ...15 
3.2.3    Special and differential treatment  ................................ ................................ .............. 15 
3.3   Preferential Agreements  ................................ ................................ .............................. 15 
3.3.1    MERCOSUR  ................................ ................................ ................................ ............. 16 
3.3.2    MERCOSUR and regional agreements  ................................ ................................ ......... 17 
3.3.3    MERCOSUR and extra -regional agreements  ................................ ................................ .18 
3.3.4    Global system of trade preferences  ................................ ................................ ............ 18 
3.4   Investment Agreements  ................................ ................................ .............................. 19 
4   TRADE INSTITUTIONAL AND REGULATORY FRAME WORK ................................ ..........  19 
4.1   Cross -Cutting Issues  ................................ ................................ ................................ ...19 
4.1.1    Implementation of good regulatory practices  ................................ ............................... 19 
4.1.2    Technical reg ulations and standards  ................................ ................................ ........... 20 
4.1.3    Trade facilitation  ................................ ................................ ................................ ......20 
4.1.4    Sanitary and phytosanitary issues  ................................ ................................ .............. 22 
4.1.5    Competition policy  ................................ ................................ ................................ ...22 
4.1.6    Trade remedies  ................................ ................................ ................................ .......23 
4.1.7    Intellectual property  ................................ ................................ ................................ .25 
4.2   Sectoral Issues ................................ ................................ ................................ ........... 26 
4.2.1    Industry  ................................ ................................ ................................ ................. 26 
4.2.2    Agriculture  ................................ ................................ ................................ .............. 26 
4.2.3    Services  ................................ ................................ ................................ ................. 27 
4.2.4    Renewable energy  ................................ ................................ ................................ ...28 WT/TPR/G/358 • Brazil  
 
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  4.2.5    Land t ransport ................................ ................................ ................................ ......... 29 
4.2.6    Air transport  ................................ ................................ ................................ ........... 30 
4.2.7    Ports and maritime transport ................................ ................................ ..................... 31 
4.2.8    Telecommunications  ................................ ................................ ................................ .32 
5   FUTURE DEVELOPMENTS  ................................ ................................ ...........................  33 
 WT/TPR/G/358 • Brazil  
 
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  1  OVERVIEW  
1.1.  The Brazilian Government is pleased to submit its Seventh Trade Policy Report t o WTO 
Members. Brazil considers this periodic review mechanism as a key element of the multilateral 
trading system embodied in the WTO, contributing to a more transparent and comprehensive 
understanding of Members' trade policies and regulatory frameworks.  
1.2.  The period examined in this TPR (2013 -16) has been a challenging one for Brazil and 
Brazilians. Nevertheless, Brazil has continued to pursue a trade agenda that is geared to 
contribute, domestically, to the country's sustainable development and to the red uction of poverty 
and social exclusion, and, internationally, to enhance cooperation, mutual benefits and to eliminate 
trade distortions – such as those that exist in trade in agriculture – that undermine opportunities 
for developing countries.  
1.3.  The multil ateral trading system is a priority in Brazil's foreign trade policy. Brazil believes that 
well-functioning multilateral trade rules are essential for the efficiency of international trade and 
for the good functioning of the global economy, contributing si gnificantly to counter anti -trade 
sentiments and protectionism. Brazil has insisted on development -oriented and tangible results in 
the negotiations in the World Trade Organization, having the DDA and its mandates as the main 
reference. It is also currentl y actively engaged in the discussion of all other topics on the table for 
the 2017 Buenos Aires Ministerial Conference, including the so -called new issues, on their own 
merits.  
1.4.  Notwithstanding the priority it attributes to the multilateral trading system, Brazil believes 
that preferential trade agreements can play a complementary role in the efforts to harness the 
benefits of international trade towards the goal of economic and social development of all 
Members. In the period under review, Brazil engaged, t herefore, in the negotiation of new bilateral 
and regional trade agreements with partners in Africa, Asia, Europ e, Latin America and the 
Middle  East as well as has undertaken talks to expand the scope of existing agreements.  
2  GENERAL ECONOMIC ENV IRONMENT  
2.1  Macroeconomic Overview  
2.1.  The Brazilian economy is beginning to recover from the unprecedented recession in 
2015-2016, as the gradual implementation of an agenda of structural reforms and fiscal 
consolidation begins to have a positive impact on the expectations  of the industry and consumers. 
Since 2015, the economic activity has declined around 7 %, led by strong contractions in 
consumption and investment. The unemployment rate has increased from 6.5 % in December 2014 
to 11.9 % in November 2016, and 2.9 million fo rmal jobs have b een lost. After growing 3.0% 
in 2013 and 0.5% in 2014, GDP contracted 3.8% in 2015 and 3.6% in 2016. Brazil suffered a 
severe supply shock that combined factors such as: (i) the fall in  commodity prices that began 
in 2011 and impacted expor ters of commodities through the reversal of favourable  terms of trade 
that had been in place for a decade; (ii) the growth of public and private spending, leading to high 
indebtedness levels; and (iii) distortions in administrative prices that contributed to raise inflation, 
leading to monetary policy tightening.  
2.2.  The public sector is now seeking fiscal consolidation in accordance with the principle of fiscal 
responsibility, one of the pillars of Brazil's economic policy. Co nsistent primary surpluses 
from 2002 to 2013 contributed to a decline in public debt. During that period, primary surpluses 
averaged 2.9% of GDP. Net public debt was reduced from 59.9% of GDP in 2002 to 30.5% in 2013 
and gross public debt reached 51.5% of GDP in 2013, declining 5 p.p. of G DP compared to 2006, 
when historical series started. However, influenced by the slowdown of economic activity, the 
nonfinancial public sector has incurred in primary deficits, from 0.6% of GDP in 2014 to 2.5 % at 
the end of November 2016, in cumulative 12 -month terms. Net public debt and gross public debt 
reached, respectively, 43.8% and 70.5% of GDP.  
2.3.  In order to avoid that public debt reach an unsustainable path, several measures were 
implemented to return to fiscal equilibrium, including a constitutional a mendment that limits, for 
the next twenty years, the increase of total federal primary spending to the previous year's 
inflation rate. Besides, the Government proposed a bill to Congress in order to reform the pension WT/TPR/G/358 • Brazil  
 
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  system and approved a plan to reprogra m subnational government debts, extending maturities 
and granting some relief in debt service. The Budget Guidelines Law for 2017 envisages reductions 
in both the primary and nominal deficits for the next years – reaching a primary surplus of 0.2% of 
GDP i n 2019 –, as well as an inversion of the public debt upward trajectory.  
2.4.  The federal securitized debt has low exposure to foreign currency and is held, largely, by 
domestic investors. Besides, the maturity of federal securitized debt has remained relatively  stable 
since the end of 2014, averaging 54 months in November 2016. I n terms of composition, 
between  2014 and November 2016, the share of fixed rate bonds in federal securitized debt fell 
from 43.1% to 37.2%; the share with floating interest rates increas ed 9.5 p.p. reaching 28.7%; 
and the inflation indexed share declined from 32.8% to 29.7%.  
2.5.  After reaching 10.7% in 2015, above the upper -limit of the target range, 12 -month inflation 
declined to 6.3% at the end of 2016 (within the tolerance limits of the ta rget), as a result of the 
tighter monetary policy of Banco Central do Brasil  (Central Bank  of Brazil – BCB). The spike 
in 2015 was largely explained by relative price adjustments, mainly in monitored prices. Due to 
the significant weight in the CPI basket,  the impact of this adjustment over headline inflation and 
expectations was widespread. After the conclusion of the adjustment, as second round effects 
were limited by a tighter stance on BCB's monetary policy, inflation expectations receded. In this 
conte xt, expectations for 2017 moved down to around 4.8%, co nverging to the 4.5% target 
for 2018 and longer horizons. Short -run inflation behaviour  has been more favourable , which may 
signal lower inflation persistence. As inflation has decreased towards the in flation target, the BCB 
began to reverse the monetary cycle, allowing the reduction of the basic interest rate (SELIC, the 
monetary policy rate), which generates a more stable and positive outlook of the economy.  After 
15 months at 14.25%, SELIC has been r educed since October 2016, reaching 11.25% at the last 
meeting of the Monetary Policy Committee, held in April, 2017.  
2.6.  Interest rates on loans are also expected to decline, reversing the upward trend seen in 
previous years. The credit market has contracted  significantly, due to demand constraints driven 
by slow economic activity, heightened uncertainties, high indebtedness level of the corporate 
sector and increased unemployment. In this scenario, the outstanding stock of loans in the 
financial system contr acted by 3.5% in 2017, reaching 49.5% of GDP. Loans to the corporate 
sector retreated by 9.5%, while loans to households increased by 3.2%. Interest rate spreads, 
that had increased in line with the tighter monetary policy cycle, are expected to decline as  the 
basic interest rate has been reduced.  
2.7.  Brazil has been one of the early adopters of macroprudential policies. The National Monetary 
Council (CMN) and the BCB played a major role in monitoring and acting to ensure financial 
stability during the global f inancial crisis. The BCB has been actively developing its 
macroprudential policy framework for some time, devoting resources to systemic risk monitoring, 
implementing various macroprudential or capital flow management measures and, more recently, 
establish ing a Financial Stability Committee within the BCB.  
2.8.  Regarding foreign trade, after an increase in 2013, it decline d at an annual average rate of 
-8.5% in exports and -16.9% in imports. Exports decreased from US$242.0 billion in 2013 to 
US$185.2 billion in 2016, while imports declined from US$239.7 billion in 2013 to US$137.6 billion 
in 2016. In the 2013 -2016 period, the current account deficits, as a percentage of GDP, reached 
3.0%, 4.2%, 3.3% and 1.2% in each of those years. At the same time, the country h as remained 
attractive to foreign investment, mainly foreign direct investment  (FDI), which totalled  
US$78.92  billion in 2016. Thus, the current account deficit was fully financed by net FDI inflows. 
International reserves remained at high levels, reaching  US$372.2 2 billion at the end of 2016, 
bolstering the ability of the Brazilian economy to face external shocks. In February 2017, the stock 
of international reserves represented US$375.3 billion, four times more than the debt service for 
the 12 months ahea d. 
2.2  General Legal and Regulatory Framework  
2.2.1   Business environment  
2.9.  Brazil believes that the concept of competitiveness must be considered at a global level. In 
addition to the fiscal adjustment currently in progress, the Brazilian Government is implementing WT/TPR/G/358 • Brazil  
 
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  an important agenda to promote productivity and competitiveness. This plan reflects the 
dynamism and commitment of the Government to achieve openness in international trade, 
reduction of red tape, attraction of investment and enhancement of innovation and p roductivity.  
2.10.   The Government is working on transversal policies with a great impact on the 
competitiveness of companies. In this regard, the Government has pursued policies ranging from 
the modernization of public management to the improvement of the busin ess environment. 
Projects include a restructuring of the national industrial property system, the Foreign Trade Single 
Window Program, and efforts to simplify internal procedures and revisit the legal frameworks that 
create unnecessary transaction costs fo r the production sector.  
2.11.   In this connection, it is important to highlight Brazilian programs to boost innovation in the 
business environment, for example the Pronatec Productive Sector, which is a large -scale 
professional qualification program aimed at fos tering innovation and competitiveness in Brazilian 
companies. The program provides for the adaptation of government -backed vocational courses to 
the reality of the market by mapping demands of the private sector for the skilled work.  
2.12.   In addition, the Gove rnment is developing partnerships and new instruments for 
international cooperation, in order to encourage joint research, development and innovation 
(RD&I) between Brazilian and foreign companies. The Ministry of Industry, Foreign Trade and 
Services launc hed four calls for proposals for joint RD&I projects between Brazilian and foreign 
companies, in partnership with the Governments of Israel,  France, Germany and the 
United  Kingdom. Currently, the calls between Brazil and the last two countries are operativ e. 
Through these calls for proposals, each country undertakes to use available financial mechanisms 
to support their companies in bilateral private sector projects aimed at developing new products, 
processes and technologies. The overall objective is to st imulate the inception and strengthening 
of partnerships between Brazilian and foreign companies, the development of innovative solutions 
and the integration of Brazilian companies in global value chains.  
2.13.   In 2015, the Government launched a national program to develop RD&I centres , aiming to 
institutionalize a permanent process of attraction of investment in innovation to Brazil: the 
Innovate in Brasil Program ( http://www.innovateinbrasil.com ). The program seeks  to increase 
investment in innovation through the development of R&D centres  and projects. In order to do 
that, it establishes a one -stop shop in the Federal Governmen t for investment in innovation – 
Apex-Brasil – which concentrates  and provides informatio n about the Brazilian market, 
technological infrastructure, skilled human resources and governmental incentives, offering 
customized packages for each investor with essential information for the success of the 
investment.  
2.14.   The InovAtiva Brasil Program ( http://www.inovativabrasil.com.br ) is also active, being 
responsible for connecting innovative early -stage businesses to investors and to other national 
programs that foster innovation and promote their intern ational insertion. The Program was 
launched in 2013 with the purpose of training thousands of entrepreneurs, focusing on business 
skills. The idea is to accelerate innovative business in a free, practical way with world -class quality. 
Currently, there are more than 21,000 entrepreneurs signed on the program 's platform and more 
than 6,000 startup projects submitted. 600 volunteer mentors (business executives, angel 
investors, successful entrepreneurs) have been responsible for almost 10,000 hours of mentorin g 
to 900 selected startups from all regions of the country (420 reaching the final stage of 
connection, presenting their business to investors and executives at InovAtiva Demodays).  
2.15.   It is also important to mention that Brazil adopts international accountin g standards issued 
by the International Accounting Standards Board (IASB), based in London. Thereby, the 
accounting of Brazilian companies is aligned with the best international standards, followed by 
more than 120 countries in the world. The adoption was initiated in 2007 with the approval of 
Federal Law 11.638, dated 28 December 2007 and it was consolidated in 2010, when all 
companies that operate in the securities market presented their financial statements according to 
the new standard. Therefore, Brazi l has a regulatory accounting framework that offers high quality 
information about the reality of the companies that operate in its territory and allows investors 
from all over the world to do their business in a reliable and transparent environment.  WT/TPR/G/358 • Brazil  
 
