WT/TPR/M/358  
16 October  2017 
(17-5553) Page: 1/65 
Trade Policy Review Body  
17 and 19 July 2017   
 
  TRADE POLICY REVIEW  
BRAZIL 
MINUTES OF THE MEETING  
Chairperson: H.E. Mr Juan Carlos Gonzalez (Colombia)  
CONTENTS  
 
1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  ................................ .......................  2 
2  OPENING STATEMENT BY  THE REPRESENTATIVE O F BRAZIL  ................................ ....... 4 
3  STATEMENT BY THE DIS CUSSANT  ................................ ................................ ................  9 
4  STATEMENTS BY  MEMBERS  ................................ ................................ ........................  13 
5  REPLIES BY THE REPRE SENTATIVE OF BRAZIL  AND ADDITIONAL COMME NTS ...........  55 
6  CONCLUDING REMARKS B Y THE CHAIRPERSON  ................................ .........................  64 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Brazil  are reproduced in document WT/TPR/M/ 358/Add.1  and will be available online 
at http://www.wto.org /english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/358 • Brazil  
 
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  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The seventh  Trade Policy Review of the Brazil was held on 17 and 19 July 2017. The 
Chairperson, H.E. Mr. Juan Carlos Gonzalez (Colombia) welcomed the delegation of Brazil headed  
by Mr. Pedro Miguel da Costa e Silva, Director of the Economic Department in the Ministry of 
Foreign Affairs; the rest of the delegation; and the discussant, Ambassador Gennady Ovechko  
(Russian Federation) . 
1.2.  The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting. The report by Brazil  was co ntained in document WT/TPR/G/358  
and that of the  WTO Secretariat in WT/TPR/S/358 . 
1.3.  Questions by the following delegations had been submitted in writing befo re the deadline: 
Canada; Mexico; Hong Kong, China; Switzerland; European Union; Peru; United States; Australia ; 
Chile; Argentina; Singapore; New Zealand; Norway; China; Colombia; India; Japan; Chinese 
Taipei; Republic  of Korea; Ukraine; and El Salvador . The following delegations submitted written 
questions after the deadline: Dominican Republic; Russian Federation; Paraguay; Thailand; 
Ecuador; Indonesia; Turkey; and Malaysia . 
1.4.  During  the previous TPR meeting in 2013, Members had praised Brazil for having wea thered 
well the global economic crisis  largely due to some macroeconomic policies. They had also praised 
Brazil for furthering the diversification of its international trade. However, Members had noted that 
GDP growth had slowed down since mid -2011, reflec ting, inter alia , structural shortcomings that 
had affected Braz il's competitiveness. Since then , and in to the current review period,  Brazil 's 
largely domestic demand -driven economy had continued to decelerate and the country had 
entered a recession in 201 5-16, which had been  accompanied by a rise in inflation and 
unemployment, and  had generated some  fiscal policy challenges. Trade and trade -related reform 
initiatives had been  undertaken during the current review period in several areas, includ ing in 
trade facilitation, anti -dumping, production and trade incentives (for example, SME support), 
state-owned enterprises, energy, manufacturing, transport infrastructure, and , according to the 
Brazilian authorities, more reforms were under consideration. As indicat ed in the advance written 
questions, Members wished  to learn more about Brazil 's reform agenda  in these areas, as well as 
any initiatives with regards to internal taxation, the labour market, and the pension system.  
1.5.  Members recall ed that, at the time of th e previous review, they had commended  Brazil 's 
active participation in the multilateral trading system , in the Doha Development Agenda, and in 
development -related issues . Some Members  had also invited Brazil to  accede to the GPA, to join 
the Information Te chnology Agreement and to ratify the Fifth Protocol to the GATS. Brazil 
remained  an active participant in the multilateral trading system. Notably, it had ratified the Trade 
Facilitation Agreement and had deposited its instrument of acceptance of the Fifth  Protocol on 
Financial Services. It now also gr anted  preferential treatment to services and service suppliers 
from least dev eloped countries. Brazil remained  a non -party to the plurilateral GPA  and ITA 
Agreements . 
1.6.  With regard to trade policy, at the time o f the previous review, Members had encouraged 
Brazil to refrain from the use of measures  that might have a restrictive impact on trade , such as 
temporary tariff increases, preferential margins in government procurement, and criteria favouring 
domestic prod uction when granting incentives or credits. Members  had also encouraged Brazil to 
make trade policy implementation more transparent and predictable. Members  had also noted then 
the wide use of non -automatic import licensing and that Brazil had stepped up t he use of 
contingency meas ures, in particular antidumping. Members  had urged Brazil to ensure accurate 
and fair application of such measures. Since then, a strong  emphasis on negotiating RTAs  had 
been noted. However , apart from that, the overall thrust of Brazil 's trade  and trade -related policies 
had not changed significantly. Automatic and non -automatic import licences continue d to be widely 
used, and Brazil remained  a significant user of anti -dumping measures. A number of finance, 
insurance, and guarantee  programmes intended to enhance the competitiveness  of 
export -orient ed companies  remain ed in place, although some had been phased out.  These issues 
had been raised by some Members in their advance written questions.  
1.7.  Other issues of Members ' interest  at the  time of the previous review had included: the 
complexity of Brazil 's tax system; the high costs related to customs clearance; local content WT/TPR/M/358 • Brazil  
 
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  and/or production process conditions attached to general and industry specific incentives schemes, 
for example , in the automotive, telecommunications, che micals, and oil and gas sectors. Members 
had also highlighted then some  possibly trade -distorti ng agriculture support measures, and  several 
IPR issues  such as geographical indications, copyright protection, patents, c ompulsory licensing 
and enforcement. As indicated in Members ' advance written questions for this review, Brazil had 
taken  steps to upgrade its single window and its authorized economic operator programme. They 
also noted that b order measures had remain ed coupled with complex general and activity -specific 
tax and non -tax incentives, inter alia , involving production step related local content requirements, 
administered interest rate or subsidized credit and other targeted subsidies. In the field of 
intellectu al property rights , protection had been  further enhanced, but significant backlogs and 
delays in the processing of applications remain ed. 
1.8.  Despite the progress already achieved since the previous review, some of the issues 
mentioned above continue d to featu re in Members ' advance questions this time. The Chairperson 
drew Members ' attention to the following areas , among others,  where they were interested in 
having more clarity as to the way forward. These include d: local content and production 
step-related pol icies; WTO notification and RTAs developments; sectors affected by foreign 
ownership limitations; and the complexity of the tax system and of production and trade 
incentives.  
1.9.  This meeting was a good opportunity for Members to discuss in greater detail iss ues of 
interest to them and of systemic importance to the multilateral trading system. The Chairperson 
looked forward to a fruitful exchange.  WT/TPR/M/358 • Brazil  
 
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  2  OPENING STATEMENT BY  THE REPRESENTATIVE O F BRAZIL ( MR. PEDRO MIGUEL DA 
COSTA E SILVA)  
2.1.  Good morning to you and to all representatives here today. It is a pleasure to be back in 
Geneva, after a very long absence and to have the opportunity to participate, once again, in a 
Trade Policy Review of Brazil.  
2.2.  My first words must be of acknowledgement and of thanks – first and  foremost to the 
Secretariat for all their work and cooperation. A famous Brazilian composer used to say, jokingly, 
that Brazil is not for beginners. And he was right. We are a large and complex country. So I want 
to recognize and appreciate all the hard w ork that went into the Secretariat 's report.  
2.3.  We may not necessarily always agree with the editorial line and with many of the opinions 
and suggestions that can be found in the report, but this is precisely one of the elements of the 
current process. We are  here to have an open and frank exchange of views; this includes, of 
course, differing perspectives on issues.  
2.4.  I also want to thank today 's discussant, Ambassador Gennady Ovechko of Russia. Brazil 
appreciates that he has taken the time to examine our repo rt and we appreciate his remarks and 
insights. As a representative of another continental country and a partner in the BRICS, he was 
very well placed to be today 's discussant.  
2.5.  Last but not least, I need to thank the Brazilian Mission to the WTO, the member s of the 
Brazilian delegation and all the colleagues back in Brazil who worked on the reports and on 
answering the questions. The good news for them and for me is that the n ext TPR will only be in 5 
years ' time. 
2.6.  This Trade Policy Review covers a challengin g period for Brazil. The last TPR report covered 
years in which our country was doing well, while most other Members were facing the devastating 
economic and social effects of the financial crisis that began in 2008.  
2.7.  Since 2014, however, while many other Members started on a gradual path to recovery, we 
have been weathering possibly the worst recession of our history, with especially serious effects on 
employment and the well -being of Brazilians.  
2.8.  We recorded negative GDP growth of 3.8% and 3.5% in 2015 and  2016. Exports and imports 
decreased dramatically from the numbers recorded in 2013. Our current account numbers also 
recorded deficits.  
2.9.  And as most of you know, this crisis is taking place in a challenging political context.  
2.10.   I want to stress here, today,  that we are taking a series of measures and steps to overcome 
current difficulties and to continue on the path towards sustainable development.  
2.11.   The Brazilian Government is committed to maintaining the country in the course of fiscal 
responsibility. Theref ore, we have approved a constitutional amendment that sets a ceiling for 
public expenditures.  
2.12.   The Government has also set as one of its main priorities the reform of the Social Security 
System. The new rules need to take into account changes to our demogr aphy and the limits to our 
capacity to pay for social security.  
2.13.   Several positive signs of recovery are already visible, with a general return of confidence in 
the perspectives for the Brazilian economy. The recession of 2015 -2016 seems to be  over. We 
have managed to reduce inflation: the most recent market forecasts point to a rate of 3.38% in 
2017. More importantly, u nemployment is falling and we have several indicators of an increase in 
purchasing power for workers. Debt levels of enterprises and familie s are also going down.  
2.14.   Foreign direct investment is increasing. If we take only the sector of infrastructure, we have 
recorded inflows of US$11 billion in 2017 alone.  WT/TPR/M/358 • Brazil  
 
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  2.15.   At this stage, we predict a modest growth of GDP of 0.5% in 2017. In any case, despite a ll 
the challenging circumstances, the Secretariat is correct in its assessment (and I quote): "Brazil 
has mainly solid economic fundamentals " (end of quote).  
2.16.   The Brazilian reform agenda goes far beyond fiscal responsibility. We are also focusing on 
the nee d to become more competitive and to create more opportunities for growth.  
2.17.   Congress just approved an important reform on our Labor Laws, aimed at the modernization 
of our legislation, with a focus on strengthening collective bargaining agreements and in bri nging 
needed flex ibility to work relations. The G overnment is also revamping the model for public 
concessions and p rivatization in certain sectors  to attract even more investment.  
2.18.   An additional element that clearly signals our commitment to change and the  direction we 
want to move towards is the presentation of our request to initiate a ccession procedures to the 
OECD  on May this year. And I mention it also because the OECD and its papers are an important 
reference source for the  Secretariat 's report.  
2.19.   Brazil has been cooperating with the OECD since the mid -1990s. In 2007, we became one of 
the Key Partners of the organization. In terms of public and economic governance, Brazil has 
already adopted most of the OECD 's recommendations on investment. In recent wee ks, Brazil has 
requested to join the OECD Codes of Liberalization of Capital Movements and of Current Invisible 
Operations. We have also joined the Good Statistical Practices and eight instruments regarding the 
digital economy. Brazil believes that joining  the OECD will boost its ongoing, broader process of 
reforms.  
2.20.   We were pleased with the interest of Members in our TPR and in our market. We received 
over 600 questions from almost 30 Members. Areas of interest are far ranging. Today, I will 
address some is sues that were raised, especially those that I believe are indicative of the direction 
we want to take in terms of trade policy.  
2.21.   Before I begin, though, I think it is necessary to stress that while our recession has been 
severe, we are still one of the mai n destinations for investment worldwide, attracting 42% of FDI 
flows destined to Latin America and the Caribbean according to the UNCTAD.  
2.22.   This is a reflection of confidence in our economy and in our institutions. Notwithstanding the 
crisis, we did not fac e balance of payments issues, or currency exchange issues. Contrary to what 
happened in the past, we have foreign exchan ge reserves in the range of US$ 370 billion.  
2.23.   The diversity and dynamism of the Brazilian economy are exemplified in many passages of 
the Secretariat report. We are the third largest exporter of agricultural goods. The seventh largest 
market for vehicles. The fourth largest telephony market on a subscription basis. And the only 
Latin American country in the top 10 worldwide ranking for reta il e-commerce. I could go on, but it 
suffices to recall th at we are still among the world 's 10 largest economies.  
2.24.   The report by the Secretariat takes the general view that the Brazilian economy is 
inward -oriented. This is partially true. As the report note s, the participation of trade in the 
composition of our GDP is still low. But it is similar to  that of other Members of this O rganization, 
such as the United States and Japan. If we take the case of services, Brazil ranks in numbe r 47 in 
terms of the World  Bank's restrictiveness index, which means we are better placed than several 
developed countries.  
2.25.   It is important to recall that the current situation in Brazil is the result of historical choices 
we made in terms of development. We chose development throu gh the attraction of FDI and were 
very successful in doing so. Now, while maintaining interest in attracting investment, we are also 
convinced that Brazil needs to be even more open and integrated to the world economy.  
2.26.   This explains our recent drive to int ensify the negotiation of new regional trade agreements. 
Together with our partners in Mercosur , we are finalizing (hopefully) an agreement with the EU 
and deepening existing agreements, such as the ones we have with Mexico and India. We are in 
the initial  stages of negotiations with EFTA and have exploratory talks with Canada, Lebanon, 
Tunisia, Australia and New Zealand. All these Members can confirm that Brazil and its Mercosur WT/TPR/M/358 • Brazil  
 
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  partners come to the negotiating table with a very constructive approach, read y to discuss all 
issues. And we do not bring with us blueprints, or ready -made models. We respect Members ' 
specificities and differentiated needs.  
2.27.   This understanding of the need for flexibility and to address issues with creativity is also 
what led Brazil to propose and negotiate a series of Investment Cooperation and Facilitation 
Agreements. This new template, developed on the basis of a thorough review of UNCTAD and 
OECD guidelines, extensive consultation with our domestic private sector and international  
benchmarking, balances the objective of promoting an attractive environment for investors with 
the maintenance of adequate policy space for public policies. It sidelines BIT limitations, most 
notably the "more favorable " treatment extended to foreign inve stors, in favor of a positive 
approach that values institutional cooperation and facilitation of investment flows. Seven ACFIs 
have been signed to date, with two more pending signature and six others in negotiation.  
2.28.   Even though the r eport of the Secretaria t indicates the participation of different sectors of 
society, this is an aspect of the formulation of Brazilian policy in trade related issues that does not 
come across as strongly as it should. Civil society, academia and especially organizations of our 
private sector and business community have been very vocal in expressing their concerns and 
views. And they have been very vocal in defining areas of interest, in issue s that range from 
e-commerce to agricultural negotiations.  
2.29.   Another central issue in the  report by  the Secretariat and in Members ' questions relates to 
what could be summed up as the complexity of our internal tax structure and the excessive 
bureaucracy for doing business. If you add what we, Brazilians, call the "Brazil cost ", the collection  
of issues that hinder the increase of productivity and our capacity to compete on equal footing with 
other countries, then you have the complete range of issues that are permanently on the agenda 
of our private sector. Here, let me emphasize one crucial a spect: the so -called "Brazil cost " equally 
affects Brazilian and foreign companies. Shortcomings in our business environment should not be 
seen as barriers against foreign companies.  
2.30.   Brazil 's Government is the first to recognize the need to rationalize an d simplify tax 
obligations and our regulatory framework in general, in order to reduce costs for taxpayers, 
improve the business climate and promote sustainable and socially inclusive economic 
development. Reform of these issues has been on the agenda for many years, but they have to be 
solved through complex negotiations with many  stakeholders, including Congress, municipalities 
and states to political parties and representatives of different sectors of the economy.  
2.31.   Let me stress, though, that there is in creasing consensus in Brazilian society that certain 
changes need to be made and issues addressed in rules and procedures with a direct impact on 
trade and trade policy.  
2.32.   Our National Trade Facil itation Committee, for example. One of the main items of the 
Agenda is to create a working group (we have already created it, as a matter of fact) to deal with 
import licences. Many questions by Members to Brazil regard non -automatic import licences. We 
are working on trying to simplify procedures and to decrease the  number of those licences.  
2.33.   Camex, our Foreign Trade Secretariat,  on the other hand, is working on the issue of 
regulatory coherence. This is important for us, not just for international trade, but even for our 
own internal organization to make sure that a ll the different Bodies, the views of regulatory issues 
are streamlining procedures . 
2.34.   Several Brazilian government agencies are involved in implementing the Single Window for 
trade operations. By late 2017, the Single Window will be fully operational for ex ports. And by the 
end of 2018, the Brazilian Government expects it to be functioning for imports. The objective is to 
make life easier for exporters and importers, to simplify procedures and , especially, to increase 
trade flows.  
2.35.   In what regards the issue of internal taxes, there is significant discussion going on 
concerning the need for simplification. Work is also under way to streamline bureaucracy, by 
reducing the time needed to create and close down business and to pay taxes.  WT/TPR/M/358 • Brazil  
 
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  2.36.   It's also worth noting tha t the most recent WTO Monitoring Report on G20 trade measures 
shows, in its annex, that Brazil was one of the countries that adopted the largest number of trade 
facilitating measures. The G20 Investment Measures Report highlights Brazilian measures to 
further open to foreign participation the exploration of the so -called pre salt oil and gas fields. All 
this to say that we may be seen as inward oriented by some, but we are making concerted efforts 
to simplify procedures and reduce bureaucracy, with the obje ctive to answer to requests from our 
society and stakeholders.  
2.37.   Señor Presidente, estamos completamente comprometidos con esta Agenda de cambio pero 
no vamos a abrir ni dejar de lado algunas de las medidas que tenemos en vigencia. En el reporte 
del Secretar iado, hay una serie de temas que fueron levantados y que Usted mencionó.  
2.38.   One of the issues that were mentioned several times is the issue of domestic support  
programme  in agriculture. Let me therefore stress that, despite a broad array of program mes in 
place, the fact remains that actual expenditures are very low. Brazil 's PSE, at 2.6% in 2015, is 
among the lowest in world.  
2.39.   Several Members also raised concerns on the issue of possible "local content " requirements 
in program mes to promote industrial develop ment. This charact erization is inaccurate. Brazil 's 
policie s mentioned in the Secretariat r eport aim at promoting local production, technological 
improvements and workforce skills, legitimate goals that are in line with the WTO objectives set in 
the Marrak esh Agreement.  
2.40.   There were also questions about our official export credit support. These program mes are in 
line with all our international obligations, particularly the Agreement on Subsidies and 
Countervailing Measures. Should Brazil join the OECD, arran gements which we are following 
closely would equally apply.  
2.41.   Regarding foreign direct investment, we would like to point out that foreign capital in Brazil 
receives the same legal treatment as that given to local capital in the same sector. No restrictions 
are applied to the distribution and remittance of profits abroad.  
2.42.   On services, the Brazilian market is very open in key sectors such as financial services and 
telecommunications, a mong others. And the Brazilian G overnment is committed to further boost 
private entry and improve the functioning of other core services sectors – air transport services, 
maritime transport services and acquisition and lease of rural land by foreign investors, for 
instance.  
2.43.   I would like to conclude my statement with a reaffirmatio n of the importance that Brazil 
attaches to the WTO and to the multilateral trading system.  
2.44.   If you recall the beginning of my statement, I mentioned that it has been a long time since I 
last participated directly in a Brazil TPR. To be more precise, it was  in 1996.  
2.45.   Back then, we had a single M ission in Geneva that covered the work of all UN Agencies and 
other i nternational O rganizations. Now, we have one dedicated mostly  to the WTO  and to other 
economic organizations . It's a very nice Mission with a team of  colleagues dealing mostly with the 
WTO and economic issues. This is very significant and shows our commitment to the Organization. 
But if that was not enough, I want to say that we are very proud to have Ambassador Roberto 
Azevêdo as DG, and I want to tha nk you very sincerely for having supported him for another term.  
2.46.   Today we are doing work related to monitoring. And I want to stress that we are fully 
committed to our notification obligations. Including the notification of RTAs. There may be 
differences of opinion regarding the way we made the notifications, but the fact remains that we 
complied with our obligations.  
2.47.   We also strongly support an efficient and impartial Dispute Settlement Mechanism. Brazil 
believes that the system has increased the security  and predictability of the multilateral trading 
system.  WT/TPR/M/358 • Brazil  
 
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  2.48.   Finally, time and again we have proved our will to contribu te to the negotiations in this 
Organization. In the path that leads to the Ministerial in Buenos Aires, Brazil has participated in an 
open m inded and constructive manner in discussions and negotiations related both to the Doha 
agenda and new issues. At a time when there are questions regarding the need for multilateral 
trade negotiations, the need for multilateral trade rules and the benefits brought by trade, we 
reaffirm our view that the best contribution we can make to overcoming present difficulties is to 
come together and deliver substantial – albeit incremental - results at th e end of the year, in 
Argentina  to consolidate the WTO as the m ain forum for reaching balanced outcomes for all our 
countries.  
2.49.   Let me conclude my statement by inviting you,  the S ecretariat and all representatives to 
visit the exposition "Creative Brazil ", in the main hall of the WTO. It will be on until the 23rd of 
July and it showcases projects in the area of design to support p oor communities in our country. 
Thank you . WT/TPR/M/358 • Brazil  
 
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  3  STATEMENT BY THE DIS CUSSANT  
3.1.  It is my pleasure and hono ur to be a discussant for Brazil at its 7th Trade Policy Review. As 
you know, alongside the TPR B Chair, my role is to encourage the debate during the meeting by 
focusing on the main trade and trade -related challenges facing the Member under review, and the 
key changes since its previous TPR.  
3.2.  Further down, I will endeavo ur to highlight the most impo rtant aspects of the Brazilian trade 
and economy as a whole and make some explanatory notes on how they affect the country 's 
economic relationship with the rest of the world. With this in mind, I will structure my statement 
the way that presents the Brazil ian overall economic situation and then outlines trade and 
investment peculiarities by measure and by sector and wrap it up with examination of the 
country 's role in the multilateral trading system.  
3.3.  In preparing to the review, I have learnt a lot mo re abou t Brazil and its people.  It was an 
exciting research experience and I could share my findings for hours if not a time constraint. As of 
this, I would limit myself to the remark by one famous Austrian, Stefan Zweig, who lived a part of 
his life in Brazil. H e once made a very shrewd observation in an essay titled "Brazil, Land of the 
Future ". It actually claims that if one tries to speak of Brazil of the present, one unintentionally 
reduces to its past. The country could be comprehended only from forward -looking perspective ".  
Overall economic performance, including foreign trade  
3.4.  I will start by the fact that size really matters. Brazil is a big player and an important 
contributor to the multilateral trade system. It is the fifth largest nation by territory, w hich spans 
four time zones, as well as by population of 207 million, forming a vast consumer market.  
3.5.  Brazil ranks the ninth if measured by nominal GDP. Its economy has relatively diverse 
standing and comprises a variety of well -established sectors. They in clude agriculture, mining, 
manufacturing, engineering and services. It also boasts advanced aerospace industry, builds 
national capacity in nuclear power and operates offshore hydrocarbon fields.  
3.6.  Brazil has entered the period under review with a robust gro wth and dynamism. The success 
story was driven by stimulating strategies on the demand side, domestic production and exports. 
However, the economy was taken a hard blow due to unfavourable  externalities and, in particular 
export prices plunge for major com modities coupled with capital outflight. According to national 
statistics, Brazil 's economy declined by 3.8% in 2015 and then by another 3.6% in 2016. It meant 
the first recession of two consecutive years since 1930. The budget deficit widened, while the 
industrial output, household disposable income and consumption saw contraction.  
3.7.  Against this scene, the Brazilian Government is to be commended for its prompt and 
meaningful response to lift the economy out of the c risis and put it back on track.  Among its 
deliverables and expected outcomes are a cap on public expenditure, secondary education 
revamp, tamed inflation, regulation improvements and structural reforms. The Government further 
works to improve the business environment and streamline the procedures to this end.  
3.8.  New initiatives to lure foreign direct investments into strategic sectors were unveiled. They 
include but not limited to cutting red tape, operational costs savings and better legal frameworks 
for investors. When implemented they could make a strong boost to Brazilian economy and new 
businesses.  
3.9.  In the wake of this series of policy actions , Brazilian economy is about to overcome recession 
and enter the path of growth. In the first quarter of 2017, Br azil's GDP grew by 1% on a 
year-to-year basis .  
3.10.   The performance indicators beat previ ous expectations from both the G overnment and 
experts. This is especially true for interest rates and inflation. For example, inflation decreased 
from 10.6% in 2015 to 6.26% in 2016. OECD adds up to this outlook by p redicting that inflation 
will be by the end of the year well below the set target of 4.5%. The national currency – real – 
gained against the US dollar for the first time since 2010. FDI 's departure has been handled. The 
Central Bank of Brazil currently put  capital arrival at US$75 billion.  WT/TPR/M/358 • Brazil  
 
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  3.11.   The IMF report of 19 April 2017 praises cap on public expenditure and complementary effect 
of the pension reform being under review by the National Congress. They are both seen as good 
medicine for fiscal imbalance. The Fund portends that by 2020 the N ation will command a fiscal 
surplus again, getting additional revenues to sustain its debt.  
3.12.   With regard to the public finances, the IMF forecasts that the year of 2017 will end with a 
primary deficit of 2.3% of GDP. Reformat ive agenda could gradually narrow this divide, first to 
1.1% of GDP in 2018 and then bring it to even lesser digit.  
3.13.   Last June , the OECD improved its forecast for Brazil 's growth in 2017. The fresh estimate 
raises the figure to 0.7%, up from zero in March. The overall message is also positive: "Brazil is 
finally emerging from a severe and prolonged recession ". 
3.14.   For the next year, the country 's growth prospects are also improved, to 1.6%. The OECD 
predicts that unemployment should begin to decline by the end o f this year and continue to 
gradually fall.  
3.15.   However, the fiscal deficit remains above 9% of the GDP. Further adjustments will be 
required to ensure a firmly declining path for public debt. I would like to acknowledge a new 
expenditure rule that limits rea l increase in spending and reduces the rigidity of the budgeting 
process, improving long -term fiscal sustainability. Nevertheless, flexibility is still limited regarding 
pensions and social benefits, which amount to almost half of central government spendi ng. 
Another issue to tackle is high interest payment on public debt, which account s for 19% of public 
spending.  
3.16.   Implementing the currently discussed pension reform is crucial to comply with the new 
expenditure rule and to turn the fiscal adjustment into a success. The population aged 65 and 
above will more than triple in the next four decades. Without a comprehensive reform, pension 
spending would increase to 11 % of GDP by 2030.  
3.17.   Additional structural reforms have potential to boost growth. It is worth seei ng how to 
reduce compliance costs and distortions imposed by Brazil 's fragmented system of indirect taxes. 
Consolidation of all indirect taxes into one broad -based value -added tax is one of possible ways to 
go.  
3.18.   Brazil could also enhance its productivity b y cutting costs of imported inputs. The recent 
decision by Brazil to ease local content rules is a right step towards reducing trade barriers and 
should be warmly welcomed. These measures, in particular if supported by infrastructure upgrade, 
could raise B razilian competitiveness on foreign markets, add more jobs and reduce operational 
and transportation costs for national business.  
Trade policies and practices by measure  
3.19.   During the first six months of 2017, Brazil has mounted its trade surplus by 53.1% to 
US$33.2 billion, as exports went up 19.3 % and imports rose at slower 7.3%.  
3.20.   In fact, in June 2017 , exports from Brazil jumped 23.9 % compared to the same p eriod last 
year and reached US$ 20 billion. The expansion is registe red at all major destinations. Highe r 
earnings for iron ore, oil, soybeans, cargo vehicles and automobiles were the main drivers of the 
increase.  
3.21.   Imports increased at a slower 3.3% to US$20 .6 billion. Purchases rose for fuels and 
lubricants, consumer goods and intermediate goods, but fell fo r most of the capital goods.  
3.22.   Brazil is placed only 123rd out of 190 countries in the World Bank 's 2017 Doing Business 
Report. Foreign companies complain over high tariffs, cumbersome customs procedures, high and 
unpredictable tax burdens, and a complicated  legal framework as major challenges they confront. 
In this context, I would like to draw your attention to some of the Brazil 's trade policy instruments 
worth being examined in -depth at our discussion.  WT/TPR/M/358 • Brazil  
 
