WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO WT/TPR/M/212/Add.1 
30 June 2009 
 (09-3213) 
Trade Policy Review Body 
9 and 11 March 2009 Original: English/ 
 anglais/  inglés 
 
  
TRADE POLICY REVIEW 
BRAZIL 
Record of the Meeting
 
Addendum  
Chairperson:  H.E. Mr. Istvan Major (Hungary) 
 This document contains the advance writte n questions, and replies provided by Brazil.1 
__________________________________________________________________________________  Organe d'examen des politiques commerciales 9 et 11 mars 2009  
EXAMEN DES POLITIQUES COMMERCIALES 
BRÉSIL 
Compte rendu de la réunion
 
Addendum  
Président:  S.E. M. Istvan Major (Hongrie) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par le Brésil.1 
__________________________________________________________________________________  
Órgano de Examen de las Políticas Comerciales 
9 y 11 de marzo de 2009 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
BRASIL 
Acta de la reunión
 
Addendum  
Presidente:  Excmo. Sr. Istvan Major (Hungría) 
 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Brasil.1 
                                                      
1 In English only./En anglais seulement./En inglés solamente.   
    WT/TPR/M/212/Add.1 
 Page 3 
 
 
 ADVANCE WRITTEN QUESTIONS AND 1ST DAY REPLIES  
 
 CHINA (FIRST BATCH) 
Question 1 
 
 While the economic crisis deepens, would the Delegation of Brazil please share with us the 
economic measures the Brazilian Government has taken  in 2008 to stimulate the economy, especially 
those related to international trade? And what’s the situation in 2009?  
 
ANSWER:    The Authorities are following the developments  related to the financial turmoil closely. 
Since September 2008, to ease the liquidity squeeze, the Authorities adopted measures to tackle the financial problems, injecting liquidity in th e foreign currency market and in the domestic 
credit market. With these initiatives, the Cent ral Bank of Brazil (BCB) aims at preventing 
further excessive exchange rate, preserving eco nomic stability and minimizing inflation pass-
through. Since then, the BCB and Government’s  actions to tackle the crisis include, for 
example, reduction of reserve requirements for ba nks, sales of currency, collateralized loans to 
banks, elimination or reduction of taxation on financial operations, exchange swap agreements 
with other Central Banks, preventive authoriz ation for the Central Bank to buy assets from 
banks, etc.  
REPORT BY THE SECRETARIAT 
III. TRADE POLICIES AND PRACTICES BY MEASURE (2) MEASURES DIRECTLY AFFECTING IMPORTS 
(iv) Tariffs  
Question 2 (Paragraph 43)  
More specifically, between 2004 and 2008, Brazil increased its app lied tariffs for chemical 
products, footwear, and textiles and clothing; the la tter incurred the highest increase (7.9 percentage 
points). 
  Would the Delegation of Brazil please elabor ate the background of having increased its 
applied tariffs for chemical produc ts, footwear, and textile and cl othing(especially for textile and 
clothing)? What’s the policy for 2009? How about the effect of higher applied tariffs?  
 
ANSWER:   Those applied tariffs are related to particul arly sensitive sectors, as they are mostly 
labour-intensive. Analysis of import flows for th e same sectors reveals an accelerated growth of 
imports for that period, including the lines for which applied tariffs are higher. The related 
imports for textile and clothing, for instance,  increased by 178% over the period 2004-2008 
(from US$1,49 billion in 2004 to US$1,64 billi on em 2005; US$2,29 billions in 2006; US$3,23 
billions in 2007; US$4,16 billions in 2008). The modal tariffs are lower than some developed 
countries’ peaks for the same sectors. With re gard to chemicals, there were limited topic 
increases in tariffs: the modal tariff is only 2%  and the average applied tariff is around 7%. 
 
(v) Other charges affecting imports 
 
Question 3 (Paragraph 77) WT/TPR/M/212/Add.1 
Page 4  
 
  
The Chamber of Foreign Trade (CAMEX) is responsible for making the final decision, including 
the use of the "national interest" clause, on the application of provisional AD and CV measures and 
definitive duties, and for altering or terminatin g definitive duties as a result of a review, and 
accepting or terminating undertakings. 
 
Would the Delegation of Brazil please explain  the mechanism under which the Chamber of 
Foreign Trade makes the final decision for applying AD, CV or safeguard measures? What are the 
main elements of “national interest” clause? What ’s Brazilian long term policy for implementing AD 
or other measures?  
 
ANSWER:   The Department of Commercial Defence (D ECOM) of the Secretariat of Foreign Trade 
– SECEX conducts investigations but does not deci de for the application of AD/CV measures.   
The decision to end an investigation without a pplying AD/CV measures is taken by the SECEX 
itself. In case SECEX considers favourably the app lication of AD/CV measures, it shall submit a 
recommendation to the Chamber of Foreign Trade - CAMEX, which is a college of 6 ministers and makes the final decision.  The reasons for CAMEX decisions are published in the official 
gazette. According to Brazilian Law CAMEX may take into due account elements of public interest in its decision but this assessment vari es on a case by case basis. The application of AD 
measures in Brazil aims exclusivelly at offsetin g the practice of dumping that causes injury to 
the domestic industry. 
 
CHINA (SECOND BATCH) 
  
REPORT BY BRAZIL 
IV. TRADE INSTITUTIONAL AND REGULATORY FRAMEWORK (2) SECTORAL ISSUES (iii)  Services 
 
Question 1 (Paragraph 123)   Would the Delegation of Brazil please provid e more information on SISCOSERV, such as its 
design, indices, schedule of release, access, etc? 
 
ANSWER: 
 
 The Integrated System of Foreign Trade in Services (SISCOSERV) is being developed under the general oversight of the Department of  Commerce and Service Policy of the Ministry 
of Development, Industry and Foreing Trade with  a view to (i) make available periodical and 
disaggregated statistics on the Brazilian foreign trade in services in the four modes of supply, 
(ii) propose, keep up with and assess public polic ies for service sector, (iii) support international 
trade negotiations on services. The conclusion of the export module is expected for 2009 and the 
import one for 2010.    An important step of this process is a crea tion of a new nomenclature on services which 
uses the Central Product Classification  (CPC) as a reference. The final adoption of a Brazilian 
Nomenclature of Services currently awaits th e results of the public consultation process, 
postponed until March 31
st, 2009.  Further information can be found on the following website 
(www.desenvolvimento.gov.br). 
 
  WT/TPR/M/212/Add.1 
 Page 5 
 
 
 Question 2 (Paragraph 124) 
 
 The Report referred to the Brazilian Nomenclatu re of Service, the first proposal of which will 
be submitted to public scrutiny in the first semester of  2009.  Could Brazil please clarify if there is any 
schedule for the final adoption of this nomenclature? 
 
ANSWER: 
  The final adoption of a Brazilian Nomenclatu re of Services currently awaits the results 
of the public consultation process, postponed until March 31
st, 2009. The current draft is only 
available in Portuguese.  Further information can be found on the following website 
(www.desenvolvimento.gov.br). 
 
REPORT BY THE SECRETARIAT  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(3) MEASURES DIRECTLY AFFECTING EXPORTS 
(v) Export finance, insurance, and guarantees (c) Export insurance and guarantees 
 
Question 3 (Paragraph 224) 
 
 According to the Report, “Brazil provides export insurance through the Export Credit 
Insurance (SCE) scheme, which guarantees and cove rs losses incurred by exporters from non-receipt 
of foreign payments for their exports at market  conditions.… The SCE covers any exporter or 
financial institution that finances or refinances ex ports.  There are five specialized institutions 
authorized to operate the SCE for goods and services against commercial, political, and 
extraordinary risks in short-term transactions, for up to 90% of the risk:  the Brazilian Export Credit 
Insurance Company S.A. (SBCE);  SECRESB;  Euler Hermes;  Credit y Caución;  and Mapfire.  The 
five insurance companies are private, although SBCE has two public companies as minority shareholders.”  Could Brazil please clarify if forei gn participation is allowe d in the provision of 
export insurance? 
 
ANSWER:   Yes, it is. 
 Question 4 (Paragraph 225) 
 
 According to the Report, “The SBCE is the onl y institution authorized to operate the SCE for 
medium and long-term operations.  It provid es coverage for external Brazilian sales against 
commercial, political, and extraordinary risks.”    
 Paragraph 227 
 
 According to the Report, “For medium and long-term commercial operations (over two 
years), and for political and extraordinary risks of any term, the SBCE acts on behalf of the Government and coverage is through the Export Guarantee Fund (FGE), ...  It is operationalized by 
the SBCE.  SBCE is responsible for all the technical analysis and management of the policies;”   
  Could Brazil confirm whether SBCE is the so le institution in Brazil to provide export credit 
insurance for medium to long term commercial op erations, and for political and extraordinary risks 
of any term? 
 WT/TPR/M/212/Add.1 
Page 6  
 
 ANSWER: 
  SBCE, under contract to operate the Braz ilian Government’s Guarantee Fund, is the 
sole institution in Brazil that provides medi um and long-term export credit insurance for 
commercial operations and medium and long-term  coverage for political and extraordinary 
risks. There are other institutions that provi de export credit insurance for political and 
extraordinary risks in the short term. There are no  legal impediments to the provision of long 
term guarantees by the private sector 
 
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
(ii) Pricing and competition policy 
(b) Competition policy 
 
Question 5 (Paragraph 258)   A joint IADB/OECD 2005 review of Brazil's competition policy notes that Brazil made substantial headway during 2000-05 in implemen ting sound competition policy, particularly by 
increasing efficiency in merger review s, reallocating resources to cartel enforcement, eliminating the 
case backlogs in CADE investigations, establishi ng a certification system for antitrust compliance 
programmes, and enhancing the agencies' capacity to undertake economic analysis. The report notes, 
however, that Brazil still faces challenges, and reco mmends, inter alia, that it:  consolidate the 
investigative, prosecutorial, and adjudicative functi ons of the SBDC into one autonomous agency;  
consider the economic feasibility of establishing regional CADE offices;  modify the merger 
notification and review process to adopt an exp licit standard for reviewing the competitive 
implications of merger transactions;  establis h a pre-merger notification system;  eliminate the 
present market share notification threshold, and ad opt thresholds based on the domestic turnover of 
both the larger and the smaller parties to the transac tion;  and eliminate notification of non-merger 
transactions.  Could Brazil please clarify its vi ew on the review report and the recommendation by the 
IADB/OECD in 2005?     ANSWER:  
 The recommendations made by the IADB/OECD in 2005 are in general terms positively 
regarded by the Brazilian government and several of them have been included in the Bill nr. 
5.877/2005 submitted for congressional approval. Among the main features of this Bill it is 
worth mentioning (i) the consolidation of the investigative, prosecutorial and adjudicative 
functions into one autonomous agency, (ii) th e establishment of competition regional offices and 
(iii) the modification of the merger notifications procedures. 
 IV. TRADE POLICIES BY SECTOR (6) SERVICES (ii) Financial services 
 Question 6 (Paragraph 121) 
 
 According to the Report, “The establishment of new foreign financial institutions requires 
approval by Presidential Decree.  In practice, the establishment of new foreign financial institutions 
has been allowed, and 23% of assets are in the ha nds of foreign banks.  Brazil participated in the 
WTO negotiations on financial services; although it has not ratified the Fifth  Protocol, amendments 
made to its insurance legislation in 2007 may make this possible.  Among other things, the 
amendments allow, under certain conditions
, the cross-border supply of  insurance services, which 
was previously forbidden.”  Could Brazil please cl arify what are the “certain conditions” required on 
cross-border supply of insurance services?  WT/TPR/M/212/Add.1 
 Page 7 
 
 
 ANSWER: 
  Complementary Law No. 126/07 contains  provisions on cross-border supply of 
insurance services.  As stated in the Secretariat report, while risks that take place in Brazil must 
be insured domestically, the Law provides for a few exceptions, allowing the taking out of 
insurance abroad by natural persons or legal p ersons resident in Brazil to:  cover risks for 
which there is no provision of insurance in Brazil, provided that this represents no violation of existing legislation;  cover risks abroad where th e insured is a natural person resident in Brazil, 
for which the term of the insurance contract is limited exclusively to the period in which the 
insured person is abroad;  insurance policies th at are the subject of international agreements 
ratified by the National Congress;  and insu rance contracted abroad before the date of 
publication of the Complementary Law.  The law allows Brazilian legal persons to take out insurance abroad to cover risks abroad, provided this is notified to the SUSEP.  CHINA (THIRD BATCH) 
 
REPORT BY THE SECRETARIAT  
SUMMARY OBSERVATIONS III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) MEASURES DIRECTLLY AFFECTING IMPORTS 
 Question 6 (Paragraph 32) 
 
 According to the Report, “Brazil does not apply non-preferential rules of origin. At the same 
time, it does require information (not a certificate)  on the origin of all imports.”  Could the 
Delegation of Brazil please explain how it en sures the proper application of MFN rates? 
 
ANSWER:  
 Non-preferential certificates of origin are re quested only for those products subject to 
import licensing on account of antidumping, sa feguard or countervailing measures, as stated in 
paragraph 1 of article 10 of Portaria Secex 25/2008. 
We note that goods from all countries face MFN ta riffs unless they are entitled to preferential 
rates. 
 
Question 7 (Paragraph 105)  
 According to the Report, “Brazil imposes import prohibitions on virtually all used consumer 
goods…Brazil uses both automatic and non-automatic li cences; the latter affect slightly more than 
one third of all tariff lines”.  China would like to  know whether there is any assessment on the impact 
of such prohibitions and licences, especially non-au tomatic licenses, on international trade. If so, 
could the Delegation of Brazil please share the assessment report with us?  
ANSWER: 
  Brazil does not have a specific assessment of the impact of non-automatic import 
licensing requirements on international trade. In order to minimize the impact of licensing WT/TPR/M/212/Add.1 
Page 8  
 
 requirements on Brazilian imports, all government al agencies involved in import controls are 
periodically required to review th eir licensing requirements and to  reduce their controls to the 
minimum necessary, considering the principles of reasonability, proportionality, public interest 
and efficiency. As an additional measure to minimize the impact of licensing on trade, 
Resolution CAMEX nº 70/2007 introduced a ne w process whereby the merit and the legality of 
agencies’ demands for products to be subject to licensing ar e checked in order to avoid the 
occurrence of multiple authorizations and inspectio ns, with a view to saving time and costs. 
 
IV. TRADE POLICIES BY SECTOR 
(6) SERVICES 
 Question 12 
 
 On 14 November 2008, Brazil notified its Dra ft Ministerial Act which procedure of 
certification for security of the toy (G/TBT/N/BRA/31 3), which lays down procedure of certification 
for toys that are marketed in Brazil. On 22 D ecember 2008, China submitted its comments on this 
draft Act.  
(1) Could the Delegation of Brazil please explain  whether it has provided responses to our 
comments to the TBT Committee? So far, China hasn’t got a reply from Brazil. China would like to know when Brazil will provide a response,  and how China’s comm ents have been taken 
into account. 
(2)  Has Brazil revised the Act based on Members’ co mments? If so, please provide a copy of the 
revised Act. If not, how is Brazil justifying su ch a restrictive measure which we think is 
discriminatory to imported toys? 
(3) Could Brazil inform the proposed date of adoption and entry into force of the Act? 
 
ANSWER: 
 
 Regulation G/TBT/N/BRA/313 is undergoing public consultations. 
 Question 14 
 
 Could Brazil please provide detailed informati on regarding Brazil’s implementation of Basel 
Convention on the Control of Transboundary Movement of Hazardous Wastes and Their Disposal, 
including legislations in place to this Convention and their latest revision? 
 ANSWER: 
 
 Information on Brazil’s implementation of Basel Convention on the Control of 
Transboundary Movement of Hazardous Wast es and Their Disposal was provided to the 
Secretariat of the Convention and can be access ed at: http://www.basel.int/natreporting/2006/ 
cfs/brazil.doc. 
  WT/TPR/M/212/Add.1 
 Page 9 
 
 
 MEXICO (FIRST BATCH) 
SERVICIOS 
 
IV. POLÍTICAS COMERCIALES POR SECTORES ((6) Servicios / i) Introducción)    
 
En el párrafo 112 se indica que los compromi sos específicos asumidos por el Brasil en el 
marco del AGCS abarcan sólo 38 de los 160 su bsectores de servicios, o 7 de los 12 sectores 
generales definidos en la Lista de Clasificación Sect orial de los Servicios.   México desearía saber si 
Brasil tiene contemplado contraer compromisos en los sectores generales restantes de la Lista de 
Clasificación Sectorial de los Servicios. 
 
ANSWER: 
 Brazil has circulated its conditional revised offer in services in the DDA in June 2005,  
with 31 additional sub-sectors subject to ne w commitments, including sectors of economic 
importance such as maritime transports, tel ecommunication, financial services, distribution. 
 
 En el párrafo 115 se menciona que actualment e Brasil no mantiene en vigor compromisos 
sobre telecomunicaciones en el marco del AGCS, ni  tampoco ha adoptado el Documento de Referencia. Desearíamos saber si Brasil tiene pr evisto incluir compromiso s en este sector en un 
futuro próximo, así como adoptar el Documento de Referencia.  
ANSWER: 
  Brazilian revised offer includes commitments in the telecommunicati on services sector. 
The full adoption of the Reference Paper is  under consideration for the final offer. 
 
IV. POLÍTICAS COMERCIALES POR SECTOR ES ((6) Servicios / ii) Servicios 
financieros) 
 
 En el párrafo 121 se hace referencia a  que  Brasil participó en las negociaciones de la OMC 
sobre servicios financieros;  aunque no ha ratificado el Quinto Protocolo, las modificaciones 
introducidas en su legislación sobre seguros en 2007 pueden hacer posible esa ratificación. México 
desearía saber si Brasil tiene contemplado ratificar el Quinto Protocolo en un futuro cercano.   
 
ANSWER: 
  As it was stated in the last regular m eeting of the Committee on Trade in Financial 
Services of the WTO, in December 2008, due to pr ocedural matters the Fifth Protocol has not 
yet concluded its ratification process. A specifi c timeframe for the completion of the process 
cannot be determined.  
IV. POLÍTICAS COMERCIALES, POR SECTORES ((6)  Servicios / iii) Telecomunicaciones)   
 
 En el párrafo 170 se señala que la Ley Gen eral de Telecomunicaciones (LGT) faculta al 
Poder Ejecutivo para limitar la participación extranj era en el sector de las telecomunicaciones, al 
tiempo que, en virtud del Decreto 2.617, de 1998, sólo pueden otorgarse concesiones y autorizaciones 
a las empresas establecidas en el Brasil con arre glo a las leyes nacionales.  Sin embargo, la 
legislación vigente no establece distinción entre ca pital extranjero y nacional. Con respecto a la 
legislación vigente, México desearía saber si la s empresas extranjeras pueden participar en el sector 
de telecomunicaciones y si reciben el mismo trato que las empresas nacionales.  WT/TPR/M/212/Add.1 
Page 10  
 
 ANSWER: 
 
 The Federal Constitution of Brazil guarantees all acquired rights of service providers 
already established in Brazil. The Executive Branch has the legal prerogative to consider limits 
to foreign participation in the capital comp osition of telecommunication service providers. 
 
 All service suppliers in order to supply a te lecommunication service in Brazil need to 
obtain a licence from Anatel. Licences shall be  granted only to suppliers duly constituted 
according to the Brazilian legislation, which requi res head office and management located in the 
Brazilian territory, and ownership of the majori ty of the voting shares by natural persons 
resident  in Brazil or companies duly constituted according to the Brazilian legislation, which 
requires head office and management located in the Brazilian territory.  Once established 
according to the rules mentioned above, every company despite its capital composition, is 
submitted to the same rights and obligations. 
 
IV. POLÍTICAS COMERCIALES, POR SECTORES ((6) Servicios / iv) Transporte aéreo / 
b) marco jurídico)  
 
 En el párrafo 197 se indica que Brasil no ha c onsignado compromisos específicos en relación 
con las actividades de transporte a éreo enumeradas en el Anexo sob re Servicios de Transporte Aéreo 
del AGCS.  Desearíamos saber si Brasil tiene la intención de consignar co mpromisos específicos en 
este sector. 
 ANSWER:   Brazil does not exclude a priori the possibilit y of making commitments in the sector in 
its revised services offer.  
IV. POLÍTICAS COMERCIALES, POR SECTORES  ((6) Servicios / v) Transporte 
marítimo y puertos)     
  En el párrafo 214 se señala que en la Ley Nº 9.432/97 se establecen las condiciones en las 
que se permite la participación de las embarcacion es extranjeras en el transporte de mercancías por 
mar y por vías navegables interiores. ¿Podría Bras il proporcionarnos el sitio electrónico donde se 
puede consultar dicha ley o, en su defecto, explic ar las condiciones mediante las cuales se permite la 
participación de embarcaciones extranjeras en el transporte de mercancías por mar?  
 
ANSWER: 
 
 All legislation regarding maritime transport services, including Law nº 9.432/97, can 
be found on the National Agency on Mariti me Transport website (www.antaq.gov.br). 
 
 En el párrafo 218 se menciona que Brasil mantie ne acuerdos bilaterales sobre reparto de 
cargas o preferencias de asignación (incluidas la s vinculadas con cargas del Estado) con Alemania, 
la Argentina, Bulgaria, Chile, China, Francia, Polonia, Portugal, Rumania, Rusia y el Uruguay. 
México desearía saber si Brasil tiene contemplado celebrar acuerdos bilat erales sobre reparto de 
cargas o preferencias de asignación con otros países.  
ANSWER:  
 There are no maritime transport bilatera l cargo sharing negotiations in course. 
  WT/TPR/M/212/Add.1 
 Page 11 
 
 
  En el párrafo 219 se indica que las actividades portuarias son reguladas por la Ley Nº 8.630, 
de 25 de febrero de 1993 (Ley de Modernización de Puertos), que prevé un sistema descentralizado 
de administración de puertos, los que  operan bajo la administración federa l, la estatal, la municipal y 
la privada, y permite el otorgamiento de concesione s, incluso a proveedores de servicios extranjeros. 
México desearía conocer los requisitos para ot orgar concesiones a proveedores extranjeros. 
 
ANSWER:   Law Nº 8.630/93 is regulated by the Decree 6.620/08 which set disciplines for port concessions and leases of port-related services in certain areas within an organized port. 
 
IV. POLÍTICAS COMERCIALES, POR SECTORES ((6) Servicios / vi) Servicios 
profesionales / b) servicios jurídicos / d) servicios de arquitectura e ingeniería)  
 
 En el párrafo 239 se señala que el a cceso al mercado brasileño para los abogados 
extranjeros requiere acreditación, reválida del título pr ofesional y registro en el Brasil, salvo que se 
trate de consultores en derecho extranjero.  La Ley Nº 8.906, de 1994, establece que el ejercicio de la 
profesión de abogado en territorio brasileño y la de nominación de abogado sólo están al alcance de 
quienes se registran en el Colegio de Abogados del Brasil (CAB).  Desearíamos saber cuáles son los 
requisitos para que un abogado extranjero se registre en el CAB.  
ANSWER: 
  As stated in the Secretariat Report, accord ing to Law 8906/94 (OAB Statute), in order to 
provide legal services in Brazil, foreign la wyers require accreditation, revalidation of 
professional title, and registration in Brazil, excep t for consultants on foreign law. Qualification 
is essentially a two-tier process:  first, applican ts must apply to have their degrees revalidated 
and pass the OAB exam (a requisite required fr om every law bachelor graduated in Brazilian 
universities);  second, they must register wi th the OAB. Article 8º of Law 8906/94 lists 
requirements for registration with OAB. Foreign  professionals should also comply with the 
other terms of the OAB Statute, which also applies to Brazilian professionals. 
 
 En el párrafo 245 se indica que  los arquitectos e ingenieros extranjeros pueden trabajar en 
el Brasil sólo tras haber demostrado que no existen  profesionales brasileños capaces de realizar el 
trabajo de que se trate.  México está interesado en saber si es frecuente  en Brasil contratar 
arquitectos e ingenieros extranjeros y, en caso afirmativo, conocer de qué países se contratan más 
frecuentemente estos profesionistas. 
 
ANSWER:   Such cases are not frequent. 
 
II. RÉGIMEN DE POLÍTICA COMERCIAL Y DE INVERSIONES (4 Régimen de 
Inversión Extranjera)  
 
 En el párrafo 18 se menciona que el Gobierno federal ha establecido programas y 
mecanismos para facilitar la in versión extranjera, especialmente en sectores que se considera que 
ayudan a mejorar la competitividad in ternacional del Brasil, promover el crecimiento a largo plazo y 
lograr los objetivos del programa de crecimiento acelerado del Gobier no en el marco del último Plan 
Plurianual.  Desearíamos saber qué mecanismos aplica Brasil para proteger la inversión extranjera.  
 WT/TPR/M/212/Add.1 
Page 12  
 
 ANSWER: 
  The Federal Constitution guarantees Nati onal Treatment for foreign investment 
incorporated in Brazil. Moreover, Brazil na turally offers several in centives for foreign 
investors, such as a clear legal framework, vas t market size and labor force, economic stability 
and abundant natural resources. In the light of  the Brazilian Constitution, foreign companies 
established according to Brazilian legislation are submitted to the same treatment as national 
companies. 
 
MEXICO (SECOND BATCH) 
Preguntas sobre contrataciones públicas 
 ¿Podría Brasil compartir su visión de porqué  las partes no han validado el Protocolo de 
Contrataciones Públicas del Mercosur y cuál es su expectativa en relación con el tiempo que aún 
podría tardar en ocurrir la validación?  
 
ANSWER:   The Government Procurement Protocol of Mercosur has yet to be ratified by the 
Brazilian Congress 
 
 Dado que, aparte del Protocolo de Contrataci ones Públicas del Mercosur, Brasil no tiene 
compromisos internacionales en esta materia, ¿e n qué casos puede un proveedor extranjero tener 
acceso a ese mercado en Brasil?   ANSWER:  
 Although Brazil is not party of any international agreement on Government 
Procurement aside from the MERCOSUR’s Public Procurement Protocol, its system of Government Procurement is one of the most open to international competition. Foreign 
companies can participate in any public tender in Brazil, as long as they are legally established 
or represented in the country and are authoriz ed by the Brazilian Government to function 
within its territory. This authorization has never been denied by the Brazilian Government.   
For engineering works and services, in particul ar, foreign firms must comply with legal 
requirements related to the engineering profession. These requirements comprise the registration, in the Regional Council of Engin eering, of: (a) the company; (b) the professional 
engineer; and (c) the collection of technical works .  
  ¿Cuáles son los plazos establecidos en la legisl ación de Brasil para registro y, en su caso, 
calificación de proveedores, presentación de ofertas y adjudicación de contratos en procedimientos 
internacionales?  ANSWER:  
 Deadlines depend on the modality of the tend er. The modalities of international bidding 
are invitation, open tendering and inverse auction. For international invitation, suppliers who were not invited to the bid are allowed to participate 
if they require the registration (in the Registration of Suppliers) within 3 working days from the opening of the bid.  
 
 In the case of open tendering and inverse au ction, previous registration of suppliers is 
not required for taking part at the bid. Petr obrás is the only public company which requires  WT/TPR/M/212/Add.1 
 Page 13 
 
 
 previous technical qualification for suppliers; ho wever, there is no established deadline to order 
such qualification.   The time limits concerning the presentation of an offer are:  
 International invitation: 5 working days; open tendering: 30 to 45 days, depending on 
the type of contract of the bid. Deadlines to th e award of tenders are established for each tender. 
  En el caso de dispensas conforme al artículo 25  de la Ley de Licitaciones, ¿de qué manera se 
determina si un proveedor posee “competencia pr ofesional reconocida” o si es un “profesional de 
renombre”? ¿Se reconocen la competencia y el renombre a profesionales o compañías extranjeras?” 
 ANSWER:   Foreign companies may have their qualification recognized by Brazilian competent 
authorities. In order to acquire such qualification they must present technical justifications such 
as certificates, titles, published works, among others.   
 
 ¿En qué instituciones y procedimientos admin istrativos, arbitrales o judiciales se puede 
apoyar un proveedor extranjero en caso de inconf ormarse por algún aspecto del procedimiento de 
contratación o por el resultado de éste? 
 
ANSWER:   A foreign supplier may lodge complaints agai nst the award of a contract by the same 
means available to domestic parties.  
 
 The Law No. 8666/93 foresees the possibility of administrative appeals against acts 
within the process of evaluating bids.  Besides "appeals" there are also "representations" and 
"request for reconsideration".    Article 109 of the cited law states:  
 
 "I- Appeals, within a limit of 5 (five) days  counting from the summons of the act or the 
drafting of the act, in cases of:  - qualification or disqualification of the bidder;  - judgment of proposals; 
 - annulment or cancelation of the bidding; 
 - rejection of a request for enrolment in a registry, its alteration or cancelation; 
 - cancelation of contract, that which is referred to in Clause I of Article 79 of this law;  - application of the penalty of notification, temporary suspension, or fine;  II - representation, within the limit of 5 (five) working days from the announcement of 
the decision related to the object of bidding or of the contract, of which there is no 
hierarchical appeal possible; 
 III - Request to reconsider a decision of the Minister of State, or State or Municipal 
Secretary, depending on the case, when Paragraph 4 of Article 87 of this Law applies, within ten working days of the summons of the act.” 
 
 Beyond the administrative forum, any bidder, or contracted individual, or business may 
represent themselves before the Accounts Tribune  or before the organs responsible for the 
System of Internal Control, against any possibl e irregularities arising during the case in process. 
(Paragraph 1 of Article 113 of the cited Law.)  WT/TPR/M/212/Add.1 
Page 14  
 
  Besides, the Law provides that any citizen is  a legitimate party to oppose a proclamation 
for a bid which is irregular, and that this shou ld occur at least five days before the date 
established for the opening of the qualifying en velopes, and that the administration should 
judge and respond within 3 (three) working days.  
 Finally, access to the Brazilian cour ts is open for judicial action .  
 
 ¿Ha recibido el gobierno de Brasil manifestaci ones de interés de su industria nacional para 
que se busque acceso a mercados inter nacionales de contrataciones públicas? 
 
ANSWER: 
  Some economic sectors have expressed inter est in expanding foreign market access on 
Government Procurement, especially  taking into account that, although the Brazilian market is 
open to foreign competition, Brazilian companie s do not receive similar treatment in many 
foreign markets.   
MEXICO (THIRD BATCH) 
 
 Como es del conocimiento de las autoridad es brasileñas, los gobiernos de los países de 
América del Norte han expresado expectativas en el  sentido de que los países productores de acero 
no emprendan acciones que directamente o de otra  forma influyan en las exportaciones de acero 
como una respuesta a la crisis económica actual. En este contexto, Canadá, Estados Unidos y México 
están preocupados por ciertas medidas e inicia tivas relacionadas con el acero, anunciadas 
recientemente por un número de países, las cuales incluyen un incremento en los aranceles, la 
imposición de procedimientos restrictivos y no transparentes de licencias de importación y 
exportación y la adopción de po líticas para promover las exportaciones. Dado que el entorno 
económico actual podría alentar a los gobiernos a considerar medidas e iniciativas con la intención 
de apoyar a su industria nacional, existen preocupac iones de que dichas medidas puedan interferir en  
el comercio del acero. Los gobiernos de los países de América del Norte están también preocupados 
de que tales acciones exacerben las dificu ltades en el mercado global del acero. 
 
 Como ha sido señalado con frecuencia, más reci entemente en la reunión del Comité del 
Acero de la OCDE, llevada a cabo el 15 y 16 de diciembre de 2008, la crisis económica actual 
requiere que todos los gobiernos consideren cuid adosamente el impacto que pueden tener sus 
acciones en el mercado global del acero. Particular mente, en un momento en que la sobrecapacidad 
continúa siendo el principal problema en el sect or del acero y cuando el mercado es particularmente 
sensible a las distorsiones y a una posible ruptura. 
  En este contexto, Canadá, Estados Unidos y México solicitan a Brasil tener a bien proporcionar información sobre las acciones que está tomando en apoyo a su industria siderúrgica o 
bien, para influenciar las exportaciones e importaci ones de acero en respuesta a la crisis económica. 
Según nuestro entendimiento, por ejemplo, en ener o de 2009, Brasil amplió su lista de productos 
sujetos a requerimientos de licencias para inclui r el carbón de coque (coking coal) y todos los 
productos de acero actualmente clasificados bajo el capítulo 73 del SA; dicho requisito fue 
suspendido más tarde. Más recien temente, el Ministro Brasileño Miquel Jorge anunció el 9 de 
febrero que Brasil está monitoreando los precios de las importaciones de acero, principalmente 
procedentes de Asia, para asegurar que estas  son compatibles con “precios de referencia 
internacional” con miras a la posibilidad de tomar acciones antidumping en contra de estas 
importaciones. Canadá, Estados Unidos y M éxico solicitan a Brasil comente sobre los 
acontecimientos recientes y explique la racionalidad y operación de este último sistema. Agradeceremos que Brasil informe sobre cualquier otra acción que sea relevante en  el comercio en el 
sector de acero.    WT/TPR/M/212/Add.1 
 Page 15 
 
 
 ANSWER: 
  There are no measures concerning the Brazilian steel sector being adopted or planned, other than monitoring prices of steel imports. Th e eventual adoption of anti-dumping measures 
in Brazil would in any case be exclusively based  on clear evidence of dumping and consequent 
injury to the domestic industry. 
  Brazil shares Canada’s, Mexico’s and the United States’ concerns that the adoption of measures to support the domestic steel industry may hinder steel trade. In that sense, Brazilian 
authorities are also closely following the implem entation of the North-American Stimulus Plan, 
as studies are being conducted to evaluate (i ) whether the “Buy American” clause applied to 
steel, iron and manufactured goods is duly consis tent with the WTO disciplines; and (ii) the 
potential impact of those measures on the international steel market. 
 
MEXICO (FOURTH BATCH) 
 
REGLAMENTOS Y NORMAS TÉCNICAS 
 
NORMAS TÉCNICAS 
 
 Párrafo 83. Mediante el centro de coordinación previsto en el Acuerdo OTC de la OMC, el 
Brasil responde a las preguntas sobre los reglament os técnicos brasileños y resuelve las dudas sobre 
las normas técnicas y los procedimientos para la  evaluación de la conformidad que plantean las 
empresas interesadas en exportar al país.    En relación a las preguntas realizadas por  alguna empresa o gobierno, México desea 
conocer si Brasil tiene tiempos determinados par a presentar las respuest as correspondientes. 
 
ANSWER:  
  There are no pre-established time limits to  deal with the requests. Time periods may 
vary significantly according to the nature of enquiries. In a general manner, most of the 
enquiries are answered between 48 hours and 7 days. 
 REGLAMENTOS TÉCNICOS Y NORMAS 
 
 Párrafo 125. El Instituto Nacional de Metr ología, Normalización y Calidad Industrial 
(INMETRO), organismo federal vinculado al MDIC , es la Secretaría Ejecutiva del CONMETRO y 
coordina la Red Brasileña de Me trología Legal y Calidad, integrada por los institutos de pesos y 
medidas (IPEM) de todos los estados del Bras il.  El INMETRO, responsable también de la 
notificación a la OMC de las propuestas de reglame ntos técnicos (obligatorios), incluso de las 
presentadas por los organismos subfederales, es el servicio nacional de información previsto en el 
Acuerdo OTC. 
 
 El SINMETRO es un organismo federal in tegrado por entidade s públicas y privadas
;  su 
finalidad es velar por la coordinación en la formulación y adopción de normas y reglamentos 
técnicos, sea a nivel federal o subfederal.  Esta blecen la labor del SINMETRO, a nivel subfederal, 
organismos de normalización y laboratorios e in stitutos de metrología de los diferentes estados .  
Entre los organismos que constituyen el SINMETRO  figuran los siguientes:  el CONMETRO y sus 
comités técnicos;  el INMETRO y diversos órganos de certificación, inspección y capacitación;  un organismo de evaluación de la aptitud;  laborator ios de calibración y ensayo;  la Asociación 
Brasileña de |écnicas (ABNT);  institutos estatales de pesos y medidas (IPEM);  y redes de metrología 
estatales. WT/TPR/M/212/Add.1 
Page 16  
 
  México desea conocer qué porcentaje tienen las entidades públicas ante las privadas en 
SINMETRO y cuántos institutos de metrología hay en  Brasil. El gobierno de México también desea 
conocer los logros que Brasil ha tenido en la tarea  de armonizar estos sectores y cuáles han sido los 
beneficios obtenidos o esperados.   
ANSWER: 
  INMETRO is Brazil’s National Institute of Metrology in accordance to BIPM (Bureau International de Poids et Mesures).  
 SINMETRO is the Brazilian system formed by public and private entities that have 
activities related to metrology, standardizat ion, industrial quality and certification of 
conformity. INMETRO is in charge of the executive secretariat of CONMETRO, which is the regulatory body of SINMETRO and is chaired by  the Minister of Development, Industry and 
Foreign Trade and composed of the Ministries  of Science and Technology; Health; Labor; 
Environment; External Relations; Justice; Agri culture; Defense; as well as INMETRO; ABNT; 
CNI; CNC and IDEC.   The list below indicates the main public and private organizations that are part of SINMETRO:  • CONMETRO - National Council on Metrology, Standardization and Industrial 
Quality; 
 • Assisting Committees of CONMETRO:  • CBAC - Brazilian Committe on Conformity Assessment  • CBM - Brazilian Committee on Metrology  • CBN - Brazilian Committee on Standardization 
 • CCAB - Committee on the Codex Alimentarius of Brazil 
 • CBTC - Committee of Coordination for Technical Barriers to Trade  • CBR - Brazilian Committe on Regulation  • CPCon - Permanent Commission of Consumers  • INMETRO – National Institute of Me trology, Standardization and Industrial 
Quality 
 • Accredited Bodies 
 • Accredited laboratories – Calibration and Tests – RBC/RBLE  • ABNT – National Association of Standardization  • Brazilian Net of Legal Metrology and Quality – INMETRO (RBMLQ-I)  
 Brazil’s Guide on Good Regulatory Practices  sets out criteria of reg ulatory activity for 
all regulatory agencies in Brazil. There is no stat istical data yet on the adoption of Guide by 
Regulatory Agencies. 
 
 Párrafo 134. El INMETRO mantiene un sistema informatizado de base de  datos que contiene 
todos los reglamentos técnicos notificados a la OMC desde 2001.  Aunque no hay un inventario 
central de todos los reglamentos técnicos vigent es en el Brasil, los exportadores pueden utilizar el 
SISCOMEX
 (sección i) supra) para averiguar si el producto  que va a exportarse al Brasil está sujeto 
a algún reglamento técnico.  La Secretaría de la OMC no disponía de estadístic as sobre el número de 
reglamentos técnicos actualmente en vigor ni de l porcentaje notificado a la Organización.  Durante 
el período objeto de examen el Brasil no adoptó ning ún reglamento técnico urgente.  México solita a 
Brasil que proporcionar más información s obre el funcionamiento de SISCOMEX. 
  WT/TPR/M/212/Add.1 
 Page 17 
 
 
 ANSWER: 
  The above-mentioned database is acces sible through http://www.inmetro.gov.br/ 
barreirastecnicas/pontofocal/buscaNotificacao.as p.   Information about SISCOMEX can be 
obtained on the following webpage:   http: //ce. mdic.gov.br/sistemaintegrado/servico.asp. 
 
 Párrafo 135. El Brasil notificó a la OMC 181 reglamentos técnicos durante el período 
considerado.  Las notificaciones abarcan reglamentos  adoptados en varias esferas y por diferentes 
autoridades federales, e incluyen reglamento s MERCOSUR.  Ha disminuido el número de 
notificaciones publicadas c ada año, aunque en los 10 primeros meses de 2008 el Brasil notificó 48 
reglamentos técnicos.  Cerca de la quinta parte  de los reglamentos técnicos notificados se referían a 
productos sanitarios y farmacéuticos;  otros im portantes grupos de productos afectados fueron los 
siguientes:  bienes de consumo;  productos agrícol as;  productos alimenticios;  aparatos eléctricos y 
electrónicos;  productos químicos;  maquinaria;  y bebidas.  México desea conocer el estado que 
guarda el procedimiento del reglamento técnico a través del cual se pretende regular las 
exportaciones de Tequila.   
ANSWER: 
  Brazil’s proposed regulations on spirits, notified under G/TBT/N/BRA/276, 278 and 280, only updates existing regulations dating from 1973. It is worth noting that this process of 
updating has been conducted with great transpar ency: public consultations have been held, and 
additional time for comments has been grante d for interested parties. All comments received 
will be analyzed before the final regulations are published. 
 
 Párrafo 136. No existe ninguna disposición legal que exija a los organismos normativos 
examinar regularmente el contenido de los reglame ntos técnicos, ni tampoco una norma específica 
para su eliminación.  No obstante, la Guía de Buenas Prácticas de Regl amentación del CONMETRO 
abarca esas cuestiones.  Con base en lo indicado  en el párrafo 136, se podría considerar que el 
Gobierno de Brasil no puede publicar el vencimiento de una regulación técnica? 
 ANSWER: 
 
 In its item 5.1.3 (“Principle of Adequacy”)  Brazil’s Guide on Good Regulatory Practice 
states that, in cases of technological modification  of products, it is recommended to revoke the 
respective technical regulation. 
 
 Párrafo 138 Los importadores, exportadores y fabricantes de productos farmacéuticos, 
cosméticos y alimentos deben registrarse en la Ag encia Nacional de Vigilancia Sanitaria (ANVISA) y 
ser autorizados por ésta (sección ix) infra).  Podría  el gobierno de Brasil informar si acepta 
importaciones de cosméticos en materia de etiquet ado (información comercial) en otro idioma que no 
sea el portugués?  
 
ANSWER:   According to the Consumer Protection Law,  labels in Brazil must be written in 
Portuguese. Imported goods, however, can be trad ed with the translation of the original label 
affixed. 
 
 Párrafo 149.  El SINMETRO ha encome ndado la responsabilidad de la elaboración de 
normas (voluntarias) a la ABNT, organismo no gubernamental que recibe apoyo financiero del 
Gobierno federal y está facultado para acreditar a lo s órganos de normalización sectorial (ONS), que 
se ocupan de sectores industriales y económicos específic os.  La ABNT representa al Brasil en la WT/TPR/M/212/Add.1 
Page 18  
 
 ISO/CEI y en los foros regionales de normalizaci ón. México desea conocer quién sería la parte u 
organismo que determina la creación de una norma nacional o en quién recae la decisión.  ANSWER:  
 The process of development of a National St andard is initiated by a request from civil 
society, from an industrial sector  or from a regulatory agency. 
  ABNT (National Association of Standardization) then assesses the adequacy of the request. If it is considered pertinent, it will be  sent to the appropriate Technical Committee, in 
order to be included in the Plan of Sectored Standardization of the appropriate Study 
Commission. In some cases, it may be necessary to create a Special Study Commission. In both 
cases, ABNT tries to involve all interested parties in the discussions.   The Study Commissions must discuss and reach consensus to develop the Draft 
Standard, which is then submitted to consulta tion. Afterwards, the Study Commission meets to 
analyze the comments received. The final Draft is then sent to registration in ABNT, where it 
receives the ABNT NBR denominati on and its respective number.  
 MEXICO (FITH BATCH) 
INDICACIONES GEOGRÁFICAS 
 
¿Quién puede ser el titular de una indicación geográfica en Brasil? 
 ANSWER:  
In Brazil, the registration of a geographi cal indication may be requested by an 
association, institute and any other legal entity  that represent the collectivity or community of 
producers.  
¿Ante quién se presenta la solicitud de registro de una indicación geográfica? 
 
ANSWER: 
 
The application for the registration of a ge ographical indication must be presented 
before the National Institute of Industrial Property.  
Existen indicaciones geográficas protegi das para Brasil y para qué productos se 
aplican? 
 
ANSWER: 
 
Yes. Seven geographical indications are registred in INPI. Four are national 
geographical indications: “Região do Cerrado Mineiro” (coffee), “Vale dos Vinhedos” (wine), 
“Pampa Gaúcho da Campanha Meridional” (beef) and “Paraty” (cachaça). Three are foreign 
geographical indications: “Região dos Vinhos Verdes” (wine – Portugal), “Cognac” (cognac – 
France) and “Franciacorta” (wine – Italy).  There are further nineteen geographical indications, 
whose applications for registration are being examined by INPI. 
 
¿Cuál es la protección que se le otorga a una indicación geográfica extranjera? 
  WT/TPR/M/212/Add.1 
 Page 19 
 
 
 ANSWER: 
 
A foreign geographical indication benefits fr om exactly the same protection given to a 
national geographical indication. Brazil’s legisl ation does not discriminate between national and 
foreign geographical indications. 
 
OBSERVANCIA 
 
¿Cuándo las autoridades confisc an de oficio las mercancías alteradas es decir las que resulta 
difícil o imposible de identificar, que  hacen con dichas mercancías? 
 
ANSWER:  
Customs authorities may destroy the seized goods found to be infringing the law or, in 
some cases, donate such goods to non-profit  charity associations for their own use.  
 
¿Ante quién se presenta la denuncia por violación a los DPI?  
 ANSWER:  
According to the Brazilian Constitution, in its article 5, indent XXXV, every violation of 
right or threat of violation can be taken into a ppreciation of the Judiciary Power, either by the 
victim herself or by a competent authority (v.g. police and prosecutors). There are some 
situations of IPR violations that give place to  a more direct action, as when the right holder 
reports to the Federal Revenue Authority an im inent violation and the Authority confiscates 
temporarily the cargo suspected of infringing IPR.  The Brazilian  Legislation provides for a 
wide array of administrative and judicial remedies, applicable to IPR violations.   
¿En qué circunstancias los jueces podrán ordenar la destrucción del material confiscado por 
violación a los derechos de autor?  ANSWER: 
 
Currently, the Brazilian specific legislatio n (Criminal Procedures Code) provides for 
two situations in which the judge can determine the destruction of items aprehended because of copyright violation.  
 
The first situation is foreseen in article 530- F of the aforementioned Code, and is taken 
on a liminary basis, before the final judgement of the process. There are four conditions that 
must be fulfilled in this case: the judge will on ly order the destruction by request of the right-
holder; the items must not be necessary as evid ence in the process; there must not be any kind 
of impugnation regarding the effective violatio n of copyright; and the perpetrator must be 
identified so that the criminal persecution can proceed. 
 
The second hipothesis is set out in articl e 530-G of the same Code. When sentencing 
definitively, the judge may order the destructio n of goods illegaly produced or reproduced. This 
hipothesis depends only of the judicial authority discretion and has no other condition. 
 
These hipotheses are clearly consistent with Br azilian obligations in the context of the 
TRIPS Agreement, specifically with article 61.  
 Nevertheless, the Brazilian Govt is striving  to increase the number of possibilities in 
which the destruction of infringing goods can be  ordered, mainly to alleviate the facilities where WT/TPR/M/212/Add.1 
Page 20  
 
 these items are stored during judicial procedu res. The National Council of Piracy Combat 
(CNCP, in its Portuguese initials) is currently disc ussing a project of law, aiming at widening 
the range of action of the judges in terms of ordering the destruction of infringing goods. 
 
PATENTES Y OBTENCIONES VEGETALES 
 
 ¿Ante quién se lleva a cabo el procedimiento para conceder una licencia obligatoria de 
patente? 
 