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  2.2.2   Finan cial system  
2.16.   The stability of the Brazilian financial system has remained high in recent years, although 
the real economy adverse scenario has affected credit risk indicators, resulting in cautious credit 
granting policy as well as low borrower demand. The level of credit in Brazil still seems modest in 
international comparisons, as mentioned in the IMF/WB FSAP report. Recently banks have raised 
their capacity to absorb short term liquidity shocks while structural liquidity risks remained 
unchanged, with lon g-term assets fully supported by sources of stable funding. The system 
continues to surpass the required regulatory minimums even considering the Basel III stricter 
conditions, the economic scenario and political turbulences. Additionally, the leverage rat io, well 
above the requirements in discussion in international fora, reinforces the financial system 
solvency. Stress tests outputs indicate that the banking system is able to absorb shocks from 
adverse macro -economic scenarios, as well as from abrupt chan ges in interest and exchange 
rates, from increase in defaults and from widespread decline in house prices, despite the increase 
in impacts due to materialization of risks from macroeconomic environment.  
2.17.   Brazilian authorities have continuously and promptly implemented measures to improve the 
financial system's regulatory framework, such as minimum requirements to be observed by 
systemically important financial institutions when developing and implementing recovery plans, as 
well as rules to enhance the safet y and efficiency of financial institutions transactions. For 
instance, the Credit Information System (SCR) could be mentioned. Managed by the BCB, it 
functions as credit bureau since 2002. Currently the SCR gathers (credit) data for exposures to 
individual  domestic borrowers above R$200 (U$ 60 in Jan/17) reducing information asymmetries 
among borrowers, contributing to improve the efficiency of the credit market and the risk 
management by lenders. The SCR is used also to conduct impact studies for regulatory  policies 
and to identify early warnings of threats to financial stability that can lead to the development of 
regulatory policies.  
2.18.   Brazil remains committed to implement the Basel III capital framework in a schedule 
consistent with goals for capital defini tion, minimum capital requirements, capital buffers, liquidity 
ratios and leverage ratio. Final regulations were issued on 1 March 2013 by the National Monetary 
Council and by the Banco Central do Brasil , covering the redefinition of capital; new capital 
requirements and introduction of capital buffers for institutions in general; optional simplified new 
capital requirements and capital buffers for single credit cooperatives; scope of consolidation of 
accounting statements of financial institutions; the met hodology of calculation of risk -weighted 
assets (RWAs) for credit risk, market risk and operational risk for institutions that use the 
standardized approaches or the advanced approaches of capital calculation.  
2.19.   Law 12.683 of 7 September 2012 modernized the legislation against money laundering 
through the significant expansion of the list of economic sectors participating in the efforts to 
prevent and combat money laundering and the financing of terrorism, while preserving the set of 
obligations affecting suc h sectors. Law 12.683 also broadened the scope of the legislation against 
money laundering, by establishing that any criminal offence can be considered a predicate offence 
to money laundering. These changes in the Brazilian anti -money laundering legislatio n aimed at 
enhancing the effectiveness of the prosecution of that crime in Brazil. Furthermore, in 2016 two 
laws came into force that significantly contributed to strengthen Brazil's framework to prevent and 
combat money laundering and the financing of ter rorism: Law 13.260 of 16 March 2016, which, 
among other aspects, criminalizes terrorism and its financing, and Law 13.170 of 16 October 2015, 
which regulates the procedures related to the freezing of assets in accordance with relevant United 
Nations Securi ty Council Resolutions. At the international level, the Council for Financial Activities 
Control (COAF) – Brazil's financial intelligence unit – has worked with the Financial Action Task 
Force against Money Laundering and Terrorist Financing (FATF) in the implementation of the 
FATF's recommendations, which are internationally recognized standards against money 
laundering and the financing of terrorism.  
2.20.   Interest rate spreads have increased in line with the tighter monetary policy cycle – the 
basic interest r ate increased from 10% at the end of 2013 to 14.25% in July 2015. As price 
indexes have sharply decreased towards the inflation target set by the Monetary Policy Council, 
the monetary cycle stabilized during 2016 and began to reverse. After 15 months at 14 .25%, the 
basic interest rate has been reduced since October 2016, reaching 11.25% in April 2017. As a 
result, interest rate spreads are expected to decline.  WT/TPR/G/358 • Brazil  
 
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  2.21.   Law 12,865 of October 2013 granted to Banco Central do Brasil  new competencies to 
regulate and ove rsee the payment systems such as payment cards, e -money issuers, credit card 
acquirers and issuers. In 2016, Banco Central do Brasil  strengthened its actions to meet the 
objectives of granting non -discriminatory access to payment services and market infras tructures, 
promoting competition, financial inclusion, innovation, and interoperability within the Brazilian 
Payment System, taking into account its importance to the soundness and normal functioning of 
the National Financial System. Part of these actions consisted in thorough discussions with the 
several Brazilian Payment Systems stakeholders seeking solutions through specific working 
groups.  
2.22.   In order to catalyse  efforts to promote effective financial inclusion in Brazil, the National 
Partnership for Finan cial Inclusion (PNIF) was launched in November 2011, under the coordination 
of Banco Central do Brasil . In 2015, PNIF launched its second action plan: the Plan for 
Strengthening Financial Citizenship, which will last from 2016 to 2019. This plan joins acto rs from 
the public and private sectors in initiatives aimed at strengthening the three pillars of Financial 
Citizenship, namely Financial Education, Financial Consumer Protection and Financial Inclusion. 
The Plan is aligned with the new Sustainable Develop ment Goals (SDGs), along with other drivers 
as the Maya Declaration and the G20's Financial Inclusion Act ion Plan (FIAP). Until 
December  2016, nine institutions submitted 32 different actions and initiatives, related to four 
thematic groups: financial incl usion of small businesses; the relationship between citizens and the 
financial system; measurements of financial well -being; and financial vulnerability. The progress of 
these initiatives will be monitored throughout the year and reported in the Financial Citizenship 
annual forum, which usually takes place in November.  
2.23.   Over the past five years, the share of population with an active relationship with financial 
institutions increased by 21%, reaching 138 million people, or 87% of the population aged 15 and 
above. Currently, all 5,570 Brazilian municipalities have at least one point of face -to-face access to 
financial services. In addition, more than half of all financial transactions are being made through 
non face -to-face access channels, such as call centre s, mobile phones, internet and tablets. It is 
noticeable that almost 2 in 3 transactions through remote channels refer to internet banking and a 
substantial growth of more than 100% has also been observed in the number of transactions made 
through mobiles and tablets.  
2.24.   In 2010, Brazil established its National Strategy for Financial Education (ENEF), a 
multi-sectoral mobilization around the promotion of financial education initiatives in Brazil. The 
strategy was established as a perennial State policy, assuri ng the commercial impartiality of every 
program, including those developed within public -private partnerships. The goal of the strategy, 
created through Federal Decree 7.397/2010, is to contribute to the strengthening of citizenship by 
providing and suppor ting programs that help citizens to make well -informed financial choices. 
Cross -cutting programs comprise financial education in elementary, junior high and high school 
levels. Sectoral programs are developed by several of the eight governmental and four n on-
governmental members of the National Committee for Financial Education (CONEF), among which 
some of the most prominent are those conducted by Banco Central do Brasil  (BCB) and by the 
Brazilian Capital Markets Board (CVM). In the aftermath of the install ation of Brazil 's National 
Committee, Banco Central do Brasil  established its Financial Citizenship Program, targeted at 
promoting financial education and access to information and contributing to financial consumer 
protection and to a better relationship between consumers and financial service providers. BCB 's 
Program, aligned with Brazil 's National Strategy for Financial Education, with the National 
Partnership for Financial Inclusion (PNIF), and with the National Plan for Consumption and 
Citizenship (Pla ndec), focuses on money management and on the relationship between financial 
service consumers and providers. In 2016, CVM established a Centre on Financial Education and 
Literacy for Latin America and the Caribbean, in partnership with the OECD. The Centr e has been 
designed to serve as a hub for knowledge exchange on efficient financial education and related 
issues in Brazil and LAC.  
2.2.3   Insurance market  
2.25.   By the end of 2016, there were 118 insurance compan ies, 16 local reinsurers and 
39 admitted reinsurers regi stered with SUSEP, the Superintendence of Private Insurance, as 
compared to 118, 12 and 29 in 2012, respectively.  As of December 2016, taking into account  
98 occasional reinsurers in addition to the local and admitted reinsurers, the number of 
reinsurance companies authorized to do business in Brazil totals 153 , as compared to 102 in WT/TPR/G/358 • Brazil  
 
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  late 2012. The Brazilian Reinsurance Institute (IRB -Brasil Re), the sole provider of reinsurance in 
Brazil until 2007, remains the top reinsurer operating in Brazil.  
2.26.   In 2016, the number of foreign -owned companies was 42, with a market share of 16.6% 
(life) and 35.7% (non -life). The number of foreign -owned rein surers was 146 (39 admitted, 
98 occasional, 9 local) with a market share of 46.4%. Foreign insurance companies providing  
insurance of any kind, except reinsurance, are required to be incorporated under Brazilian law, as 
a corporation. Insurance companies are precluded by law from engaging in other financial 
activities; nevertheless, they may provide more than one type of in surance service and may hence 
be composite (life and non -life insurer).  
2.27.   The year of 2017 marks the 10th anniversary of the reinsurance market reform. Since 2007, 
after a long period of the state -owned IRB -Brasil Re monopoly, the reinsurance business has b een 
open to private reinsurance companies, including foreign -owned and foreign -based.  Reinsurance 
and retrocession may be held with local reinsurers (established as a corporation under Brazilian 
law and headquartered in Brazil, with the sole objective of o perating in reinsurance and 
retrocession), admitted reinsurers (based abroad, with a representative office in Brazil, registered 
with SUSEP to carry out reinsurance and retrocession) or occasional reinsurers (foreign 
reinsurance company based abroad withou t a representative office in Brazil, also registered as 
such with SUSEP).   
2.28.   All insurance, local reinsurance, capitalization and private pension fund companies are 
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 l ocation.  
2.29.   Minimum capital requirements vary according to the region of operation, the company's 
internal risk -management model, and the type of activity.  For insurance companies and open 
pension funds that only operate in microinsurance, the minimum capita l requirements are defined 
by Resolution No. 321/2015 Article 65, I of the National Council for Private Insurance (CNSP). 
There are no barriers to the domestic trade of insurance services as long as the company complies 
with these minimum capital requireme nts.  
2.30.   There were no major changes in the institutional framework of the insurance industry. The 
Federal Government is responsible for designing insurance policies, as well as for establishing 
standards and overseeing operations in the National Private Insu rance System. CNSP remains the 
main body responsible for setting policies, including establishing the characteristics of the various 
insurance contracts, and for the regulation of the National Private Insurance System. SUSEP, the 
Superintendence of Private  Insurance, an autonomous body under the Ministry of Finance, is in 
charge of the control and supervision of insurance, reinsurance, open private pension funds, and 
capitalization (investment plans) and brokerage operations. SUSEP implements the CNSP polic ies. 
2.31.   The main regulatory developments for insurance operations between 2013 and 2016 were 
the implementation of operational and market capital requirements, completing the set of solvency 
capital requirements in line with the concepts of the EU's Solvency II regime. This led to Brazil 
being granted provisional equivalence to Solvency II (under article 227) by the European 
Insurance and Occupational Pensions Authority – EIOPA – in 2015. Other developments included 
the regulation of remote sales of insurance and open private pension products, microinsurance, 
travel insurance, whole life insurance, procedures for the formalization of reinsurance and 
retrocession contracts, Enterprise Risk Management -ERM and the revision of investment norms 
(Resolution CMN No. 4444/2015), popular car insurance allowing the use of used -car parts and the 
Stability Rural Insurance Fund.  
2.32.   As for reinsurance, a significant relaxation of reinsurance requirements relating to the 
mandatory cession level to local reinsurers and the intra -group cession cap took place in July 2015 
(CNSP Resolution 322/2015 and 325/2015).  Under the new rules, the preferential offer to local 
reinsurers remains at 40% of each cession, but the mandatory minimal cession rates are being 
gradually reduced to 30% in  2017, 25% in 2018, 20% in 2019, and 15% in 2020. Likewise, the 
cap on intra -group cession for companies affiliated or belonging to the same financial 
conglomerate headquartered abroad, provided that they are admitted or occasional reinsurers duly WT/TPR/G/358 • Brazil  
 
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  register ed with SUSEP, is being raised annually to 30% in 2017, 45% in 2018, 60% in 2019, and 
75% in 2020.  
2.33.   New insurance products do not require SUSEP's prior approval but they should be submitted 
for analysis and filing prior to their marketing. Life insurance pr oducts that offer surviving 
coverage and annuities as well as capitalization plans and open pension products require prior 
approval from SUSEP. SUSEP may suspend or ban any product that is found not to comply with 
the industry's regulatory framework or spe cific provisions thereof, including technical flaws. 
Between 2013 and 2016 there were almost 13,000 products submitted to SUSEP with the following 
output:  
Type  Products  
Approved  Banned  Suspended  Total  
Open pension  6.371  9 280 6.660  
Life 1.229  106 93 1.428 
Non-life 1.909  257 241 2.407  
Capitalization  2.178  150 163 2.491  
Total  11.687  522 777 12.986  
2.34.   The contribution of insurance activities to the Brazilian GDP rose from 2.92% (2012) to 
3.47% (2016).  
2.35.   Life segment remains larger than non -life segment re aching in gross premiums, 
respectively, US$42.6 billion and US$20 billion in 2016, from US$47.3 billion and US$24.5 billion 
in 2012. This overall 13% decrease is mainly due to exchange rate variation. In Brazilian Real 
terms, there was real growth.  
2.36.   Market  concentration in the insurance activity is still high. In 2016 the market share of the 
ten largest companies in the industry remained around 70% in terms of direct premiums – similar 
to the levels observed between 2012 and 2016.  
Year 10 largest companies  (MKT share in %)  
Non-life Life Total  
2012  64.69  88.22  68.20  
2013  59.16  87.70  66.17  
2014  62.25  88.67  67.65  
2015  61.79  89.18  68.01  
2016  61.82  89.74  70.50  
2.37.   Brazil accounts for almost 50% of Latin America's insurance premiums, although only 16% 
of rein surance premiums. The volume of business written in Brazil is expected to grow as the 
Government invests in energy projects and infrastructure upgrades.  
2.38.   In 2016, the total amount of assets was as follows:  
Total asset (US$ billion)  2013  2014  2015  2016  
Insurance and Reinsurance  66.2 62.9 43.2 55.7 
Open pension funds  137.4 146.7 124 186.1 
Capitalization  13.5 12.7 8.7 10.2 
2.39.   Bancassurance is significant, especially in life business; many larger banks offer a full range 
of insurance services whereas large sta nd-alone companies tend to dominate non -life insurance. 
Nevertheless, brokers remain an important distribution channel. Insurance brokers must register 
with SUSEP after passing a technical exam.  
2.40.   SUSEP has in place MoUs with the Federal Insurance Office -FIO (USA) and Argentina and an 
MoU with the International Association of Insurance Supervisors -IAIS, through which it can 
cooperate and exchange information with all other signatories (currently 60 insurance 
supervisors ).  WT/TPR/G/358 • Brazil  
 