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  3.23.   According to the Secretariat 's report, the gap betwee n the average bound and applied tariff 
rates is about 18.5 percentage points. This difference, if flattered, would enhance predictability of 
Brazil 's tariff regime.  
3.24.   Taxes are also a complicated area. Customs duties and other taxes on foreign trade account 
for 15% of federal tax revenues, but the shar e of customs duties is only 3.6 %. There are many 
different taxes, such as the tax on industrial products; the tax on circulation of goods and 
provision of services; contributions to the Social Integration Progra mme and to social security 
financing; and tax on services. It is not uncommon that these taxes are combined for the purposes 
of the determination of the tax base. In addition, their application tends to vary according to the 
type of product, the sub -federa l authority jurisdiction and the tax status of the importer. There is 
certainly room for improvement in this area.  
3.25.   It is notable that applied MFN rates on some tariff lines are above the bound level. In some 
cases, an importer may request application of th e bound rate. It is worth mentioning that, though 
TPRM is not a WTO commitments enforcement tool, as stressed by the Chair in his introductory 
remarks, many M embers have posed written questions on this issue in connection with the TPR.  
3.26.   More than half of B razil's tariff lines are subject to non -automatic licensing requirements. 
The granting of such licenses is often subject to proof that such goods are not substitutable 
domestically. Members have some reasonable doubts about measure 's consistency with WTO r ules 
and eager to know whether Brazil has any plans to ease restrictions.  
3.27.   Brazil is a relatively active user of anti -dumping me asures. New procedures for 
anti-dumping measures came into force in October 2013, in particular, the introduction of 
retroactive  application of anti -dumping duties. Anti -dumping and countervailing investigations may 
be initiated simultaneously. Brazil is expected to elaborate on the reasons for a hike in application 
of trade remedies.  
3.28.   Brazil maintains a number of program mes intende d to increase exports and to boost 
competitiveness of export -oriented companies, in particular MSMEs. In 2015, the Government 
launched a National Export Plan (2015 -18). There were questions about specific instruments to 
foster development of local producti on chains.  
Trade policies by sector  
3.29.   Brazil is a major player in trade of primary agricultural products. Its domestic support to 
agriculture is low. However, a number of instruments in this regard, such as credits and minimum 
price guarantees, pose systemic  risks to the global trade in agriculture. In connection with this 
TPR, many Members questioned about these policy instruments, and are looking forward to 
detailed exchange in this area.  
3.30.   On the SPS side, as it is noted in the Secretariat 's report, after a n investigation on irregular 
practices involving certification of meat and meat products at some processing facilities, Brazil 
reaffirmed the adequate maintenance of the official sanitary program mes and specific controls on 
domestic products of animal orig in, and stated that it expected Members not to resort to measures 
that would constitute arbitrary restrictions on international trade or run counter to the disciplines 
of the SPS Agreement and other WTO rules.  
3.31.   Brazil is a net exporter of crude oil and is nearly self -sufficie nt in primary energy. The 
state-controlled PETROBRAS dominates the domestic hydrocarbon market both i n upstream and 
downstream. Oil and  gas industry enjoys tax incentives. Although formally deregulated since 2002, 
consumer prices of ref ined petroleum  products are de facto fixed by PETROBRAS. In view of some 
Members, there is a room for improvement in this sector with regard to transparency and a more 
pro-market approach.  
3.32.   Services overwhelm Brazil 's GDP and job creation, but currently get  setbacks from structural 
weakness and poor international performance. The sector 's share in GDP has grown rapidly at the 
expense of the manufacturing sector to reach 73.3% in 2016. In most developed and emerging 
countries, the share of services usually po sitively correlates with per capita income. From this 
point of view, Brazil 's case seems to be different, since the sector 's share in GDP of over 70% is WT/TPR/M/358 • Brazil  
 
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  similar to countries with much higher per capita income. On the other hand, foreign trade in 
services a ccounted for only 15% of the country total trade flow despite significant expansion in the 
last decade, well b elow the world average of 20%. Therefore, the Brazilian G overnment and the 
private sector face some major challenges here. They will have to imple ment a multi -dimensional 
reform aimed at increasing productivity and competitiveness of the services sector, as well as 
providing services of better quality and higher value -added. Without such improvements, it would 
be difficult to increase the share of B razilian services in the world trade flows.  
Brazil in the Multilateral Trading System  
3.33.   As for Brazil 's role in the multilateral trading system, Brazil has consistently stood for the 
multilateralism in trade and vigorously supported the WTO as its core platf orm. It continues to 
place an emphasis on smooth functioning of the international rules -based trade system as a 
safeguard against isolationist and protectionist practices.  
3.34.   Brazil pushes for new advancements at negotiations in the WTO for the sake of a mor e open 
and fair trade. It is also actively engaged in the discussion on all the topics that have been 
identified as potential deliverables at the 11th Ministerial Conference, including the so -called new 
issues. Specific textual proposals put forward by Bra zil in such areas as investment and SPS drew 
much attention from Members.  
3.35.   In terms of regional trade policy, Brazil participates in one of the biggest integr ation projects 
in Latin America -MERCOSUR, which marked its 25th anniversary last year. MERCOSUR is often 
labelled an "imperfect customs union " where goods flows are subject to exceptions, restrictions 
and quotas. Nonetheless, we cannot but recognize that Brazil undertook important extra 
commitments on services within MERCOSUR far beyond its schedule to the GATS. They comprise 
new sectors, such as computer, R&D, telecommunication, audiovisual, educational, environmental, 
and maritime transport services. Many Members have enquiries whether MERCOSUR plans to 
harmonize its participants ' customs regulations a nd practices.  
Conclusions  
3.36.   I wish to conclude by stressing that Brazil demonstrates a proven record and will to 
implement needed reforms to meet its policy objectives. Brazilians have a good saying "Aquas 
mansas nao fazem bons marinheiros ". In English it me ans "Good sailors are not born by quiet 
seas". It is hard to disagree with its wisdom, including in t he context of today 's review. I hope that 
over the next two days the review will provide an ample opp ortunity for update of the WTO 
Membership on developme nts in Brazil 's trade and economy be followed by extensive exchange on 
this topic.  WT/TPR/M/358 • Brazil  
 
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  4  STATEMENTS BY MEMBER S 
CANADA  
4.1.  Over the years, Canada and Brazil have built a strong and dynamic partnership based on 
shared values and interests, including a commitment to t he rule of law, a mutual recognition of the 
importance of open and fair trade to economic growth and prosperity, and support for a 
progressive approach to trade. This understanding underpins our important and mutually beneficial 
bilateral relationship, inc luding here at the WTO.  
4.2.  Brazil has faced particularly challenging economic and social conditions since its last Review, 
with a sharp contraction in GDP over the past three years that has seen investment and 
consumption fall to 2010 levels and unemployment  reach over 14 million. Against this backdrop, 
Brazil is to be commended for having identified structural reforms and fiscal consolidation as a 
means to support growth and job creation. We encourage Brazil in its ongoing efforts to implement 
this reform ag enda, including by reducing public debt and unlocking private sector investment and 
productivity.  
4.3.  In particular, Canada welcomes Brazil 's decision to pursue greater trade openness through 
preferential agreements that buttress and complement the multilatera l framework. Indeed, Brazil 
remains the most closed to trade among the world 's largest economies. However, policy initiatives 
aimed at facilitating trade and Brazil 's proven commitment to the G20 standstill provision are 
certain to play a strong role in re kindling growth. Brazil has seen a significant rebound in exports 
since mid -2016, which contributed to the narrowing of its current account deficit from -3.3% of  
GDP in 2015 to -1.3% in 2016. These factors also contributed to robust foreign direct investme nt 
inflows, high level of foreign exchange reserves and low external debt.  
4.4.  While Brazil has made some important improvements towards opening sectors of its economy 
to greater competition and boosting international trade since its last Review in 2013, a num ber of 
protectionist policies that we raised during that Review unfortunately remain on the statute book. 
Furthermore, Canadian businesses continue to raise concerns with regard to the level of 
complexity in Brazil 's business environment.  
4.5.  Allow me to high light three broad areas of concern.  
4.6.  Brazil is part of the MERCOSUR customs union, but the Secretariat report notes that there is 
a wide range of temporary and individual derogations from the bloc 's common external tariff, 
which creates uncertainty and com plexity and therefore increases costs for traders. Indeed, 
Brazil 's exceptions from the common external tariff run into the several thousand  when also taking 
the "ex-tariff" system into account. Furthermore, MERCOSUR commitments to phase out national 
derog ations and unify taxation and customs procedures are consistently postponed, raising doubts 
as to whether progress is being made towards establishing an effective, consolidated common 
external tariff.  
4.7.  During Brazil 's 2013 Review, we voiced concern over sev eral trade restric tive measures 
contained in the "Plano Brasil Maior " industrial policy. While Brazil has made efforts to ease 
restrictions in a number of sectors, such as oil and gas for instance, there are still questionable 
measures in place, such as lo cal content requirements in government procurement, and fiscal 
incentives that distort competition. Indeed, with regard to the latter, the Secretariat report notes 
that not only did federal incentives and support programmes more than double between 2013 an d 
2016, but that Brazilian industry has become increasingly dependent on government support at 
the expense of improving international competitiveness. Despite this substantial increase in 
incentives and support programmes at the federal level, I would like  to note that Brazil 's April 
2017 subsidy notification to the WTO Committee on Subsidies and Countervailing Measures 
mentions only 10 federal programmes, which is one less than the number in Brazil 's 2014 subsidy 
notification.  
4.8.  Finally, I would like to draw  attention to the overall eas e of doing business in Brazil. The 
Brazilian G overnment has recently signalled  renewed commitment to microeconomic reforms 
aimed at improving Brazil 's business environment. This is a very welcome development, as the 
World Bank Group 's "Doing Business 2016 " report ranks Brazil in 116th place out of 189 countries WT/TPR/M/358 • Brazil  
 
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  - only three spots higher than where Brazil ranked a decade ago. C anada encourages the Brazilian 
Government to improve business conditions through administrative, legal a nd regulatory reforms, 
particularly in the areas that have been identified as challenging to doing business. Finally, it 
should be noted that Brazil 's institutional framework is confronting significant problems related to 
corruption in both the public and private sectors and is making some progress in enforcing legal 
provisions. While the scale of this effort has temporarily disrupted markets, I believe the net result 
will be highly positive for Brazil 's business environment in the medium - to long -term. I w ould like 
to underscore the importance of removing sector -specific protection for market players, as such 
policies which compromise competitiveness and have a tendency to lead to corrupt practices.  
4.9.  Allow me to conclude by underscoring the excellent relatio nship between Canada and Brazil. 
At the multilateral level, our two countries are committed to the rules -based international trading 
system. We are also committed to ensuring a successful outcome at MC11 later this year. From a 
bilateral perspective, our t wo countries have long been important political and economic partners, 
with significant two -way trade in goods and services, investment, and flows of technology, 
knowledge, and people. In April of this year Canada and Brazil held the sixth Joint and Econom ic 
Trade Council to discuss ways to expand our commercial relationship - we look forward to 
continuing this momentum in the months and years ahead.  
MEXICO 
4.10.   As fellow Latin American countries, Mexico and Brazil share common features and have a 
strong trading  partnership. Both of us belong to the Latin American Integration Association (LAIA), 
a framework in which we work to deepen our bilateral economic relations by renegotiating our 
Economic Complementarity Agreement (ACE No.  53). On 26  May 2015, Mexico and B razil signed a 
Cooperation and Investment Facilitation Agreement (CFIA), based on UNCTAD and OECD 
guidelines. We hope that it will soon enter into force, for the benefit of investors in both countries.  
4.11.   Brazil is one of the world's largest economies, with t he fourth most extensive agricultural 
area. It is also the third largest exporter of agricultural products, third largest domestic aviation 
market and fourth largest mobile telephony market. In light of the above, as well as a multitude of 
other factors, B razil is a key country for the multilateral trading system.  
4.12.   Despite these highly commendable achievements, the Brazilian economy has experienced 
low GDP growth, even showing negative rates of -3.8% and -3.6% over the past couple of years. 
Unemployment and inflation have been on the rise, the former increasing from 7% to 11.3% and 
the latter from 5.4% to 8.7% over the period 2012 -2016.  
4.13.   Brazil remains an inward -oriented economy, trade in goods and services accounting for no 
more than 25% of GDP over that same  period. This is largely attributable to the fact that imports 
declined by close to 40% and exports by 24% between 2012 and 2016.  
4.14.   Brazil has become a major pole of attraction for foreign investment, capturing almost 40% 
of foreign investment to Latin Ameri ca during the review period, although inflows shrank 
considerably from US$76  billion in 2012 to US$58.7  billion in 2016.  
4.15.   We trust that Brazil will step up its efforts to bring its economy back on track so that it can 
further harness its enormous potential.  
4.16.   As regards tariffs, the Secretariat report highlights the fact that applied rates on 134 tariff 
lines exceed the bound levels.  
4.17.   Another point worthy of mention is the vast number of products subject to non -automatic 
licensing, which concerns more than 5,00 0 tariff lines, and the report states that some licences 
require approval by more than one authority.  
4.18.   My delegation commends Brazil for its efforts to upgrade its single window and authorized 
economic operators programme, as well as for upping its ranking over the past four years on the 
World Bank's ease of doing business index from 116 to 37 for enforcing contracts, and from 82 to 
32 for protecting minority investors. Despite this performance, we note with concern that Brazil 
has fallen from 123rd to 149th place for trading  across borders . WT/TPR/M/358 • Brazil  
 
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  4.19.   As to the paying taxes indicator, Brazil's ranking went from 156th to 181st out of the 
190 countries surveyed. This is of special concern to some Mexican traders that have to deal with 
a highly complex tax system.  
4.20.   In 2015 , Brazil introduced a tax on industrialized products, applying a 25% ad valorem  rate 
on Cachaça and a 30% rate on other spirits. This tax differential diminishes trade opportunities for 
tequila in the Brazilian market. It is also important to point out tha t there is no value added tax in 
Brazil but instead five excise taxes, including the Tax on the Circulation of Goods and Services 
(ICMS), which to all appearances apply different rates to domestic and imported products and are 
determined by each state. We appreciate the information Brazil has provided in its responses to 
our questions, which are being reviewed in our capital, and thank it in anticipation for replying to 
our follow -up questions on tax matters. This will enable us to gain a better understandi ng of 
Brazil's tax regime.  
4.21.   Before concluding, I would like to emphasize that Brazil has achieved top -ten worldwide 
ranking for retail e -commerce, to which the reform of its legal framework on e -procurement in 
2014 significantly contributed. It is among tho se Members that make a positive contribution to the 
discussions on e -commerce in this Organization.  
4.22.   I shall conclude by wishing the Brazilian delegation every success in this review of its 
country's trade policies.  
HONG  KONG,  CHINA  
4.23.   Among Hong Kong 's tradin g partners in Latin America, Brazil comes first in services trade 
and sec ond in goods trade. Our bilateral merchandis e trade was worth more than US$ 3.5 billion in 
2016, while services trade amounted to US$340 million the year before.  It is therefore with g reat 
interest that we take part in this review.  
4.24.   Studying the Governmen t and Secretariat r eports, we are impressed that, despite the many 
domestic and global challenges during the review period, Brazil has continued to pursue a robust 
trade agenda to streng then regional and international cooperation. We appreciate in particular the 
priority it has given to the multilateral trading system; the contributions it has made to countering 
anti-trade and protectionist sentiments; the openness with which it has discu ssed both Doha and 
other issues in the WTO, as well as the concrete measures that it has taken to facilitate trade.  
4.25.   Last year, within months of ratifying the Trade Facilitation Agreement, Brazil established its 
National Committee to oversee the im plementat ion of that Agreement.  In fact, efforts to simplify 
and moderniz e customs procedures started much earlier, notably with the launch of the Single  
Window project and the authoriz ed economic ope rator programme, both in 2014. Online 
submission of documents is now widely used in licensing a nd customs release procedures. We look 
forward to a fully digitalised regime for export declaration by the end of this year.  
4.26.   We are also encouraged to see Brazil 's regulatory agencies striving to implement Good 
Regulatory Prac tices that are e vidence -based and transparent. According to the authorities, most 
technical regulations enacted in Brazil are based on international standards or MERCOSUR regional 
standards. However, we note with concern that only 6% of Brazil 's regular TB T notifications 
between January 2013 and April 2017 provided a comment period of 60 days or more.   
4.27.   The situation is  similar for SPS notifications.  Moreover, in the case of SPS, few measures 
offered a six -month period between publication and entry into for ce, and only around one fifth of 
the notified measures were base d on international standards. There appears  to be room for 
improvement.  
4.28.   Regarding anti -dumping actions, although the number of measures imposed each year has 
declined recently, that did not he lp reduce the total number of measures in force, which saw a 
hefty i ncrease of 85% in four years. In view of the trade stifling effect of such measures, we urge 
Brazil to exercise restraint in the initiation of investigations.  
4.29.   Brazil 's tariff regime has no t seen a lot of cha nges during the review period. There remains 
a gap of 18.5 percentage points between the average applied and bound rates. Apart from WT/TPR/M/358 • Brazil  
 
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  customs tariffs, certain imports into Brazil are subject to a very complicated system of internal 
taxes and charges; and transactions are subject to various fed eral and sub -federal levies.  We 
encourage Brazil to enhance the predictability of its tariff regime by lowering its bound rates, and 
to simplify its taxes and charges on imported goods.  
4.30.   Tariff protect ion for agricultural products is not particularly high in Brazil, nor is the level of 
domestic support - compared to other OECD members. That said, some of the support measures, 
such as market price support, concessional credit, and crop insurance subsi dies, can be trade 
distorting. We believe that, as the world 's third -largest exporter of agricultural products, Brazil can 
lead by example in reviewing its domestic support measures.  
4.31.   The services sector contributes to about three -quarters of Brazil 's gross va lue added and  
two-thirds of its employment. It stands to benefit from growth stimulated by further liberalisation. 
We commend the Brazilian Government 's efforts to relax the reinsurance requirements for foreign 
companies, and to allow foreign doctors to wo rk in B razil under certain conditions.  In Brazil, we 
have seen how strong competition in the telecommunications market has led to better quality and 
lower prices. We encourage the country to continue with its progressive liberalisation of trade in 
services ; and more specifically to reduce local content requirements, foreign investment limitations 
and national requirements in the various services sectors.   
4.32.   We are pleased to see Brazil steadily recovering from the unprecedented economic recession 
of 2015 -16. We believe such resilience is, to a large extent, the result of Brazil 's structural 
reforms, as well as its ope nness to trade and investment. At present, aggregate two -way trade in 
goods and services stands at about 25% of Brazil 's GDP, suggesting  a lot o f untapped potentials. 
We hope in the coming years, B razil will continue to liberaliz e its trade regime, and sustain its 
gains and growth as a more outward oriented economy.  
4.33.   Finally, I would like to thank the delegation for the replies to our written quest ions. I wish 
Brazil a very fruitful T rade Policy Review.  
SWITZERLAND  
4.34.   Brazil has been facing a difficult economic situation for some years now, as extensively 
described in the Secretariat report.  
4.35.   These difficulties notwithstanding, the Brazilian Government has taken the bold decision to 
introduce a fiscal consolidation policy. Switzerland, which has been implementing a debt brake 
policy since 2003, cannot but commend such a decision. Underpinned by a restrictive monetary 
policy, this will require major effor ts on the part of the Government and the population. No doubt 
that this process will bear fruit over the long term and provide the necessary stability for the 
Brazilian economy to harness its full potential.  
4.36.   Trade flows were particularly hard hit by the re cession. As highlighted in the Secretariat 
report, the decline in imports and exports is largely due to falling commodity prices and hence 
deteriorating terms of trade. The pressing need to address cyclical factors should not obscure the 
fact that structur al and institutional measures can also contribute to revitalizing the economy.  
4.37.   Today, Brazil remains an inward -oriented economy, marked by low competitiveness. The 
Government's policy to enhance the competitiveness of domestic production and stimulate trad e is 
therefore particularly welcome. An open market, a stable macroeconomic framework and sound 
structural policies are the most effective ways of raising competitiveness. Switzerland also 
encourages Brazil to reduce the level of government intervention in  the key sectors of the 
economy.  
4.38.   We have also noted that tax revenue remains heavily dependent on customs duties. A large 
number of sectors still benefit from high tariff protection. We understand that the Government 
faces delicate tax arbitrage issues. It  would nonetheless be advisable for government income to 
become less heavily reliant on customs revenue. This would give Brazil more room for manoeuvre 
in conducting an open trade policy, which is indispensable for the integration of its enterprises in 
global value chains.  WT/TPR/M/358 • Brazil  
 
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  4.39.   That being said, we are pleased to note that Brazil is seeking to advance along this path, 
particularly by expanding and deepening its network of free trade agreements. In this connection, 
we would point out that, jointly with its MERCOSU R partners, Brazil has entered into negotiations 
with a view to a free trade agreement with EFTA, to which Switzerland belongs. We look forward to 
the forthcoming negotiations and hope that this process can be completed as soon as possible.  
4.40.   Trade relations  between Brazil and Switzerland are intense. Brazil is our top Latin American 
trading partner. Switzerland essentially exports pharmaceuticals and chemicals, machinery and 
electronic products to Brazil, which in turn exports mainly metals and coffee to Swi tzerland. Brazil 
is host to a large number of Swiss companies, which employ around 69,000 people, with 
investment representing close to US$10  billion. It therefore comes as no surprise that Switzerland 
regards Brazil as a strategic economic partner.  
4.41.   Switze rland welcomes Brazil's active role in the WTO negotiations. While our interests differ 
at times, Switzerland is pleased to be able to count on Brazil's support for the multilateral system. 
We appreciate the fruitful cooperation established with the Brazil ian delegation, under the 
leadership of Ambassador Didonet.  
4.42.   I shall conclude with a special reference to Brazil's energy production strategy. Switzerland 
was impressed to note that the Brazilian energy sector is among the greenest in the world. Not 
only do es Brazil invest heavily in renewables, but it has also largely eliminated its fossil energy 
subsidies. These are major steps towards better sustainability of our production patterns. Such 
efforts need to be pursued and Switzerland firmly encourages Brazil  to persevere in its endeavours 
to fully remove these subsidies.  
4.43.   Switzerland has submitted a number of questions, some of which concern the functioning of 
MERCOSUR and the part played by Brazil in this customs union.  
4.44.   Switzerland thanks Brazil for its detai led replies to all our written questions. We wish the 
Brazilian delegation all the best for the remainder of this review.  
EUROPEAN  UNION  
4.45.   Let me start highlighting that Brazil is an important strategic and economic partner of the 
European Union.  
4.46.   Brazil is the largest economy of Latin America and its trade  with the EU accounts for 
€60.3  billion corresponding to one third (30.8%) of the EU 's total trade with the region. The EU is 
Brazil 's first trading partner, accounting for 19.6% of its total trade. As rega rds investments, the 
EU is the biggest foreign investor in Brazil. About 50% of foreign direct investment, flowing into 
many sectors of the Brazilian economy, comes from the EU. These figures show the strength and 
depth of our bilateral trade and investmen t relationship.  
4.47.   With reference to Brazil 's economic policy, the EU acknowledges the efforts Brazil has made 
to cope with one of the most severe recession in its history, implementing necessary structural 
reforms and fiscal consolidation. We encourage Brazi l to keep up its efforts, while pursuing the 
goal of social cohesion and further opening up of the economy.  
4.48.   Focusing on Brazil 's trade policy, we would like express our support for the improvements 
recorded in the period under review. For example:  
 The EU acknowledges Brazil having adopted recent measures in the field of intellectual 
property rights which could help alleviate the patent and trademark application backlog and 
simplify procedures for IPR contracts. We look forward to the implementation of thes e 
measures and for Brazil to take further steps in the area of IPR rules and enforcement.  
 The EU also appreciates the measures taken to reduce the State intervention in the energy 
sector.  
4.49.   The EU welcomes Brazil 's strong support for the multilateral trading  system and its interest 
in regional and bilateral negotiations.  WT/TPR/M/358 • Brazil  
 
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  4.50.   At a multilateral level, I wish to convey the EU 's appreciation for the constructive approach 
of Brazil in the WTO negotiations. We are happy to co -sponsor together with Brazil and other WTO  
Members a proposal on domestic support in agriculture, which will be circulated to the WTO 
Members today. The EU trusts Brazil will continue to be fully engaged in the multilateral trading 
system and to display leadership in the negotiations of substantia l outcomes in the WTO and is 
particularly committed to continue working together with Brazil in the pursuit of a successful 11th 
WTO Ministerial Conference.  
4.51.   At a bi -regional level, the EU is fully committed to advancing the EU -MERCOSUR 
negotiations as a ke y priority. The EU welcomes the constructive and significant progress made 
during the last rounds of negotiations. Both sides are pursuing an ambitious, comprehensive and 
balanced agreement hopefully by the end of the year that will bring important economi c benefits to 
both sides as well as sending a strong signal in favour of rules  and value -based trade liberaliz ation.  
4.52.   Despite the positive overall trading relationship we also have a series of concerns. Turning 
now to these, I would like to highlight some of them which are of particular interest to EU 
companies:  
4.53.   First of all, more efforts are needed as regards effective and unified application of the import 
and customs procedures. EU operators are concerned with the highly burdensome and costly 
import proc edures that often require a disproportionally high quantity of documents.  
4.54.   Regarding sanitary and phytosanitary matters, the EU would like to highlight the fact that 
Brazil is requiring but not performing audits to exporting countries. This remains the EU 's biggest 
concern in this problematic area.  
4.55.   In our written questions, we have also asked Brazil to explain the rationale of its non -
automatic import licensing system, which covers at least 5,460 tariff lines, that is more than half 
of Brazil 's entire tari ff list. We would like to hear about the possible reform of the system and 
whether Brazil intends to further develop the Single Window Programme as a means to reduce the 
number of non -automatic licenses.  
4.56.   Tax discrimination is another area of concern for th e EU. We would appreciate if Brazil could 
elaborate more on details of this tax reform plan, including its timeframe. In particular, we would 
be interested to know how the government will act to eliminate tax distortions between imports 
and domestic produc ts. 
4.57.   Then, the EU would encourage Brazil to further open up its markets to foreign enterprises in 
particular in the area of financial and insurance s ervices, and legal professions,  as well as the need 
to improve the system of mutual recognition of professio nal qualifications and diplomas.   
4.58.   Lastly, the EU is eagerly awaiting the outcome of Brazil 's deliberations on whether to accede 
to the Government Procurement Agreement – a move which we would highly welcome and 
support.  
4.59.   On behalf of the EU, I look forward  to a constructive exchange of views during this review 
and I wish Brazil 's delegation the utmost success during its Trade Policy Review.   
PERU  
4.60.   Brazil is Peru's main Latin American trading partner. In 2016, our trade exceeded 
US$3.3  billion, with Brazil a s our leading export destination in Latin America and our fourth largest 
trading partner worldwide. Bilateral trade relations are currently conducted in the framework of the 
Economic Complementarity Agreement between Peru and MERCOSUR (ACE No.  58), under w hich 
more than 95% of Peruvian products have been allowed duty -free entry into Brazil since 
1 January  2012. It should also be mentioned that in April  2016, Peru and Brazil signed an 
Economic and Trade Expansion Agreement, which contains chapters on, inter alia, services and 
government procurement. Our Governments are continuing to work in parallel to incorporate the 
provisions of this Agreement into our respective domestic legislation so that it comes into effect for 
both countries at the same time.  WT/TPR/M/358 • Brazil  
 