ANSWER: 
 
 Articles 68 through 74 of Brazil’s Industri al Property Act (Law n.º 9,279/1996) regulate 
compulsory licenses. In cases of  national emergency and public interest, compulsory licenses are 
further disciplined by Decree 3,201/1999,  as amended by Decree 4,830/2003. 
 
 Non-exclusive compulsory licenses are issu ed “ex officio” by a Presidential Decree, 
which is published in the Federal Official Gazette, in certain cases when the patent holder or its licensee cannot meet the needs of national emergency or public interest.   The Presidential Decree must be preceded by  an act by the Federal Executive Branch 
stating that there is a national emergency or public interest. Such act is issued by the Minister of 
State responsible for the subject matter and it is also published on the Federal Official Gazette. 
  Brazil has made use of compulsory license only once. On 04 May 2007, one compulsory license was issued by Presidential Decree n. º 6.108 for one anti-HIV drug (Efavirenz). 
 Additional possibilities for the granting of  compulsory licenses in cases of national 
emergency and public interest have not yet been regulated . 
 
 ¿Qué acciones legales o administrativas se realiz an contra las infracciones a las obtenciones 
vegetales y qué autoridad es competente?  ANSWER: 
 
 According to Law 9,456/1997, a person who sells, offers for sale, reproduces, imports, 
exports, as well as packs or holds in storage for these purposes, or provides for any purpose, the 
propagation material of a protected plant variety , under the correct designation or any other, 
without being authorized to do so  by the holder thereof, shall:  
 
 a) pay compensation to the holder;   b) have its unauthorized propagating material seized;   c) pay a fine in the amount equivalent to  twenty per cent of the commercial value 
of the seized material;  
 d) be prosecuted criminally on accounts of infringement of the rights of the 
breeder. 
 
MEXICO (SIXTH BATCH) 
 
 ¿Qué medidas se han implementado a fin de acatar las recomendaciones del arbitraje 
respecto de la importación de neumáticos recauc hutados procedentes de la Comunidad Europea? 
  WT/TPR/M/212/Add.1 
 Page 21 
 
 
 ANSWER: 
  The Panel Report, as modified by the Appella te Body Report, on the Brazil – Retreaded 
Tyres dispute acknowledged that the Brazilian import  ban is justified by the exception of GATT 
Article XX(b) on environmental and public health  grounds, but failed to comply with the caput 
of that article due to imports of used tyres th rough court injunctions and imports of retreaded 
tyres from MERCOSUR. Therefore, Brazil is pursuing compliance by remedying the measures found inconsistent, basically (i) by eliminating im ports based on court injunctions; and (ii) by 
negotiating a MERCOSUR-wide tyre regime.   
 Brazil is taking all necessary steps to comp ly with DSB recommendations as speedily as 
possible, and progress has been made in both aspects. Regarding the court injunctions, the 
Supreme Court proceedings initiated by the Br azilian government are about to reach their 
conclusion, with the judgement already scheduled  to occur in the March 2009. Negotiations are 
also in progress concerning the MERCOSUR i ssue, which has been discussed in several 
instances, and therefore Brazil expects to ac hieve full compliance of DSB recommendations 
shortly.  
 
 ¿Cuál es la razón por la que Brasil no ha dado res puesta a la lista de cuestiones de la OMC 
sobre valoración en aduanas acordada por los miembros en 1995? 
 
ANSWER: 
  Brazil is analyzing this issue internally and will refer it to the Customs Valuation Committee when appropriate. 
 
 ¿Tiene planeado el gobierno brasileño alguna ref orma a su legislación interna que le 
permita implementar los compromisos adquiridos en  materia de inversiones; que a la fecha no se 
han puesto en marcha? 
 ANSWER:  
 Besides the issue of the potential discrimina tory treatment against national investors in 
the face of investor-State arbitration clauses, othe r specific problems were identified, such as the 
obligation of prompt indemnization in case of expropriation, given that the Constitution 
establishes that indemnization for expropriation for agrarian reform purposes must be given in the form of agrarian reform titles.  The agreements have been withdrawn from the Congress 
approval procedure.  
 ¿Qué tipo de mecanismos han puesto en ma rcha en las Aduanas a fin de reducir la 
introducción ilegal de mercancías que atenten c ontra los derechos de autor y la propiedad 
intelectual? 
 
 The Brazilian Customs acts in ports, airports  and border checkpoints, as well as in areas 
legally defined as subject to customs surveillanc e.  The following strategies are applied to the 
Federal Revenue of Brazil to tackle smuggling,  customs evasion, piracy and counterfeiting: 
  
¾ Customs control in all stages of the customs clearance process; 
¾ Growing number of operations ; 
¾ Use of non-intrusive inspection technology and remote surveillance; 
¾ Customs integration with Mercosur Countries; 
¾ International Cooperation; WT/TPR/M/212/Add.1 
Page 22  
 
 ¾ Inter-agency Cooperation with the Federa l Police and the Highway Federal Police – 
integrated action; 
¾ Training of customs employees; 
¾ Remodeling and re-structuring of enforcement activities: 
 
o Exclusive and permanent professional activity; 
o Continuous presence of fiscal authorities; 
o Decentralized planning and action; 
o Focus on results; 
o Purchase of specialized equipment: 
 
 02 helicopters; 
 13 speedboats for maritime and fluvial customs surveillance; 
Motor-homes/mobile offices. 
 
 De la implementación de las actividades de facilitación del comercio, se logró una reducción 
en el tiempo estimado de despacho ad uanero durante 2008, respecto de 2007? 
 ANSWER:  
 Even tough specific statistics concerning cu stoms clearance time reduction for 2008 are 
not yet available, Brazil expects that the trad e facilitation measures implemented during 2008 
result in significantly lower clearance times. 
 
 ¿Que nivel de efectividad ha reportado la eva luación de riesgo realizada por el SISCOMEX? 
 
ANSWER: 
  The most recent statistics available concer ning SISCOMEX indicate that, in 2007, 
85.5% of all ID were processed through the green  channel, 5% through the yellow channel, 
9.3% through the red channel, and 0.2% through the grey channel. 
 
 ¿En qué casos puede el importador realizar  sus operaciones de comercio exterior, sin 
utilizar los servicios de un agente aduanal?  
ANSWER: 
 
 The engagement of customs brokers is not mandatory in Brazil for international trade 
operations.  According to article 808 of the Decree nº 6.759/09,  the importer, the exporter or any 
interested party may be represented, for customs clearence purposes, by any director or employee working exclusively for the interested party, as long as properly authorized, in writing. 
 
 The activities of customs brokers are regulated, in Brazil, by the Decree nº 646 of 1992. 
 
 ¿Además de la revisión en la aduana de las mercancías importadas, existen revisiones 
posteriores en el lugar de destino? 
  WT/TPR/M/212/Add.1 
 Page 23 
 
 
 ANSWER: 
  In principle, customs inspections of imported goods take place during clearance 
procedures. Where appropriate, however, cert ain products may be subject to additional 
inspections by other competent authorities at their destination. 
 
 ¿Se han cumplido con los objetivos planteados al implementarse en 2007 las directrices para 
la elaboración de reglamentos técnicos?  ANSWER: 
 
 The Guide on Good Regulatory Practi ces was approved by CONMETRO (National 
Council of Metrology, Standardization and Industri al Quality) through Resolution n. 5, of 
18 December 2007. They resulted from a wide consultation process among concerned governmental agencies and other stakeholders. The Guidelines follow the principles, disciplines 
and recommendations of the TBT Agreement, promotin g, in particular, the use of international 
standards and of performance based regula tions. The results have been encouraging. 
 
 ¿Ha tenido Brasil que hacer reformas a su legi slación interna, a fin de adaptarse a los 
acuerdos adquiridos en el marco de la OMC?  
ANSWER: 
  The WTO Agreements became part of the nati onal legal system through the Presidential 
Decree n. 1355/94, which revoked any contrary disp osition. Besides, some legal frameworks had 
to be adapted, such as: intellectual property, commercial defense, etc.  
 
 Yes, some changes were needed when Braz il incorporated the WTO Agreements to its 
national legislation, which was implemented by the Presidential Decree 1.355, issued in 12.30.1994.   ¿Cuáles han sido los avances más significativos  que ha tenido Brasil en los últimos tres años 
respecto de la participación de capital extr anjero en las entidades financieras brasileñas? 
 ANSWER:   Foreign banks are well established in Braz il. The market share of foreign banks, 
authorized to operate in Brazil in the last d ecade, currently corresponds to 23% of the total 
assets of the Brazilian banking sector. However, in the last three years, in Brazil as in the rest of 
the world, financial services were negatively affected by the global economic crisis. 
  ¿Cuáles han sido los avances que ha logrado Brasil en la inserción de la competencia en las 
telecomunicaciones básicas? 
 
ANSWER: 
  Article 19 of the General Law of Telecommunications (Law 9472/97) mandates ANATEL to act in coordination with CADE in the control and repression of anti-comepetitive 
practices in telecommunications. Although the final decisions are made by the CADE, ANATEL 
has been contributing to the Brazilian Competitio n Policy System (BCPS) with opinions based 
on its expertise in the regulation of this sector. 
 WT/TPR/M/212/Add.1 
Page 24  
 
  Qué medidas legales esta tomando o va a tomar Bras il, en los casos de incumplimiento de las 
medidas no arancelarias por la importación de m ercancías de comercio exterior a su territorio 
nacional procedentes de los países miembros del MERCOSUR?  ANSWER: 
 
 In case such a circumstance arises, Brazil will examine which steps to take. 
 
¿Qué opinión tiene Brasil respecto de los Cuad ernos A.T.A., para la Admisión Temporal de 
Mercancías y su Anexo, hechos en Bruselas, el sei s de diciembre de mil novecientos sesenta y uno, y 
en su caso, si ha tomado alguna medida para considerar su adhesión a dicho Convenio? 
 ANSWER:  
Brazil considers that ATA Carnet is a valuable tool to simplify and expedite customs 
procedrures related to temporary admission of goods. Therefore, Brazilian government has 
recently sent to Congress a project to become a Member of the Istanbul Convention, which 
contains the ATA Carnet provisions . 
 
¿Cuáles han sido los avances que ha tenido Brasil para permitir el acceso a su mercado de 
prestadores de servicios profesionales  extranjeros, de  conformidad con el Acuerdo General sobre el 
Comercio de Servicios? 
 ANSWER:  
Brazil GATS commitments in Mode 4 are fu lly implemented, but since Brazil has a 
relatively big, well qualified and not costly la bor force, there is not much demand for foreign 
professionals for service supply. 
 ¿Cuáles han sido los avances que ha tenido Brasil para permitir la participación de capital 
extranjero en los sectores de la banca, seguros y valores?  
ANSWER: 
  Complementary Law No. 126/07 contains  provisions on cross-border supply of 
insurance services.   
 
 ¿Quién integra el Consejo de Contribuyen tes, que conoce en segunda instancia de las 
decisiones de la Administración de Aduanas?  ANSWER:   Information on Membership and other provisions regarding the Taxpayers’s Council 
can be found on Directive MF Nº 55, of 16 Ma rch 1998, and Directive MF Nº 103, of 23 April 
2002. 
 
 ¿Cuál es la naturaleza jurídica de las resoluciones emitidas por el Consejo de 
Contribuyentes? 
 
ANSWER:   Information on Taxpayers’ Council’s decision s can be found on Directive MF Nº 55, of 
16 March 1998, and Directive MF Nº 103, of 23 April 2002.  WT/TPR/M/212/Add.1 
 Page 25 
 
 
 MEXICO (SEVENTH BATCH) 
 III. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS (1, Panorama 
General)  
 
 En el párrafo 3 se indica que Brasil aplica im puestos de exportación a los cigarros (puros), 
los cueros y las pieles. Brasil prohíbe la ex portación de sus cueros crudos siendo un país 
superavitario, lo que distorsiona las fuerzas  naturales del Mercado de Oferta y Demanda provocando un abatimiento de los pr ecios del cuero crudo en el Mercado Doméstico, permitiendo a 
los curtidores de ese país producir pieles termi nadas a precios muy por debajo a los del mercado 
internacional; por otra parte, gr ava la exportación de cueros en estado wet Blue que es materia 
también materia prima del curtidor (entre un 4- 10%), obligando a los curtidores a terminar los 
cueros en Brasil. Tradicionalmente Brasil exporta año con año a México una gran cantidad de calzado para caballero y sandalias principalment e para dama, producidos con cuero y pieles a 
precios con los que el curtidor mexicano no puede competir.  Por lo anterior, México desearía saber 
si Brasil tiene contemplado quitar la prohibición a la exportación de cueros crudos y desgravar la 
exportación de los cueros en estado wet blue. 
 
ANSWER: 
  The export tax on wet blue leather was adopted in a context where most leather 
importers apply tariff escalation to the leather chai n. For the time being, there is no phasing-out 
or plan to eliminate this tax.  III. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS (2 Medidas que afectan 
directamente a las importaciones / v) Otras cargas que afectan a las importaciones) 
 
 En el párrafo 70 se menciona que los productos nacionales y los importados están sujetos a 
las contribuciones al Programa de In tegración Social (PIS) y a la financiación de la seguridad social 
COFIN. México desearía saber porque el PIS y la COFINS no se aplica a las exportaciones de bienes 
y servicios de Brasil.  
ANSWER: 
  PIS and COFINS are not applied on ex ports bacause they are indirect taxes. 
 MEXICO (EIGHTH BATCH) 
 
 ¿Prevé la Ley de Derecho de Autor y Derechos  Conexos la protección de títulos, nombres, 
denominaciones, características físicas y psicológicas distintivas , o características de operación 
originales aplicados, de acuerdo con su natur aleza a alguno de los siguientes géneros:? 
  I. Publicaciones periódicas: Editadas en par tes sucesivas con variedad de contenido y que 
pretendan continuarse indefinidamente; 
 II. Difusiones periódicas: emitidas en par tes sucesivas con variedad de contenido y 
susceptibles de transmitirse;  III. Personajes humanos de caracterización o ficticio o simbólicos;  IV. Personas o grupos dedica dos a actividades artísticas; y 
 V. Promociones publicitarias: contemplan un mecanismo novedoso y sin protección 
tendiente a promover o ofertar un bien o un servic io  con el incentivo adicional de brindar la 
posibilidad al público en general de obtener otro bien o servicio en condic iones más favorables que 
en las que normalmente se encuentra en el comercio. 
 WT/TPR/M/212/Add.1 
Page 26  
 
  De ser este el caso, ¿bajo qué figura jurídica los protege? 
  ¿Prevé la Ley de Derecho de Autor y Derechos Conexos la protección de las expresiones del 
folclore? De ser este el caso, ¿qué abarca la protección de dichas expresiones?  
 ¿En qué casos varía la duración de la prot ección del derecho de autor en Brasil? ¿Podría 
dar un ejemplo de esos casos?   ¿Cual es la duración de la protección de los derechos conexos en Brasil? 
 
 ¿Contempla la Ley de Derec ho de Autor y Derechos Conexos o alguna otra legislación 
disposiciones sobre protección jurídica y recursos ju rídicos contra la acción de eludir medidas 
tecnológicas, así como contra la supresión o altera ción de información electrónica sobre la gestión 
de derechos?  
ANSWER: 
  The works protected under th e Brazilian Copyright Law (law number 9.610 of 1966) are 
defined in Chapter I of Title II, as follows:  Title II - Intellectual Works 
 
Chapter I - Works Protected  7. The intellectual works that are protected are creations of the mind, whatever their mode 
of expression or the medium, tangible or intang ible, known or susceptible of invention in the 
future, in which they are fixed, such as: 
  I. the texts of literary, artistic or scientific works;  II. lectures, addresses, sermons and other works of the same kind;  III. dramatic and dramatico-musical works;  IV. choreographic and mimed works whose stage performance is set down in writing 
or otherwise; 
 V. musical compositions with or without words;  VI. audiovisual works, with or without accompanying sounds, including 
cinematographic works; 
 VII. photographic works and other work s produced by a process analogous to 
photography; 
 VII. drawings, paintings, engravings, sculptures, lithographs and works of kinetic 
art; 
 IX. illustrations, maps and ot her works of the same kind; 
 X. drafts, mock-ups and three-dime nsional works relating to geography, 
engineering, topography, architecture, pa rk and garden planning, stage scenery 
and science; 
 XI. adaptations, translations and other transformations of original works, presented 
as new intellectual creations; 
 XII. computer programs;  XIII. collections or compilations, antholog ies, encyclopedias, dictionaries, databases 
and other works which, by virtue of th e selection, coordination or arrangement 
of the subject matter, constitute intellectual creations. 
 (1) Computer programs shall be the subject of specific provisions, due account being taken of the provisions of this Law that are applicable to them.  WT/TPR/M/212/Add.1 
 Page 27 
 
 
 (2) The protection conferred under item XIII shall not extend to the information or 
material itself, and shall be understood to be wi thout prejudice to any copyright in the data or 
elements incorporated in the works. (3) In the field of science, protection shall be co nferred on the literary or artistic form of the 
work, but shall not extend to its scientific or t echnical content, without prejudice however to the 
rights accorded to incorporeal property by virtue of other provisions. 
 8. The following shall be excluded from copy right protection within the meaning of this 
Law:  
 I. ideas, normative procedures, system s, methods or mathematical projects or 
concepts as such; 
 II. diagrams, plans or rules for perf orming mental acts, playing games or 
conducting business; 
 III. blank forms intended for completion with all kinds of scientific or other 
information, and the instructions appearing thereon; 
 IV. the texts of treaties or conventions, la ws, decrees, regulations, judicial decisions 
and other official enactments; 
 V. information in common use such as that  contained in calendars, diaries, registers 
or legends; 
 VI. names and titles in isolation; 
 VII. the industrial or commercial exploita tion of the ideas embodied in works. 
 9. A copy of a three-dimensional work made by the creator of the said work shall enjoy the 
same protection as the original.  
10. The protection of an intellectual work shall ex tend to its title, provided that it is original 
and not liable to be confused with that of a work  of the same nature disclosed earlier by another 
author.   Sole paragraph. The titles of periodical publications, including newspapers, shall be 
protected for a period of one year from the public ation of the last issue, except in the case of 
annual publications, in which case the period shall be two years.  
SINGAPORE 
 
 Singapore agrees with Brazil’s call to furth er strengthen the multilateral process through 
WTO to avoid the risky path of protectionism (WT/TPR/G/212, page 5, Section I, Para 2). However, it 
was reported in news media in Nov 08 that M ERCOSUR, which Brazil is a member of, had proposed 
an increase of the common external tariff for dai ry produce, leather goods, textiles and the wood 
industry, yet to be ratified by members. Woul d MERCOSUR be proceeding with the proposal? 
 ANSWER: 
 
 Changes to the CET are routinely discussed in Mercosur´s Decision Bodies and include 
both proposals to reduce rates and proposal to  raise certain duties. Some of the proposals 
mentioned by Singapore are indeed being discusse d but no decision has been taken on them.  
 
 The increases in the CET being discussed are part of the routine exercise mentioned 
above, have no relation to the economic crisis, and,  if implemented, will be very limited in scope 
and designed to address very specific situations .  
 WT/TPR/M/212/Add.1 
Page 28  
 
  We would also welcome information on how Brazil has taken up the leadership role in 
MERCOSUR to promote multilateral trade liberaliza tion, especially in the midst of the current 
economic downturn.   ANSWER: 
 
 Brazil reaffirms its committment to multilat eral trade liberalization and continues to be 
at the forefront of the battle against protectionism, both regionally and globally. 
 
 The WTO Sec report notes that capital gains re patriation is subject to 15% income tax 
withholding. (WT/TPR/S/212, page 16, Section II.4, Para 21) However, we understand that 
remittances made by Brazilian residents to non-residents in low-tax jurisdictions will be subject to a 
25% withholding rate instead of 15%.  Can Brazil explain how it determines which countries are low-
tax jurisdictions, on what basis the determina tion is applied, and clarify the rationale for the 
differential treatment? 
 
ANSWER:   The definition of “low tax jurisdiction” is set by law nº 9430/1996, as amended by law 
11.727/2008. This law establishes that a country  or dependency which fails to tax income or 
whose tax rate is 20% or lower is a “low tax ju risdiction”. Countries or dependencies which fail 
to grant public access to information concerning ownership of property are also termed “low 
tax”.   The Brazilian Tax Administration understands that charging a heavier rate to capital flows between Brazil and low tax countries or dependencies is a means to rebalance the tax 
burden of companies operating in both jurisdicti ons and thus prevent tax evasion. In such a 
way, investment decisions taken on grounds of market-related issues rather than tax-planning 
will not be hindered by such provision.  CHINESE TAIPEI  
 
Report WT/TPR/S/212 I. ECONOMIC ENVIRONMENT (6) DEVELOPMENTS IN TRADE AND INVESTMENT (page 10-12) 
 
 The economic performance of Brazil has gaine d universal recognition in recent years, with its 
per-capita GDP doubling between 2004 and the first ha lf of 2008, the unemployment rate decreasing, 
the inflation rate being under control, the public  finance debt improving, and the foreign direct 
investment increasing sharply, etc. However, we are aware that its economy has been affected by the 
financial storm since the second half of 2008.  Ha s Brazil implemented any special policies or 
measures, under this circumstance, to guard its domestic industry and to ensure the continuing 
growth of its exports since the latter half of 2008?  
ANSWER: 
  Notwithstanding the international financia l crisis, Brazilian banks fared well in 2008. 
Brazilian financial institutions were not exposed to toxic assets and did not own papers related 
to the US mortgage market. Moreover, their lever age levels over capital are far below Basel II 
requirements, at 6,5.    WT/TPR/M/212/Add.1 
 Page 29 
 
 
  Brazil has been affected, however, by the f reeze of foreign credit markets. Lower prices 
have also hurt profit margins of Brazilian exporters.   The Brazilian Government has acted to stimulate the financial system as well as to support consumption. The Ministry of Finance has cut taxes, created new credit lines to fund 
home constructors and enhanced credit suppl y to farmers. The Brazilian Central Bank, 
similarly to other Central Banks, has provided liquidity to boost the interbanking credit 
market. The Central Bank has also auctione d US dollars from our international reserves. 
  Brazil’s successful economic performance reflects sounder policy frameworks, such as 
floating exchange rate and inflation targeting regimes, as well as somewhat lower fiscal and 
external indebtedness.  II. TRADE AND INVESTMENT REGIME (3) TRADE POLICY FORMULATION AND IMPLEMENTATION AND OBJECTIVES 
(Page 15, Paragraph 16)  
 As indicated in the Report, Brazil supports th e south-south trade. Furthermore, its major 
trade objective continues to be to reinforce the M ercosur customs union. However, we notice that only 
10% of Brazilian merchandise trade takes place with  Mercosur Members which is indicated in 
Paragraph 6 of Page xii.  (1) We are interested in knowing how Brazil will reinforce its integration 
with Mercosur to reach its trade objectives as a customs union?  (2) Facing with the current financial 
crisis, will Brazil make any adjustment for its objectives on South-South trades or the Mercosur, and strengthen the trading relationship with developed countries? 
 
ANSWER: 
 
 Brazil is committed to moving forward to achieve the objectives established in the Treaty of Asunción and foster integration in diff erent sectors. State Parties are actively working 
to consolidate the Customs Unio n, in areas as diverse as technical regulations, customs 
procedures, the drafting of a common customs co de and the elimination of the double charging 
ot the CET. Liberalization of trade in in services shall be concluded in 2015.  
 
 Another important tool to promote better trade for the smaller economies is the Structural Convergence Fund (FOCEM), which is aimed at increasing the competitiveness of 
the least-developed regions of the State Parti es. Established in 2006, FOCEM aims at funding 
projects of structural convergence, development of infrastructure and social cohesion in 
Mercosur. The Fund is made of contributions from  the four member States that amount to 100 
millions dollars annually, of which Brazil contributes with US $ 70 million. Paraguay and Uruguay are the main beneficiaries of FOCEM, receiving 48% and 32% of the resources, respectively.     In addition, different initiatives to promote the integration of production chains within 
Mercosur are being implemented and, in De cember 2008, a Fund help finance small and 
medium-sized enterprises was created. 
 WT/TPR/M/212/Add.1 
Page 30  
 
 III. TRADE POLICIES AND PRACTICES BY MEASURE   
(2) MEASURES DIRECTLY AFFECTING IMPORTS  (vi) Contingency measures (b) Safeguards (Page 44, Paragraph 102) 
 
 The paragraph 102 indicates that Brazili an safeguard measures can be applied for a 
maximum of four years, renewable for six years.  Could Brazil please clarify if its safeguard measures 
are consistent with Article 7.1 and Ar ticle 7.3 of the Agreement on Safeguards? 
 
ANSWER: 
 As a developing country Article 9.2 of th e WTO Agreement on Safeguards applies in the 
case of Brazil. This Article states that “A developing country Member shall have the right to extend the period of application of a safeguard measure for a period of up to two years beyond 
the maximum period provided for in paragraph 3 of Article 7. 
 
(vii) Prohibitions, restrictions and licensing 
(c) Quantitative and other restrictions (Page 47, Paragraph 118, 119, 120 & Page 48, Paragraph 121) 
 
 Paragraph 118 indicates that u nder Brazilian legislation, a good may only be exempted from 
import duties, including imports by  federal or sub-federal governme nts, when no similar domestic 
product is available. A “similarity test”, conducted by SECEX, must be applied on imports for this 
purpose. Furthermore, it is mentioned in Paragr aph 121 that the imports fr om other ALADI countries 
are subject to special rules for the application of the similarity test.  (1) What are the special rules for 
the application of the similarity test in imports fr om other ALADI countries?  (2) Does this similarity 
test apply also for imports from countries with  preferential trade agreements with Brazil? 
 ANSWER:   The rules governing the similarity test a re applied on a general basis. They are not 
related to particular preferential agreements. The paragraph 121 of the Report of the 
Secretariat is inaccurate.  
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(iii) State-owned enterprises, privatization, and state trading (Page 75, Paragraph 264-266) 
 
 Paragraph 264 indicates that, in 2008,  there were 135 majority government-owned 
enterprises in Brazil covering a wide range of ac tivities: electricity, petr oleum and petrochemicals, 
port services, transportation services, and health service s. Furthermore, Paragraph 265 stated that 
plans for future privatizations of the governme nt-owned enterprises will focus on granting 
concessions in electricity generation and transmission,  oil exploration and trans formation, and public 
service.  (1) Is there any specific regulation to prot ect those government-owned  enterprises? If so, 
would that impede the foreign investors to enter the domestic market of Brazil?  (2) Is there any 
timetable of future privatizations fo r other government-o wned enterprises? 
 
ANSWER:  
 
 There is no specific regulation to protect government-owned enterprises in sectors open 
to private investment. Furthermore, the Brazilia n Constitution determines that national and  WT/TPR/M/212/Add.1 
 Page 31 
 
 
 foreign companies established in Brazil according to domestic legislation must receive the same 
treatment.    The Brazilian Government does not discard the possibility of granting concessions in 
certain sectors in the future, but there are no  specific plans as such in this sense. 
 
IV. TRADE POLICIES BY SECTOR 
(4) ENERGY (Page 112, Paragraph 70) 
 
 As indicated in the Report, the Federal Go vernment of Brazil holds exclusive rights over the 
exploration, extraction, refining, importation, exportation, and maritime and pipeline transportation 
of Brazilian petroleum, natural gas and their derivatives. However, it may authorize private companies, constituted under Brazilian law, to exerci se these rights through concessions granted by 
the ANP.  Are there any criteria or process when  the ANP determines these concessions? For foreign 
investors, are there any specific requirements or reviewing criteria?  
ANSWER: 
  Brazilian Federal Law no. 9.478, of 6 August  1997, establishes the national energy policy 
and regulates activities relating to the monopoly on oil. It also creates the National Oil Agency 
(ANP) and entrusts it with (art. 8, IV) “ela borating the announcements and promoting the 
public biddings for the exploration, development and exploitation, celebrating the related contracts and verifying their execu tion”. It also defines the crit eria to be observed by the ANP 
in its announcements, judgments and contracts.  
 The ANP has since realized 10 rounds of concessions by public bidding, in which 
companies both national and foreign have been gr anted the right to explore, develop and exploit 
areas of interest. No difference is made betw een national and foreign investors, in the 
participation in biddings or in the execution of  contracts. Further information can be found in 
the ANP website. 
 
(Page 112, Paragraph 72) 
 
 As indicated in the Report, at end 2008, the Government and the Congress of Brazil were 
discussing possible changes to the system of royalties as  well as to other rules governing extraction of 
hydrocarbons.  Is it possible to provide the further information to us and other WTO members, if there 
is any follow-up? 
 ANSWER:   Paragraph 72 on page 112 refers to the newly discovered oil reserves in Brazil’s “Pre-Salt”areas in the Atlantic coas t. Large investments are necessa ry to exploit the new reserves, 
and the production of the pre-salt fields is exp ected to double Brazil’s current production of oil 
by 2020. Due to the technical specificities and cost s associated with the new reserves, a possible 
new regulatory framework is under consideration by governmental agencies.   By a Decree of 17 July 2008, the President of Brazil has created an Interministerial 
Commission to “study and propose the necessary  changes to the legislation regarding the 
exploration and exploitation of oil and gas reserves  in the new oil provinces discovered in the so-
called Pre-Salt area”. Ther e are presently five models under examination by the 
Interministerial Commission, which will finish it s works and present the results to the President WT/TPR/M/212/Add.1 
Page 32  
 
 in March 2009. Reserves outside the Pre-Salt area  and contracts already concluded will not be 
affected. 
 
(6) SERVICES 
(Page 132, Paragraph 178 to 180) 
 
 As indicated in the report, Brazil also uses the price cap formula to adjust the prices of both 
fixed and mobile telephone services.  (1) What te lecom services in Brazil are currently price-capped? 
 ANSWER: 
 
 The price cap formula is only used to adjust the prices of fixed telephone services in a public regime. Mobile services are run in a pr ivate regime and has no price-cap for public 
prices. 
 
(2) Could Brazil please explain the value of produc tivity factor (X factor) of telecom services, 
including both fixed and mobile telephone services?  (3) Could Brazil please explain how often the X 
factor will be adjusted and reviewed? 
 
ANSWER (2) and (3): 
 
 Since 2008, the X factor is being calculated by a methodology that combines two indexes. 
The first index, known as “Fisher´s model”, is based on the annual concessionaries productivity 
and considers the variation of efficiency between the quantity of goods and services produced and the inputs used, and a sharing coefficient (C factor) equal to 0,5. This means that 50% of the productivity gains owned by the concessionar ies are transferred to consumers. The other 
index, known as DEA (Data Envelopment Analys is), calculates, in every three years, the 
productivity that should be aimed by concessionaries, considering an optimized use of inputs in telecommunication sector and a C factor equal to 0,75. In this case, 75% of the productivity gains earned by the concessionary are transfe rred to consumers. For the period of 2008 and 
2010, the X factor was calculated based on the concessionaries productivity for the period of 
2004 and 2007.   For further details, see Resolution nº 507/2008.  
 
INDIA   
 
ECONOMIC  ENVIRONMENT - QUESTION 1 PARA 2.  
 
 Brazil posted a surplus in the current account  of the balance of payments throughout 2003-
02, although a deficit was recorded in the first ha lf of 2008.  Could Brazil elaborate on the reasons 
for the deficit and the steps taken to tackle it?  
 
ANSWER: 
 
 Such development was caused by two main fa ctors: firstly, the fast growth of the 
Brazilian economy, which increased demand for goods; secondly the appreciation of the real, 
which made imported goods cheaper and made  Brazilian exports more expensive, while 
increasing some of the negative items of the BoP, like travel expenses.   
 The real appreciated also as a result of the huge inflow of Foreign Direct Investment. In 
2006, FDI amounted to US$ 22,231 billion. In 2007, it jumped to US$ 33,704 billion; and in 2008, to US$ 43,886 billion.    WT/TPR/M/212/Add.1 
 Page 33 
 
 
  In the second half of the last year, the real underwent a fast devaluation. As a result of 
the financial crisis, many foreign  investors decided to withdraw their funds from Brazil to cover 
the losses they had in their home countries.    In recent years Brazil has successfully  pursued an aggressive strategy of trade 
promotion which cushions the present fall of forei gn trade. One of the pillars of this strategy 
was the diversification of export markets.  QUESTION 2. PARA (2) OUTPUT AND EMPLOYMENT 
 
 Despite important advances, resulting in impro ved living conditions, income inequality and 
poverty levels remain high.  The OECD considers it essential to reduce widespread informality and 
tax evasion in order to improve growth perform ance through better use of labour and to alleviate 
income disparities.  Could Brazil explain what are the reasons for such high levels of income 
inequality and poverty levels desp ite improvements in the living conditions and what broad policy 
measures the Government has taken  and proposes to take to compreh ensively address th ese issues?  
 ANSWER:   Brazil is working to improve its income di stribution. As it is known, economic growth 
“per se” does not reduce income inequality, and changes occur at a gradual pace.  
 
 A report from IPEA (Institute for Applie d Economic Research) published in June 2008 
measured income inequality in Brazil. It co ncluded that income inequality in Brazil has 
constantly fallen since 2002, accelerating since 20 04. The Gini Index of Brazil decreased from 
0.540 in 2002 to 0.509 in 2007, at an average rate of 4.9% per trimester since 2004. From 2003 to 
2007, the poorest 10% of the population perceived an income growth of 22%. 
 QUESTION 3. PARA (3) FISCAL POLICY PARA 12 
 
 Despite a decrease in the interest payments burde n since 2005, to 4.7% of GDP in 2007, 
primary surpluses have not been su fficient to cover them completely , resulting in an overall Central 
Government deficit of 2.2% of GDP in 2007, and a cons olidated public sector deficit of 2.3% of GDP.  
Could Brazil please elaborate what measures it proposes to take to address the issue of central 
government deficit and consolidated public sector deficit?   ANSWER: 
 
The public sector deficit in Brazil is expressed in consolidated terms, i.e. including 
figures of the Central Government, States, Munici palities as well as state-owned-enterprises. It 
offers a comprehensive view of the fiscal situatio n of the country, which is the most important 
for macro-economic purposes, and to  allow the monitoring of all participants of the system. 
 
 The Ministry of Finance has implemented annual targets for primary surplus as a 
means to stabilize or even reduce the relation debt/GNP. Preliminary report of the Brazilian Central Bank shows that nominal public deficit has decreased in the past two years. In 2007, 
nominal deficit accounted for 2,3% of GNP. In 2008, it dropped to 1,53% of GNP. 
 
 The Law of Fiscal Responsibility, issued in 2000, is also an important instrument of 
public administration. Such law establishes st rict requirements for public expenditure and 
public financing. 
 WT/TPR/M/212/Add.1 
Page 34  
 
 QUESTION 4. PARA 14. 
 
 The authorities consider tax reform a priority  and have identified a number of problems to be 
addressed, including:  high compliance costs;  impr oving tax neutrality;  reducing tax complexity;  
eliminating distortions and fiscal competition;  ab olishing cumulative taxes;  elimination levels of 
different state value-added taxation;  and reduc ing excessive taxation on payrolls.  The authorities 
consider that Brazil currently has the fiscal space for tax reform.  To this end, as at October 2008, a 
tax reform Bill was under examination by Congress.  The authorities estimate that the measures 
contained in the Tax Reform Bill could prop up GDP growth by half a percentage point per year over 
a 20-year period.  Could Brazil please inform if th ere is any time frame for the Congress to pass the 
Tax Reform Bill given the scenario that the refor m could prop up GDP by half a percentage point 
over a 20-year period? 
 
ANSWER: 
 
 The Tax Reform Bill was elaborated to correct the distortions of the national tax system. 
The Bill has already been approved by the Special  Commission of the House of Deputies, and is 
ready to be voted in the plenary session of th e House. However, a time-frame for the final 
approval cannot be determined, considering th at a Bill of this magnitude requires long 
discussions in Congress and with the stakeholders.  
 
QUESTION 5. PARA 16. 
 
 In May 2008, the Minister of Finance ann ounced the creation of the Brazilian Sovereign 
Fund (FSB) (Chapter IV).  A bill in this respect wa s presented to Congress in June;  in October 2008, 
discussions were still being held with respect to the nature of the FSB.  Could Brazil please inform 
what are the salient features of the Bill/ Law and if the  Bill has since been passed? 
 
ANSWER: 
  The Brazilian Sovereign Fund (FSB) was established by Law 11.997, promulgated by Presidente Luiz Inácio Lula da Silva on 26
th December 2008. The decree that establishes the 
rules under which the FSB will operate has not b een issued so far. Such provisions are still 
being discussed within the Brazilian Government.   The FSB was conceived as a means to suppo rt Brazilian investment abroad. Internally, 
it is also aimed at working as a counter-cyclical instrument in the fiscal policy, investing funds 
in moments of public surplus and injecting funds in moments of fall of tax revenue. 
 QUESTION 6. (4) MONETARY AND EXCHANGE RATE POLICY PARA 20. 
 
 Inflation was in the 3.6-6.9% range between 2004 and 2007; it declined between 2003 and 
2006, but has been increasing since 20 07, triggered partly by higher food and oil prices, and despite 
the positive effects of the appreciatio n of the real.  What steps Brazil has taken to bring inflation 
under control and what is the inflation forecast for the rest of 2009 and 2010?  
 
ANSWER: 
 
 Since 1999, Brazilian monetary policy is or iented towards controlling inflation. The 
Central Bank pursues inflation targets establis hed by the government each year and takes all 
necessary measures to make sure this goal is met. Since the adoption of the system, the inflation 
target was missed only in 2001 and 2002. For 20 09 and 2010, the market forecasts that inflation 
in Brazil will be around 4.5%.  WT/TPR/M/212/Add.1 
 Page 35 
 
 
 QUESTION 7. PARA 21. 
 
 The Central Bank considers that high spreads  are a result of a still high delinquency rate, 
high bank profit margins, and high administrative costs, as well as a lack of competition and 
transparency in the market.  Could Brazil please share details of specific steps taken in each category 
to effect changes to improve these conditions?  
 ANSWER:   The Brazilian Government believes high sp reads curtail productive investments and 
limit the growth potential of domestic output. To address this problem, Central Bank of Brazil 
has started to publish an index listing the costs of  all financial services charged by banks in the 
country. Another decision was to allow employees  to have their wages deposited freely in any 
bank they choose. Both measures were designed to increase competition in the banking market 
and curve financial costs. 
 
 It is under discussion in the Brazilian Co ngress the creation of a so-called ‘Positive 
Registry’, a database of individual banking tran sactions. Adherence to this registry would be 
voluntary, but it would help banks to better assess client’s risk profile, reducing loan’s interests. Banks claim that delinquency accounts fo r 37% of current spreads composition.   
 
QUESTION 8. PARA 24. 
 
 Foreign exchange regulations were liberalized  further during the period under review, 
although the reform has run short of achieving full  convertibility of the real.  Does Brazil has a 
timeline specific plan to achieve full convertibility? 
 
ANSWER: 
  Brazil does not have a timeline specific plan to achieve full convertibility of real. 
 
QUESTION 9.  (5) BALANCE OF PAYMENTS PARA 25. 
 
 The current account balance deteriorated further in the first half of 2008, when a deficit of 
US$17 billion was posted, corresponding to the continued increase in  imports of goods and services, 
not matched by the increase in exports.  Could Br azil please elaborate steps taken to restore balance 
in its current account? 
 
ANSWER:   For the 12 month period ended in October 2008, the current account presented a net deficit of 1.71% of the GDP, reflecting the international crisis, which resulted in higher profit remittances and in a lower trade balance. This  scenario is expected to change with the 
devaluation of the real, with eventual rem ittances being compensated with the relative 
maintenance of the foreign direct investment levels.  QUESTION 10. PARA 28. 
 
 Brazil's total external debt declined s ubstantially between 2003 and 2005, but resumed 
growth, albeit moderately, thereafter.  Most of th e new debt, however, is private-sector debt; the 
share of public sector external de bt has fallen from over half to a third of the total.  What are the 
implications for Brazil’s over all de bt burden of this development? 
  WT/TPR/M/212/Add.1 
Page 36  
 
 ANSWER: 
  The new configuration of Brazilian debt burden is more sustainable. The main implications are related to the results in the public financial balance, as the government can 
benefit from the real devaluation. 
 
II. TRADE AND INVESTMENT POLICY REGIME 
QUESTION 11 (1) OVERVIEW PARA 1. 
 
 Brazil did not ratify the Fourth Protocol, on telecommunications.  Does Brazil have any plans 
to ratify the Fourth Protocol?  
 ANSWER:   Brazil presented in 2000 an offer intended to  rectifying the situation generated by its 
impossibility to ratify the IV Protocol in the 1997 form, but such offe r was rejected by some 
Members (United States, Hong Kong/China, Euro pean Communities, Japan). Adoption of the 
IV Protocol as such is thus not under considera tion.  However, Brazilian revised offer includes 
commitments in the telecommunication services sector. 
 
QUESTION 12. PARA 3. 
 
 Foreign and Brazilian investors receive the same  treatment unless restrictions are imposed 
on foreign investment by a specific law.  Thus, foreign  participation is restricted in activities such as 
rural property, health, telecommunications, the mass media, as well as maritime and air transport.   
Does Brazil plans to open up th ese areas for foreign investment? 
 
ANSWER:   Changes in these areas have not been und er consideration, except for air transport, 
where bills changing present requirements are under examination in Congress.  
QUESTION 13.   
 Brazil has signed bilateral investment agreemen ts with several countries, including within 
MERCOSUR;  however, none of these agreements is in  force, due to concerns expressed in Congress 
with respect to their constitutionality.  What  is the current status of these agreements? 
 
ANSWER: 
  The agreements have been withdrawn from the Congress approval procedure. 
 
QUESTION 14. (3) TRADE POLICY FORMULATION AND IMPLEMENTATION AND 
OBJECTIVES PARA 25.   
 Brazil's regulations do not allow foreign par ticipation in nuclear energy, health services 
(except insurance), hydraulic (hydro?) power gen eration, or postal and telegraph services.  Could 
Brazil inform the criteria for placing these sect ors in the negative list for foreign investment? 
 
ANSWER:   Foreign investment in those sectors is not a llowed for strategic or public policy reasons. 
  WT/TPR/M/212/Add.1 
 Page 37 
 
 
 QUESTION 15. PARA 27. 
 
 Management, as well as 70% of the cap ital, of newspapers, magazines, and other 
publications, and of television and radio netwo rks is reserved for Brazilians, including those 
naturalized for more than ten years.  Postal servi ces such as pick-up, transport, and delivery of 
letters, postcards, and grouped correspondence, iss uance of stamps and other postage payments 
forms, as well as telegraph services, are under Fede ral Government monopoly.  Restrictions apply to 
foreign participation in cable TV services and various satellite-related activities (Chapter IV(6)(iii)).  
Does Brazil have plans to open up these areas to  non-Brazilians and easing restrictions currently 
applying on foreign participation in cable TV services and various satellite-related activities? 
 
ANSWER:   Changes in those legislations are no t under consideration at this moment.  
 
QUESTION 16. (5) INTERNATIONAL RELATIONS (I) WORLD TRADE ORGANIZATION 
PARA 34. 
 
 However, it announced in the Committee on Tr ade in Financial Services in November 2007, 
that the Fifth Protocol had passed the first readi ng in both houses of the Brazilian Congress, and that 
the constitutional procedures for its full adoption were near completion.  Could brazil please inform 
by when will be able to ratify the Fifth Protocol? 
 ANSWER:   As it was stated in the last regular m eeting of the Committee on Trade in Financial 
Services of the WTO, in December 2008, due to pr ocedural matters the Fifth Protocol has not 
yet concluded its ratification process. A specific timeframe  for the completion of the process 
cannot be determined. 
 
QUESTION 18. III. TRADE POLICIES  AND PRACTICES BY MEASURE (viii) 
TECHNICAL REGULATIONS AND STANDARDS  PARA 122. 
 
 A large number of agencies issue technical regula tions at the federal level, each following its 
own procedures.  The adoption in 2007 of guidelines for the elaboration of technical regulations is 
thus a valuable measure to help ensure that this process is carried out in a transparent and consistent 
manner.  Brazil is also taking steps to ensure that the notification of technical regulations is in all 
cases made within the multilaterally recommended periods.  Technical regulations are always 
published in the Official Journal and, according to the authorities, are mostly based on international 
standards.  Could Brazil inform of th e specific steps taken to ensure t hat the notifications of technical 
regulations is in all cases made within the mu ltilaterally recommended peri od and are based based on 
international standards?  
ANSWER: 
  Regulatory initiatives in Brazil aim at co mplying with the principles of the Brazilian 
Guide on Good Regulatory Practices. In particular  with item 7.3, which sets out the criteria to 
assess existing legislation, including the intern ational agreements signed by Brazil, and with 
item 3.1.1 of the Annex, which is based upon WTO’s Agreement on Technical Barriers to Trade 
and establishes that “when a technical regulation is in accordance with relevant international 
standards, it is presumed not to create unnecessary  obstacles to international trade”. Also in the 
Guide’s Annex, item 3.1.2 has provisions rel ated to the transparency mechanism of 
notifications, in light of what is established in TBT Agreement. WT/TPR/M/212/Add.1 
Page 38  
 
  With respect to the recommended periods, Brazil follows TBT Agreement procedures as 
well as the new understanding on this subject contained in document G/TBT/1/Rev.8 and derived from the second triennial review on time periods. 
 
QUESTION 19. PARA 133. 
 
 The authorities further note that the vast ma jority of Brazil's technical regulations are 
established based on international standards.  In th e exceptional cases where this  is not the case, they 
are based on performance criteria.  Since Brazil’ s previous review, what is the sector-wise break up 
of two kinds of technical regulations i.e. international standards and performance criteria?   
 
ANSWER: 
  At present, there is no precise statistical data on this subject, but Brazil has initiated efforts to compile Brazil’s technical regulations wi th an aim to create a national database. It is 
worth noting that most of the Technical Regu lations issued by Inmetro/MDIC are based upon 
ABNT/ISO/IEC standards.  QUESTION 20. PARA 137. 
 
 Brazil notified 181 technical re gulations to the WTO during the period under review.  The 
notifications cover regulations in several areas a nd by different federal authorities, and include 
MERCOSUR regulations.  The number of notificati ons issued each year has  decreased, although 
Brazil notified 48 technical regulations in the first  ten months of 2008.  Almost one fifth of the 
technical regulations notified were with respect  to health and pharma ceutical products; other 
significant product groups were consumer goods, agricultural products, foodstuffs, electrical and 
electronics, chemicals, machinery, and beverages.  What are the reasons for decrease in the number 
of notifications issued? 
 
ANSWER: 
  The number of notifications of Brazilian t echnical regulations did not decrease in the 
mentioned period. Between January and De cember 2008, 70 technical regulations and 
conformity assessment procedures were notifi ed, representing a 10% increase in comparison 
with 2007. Concerning productive sectors, no rel ation was verified between the historical 
number of notified technical regulations a nd the decrease mentioned in the question. 
 
QUESTION 21. PARA 155.  
 Since its previous Review, Brazil has develope d approximately 2,130 standards, of which 
some 38% were adoptions of ISO or IEC standards without any change.  The remainder were either 
purely domestic initiatives or adaptations of international standards. 
 
QUESTION (IX) SANITARY AND PHYTOSANITARY MEASURES PARA 156. 
 