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  2.2.4   Securities market  
2.41.   Different segment s of the capital markets in Brazil were affected in different ways during 
2013-16 by the international and domestic environment, which was marked by uncertainty and 
volatility. In general terms, public offerings (primary market) w ere more negatively affect ed 
in 2015 and 2016, while the secondary market remained active.  
2.42.   Regarding the primary market, public offerings dropped significantly from the year 2013 
(US$90.62 billion) to Jan -Nov 2016 (US$34.46 billion). It is worth noting that the figures were 
strongl y impacted by the devaluation of the Brazilian currency (US$1.00 = BRL 2.04 as of 
Dec. 2012 to US$ 1.00 = BRL 3.26 as of Dec . 2016).  
2.43.   On the other hand, the secondary market remained active. Although the stock cash trading 
decreased  in terms of US dollar fro m US$ 791 billion (12 months August 2012 to July 2013) to 
US$414 billion (12 months August 2015 to July 2016), the number of transactions grew. In the 
same period, the trading of non -financial corporate bonds kept the pattern of previous years of 
increasing  liquidity: the valu e of transactions grew from US$86 billion to US$ 94 billion and the 
number of transactions, from 35,000 to 66,000. Derivatives markets ended 2016 at the same level 
of 2013.  
2.2.5   Government procurement  
2.44.   Brazil has a decentralized procurement sy stem. Federal, State and Municipal authorities can 
make public purchases, in accordance with the Bidding Law (Law 8.666 of 1993), which provides 
for 5 types of bid proceedings that can be used by agencies and public entities: open tendering; 
price consulta tion; invitation; contest; and public auction. According to the general Law, public 
entities cannot establish differential treatment between Brazilian and foreign companies. For 
procurement of common goods and services, reverse auction ( "Pregão ") has been consolidated as 
the most popular modality, performed mostly by electronic means, having enhanced the efficiency 
and transparency of Brazil's procurement system.  
2.45.   During the period under review, the Government continued to advance towards the 
modernization o f its procurement systems, having set an online system for biddings under the new 
regime ( Regime Diferenciado de Contratações Públicas  – RDC).  
2.46.   An important feature of the Government procurement system in Brazil is access to 
information. Bidders can easily find substantial information online through the Government 
Procurement website ( http://www.comprasgovernamentais.gov.br ) and the Transparency Portal 
(http://www.portaltransparencia.gov.br ). In addition, the legislation requires both federal and 
sub-federal governments to give wide publicity to tendering processes.  
2.2.6   Exchange rate and foreign capital regime  
2.47.   There is a single foreign exchange market in Brazil. Clients may freely negotiate currency 
and the exchange rate with institutions authorized to operate in the foreign exchange market. 
There is no repatriation requirement of export proceeds, and exporters are allowed to keep all 
their revenues abroad . 
2.48.   There is no approval requirement to bring foreign capital into Brazil. Nevertheless, all 
foreign capital – including foreign direct and portfolio investments, foreign credit and financing – 
entering Brazil must be registered at the Central Bank. The regi stration is made in declaratory and 
electronic forms in the corresponding modules of the Electronic Declaratory Registration (RDE), at 
the Central Bank Information System (Sisbacen). Repatriating investments and income related to 
foreign capital such as li quidated equity and bond investments, dividend payments and making 
payments on a foreign loan don 't need Central Bank´s authorization.  It is important to highlight 
that, recently, in January 2017, the rules of foreign direct investment registration at the Central 
Bank have been improved, including simplification of procedures, accompanying the technological 
modernization of the computerized registration system (RDE -IED).  
2.49.   In 2007, CMC Decision No. 25 created the Local Currency Payment System ( Sistema de 
Pagamentos em Moedas Locais  – SML) between the members of MERCOSUR as voluntary bilateral WT/TPR/G/358 • Brazil  
 
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  agreements between their central banks. These SMLs are regulated by CMN Res olution  4.331, of 
26 May 2014. It was an initiative to reduce transaction costs, promote financ ial integration and 
consequently increase trade among the member countries, mainly encouraging micro and small 
entrepreneurs to participate in foreign trade. The SML allows users to set their payment and 
receipts in their own local currencies. The SML rate  is published daily and it is a cross -rate 
between the Brazilian Ptax rate (BRL/USD) and the counterparty reference rate. The Central Banks 
act as clearing houses. In October of 2008, the Central Banks of Brazil and Argentina started to 
allow trade settlem ents in local currencies through this mechanism. Currently, around 5% of total 
bilateral trade between the two countries goes through the SML. In December 2014, the Central 
Banks of Brazil and Uruguay established an SML which permits settlements of trade a nd service 
operations and of unilateral transfers. In April 2016, the Central Banks of Brazil and Paraguay 
signed an Agreement for an SML and negotiations for effective implementation are at an advanced 
stage.  
2.2.7   Export insurance  
2.50.   The main official mechanism t o promote Brazilian exports is the Export Guarantee Fund 
(FGE), established in 1997. The Fund guarantees exports of domestic goods and services in 
operations longer than two years. For micro, small and medium enterprises, the FGE also provides 
export guara ntees for operations shorter than two years. Other operations for periods below two 
years are served by the private insurance market. Between 2013 and 2016, 107 operations of 
export credit insurance were approved under the FGE, totalling  US$23.30 billion.  
2.51.   Although not a member of the OECD, Brazil follows the pricing model approved in the 
Arrangement on Officially Supported Export Credits. Besides, Brazil is a participant in the Sector 
Understanding on Export Credits for Civil Aircraft, applying the premia and other conditions 
established in that sector understanding.  
2.52.    In 2012, Law 12.712 created the Brazilian Guarantees and Fund Managements Agency 
(ABGF). The Agency started its operations in 2014 and since then has been hired by the Ministry of 
Finance to p rovide the necessary services for the issuing of insurance policies (e.g. risk 
assessment, legal opinions and project analysis). Although Law 12.712 has also created the 
Guarantee Fund for Foreign Trade Operations (FGCE) – which would be managed by ABGF – this 
fund is not yet running due to lack of capitalization.  
2.2.8    Long run production and export finance  
2.53.   The National Bank of Social and Economic Development (BNDES), a state -owned bank 
created in 1952, is the main source of long -term credit in Brazil. Since it s foundation, BNDES has 
played a fundamental role in stimulating the expansion of industry and infrastructure in the 
country. Over the course of the Bank 's history, its operations have evolved in accordance with the 
country 's social and economic challenges , and now they include support for technological 
innovation, sustainable socio -environmental development and the modernization of public 
administration. Currently, the long -term financing needed for investment in fixed assets, both 
direct – through capital  markets – and indirect – through the banking system – is still scarce, and 
the activities of BNDES have complemented those of commercial banks, with a clear segmentation 
between short -and long -term credit. Brazil 's financial market continues to be mainly focused on 
the short term, with liquidity concentrated in few assets.  
2.54.   Credit lines offered by BNDES encompass long -term financing for the development of 
investment projects and for the commercialization of new machines and equipment, as well as the 
financi ng of Brazilian exports, taking into account ethical, environmental and sustainable 
development principles. BNDES 's credit lines also contribute to strengthen the capital of private 
companies and to the development of capital markets.  
2.55.   BNDES disbursed R$ 88.3 billion and performed 597,565 credit operations in 2016. In 
comparison with the previous year, there was a 35% drop in disbursements. BNDES had a net 
profit of R$6.4 billion in 2016. The Bank was able to achieve a financial performance consistent 
with it s activities as a development bank, reaching a loans portfolio, net of p rovision for credit risk, 
of R$ 610.9 billion at the end of 20 16. Total assets amounted to R$ 876.1 billion in 2016, a 
reduction of 5.9% over 2015.  WT/TPR/G/358 • Brazil  
 
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  2.56.   In January 2017, BNDES revised its ope rational policies to prioritize projects, as opposed to 
sectors. As a result, several sectoral programs were discontinued and a more horizontal 
perspective on the credit concession was adopted, focusing on projects that will generate positive 
externalities  to society. These changes are expected to promote employment and productivity 
growth. In December 2016, BNDES made a deb t repayment in the amount of R$ 100 billion to the 
National Treasury. The proceeds will be used in full to reduce Brazil's public debt. The amortization 
does not affect the BNDES's equity structure, full compliance with prudential banking rules and 
compliance with the disbursement schedule of operations already contracted or prospective.  
2.57.   Defaults on BNDES's credit portfolio represented 2.4 3% of the total in 2016, below the 
national average of 3.71% in the same period. The capital adequacy index (Basel Index) recorded 
by the BNDES was 21.7%, whereas the index required by the Central Bank is 10.5%. The Bank 
seeks to harmonize competitive inte rest rates with the preservation of public equity by 
continuously monitoring credits and guarantees that cover the debt position over the duration of 
the contracts.  
2.58.   BNDES offers two export credit lines: (a) pre -shipment credit, which supplies working 
capital for Brazilian exporters; and (b) post -shipment credit, which targets the commercialization 
of exported goods and services through buyer's or supplier's credit, in accordance with 
international standards. BNDES's export credit d isbursements decreased fro m US$ 11.3 billion 
in 2010 to US$4.4  billion by the end of 2016. The amount of disbursements in 2009 and 2010 was 
a reaction to the global financial crisis, in particular the scarcity of trade finance. Traditional trade 
finance channels have returned to nor mal and, as a result, BNDES's disbursements have 
decreased. Capital goods accounted for 80.5% of the total export finance disbursements in 2016. 
This includes buses, trucks, light commercial vehicles, industrial machinery and equipment, as well 
as aircraft . Consumer goods accounted for 18.5% of total disbursements.  
2.3  Social Policies  
2.59.   During the period under review, Brazil continued to prioritize social development by 
combining the strengthening of universal policies in health, education and social security wit h 
income distribution and policies focused on promoting the social inclusion of low -income and 
vulnerable segments of the population.  
2.60.   To fight poverty and other forms of social exclusion, the internationally recognized Bolsa 
Família  Program has strongly s upported families with lower incomes. The Bolsa Família  assists 
13.6 million families today. The program allows for the monitoring  of the school attendance of 
14 million children and teenagers, and contributes to the decline of both the general child morta lity 
rate and the child mortality rate related to poverty issues, such as malnutrition and diarrhea . 
2.61.   In June 2016, the Brazilian Government announced a 12.5% raise in the value of the 
benefits of the Bolsa Família  Program. The increase in the financial ben efit will be accompanied by 
the improvement of public policies aimed at breaking the cycle of intergenerational poverty, such 
as actions to promote the full development of children in early childhood and the creation of work 
and citizenship opportunities, which can promote the emancipation of beneficiaries.  
2.62.   The policies regarding income distribution significantly benefited the population with lower 
income. Between 2001 and 2015, the poorest 10% of the population registered an increase of 
258% in the real a verage family income per capita. In the same period, the overall income of 
population increased by 112%, while the richest 10% had their income increased by 90%.  
2.63.   Between 2013 and 2016, focalized programs and actions were established and expanded in 
order t o promote social inclusion for the most vulnerable. An example of this commitment was the 
Brazil Without Extreme Poverty Plan, which promoted the integration and articulation of public 
policies and programs with the purpose of reducing extreme poverty in t he country. The Plan 
included initiatives in several areas, such as housing and technical and college education, as well 
as access to clean water, among others. The Plan helped to lift 22 million people out of extreme 
poverty.  
2.64.   During the active period of t he Brazil Without Extreme  Poverty Plan, between 2011 
and 2014, 1.8 million teenagers and adults who were registered in the Unified Registry were also WT/TPR/G/358 • Brazil  
 
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  enrolled in the National Program for Access to Vocational Education and Employment (Pronatec), 
with a comp letion rate of 79%.  
2.65.   Social progress in rural areas was also significant. The Government increased access to 
basic services, such as clean water, sanitation, electric power and education, as well as expanded 
the policies of income guarantee and inclusion of  the rural population in agricultural and 
non-agricultural productive activities. In 2011 the rate of the population living in poverty in the 
rural area was of 6.7%, while extreme poverty in the rural area was 2.9%. In 2014, those 
percentages were reduced to 4.5% and 1%, respectively.  
2.66.   About 3.2 million families so far have been provided with a home by the Minha Casa, Minha 
Vida program. Some 1.2 million will still benefit from it shortly, and possibly a few million more in 
the future. Brazil understands tha t social housing plays a central role in promoting sustainable 
urban development and economic development, in accordance with the principles emanating from 
the New Urban Agenda recently approved in Quito. The Brazilian Government is focusing its efforts 
on improving quality and expanding the number of homes offered, as well as increasing the 
efficiency of the system. In addition to the program's direct s ocial gains, investments of 
US$100  billion since the beginning of Minha Casa, Minha Vida  have had a signi ficant impact on 
income generation and employment, acting as an important economic policy tool. Another recent 
Government initiative in the area of housing is the so -called Cartão Reforma , a program targeting 
the low -income population aimed at improving th e quality of substandard housing.  
3  TRADE POLICY DEVELOPMENTS (2013 -16) 
3.1  Latest Developments in Brazilian Foreign Trade  
3.1.  Brazilian foreign trade has decreased since 2013, both in nominal terms and as a percentage 
of the GDP. The country's foreign trade volume decreased 33 % between 2013 and 2016, from 
US$481 billion to US$322 billion. Relative to GDP, foreign trade declined from 19.6% in 2013 to 
18.2% (estimate) in 2016. The share of Brazilian exports in globa l trade decreased from 1.33% 
in 2013 to 1.21% in 201 5. However, the number of exporting firms expanded 18.1% in this 
period, reaching 22,205 companies in 2016. From 2013 to 2015, 27.7% of the exporters were 
micro enterprises, 23.7% small, 27.5% medium and 18.9% large enterprises.  
3.2.  The period 2015 -2016 was ch aracterized by significant su rpluses in goods trade: 
US$19.7  billion and US$47.7 billion, respectively. In addition, in 2013 there was a surplus of 
US$2.3 billion and in 2014 there was a deficit of US$ 4.1 billion. Regarding the destination of 
goods, export s to Asia decreased 20.6%; to South America, 26.9%; to North America, 7.1%; to 
Europe, 28.7%; to Africa, 29.4%; and to the Middle East, 7.4%.  
3.3.  Manufactured goods accounted for 37.9% of exports, semi -manufactured goods for 13.5%, 
agricultural and mineral co mmodities for 46.1%. The remaining 2.5% are related to special 
operations. The main industrial exports were aircrafts, automobiles, auto parts, sugar, cellulose 
and semi -manufactured steel. The main commodities exported were iron, oil, soy, beef, coffee, 
corn and tobacco.  
3.4.  Raw materials and intermediate products had a share of 57% of total imports in the 
2013-2016 period. These were followed by consumer goods (15%), oil and gasoline (14.7%) and 
capital goods (13.3%). Pharmaceutical goods, auto -parts, oil, f ertilizers, automobiles and 
electronic goods were the main products imported by Brazil.  
3.2  Participation in the WTO  
3.2.1   Negotiations  
3.5.  Brazil remains firmly committed to preserving and strengthening the rules -based Multilateral 
Trading System and reaffirming the re levance of the WTO as one of the central pillars of the global 
economic governance.  
3.6.  In the current scenario of mounting anti -trade sentiment in several key players of the 
globalized economy, reinforcing the negotiating arm of the WTO with positive and tang ible WT/TPR/G/358 • Brazil  
 
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  outcomes at the MC -11, in Buenos Aires, will be crucial. Achieving balanced, development -oriented 
results shall be at the core of all efforts. Although the DDA and its mandates must continue to be 
the main reference for negotiations, Brazil is activel y engaged in the discussion of all other topics 
on the table, including the so -called new issues, on their own merits.  
3.7.  Agriculture remains Brazil's top priority.  Having reached an agreement in Nairobi on the 
elimination of export subsidies, new meaningful results shall be achieved if Members want the 
WTO to correct distortions that have been harming developing countries for decades. Within the 
agricultural agenda, domestic support is a promising area for incremental deliverables at the next 
Ministerial Conf erence.  Brazil has been working with other Members to improve disciplines in this 
field. Beyond Buenos Aires, no agricultural reform would be complete without the expansion of 
market access for agricultural products, including with respect to the negative trade impacts of 
non-tariff barriers.  
3.2.2   Dispute settlement  
3.8.  Brazil attaches high priority to strengthening the WTO dispute settlement system and has 
actively participated in the mechanism since its very first dispute ( US – Gasoline). To date, of 
524 WTO dispu tes, Brazil participated in 158 – 31 as complainant, 16 as respondent and 111 as a 
third party. Most of the cases dealt with issues that are at the core of the Multilateral Trading 
System, such as: granting of subsidies both to industrial (Canada – Aircraf t) and agricultural goods 
(EU – Sugar and US Upland Cotton) and the application of trade restrictive measures by developed 
countries (US - Orange Juice), the protection of the environment (Brazil – Tyres) and public health 
(EU – Medicines in Transit).  
3.9.  Currently, Brazil has five active disputes as a complainant, two as a respondent and 26 as a 
third party. Brazil is challenging the restrictions imposed by Indonesia on the importation of 
poultry (Indonesia – Chicken) and beef (Indonesia – Beef), the subsid ies accorded by Thailand to 
its sugar industry (Thailand – Sugar) and by Canada to Bombardier (Canada – Aircraft II), as well 
as the countervailing measures imposed by the United States o n Brazilian steel products 
(US - Steel Products). Brazil is a responden t in Brazil – Tax measures, a case brought by the 
European Union and Japan.  
3.2.3   Special and differential treatment  
3.10.   Brazil continues attaching great importance to the WTO principle of special and differential 
treatment (SDT) to developing and least developed c ountries (LDCs). Effective S&DT provisions 
are important steps towards levelling  the playing field among members. Brazil attaches great 
value to the role of the Committee on Trade and Development as the reviewer of regional trade 
agreements (RTAs) among de veloping countries and preference schemes favouring  developing 
countries authorized under the Enabling Clause. Brazil appreciates the work carried out by the 
Committee since 2007 in implementing the RTA Transparency Mechanism for RTAs falling under 
paragra ph 2(c) of the Enabling Clause.  
3.3  Preferential Agreements  
3.11.   Notwithstanding the priority it attributes to the multilateral trading system, Brazil believes 
that preferential trade agreements can play a supplementary role in the efforts to harness the 
benefits o f international trade towards the goal of economic and social development of all 
Members.  
3.12.   Alongside its MERCOSUR associates, Brazil is looking for new partners to increase, diversify 
and improve its trade relations, in order to ensure the growth and stabi lity of the Brazilian 
economy and a competitive insertion of the country in the global scenario.  
3.13.   Within the Latin -American region, Brazil participates in regional agreements under the 
provisions of the Latin American Integration Association (LAIA). Brazil 's trade policy is structured 
around the MERCOSUR customs union. As detailed below, MERCOSUR has trade agreements with a 
number of Latin American countries and free trade agreements with all South American countries. 
MERCOSUR also acted as one party at the Third Round of Negotiations under the GSTP.  WT/TPR/G/358 • Brazil  
 