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  4.61.   Peru we lcomes the forecasts for the recovery of Brazilian economic growth, not only 
because this bodes well for the Brazilian people, but also because the state of the Brazilian 
economy has a direct impact on our trade and hence on our own growth prospects, as ha s been 
demonstrated in recent years. We also welcome the Brazilian Government's efforts to encourage 
economic inclusion of the population, improve the financial situation and make budget expenditure 
more predictable, all of which we are sure will contribut e to a return to high rates of economic 
growth.  
4.62.   At the local level, we highlight the important role played by Brazil in the WTO and in 
particular by its Permanent Mission in Geneva, which always takes a practical and in -depth 
approach to the issues address ed in this Organization; we therefore welcome our close 
coordination on a number of ongoing initiatives within the WTO.  
4.63.   Peru submitted only one question to Brazil for the purposes of this review, specifically 
concerning the issue of government procurement,  on which we signed a bilateral agreement last 
year, as I have mentioned already. I thank Brazil in anticipation for its reply to this question, 
which will be carefully examined by our authorities, and wish Brazil a successful seventh trade 
policy review.  
UNITED  STATES  
4.64.   The United States has always viewed Brazil as an importa nt and valued trading partner. As 
the two largest economies and democracies in the Western Hemisphere, the United States and 
Brazil share important ties with respect to trade, capital fl ows, cross -border investment, and a 
wide range of educational, health, scienti fic and other joint activities.  The United States and Brazil 
have established important mechanisms for discussing bilateral trade and investment issues, 
including the Commission on Economic and Trade Relations, the Commercial Dialogue and the 
Consultative Committee on Agriculture, to name a few.  
4.65.   We have hear d this morning from the Chair, the d iscussant, and Brazil 's Head of Delegation 
regarding the economic challenges confronted by Brazil since its last TPR. The Brazilian economy 
enjoyed a prolonged period of robust growth from 2000 to 2013, coinciding wit h a commodity and 
export boom. Since the time of its last Trade Policy Review in 2013, however, Brazil has faced a 
series of eco nomic and political challenges. The world 's seventh largest economy in 2013, Brazil 
dropped to the  ninth largest economy in 2016.  In addition, 2015 and 2016 marked Brazil 's first 
consecutive years of contraction since the 1930s and the deepest recession si nce record -keeping 
began in 1901.  From the end of 2014 through 2016, real output contracted by over 7 %, roughly 
3 million formal sector jobs were lost, and the unemployment rate nearly doubled to over 11 %. 
Political instability in Brazil has exac erbated th e economic landscape.  
4.66.   These challenges are naturally reflected in ou r bilateral trade relationship.  Brazil was the 
United States ' ninth largest trading partner in 2013, but fell to our 14th largest trading partner in 
2016. Nevertheless, Brazil continues to  be an import ant market for U.S. companies. Two-way U.S. 
goods and services trade with Brazil totalled  US$87.3 billion in 2016, and overall U.S. goods 
imports from Brazil are up 300 % over the last 22 years (since the conc lusion of the Uruguay 
Round). Services trade and two -way investment are also robust as reflected in the statement 
submitted fo r the record of this meeting. In 2016, U.S. exports of services to Brazil were 
US$24.3  billion, while Brazil 's supply of services to the United States was US$6.8 bil lion, both up 
32% from 2010 levels. U.S. companies have directly invested US$65.3 billion in Brazil, through 
2015, down 2.5 % from 2010 levels, while Brazilian companies and their subsidiaries have invested 
US$23.7 billion in the U.S. through 2015, up 74 % from 2010 levels.  
4.67.   Brazil resumed growth in the first quarter of 2017 (one percent, seasonally adjusted), and 
current projections for full year 2017 GDP growth are in the 0.42 % range. As Brazil emerges from 
a difficult economic period, we believe the country  would benefit from more liberalized trade and 
investment policies, including by lowering tariffs and eliminating pervasi ve local content 
requirements. Brazil represents a sort of paradox, as despite its status as the world 's ninth largest 
economy, Brazil accounted for only one percent of global goods trade in 2016. The structural 
bottlenecks - which include a very high tax burden, a complex and inefficient regulatory regime, 
inadequate primary infrastructure, limited access to credit, and a rigid labour  market - threaten WT/TPR/M/358 • Brazil  
 
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  Brazil 's competitivene ss and future growth prospects.  Reflecting these challenges, the World Bank 
ranked Brazil 123rd out of 190 countries  for ease of doing business in 2017.   
4.68.   In our view, there are some specific areas where Brazil could t ake action to improve its 
trade and investment regime for the purpose of creating additional growth  and development 
opportunities.  In addition to the issues addressed in our questions, today I would like to briefly call 
attention to Brazil 's high tariff st ructure, its continued reliance on local content requirements 
(notwithstanding some recent progress in the hydrocarbons sector), and shortcomings in some 
areas of IPR protection and enforcement.  
4.69.   While Brazil 's MFN applied tariff rate averaged 13.5 % in 201 5 (latest available data), its 
average bound tariff rate is significantly higher at 31.4 %, with the maximum bound rates for 
industrial and agricultural goods set at 35 % and 55 %, respectively.  Because of the large 
disparities between bound and applied rates , U.S. exporters face significant uncert ainty in the 
Brazilian market. Unfortunately, frequent tariff increases and reductions are made  by the Brazilian 
Government to support domestic industries.  These frequent and temporary changes in tariffs 
create an un predictable business environment for importers and exporters, and have a chilling 
effect on investment.  
4.70.   We would like to acknowledge Brazil 's leadership in early ratification of the WTO Trade 
Facilitation Agreement in March 2016 and the progress Brazil has  made thus far in implementing 
specific aspects of the Agreement.  In this regard, Brazil serves as a positive example for other 
count ries in the region. Brazil 's implementation of the TFA should lead to increased trade and 
economic growth by reducing the b ureaucratic red tape and cost of doing business, as well as 
fostering greater certa inty for the trading community.  We are eager to learn more about specific 
steps Brazil is taking to implement the TFA.  
4.71.   We would also like to acknowledge the important and co ntinued progress that Brazil has 
made to enforce intellectual property rights, including the country 's efforts to protect intellectual 
property during the 2014 World Cup and the 201 6 Olympic and Paralympic Games.  However, 
shortcomings remain and the lack o f adequate IP protection continues to be an obstacle t o U.S. 
exports and investment. For example, there are high levels of counterfeiting and piracy in Brazil, 
including online piracy, and enforcement measures remain inadequate throughout the country, but 
especially in the tri -border are a with Paraguay and Argentina. Strong IP protection, available to 
both domestic and foreign right holders, is essential to fostering a reliable business climate ripe for 
investment and innovation. The United States stands re ady to engage constructively with Brazil to 
build a strong IP environment and to address remaining IP concerns.  
4.72.   In closing, I w ould like to express my G overnment 's hope and expectation that, going 
forward, Brazil will continue to pursue further reforms and  more open markets that enable it to 
reap the benefits of expanding trade a nd global economic opportunity.  In addition, we welcome 
further cooperation on trade matters with our excellent Brazilian colleagues both here at the WTO 
and in the context of our g rowing bilateral relationship. We deeply value in particular the excellent 
dialogue betwee n our Missions here in Geneva. We look forward to studying Brazil 's answers to our 
questions  and to those of other Members.  We wish you a successful Trade Policy R eview.   
AUSTRALIA  
4.73.   Australia and Brazil have a strong history of economic engagement and close cooperation in 
multilateral for a, including the WTO. We acknowledge the reform measures Brazil has adopted 
since its last trade since its last Trade Policy Review in 2013, especially in the face of one of the 
most severe recessions in its history. We also acknowledge that in the decade through 2014, Brazil 
achieved steady economic growth coupled with poverty reduction and improvements in most social 
indicators, incl uding in health and education.  
4.74.   Australia recogniz es that during the review period, Brazil improved its WTO commitments by 
ratifying the Trade Facilitation Agreement (TFA) and depositing its instrument of acceptance of the 
Fifth Protocol on Financ ial Servic es. Australia recogniz es Brazil 's additional efforts to make trade 
and trade -related information available online. Brazil now grants preferential treatment to services 
and service suppliers from least developed countries (LDCs), in accordance with the deci sions WT/TPR/M/358 • Brazil  
 
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  adopted at the WTO 's Eighth and Ninth Ministerial Conferences, and remains an active participant 
in the multilateral trading system.  
4.75.   Brazil continues to work on strengthening regional economic integration through RTAs 
negotiated within the framework of the Southern Common Market, or, "Mercosur ". During the 
review period, Brazil, as part of Mercosur, entered into three trade agreements (Venezuela, 
Guyana/Saint Kitts and Nevis, and Southern African Customs Union), with another four concluded 
with their entry into force pending (Egypt, Colombia, Palestine, and Peru).  
4.76.   Australia was please to participate in Closer Economic Relations (CER)  - Mercosur talks with 
Brazil in Buenos Aires in May 2017. As Brazil will serve as chair of Mercosur for the second half of 
2017, Australia looks forward to continued dialogue to promote inter -regional trade and 
investment, as well as identifying how to build stronger ties between our respective economies 
through a scoping study.  
4.77.   As founding members of the Cairns Group, Aust ralia and Brazil share an ongoing 
commitment to achieving meaningful agricultural trade l iberalization. The signing of a  MoU 
between Australia 's Commonwealth Science and Industrial Research Organization (CSIRO) and the 
Brazilian Agricultural Research Corpo ration (EMBRAPA) is an example of the progress being made 
in our bilateral relationship in this area.  
4.78.   Brazil is also Australia 's largest trading partner in South America, with two -way trade 
between Australia and Brazil totalling $2.8billion in 2016. Our ma jor sectors of economic 
engagement include mining, agribusiness and services, particularly the education sector.  
4.79.   Australia welcomes the measures undertaken by Brazil to open its market to support global 
economic growth, and encourages it to continue to mov e away from protectionist measures and to 
increase competition. Australia encourages measures to ease the regulatory burden for business, 
particularly reforms at the border to facilitate trade and reduce red tape.  
4.80.   We also encourage reform of Brazil 's taxat ion system. By decreasing complexity in the 
treatment of imported goods and services, and with regard to customs duties and other taxes on 
foreign trade transactions, Brazil can stimulate additional foreign investment. Reform of domestic 
and cross -border t ransactions, which are subject to various federal and sub -federal levies, to 
reduce the instance of cross -cumulation for tax base purposes would also ease the cost of doing 
business in Brazil and attract investment.  
4.81.   Australia looks forward to continuing to  work closely with Brazil, particularly in the lead up 
to MC11. And are confident Brazil will continue to show the leadership and strong engagement that 
it has during this review period.  
CHILE  
4.82.   We congratulate Brazil for its show of transparency in subjecti ng itself to the scrutiny of its 
peers – a decision that will undoubtedly help to strengthen the system.  
4.83.   We submitted 29 questions for this review. We thank Brazil for its replies, which will be 
examined by our teams in Santiago.  
4.84.   Our diplomatic relations w ith Brazil almost date back to the origins of the Republic of Chile. 
Since our two countries signed a Treaty of Friendship, Trade and Navigation in 1838, we have 
been forging an ever -closer relationship, historically sharing views and common interests in 
Latin America and the world at large. Our bilateral ties have been intense and marked by 
convergence in policy matters, high levels of trade and increasing two -way investment flows.  
4.85.   As regards policy coordination, our good rapport and the adoption of common , moderate 
stances have been instrumental in fostering our broader regional integration process. The 
relationship between Chile and Brazil has gradually gained a qualitative dimension which should be 
underscored and to which Chile attaches particular impor tance as a basis for rapprochement and 
convergence between the Pacific Alliance, to which Chile belongs, together with Colombia, Mexico 
and Peru, and MERCOSUR.  WT/TPR/M/358 • Brazil  
 
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  4.86.   Chile and Brazil have a common Latin American identity, sharing fundamental values for the 
benef it of their peoples, such as unwavering commitment to human rights and a firm resolve to 
combat poverty, exclusion and social inequality. We have also been developing convergent 
positions in order to strengthen policy coordination and regional integration,  with a fresh vision in 
tune with modern times and the common challenges facing our region in this age of globalization. 
Latin American integration that boosts our competitiveness and expands our markets, both 
domestically and internationally, is a goal th at we share and intend to push forward.  
4.87.   Telling examples in this respect are energy cooperation and rail integration, aimed at 
implementing projects to provide physical interconnection between the Atlantic and Pacific Oceans 
through bioceanic corridors tha t will not only link up the region's two coasts but will also speed up 
the shipment of goods from the central areas and increase interaction between people, thus 
boosting business and tourism. Business relations are also a significant and growing component  of 
cooperation between the two countries.  
4.88.   Our cooperation encompasses important areas such as education and culture, as well as 
science and technology, covered by the Basic Agreement on Scientific, Technical and Technological 
Cooperation signed by both co untries in 1990. This Agreement has led to major advances in fields 
such as non -conventional renewable energy (NCRE) sources, agriculture, Antarctic research, and 
defence. There is also enormous potential for cooperation in mining, biotechnology and astron omy. 
4.89.   In the economic and trade spheres, the wide -ranging and deep relationship between Chile 
and Brazil is governed by Chile -MERCOSUR Economic Complementarity Agreement (ACE) No.  35 of 
1996. Today, all products are traded free of duty between the two count ries. 
4.90.   In quantitative terms, bilateral trade reached US$7.7  billion in 2016, with a marked surplus 
in favour of Brazil. Although bilateral trade has declined since 2014, Brazil remains Chile's main 
trading partner in the region and Chile's third largest wo rldwide.  
4.91.   As regards investment, Brazil is the leading destination of Chile's foreign investment, which 
reached US$31.7  billion between 1990 and 2016, with more than 150 enterprises currently 
involved in 290 projects, primarily in the services sector, follo wed by energy and industry.  
4.92.   Brazil's investment in Chile amounted to US$3,025  million in 2015, with ample scope for 
further growth.  
4.93.   Regarding our joint work in the WTO, we should mention investment facilitation and MSMEs, 
as well as our common endeavours t o achieve substantive outcomes in areas such as domestic 
support in agriculture and fisheries subsidies at the forthcoming Buenos Aires Ministerial 
Conference.  
4.94.   We also fully agree on the need to strengthen the system, and highlight the role of the WTO 
as a negotiating pillar and in its regular work, especially as regards the core components that 
provide certainty to Members in implementing the agreements under which they operate.  
4.95.   Notwithstanding the many positive aspects of the relationship between Chile an d Brazil, we 
cannot but express concern over some of the findings that have emerged from this latest review.  
4.96.   We note from the review period that the overall thrust of Brazilian trade policy has not yet 
led to any major advances in terms of trade liberaliza tion. The International Chamber of 
Commerce, which recently released its Open Market Index 2017, ranks Brazil as the G -20's most 
closed economy, and Brazil occupies 69th place among the world's 75 largest economies. Brazil's 
rankings in the World Bank's Doing Business 2016 report point to problems that need to be 
addressed, such as ease of starting a business. The data give cause for concern, the more so since 
Brazil is the top destination of Chilean foreign investment, one of our key trading partners, and a 
very important actor in the global economy and international trade.  
4.97.   We underscore these specific aspects because some Chilean companies are still affected 
(directly or indirectly) by certain measures, some of which were mentioned by the discussant and 
highlighted in our statement during Brazil's preceding review.  WT/TPR/M/358 • Brazil  
 
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  4.98.   These measures include non -automatic import licensing, restrictions relating to tariff 
classification, discriminatory treatment in respect of government procurement, distorting tax 
incentives, ov erly complex regulatory and tax systems and a markedly increased use of 
anti-dumping measures.  
4.99.   While we are aware of the difficulties of today's economic environment, we are convinced 
that it would be very useful not only for the country but also for the r egion as a whole if Brazil 
could push ahead with a sustained process of trade and investment liberalization and facilitation, 
as well as regulatory reforms aimed at increasing trade flows.  
4.100.   This would undoubtedly contribute to strengthening Brazil's leaders hip role as one of the 
world's top economies.  
4.101.   We are sure that these challenges will be overcome as a result of the commitment stated 
by the Brazilian authorities in the G -20 and in their domestic policies.  
4.102.   To conclude, we wish Brazil every success in its seventh trade policy review.  
ARGENTINA  
4.103.   Brazil is Argentina's largest political and trading partner. The Argentine Government has 
confirmed that bilateral relations under the MERCOSUR project remain the linchpin of our 
international economic integration.  
4.104.   The MERCOSUR Presidents have agreed on the need to remove barriers to bilateral trade in 
order to strengthen relations and consolidate a common stance in external negotiations. In this 
connection, during President Mauricio Macri's visit to Brasilia this past  February, our Heads of State 
signed a Plan of Action, monitored by the two foreign ministries, that identifies a series of 
high-priority areas. The Bilateral Production and Trade Commission was revived on that occasion.  
4.105.   Argentina wishes to underscore the successes achieved at the bilateral level, such as 
investment cooperation and facilitation, amendments to the bilateral agreement on the avoidance 
of double taxation, trade facilitation through the mutual recognition of electronic certificates of 
origin (C OD), efforts to ensure the interoperability of the single windows for foreign trade (VUCE), 
and facilitation of MSME integration into international markets. Intensive joint work is under way 
at the multilateral level to address trade, agricultural, sanitar y and phytosanitary and intellectual 
property issues, among others.  
4.106.   We welcome joint international integration that strengthens our negotiating position. 
MERCOSUR's external relations agenda is extremely dynamic in this respect. Negotiations are 
under way with the European Union, the Pacific Alliance countries and EFTA, Canada, Korea, India 
and South Africa. Argentina and Brazil are working together to identify negotiating opportunities 
for access to new markets, particularly in Africa and Asia, which is ho me to the economies with the 
highest growth rates.  
4.107.   The Argentine Republic is most interested to note the process of economic recovery in 
Brazil. After a deep recession in 2015 -2016, GDP is expected to rise again this year and growth to 
pick up speed in 201 8. We wish to emphasize the Brazilian Government's plans to undertake 
structural and fiscal reforms to underpin this process.  
4.108.   As regards foreign direct investment (FDI), Brazil remains one of the world's main 
recipients of FDI. One point worthy of mention is that FDI access to certain healthcare services has 
improved; another is the use of a new model agreement on investment based on the UNCTAD and 
OECD guidelines.  
4.109.   The Argentine Republic recognizes Brazil as a staunch defender of the multilateral trading 
system. Brazil takes an active part in the WTO.  
4.110.   As regards agriculture, Argentina wishes to emphasize Brazil's firm commitment to 
improve disciplines on domestic support, particularly with a view to the forthcoming Ministerial 
Conference in Buenos Aires. It should be borne in mind that no agricultural reform will be complete WT/TPR/M/358 • Brazil  
 
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  without an expansion of market access for agricultural products; account should also be taken of 
the adverse effects of non -tariff barriers to trade.  
4.111.   Turning to trade policy formulation, we would like to highlight some positive developments, 
which include the launching by the National Confederation of Industry (CNI) of a priorities agenda 
to promote the integration of Brazilian companies into the world market. It also is interesting to 
note the involvement of the private sector in trade policy formulation through the Chamber of 
Foreign Trade's Private Sector Advisory Council (CONEX).  
4.112.   We thank Brazil for its replies to our questions relating to this trade policy review, which 
will be careful ly examined by our colleagues in Buenos Aires.  
4.113.   To conclude, while reiterating our appreciation of this renewed opportunity to exchange 
information and comments on the trade policies and practices of Brazil, we would like to draw 
attention once again to the  importance of this exercise in transparency from every point of view, 
and to wish the authorities a successful conclusion to this review.  
SINGAPORE  
4.114.   Brazil is a good friend of Singapore, and we will be celebrating our 50th anniversary of 
bilateral relation s this November. Since 2012, Brazil has been home to Singapore 's first and only 
embassy in Latin America, and remains a key tradin g partner for us in the region.  Brazil is 
Singapore 's third -largest trading partner in Latin America, with bilateral trade amo unting to 
US$1.98 billion in 2016. Despite our large geographical distance from Brazil, the number of 
Brazilian visitors to Singapore has more than doubled from over 9,000 in 2010 to over 19,000 in 
2016.  
4.115.   Singapore companies find Brazil to be an attractive market in Latin America. Today, more 
than 50 Singapore companies – both large and small – have a presence in Brazil, in diverse fields 
such as freight and logistics, consumer electronics, and oil and gas, and their stock of investments 
amounted to almost S $1 billion in end -2015.  Likewise, we believe Brazilian companies look to 
Singapore for similar opportunities, in particular to leverage on Singapore 's position as a logistics 
and trade hub to expand operations in markets within the Southeast Asian region. There are over 
50 Brazilian compa nies registered in Singapore.  
4.116.   In the face of economic challenges of negative GDP growth, and increased unemployment 
and inflation rates, Brazil has taken steps to curb its public spending growth, avoided influencing 
its exc hange rates, and has taken steps to promote FDI by concluding bilateral investment, 
protection and promotion agreements. Brazil has always taken its multilateral trade commitments 
seriously, and has played an importa nt leadership role in the WTO. Brazil 's implementation of the 
Trade Facilitation Agreement – such as updating its single window - and the LDC Services Waiver 
are examples of its commitment to the multilateral trading system.  
4.117.   Brazil has maintained a good notification record in some areas, includ ing on its agricultural 
export subsidies and support, SPS and TBT measures, and its annual submission of tariff and trade 
data to the WTO Integrated Data B ase. We hope Brazil will extend this commitment to fulfilling its 
obligations to all relevant areas o f the WTO, including for example notifying updates to its IP 
legislation since 2001. We note Brazil 's clarification that importers may request for the lower 
bound rates for the 134 tariff lines where the applied  rates exceed the bound rates. Nonetheless, 
we urge Brazil to rectify this by lowering applied rates to within the limits of its bound rates in 
order to give greater certainty to importers and to be in l ine with its WTO commitments. We 
encourage Brazil to relook its significant use of anti -dumping m easures, as we note that at 
end-2016, 163 anti -dumping measures were in place.  
4.118.   Finally, we would like to commend Ambassador Evandro Didonet and his capable team for 
their active participation and engagement on the full spectrum of issues that we face in th e WTO, 
as well as the ongoing plurilateral discu ssions on fisheries subsidies. We look forward to continuing 
our cooperation with the Brazilian delegation in working towards a successful MC11 in Buenos 
Aires, and delivering mean ingful outcomes for the syst em. We wish Brazil a very successful TPR.   WT/TPR/M/358 • Brazil  
 
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  NEW  ZEALAND  
4.119.   Despite the economic challenges Brazil has faced during this review period we are pleased 
to see the economy post positive growth in 2017. We welcome Brazil 's commitment to an open, 
rules-based multi lateral trading system. New Zealand appreciates Brazil 's active role in working to 
ensure the success of MC11, which is highlighted by the work that Brazil is doin g across the board 
in Geneva. Brazil is a significant economic partner for New Zealand, espec ially in terms of 
investment and trade in services, and we are enthusiastic about prospects for deepening our 
economic ties with Brazil through the MERCOSUR bloc.  
4.120.   Brazil is a key member of the Cairns group, where it works with New Zealand and fellow 
Member s to liberalise trade in agricultural exports. We congratulate Brazil on its continued low 
level of domestic support to agricultural producers, compared with OECD levels. As an agricultural 
powerhouse itself, Brazil has a responsibility to lead the way in reducing trade distortions in the 
agricultural sector. New Zealand recognises that the majority of Brazil 's farms remain small family 
operations that are still in the process of modernisation, however we encourage Brazil to ensure 
rural credit and insuranc e subsidies are directed to those small family farms that need it and not to 
commercial operations.  
4.121.   We applaud Brazil 's relative openness to foreign direct investment, and congratulate its 
maintenance of its position as the most attractive investment loca tion in Latin America and the 
Caribbean in 2015 despite i ts difficult economic climate. New Zealand welcomes Brazil 's efforts to 
share its investment facilitation experiences with other WTO Members through the informal 
dialogue on investment.  
4.122.   New Zealand c ongratulates the Government 's moves to lift restriction on foreign ownership 
of agricultural land which has had a significant impact on the plans of foreign companies, including 
from New Zealand, for investment in Brazil 's agribusiness sector. We encourage  Brazil to prioritise 
these legislative changes given the importance of foreign investment to increasing the 
competitiveness of national industries.  
4.123.   Notwithstanding the positive steps it has taken since the last review, we think there is still 
scope for B razil to do more particularly around alleviating some trade policies aimed at protecting 
certain industries from foreign competition.  
4.124.   Brazil continues to be one of the world 's largest us ers of anti -dumping procedures. 
New Zealand welcomes the st eps Brazil is taking to moderniz e its legal and operational framework 
related to anti -dumping measures and other trade remedies. We encourage Brazil to ensure that 
its anti -dumping processes continue to be applied accurately and fairly and only against imported 
produ cts that do in fact pose a serious injury or threat to Brazilian industries.  
4.125.   New Zealand takes this opportunity to recall the importance we attach to on -going 
negotiations aimed at addressing harmful fisheries subsidies. We look f orward to working closely 
with Brazil in that process as we wo rk towards an outcome at MC11. We have some concerns over 
existing support programmes and how these could contribute to overfishing or overcapacity. We 
welcome Brazil 's responses to our questions about these programmes, and will review them over 
the coming days. We commend Brazil in its efforts for reducing fossil fuel subsidies.  
4.126.   As one of the world 's largest economies Brazil has an important role in showing leadership 
on international trade and investment. We welcome Br azil's continued commitment to the 
multilateral trading system and look forward to further discussion of the issues we have raised 
during the course of this review.  
NORWAY  
4.127.   As stated in Brazil 's report, the period examined since Brazil 's last TPR in 2013 ha s indeed 
been challenging. Declining economic activity, two consecutive years of contraction of GDP, and 
painful rising unemployment has put strain on the economy, and not least the people, of Brazil. 
We welcome the expected return to growth in 2017.  WT/TPR/M/358 • Brazil  
 