 During the period under review, Brazil made 392 notifications under the SPS Agreement.  
The authorities note that, while most notified SPS measures being based on international standards, 
they are taking steps to improve the notification procedures in order to  allow more time for 
comments.  Could Brazil elaborate the specific step s taken to improve the notification procedures in 
order to allow more time for comments?  
  WT/TPR/M/212/Add.1 
 Page 39 
 
 
 ANSWER: 
  Laws, decrees, regulations, requirements and procedures related to sanitary and 
phytosanitary measures are, in most cases, notifi ed to the WTO in due time. In addition, Brazil 
usually informs Member(s) affected by the measu re(s) prior to issuing notifications, and often 
accepts and considers comments sent  after pre-established deadlines. 
 
QUESTION 22. PARA 169. 
 
 No information was available on the minimum and maximum periods required to conduct a 
risk assessment.  Are there any sp ecial reasons for non-availability of information on the minimum 
and maximum periods required to conduct a risk assessment?  ANSWER:  
 Brazil takes into account the results from ri sk analysis and other technical and scientific 
studies sent by third countries, but those are not the only issues considered in a risk analysis. All 
information must analyzed in light of its degree of uncertainty, as recommended by the SPS reference organizations. However, informatio n provided by other countries are valuable and 
are taken into account.   
 As for the period needed to finish a risk analysis, Brazil, as many other countries, does 
not have a law defining a specific time (minimal or maximum) to conclude a risk assessment. It 
would be willing to discuss this issue at the SPS Committee. The time limit will depend on the complexities involved in each case, as well as the specifics of the product, its plagues and associated illnesses. 
 
 If it is a product from plant origin, the ri sk assessment will be carried out according to 
IPPC standards. If it is a product from animal  origin, the risk assessment will be carried out 
according to OIE and Codex Alimentarius guidelin es. It is important to highlight that neither 
IPPC, nor OIE, nor Codex Alimentarius fix mi nimum or maximum periods to conduct a risk 
assessment. 
 
 In some cases, there is no a ccess to scientific information about a specific pest or disease 
occurring in the territory of an exporter count ry. In these cases, Brazil requests information but 
does not always receive timely replies from the countries involved.  
 
QUESTION 23. PARA 170. 
 
 Importers are also required to register certain pr oducts with ANVISA.  Imports of products 
already registered with ANVISA only require notificati on to the Agency.  No estimates were available 
to the WTO Secretariat on the time required to reg ister new products with ANVISA, which varies 
according to the product, its risk and complexity.  Does Brazil propose to introduce any timelines for 
registration according to the product, its risk and complexity of products by ANVISA to enhance 
transparency of the procedures? 
 
ANSWER: 
 
 The Brazilian system follows standard international practice. Pharmaceutical and 
cosmetic products have defined timelines, but th e time period depends on the complexity of the 
analysis. No changes to current procedures are envisaged at this moment. 
 
 WT/TPR/M/212/Add.1 
Page 40  
 
 (4) MEASURES AFFECTING PRODUCTION AND TRADE 
(i) Legal framework for production and investment  QUESTION 24. PARA 238. 
 
 Studies have found that Brazil's tax system is rela tively complex, with a number of federal and 
state taxes.  What actions Brazil has taken to simp lify its tax system at the federal and state level?  
 ANSWER:  
 One of the main goals of the Tax Reform Bill is to simplify the tax system, both 
eliminating and reducing taxes, and streamlining th e tax legislation. To fulfill this purpose, in 
the second year following the approval of the Reform, five taxes would be extinguished -
COFINS, PIS, CIDE-Fuels and the “Education W age” Payroll Contribution -, and a new value-
added tax (IVA-F) will be created. Besides, it is also proposed to extinguish the CSLL and 
incorporate this tax in the Corporate Income Tax.  Finally, the state laws about the ICMS will be 
unified in the “new ICMS”.  QUESTION 25. (iii) STATE-OWNED ENTE RPRISES, PRIVATIZATION, AND STATE 
TRADING PARA 265. 
 
 State ownership of some firms reflects a policy decision that government control is 
appropriate to accomplish strategic objectives or to  offset market failures,  or because the firms 
involved provide public services.  Plans for futu re privatizations focus on granting concessions in 
electricity generation and transmission, oil explo ration and transformation, and public services linked 
to modernization and expansion of railways, railr oads, and port services.  Has Brazil determined any 
time lines for future privatisations on granting c oncessions in electricity generation and transmission, 
oil exploration and transformation, and public servi ces linked to modernization and expansion of 
railways, railroads, and port services?  ANSWER:  
 The Brazilian Government does not discard the possibility of granting concessions in 
certain sectors in the future, but there are no specific time lines in this sense.  
 QUESTION 26. iv. TRADE POLICIES BY SECTOR (1) OVERVIEW AGRICULTURE AND FORESTRY PARA  6. 
 
 Although the value of assistance to agriculture in  brazil is low compared with the average in 
oecd countries, the interventions in both the cred it and agricultural domestic markets are distorting 
forms of support.  Moreover, as brazil is one of th e world's largest exporters of agricultural products, 
its support to agriculture could affect global markets.   Could Brazil please provide some information 
in what ways its credit and agricultural domestic  markets are distorting forms of support? 
 
ANSWER:   Credit-related support increase in the last few years, with the exception of 2007, was 
mainly due to debt rescheduling. That support accounts for about half of the total support 
granted, and benefited mainly medium size fa rmers. Major producers of export goods count 
essentially on private credit sources and are subject  to much higher interest rates than in the 
world market. In addition, the benefit appropri ated by medium size producers from the credit 
policy based on a concessional interest rate is lower than the credit subsidy awarded. This is due to the fact that the financial cost faced by pr oducers is highly inflated by conditionalities  WT/TPR/M/212/Add.1 
 Page 41 
 
 
 imposed by banks. Thus, taking into account that  PSE for Brazil is low, possible world market 
distortion caused by credit-related support was negligible. Furthermore, the financing of 
agriculture at concessional interest rates co rresponds only to 25% of  rural credit. 
  Brazil has periodically revised its agricul tural policy since the major reform undertaken 
in the early 1990s and will continue to pursue its modernization based on the following criteria: 
(a) a more market-oriented approach, increasing  the participation of private sources of 
financing; (b) the pursuit of higher efficiency in  the allocation of concessional credit resources; 
(c) improvement of its policy instruments; (d) higher transparency on farmers' indebtedness and accountability, guaranteeing them bett er access to credit. Another initiative under 
consideration is the strengthening of futures ma rkets in providing support to farmers, which 
would dilute their risk and sustain their income. 
 
QUESTION 27.  (5) MANUFACTURING PARA 100. 
 
 Brazil has historically given priority to the development of its manufacturing sector.  With 
this aim, it provides favourable conditions for lo ng-term financing as well as assistance through 
border measures, such as tariff peaks and tariff  escalation, and internal instruments like tax 
concessions.  An enhanced support strategy for 2008- 10, launched in 2008, includes total credit lines 
worth about US$116 billion in addition to US$3.3 b illion in tax exemptions. The manufacturing sector 
has remained of great economic importance for Braz il, in part as a result of the support policies in 
place.  However, it will be important to ensure t hat the implementation of industrial policy does not 
make it more difficult for other sect ors to attract factors of prod uction, which would hinder their 
growth.  Moreover, in particular with respect to industries where Brazilian producers are already 
world-class players, reducing the levels of effe ctive tariff protection would encourage greater 
productivity and benefit consumers.  What steps Brazil propose to take to ensure that the 
implementation of industrial policy does not make it more difficult for other sec tors to attract factors 
of production, which would hinder their growth? 
 
ANSWER: 
  The Brazilian industrial policy is oriented towards promoting sustainable growth, 
diversifying the manufacturing sector and ensuring  employment. In order to achieve this goal, 
many initiatives, all of which compatible with WTO rules, have been put forward over the past 
years. The evidence on growth in the agriculture and service sectors does not justify the preoccupation expressed by the Secretariat. 
 
QUESTION 28.   
 
 Has Brazil considered any moves to reduce the levels of effective tariff protection to 
industries where Brazilian producers are already world-class players to encourage greater 
productivity and be nefit consumers? 
 
ANSWER: 
  Brazil is negotiating the reduction of bound and applied tariffs in the context of the Doha Round. 
 
QUESTION 29. PARA 101. 
 
 During the period under review, the manufacturing sector's contribution to GDP (including 
construction but excluding electricity, gas and wat er production and distribution) stayed fairly 
constant at around 21.9%.  What are the reasons for situation despite Brazil having historically given WT/TPR/M/212/Add.1 
Page 42  
 
 priority to the development of its manufacturing  sector.  With this aim, it provides favourable 
conditions for long-term financing as  well as assistance through border measures, such as tariff peaks 
and tariff escalation, and internal in struments like tax concessions?   
 ANSWER: 
 
 This result is an evidence that those policies have not had an undue effect in the sectoral 
distribution of growth in Brazil . 
 
QUESTION 30 (6) SERVICES (B) BANKING PARA 134. 
 
 Brazil's financial system has also been charac terized for many years by the absence of long-
term credit provided by commercial banks. Inst ead, long-term credit in the domestic market is 
virtually all supplied by State-controlled financ ial institutions. As a result, there are no market-
determined long-term interest rates in Brazil, with  the observed rates established administratively by 
the institutions providing official long-term credit.  Does Brazil plans to ensure long-term credit by 
commercial banks in its domestic market? 
 
ANSWER: 
  By ensuring economic and regulatory stab ility, Brazilian government can contribute to 
create a proper environment for commerci al banks providing long-term credit. 
 
QUESTION 31 (iii) TELECOMMUNICATIONS PARA 159. 
 
 Brazil participated in the WTO negotiations on basic Telecommunications, but it did not 
ratify the Fourth Protocol and has no GATS specifi c commitments in this area.  Does Brazil propose 
to review these stands?  ANSWER:   Adoption of the IV Protocol as such is not under consideration. However, Brazilian 
revised offer includes commitments in the telecommunication services sector. 
 
QUESTION 32 PARA 160. 
 
 Brazil's telecom regulatory structure follows  international best practice, and during the 
review period the authorities aimed to improve it by introducing changes in areas like billing and 
pricing, interconnection fees, number portability, and universal service targets.  Strengthening the 
regulatory agency would consolidate this enhan cement process.  Since its previous review what 
improvements has Brazil made in these areas?  
 
ANSWER: 
 
 Concerning the raised aspects the following measures can be mentioned:  1) In January 2006, ANATEL started using a new index in order to calculate inflation for the telecom market. The “Índice de Serviços de Te lecomunicações” (Telecom Services Index) is 
a mix of several economics indexes and reflects the real costs of telecom services. Besides that, in 
2008, ANATEL published a new formula for calculatin g productivity in the sector (Factor X) 
that introduces optimized inputs in the tel ecom sector. Concerning Interconnection fees, 
ANATEL is developing a new method – based in costs – in order to calculate those fees. 
  WT/TPR/M/212/Add.1 
 Page 43 
 
 
 2) Difusion of telecom services 
  The telecom policy of 2008 tried to increa se broadband infrastructure in order to 
amplify access to telecom services. Two goals w ere set to be accomplished until 2010: telecom 
incumbents – that are currently present in aro und 2000 of Brazil´s  5500 or so municipalities – 
must cover all municipalities and internet broa dband connection must be available in all urban 
public schools (55 thousand).  3) Number mobility  
 In March 2007, ANATEL set a resolution co ncerning number mobility of both house 
phones and mobile phones to be accomplished in  2 years. Now consumers may change their 
telecom provider and keep their phone number.  This resolution stimulates competition, 
reducing prices and improving quality of services.  
4) New Regulation of Mobile Phones Services 
  A new regulation system for mobile phone  services (Regulamento do Serviço Móvel 
Pessoal – SMP) started in February 2008. Among the main changes from the former regulation we mention the following: rules for call centers,  tech support and consumer´s complaints; 
transparency on credits of pre-paid mobiles; ma king support available to deaf users; regulation 
for dates of contracts and fees for breachs of co ntracts; rules for locking and unlocking mobiles 
phones.  QUESTION 33 PARA 169. 
 
 In a recent study, the OECD noted that alth ough the Brazilian regulatory structure follows 
international best practice in general terms, servi ng as a "signal of the country’s commitment to open 
trade and investment policies", additional regulatory action is needed "in order to prevent and solve 
market bottlenecks, facilitate universa l access in the context of modern technologies, and better 
integrate the consumer perspective."  What additio nal regulatory action Brazil has taken as pointed 
out by the OECD? 
 
ANSWER: 
  The Federal Government has established programmes and mechanisms to facilitate 
foreign investment. Under the Multiyear Plan 2008- 2011, for instance, policy efforts continue to 
be geared towards building an adequate busin ess and regulatory environment for investment. 
The Federal Government’s actions are aimed at  fostering investment in infrastructure and 
technology intensive sectors.  Besides the above -mentioned measures we also enumerate the 
following:  1) Lesgilation Mark: General Plan of Legi slation Update (PGR) and General Plan of 
Incumbency (PGO) 
  ANATEL, in 2008, through public hearings estabilished the PGR and revised the PGO. PGR lists the actions ANATEL will take in the next 10 years in order to speed industrial, 
technological and social development in Brazil,  reduce regional disparit ies, increase competition 
and guarantee consumer´s freedom of choice. Th e revision of PGO, on its turn, adpted the 
current competition patern to the newest trends in the telecom market.  2) Tender of 3G services  WT/TPR/M/212/Add.1 
Page 44  
 
  In order to make a tender, telecom incumb ents must agree to provide services in several 
municipalities. This guarantees that by 2010 all Brazilian municipalities will have acces to mobile phone services.  3) New rules for call centers 
 
 In 2007 and 2008, the National Agency of Civil Aviation (Anac), ANATEL, the National Agency of Energy (Aneel) and the National Agency of Supplementary Health Care (ANS) 
participated in the formulation of Decree nº  6523 that sets the rules for call centers. The 
Department of Consumer´s Protection (DPDC) c oordinated this task resulting in an important 
norm for the relations between consumers and providers. 
 4) Project of Enhancement of Technical Capaci ty and Social Participation in Regulation 
  This project aims to increase consumer´s part icipation in defining regulation. It includes 
technical capacity training for consumer´s pr otection agencies, educational campaigns and 
public hearings. Two pilot projects will be developed – one by ANATEL and another by 
ANVISA.  5) Qualification of Workforce  
 Regulation agencies are increasing their sta ff through entrance examinations, wages are 
being raised in order to reflect the expertise required and trainninc courses are being promoted. 
ANATEL, in cooperation with UTI, is implem enting a specialisation course in telecom 
regulation in order to increase its staff´s profiency. 
 
QUESTION 34 (iv) AIR TRANSPORT PARA 186. 
 
 Brazil's commercial aviation industry conti nued to face problems during the period under 
review.  Market concentration remains high, with  two companies controlling 92% of the domestic 
passenger market in 2007.  This may reflect in part the requirement for domestic air transport to be 
provided only by companies manage d by Brazilians and in which 80% of the voting rights are in 
Brazilian hands.  Does Brazil intend to inject competitiveness in the sector through greater 
liberalization to domestic and foreign investors?  ANSWER:  
 Although Brazil has no plans for opening dom estic market to foreign airlines in the near 
future, there may be changes in the level of pe rmitted foreign investment in Brazilian airlines 
bills. Public policies for the Civil Aviation sector  in Brazil are under a comprehensive process of 
revision. Among the recent developments in such  process, the new National Civil Aviation 
Policy was issued under decree Nº 6.780, February 18
th, 2009 (http://www.planalto.gov.br/ccivil_ 
03/_Ato2007-2010/2009/Decreto/D6780.htm). Under the current legislation, however, foreign 
investment remains restrained to 20% of shareholding. 
 QUESTION 35.  
 
 Indian exporters have reported of problem s being faced by them in answering the 
questionnaire circulated by DECOM (the concerned  Brazilian Agency) for anti-dumping/anti-subsidy 
investigations. DECOM circulates the questionnai re only in Portuguese language and it has to be 
answered in the same language by Indian export ers. The deadline for answering the questionnaire is 
not extended on request of the Embassy.  Could Braz il propose some action to alleviate this problem 
faced by Indian exporters?   WT/TPR/M/212/Add.1 
 Page 45 
 
 
 ANSWER: 
  Brazilian Law (Article 13 of the Constitution) requires that all official acts and procedures must be published and conducted in Portuguese.  Under the WTO agreements, there 
is no obligation for the Members to provide translations or to maintain records of an 
investigation procedure in a specific language.  It should be noted that the Brazilian authority 
always extends the time period for answering the questionnaires. 
 
QUESTION 36. 
 
 The Indian businessmen visiting Brazil have also informed about the delay in issuance of 
Business visas. Further, the Pharma and IT co mpanies which have operations in Brazil have also 
reported delay in issuance of work visas for their India based employees to be stationed in Brazil. 
Visa procedure for highly qualified professionals from  India takes something between six months to 
two years.  Could Brazil expedite its visa issuanc e procedures to facilitate trade and investment 
between the two countries?  
ANSWER: 
  The Brazilian government has no notice of del ay in issuance of business visas for Indian 
citizens. According to our consular section in New Dehli, a business visa is granted in less than a 
week, if the proper documentation is presented. In accordance with the 1997 bilateral 
arrangement between India and Brazil, Brazil issu es to nationals of India visas valid for up to 
5 (five) years, for business purposes, which allows for a period of stay in Brazil not exceeding 
ninety (90) days, renewable for an additional period of up to ninety (90) days, provided the total length of stay does not exceed one hundred and eighty (180) days per year, from first entry. 
 
 The citizens of India who wish to work, provide technical assistance or be stationed in Brazil must obtain a work permit, or work visa, which is authorized by the Ministry of Labour. 
As long as the process is fully documented, th e above mentioned work permit is authorized 
within twenty to thirty days.  
 It is important to underline that in past few years, there has been a significant increase 
of the work permit authorizations issued to Indian citizens. For example, in 2006, 766 authorizations were granted, in 2007, 1292 au thorizations were issued and in 2008, 1981 
authorizations were granted.  
QUESTION 37.  
 Several prominent Indian Pharma Companies like Zydus, Unique Pharma, Ranbaxy etc. are 
operating in Brazil. Indian companies also requi re a product license from ANVISA to export their 
products to Brazil. ANVISA annually inspects the manufacturing plants and renews the license of the importers. We have been informed by some Indian phar ma companies that this often turns out to be a 
complicated procedure with delay in inspection by the ANVISA team and the consequent delay in 
renewal of the license, pending which the goods of the company cannot enter Brazil.  Could Brazil 
take specific actions to streamline procedures to en sure predictability and transparency of the process 
at ANVISA?  
 
ANSWER:   Regarding procedures for inspection of manuf acturing plants, Brazil adopts the “date of 
request” criteria and, in cases of emergency, urgency or public health needs, a priorization 
system is adopted. In addition to its current actions, ANVISA is studying new methods to WT/TPR/M/212/Add.1 
Page 46  
 
 accelerate the required inspections. Regarding the transparency of this process, ANVISA 
publishes a timeline of the future inspections in  its home page http://www.anvisa.gov.br/ 
inspecao/cronograma/index.htm. The process is therefore predictable and tranparent. 
 
QUESTION 38.   
 Cellofarm Ltd., a subsidiary of Strides Arcol ab Ltd., which has made an investment of over 
US$ 50 million in two manufacturing facilities in Brazil, has been facing problems relating to 
Micofenolate Mofetil 500 mg tablet which it manufactu res as a generic medicine. The life-saving drug 
has sold more than 40 million tablets in Brazil.   However, in November 2007, the Brazilian 
government cancelled the registration of this drug, citing lack of bio-equivalence, but without giving 
Cellofarm Ltda a proper hearing.  Could Brazil ela borate its procedures and final decisions taken in 
similar cases in the past?  ANSWER: 
 
 Regarding the cancellation of the registrat ion of Cellofarm´s Ltd generic drug of the 
product mycophenolate mofetil, ANVISA has held meetings with representatives of the 
company in Brazil. The signed minutes of the meeting are filed in with ANVISA. The regisrtration was cancelled due to the unsat isfactory results of bioequivalence tests that 
intended to prove the interchangeability of the generic product with respect to the reference 
listed medicine. ANVISA maintained the decision to  cancel the registration of the product since 
it was not bioequivalent to the original drug. The cancellation was published in the Federal 
Official Gazette on 14/11/2007. As previously informed to Cellofarm Ltd in Brazil, the company must apply for a new registration of the product by presenting new bioequivalence studies that 
prove the interchangeability of the product with the original drug. This is the standard 
procedure adopted in similar cases in the past.  
 
QUESTION 39. 
 
 India requested for market access of Pearl m illet seeds, Sorghum seeds, Corn seeds and Rape 
seeds.  The technical information on Pearl millet s eeds, and  Sorghum seeds  has been sent to NPPO-
Brazil in November, 2007and for Corn seeds and Rape seeds in   March 2008 , for conducting  Pest 
Risk Analysis (PRA) of the above commodities.   R esponse from Brazilian side is awaited.  India 
would appreciate if Brazil could expedite the response?  
ANSWER: 
  The requests are under evaluation and will be replied in the most expeditious manner 
possible. 
 
QUESTION 40.   
 
 As per SAA (Public Limited Company)
 law, a company must have one local Brazilian resident 
as a representative and for every employee of forei gn origin; the number of Brazilian employees must 
be double.  What is the rationale for such a require ment and does Brazil plans to dilute it to attract 
foreign investment? 
 
ANSWER:   Brazil supposes that by SAA companies India meant Public-held companies, which are called in Brazil S.A. (“Sociedades Anônimas”). The law of public-held companies, in article 146, 
states that the nomination of a counselor living outside Brazil depends on the indication of a  WT/TPR/M/212/Add.1 
 Page 47 
 
 
 representative who lives in Brazil. This represen tative must be legally accountable for the 
company for a period of at least 3 years after the end of the counselor´s mandate. The rationale 
for this demand is that someone accountable fo r the company must be available in Brazil in 
order to legally answer for it. 
 
QUESTION 41.  
 
 Custom procedures need to be simplified to avoid delays and penalties. There is very high 
port fee, taxation and other charges. Technical barriers to new entry exist because of shift in 
implementation of Euro norms to 2012.  What steps Brazil propose to take to overcome these 
impediments to smoother trade?  
ANSWER: 
  Resolution nº 16 of March 20th 2008 created the Technical Group of Trade Facilitation 
(TGTF). Since then, the Brazilian Government  adopted the following Trade Facilitation 
measures:  a) Conclusion of the draft legislat ion submitted to Congress to ratify the Istanbul 
Protocol (Ata Carnet);  b) Elimination of li censing requirements for importing airplanes and 
airplane parts;  c) Reduction in the number of  products subjected to inspection for internal 
transit by ANVISA and IBAMA;  d) Comprehensive review of legislation and licensing requirements for each non-tariff control agency with a view to reduce duplication and increase 
efficiency;  e) improvements to SISCOMEX in or der to allow agencies to automatically approve 
less risky operations;  f) Incorporation of new software to SISCOMEX to  allow the attachment 
of electronic documents to the system; and g) Nationwide evaluation of the available workforce of all Brazilian government agencies operating at borders, in order to provide adequate 
personnel to deal with increased trade flows. 
 
 Additionally, the TGTF has been working on  the following actions:  (i) Definition, 
development of criteria, and introduction of risk management tools for non-tariff control 
agencies into SISCOMEX; and (ii) Implementation of more efficient rules for inspections of wood products and containers consisting of wood , including acceptance of a certification issued 
by exporters or importers that the wood has been treated. 
 
QUESTION 42. 
 
 Minimum import price is fixed by Brazil in ca se of some products to prevent under invoicing 
but figures for the same are not published. Import cl earance is refused when the prices are below the 
minimum price.  Are there any specific reasons  for not publishing minimum import prices? 
 
ANSWER: 
  Brazil uses the transaction value as the valuati on method of 99% of its imports. If it is 
not possible to apply the transaction value, Brazilia n authorities resort to the substitute methods 
provided for in the Customs Valuation Agreemen t. There are no minimum import prices as 
such, whereas parameters for risk analyses cannot be published in order not to defeat their own 
purpose.   SWITZERLAND (FIRST BATCH) 
Report by the Secretariat 
II. Trade and investment policy regime (1) Overview 
 WT/TPR/M/212/Add.1 
Page 48  
 
  With respect to para. 1, th e Secretariat's report notes that certain notification requirements 
are yet to be fulfilled, for inst ance under the Agreement on Agricultu re. In particular Brazil's last 
notification regarding export subs idies dates apparently back to the 1999-2001 period. Could the 
Brazilian authorities indicate when they intend to notify newer developments in this matter? 
 ANSWER : 
 
 Brazil has already circulated its pending no tifications on Export Subsidies and Market 
Access for the years 2002 to 2007. The Secretaria t is finalizing their formating in order to 
distribute to Members.  
 The Brazilian Government is finalizing the compilation of information regarding 
notifications on domestic support for the years 2005, 2006 and 2007.  Brazil intends to circulate 
them by the end of the first semester of 2009.  
 
III. Trade policies and practices by measures  
(1) Overview  
 In relation to para. 2 of the Secretariat's re port, could the Brazilian authorities indicate the 
WTO justification and the reasons for which they pr ohibit imports of virtually all used consumer 
goods? 
 
ANSWER:   The import prohibition of used consumer goods is in place mainly for environmental 
and safety reasons, related either to their shor ter life cycle or to their functionality and 
performance characteristics. Regarding the life cy cle of such goods, it is well known that used 
goods have a shorter remaining lifespan than  new goods and therefore become waste sooner 
than the latter. Besides contributing to increase  the generation of wastes in the importing 
countries, importation of used goods may bring together specific health and environmental risks 
to be assessed in each case .   
 
(2) Measures directly affecting imports 
(i) Customs procedures and documentation 
  With respect to para. 25 of th e Secretariat's report, could th e Brazilian authorities indicate 
whether the customs cooperation agreement with th e United States, which entered into force during 
the review period, includes measures concerning th e security of the logistic chain such as the 
Container security Initiative (CSI) or the Custom s-Trade Partnership Against Terrorism (C-TPAT) 
program? Has Brazil implemented the concept of  “Authorised Economic Operator” (AEO) or a 
similar status?  ANSWER:  
 The concept of “Authorized Economic Opetaror” is implemented in Brazil through the 
“blue line”, which is a customs regime regulated by IN SRF No. 476, of 13 December 2004. In this regime, goods of authorized importers are preferentially direct ed towards the “green 
channel”. To qualify for the "blue line", importers  must have sound internal control systems in 
place, as well as comply with other requi rements established in the legislation. 
 
 Neither the Container Security Initiative  (CSI) nor the Customs-Trade Partnership 
Against Terrorism (C-TPAT) program are explic itly mentioned in the customs cooperation 
agreement with the United States 
  WT/TPR/M/212/Add.1 
 Page 49 
 
 
 (ii) Customs valuation 
 
 With respect to para. 28 of the Secretariat's repor t could the Brazilian authorities indicate the 
reasons for which they have not yet answered to th e checklist of issues on customs valuation ? Does 
Brazil intend to answer to this check list in the near future ? 
 
ANSWER:   Brazil is analyzing this issue internally and will refer it to the Customs Valuation Committee when appropriate. 
 
(iv) Tariffs (a) Structure 
 
 According to para. 43 of the Secretariat' s report, Brazil increased its applied tariffs on 
chemical product, footwear, and textiles and clothi ng between 2004 and 2008. Could the Brazilian 
authorities indicate for each product concerned (HS tariff line) the current tariff level and also the 
reasons for which the applied rates were raised? 
 
ANSWER: 
 
 Those applied tariffs are related to particul arly sensitive sectors, as they are mostly 
labour-intensive. Analysis of import flows for th e same sectors reveals an accelerated growth of 
imports for that period. Tariff levels are not res tricting trade. For textile, the modal tariff is 
26%, while for clothing it is 35%, which are low er, for instance, than some developed countries’ 
peaks for the same sector. With regard to chemical s, for instance, the modal tariff is 2% and the 
average applied tariff is around 7%.  
 According to paras. 49 and 50 of the S ecretariat's report, each MERCOSUR member is 
allowed to prepare a List of Exceptions to the CET (a BK list comprising capital goods, a BIT list 
comprising informatics and telecommunications equi pment and a basic list of national exemptions). 
In 2007, Brazil was allowed to maintain its 100 ta riff headings included in the basic list of exceptions 
up to 31 December 2008, and is required to reduce th em gradually until 2010. Up to 20% of the 
headings in the basic list of exceptions may be a ltered upwards every six m onths. Could the Brazilian 
authorities explain how they reconcile the fact that  they have to reduce their 100 tariff headings with 
the possibility of increasing 20% of these headings ever y six months?  Could Brazil indicate how it 
will reduce them (number of tariff lines and spec ific products concerned with the duty rate)? 
 
ANSWER: 
  The maximum of 20% refers to the number of possible changes in the list of exceptions each semester (up to 20 tariff lines can be incl uded/excluded). One line can be included only if 
another one is excluded. It is not possible to in clude more than 100 tariff lines in the list. There 
is no “possibility of increasing 20% of these headings every six months”, as stated in the 
question.    The schedule of reductions starting in 2009 will consist of more exclusions than 
inclusions in the list, according to the limits est ablished in the Decision N° 59/07 of the Common 
Market Council (total of 93 items in the first semester of 2009; 80 from 01/02/2010 until 
31/07/2010; 50 from 01/08/2010 until 31/12/2010).  
 
 
 WT/TPR/M/212/Add.1 
Page 50  
 
 (v) Other charges affecting imports 
 
 According to para. 64 of the Secretariat's repor t, four different internal taxes are levied on 
imports. Internal taxes are applied to different product groups at diverse rates, with the ICMS (tax on 
the circulation of merchandise and on the supply of interstate transportation and communication 
services) also varying from state to state, all of which adds complexity to the taxation system. Could 
the Brazilian authorities indicate if they have an y plans to simplify their taxation system and 
introduce more transparency?  ANSWER: 
 
 A tax reform is currently under discussion in Brazil. The reform Bill foresees adjustments in current fiscal practices and new legal instruments to reduce the complexity of the Brazilian tax system. To this end, the prop osed disciplines are aimed at simplifying and 
reducing bureaucracy of the tax system; eliminatin g distortions and fiscal competition; lowering 
compliance costs; eliminating the different levels  of state taxation; reducing excessive taxation 
on payrolls; abolishing cumulative taxes; and improving tax neutrality.   The Bill has already been approved by the Special Commission of the Lower House of 
Parliement, and is ready to be voted in the plen ary session of the House. However, a time-frame 
for the final approval cannot be determined, cons idering that a Bill of this magnitude requires 
long discussions in Congress with the stakeholders.  
 
 According to para 67 of the Secretariat's report, the states have not agreed on a common 
definition for “other customs charges” in the ca se of ICMS. Therefore, the ICMS for imported 
products may or may not include certain char ges, which creates uncertainty and discrimination 
among states. Could the Brazilian authorities indicate if the rates for the other customs charges (such 
as specific taxes on transport, SISCOMEX’s fees, eventual anti-dumping duties, and fees for port handling services) are the same in all the states and how they are being calculated?  ANSWER:  
 Yes, the rates for the other customs charges are the same in all the states, and the fees 
for port handling services depend on the cost of the service.  
 
 According to para. 70 of the Secretariat's report,  the rates for PIS (contributions to the social 
integration programme) is 1.65% and for COFINS (cont ribution to finance social security) it is 7.6%. 
The rates are higher for motor vehicles and their parts, pharmaceu ticals, and cosmetic products. 
Could the Brazilian authorities indicate wh ich are the higher rates for these products? 
 ANSWER:  
 PIS COFINS 
Vehicles 2% 9.6% 
Pharmaceuticals 2.1% 9.9% 
Cosmetics 2.2% 10.3% 
 
(vi) Contingency measures 
(a) Anti-dumping and countervailing duties 
  WT/TPR/M/212/Add.1 
 Page 51 
 
 
  In para. 77, the Secretariat's report indicates that the Chamber of Foreign Trade (CAMEX) is 
responsible for making the final decision, including the use of the "national interest" clause, on the 
application of provisional AD and CV measures and definitive duties, for altering or terminating 
definitive duties as a result of a review, and accep ting or terminating undertakings. Could the 
Brazilian authorities explain on what criteria the "na tional interest" clause is based, and how many of 
the 63 AD and 2 CV measures presently in force are based on this "national interest" clause?  
 
ANSWER: 
  The Department of Commercial Defence (D ECOM) of the Secretariat of Foreign Trade 
– SECEX conducts investigations but does not deci de for the application of AD/CV measures.   
The decision to end an investigation without a pplying AD/CV measures is taken by the SECEX 
itself. In case SECEX considers favourably the app lication of AD/CV measures, it shall submit a 
recommendation to the Chamber of Foreign Trade - CAMEX, which is a college of 6 ministers and makes the final decision.  The reasons for CAMEX decisions are published in the official 
gazette. According to Brazilian Law CAMEX may take into due account elements of public 
interest in its decision but this assessment varie s on a case by case basis. All decisions taken by 
CAMEX since 2001 and the correspo nding justifications are ava ilable on the Ministry of 
Development’s website in the following link:  http://www.desenvolvimento.gov.br/sitio/interna/ 
interna.php?area=1&menu=434. 
 
 In para. 78, the Secretariat's re port indicates that the SECEX can initiate an investigation ex-
officio and that one such investigation was initiate d in 2006. Could the Brazilian authorities explain 
the conditions to be met for such an ex-officio  investigation to be initiated and indicate the 
circumstances of the 2006 case that le d to such an ex-officio investigation? 
 
ANSWER: 
  SECEX will only initiate an investigation or  review, whether in request of the domestic 
industry or ex-officio, if the initiation is prop osed by the Department of Commercial Defence 
(DECOM) on a non-confidential report, in whic h all conditions and requirements established in 
the ADA and in the ASCM are examined, and provided that there is sufficient evidence of 
dumping or subsidies, injury and causal relation.   
  Additionally, only in very special circums tances the Brazilian authorities decide to 
initiate an ex-officio investigation. The 2006 ex-o fficio investigation was initiated because, as the 
result of the analysis of sales of the like product in a third country, the Brazilian authorities 
found sufficient evidence that this third country was exporting great volumes of the like product 
to Brazil at dumped prices. Brazil would like to observe that since 2000 the aforementioned investigation has been the only self-initiated in vestigation or review undertaken by the Brazilian 
authority . 
 
(viii) Technical regulations and standards 
 
 With respect to para. 139 of the Secretariat's report, could the Brazilian authorities indicate 
whether the country of origin labeling requirement only applies to imported products ? What is the 
scope of the country of origin labeling requirement, i.e., what kind of products are being covered by 
such a requirement? Could the Brazilian authoriti es demonstrate that this requirement is not 
discriminatory and not more trade-restrictive t han necessary to fulfill a legitimate objective? 
    WT/TPR/M/212/Add.1 
Page 52  
 
 ANSWER: 
  Regarding food products, country of origin labeling requirements apply to all products 
sold in Brazil, independent of their origin, according to Resolution ANVISA - RDC Nº 259, of 20 September 2002. 
 
 With respect to medical products, labeling rules apply equally to  both imported and 
domestic products , in accordance to Resolu tion ANVISA - RDC nº 333, of 19 November 2003. 
(http://e-legis.anvisa.gov.br/le isref/public/showAct.php?id=1261). 
 
 With respect to para. 144 of the Secretariat's report, could the Brazilian authorities indicate 
why the foreign supplier needs a le gal representative in Brazil respons ible for the issuance of the 
supplier’s declaration? Could the importer not assume this responsibility? Could the Brazilian 
authorities demonstrate that the requirement of a legal representative is not discriminatory and not more trade-restrictive than necessary to fulfill a legitimate objective? 
 
ANSWER:   According to the Brazilian Civil Code the le gal representative is necessary to represent 
the foreign supplier in legal issues related to the supplier’s claims in Brazil.  
 A legal representative is necessary to repres ent the foreign supplier in legal matters. The 
legitimate objective is the protection of consum ers and the environment. In case of health or 
environmental damage caused by the products  covered by a supplier’s claims, the legal 
representative can be contacted by court officials.  
(ix) Sanitary and phytosanitary measures 
(b) Implementation activities 
 
 In para.171, the Secretariat's report notes that  all imports of products subject to SPS 
requirements must obtain a non-automatic license. Co uld the Brazilian authorities indicate the reason 
for submitting all imports of produc ts subject to SPS to obtainin g a non-automatic licence? Such a 
regulation seems to be out of proportion and does not correspond to international standards. What is 
the reason for Brazil to control every individual deliv ery? And wouldn’t it be contradictory to what is 
mentioned in para. 172 (Brazil is said in para. 172 to accept phytosanitary and zoosanitary 
certificates issued by official sanitary services in countries that follow  the guidelines of Codex, IPPC, 
OIE, and other international scientific organizations)? 
 
ANSWER: 
  No, there is no contradiction. During the inspections the certificates are analyzed to 
verify its compliance to specifica tions of official sanitary services in countries that follow the 
guidelines of Codex, IPPC, OIE, and other internat ional scientific organizations.  This system is 
very similar to systems of many others Members of WTO. 
 
 Regarding para. 172, how does Brazil prov ide the information about these various 
regulations to foreign trade partners? 
 
ANSWER:   The measures are notified to ou r trading partners and to the WTO 
  WT/TPR/M/212/Add.1 
 Page 53 
 
 
  In respect of para. 173 of the Secretariat's re port, could the Brazilian authorities explain the 
meaning and reason of the following sentence: "There is no general rule with respect to the criteria 
applied when testing is required, different criteria are established for each product in the specific 
regulation"?  
ANSWER: 
  Testing samples are chosen randomly for mo st products. There are some commodities, 
however, for which sampling and tests are regulat ed according to measures established in order 
to conform to a specific risk assessment for that product. 
 
 With respect to para. 174, is it correct to assume that this regulation is based on IPPC 
standards? 
 
ANSWER: 
 
 Whenever it is possible, regulations are ba sed on international standards. Of the 392 
notifications made between 2004 and 2008, over 85% of the measures were based on international standards.   In relation to the regulation on paragraph 174,  it is based on International Standard for 
Phytosanitary Measures (ISPM Nº 6, ISPM Nº 7 and ISPM Nº 20) from IPPC. Besides the IPPC 
standards the Brazilian system also takes in to account quality criteria based on Codex 
Alimentarius recommendations. There are not private companies accredited for verifying 
compliance at Brazilian borders. The sanitary and phytosanitary comp liance at the Brazilian 
borders is verified only by the Government’s official service. 
 
(3) Measures directly affecting exports 
(ii) Export taxes 
 
 According to para. 185 of the Secretariat's repor t, “the export tax is assessed on the f.o.b. 
value or the price of the goods in the international market at the time of exportation.  This price may 
not be lower than the cost of production, as de fined by the law, augmented by taxes and other 
contributions and a mark-up of 15% on the sum of the costs and taxes.” Could the Brazilian authorities indicate on the basis of which basis the mark-up has been set at 15%?  ANSWER: 
 
 Even tough the Brazilian legislation allows for the application of export taxes for all 
products, those are in fact applied to a very small group of products. Provisional Measure No. 
2158-35 of 2001 states that the tax is based on the normal price that the product would reach in the international market. If there is suspicion on  the price presented, and in order to prevent 
frauds, the mark-up may be used to calculate an adequate price. 
 
 According to para. 188 of the Secretariat' s report, “Brazil does not make use of minimum 
export prices, except as a base to calculate expor t taxes.” Could the Brazilian authorities indicate 
how and on which basis these minimum prices are determined? 
 
ANSWER:   Brazil does not apply minimum prices and th e methods for calculating export taxes are 
established by Law 9716 (26 November 1998) a nd Provisional Measure No. 2158-35 of 2001 . 
 WT/TPR/M/212/Add.1 
Page 54  
 
 (4) Measures Affecting Production and Trade 
(ii) Pricing and competition policy (a) Pricing arrangements 
 
 Para. 245 of the Secretariat's report mentions t hat 90% of medicine prices are fixed by the 
government and that on certain high-cost medicati ons used to treat chronic diseases a mandatory 
minimum discount is in place. Further, Brazilian le gislation provides for the granting of compulsory 
licensing of patents (see chapter III(4)(iv)). Could the Brazilian authorities indicate what the criterias 
are for medecines to fall under the price control criteria? How often is  this list adjusted ?  Could the 
Brazilian authorities indicate how these regulations (price controls, mandatory minimum discounts, 
compulsory licensing) in the pharmaceutical sector impacted market access of foreign companies to 
the Brazilian market over the period under review?  ANSWER:  
 In Brazil, the Chamber of Medicines Mark et Regulation (CMED, in its Portuguese 
acronym) follows transparent and objective criteria for controlling the price of certain 
medicines. The criteria applied are contained in resolutions and order normative acts laid down 
by CMED (http://www.anvisa.gov.br/monitora/ cmed), in particular Resolution (CMED) 
02/2004. Price regulation is imposed on allopath ic medicines, with the exception of some 
medicines that can be traded freely, as listed in Resolution (CMED) 05/2003 and Resolution 
(CMED) 03/2004. 
  Besides the application of price control cri teria, CMED also institutes a discount called 
Price Adaptation Coefficient (CAP, in its Port uguese initials) applied in some cases of public 
purchasing of medicines. Medicines subject to CAP discount are those which have greater 
budgetary impact Resolution (CMED) 04/2006. 
  The price control criteria applied by CMED does not impact on the access to the Brazilian market. The market of medicines depends upon a wide range of other factors, such as 
marketing strategies, IP rights, product quality, etc.  
 With relation to compulsory licenses, it is  important to note that the Government of 
Brazil has made use of that mechanism only once. On 04 May 2007, one compulsory license was issued by Presidential Decree 6.108 for one anti-HIV drug (Efavirenz).   According to Brazil’s legislation, compulso ry license is a mechanism that can be used 
only after negotiations with the patent  rights holder have been exhausted. 
  The criteria for granting compulsory licensi ng are set ou in the TRIPS Agreement, in 
Brazil’s Industrial Property Law and in D ecree 3,201/99, as amended by Decree 4,830/2003. 
 
(a) Pricing arrangements 
 
 Paras 246 to 261 of the Secretariat's report outline the Brazilian competition policy and its 
institutions. However, there is no mention of the syst em of Ouvidors. According to an OECD Report 
of 2007, Brazil has a specific feature to hold regul atory authorities accountable to the public. This is 
in the form of an internal ombudsman to the Ag ency, called the Ouvidor. He is appointed by the 
President of the Republic, which gives him a conflic ting legitimacy with the board of the Agency. In 
the OECD report it is said that the Brazilian asso ciation of regulatory agencies, ABAR, expressed the 
view that the Bill institutionalizing the Ouvidor w ill create the possibility of permanent interference, 
instead of using this in stitution as a pure intermediary, facilitati ng the relations between the users, the  WT/TPR/M/212/Add.1 
 Page 55 
 
 
 regulated firms and the public administration. Could the Brazilian authorities present their 
experience with this specific institution?  ANSWER:  
 The Brazilian Competition Policy System (BCPS) recognizes that implementing a 
system of ouvidors is a very important measu re in order to improve the BCPS´ transparency 
and the relationship with its stakeholders.    The ouvidors system has not been implem ented yet in the BCPS. However CADE has 
such a provision in its strategic planning. The Ouvidors system is one of CADE´s priorities in 
the current year. Finally, it is worth mentioning that CADE has already a mechanism that enables its stakeholders to make suggestions an d complaints which is the direct link in the 
website to the communications advisor´s e-mail.  
(iii) State-owned enterprises, privatization, and state trading  
 The Secretariat's report states in paras. 262 to  266 that according to the information 
available, Brazil made its last notification on stade-trading enterprises under Article XVII of the 
GATT 1994 in the year of 1997. Could the Brazilian authorities explain the reasons why Brazil did 
not comply, for more than ten years, with its obl igation to notify stade-trading enterprises? 
 
ANSWER:   In the context of the unilateral opening of the Brazilian economy undertaken in the 90´s Brazil carried out a deep and comprehensive prog ramme of privatizatios that extended into the 
early 2000s. In this context, some of the companies that underwent a privatization process have 
also undergone a sometimes long process of liqui dation. Therefore, the number of state-owned 
enterprises decreased sharply in this period and, consequently, the privatization process has been unfolding throughout the period. Notwithstandi ng the complexity of this process, Brazil is 
examining the purchases of its state-owned enterprises which involve either imports or exports with a view to comply with its obligations under Article XVII of the GATT.  
 
(v) Government procurement 
 
 With respect to para 309, Switzerland notes that Brazil is not a party to the WTO Plurilateral 
Agreement on Government Procurement (GPA) an d that the Brazilian authorities have apparently 
indicated that becoming a party to the GPA is not currently a priority for Brazil. According to para. 
306, market access represented in 2006 R$28.9 billi on in terms of total tendering made by the 
Federal Government. On the other side, figures re garding the purchases of the subterritorial entities 
(municipalities, districts, etc.) – which represen t usually about 80 per cent of the government 
procurement in industrialized countries – are not  available. According to the report of the 
Secretariat, joining the GPA would increase the predictability of Brazil’s trade regime and could 
result in benefits to taxpayers by reducing procurem ent costs, and to domestic producers with regard 
to opportunities for market access for Brazilian suppli ers. What are the prospects for Brazil joining 
the GPA in the light of the advantages identified by th e Secretariat for the sustainable growth of the 
Brazilian economy and for its further integration in the world economy?  
ANSWER: 
  Brazil is not considering becoming an  observer of the Committee on Government 
Procurement.  
 WT/TPR/M/212/Add.1 
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 IV. Trade policies by sector 
(2) Agriculture and Forestry (iii) Domestic support measures 
 
 In respect of para. 18 and Table IV.1 of the S ecretariat's report, provided that most of the 
AMS notified in 2003/2004 corresponds to minimu m support prices under the Policy of Guaranteed 
Minimum Prices and simultaneously not exceeding th e de minimis level, could the Brazilian 
authorities explain the estimated amount of US$1. 17 billion of support reached for the Policy of 
Guaranteed Minimum Prices?  
ANSWER: 
  It is not an estimate, but the budget available for Policy of Guaranteed Minimum Prices (PGPM). So, the amount actually provided is not necessarily the same. Furthermore, it is 
possible that some kind of spending is not acco unted as AMS. It may occur when the applied 
administered price is below the external reference price. This situation can be seen in all the 
Brazilian notification about domestic suppo rt (G/AG/N/BRA/6, 10, 13, 18, 22 and 23). 
 
 With respect to para. 19 of th e Secretariat's report, it appears that total outlays for the rural 
credit scheme in 2007 were US$28.4 billi on. Provided that this is one  of Brazil's main measures of 
internal support in agricultural policy, and that in Brazil's last Domestic Support notification only 
around US$350 million had been exem pted from reduction, and that  in Brazil's last notification 
Amber Box measures had not exceeded the de minimis level, how can the Brazilian authorities explain the sizeable amount of these measures? Which type of credits are being excluded from the calculation 
of the AMS and on which grounds? What are the amounts spent on these measures? 
 
ANSWER: 
  1
st Subquestion: The amounts notified represent the interest benefit that accrues to the 
producers. The interest rate for the main pro duction and marketing credit was 8.75%, and the 
SELIC interest rate (used as the representative  market rate) was 16.9% in 2003 and 17.5% in 
2004. 
 