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  3.14.   Since the last review, there has been substantial progress with regard to the MERCOSUR -EU 
Association Agreement. In May 2016, offers in goods, services, investment and public procurement 
were exchanged and, ever since, progress has been made in all areas under negotiation. In 
October 2016, MERCOSUR and EFTA concluded negotiations on the basic parameters of a possible 
FTA. MERCOSUR and EFTA intend to launch a formal negotiating exercise in the near future.  In the 
period under review, MERCOSUR has also explored the possibility of negotiating FTAs with other 
countries. These initiatives reflect the growing openness and support of both the Brazilian 
Government and the private sector regarding free trade negotiations.  
3.3.1   MERCOSUR  
3.15.   MERCOSUR was established in 1991 by the Treaty of Asuncion1, and its institutional 
structure was defined in 1994 by the Protocol of Ouro Preto. MERCOSUR is Brazil's main 
preferential agreement in terms of value of trade, accounting for more than 1 0% of its 
merchandise trade; it is also the backbone for further regional integration and negotiation of 
extra-regional agreements. The MERCOSUR market is particularly important to Brazil as its main 
destination for manufactured goods with higher added val ue. 
3.16.   The Common Market Group (GMC) and the Council for the Common Market (CMC) are the 
main decision -making bodies of MERCOSUR respectively. The Council is composed of the Ministers 
of External Relations and Economy of member states; its mission is to formu late policy and 
promote actions to develop the Common Market., and it. The GMC oversees the application of the 
Treaty of Asuncion, its protocols and agreements, and can make recommendations to the Council. 
It is entitled to issue mandatory Resolutions that  apply to all member states. It is also in charge of 
negotiations with other countries, groups of countries and international organizations. The 
MERCOSUR Trade Commission (CCM) is responsible for the application of common trade policy 
instruments.  
3.17.   Dispute Settlement in MERCOSUR is regulated by the Protocol of Olivos, signed 
in February  2002 and in force since January 2004. Under the Protocol of Olivos, member states 
can choose to file disputes either within MERCOSUR or at the WTO. Upon agreement by the 
parties, the Common Market Group can provide mediation. Cases are handled by a Court of Ad 
Hoc Arbitration (TAHM) and/or by the Permanent Review Court (PRC), which is composed of 
five judges.  
3.18.   Created in December 2005, the Parliament of MERCOSUR is a symbol of  the political 
decision to strengthen and deepen the integration process and to develop common interests and 
values in the region.  
3.19.   During the period under review, MERCOSUR has taken important steps towards the 
consolidation of the Customs Union. MERCOSUR member states share a Common External Tariff 
(CET), which entered into force on 1 January 1995. Different exceptions have been admitted 
through Decisions by the CMC. All MERCOSUR member states are currently authorized to have an 
exception list of products on which higher or lower tariffs vis-à-vis the CET will be applied. There 
are different provisions for each country. Brazil can include up to 100 tariff lines and modify as 
many as 20% of them every six months, until the end of 2021.2 Brazil is also allowe d to establish 
special tariffs for Capital Goods (BK) and for Informatics and Telecommunications Goods (BIT) 
until the end of 2021.3  
3.20.   The sugar and automotive sectors are the only ones excluded from free trade within 
MERCOSUR. There is no schedule for the inclusion of sugar in the free trade regime, although talks 
on the issue resumed in January 2017. Since the creation of MERCOSUR, there were plans to bring 
sugar into the Customs Union and an Ad Hoc Group was created to that purpose. Brazil believes it 
is time to make progress towards a gradual liberalization of trade for sugar in MERCOSUR. Trade in 
the automotive sector between Brazil and MERCOSUR members is still largely regulated by 
                                                
1 MERCOSUR  is incorporated in the LAIA legal regime as Economic Complementarity Agreement  (ECA)  
No. 18.  LAIA economic complementarity agreements must be open for accession by any LAIA country.  
2 Provisions  are identical for Argentina. Paraguay was authorized to maintain a list of up to 649 tariff 
headings until the end of 20 23, and Uruguay can include up to 225 tariff headings until the end of 20 22 
(Decision CMC 26/15).  
3 Decision CMC  25/15 . WT/TPR/G/358 • Brazil  
 
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  bilateral agreements, which have been negotiated or renegotiated – within the framework of LAIA 
– in the period under review .4 Trade flows are duty -free in the sector under specific  conditions. 
Currently, for the first time, an automotive agreement is under negotiation between Brazil and 
Paraguay. The regional agreement on aut omotive policy ratifi ed by member states in 2000 
and 2001 did not enter fully in force as originally planned. It is Brazil's intention to pursue the 
establishment of a MERCOSUR common automotive regime once bilateral sectoral agreements 
have been concluded  with all MERCOSUR partners.  
3.21.   Established in 2006, the Fund for Structural Convergence of MERCOSUR (FOCEM) (Decisions 
CMC 45/04 and 18/05) epitomizes MERCOSUR 's commitment to bridging the development gap 
between the countries in the region. It funds infrast ructure development and social cohesion 
initiatives in MERCOSUR. The Fund receives contributions from all member states. Paraguay and 
Uruguay are the main beneficiaries of FOCEM and Brazil is the  main contributor. Decision CMC 
No. 22/15 renewed FOCEM for t en years from the date all member states incorporate the decision 
into their domestic legal orders.  
3.22.   The Protocol of Montevideo on Trade of Services entered in force on 7 December 2005 
between Argentina, Brazil and Uruguay. It establishes a schedule for se rvices liberalization 
(covering both market access and national treatment measures) within MERCOSUR. Under the 
Protocol of Montevideo, the Parties have scheduled commitments in virtually all sectors and 
sub-sectors covered by the WTO Services Sectoral Clas sification List (MTN.GNS/W/120). The 
Protocol on Government Procurement, negotiated in  2006, is not in force and member states are 
currently committed to its revision.  
3.23.   The Protocol on Cooperation and Facilitation of Investments (Decision CMC 03/17), signe d in 
April 2017, represents a milestone in the regulation of investments in the region.  The Protocol 
addresses the business community's interest in minimizing risks and preventing disputes related to 
investments. It also seeks to encourage mutual investmen ts within the region through 
intergovernmental dialogue mechanisms, which support companies in the process of 
internationalization. The Protocol will provide for greater disclosure of business opportunities, 
exchange of information on regulatory frameworks  and appropriate mechanisms to prevent and, 
eventually, settle disputes. It establishes a solid framework for investment in all Member States 
and will be applicable to Foreign Direct Investments made before or after its entry into force.  
3.24.   In 2015, the CMC a pproved the Action Plan for the Strengthening of MERCOSUR's Trade and 
Economic Mechanisms. An ad hoc group was created to identify measures deemed detrimental to 
free trade in the areas of technical regulations,  sanitary and phytosanitary measures, domesti c 
taxes and bureaucratic procedures. Specifically concerning Technical Regulations, Brazil strongly 
supports improvements to the approval and revision mechanisms of MERCOSUR's technical 
regulations.  
3.25.   Member states have agreed on a number of instruments with  a view to facilitating the 
movement of citizens between Member States. Active participation of civil society and social 
movements in discussing public policies in areas as diverse as education, health, labour , human 
rights and others is also contributing to social responsibility and political accountability. This is as 
much an institutional breakthrough as it is a commitment to advancing the social agenda of 
MERCOSUR integration.  
3.3.2   MERCOSUR and regional agreements  
3.26.   MERCOSUR has a broad range of trade agreemen ts within the framework of LAIA. These 
trade agreements are known as Economic Complementation Agreements (ACEs). They have been 
signed with the Plurinational State of Bolivia (ACE -36), Chile (ACE -35), Mexico (ACE -54, ACE -55), 
Peru (ACE -58), Colombia (ACE -59), Ecuador (ACE -59), the Bolivarian Republic of Venezuela 
(ACE-59) and Cuba (ACE -62). Besides the aforementioned agreements in the framework of 
MERCOSUR, Brazil has celebrated a bilateral fixed tariff preferences agreements with Mexico 
(ACE-53) and other agreements with Guyana (AAP -38), Saint  Kitts and Nevis (AAP -38), and 
Suriname (AAP -41). As a result of the schedule of tariff commitments in these agreements, there 
will be a virtual free tra de area within South America by  2019.  
                                                
4 41st Additional Protocol to ECA No. 14 (Brazil -Argen tina), ECA No. 2 (Brazil -Uruguay) and ECA No. 69 
(Brazil -Bolivarian Republic of Venezuela ). WT/TPR/G/358 • Brazil  
 
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  3.27.   Brazil has also engaged in the negotiation of non -tariff issues. In April 2016, Brazil signed 
an Agreement on Economic and Trade Expansion with Peru, with chapters on investments, services 
and government procurement. It also has ongoing negotiations with Mexico to widen the scope of  
ACE-53, among other initiatives.  
3.3.3   MERCOSUR and extra -regional agreements  
3.28.   Negotiations for a Bi -regional Association Agreement be tween MERCOSUR and the 
European  Union, originally launched in 1999 and suspended in 2004, were re -launched at the 
MERCOSUR -EU Su mmit in May 2010. Since then, negotiating rounds have taken place, leading to 
progress in the normative framework of the agreement. In May 2016, offers were exchanged in 
market access in goods, services and establishment, and public procurement. The last n egotiating 
round took place in March 2017, in Buenos Aires, allowing for significant progress, including the 
conclusion of the Competition Chapter. An intense schedule of meetings has already been agreed 
until the end of the year. Both sides have announced  the intention to conclude the Agreement in 
the near future.  
3.29.   In 2016, MERCOSUR and the European Free Trade Association (EFTA) concluded an 
exploratory exercise for an FTA. The first round of negotiations w as held in June 2017, in 
Buenos  Aires, and the nex t round is due to take place late August 2017 in Geneva. The intention is 
to negotiate a comprehensive free -trade agreement. Since the last TPR, MERCOSUR has also held 
trade dialogues with several countries, including Canada, the Republic of Korea, and Jap an, with a 
view to exploring the possibility of negotiating trade agreements.  
3.30.   In 2016, MERCOSUR and India started working on the expansion of the Preferential Trade 
Agreement signed in 2004 and in force since 1 June 2009. The FTA signed by MERCOSUR and 
Egypt will entry into force thirty days after the date of the notification to the Depository of the 
instrument of ratification of the last Signatory Party. In October 2015, the Brazilian Congress 
approved the FTA and Brazil's instrument of ratification was de posited in February 2016. Egypt, 
Paraguay and Uruguay have also completed their ratification procedures.  
3.31.   The Preferential Trade Agreement (PTA) between MERCOSUR and the Southern Africa 
Customs Union (SACU), signed by the State Parties to MERCOSUR on 15 De cember 2008 and by 
SACU Member States on  3 April 2009, entered into force on 1 April 2016. The first meeting of the 
Joint Administrative Committee (JAC) of the PTA is scheduled to take place in May 2017.  
3.32.   The FTA signed by MERCOSUR and Palestine on 20 Decem ber 2011 provides for its entry 
into force, bilaterally, after Palestine and one of the MERCOSUR States ratify it. The text of the FTA 
is currently under analysis in the Brazilian Congress.  
3.33.   In December 2014, MERCOSUR signed Framework Agreements on Trade an d Economic 
Cooperation with Lebanon and Tunisia, aiming at strengthening economic dialogue and promoting 
the negotiation of FTAs. The first negotiating rounds for the respective Free Trade Agreements 
took place in May 2015, respectively in Beirut and in Tu nis. The parties are currently working on 
the negotiating text for the FTAs. The second negotiating round s are foreseen to take place 
in 2017.  
3.3.4   Global system of trade preferences  
3.34.   Brazil, along with other 42 developing countries, is a member of the GSTP (Glo bal System of 
Trade Preferences among Developing Countries). In view of the large increase in South -South 
trade in recent years, GSTP has gained importance as an instrument to further enhance and 
deepen trade among developing countries. Hence, Brazil activ ely promoted the launch of a 
third round of negotiations of the GSTP, which took place in São Paulo, in June 2004, during 
UNCTAD XI.  
3.35.   The round was completed on 15 December 2010, at a Ministerial Meeting in Foz do Iguaçu, 
among Brazil and 10 other signatori es: Cuba, the Republic of Korea , Egypt, India, Indonesia, 
Malaysia, Morocco and the MERCOSUR member countries Argentina, Paraguay and Uruguay. 
Signatories account for a population of over 2 billion people and over 9% of world trade.  WT/TPR/G/358 • Brazil  
 