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  4.128.   The c hallenges Brazil has gone through could have tempted some countries to turn to 
inward looking policies and protectionism. We are pleased that this has not happened. Brazil has 
instead signalled  clearly that a combination of domestic reforms and openness to  trade is essential 
for economic recovery, growth and prosperity. But as we have heard today, challenges still 
remain, for instance as referred to in the World Bank Group 's Ease of Doing Business report.  
4.129.   Norway appreciates Brazil 's clear signals that stren gthening and supporting the multilateral 
trading system will remain a priority, as well as Brazil 's pragmatism and willingness to engage 
actively in discussions of different topics, including so -called other issues, on their own merit.  
4.130.   We have seen this de monstrated in practice. Brazil has taken a leading role in members ' 
discussions on investment facilitation, and is actively participating in negotiations on fisheries 
subsidies multilaterally and plurilaterally in order to implement Sustainable Development  Goal 14.6 
in the WTO.  
4.131.   In the lead -up to MC10, Brazil 's constructive input and engagement in the negotiations on 
agriculture contributed to achieving a positive result on export competition. We are encouraged by 
signals that similar efforts may be underta ken in the lead -up to MC11. We would, however, 
caution that a one -size-fits-all approach to a comple x area such as domestic support  would be 
unlikely to bring results.  
4.132.   We call upon Brazil to consider accession to ITA I and ITA II. More affordable and 
predictable access to information technology can make valuable contributions to people 's lives and 
to business development – not least for small and medium sized enterprises. We also join others in 
hoping for Brazil 's accession to the GPA.  
4.133.   The work in the Inter national Working Group (IWG) on export credits is important. Norway 
appreciates Brazil 's participation in the Steering Committee of the IWG. It is crucial that 
competition among exporters is based on the quality and price of the offered goods and services,  
rather than on the most favourable financial terms and conditions.  
4.134.   Counting the European Union as one trading partner, Brazil is Norway 's eighth largest 
source of goods imports and tenth largest destination of Norwegian goods exports. Exports of 
seafood accounts for almost 20 percent of Norway 's total export of goods to Brazil, but has 
decreased in value from 2014 to 2016. We hope that export of "bacalau " and other excellent 
Norwegian seafood, like shrimps and salmon, will increase in the future. The rece nt initiation of 
free trade negotiations between EFTA and Mercosur enhances the prospects for improvements in 
bilateral trade.  
4.135.   We welcome recent reforms in the offshore petroleum activities in Brazil. Increased 
competition within a predictable regulatory f ramework will strengthened the competitiveness of 
companies, and the productivity in the sector.  
4.136.   Norway commends Brazil for aligning itself with OECD 's standards, and supports Brazil 's 
accession to the OECD.  
4.137.   I will not repeat every written question we rais ed ahead of today 's meeting, but mention 
some concerns.  
4.138.   In relation to exports of seafood, we welcome the new electronic system for product and 
label registration, which came into force in January this year. However, technical problems remain, 
and exporter s risk being shut out of the Brazilian market. We urge  the Brazilian authorities to 
show flexibility as regards the set deadline for processing applications, and to take every step 
needed to avoid that the registration process becomes a technical barrier t o trade.  
4.139.   Turning to maritime transport services, enhanced competition in coastal shipping of goods 
and passengers can contribute to improved services and increased productivity.  
4.140.   Finally, a recurring complaint by companies in Brazil is costly and burdensome  
administration of  tax payments. We therefore ask  for updates on plans to reform, simplify and 
unite these systems.  WT/TPR/M/358 • Brazil  
 
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  4.141.   We thank Brazil for its constructive approach and for its strong support for the multilateral 
trading system not just through words, but dee ds. Norway wishes Brazil a successful Trade Policy 
Review.  
CHINA  
4.142.   As a founding Member of the WTO, Brazil has always been a staunch advocate of the 
rules-based multilateral trading system. China commends Brazil 's position, especially in the 
current scenario  of mounting anti -trade and anti -globalization sentiment. We appreciate Brazil 's 
efforts to voice for the developing countries in the DDA negotiations. China stands ready to 
cooperate with Brazil towards positive outcomes at the MC11.  
4.143.   China welcomes Brazil 's recent declaration that it will fulfil the obligations under Article 15 
of the Protocol on China 's Accession to the WTO and terminate the use of "surrogate country " 
approach in anti -dumping investigations against Chinese products. China believes all Mem bers are 
obliged to abide by the current international economic and political order especially in face of 
global uncertainties to uphold the authority of the multilateral trading system and in turn serves 
the interests of the Members themselves.  
4.144.   China not es that Brazil 's economy has experienced one of the most severe recessions in 
history in 2015 -2016, accompanied by steep rise in inflation and unemployment as well as strong 
contractions in consumption and investment. China is pleased to see that Brazil 's implementation 
of structural reforms begins to have positive effect and would like to work with Brazil in times of 
difficulty to strive for a sustainable economic recovery, which will not only inject new vitality to the 
economy in Latin America but also th e world as a whole.  
4.145.   On the bilateral front, as the largest developing countries and important emerging 
economies respectively in the eastern and western hemispheres, China and Brazil enjoy profound 
traditional friendship, longstanding strategic partnershi p and increased economic and trade 
relations. China has remained Brazil 's largest trading partner for eight consecutive years from 
2009 to 2016. Brazil is China 's largest trading partner and largest investment destination in Latin 
America. In 2016, bilater al trade volume amounted to US$67.71 billion. China 's total accumulated 
investment in Brazil has reached US$26.56 billion by the end of 2015, covering a wide range of 
areas.  
4.146.   That being said, despite the efforts made by Brazil as described in both reports to 
streamline foreign trade procedures, promote trade facilitation and improve the business 
environment, there are still areas of concern for us and I would like to take this opportunity to 
name a few of them.  
4.147.   First, Brazil remains a significant user of t rade remedies, particularly anti -dumping 
measures. Meanwhile, China notes that Brazil initiated the first countervailing investigation against 
China on imported hot rolled steel. China has to point out that the case was initiated in overt 
absence of adequa te evidence, which is not consistent with Brazilian domestic law and initiation 
requirements stipulated in the WTO Agreement on Subsidies and Countervailing Measures. China 
calls upon Brazil to use trade remedy measures in a prudent way and terminate the c ountervailing 
investigation as soon as possible.  
4.148.   Second, Brazil remains an overly complex internal taxation regime with taxes levied at 
various federal and sub -federal levies. This not only has a considerable impact on the price of 
imported goods, but also  poses numerous challenges for foreign companies operating in Brazil, 
including Chinese companies. We encourage Brazil to reinforce its efforts to simplify its tax system 
and reduce the onerous tax burden.  
4.149.   Last but not least, we thank the Brazilian delega tion for their reply to China 's written 
questions, which we will go through carefully.  
4.150.   To conclude, I wish the s eventh TPR of Brazil a full success.  WT/TPR/M/358 • Brazil  
 
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  COLOMBIA  
4.151.   Brazil is one of Colombia's major trading partners in the region. In 2016, it was the 
eighth  largest destination of our exports and the fourth largest origin of our imports, as well as a 
major source of foreign investment and tourism. We share a 1,644 km -long border with Brazil, 
which has prompted our Governments to step up their efforts to extend, in tensify and diversify 
their trade agenda through a large number of bilateral and cooperation mechanisms in forums 
such as LAIA, ECLAC, UNASUR and the Amazon Cooperation Treaty  Organization.  
4.152.   Despite the economic recession of recent years that hit the world' s leading economies, 
including Brazil, we note that the latter still ranks among the top ten and that its economic 
activities are becoming increasingly diversified. We also note the importance of its services sector, 
which is the main contributor to gross value added and job creation. This is evidenced by the fact 
that Brazil ranks 32nd among services exporters and 19th among services importers worldwide.  
4.153.   According to the Secretariat report, in recent years Brazil has taken a number of trade 
reform initiati ves aimed at buttressing growth, such as trade facilitation, anti -dumping measures, 
and support for SMEs. We also highlight its active participation in the multilateral system, as 
evidenced by its recent ratification of the Trade Facilitation Agreement (TF A), the deposit of its 
instrument of acceptance of the Fifth Protocol on Financial Services, and its proactive role in the 
multilateral negotiations.  
4.154.   Colombia submitted questions for this review relating to the management of CAMEX, the 
procedures and requi rements for accessing SISCOMEX, and the criteria and procedure for 
obtaining automatic and non -automatic licences. Our questions also concerned measures to be 
taken in order to avoid the imposition of unnecessary restrictions as a result of the anti -dumpin g 
measures adopted, which have been reviewed under the bilateral agenda in order to facilitate 
trade and investment flows. We thank the Brazilian delegation for its replies, which will be duly 
examined.  
4.155.   Looking towards the future, the Secretariat report in dicates that Brazil faces a whole series 
of challenges which call for a number of policy reforms, including improvements in facilitating 
foreign investment, reducing foreign ownership prohibitions, simplifying fiscal policy, upgrading 
infrastructure, and d iversifying trade relations. We believe that action in these areas will enable 
Brazil to improve its rankings on the trade facilitation, competitiveness and ease of doing business 
indices, giving it room to make the most of its growth potential and thereby  also benefiting its 
trading partners in the region.  
4.156.   We conclude by wishing Brazil and its delegation every success in this seventh trade policy 
review.  
INDIA  
4.157.   We note from the Secretariat 's report that during the period of review Brazil 's largely 
domestic driven economy slowed down and entered into recession in 2015 -16. Annual GDP growth 
rate dropped 3% in 2013 to turn negative in 2015 -16 with slowing down of both consumption and 
capital formation in the economy. The other challenges for Brazil include risi ng inflation, 
unemployment, handling public debt and other fiscal challenges. We commend Brazil for 
undertaking reforms and bold measures to address these challenges which include initiating 
structural and trade related reforms in several sectors like ener gy, manufacturing and transport, 
measures of trade facilitation, supporting SME 's and monetary policy interventions to control 
inflation which are beginning to have a positive impact on the economy. Brazil is also making 
efforts to promote foreign direct i nvestment in various sectors.  
4.158.   India and Brazil share close deep rooted and historical ties which have strengthened 
considerably in recent times with regular high -level exchanges. Trade and economic relations are 
important pillars of our relations with Braz il. Brazil is India 's most important trading partner in 
Latin America. The India -Mercosur Preferential Trade Agreement which came in effect in June 2009 
also gave a boost to our bilateral trade. Till 2014 bilateral trade increased substantially, thereafter , 
it witnessed a down turn in the last two years in light of the global economic conditions and WT/TPR/M/358 • Brazil  
 
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  slowdown in Brazil 's economy. We are confident this trend will be reversed as Brazil undertakes 
reforms and efforts to boost growth.  
4.159.   We had posed a number of qu estions to Brazil and the replies received would be reviewed 
by my authorities. However, I wish to highlight some specific concerns which undermine the vast 
underlying potential of our trade and economic ties.  
4.160.   Investments by Indian companies in Brazil are growing steadily. A large number of Indian 
companies are present in Brazil in areas including IT, mining, energy, bio fuels, pharmaceuticals, 
agri business, manufacturing, engineering and automobile s with investments reaching 
US$5  billion. However, Indian companies continue to face considerable difficulties related to 
complex regulatory mechanisms for registration, long drawn procedures for issuance of licences 
and hurdles for investment approvals.  
4.161.   Indian pharmaceutical companies provide quality generic med icines to Brazil at very 
competitive prices. However, many companies in Brazil are facing difficulties related to complex 
procedures for product registration and other requirements laid down by Brazil 's National Health 
Surveillance Agency (ANVISA). We urge  the Government of Brazil to look into the complex regime 
of product registration, documentary requirements, inspection , etc. for Indian pharmaceutical 
companies which are hampering our bilateral trade and depriving Brazil of pharmaceuticals which 
our comp anies provide at the best value for money.  
4.162.   In the area of textiles and leather, Indian goods face non -tariff barriers like quality 
standards, labelling requirements, packaging requirements , etc. which need to be addressed . 
4.163.   Major Indian IT companies have pr esence in Brazil and are contributing for 
transformational changes of Brazil 's economy and growth of high tech industries. These companies 
face issues related to permissions for movement of qualified professionals, taxation and language. 
Signing of an MOU in the services sector between both countries will give a considerable boost to 
trade.  
4.164.   India is emerging as a hub for small cars. Automobile sector holds considerable potential 
for trade between both countries. Brazil 's Inovar Auto regulations impose sever al conditionalities 
on automobile trade for foreign companies, we urge Brazil to revisit these regulations when they 
become due for review in December 2017.  
4.165.   In the oil and gas sector, Brazil is an important country for Indian 's ONGC Videsh Ltd. 
However, de spite considerable interest the company is currently facing several operational 
challenges like local content regulations, taxation, environmental issues, licensing processes and 
delays in clearances from regulators.  
4.166.   Finally, we wish to highlight the diffi culties faced by Indian professionals and business 
visitors for obtaining business visas for visiting Brazil which is cumbersome, procedurally complex 
and time consuming.  
4.167.   We urge and hope the Government of Brazil will look into all these issues comprehensi vely 
and address these for mutual benefit.  
4.168.   We work closely with Brazil in the WTO. I take this opportunity to thank Ambassador 
Evandro Didonet and his team in Geneva for their excellent work and coo peration to seek 
outcomes in MC 11. We wish the delegation of Brazil a productive and successful TPR.  
JAPAN  
4.169.   Needless to say, Brazil is one of the most important partners for Japan in this region. We 
will continue our efforts to maintain and further develop the strong ties between us.  
4.170.   According to the Secretariat r eport, since its previous Trade Policy Review in 2013, Brazil 's 
economy has been in severe recession, triggered by deteriorating terms of trade and exacerbated 
by a bout of political uncertainty. Japan hopes that Brazil will effectively address these chall enges 
and continue contributing to global trade with a revived economy.  WT/TPR/M/358 • Brazil  
 
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  4.171.   Japan positively evaluates Brazil for the active contribution it has made to the WTO in the 
form of valuable papers and timely statements. Japan also commends Brazil on its actions dur ing 
the review period. Brazil strengthened its commitments by ratifying the Trade Facilitation 
Agreement (TFA) and depositing its instrument of acceptance of the Fifth Protocol on Financial 
Services. Moreover, Brazil now grants preferential treatment to se rvices and services suppliers 
from least developed countries (LDCs), which Japan also commends.  
4.172.   Having said that, Japan believes there is room for improvement. According to the STRI by 
the OECD, Brazil maintains more trade restrictive measure to the Foreig n Service operators than 
the other Latin American countries. Consequently, the level of market access commitments is 
lower than the average of the other Latin America countries. Japan encourages Brazil to reassess 
its commitments.  
4.173.   Turning to the FTA, Japan  is aware that Brazil continues to work on strengthening regional 
economic integration through RTAs negotiated within the framework of the Southern Common 
Market and the Latin American Integration Association (LAIA). It has also been placing emphasis 
on RT As negotiated with trading partners outside the region.  
4.174.   While we are now seeing the progress of trade liberalization in the Mercosur Member 
countries, Japan would like to continue discussing possible ways to promote trade and investment 
between Japan and M ercosur.  
4.175.   Now let me touch upon some more specific issues.  
4.176.   First I would like to mention on of Brazil 's industry support programmes for the period 
2013-17, "INOVAR -Auto". INOVAR -Auto was introduced to promote technological development in 
the Brazilian autom otive industry and address competition challenges, but it will expire at the end 
of this year. We are aware that it will be succeeded by the ROTA 2030 programme. As Japan has 
been concerned with INOVAR -AUTO due to its inconsistency with the WTO Agreements,  we request 
that the upcoming ROTA 2030 programme be fully consistent with the WTO Agreements.  
4.177.   Second, Japan recognizes that the National Bank for economic and Social Development 
(BNDES) has been playing an important role in providing financing for infrast ructure development 
as well as to individual entrepreneurs in a wide range of industries . According to the Secretariat 
report, the BNDES is now reviewing the eligibility criteria for its schemes, including any local 
content requirements, and adapting them to changing market condition. Japan intends to monitor 
the review process, and encourages the Brazilian Government to ensure the transparency and 
predictability of BNDES schemes.  
4.178.   In conclusion, I would like to express our strong wish to continue cooper ation between 
Brazil and Japan. We wish Brazil a successful and productive TPR.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.179.   There are signs that Brazil 's economy is now gradually recovering from a recession. At the 
same time, we have not ed that Brazil 's economy still remains vulnerable to tumbling commodity 
prices, political uncertainties and fiscal imbalances, which suggest the con tinuing need for the 
Brazilian G overnment to take the necessary reforms and measures aimed at achieving more  
sustainable and inclusive development.  
4.180.   We commend Brazil on its strong commitment to the multilateral trading system and its 
active engagement in the WTO. Brazil has always played an important role in DDA and non -DDA 
issues alike, and in agriculture, disp ute settlement, e -commerce and MSMEs in particular. My 
delegation has enjoyed working with Ambassador Evandro Didonet and his team here in Geneva, 
and we look forward to continuing our friendly working relationship in the future.  
4.181.   According to the OECD 's economic outlook on Brazil published in June, "the economy 
remains fairly closed, which hampers competition and limits access to imported intermediate 
inputs. " It goes on to say that  "the recent easing of local content rules is welcome,  but trade 
barriers r emain high ". We are certainly aware of some measures adopted and maintained by WT/TPR/M/358 • Brazil  
 
- 31 - 
 
  Brazil, which may well have had a restrictive impact on trade. For example, the non -automatic 
licensing requirements have applied to at least 5,460 tariff lines.  
4.182.   In addition to customs tariffs, imports into Brazil are subject to a number of internal taxes 
as well. These taxes tend to vary along various dimensions, making Brazil 's tax system rather 
complex (to say the least), especially when it comes to imports. We also note that,  since 2014, 
Brazil has charged an equalization tax on international E -purchases, at a flat rate of 60%. On this, 
it would be particularly appreciated if Brazil could elaborate further on the application and reasons 
for this policy.  
4.183.   We welcome Brazil 's Por tal Ú nico programme, which is based on the single window 
provisions of the TFA. This should, in our view, have the desired positive effect of streamlining and 
facilitating trade procedures. We would also like to see Brazil continuing to open -up its market to 
trade, and introducing more flexible policies conducive to growth. And, we urge Brazil to consider 
becoming a signatory to the Agreement on Government Procurement, to allow direct participation 
by foreign firms.  
4.184.   In past years, we enjoy close and mutuall y beneficial economic ties with Brazil. In 2016, 
for example, the total value of two -way trade between us amounted to approximately US$3 billion, 
which makes Brazil our second -largest tr ading partner in Latin America.  Aside from trade, our 
investments in B razil reached a cumulative total value of US$372 million by the end of 2016. And 
we are convinced there is enormous potential for even greater cooperation between us in the 
future.  
4.185.   In our written questions submitted in advance, we asked about certain aspe cts of Brazil 's 
trade policies that are of particular interest to us. We thank Brazil for its answers, which we shall 
examine carefully.  
4.186.   In conclusion, we wish Brazil  a constructive and successful Trade Policy R eview.  
REPUBLIC  OF KOREA  
4.187.   I am pleased that o ver the years, Korea  and Brazil  have enjoyed  a mutually beneficial  
economic  partnership.  
4.188.   Brazil remains Korea 's second largest trading partner in Latin America. Brazil is Korea 's 
24th largest export market, while Korea is Brazil 's 12th largest export destin ation as of 2016.  
4.189.   Our economic partnership is also characterized by growing investment relations. Korea 's 
total stock of investment in Brazil has reached US$8.5 billion. The number of Korean business 
operating in Brazil almost doubled over the last decade.    
4.190.   In an effort to further strengthen our economic relationship, the Korea -Brazil Industry 
Cooperation Forum was held on 9 May of this year, with almost 100 companies and 300 business 
people from both countries participating. Given the complementary nature  of the two economies, 
we are confident that both countries will be able to bring their relations to new heights in the 
coming years.  
4.191.   In particular, we believe that a mutually beneficial trade agreement between the two 
countries could serve as a stepping s tone toward expanding our economic exchange. In this 
regard, we are pleased to note that the preliminary discussions on launching negotiations for a 
Korea -Mercosur FTA are under way.  
4.192.   We believe that despite the great distance between our two countries, th ere is still 
excellent potential for our trade and investment ties to grow even further.  
4.193.   Brazil is one of the world 's largest economies and, as such, it is important that it show 
leadership on international trade.  
4.194.   We commend Brazil for its active particip ation in WTO activities, including submitting 
various proposals in the ongoing negotiations. We believe it is very important that Brazil, as a WT/TPR/M/358 • Brazil  
 
- 32 - 
 
  responsible player in international trade, continue its strong commitment to strengthening the 
multilateral tradi ng system.  
4.195.   In this regard, we welcome that Brazil ratified the Trade Facilitation Agreement (TFA), 
deposited its instrument of acceptance for the Fifth Protocol on Financial Services, and grants 
preferential treatment to services and service suppliers fro m LDCs.   
4.196.   We also note that Brazil, as a Member of the Mercosur, continues to pursue trade 
liberalization through bilateral and regional trade agreements. As indicated in the Secretariat 's 
report, during the review period, three agreements1 entered into fo rce, four2 were concluded with 
their entry into force pending, and two3 are still being negotiated.  
4.197.   In recent years, Brazil has significantly expanded the scope of its trade relations, and now 
has strong trade ties with Asian countries including Korea. We  hope that negotiations for a trade 
agreement between Korea and Mercosur will be launched soon.  
4.198.   We apprec iate that Brazilian new G overnment recently announced "A bridge to the future " 
initiative to revive its economy, focusing on reform and opening policy.  It is my sincere hope that 
Brazil will proceed with those policies as planned and be able to achieve economic recovery.  
4.199.   We acknowledge the continued progress that Brazil has made in enhancing the 
effectiveness of intellectual property rights enforcement. At this TPR, my delegation submitted 
advance written questions on Brazil 's national IPR legislation for clarification and better 
understanding of Brazil 's IPR regime. We thank the delegation of Brazil for providing answers to 
those questions, which we will  review carefully.  
4.200.   I would like to take this opportunity to point out some of our concerns over Brazil 's 
trade -related measures, which include tax preferences linked to local content conditions and 
industry specific incentives in the automotive (INOVA -AUTO ), information technology, and 
pharmaceutical industries. We are also concerned about the frequent use of trade remedy 
measures4 and tendering law that prefers local suppliers and producers.  
4.201.   I understand that other Members have also raised their concerns regarding these 
measures in the relevant WTO bodies. We hop e and trust that the Brazilian G overnment will work 
closely with Members to address these concerns in a t imely and appropriate manner.  
4.202.   Let me conclude by emphasizing the important role Brazil plays  in the WTO. Especially in 
the run -up to MC -11, we look forward to Brazil 's constructive engagement that will help the efforts 
to achieve meaningful and realistic outcomes in December.  
4.203.   Finally, w e would like to express our warm thanks once again to the delegation of Brazil for 
their hard work and wish them every success in this TPR. 
UKRAINE  
4.204.   Brazil is in top 10 of largest economies in the world. Bilaterally our countries have enjoyed 
good trade, economic and technical partnership relations. Brazil ranks 4th place among the trading 
partners of Ukraine with the countries of the American region.  
4.205.   In 2016 , goods and services trade volumes between Bra zil and Ukraine amounted to 
US$230 million, export from Uk raine to Brazil amounted to US$ 33 million and import  from Brazil to 
Ukraine was US$ 195 million.  
                                                
1 Venezuel a, Guyana/Saint Kitts and Nevis  and Southern African Customs Union.  
2 Egypt, Colombia, Palestine  and Peru. 
3 European Union  and Mexico.  
4 Brazil remains a significant user of trade remedies, particularly anti -dumping (AD) measures. During 
the period under review, 123 new AD investigations were initiated, and as of 31 December 2016, 163 definitive 
AD measures were in place, c overing a wide ran ge of sectors (Secretariat  report) . WT/TPR/M/358 • Brazil  
 
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  4.206.   The main items imported by Brazil from Ukraine are meat and fish products; and other 
products of animal origin. Ukraine imports from Brazil mainly tobacco, various foodstuff, ferrous 
metals, equipment, sugar and coff ee. 
4.207.   Ukraine is looking forward to further enhancing mutual economic cooperation between our 
countries in such areas as: agriculture, healthcare, industry, space, science, technology and 
innovation; and fruitful development of business cooperation.  
4.208.   Ukraine appreciates the cooperation with Brazil across the bodies of the WTO on different 
issues. Being strongly committed to the rule -based multilateral trading system, Ukraine highly 
welcomes the efforts of Brazil and its contribution to further development of t he system and trade 
liberalization and delive ring meaningful outcomes for MC 11. 
4.209.   Within this TPR exercise Ukraine has submitted a number of specific questions on a range 
of the following topics:  
 internal taxation regime ; 
 labour market policies ; 
 facilitatio n of customs clearance procedures;  
 non-automatic licensing requirements ; 
 National Export Plan ; 
 intellectual property rights : 
 domestic support in agri culture;  
 implementation of the Foreign Trade Single Window Program me;  
 National Trade Facilitation Committe e; and  
 participation in the GP Agreement etc.   
4.210.   We would also like to express our concern with regard to definitive anti -dumping measures 
imposed by Brazil to the imports of Ukrainian rolled flat metal , steel pipes and tires.  
4.211.   We are grateful to Brazil for  the responses to the Ukraine 's questions, whic h we are 
reviewing thoroughly.  
4.212.   Finally, I would like to express our appreciation to the delegation of Brazil and to the team 
of the Brazilian Mission in Geneva for their great efforts in preparing  this TPR and  for the fruitful 
cooperation on the wide range of WTO issues . We wish Brazil successful TPR and look forward to 
further strengthening our bilateral relations.  
EL SALVADOR  
4.213.   The Secretariat report highlights the efforts made by the Brazilian Government in ad opting 
trade policies to counter the economic slowdown, introducing trade facilitation and defence 
measures, production incentives, support for small enterprises, as well as fiscal and monetary 
measures, which we hope will yield the expected results.  
4.214.   As re gards Brazil's export promotion policies, we note the Export Financing Programme 
(PROEX) and the export credit schemes in support of exporting enterprises. According to the 
Secretariat report, PROEX is geared towards encouraging exports with high local val ue added, 
which we understand to be the requirement for eligibility for financing.  
4.215.   We also wish to express concern about the large number of tariff lines subject to 
non-automatic licensing, which account for more than half of Brazil's tariff. We urge Brazi l to 
examine the need to maintain these measures and to try and remove or reduce them.  
4.216.   Our two countries enjoy close bilateral relations and technical cooperation projects have 
been undertaken in areas such as territorial development, family farming, publi c safety, health, 
education, justice and the prevention of violence, social reinsertion, technology transfer, and 
transfer of methodologies for social programmes.  
4.217.   In the trade sphere, Brazil was our 11th largest supplier of goods in 2016, reflecting the 
country's importance from the trade standpoint. Total bilateral trade amounted to US$161  million WT/TPR/M/358 • Brazil  
 