 2nd Subquestion: Article 6.2 of the Agreement on Agriculture states that “…investment 
subsidies which are generally available to agr iculture in developing country Members and 
agricultural input subsidies generally available to low-income or resource-poor producers in 
developing country Members shall be ex empt from domestic support reduction 
commitments…”. Therefore, Brazil understands that production credits for small farmers 
(PRONAF) and all investment credits for agricultu re fall under Article 6.2, and are thus exempt 
from domestic support reduction commitments. This  is the type of credit that is being excluded 
from AMS calculations.   The amounts spent during crop year 2003/2004 are shown in the table below 
(G/AG/N/BRA/23, page 6):  WT/TPR/M/212/Add.1 
 Page 57 
 
 
  
Measure type Name and description of measure with 
reference to criteria in Article 6.2 Monetary value of the measure 
during the reporting period 
(US$ 1,000) 
Funds for variable input 
acquisitions (for low-income or 
resource-poor producers) PRODUCTION CREDIT - 
government and private funds, mostly 
compulsory, allocated to production at preferential interest rates. 97,586.1 
Funds for agricultural investments INVESTMENT CREDIT - 
government and private funds, 
directed to improve rural structure, 
acquisition of machines, equipment, 
vehicles and animal services. 280,448.43 
Debt rescheduling programmes (for 
low-income or resource-poor 
producers) DEBT RESCHEDULING – 
Rescheduling of debts in longer terms 
and most favourable conditions 16,277.4 
 
 With respect to para. 24 of the Secretariat's report, it appears that rural credit programmes 
are designed primarily to benefit producers without  access to commercial credit. Could the Brazilian 
authorities explain what measures are being taken to ensure that the credit availability in the 
agricultural sector does not directly impact the flows of the properly functioning credit market? 
 
ANSWER: 
 
Interest rates in Brazil have been kept  at high levels because of macroeconomic 
stabilization policies.  In this context, negotiati ons were required in order to reschedule the debt 
of agricultural producers in certain situations. Brazilian management of its rural credit support 
does not cause major market dist ortions because the bulk of the country`s  exports is carried 
out by large-scale farmers and relies mainly on private sources of financing. A great number of 
small-scale farmers rely on concessional credit but sell their production exclusively or mainly in 
the domestic market. Rates offered by Brazilian credit programmes are significantly higher than those applied in similar programs in other economies.  
 
 Brazil uses the following criteria when revisin g its agricultural policy based: (a) a more 
market-oriented approach, increasing the participat ion of private sources of financing; (b) the 
pursuit of higher efficiency in the allocation of  concessional credit resources; (c) improvement of 
its policy instruments; (d) higher transparency  on farmers' indebtedness and accountability, 
guaranteeing them better access to credit. An other initiative under consideration is the 
strengthening of futures markets in providing supp ort to farmers, which would dilute their risk 
and sustain their income. These are the main challenges Brazil must overcome in order to 
expand and improve the country’s agricultural performance. 
 
 Regarding para. 36 and Table IV.4 of the S ecretariat's report, it appears that different 
products continue to bene fit from a guaranteed minimum price, including - as pointed out in the 
report - milk. Market support for milk, however, do es not show in Brazil's last Domestic support 
notification 2003/2004. Could the Brazilian authorities indicate how much support was handed out to 
milk producers in the period under review?  WT/TPR/M/212/Add.1 
Page 58  
 
 ANSWER: 
  There was no market support for milk be fore 2009 and the amount made available until 
now (beginning of March) has totalled US$ 3.2 million, covering 122 thousand tons. Milk 
production estimates for 2009 are at 30.3 million tons . 
 
(5) Manufacturing 
 
 In para. 107, the Secretariat's report indicates t hat Brazil’s tariff structure for manufacturing 
products continues to present tariff escalation, as  tariffs on fully-processed products are higher than 
for products at the first stage of processing and for semi-processed products. Does the Brazilian 
government intend to even out escalating tariffs in  the manufacturing sector in the near future? 
 ANSWER:  
 Brazil is negotiating the reduction of bound and applied tariffs in the context of the 
Doha Round negotiations. 
 
 In para. 110, the Secretariat's report mentions  that the pharmaceutical sector benefits in 
Brazil from a special BNDES finance scheme. Cred it is provided for production and for research and 
development. The program covers up to 90% of the total cost of a project with repayment periods of 
up to ten years. According to the authorities, the scheme is no longer limited to companies under the 
control of persons residing in Brazil. Could the Br azilian authorities indicate what are the eligibility 
conditions for foreign companies to participate in this scheme? Will foreign companies enjoy the 
same favorable credit and repayment co nditions as domestic companies? 
 
ANSWER: 
  Brazilian companies, notwithstanding the origin  of the capital, have the same credit and 
repayment conditions. Brazilian subsidiaries of foreign pharmaceutical companies can therefore 
access Pro-farma credit lines offered by BNDES to finance production and/or to support their 
R&D activities on the same conditions as any other Brazilian company. 
 
SWITZERLAND (SECOND BATCH) 
 
Report by the Secretariat 
 
336. Switzerland would like to submit the following questions regarding the information contained 
in Table III.13 in paragraph 336 of the Report by the Secretariat: 
 
As regard patents, Table III.13 an d paragraph 343 mention that according to Law No. 10,196 
of 16 February 2001 the grant of patents for pharmaceu tical products or proce sses must receive the 
prior approval of the Brazilian Sanitary Surveillance Agency (ANVISA). Could you please indicate 
what the scope and subject-matter of the examinati on of ANVISA are as compared to and beyond the 
elements of novelty, inventive step and industrial app lication as set out by Article 27.1 of the TRIPS-
Agreement as the conditions for patentability of an invention?   ANSWER: 
 
 Law 10,196/01 introduced the rule of  “prior consent”, whereby patents for 
pharmaceutical products and processes may be gr anted only after ANVISA’s prior examination 
and approval.  Approval is granted or denied after  the evaluation of the application, taking into 
account the patentability requirements provided for in the TRIPS Agreement.  WT/TPR/M/212/Add.1 
 Page 59 
 
 
  The granting of pharmaceutical patents with the participation of the ANVISA is part of 
a complex administrative act of the Executive br anch, which relies on the combined expertises 
of ANVISA and INPI. One should bear in mind that pharma products were not patentable in 
Brazil before the Industrial Property Act of 1996 (Law 9,279/96).   
 ANVISA relies on a specialized and experi enced technical staff, to carry out its 
examination. The examination is carried out in full compliance with the Industrial Property 
Act, and the Agreement on trade-related aspects of intellectual property rights (TRIPS). Thus, ANVISA’s examination focuses on the three patent ability criteria, provided for in the TRIPS 
Agreement as well as in the Brazilian legislation,  which are, as already pointed out: novelty, 
inventive step and industrial application. 
  Needless to say, the TRIPS Agreement, in Ar ticle 1.1, provides that “Members shall be 
free to determine the appropriate method of implementing the provisions of this Agreement within their own legal system and practice”. 
 
Could you please provide additional information on the steps followed by ANVISA in such 
approval procedure and its approximat e length? What are the conditions that need to be fulfilled for 
approval by ANVISA and what are the legal  consequences if approval is denied?  
 
ANSWER: 
 
 As already described, ANVISA’s examinatio n focuses on the three patentability criteria, 
provided for in the TRIPS Agreement as well as in the Brazilian legislation, which are, as 
already pointed out: novelty, inventive step and industrial application.   After concluding the 
examination, ANVISA sends its conclusions to INPI. The approximate length of the ANVISA 
approval procedure is one year.  If approval is denied the patent is refused.  
As regards geographical indications, Table III. 13 mentions GI protection for services or 
goods whose characteristics or reputation are deri ved from the country or region. Please explain 
whether Brazilian legislation also provides for th e protection of indirect indications (e.g. graphic 
representations of national symbols such as the ‘Paõ de Açugar’ for products from Brazil) and 
traditional denominations as geographical indica tions identifying a good as originating in a 
particular place in accordance with Ar ticle 22.1 of the TRIPS Agreement.  
 ANSWER:  
 Article 179 of Brazil’s Industrial Property Ac t (Law 9,279/1996) extends the protection 
of a geographical indication to “the graphical or figurative representation of a geographical indication”.   Articles 176, 177 and 178 of the same Law provide for the protection of geographical indications and defines them in accordance with the definition contained in Article 22.1 of the 
TRIPS Agreement. 
  Art. 176. A geographical indication shall be an indication of source or a denomination of origin.  
 Art. 177. Indication of source shall mean the geographical name of a country, city, 
region or locality in its territory, which has beco me known as a center of extraction, production 
or manufacture of a given product or  of provision of a given service. 
 WT/TPR/M/212/Add.1 
Page 60  
 
  Art. 178. Denomination of origin shall be the geographical name of a country, city, 
region or locality in its territory, that desi gnates a product or service whose qualities or 
characteristics are due exclusively or essentially  to the geographical environment, including 
natural and human factors.  
 
 Table III.13 further indicates that Normative Act No. 075 of 2000 est ablishes conditions for 
the registration of geographical indications. Please specify whether this fo rmulation implies that 
registration is a necessary prerequisite for a particul ar GI to come into existence and/or benefit from 
protection? Please specify also whether the cond itions required by the Act correspond to those 
referred to in Article 22.1 of the TRIPS Agreement, i.e. ‘a given quality’, ‘reputation’ or ‘other 
characteristic’ of the good essentially a ttributable to its geographical origin.  
 ANSWER:   INPI administers a system of registration of geographical indications pursuant to Article 
182 of Brazil’s Industrial Property Act (Law 9, 279/1996). After being registered, a geographical 
indication benefits from full protection as per the Brazilian legislation. The requirements for obtaining the registration are set out in Resolu tion (INPI) 75/2000. Geographical indications 
that are either an indication of source or a deno mination of origin may be registered. Resolution 
(INPI) 75/2000, in full compliance with the definition of TRIPS Article 22.1, establishes the following definitions for indication of  source and denomination of origin. 
 
 “An indication of source shall mean the ge ographical name of a country, city, region or 
locality in its territory, which has become known  as a center of extraction, production or 
manufacture of a given product or of provision of a given service.”  
 “Denomination of origin shall be the geographical name of a country, city, region or 
locality in its territory, that designates a product or service whose qualities or characteristics are due exclusively or essentially to the geogra phical environment, including natural and human 
factors.”  
As regards undisclosed information, Table III. 13 mentions that the Law No. 10, 603 of 
17 December 2002 covers undisclosed information related to pharmaceutical products for veterinary 
use, fertilizers, pesticides, thei r components and related products. Could you please specify whether 
these provisions are also applicable to pharmaceutic al products for medicinal use on human beings? 
If this should not be the case, how does Brazil protect undisclosed information/test data relating to such pharmaceutical products when submitted in the context of marketing approval procedures 
against unfair commercial use, e.g. vis-à-vis a sec ond applicant as required by Article 39.3 of the 
TRIPS-Agreement?  ANSWER:   The provisions of Law no. 10603/2002 do not apply to pharmaceutical products for 
medicinal use on human beings. Brazil guarantees protection to undisclosed test data relating to 
pharmaceutical products for human beings on th e basis of Article 195, indents XI, XII and XIV 
of Law 9279/1996. Undisclosed Information or test data submitted to the  National Agency of Health Surveillance (ANVISA) as a condition  of approving the marketing of pharmaceutical 
products receives formal guarantee that it will not be disclosed to other companies. 
 
340. According to paragraph 340 of the Secretaria t Report, compulsory licensing of patents may 
be used as a remedy against anti-competitive conduct, as  determined by the CADE . In light of Articles 
31(k) and 40.2 of the TRIPS Agreement, please prov ide more detailed inform ation on the examination 
and practice applied by the CADE.   WT/TPR/M/212/Add.1 
 Page 61 
 
 
 ANSWER: 
  Brazil has put in place the necessary legisl ation to implement Articles 31(k) and 40.2 of 
TRIPS Agreement. Nevertheless, it has not to  date been applied to any concrete case. 
 
COSTA RICA   
 
INFORME DE LA SECRETARÍA, WT/TPR/S/212 
III. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS 2) MEDIDAS QUE AFECTAN DIRECTAMENTE A LAS IMPORTACIONES 
viii) Reglamentos Técnicos y Normas  
 Al ser emitidos los reglamentos técnicos por  diferentes autoridades en Brasil, ¿cuáles 
procedimientos se utilizan para a segurar que no se estén emitiendo regulaciones paralelas por parte 
de diferentes autoridades? ¿Cómo se aseguran que la  emisión de la reglamentación técnica se realiza 
conforme con los principios establecidos en el Acu erdo sobre Obstáculos Técnicos al Comercio de la 
OMC? ¿Qué porcentaje de los reglamentos técnicos emitidos están basados en normas 
internacionales? (Página 54, párrafo 122)  ANSWER:   
 WTO’s TBT Agreement, as well as all le gal texts derived from the Uruguay Round, 
were incorporated to Brazilian internal law by means of Decree n. 1355/1944. Therefore, all 
Regulatory Agencies in Brazil have to comply with TBT provisions.   There is no precise statistical data regarding  the percentage of technical regulations that 
are based upon international standards. Most  of the technical regulations issued by 
INMETRO/MDIC are based upon standards of ABNT (Brazilian Association of Standardization), which in turn are most ly based upon international standards. 
 
 Brasil menciona que los reglamentos técnicos adopt an la figura jurídica de leyes, decretos y 
resoluciones, ¿cómo se da la aplicación de la reg lamentación técnica que tiene diferente rango 
jurídico? (Página 56, párrafo 131) 
 ANSWER:   The legal designation of a technical regulation is only a denomination that varies 
depending on the legal text that established the scope of a regulatory agency.  
 Brasil es miembro de la Cooperación Internaci onal de Acreditación de Laboratorios (ILAC), 
y parte firmante del Acuerdo de Reconocimiento Multilateral (MLA). ¿Es reconocida la competencia 
técnica de entes de acreditación de otros paí ses que también son miembros del MLA en ILAC? 
(Página 59, párrafo 149) - ix) Medidas sanitarias y fitosanitarias 
 
ANSWER:    Yes. Each regulatory agency, however, has its own criteria to accept or not those 
procedures. In this case, there must be a sep aration between what is under the scope of a 
regulatory agency and of the na tional body of accreditation. 
  Brazil’s Guide on Good Regulatory Practices encourages the above-mentioned recognition. 
 WT/TPR/M/212/Add.1 
Page 62  
 
  ¿Qué porcentaje de las MSF de Brasil se  basan en las normas internacionales de las 
organizaciones de referencia? (Página 60, párrafo 156 y página 61, párrafo 165).  
 
ANSWER: 
 
 Most notifications issued by Brazil were re ferenced by international standards. Of the 
392 notifications made between 2004 and 2008, over 85% of Brazil measures were based on international standards.  
 
 Desde el punto de vista institucional, ¿cómo se atiende el tema de la inocuidad de los 
alimentos? ¿Cuáles instituciones tienen competen cia en este tema y en relación con cuáles 
productos? (Página 60, párrafo 157)  ANSWER:  
 The Ministry of Agriculture is respon sible for controlling the sanitary and 
phytosanitary (SPS) aspects of production and tr ade of all livestock, animal products,  fruits, 
vegetables, grains, plants, veterinary drugs,  pesticides, and their components, including, 
inspecting their manufacture, import, and storage, administration and application of SPS regulations, and the implementation of action s agreed upon with international agencies and 
foreign governments.  The Ministry of Agricu lture is also responsible for issuing safety 
certification for food exports. ANVISA is respon sible for measures relating to food safety. 
  ¿Cuáles son los principios y lineamientos gen erales sobre los cuáles Brasil negocia acuerdos 
de reconocimiento de equivalencia con otros so cios comerciales? (Página 61, párrafo 163).  
 
ANSWER: 
  They are based on equivalence and on ri sk analysis according to the SPS Agreement 
recommendations.    All recognition of equivalence agreements established by Brazil takes into account the 
principles of: a) scientific and technical justification of the systems or methods used, which 
should be equivalent in regard to their capacity to prove their effectiveness in mitigating specific 
pests or diseases; b) harmonization among sy stems and methods recommended by international 
standards; c) systems or methods used should h ave the same level of protection to be considered 
equivalent. Determination of equivalence involv es a sequential process of information exchange 
and analysis between importing and exporting contracting parties. 
  ¿Cuáles son los principios y lineamientos generales sob re los cuáles Brasil realiza el 
reconocimiento de sistemas y certificaciones sanitari as y fitosanitarias de otros socios comerciales? 
(Página 62, párrafo 168). 
 
ANSWER:   Brazil has adopted many measures towards harmonization. Within the Ministry of 
Agriculture, Livestock and Food Supply (MAPA), the main measures have been: 1 - employment of a greater number of professionals and training in sanitary and phytosanitary 
activities; 2 – increased Brazilian participatio n in International Standards Setting Bodies 
(ISSBs); 3 – creation of specific and specialized administrative offices in 2005 in order to deal with issues related to the SPS Committee and to  ISSBs. These offices are responsible for the 
analysis of MAPA legislation in regards to harm onization with ISSB sanitary and phytosanitary 
guidelines.  WT/TPR/M/212/Add.1 
 Page 63 
 
 
 HONG KONG, CHINA  
 
Anti-dumping Legislation 
(WT/TPR/S/212, P. 40, Para. 83) 
 
 We note from the Secretariat Report that a new legislative provision was introduced in 
September 2008 to allow the Brazilian Governme nt to extend anti-dumping and countervailing 
measures to third countries if “elusive practices” ar e undermining the application of the measures.  
We should be grateful if Brazil could provide deta ils of this new provision including the rationale 
behind the introduction of the provision and when the sp ecific regulation will be issued.  We also wish 
to know if Brazil will notify this provision to the WTO so that Members could have the opportunities 
to examine it. 
 
ANSWER:   The aforementioned legislation was enacted in 2008 and is currently pending regulation. 
Since the new provision as established by the aforementioned amendment is not yet being 
enforced due to the lack of specific regulation, the amendment has not yet been notified to the 
WTO.  MFN Exemptions (WT/TPR/S/212, P. 119, Para. 114) 
 
 As reflected in the Secretariat’s repor t and Brazil’s schedule of commitments, Brazil 
maintains three MFN exemptions relating to th e audiovisual services, l and transport and maritime 
transport services.  All these exemptions are of an indefinite intended durati on; and for the one on 
maritime transport, Brazil reserves the right to offer more favourable treatment to some WTO 
Members conditioned on reciprocity. We would appreci ate Brazil’s advice on any plan to remove all 
MFN exemptions.  
ANSWER: 
 
Changes in the Brazilian list of MFN exemptions are not under consideration at this 
moment. It is worth noting that the Brazilian revised offer includes important commitments in 
the maritime transport services sector. 
 
Financial Services (WT/TPR/S/212, P. 120, Para. 116)  
 It is noted that Brazil has not yet ratified the F ifth Protocol on Financial Services.  As set out 
in the Secretariat’s Report, while the Protocol  had passed the second reading in the upper House of 
the Brazilian Congress, it has not yet been adopted due to procedural matters.  We should be grateful 
if Brazil would enlighten us on the latest progress of  its ratification of the Pr otocol and the expected 
timeframe for completing the ratification.   
ANSWER: 
 
As it was stated in the last regular meet ing of the Committee on Trade in Financial 
Services of the WTO, in December 2008, due to procedural matters the Fifth Protocol has not 
yet concluded its ratification process. A specific  time-frame for the completion of the process 
cannot be determined.   WT/TPR/M/212/Add.1 
Page 64  
 
 (WT/TPR/S/212, P. 121, Para. 121) 
  We also note from the Secretariat’s Report as well as Brazil’s revised services offer that 
establishment of financial institutions needs a spec ific authorisation granted on a case-by-case basis 
by the Executive Branch, by means of a Presidentia l Decree.  We would like to know the specific 
criteria that the Executive Branch would take into account when considering applications for the 
establishment of new foreign financial institutions, especially those which would constitute limitations 
in terms of market access and national treatment. 
 
ANSWER: 
 
The approval by Presidential Decree embodi es the normal Executive discretion on the 
establishment of new foreign financial institutio ns, on the basis of sistemic and prudential 
considerations. It is not, therefore, an impediment  to foreign investment in the financial sector..  
The market share of foreign banks, authorized to  operate in Brazil in the last decade, currently 
corresponds to 23% of the total assets of the Brazilian banking sector. 
 
Telecommunications (WT/TPR/S/212, P. 128, Para. 159)   As noted from the Secretariat’s Report as well as Brazil’s revised offer, the Executive Branch has the right to limit new foreign participation in the telecommunications sector.  However, as noted 
in the Secretariat’s Report, in pr actice any company estab lished in Brazil, regardless of the origin of 
capital, has been able to participate in the sect or.  Since the reserved right to limit new foreign 
participation would substantively undermine the legal certainty for foreign investors, would Brazil consider narrowing the gap between its de jure and de facto regime by lifting the limitation on new 
foreign participation, or setting out the conditi ons under which new foreign participation will be 
limited, or prescribing a fixed new foreign participation ceiling?  
ANSWER: 
 
 According to Brazilian legislation, any telecommunication service provider willing to 
operate in Brazil needs to have its head offi ce and central management located in Brazilian 
territory; moreover the majority of the voting sha res shall be owned by natural persons resident 
in Brazil or by companies duly constituted accord ing to the Brazilian legislation, which should 
also have its head office and central management located in Brazilian territory.  
  There is no gap between de jure and de facto regimes. In Brazil the Executive Branch has a legal prerogative to consider limits to forei gn participation in the capital composition of 
telecommunication service providers, but the Fe deral Constitution guarantees all acquired 
rights of service providers already established in Brazil. 
 
Maritime Transport Services (WT/TPR/S/212, P. 138, Para. 210) 
 
 We note from the Secretariat’s Report and Braz il’s schedule of commitments that Brazil is 
maintaining a measure in collecting lighthouse fee (TUF) exclusively on foreign flag vessels.  We 
would like to know the rationale behind such me asure and whether Brazil has any plan to lift the 
measure and remove this NT limitation in its next offers. 
  WT/TPR/M/212/Add.1 
 Page 65 
 
 
 ANSWER: 
  TUF has been charged for the supply of a proper maritime sinalization service in order to protect  navigation. The amount collected is us ed to maintain the capacity to provide such a 
service and expand it. 
 
ARGENTINA 
INFORME DE LA SECRETARIA 
I. Entorno Económico  3) Política fiscal  
Párrafo 14, página 4      
 El informe menciona la existencia de un pro yecto de reforma fiscal que está siendo analizado 
por el Congreso brasileño. Al respecto, se realiz an las siguientes consultas:  ¿Cuáles son los 
principales cambios o  medidas que plantea este pro yecto?  ¿Se registró  algún avance en el trámite 
parlamentario  desde la fecha de cierre del presente  informe? 
 ANSWER:   The tax reform Bill foresees adjustments in current fiscal practices and new legal instruments to reduce the complexity of the Br azilian tax system. To this end, the proposed 
disciplines are aimed at simplifying and reducin g bureaucracy of the tax system; eliminating 
distortions and fiscal competition; lowering complia nce costs; eliminating the different levels of 
state taxation; reducing excessive taxation on p ayrolls; abolishing cumulative taxes; and 
improving tax neutrality. 
 
 The Bill has already been approved by the Special Commission of the Lower House of 
Parlieament, and is ready to be voted in the plenary session of the House. However, a time-
frame for the final approval cannot be determined , considering that a Bill of this magnitude 
requires long discussions in Congress with the stakeholders.  
 Párrafo 16, página 15     
 
 El párrafo 16 señala que en mayo de 2008 el  Ministro de Finanzas anunció la creación de un 
Fondo Soberano Brasileño (FSB) y que una Ley al respecto fue presentada al Congreso, si bien en octubre pasado se continuaba discutiendo la naturaleza  de este Fondo. Entre los objetivos del FSB 
figura la promoción de las inversiones en Brasil y en el extranjero. Al respecto, ¿Podría Brasil 
informar cuál es el estado de situación de esta inic iativa?. ¿Podría Brasil indicar los criterios por los 
que se determinarían los sectores que recibirían las inversiones y si esos sectores ya han sido definidos? 
 
ANSWER: 
 
 The Fund was established by Law 11.997, promulgated by Presidente Luiz Inácio Lula 
da Silva on 26 December 2008. The decree that establishes the rules under which the FSB will operate has not been issued so far. Such provi sions are still being discussed within the Brazilian 
Government.  
 The FSB was conceived as a means to suppo rt Brazilian investment abroad. Internally, 
it is also aimed at working as a counter-cyclical instrument in the fiscal policy, investing funds 
in moments of public surplus and injecting funds in moments of fall of tax revenue. 
 WT/TPR/M/212/Add.1 
Page 66  
 
 II. Régimen de Política Comercial y de Inversión 
4) Régimen de Inversiones Extranjeras  Párrafo 26, página 17      El informe menciona el requisito de pedir aut orización a la Secretaría General del Consejo 
de Seguridad Nacional para la compra de propi edades por parte de extranjeros en las zonas 
fronterizas. Podría Brasil definir:  ¿A qué tipo de propiedades se aplica esta medida?  ¿Cuál es el 
criterio para definir que una propiedad se encuentra en zona fronteriza?    
 
ANSWER: 
 
 The restrictions in border areas related to national security concerns, apply to the area 
of up to 150 Km from the borders and in sea costal areas 
 
III. Políticas Comerciales por Medidas   
2) Medidas que afectan a las importaciones  
v) Otras medidas Párrafo 70, página 38   
 
 El informe indica que los impuestos PIS y COFINS se comenzaron a aplicar también a los 
productos importados a partir del 2004, aunque con excepciones. Podría Brasil precisar:  ¿Cuáles 
son los productos importados que se encuentran exceptuados de estos dos impuestos?  ¿Cuáles son 
las razones que justifican dicha excepción? 
 
ANSWER: 
 
 The exemptions were established by law 10.925/20 04 for some foodstuffs, such as milk in 
natura, rice, beans, coffee and some kinds of cheese. In 2008, a temporary exemption was given 
(until june/09) to wheat, wheat powder, powder mi x for bread and regular bread. There is also 
an exemption for press type paper.  The reaso n for those exemptions is the reduction of 
foodstuff prices. 
 
III. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  2) Medidas que afectan directamente las importaciones v) Otras cargas que afectan las importaciones Párrafo 73, página 39    
 
 El informe indica que la importación y la co mercialización de gasolina, combustible diesel, 
queroseno, aceite combustible, gas  licuado de petróleo (GLP) y alc ohol etílico combustible están 
sujetas a una Contribución de "Intervención en el  Dominio Económico" (CIDE) y que este impuesto 
se aplica en forma de tipo específico por unidad de im portación.  ¿Podría Brasil indicar Cuál es el 
monto de los derechos y la base de aplicación de los mismos? 
 
ANSWER:   The total revenue from CIDE was R$ 5. 9 billions in 2008.  Applied fares: Nafta 
(Gasolina): R$ 501,10/m3;  Diesel: R$157,80/m3;  Fuel oil: R$ 11,40/ton;  Liquified Gas from Oil (GLP): R$ 104,60/ton;  Alcohol (fuel): R$ 22,54/m3. 
  WT/TPR/M/212/Add.1 
 Page 67 
 
 
 III. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
2) Medidas que afectan directamente las importaciones vi) Medidas comerciales especiales Derechos antidumping y derechos compensatorios   Párrafo 83, página 40     
 
 El informe indica que la legislación br asileña sobre derechos antidumping y derechos 
compensatorios fue modificada en septiembre de  2008, permitiendo al Gobierno hacer extensivas las 
medidas antidumping y compensatorias (incluso  con respecto a partes, piezas y componentes de un 
producto) a terceros países, si verifica que su aplic ación se menoscaba por prác ticas de elusión. No 
obstante, al mes de Noviembre de 2008 aún no habí a sido promulgada la reglamentación específica. 
¿Podría Brasil indicar si ya ha sido promulgada dicha reglamentación?  ANSWER:  
 The aforementioned legislation was enacted in 2008 and is currently pending regulation. 
Since the new provision as established by the aforementioned amendment is not yet being enforced due to the lack of specific regulation, the amendment has not yet been notified to the 
WTO and no investigations on elusive practices have been undertaken.  III. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
2) Medidas que afectan directamente las importaciones 
vi) Medidas comerciales especiales d) Zonas de elaboración para la exportación Párrafo 206, página 62     
 El informe indica que la Ley N° 11.732 referente a las zonas de elaboración para la 
exportación, ha sido modificada en  Julio de 2008.  ¿Podría Brasil precisar cuáles han sido las 
modificaciones introducidas? 
 
ANSWER: 
 
 There were no changes in Law N 11.732 in July, 2008. Paragraph 206, Page 62 of the 
Secretariat’s Report should read: “Export-processi ng zones (EPZs) in Brazil are regulated by 
Law N 11.508, of 20 July 2007, as amended by Law N 11.732, of 30 June 2008”.   III. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
4) Medidas que afectan a la producción y el comercio 
II) Política de precios y de competencia Párrafo 255, página 73    
 El informe menciona que Brasil está considerando  algunos cambios en la legislación sobre 
política de competencia y ampliar las facultades del CADE (Consejo Administrativo de Defensa 
Económica).  ¿Podría Brasil explicar en detall e cuáles son exactamente los cambios que se 
encuentran en estudio? 
 
ANSWER: 
 
 The most important change promoted by Bill nr. 5.877/2005, still pending approval by 
the Brazilian Congress, is the establishment of the pre-merger notification system. The proposal 
is in line with international standards with regar d to the reviews of competitive implications of 
merger transactions. It eliminates the market share notification threshold and the system of 
notification of non-merger transactions curren t applyed establishing thresholds based on the WT/TPR/M/212/Add.1 
Page 68  
 
 domestic turnover of both the larger and the sma ller parties to the transaction. The Bill also 
consolidates the investigative, prosecutorial , and adjudicative functions within CADE. 
 
III. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
4) Medidas que afectan a la producción y el comercio 
iv) Incentivos y otras ayudas oficiales d) Otros programas de facilitación de los créditos Párrafo 302, página 84     
 El informe hace referencia a que la FINAME (Agencia Especial de Financiación Industrial) 
presta financiación, en condiciones preferenciales  y sin límite de valor, para las adquisiciones 
individuales de nueva maquinaria y equipos de fabricación nacional, acreditados por el BNDES 
(Banco Nacional de Desarrollo Económico y Socia l).  ¿Podría Brasil aclarar cuáles son las 
condiciones preferenciales a las que  hace referencia el informe? 
 
ANSWER: 
 
FINAME’s credit lines purpose is to provide asset-based financing for the acquisition of 
new machinery and equipment by Brazilian ent erprises. These credit lines are available to 
exporting and non-exporting companies of any economic sector, and are offered through 
accredited financial institutions, most of them, private. The applied interest rate includes the 
remuneration of both BNDES and the accredited fi nancial institution, as well as the financial 
cost of the transaction. BNDES remuneration ch arged is 0.9% per year for small and medium 
enterprises and 1.8% per year for large ente rprises. The remuneration of the accredited 
financial institution is freely and directly negotiated between the latter and the buyer.  
 
 The financial cost of the loan is based on the Long Term Interest Rate – TJLP, which is 
regulated by Law 9365 (Dec. 16, 1996), as modified by Law 10183 (Feb. 12, 2001).  TJLP includes a risk premium, which is determined based on interest rates in force in the international market and on Brazil’s sovereign ri sk. The TJLP rate is set every quarter by the 
Brazilian Central Bank in accordance with the ru les established by the National Monetary 
Council and can be found in any of the main Brazilian newspapers. 
 IV. Políticas comerciales por sector 5) Sector manufacturero Párrafo 106, página 118    
 
 El informe indica que, en mayo de 2008 , el Gobierno puso en marcha la “Política de 
Desarrollo Productivo” como mejora de la PITCE (Política Industrial, Tecnológica y de Comercio 
Exterior), la cual tiene como objetivos incrementa r las inversiones, la participación del Brasil en las 
exportaciones mundiales y el número de pequeñas y medianas empresas exportadoras. De acuerdo al 
informe las autoridades tienen previsto ofrecer 210.000 millones de reales en líneas de crédito total 
hasta 2010, a través del BNDES y a través de programas de creación de  capacidad tecnológica 
aplicados en el marco del MDIC (Ministerio de De sarrollo, Industria y Come rcio Exterior) y también 
la concesión de exenciones fiscales nuevas por un a cuantía estimada en unos 3.300 millones de 
dólares. Podría Brasil brindar más información acerc a de: ¿Cuáles son las condiciones en las que se 
otorgarán los créditos y las exencion es fiscales?  ¿Cuáles son los requisitos que deben cumplir las 
empresas para acceder a los mismos?  ¿A qué secto res estarán dirigidos dichos créditos y exenciones 
fiscales?   WT/TPR/M/212/Add.1 
 Page 69 
 
 
 ANSWER: 
  Financing provided by BNDES will follow the co nditions of its ordinary credit lines and 
programmes which finance traditionally dom estic and overseas investments of Brazilian 
enterprises, exports, imports, domestic commercialization of capital goods and infrastructure 
projects in Brazil. 
  Eligibility criteria are the same applied to the ordinary credit lines managed by BNDES. 
  BNDES’ support to the Brazilian enterprises takes into account the feasibility of the 
project/transaction, the adherence to the govern mental policies and the availability of risk 
mitigation schemes.   Credits are available for almost every sector  in the economy. Exceptions are real-state, 
housing, financial services and defense material  trade, which are not eligible for BNDES 
support.  
6) Servicios 
Párrafos 126 a 128, página 122   En estos párrafos se detalla el procedimiento por  el cual una institución financiera extranjera 
debe solicitar autorización para establecer nuevas sucursales en Brasil, autorización que, tras 
recomendación del Banco Central y del Consejo Mone tario Nacional,  finalmente se otorga mediante 
un Decreto Presidencial.  ¿Podría indicar Brasil la  cantidad de solicitudes recibidas durante los 
últimos años y cuántas de ellas fu eron aprobadas?  Asimismo, de regis trarse casos de solicitudes no 
fueron aprobadas, podrían indi carse las razones del rechazo?  
 
ANSWER: 
  The approval by Presidential Decree embodies the normal Executive discretion on the establishment of new foreign financial institutio ns, on the basis of sistemic and prudential 
considerations. It is not, therefore, an impedime nt to foreign investment in the financial sector. 
The market share of foreign banks, authorized to  operate in Brazil in the last decade, currently 
corresponds to 23% of the total assets of the Brazilian banking sector. 
 
NEW ZEALAND 
 
1. Non-tariff charges affecting imports  (WT/TPR/S/212, p. 37 paras 64-70)  
• From the Secretariat’s report it appears that the Brazilian system of non-tariff charges 
affecting imports has a high level  of complexity.  For example: 
 
• Since 2004 there are now four value-ad ded taxes that are applied on imports; 
• Of these, there is both a federal industrial  products tax (IPI), a state-level services and 
merchandise circulation tax (ICMS), and the social integration programme (PIS), and a social security (COFINS) taxes; 
• rates vary, and are changeable; 
• the ICMS is levied on both intra-state and inter-state transactions; 
• ICMS charged on imported goods is  calculated on the c.i.f. value, plus duties, IPI and “other 
customs charges”, of which there is no common definition across states; 
• the predominant intra-state transactions rate is  applied at 18%, although the effective rates 
are higher; 
• compensation must be claimed due to  differences in ICMS across states; WT/TPR/M/212/Add.1 
Page 70  
 
 • there are exemptions; 
• the application of the exemptions coul d discriminate against imported products; 
• there are airport (ATAERO) and marine taxes (AFRMM). 
  The complexity of this system, together with a complicated legal environment and 
bureaucracy, constitutes a significant obstacle to companies wishing to do business in Brazil.  
Furthermore the costs imposed through the levy ing of these taxes on imports can make them 
uncompetitive compared to similar domestic products.  It would be appreciated if Brazil would outline 
what steps it will take to rationalise the range of  non-tariff charges to make it easier for trade to 
occur. 
 
ANSWER:   A tax reform is currently under discussion in Brazil. The reform Bill foresees adjustments in current fiscal practices and new legal instruments to reduce the complexity of 
the Brazilian tax system. To this end, the prop osed disciplines are aimed at simplifying and 
reducing bureaucracy of the tax system; eliminatin g distortions and fiscal competition; lowering 
compliance costs; eliminating the different levels  of state taxation; reducing excessive taxation 
on payrolls; abolishing cumulative taxes; and improving tax neutrality.   The Bill has already been approved by the Special Commission of the House of Deputies, 
and is ready to be voted in the plenary session of  the House. However, a time-frame for the final 
approval cannot be determined, considering th at a Bill of this magnitude requires long 
discussions in Congress with the stakeholders.  3. Contingency measures (WT/TPR/S/212, p. 39 para 75, pp. 41-42, paras 88-95) 
 
 The Secretariat’s report notes that Brazil is an active user of anti-dumping (AD) measures, 
with 63 AD measures in force, affecti ng the exports of 23 trading partners.   
  Could Brazil explain why anti-dumping price undertakings on products from some countries 
have been allowed to expire in the 2004-2008 peri od, while anti-dumping duties on the same product 
from other countries remain in force, even when those latter c ountries have not exported the product 
in question to Brazil for several years?    Can Brazil also confirm that under Brazili an law trade remedy proceedings have to be 
translated into Portuguese by an official Brazilian translation service?  If so, can Brazil explain how 
it will introduce more competition into the official Brazilian translation service sector, to avoid this 
requirement acting as a technical barrier to trade?  
 
ANSWER: 
  The conditions for anti-dumping price undert akings are established on a case by case 
basis. The aforementioned expiration took pla ce in a manner consistent with the terms of the 
price undertakings concluded and the provisions of the ADA. Regarding the duties applied to 
imports from other countries the review carried out by the authorities determined that the 
expiry of the duties would be likely to lead to  the continuation or recurrence of dumping and 
injury. It should also be noted that accordin g to Brazilian Law any interested party may request 
a review of the need for the continued imposition of the anti-dumping duty if they provide 
sufficient evidence that:  I – the application of the duty is no  longer necessary to offset dumping; 
II – the injury is unlikely to continue or recur if the duty were removed or varied;  WT/TPR/M/212/Add.1 
 Page 71 
 
 
 III - the existing duty is not or no longer sufficien t to offset dumping which is causing injury to 
the domestic producers.   As regards the second question, Brazilian Law (Article 13 of the Constitution) requires that all official acts and procedures must be published and conducted in Portuguese.  Under the 
WTO agreements, there is no obligation for the Me mbers to provide translations or to maintain 
records of an investigation procedure in a speci fic language.  It should be noted that the 
Brazilian authority always extends the time  period for answering the questionnaires. 
 
4. Government procurement (WT/TPR/S/212, p. 85, para. 306, p. 86 para 316) 
 
 The Secretariat report notes that Brazil has taken steps to increase transparency in its 
government procurement regime, with procurement based on best-price criteria when tendering takes 
place.  However we also note that over 40% is not subject to tendering.  What steps is the Brazilian government taking to increase the proportion of procu rement decisions made by tender?   What plans 
does the Brazilian Government have to collect comp rehensive statistics on government procurement, 
including at federal, state and municipal levels?   There are a large number of exceptions to the tendering requirements, including 
communications equipment and information technol ogy (p. 86 paras 311-315).  Can Brazil explain 
why these sectors are excluded and outline what plan s are in place for ensuring that projects in these 
areas automatically enjoy the competitive benefits of tendering? 
  The Secretariat’s report also notes that although in general national trea tment is afforded to 
foreign suppliers legally established or represented in Brazil, “preference may be given to goods and 
services produced in Brazil as a criterion for deci ding between identical offers”.  Furthermore, 
“suppliers must be legally established or represente d in Brazil to qualify for government contracts,” 
and “foreign firms without operations in Brazil and involved in international tenders need legal 
representation in the country or to be associated with a Brazilian fi rm (at least 51% Brazilian capital 
participation and operational contro l by Brazilian nationals)”.   
  Could Brazil provide a rationale for these rest rictions and outline its plans for the further 
liberalisation of its government procurement regime? 
  Could Brazil also explain why it is that  foreign companies cannot open bank accounts in 
Brazil unless they have an office in Brazil, and why, e ven if they could open a bank account in Brazil, 
they cannot be registered as a payee on the Government  system without a local office? This creates a 
significant payment risk for small foreign companies who cannot afford to open offices in Brazil. 
 ANSWER:   The Federal Law nº 8.666 establishes, in its articles 24 and 25, the cases in which 
tendering may or shall not take place, in order to increase administrative efficiency. Statistics 
may be obtained from the Financial Administ ration Integrated System, where all expenditure 
made at the federal level is registered. States and municipalities are responsible for controlling 
their tendering regimes, including the elaboration of statistics.   Communications and information technology are subjected to tendering requirements, 
except for a few specific provisions outlined in Federal Law nº8248 (23 October 1991). Suppliers 
must be legally established or represented in Br azil in order to comply with the requirements 
set out by articles 27, 28 and 29 of the Tendering Law.   WT/TPR/M/212/Add.1 
Page 72  
 
  In order to operate in the Brazilian banking  system, any person or enterprise must be 
liable to judicial procedures in case of fraud or any other infraction to the Brazilian legislation. 
The same commentary is va lid for payees registered in the Government system.  
 
5. Import licensing (WT/TPR/S/212, p. 46, para 111 -112) 
 
 New Zealand supports Brazil’s decision on 30 January 2009 to suspend policy which would 
have re-introduced non-automatic import licensing requirements for an estimated 70% of Brazil’s 
imports.  Despite this welcome demonstration of Brazil’s commitm ent to open trade, non-automatic 
import licensing still affects over a third of all ta riff lines. These are issued by various different 
agencies which can create delays in receiving import  licenses.  The MDIC online table of products 
reveals that among the products still subject to non-automatic licensing are: live animals, vegetable products, fats and oils, prepared food, el ectronic equipment, and wood and articles. 
  Could Brazil explain the rationale for maintain ing a non-automatic licensing regime for these 
products, and outline its plan and timefra me for remedying this situation? 
 ANSWER:   Non-automatic licenses are an instrument to  integrate different control requirements, 
imposed by different agencies, within a single el ectronic system for the processing of import 
documentation – the Integrated System of Foreign Trade (SISCOMEX). 
  Each governmental agency in charge of imposing non-automatic import licensing requirements derives its specific competence from law and/or international treaties. The website 
of the Ministry of Development, Industr y and Commerce (MDIC – www.desenvolvimento. 
gov.br) contains a list of those agencies, the legal basis for the controls imposed by them, and the 
justification for their implementation.   In order to minimize the impact of licen sing requirements on Brazilian imports, all 
governmental agencies involved in import contro ls are periodically required to review their 
licensing requirements and to reduce their contro ls to the minimum necessary, considering the 
principles of reasonability, proportionality, publ ic interest and efficiency. As an additional 
measure to minimize the impact of licensing on trade, Resolution CAMEX nº 70/2007 introduced a new process whereby the merit and the legality of agencies’ demands for products to be subject to licensing are checked in order to avoid the occurrence of multiple authorizations 
and inspections, with a view to saving time and costs.  
 
6. Customs (WT/TPR/S/212, p. 28, para. 17) 
 
 The Secretariat report notes that Brazil has ta ken some steps to simplify and modernize its 
customs procedures, including the express import decl aration for frequent importers.  However in 
2007 the average time for customs clearance was betw een 0.8 and 35.7 days, depending on the level 
of verification needed.  Can Brazil outline the steps it is taking to ensure that the average speed of 
turnaround is reduced, especially for agricultura l products, and that further improvements are 
achieved?  ANSWER: 
 
 From 2004 to 2007, the Secretariat of the Federal Revenue of Brazil (RFB) continued 
the ongoing effort to speed up the flow of fo reign trade, whereas increasing repression of 
customs related crimes. The average time for cu stoms clearance has been constantly reduced 
trough the years, reflecting the efforts to consolidate, simplify and harmonize customs  WT/TPR/M/212/Add.1 
 Page 73 
 
 
 procedures. The intensive use of information t echnology (IT) improved risk analysis, reducing 
release times in ports and strengthening the comb at to frauds like counterfeiting and piracy. In 
this period, RFB started developing a project based  on artificial intelligence, in order to make 
risk management techniques more effective when  applied to selecting operations for inspection 
during customs clearance and during the author ization process for foreign trade operators. 
Brazil is making efforts to sign important intern ational agreements related to customs, such as 
the Revised Kyoto Convention and the Istanbul Convention, both from the World Customs Organization. Likewise, RFB is working on licit  trade facilitation, cooperating with other 
Brazilian government agencies, as well as with other countries customs administrations.  
 Average customs clearance time for agricul tural products has been reduced in tandem 
with the average clearance time for goods in gene ral, due to trade facilitation measures adopted 
by Brazil. 
 
7. Agricultural Subsidies (WT/TPR/S/212, p. 96, 97, paras 5, 6; p. 97-108) 
 
 The Secretariat’s report notes that although the va lue of Brazil’s domestic support is low, the 
programmes in place to assist agricultural produc tion are distorting forms of support which, when 
coupled with Brazil’s large agricultural exports, coul d affect global markets.  Brazil’s trade distorting 
support for agriculture includes the provision of credit below market cost and guaranteed prices.  
New Zealand strongly supports Brazil’s efforts to ensure all WTO members lower agricultural 
subsidies, including those in the United States and the European Union.  New Zealand has also 
commended Brazil’s role in resisting the implementati on of protectionist measures in the face of the 
economic crisis.     Against this background, can Brazil please outlin e its intentions regar ding the provision of 
subsidies, and trade distorting sup port, for agricultural production? 
  Can Brazil please provide a complete list of all new or modified programmes of agricultural 
support in place since September 2008, including th e name of the programme, the sector or sectors 
that it covers, and the US$ value of the assistance?  
ANSWER: 
  Credit-related support increase in the last few years, with the exception of 2007, was 
mainly due to debt rescheduling. That support accounts for about half of the total support 
granted, and benefited mainly medium size farmers. 
 
 Major producers of export goods count essentially on private credit sources and are subject to much higher interest rates than in the world market. In addition, the benefit 
appropriated by medium size producers from the credit policy based on concessional interest 
rate is lower than the credit subsidy awarded. This is due to the fact that the financial cost faced 
by producers is highly inflated by conditionalit ies imposed by banks. Thus, taking into account 
that PSE for Brazil is low, possible world market  distortion caused by credit-related support 
was certainly minimal.   Furthermore, the financing of agriculture at concessional interest rates corresponds only to 25% of the rural credit. 
 
 Brazil has periodically revised its agricul tural policy since the major reform undertaken 
in the early 1990s and will continue to pursue its modernization based on the following criteria: 
(a) a more market-oriented approach, increasing  the participation of private sources of 
financing; (b) the pursuit of higher efficiency in  the allocation of concessional credit resources; WT/TPR/M/212/Add.1 
Page 74  
 
 (c) improvement of its policy instruments; (d) higher transparency on farmers' indebtedness 
and accountability, guaranteeing them bett er access to credit. Another initiative under 
consideration is the strengthening of futures ma rkets in providing support to farmers, which 
would dilute their risk and sustain their in come. These are the main challenges Brazil must 
overcome in order to expand and improve the country’s agricultural performance.  
 