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  3.36.   The general conditions established in the agreement are a preference margin of at least 
20%, for at least 70% or each participants tariff lines. In practice, margins of preference will be 
accorded to more than 47,000 products.  
3.37.   The ratification process of the Agreement is under w ay and Brazil looks forward to its entry 
into force as soon as possible.  
3.4  Investment Agreements  
3.38.   During the 1990 's Brazil signed 14 traditional Bilateral Investments Agreements (BITs) but 
the Brazilian National Congress decided not to ratify any of them. Br azil follows closely the global 
discussions concerning these agreements and seeks actively to build an alternative approach to 
the traditional models.  
3.39.   Following the rejection of BITs by the National Congress, the Brazilian Government 
intensified work to d efine new guidelines for further negotiations on investment agreements. Brazil 
has focused on designing a new model of investment agreement based on thorough review of 
studies by international organizations (UNCTAD and OECD Guidelines), extensive consultat ions 
with the Brazilian private sector, and international benchmarking. This process led to the drafting 
of the Cooperation and Facilitation Investment Agreement (CFIA), which seeks a balanced 
outcome combining the promotion of an attractive environment fo r investors while preserving 
space for public policies. The new Brazilian model sidelines  the limitations identified in traditional 
BITs in favour of a positive approach comprising institutional cooperation and facilitation of 
investment flows. This model has been used since 2013; Brazil has already signed CFIAs with 
Mozambique (March 2015), Angola (April 2015), Mexico (May 2015), Malawi (June 2015), 
Colombia (October 2015), Chile (November 2015), Peru (April 2016) and India (September 2016, 
concluded, but pending of signature). An agreement with Jordan has already been negotiated, but 
is still pending signature. The firsts CFIAs (Angola, Mozambique and Malawi) have already been 
approved by the House of Representatives and are currently being analysed  by the  Senate. The 
Cooperation and Facilitation of Investments Protocol of MERCOSUR (PCFI) has recently been 
concluded. Brazil is also engaged in exploratory dialogues with South Africa, Tunisia, Morocco, 
Thailand, Ethiopia and the former Yugoslav Republic of Macedonia.  
4  TRADE INSTITUTIONAL AND REGULATORY FRAME WORK  
4.1  Cross -Cutting Issues  
4.1.1   Implementati on of good regulatory practices  
4.1.  Regulatory agencies in Brazil have striven to implement Good Regulatory Practices (GRPs) 
and other tools in order to promote regulations that are more evidence -based, flexible, effective, 
clear and transparent, relying on social participation and seeking convergence with international 
practices and standards. Initiatives for Regulatory Impact Analysis (RIA) are already in place and 
aim at i mproving regulatory quality by the collection and evaluation of information about the likely 
benefits, costs and effects of regulations, with a view to enhancing decision -making processes and 
ensuring that the action to be taken is justified and appropriat e. Also, agencies have been 
establishing standards and procedures that are to be followed in the development of their 
measures.  
4.2.  These good practices complement the RIA process and include mechanisms to enable 
agencies to assess the best measure to be take n in order to achieve an intended regulatory goal. 
These processes involve broad public consultation and social participation, a continuing effort by 
the Brazilian competent agencies to promote greater transparency of their conduct and 
responsibilities. Fo r instance, the Brazilian Health Regulatory Authority (ANVISA), apart from 
promoting public consultations and public meetings, using RIA and establishing a regulatory 
agenda, has updated its GRPs practices, introducing alternative tools and enhancing monit oring 
and evaluation, as well as the management of its regulatory stock. The latter activity was partially 
conducted with the support of the Brazilian National Confederation of Industry (CNI), through a 
formal collaborative project that has resulted in the  rationalization of the Agency 's stock, with 
positive impact for national and international companies that sell in Brazil products regulated by 
ANVISA. It is also worth noting that the new tools have greatly impacted social participation in WT/TPR/G/358 • Brazil  
 
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  public consulta tions promoted by ANVISA – data from 2014 indicate that in 30 public consultations  
5,873 contributions were received from different participants, while in 2015 this number increased 
to 18,037 contributions in 44 public consultations.  
4.1.2   Technical regulations and standards  
4.3.  The Brazilian institutional framework for technical regulations has remained broadly 
unchanged during the period under review. The National Institute of Metrology, Quality and 
Technology (INMETRO) was given new attributions by Law 12.545/11,  which include taking part in 
SISCOMEX 's consenting body for non -automatic licensing of goods, regulating measures to prevent 
deceptive trade practices and working together with the Federal Police to improve the conformity 
assessment of goods, before they enter the country.  
4.4.  In accordance with the Agreement on Technical Barriers to Trade (TBT), Brazil has notified to 
the WTO, from 1 July 2013 to 30 March 2017, 403 Technical Regulations and Procedures for 
Conformity Assessment, including new regulations, adde nda, revisions, corrigenda and 
supplements. As a general rule, international standards are the basis for the elaboration of 
technical regulations. INMETRO is the national enquiry point for technical regulations and 
conformity assessment procedures in Brazi l. INMETRO also promotes bilateral, regional and 
multilateral cooperation with other WTO TBT enquiry points, aiming at improving transparency and  
fostering the exchange of information.  
4.5.  From 2013 to 2016, Brazil has continued intensifying its participation in international 
organizations dedicated to the creation and implementation of standards, such as the Codex 
Alimentarius; ISO; IEC; ITU; and the United Nations Committees on the Transportation of 
Dangerous Goods (SCETDG) and on the Classification and Label ing of Chemical Products 
(SCEGHS), among others, in order to keep its regulations aligned with international standards in 
the related sectors. Brazil has also intensified its participation in international harmonization and 
regulatory convergence initiativ es in the area of medicines, medical devices and cosmetics.  
4.6.  Brazil has also signed mutual recognition agreements with multilateral bodies such as the 
"Bureau International des Poids et Mesures " (BIPM), the International Laboratory Accreditation 
Cooperation  (ILAC), the Inter American Accreditation Cooperation (IAAC), the International 
Accreditation Forum (IAF), the American Aerospace Quality Group (AAQG), the Program for the 
Endorsement of Forest Certification Schemes (PEFC) and the Global Partnership for Go od 
Agricultural Practice (Globalgap), and became a full party to the OECD decisions on the mutual 
acceptance of data (MAD) – Good Laboratory Practice (GLP) on pesticides, their components and 
related products as well as on industrial chemical products.  
4.7.  Under the framework of MERCOSUR, Brazil has worked with other members to develop a 
system of harmonization of technical regulations. Technical regulations are notified to the WTO 
after each MERCOSUR member has carried out domestic consultations, and before th ey are 
adopted by the bloc in the form of Resolutions. Brazil also has bilateral cooperation initiatives on 
technical regulations with Argentina, the Plurinational State of Bolivia, China, Chile, Cuba, 
Costa  Rica, the Dominican Republic, Ecuador, Germany, Guatemala, France, India, Italy, Japan, 
Lebanon, Mexico, Mozambique, Panama, Paraguay, Peru, Portugal, the Republic of Korea, 
Singapore, South Africa, the Russian Federation , Trinidad and Toba go, Turkey, Ukraine, the 
United  Kingdom, the United States, Urug uay and the Bolivarian Republic of Venezuela.  
4.1.3   Trade facilitation  
4.8.  During the period under review, Brazil took some important measures in order to implement 
the WTO Trade Facilitation Agreement (TFA) and to improve the efficiency and transparency of 
governme ntal agencies responsible for dealing with international trade.  
4.9.  The " Programa Portal Único de Comércio Exterior " (Foreign Trade Single Window Program) is 
at the centre  of Brazilian trade facilitation policies. It is an ongoing initiative aimed at updating  and 
streamlining all import, export and transit routines.  Once fully operational, the Portal will support 
more efficient, harmonized and integrated procedures between public and private stakeholders in 
foreign trade. Following this reformulation, next ste ps involve the development and integration of WT/TPR/G/358 • Brazil  
 
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  information flows corresponding to each process, as well as the computerized systems assigned to 
manage them.  
4.10.   The Portal Único  Program encompasses a series of solutions to be gradually implemented 
between 2014 and 2018. It is based on the single window provisions of the TFA. These provisions 
were internalized in the Brazilian legislation through the Presidential Decree No. 8.229 of 2014, 
which amended Decree No. 660 of 1992. According to this new regulation, the  Integrated Foreign 
Trade System (SISCOMEX) should incorporate a new single window solution.  
4.11.   In this context, the Portal Único  system will be able to (i) receive, through the Internet, all 
data and documents required by governmental agencies; (ii) distrib ute this information to all 
requiring competent agencies, preserving confidentiality; (iii) allow all requirements and 
notifications regarding trade -related formalities to be presented to traders; (iv) avoid repetitive 
submission of data to governmental ag encies; and (v) allow the submission of digital copies of 
trade documents instead of paper -based originals.  
4.12.   The first solution already made available to traders is the Portal Único  website 
(www.siscomex.gov.br ), which provides easier access to information regarding trade -related 
legislation, requirements, documents, forms and systems. It also houses the national foreign trade 
enquiry point, available in Portuguese, Spanish and English 
(http://comexresponde.comexbrasil.gov.br/ ). The website also makes it possible for operators to 
consult on a single screen and in real time all export and import ongoing procedures regarding a 
particular trader. In the past, oper ators needed to consult at least four different systems for such 
an enquiry.  
4.13.   The Portal Único system aims at reducing bureaucracy. It will allow companies to present 
information only once, reducing time and expenses to both exporters and importers. The we bsite 
will also enable companies to monitor the progress of their operations in detail, increasing the 
transparency of the process.  
4.14.   The tool for the submission of digital documents was implemented in 2015, under the Portal 
Único  system. Through this instru ment, importers and exporters can submit documents 
electronically. It is being used in almost all licensing and customs release procedures, reducing 
time and costs, particularly to traders located away from the country 's borders. However, there 
are limits to the use of this solution, because some international agreements require paper 
documents to be retained by agencies.  
4.15.   A new general procedure for exports was developed in 2014 in cooperation with the private 
sector. In December 2016, the new electronic pr ocedures for export declaration and export cargo 
registration were made available for tests by the private sector. In March 2017, the new export 
process was implemented for the air transportation modal, and it is expected that the full 
implementation of th e new procedures will occur by the end of 2017.  
4.16.   Regarding transparency, a national foreign trade enquiry point was established by CAMEX 
Resolution No. 78 of 2 October 2013: the " Comex Responde " tool 
(http://comexresponde.comexbrasil.gov.br/ ). It centralizes the information requirements 
regarding: import and export regulations, documents and formalities; international trade 
agreements; trade logistics; tariffs, fees, charges and other taxes related to  imports and exports; 
and goods classification. Users are able to request information electronically, in Portuguese, 
English or Spanish.  
4.17.   Another important provision of the TFA implemented by Brazil in 2016 was the National 
Committee on Trade Facilitation ( CONFAC). The CONFAC was cr eated by Presidential Decree 
No. 8.807 of 2016. The Committee is responsible for guiding, coordinating, harmonizing and 
supervising the activities of federal agencies related to foreign trade operations, bearing in mind, 
among oth ers, the implementation of Brazil' s commitments under the TFA. CAMEX Resoluti on 
No. 122 of 2016 approved the CONFAC 's terms of reference. The importance of the private sector 
participation has been highlighted by the creation of a Cooperation Subcommittee in which public 
and private stakeholders can work together to improve trade facilitation in Brazil. This 
subcommittee provides for the participation of representatives from importers and exporters; the WT/TPR/G/358 • Brazil  
 
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  industrial and agricultural sectors; trade -related ser vices providers (logistic operators, brokers, 
insurers, etc.); and medium and small businesses.  
4.18.   Brazil ratified the TFA in February 2016, contributing to the entry into force of the 
Agreement earlier this year. The country structured and launched an inclus ive and effective 
national trade facilitation committee and completed its notification duties, including an update on 
its category A commitments (immediate implementation) and the publication of its category B 
commitments (deferred implementation).  Brazil is currently committed to implement all but three 
provisions of the agreement.  Moreover, at both the WTO and the WCO, Brazil has offered to share 
its experience with other developing countries in the implementation of the TFA agreement and, 
particularly, i n structuring its national trade facilitation committee.  
4.1.4   Sanitary and phytosanitary issues  
4.19.   Brazil is committed to animal and plant health and food safety in accordance with the WTO 
SPS agreement. All measures aiming at protecting human or animal health fro m food -borne risks, 
human health from animal or plant carried diseases and animals and plants from pests or diseases 
are regularly notified to the Committee on Sanitary and Phytosanitary Measures – SPS 
Committee/WTO and made available on the internet. The relevant sanitary or phytosanitary events 
are also immediately reported to the competent international organizations and authorities of trade 
partners. Brazilian Enquiry Points work in a coordinated manner. Sanitary and phytosanitary 
measures are normally based on standards, guidelines or re commendations produced by 
Codex  Alimentarius, OIE, and IPPC.  
4.20.   Since the creation of the WTO, Brazil has signed more than thirty bilateral agreements on 
sanitary and phytosanitary matters, based on SPS Agreement principle s. The main purpose of 
these agreements is to identify common rules, simplify import controls, harmonize certification 
requirements, and facilitate bilateral trade and the entry of selected products. The importance of 
such agreements for Brazilian exporter s and their trade partners can be measured by the increase 
in the bilateral volume of trade exports with more than one hundred countries and the integration 
of medium and small -sized agricultural producers into the international market in sectors as 
honeyb ee, organic products, fresh fruits and flowers. However, the full potential of Brazil's 
agribusiness has yet to be fully developed, mainly due to the lack of recognition of equivalence 
agreements by some countries, as recommended by the SPS Agreement.  
4.1.5   Comp etition policy  
4.21.   Since May 2012, with the entry into force of the Brazilian competition law – Law 
No. 12,529/11 –, the Brazilian Competition Policy System – SBDC – went through significant 
changes. These changes resulted in a unified approach to competition policy, bringing together the 
investigatory and decision -making powers of competition enforcement and leading to increasing 
efficiencies. They also allowed the Brazilian antitrust authority, the Administrative Council for 
Economic Defense – CADE, to focus more on relevant precedent, predictability and legal certainty, 
and granted it the tools and framework to reflect carefully on competition cases and provide 
coherent consistent and robust legal precedent in Brazil.  
4.22.   Between 2013 and 2016, the pre -merger re view system was consolidated, engendering 
remarkable improvements in CADE 's assessment of mergers. Since then, fast -track cases, which 
correspond to approximately 80% of all merger cases reviewed b y CADE, are decided in up to 
30 days, whereas ordinary case s are reviewed in an average of 60 days, and mergers, which are 
challenged or considered as complex, are analysed  in an average of 200 days. Furthermore, the 
decision -making process regarding mergers created important institutional efficiencies. As the 
majority of merger cases are concentrated in the General Superintendence, CADE 's Administrative 
Tribunal is able to focus on the challenged and complex merger cases, in cartels and other 
anticompetitive conducts cases and in its decision -making and normative competences. In other 
words, this institutional configuration allows the Tribunal to focus its resources on those cases that 
would affect most significantly the Brazilian market and the Brazilian consumers.  
4.23.   The efficiencies resulted from the changes in th e merger evaluation regime and CADE 's 
organizational set -up have benefitted developments and achievements in the investigation and 
assessment of anti -competitive conducts. The internal organization of the General WT/TPR/G/358 • Brazil  
 
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  Superintendence and, in particular, the imp lementation of a Screening Unit responsible for 
receiving and assessing complaints and leniency applications have contributed to the detection and 
effective evaluation of anticompetitive cases, identifying and prioritizing the most harmful ones. 
Regarding cartel detection, the General Superintendence activities have been made even more 
efficient with the implementation of an Intelligence Unit, in 2013, in charge of ex officio cartel 
detection, particularly on public procurement. It acts through partnerships  with public institutions 
that can provide data on public procurements in Brazil and through the development of 
procedures, based on international best practices, oriented to apply screens and data -mining in 
order to identify conducts potentially harmful t o the economic order.  
4.24.   CADE has also sought to strengthen the robustness of the Brazilian competition policy and 
maintain its efficiency through its normative guidance and by ensuring the predictability of the 
system. In 2016, CADE published Resolution N o. 17/20, regulating cases concerning the 
notification of associative contracts.  In the same year, CADE published the Resolution 
No. 16/2016, establishing a deadline of 30 days to complete the ana lysis of fast -track mergers. 
In 2015, CADE published Resolutio n No. 11, which implemented the Electronic Information System 
as the authority 's official system for information management. This initiative aims at reducing the 
duration of competition cases, contributing to public transparency and decreasing public expen ses. 
Moreover, all citizens have online access to the public versions of CADE 's files and documents. This 
feature is particularly appreciated by companies that have to notify or negotiate cases with the 
authority.  
4.25.   In order to promote transparency and lega l certainty and to provide guidance for 
stakeholders, companies and the competition community, CADE has also published, in the past few 
years, guidelines on its Leniency Program, its cease and desist agreement policy, competition 
compliance programs and th e assessment of previously consummated merger transactions.  
4.26.   The permanent improvement of settlements programs has been one of CADE 's priorities in 
the last years. CADE 's Leniency Program and the cease and desist agreement policy has been an 
important mech anism for a quicker and more efficient detection of anticompetitive conducts and 
enforcement of anticompetitive practices. The continuous collaboration with other enforcers, as 
with Prosecution Services, has resulted in the increasing number of leniency ag reements and 
consent settlements signed over the past years. CADE has also been collaborating with the Office 
of the Comptroller General and other institutions from the public administration, engendering 
efforts to integrate and improve its investigations,  especially those which comprehend both 
anticompetitive and antitrust matters.  
4.27.   International cooperation is also an important feature of competition law and policy in 
Brazil. CADE has cooperated with several foreign jurisdictions in the resolution of anti competitive 
cases, assessment of mergers and a close dialogue in order to make their work converge for the 
purpose of more effective competition enforcement. In addition, the Brazilian competition authority 
is part of relevant international competition for a, such as the ICN, OECD and UNCTAD, with an 
actively and fruitful participation, which contributes for the development of the best practices 
within the international competition community.  
4.28.   Regarding the financial system, according to Law 4.595/64, art . 18, §2º, the competence to 
control the competition aspects, including mergers and unilateral and coordinated anticompetitive 
conducts, is attributed to the Central Bank, which considers in this process, besides the effects in 
market concentration and competi tion, stability and efficiency aspects intrinsically related to the 
financial sector.  
4.1.6   Trade remedies  
4.29.   During the period under review, Brazil made use of trade remedy mechanisms, such as 
anti-dumping and countervailing measures, in conformity with the releva nt WTO rules. Although 
the number of measures in force has increased since 2012, the number of measures applied each 
year constantly and significantly decreased during the period under review.  
4.30.   Also during the aforementioned period, Brazil continued to mod ernize its legal framework, in 
order to clarify existing rules, as well as to give more transparency and predictability to the 
conduct of AD investigations. Such modernization process encompassed the release of a new WT/TPR/G/358 • Brazil  
 