- 34 - 
 
  in that year, with El  Salvador exporting mainly clothing and plastic sheets, while Brazilian exports 
mainly consisted of power generators, vehicles, and coffee e xtracts and essences.  
4.218.   We submitted questions to Brazil for this review, concerning, inter alia , import licensing, 
technical standards and requirements, intellectual property, and competition policies. We thank 
Brazil for its replies, which are being examin ed by officials in our capital.  
4.219.   Lastly, we emphasize the part played by Brazil in the ordinary business and the multilateral 
negotiations conducted in this Organization, as a highly active member which promotes free trade 
based on rules enabling the develo ping countries to achieve real and effective gains in 
international trade. In this connection, we underscore the role played by Ambassador Didonet and 
his team in Geneva.  
4.220.   It only remains for us to congratulate Brazil and wish it every success in this exerc ise, 
which we hope will be most useful.  
DOMINICAN  REPUBLIC  
4.221.   Brazil and the Dominican Republic share a long history of friendship and trade cooperation. 
The first Brazilian consulate in Dominican territory opened in 1911.  
4.222.   The economic relationship between ou r two countries is solid and has deepened in recent 
years. Bilateral trade flows have increased from US$379  million in 2014 to a little over 
US$686  million, reflecting 81% growth in barely two years.  
4.223.   The products involved are extremely diverse, bearing wit ness to the deeply rooted 
sustainability of our trade. The Dominican Republic imports, inter alia , iron, maize, machinery, 
plastic products, tractors and buses from Brazil, while Dominican companies sell mainly 
industrialized goods to Brazil such as pharma ceuticals, medical instruments, electrical machinery, 
plastic products and footwear.  
4.224.   Services, mainly air transport and tourism, have also expanded strongly, with direct flights 
for Brazilian tourists from Brazil's main cities to Punta Cana. Between 2014 a nd 2015, the number 
of Brazilian tourists spending their vacations in the Dominican Republic rose from 114,000 to 
140,000 – a 23% rise in just one year.  
4.225.   Brazil has many substantial investments in the Dominican Republic. Brazilian enterprises in 
the country  include Cervecería Nacional -Ambev, a leading beverage company, Metaldom -Gerdau in 
the steel industry, and Paqueta, a footwear plant with more than 3,000 employees in the Santiago 
free zone, as well as other companies in the engineering, machinery and text ile sectors.  
4.226.   In Brazil's seventh trade policy review, we are concerned about the economic indicators 
reflected in the Secretariat report, which indicates that since the previous review in 2013, Brazil's 
largely domestic demand -driven economy has slowed dow n and entered a severe recession in 
2015-2016, triggered by deteriorating terms of trade and exacerbated  by a bout of political 
uncertainty. Annual GDP growth dropped from 3% in 2013 to 0.9% in 2014 and turned negative in 
2015 and 2016. The recession, one of the most acute in Brazil's history, was accompanied by a 
steep rise in inflation (8.7% in 2016) and unemployment (11.3% in 2016) as well as fiscal 
discipline challenges.  
4.227.   We welcome the authorities' monetary policy interventions to contain inflation, whi ch have 
enabled the Central Bank of Brazil to progressively cut its policy rate from a peak of 14.15%. This, 
together with the gradual strengthening of the Brazilian real, should help rekindle economic growth 
as investors' expectations grow.  
4.228.   On the other h and, attention should be paid to fiscal policy, since the federal budget's 
primary balance registered widening deficits during 2014 -2016, interrupting a decade -long 
succession of surpluses. The downward trajectories of gross and net public sector debt were  also 
reversed, with respective increases from 51.5% to 69.6% of GDP and from 30.5% to 46.2% of 
GDP between 2013 and 2016.  WT/TPR/M/358 • Brazil  
 
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  4.229.   We nonetheless congratulate the Brazilian Government for a number of trade -related 
reforms undertaken during the review period in spi te of the severe recession, with a view to 
buttressing growth in several areas such as trade facilitation, anti -dumping, production and trade 
incentives (e.g., SME support), state -owned enterprises, energy, manufacturing, and transport 
infrastructure, alon g with a new labour law providing labour market flexibility, which was adopted 
a few days ago and is currently under review. More are under consideration, including fiscal 
reform. But most importantly, there is a need to streamline and automate procedures and to do 
away with red tape, which undermines investment projects by large, medium and small 
enterprises and fuels a growing informal market, jeopardizing the generation of permanent jobs 
and tax revenue. What is also urgently needed is substantial invest ment in the country's port and 
road infrastructure, which would significantly raise private investment levels and increase 
agricultural and industrial productivity.  
4.230.   Turning to the external sector, we urge Brazil to push forward with regional economic 
agree ments by concluding the agreement with the European Union, for example, and by 
participating in the Pacific Alliance so as to diversity and extend its markets, thus reducing the 
economy's vulnerability to global commodity market shocks or sudden exchange m arket swings. 
Participation in the BRICS and the major steps taken by the Group to boost South -South 
cooperation can also greatly help Brazil to achieve its diversification target and to strengthen its 
position on foreign capital markets.  
4.231.   The tariff remain s one of Brazil's main trade policy instruments, and a significant, albeit 
declining, source of tax revenue (3.6% of the total in 2016). Brazil applies the MERCOSUR 
common external tariff (CET), with some country -specific derogations. We are very pleased t o note 
that during the review period, Brazil phased out the higher -than-CET rates introduced in 2012 on 
100 tariff lines under a temporary MERCOSUR mechanism.  
4.232.   As regards trade facilitation, Brazil not only ratified the WTO Trade Facilitation Agreement 
but also took steps to upgrade its single window and its authorized economic operator programme.  
4.233.   Turning to trade remedies, we commend Brazil for improving its regulatory framework but 
note with concern that it makes considerable use of such measures, particul arly anti -dumping 
measures. During the period under review, 123 anti -dumping investigations were initiated, and at 
31 December  2016, 163 definitive anti -dumping measures were in place. We therefore urge Brazil 
to exercise due moderation in this respect.  
4.234.   Services remain the main contributor to Brazil's gross value added (73.3% in 2016) and 
job creation. We congratulate Brazil on improving its GATS commitments over the review period 
and on the fact that three of its RTAs now contain WTO -plus services commitme nts. 
4.235.   Lastly, the Secretariat report expects the Brazilian economy to enter a gradual recovery in 
2017 but that growth will remain weak for a prolonged period. It also states that future prosperity 
and sustainable growth depend on the implementation of prod uctivity -enhancing structural 
reforms in several areas, including revamping the overly complex tax and incentives regime and 
reducing the regulatory burden on businesses, as well as addressing pension and labour market 
issues. We wish Brazil well on this p ath and thank it for replying to the questions submitted by the 
Dominican Republic.  
RUSSIAN  FEDERATION  
4.236.   Russia joins others in welcoming the 7th Trade Policy Review of Brazil. Today 's meeting 
provides a valuable opportunity to have an open and frank discuss ion on a broad range of current 
trends in Brazil 's economy.  
4.237.   Russia shares an overall assessment of the status of the Brazilian economy and trade, as 
well as challenges faced by the Brazilian authorities. We commend the efforts by the Government 
of Brazil to get the economy back on a positive track. According to the IMF, a positive growth, 
although modest, is projected this year. We also expect the country to continue to prioritize 
cooperation within the framework of the multilateral trading system, and com mend Brazil on 
ratifying WTO 's Trade Facilitation Agreement in March 2016.  WT/TPR/M/358 • Brazil  
 
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  4.238.   Russia and Brazil have a long history of friendly relations, which has always been featured 
by broad, deep and robust bilateral cooperation across vast economic, trade and investme nt areas. 
Together we work successfully and fruitfully in different international fora, including G20 and 
BRICS.  
4.239.   Economic relations between Russia and  Brazil are steadily expanding.  Bilateral trade 
volume reached US$4.3 billion last year, and has further grown by almost 40% from January to 
May 2017. Russia is an important destination for Brazil 's agricultural products, which account for 
90% of its exports to our country. On the other hand, Russia exports to Brazil fertilizers, chemicals 
and metals, as well s as machinery. Russian oil, gas and nuclear energy companies are 
participating in several large -scale projects in Brazil. Our investments to this country are estimated 
at US$1.5 billion. Nevertheless, we see a great untapped potential for further enhancin g the 
bilateral trade in goods and services and increasing investment flows.  
4.240.   The official visit of the President of Brazil Michel Temer to Moscow last month highlighted a 
steady development of our bilateral relations. Our leaders confirmed their mutual de sire to boost 
economic and trade ties and strengthen cooperation in international fora.  
4.241.   We are working on improvement of the legal basis for our economic and trade relations. 
Three documents on customs issues will be signed in the near future. The Intergo vernmental 
commission on economic cooperation is highly instrumental in addressing various bilateral 
concerns. The last meeting of the Commission took place as recently as in May this year, and we 
expect to continue fruitful discussions in this format.    
4.242.   We have submitted a number of advance written questions to Brazil and are now carefully 
studying the provided answers. For the moment we have no further questions and are ready, if 
necessary, to continue discussions in the context of regular bodies of the WTO. We wish Brazil a 
successful Trade Policy R eview.  
PARAGUAY  
4.243.   The Government and Secretariat reports both show that the Brazilian economy 
experienced one of the most difficult times in its modern history during the review period, with 
consecutive years of  economic slowdown, a decline in industrial production, high inflation levels 
and a rise in unemployment.  
4.244.   The external and internal factors that affected the Brazilian economy, such as falling global 
food prices, declining domestic consumption, import rest rictions and distortions in administered 
prices also had repercussions at the regional level, essentially because Brazil accounts for 80% of 
the region's GDP.  
4.245.   Nonetheless, the Brazilian Government recently started implementing a reform agenda 
aimed at econ omic recovery, by applying more open trade practices, fostering innovation and 
inclusion and, first and foremost, by pursuing successful poverty reduction plans such as the 
Bolsa  Família  Programme.  
4.246.   In this connection, it is important to emphasize that inco me distribution policies have 
greatly benefited Brazil's low -income population, with a 258% increase of the tenth percentile's 
average per capita income over the past decade and substantial social progress in rural areas.  
4.247.   As emerges from the reports, inter national trade has suffered a significant downturn in 
recent years, both in absolute terms and as a proportion of GDP – as did Brazil's share in global 
trade, which decreased from 1.33% in  2013 to 1.21% in 2015. Despite this grim scenario, the rise 
in the number of Brazilian companies currently exporting, and especially the high percentage share 
of micro, small and medium -sized enterprises, is nonetheless worthy of mention. This bears 
witness to the Brazilian Government's firm resolve to diversify and decon centrate the economy.  
4.248.   Overall, Brazil's trade policy did not undergo any major changes during the review period. 
The objectives were to increase the participation of Brazilian companies in global value chains and 
raise the competitiveness of domestic produ cts by promoting technological development, WT/TPR/M/358 • Brazil  
 
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  innovation and technology transfer, in some cases using mechanisms to shield them against 
external competition.  
4.249.   Brazil is a major user of trade remedies, particularly anti -dumping measures, of which 
more than 160  are in force. It also applies non -automatic import licensing spanning more than half 
of its tariff lines. All of this is compounded by an overly complex tax system, particularly for 
imports. As we have seen, a number of Members are concerned about these i ssues, giving rise to 
numerous questions.  
4.250.   We would further emphasize that Brazil is one of the most active Members in the WTO 
negotiations, pressing for progress in the discussions on reforming agricultural trade, mainly with a 
view to securing tangible ou tcomes at the forthcoming Buenos Aires Ministerial Conference. During 
the period under review, it played a key role in the negotiations that culminated in the Trade 
Facilitation Agreement and the Ministerial Decision on Export Competition.  
4.251.   Another point wo rthy of mention is that Brazil has been participating in the OECD as a 
strategic partner since 2007. This cooperation will be bolstered by the country's recent request to 
enter the Organization – a request that is part of the Brazilian Government's efforts  to consolidate 
sustainable and inclusive development by modernizing management and taking advantage of the 
Organization's wide experience in comparative public policies.  
4.252.   These and other strategic steps taken to combat corruption are a positive sign that B razil is 
on the right path. Given the current political climate, such measures will enable public policy 
reforms to enhance transparency, combat corruption, implement tax reforms and encourage FDI; 
if they are implemented in accordance with the highest int ernational standards, they will help 
rebuild confidence and create an economic environment conducive to investment and inclusive 
economic growth.  
4.253.   Relations with Brazil are undoubtedly among the most important for Paraguay. Brazil is our 
largest neighbour, our main trading partner, one of our leading investors, and a country with 
which we have a wide -ranging joint agenda that includes binational undertakings and cooperation 
and cultural exchange programmes.  
4.254.   In 1991, Paraguay, jointly with Argentina, Brazil a nd Uruguay, initiated one of the most 
ambitious South American integration projects, MERCOSUR, which has had its ups and downs but 
is at present forging ahead with the process of consolidating its customs union; it is viewed as a 
solid trading bloc open to  the world and is currently the largest food exporter.  
4.255.   MERCOSUR has become the backbone of our countries' trade policies and the platform for 
negotiating extra -regional trade agreements. Today, it is the main destination of its member 
countries' manufactur es, with a growing level of integrated production and Brazil as the leading 
market.  
4.256.   As I mentioned earlier, Brazil is Paraguay's foremost trading partner, with bilateral trade 
exceeding US$5  billion. H ydropower  is Paraguay's top export product, followed by , inter alia , 
cereals, beef, soya beans, plastics and plastic products, made -up articles and clothing. Paraguay's 
main imports from Brazil include motor vehicles and machinery, miscellaneous chemical products, 
fuels, and footwear.  
4.257.   We believe that our bilat eral trade is still well below potential but are confident that our 
Governments and businesses will find a way to make it stronger.  
4.258.   Another important point is that Brazil is Paraguay's second largest investor in terms of FDI 
balances and the largest in ter ms of FDI inflows in recent years. Brazil's investment went to the 
agricultural sector, services and finance, and was chiefly aimed at leveraging the comparative 
advantages offered by Paraguay and the opportunity to access the enlarged MERCOSUR market.  
4.259.   I would not wish to conclude without mentioning the largest joint venture between 
Paraguay and Brazil: the Itaipu hydroelectric dam, which is the world's top generator of clean, 
renewable energy. It accounts for about 17% of Brazil's energy consumption and su pplies 76% of WT/TPR/M/358 • Brazil  
 
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  Paraguay's energy requirements. In 2016, Itaipu's output exceeded 103  million MWh, establishing 
a new world record in annual generation of this type of power.  
4.260.   Lastly, I would emphasize that Paraguay and Brazil share the same views on the 
multilateral trading system. The WTO's negotiating pillar needs to be strengthened and we must 
continue to develop global rules that are binding, clear and non -discriminatory. We believe that 
the Doha Development Agenda should be the main frame of reference fo r the discussions but are 
also open to addressing new topics in this Organization, especially those which comprise an 
inclusiveness component and are, moreover, aimed at bridging the gaps between Members.  
4.261.   I would like to offer renewed congratulations to th ose leading this review and to the 
delegates from the Permanent Mission of Brazil in Geneva for their invariably active involvement in 
the different areas of the WTO's work.  
THAILAND  
4.262.   Brazil has always been Thailand 's largest trading partner in South Americ a. In 2016 
bilateral trade between Thailand and Brazil was valued at US$3.7 billion. Brazil was largest export 
destination and import source in South America with total exports valued at US$1.5 billion , with 
machineries, automobiles, electrical machineries , rubber, and p lastics being the key products. 
Import wise, Thailand imported from Brazil to the value of US$2.2 billion with soy beans, s oy bean  
cakes, machineries, iron and steel, and l eather the main imports.  
4.263.   We note that Brazil 's economy experienced se vere recessions in the past two years 
accompanied by high inflation and unemployment and would like to commend Brazil for 
maintaining a generally open trade and investment regime despite the difficult economic 
challenges.  
4.264.   We also commends Brazil 's efforts to improve its customs procedures through the 
upgrading of its single window and the Authorized Economic Operator (AEO) programme in 
addition to the ratification of the Trade Facilitation Agreement  
4.265.   We note the high number of non -automatic licensing require ments cited in the secretariat 
report which may apply to 5,460 tariff lines or more than half of Brazil 's entire tariff. This can 
disrupt or slow -down trade and in this regard, we hope that, as pointed out by the Brazilian 
authorities, the fully implementa tion of the Single Window Programme in 2018 will bring about a 
significant reduction in the number of non -automatic licensing requirements.  
4.266.   Brazil has always been a valuable contributor to the WTO, during the review period Brazil 
has ratified the TFA, depo sited its instrument of acceptance of the Fifth Protocol on Financial 
Services, and granted preferential treatment to services and service suppliers from LDCs. Brazil, 
through Ambassador Evandro Didonet has also played important and constructive role in dr iving 
various negotiations forward.  
4.267.   In this review, Thailand submitted a number of questions to Brazil , covering the issues of 
our interests suc h as trade in services and investment policies, customs valuation, import 
licensing, and a gricultural support pr ogrammes. We appreciate the prompt replies provided to our 
questions, for which we will study carefully with great interest.  
4.268.   In conclusion, Thailand would like to express its appreciation to the Brazilian delegation for 
today 's presentation. We are thankfu l for the cooperation with Brazil at every level and wi sh Brazil 
every success in its s eventh Trade Policy Review  
ECUADOR  
4.269.   It is very interesting for my delegation to participate in this trade policy review because of 
the importance that Ecuador attaches to  its bilateral relations with Brazil.  
4.270.   During the review period and as amply described in the Secretariat report, Brazil suffered a 
severe economic slowdown. Deteriorating terms of trade and political uncertainty adversely 
impacted annual GDP growth, which dropped from 3% in 2013 to 0.9% in 2014 and then turned WT/TPR/M/358 • Brazil  
 
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  negative in 2015 and in 2016. In order to reverse this trend, the Brazilian Government has 
implemented a number of measures, including tax reforms, calibrated monetary policy 
interventions and a tight ening of public expenditure. We are confident that such steps will be 
effective in enabling it to achieve its objectives. We are equally sure that this exercise in 
transparency will provide Brazil with useful inputs towards meeting these goals.  
4.271.   Foreign tra de plays a key role in the Brazilian economy, which in turn is highly relevant to 
the region and the world as a whole. We highlight Brazil's aggregate two -way commercial flows in 
goods and services, which represented about 25% of GDP during the period unde r review.  
4.272.   Worthy of mention as far as Brazil's trade policies and practices are concerned are the 
binding of all tariff lines and the cuts in applied tariffs. The use of tariff quotas and other non -tariff 
measures, such as non -automatic licensing, technica l regulations and sanitary and phytosanitary 
measures, may restrict effective access to the Brazilian market.  
4.273.   As regards trade between Brazil and Ecuador, there is still a trade balance gap between the 
two countries. According to figures provided by Ecuado r's Export and Investment Promotion 
Institute (PRO  ECUADOR), in 2016 Ecuadorian exports totalled US$144  million, while imports 
exceeded US$641  million. Exports of non -oil products to Brazil in that year increased by 22.31%, a 
figure that appears encouragin g, but it should be pointed out that two of our main non -oil exports, 
bananas and shrimps, have been denied access to the Brazilian market for the past 20 years or so, 
because of phytosanitary measures imposed by Brazil.  
4.274.   This issue has been the subject of consultations and negotiation at various levels between 
the authorities of the two countries, including the signing of a memorandum of understanding on 
trade in 2011 and an instrument of agreement and undertaking  in 2013. Ecuador has also 
repeatedly submit ted a work plan on the export of bananas to Brazil.  
4.275.   As indicated in its report, Brazil has signed more than 30 bilateral agreements on sanitary 
and phytosanitary matters, based on SPS Agreement principles, with the aim of identifying 
common rules, simplify ing import controls, harmonizing certification requirements, and facilitating 
bilateral trade and the entry of selected products. We take this opportunity to insist once again on 
immediate implementation of the phytosanitary agreements signed between our t wo countries.  
4.276.   To conclude, we thank the Brazilian delegation in anticipation for its replies to our 
questions on various specific aspects of Brazil's trade policy and wish it every success in this 
review.  
INDONESIA  
4.277.   During the severe recession experienced  by Brazil, we highly appreciate that Brail remains 
put in its hard work, to conduct this seventh Trade Policy Review.  
4.278.   Brazil is far away in geographical distance from Indonesia. I recall that our government 
officials would think twice to fly to South Ameri ca, due to the very lengthy duration of flight. Yet, 
we cannot deny that Brazil is close to the heart of Indonesians. Of course, the average 
Indonesians, especially for young generation, associates Brazil with the strong soccer team, the 
samba festival, an d havaianas sandals. But, there is more to what meets the eyes.  
4.279.   Brazil has always been among Indonesia 's important trading partners in the Latin American 
region. Brazil is Indonesia 's largest trading partner in South America and the Caribbean. 
Meanwhile, I ndonesia is Brazil 's the second largest trading partner in South East Asia.  
4.280.   The total trade between Indonesia and Brazil has been experiencing a decrease in value, 
from US$4.05 billion in 2014 to US$3.5 billion in 2016. In 2016, Brazil enjoyed a surplus of  
US$1.30 billion from trading with Indonesia.  
4.281.   We are pleased to note the growing projects of investment from Brazil companies in 
Indonesia as well as cooperation with our business people. According to our data, in 2016 Brazil 
investment in Indonesia has r eached and encouraging sum of US$42.6 million, in total of 
20 projects, compared of the investment in 2015 which is value of  US$13.6 million, in total of WT/TPR/M/358 • Brazil  
 
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  5 projects. And, looking forward to the near future, we hope that Indonesia and Brazil could 
promote t he bilateral trade cooperation, as well as to address any trade and trade -related issues 
between our two countries.  
4.282.   The Secretariat report shows that Brazil is one of the frequent users of trade remedy. It 
stated that Brazil 's institutional framework on tr ade remedies remained unchanged during the 
period under review. It also stated that the incidence of Brazilian trade remedies, predominantly 
AD measures, nearly doubled during the period under review. The report also demonstrates a 
continued rise in the sh are of Brazil 's total merchandise imports affected by its trade remedy 
measures between January 2013 and January 2017: from 0.76% in 2013; 0.79% in 2014; 0.93% 
in 2015; and 1.06% in 2016. We are of concern about this issue and we hope that the 
Government o f Brazil will work closely with Members to solve this issue.  
4.283.   In addition to this TPR process, Indonesia encourages Brazil to enhance transparency and 
simplification of procedures in trade remedy investigations, including the use of positive and 
probative e vidence in compliance with WTO provisions.  
4.284.   Indonesia commends Brazil for improving on its GATS commitment, which resulted in the 
three of Brazil 's RTAs now containing WTO -plus services commitments. Indonesia hopes, through 
this seventh Trade Policy Review,  that Brazil is encouraged to pursue progressive policies to 
address the longstanding structural problems affecting its competitiveness, such as the high and 
complex tax regime, and problems on infrastructure and the lack of access to credit.  
4.285.   Indonesia wou ld like to address several concerns on trade policies and measures applied 
by Brazil during its review period. These concerns are domestic support, in the form of tax or 
non-tax incentives, tax regime, the extension of Plano Brazil Maior Programme, foreign  investment 
regime, and some sectoral issues.  
4.286.   In this regard, we have submitted a number of written questions related to our concerns 
on Brazil 's trade and trade related policies and practices. We look forward to a response from 
Brazil.  
4.287.   Moreover, Indonesia  believes that this TPR is a good moment to examine the measures 
adopted by Brazil, and also to learn about their impact to the Brazilian economy, as well as to the 
economy of other WTO Members.  
4.288.   Together with other developing countries including Indonesia,  Brazil remains as a crucial 
player in WTO negotiation – especially in concluding the DDA negotiations. Indonesia looks forward 
to work closely with Brazil and with other Members to deliver a successful MC11 this upcoming 
December in Buenos Aires.  
4.289.   Finally,  to finish our remarks, once again, we would like to express our appreciation to the 
delegation of Brazil for their hard work. Indonesia looks forward to a follow -up communications 
with the Brazilian delegation, including through Ambassador  Evandro Didonet  and his 
Geneva -based team.  Indonesia wishes Brazil a successful Trade Policy Review.  
TURKEY  
4.290.   Brazil is a critical actor for and a trustworthy partner within the multilateral trading system. 
We commend the contributions of Brazil and especially the Brazilia n team in Geneva both for the 
well-functioning of the WTO and the furthering of the multilateral trade negotiations. In this 
respect, Brazil played a very constructive role in achieving a concrete outcome in Nairobi.  
4.291.   Brazil, one of the 10th biggest econom ies in the world suffered the greatest recession in its 
history in 2015 and 2016 with a combined 7.4 % contraction of GDP. We observe that during the 
review period, the trade volume of Brazil contracted by 30%.  
4.292.   Brazil faces some structural problems and cha llenges, especially in terms of integration to 
world markets and global value chains, as well as in terms of transforming from a commodity 
dependant to a value -added economy.  WT/TPR/M/358 • Brazil  
 
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  4.293.   Brazil is one of the rare Members with higher average tariffs in manufacturing p roducts 
compared to agricultural products. The average MFN applied tariff for manufacturing products at 
11.8%, remains high and this is also true for the inputs for many industries. This high level of 
tariffs for manufactured products is an impediment for Brazil 's integration to global value chains.  
4.294.   We are confident that Government will take the necessary measures that will transform 
Brazil into a high value added economy reflecting its existing potential. In this vein, more 
openness to international trade  will pave the way for boosting the Brazilian economy.  
4.295.   There is ample room for improvement with respect to the simplification of regulatory and 
tax systems for increasing the competitiveness of Brazil. We welcome the initiatives taken by the 
Brazilian Gov ernment in this regard. We are pleased that reforms and policy adjustments will 
deliver growth for the term 2018 -2021.  
4.296.   Relations between Turkey and Brazil have been elevated to a strategic level in 2010 by 
means of the signing of the Action Plan for Strat egic Partnership.  
4.297.   Brazil is Turkey 's largest trade partner in South America and our second largest trade 
partner in the Western Hemisphere, after the US.  
4.298.   We apprecia te our cooperation within the G 20.  
4.299.   However, economic relations between our countries hav e slowed down in recent years, due 
to some global problems and domestic challenges that both countries had to face.  
4.300.   Our bilateral trade volume was US$2. 1 billion in 2016. This is far from representing the 
existing potential.  
4.301.   We believe that the conclusion  of a FTA between Turkey and MERCOSUR will be beneficial 
for both sides during a period when bilateral and regional initiatives have gained importance.  We 
would appreciate the support of Brazil in this regard.  
4.302.   With respect to the trade policy regimes of B razil, Turkey submitted a number of written 
questions in advance, seeking further clarification on mainly measures directly affecting exports 
and imports. We look forward to rec eiving responses in due course. We wish Brazil a successful 
review.  
MALAYSIA  
4.303.   Since the last review in 2013, Brazil has weathered a challenging economic cycle. Although 
Brazil 's domestic demand -driven economy slowed down and ent ered a severe recession in 
2015-2016, Malaysia commends the efforts undertaken by Brazil on her structural r eforms and 
fiscal consolidation.  
4.304.   We note that Brazil reform initiatives were undertaken in several areas, including in trade 
facilitation, anti -dumping, production and trade incentives, state -owned enterprises, energy, 
manufacturing, transport infrastructu re, and more are under consideration. As in the Secretariat 
report, these efforts have led to the recovery of the Brazilian economy.  
4.305.   Multilaterally, we appreciate Brazil 's role as an active member of the WTO. Brazil 's 
commitment to the WTO is demonstrated by her ratification of the Trade Facilitation Agreement 
(TFA), amendments to the TRIPS Agreement as well as depositing its instrument of acceptance of 
the Fifth Protocol of Financial Services in 2016.  
4.306.   Brazil is also open to efforts in exploring emerging is sues that reflect today 's business 
realities such as e -commerce and MSMEs among others.  
4.307.   Brazil, as a large influential developing member, could however do better in providing the 
needed lead ership together with other key M embers of the WTO in advancing the  remaining Doha 
issues and thus ensure a successful MC11.  WT/TPR/M/358 • Brazil  
 