 Brazil’s Agriculture and Livestock Plan 2008/2009 , in place since July 2008, contains the 
main changes on national agricultural policy introduced before September 2008 and has not been modified.  
 Brazil has already circulated its pending no tifications on Export Subsidies and Market 
Access for the years 2002 to 2007. The Secretaria t is finalizing their formating in order to 
distribute to Members.    The Brazilian Government is finalizing the compilation of information regarding 
notifications on domestic support for the years 2005, 2006 and 2007.  Brazil intends to circulate 
them by the end of the first semester of 2009 
 
8. Mercosur (WT/TPR/S/212, p. 21, paras 39 and 40)    
 
 We welcome the decision of Brazil and its Mercosur partners in December 2008 not to 
proceed with the planned increase of the Comm on External Tariff.  New Zealand has commended 
Brazil’s role in the WTO, G-20 and other fora, in  resisting the implementation of protectionist 
measures in the face of the economic crisis.  Can Br azil outline the steps it is taking to work with its 
Mercosur partners to resist increasing Mercosur tariffs?  
 
ANSWER:   Changes to the CET are routinely discussed in Mercosur´s Decision Bodies and include 
both proposals to reduce rates and proposal to  raise certain duties. Some of the proposals 
mentioned by Singapore are indeed being discusse d but no decision has been taken on them. 
 
 The increases in the CET being discussed are part of the routine exercise mentioned 
above, have no relation to the economic crisis, and,  if implemented, will be very limited in scope 
and designed to address very specific situations.    Brazil reaffirms its committment to multilat eral trade liberalization and continues to be 
at the forefront of the battle against protectionism, both regionally and globally. 
  The Secretariat’s report notes that 0.7% or  100 of Brazil’s tariff lines are subject to 
exceptions to Mercosur’s Common External Tariff. W hat percentage of Brazil’s external trade (by 
value) do these exceptions represent?   
ANSWER: 
  The line by line trade statistics can be found at the “System of Trade Information Analysis (ALICEWeb)” website: http://aliceweb.desenvolvimento.gov.br/ 
 
 We would be grateful for a complete list of those exceptions detailing when each exception 
will be eliminated.      WT/TPR/M/212/Add.1 
 Page 75 
 
 
 ANSWER: 
  The Brazilian list of exceptions to the CET is available at the folling web page:  http://www.desenvolvimento.gov.br /arquivos/dwnl_1227554000.xls 
 
 We would also be grateful to know the steps Brazil is taking to ensure the 2010 deadlines for 
elimination of these exceptions are met.  ANSWER:  
 Brazil intends to meet the 2010 deadline for the elimination of the exceptions.    
 The Secretariat’s report notes that Mercosur’s members include Brazil, Argentina, Uruguay 
and Paraguay.  We understand that Venezuela is in the process of accession to the Bloc. Can Brazil 
please provide an update on the situation concernin g Venezuela’s Mercosur tariff schedules, when 
they will be negotiated and what are the expected tariff levels and exceptions that might be accorded 
to Venezuela?  ANSWER:   With regard to Venezuela’s tariff schedul es in Mercosur, the question goes beyond the 
scope of a TPR of Brazil.  
9. Technical regulations and standards (WT/TPR/S/212, p. 98-99, para. 17-19) 
 
 The Secretary’s report notes that a large number of agencies (27) issue technical regulations 
at the federal level, each following its own procedures, and that since 2004 Brazil has developed 
approximately 2,130 standards, of which only 38% were adoptions of ISO or IEC standards without any change.  The variety of different standards, ofte n with their separate requirements for individual 
testing on a regular basis, constitutes a significant  obstacle to companies wishing to do business in 
Brazil. Can Brazil please explain what steps it w ill take to rationalise the technical regulations and 
standards systems to make it easier for trade to occur?  What steps is Brazil taking to ensure that a 
greater number of its standards are c onsistent with international standards? 
 ANSWER:   The Brazilian Association of Standardization (ABNT) is a private entity and a full 
Member of ISO and IEC. ABNT submits its annual working program to WTO’s TBT 
Committee and complies with the Annex 3 of the TBT Agreement (Code of Good Practice for the Preparation, Adoption and Application of Standards). 
 
 Can Brazil also explain why, in the case of the renewal of existing certificates of product 
compliance to Brazilian standards, Brazil requires the same products to be re-tested every two years 
before certificates can be renewed, whereas in the majority of other countries such certificates are 
renewed automatically when the product in question has not changed?    ANSWER:  
 Once a certificate is issued, it is necessa ry to carry out assessments for parts of the 
regulation concerned, with the aim of ensuring th e consumers’ safety. The periodicity of those 
assessments varies depending on the product. 
 
10. Legal framework for production and investment (WT/TPR/S/212, p. 70, para. 238) WT/TPR/M/212/Add.1 
Page 76  
 
  The Secretariat’s report notes that the World Bank has classified Brazil 122
nd of 178 
countries with respect to ease of doing business.  Can Brazil outline what steps it has taken, other 
than in the taxation area (already covered by questi on 1), to improve the ease of doing business in 
Brazil, and to thereby encourage more open trade? 
 
ANSWER:   First, Brazil affirms that the “Doing Busi ness - Project 2008- Brazil” released by the 
World Bank is inaccurate, as other studies  published by the Bank. The Ministry of 
Development, Industry and Trade (MDIC) has been  in contact with the World Bank to request 
the study be rectified.  
  Among other inaccurate data, we mention th at the number of procedures is 14, not 18. 
Also the timeframe stipulated of 152 days is a repetition of the number which appeared in the 
Doing Business reports of 2005, 2006 and 2007.   
 
 In order to facilitate trade, Brazil adopte d the following measures: agreements between 
Receita Federal and commercial registry to sp eed up registration of new enterprises; 
interconnection of the information system of MDIC and the system of commercial registry 
(juntas); simplification of register norms; incr ease of working hours in commercial juntas; 
investments in technology. 
 
The MDIC is co-ordinating with the World Bank the elaboration of mutual acceptable 
methods of research and inquiries.  
11. Land ownership (WT/TPR/S/212, p. 17, para 26) 
 
 The Secretariat’s report notes that the purcha se of property by foreigners in border areas 
requires authorization.  Can Brazil please outline the criteria used in making decisions about these 
land purchases?  What criteria apply for land purchases not in border areas?   The report further states that only 50 units of  undefined exploration units of rural property 
can be acquired by foreigners.  Can Brazil please further explain these terms and to which types of 
purchases do they apply to? 
  We understand that there are some calls for g reater restrictions on the sale of land for 
foreigners.  Can Brazil please outline what those pr oposed restrictions are?  What is the Brazilian 
Government’s policy position on those changes? 
 
ANSWER:   In border areas, the restrictions are related to national security concerns. Regardins the 
purchase of land in other parts of Brazil, law 5709/71 determines that foreigners resident in Brazil can not own land that exceed 50 rural units, which dimension depends on ecological and 
economical aspects of each homogeneous zone a nd on the modality of exploration that can be 
applied.   WT/TPR/M/212/Add.1 
 Page 77 
 
 
 UNITED STATES 
WT/TPR/S/212 
II. Trade and investment policy regime (4) Foreign Investment Regime  
Page 18, paragraph 32:
  The Secretariat’s Report notes that G ermany suspended its tax treaty with 
Brazil in 2006, and we understand that this wa s primarily due to concerns about the absence of 
international transfer pricing standards in Braz il.  We understand that transfer pricing draft 
legislation was submitted to Brazil’s Congress some  time ago that would implement international 
standards for transfer pricing. What are the pros pects that this legislation may be approved?  
 
 Similarly, we understand that Receita Fed eral does not have the authority to negotiate 
directly most double tax disputes that arise with tax treaty partners.  Is there any movement toward 
allowing Receita Federal this authority?  If not, why not? 
 
ANSWER:    Transfer pricing legislation responds to the sp ecific situation of an economy with a high 
level of presence of multinational companies, as th e result of decades of sustained FDI flows. On 
February 2007, Bill 4695/01, concerning such legi slation, was withdrawn from the legislative 
process, under the terms of Article 105 of the Intern al Rules of the House of Representatives.  
 
 Receita Federal does not have the authority to negotiate double tax disputes since the Brazilian Legislation does not authorize devolution of taxes collected in a previous fiscal year. 
There is no movement towards granting Receita Federal such authority. In view of the formalistic nature of Brazilian tax laws, any enla rgement of that authority would imply changes 
in the constitutional and legal syst ems, which is not under consideration. 
 
(5) International Relations 
(ii) Preferential agreements (a) MERCOSUR 
 
Page 21, paragraph 40:
  Mercosur’s Common External Tariff (CET) has been in effect since 1 
January, 1995, although a number of sector-specific  exceptions (for capital, informatics and 
telecommunication goods as well as for the aut omotive and sugar sectors) and country-specific 
exceptions are still in effect.  When does Brazil expect the members of Mercosur to implement a 
harmonized CET schedule for all four of its members?  We understand that Brazil has recently 
lowered the applied rates on some tariffs.  We woul d appreciate a list of those tariffs.  Does Brazil 
intend to recommend to its Mercos ur partners any increases in tariff rates in the near future? 
 
ANSWER: 
  All exceptions to the Common External Ta riff are temporary and will be progressively 
eliminated. Exceptions to the CET are valid to Brazil and Argentina until 2010 and to Paraguay 
and Uruguay until 2015. Review of the CET for capital, informatics and telecommunication 
sectors is currently underway and should be concluded by the end of 2010.    Brazil has temporally reduced rates to some goods, in accordance with Mercosur 
regulations. These include reductions to preven t shortages in the domestic market and 
reduction to very specific goods, mainly in the capital,  informatics and telecommunications 
sectors. The respective lists can be consulted in the folowing links:  http://www.desenvolvimento. WT/TPR/M/212/Add.1 
Page 78  
 
 gov.br/arquivos/dwnl_1231933422.xls;  and http: //www.desenvolvimento.gov.br/sitio/interna/ 
interna.php?area=5&menu=1848.   Brazil has recommended, previous to th e G-20 Washingtion commitment, the increase 
in the CET to some dairy products.  Any in crease shold take place within WTO bound rates. 
 
Page 21, paragraph 41
: The Secretariat’s report notes that Mercosur’s automotive policy had not 
fully entered into force as of mid-2008, and that in tra-Mercosur trade in the automotive sector is 
ruled by bilateral agreements, partic ularly with Argentina.  When does Brazil, as a major party to 
Mercosur, expect the Mercosur automotive policy’s entry into force? 
 
ANSWER:   Brazil expects to resume negotiations on the automotive policy shortly, after having 
successfully renegotiated bilateral agreements between with Argentina Uruguay in 2008.  
 
III. Trade policies and practices by measure (1) Overview 
 
Page 26, paragraph 1, WT/TPR/S/212-03:
 During the review period, Brazil reportedly continued to 
take gradual steps to simplify and modernize its cust oms procedures. Yet, the Secretariat immediately 
follows with, “In addition to tariffs, imports are subject to four non-cumulative domestic taxes; the 
application of two was extended to imports  in 2004.”  Please describe the product 
coverage/eligibility, operation, and applic ation of these taxes on imports.   
 
ANSWER: 
 
 The taxes that apply to imports as well as  to domestically produced goods are PIS 
(1,65%), COFINS (7,6%), IPI and ICMS (18%). The coverage of these taxes is different. IPI applies to industrialized goods. PIS e COFINS a pply to all goods. ICMS is a state level tax 
applied to all goods, but there are some exceptions which vary among the states.  
(2) Measures Directly Affecting Imports 
(i) Customs procedures and documentation 
 
Pages 27-28, paragraph 15:
  We understand that Brazil is also developing a new electronic clearance 
system for express, called HARPIA.  What is the status of this system’s development? 
 
ANSWER: 
  The Harpia system has been tested by Campinas Universi ty (Unicamp). The system’s 
developer, SERPRO, is adapting it to this  testing environment. SERPRO asked for an 
additional time (ending in April 2009) to improve the new technology and to adapt it to its 
operating system. SERPRO ex pects that by May 2009 Harpia will be fully tested. 
 
Page 28, paragraph 17-18, WT/TPR/S/212-03:
 The Secretariat report states that “Brazil introduced 
trade facilitation activities that would reduce the “a verage time for custom s clearance in 2007 between 
0.8 and 35.7 days, depending on the level of verification needed”.  Brazil indicated that “trade 
facilitation activities being carried out in 2008 sh ould reduce these times.”  Have these changes 
resulted in actual reduced times for customs clear ance?  What are the clearance times for simplified 
import declarations (DSIs) and express shipment declarations (DRE-Is)?  What further trade 
facilitation activities are being consid ered or have been proposed? 
  WT/TPR/M/212/Add.1 
 Page 79 
 
 
 ANSWER: 
  Resolution nº 16 of March 20th 2008 created the Technical Group of Trade Facilitation 
(TGTF). Since then, the Brazilian Government adopted Trade Facilitation measures, which, 
among other benefits, led to reduced customs clearance times. These measures include:  
a) Conclusion of the draft legislation submitted to Congress to ratify the Istanbul Protocol (Ata 
Carnet);  b) Elimination of licensing requirement s for importing airplanes and airplane parts;  
c) Reduction in the number of products subjected  to inspection for internal transit by ANVISA 
and IBAMA;  d) Comprehensive review of legisl ation and licensing requirements for each non-
tariff control agency with a view to reduce duplication and increase efficiency;  e) improvements 
to SISCOMEX in order to allow agencies to automatically approve less risky operations;  
f) Incorporation of new software to SISCOMEX  to allow the attachment of electronic 
documents to the system; and g) Nationwide evaluation of the available workforce of all 
Brazilian government agencies operating at borders, in order to provide adequate personnel to 
deal with increased trade flows.  Statistics regarding specifically DSIs and DRE-Is clearance 
times are not presently available. 
  With regard to further trade facilitation ac tivities, the TGTF has been working on the 
following actions:  (i) Definition, development of criteria, and introduction of risk management tools for non-tariff control agencies into SISCOM EX; and (ii) Implementation of more efficient 
rules for inspections of wood products and cont ainers consisting of wood, including acceptance 
of a certification issued by exporters or importers that the wood has been treated.  
Page 28, paragraph 19, WT/TPR/S/212-03
: The Secretariat’s Report says: “If fraud is suspected in 
any of the other channels, the ID may undergo speci al control procedures”.  Please describe these 
special control procedures.  
 
ANSWER:   In special control procedures, informatio n requested may go beyond what is required 
for the ID, and may include, for instance: th e correspondence used for the commercial 
transaction, information on the persons involved,  and on the process of price determination of 
the merchandise.  This information may be requ ested by the RFB when the good is directed to 
the “grey channel”.  Additionally, authorities ar e entitled to make use of other investigative 
procedures necessary to prevent abuse . 
 
Page 32, paragraph 43:
 The Secretariat’s report notes that Brazil increased applied tariffs for 
chemical products, footwear, and textiles and clothi ng between 2004-2008. What was the purpose of 
these tariff increases, and why were th ese industrial sectors chosen?  
 
ANSWER: 
  Those applied tariffs are related to particul arly sensitive sectors, as they are mostly 
labour-intensive. Analysis of import flows for th e same sectors reveals an accelerated growth of 
imports for that period, including the lines for wh ich applied tariffs are higher. Tariff levels are 
not restricting trade. The related imports for te xtile and clothing, for instance, increased by 
178% over the period 2004-2008 (from US$ 1,49 billion in 2004 to US$ 1,64 billion em 2005; 
US$ 2,29 billions in 2006; US$ 3,23 billions in 2007; US$ 4,16 billions in 2008). With regard to 
chemicals, there were limited topic increases in tariffs: the modal tariff is only 2% and the 
average applied tariff is around 7%. Another exampl e, the applied tariffs for footwear in Brazil 
are much lower that US’ peak for the same sector (which is 56.9%, according to the WTO 
database).  
 WT/TPR/M/212/Add.1 
Page 80  
 
 Pages 34-35, paragraphs 49-50:
  The Secretariat’s report explains that Brazil applies the Mercosur 
Common External Tariff (CET), with the exclusion of 100 tariff lines constituting its exception list, 
and 376 tariff lines corresponding to information t echnology and telecommunication goods (BIT). The 
report also notes that the deadline for the elim ination of the basic exception list of Brazil was 
extended in 2007 until 31 December 2010. Will Br azil meet the 31 December 2010 deadline for 
converging these tariff line excep tions towards the CET?  
 
ANSWER: 
  Brazil intends to meet the deadline of 31/12/2010 to eliminate its national list of 
exceptions. 
 (vi) Contingency measures 
 
Page 40, paragraph 80:
 When SECEX has concluded that there is no dumping or countervailable 
subsidy, or that dumping or a countervailable subsidy does exist but does not cause or threaten injury 
to the domestic industry, has Brazil refunded any  provisional anti-dumpi ng or countervailing duty, 
cash deposit or bank guarantee, and if so, would this include interest?  
 
ANSWER: 
 
 Law nº 9019/95 in its paragraph 7 of Art. 7 (included in the aforementioned Law by 
force of Law 10,833/03) states that any refund of antidumping duties or countervailing measures shall include the payment of interest to  properly compensate the depositor. There has 
not been to date a positive final determinatio n in a case where a provisional measure has been 
applied. 
 
Page 40, paragraph 83:
  The United States notes that Brazil introduced into its law a provision to 
address the noted “elusive practices” that may undermine the application of anti-dumping or 
countervailing measures.  Has Brazil investigated wh ether any exporters subject to such a measure 
engaged in such practices and if so, please identify those cases and the result of the investigation(s)?  
When does Brazil intend to notify the change in le gislation and/or regulations to the WTO SCM and 
Antidumping Committees? 
 ANSWER:   The aforementioned legislation was enacted in 2008 and is currently pending regulation. 
Since the new provision as established by the aforementioned amendment is not yet being 
enforced due to the lack of specific regulation, the amendment has not yet been notified to the 
WTO and no investigations on elusive practices have been undertaken 
 
Page 42, Table III.3: 
 In footnote “f” to the table, the Secretariat states that: “In addition to the 
renewal of the AD duties, theses [sic] two sunset reviews also resulted in the establishment of price 
undertakings with some of the companies.”  We woul d ask that Brazil please clarify the circumstances 
under which (a) a price undertaking could be establis hed after the conclusion of a sunset review, and 
(b) such a price undertaking would not cover all companies.   
 
ANSWER: 
 
 As regards item (a), there seems indeed to be an error in the Report by the Secretariat 
since the two price undertakings mentioned in f ootnote “f” have not resulted from the sunset 
reviews, but actually were concluded during the tw o original investigations. Concerning (b), it 
should be noted that as set forth in the ADA and in the Brazilian law, (i) price undertakings can  WT/TPR/M/212/Add.1 
 Page 81 
 
 
 be sought or accepted by the Brazilian Government  as a means to eliminate the injurious effect 
of the dumping; and (ii) exporters are not obliged  to offer the price undertaking, neither can 
they be forced to accept an offer by SECEX. Consequently, price undertakings only apply to 
those individual exporters who have actually concluded price undertakings with the Brazilian government. 
 
(vii) Prohibitions, restrictions, and licensing 
 
Page 44, paragraphs 105, 110-112:
 The Secretariat’s report notes that Brazil requires both automatic 
and non-automatic licenses, with the latter affectin g 35.8% of all tariff lines.  What criteria does 
Brazil use to consider whether these requirements ar e the most appropriate and least trade restrictive 
for achieving its objectives?   ANSWER:  
 When a governmental agency suggests the introduction of a new licensing requirement, 
the proposition is taken to the Foreign Trad e Chamber (CAMEX), the body responsible for 
coordinating Brazilian foreign trade polic y, where the new licensing requirement and 
alternative solutions are discussed against the ba ckdrop of administrative law and fundamental 
principles of reasonability, proportionality, pub lic interest and efficiency. Only when the 
measure is considered technically necessary, legally-based, and in the absence of a better 
alternative, is the introduction of a new license requirement authorized.  
 Is Brazil planning to impose new import licen sing requirements on a broader list of goods? 
 ANSWER: 
 
 Brazil does not intend to impose new licensing  requirements on a broader list of goods. 
 
 Please provide more comprehensi ve information on the entire range of Ministerial import 
permits (i.e., those permits required by Ministries  other than Brazil’s Trade Ministry) that are not 
notified or listed in Brazil’s submissions to th e Import Licensing Procedures Committee.  U.S. 
businesses encounter difficulties when they try to expor t products subject to these requirements on an 
ongoing basis. The United States has no information on the scope, justification, or operation of these 
measures until they suddenly become active and we are required to make extensive inquiries.   
 
ANSWER : 
  The website of the Ministry of Development, Industry and Commerce (MDIC - www.desenvolvimento.gov.br) contains a list of age ncies involved in import control, as well as 
the goods under control, the legal basis for the cont rols and information on how to contact each 
agency. Detailed information on an agency’s requirements for a specific imported good can be obtained through direct contact with the agency. With respect to MDIC’s own requirements, 
the list of documents requested for the granting of importing licenses is contained in Directive 
SECEX 25/2008 (available at MDIC’s website).  Page 46, paragraph 110:
  The United States continues to be concerned about Brazil’s use of import 
licensing procedures to restrict imports of lithiu m carbonate, a product that is commercially traded 
around the world and important for manufacturing a number of ordinary commercial products.  The 
United States has submitted and resubmitted questi ons for Brazil on this matter in the WTO 
Committee on Import Licensing Procedures. When, ex actly, will Brazil submit its written response to 
these questions? 
 WT/TPR/M/212/Add.1 
Page 82  
 
 ANSWER: 
  During the last meeting of the Committee on Import Licensing, held on 20 October 2008, Brazil provided answers to the United St ates regarding the Brazilian import licensing 
system for lithium carbonate. Brazil’s answer s can be found in document G/LIC/M/28, which 
contains the minutes of the meeting.  
Page 47, paragraph 114:
  The United States has been advised that the approval of import license 
applications for certain sectors is in practi ce taking longer than 60 days.  In cases where an 
application for an import license has been pending for more than 60 days, what is the process for 
requesting the status of such applications? 
 ANSWER:   According to article 18 of Directive SECEX nº  25/2008, non-automatic licenses must be 
processed within 60 days. However, when the importer is asked to comply with certain 
requirements, this term may be suspended until the importer complies with them. The importer may obtain information about the status of its application by means of the Integrated System of Foreign Trade (SISCOMEX). If necessary, the importer may also consult the agency responsible for the license. Contact information of all Brazilian agencies involved in import 
control is available on the website of the Ministry of Development, Industry and Commerce 
(MDIC – www.desenvolvimento.gov.br). 
 (ix) Sanitary and phytosanitary measures 
 
Page 53, paragraph 156, WT/TPR/S/212-03:
 The Secretariat’s report states “In addition, the 
Brazilian sanitary and phytosanitary measures are strongly based on standards and guidelines 
produced by Codex Alimentarius, OIE and IPPC.”  With regard to conformity with international 
practices and guidelines on SPS measures, please de scribe Brazil’s achievements since its 2004 TPR, 
and any additional actions it will take to enhance harmonization with international practices and 
guidelines with regard to BSE guidelines established by the World Organization for Animal Health (OIE). 
 
ANSWER: 
  Brazil has adopted many measures towards harmonization. Within the Ministry of 
Agriculture, Livestock and Food Supply (MAPA), the main measures have been: 1 - 
employment of a greater number of professionals and training in sanitary and phytosanitary 
activities; 2 – increased Brazilian participatio n in International Standards Setting Bodies 
(ISSBs); 3 – creation of specific and specialized administrative offices in 2005 in order to deal with issues related to the SPS Committee and to  ISSBs. These offices are responsible for the 
analysis of MAPA legislation in regards to harm onization with ISSB sanitary and phytosanitary 
guidelines. Concerning BSE, Brazil has recently revi sed its legislation in order to take into 
consideration OIE guidelines as well as the MERCOSUL regulatory framework.  
Page 55, paragraph 169:
  Please explain what type and how  information received from third 
countries is used in the risk as sessment process. Please provide information on the minimum and 
maximum periods required to conduct a risk assess ment.  Where is this information published?  
 
ANSWER:   Brazil takes into account the results from ri sk analysis and other technical and scientific 
studies sent by third countries, but those are not the only issues considered in a risk analysis. All  WT/TPR/M/212/Add.1 
 Page 83 
 
 
 information must analyzed in light of its degree of uncertainty, as recommended by the SPS 
reference organizations. However, informatio n provided by other countries are valuable and 
are taken into account.    As for the period needed to finish a risk analysis, Brazil, as many other countries, does 
not have a law defining a specific time (minimal or maximum) to conclude a risk assessment. It 
would be willing to discuss this issue at the SPS Committee. The time limit will depend on the complexities involved in each case, as well as the specifics of the product, its plagues and associated illnesses.  
 If it is a product from plant origin, the ri sk assessment will be carried out according to 
IPPC standards. If it is a product from animal  origin, the risk assessment will be carried out 
according to OIE and Codex Alimentarius guidelin es. It is important to highlight that neither 
IPPC, nor OIE, nor Codex Alimentarius fix mi nimum or maximum periods to conduct a risk 
assessment. 
 
 In some cases, there is no a ccess to scientific information about a specific pest or disease 
occurring in the territory of an exporter count ry. In these cases, Brazil requests information but 
does not always receive timely replies from the countries involved.  
 
Page 55, paragraph 171:
  According to the Secretariat, “All imports of products subject to SPS 
requirements must obtain a non-automatic licence… in most cases before departure from the country 
of origin… Where the good is already at the bord er, ANVISA takes no longer than 72 hours to issue 
the licence.”  How long does it take to issue a non-aut omatic license if the application is made before 
a good is at the border? 
 
ANSWER:   There are no specified time limits for this procedure. 
 
Page 55, paragraph 172, WT/TPR/S/212-03:
 The Secretariat’s report states “Brazil accepts 
phytosanitary and zoosanitary certificates issued by o fficial sanitary services in countries that follow 
the guidelines of Codex, IPPC, OIE, and other in ternational scientific organizations.”  How/by what 
method, does Brazil determine that an exporting c ountry is following the guidelines of Codex, IPPC 
and OIE?  In addition, please explain why Braz il requires a consular stamp on foreign certificates 
from some countries and not from others. 
 
ANSWER:   Brazil compares the measure established by other members with the standards, guidelines and recommendations issued by intern ational organizations and takes into account 
SPS principles. The consular stamp is required fo r all countries and not only for some countries. 
The consular stamp is established by laws that are under revision.  
 
Page 56, paragraph 178:
  The Secretariat states: “Brazil prohib its imports, exports, and the domestic 
commercialization of meat and other products from bovines fed with hormones.  Trade and 
commercialization of substances, natural or artificial,  with anabolic characteristics are also banned, 
unless intended for therapeutic and research use. [note 139]  The use of hormones in poultry 
production, as well as imports of poultry fed with hormones, is prohibited. [note 140]” What is the 
scientific basis for the prohibition?  What standards  are used?  Which hormones are covered by this 
ban?  How long has the prohibition been in place? 
 
 WT/TPR/M/212/Add.1 
Page 84  
 
 ANSWER:  
  MAPA Normative Instruction 17 was adopted so that the Brazilian practice would be in 
line with local SPS measures  in major export  markets. Further details can be found at 
http://extranet.agricultura.gov.br/sislegis-consult a/consultarLegislacao.do?operacao= visualizar 
&id=7878.  
(3) Measures Directly Affecting Exports 
 
General Questions:
  How are the export performance and/or  local content requirements that are 
included in many of Braz il’s programs consistent w ith Brazil’s obligations u nder Article 3 of the SCM 
Agreement? 
 
ANSWER: 
 
 The programs mentioned in the Secretariat Report (Paragraphs 209-220 on pages 63-65) 
do not provide any kind of subsidy, as their fina ncial costs are fully covered, at interest rates 
compatible with those of the international market .  They are, therefore, fully compliant with the 
provisions set forth in the WTO Agreement on Subsidies and Countervailing Measures. 
 
(ii) Export taxes 
 
Page 58, paragraph 187, WT/TPR/S/212-03:   The Secretariat states: “In the context of this review, 
the authorities emphasized that export taxes are applied in  very specific cases, and that Brazil intends 
to remain a reliable supplier of commodities.”  Ho w does Brazil identify the products that will be 
subject to export taxes, and what criteria are used to decide the amount of export taxes levied on these 
products? 
 ANSWER:   Export taxes are applied in very few and specific cases, subject to long and intensive 
consultations and technical meetings, before a d ecision is taken by CAMEX Ministerial Council. 
In these technical meetings, several governmental bodies take part, and there are also sectoral 
discussions in which private sector representativ es may assist. Some possible criteria to select 
products and define tax levels are, among others: existence of tariff escalation abroad; general 
use of export tax for a determined product; and product chain analysis.  
(4) Measures Affecting Production and Trade 
(iv) Incentives and other government assistance 
 
Page 82, paragraph 294, WT/TPR/S/212:
 The share of production in the free zones going to the 
domestic market is increasing while the share exporte d is falling; why?  Does Brazil expect this to 
continue?  
 
ANSWER: 
  To a great extent, the evolution of tho se figures is related to the macroeconomic 
environment. The exchange rate appreciated  around 39% from end-2003 to end-2007. At the 
same time, there was a strong economic growth  of the GDP during that period, which was 
boosted by domestic consumption. With regard to the outlook, the present uncertainties surrounding the world economy makes it difficu lt to carry out forecasting exercises.   
 
  WT/TPR/M/212/Add.1 
 Page 85 
 
 
 (v) Government procurement 
 
Page 85, paragraph 306:   While paragraph 306 sets out several benefits of joining the WTO 
Agreement on Government Procurement (GPA), paragr aph 309 indicates that it is not a current 
priority for Brazil.  Has Brazil considered  becoming an observer to the WTO Committee on 
Government Procurement in order to deepen its  understanding of the GPA and benefits of accession?  
 
ANSWER: 
  Brazil is not considering becoming an  observer of the Committee on Government 
Procurement.  
 Page 86, paragraphs 310 and 311:
  In paragraph 311, the Secretariat states that “All federal, state, 
and municipal agencies and foundations , as well as all public companies,  including those with private 
participation, are subject to the Tendering Law. ”  However, paragraph 310 indicates that “entities 
directly and indirectly administered by the Federa l Government” are only subject to “general norms 
regarding tenders and administrative contracts (for goods and services)”.  Please explain the extent 
of the apparent inconsistencies in the two paragraphs, and describe the ex tent to which federal, state, 
and municipal entities and public companies are subject to the Federal procurem ent laws, regulations 
and other measures. 
 
ANSWER:   Article 1 of Law 8.666 disposes that every branch of the federal, state and municipal levels are subject to the general rules therein established. Public enterprises and foundations, 
independent agencies and other entities directly or indirectly controlled by the Union, the States 
or the Municipalities must comply with the dispositions of Law 8.666.  
 Page 86, paragraph 314:
 In paragraph 314, the Secretariat states that “[a]ny preference for 
domestic suppliers or firms was revoked by Constit utional Amendment No. 06/95, which establishes 
that no discrimination between companies incorporated under Brazilian law is allowed on the basis of the degree of foreign participation in their cap ital, except in the information technology sector.”  
From this statement, is it correct to understand t hat discrimination is allowed and exists with respect 
to companies that are not incorporated under Brazilian law? 
 
ANSWER: 
 
 A company must be incorporated under the Brazilian Law or legally represented to take 
part in tenders in order to allow the Government to hold it responsible in the case of fraud or 
any other infraction to the Brazilian legislation. 
 
Page 86, paragraph 315:
  Other than the preferences descri bed in Paragraph 315, does the 
Government of Brazil or any of its procuring en tities seek, take account of, impose or enforce any 
offsets (i.e., requirements of domestic content, li censing of technology, investment, counter-trade or 
similar actions or requirements) in any government  procurements?  If so, please describe them.  
 ANSWER:  
 The Ministry of Defense has adopted an “Offset Program” regardi ng its procurement 
policies. This program is governed by the “Porta ria Normativa nº 764/MD”, adopted in Dec, 27, 
2002. The program, applicable to contracts in exce ss of 5 million dollars, allows various types of 
offsets.  
 WT/TPR/M/212/Add.1 
Page 86  
 
 Pages 86-87, paragraph 316: 
 In paragraph 316, the Secretariat states that: “Suppliers must be 
legally established or represented in Brazil to qualify  for government contracts; foreign firms without 
operations in Brazil and involved in international  tenders need legal representation in the country or 
to be associated with a Brazilian firm (at leas t 51% Brazilian capital participation and operational 
control by Brazilian nationals).  Procurement funded by international financial institutions is open to 
international bidding and subject to the rules of the financing institution.”  What is an “international 
tender”?  Are there any international tenders in which a foreign supplier may participate without 
legal representation in Brazil or without an a ssociation with a Brazilian firm?  How many 
international tenders have been c onducted during the past three years? 
 
ANSWER: 
  International tenders are mentioned in ar ticle 42 of Law 8.666, which allows the 
participation of foreign suppliers which comply with  the dispositions of Art. 32. Paragraph 4 of 
Art. 32 establishes that foreign companies must have legal representation in Brazil in order to 
take part in tenders, except in some cases, whic h are listed on paragraph 6 of the same Article. 
Statistics concerning tenders may be obtained  from data registered in the Financial 
Administration Integrated System. 
 
Page 88, paragraph 326:
  In paragraph 326, the Secretariat states that:  “Companies with non-
controlling state participation do not have to foll ow general procurement rules.”  What are the 
criteria that are applied to determine whether “sta te participation” in public enterprises or public 
companies is “controlling”?  ANSWER:  
 The definition of controlling share hold er can be found in article 116 of the Law 
6404/76, which states that it is a company is under the control of anyone who has the permanent majority of the votes in the general assembly, and who is capable of electing the majority of the 
board and effectively use its power to direct the social activities and to guide the works of the 
social bodies.  
(vi) Intellectual property rights 
Patent 
 
Page 90, paragraph 336:
 The Secretariat’s Report notes that the number of patents granted is down 
from 4,725 in 2003 to only 1,855 (presumably in  2007).  How many patent applications were 
examined in 2003 versus 2007?  Is the rate of patent  grants similar in all technology areas?   
 ANSWER:   Since 2004, the number of patent examiners has increased almost fourfold. The need for 
providing adequate training to the new examiners explains the fall in productivity as reflected 
in the number of patents granted. For 2009, INPI expects already a gradual increase in the 
number of final decisions.    Between 2003 and 2007, the number of patents granted did not vary significantly from one technology area to the other, taking into a ccount the degrees of difficulty in the examination 
process are not uniform in the different areas. 
  Number of requested patents examined, including Innovative Patents and Utility Models, in: 2007=> 8.642. 2003 figure in moment not available. 
  WT/TPR/M/212/Add.1 
 Page 87 
 
 
 Page 92, paragraph 337:   The Secretariat Report notes that the average pendency time for a patent 
application is seven years.  Is the pendency pe riod similar for applications in all areas of 
technology?  What steps are being taken to redu ce this pendency time to a reasonable period?   
 
ANSWER: 
 
 INPI is undergoing a process of restructuring.  The main goal is the reduction of average 
pendency for patent applications to 4 years by 2014. In 2009, we expect average pendency will 
start to decrease.  
Outline of the restructuring program of INPI 
 (I) Increase in the examination ca pacity and examination quality  
(a) Number of examiners (2008/2004): 443/112  (b) Education and training of examiners:  
 
-Requirement of Master Degree  -Full EPO trainning program (24 months)  -Supplementary training in more complex fields  (II) Process streamlining  
 
a) EPOQUE and full PCT-required documentation available on-line for examiners b) Complete and detailed examination guidelines (under preparation) c) Quality control and independent administra tive revision  (in place as from january 
2009) 
 
(III) Backlog reduction   - Applications filed till dec 2004 – first examination till oct 2011 - Applications filed as fr om 2010 – 4 years from filing 
 
Page 93, paragraph 343, WTTPRS212-03
:  Law 10,196 of 16 February 2001 amended Law No. 9,279 
of 1996 regarding procedures for the patentability of pharmaceutical products.  According to the 
amendment, the grant of patents for pharmaceutic al products or processes must receive the Brazilian 
Sanitary Surveillance Agency’s (ANVISA) prior approv al. Please explain how the requirement of Law 
10,196 for prior approval from ANVISA is consiste nt with the requirement that patents shall be 
available for any invention in all fields of tec hnology and enjoyed without discrimination as to the 
field of technology.  (See TRIPS Article 27(1))   ANSWER:   Law 10,196/01 introduced the rule of  “prior consent”, whereby patents for 
pharmaceutical products and processes may be gr anted only after ANVISA’s prior examination 
and approval.  Approval is granted or denied after due evaluation of  the application, taking into 
account the three patentability requirements provided for in the TRIPS Agreement. 
  The granting of pharmaceutical patents with the participation of the ANVISA is part of 
a complex administrative act of the Executive br anch, which relies on the combined expertises 
of ANVISA and INPI. One should bear in mind that pharma products were not patentable in 
Brazil before the Industrial Property Act of 1996 (Law 9,279/96).   WT/TPR/M/212/Add.1 
Page 88  
 
  ANVISA relies on a specialized and experi enced technical staff to carry out its 
examination. The examination is carried out in full compliance with the Industrial Property 
Act, and the Agreement on trade-related aspects of intellectual property rights (TRIPS). Thus, ANVISA’s examination focuses on the three patent ability criteria, provided for in the TRIPS 
Agreement as well as in the Brazilian legislation,  which are, as already pointed out: novelty, 
inventive step and industrial application. 
  Needless to say, the TRIPS Agreement, in Ar ticle 1.1, provides that “Members shall be 
free to determine the appropriate method of implementing the provisions of this Agreement within their own legal system and practice”. 
 
Trademark 
 Page 93, paragraph 344, WT/TPR/S/212:
 According to this paragraph, Brazil, through its National 
Institute of Industrial Property (INPI), has provided  protection to "some geographical indications."   
 
 Under the process for granting protection for geographical indications, are prior established 
trademarks a ground for refusing geographical i ndication protection during the examination, 
opposition and/or cancellation stages if a later in tim e geographical indication is determined to be 
confusingly similar to the prior trademark?  If  not, how does Brazil preserve the exclusive rights of 
trademark owners to prevent unauthorized confusing uses?  (See TRIPS Article 16.1)  What are 
additional grounds for refusing prot ection of geographical indications?  Does Brazil allow for the 
direct application, without government intervention,  of geographical indi cations by any party? 
 
ANSWER:   The answer is yes if the trademark and the GI are claimed for products belonging to the 
same category.  
 
 Although the Brazilian IP Law does not specifically prohibit the grant of a GI which is similar to a prior trademark and vice versa, ri ght holders may challenge the grant of a GI 
during the examination, opposition and/or cancellation stages. Right-holders may also challenge the grant in court on unfair competition grounds.   
 GIs may be refused if conditions provided for in Articles 177 through 182 of the 
Brazilian IP Law (Law nº 9279/95) are not fulfilled.    GIs may also be refused if conditions provided for in Articles 177 through 182 of the Brazilian IP Law (Law nº 9279/95) are not fulfilled.  
 
 Article 177. Indication of source shall mean the geographic name of a country, city, region or locality in its territory, which has beco me known as a center of extraction, production 
or manufacture of a given product or  of provision of a given service. 
 
 Article 178. Denomination of origin shall be the geographical name of a country, city, 
region or locality in its territory, that desi gnates a product or service whose qualities or 
characteristics are due exclusively or essentially  to the geographical environment, including 
natural and human factors.   Article 179. The protection shall be ex tended to the graphical or figurative 
representation of a geographical indication, as  well as the geographical representation of a 
country, city, region or locality in its territo ry whose name is a geographical indication. 
  WT/TPR/M/212/Add.1 
 Page 89 
 
 
  Article 180. Once a geographical name has fallen into the common use as designating a 
product or service, it shall not be cons idered to be a geographical indication. 
  Article 181. A geographical name that does no t constitute an indication of source or 
denomination of origin may serve as a characte ristic element of a product or service mark, 
provided that it is not inducing to a false source. 
  Article 182. The use of the geographical indication is restricted to those producers and service providers who are established in that loca lity, and it is also demanded, concerning 
denominations of origin, that the quality requirements be satisfied. 
 
 Brazil does allow for the direct application, without government intervention, of geographical indications by any party. 
 
Copyright 
 
Page 91, Table III.13 (“Overview of IPR Prot ection, 2008), under the heading “Copyright and 
related rights” and the column “Exclusions and limitations ,”  The Secretariat’s report states that 
“[n]o authorization [is] required where the name of  the author is cited in the reproduction of current 
affairs, or the copier uses for educational purposes w ithout intent for financial gain.”  Please explain 
how the exceptions and limitations in Brazil’s Law on Copyright and Neighboring Rights cited above 
comport with the three-step test as found in Article  13 of TRIPS, as well as with Articles 10(1) and 
10(2) of the Berne Convention.  ANSWER:  
 Brazil’s Act on Copyright and Neighboring Rights (Law 9,610/1998) is fully compliant 
with the TRIPS Agreement and with the Berne Convention.   The Secretariat’s report presents an extract of Article 46 of the Copyright Act, which lays down a restricted set of limitations on co pyrights. Such limitations are based on Article 10 
of the Berne Convention, particularly items 2 and 3, and on Article 11. 
 
Chapter IV - Limitations on Copyright  46. The following shall not constitute violation of copyright:  
I. the reproduction 
(a) in the daily or periodical press of news or informative articles, from newspapers or 
magazines, with a mention of the name of the auth or, if they are signed, and of the publication 
from which they have been taken; (…)  
IV. notes taken in the course of lessons given in teaching establishments by the persons for 
whom they are intended, provided that their co mplete or partial publication is prohibited 
without the express prior authorization of the person who gave the lessons. 
 
Enforcement 
 
Page 92, paragraph 339
:  According to the Secretariat ‘s Repor t, "Whenever a good's characteristics 
are altered in such a way as to jeopardize or to make impossible its identification, it can be seized ex 
officio by customs authorities, both in case of importa tion or exportation."  Please clarify the intent of 
this provision.  WT/TPR/M/212/Add.1 
Page 90  
 
 ANSWER: 
  Brazil will consult the Secretariat for identi fying the source of the excerpt transcribed in 
paragraph 339 of the Secretariat’s report. 
 
Page 94, paragraph 347: 
 The Secretariat’s Report states that pa tent law violations may constitute 
civil and criminal offences; penalties of imprisonment ge nerally vary from three months to a year, but 
may be increased according to the infringement and the infringer.  What is the range of penalties for 
trademark violations?  (See TRIPS Article 61). 
 
ANSWER:   Trademark violation penalties vary from thr ee months to a year of imprisonment, but 
may be increased according to the infringement and the infringer. Trademark violations have 
the same range of penalties as established to patent violations. 
 
Pages 94-95, paragraph 349: 
  The Secretariat’s Report provides several statistics related to Brazil's 
seizure activities in the context of its copyright en forcement regime.  Please provide information with 
respect to forfeiture actions and/or destruction of  seized merchandise as well as information and 
statistics related to criminal trademark infr ingement actions.  (See TRIPS Article 61). 
 
V. Trade policies by sector (2) Agriculture and Forestry (i) General features, policy objectives, and administration  ANSWER: 
 
 (*) Please check table at the end of th e document, which contains statiscs and 
information on seizures made by the Federal Revenue of Brazil in 2007 and 2008. 
 
Page 97, paragraph 5: 
 The paragraph states:  “The agric ultural sector expanded by 16.7% in 
volume terms during 2004-07.  Br azil is one of the few WTO Members for which the applied average 
tariff on agricultural products is lower than that on other goods.  However, a relatively large number 
of programmes are in place to assist agricultural pr oduction, with many aimed at providing low cost 
credit especially to small farmers.  Although possible by norm, the authorities have noted that, in practice credit preferences are not greater for Brazilian-owned than for foreign-owned companies.  
However, in some cases, credit pr eferences can be contingent on the use of domestic inputs.  
Guaranteed prices to a number of products are also u sed to support agriculture.   A law introduced in 
2004 regulates biodiesel production and imports a nd makes farmers who invest in biodiesel crops 
eligible for reduced tax rates and preferential credit.”  Please provid e the details of the following 
policy:  “in some cases, credit preferences can be  contingent on the use of domestic inputs.” 
 ANSWER: 
 
 The policy refers to the features of FINAME Agriculture credit lines, managed by BNDES, which are fully described in Secretariat’s TPR report. 
 
(iii) Domestic support measures 
 
Page 98, paragraph 12:
  The paragraph states:  “Brazil is lagging behind in certain of its 
notifications to the WTO with respect to agricultu re (November 2008).  The last notification with 
respect to (not granting) export subsidies was made  in 2003 for the 1999-2001 period.[note 4]   The 
last WTO notification made by Brazil with respect  to domestic support measures was dated 2007 and  WT/TPR/M/212/Add.1 
 Page 91 
 
 
 covered the 2003-04 period. [note 5]”  Please specify when the Government of Brazil will update its 
WTO notifications on export subsidies and domestic supports.  ANSWER:  
 Brazil has already circulated its pending no tifications on Export Subsidies and Market 
Access for the years 2002 to 2007. The Secretaria t is finalizing their formating in order to 
distribute to Members.    The Brazilian Government is finalizing the compilation of information regarding 
notifications on domestic support for the years 2005, 2006 and 2007.  Brazil intends to circulate 
them by the end of the first semester of 2009.  (5) Manufacturing Steel – See attachment 
(6) Services 
(vi) Professional services 
 
Page 141, Paragraph 232:
  The Secretariat’s report notes that, “In architecture and engineering, 
commercial presence depends on foreign service suppli ers joining Brazilian service suppliers, who 
should take the burden of civil liability.”  On the use of the word “shoul d,” are there cases when the 
foreign partner would take the burde n?  Are foreign partners restrict ed to minority ownership of the 
joint venture?  This joint venture requirement is presented as a consumer protection measure.  Why is 
it suggested that the civil liability obligation on a foreign supplier is less secure than that for a 
domestic supplier?    ANSWER:   In the case of architects and engineers fore ign service suppliers must join Brazilian 
service suppliers in the form of a “consórcio”, in which the Brazilian partner maintains the leadership, i.e. majority ownership. A “consórcio” is used mainly with major contracts for rendering of services. It is a contract of two or more enterprises for a joint accomplishment of one 
specific undertaking.  The enforcement of law and regulations is easier applied to Brazilian 
residents. 
 
Page 142, Paragraph 238 and Page 143, Paragraph 245:
  The Secretariat’s report notes in 
paragraph 238, that the Brazilian Bar Association,  a non-governmental institution, regulates the legal 
profession at the federal level.   Similarly, paragraph 245 of the Secretariat’s report states that the 
Federal Council of Engineering, Architecture and Agronomy (CONFEA) regulates and oversees the 
exercise of these professions.  What is meant by “regulates” in these instances, as elsewhere it is 
stated that the Union has the “ex clusive power to legislate on the practice of professions”?  Who has 
the authority for establishing licensing requirements?   ANSWER:   In Brazil, Professional Councils (Federal and Regional) have the authority for establishing professional registration. They are responsible for overseeing and regulating 
professional exercise.  Those councils have powers de legated by the Union in the light of Article 
XXIV of the Federal Constitution.  WT/TPR/M/212/Add.1 
Page 92  
 
 QUESTIONS PERTAINING  TO WT/TPR/G/212 
 
Page 12, paragraph 39, WT/TPR/G/212:
  What accounts for the rapid gr owth in exports supported by 
the Export Credit Insurance between 2004 and 2008?  Is it the extension to small and medium 
businesses in 2008, increased use by firms unable to  get other trade financing in the current 
downturn, or another factor?  
ANSWER: 
  Among the main factors that have contributed for the rapid growth in exports 
supported by the Export Credit Insuran ce (ECI) between 2004 and 2008 it should be 
highlighted that there has been a consistent in crease throughout the period in the number of 
exporters insured. Another important factor ha s been the entry into the Brazilian market 
during the period of five specialized institutions authorized to operate ECI: SBCE-Coface (Brazil and France), CESCE (formerly SECREB; Spain), Mapfre (Spain), Crédito y Caución  
(Spain and Holland) and Euler Hermes (Germany).  Although it is still too early to say, the 
current downturn does not seem to have had a sign ificant impact in terms of export credit 
insurance demand. 
 