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  decree that regulates administrative pr ocedures related to AD investigations (Decree No . 8.058, 
of 2013), as well as the enactment of ordinances that regulate some of the procedures provided 
for in such decree (e.g. proposals for price undertakings and scope assessments) and that 
determine the information that must be submitted by the petitioner in each case (e.g. original 
investigations, sunset reviews and scope assessments). The renewal of the Brazilian legislation 
related to trade remedies also comprised the drafting of a new decree that will  regulate 
administrative procedures related to CVD investigations and a legal act that will regulate the 
participation of fragmented industries in trade remedy investigations.  
4.31.   The main changes introduced by Decree No . 8.058, of 2013, are related to the 
establishment of more detailed procedures and shortened deadlines for investigations, the 
introduction of new disciplines such as assessment of scope and re -determination, the refinement 
of rules regarding the revision of existing measures and issues relating  to the effectiveness of 
antidumping duties. The renewal of the decree related to CVD investigations will also serve the 
same purpose.  
4.32.   In 2013, the Brazilian investigating authority hired 47 additional trade defence  
investigators, bringing to 65 the total number of staff. The objective of these changes in 
regulations and personnel was (i) to reduce the length of AD investigations from 15 to 10 months 
and (ii) to allow for preliminary determinations within 120 days from the date of commencement 
of an investi gation. Despite the fact that the number of Brazilian investigators has decreased since 
then, Brazil was still able to achieve the aforementioned goals, without prejudice ro the technical 
rigor of the investigating authority 's work.  
4.33.   It must also be noted that several efforts were made in order to facilitate the participation 
of interested parties in trade remedy investigations conducted by Brazil. For instance, Law 
No. 12.995, of 2014, made possible the submission of documents in any official language of t he 
WTO. No sworn translation to Portuguese is required in such cases. In 2016, Brazil ratified the 
Convention Abolishing the Requirement of Legalization for Foreign Public Documents, which also 
simplified the procedure for the submission of documents.  
4.34.   In order to make investigations more transparent and to facilitate the submission and the 
access to the case files of an investigation by all interested parties, Brazil implemented the DECOM 
Digital System (DDS), through SECEX Ordinance No . 58, of 2015. As a r esult, all procedures 
related to AD investigations with applications filed as of 31 July 2015, have been carried out 
electronically, through the DDS, allowing for authorized legal representatives to access virtually 
case files from wherever, and whenever n eeded, thus reducing the costs of participation in such 
procedures.  
4.35.   In 2012, CAMEX established a Technical Group for Public Interest Assessment (GTIP) 
pursuant to Resolution No. 13 of 29 February 2012. The GTIP is tasked with examining the 
suspension or mo dification of definitive AD and CV measures as well as waivers on the application 
of provisional AD and CV measures for reasons of public interest. Resolution No. 13 was modified 
by Resolution No. 27 of 29 April 2015 and by Resolution nº 30 of 31 March 201 6. Resolution 
No. 27 sets out procedures for the operation of the GTIP. It provides that requests to suspend or 
modify measures are to be submitted to the Secretariat for Foreign Affairs of the Ministry of 
Finance, which serves as the GTIP secretariat acco rding to Resolution No. 30, and must be 
substantiated by factual and legal evidence. In addition, any GTIP member or other federal 
Government body may request assessment by the GTIP of any definitive measure or on -going 
investigation. The GTIP has six mont hs, renewable just once for equal period of time, to submit its 
conclusion to CAMEX; however, in the case of an on -going investigation, it shall not submit its 
conclusions to CAMEX until a final recommendation on the application of provisional or definitiv e 
measures has been submitted to that body. The GTIP is to include in its acts the grounds and the 
reasons for its decision. Since the creation of GTIP, 15 cases were initiated, and the outcomes are 
as showed below:  
 Measures suspended  for reasons 
of publi c interest  Measures applied in an amount departing  from DECOM 
recommendations for reasons of public interest  
2013 6 0 
2014 1 1 
2015 3 3 
2016 0 1 WT/TPR/G/358 • Brazil  
 
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  4.1.7   Intellectual property  
4.36.   The Brazilian Government continues to invest in the improvement of services delivere d by 
its patent and trademark office, the National Institute of Industrial Property (INPI), underscoring 
the relevance it attributes to the protection and enforcement of intellectual property rights, given 
that Brazil as a country where further social and economic development is pursued, respecting, at 
the same time, the balance between rights and duties among producers and users of technology.  
4.37.   The most important effort carried out in recent years is the constant improvement of the 
quality of INPI's service s. Following reasonable timeframes is a high priority, and the goal is to 
enable INPI to reach the performance standards of the best ranked IP offices of the world. 
Nonetheless, patent offices, both in developed and in developing countries, continue facing  the 
challenge of coping with a continuous rise in IP applications. To deal with such challenge, the 
Brazilian Government hired 210 new patent and trademark examiners between May 2016 and 
April 2017. In the trademark field, INPI has increased the number of  examiners from 51 to 151, 
including newly hired examiners in January and April 2017, almost reaching a threefold growth in 
comparison with 2013 figures.  
4.38.   Additionally, the INPI has developed a number of systems in order to streamline its internal 
processes , eliminate unnecessary bureaucracy and increase the productivity of examiners. For 
instance, it was possible to implement the Industrial Property Automation System (IPAS), 
administered by the World Intellectual Property Organization (WIPO), which since 20 13 has 
brought more consistency to management and has proved to be an important tool for examination 
purposes. For the past years, a consistent downsize in the backlog of trademarks  has been 
observed, in spite of the growing demand for trademark applicatio ns. A related point to be 
considered is the constant revision of the normative framework, with procedures and 
administrative processes under review in both patent and trademark fields. These measures will 
certainly contribute to increase the scale of exams  and to reduce the backlog of trademarks and 
patent applications.  
4.39.   INPI has also promoted several actions to mitigate the impact of its growing patent backlog, 
such as, for example, the creation of a simplified electronic filing, covering 93% of the 
docume ntation delivered in digital form, and the implementation of pilot programs of priority 
examination. A pilot project between INPI and the United States Patent and Trademark Office 
(USPTO) for a Patent Prosecution Highway (PPH) between both offices is in fu ll operation since 
January 2016.  
4.40.   New PPH pilot programs are being negotiated. Together with PPH pilot programs, actions on 
patent priority exams were in place in 2016. The first one consists of transforming the Green 
Patents pilot program into a definitiv e service offered by INPI, making it possible to prioritize  
patent requirements regarding the environment and green technologies. The second action is a 
pilot project that allows small businesses, the financial resources of which are generally reduced, 
to have their patent requirements prioritized.   
4.41.   In conformity with other IP Offices around the world, the INPI has also implemented a 
Home Office pilot program which makes it possible to carry out patent examinations in different 
regional offices other than t he Headquarters in Rio de Janeiro.  
4.42.   Several actions aimed at streamlining the submission and examination of applications in the 
patent field are also worth mentioning. Since 2014, INPI publishes letter patents with the 
Cooperative Patent Classification (CP C) symbol for several technological fields, following the 
patterns of this project administered by the EPO and the USPTO. Another example is the work 
done through PROSUR, a cooperation project on industrial property among the Offices of nine 
South American  countries (Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Paraguay, Peru 
and Uruguay). It is now advancing into the operationalization of a PPH PROSUR which will be an 
important tool to allow Offices to reduce their backlogs and strengthen the q uality of their 
examination.  
4.43.    As for other intellectual property assets, INPI has carried out relevant initiatives towards 
improving its services, such as the implementation of a registry of software by electronic means in 
an automatic and real -time manner , which is currently in progress; the development of electronic WT/TPR/G/358 • Brazil  
 
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  means for recording the topography of integrated circuits; the development of a system for the 
automatic generation of leaflet of published and letter -patent applications in an automatic manne r. 
In the industrial design field, a workforce has been put together to streamline the examination of 
pending applications.  
4.2  Sectoral Issues  
4.2.1   Industry  
4.44.   The global economic crisis that started in 2008 affected significantly the performance of the 
industrial se ctor in Brazil. From 2004 to 2008, the industrial sector showed positive growth rates. 
After an abrupt slowdown in 2009 ( -4.7%), the industrial sector recovered in 2010 (10.2%), led 
by capital goods (21.3% in 2010, physical production) and intermediary goo ds (10.4% in 2010, 
physical production). In 2011, Industry and GDP showed similar growth rates: 4.1% and 4.0% 
respectively. However, since 2012, the sector has been retreating lagging behind GDP rates. In 
2013, growth rates remained positive (2.2%). In 201 4 and mainly in 2015 the industrial sector 
was strongly affected by severe contraction in economic activity, dropping 1.5% and 6.3%, 
respectively, with manufacturing industry rates leading the negative results in both years: 
2014 (-4.7%) and 2015 ( -10.4%).  In 2016, the sector showed signs of recovery as the pace of 
decline rates slowed in the four quarters results ( -6.9 1Q to -3.8 4Q annualized). Indicators of 
industrial production show slight expansion in 2017, compared with the same period in the 
previous  year, where the cumulative index of output industry increased 0.3% for the 
January -February 2017 period. Among the major economic categories, the profile of the results of 
the first two months of 2017 was more dynamic for durable consumer goods (11.6%) an d capital 
goods (3.7%).  
4.45.   Taking into consideration the challenging moment and the need for restructuring the 
industrial sector, the Brazilian Government created a program of prompt and low -cost 
interventions to boost the productivity of industries: the Mor e Productive Brazil Program 
("Programa Brasil Mais Produtivo"). It was launched in 2016, aiming at meeting the needs of 
3,000 companies in all the Brazilian states by 2017. The program's objective is to increase 
productivity by at least 20% in the producti on line by complying with principles of lean 
manufacturing.  
4.46.    This Program has national coverage and provides the possibility of integrating the expertise 
of different institutions in a common strategy of increasing productivity, aiming to improve the 
production process in sectors with good perspective . In this respect, the initiative will foster the 
development of companies, the industrial sector and the region. With the productivity gain, an 
'overflow' effect is expected with positive impacts on the produ ctivity and competitiveness of the 
cluster where companies served by the Program are located. This strengthening of local and 
regional economies is connected to a regional development policy. Competitiveness gains and 
direct impact on the sectors and clust ers might stimulate a better environment for new 
productivity -enhancing programs that enable the competitive integration of Brazilian products into 
the Global Value Chains.  
4.47.   It is also important to underline the possibility of evaluating and monitoring onli ne the 
performance indicators and targets of the program. The results obtained  with the first 
153 companies, until November 2016, show a 56.5% increase in the productivity. These positive 
results have consolidated the program and granted its expansion.  
4.2.2   Agriculture  
4.48.   Brazil's long -standing agribusiness competitiveness and the trend of its production and 
exports have been supported by sustained investments in agricultural research, consolidating the 
country's leadership as a major agricultural producer and expo rter. In 2016, agrib usiness was 
responsible for US$ 84.9 billion in exports that represented 45.9% of Brazil' s total exports. 
Brazilian participation in world trade in the sector is of 6.9%. Brazil is the world´s main exporter of 
soybeans, frozen poultry, s ugar and coffee, the second main exporter of corn and the third in 
terms of frozen bovine meat.  WT/TPR/G/358 • Brazil  
 
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  4.49.   Brazilian grain production in 2016 -17 will probably reach the record amount of more than 
211 million tons, 27% higher than in 2011 -12, in spite of adverse weat her conditions in some 
important agricultural states.  
4.50.   Brazilian agricultural policy follows a market -oriented approach, privileging rural credit and 
risk management based on private rural insurance. Market price support is limited to the payment 
of premium s determined in a limited number of public auctions.  
4.51.   According to the OECD Producer Support Estimates (PSE), Brazil is one of the countries that 
provide the least subsidies to agricultural producers, well below the OECD average.  
4.52.   The main sources of agricul tural financing have continued to be resources from demand 
deposits and rural savings compulsorily destined for rural credit, resources from Agribusiness 
Credit Bills (LCA) directed to rural credit and credit lines managed by the National Economic and 
Social Development Bank (BNDES), as well as the "Constitutional Funds" aimed at reducing 
regional inequalities and promoting social and economic development through the financing of 
agriculture, agro -industry and other sectors, in addition to infrastructure, i nnovation and 
technology. These funds are targeted to the North, Northeast and Centre -West regions (FNO, FNE 
and FCO).  
4.53.   The share of mandatory resources devoted to rural credit increased from 28% to 34% of 
demand deposits since June 2012, and from 72% to 74 % of rural savings since June 2015. In 
addition, since June 2015, a fraction of the balance of Agribusiness Credit Bills (LCA), which are 
fixed income securities backed credit transactions linked to agribusiness, are directed to rural 
credit. As of June 20 16, 35% of the balance of the funds raised by this financial instrument must 
be allocated to rural credit at no cost for the National Treasury.  
4.54.   The Government adopts national policies designed to facilitate the access of family farmers ' 
products to the dom estic market. Through the Food Purchase Program (PAA), the Government 
buys food produced by family farmers and distributes it to individuals and families in situation of 
food and nutrition insecurity. The PAA also contributes to the creation of stocks of f ood produced 
by family farmers that will eventually be used in the National School Meal Program, and reinforces 
local and regional commercial networks. In 2016, US$ 169.2 million were invested in public 
purchases from family farmers through PAA.  
4.2.3   Services  
4.55.   In 2016, Brazil 's exports of goods and services reached a total of US$217.8 billion. Exports 
of goods decreased 2.7% in comparison with 2015, in parallel with exports of services, which 
decreased 1.4%, totalling  US$33.3 billion in 2016. In 2016, imports of  goods and services 
decreased sharply by 16.4% in comparison with 2015, reaching US$203.2 billion. Imports of goods 
fell by 19.1%, whilst imports of services declined 9.8%, totalling  US$63.7 billion in 2016.  
4.56.   From 2010 to 2016, exports of services increased  8.6%, expanding the share of services in 
Brazilian exports from 13.2% to 15.3%. Imports of services expanded 4.8%, increasing 
participation in the composition of Brazilian imports, from 25.0% to 31.4%. The deficit in the 
Services Account has declined in 2 016 (reaching US$30.4 billion), contrary to the trend observed 
in recent years (specifically in 2014, the deficit had reached US$48.1 billion). The deficit reduction 
resulted from economic contraction in 2015 -16 that weighed hea vily on imports of services.  
In 2016, the deficit decreased by 17.5%, compared to the previous year.  
4.57.   Over the past years, Brazil increased its participation in world trade in services, but with a 
performance inferior to the average of other countries, rankin g 32nd among world exporte rs 
in 2015. In the same year, Brazil ranked 19th among services importing countries.  
4.58.   The participation of Brazil 's services sector in the Brazilian Gross Domestic Product (GDP) 
has increased in the past years from 67.8% (2010) to 73.3% (2016), while the s hare of the 
industrial sector declined from 27.4% (2010) to 21,2% (2016). In 2016, the services sector  had a 
share of 69.4% of all formal jobs in the country, according to data from the Ministry of Labour  
(CAGED/MTE).  WT/TPR/G/358 • Brazil  
 