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  4.308.   In its continued commitments to the WTO, we encourage Brazil to continue its market 
opening and implement more flexible policies conducive to growth.  
4.309.   One specific issue that we would like to raise is on Brazil 's SPS complex administrative 
measures that have long impacted exports of agricultural produce to Brazil. And we hope that this 
would be improved given the current reforms being undertaken on Brazil 's SPS institutional 
framework.  
4.310.   Malaysia and Brazil bilateral trade relationship continues to grow since the establishment of 
the Malaysia Brazil Joint Economic Trade Committee (JETC) in 1996. Noting the importance of 
bilateral investment, Malaysia is currently reviewing the proposal submitted by Bra zil last year on 
the Agreement on Cooperation and Facilitation of Investment (ACFI).  
4.311.   In addition, noting the growing importance of the Halal market in the region, a Brazilian 
company based in Malaysia, has signed a Memorandum of Understanding (MoU) with th e Malaysia 
Halal Development Corporation (HDC) in September 2016. The MoU provides for collaboration in 
various areas including training guided by the relevant Malaysian Halal Standards, general 
framework to facilitate growth and development of vendor deve lopment programme as well 
sharing of best practices to enable targeted SMEs to penetrate the global market.  
4.312.   Brazil is Malaysia 's 38th largest trading partner in the world and the largest from the Latin 
American for 2016, while Malaysia was Brazil 's 3rd lar gest export destination and import source 
among ASEAN. Trade between Malay sia and Brazil was valued at US$2.7 billion with exports at 
US$700 millio n and imports from Brazil at US$ 2.0 billion in 2016 by Malaysia. Trade balance has 
been in Brazil 's favour wi th the overall trade increased by 15.4 % from 2015.  
4.313.   Major imports into Malaysia are iron ores and agricultural products from Brazil, while 
Malaysia 's main exports to Brazil consist of electrical and electronic products as well as rubber 
products.  
4.314.   To conclud e, we thank Brazil 's response to our questions which have been submitted 
earlier.  
4.315.   We too take this opportunity to commend the active engagement and participation of 
Ambas sador Evandro Didonet, and the delegation of Brazil. We wish Brazil a fruitful and su ccessful 
7th Trade Policy Review.  
COSTA  RICA 
4.316.   This seventh review of Brazil's trade policies serves as a reminder of what Brazil represents 
for Brazilians and what it should represent for the world at large. The greatness of this country 
extends well beyond  its territory, hence the importance for this Organization to review the 
economic and trade situation of Brazil, for its people and for its trading partners.  
4.317.   The fiscal and political obstacles that Brazil had to confront during the years covered by 
this re view have tested its resilience, and the findings in the reports bear witness to the endurance 
shown by the Brazilian people throughout the country's history.  
4.318.   To speak of Brazil is to speak of magnitude: it is an immensely rich country in terms of 
culture,  ethnicities, languages and natural resources. It is Latin America's largest economy and the 
fifth largest and most populated country in the world. The longest and mightiest river on the 
planet flows through Brazil, whose fertile land has seen the birth of  sports and artistic legends 
such as Pelé, Caetano Veloso, Jorge Amado and Ayrton Senna, to mention but a few.  
4.319.   If we were to measure Brazil's renewable natural wealth in terms of water, forest cover 
and soil fertility from the economic standpoint, we would  probably discover that Brazil's natural 
capital makes it the richest country in the world. With one of the largest river basins and the 
greatest freshwater reservoir and hydro potential on Earth, Brazil faces the same dilemmas as the 
rest of humanity in r espect of climate change and the need to find a balance in designing 
sustainable development policies. This is a challenge shared by Costa Rica – the challenge of 
producing clean energy and conserving and developing natural resources  in such a way as to WT/TPR/M/358 • Brazil  
 
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  regenerate, as well as can be, the ecosystems on which survival of all the world's species depends. 
Like Brazil, we are aware of and understand the evidence and challenges of global warming for 
agricultural nations.  
4.320.   Costa Rica welcomes Brazil's plans to incr ease the share of renewables in its energy and 
electricity generation matrices, as reflected in the Ten -Year Plan for Energy Expansion 2024. It 
would be interesting to know whether the policies set out in the Plan contain measures aimed at 
reforming fossil  fuel subsidies and, if so, what such measures would involve. Re -allocating 
resources for fossil fuel subsidies to the production of renewables might be an effective means of 
achieving the Plan's objectives as well as the United Nations Sustainable Develop ment Goals.  
4.321.   Brazil and Costa Rica have historically enjoyed friendly relations. In this Organization we 
are both members of the Cairns Group, in which we share the objective of achieving agricultural 
reform at the multilateral level, underpinned by clear, transparent and non -discriminatory rules 
that take into account the environmental challenges facing agriculture. We are Members 
committed to the multilateral system and, as developing countries, we believe that it is important. 
We therefore congratulate Br azil for ratifying the Trade Facilitation Agreement and for providing 
preferential treatment to services and service suppliers of least developed countries. We also 
recognize the efforts that Brazil has been making to update its outstanding notifications a nd urge it 
to keep up the momentum.  
4.322.   This review is taking place in a complex macroeconomic environment for Brazil. The 
country suffered an economic slowdown in recent years and entered a recession in 2015 -2016 
which caused a sudden rise in inflation and un employment. Although recovery is projected to 
begin this year, growth is expected to remain weak for a prolonged period. Brazil is therefore to be 
commended for its commitment to UNCTAD and the OECD in creating a framework to attract 
further foreign direct  investment. It would be important to seize this opportunity to work on 
removing some of the remaining restrictions on this type of investment, which would greatly 
benefit Brazil's domestic market and revitalize its economy.  
4.323.   We also welcome Brazil's ongoin g efforts to make its legislation more transparent and to 
apply international best practices in combating corruption. Measures to enhance competitiveness 
have prompted Brazil to target its integration in global value chains. We welcome this move, 
especiall y considering the size of the Brazilian domestic market and the gains that this may bring. 
We note the high complexity of Brazil's tax system and the fact that there is no common 
nomenclature for the preferential tariffs granted under regional trade agreem ents. We therefore 
urge Brazil to replicate its efforts at transparency in these areas as well.  
4.324.   We recognize that domestic support for local production is important for Brazil. In this 
connection, we urge vigilance regarding protectionist tendencies the wo rld over and emphasize the 
need to put an end to them within the multilateral trading system.  
4.325.   At the bilateral level, exports of Costa Rican products to Brazil rose by 77% in 2015 -2016, 
while imports of Brazilian products and Brazilian investment in the Co sta Rican market also 
increased significantly over that period.  
4.326.   In addition to being the main contributor to Brazil's gross value added and job creation, 
the services sector offers vast opportunities in terms of digital technology, telecommunications, 
e-commerce and connectivity. As a member of the Friends of E -commerce for Development Group, 
Costa Rica would be interested to learn more about the experience gained in a market with 
characteristics such as Brazil's, in the light of the Strategic Plan 2015 -2024 for the services sector, 
so as to enrich the debate in the run -up to the Eleventh Ministerial Conference.  
4.327.   I shall end my statement by underscoring the huge effort made by the Secretariat and the 
Brazilian Government in preparing this exercise in transpar ency. The multilateral system draws on 
and is strengthened by the trade policy review mechanism, and we congratulate all the parties 
involved for their excellent work.  
4.328.   I conclude with the closing words of the Song of Exile by the Brazilian poet Gonçalves D ias: 
"May God never allow that I die  WT/TPR/M/358 • Brazil  
 
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  Before I return  
Without seeing the beauties  
That I cannot find here  
Without seeing the palm trees  
Where the thrush sings."  
BURUNDI  
4.329.   My delegation notes that Brazil is one of the largest economies in the world today. On t he 
other hand, after a period of very high growth it showed signs of slowing down in 2011 and 
entered a recession in 2015, triggered by deteriorating terms of trade and exacerbated by sudden 
political uncertainty. The 2015 -2016 economic recession, one of t he most severe in Brazil's 
history, was accompanied by a surge in inflation, which reached 8.7% in 2016. The resulting 
unemployment rate was also very high, climbing from 6.5% in December  2014 to 11.9% in 
November  2016, with a loss of 2.9  million formal jo bs. 
4.330.   My delegation also notes that Brazil suffered a significant supply shock following the fall in 
commodity prices, impacting commodity exporters through the reversal of favourable terms of 
trade that had been in place for a decade, the growth of public a nd private spending resulting in 
high indebtedness levels, and distortions in administrative prices that contributed to raise inflation, 
leading to monetary policy tightening.  
4.331.   Burundi nonetheless welcomes the measures introduced by the Brazilian Government  to 
put its economy back on track and contain inflation in order to create more stable and favourable 
prospects, as appears from the 4.8% forecast for 2017 and the target of 4.5% for 2018 and even 
beyond.  
4.332.   My delegation hopes that all the measures taken by Brazil will help it to find reliable 
solutions to its economic difficulties, keeping unemployment under control in order to provide a 
better life for young Brazilians. We encourage Brazil to step up its efforts to support the activities 
of SMEs, which are a source of job creation for young people.  
4.333.   We are very pleased to note that in order to enhance its competitiveness in multilateral 
trade, Brazil is pursuing its endeavours to implement a real agenda for productivity; 
professionalization of state -owned ent erprises; autonomy of regulatory agencies; better labour 
rules; regulatory frameworks consistent with economic rationality; improvement of infrastructure; 
and a focus on legal certainty.  
4.334.   My delegation also welcomes the fact that Brazil has adopted policies  ranging from 
modernization of public management to improvement of the business environment by 
restructuring the national industrial property system, introducing the single window programme to 
facilitate customs procedures, and taking steps to simplify int ernal procedures. We encourage 
Brazil to make further efforts to upgrade its single window, reduce administrative formalities and 
facilitate import and export processes for businesses, and revisit the legal frameworks that create 
unnecessary transaction co sts for the production sector.  
4.335.   Burundi is convinced that all these additional economic indicators point to favourable 
prospects for sustainable economic recovery.  
4.336.   Brazil remains highly committed to the multilateral trading system, in which it plays an 
active role. We note Brazil's engagement over the review period in countering anti -trade trends 
and protectionist pressure. Brazil has a major stake in a multilateral trading system capable of 
providing the basis for a non -discriminatory expansion of internati onal trade.  
4.337.   My delegation encourages Brazil to intensify its efforts in the ongoing WTO negotiations to 
secure the balanced and development -oriented outcomes so keenly sought by the developing and 
least developed countries, because my country also believes  that the Doha Development Agenda 
and its mandates should remain at the heart of the negotiations.  
4.338.   My country welcomes the fact that Brazil has already honoured its WTO commitments by 
ratifying the Trade Facilitation Agreement and endorsing its implementat ion, and by depositing its WT/TPR/M/358 • Brazil  
 
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  instrument of acceptance of the Fifth Protocol on Financial Services. Brazil continues to attach 
great importance to the WTO principle of granting special and differential treatment to developing 
and least developed countries. It  should be emphasized that effective S&D provisions are a major 
step towards levelling the playing field among all WTO Members.  
4.339.   Turning to social matters, we commend the Brazilian Government's determination to 
continue implementing income guarantee policie s, which seek to relieve short -term poverty and 
contribute to the reduction of social inequalities and to social inclusion of the most vulnerable 
segments of the population, thus enabling the beneficiaries to achieve economic emancipation.  
4.340.   Before concludin g, we would like to emphasize that Burundi and Brazil have enjoyed good 
diplomatic and cooperation relations since 1980. Visits by ministerial and technical delegations 
have taken place on both sides and cooperation agreements have been signed in a number of 
areas. My delegation hopes that this relationship will grow stronger, leading to implementation of 
the agreements concluded between our two countries and the development of bilateral trade, the 
more so since the political and business climate in Burundi  is improving.  
4.341.   My delegation wishes Brazil every success in this seventh review of its trade policies.  
PHILIPPINES  
4.342.   Brazil is one of the largest trading partners of the Philippines in South America. Despite the 
geographical distance that separates our two c ountries, we have enjoyed good bilateral relations 
strengthened by our common values and historical ties.  
4.343.   The Philippines and Brazil share common interests in fighting poverty and social inequality. 
Brazil pursues a trade agenda that is geared towards con tributing to its country 's sustainable 
development and to the reduction of poverty and social exclusion. It also seeks trade policies that 
enhance cooperation, and mutual benefits, and eliminate trade distortions that undermine 
opportunities for developing  countries.  
4.344.   The multilateral trading system is a priority in Brazil 's foreign trade policy, which reaffirms 
multilateralism as the way to achieve long -lasting and effective solutions to relevant global issues. 
The Philippines recognizes Brazil 's active par ticipation in the WTO and its commitment to 
preserving and strengthening the rules -based multilateral trading system for an efficient 
international trade and a well -functioning global economy.  
4.345.   Further, as the Philippines and Brazil are located in two of t he most dynamic regions in the 
world, the Philippines recognizes the various opportunities for our two countries to pursue mutually 
beneficial initiatives and activities. A clear indication of the potential for the intensification of our 
ties is our growin g bilateral trade.  
4.346.   The Philippines notes Brazil 's recognition of the important role of Micro, Small and Medium 
Enterprises (MSMEs) in achieving inclusive growth and sustainable development, and looks forward 
to engaging with Brazil in the informal dialogu e on enhancing the participation of MSMEs in 
international trade.  
4.347.   In closing, the Philippines would like to congratulate Ministry of Foreign Affairs Director 
Pedro Miguel da Costa e Silva, Ambassador Evandro Didonet and the entire Br azilian delegation for 
its 7th Trade Policy R eview. Our appreciation also goes to Ambassador Gennady Ovechko of the 
Russian Federation for his insightful comments as discussant and to the Secretariat for preparing a 
comprehensive report.  
REPUBLIC  OF MOLDOVA  
4.348.   The Republic of Moldo va appreciates Brazil 's constructive role in the WTO and its active 
engagement in numerous initiatives, such as the participation of Micro, Small and Medium 
Enterprises in global trade or Investment Facilitation for Development. Indeed, as several of us 
have already mentioned today, the fact that WTO now has a Brazilian Director General is one of 
the proofs of the country 's commitment to the multilateral trading system throughout the 
existence of the WTO principles.  WT/TPR/M/358 • Brazil  
 
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  4.349.   We commend the Brazilian Government for r atifying the Trade Facilitation Agreement, as 
well as for the steps taken to upgrade the single window and its authorized economic operator 
program.  
4.350.   Since its last TPR in 2013, Brazil has faced numerous challenges, as the economy slowed 
down. According to  the economic forecast made by the OECD in June 2017, the economy is finally 
emerging from a severe and protracted recession. We believe this is an opportunity to be seized 
by Brazil to continue the process of deep reforms of its current trade po licy. We c ommend the 
Brazilian G overnment for the reform initiatives aimed at supporting growth undertaken in areas 
such as trade facilitation, production and trade incentives, SMEs support and others that are 
currently under consideration.  
4.351.   We encourage Brazil 's Gov ernment to eliminate the main obstacles for the economic 
competition and to open access to imported intermediate inputs which will facilitate the integration 
and participation of the national economical suppliers in the Global Value Chains. We welcome the 
recent easing of local content rules. However, trade barriers need to be reduced and eliminated.  
4.352.   On the imports side, by protecting the domestic market, import tariffs and local content 
rules reduce the incentives to raise efficiency and invest in innovati on to raise quality or product 
differentiation and it also prevents domestic producers from sourcing from the lowest cost or 
better quality input suppliers. On the export side, failing to zero -rate exports increases producer 
prices, setting Brazilian expor ts at a competitive disadvantage relative to international 
competitors. According to OECD, in 2016, Brazil 's GDP value represented more than 3% of the 
world economy, but its export market share was around 1.2%, a figure that has remained almost 
unchanged i n the past two decades.  
4.353.   In this context, Brazil has a lot to benefit from liberalizing trade flows. We encourage Brazil 
to adopt domestic policies aimed at raising competitiveness, which will boost growth and open the 
economy. The expansion of investment a nd production will also have significant employment 
gains. Liberalizing trade flows will particularly help those at the lower end of the income 
distribution. We encourage Brazil to focus on the simplification of the current complex regulatory 
system, makin g laws transparent and readily accessible and trade -related information easily 
available online.  
4.354.   We see as positive the interest and the involvement of Brazil 's Government in the 
developing of the governme nt procurement area. Moldova 's delegation apprecia tes the ongoing 
Brazil 's negotiations on a MERCOSUR Public Procurement Protocol, as well as in FTA negotiations 
between MERCOSUR and the EU that also include a chapter on public procurement. In this context, 
we believe that Brazil might obtain concrete ben efits from joining the GPA revised Agreement.  
4.355.   Trade relations between the Republic of Moldova and Brazil are currently modest, mainly 
due to the large geographical distance. Nevertheless, we note the increased interest of Brazil 
towards the Eastern Europea n countries and the Republic of Moldova, being in this region, stands 
ready to further engage with Brazilian partners to strengthen and diversify our trade and economic 
relations, particularly in such important areas as agriculture, wine products, textiles  and light 
industry.  
4.356.   We are interested to launch bilateral negotiations with a view to sign a Bilateral Agreement 
on encouragement and promotion of trade and economic relations between Moldova and Brazil.  
4.357.   According to the existing statistics, in 2016 the v olume of imports from Brazil amounted to 
US$3.6 million , whereas the exports amounted to a modest US$20 thousand. Main imported 
products included pork meat, soya products, tea and coffee extracts.  
4.358.   Following the recent bilateral contacts, we look forward to  the organization of a fact finding 
mission by the Brazilian business people to the Republic of Moldova in 2017 or 2018. We plead for 
the attraction of Brazilian investments in the Moldovan economy, especially by the expansion to 
Moldova by Brazilian busin esses present in Ukraine, Romania and the Russian Federation.  
4.359.   We are interested in establishing an exchange of experience in the field of new 
technologies of production of bio -fuel and alternative resources of energy.  WT/TPR/M/358 • Brazil  
 
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  4.360.   Moldova is interested to further advan ce the bilateral legal framework, which includes at 
this moment only 3 agreements. We trust that the Brazilian side will complete, as soon as 
possible, the internal procedures for the entering into force of the important Agreement on short 
visa abolition f or ordinary passports. A move which we firmly believe will increase our tourist and 
therefore economic and trade volumes. As well, the Moldovan side will soon positively reply to the 
Brazilian side on the proposed draft of the Agreement on Investment Facil itation, sent to us last 
year. 
4.361.   I am also pleased to note the Moldovan interest to open its first diplomatic Mission in Latin 
America, a clear priority in this sense being Brazil, which will provide for the full capitalization of 
existing potential of our b ilateral ties.  
4.362.   The Republic of Moldova is confident that the 7th exercise of the trade policy review will 
help Brazil assess the impact of its trade and economic policies on sustainable and robust trade 
growth to the benefit of Brazil itself, as well as of  the world economy.  
4.363.   We look forward to continue further strengthening our bilateral relations with Brazil and we 
wish Brazil the utmost success during this trade policy review cycle.  
KINGDOM  OF SAUDI  ARABIA  
4.364.   As indicated in the Trade Policy Reports prepared  by Brazil and the Secretariat, during the 
review period, Brazil went through deep recession triggered by the fall in commodity prices and an 
inability to make the necessary policy adjustments that contributed to undermining the confidence 
of consumers and  investors. According to the OECD 2017 economic analysis and forecast, 
consumer and business confidence is rising, agricultural exports started to increase in the 
beginning of 2017 and inflation has declined substantially giving strong signals of an ongoin g 
economic recovery.  
4.365.   These positive indicators are certainly due to the Brazilian government trade -related 
reforms undertaken in several areas, including in trade facilitation, Monetary and fiscal policy, 
production and trade incentives, anti -dumping, ene rgy, manufacturing, transport and 
infrastructure.  
4.366.   The Kingdom of Saudi Arabia commends Brazil for these ambitious reforms and trusts that 
it will lead the government to achieve its objectives to integrate into global value chains, raise the 
competitivenes s of domestic products and create jobs.  
4.367.   The Kingdom of Saudi Arabia and B razil are both members of the G 20 and actively 
cooperate on the international scene, in economic, trade and diplomatic fora for the promotion of 
development.  
4.368.   On the bilateral trade f ront, The Kingdom of Saudi Arabia and Brazil enjoy friendly and 
substantive economic and trade relationship. It is worth mentioning that Brazil is the 10th largest 
exporter to Saudi Arabia, and the 8th largest destination of exports from Saudi Arabia. The value 
of two -way trade between the two countries exceeded US$5 billion in 2016.  
4.369.   In 2015, during the visit of the Brazilian Minister of Foreign Affairs and the Minister of 
Agriculture to  Saudi Arabia, both countries ' government officials confirmed the will  to further 
reinforce trade and investment cooperation especially in the field of agriculture, IT, chemicals and 
construction.  
4.370.   Brazil has proved its commitment to support the multilateral trading system and the WTO 
and has demonstrated its desire to conti nue to play an active role in the promotion of free and 
open trade.  
4.371.   In conclusion, I wish the entire delegation of Brazil a very successful Trade Policy Review.  WT/TPR/M/358 • Brazil  
 
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  URUGUAY  
4.372.   During the period under review, Brazil entered a severe recession – one of the most ac ute 
in Brazil's recent history and the deepest since the 1930s – with a cumulative drop in GDP of 8% 
in 2015 -2016, leading to 14% unemployment that impacted some 14  million people.  
4.373.   The recession obviously caused a contraction in domestic demand and imports , which 
affected Uruguay mainly because of a decline in sales to Brazil in various sectors.  
4.374.   Nonetheless, it must be acknowledged that despite the severe recession suffered and still 
being addressed by Brazil, the country did not adopt any restrictive polic ies or measures.  
4.375.   We are struck by the Secretariat's assertion that the Brazilian economy is inward -oriented. 
How does one define such a category? We assume that this is not a feature unique to Brazil. 
Undoubtedly, the larger the economy and its domestic ma rket, the greater the tendency towards 
inward orientation. This may even help to mitigate external shocks.  
4.376.   According to the Secretariat, the factors in support of this assertion are the aggregate 
two-way trade flows in goods and services, which represented  only about 25% of GDP throughout 
2012-2016. Moreover, the share of exporters among Brazilian companies is remarkably small, 
indicating limited integration into international value chains.  
4.377.   Likewise, Brazil has a relatively modest network of preferential tr ade agreements. An 
analysis of the list of preferential agreements shows fairly low preferential coverage of Brazilian 
foreign trade. Most of the agreements providing for preferences have been concluded with 
countries with which there is little trade, as e merges from the Secretariat report. The MERCOSUR 
market is the most consequential, with a coverage of 10.6% of Brazil's total exports.  
4.378.   I really do not know whether this is an indication of home market orientation but it does 
signal that Brazil may lose pre ferential space in major markets in relation to other countries that 
do have trade agreements; this is a trade policy as well as a negotiating policy issue.  
4.379.   Brazil and China are Uruguay's main trading partners. Brazil is a key partner because of 
our natura l partnership and a common project with MERCOSUR. At the same time, Uruguay hopes 
to reach a much higher ranking in Brazil's foreign trade in terms of both exports and imports, 
which seems logical for a natural partner.  
4.380.   It is also relevant to note that the  Brazilian economy is open to foreign investment. It 
remains one of the region's main recipients, and the last six months saw an increase in FDI inflows 
relating to the purchase of Brazilian assets. Brazil has conducted an active investment promotion 
policy and amended the regulations to allow greater participation by foreign investors in areas 
which used to be entirely controlled by domestic or in -state capital. Tendering for airport and port 
infrastructure, air transport and petroleum exploration are a fe w examples.  
4.381.   Uruguay ranks 15th as a destination of Brazilian exports and 26th as a source of Brazilian 
imports. In strong contrast – albeit to be expected – Brazil is usually the top and sometimes the 
second largest destination of Uruguayan exports and the  second largest recipient of imports from 
Uruguay. Such a marked imbalance is obviously in the nature of things, yet somehow we believe 
that Uruguay should occupy a higher position in Brazil's ranking.  
4.382.   Brazil invests heavily in Uruguay, with some 180 compa nies operating in the country and a 
flow of corporate capital fluctuating between 5 and 2.2  million annually, according to data provided 
by the Brazilian authorities.  
4.383.   Overall, Uruguay does not face any major restrictions in the Brazilian market, though the re 
is always some bickering that even I have had occasion to experience in the case of a few specific 
products. In any event, Uruguay remains true to its aim of achieving free movement of goods at 
MERCOSUR level as soon as possible and of providing logisti cal support to strengthen regional 
integration and raise regional competitiveness.  WT/TPR/M/358 • Brazil  
 
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  4.384.   One matter yet to be addressed is to improve the statistics of trade in services, which we 
know is considerable, and this could help provide a clearer picture of trade betwe en our 
two countries.  
4.385.   As regards both investment and trade in services, we hope that the already well -advanced 
negotiation of an agreement on the avoidance of double taxation will boost bilateral trade.  
4.386.   Brazil is a major agricultural exporter with top rank ings in sales of agricultural products, 
which accounted for 35.6% of total foreign sales in 2012 and underwent a very substantial 
increase in 2016, when the share of agricultural exports rose to 41.5% of total exports. 
Liberalization of international agric ultural trade therefore clearly appears to be a trade policy 
priority for Brazil.  
4.387.   Uruguay and the other MERCOSUR members all share the goal of pressing on with the 
reform of international agricultural trade. We will encourage Brazil to keep engaging purpos efully 
and proactively in the agricultural talks in the run -up to Buenos Aires next December, as it 
successfully did in Nairobi in 2015.  
4.388.   Uruguay is also confident that Brazil, in taking over the next pro tempore presidency of 
MERCOSUR, will forcefully driv e MERCOSUR's external negotiating agenda, mainly with the EU, 
and a successful outcome in this regard will be akin to breathing new life into the current 
international trade environment.  
4.389.   Uruguay thanks Brazil for its efforts and hopes that it will benefit from this exercise.  
ZIMBABWE  
4.390.   The Brazilian economy has gone through severe recession during the period under review 
and annual GDP growth deteriorated to 3% in 2013, increasing to 9% in 2014 and declined further 
to negative levels in 2015 and 2016, resulti ng in a rise in unemployment and inflation.  
4.391.   I am pleased to note that in spite of these challenges and the severe economic downturn, 
the country has continued to pursue structural reforms and fiscal consolidation that has 
contributed to the current economi c recovery. Brazil remains attractive to Foreign Direct 
Investment which ranged between 2% and 3% of GDP and fully financed the current account 
deficit during 2015 and 2016. My delegation highly commends Brazil for the quick turnaround of 
their economy.  
4.392.   At Multilateral level, Brazil remains committed to the success of the Multilateral Trading 
System and is an active participant that has contributed significantly to framing the WTO agenda.  
4.393.   Bilaterally, Brazil and Zimbabwe have enjoyed a long history of healt hy economic and 
diplomatic relations. Trade between the two countries is governed by a Most Favoured Nation 
Trade Agreement that came into effect in 1990. Zimbabwe and Brazil also signed a Technical and 
Economic Agreement in 2006 which was recently ratifie d. This has created a sound platform for 
enhanced cooperation between Zimbabwe and Brazil 's respective business communities.  
4.394.   Trade between Zimbabwe and Brazil is however still relatively low compared to that of 
other countries in the region. Total trade wa s US$11 million in 20 13, increased slightly to 
US$11.7  million in 2014, peaked to US$21 million in 2015 and declined to US$12 million in 2016. 
The trade balance has been in favour of Brazil.  
4.395.   Zimbabwe mainly exports  ferrochrome, burley tobacco and some esse ntial oils to Brazil, 
while it mainly imports agricultural machinery and soya bean oil.  
4.396.   Zimbabwe has benefited from Brazil 's "More Food International Programme ", which is a 
Government to Government Programme wherein the Brazilian Government has availed fin ancial 
assistance in the form of a loan, on very concessionary terms, to help African countries mechanize 
their agricultural production. The Loan Facility for Zimbabwe is worth US$98 million and the broad 
goal for the Brazilian Government is to make Africa  self-sufficient with regards to food production 
(food security), in the true spirit of South -South cooperation. Under the first tranche of this WT/TPR/M/358 • Brazil  
 