Page 18, paragraph 70, WT/TPR/G/212
:  It should be noted that since 30 June, 2001 Mercosur 
member countries are not individually allowed to si gn trade preference agreements with third parties, 
according to a Common Market Council Decision.  The remaining agreements previously concluded 
by each Mercosur member country are being repla ced by agreements that involve Mercosur as a 
whole.  Please describe how these agreements are converted, including product scope and level of tariff reductions. 
 
ANSWER:   MERCOSUR has negotiated agreements as a block with Peru (ACE-58 MERCOSUR-Peru), Colombia, Ecuador and Venezuel a (ACE-59 MERCOSUR-Colombia/Ecuador/ 
Venezuela) and Cuba (ACE-62 MERCOSUR-Cuba).   All of them replace previous bilateral 
agreements between MERCOSUR and counterpart(s). With Mexico, MERCOSUR has 
negotiated a framework agreement MERCOSUR-MEXICO. The agreements negotiated or to 
be negotiated between MERCOSUR member states and Mexico are a part of this framework 
agreement. A free trade agreement between MERCOS UR and Mexico remains to be negotiated. 
  All preferences agreeded between state parties of Mercosur and third parties can be 
consulted at www.aladi.org. 
 Page18, paragraph 75, WT/TPR/G/212:
  The Mercosur-India agreement was signed in 2004 (the 
Annexes were signed in 2005.  The trade ag reement covers 450 tariff lines (India) and 452 lines 
(Mercosur)), with tariff reductions between 10-100%  on the MFN tariff.  As of November 2008, three 
Mercosur countries had ratified the PTA.  What percen tage of bi-lateral agricultural trade between 
Brazil and India is covered under the Mercosur-India ag reement?  Of the trade lines covered, what is 
the average tariff reduction on agricultural products? 
 
ANSWER: 
 
 The agreement covers about 7,5% of the Brazilian imports of agricultural products 
from India; it covers about 4% of the Indian im ports of agricultural products from Brazil. The 
average tariff reduction on agr icultural products is 11%."  WT/TPR/M/212/Add.1 
 Page 93 
 
 
 Questions from Canada, Mexico and the United States 
Regarding (WT/TPR/S/212) - Steel 
 
 Brazilian authorities will be aware that the North American governments have stated an 
expectation that steel-producing countries not undert ake actions that direct or otherwise influence 
steel exports as a response to the current economic  crisis. In this context, Canada, Mexico and the 
United States are concerned with certain steel-rel ated measures and initiatives recently announced by 
a number of countries, including the raising of  tariffs, the imposition of restrictive and non-
transparent import and export licensing procedures and the institution of policies to promote exports. 
While the current economic downturn may provide an  impetus for governments to consider measures 
and initiatives with the intent of supporting domes tic industries, there are concerns that such 
measures may effectively impede steel trade. The governments of North America are also concerned 
that such actions will only serve to exacerbate difficulti es in global steel markets in general. As has 
been frequently noted, most recently at the OECD Steel Committee meeting on December 15-16, 
2008, the current economic crisis requires all governmen ts to consider carefully how their actions 
may impact steelmakers in global steel markets, par ticularly at a time when excess steel capacity 
remains a major problem in the steel sector and when the market is particularly sensitive to 
distortions and possible disruption.   It is in this context then that Canada, Mexico and the United States ask Brazil to provide 
information on actions it is taking to support the Br azil steel industry or to influence steel imports and 
exports in response to the econom ic crisis. We understand, for example, that in January 2009 Brazil 
expanded the list of products subject to import licen sing requirements to include coking coal and all 
steel products currently classified under HTS Chapter 73 but then suspended the requirement. More 
recently, there was an announcement by Brazilian Mini ster Miguel Jorge on February 9 that Brazil is 
monitoring prices of steel imports, primarily fr om Asia, to ensure they are consistent with 
Ainternational reference prices @ with a possible view to taking anti-dumping duty actions against 
these imports. Canada, Mexico, and the United States ask Brazil to comment on these recent 
developments and to explain the rationale and operati on of the latter system. We also ask Brazil to 
report on any other actions that may be relevant to trade in the steel sector.  
 
ANSWER: 
  There are no measures concerning the Brazilian steel sector being adopted or planned, 
other than monitoring prices of steel imports. Th e eventual adoption of anti-dumping measures 
in Brazil would in any case be exclusively based  on clear evidence of dumping and consequent 
injury to the domestic industry.   Brazil shares Canada’s, Mexico’s and the United States’ concerns that the adoption of 
measures to support the domestic steel industry may hinder steel trade. In that sense, Brazilian 
authorities are also closely following the implem entation of the North-American Stimulus Plan, 
as studies are being conducted to evaluate (i ) whether the “Buy American” clause applied to 
steel, iron and manufactured goods is duly consis tent with the WTO disciplines; and (ii) the 
potential impact of those measures on the international steel market. 
 WT/TPR/M/212/Add.1 
Page 94  
 
 TURKEY  
 
Report by the WTO Secr etariat (WT/TPR/S/212) 
 III. Trade Policies and Practices by Measure (2) Measures Affecting Imports, (i) Customs 
Procedures and documentation 
 
 Could Brazil clarify the customs procedu res in cases where a dispute may arise between 
exporter and Brazilian importer when goods arrive to Brazilian customs, but are not cleared by the 
importer?  
 
ANSWER: 
  In such cases, the Brazilian legislation allo ws the return of goods to the country of 
origin, provided that customs clearance import pr ocedures have not been initiated and that the 
good has not arrived in Brazil under false declarat ion of content, or is not related to any 
irregularity subject to forfeiture. 
 
 Specifically, Could Brazil clarify if there is any rule governing the cases where Brazilian 
importer declares that it does not have the financial means to clear the goods from the customs or 
declares that it is bankrupt.  Is it possible under the Brazilian legislation for the exporting countries 
to receive the goods back? If so, how is the procedure?  If this is not possible, which rules are applied 
to such goods?  ANSWER:  
 To receive the authorization to return the goods, the interested part must lodge a 
request and present the original documents re lated to the import, where necessary. Customs 
Administration can impose conditions to approval, such as total or partial verification of the 
goods (Normative Instruction SRF No. 680, of 2006). 
 
III. Trade Policies and Practices by Measure (2) Measures Affecting Imports, (iv) Tariffs, 
para. 43 
 
 Coud Brazil kindly elaborate on the reasons behind  the average increase of 1.1% in textile, 
clothing, footwear, textile and clothing?  
ANSWER: 
  Analysis of trade flows of footwear, and textiles and clothing had revealed an 
accelerated growth of imports. Those are particul arly sensitive sectors, as they are labour-
intensive.  
JAPAN 
 
Government Report (WT/TPR/G/212) I. OVERVIEW (p. 5-6, para 2-7) 
 
Q1. The Brazilian Government advocates the strengthe ning of the free trade system. However, the 
Brazilian Government recently introduced an import li cense system because of the deterioration of 
the trade balance, and subsequen tly canceled it due to negative reactions from the private sector, 
which opposed this system, because it applied also to  the products Brazil needed, such as important 
parts, raw materials and so forth. The private sector would support the introduction of an import  WT/TPR/M/212/Add.1 
 Page 95 
 
 
 license system, if it covers only products which are not necessary for Brazilian industry. Is there any 
possibility that the Government will reintroduce the import license system? 
 ANSWER:  
 Brazil has always complied with the WTO Licensing Agreement. There are no plans to 
reintroduce the above mentioned measures. 
 
(p. 5, para. 7, p. 22, para 98) 
 
Q2. Brazil has attracted solid FDI, second only to China among emerging countries, but Japanese 
companies which have invested in Brazil indicate th at there exist some institutional obstacles such as 
the Transfer Pricing Taxation, which is not consis tent with the OECD standard; the Intellectual 
Property System, which does not prevent counterf eiting and piracy; and the Labor Laws, which 
heavily favor the workers. Is the Brazilian Government  willing to improve these systems? As for the 
Intellectual Property System, many measures have be en taken in connection with paragraph 98 of the 
report, but there still exist many cases of counterf eiting and piracy. Japan would like the Brazilian 
Government to continue its anti-counterfeiting and piracy efforts.  ANSWER:  
 The transfer pricing legislation responds to the specific situation of an economy with a 
high level of presence of multinational companies, as the result of decades of sustained FDI flows. Brazil is not a member of the OECD. Brazil wonders on what concrete basis does Japan make the statement “Intellectual Property Syst em, which does not prevent counterfeiting and 
piracy”. The Brazilian intellectual Property regim e is consistent with the TRIPS Agreement, 
without hindering legitimate trade. The National Anti-Piracy and Anti-Countefeitng Plan has 
produced concrete results, since 2004. This has b een acknowledged by trade partners as well as 
by IP pressure groups. The Brazilian Government  adopts a balanced three track approach in 
the fight against piracy, counterfeiting and biop iracy based on repression strategies, awareness 
campaigns and development of business models. The Brazilian government works closely with 
the private sector in the development of new init iatives. A 23-point New National Plan has just 
been approved.  Among new initiatives, Brazil singles out the creation of a public-private 
working group with a mandate to develop a model of collaboration between internet providers and rightholders in the fight against digital piracy.   Labor laws reflect democratic decisions of the Brazilian Congress in the best interest of 
Brazilian population.  
II. GENERAL ECONOMIC ENVIRONMENT 
(1) MACROECONOMIC STABILITY (p. 6, para. 10) 
 
Q3. The net debt of the public sector improved very  much, but it is important to complete two major 
reforms, i.e., tax reform and social security reform, in order to ensure macroeconomic stability. What 
are the prospects of these two reforms? 
 
ANSWER: 
 
 In 2006, Brazil enacted the Law n. 11.430/ 06, reforming management procedures and 
reducing the rate of expenses. Besides, in 2007, a public forum was organized to discuss eventual 
reforms with stakeholders.   WT/TPR/M/212/Add.1 
Page 96  
 
  So far, the Tax Reform Bill has already been approved by the Special Commission of the 
House of Deputies, and is ready to be voted in the plenary session of the House.   
 However, a time-frame for the approval of these reforms cannot be determined . 
 IV. TRADE INSTITUTIONAL AND REGULATORY FRAMEWORK  (1) CROSS-CUTTING ISSUES (iii) Customs modernization (p. 21, para. 89) 
 
Q4. The average time for customs clearance has  constantly decreased through the years, but 
Japanese companies complain that it still takes longer than they would prefer. Japan would like to see 
continued efforts to reduce customs clearance time.  
 
ANSWER: 
 
 Brazil has adopted Trade Facilitation meas ures in order to reduce customs clearance 
time, among other objectives. These measures include:  a) Conclusion of the draft legislation submitted to Congress to ratify the Istanbul Protoc ol (Ata Carnet);  b) Elimination of licensing 
requirements for importing airplanes and airplane  parts;  c) Reduction in the number of 
products subjected to inspection for internal transit by ANVISA and IBAMA;  d) Comprehensive review of legislation and li censing requirements for each non-tariff control 
agency with a view to reduce duplication an d increase efficiency;  e) improvements to 
SISCOMEX in order to allow agencies to au tomatically approve less risky operations;  
f) Incorporation of new software to SISCOMEX  to allow the attachment of electronic 
documents to the system; and g) Nationwide evaluation of the available workforce of all 
Brazilian government agencies operating at borders, in order to provide adequate personnel to 
deal with increased trade flows.  
(2) SECTORAL ISSUES 
(iii) Services (page 26, para 123)  Q5. Japan is interested in statistics covering all 4 modes of supply of services, as statistics for 
services are often insufficient. Please explain in mo re detail about the Integrated System for Foreign 
Trade in Services mentioned in paragraph 123. 
 
ANSWER: 
 
 The Integrated System of Foreign Trade in Services (SISCOSERV) is being developed 
under the general oversight of the Department of  Commerce and Service Policy of the Ministry 
of Development, Industry and Foreing Trade with  a view to (i) make available periodical and 
disaggregated statistics on the Brazilian foreign trade in services in the four modes of supply, 
(ii) propose, keep up with and assess public polic ies for service sector, (iii) support international 
trade negotiations on services. The conclusion of the export module is expected for 2009 and the 
import one for 2010.    An important step of this process is a crea tion of a new nomenclature on services which 
uses the Central Product Classification  (CPC) as a reference. The final adoption of a Brazilian 
Nomenclature of Services currently awaits th e results of the public consultation process, 
postponed until March 31
st, 2009. 
 
 Further information can be found on the following website 
www.desenvolvimento.gov.br.   WT/TPR/M/212/Add.1 
 Page 97 
 
 
 (iv) Renewable energy (p.26, para 127) 
 
Q6. The Brazilian Government works to wards the creation of an inter national market for bio fuels. 
Please explain the progress made so far in this endeavor. 
 
ANSWER: 
  Progress has been steady. We have many bi lateral agreements in place that disseminate 
production and use of biofuels. Today, many co untries either mix ethanol to their gasoline or 
have ethanol-powered vehicles. Many more are beginning to produce biofuels like ethanol and 
biodiesel. These are the first steps in the establishm ent of an international market for biofuels. 
Brazil, the United States of America and the European Communities are just a few of the 
Members of the International Biofuels Forum that is promoting biofuels and developing 
standards that will build confidence among buyers and sellers. Brazil and the United States of America will highlight this poin t next week on the TBT Workshop on the Role of International 
Standards in Economic Development, on 16 March, just before the regular meeting of the TBT 
Committee. Brazil would also welcome Japan’s - a nd every Member’s -contribution in this area, 
particularly in the CTESS.  V. FUTURE DEVELOPMENTS (p. 29, para. 142-144) 
 
Q7. The Brazilian Government has been promotin g the PAC (Growth Acceleration Programme) very 
actively; however, the newspaper Diario de Per nanbuco reported on 8 Febr uary 2009 that only 3.7 
billion reals were disbursed for it last year, while its budget was 16.9 billion reals. In the opinion of Japanese companies, one of the obstacles to investment in Brazil is a lack of infrastructure. The PAC 
is the principal instrument for resolving this pr oblem. Japan would like to know what the reason for 
the delay of its execution is, and what the Braz ilian Government intends to do to improve this 
situation? 
 
ANSWER: 
  Growth Acceleration Program was launche d in 2007, to accelerate economic growth; 
increase employment and income rates; reduce social and regional disparities; and sustain 
macroeconomic foundations.    In its first year, PAC`s implementation was not as vibrant as expected due to management adjustments made in this initial fa se. However, these initial difficulties have been 
overcome. Further information about PAC`s executi on can be found in the following electronic 
address: http://www.brasil.gov.br/pac/balancos/5balanco.  Secretariat Report II. TRADE AND INVESTMENT POLICY REGIME (p. 15, para 13-16) (3) TRADE POLICY FORMULATION AND IMPLEMENTATION AND OBJECTIVES 
 
Q8. The Secretariat’s report mentions government organization which decides Brazil’s trade policy. 
Concerning tariff rate modification, please answ er the following questions:  (1) Please show the 
mechanism of tariff rate modification.  
ANSWER: 
  The Brazilian applied tariff rate is the CET of MERCOSUR. Once Brazilian authorities verify any need of adjustments in the CET, the request, properly substantiated, is presented to 
the Technical Comittee N° 1 of MERCOSUR (Tariffs and Nomenclature). All Mercosur WT/TPR/M/212/Add.1 
Page 98  
 
 countries then proceed to national public consul tation procedures. If approved by the Comittee, 
a draft Resolution is presented to the Trade Commission, which submits it to the Common 
Market Group. In exceptional circumstances, s ubstantiated requests for modification of the 
CET can also be presented directly to the Common Market Group.  
 
(2) Does Brazil refer to reports from non-governme ntal organizations, such as a council which 
consists of experts? If so, please show the repor ts which the Brazilian government has accepted up to 
now as examples.  ANSWER: 
 
 Brazil does not refer to any non-governmental  expert recommendations or reports to 
propose changes in the CET. 
 
(3) Please explain the regulations which provide time fr ames to modify tariff rates in detail. If Brazil 
does not have any, please explain Brazil’s plans to create such regulations for the purpose of 
enhancing predictability.  
 
ANSWER: 
 
 The regulations concerning tariff changes in  Brazil are those of MERCOSUR. Once the 
Common Market Group issues a Resolution changi ng the CET, it entries into force once all 
four MERCOSUR State Parties incorporate the Reso lution to their national legal systems. In 
some cases, tariff modifications have been  approved by Council Decisions and not Common 
Market Group Resolutions. 
 
(5) INTERNATIONAL RELATIONS (ii) Preferential agreements (a) MERCOSUR (p. 21, para. 39) 
 
Q9. The Secretariat’s report explains the outline  of MERCOSUR. Please answer the following 
questions: (1) Please list the top five major tradi ng products with Argentina, Paraguay and Uruguay 
on a chapter base.  (2) Please provide details on Br azil’s respective shares in the import and export 
volumes of the above-mentioned products.  (3) Pl ease provide the respective average applied tariff 
rates of the above-mentioned products  within intra- MERCOSUR trade. 
 
ANSWER: 
 
 The most recent annual trade statistics can be found at the website of the Ministry of Trade. At the following address, statistics  by country or bloc can be consulted: 
http://www.desenvolvimento.gov.br/sitio/interna/interna.php?area=5&menu=1817&refr=576.   No tariffs are applied in intra-Mercosur trade to products that comply with the 
applicable rules of origin. In the automotive  sector, trade flows duty free under the conditions 
foreseen in bilateral agreements negotiated under the Latin American Integration Association – 
LAIA. 
 
Q10. Could Brazil indicate in how many tariff lines are the bound tariff rates, and whether the 
applied tariff rates are the same within  the four Mercosur member countries? 
     WT/TPR/M/212/Add.1 
 Page 99 
 
 
 ANSWER: 
  Approximately 50% of the tariff lines do not have the same level of boud tariff commitments across the four members of MERC OSUR. The applied tariff is the TEC except 
for goods in the exception list. 
 
(p. 21, para 40) 
 
Q11. The Secretariat’s report explains MERCOSUR ’s Common External Tariff (CET). Please answer 
the following questions: 
 
(1) Please explain the 100 tariff lines which a re the exceptions to MERCOSUR's CET, on the 
basis of Brazil’s national tariff lines. 
 
ANSWER: 
 
 Brazil´s national tariff is the CET.    The Brazilian list of exceptions to the CE T has 100 tariff lines and, according to the 
Decision N° 59/07 of the Common Market Council, can be revised each semestre (maximum of 
20 changes each semestre). There will be a sch edule of reduction to Argentina and Brazil 
starting in 2009 (93 items in the first semestre of 2009; 80 from 01/02/2010 until 31/07/2010; 
50 from 01/08/2010 until 31/12/2010). The Brazilian list is available at the following web page: 
http://www.desenvolvimento.gov.br /arquivos/dwnl_1227554000.xls. 
  The list is designed to offer State Parties some flexibility to address very specific and 
limited issues.   
(2) What are Brazil’s and MERCOSUR’s a pplied tariff rates for these products?  
 
ANSWER: 
 
 The CET is available at the following web page:  http://www.desenvolvimento.gov.br/ 
sitio/interna/interna.php?area=5&menu=1848.   The difference of rates between the CET and the list of exceptions can be obtained by 
comparing this file to the one indicated above. 
 
(3) Why are these products excluded from CET? 
 ANSWER:   The exceptions - both increases and reduction s of duties - are in general temporary and 
designed to deal with specific problems, such as the shortage of products or the convenience to 
raise, for a certain period of time and on an exceptional basis, the level of protection of certain sectors. 
 
(4) While Brazil and other MERCOSUR members have made efforts to unify the applied tariff 
rates for CET, bound tariff lines are not unified. Please explain how many bound tariff lines are 
unified. And please provide the share of unified bo und tariff lines for agricultural products and for 
non-agricultural products, respectively, on the basis of Brazil’s national tariff lines. 
 
 WT/TPR/M/212/Add.1 
Page 100  
 
 ANSWER: 
  Approximately 50% of the tariff lines are unified and, thus, have the same level of bound tariff commitments across th e four members of MERCOSUR. 
 
(p. 21, para. 41) 
 
Q12. The Secretariat’s report explains a policy ref erred to as the “MERCOSUR automotive policy.”  
Please answer the following questions: (1) Please explain this policy in detail.  (2) Please explain the 
reason why this policy has not fully entered into force.  
 
ANSWER: 
 
 The intra-Mercosur Automotive Trade Agreement  negotiated in 2000 has not come into 
force and is is due do be reviewed.  Trade in the automotive sector is currently regulated by 
bilateral agreements negotiated under the Lati n American Integration Association - LAIA 
(Argentina-Brazil, Argentina-Uruguay and Brazil-Uruguay) and flows duty free under the conditions foreseen therein.  (c) Other trade arrangements a nd agreements (p. 22, para. 45) 
 
Q13. The Secretariat’s report explains the Global System of Trade Preferences (GSTP).  Please 
answer the following questions:   (1) What are the conditions under which Brazil applies the GSTP? 
 
ANSWER:   In the GSTP, Mercosur has a common sch edule of commitments. The margins of 
preference applied to Mercosur’s trade part ners in the GSTP can be consulted at:  
http://www.desenvolvimento.gov.br/arquivo/secex/sgpc/decretos/decreto5106_04.pdf.  
 
(2) To which countries does Brazil currently apply the GSTP and what are the conditions?  
 
ANSWER: 
  Mercosur applies the above mentioned margin s of preference to all GSTP Members.  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) OVERVIEW (p. 26, para. 1) (2) MEASURES DIRECTLY AFFECTING IMPORTS (iv) Tariffs (p. 32, para. 42) 
 
Q14. The Secretariat’s report states that the simple  average applied MFN tariff rate was raised since 
the previous TPR in 2004. Please answer the followi ng questions:  (1) Please explain on which lines 
the applied tariff rates were raised on the basis of Brazil’s national tariff lines. (2) Please explain the 
reason why they were raised in detail.  (3) Please provide data which show th e distributions of import 
volumes and tariff rates. 
 
ANSWER:   The simple average increase does not reflect Brazil’s general trade policy, since it is 
related to changes in the tariff profiles of a fe w sectors. Those applied tariffs are related to  WT/TPR/M/212/Add.1 
 Page 101 
 
 
 particularly sensitive sectors, as they are mostly  labour-intensive. Analysis of import flows for 
the same sectors reveals an accelerated growth of  imports for that period, including the lines for 
which applied tariffs are higher. The related im ports for textile and clothing, for instance, 
increased by 178% over the period 2004-2008 (from US$ 1,49 billion in 2004 to US$ 1,64 billion em 2005; US$ 2,29 billions in 2006; US$ 3,23 billio ns in 2007; US$ 4,16 billions in 2008). The 
modal tariffs are lower than some developed co untries’ peaks for the same sectors. With regard 
to chemicals, there were limited topic increases in  tariffs: the modal tariff is only 2% and the 
average applied tariff is around 7%.  (p. 32, para. 43) 
 
Q15. The 2008 simple average applied MFN was 11.5% , up from 10.4% in 2004. In the midst of the 
DDA negotiation for tariff cuts, could Brazil plea se explain the reason for taking this kind of 
restrictive trade measure?  
ANSWER: 
  The simple average increase does not reflect Brazil’s general trade policy, since it is 
related to changes in the tariff profiles of a few sectors which are particularly sensitive. Brazil is 
fully committed to a successful conclusion of the DDA negotiations.  
(p. 32-33, Table III.1 Summary analysis of the MFN tariff, 2008)  
Q16. Concerning table III.1 on Page 32-33. Please answer the following questions: 
 
(1) MFN tariff rates of “Textiles and clothing” and “Transport equipment” are higher than on 
other products. Please explain Brazil’s plan to  reduce these tariffs to promote free trade. 
 ANSWER:   Brazil negotiates the reduction of those tariffs within the context of the DDA negotiations. 
 
(2) While final bound tariff rates on most produc ts are over 30%, the average MFN rates are 
under 20%, although those for textiles and clothing  are 25%. There are large disparities between 
bound and applied rates. Please explain Brazil’s plans to narrow the disparities in order to increase 
predictability. 
 
ANSWER: 
  A successful conclusion of the DDA negotia tions will contribute to reducing bound and 
applied tariffs.  
(3) Japan considers the reason that the MFN applied rates for “Machinery” and “Precision 
equipment”(12%) are higher than those of other members is that Brazil is not a signatory to the Information Technology Agreement (ITA). Please explai n Brazil’s plan to participate in the ITA, as 
Peru, a neighboring country to Brazil, joined the ITA in 2008. Please also explain Brazil’s strategy to 
expand the trade flow of IT products.  
 
    WT/TPR/M/212/Add.1 
Page 102  
 
 ANSWER: 
  There are no current plans on a possible participation in the ITA agreement. The trade flow of IT products has been expanding – actually, there is a huge sectoral trade deficit in IT - as well as imports of industrial products as a whole. 
 
(4) There are tariff escalations in some products . Please explain the rationale of these tariff 
escalations. 
 ANSWER: 
 
 Brazil’s tariff profile is relatively simple (m ostly with tariffs ranging from 0% to 20%, 
with intervals of 2 percentage points within that range). 
 
(3) MEASURES DIRECTLY AFFECTING EXPORTS 
(ii) Export taxes (p. 58, para 185-188)  
Q17. The Secretariat’s report explains export ta xes. Please answer the following questions:  
(1)Please explain in detail the situation which necessitates that Brazil levy export taxes in order to 
ensure domestic market supply.  (2)The Secretariat’s report states that “taxes are levied only on 
exports to certain markets, all of them in the western hemisphere. Where taxes are applied to all 
countries, their stated purpose is to ensure dom estic market supply; where they are targeted to 
specific markets, the stated purpose is to cont rol the regularity of the commercial flow.” Please 
explain in detail the reason why Brazil controls th e regularity of the commercial flow.  (3)Please 
explain Brazil’s plans to move forward to eliminate export taxes.  
ANSWER: 
  Export taxes are applied in very few and specific cases, subject to long and intensive 
consultations and technical meetings, before a d ecision is taken by CAMEX Ministerial Council. 
In these technical meetings, several governmental bodies take part, and there are also sectoral 
discussions in which private sector representativ es may assist. Some possible criteria to select 
products and define tax levels are, among others: existence of tariff escalation abroad; general 
use of export tax for a determined product; and product chain analysis.    In the case where export taxes are applie d to specific countries, the word “regularity” 
actually implies legality. Meaning that the trade operation is done according to the established 
rules. In this case, export tax es are used to inhibit the export ation of products which may be 
later subject to attempts of smuggling into Brazil.    For the time being, there is no phasing-out or plan to eliminate the few taxes adopted. 
 V. TRADE POLICIES BY SECTOR 
(1) AGRICULTURE AND FORESTRY 
(i) General features, policy objectives, and administration (p. 98, para. 11) 
 
Q19. With the current deepening financial crisis and the tightness of food supply and demand, how 
will Brazil prevent and eliminate protective measures such as export restrictions imposed by food-
exporting countries?  
    WT/TPR/M/212/Add.1 
 Page 103 
 
 
 ANSWER: 
  Brazil does not currently apply any protective measure such as export restrictions on  agricultural products, nor does it intend to in  the future. The Brazilian Government believes 
further trade liberalization, represented by a suc cessful, expeditious, and ambitious conclusion 
of the WTO Doha Round is the surest way to mitigate the effects of the current deepening 
financial crisis, as well as to guarantee normal  levels of supply and demand of agricultural 
products in international markets. 
 
(6) SERVICES 
(i) Introduction (p. 119-120, para. 115-116) 
(iii) Telecommunications (p. 128-129, para. 159) 
 
Q20. Japan hopes that Brazil will adopt the Fourth Protocol on Telecommunications and the Fifth 
Protocol on Financial Services to the General Agre ement on Trade in Services as soon as possible. 
Japan would like to know the prospect for the co nclusion of the Fourth Protocol and the Fifth 
Protocol, adoption of the Telecommunications Reference Paper and making further commitments. 
 
ANSWER: 
  Regarding the Fifth Protocol, as it was st ated in the last regular meeting of the 
Committee on Trade in Financial Services of the WTO, in December 2008, due to procedural 
matters it has not yet concluded its ratification process. A specific timeframe  for the completion 
of the process cannot be determined.   Regarding the Fourth Protocol, Brazil presented in 2000 an offer intended to rectifying 
the situation generated by its impossibility to ra tify the IV Protocol in the 1997 form, but such 
offer was rejected by some Members (Uni ted States, Hong Kong/China, European 
Communities, Japan).  Adoption of the IV Protoc ol as such is thus not under consideration.  
However, Brazilian revised offer includes comm itments in the telecommunication services 
sector. 
 
(p. 128-129, para. 159) 
 
Q21. Paragraph 159 states that “the Executive Br anch has the right to limit new foreign participation 
in the telecom sector.”  In what kind of cases does the Executive Branch exercise such a right? Japan 
would like to have more information on this point.  Furthermore, regarding Brazil’s commitments to 
the GATS, Brazil set reservations in mode 3. Japan would like to know whether Brazil is considering 
relaxing these restrictions or not. 
 
ANSWER: 
 
According to Brazilian legislation, the Executive Branch, taking into account the 
country interests in the context of its relationshi ps with other countries, has a legal prerogative 
(but not an obligation) to establish limits to foreign participation in the capital composition of telecommunication service providers. It is import ant to note that the Executive Branch has 
never used this prerogative and the Federal Co nstitution guarantees all acquired rights of 
service providers already established in Brazil. 
 
 Regarding Brazil's commitments to the GATS in mode 3, Brazil is not considering to relax these restrictions. In our view, commercial presence requirement is a measure to guarantee consumer defense, quality of services and correct taxation.  WT/TPR/M/212/Add.1 
Page 104  
 
 (p. 131, para 170) 
 
Q22. With respect to paid-television services prov ided via cable, companies must be established in 
Brazil and at least 51 % of their capital must be  owned by Brazilians or foreigners who have had 
Brazilian citizenship for ten years. On the other hand,  such provisions do not apply to paid-television 
services provided via MMDS or DTH technologies. Japan would like to know the reasons for the 
difference. 
 
ANSWER: 
 
 In Brazil, paid-television services provided  via cable are ruled by Law 8.977/95, which 
presents limitations for foreigners providers. Differently, services provided via MMDS or DTH technologies are ruled by Law 9.472/97, which does not present this limitation. 
 
(p. 131, para 174) 
 
Q23. The report said that value-added services are not  regarded as telecom services per se. However, 
Japan considers that it would be possible to make commitments for such value-added services by 
adding some explanation of their domestic regula tions. Japan would like to know if Brazil has any 
intention to improve its commitments to the GATS in terms of value-added services.  
 
ANSWER: 
  Value Added Services are not defined as telecommunication services in the Brazilian 
legislation. Brazilian revised offer includes co mmitments in the telecommunication services 
sector but none in value-added services, although the matter is under consideration. 
 
(p. 132, para 176) 
 
Q24. Paragraph 176 explains that “Resale of telecom ser vices is not covered by the legislation, nor it 
is provided in practice.” However, the authoriti es note that ANATEL plans to authorize the resale of 
telecom services. Could Brazil give some details on the progress of drafting such deregulations and 
provide a brief explanation of the deregulations? Please also clarify  whether these deregulations are 
non-discriminatory. 
 
ANSWER: 
 
 ANATEL recently approved the General Plan for Telecommunication Regulation 
Updates in Brazil  (PGR), which presents actions to be promoted in the next ten years, aiming to 
update telecommunication regulations in Brazil.  As established in PGR, ANATEL will have to 
issue regulation on resale of telecom services in order to authorize it in the next two years. 
 
(p. 133, para. 183) 
 
Q25. Paragraph 183 states that “The use of Brazilian satellites is given priority over foreign 
satellites, if technical and economic conditions are equivalent.” Are there examples of cases in which 
such preferential treatment was allowed? Could Brazil please elaborate on the criteria to determine 
whether the technical and economic conditions are e quivalent or not? Furthermore, Japan would like 
to know if foreign communication satellite operato rs without any commercial presence in Brazil can 
provide satellite bandwidth to Brazilian communication satellite operators. 
  WT/TPR/M/212/Add.1 
 Page 105 
 
 
 ANSWER: 
  According to the Brazilian legislation, priority should be given to the use of Brazilian satellites when, concomitantly, conditions such asthe price of MHz and the deadline for providing the requested service are equivalent or more favorable; and operational and technical 
parameters comply with the requirements es tablished by the telecommunication service 
provider. Although these conditions are in force, up to the moment, there was no case in which 
the preference was applied.    It is important to note that, in acco rdance with the Brazilian rules, foreign 
communication satellite operators cannot provide  satellite capacity or telecommunication 
services to licensee service providers or users wi thout any commercial presence in Brazil (The 
foreign satellite operator must nominate a Lega l Representative in Brazil, and the capacity 
should be contracted through this Legal Representative).  
 For further details, see Resolution nº 220/2000.  
(p. 133, para. 184) 
 
Q26. Paragraph 184 states that a new Universal Service Plan issued in 2007 established that, by 
December 2010, operators have to co llectively bring broadband Internet access to all Brazilian 
municipalities and another 3000 localities. Japan would like to know the details concerning how and 
why broadband Internet access was added to universal service.  
 
ANSWER: 
 
 Anatel and the incumbents of telecom serv ices decided to review the Universal Service 
Plan (PGMU), to replace targets for the installa tion of public telephones by targets for the 
expansion of broadband services. The new targets w ere published in Decree nº 6.424/2008. It is 
important to note that these new targets are related with the provision of the infrastructure, and not with the provision of the access to Internet . Internet access will be increased by the public 
policies from the Government of Brazil to promote digital inclusion. 
 
(v) Maritime transport and ports (p. 138, para. 210) 
 
Q27. The Secretariat’s report, in paragraph 210 on  page 138, explains that a tax called the AFRMM 
does not apply to operators from countries with wh ich Brazil has agreements.   Please provide a list 
of countries exempted from such taxation.  
ANSWER: 
  Agreements that specifically foresee the exem ption have mostly been negotiated in the 
LAIA context. 
 
(vi) Professional services (p. 141, para 232) 
 
Q28. Please provide information on the number of applications from foreign lawyers to practice law 
in Brazil in recent years. 
 
ANSWER:   The information is not available. 
 WT/TPR/M/212/Add.1 
Page 106  
 
 Q29. The report states that, while no professions are reserved for nationals, the practice of the legal 
profession and other professions requires residence in  Brazil, as part of the requirements of the 
immigration laws.  (1)Is residence in Brazil required  for foreign lawyers who engage in consultations 
on foreign law?  (2) If so, what is the minimu m length of residence required for foreign lawyers 
wishing to practice in Brazil? 
 
ANSWER: 
  According to Article 2 of Provimento No. 91/2000 issued by the Brazilian Bar Association, the authorization for consultation on foreign law requires the applicant to hold a 
residency visa in Brazil.   
(b) Legal services (p. 142, para. 239) 
 
Q30. According to the report, Brazil allows forei gn lawyers to engage in consultations on “foreign 
law.” Is “foreign law” limited to the laws of the countries in which the foreign lawyer is qualified as 
a lawyer?  ANSWER:   The professional will only be allowed to pr ovide consultations on the foreign law of the 
country where he or she was or iginally qualified as lawyer. 
 
ECUADOR 
 
Reporte de la Secretaría de la OMC WT/TPR/S/212 
III. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS 
2) MEDIDAS QUE AFECTAN DIRECTAMENTE A LAS IMPORTACIONES i) Procedimientos aduaneros y documentación 
 
 El párrafo 12 señala que se exige un certificado de origen cuando el importador solicita una 
preferencia arancelaria en el marco de un acuerdo p referencial.  1) ¿Qué información debe contener 
el certificado de origen y cuál es la institución que debe emitirlo?  
ANSWER: 
  The Certificate of Origin is the document which certifies that the goods fulfill the origin 
requirements as set out in each preferential agreement, so that they can benefit from the 
preferential tariff treatment. The certificates of origin shall be issued in the format agreed by 
the parties to the agreement. In general, the Ce rtificates of Origin must provide the following 
information :  1) name, address and country of the producer or exporter;  2) name, address and 
country of the importer;  3) detination country;  3) description of the product to be exported 
and its tariff classification;  4) origin criteria;   5) number and date of the commercial invoice; 
6) number of the Certificate of Origin; and 7) stamp and signature of the authorized officer. 
  Certificates of origin must be issued by the appropriate authorized government body in 
each country. In Brazil, MDIC controls the process of issuing certificates, but delegates the act of issuing them to representative industry associations. 
 
v) Otras cargas que afectan a las importaciones 
 
 En el párrafo 67 se indica que en las impor taciones, el impuesto sobre la circulación de 
mercancías y la prestación de servicios interest atales de transporte y comunicaciones (ICMS) se  WT/TPR/M/212/Add.1 
 Page 107 
 
 
 calcula sobre la base del valor c.i.f. más los d erechos, el impuesto sobre los productos industriales 
(IPI) y cualesquiera "otros costos aduaneros".  2.  ¿Podría especificar los costos adicionales que 
podrían estar comprendidos dentro del término "otros costos aduaneros".     
 
ANSWER: 
 
 Some examples of costums costs are: SISCOM EX`s fees, eventual anti-dumping ruties, 
fees for port handling services, etc. 
 
vi) Medidas comerciales especiales 
 
 El párrafo 77 señala que la Cámara de Com ercio Exterior (CAMEX) se encarga de adoptar 
la decisión definitiva -incluida la utilización de la  cláusula de "interés nacional"- sobre la aplicación 
de medidas antidumping o compensatorias provis ionales y de derechos de finitivos, de modificar o 
cesar la aplicación de derechos definitivos de resultas de un examen y de aceptar o dar por 
terminados los compromisos.  3. ¿Cuáles son lo s criterios en los que la CAMEX se basa para la 
utilización de la cláusula de “interés nacional”?  4. ¿Existe un procedimiento preestablecido para la utilización de la cláusula de “interés nacional”?  ANSWER:  
 The Department of Commercial Defence (D ECOM) of the Secretariat of Foreign Trade 
– SECEX conducts investigations but does not deci de for the application of AD/CV measures.   
The decision to end an investigation without a pplying AD/CV measures is taken by the SECEX 
itself. In case SECEX considers favourably the app lication of AD/CV measures, it shall submit a 
recommendation to the Chamber of Foreign Trade - CAMEX, which is a college of 6 ministers 
and makes the final decision.  The reasons for CAMEX decisions are published in the official 
gazette. According to Brazilian Law CAMEX may take into due account elements of public interest in its decision but this assessment varies on a case by case basis. 
 
 De acuerdo al párrafo 80, la Secretaría de Co mercio Exterior (SECEX) tiene la facultad de 
establecer medidas antidumping y compensatorias prov isionales.  5. ¿En qué casos la SECEX podría 
establecer estas medidas antidumping y compensatorias provisionales? 
 ANSWER:   First of all, it should be noted that the Department of Commercial Defence (DECOM) of 
the Secretariat of Foreign Trade – SECEX conducts  investigations but does not decide for the 
application of either provisional or definitive AD/CV measures.  In case SECEX considers favourably the application of provisional AD/CV me asures, it shall submit a recommendation to 
the Chamber of Foreign Trade - CAMEX, which is a college of 6 ministers and makes the final decision.   
 According to the Brazilian law, which reflects the conditions established in the ADA, 
provisional measures may be applied only if:  I. an investigation has been initiated in 
accordance with the legal provisions, a public notice has been published and interested parties 
have been given adequate opportunities to subm it information and make comments;  II.  a 
preliminary affirmative determination has been made of dumping and consequent injury to a 
domestic industry;  III. CAMEX judges such meas ures necessary to prevent injury being caused 
during the investigation; and IV. an investigation was initiated at least 60 (sixty) days prior to 
the adoption of the measures. 
 WT/TPR/M/212/Add.1 
Page 108  
 
  El párrafo 85 señala que los derechos anti dumping y compensatorios tienen que ser 
suprimidos, a más tardar, en un pl azo de cinco años contados desd e la fecha de su imposición o 
desde la fecha del último examen en que se hay a confirmado su aplicac ión y que sólo puede 
ampliarse si cinco meses antes de la expiraci ón del derecho las partes interesadas solicitan un 
examen para demostrar que volverá a producirse el daño .  6. ¿Cuál es el procedimiento que el nuevo 
examen que las partes pueden solicitar debe seguir?  
ANSWER: 
  Based on the ADA, the Brazilian legislation establishes that the period of application of 
anti-dumping duties may be extended if the Braz ilian authorities determine in a review initiated 
upon a duly substantiated request, made by or on behalf of the domestic industry or on their 
own initiative that the expiry of the duties would be likely to lead to the continuation or recurrence of dumping and injury. The reviews ob serve the same procedural rules applicable to 
original investigations and the duties remain in  force pending the outcome of the review. The 
procedures are fully in accordance with the ADA  and are established in the Decree no. 1602/95 
which can be accessed online at http://www.desenvolvimento.gov.br/sitio/legislacao/ decretos/1602.php. 
 
vii) Prohibiciones, restricciones y licencias 
c) Restricciones cuantitativas y de otro tipo 
 
 Según el párrafo 118, las mercancías, incluidas  las importadas por los gobiernos federales o 
subfederales y por organismos autónomos, sólo pued en estar exentas de derechos de importación 
cuando no existan productos nacionales similares.   A tal efecto, debe aplicarse a las importaciones 
una "prueba de similitud" realizada por la SECEX.  7. ¿Podría proporcionar mayor información 
acerca del procedimiento que debe seguir la "prue ba de similitud" que realiza la SECEX así como de 
las partes que pueden solicitarla?  8. ¿Es posible apelar la decisión que de la SECEX luego de 
realizar la "prueba de similitud"?  ANSWER:  
 The procedure related to the similarity test  is described in Section V of the document 
“Consolidation of SECEX’s regulations on External Trade Operations”: http://www.mdic.gov. br/arquivos/dwnl_1235657527.pdf.   Article 33 of the above mentioned document regulates the conditions in which a request 
of a similarity test can be reexamined.  
viii) Reglamentos técnicos y normas 
a) Marco institucional y jurídico 
 
 En el párrafo 128 se indica que el Br asil ha notificado a la OMC cinco acuerdos de 
reconocimiento multilateral de la evaluación de la  conformidad entre el Instituto Nacional de 
Metrología, Normalización y Calidad Industrial (I NMETRO) y organismos de otros países.  9. En 
caso de haber interés por parte del organismo correspondiente del Ecuador ¿cuáles son los pasos 
que se deben seguir para llegar a un acuerdo de reconocimiento multilat eral de la evaluación de la 
conformidad con el INMETRO?   
 
ANSWER:   In order to establish mechanisms of mutual recognition, it is essential to promote programs of technical cooperation allowing for experience exchange.  WT/TPR/M/212/Add.1 
 Page 109 
 
 
  INMETRO’s General-Coordination of Accreditation (Cgcre), together with its 
counterparts in other countries, has sought to establish, through regional and international 
cooperation, agreements intended to promote confid ence among them on the results of tests and 
calibration and on certificates issued by accredited  certifying bodies in the areas of management 
and products. 
 
 Those agreements allow that the results of tests and calibration performed by 
laboratories accredited by Cg cre/INMETRO, for example, be accepted by the other 
accreditation bodies that are signatories to th e agreement. Agreements of mutual recognition 
between accreditation bodies will increasingly play a role in trade facilitation schemes and will 
provide a technical basis for trade ag reements between different governments. 
  INMETRO Cgcre is signatory to the follo wing multilateral agreements of mutual 
recognition:  a) International Laboratory Accred itation Cooperation – ILAC;  b) European Co-
operation for Accreditation – EA;  c) Inter-American Accreditation Cooperation – IAAC;  
d) International Accreditation Forum – IAF;  e) American Aerospace Quality Group – AAQG;  
f) Program for the Endorsement of Forest Certification Schemes – PEFC;  g) The Global Partnership for Good Agricultural Practice – Globalgap.  Additionally, INMETRO’s Cgcre may sign bilateral MoUs with accreditation bodies of other countries.   In this case, the interested accreditatio n body must contact INMETRO’s Cgcre to 
develop and sign an MoU, and develop its implementation work plan and schedule.  
ix) Medidas sanitarias y fitosanitarias 
b) Actividades de aplicación 
 
 Según el párrafo 170, los importadores están oblig ados a registrar en la Agencia Nacional de 
Vigilancia Sanitaria (ANVISA) determinados produc tos.  10. ¿Cuáles son los productos que deben ser 
registrados en la ANVISA? 
 
ANSWER: 
 
 ANVISA Resolution 22 of March 15, 2000 (Federal Official Gazette - DOU 16/03/2000), 
deals with the basic procedures to be followed fo r the registration of imported products in the 
area of foodstuffs. Additional details can be found at http://www.anvisa.gov.br/eng/food/ registration.htm. 
 
11. ¿Cuál es la información que el importador  debe proporcionar para el registro de los 
productos en la ANVISA?  ANSWER:   ANVISA Resolution 22 of March 15, 2000 (Federal Official Gazette - DOU 16/03/2000), 
deals with the basic procedures to be followed fo r the registration of imported products in the 
area of foodstuffs. Additional details can be found at http://www.anvisa.gov.br/eng/food/ registration.htm.  IV. POLÍTICAS COMERCIALES, POR SECTORES 
2) AGRICULTURA Y SILVICULTURA  
 En el párrafo 5 se señala que en algunos ca sos, el acceso a programas de ayuda a la 
producción agrícola está supeditado a la  utilización de insumos nacionales.   
 WT/TPR/M/212/Add.1 
Page 110  
 
 12. ¿Cuáles son esos casos en los que el acceso  a programas de ayuda a la producción agrícola 
está supeditado a la utilización de insumos nacionales? 
 
ANSWER: 
 
 The policy refers to the features of FINAME Agriculture credit lines, managed by 
BNDES, which are fully described in Secretariat’s TPR report.  iii) Medidas de ayuda interna 
 
 Según el párrafo 19, en la reunión celebrada por el Comité de Agricultura de la OMC en 
septiembre de 2008, el Brasil manifestó que la mayo ría de sus programas de  ayuda, que alcanzarían 
un valor de 40.000 millones de dólares EE.UU, se guirán estando clasificadas con arreglo a las 
disposiciones sobre trato especial y diferenciado de l párrafo 2 del artículo 6 del Acuerdo sobre la 
Agricultura y, por consiguiente, excluidas del cá lculo de la MGA.  13. ¿Podría especificar los 
programa de ayuda que no serán clas ificados con arreglo a las disposiciones sobre trato especial y 
diferenciado del párrafo 2 del artículo 6 del Acuerdo sobre la Agricultura? 
 