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  4.59.   After the implementation of the Brazi lian Integrated System of Foreign Trade in Services 
and Intangibles (Siscoserv) in 2012, Brazil has been able to release annually the statistics of 
foreign trade in services and intangibles between residents and non -residents. This data has been 
consolidat ed and released in Portuguese and in English, in an effort to give transparency and to 
expand dissemination of important information that can be used by companies, other government 
bodies, and public in general interested in foreign trade.  
4.60.   Siscoserv is jo intly managed by the Federal Revenue Secretariat of the Ministry of Finance 
(RFB/MF) and the Secretariat of Commerce and Services of the Ministry of Industry, Foreign Trade 
and Service (SCS/MDIC). The system contributes to the stimulation, conception, supe rvision and 
measurement of public policies for services and intangibles. The information obtained by Siscoserv 
can also be used to guide foreign trade business strategies.  All services and intangibles are 
classified using the Brazilian Classification of Se rvices and Intangibles (NBS), and the Explanatory 
Notes of the Brazilian Nomenclature of Services and Intangibles (NEBS).   
4.61.   In 2015, the top markets for Brazilian services and intangibles were the United States 
(US$6.16 billion), the Netherlands ( US$1.78 bi llion), Germany (US$ 1.09 bi llion), the 
Unite  Kingdom (US$ 899 million) and Switzerland (US$ 876 million). Brazil 's five major export 
markets represented 57% of all the transactions registered at Siscoserv that year. Regarding 
imports, the main supplier mark ets were the United States (US$ 13.05 billion), the Netherlands 
(US$11.9 billion), the United Kingdom ( US$2.63 billion), Germany (US$ 2.6 billion) and Norway 
(US$1.73 billion). This group of countries represented 70% of Brazilian imports, with the first two 
countries accounting for 54.7% of the total.  
4.62.   In 2015, the five top export services were: "management and management consulting 
services " (US$2.18 billion); "other professional, technical and management services " 
(US$1.88  billion); "services auxili ary to fi nancial services" (US$ 1.5 billion); "water transport 
services of freight " (US$1.45 billion) and "maintenance and repair services of fabricated metal 
products, machinery and equipment " (US$1.19 billion). These represented 43.3% of all export 
transactions.  
4.63.   In 2015, the five main imported services were "operational leasing " (US$19.62 billion); 
"water transport services of freight " (US$5.20 billion); "licensing on copyright and related rights " 
(US$3.41 billion); "other professional, technical and management ser vices" (US$1.57 billion) and 
"financial services except investment banking, insurance services and supplementary pension 
plans " (US$1.14 billion). These represent 67.94% of total Brazilian imports of services and 
intangibles.  
4.64.   Brazilian foreign trade in ser vices shows a high regional concentration. The South and 
Southeast regions of Brazil, when put together, account for 96.9% of all export transactions (the 
states that compose these regions are among the 7 leading exporters of Brazilian services and 
intangi bles) and 96% of all imports registered at Siscoserv in the year 2015.  
4.65.   Based on data from Siscoserv, the Brazilian Government has published "Bilateral Profiles " on 
the 10 main export and import products of important trading partners in services, with analy ses of 
bilateral trade between Brazil and those partners in services. The Brazilian Government also has 
published on a yearly -basis the "Overview of International Trade – Services ". The publication aims 
to expand the dissemination of information on foreign  trade in services, allowing transparency and 
greater visibility to this economic sector.  
4.2.4   Renewable energy  
4.66.   Brazil has one of the world's cleanest energy mixes. 43.8% (2016) of primary energy 
sources are renewable, compared to a world average of 14.3% and 9 .5% in OECD (2015) 
countries. Renewable sources will continue to account for a large share of supply, mostly due to 
the use of hydropower and bioenergy, including biofuels. Only 30% of Brazil 's hydroelectric 
potential has been exploited. The potential for increased production of this renewable and 
affordable energy source is an integral part of the country's long -term strategy for the sector. 
Widespread access to affordable energy is crucial to achieve the goals of sustainable development, 
to promote social  inclusion and poverty reduction; to advance national integration and the 
reduction of greenhouse gas emissions; and to improve competitiveness. Brazil is, therefore, WT/TPR/G/358 • Brazil  
 
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  investing significant amounts in research and in new technologies to improve the generati on and 
distribution of energy.  
4.67.   Brazil also considers bioenergy, including biofuels, an indispensable tool for the expansion 
and diversification of the energy matrix. Nowadays, biomass electricity – generated mostly from 
sugarcane processing plants – accoun ts for about  8.8%  of Brazil 's total electricity energy  supply. 
By 2024, biomass, wind and solar generation are expected to supply 20.7% of the country's 
electricity energy needs. In the transportation sector, the use of ethanol and biodiesel plays a key 
role in the pursuit of sustainable development, climate change mitigation and energy security. The 
Brazilian case shows that the long term and large scale sustainable production and use of biofuels 
are possible, and Brazil continues to work towards the creat ion of an international market for 
biofuels.  
4.2.5   Land transport  
4.68.   In recent years, railway concessionaires have shown greater interest in investing to increase 
available transport capacity. Investment proposals are being analysed  by the competent areas of 
the Government in the context of previous extensions of the railway concession contracts.  
New Concessions  
4.69.   In 2016, the Investment Partnerships Program (PPI) was created (Law No. 13,334, dated 
September 13, 2016), under the coordination of the Secretariat of th e Program of Investment 
Partnerships (SPPI). Its main objective is to generate jobs and growth, through new investments 
in infrastructure and privatization projects. PPI projects are considered a national priority.  
4.70.   With the publication of Decree No. 8,916 of November 25, 2016, federal public enterprises 
were qualified under the PPI, including three new railroad concessions:  
i. Ferrovia Norte Sul - FNS (EF -151): sub -concession of 1537 km stretch between Porto 
Nacional / TO and Estrela D'Oeste / SP;  
ii. Ferrogrão (E F-170): concession of 965 km stretch between Sinop / MT and Miritituba 
(in the municipality of Itaituba / PA); and  
iii. West - East Integration Railway - FIOL (EF 334): sub -concession of 537 km stretch 
between Ilhéus / BA and Caetité / BA.  
4.71.   Brazil expects the au ction of all three projects to take place during the second half of 2017.  
4.72.   New Concessions under the Investment Partnerships Program (PPI):  
i. EF-151 – FNS: designed to promote national integration, the 1,537km stretch will 
expand the railway connection from t he central region of Brazil to the São Paulo grid 
of ALL (Port of Santos) and the Ports of the North / Northeast regions (Itaqui and, in 
the future, to the Port of Vila do Conde). The 855 km stretch between Porto Nacional 
/ TO and Anápolis / GO is already completed, while the 682 km stretch between Ouro 
Verde de Goiás / GO and Estrela D'Oeste / SP is under  construction and works are 
expected to be over by the beginning of 2018. The possibility of future construction, 
by the winning bidder, of connections wi th new optional greenfield segments will also 
be considered.  
ii. EF-170 – Ferrogrão: the 965 km stretch between Sinop / MT and Miritituba / PA 
already studied by PMI (study approved in 2016), will improve the flow of 
agricultural production in the Midwest, rea ching the Tapajós waterway and 
contributing to a better balance in the transport matrix. This is a greenfield project.  
iii. EF-334 – FIOL: studies on the sub -concession are unde rway by the Government of 
Bahia . The 537 km between Ilhéus / BA and Caetité / BA are  under construction, and 
71% has been concluded (June 2016). Among the expected loads, iron ore 
transportation from Caetité region to the future South Port in Ilhéus stands out. The WT/TPR/G/358 • Brazil  
 
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  operation of the railroad depends on the completion of this port, by the G overnment 
of Bahia. In the future, it is planned to interconnect EF -334 with EF -151 in 
Figueirópolis / TO, which will increase the options of transport with port access.  
Other Initiatives  
Bi-oceanic  
4.73.   This is a railway connection project between Brazil and a  port in Peru, which has been 
subject to a pre -feasibility analysis under a Memorandum of Understanding signed in May 2015 
between Brazil, China and Peru. The route of the Bi -oceanic railway in the Brazilian territory is 
about 3,300 km long, from Campinort e/GO to the border with Peru, in the state of Acre. The route 
corresponds to part of the railroad EF -354. The study of the Bi -oceanic railroad faced until the end 
of 2016 technical questions still unresolved, so that the project was not considered in the P PI. 
EF-118 Rio -Vitória  
4.74.   Project under development by the states of Rio de Janeiro and Espírito Santo, to implement 
a new rail link with 578 km between Nova Iguaçu / RJ and Cariacica / ES. The project will 
strengthen rail interconnection between several port s on the northern coast of the state of Rio de 
Janeiro and on the southern coast of the state of Espírito Santo, with two major port anchor 
projects: the Açu terminal (São João da Barra / RJ) And the Central Port terminal (Presidente 
Kennedy/ES). By the en d of 2016, the project still required further development of concession 
modeling and was not yet covered by the PPI.  
4.2.6   Air transport  
4.75.   Brazil is the world's third largest domestic aviation market.  Air transport regulation in Brazil 
follows a free competition r egime based on unrestricted pricing and routes determination, 
according to commercial considerations in the market place.   
4.76.   Both domestic and international air transport markets registered a decline in the number of 
operated flights reflecting the slowdown of the country's economy since 2013. Concerning the 
domestic and international passenger markets, the Load Factor stood at 79.9% in 2015, 0.9% less 
than in 2014, registering a first reduction after 5 consecutive years of growth . Between 2013 
and 2014, the international price of a barrel of oil reached US$100. In 2015, the oil price dropped 
significantly reaching US$50.76 a barrel. The oil price drop should have had a significant impact on 
the aviation costs in Brazil, considering that more than 30% of the s ector's costs come from fuel. 
The expected cost reduction did not take place completely due to the strong rise of the exchange 
rate between the Real and the Dollar, which went from R$2. 66, in 2013, to R$ 3.90, in 2015. The 
average price paid for domestic fl ights did not fluctuate much though. I t was estimated at 
R$334.5  in 2015, corresponding to a direct average distance of 1,105 km between the origin and 
the destination of the passenger, regardless of stopovers or connections. This fare represented a 
reduct ion of 9% compared to 2014 and an average direct distance of 1,072 km.  
4.77.   Between January and November, 2016, 21.32% of Brazil's imports (by value) and 5.94% of 
its exports were transported via air cargo, compared to 17% and 4.3% in 2011, respectively. 
Brazilian companies accounted for 24% of total international air cargo transported in the country 
in 2015, compared to 22% in 2014. Domestic market remains concentrated, but no merger or 
take-over occurred between 2013 and 2016. There is no Brazilian air carrie r with state 
participation. Thirteen Brazilian companies provided regular and non -scheduled public air transport 
services, except air taxi, of which three were mainly ensuring cargo operations in 2015. In the 
same year, foreign companies totaled 79 of whic h 23 operated only in the cargo transportation 
market.  Among Brazilian companies, only four airlines (Gol, Tam, Azul and Avianca) had more 
than 1% of the domestic market share each (in terms of revenue passenger kilometres  (RPK)) and 
together they represen ted 98.4% of the passengers transported on domestic flights in the country. 
Among the main cargo companies Absa carried 12.6% of the total cargo freight in the domestic 
market. Brazilian companies accounted for 32.8% of international flights to and from Br azil in 
2015, compared to 28.4% in 2014. While the number of international flights by Brazilian 
companies grew by 49% from 2006 to 2015, those of foreign companies grew faster at 64%. Tam, 
Gol and Azul accounted for 94.8% of international flights operated by Brazilian companies. WT/TPR/G/358 • Brazil  
 
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  Considering both domestic and foreign carriers, these three Brazilian companies had 18.3%, 
11.5% and 1.3% share in flights in 2015 respectively, whereas foreign companies such as 
American Airlines, Copa Airlines, Tap, and Austral re tained shares of 7.2%, 5.7%, 5.0% and 3% 
respectively.  
4.78.   The institutional framework governing the aviation sector was reviewed in 2016. The Civil 
Aviation Secretariat (SAC/PR), responsible for, inter alia, formulating policies and strategic plans 
for the de velopment of the civil aviation sector, overseeing plans to open up airport investment to 
private companies, approving concessions to build new airports and terminals, and delegating to 
the States, Federal District, and municipalities the management, opera tion, and maintenance of 
public airfields was merged into the structure of the Ministry of Transportation, Ports and Civil 
Aviation. The National Agency for Civil Aviation (ANAC) is in charge of the regulation and 
supervision of civil aviation; its respons ibilities include, inter alia , regulating safety and security 
matters related to civil aircraft, certifying aircraft and granting airline operation permits, 
conducting biddings for airport concessions, regulating the allocation of slots in congested airpor ts, 
and licensing civil aviation personnel.  The Department of Air Space Control (DECEA), under the 
Aeronautics Command (COMAER) and the Ministry of Defence, provides most navigation and air 
traffic control services. The National Airport Authorities Commiss ion (CONAERO), remains 
responsible for coordinating and organizing the activities of all government bodies and agencies 
that operate in airports (e.g. Customs, migration, health, etc.), and is headed by the SAC/MT.  
Regulatory and operational framework  
4.79.   The main legal instrument remains the Brazilian Aeronautical Code (CBA) of 1986, last 
amended in 2016 by Law 13,319. In addition to minor changes to the CBA, Law 13,319 
extinguished the ATAERO surcharge applied on airport fees. Concessions for the provision of  
Brazilian -based regular air transport services are granted only to Brazilian legal persons with 
headquarters in Brazil, managed exclusively by Brazilians, and in which four fifths of shareholder 
voting rights are held by Brazilian nationals.  The increase of the ceiling for foreign investments in 
Brazilian air carriers remains under discussion within the Brazilian Government.  Domestic public air 
transport services (cabotage) is limited to Brazilian legal persons.  The lease of foreign aircraft 
requires prior  authorization.  Domestic air fares are determined freely by airline companies, with no 
prior approval being necessary. Companies must inform their sold fares on a monthly basis to 
ANAC for statistical purposes.  
4.80.   Civil aviation policy pursues greater integr ation of Brazilian aviation into international 
markets, through the conclusion of air services agreements (ASAs). Since 2013, Brazil has 
celebrated  ASAs with the 36 partners. Brazil maintains 102 bilateral understandings, with open 
skies agreements represe nting more than half of those. Renegotiations of existing ASAs or 
negotiations for new ASAs are under way with several countries. Most ASAs grant at least 
5th freedom traffic rights, and in most cases include clauses on cooperation and code -sharing, 
multip le designation, and free pricing; most of the renegotiated agreements also contain free 
determination of capacity clauses.  
4.81.   The Brazilian Government is negotiating open skies agreements with the purpose of 
improving the country 's international connectivity.  Brazil is among the most progressive countries 
on the liberalization of the international air transport. In this context, the Brazilian Government is 
trying to replace "substantial ownership and effective control " by criteria for air carriers 
designation based on the principal place of business and regulatory control. Brazil supports free 
pricing, free capacity determination and traffic rights up to 6th freedom. Cabotage is prohibited by 
national law.  
4.2.7   Ports and maritime transport  
4.82.   In 2015, the merchant fle et registered under the Brazilian flag (long -haul and cabotage) 
consisted of 184 vessels (156 in 2012), operated by 35 shipping companies and with a total 
capacity of 3.4 million deadweight tons (DWT) (2.5 dwt in 2012). Oil tankers represent 39.8% of 
total DWT capacity, followed by bulk carriers (19.5%) and container ships (17.6%). The 
predominance of oil tankers and bulk carriers reflects the overall structure of Brazilian exports of 
goods, comprising mainly oil, iron ore, soybeans, sugar and other commodi ties.  WT/TPR/G/358 • Brazil  
 