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  programme, Zimbabwe received agricultural machinery and equipment valued at US$38. 7 million 
from Brazil. We gre atly appreciate this support which we continue to receive from Brazil.  
4.397.   Brazil is an emerging and large economy with bright future prospects. There is vast 
potential for increased trade and foreign direct investment flows from Brazil into Zimbabwe, 
especial ly in the agriculture and mining sectors. Potentia l exports from Zimbabwe include  coal, 
platinum, cotton, ferromanganese and fertiliser and its related products, amongst others.  
4.398.   Let me conclude by wishing the delegation of Brazil a successful Trade Policy Review.  
HONDURAS  
4.399.   We note from the reports that the period under review was a difficult one for Brazil, which 
suffered one of the most severe recessions in its history, accompanied by a steep rise in inflation 
and unemployment as well as fiscal discipline c hallenges.  
4.400.   In spite of this, the country took necessary steps to calibrate monetary policy in order to 
contain inflation, which remained at the upper limit of the tolerance range established by the 
Central Bank of Brazil during most of the review period.  
4.401.   The authorities also took steps towards fiscal consolidation, including measures to improve 
the management of public finances and state -controlled enterprises; adopted a new fiscal regime 
in December  2016 to address structural deficiencies such as the overl y complex tax system and 
federal and sub -federal budget rigidities; and made several constitutional amendments including 
one related to curbing public spending growth.  
4.402.   We further note that Brazil continued to attract sizable FDI inflows, ranging between 2%  
and 3.3% of GDP, which fully financed the current account deficit in 2015 and 2016.  
4.403.   We welcome the fact that Brazil remains committed to the multilateral trading system, in 
which it plays a key role. It is the only Latin American country in the top -ten wo rldwide ranking for 
retail e -commerce, and one of the fastest growing among these main markets, ranking 3rd in 
South America and 51st on UNCTAD's B2C E -commerce Index.  
4.404.   We underscore that Brazil has implemented projects that include a restructuring of the 
national industrial property system, the Foreign Trade Single Window Programme, and steps to 
simplify internal procedures and revisit the legal frameworks that create unnecessary transaction 
costs for the production sector.  
4.405.   Another point worthy of mention i s that services, a key component of overall export 
competitiveness, are still the main contributor to Brazil's gross value added and job creation.  
4.406.   Brazil  remains a major player in the global trade of certain agricultural commodities and is 
a net exporter o f crude oil with one of the greenest energy matrices in the world, as it continues to 
reach near self -sufficiency in primary energy production.  
4.407.   We note that strong market competition continued to prompt further improvements in the 
quality and tariffs of te lecommunication services. We are also aware that in 2016 the 
Administrative Council for Economic Defence (CADE) strengthened merger notification criteria with 
the establishment of notification requirements for associative contracts and published guidelines  
on its antitrust leniency programme, cease -and-desist agreements for cartel cases, completion of 
mergers prior to approval, competition compliance programmes, and horizontal mergers.  
4.408.   As regards bilateral trade, our imports were worth around US$139  million  in 2016. They 
grew at a rate of 4% per year over 2012 -2016 and represented 2% of Honduras' total imports. 
Honduran exports to Brazil amounted to over US$4  million and included machinery, mechanical 
appliances and electrical goods, fish and crustaceans, fr uit, and sugars and sugar confectionery. 
Brazil invested some US$229  million in Honduras in the fourth quarter of 2016.  
4.409.   As indicated in the reports, Brazil has a customs cooperation agreement with Honduras. 
Our respective authorities met on the margins of the Fifth CELAC Summit to discuss points of WT/TPR/M/358 • Brazil  
 
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  convergence between the two countries, including the future of the Economic Commission for 
Latin America and the Caribbean and the positive outcomes of the Joint Commission meeting held 
in Tegucigalpa in November  2016, which addressed topics such as technical support for the 
establishment of two human milk banks in Honduras; capacity building in mental health 
management; strengthening of social policy management; best practices in sustainable forestry 
management; best practices in preventing and eliminating child labour in Honduras; and training 
in agricultural technology generation and transfer methods.  
4.410.   Lastly, Honduras congratulates the Federative Republic of Brazil for its major efforts and 
achievements over the  review period and wishes it every success in this trade policy review.  
ISRAEL  
4.411.   Since its last review in 2013, the Brazilian economy has continued to face both internal and 
global headwinds including overall currency depreciation as well as increased compet ition for its 
exports and terms of trade deterioration that have resulted in a serious recession. GDP, 
consumption and capital have followed a downward trend, while inflation, unemployment, and 
gross and net public sector debt have risen.  
4.412.   In response, the Government has undertaken a host of trade and trade -related reform 
initiatives in several areas aimed at fostering growth, including in trade facilitation, anti -dumping, 
production and trade incentives, energy, manufactur ing, transport infrastructure - while many 
other reforms remain under consideration. Monetary policy interventions have been targeted at 
containing inflation and containing ex cessive short -term volatility. Israel commends all of these 
efforts.  
4.413.   From the TPR reports we note that the framework  and foreign trade regime of Brazil has 
not suffered significant changes over the period under review while it has continued to rely on a 
similar level of tariffs as a source of revenue. This means that its tariffs have remained somewhat 
difficult to ascer tain for importers as there is the MERCOSUR CET, its numerous exemptions and 
the MFN applied tariffs to reckon with depending on the situation.  
4.414.   Turning to bilateral trade, Brazil and Israel have a history of exchange in the technical, 
scientific and techno logical areas. Ever since the 1960s Israeli companies have been involved in 
irrigation projects in Brazil. Nowadays, Brazil is our largest partner in the MERCOSUR with which 
we have a Free Trade Agreement signed in December 2007 and in force since April 20 10. The 
agreement aims to open the market of goods trade, rules of origin, safekeeping, cooperation in 
technical and sanitary norms, technological and technical cooperation and customs cooperation.  
4.415.   Between 2013 -2016, our bil ateral trade averaged over US$ 1.2 billion a year. Israel mainly 
exports to Brazil machinery, tools, chemical products, plastics, fertilisers, pharmaceutical products, 
citruses – among other products and services; Brazil exports to Israel mainly meat, fish and 
seafood, seeds and  grains, a nd dairy products, among other products. Although over the period 
under review, the Brazilian economy has remained notably inward oriented, it has continued to be 
an important economic partner to Israel. We firmly believe that there is still much potential  and 
value yet to be extracted both ways from our trade relation. We believe in this, because nowadays 
there is significant activity by Israeli companies operating in high -value added sectors including 
agro technology, water, food and beverage, cybersecuri ty, cleantech, cosmetics, new m edia, oil 
and gas, and health,  to name a few, and we know first-hand that our companies stand ready to 
scale up their operations under the right conditions in Brazil.  
4.416.   However, it is worth noting that Israeli companies and inv estors continue to find Brazil a 
challenging country in which to do business. We know that Brazil has acknowledged this and we 
would applaud initiatives geared at enhancing its public administration. We commend recent 
initiatives undertaken to address infr astructure bottlenecks, and hope that those medium -term 
interventions are accompanied by further liberal reforms as well.  
4.417.   Israel 's shares the views expressed by others in thinking that there remains scope for 
trade regime improvement in Brazil. We could no te particularly areas around customs clearance 
and valuation, in improving processes that directly affect imports, such as the amount of "red 
tape", paperwork and time involved in importing products into Brazil. We also remain concerned WT/TPR/M/358 • Brazil  
 
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  by certain import p rohibitions and non -automatic licensing instances, as well as issues of 
standards and technical regulations. Another area of concern relates to the complex taxation and 
duties system which our exporters wish it was  more predictable and transparent.  In shor t, we 
would expect that Brazil does more to streamline procedures and help the flows of routine trade 
increase.  
4.418.   In addition, Israel has also been concerned by some trade policies proposed and/or 
implemented recently by Brazil apparently intended to protect  certain industries from foreign 
competition, even if only temporarily. We make reference to this, while noting with attention that 
Brazil is now one of the world 's largest users of anti -dumping procedures, we would encourage it 
to ensure that its anti -dumping processes are applied accurately and fairly and only against 
imported products that in fact do cause or pose a serious threat of causing material injury to 
Brazilian industries.  
4.419.   Moving on to FDI, Israel has appreciated Brazil 's relatively open regime for foreign 
investment. However , we have been impacted by restrictions introduced in 2010 on foreign 
investment, such as those in rural land, and are interested in learning more about the impact of 
recent initiatives and other FDI limitations in services s ectors such as health.  
4.420.   We should acknowledge the importance of Brazil 's agricultural sector given that with the 
fourth -largest agricultural land in the world, it continues to be the world 's third -largest exporter of 
agricultural products, accounting for 5. 1% of total  agricultural exports in 2015. We find it 
important to note that this has been achieved without the use of export subsidies and within AMS 
commitment levels. Other support policies remain though, our encouragement to Brazil as a key 
proponent of  agricultural trade reform, is to lead by example and to do away with using trade 
distorting measures. With regards to SPS, we are interested in hearing Brazil 's responses to 
questions regarding the registration processes under the Plant Protection Departm ent. We 
understand that the Department that is responsible for the licensing of imports of certain seeds to 
Brazil has had thousands of requests outstanding in the last few years. Some of the processes 
affecting us have been opened for over 8 years (for wa termelon seeds) while other processes are 
also still under examination. We would be appreciative of your responses in this regard, 
particularly to learn what are the steps, if any, the Government, through its Ministry of Agriculture, 
has taken in order to address this situation.  
4.421.   Israel would like to welcome and share Brazil 's commitment to the WTO and its 
commitment to the eventual conclusion of the Doha Round negotiations. Although, we have not 
necessarily shared the same views in the WTO at all times, we recognise the constructive  role that 
Brazil plays in the Organiz ation with its active participation and by its tabling of discussion papers 
and proposals. As noted abundantly, in spite of difficulties, today Brazil is one of the world 's 
largest economies a nd as such, Israel considers it important that it leads by example on 
international trade and investment policies.  
4.422.   To conclude, we would like to wish Brazil every success in it s path to recovery and in this 
seventh Trade Policy Review.  
PAKISTAN  
4.423.   Since its p revious Trade Policy Review in 2013, Brazil 's economy slowed down and entered 
a recession in 2015 -16. Annual GDP growth dropped from 3% in 2013 to 0.9% in 2014 and then 
went into negative territory in 2015 and 2016 with consumption and gross fixed capital formation 
following a similar trend. The Brazilian economy is projected to enter a gradual recovery in 2017, 
but growth is expected to remain weak for a prolonged period.  
4.424.   The Brazilian economy remains inward oriented, with aggregate two -way trade in goods  
and services representing about 25% of GDP throughout the review period. Brazil continued to 
attract sizable FDI inflows, ranging between 2% and 3.3% of GDP, which fully financed the current 
account deficit in both 2015 and 2016.  
4.425.   Pakistan appreciates that  Brazil encourages inward FDI, which is prevalent across the 
economy. There are several sector -specific limitations (e.g. air transport, financial institutions, 
health services, rural land acquisition, broadcasting and publishing media, fishing, mining, an d WT/TPR/M/358 • Brazil  
 
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  hydrocarbons exploration). During the review period, certain healthcare services were further 
opened to FDI.  
4.426.   Pakistan takes note that Brazil remains committed to, and an active participant in, the 
multilateral trading system. It now also grants preferen tial treatment to services and service 
suppliers from least developed countries (LDCs).  
4.427.   It is commendable that Brazil attaches importance to making laws transparent and readily 
accessible; additional efforts have been undertaken to make trade and trade -related information 
available online.  
4.428.   The tariff remains one of Brazil 's main trade policy instruments. Brazil applies the 
MERCOSUR Common External Tariff (CET). It grants at least most -favoured-nation (MFN) tariff 
treatment to all trading partners. Brazil 's 2017 applied MFN tariff is entirely ad valorem  and 
comprises 19 bands, with rates ranging from zero to 55%. The simple average applied MFN tariff 
declined slightly from 11.7% in 2012 to 11.6% in 2017; for dutiable lines, the decline was from 
12.7% to 12.6 %. The gap between the average bound and applied rates is some 18.5 percentage 
points.  
4.429.   It's worth mentioning that during the review period, Brazil took steps to upgrade its single 
window and its authorized economic operator program. Brazil maintains a sys tem of automatic and 
non-automatic licenses for imports of various products, regardless of their origin.  
4.430.   Brazil 's intellectual property rights (IPR) legislation covers all the major aspects covered by 
the TRIPS Agreement. In some areas, including copyrigh t, rights exceed the minimum terms laid 
down in the Agreement. Protection was further enhanced with the expansion of international 
commitments, and the introduction of penalty provisions for infractions in certain areas.  
4.431.   Brazil remains a major player in th e global trade of certain agricultural commodities. 
During the review period, the sector 's share in gross value added (5.5% in 2016) remained 
relatively stable. The average MFN tariff for agricultural products at 10.2% remains unchanged.  
4.432.   Brazil, a net exp orter of crude oil with one of the greenest energy matrixes in the world, 
remains nearly self -sufficient in primary energy production.  
4.433.   Services, a key component of overall export competitiveness, remain the main contributor 
to Brazil 's gross value added ( 73.3% in 2016) and job creation. Pakistan appreciates that during 
the review period, Brazil 's GATS commitments were improved and three of Brazil 's RTAs now 
contain WTO -plus services commitments.  
4.434.   Strong market competition continued to lead to further impro vements in the quality and 
tariffs of telecommunication services. Initiatives were undertaken to address transport and related 
infrastructure bottlenecks. Foreign entry into wholesale trade services is generally allowed, 
whereas commercial presence in reta il services and franchising remains unrestricted.  
4.435.   Pakistan and Brazil enjoy very good bilateral relations. Both are fellow friends of 
Investment facilitation for development (FIFD). Brazil 's exports to Pakistan have jumped 
significantly from US$177 millio n in 2011 to US$298 million in 2015, whereas Pakistan 's exports to 
Brazil remain at around US$71 million.  
4.436.   We want to specifically appreciate the positive role of Brazil Mission led by Ambassador 
Evandro Didonet in the multilateral system.  
4.437.   In the end, we would like to wish Brazil a fruitful and successful TPR.  
PLURINATIONAL STATE OF BOLIVIA  
4.438.   First of all, we would like to welcome the distinguished delegation of Brazil, which has 
come to present this trade policy review, thus bearing further witness to its c ountry's commitment 
to the multilateral trading system.  WT/TPR/M/358 • Brazil  
 
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  4.439.   For the Plurinational State of Bolivia, Brazil is not only an important trading partner but 
also a country with which Bolivia shares a history of fraternal relations. This is why we have been 
closely following Brazil's difficult circumstances in recent years, particularly over the period since 
its preceding trade policy review in 2013.  
4.440.   We have been carefully monitoring the economic crisis that hit Brazil and acknowledge its 
efforts to lift itself out o f the crisis in order to resume its role as Latin America's driving force. We 
hope that, as stated in the Secretariat and Government reports, Brazil will get back on the path to 
growth in 2017 with better prospects for the coming year.  
4.441.   We do not have any s pecific questions to put to Brazil at this time, because, as has 
historically been the case, we hope to address our concerns through our smooth bilateral relations 
or, in the near future within MERCOSUR, a regional process that Brazil will soon be joining as a full 
member.  
GUATEMALA  
4.442.   Guatemala commends the WTO Secretariat for its meticulous research, as reflected in the 
report drawn up for this review. The report provides broad and comprehensive coverage of the 
economic environment and the progress made by B razil in implementing its trade policies over the 
last two years. We also thank the Chairperson of the Trade Policy Review Body for her introductory 
statement and the discussant, Ambassador Gennady Ovechko, Permanent Representative of the 
Russian Federatio n to the WTO, for sharing his detailed analytical overview with us at this 
meeting.  
4.443.   Relations between Guatemala and Brazil are based on friendly ties and mutual support. At 
December  2015, annual trade flows between our two countries exceeded US$245  million . 
Guatemala's leading exports to Brazil are insecticides, fungicides, disinfectants, lead, natural 
rubber and products of the chemical industry. Its main imports from Brazil include machinery and 
mechanical equipment for electrotechnical use, plastics and plastic products, vehicles and 
transport equipment. In the WTO, both countries are members of the G -20 and the Cairns Group, 
two coalitions of WTO Members that have deepened their exchanges of views in a move to achieve 
a balance in international agricultu ral trade.  
4.444.   Bilateral trade has remained stable, with a gradual increase over the past decade, but we 
believe that there is significant potential for further expanding our trade in goods and services.  
4.445.   With respect to the current review of Brazil's trade pol icies, we can see that major reforms 
were carried out during the review period, aimed at buttressing growth in areas such as trade 
facilitation, anti -dumping, and production incentives. Another positive aspect is Brazil's openness 
to foreign investment, as  reflected in the opening up of new sectors of its economy and its 
strengthening of the regulatory framework. As regards trade facilitation, in addition to ratifying the 
Trade Facilitation Agreement Brazil took steps to upgrade its single window and author ized 
economic operator programme.  
4.446.   These positive changes notwithstanding, Brazil has experienced considerable difficulties 
over the past two years as a result of a major economic slowdown and a severe recession in 2015 
and 2016 – one of the most acute in t he country's recent history. It is a significant challenge for 
Brazil to implement the necessary public policies and further strengthen the institutional 
framework in order to place its economy back on the path to growth.  
4.447.   We acknowledge Brazil's efforts in  forging ahead with the implementation of its trade 
policies and hope to further strengthen our trade relations, both bilaterally and at the regional 
level. We wish the Brazilian delegation a successful conclusion to its country's trade policy review.  WT/TPR/M/358 • Brazil  
 
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  5  REPLIES BY THE REPRESEN TATIVE OF BRAZIL  AND ADDITIONAL COMME NTS 
5.1.  I want to thank you and the Secretariat for the organization of the meeting and for promptly 
sending us all the documents.  
5.2.  I also want to thank, once again, Ambassador Ovechko for his presentatio n.  
5.3.  My colleagues from the Brazilian delegation made an effort to answer all the written 
questions we received. Apart from follow up questions that arrived in our mailbox yesterday, I 
believe we have answered practically everything. And what was left unans wered will be replied to 
in the coming days.  
5.4.  We took careful note of all statements made on Monday. Taken as a whole, they were a very 
comprehensive appraisal of bilateral relations, of our participation in the WTO and of our trade 
policy. We are grateful  for the interest with which Members participated in our TPR.  
Economic and Business Environment  
5.5.  We were very encouraged by the many expressions of confidence in Brazil 's economic policies 
and reform agenda. We thank all Members for their trust in our abili ty to overcome the recession 
and to get back on the track of sustainable development. Brazil is committed to maintaining its 
solid macroeconomic fundamentals.  
5.6.  Several Members mentioned their shared commitment with Brazil to overcoming poverty and 
inequalit y. Even though I did not mention this central element of Brazilian domestic and foreign 
policy in my statement on Monday, I want to stress that it remains a fundamental objective for us. 
There will be no sustainable growth and development for Brazil if we do not continue to address 
social de velopment needs. The Brazilian G overnment is working to improve  the focus of the Bolsa 
Familia program me and its mechanisms to make it more efficient in generating the inclusion of the 
most vulnerable sectors of our popu lation. The Government is also attentive to the need to 
continue to increase access to basic services, such as water, sanitation, electricity and quality 
education.  
5.7.  Many Members picked up on the a ssessment in the Secretariat 's report that Brazil is a mostl y 
inward -looking economy, based on the fact that trade in goods and services account for 25% of 
our GDP. However, as I mentioned  on Monday , the figure for some other large economies is not 
very different from ours, and nobody would argue that they are inwa rd-looking economies.  
5.8.  Moreover, Brazil stands out as being very open to foreign direct investment. As I mentioned 
on Monday, if we take only the sector of infrastructure, we have recorded inflows of US$11 billion 
in 2017 alone. Several Members called our attention to Brazil 's poor performance in the World 
Bank's Doing Business Index. Shortcomings and/or complexities in our tax system, regulatory 
frameworks, bureaucracy, infrastructure and other relevant topics for the business environment 
were highlighted as impediments for our competitiveness in the international market. He re, I can 
only repeat that the G overnment is committed to tackling these problems, which we describe as 
part of the so -called "Brazil cost ". I gave several concrete examples for that in my initial 
statement.  
5.9.  At the same time, in regard to the assessments contained in the World Bank "Doing Business 
in Brazil " publication, I take this opportunity to note that it strikes us as odd that notwithstanding 
the evident changes and advances we hav e made in the past few years in certain issues, our 
rankings in certain indicators remain the same. We are looking closely at the methodology that 
was used and will approach the World Bank with suggestions on what may need to be reviewed.  
5.10.   I think that it is important to insist on the fact that – whatever the possible difficulties for 
foreign companies to do business in Brazil – the challenges they face are exactly the same ones 
that affect Brazilian companies. Shortcomings in our business environment are n ot a barrier 
against imports or foreign investment in Brazil.  
5.11.   I also want to stress that some of the reforms that were mentioned by Members, especially 
those related to our tax structure, depend on negotiations that include our municipalities, states WT/TPR/M/358 • Brazil  
 
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  and C ongress, among other stakeholders. It is a complex negotiation that in a democracy such as 
ours will take time to complete.  
5.12.   In any case, the Government is considering a series of measures to simplify and streamline 
procedures, such as reducing the time nee ded to open and close businesses or to pay taxes.  
5.13.   It is important to note, nonetheless, that the taxes that are levied on the sale or resale of 
goods are, as a rule, non -cumulative and the actual tax burden is the same for domestic and 
imported goods. Ther e is no discrimination.  
Trade Policy  
5.14.   We were pleased that many Members highlighted the fact that, despite challenging 
economic circumstances, Brazil has not resorted to protectionist policies.  
5.15.   On the contrary, as I mentioned in my initial statement, there  is growing consensus, 
especially in our private sector, that Brazil needs to enhance its participation in international trade 
and investment flows.  
5.16.   A number of Members highlighted their bilateral/regional trade negotiations or exploratory 
dialogues underw ay with Mercosul, while others expressed an interest in starting free trade 
negotiations with our bloc. We are encouraged by these remarks. Together with our Mercosur 
partners, Brazil will continue to implement a robust bilateral/regional negotiations agen da, as a 
complement to our commitment to the multilateral trading system.  
5.17.   We were also very pleased that Members recognized Brazil 's commitment to the WTO 's 
rules-based multilateral trading system, as well as our engagement to ensure a su ccessful MC 11. 
Last Monday, as the representative of the European Union mentioned, we co -sponsored a proposal 
related to domestic support in agriculture, public stockholding and cotton. We hope that it can 
contribute to our joint efforts. As Members know, Brazil also prese nted other papers on SPS, 
investment facilitation, SMEs and e -commerce.  
Sectoral Issues  
5.18.   Repeated references were made to our tariff structure and to the differences between our 
bound and applied tariffs. I want to confirm that, as stated in our written ans wers to several 
Members, we always respect the bound levels at the WTO.  
5.19.   In what regards the changing tariffs in Mercosur and the supposed complexity of the 
system, I would note that many of the so called exceptions are used to lower or eliminate 
provisiona lly tariffs for certain products . So it is something positive for exporting Members.  
5.20.   Many Members referred to our recourse to trade remedies. On this matter, I would like to 
make two comments. First, our investigating authorities are very thorough in their  compliance with 
the WTO Agreements and have made successive efforts at modernizing our legislation. The second 
comment concerns the level of activity. The number of petitions that were presented by our 
private sector reached its peak in 2011 and has witne ssed successive reductions since then. We 
initiated 67 investigations in 2013 (including new investigations and revisions) and only 24 in 
2016. In terms of application of measures, the numbers went down from 43 in 2013 to 29 in 2016.  
5.21.   Another issue that cam e up repeatedly on Monday relates to our non -automatic licensing 
system. As I indicated, our National Trade Facilitation Committee is not only addressing the 
implementation of the WTO TFA agreement, but has created a Working Group to address the need 
to decrease the number of and to simplify procedures related to licenses for imports and exports. I 
would also like to note a specificity of the Brazilian system: the number of products currently 
requiring licensing is determined by different rules and regulati ons applying to each agency that 
authorizes imports, exports or transit operations. Contrary to what happens in the case of many 
other Members, we control through our non -automatic licensing system issues such SPS 
requirements, or requirements for medicati ons. This partially explains the high number of 
non-automatic licenses. This situation will be simplified by the Single Window for imports and 
exports.  WT/TPR/M/358 • Brazil  
 