ANSWER: 
  Credit-related support increase in the last few years, with the exception of 2007, was 
mainly due to debt rescheduling. That support accounts for about half of the total support 
granted, and benefited mainly medium size fa rmers. Major producers of export goods count 
essentially on private credit sources and are subject  to much higher interest rates than in the 
world market. In addition, the benefit appropri ated by medium size producers from the credit 
policy based on a concessional interest rate is lower than the credit subsidy awarded. This is due 
to the fact that the financial cost faced by pr oducers is highly inflated by conditionalities 
imposed by banks. Thus, taking into account that  PSE for Brazil is low, possible world market 
distortion caused by credit-related support was negligible. Furthermore, the financing of 
agriculture at concessional interest rates co rresponds only to 25% of  rural credit. 
  Article 6.2 of the Agreement on Agriculture states that “…investment subsidies which 
are generally available to agriculture in deve loping country Members and agricultural input 
subsidies generally available to low-income or  resource-poor producers in developing country 
Members shall be exempt from domestic suppo rt reduction commitments…”. Therefore, Brazil 
understands that production credits for small fa rmers (PRONAF) and all investment credits for 
agriculture fall under Article 6.2, and are thus  exempt from domestic support reduction 
commitments. This is the type of credit that  is being excluded from AMS calculations. 
 
 En el párrafo 29 se indica que el Gobierno de Brasil ha tomado una serie de medidas de 
reescalonamiento para prolongar los plazos de devolución de los préstamos de los pequeños 
agricultores y beneficiarios de la reforma agraria a tipos de interés reduci do.  14. ¿Ha considerado 
el Gobierno de Brasil la adopció n de medidas adicionales que permitan disminuir el volumen de 
reembolsos vencidos, los cuales, de acuerdo a la OCDE, alcanzarían el valor de 2.500 millones de 
dólares EE.UU? 
 
ANSWER: 
 
 The last rescheduling of farmers' debt undertaken in 2008 was conceived with the 
purpose of avoiding the need for new renegotiation s, and, in spite of the current world financial 
crisis, Brazilian authorities do not foresee future rescheduling.   WT/TPR/M/212/Add.1 
 Page 111 
 
 
  The outbreak of the world financial crisis took  place in a moment of steady growth of 
Brazil`s agricultural production and exports, which began in the last few years, after a period of 
setbacks caused by declining prices and weathe r associated crop failures. This previous good 
performance is a factor that attenuates the impact  of the current crisis. The crisis` major effects 
are lack of liquidity and retraction of demand, which affect commodity prices and profit 
margins. These effects were aggravated by longst anding high rural indebtedness, strong 
dependence on fertilizer imports and high interest rates.    A major problem faced by farm ers, especially in the export segment, is one of liquidity, 
since they rely on foreign sources of financing and tend to be located in the Mid-West region, at 
an average distance of two thousand kilometers  from the closest ports and main domestic 
markets. Farmers in that region are dependent on  private credit sources and the cost of their 
foreign debt increased substantially due to  the devaluation of Brazil`s currency.  
  To countervail these effects, the Govern ment adopted several measures aimed at 
strengthening the banking system’s capability of financing agriculture. Farmers' liquidity, 
however, did not increase as expected, because banks initially diverted their resources away 
from rural credit to lower risk sectors. Howe ver, more recent measures undertaken to increase 
liquidity in the economy were ef fective. Brazil estimates that its grain crop production in 2008-
2009 will be approximately 6.4% lower than the 144 million tons registered in the last harvest 
season. A more serious problem may arise during harvesting season due to marketing 
uncertainties related to demand and relative prices for the commoditi es exported by the 
country. 
 
ECUADOR (Second BATCH) 
 
Reporte de la Secretaría de la OMC WT/TPR/S/212  POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS 2) MEDIDAS QUE AFECTAN DIRECTAMENTE A LAS IMPORTACIONES iv) Aranceles b) Concesiones arancelarias 
 
 En el párrafo 55 se menciona que el Brasil puede otorgar concesiones arancelarias mediante 
el mecanismo "Ex Tarifário", cons istente en una reducción temporal de los derechos de importación 
de los productos de las listas BK y BIT.  1.  ¿Cuá les son los criterios o consideraciones aplica Brasil 
para  escoger qué productos form an parte de dichas listas? 
 
ANSWER: 
  The “Ex Tarifario” regime is applicable  only for capital, informatics and 
telecommunications goods. The approval of “Ex Tarifarios” requests are based upon certain criteria, such as:  contribution to the developm ent and competitiveness of the sector involved;  
absorption of new technologies;  related investments in infra-structure.  
 2. ¿Qué elementos sustentan la aplicación de este instrumento, a fin de que el mismo no sea 
discriminatorio? 
 
ANSWER:   The temporary reduction of import duties under the “Ex Tarifario” regime is valid for 
the BKs and BITs concerned regardless of its origin. 
 WT/TPR/M/212/Add.1 
Page 112  
 
 ix) Medidas sanitarias y fitosanitarias 
b) Actividades de aplicación 
 
 En el párrafo 167 y 169 se indica que el procedimiento de autorización de importación de 
productos de origen vegetal conlleva la realizació n de un Análisis de Riesgo de Plagas, ARP, y 
posterior la aprobación del mismo por parte de la División de Sanidad Vegetal del Ministerio de 
Agricultura del Brasil. Según las autoridades, en el  proceso de evaluación del riesgo se tiene presente 
la información técnica recibida de terceros países y,  por ese motivo, su duración depende sobre todo 
de la rapidez con que se obtenga y evalúe esa informac ión. Según el informe de la Secretaría de la 
OMC, Brasil no disponía de información sobre los pl azos mínimo y máximo necesarios para realizar 
una evaluación del riesgo.  4.¿Cuál es el tiem po promedio que toma este procedimiento?  
 ANSWER:   As for the period needed to finish a risk analysis, Brazil, as many other countries, does 
not have a law defining a specific time (minimal or maximum) to conclude a risk assessment. It 
would be willing to discuss this issue at the SPS Committee. The time limit will depend on the complexities involved in each case, as well as the specifics of the product, its plagues and associated illnesses. 
 
5. ¿Existe alguna iniciativa para establecer pl azos mínimos y máximos para la evaluación de 
riesgos? 
 ANSWER:   Brazil would be willing to discuss this issue at the SPS Committee. 
 
Inicio de investigación para la imposición de derechos antidumping sobre importaciones de 
películas de polipropileno originarias del Ecuador   En el inicio de la investigación para la ap licación de derechos antidumping por parte del 
Departamento de Defensa Comercial de la Secretaria de Comercio Exterior del Brasil 
("DECOM/SECEX") sobre las importaciones de pelícu las de polímeros de polipropileno biaxialmente 
orientado ("películas BOPP") sin impresión, que nor malmente se clasifican en Brasil bajo la sub-
partida arancelaria 3920.20.19, originarias de Ec uador, el valor normal para las películas BOPP de 
Ecuador está basado en el precio de exportación a un tercer país; en este caso, Venezuela.  Para considerar inapropiado el uso de precios de ventas internas en el Ecuador en el sentido del artículo 
2.1 del Acuerdo Antidumping, DECOM/SECEX debi ó haber evaluado de conformidad con el artículo 
2.2 si las ventas internas en Ecuador:  a) no se realizaban en el curso de operaciones comerciales 
normales;  b) respondían a una situación especial  del mercado en Ecuador; c) no representaban un 
volumen representativo en el Ecuador de conformi dad con la nota de pie de página 2 del Acuerdo 
Antidumping.   
 8. ¿Por qué DECOM/SECEX en su circular de inicio no explica si los solicitantes presentaron o 
no hechos que respaldaran la existencia de alguna de  las condiciones (a),(b), o (c) ni tampoco 
explica si se realizó una evaluación sobre la improced encia de utilizar los precios de venta en el 
mercado interno del Ecuador?  
9. ¿Por qué DECOM/SECEX no cerró la investi gación para las importaciones procedentes del 
Ecuador si lo solicitantes no presentaron pruebas qu e demostraren el carácter cerrado y concurrido 
de los mercados de exportación de los productos obje to de investigación, ni cómo es que este hecho 
les impidió recolectar la información exi gida sobre el precio de ventas internas? 
  WT/TPR/M/212/Add.1 
 Page 113 
 
 
 10. ¿Podría por favor explicar por qué la determ inación de DECOM/SECEX de utilizar el precio 
de exportación de un tercer país sin evaluar la impro cedencia de utilizar el precio de ventas internas, 
sobre la base de pruebas insuficientes a ese fin, sería compatible con los artícul os 5.2 (iii) y 5.3 del 
Acuerdo Antidumping?    
11. ¿Podría por favor explicar cómo la Circula r de Inicio de DECOM/SECEX sin contar con 
pruebas suficientes es compatible con el  artículo 5.8 del Acuerdo Antidumping? 
 12. ¿Podría por favor explicar porqué la Circula r de Inicio no establece los criterios bajo los 
cuales se determinó que el precio de exportación a Venezuela era "representativo" o que Venezuela 
era un país "apropiado"? 
 El anexo C del escrito de las solicitantes del 13 de mayo de 2008 solo menciona al precio de 
exportación a Venezuela dentro del total de exporta ciones de Ecuador al mundo.  Por lo tanto:  
 
13. ¿Por qué DECOM/SECEX a pesar de que di cho anexo no permite una comparación entre el 
precio de exportación a Venezuela y el precio de exportación individual a otros países determina que el precio a Venezuela es "representativo" y  Venezuela es un país "apropiado" para determinar el valor normal?  14. ¿Por qué en la Circular de Inicio DECO M/SECEX no evaluó los dos criterios que prevé el 
artículo 2.2 del Acuerdo Antidum ping en la elección del precio de exportación a un tercer país; a 
saber, (i) que el precio de exportación sea "representativo" y (ii) que se refiera a un país 
"apropiado"?  
La página web del Banco Central de Ecuador , que sirvió de base para el cálculo de 
DECOM/SECEX, indica que para la partida 3920 .20 hubo exportaciones del Ecuador a Venezuela y 
a otros países.  De estas exportaciones, es eviden te que las exportaciones de Ecuador a Colombia 
(2,237.48 kilos) fueron considerablemente mayo res que las exportaciones de Ecuador a Venezuela 
(597.59 kilos). Los volúmenes de las exportaci ones a Colombia estuvieron más próximos a los 
volúmenes que según dicha fuente de información se exportaron al Brasil (2,108.23) antes que a los 
volúmenes que se exportaron a Venezuela.  Por lo tanto:  
 
15. ¿Por qué DECOM/SECEX si no existe fundamento para considerar que el precio derivado del volumen inferior de exportaciones a Venezuel a es más representativo que el precio derivado del 
volumen superior de exportaciones a Colombia insiste en considera r que el precio de exportación a 
Venezuela es más representativo que el precio de exportación a Colombia en el sentido del artículo 
2.2 del Acuerdo Antidumping?    
 
De haberse utilizado el precio de exportación de  Colombia (US$2,356.35 por tonelada) para 
la comparación con el precio de exportación a Brasil que utilizó (US$2,619.84 por tonelada), se 
habría encontrado un margen de dumping negativo.   
16. ¿Es esto correcto? 
  DECOM/SECEX utilizó el precio de exportaci ón a Venezuela de US$2, 942.45 por tonelada, 
basado en el volumen de 597.59 toneladas para las subpartidas 39202000 y 39202010 sin diferenciar 
entre productos investigados y no investigados.  Las solicitantes, sin embargo, observaron que dentro 
de las subpartidas  39202000 y 39202010 el 64. 6 por ciento de los productos importados 
correspondía a películas BOPP mientras que el resto era producto no investigado.1  Por lo tanto:  
10. ¿Se agradecerá explicar cómo DECOM/SECEX c oncluye que a pesar de la evidencia que el 
                                                     
 
1 Escrito de las solicitantes del 16 de junio de 2008, p.7. WT/TPR/M/212/Add.1 
Page 114  
 
 precio de exportación para las subpartidas  39202000 y 39202010 co mprendía a productos 
investigados y no investigados dicho precio era "representativo" en el sentido del artículo 2.2 del 
Acuerdo Antidumping?   Dado que la determinación del valor nor mal, basada en el precio de exportación a 
Venezuela, comprendería a productos que no son obje to de investigación en tanto que el precio de 
exportación a Brasil estaría limit ado únicamente a productos que son objeto de investigación: 
 17. ¿Por qué considera que dicha comparación en tre el valor normal y el precio de exportación 
sea equitativa en el sentido del artículo 2.4 del Ac uerdo Antidumping y el artículo VI:1 del GATT de 
1994?   
  Al no existir pruebas suficientes que permitier an realizar los ajustes pertinentes y no obstante 
haber aceptado la comparación entre el precio de exportación a Venezuela y el precio de exportación 
a Brasil:  
 
18. Se agradecerá se proporcione una mayor exp licación respecto de cómo DECOM/SECEX 
habría iniciado la investigación observ ando los requisitos de los artícul os 5.2, 5.3 y 5.8 del Acuerdo 
Antidumping. 
 
ANSWER: 
 
Questions 8 to 18 refer to an on-going AD investigation. At this stage we cannot 
comment further than to state that our authorit ies are commited to provide ample opportunities 
for all interested parties to make their views co nsidered and to defend their interests, as we are 
required to do under the AD Agreement. We certainly remain available for bilateral 
consultations on the issue.  
CHILE 
 
1) En el párrafo 75 del Informe de la Secretaría (III. POLÍTICAS Y PRÁCTICAS 
COMERCIALES POR MEDIDAS/ 2) Medidas que afectan directamente a las importaciones/ vi) 
Medidas comerciales especiales) se indica que  Brasil es un activo usuario de las medidas 
antidumping y que la mayoría de esas medidas revisten  la forma de derechos específicos.  ¿Cuáles 
son los elementos de juicio que han determi nado que la aplicación de  un derecho antidumping 
consista en un derecho ad valorem o un derecho específico? 
 
ANSWER:   The decision concerning the sort of duty to be imposed is assessed on n case by case basis 
taking into account a variety of elements under th e scope of the investigation and with a view to 
achieving the most effective results in t erms of offsetting the dumping practice. 
 
2) En el párrafo 123 y siguientes (viii) Reglamen tos técnicos y normas/ a) Marco institucional y 
jurídico) se explica el procedimiento para la elabor ación y publicación de los reglamentos técnicos. 
Interesaría conocer a la delegación de Chile si existe un mecanismo que se encargue de  las 
notificaciones de los reglamentos a la OMC y de la coordinación con los distintos organismos 
públicos que dictan las regulaciones, en caso que exista ¿cómo opera dicho mecanismos?  ¿Se 
realiza un seguimiento en el Diario Oficial para de tectar reglamentos que no hayan sido notificados?  
  WT/TPR/M/212/Add.1 
 Page 115 
 
 
 ANSWER: 
  INMETRO coordinates a network of stakeholders on TBT issues to analyze technical regulations and hand them to the Ministry of  External Relations, which is responsible for 
notifying technical regulations. All technical regulat ions that need to be notified are submitted 
to the Secretariat of the WTO by the Ministry of External Relations on a regular basis. It is not 
necessary to detect technical regulations after publication in the Official Journal. 
  ¿Cuál es el número total de reglamentos vigentes en Brasil? Y ¿Cuántos de ellos se basan en normas internacionales? 
 
ANSWER: 
  At present, there is no precise statistical data on this subject, but Brazil has initiated efforts to compile Brazil’s technical regulations wi th an aim to create a national database. It is 
worth noting that most of the Technical Regu lations issued by Inmetro/MDIC are based upon 
ABNT/ISO/IEC standards. 
 
3) En el párrafo 260 del Informe de la Secret aría (4) Medidas que afectan a la producción y al 
comercio/ ii) Política de precios y de competencia) se indica que a nivel subregional Brasil aplica las 
disposiciones del Protocolo de Protección de la Co mpetencia en el MERCOSUR.  ¿Existen casos en 
los que se hayan aplicado las di sposiciones de ese Protocolo? 
 
ANSWER: 
  No, there aren’t. 
 
NORWAY (FIRST BATCH) 
 
WT/TPR/S/212 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) MEASURES DIRECTLY AFFECTING IMPORTS 
(i) Customs procedures and documentation 
 
 Para. 5 reads as follows; “During the review period, Brazil continued to take gradual steps 
to simplify and modernize its customs proce dures. For example, it in troduced an express import 
declaration regime for frequent importers, and reduced by 26% the number of rejected import 
declarations.”  Could Brazil provide more details  on the simplification and modernization of its 
customs procedures? 
 
ANSWER: 
 
 From 2004 to 2007, the Secretariat of the Federal Revenue of Brazil (RFB) continued 
the ongoing effort to speed up the flow of fo reign trade, whereas increasing repression of 
customs related crimes. The average time for cu stoms clearance has been constantly reduced 
trough the years, reflecting the efforts to consolidate, simplify and harmonize customs 
procedures. The intensive use of information t echnology (IT) improved risk analysis, reducing 
release times in ports and strengthening the comb at to frauds like counterfeiting and piracy. In 
this period, RFB started developing a project based  on artificial intelligence, in order to make 
risk management techniques more effective when  applied to selecting operations for inspection 
during customs clearance and during the author ization process for foreign trade operators. 
Brazil is making efforts to sign important intern ational agreements related to customs, such as WT/TPR/M/212/Add.1 
Page 116  
 
 the Revised Kyoto Convention and the Istanbul Convention, both from the World Customs 
Organization. Likewise, RFB is working on licit  trade facilitation, cooperating with other 
Brazilian government agencies, as well as with other countries customs administrations. 
 
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
(iv) Incentives and other government assistance  
 Para. 270 states that; “Brazil has been notify ing periodically to the WTO its subsidies 
programmes under Article XVI.1 of the GATT 1994 a nd Article 25 of the Agreement on Subsidies and 
Countervailing Measures (SCMA). In its October 2007 notification, for fiscal years 2005 and 2006, 
Brazil included the SUDAM/ADA and SUDENE/ADENE regional programmes; the 
FINAM/FINOR/FUNRES programmes for the developm ent of the Amazon and north-east regions and 
the state of Espírito Santo; the programme of cons titutional funds for the financing of the north-east, 
the north and the mid-west regions; the program me for capacity building and competitiveness, 
enhancement in information technology; fisheri es incentives; and the industrial technology 
development programme (PDTI) and agriculture/cattle  breeding technology development programme 
(PDTA).”  
 
 Could Brazil elaborate on the specific content of  the program for “fisheries incentives”? The 
footnote in para 270 refers to Brazil’s subsid y notification of 2007 where a program for diesel oil 
support is notified. Is this program  still in existence? If so, could Brazil provide any details of it? 
 
ANSWER: 
  Fisheries incentives notified and granted by the Brazilian Government encompass the 
"National Program for Financing the Improvement and Modernization of the National Fishing 
Fleet – PROFROTA Pesqueira", the "Program for the Support of Infrastructure" and the 
"Program for Economic Subvention to the Price of Diesel Oil Used by Fishing Vessels".   As to the second question, the "Program for Economic Subvention to the Price of Diesel Oil Used by Fishing Vessels" is still in force in Brazil. Fishing vessel owners or charterees (natural persons or companies); professional fi shermen and fishing industries are entitled to 
this program. Its main objective is to match th e price of diesel oil paid by national fishing 
vessels (after the rebate granted by Federal States in ICMS) to the one paid by foreign vessels. 
The benefit takes the form of a reimbursement of the difference between the diesel oil price paid by the beneficiary in the domestic market and the price paid by fishing vessels in the 
international market. The reimbursement is only made if this difference is below 25%. 
 
(v) Government procurement 
 
 Para. 306 reads as follows; “Brazil has ta ken steps to increa se transparency in its 
government procurement regime, with procurement based on best-price criteria when tendering takes 
place [...] Brazil is not a party to the GPA; join ing it would increase the predictability of its trade 
regime and could result in benefits to taxpayers by  reducing procurement costs, and to domestic 
producers as there are Brazilian firms that could rea listically compete for contracts in foreign 
markets.”   Furthermore, para. 309 states that “[...]In the context of this Review, the authorities indicate 
that becoming a party to the GPA is not currently a priority for Brazil, and that Brazil aims first to 
strengthen MERCOSUR by implementing the Public Procurement Protocol, which has not yet been 
validated by the parties involved (Chapter II)”.  Could Brazil please elaborate on their policy towards the GPA and why joining th e GPA is not a current priority? 
  WT/TPR/M/212/Add.1 
 Page 117 
 
 
 ANSWER: 
  Brazil is not considering becoming an  observer of the Committee on Government 
Procurement .  
  Para. 326 states that “[...] PETROBRAS has its own procurement regulations. PETROBRAS 
has a "closed" procurement system, whereby it can c hoose and invite three companies to participate 
in a tender. The authorities indicate that a new la w specific to procurement by public enterprises is 
being drafted and is expected to be sent to Congress by mid-2009 [...]”.  Could Brazil please provide 
more information regarding this new law? Will PETROBRAS be included? 
 
ANSWER:   Although Brazil is not party of any international agreement on Government Procurement aside from the MERCOSUR’s Public Procurement Protocol, its system of 
Government Procurement is one of the most transparent systems. Brazil intends to keep 
promoting further transparency. Nevertheless, Brazil currently gives priority to the full 
implementation of the MERCOSUR’s Government Procurement Protocol.  
 
The Bill of amendment to the General Law of Tenders and Contracts is under revision 
in the Brazilian Senate. It seeks primarily to enhance efficiency in public tendering, by a 
broader use of Information Technology resources in bids. More specifically, the bill seeks, 
among other provisions, to foster the use of inverse auction as a tendering modality and the use of the official website as a means to publish information concerning tenders. There is no reference to procurements conducted by PETROBRAS. 
 
IV. TRADE POLICIES BY SECTOR (2) AGRICULTURE AND FORESTRY 
 
 Para. 5 states that  “[...] However, a relatively large num ber of programmes are in place to 
assist agricultural production, w ith many aimed at providing low cost credit especially to small 
farmers.  Although possible by norm, the authorities have noted that, in practice credit preferences 
are not greater for Brazilian-owned than for forei gn-owned companies. Howeve r, in some cases, 
credit preferences can be contingent on the use of domestic inputs. [...]”.  
 
 Could Brazil please provide a description of the programmes for credit preferences 
contingent on use of domestic inputs, including information on how these programmes comply with 
article 3 of the Agreement on S ubsidies and Countervailing Measures? 
  
ANSWER: 
  The policy refers to the features of FINAME Agriculture credit lines, managed by BNDES, which are fully described in Secretariat’s TPR report. 
 
(6) SERVICES (iv) Air transport 
 
 Para. 186 reads as follows; “Brazil's co mmercial aviation industry continued to face 
problems during the period under review.  Market con centration remains high, with two companies 
controlling 92% of the domestic passenger market in  2007. This may reflect in part the requirement 
for domestic air transport to be provided only by companies managed by Brazilians and in which 
80% of the voting rights are in Brazilian hands. Al l major airports are owned and operated by the WT/TPR/M/212/Add.1 
Page 118  
 
 State.  Moreover, in spite of revisions to make th em more flexible, Brazil's bilateral air agreements 
establish relatively strict conditions for the provision of services [...].” 
 
 Para. 194 states that “[...] None of the bilateral agreements signed or in force can be 
considered an open skies agreement. However, the authorities note th at the Government has been 
proposing more flexible agreements to its trading partners”. 
  Could Brazil please provide some details  regarding the more flexible agreements it is 
proposing to its trading partners in the air transport sector?  
 
ANSWER:   Brazil has no plans of opening the domestic  market for foreign airlines in the near 
future. However, there might be some changes in  the level of permitted foreign investiment in 
Brazilian airlines as the result of some bills under discussion in the Congress., The public 
policies for the Civil Aviation sector in Brazil are under a comprehensive process of revision. 
Brazil has just recently published its new Nation al Civil Aviation Policy. DECREE Nº 6.780, 
February 18, 2009. 
 
NORWAY (SECOND BATCH ) 
 
WT/TPR/S/212 
 IV Trade policies by sector 6 Services (v) Maritime transport and ports 
 
 Para. 210 provides information about the tax on maritime freight and states that; “The tax 
does not apply to operators from countries with wh ich Brazil has agreements in this respect. Norway 
would appreciate receiving a list of which countries Brazil has such agreements with.  ANSWER: 
 
 Agreements that specifically foresee the exem ption have mostly been negotiated in the 
LAIA context. 
 
 Para. 218 states;  “with the exception of bilateral agreements and certain Brazilian-flag 
reservations for government-controlle d cargoes, there are no institutional arrangement for cargo 
allocation”.  At the same time para. 220 indicates that  crude oil imports and exports and derivates 
produced in Brazil must be trans ported by Brazilian flagged vessels. The information on this point 
seems to be contradictory and we would like to ask Brazil to provide a clarific ation on this matter. 
 ANSWER: 
 
 Pargraph 220 of the Secretariat Report do es make a mistake. Only crude oil exports 
must be transported by Brazilian flagged vessels dully authorized.  
 
 According to para. 219 waivers from the rest riction on foreign flag vessels in cabotage trade 
might be granted. Could Brazil elaborate on the crit eria used for defining in time and space “when a 
Brazilian-flag vessel is not available”? We would also appreciate information on the number of 
waivers that are granted annually.      WT/TPR/M/212/Add.1 
 Page 119 
 
 
 ANSWER: 
  A Brazilian-flag vessel is deemed “not available” when, in a process regulated by law, Brazilian navigation companies dully authorized do not respond to a request from a Brazilian 
company aiming to freight a foreing flag vessel for cabotage.  
 
 Para. 230 states the following; “Brazil applies a lighthouse fee (TUF), established by 
Decree-Law No. 1,023/69, and regulated by Decr ee No. 70,198 of 24 February 1972 and Decree 
No. 878 of 22 July 1993.  The TUF is applied onl y to foreign flag vessels, each time a foreign ship 
uses a port in a different Brazilian state.  The fee is increased by 50% for ships over 50,000 tonnes, 
and by 100% for ships over 100,000 tonnes”.  
  Could Brazil explain why it chooses to apply such fee on foreign flag vessels, and provide information if some foreign flag vessels are exempted from paying the fee? We would also like to 
know the amount of the revenues that are coll ected on an annual basis and to which degree the 
budget for the lighthouse system is funded through the fee. 
 ANSWER:   TUF has been charged for the supply of a proper maritime sinalization service in order to protect navigation. The amount collected is us ed to maintain the capacity to provide such a 
service and expand it. TUF is exempted on foreign  flag vessels from countries with which Brazil 
has signed bilateral agreements in that regard. 
 
AUSTRALIA 
 
WT/TRP/S/212 
II. Trade Policy and Investment Policy Regime (1) Overview 
 
1. The Secretariat’s Report (Paragraph 1) not es that Brazil has made  a large number of 
notifications to the WTO but certain notification re quirements are yet to be fulfilled, for instance 
under the Agreement on Agriculture.  Can Brazil i ndicate when it will provide WTO members the 
opportunity to review its outstanding notifications  required under the Agreement on Agriculture? 
 
ANSWER: 
 
 Brazil has already circulated its pending no tifications on Export Subsidies and Market 
Access for the years 2002 to 2007. The Secretaria t is finalizing their formating in order to 
distribute to Members.    The Brazilian Government is finalizing the compilation of information regarding notifications on domestic support for the years 2005, 2006 and 2007.  Brazil intends to circulate 
them by the end of the first semester of 2009.  
(4) Foreign Investment Regime 
 
2. The Secretariat’s report (Paragraph 26 on page 17) refers to restriction on the purchase of 
property by foreigners in border areas and on the pu rchase of land in other parts of Brazil beyond 50 
undefined ‘exploration units’.  Can Brazil provide further information on these restrictions on land 
ownership by foreigners in border areas and other parts of Brazil, includ ing a definition of the 
exploration units referred to in Paragraph 26? 
 WT/TPR/M/212/Add.1 
Page 120  
 
 ANSWER: 
  Foreign natural or juridical persons may acquire land property in the same way as nationals. Nevertheless, in border areas, there are restrictions related to national security 
concerns, such as the prohibition of the purchase of land by natural persons in the area up to 
150 Km from the borders and in sea costal areas.  Regarding the purchase of land in other parts 
of Brazil, law 5709/71, which regulates constituti onal requirements, determines that foreigners 
resident in Brazil or juridical persons authorized to operate in Brazil need authorization to own land. The form of authorization depends on the size of the area to be acquired, expressed in rural units. The size of rural units vary accordin g to the regions of the country taking into 
account different economic and so cio-environmental conditions 
 
(5) International relations 
(ii) Preferential agreements 
 
3. The Secretariat’s report (Paragraph 30 on page  18) refers to several bilateral investment 
agreements that Brazil has signed but are not yet in force due to concerns expressed in Congress 
regarding their constitutionality.  W hat measures are being taken by Brazil to address the concerns of 
Congress with respect to these investment agreements?  ANSWER: 
 
 The agreements have been withdrawn from the Congress approval procedure. 
 
(b) MERCOSUR 
 
4. The Secretariat’s report (Paragraph 40 on page  21) details the exceptions relevant to 
MERCOSUR’s Common External Tariff, noting th e number of tariff lines currently subject to 
exception (100 lines or 0.7 per cent of Brazilian tari ff lines).  Can Brazil provide more detail on the 
value and significance of these exceptions applicable to intra-MERCOSUR trade in the context of 
Brazil’s overall merchandise trade? 
 
ANSWER:   The exceptions to Mercosur´s Common Extern al Tariff are applicable only to extra-
MERCOSUR trade. No tariffs are applied in the intra-Mercosur trade of products that comply 
with the rules of origin. 
 
 Can Brazil provide an update on the arrangeme nts in place for the full membership of 
Venezuela in MERCOSUR, including tariff l evels and exceptions that may be applicable? 
 
ANSWER: 
 
 Conditions for accession are established in the Accession Protocol, which can be found 
at the following link: http://www.mercosul.gov. br/tratados-e-protocolos/protocolo-de-adesao-
da-republica-bolivariana-da-venezuela-ao-m ercosul/protocolo-de-adesao-da-republica-
bolivariana-da-venezuela/. 
 
 Can Brazil provide an update on MERCOSUR’s program of negotiating preferential trade 
agreements, particularly with the European Union?   WT/TPR/M/212/Add.1 
 Page 121 
 
 
 ANSWER: 
  Mercosur finalized trade agreements with Israel, India and SACU, and has ongoing 
trade negotiations with the Gulf Cooperation Council, Egypt, Jordan, Turkey and Morocco. 
The Association Agreement being negotiated with the European Union includes a chapter 
establishing a free trade area between the two re gions; no negotiating round has been conducted 
since October 2004. 
 
III. Trade Policies and Practices by Measure 
(2) Measures directly affecting imports 
 
6. We also note that Brazil retains high non-p referential (MFN) tariffs for motor vehicles of 35 
per cent and 18 per cent for parts.  Motor vehicles are also subject to non-tariff imposts such as 
federal value added taxes, including industrial product s tax  (up to 35 per cent for vehicles), a social 
integration programme and finance social security ta xes.  Would Brazil provide further information 
on its intention to address MFN tariffs and oth er trade barriers applied to automotive products? 
 
ANSWER: 
  MFN tariffs on automotive products are be ing addressed in the context of the Doha 
Round negotiations. 
 
(vii) Prohibitions, Restrictions and Licencing 
 
7. The Secretariat’s report (Par agraph 105 on page 44) refers to Brazil’s use of automatic and 
non-automatic import licences in the context of Brazil’s  measures to restrict imports.  In addition, we 
also note that Brazil briefly introduced then w ithdrew a requirement to obtain an automatic licence 
for the importation of products in 24 sectors, a ccounting for around 60 per cent of Brazil's imports.  
What steps are being taken by Brazil to rescind or limit the use of such non-tariff measures? 
 
ANSWER: 
 
 The Brazilian licensing regime is not aimed at restricting imports. The Foreign Trade 
Chamber (CAMEX), the government body responsi ble for coordinating Brazilian foreign trade 
policy, analyses licensing requirements and discu sses alternative solutions against the backdrop 
of administrative law, fundamental principles of  reasonability, proportionality, public interest 
and efficiency. Non-automatic licensing is au thorized only when considered technically 
necessary, legally-based, and in th e absence of a better alternative. 
  In order to minimize the impact of licen sing requirements on Brazilian imports, all 
governmental agencies involved in import contro ls are periodically required to review their 
licensing requirements and to reduce their contro ls to the minimum necessary, considering the 
principles of reasonability, proportionality, publ ic interest and efficiency. As an additional 
measure to minimize the impact of licensing on trade, Resolution CAMEX n. 70/2007 
introduced a new process whereby the merit and the legality of agencies’ demands for products 
to be subject to licensing are checked in order to avoid the occurrence of multiple authorizations 
and inspections, with a view to saving time and costs. 
 
(3) Measures directly affecting exports Export finance, insurance and guarantees 
 
8. In this Section, the Secretariat’s Re port (Paragraphs 209-220 on pages 63-65) notes that 
Brazil implements a number of other export financ ing, insurance, and guarantee schemes aimed at WT/TPR/M/212/Add.1 
Page 122  
 
 helping producers and exporters to access credit.  The Export Financing Programme (PROEX) is one 
of Brazil’s main tools to support exports.  The programme is aimed at providing access to credit, at 
preferential conditions, to companies that would, oth erwise, have difficulties obtaining it, or would be 
able do so only at the high market interest rates in the domestic economy.  We understand that agricultural producers may benefit from generally av ailable export credit programs.  Could Brazil 
indicate the total value of the officially supporte d agricultural export credits that it offers under its 
export support programs?  Can Br azil also provide information on which products and the terms on 
which the export credits are subsidised?   ANSWER: 
 
 Brazil does not grant officially supported export credits through the Export Financing 
Programme (PROEX) for non-processed agricul tural products. With respect to processed 
agricultural products, the levels are low a nd the information is not readily available. 
 
IV. Trade Policies by Sector 
(2) Agriculture and Forestry (iii) Domestic support measures (a) Rural credit programmes 
 
9. The Secretariat’s Report (para 16 and 17 on page 99) and information contained in Table 
IV.1 on page 99 show the impact of domestic suppor t measures for agriculture, including quantum of 
loans extended to the agricultural sector through ru ral credit programs.  What percentage of loans 
made under rural/agricultural credit schemes have repayments rescheduled because of non-payment 
and default? 
 
ANSWER:   Brazil does not have updated information on payment rescheduling. However, in 
December 2006 the amount of repayments subject to rescheduling constituted 42.9% of the total 
rural debt. 
 
 How are producer supports, such as the Policy of Guaranteed Minimum Prices targeted at 
family farmers?  ANSWER:  
 The Policy of Guaranteed Minimum Prices is addressed indistinctly to all agricultural 
producers. However the large volumes involved in  each operation make the participation of 
family farmers not feasible in general.   What percentage of Brazilian farms are family run enterprises?  
 
ANSWER: 
 
 According to the last Brazilian Agrarian Census, dated from 1995/ 1996, approximately 
85% of the Brazilian farms were classified as family enterprises; however, these enterprises 
respond for 30.5% of the agricultural area, and for 37.9% of the production.  
  WT/TPR/M/212/Add.1 
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 (6) S ERVICES  
(ii) Financial services 
 
10. Changes to Brazilian insurance legislation contained in Complementary Law No. 126 of 
15 January 2007 make it possible for the ratification of the Fifth Protocol on Financial Services. 
Would Brazil provide an u pdate about ratification of the Protocol ?  In particular, we would welcome 
advice about the nature of the procedural matters preventing Brazil’s ratification at this time and why 
it would not be possible to indicate a timeframe for its ratification. 
 
ANSWER: 
 
 As it was stated in the last regular m eeting of the Committee on Trade in Financial 
Services of the WTO, in December 2008, due to pr ocedural matters the Fifth Protocol has not 
yet concluded its ratification process. A specific timeframe  for the completion of the process 
cannot be determined. 
 
(iii) Telecommunications 
 
11. We note assessments in both Brazil’s and the WTO Secretariat’s reports that Brazil’s 
regulatory arrangements in the telecommunications sector follow international best practice in the 
area.  We note this has provided international investors with a high degree of confidence.  Could 
Brazil provide advice about its position in relatio n to signing the Telecommunications Reference 
Paper? 
 
ANSWER: 
 
 Brazil is considering the adoption of the Te lecom Reference Paper in its final offer in 
Services in the Doha Round. 
 
Additional services question with reference to Brazil’s Report WT/TPR/G/212 
IV. TRADE INSTITUTIONAL AND REGULATORY FRAMEWORK 
(2) S ECTORAL ISSUES  
(iii) Services  
 
12. We read with interest in Brazil’s report on the development of a computerised system, 
denominated SISCOSERV (Integrated System fo r Foreign Trade in Services), to improve services 
statistics and data gathering for statistics in the forei gn trade of services, covering all four modes of 
supply in accordance to the General Agreemen t on Trade in Services (GATS) of the WTO. 
  We are also interested in the elaboration of the Brazilian Nomenclature of Services, with nine 
digits.  The adoption of a common nomenclature w ill allow the harmonization of definitions about 
foreign trade in services regarding commercial, fisca l and exchange policies.  The first version of a 
proposal on the nomenclature will be submitted to public scrutiny in the first semester of 2009. 
 
 Australia – and other WTO members – have strong interests in robust international trade in 
services statistics.  Would Brazil provide additional information about SISCOSERV and its 
Nomenclature of Services, and share its experience with Members? 
 
 
  WT/TPR/M/212/Add.1 
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 ANSWER: 
  The Integrated System of Foreign Trade in Services (SISCOSERV) is being developed, under the general oversight of the Department of  Commerce and Service Policy of the Ministry 
of Development, Industry and Foreing Trade with  a view to (i) make available periodical and 
disaggregated statistics on the Brazilian foreign trade in services in the four modes of supply, 
(ii) propose, keep up with and assess public polic ies for service sector, (iii) support international 
trade negotiations on services. The conclusion of the export module is expected for 2009 and the 
import one for 2010.   
 An important step of this process is a crea tion of a new nomenclature on services which 
uses the Central Product Classification (CPC) as  a reference. The final adoption of a Brazilian 
Nomenclature of Services currently awaits th e results of the public consultation process, 
postponed until March 31st, 2009.  
 Further information can be found on the following website 
www.desenvolvimento.gov.br. 
 
COLOMBIA 
 
I. ENTORNO ECONOMICO 
6) Evolución del comercio y las inversiones 
ii) Comercio de servicios 
 
 De conformidad con el párrafo 174: Los servicios de valor añadido no se consideran 
servicios de telecomunicaciones per se;  y los pr oveedores de esos servicios son tratados como 
"usuarios de servicios de telecomunicaciones".  Si n embargo, el suministro de servicios de valor 
añadido debe acompañarse de un servicio de teleco municaciones reglamentado por la ANATEL;  por 
ejemplo, el suministro de servicios de banda ancha requiere una autorización para el servicio de 
telecomunicaciones que hace posible la conexión, co n independencia de la tecnología que se utilice. 
 1. De acuerdo con lo anterior, se entiende que los servicios de valor añadido no están 
reglamentados en Brasil y no se consideran servicios de telecomunicaciones, pero les aplica el 
régimen de telecomunicaciones y para suministrarlos se deban acompañar de  un servicio de telecomunicaciones reglamentado, es correcto este en tendimiento?.  Que se consideran servicios de 
valor añadido, existe alguna definición?  Cómo se autoriza a un proveedor de este tipo de servicios, 
cuando requiera suministrar un nuevo servicio relaci onado con las tecnologías de Información y las 
Comunicaciones y ese nuevo servicio no esta reglamentado?  
 ANSWER:   Value-added services are not defined as te lecommunication services according to the 
Brazilian legislation. Any value-added services th at perform equivalent to a regulated service 
shall be subject to the regulations applicable to the regulated service. 
 
II REGIMEN DE POLITICA COMERCIAL Y DE INVERSIONES 
4) Régimen de inversión extranjera  
 
Párrafo 18. El Gobierno federal ha establecido prog ramas y mecanismos para facilitar la inversión 
extranjera, especialmente en sectores que se c onsidera que ayudan a mejorar la competitividad 
internacional del Brasil, promover el crecimiento a largo plazo y lograr lo s objetivos del programa 
de crecimiento acelerado del Gobierno en el marco de l último Plan Plurianual.  Con arreglo al nuevo 
Plan Plurianual para 2008-2011, los esfuerzos de  política siguen orientándose hacia la mejora del  WT/TPR/M/212/Add.1 
 Page 125 
 
 
 entorno empresarial y normativo para la inversión.  Las medidas del Gobierno federal tienen por 
objeto fomentar la inversión en infraestructura y en  sectores de uso intensivo de tecnología.  No 
obstante, el Gobierno federal no ofrece incentiv os específicos a los inversores extranjeros. 
 
ANSWER: 
 
 The Federal Constitution guarantees Nati onal Treatment for foreign investment 
incorporated in Brazil. Moreover, Brazil na turally offers several in centives for foreign 
investors, such as a clear legal framework, vas t market size and labor force, economic stability 
and abundant natural resources. In the light of  the Brazilian Constitution, foreign companies 
established according to Brazilian legislation are submitted to the same treatment as national 
companies.  2. Se solicita mayor claridad respecto de lo previsto en el párrafo anterior, pues no parece 
coherente indicar que el Gobierno federal tiene establecidos programas y mecanismos para facilitar 
la inversión extranjera, si al final se concluye que el mismo Gobierno federal no ofrece incentivos 
específicos a los inversores extranjeros.   Párrafo 30: El Brasil ha firmado 14 acuerdos b ilaterales sobre inversión, y ha negociado dos 
protocolos del MERCOSUR referentes a las inversiones, el Protocolo de Buenos Aires (referente a las inversiones procedentes del exterior)  y el Pr otocolo de Colonia (referente a las inversiones 
dentro del MERCOSUR). No obstante, ninguno de est os acuerdos está en vigor, debido a que el poder 
ejecutivo no presentó el acuerdo al Congreso (por ej emplo, el Protocolo de Colonia) o porque lo 
retiró antes de que el Congreso lo votara (por ejem plo, el Protocolo de Buenos Aires y el acuerdo 
bilateral sobre inversión concluido con Francia).  Ello pone de manifiesto las importantes 
preocupaciones expresadas en el Congreso respecto de la constitucionalidad de los acuerdos en 
relación con cuestiones como la defensa del princi pio de plena igualdad para los inversores en el 
marco de la ley.  3. ¿Que otros aspectos de los Acuerdos de  inversión firmados y negoc iados por Brasil podrían 
entrar en conflicto con la Constitución?   
ANSWER: 
  Besides the issue of the potential discrimina tory treatment against national investors in 
the face of investor-State arbitration clauses, othe r specific problems were identified, such as the 
obligation of prompt indemnization in case of expropriation, given that the Constitution 
establishes that indemnization for expropriation for agrarian reform purposes must be given in 
the form of agrarian reform titles. 
 
5) Relaciones Internacionales 
ii) Acuerdos preferenciales c) Otros acuerdos comerciales 
 
4. Párrafos 46 y 50: Para cuando se prevé la puest a en vigor del Acuerdo de Libre Comercio 
entre MERCOSUR e Israel, y el Acuerdo com ercial preferencial con la Unión Aduanera 
Sudafricana? 
 
ANSWER:   The agreement signed between Mercosur a nd Israel has yet to be approved by the 
Brazilian National Congress. It is not possible fo r the Federal Government to establish when the 
National Congress will finalize its evaluation of the said agreements. WT/TPR/M/212/Add.1 
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III. POLITICAS Y PRÁCTICAS COMERCIALES POR MEDIDAS 
2) Medidas que afectan directamente a las importaciones i) Procedimientos aduaneros y documentación 
 
5. En el párrafo 10 se hace referencia a los age ntes de aduanas, ¿Podría Brasil informarnos si 
es obligatorio el uso de los agentes de aduana para la realización de las operaciones de comercio 
exterior (importación – exportación)? ¿Cómo ha sido la  experiencia de Brasil frente a los agentes de 
aduanas?  
 
ANSWER:   The engagement of customs brokers is not mandatory in Brazil for international trade 
operations.  According to article 808 of the Decree nº 6.759/20009,  the importer, the exporter or 
any interested party may be represented, for customs clearence purposes, by any director or 
employee working exclusively for the interested party,  as long as properly authorized in writing. 
 
 The activities of customs brokers are regulated, in Brazil, by the Decree nº 646 of 1992 . 
 
6. En el párrafo 18, se hace mención a un “can al gris” que forma parte del sistema de 
administración de riesgos para el despacho de la mercancía, ¿Podría Brasil ampliar la información 
sobre el funcionamiento y porcenta je de éxito de dicho canal?  
 ANSWER:   The “grey channel” involves goods being subj ect to verification of the documents, 
physical inspection, and a special provision to v erify evidence of fraud, including those relating 
to the declared price of the merchandise. The customs valuation verification does not occur 
during the customs clearance procedure. This veri fication is a post clearance procedure, as 
established in article 31 of the IN SRF No. 327, of 9 May 2003.   Specific statistics concerning the effectiven ess of the grey channel are not presently 
available. Data from 2007 indicate  that 0.2% of all ID were pro cessed through the grey channel 
 
iii) Normas de origen 
 
7. En el párrafo 38 indican que en el marco  del Acuerdo Can-Mercos ur, las prorrogas en 
materia de origen acordadas con Colombia y Ec uador no han sido ratificadas por el congreso.  Debe 
surtirse necesariamente este proceso?, En caso de no ser aprobado por el Congreso, se procede a 
multar al importador que se benefició  de la condición preferencial? 
 
ANSWER: 
 
 El Acuerdo de Complementación Económica Nº 59, que entró en vigor entre Brasil y 
Colombia el día 1º de febrero de 2005 y entre Br asil y Ecuador el día 1º de abril de 2005, no 
necesitó ser ratificado por el Congreso de Brasil. 
 
viii) Reglamentos técnicos y normas 
 
8. Según el párrafo 129: “Se estimula a los organismos públicos a que se ocupen 
preferentemente de las cuestiones relativas a la seguridad, la salud, el medio ambiente y la 
protección de los consumidores. Pero no existen di sposiciones obligatorias de  aplicación general con 
respecto a la elaboración de reglamentos técnicos ; cada entidad se encarga de adoptarlos siguiendo  WT/TPR/M/212/Add.1 
 Page 127 
 
 
 sus propios procedimientos internos” ¿Significa lo an terior que se puede dar el caso de reglamentos 
técnicos brasileños que no se basen en lo s objetivos legítimos del Acuerdo OTC? 
 ANSWER:  
 Brazil develops its technical regulations pursuing the legitimate objectives foreseen in 
article 2.2 of the TBT Agreement. Brazil’s te chnical regulations are generally based upon 
international standards and on performance criteria. 
 
9. Qué medidas prevé el gobierno de Brasil par a superar el problema según el cual la OMC no 
dispone de estadísticas sobre el número de reg lamentos técnicos actualmente vigentes ni del 
porcentaje notificado a la Organización? 
 
ANSWER:  
 
 Brazil has initiated efforts to compile Brazil’ s technical regulations with an aim to create 
a national database. There is no timefr ame for the conclusion of this task. 
 
10. Según el párrafo 144 del citado documento los proveedores extranjeros deben tener un 
representante legal en el Brasil encargado de la expedición de la declaración de conformidad. La 
obligación de disponer de un representante legal en  Brasil significa un costo adicional para los 
proveedores extranjeros frente a los nacionales que  podría considerarse un obstáculo innecesario al 
comercio. ¿No han pensado las autoridades brasile ñas en una medida alterna que no implique la 
permanencia de un representante legal  de los proveedores en Brasil? 
 