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  4.83.   With a coastline of 8,500 km, transportation of goods and passengers by coastal shipping 
(cabotage) in Brazil has increased in recent years, and growth potential is still significant. 
Economic growth in the country's North and Northeast region, as w ell as the rising purchasing 
power of the emerging middle -class have created opportunities for the development of costal 
shipping in Brazil.  
4.84.   Brazil's port infrastructure handled 1 billion tons of goo ds in 2015 (904 million tons 
in 2012). This is equivalent  to 77.6% of the total value (US$ f.o.b. ) of the country's foreign trade 
in the same year (81.7% of exports and 73.2% of imports) and to 94.8% of total foreign trade by 
tonnage (95.9% of exports and 89.9% of imports). Between 2005 and 2015, the total movem ent 
of cargo in ports and terminals in Brazil grew, in average, 4.5% annually (from 649 million to 
1 billion tonnes). During this period, the movement of containers grew, on average, 6.2% per year 
in tonnes.  
4.85.   Since the entry into force of the new Law of Por ts (Federal Law 12.815/2013), investment in 
the sector has been limited to the new Grant contracts, as well as the new term extensions in 
ongoing contracts. Nonetheless, the amount established in these cases is just an estimation. Its 
attainment is part of  either the Basic Plan of Investments or the Execution Projects presented by 
the tenants and it could be satisfied in different moments of the contracts ' validity.  
4.86.   Two new Grant contracts were signed in the past three years representing a total 
investment of R$4.25 billion, and 11 contract term extensions we re confirmed, which sums 
R$9.2  billion.  
4.87.   The total investment in private termina ls between 2013 and 2016 was R$ 3.75 billion.  
4.2.8   Telecommunications  
4.88.   The Brazilian telecommunications market, during the period 2 012-15 had its growth 
particularly driven by the expansion of mobile data services broadband Internet access, pay -TV 
and broadcasting. Investment in the telecommunication sector increased from R$25.8 billion in 
2012 to R$29.7 billion, in 2015.  
4.89.   In 2015, th e sector began the migration of analogue to digital terrestrial TV signal from 
open television in Brazil, which is scheduled for completion in 2018. This switch off is releasing the 
700 Mhz band so that the 4G mobile broadband offer can be expanded nationw ide. 
4.90.   The mobile telephony market suffered a decrease during the years under review: the 
number of mobile telephone subscriptions reached 261.8 million in December 2012, 280.7 million 
in 2014, but finished 2015 with 257.8 million with a teledensity of about  125.7 mobile lines per 
100 inhabitants against 132.8 in 2012. The reduction of mobile SIMCards in operation can be 
partially explained by the implementation of a phased mobile termination rates (the so -called 
VU-M) which has brought price reductions in bo th the wholesale and retail markets, but mainly 
rationalized retail offers from mobile operators. Some 71.5% (81% in 2012) of mobile lines are 
pre-paid versus 28.5% of postpaid. The increase of postpaid lines occurred probably due to service 
plans with Int ernet access as well as Plans with programmed recharge (Control Plans).  
4.91.   Internet usage continues to report impressive growth, spurred by increased broadband 
access across the country, following initiatives by the Government to expand access and make 
broad band connections more affordable under the National Broad band Plan. The deployment of 
3G networks in Brazil with 150 million access in 2015 (50 million in 2012), followed by 4G with 
25.4 million in 2015, significantly expanded mobile broadband access in re cent years. Also the 
number of fixed broadband subscriptions reached 25.4 fixed access in 2015 against 19.8 in 2012.  
4.92.   In contrast, the number of fixed telephone lines decreased slowly during the period under 
review. In 2012, there were 44.3 million fixed a ccesses in service and 43.7 million in 2015.  
4.93.   In December 2012, there were 16.2 million pay TV subscriptions. This was another area 
which experienced growth, reaching 19.1 million in 2015.  WT/TPR/G/358 • Brazil  
 
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  4.94.   Today, Brazil's telecommunication sector is fully open to competiti on though limited to a 
handful of large operators from abroad, including Telefónica (Spain), Telecom Italia (Italy) and 
Teléfonos de México (Telmex)/América Móvil (Mexico), as well as a domestic company, Oi, in 
which the State maintains a strategic stake t hrough BNDES and the pension funds of state -owned 
enterprises. Concentration in the mobile and broadband services segments has risen. Following a 
May 2015 regulatory approval setting certain conditions, a US$10 billion takeover of Global Village 
Telecom (G VT), the Brazilian broadband business of Vivendi (France), gave Telefónica control of 
one of the country's fastest -growing operators, leading to the creation of the largest telecoms 
operator in Latin America.  As of 2015 the fixed line market, co nsisting of  65 operators 
(32 in 2012), was dominated by Telefónica (34.26%), Oi (formerly Telemar) (34.21%) and 
Embratel (owned by Telmex, 26.61%); As of 2015 the mobile tel ephony market, consisting of 
20 operators, including the MVNO operators, (18 in 2012), continu ed to be mainly operated by 
Vivo (28.42%), Tim (25.69%), Claro (25.59%) and Oi (18.65%). Between 2014 and 2015 the 
number of companies authorized to supply fixed broadband service grew by 19.5. As of 2015, the 
fixed broadband market consisted of 3223 opera tors (1725 in 2012) and was dominated by Claro 
(Embratel/Net) (31.84%), Oi (25.02%), and Telefonica (including GVT) (28.63%).   
4.95.   The National Broad Band Plan (PNBL) was instituted by Decree 7.175 of 13 May 2010, with 
a view to boosting access to broadband se rvices across the country and bridging the digital divide, 
in collaboration with private operators. The plan consists of a series of actions in several 
dimensions, including spectrum auctions to increase mobile broadband coverage (4G and 
telecommunications  services for voice and data in rural and remote regions), the implementation 
of a national transmission network (backhaul and backbone), Agreements for the expansion of 
commercial broadband offers at low prices and regulatory measures aimed at promoting g reater 
competition and network expansion.  
4.96.   Regarding technological convergence measures, Law 12.485, of 12 September 2011, 
changed and unified the regulatory framework for pay TV services. It removed the limit on foreign 
investment in cable TV (which did no t apply to pay TV services provided through MMDS or DTH 
technologies). Law 12.485 also eliminated previous limitations on fixed -line telephony 
concessionaires to provide cable -TV services and removed regional restrictions on telecom 
operators, allowing the m to provide pay TV services anywhere in Brazil.  
4.97.   New infrastructure legislation, the "Antenna Law", was signed into law in April 20th 2015 
(http://www.anatel.gov.br/legislacao/leis/807 -lei-13116 ). The law seeks to reduce instances of 
duplication of mobile -network base station in urban areas by making a requirement for operators 
to share infrastructure and excess capacity.  
4.98.   In 2012, Anatel Resolution 600 approved the General Plan of compe tition Goals (PGMC), 
defining that Groups with Significant Market Power (SMP) in Relevant Wholesale Markets should 
contract a Supervisory Entity Of Wholesale Supplies (SNOA) to implement and operate the 
Wholesale Supply Negotiation System with the aim of m ediating, in an equitable and non -
discriminatory way, the process related to the procurement of wholesale goods supplied by Groups 
with SMP. In 2015, the regulation was amended to include new conditions for operators with 
significant market power. In 2016 a new proposal was submitted to public consultation for changes 
including ex -post regulation in which the relevant markets will continue to be pointed out, but the 
agency only intends to act in the cities where it identifies the real need to stimulate comp etition, 
not to act ex ante . 
4.99.   With regard to Internet -related measures, Brazil introduced Law 12.965, of 23 April 2014, 
on network management in the context of network neutrality, as well as on the protection and 
keeping of records (logs) and personal data of Internet users, which apply both to Internet 
connection (service) providers and to Internet application/content providers.  
5  FUTURE DEVELOPMENTS  
5.1.  After an unprecedented economic recession in 2015 -2016, a consistent recovery is now 
underway in Brazil. GDP w ill return to growth in 2017, albeit at a still modest rate. In 2018 growth 
is expected to pick up pace. A number of additional economic indicators give reasons for a positive 
assessment about the perspectives for a sustainable economic recovery. Inflation  rates are 
converging to the center of the target range. The current account deficit has dropped dramatically WT/TPR/G/358 • Brazil  
 
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  in recent years, and is now slightly above 1% of the GDP. FDI flows continue to be robust and 
Brazil remains one of the main recipients in the wor ld. High levels of foreign exchange reserves are 
a solid buffer against any possible global uncertainties. In this more favourable  outlook, the 
Government of Brazil will continue to attach highest political priority to reforms and fiscal 
measures that prom ote a sustainable path for public accounts. The Government will undertake 
efforts to put in practice a real agenda for productivity; professionalization of state -owned 
enterprises; autonomy of regulatory agencies; improvement of labour  rules;  regulatory 
frameworks that observe economic rationality;  improvement of infrastructure; and focus on legal 
security. High rates of unemployment, a result of the 2015 -2016 economic recession, remain a 
core challenge.  
5.2.  The Brazilian economy still presents a high level of economic slack, highlighted by reduced 
indices of industrial capacity utilization and, mainly, by the trajectory of unemployment rate, 
indicating that its recovery will be slower and more gradual than previously anticipated. The credit 
market is on a downt urn, especially in the corporate sector, with delinquency rates on relatively 
high levels reflecting the slower -than-expected recovery in economic activity. In the face of this 
scenario, with consistent signs of the disinflation process and anchored inflat ion expectations, the 
Central Bank started a monetary easing cycle in October, 2016.  
5.3.  The Government is committed to bring public deficit and debt to a more sustainable trend. A 
20-year constitutional limit for the increase of total federal primary spending  according to the 
previous year's inflation rate has been approved and a social security reform is being discussed at 
the National Congress. In its Fiscal Monitor of October 2016, the IMF projects an improvement in 
primary results, including a primary surp lus from 2020 onwards, as a result of the measures that 
are being implemented and proposed.  
5.4.  The financial system is anticipated to remain solid, given the sound economic fundamentals 
and continued operations in strict accordance with the Basel principles o f banking supervision. 
Given the importance of improvement of the institutional environment to ensure financial stability 
and the essential functions of the real economy, the Banco Central do Brasil  (Central Bank of 
Brazil) is enhancing several of its mech anisms to mitigate the eventuality of a financial crisis, 
including its banking resolution framework in accordance to the best international practices – the 
new framework will include mechanisms preventing the usage of taxpayer resources before all 
private  sources of available funds are exhausted. In addition, it has been improving the regulation 
of payment systems in order to align it to the Principles for Financial Market Infrastructures 
(PFMIs). Accordingly, in order not only to foster greater competitiv eness in the payment services 
market in Brazil, but also to promote the efficiency of the financial system, it has encouraged the 
sharing of infrastructure among the financial institutions with a view to generating scale 
economies. The possible impacts of technological innovations for financial institutions are also 
being monitored by the Regulator. Furthermore, in order to enhance credit allocation, to reduce 
the level of credit default and, consequently, decrease the cost of credit, it is stimulating a 
structuring agenda to reduce bank spread. Additionally, measures to review the accounting rules 
for financial instruments to support its convergence to the best international standards have been 
taken. Moreover, measures to improve the institutional environm ent, through a proposal of 
integrated governance among the national financial system supervisors ( Banco Central do Brasil , 
Comissão de Valores Mobiliários , Superintendência de Seguros Privados  and Previdência 
Complementar ) have been adopted. Finally, to ex pand the financial inclusion of the population, the 
Central Bank has induced good practices of financial institutions related to the promotion of offers 
of financial services to their clients.  
5.5.  With regard to the Brazilian Payments Systems, it is worth ment ioning, among other 
developments, the impacts of Provisional Measure 764/2016 that allowed merchants to 
differentiate prices according to the type of payment instrument, and their related costs, as chosen 
by buyers. The Brazilian System Oversight Report 20 15 signalled  that the possibility of price 
differentiation, according to the cost of each payment instrument, should lead to a more 
cost-efficient utilization of the set of payment instruments.  
5.6.  Efforts to spread financial education to the population will be increased. The subject has been 
incorporated in the National Curriculum for High Schools, and National Strategy for Financial 
Education 's programs from elementary to high schools will be taken to more and more schools. 
Additionally, recent pilot program s aimed at low -income adults (women and retirees) will be WT/TPR/G/358 • Brazil  
 
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  implemented in larger scale. The Banco Central do Brasil  has just made financial citizenship one of 
the pillars of its agenda for the next few years.  
5.7.  With regard to social policies, t he Government w ill continue to implement income guarantee 
policies, which seek to relieve poverty in the short term and contribute to the reduction of social 
inequality and inclusion of the poorest share of the population. Meanwhile, the Government will 
invest in public policies capable of breaking the intergenerational cycle of poverty and will promote 
the social inclusion of the most vulnerable sectors of the population, allowing for the emancipation 
of beneficiaries.  
5.8.  In this context, the National Strategy for Social a nd Productiv e Inclusion will be launched 
in 2017. The objective of the Strategy is to include families in poverty situation registered in the 
Unified Registry, especially the beneficiaries of the Bolsa Família Program (PBF), in initiatives that 
can extend and strengthen their insertion and permanence in the labour  market. This National 
Strategy aims to develop capacities and stimulate the engagement of people in job and 
income -generating activities, while stimulating territorial development.  The capacity bu ilding of 
beneficiaries and the promotion of access to microcredit are two important strategic tools.  
5.9.  The Government will also continue to invest in family farming through public purchase, with 
an expected investment of US$806.6 million until 2019. For th is purpose, the Government is 
working on strengthening the institutional purchase modalities of PAA, which allows institutions 
from the public administration to purchase food from famil y farmers through the program.  
5.10.   Strengthening and supporting the multil ateral trading system will remain a priority. Brazil 
will continue to play an active role in the WTO and will contribute to counter anti -trade movements 
and protectionist pressures. In light of the diversified nature of its trade and production structures,  
Brazil has a major stake in a multilateral trading system that is able to provide the basis for the 
expansion of international trade on a non -discriminatory basis. Achieving balanced, 
development -oriented results will be at the core of all efforts. The DD A and its mandates will 
continue to be the main reference for negotiations, however Brazil will be actively engaged in the 
discussion of all other topics on the table, including the so -called new issues, on their own merits.  
5.11.   Brazil will also continue to be  committed to MERCOSUR, regional integration – as mandated 
by its Constitution – and to strengthening and fostering new bilateral and regional trade 
agreements, with a view to promoting cooperation, sustainable development and mutually 
beneficial results.  
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