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  5.22.   In the area of standards, technical, sanitary and phytosanitary requirements, the regulatory 
authoritie s in Brazil are committed to increased transparency as well as the adoption and 
promotion of Good Regulatory Practices, following the OECD recommendations.  
5.23.   More than 60% of the technical regulations published and notified by Brazil during the 
period of 201 3-2017 foresaw 60 days for public consultation and comments. However, the 
processing time for notifying regulations, which ranges from the time the regulation is published 
domestically to the time it appears in the WTO website, has lasted an average of 11 days. This is 
why it appears from the statistics that most Brazilian technical reg ulations allow for less than 
60 days for manifestations. A similar situation is observed for SPS notifications. It should be 
stressed that comments from WTO M embers have been  considered by Brazilian authorities even 
after the closure of the pre -defined period for receiving them.  
5.24.   Inmetro, as the Brazilian TBT Enquiry Point, will make an effort to persuade domestic 
regulators to allow for a 75 -day period for public consultation s, whenever possible and feasible. 
This longer period would account for the processing time of notifications and thus allow for a de 
facto 60 days for international comments for the majority of technical regulations.  
5.25.   A similar endeavour  is carried out by t he Brazilian Ministry of Agriculture and the Brazilian 
Health Regulatory Agency, the enquiry points for the SPS Agreement. Both institutions are making 
an effort to meet the suggested comment period for notifications. Also, it is worth noting that they 
have been jointly working in national and international technical forums, including Codex 
Alimentarius committees and MERCOSUR working groups, so as to promote convergence between 
institutions and the use of international standards.  
5.26.   And I would like here to p ause and thank the support lent by M embers to the election of 
Guilherme Costa, from Brazil, as Chairperson of the Codex Alimentarius Commission.  
5.27.   Regulatory agencies in Brazil have striven to implement reg ulations that are more 
evidence -based, effective, an d transparent, and seeking convergence with international best 
practices and standards. A good example is in the pharmaceutical sector: the Brazilian Health 
Regulatory Agency was recently admitted as a member to ICH, the International Council for 
Harmoniza tion for Pharmaceuticals. This admission is proof that the Brazilian technical 
requirements for medicines have been recognized as a reference by international partners. The 
Brazilian Government has been committed to ensuring the access to medicines that ha ve quality, 
at affordable prices - and paramount to this mission is the existence of a strong, active and 
constantly evolving Health Regulatory Agency.  
5.28.   Many Members also raised the issue of agricultural domestic su pport in Brazil. But I insist: 
despite a b road array of support program mes, actual expenditures are very low. Some Members 
called on us to lead by example, considering that we are one of the main leading agricultural 
producers and exporters. We believe we are doing just that. Total expenditures un der Articles 6.2, 
6.3 and 6.4 program mes amounted to US$ 3.03 billion in 2015, which was equivalent to 2% of the 
VoP. And I want to remind Members that we are completely up to date with our notifications.  
5.29.   Another area that was the object of many comments wa s the services sector. Between 2003 
and 2016, the services sector participation in the GDP grew from 65.8% to 73.3%. Financial 
services, distribution services, construction services, telecom services and IT Services are among 
the most dynamic services acti vities of the economy. Wholesale and retail services, for example, 
accounted for 12.8% of GDP in 2016. Regulatory reforms also bolstered more competitiveness and 
efficiency in the Telecom sector over the last few decades: three of the four main telecom 
suppliers in Brazil are controlled by foreign capital. It is also worth mentioning that some of the 
infrastructure regulatory agencies joined the OECD 's Network of Economic Regulators (NER), with 
the objective of reducing red tape and regulatory burden.  
5.30.   In the banking sector, the transition from a high to a low inflation context led to important 
transformations. Banks became more efficient in financial intermediation and in generating results. 
Not by coincidence, Brazil represents an important market in terms  of revenues and profits for 
foreign banks established in the country. It is important to remark that all foreign financial 
institutions that want to establish in Brazil and that fulfil our prudential requirements are operating 
in our country.  WT/TPR/M/358 • Brazil  
 
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  5.31.   To close, I  would like to mention that Brazil 's commitment to the protection of intellectual 
property rights as provided by the TRIPS Agreement remains unchanged. Policies aiming at 
streamlining procedures and increasing the efficiency of the National Institute of In dustrial 
Property are currently under way, through the use of electronic filing systems, elimination of 
unnecessary bureaucracy and enhancement of international cooperation. Furthermore, 210 new 
patent and trademark examiners were hired in the last 12 mont hs. This has enabled the Institute 
to initiate the reversal of the trend of the backlog in patent and trademark applications, improving 
the general business environment in Brazil and creating incentives for innovation by national and 
multinational companie s operating in our country. We also continue to increase the effectiveness 
of intellectual property rights ' enforcement through actions by customs and police authorities, as 
well as international cooperation, especially in border regions. This is underline d by the number of 
enforcement actions and the value of illegal products seized by Brazilian authorities, in spite of the 
challenges posed  by our large continental area. Thank you.  
DISCUSSANT  
5.32.   I would firstly like to appreciate Mr. Pedro Miguel da Costa e S ilva, Director of the Economic 
Department of the Ministry of Foreign Affairs, as well as Ambassador Evandro Didonet, and the 
Brazilian delegation as a whole for their enthusiasm and effort that have turned this review into an 
extremely valuable exercise fo r the country and for the WTO M embership.  
5.33.   It is a pleasure to say that Brazil has been largely recognized for its bold and decisive action 
to fix the economy and make it grow again. It was a common point that Brazil did address ongoing 
upheavals with a set  of multi -faceted reforms and is expected to yield results. The major indicators 
suggest that the Brazilian recovery is gaining strength and contributes to a better global outlook. If 
this momentum is sustained, the national economy could quite soon delive r positively on growth, 
jobs and fiscal stability.  
5.34.   It has been frequently emphasized that Brazil, despite certain setbacks, continued to adhere 
to rule -based free trade. It has been playing an active role in strengthening the WTO as an 
institutional pillar  and equip ed it with additional advanced tools in support of cross -border 
commerce. It is clearly exemplified by Brazil 's recent adoption of Trade Facilitation Agreement and 
the Fifth Protocol on Financial Services and, moreover, extra access provision in services for LDCs.  
5.35.   Brazil was also praised for its leadership in shaping and promoting negotiations agenda. As 
it was a case previously, the country keeps tabling valuable initiatives in response to the current 
challenges to trade. They range from the tra ditional stuff like agricultural or fisheries subsidies and 
stretch to new frontiers - investment facilitation and electronic commerce.  
5.36.   Brazil 's review has quite expectedly commanded a high degree of interest in the WTO. In 
many ways, it stems from the fact that Brazil is the largest source and destination for goods and 
investment flows in Latin America. Its economic performance often has  a felt impact on its 
partners.  Therefore, it comes naturally that the review provoked a real tide of questions aimed at 
highlighting the areas for improvement.  
5.37.   In this vein, customs administration and border control is cle arly on the radar. A number of 
Members lamented the wide gap between bound and applied tariff. Magnitude of antidumping 
measures and other trade defences  hurdle the trade while their legitimate grounds are not always 
impeccable. Non -automatic import licensing that affects half of the incoming merchandise adds up 
to the difficulties. In view of inquiring delegations, it is worth to explore possibilities in making 
border procedures predictable, low cost and user -friendly. Particular importance was given to 
further development of a single window and customs digitalization.  
5.38.   On the inner side, the focus was made on a highly complicated tax system. Foreign 
compan ies recurrently quote it as  an obstacle to their business activities. There is a loud call to the 
Brazilian Government to address the matter through streamline and simplification. The other 
problems comprise insufficient protection of the intellectual prop erty and subsidies to agricultural 
producers.  
5.39.   Members also repetitively touched upon region al integration. Brazil is well -known for 
promoting RTAs transparency and alignment with the WTO rules. At the last ministerial in Nairobi, WT/TPR/M/358 • Brazil  
 
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  it successfully pushed fo r a systemic dialogue on regional trade deals. In light of this, many 
delegations urge Brazil to serve as a force for change at MERCOSUR that is the biggest customs 
alliance in Latin America. The bloc still has multiple derogations in its common external t ariff that 
are advisably to be reduced to the minimum.  
5.40.   The general m essage from the review is that M embers are going to pursue all the possible 
avenues to expand their economic and trade cooperation with Brazil. They want to see Brazil as a 
dynamic and vi brant partner in building the value chains and taking advantage from the 
international division of labour . 
5.41.   I am delighted to state that the interventions and questions were met by Brazilian 
delegation with careful attention and thoughtful response. I do be lieve that the lessons learnt from 
the exchange we had these two days would serve as a good basis for Brazil 's homework and feed 
in our joint efforts to build up cooperation with the country.  
5.42.   I would like to conclude my statement by congratulating Brazil with the successful review. It 
was a truly good account of  the Brazilian economy and the G overnment 's able policies to withstand 
the headwinds. I wish my Brazilian friends to keep up the pace of progress and continue to 
navigate skilfully  the choppy waters  of today 's economic realities.  
BENIN 
5.43.   The delegation of Benin welcomes the efforts, initiatives and reforms undertaken by the 
Brazilian authorities and competent institutions with a view to establishing a new framework for 
conducting their economic and tra de activities.  
5.44.   We underscore Brazil's fiscal consolidation reforms, the tightening of the Central Bank of 
Brazil's monetary policy, the promotion of investment and innovation, the development of 
renewable forms of energy, and so forth.  
5.45.   Brazil pursues its t rade liberalization policy and remains an emerging actor in the global 
economic arena and the multilateral trading system. It is also a well -known supporter of open, 
rules-based trade, promoting the least developed countries' integration into the multilate ral 
trading system through its much appreciated contribution to production and export 
capacity -building and by granting preferential conditions to their service suppliers.  
5.46.   Brazil remains convinced that it is more vital than ever in the current internationa l economic 
circumstances to strengthen the negotiating arm of the WTO so that the Eleventh Ministerial 
Conference in Buenos Aires delivers positive and tangible outcomes prioritizing development, in 
accordance with the Doha Development Agenda.  
5.47.   The delegati on of Benin shares this view of our WTO work in the run -up to the Eleventh 
Ministerial Conference. Like Brazil, it is convinced that effective S&D provisions for the developing 
countries in general and the LDCs in particular are a major step towards levell ing the playing field 
among all Members. This is the surest way to ensure that trade will help to achieve the 
Sustainable Development Goals (SDGs).  
5.48.   The delegation of Benin highly appreciates Brazil's constructive and effective contribution to 
the trade neg otiations on cotton, taking into account the concerns and priorities of LDC, and in 
particular the C -4, cotton producers and exporters.  
5.49.   On the bilateral front, Benin has excellent economic, trade, political, social and cultural 
relations with Brazil.  
5.50.   The t wo countries are linked by the bonds of history. The southern part of Benin has traces 
of Brazilian architecture, Afro -Brazilian cultural features, and names pointing to Brazilian ancestry. 
The Maison du Brésil  in Ouidah, a city some 30 km away from Cotono u, with its emblematic "Door 
of No Return", today serves as a bridge between Brazil and Benin. There are Beninese cultural 
features in Brazil as well, such as the Casa do Benin in Salvador de Bahia, "akara" and other 
choice foods, music, religious rites (s uch as vodun, or voodoo) and the Yoruba language, which is 
taught in convents.  WT/TPR/M/358 • Brazil  
 
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  5.51.   The delegation of Benin welcomes these age -old links between the two countries, as 
evidenced by Brazil's high -quality technical and financial assistance to the Republic of Benin , 
particularly in the framework of Aid for Trade, and encourages it to continue along this successful 
path. 
5.52.   It congratulates His Excellency Mr  Evandro Didonet, Ambassador and Permanent 
Representative of Brazil to the WTO, and his entire team for their cons tructive engagement in the 
multilateral trade negotiations and their considerate interaction with the other delegations, in 
particular those of the C -4. 
5.53.   The delegation of Benin thanks the WTO Secretariat and the Government of Brazil for the 
highly informat ive reports prepared for the current review of Brazil's trade policies.  
5.54.   Benin wishes Brazil every success in this trade policy review.  
CAMBODIA  ON BEHALF  OF THE LDC GROUP  
5.55.   We have learnt that the unfavourable  economic situation for Brazil is due to the 
consequences of the 2008 financial crisis and the fall in commodity prices as well as the high 
indebtedness level and country mandatory policy tightening.  
5.56.   Facing this situation, Brazil has engaged in reform which has started to be fruitful notably in 
terms of structural changes and fiscal consolidation . In addition, in order to support and 
strengthen overall activity, the Government is implementing an agenda to promote productivity 
and competitiveness. The ambition is to further open the economy  and the country  to international 
trade, reduce bureaucracy, attract investment and enhance innovation and productivity.  
5.57.   We appreciate that the Government is seeking to improve the business environment, boost 
the productivity of industry and improve working conditions. As  part of its openness and its aim for 
better integration into world trade, in this regard we have observed that Brazil is a strong 
supporter of the multilateral trading system and of the role of the WTO.  
5.58.   The LDC Group looks forward to Brazil playing a lead ing and constructive role for ensuring 
development -oriented results in line with the DDA 's objectives, in particular in support of the 
concrete initiatives for LDC s.  
5.59.   The LDC Group welcomes Brazil 's view on domestic support and support to the C4 initiative  
on cotton which the LDC Group hopes can be deliverable for MC11.  
5.60.   The Group highly commends Brazil for implementation of the revision of the granting of 
preferential treatment to services and service supplier s from LDC s. The LDC Group welcomes the 
focus be ing put on the supply of the se services through commercial presence.  
5.61.   However, we hope that Brazil will also find ways to respond to LDC interest s in addressing 
regulatory barriers to LDC professionals and other area s of interest to LDC service suppliers, f or 
example similar to what India and Turkey have done in their notification.  
5.62.   The Group also notes that Brazil continues to attach  great importance to the WTO principle 
of special and differential treatment to developing and least developed countries. S&D t reatment 
provision s are important step s towards levelling the playing field amongst Members.  
5.63.   Finally, under the preferential and extra-regional  agreement s that Brazil has developed with 
different groups of countries, the LDC Group notes that an agreement b etween Mercosur and the 
Southern African Customs Union has recently entered into force. There are some LDCs in SACU 
and this is a very good sign and we hope that a broad partnership between Brazil and LDCs can be 
developed in the context of South -South tra de, such as under the  global system of trade 
preferences among developing countries created in 1989.  
5.64.   The LDC Group congratulates Brazil for a successful Trade Policy Review.  WT/TPR/M/358 • Brazil  
 
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  MOROCCO  
5.65.   The delegation of the Kingdom of Morocco would like to start by thanking all the speakers 
and welcoming the Minister and the Permanent Representative of Brazil. Morocco also wishes to 
congratulate the Brazilian delegation as a whole for this excellent review, which reflects its 
exemplary commitment and its important and constru ctive role in the bilateral and multilateral 
negotiations. On behalf of Morocco, I also thank the entire WTO Secretariat for their work, which is 
fundamental to the smooth running of this review.  
5.66.   Morocco has questions regarding the procedure for registerin g labels and foreign 
establishments authorized to export animal products to Brazil through the DIPOA/SDA/MAPA 
PGA-SIGSIF electronic system, which is highly complex. Morocco requests the Brazilian authority 
concerned to provide it with a document describing  the procedure in question. As a user of the 
system, Morocco's competent sanitary and phytosanitary authority, the National Office for Food 
Safety (ONSSA) asks whether it can access the PGA -SIGSIF for the purposes of managing 
Moroccan establishments regist ered in the system. It points out that attempts to register the 
ONSSA on the Ministry of Agriculture's website have proved unsuccessful. We would suggest 
designating a contact point for ONSSA -Morocco with a view to arranging targeted circulation of 
informa tion or even training concerning the PGA -SIGSIF.  
5.67.   Morocco thanks Brazil once again for its extensive work and wishes it every success in its 
seventh trade policy review.  
MOZAMBIQUE  
5.68.   My delegation aligns itself with the statement presented by  Cambodia on beha lf of the LDC 
Group and commend s Brazil,  member of the community of Portuguese speaking countries with 
which Mozambique shares common (stories) and cultural traits, investment and trade relations for 
the commitment to the transparency exercise that today w e are all witnessing.  
5.69.   Mozambique and Brazil have for long developed their relations aiming at mutual benefit. 
Indeed, Brazil has assisted Mozambique to force a productive capacity in areas of minor resource; 
agriculture, value addition, education.  
5.70.   Mozambiq ue is an LDC country and is one of the beneficiaries of the preferential market, 
access granted by Brazil  and the services (wafer) afforded to LDCs for which we 'd like to express 
our gratitude.  
5.71.   As we can see  through the report, Brazil still faces enormous  challenges. Even though we 
commend the Brazilian G overnment for the tremendous effort deserted in view to a better 
economic situation, improved business environment despite the current economic trend and still is 
a result of the global economic and financ ial slowdowns in the current global environment 
somehow bringing also uncertainties.  
5.72.   We note with satisfaction all the ef forts devoted by the Brazilian G overnment that have 
allowed processes in progress of reforms implementation, as well as good prospects aiming at 
forcing development. These are encouraging positive results from the reformed called out.  
5.73.   The review of trade policy is an extremely important exercise and demonstrates the 
country 's commitment in maintaining itself as a strategic multilateral an d bilateral partner by 
increasing transparency.  
5.74.   Bilateral trade relations between Mozambique and Brazil are governed by the principles of 
our community to which both countries and members are committed to and by principles of the 
multilateral trading syst em. 
5.75.   It should be noted that the two countries have for long developed in substantive and 
friendly council, trade evolvement and trade movement.  
5.76.   We are confident that Brazil will continue to succeed in the implementation of reforms and 
national development policies encouraged by its strong commitment to regional initiative, WT/TPR/M/358 • Brazil  
 
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  multilateral engagement bilateral which actively contributes to the regional and global trading 
system. The prospect s of cooperation between our two countries are very promising as we are  
working in order to give greater dynamism  to the cooperation project not only in the economic 
sphere but in social , cultural and many others.  
5.77.   To conclude, we wish Brazil a successful Trade Policy Review.  
EUROPEAN  UNION  
5.78.   Let me first thank the Brazilian d elegation for the comprehensive overview of the recent 
economic developments in Brazil presented on Monday as well as this morning that provided a 
good opportunity to gain a better understanding of the main developments occurred during the 
period under revie w and to assess the trade and investment climate based on the comments of a 
large number of Brazilian trading partners.  
5.79.   The EU also appreciates the timely and exhaustive replies provided to the EU questions by 
Brazil as well as the revised replies  that we  are still examining .   
5.80.   We have submitted a few follow -up questions aiming at receiving further details on SPS 
measures and we look forward to receiving the replies in due course.  
5.81.   Like stated by Brazil this morning, the EU also hopes that the proposal on d omestic support 
in agriculture, co -sponsored together  and circulated on Monday and to be discussed later today, 
will contribute to the successful outcome of MC11.  
5.82.   Like the discussant, t he EU is confident that this review will help Brazil to adopt the 
appro priate measures in order to overcome some of the issues that are considered by several 
Members as a concern.  
5.83.   In this regard , the EU would like to underline once more its concerns on the overly complex 
and discriminatory taxation regime and on the complex business environment and burdensome 
regulatory regime.  We have taken good note of the plans foreseen in the near future from the 
statement today.  
5.84.   In conclusion, the EU would like to thank Brazil for its serious and constructive engagement 
in this Trade Pol icy Review.  
UNITED  STATES  
5.85.   The United States would like to again express our thanks to the delegation of Brazil for the ir 
preparation and constructive engagement in this Trade Policy Review.  
5.86.   We also thank Minister da Costa  e Silva and Ambassador Ovechko for  their clear and 
informative discussion here. And, as always, the Secretariat for its detailed and excellent report.  
5.87.   We thank the delegation also for the answers provided to our written questions. We 
submitted a few follow -up questions seeking clarificatio ns in the areas of government 
procurement, intellectual property rights and antidumping. We look forward to receiving written 
replies.  
5.88.   The United States values our important trade relationship with Brazil and our mutual 
engagement in the many other friend ly and active diplomatic connections. We followed with great 
interest news of the country 's recent economic challenges, reforms and determination to move 
forward.  
5.89.   As mentioned on d ay one of this TPR, we would very much welcome efforts to improve 
Brazil 's trade and investment regime, specifically with respect to liberalizing tariffs which could 
include looking more seriously at joining existing initiatives like the Information Technology 
Agreement, eliminating local content requirements and enforcing intelle ctual property rights.  WT/TPR/M/358 • Brazil  
 
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  5.90.   The United States stands ready and willing to engage constructively on these matters and 
we look forward to see ing more open markets and a more certain and predictable business 
environment for importers and exporters and investors. A nd we were encouraged by the 
comments this morning that Brazil is taken steps to simplify and streamline regulations.  
5.91.   In closing, let me congratulate the team from Brazil on another successful TPR. We look 
forward to our continued cooperation both bilatera lly and here at the WTO with our valued partner 
and wish safe travel to those returning to Brasilia . 
CHINA  
5.92.   China would like to express our sincere appreciation for the efforts made by Brazil for 
providing us the informative replies just now and to our adva nce questions.  
5.93.   We also appreciate the valuable comments from the discussant, Ambassador Gennady 
Ovechko . 
5.94.   China has a few follow -up questions which we have already submitted in writing and looks 
forward to receiving the answers from the Brazilian delegatio n. 
5.95.   Once again, we would like to reiterate that China attaches great importance to the bilateral 
relations in cooperation with Brazil.  
5.96.   China will always be ready to deepen its comprehensive strategic partnership with Brazil and 
strengt hen coordination and c ommunication with Brazil in regional and global forums, including 
G20, the BRICS  and here in the WTO.  
5.97.   Finally, we congratulate Brazil again for its successful seventh Trade Policy Review.  
MR. PEDRO  MIGUEL  DA COSTA  E SILVA  (HEAD  OF DELEGATION)  
5.98.   The only thin g I can do at this time  is to thank you, Chair , the discussant, thank the 
Secretariat, thank all Members that went through these two days for all their questions and 
interest in our TPR, which was a very instructive and useful experience for the Brazilian delegation, 
for all of us. Being seen through somebody else 's eyes always helps you to see clearly.  
5.99.   I have to say a very special thanks to Ambassador Didonet and to my colleagues here in 
Geneva because they made the task of the Brazilian delegation much ea sier. When you have a 
super team like this one in Geneva it makes the TPR simpler. And I also want to thank all my 
colleagues that came from Brasilia  with me  and helped.  
5.100.   The final comment that I want to make is that the interesting thing about  this TPR for  me, 
apart from hearing about the issues ( I knew I was going to hear about Brazilian trade policy and 
our participation in the WTO) were all the statements with elements about bilateral relations, 
about cooperation initiatives that go beyond trade, but that complement trade . For me it was very 
interesting to have a panoramic view. And I cannot finish my statement without mentioning that I 
heard parts of the Brazilian anthem, I heard Brazilian poetry, I heard about Brazilian products that 
everybody uses (the  havaianas ), I heard Brazilian proverbs, I heard some history that made me 
even a bit emotional from the Representative of Benin because I lived there and I saw what he 
visited and I heard about soccer but I won 't go into that . 
5.101.   Just to say thank you to all  of you. It has been a very interesting experience and I hope 
that I won 't have to wait another 17 years to be back in Geneva.  WT/TPR/M/358 • Brazil  
 
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  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  The seventh Trade Policy Review of Brazil has offered us a good opportunity to deepen our 
understanding of recent developments and challenges to the trade, economic, and investment 
policies of Brazil. As one of the most active Members of the WTO, the 9th largest economy in the 
world in 2016, and the biggest economy of Latin America, Brazil play s an important and valued 
role in the multilateral trading system. Indeed, the more than 900 advance written questions 
submitted by 27 Members and the 45 delegations that took the floor underline the importance 
attached to Brazil 's trade and investment pol icies and practices.  
6.2.  I would like to thank the Brazilian delegation, led by the Director of the Economic Department 
of the Ministry of Foreign Affairs, Mr. Pedro Miguel da Costa e Silva. Also, I would like to thank our 
discussant Ambassador Gennady Ovechk o of the Russian Federation for his insightful remarks, and 
all the delegations that took the floor for their valuable contributions to this Review.  
6.3.  Since the time of its last TPR in 2013, Brazil has faced both internal and global headwinds. It 
recorded n egative GDP growth of 3.8% and 3.5% in 2015 and 2016 respectively, and 
unemployment rose to 11.3% by 2016. Nevertheless, thanks to its sound fundamentals, Brazil 
continued to attract substantial foreign investment ranging between 2% and 3.3% of GDP 
through out the review period, maintaining its position as the top destination of FDI in the Latin 
American Region. The country resumed economic growth in the first quarter of 2017 and, 
according to the authorities, unemployment is also falling. The Brazilian fina ncial system has 
remained stable and inflation has been successfully contained. Members noted with appreciation 
that Brazil had stayed the course of fiscal responsibility.  
6.4.  Brazil has remained committed to the multilateral trading system striving to make it  more 
open. Members commended Brazil for furthering its WTO commitments, for example, by ratifying 
the TFA and depositing its instrument of acceptance of the Fifth Protocol on Financial Services, and 
some of them reiterated their encouragement for Brazil t o participate in the plurilateral GPA. Many 
Members commended Brazil 's active, constructive and engaged participation in all areas of WTO 
work, in particular negotiations on agriculture, fisheries subsidies, as well as discussions on 
investment facilitatio n and e -commerce. Members also referred to its commitment in the drive 
toward the expansion of MERCOSUR 's regional trade agreements, including outside the region, and 
the inclusion of GATS plus commitments, considered by some as a complement to the multila teral 
framework.  
6.5.  Members welcomed Brazil 's efforts to streamline customs procedures through its Single 
Window project and the upgrading of its Authorized Economic Operator programme. They noted 
with satisfaction the progress made towards enabling online s ubmission of documents, and Brazil 's 
plans to implement fully digitalized export and import procedures by end -of 2017 and 2018, 
respectively.  
6.6.  With aggregate two -way trade in goods and services representing about 25% of GDP 
throughout the review period, the  significance of trade vis -à-vis the size of the Brazilian economy 
remained relatively low. Mr. da Costa e Silva pointed out during the first day of the TPR and today 
that this ratio is similar to that of some other large economies in the world. Some Membe rs raised 
questions about plans to raise the productivity and competitiveness of the economy so as to 
facilitate the integration of Brazilian companies into global value chains referring to Brazil 's current 
standing in indicators such as the Doing Business  Report of the World Bank. While Members 
acknowledged Brazil 's robust performance in attracting foreign investment, they expressed 
concern over the level of complexity of its business environment and encouraged improvements in 
a number of areas, such as ea sing the regulatory burden. During this TPR, the Brazilian delegation 
shared information on recent and ongoing reforms in areas such as fiscal responsibility, the 
modernization of the labour law and the model for  public concessions and privatiz ation in cer tain 
sectors to attract more investment. Mr. da Costa e Silva also referred to Brazil 's recent request to 
initiate accession procedures to the OECD as a signal of Brazil 's "commitment to change ". 
6.7.  Some Members flagged Brazil 's complex tax regime as a major obstacle to doing business 
and raised concerns about possible tax distortions between imported and domestic products. They 
also noted that the large gap between Brazil 's bound and applied tariffs was generally seen to 
undermine the predictability of its tr ade regime. Members also inquired about Brazil 's extensive WT/TPR/M/358 • Brazil  
 
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  use of non -automatic import licensing and anti -dumping measures as well as its continued reliance 
on local content and local production requirements, included in incentive schemes and in public 
procurement, noting that the latter had recently been relaxed in the hydrocarbons sector. Some 
Members expressed concern about support measures or programmes in certain manufacturing 
activities, such as INOVAR -Auto in the automotive sector, and expressed inte rest in following up 
the development of new programs such a as ROTA 2030.  
6.8.  Several Members referred to barriers affecting their exports to the Brazilian market due to 
operational aspects of Brazil 's TBT and SPS systems. They also encouraged Brazil to ensure  longer 
periods for public consultations, and between publication and entry into force of these measures. 
Regarding intellectual property, although Members welcomed Brazil 's recent steps to reduce the 
significant backlog of applications for registration of  IPR titles, notably patents and trademarks, 
they encouraged further efforts to address shortcomings in some areas of IPR protection and 
enforcement.  
6.9.  While acknowledging the relatively low level of Brazil 's domestic support in agriculture, 
several Members asked about some trade policy instruments and practices, for example, tariffs 
being higher than in manufacturing, SPS, rural credit and insurance. Several Members appreciated 
Brazil 's green energy policy and achievements, including reduction of state invol vement in this 
sector. Recognizing the reforms undertaken, some Members noted the persisting influence of the 
state controlled PETROBRAS in the hydrocarbons market. Services were recognized as key drivers 
for future growth and some Members encouraged Brazi l to increase productivity and 
competitiveness of the sector by, inter alia , reducing limitations in certain activities.  
6.10.   The above are some of the key issues that had emerged in our discussion. I hope that the 
Brazilian delegation will take into account an d further reflect on the many constructive comments, 
both broad and detailed, that it has received during this Review. Finally, I would like to thank all 
those that participated in our discussion, and I look forward to receiving the answers to any 
outstand ing questions within the next month, at which point the Review will be successfully 
concluded.  
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