ANSWER: 
 
 According to the Brazilian Civil Code the le gal representative is necessary to represent 
the foreign supplier in legal issues related to the supplier’s claims in Brazil.   A legal representative is necessary to repres ent the foreign supplier in legal matters. The 
legitimate objective is the protection of consum ers and the environment. In case of health or 
environmental damage caused by the products  covered by a supplier’s claims, the legal 
representative can be contacted by court officials. 
 
11. ¿Brasil tiene monopolio s privados de certificación? 
 
ANSWER:   No, any conformity assessment body may apply for accreditation. The Brazilian system 
is part of IAF, EA and IAAC 
 
12. ¿Todas las pruebas obligatorias se pueden realizar en laboratorios independientes? 
 
ANSWER: 
  Yes, as long as the lab is accredited. The Brazilian system is part of the ILAC. 
 
ix) Medidas sanitarias y fitosanitarias 
 
13. Según el párrafo 160, en la Resolución RD C ANVISA Nº 181/08, de 2008, se establecen las 
normas sobre la vigilancia sanitaria de los produc tos importados, con inclusión de los alimentos WT/TPR/M/212/Add.1 
Page 128  
 
 elaborados. Se fundamenta esta  norma en estándares int ernacionales? De ser así, en cuáles? En caso 
contrario, cuál es el soporte técnico y científico de la medida? 
 
ANSWER: 
 
 The correct measure is A NVISA 81/08. It implements Law 6360/76 and merely compiles 
requirements for import procedures. It does not establish additional requirements. All technical 
regulation is contained in the regulation for specific products. 
 
14. Tal como dispone el párrafo 169 en el pro ceso de evaluación del riesgo se tiene presente la 
información técnica recibida de terceros países y, por  ese motivo, su duraci ón depende sobre todo de 
la rapidez con que se obtenga y evalúe esa inform ación.  En ese entendido, Brasil acepta los 
resultados de evaluaciones de riesgo llevadas a ca bo por terceros países? Dicha información podría 
acelerar el proceso interno? Sobre que bases se est ablece el plazo para llevar a cabo la evaluación 
de riesgo una vez se recibe la inform ación de la parte exportadora?  
 
ANSWER: 
  Brazil takes into account the results from ri sk analysis and other technical and scientific 
studies sent by third countries, but those are not the only issues considered in a risk analysis. All 
information must analyzed in light of its degree of uncertainty, as recommended by the SPS 
reference organizations. However, informatio n provided by other countries are valuable and 
are taken into account.    As for the period needed to finish a risk analysis, Brazil, as many other countries, does 
not have a law defining a specific time (minimal or maximum) to conclude a risk assessment. It 
would be willing to discuss this issue at the SPS Committee. The time limit will depend on the 
complexities involved in each case, as well as the specifics of the product, its plagues and associated illnesses.   If it is a product from plant origin, the ri sk assessment will be carried out according to 
IPPC standards. If it is a product from animal  origin, the risk assessment will be carried out 
according to OIE and Codex Alimentarius guidelin es. It is important to highlight that neither 
IPPC, nor OIE, nor Codex Alimentarius fix mi nimum or maximum periods to conduct a risk 
assessment.   In some cases, there is no a ccess to scientific information about a specific pest or disease 
occurring in the territory of an exporter count ry. In these cases, Brazil requests information but 
does not always receive timely replies from the countries involved.  
 
4) Medidas que afectan a la producción y el comercio 
vi) Derechos de propiedad intelectual b) Marco institucional y jurídico 
 
 Según el párrafo 334,” El Grupo Interministeri al sobre la Propiedad Intelectual (GIPI), que 
funciona en la órbita de la Cámara de Comerci o Exterior (CAMEX), creado en agosto de 2001, está 
encargado de promover la coordinación interminis terial con respecto a cuestiones relacionadas con 
la política de propiedad intelectual , proporcionar contribuciones técnic as sobre cuestiones relativas 
a la propiedad intelectual que se plantean en negociaciones bilaterales, regionales o multilaterales, y 
analizar propuestas de leyes y reglamentos sobr e propiedad intelectual.”  15. ¿Qué entidades 
conforman el Grupo Interministerial  sobre Propiedad  Intelectual?  
   WT/TPR/M/212/Add.1 
 Page 129 
 
 
 ANSWER: 
  The Interministerial Group on Intellectual Property is integrated by the following ministries and governmental entities: (i) Ministry of Agriculture; (ii) Ministry of Science and Technology; (iii) Ministry of Culture; (iv) Ministry of Development, Industry and Foreign 
Trade; (v) Ministry of Justice; (vi) Ministry of  Foreign Affairs; (vii) Ministry of Health; (viii) 
Ministry of Economy; (ix) Ministry of Environment; (x) State Secretary of the Presidency of the Republic; and (xi) Secretary of Strategic Affairs of the Presidency of the Republic.   En el párrafo 337 se informa que: “Al parecer, la tramitación de las solicitudes de patentes 
en un período de tiempo razonable sigue planteando un reto.  El plazo medio del trámite para las 
patentes es de siete años.  El Brasil mantiene un archivo de patentes internacionales (Banco de 
Patentes do INPI), en que se conservan descripciones técnicas completas que pueden ser consultadas.  
El INPI considera que ésta es una valiosa fuente de información tecnológica y de transferencia de 
tecnologías para las empresas nacionales.”  16. C uáles son los mecanismos de transferencia de 
tecnología previstos en la normativa de Brasil?  
ANSWER: 
  INPI is undergoing a process of restructuring.  The main goal is the reduction of average 
pendency for patent applications to 4 years by  2014. In 2009, Brazil expects average pendency 
will start to decrease. 
 Outline of the restructuring program of INPI  (I) Increase in the examination ca pacity and examination quality  
a) Number of examiners (2008/2004): 443/112  
b) Education and training of examiners:  -Requirement of Master Degree  -Full EPO trainning program (24 months)  -Supplementary training in more complex fields  
(II) Process streamlining  
a) EPOQUE and full PCT-required documentation available on-line for examiners b) Complete and detailed examination guidelines (under preparation) c) Quality control and independent administra tive revision  (in place as from january 
2009) 
 
(III) Backlog reduction   - Applications filed till dec 2004 – first examination till oct 2011 - Applications filed as from  2010 – 4 years from filing  
 
 Regarding transference of technology, the relevant provisions of the Brazilian Industrial 
Property Law are the following:    Article 240. Article 2 of Law no. 5,648 of  December 11, 1970, shall henceforth read as 
follows:  "Article 2. The principal purpose of the IN PI is to enforce, at the national level, rules 
regulating industrial property, taking into account  its social, economic, legal and technical role, 
and to offer comments regarding the advisability of signing, ratifying and terminating conventions, treaties, accords, and agreements on industrial property."  WT/TPR/M/212/Add.1 
Page 130  
 
  Article 211. The INPI shall register the co ntracts involving transfer of technology, 
franchising and similar contracts in order that they may become effective with regard to third 
parties.   Sole Paragraph. The decision related to th e applications for registration of contracts 
referred to in this Article shall be issued within a period of 30 (thirty) days of the date of the 
application for registration.  I. ENTORNO ECONOMICO y IV. POLITICAS COMERCIALES POR SECTORES 6) Evolución del comercio y las inversiones y 6) Servicios  
ii) Comercio de servicios y vi) Servicios profesionales  
 Párrafos  36:  Tradicionalmente, el Brasil a rroja déficit en los servicios, que ha venido 
aumentando con rapidez desde 2004 debido a que las importaciones han crecido a un ritmo mayor 
que las exportaciones.  En 2007, las exportaciones de servicios (ingresos) totalizaron 23.810 millones 
de dólares EE.UU., mientras que las importacion es (pagos) ascendieron a 36. 860 millones de dólares 
EE.UU. (cuadro AI.5).  Durante el período objeto de examen, los mayores déficit se registraron en 
los sectores del arrendamiento de e quipos, el transporte y los viajes.   El déficit en el transporte 
aumentó considerablemente, ya que los pagos se duplicaron con creces entr e 2003 y 2007, reflejando 
la menor participación de las líneas aéreas brasileñas en el mercado mundial de los viajes.  El sector 
de los viajes pasó a ser deficitario en 2005, debido  principalmente al brusco aumento de los pagos 
efectuados por los brasileños que viajan al extranjero .  En cuanto a los demás servicios, el Brasil 
también registra un déficit tradicional, a excepción de los servicios profesional es y técnicos, en los 
que registró un superávit que fue aumentando durante el período 2003-2007 y    Párrafo 233. Las exportaciones de servici os profesionales y servicios prestados a las 
empresas del Brasil alcanzaron un valor total de 10.100 millones de dólares EE.UU. en 2007, 
mientras que el valor de las importacion es fue de 3.800 millones de dólares EE.UU. 
  Según los párrafos 36 y 233, citados anteriorme nte, Brasil ha sido un país tradicionalmente 
deficitario en materia de servicios, excepto los servicios profesionales, en los que registró un 
superávit durante el periodo 2003-2007. Podrían exponer que tipo de medición realiza el Banco 
Central de Brasil sobre este segmento de servicios? En  que consiste el seguimiento, existen encuestas 
a los profesionales o registros administrativos  que dejen conocer que servicios profesionales 
exportan?  ANSWER: 
 
 The Central Bank of Brazil follows the IT RS (International Transactions Reporting 
System), which measures individual balance of payments, regarding cash and non-cash 
transactions through domestic and foreign  bank accounts. There are no surveys or 
questionnaires to the professionals, but the statis tics are compiled from forms submitted to by 
domestic banks to the compilers.  
 
 The system categorize the transactions in : mail orders; self-employed remuneration; 
installation and maintenance of administrative offices and real estate rental; participation in 
fairs and exhibits; professional athlete’s transfer fees; publicity; architectural engineering and others; installation/implementation of technical and economic services. 
 
 Enterprises and not individuals mostly provide these services. 
  WT/TPR/M/212/Add.1 
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 AGRICULTURA 
Numeral 64: Impuestos internos  
 
 Cómo aplica Brasil sus impuestos y exenciones por  parte de los Estados sin que se vulnere el 
Trato Nacional? En especial cuando el informe de  la Secretaría menciona que “determinados estados 
establecen exenciones del ICMS con respecto a bi enes producidos y vendidos dentro de sus 
respectivos territorios, pero aplican plenamente el tipo de ese impuesto a los productos importados y 
a los procedentes de otros estados.”    ANSWER: 
 
 The ICMS falls under the competence of States. Each State determines the duty and 
how it is applied. The Tax Reform Bill, presen ted by the Federal Government, is aimed at 
reducing the complexity of the ICMS legislatio n. Brazil does not consider that ICMS has a 
particular impact on premium imported goods. 
 
Numeral 67: Impuestos interestatales y otros  
 
 No es claro como es la aplicación de “otras ca rgas aduaneras” que incluyen impuestos sobre 
transporte, los llamados derechos  de SISCOMEX y los posibles derechos antidumping? Podría 
explicar Brasil estas cargas?   
 
ANSWER:   Fees and other charges like the SISCOMEX charges are applied commensurately with 
the cost of the services rendered. Anti-dumping  duties are applied in addition to ordinary 
customs duties, consistently with GATT 1994 and the Anti-dumping Agreement.  
Numeral 176:  Zonas libres regionales en sa nitarios es una preocupación de la UE 
 
 Existe avance por parte de Brasil en el rec onocimiento de la regionalización y de la 
condición de zona libre en algunas enfermedades?  
 
ANSWER:   Yes, Brazil is conducting the evaluation of  new applications and reviewing previously 
recognized areas.  
 
CANADA 
Report by the Government (WT/TPR/G/212)
 
 
Part II. General Economic Environment: (2) General Legal and Regulatory Framework; 
(v) Government procurement: paragraph 36, pages 11 and 12:  and;  Report by the Secretariat, 
Part III. Trade Policies and Practices by Meas ure: (1) Overview: paragraph 4, page 26: 
 
 Paragraph 36 mentions that the Government is  moving to pass an amendment to the General 
Law of Tenders and Contracts, and that other change s to the government procurement legislation are 
being considered. As referenced on page 26 of the Secretariat’s Report, a preference is granted to 
domestic suppliers for government procurement tenders in the event of a tie, and the government uses 
a preference margin of up to 10% for micro and small enterprises.  Will these changes address the 
preference in government tenders towards domestic proposals?  
 WT/TPR/M/212/Add.1 
Page 132  
 
 ANSWER: 
  The bill of amendment to the General Law of Tenders and Contracts is under revision in the Brazilian Senate. It seeks primarily to enhance efficiency in public tendering, by a 
broader use of Information Technology resources in bids. More specifically, the bill seeks, 
among other provisions, to foster the use of inverse auction as a tendering modality and the use 
of the official website as a means to publis h information concerning tenders. The proposed 
changes do not address domestic preferences in government tenders. 
 Part II. General Economic Environment: (2) Ge neral Legal and Regulatory Framework; (v) 
Government Procurement: paragrap h 36, page 11:  and;  Secretariat's report: Part III. Trade 
Policies and Practices by Measure, (4) Measures Directly Affecting Production and Trade, (v) 
Government Procurement: paragraph 328, page 89:  
 
 Reports from Brazil and the Secretariat stat e that electronic reverse auctions have become 
the main tendering method used in the Federal Government Procurement System.  Could Brazil 
please indicate whether electronic reverse auctions a re used for procurements of varying complexity 
or generally for less complex procurements and whether foreign suppliers and contractors may 
participate on the same basis as domestic suppliers?  
 
ANSWER: 
 
 Electronic reverse auctions are disciplined by  Law nº 10.520/02. According to Article 1º 
of this Law, it may be used for the acqui sition of common goods and services. Common goods 
and services are those whose quality and performa nce standards can be objectively defined in 
the tendering notice. Rules concern ing the participation of foreig n suppliers are the same for all 
tendering modalities, including reverse auctions.    
Part III. Trade Policy Developments (2004-07): (4) Preferential Agreements; (i) Mercosur: 
paragraph 65, page 17: 
 
 In its report, Brazil notes that a seventh round  of liberalization to implement the Services 
protocol in Mercosur is underw ay.  Could Brazil please elaborate on what types of measures (e.g. 
market access, national treatment) the Services prot ocol is liberalizing?  Similarly, what service 
sectors are covered by the agreement and is the structu re similar to the GATS?  Is this schedule of 
commitments or liberalization for the Services protoc ol public information? If so, where would we be 
able to find the information? 
 
ANSWER: 
  The Montevideo Protocol, the fundamental legal framework of the services liberalizing 
process in MERCOSUR, aims at both Market Access and National Treatment measures. On 
September 2008, it has been examined under th e transparency mechanis m of the Committee on 
Regional Trade Agreements. For detailed inform ation see the Factual Presentation elaborated 
by the Secretariat on that occasion (W T/REG238/1). All 12 sectors described at 
MTN.GNS/W/120 are part of the list of commitmen ts. The structure is similar to the GATS. 
The results of the first six rounds of negotiations concluded under the Protocol of Montevideo on Trade in Services can be accessed on the Me rcosur website (www.mercosur.org.uy). Under 
the icon “Decisions”, select the year 2006 and th e results are available by downloading decision 
01/06. 
 
  WT/TPR/M/212/Add.1 
 Page 133 
 
 
 Part III. Trade Policy Developments (2004-07): (4 ) Preferential Agreements; (ii) Mercosur and 
extra-regional agreements: paragraph 73, page 18: 
 
 In its report, Brazil notes that trade negotia tions are underway between Mercosur and Egypt, 
the Gulf Cooperation Council (GCC), Jordan, Moro cco and Turkey.  Is it anticipated that these 
agreements will contain substantive prov isions on trade in services and investment? 
 ANSWER:   The negotiations between MERCOSUR and: a)  Turkey; b) Jordan; c) Morocco; and d) 
Egypt do not include substantive disciplines on in vestment. In the case of Turkey, negotiations 
on trade in services will be considered among the pa rties after the conclusion of the negotiations 
regarding market access for goods. The ne gotiations between MERCOSUR and GCC do 
contain substantive provisions on trade in services. 
 
Part IV. Trade Institutional and Regulatory Fr amework: (2) Sectoral Issues; (iii) Services: 
paragraphs 123 and 124, page 26: 
 
 In its report, Brazil indicates that it is developing a computerized statistical database for 
services and a new nomenclature on services.  Can Brazil elaborate on these two initiatives? 
 
ANSWER:   The Integrated System of Foreign Trade in Services (SISCOSERV) is being developed, under the general oversight of the Department of  Commerce and Service Policy of the Ministry 
of Development, Industry and Foreing Trade with  a view to (i) make available periodical and 
disaggregated statistics on the Brazilian foreign trade in services in the four modes of supply, 
(ii) propose, keep up with and assess public polic ies for service sector, (iii) support international 
trade negotiations on services. The conclusion of the export module is expected for 2009 and the 
import one for 2010.  
 
 An important step of this process is a crea tion of a new nomenclature on services which 
uses the Central Product Classification  (CPC) as a reference. The final adoption of a Brazilian 
Nomenclature of Services currently awaits th e results of the public consultation process, 
postponed until March 31
st, 2009. 
  Further information can be found on the following website www.desenvolvimento.gov.br. 
 
Report by the Secretariat (WT/TPR/S/212) 
Summary Observations: (3) Market Access for Goods; paragraph 14, page xiii: 
 
 Paragraph 14 states that, “Brazil imposes import pr ohibitions on virtually all used consumer 
goods, including motor vehicles, as well as on cert ain grapes and grape juices to be used in the 
production of wine, and wine trans ported in containers larger than five litres.”  Could Brazil please 
provide its rationale for these import prohibitions ?  When does Brazil plan to remove these trade 
measures? 
 
ANSWER:   The import prohibition of used consumer goods is in place mainly for environmental 
and safety reasons, related either to their shor ter life cycle or to their functionality and 
performance characteristics. Regarding the life cy cle of such goods, it is well known that used WT/TPR/M/212/Add.1 
Page 134  
 
 goods have a shorter remaining lifespan than  new goods and therefore become waste sooner 
than the latter. Besides contributing to increase  the generation of wastes in the importing 
countries, importation of used goods may bring together specific health and environmental risks to be assessed in each case.    
 On the short term, there is no plan to a llow the importing of used consumer goods. In 
relation to grape etc. the measure has as an objective to ensure adequate inspection for the 
correct application of health and consume legislation.  
 
Summary Observations: (6) Sectoral Policies; paragraph 33, page xv: 
 
 Paragraph 33 states that “Brazil requires r eciprocity in international maritime 
transportation services. Brazil applies a tax, the AFR MM, on the cost of maritime freight; the rate 
applied on international routes is 25% while that on  cabotage is 10%...Brazil collects a lighthouse fee 
(TUF) exclusively on foreign flag vessels.”  Would Br azil please provide its justification for why the 
fee for international routes is 2.5 times higher than on cabotage?  Could Brazil please explain why an 
additional lighthouse fee (TUF) is charged for fo reign flag vessels when the services are offered on 
the same conditions for national and foreign flag vessels?  ANSWER:  
 The fees of the AFRMM are 25 % for long co urse, 10% for cabotage, and 40% for lake 
and river navigation. They are differentiated in order to take account of the different economic 
situation and market structure of the two sectors.  Part II. Trade and Investment Policy Regime: (5) International Relations; (ii) Preferential 
Agreements: paragraph 41, page 21:  
 
 The report indicates that negotiations for a MERCOSUR automotive policy concluded in 
2000, but this policy "has not fully entered into force ".  Could Brazil please:  a) outline the elements 
of the policy that have not been implemented; and, b) explain why these elements have not been 
implemented? 
 
ANSWER:  
  The intra-Mercosur Automotive Trade Agreeme nt negotiated in 2000 has not come into 
force and is is due do be reviewed.  Trade in the automotive sector is currently regulated by 
bilateral agreements negotiated undar LatinA merican Integration Association - LAIA 
(Argentina-Brazil, Argentina-Uruguay and Brazil-Uruguay) and flows duty free under the conditions foreseen therein.  Part II. Trade and Investment Policy Regime: (5) International Relations; (ii) Preferential Agreements: paragraph 46, page 22: 
 
 The report indicates that MERCOSUR and Israel signed a Free Trade Agreement on 
18 December 2007, which has yet to enter into force.   Could Brazil please:  a) indicate when it 
expects this FTA to enter into force; and,   
 
ANSWER:   The agreement signed between Mercosur a nd Israel has yet to be approved by the 
Brazilian National Congress. It is not possible fo r the Federal Government to establish when the 
National Congress will finalize its evaluation of the Agreement.  WT/TPR/M/212/Add.1 
 Page 135 
 
 
  
b) indicate the number of tariff lines, for ea ch Mercosur and Israel, that are excluded from 
elimination under this FTA and provide an i ndication of which products or sectors are 
accounted for by these exclusions? 
 
ANSWER: 
  No items were excluded from the Agreement, except in the Annex II, that is, the Joint 
Declaration between Argentina and Israel relating to Chapters 29 and 38 of the HS . 
Part III. Trade Policies and Practices by Measure;  (1) Overview: paragra phs 1 to 4, page 26: 
 
 Regarding the guidelines introduced for the adoption of technical regulations:  What are the 
guidelines that Brazil has introduced? Ho w were the guidelines determined?  
 ANSWER: 
 
 The Guide on Good Regulatory Practi ces was approved by CONMETRO (National 
Council of Metrology, Standardization and Industrial Quality) through Resolution n. 5, of 18 December 2007. They resulted from a wide consultation process among concerned 
governmental agencies and other stakeholders.  
 How do these guidelines help to ensure that m odifications to technical regulations do not 
prohibit trade flows?   ANSWER:  
 The Guidelines follow the principles, di sciplines and recommendations of the TBT 
Agreement, promoting, in particular, the use of  international standards and of performance 
based regulations. 
 
Part III. Trade Policies and Practices by Measur e, (1) Measures Directing Affecting Imports, 
(i) Customs procedures and documentation, paragraph 10, page 27. 
 
 Paragraph 10 states that: “Only Brazilian citizen s are allowed to act as customs brokers in 
Brazil.” Will Brazil consider allowing other foreign nati onals to act as customs brokers in the future? 
 ANSWER: 
 
 Any modification in the law is not under consideration at this moment. The service of a cuustoms broker is not strictly required in foreign trade operations.  
 
Part III. Trade Policies and Practices by Measure:  (2) Measures Directly Affecting Imports; (v) 
Contingency measures: paragraph 102, page 44: 
 
 Paragraph 102 indicates that safeguard meas ures can be applied for a maximum of four 
years and are renewable for six years.  Could Brazil please explain how this complies with Article 
7(3) of the WTO Agreement on Safeguards, which reads: "The total application of a safeguard 
measure including the period of application of any provisional measure, the period of initial 
application and any extension thereof, shall not exceed eight years”? 
    WT/TPR/M/212/Add.1 
Page 136  
 
 ANSWER: 
  As a developing country Article 9.2 of th e WTO Agreement on Safeguards applies in the 
case of Brazil. This Article states that “A developing country Member shall have the right to extend the period of application of a safeguard measure for a period of up to two years beyond 
the maximum period provided for in paragraph 3 of Article 7.  
Part III. Trade Policies and Practices by Measur e: (2) Measures Directly Affecting Imports; 
(viii) Technical Regulations and Standards: paragraph 128, page 48:  
 
 The Secretariat report makes ref erence to a number of rec ognition agreements to which 
Brazil is a signatory, including agreements betw een INMETRO and other accreditation bodies which 
recognize the equivalency of each other’s programs.   To what extent does Brazil accept foreign test 
reports and certificates without the n eed for further assessment?  
 
ANSWER: 
  INMETRO is responsible for accrediting certif ying bodies. Those bodies, taking into 
account international standards, can accept as equivalent test results certified by other bodies, 
always in a case-by-case basis, and based on the principle of reciprocity as regards to acceptance of results. 
 
Part III. Trade Policies and Practices by Measur e: (2) Measures Directly Affecting Imports; 
(viii) Technical Regulations and Standards: paragraph 129, page 49:   To what extent is Brazil’s Good Regulatory Prac tice Guide being used by regulatory agencies 
and ministries?  
 ANSWER:   The Guide on Good Regulatory Practi ces was approved by CONMETRO (National 
Council of Metrology, Standardization and Industrial Quality) through Resolution n. 5, of 18 
December 2007. Afterwards, a Plan of Assisted  Implementation of the Guide was approved 
through CONMETRO Resolution n. 3, of 6 May 2008, with an aim to stimulate the adoption of the Guide by Brazilian Regulatory Agencies, thus  contributing to achieve coordinated action 
and harmonization, as regards to the regulatory practices of those agencies.  
 The Plan encompasses measures intended to promote the Guide, as well as to build 
capacity among senior officials of Regulato ry Agencies and managers/technicians directly 
involved in regulatory activity. In this context, five workshops on the Guide were held in 2008. Moreover, the President of INMETRO together wi th the Secretary of Industrial Technology of 
the Ministry of Development, Industry and Commer ce have been meeting with high officials of 
Regulatory Agencies so as to make them  aware of the importance of the Guide. 
 
 Does Brazil have an oversight mechanism in pl ace to monitor its implementation and ensure 
that technical regulations are developed, revised and implemented in accordance with the Guide?  
 ANSWER: 
 
 The CBR (Brazilian Committee on Regula tion) encourages and recommends that 
technical regulations be developed in accordan ce to the Guide, but Regulatory Agencies have 
autonomy to act in accordance to their statutory legislation.   WT/TPR/M/212/Add.1 
 Page 137 
 
 
  The Plan of Assisted Implementation of the Guide foresees activities in 2009 intended to 
monitor the adoption of the Guide by Regula tory Agencies. Several agencies have already 
clearly signaled its adoption.   Does the Guide allow regulat ors to assess whether proposed technical regulations and 
mandatory conformity assessment procedures are cons istent with international trade obligations?  
 ANSWER:   Yes, since the Guide was developed taking into account the guidelines and obligations 
derived from international organizations and agreements of which Brazil is a part. 
  Are there any future plans for Brazil to implem ent a system of regulatory impact assessment? 
 ANSWER: 
 
 Yes. The Guide itself addresses this issue in its item 7.2 and contains specific examples in 
one of its annexes. Moreover, a methodology to  assess the social, envi ronmental and economic 
impact of regulations is already being deve loped, through an agree ment signed between 
INMETRO and the University of São Paulo. When concluded, this methodology will be shared 
with all Regulatory Agencies. 
 
Part III. Trade Policies and Practices by Measur e: (2) Measures Directly Affecting Imports; 
(viii) Technical Regulations and Standards: paragraph 133, page 49: 
 
 Brazil’s extensive application of internati onal standards as the bas is of its regulatory 
program should be lauded.  Could Brazil provide st atistical data showing the number of international 
standards which have been adopted as the basis of t echnical regulations since the last trade policy 
review, as well as the number of regul ations based on national standards?  
 ANSWER:  
 At present, there is no precise statistical data on this subject, but Brazil has initiated 
efforts to compile Brazil’s technical regulations wi th an aim to create a national database. It is 
worth noting that most of the Technical Regu lations issued by Inmetro/MDIC are based upon 
ABNT/ISO/IEC standards. 
 
Part III. Trade Policies and Practices by Measur e: (2) Measures Directly Affecting Imports; 
(viii) Technical Regulations and Standards: paragraph 134, page 49:   Paragraph 134 does not make clear how Mercosur draft regulations are notified to the WTO since the Mercosur customs union is not a WTO me mber.   Do Brazil and the other Mercosur member 
states separately notify the draft regulation and th e final regulation once it has come into effect? 
 
ANSWER:   Yes, each State Party notifies the regulations separately. 
 
 Are Mercosur technical regulations binding on all Mercosur member states once they have 
been approved by the Common Market Group?  
 
 
 WT/TPR/M/212/Add.1 
Page 138  
 
 ANSWER: 
  Technical regulations aproved by Commo n Market Group Resolutions are binding, 
according to the article 40 of the Ouro Preto Pr otocol. Nevertheless, they come into force only 
thirty days after all State Parties have incorp orated the Resolution into their respective legal 
systems. 
  Is there a specific time period in which these reg ulations must be implemented in each 
Mercosur member state?    
ANSWER: 
  Resolutions usually carry a specific time peri od for incorporation into the legal systems 
of State Parties . 
 Part III. Trade Policies and Practices by Measur e: (2) Measures Directly Affecting Imports; 
(viii) Technical Regulations and Standards: paragraph 135, page 50: 
 
 The Secretariat report states that, “Brazil does not accept as equivalent the technical 
regulations adopted by any trading  partner. It does however, accept e quivalence in test results.”  
Could Brazil explain why it is unwilling to consid er accepting WTO members’ technical regulations 
as equivalent when such regulations may fulfill domestic regulatory objectives, in accordance with 
Article 2.7 of the TBT Agreement?  ANSWER:  
 Brazil acts in accordance to Article 2.7 of the TBT Agreement. It favorably analyses the 
possibility of accepting other Members’ technical regulations as equivalent, even when they 
differ from Brazil’s. It is, however, necessary that  an MoU is signed so that mutual recognition 
of regulation equivalency can be into effect . This is done in a case-by-case basis. 
  Could Brazil provide examples of sectors where te st results are accepted as equivalent?  
 
ANSWER:   INMETRO is responsible for accrediting certif ying bodies. Those bodies, taking into 
account international standards, can accept as equivalent test results certified by other bodies, 
always in a case-by-case basis, and based on the principle of reciprocity as regards to 
acceptance of results. 
 
 Is acceptance of test results unilateral or in conjunction with Brazil’s participation in mutual 
recognition arrangements, such as ILAC and IAAC?    
ANSWER: 
  The acceptance of test results is done in conjunction with Brazil’s participation in mutual recognition arrangements such as IAAC and ILAC or in conjunction with bilateral 
MoUs. 
 
 Does Brazil recognize test results produced by  members participating in the IEC EE CB 
Scheme?    WT/TPR/M/212/Add.1 
 Page 139 
 
 
 ANSWER: 
  At present, Brazil does not recognize test resu lts produced by members participating in 
the IEC EE CB Scheme. 
 
Part III. Trade Policies and Practices by Measur e: (2) Measures Directly Affecting Imports; 
(viii) Technical Regulations and Standards: paragraph 143, page 51: 
 
 The Secretariat report refers to INMETRO’ s responsibility as a regulatory body. INMETRO 
is known primarily as Brazil’s national accreditati on body. These two roles are potentially in conflict. 
Has Brazil considered separ ating the two functions? 
 ANSWER:   Brazil does not consider that both  responsibilities are incompatible. 
 
Part III. Trade Policies and Practices by Measure: (2) Measures Directly Affecting Imports; (ix) 
Sanitary and phytosanitary meas ures: paragraph 161, page 53: 
 
 The Secretariat report notes in several places t hat Brazil issued new rules for genetically 
modified organisms in November 2005.   Could Brazil please provide details on these new rules, and 
explain who and how these rules are implemented? 
 ANSWER:   In Brazil, genetically modified organisms (GMOs) activities are disciplined by Law 
Number 11.105, of March 24
th 2005, regulated by Decree Number 5.591, of November 22nd 2005. 
Law Number 11.105 sets out safety norms and in spection mechanisms for activities involving 
GMOs within national territory, adopting as gu idelines the promotion of scientific development 
in the fields of biosafety and biotechnology, the promotion of human, animal and plant life and health, and the protection of the environment. According to item VI, Article 6 of Law Nº 11.105/05, it is forbidden to introduce GMOs or derived products into Brazilian territory 
without a favorable decision from the National Biosafety Technical Commission (CTNBio), the 
Federal Agency responsible for risk assessment, on a case by case basis, in relation to activities 
and projects that involve GMOs and derived products.   In the case of a favorable decision from CTNBio regarding commercial circulation of a 
GMO product, it is up to MAPA to issue author ization and registration, as well as to inspect 
GMO products and related activities destined for animal use in agriculture, animal husbandry, agro-industry and other areas, in accordance with  other legislation applied to conventional 
products when applicable. Other administrati ve agencies with competence over this matter, 
according to Art 16 of  Law 11.105, are the Mini stry of Health (National Sanitary Vigilance 
Agency – ANVISA), the Ministry of the En vironment and the Special Secretariat for 
Aquiculture and Fisheries.  
Part III. Trade Policies and Practices by Measure:  (2) Measures Directly Affecting Imports; ix) 
Sanitary and phytosanitary meas ures: paragraph 165, page 54: 
 
 The Secretariat Report indicates that, “The [Brazilian] authorities note that, although not indicated in the notification, most of the measu res notified were equivalent to international standards 
and/or used for trade facilitation. They also indica te that steps are being taken to improve the 
notification procedures in order to allow more tim e for comments.” The Secretariat report also notes 
that, “a significant number of the measures notified did not allow for an adaptational period of six WT/TPR/M/212/Add.1 
Page 140  
 
 months between the dates of publication and entr y into force.”  Could Brazil please explain the 
reasons why the international standards were not referenced in the notifications?  
 ANSWER:  
 Most notifications issued by Brazil were re ferenced by international standards. Of the 
392 notifications made between 2004 and 2008, over 85% of MAPA measures were based on 
international standards.   Could Brazil elaborate on the mechanisms it is putting in place to improve Brazil’s 
notification procedures in order to  allow more time for comments?  
 ANSWER:   As with all Members Brazil has internal steps that might delay the notification to the 
WTO and, thus, shorten the time for comments . Although this is not recurrent, Brazil is 
prepared to look into ways, if Members of th e SPS Committee agree, to deal with the issue of 
the time for comments. Brazil recalls that this  point was raised in the SPS Committee in 2008. 
  In particular, could Brazil clarify  what kind of flexibility it provides in considering comments 
provided after a late notification was issued? 
 
ANSWER:   Comments regarding matters dealt with by Brazil’s Ministry of Agriculture (MAPA) 
have been accepted and considered even when they  were received after the scheduled period for 
comments. 
  Could Brazil explain how it complies with its transparency obligations under the SPS 
Agreement (Article 7) especially with Annex B 5.d.)?   ANSWER: 
 
 The laws, decrees, regulations, requirements and procedures related to sanitary and 
phytossanitary measures are notified to the WT O. In addition, Brazil sends communications to 
the Members affected by the measure. Even when Members send comments out of the scheduled period, the comments sent to MAPA's  enquiry point can be accepted and are taken 
into account.  
Part III. Trade Policies and Practices by Measure:  (3) Measures Directly Affecting Exports; (v) 
export finance, insurance and guarantees;  (b) BNDES EXIM: paragraph 221, page 66: 
 
 In July 2007, the Government of Brazil announced a new BNDES (Banco Naci onal de 
Desenvolvimento Econômico e Social) credit line (with three underlying financial lines, i.e. Revitaliza 
Export, Revitaliza Working Capital and Revitaliza Investment) to stimulate the competitiveness of 
industrial sectors affected by the foreign exchange valuation and by global competition. Total funds 
allocated to this new credit line were BRL 3 billi on. Could Brazil please indicate whether this new 
Revitaliza credit line ties-in with the BNDES-EXI M programme mentioned in paragraph 221 and, if it 
does tie-in explain how?  
     WT/TPR/M/212/Add.1 
 Page 141 
 
 
 ANSWER: 
  Revitaliza Export was discontinued in Octo ber 2008. (BNDES). The financing conditions 
that used to apply to Revitaliza Export were those that apply to BNDES-Exim Pre-shipment 
credit lines. The other mentioned credit lines do not tie-in with BNDES-Exim.  
 
Part III. Trade Policies and Practices by Measure:  (3) Measures Directly Affecting Exports; (v) 
Export finance, insurance, and guarantees;  (b) BNDES EXIM: paragraph 221, page 66: 
 
 Paragraph 221 indicates that BNDES provides export credits for a variety of products. The 
eligibility of these products for BNDES financing depends  on the level of domestic content in the items 
to be exported; products with a domestic content of at least 60% are automatically eligible for 
financing; products not meeting th is requirement may also benefit from the programme subject to a 
non-automatic analysis procedure.  It is our understanding that the criteria for eligibility of a variety 
of products for BNDES export fi nancing is contingent on the us e of domestic over imported goods. 
Could Brazil please comment on the relationship between the domestic content requirement 
and Article 3.1(b) of the Agreement on Subsidies and Countervailing Measures  (ASCM)? 
 
ANSWER: 
  As correctly noticed in the Secretariat´s TPR report, products with a domestic content, 
in value terms, of at least 60% are automatically eligible for financing and products that do not 
reach a 60% local content threshold may also benefit from the programme subject to a non-
automatic analysis procedure. Thus, the elig ibility for financing under BNDES-Exim is not 
contingent, neither in law nor in fact, on loca l content requirements. Furthermore, none of the 
operations under BNDES-Exim provide any kind of subsidy, as their financial costs are fully 
covered, and they are extended at interest rates compatible with those of the international 
market. They are, therefore, in full complianc e with the provisions set forth in the WTO 
Agreement on Subsidies and Countervailing Measures (ASCM).  Part III. Trade Policies and Practices by Measu re: (4) Measures Directly Affecting Production 
and Trade; (v) Government Proc urement: paragraph 307, page 85:  
 
 The Secretariat's report states that, in 200 6, government procurement expenditure for 
programming, executing, and implementing Federal Government activities totalled R$22.2 billion 
where, for the same year, total tendering by th e Federal Government was R$28.9 billion.  Could 
Brazil please clarify the difference between these two statistics? 
 
ANSWER:   The amount of R$22.2 billion refers to government procurement expenditures incurred 
during Brazilian fiscal year of 2006. As for the am ount of R$28 billion, it corresponds to the 
total value of the tendering contracts awarde d by the Federal Government during the same 
year. Since the execution of contracts may take place in subsequent fiscal years, the actual 
expenditure and the contracted value may differ for the same year . 
 
Part III. Trade Policies and Practices by Measu re: (4) Measures Directly Affecting Production 
and Trade; (v) Government Procurement: paragraph 309, pages 85-86:  
 
 The Secretariat's report states that Brazil is not a Party to the WTO Agreement on 
Government Procurement (GPA) and that becoming  a Party to the agreement is not currently a 
priority. Given Brazil's importance in the gl obal economy and recent efforts to modernize its WT/TPR/M/212/Add.1 
Page 142  
 
 government procurement practices, could Brazil indi cate a timeframe by which it would be in a 
position to begin its accession to the GPA?  
 
ANSWER: 
 
 Brazil is not considering becoming an  observer of the Committee on Government 
Procurement.   Part III. Trade Policies and Practices by Me asure: (4) Measures Affecting Production and 
Trade; (vi) Intellectual property rights: paragraph 336, page 90: 
 
 The Secretariat report points out that the num ber of patents granted annually has decreased 
since 2003: 1855 patents were granted down from  4725 in 2003.  Could Brazil elaborate on the 
factors that might have contributed to this notable decrease? 
 
ANSWER:   Since 2004, the number of patent examiners ha s increased almost  fourfold. The need to 
provide adequate training to the new examiners ex plains the fall in productivity as reflected in 
the number of patent granted. For 2009, INPI ex pects already a gradual increase in the number 
of final decisions.  
 
 Between 2003 and 2007, the number of patents granted did not vary significantly from one technology area to the other, taking into a ccount the degrees of difficulty in the examination 
process are not uniform in the different areas. 
 
Part IV. Trade Policies by Sector: (2) Agricult ure and Forestry: paragraph 5, pages 96 and 97: 
 
 The Secretariat report states that, “A law in troduced in 2004 regulates biodiesel productions 
and imports and makes farmers who invest in biodiesel  crops eligible for reduced tax rates and 
preferential credit.”  Could Brazil please provide ad ditional information on the biodiesel regulations 
for production and imports?  
 
ANSWER:   The National Program for the Production a nd Use of Biodiesel (PNPB) was launched in 
2004. The PNPB is geared at promoting social  inclusion and regional development programs. 
 
 In 2005, with the aim of encouraging the use of biodiesel, the Government established that, beginning in 2008, diesel sold in Brazil must contain two percent of biodiesel and that, from 2013, all diesel produced and sold in Brazil will be required to contain at least five percent 
of biodiesel. In July 2008, the mandatory ble nd of two percent was raised to three percent.  
 
 A system of tax incentives was established for the production of the raw materials for 
biodiesel on small family farms in the North an d Northeast regions of Brazil, especially in the 
semi-arid areas. The Brazilian Government has instituted the “Social Fuel” seal, which is 
awarded by the Ministry of Agrarian Development (MDA) and establishes that in order to receive the seal, an industrial producer must purchase the oilseeds from family farmers and 
enter into a legally binding agreement with them to  guarantee specific income levels, as well as 
technical assistance and training.   WT/TPR/M/212/Add.1 
 Page 143 
 
 
  According to Law 11.116/05 production and importation of biodiesel can be carried out 
by companies with headquarters and administration  in Brazil, authorized by the National Oil 
Agency (ANP) and the Federal Revenue Bureau (SRF).   Could Brazil also provide additional details on the tax reduction rate and preferential credit 
measures available to producers who invest in biodiesel crops? 
 ANSWER:   Brazilian law authorizes the Federal Government to scale down certain  taxes, based on 
i) type of oilseeds used; ii) region in which th e oilseeds are grown and iii) whether the oilseeds 
are produced by large agribusin esses or by family farmers. 
  Biodiesel yielded from castor beans or palm trees grown by family farmers in the Brazilian Northern, Northeastern or semi-arid regions incurs in a federal tax reduction of 
100%. 
  Biodiesel yielded from any oilseeds grown by family farmers in any region of the country incurs in a federal tax reduction of 67.9%.   Biodiesel yielded from castor beans or palm trees grown by large agribusiness in 
Brazilian Northern, Northeastern or semi-arid regions incurs in a federal tax reduction of 
100%.   The growing of oilseeds by family farmers for the production of biodiesel receives loans 
from the National Program for Encouragement of  Family Farmers (PRONAF) that grants loans 
with annual interest rates varying from 1% to 4%.  
Part IV. Trade Policies by Sector: (2) Agri culture and Forestry: paragraph 6, page 97: 
 
 The Secretariat report states that, “[a]lthough th e value of assistance to  agriculture in Brazil 
is low compared with the aver age in OECD countries, the interventions in both the credit and 
agricultural domestic markets are distorting forms of  support.” The secretariat report also notes that 
as Brazil is a major world exporter in agricultura l products, its support to agriculture could affect 
global markets.   Canada notes that Brazil operates a comprehensive system of credit-related support 
instruments in agriculture, and that the amounts of s upport are large. Input subsidies, such as some 
credit-related support, distort production and trade more than either market price support or certain 
payments, according to economic analysis (see, for example, “Decoupling –policy implications”, 
AGR/CA/APM(2005)22/FINAL,OECD,2005 www.oecd.org /dataoecd/17/12/36298853.doc).  What is 
Brazil’s view of the distortions created in world markets by its credit-related support?  
ANSWER:  
  Credit-related support increase in the last few years, with the exception of 2007, was 
mainly due to debt rescheduling. That support accounts for about half of the total support 
granted, and benefited mainly medium size farmers.  Major producers of export goods count 
essentially on private credit sources and are subject  to much higher interest rates than in the 
world market. In addition, the benefit appropri ated by medium size producers from the credit 
policy based on a concessional interest rate is lower than the credit subsidy awarded. This is due to the fact that the financial cost faced by pr oducers is highly inflated by conditionalities 
imposed by banks. Thus, taking into account that  PSE for Brazil is low, possible world market WT/TPR/M/212/Add.1 
Page 144  
 
 distortion caused by credit-related support was negligible. Furthermore, the financing of 
agriculture at concessional interest rates co rresponds only to 25% of  rural credit. 
 
Part IV. Trade Policies by Sector: (2) Agricu lture and Forestry; (i) General features, policy 
objectives, and administration: paragraph 7, page 97: 
 
 According to the Brazil chapter of the Ag riculture Policies in NON-OECD countries: 
Monitoring and Evaluatio n 2007, “In 2005/06, the volume of crops benefiting fr om price support 
doubled, and price guarantees were extended to soyb eans for the first time.” Paragraph 97 of the 
Secretariat report also refers to this OECD docum ent.  With regard to guaranteed prices, could 
Brazil please indicate the range of products that have guaranteed prices and the rationale for 
broadening the product coverage for 2005 and 2006 to include soybeans?  
 
ANSWER: 
 
The range of products covered by Brazilian ma rket price support policies includes cotton, 
rice, beans, maize, sorghum, peanuts, jute, carnauba wax, Brazil nuts, cassava flour, starch, coffee and milk. 2005 and 2006 market price support for soybeans was directed at  producers in 
the more distant and less developed regions in the Mid-West of the country, located at an 
average distance of two thousand kilometers from the closest port and ma in domestic markets. 
This support answered  to significant increases in transportation costs. 
 
 In addition, could Brazil also indicate th e reasons why market price support increased? 
 ANSWER:  
 Market price support increase in 2005 and 2006 was due to soaring input and energy 
prices whose effects on production and transpor tation costs were mainly carried by soy and 
maize producers in the more distant regions. This is the case of the Mid-West region which 
accounts fully for the market price support to  soy and whose production account for an 
important share of the country production. 
 
Part IV. Trade Policies by Sector: (2) Agricu lture and Forestry; (i) General Features; Policy 
Objectives, and Administration: paragraph 12, p age 98: and;  Part II. Trade and Investment 
Policy Regime: (1) Overview: paragraph 1, page 13: 
 
 The Secretariat report notes in several places that Brazil has yet to submit a number of 
notifications to the WTO, in particular Brazil has been lagging with regards to notifications with 
respect to TBT and SPS.  Would Brazil please describe  the system in place through which regulatory, 
SPS and TBT notifications are made to the WTO?   
 
ANSWER:  
 
 Regulatory initiatives in Brazil aim at co mplying with the principles of the Brazilian 
Guide on Good Regulatory Practices. In particular  with item 7.3, which sets out the criteria to 
assess existing legislation, including the intern ational agreements signed by Brazil, and with 
item 3.1.1 of the Annex, which is based upon WTO’s Agreement on Technical Barriers to Trade 
and establishes that “when a technical regulation is in accordance with relevant international 
standards, it is presumed not to create unnecessary  obstacles to international trade”. Also in the 
Guide’s Annex, item 3.1.2 has provisions rel ated to the transparency mechanism of 
notifications, in light of what is established in TBT Agreement.   WT/TPR/M/212/Add.1 
 Page 145 
 
 
  With respect to the recommended periods, Brazil follows TBT Agreement procedures as 
well as the new understanding on this subject contained in document G/TBT/1/Rev.8 and derived from the second triennial review on time periods. 
 
 How is Brazil improving the subm ission of its SPS and TBT notices? 
 
ANSWER: 
  Between January and December 2008, 70  technical regulations and conformity 
assessment procedures were notified, representing a 10% increase in comparison with 2007, and 
392 SPS measures were notified between 2004 and 2008. The Guide on Good Regulatory 
Practices was approved by CONMETRO (Nationa l Council of Metrology, Standardization and 
Industrial Quality) through Resolution n. 5, of 18 December 2007. They resulted from a wide 
consultation process among concerned governme ntal agencies and other stakeholders. The 
Guidelines follow the principles, disciplin es and recommendations of the TBT Agreement, 
promoting, in particular, the use of intern ational standards and of performance based 
regulations. The results have been encouraging. 
 
 Could Brazil please identify which SPS and TBT no tifications have not yet been submitted to 
the WTO?  
ANSWER: 
  At present, there is no precise statistical data on this subject, but Brazil has initiated efforts to compile Brazil’s technical regulation s with an aim to create a national database. 
 
Part IV. Trade Policies by Sector: (2) Agricu lture and Forestry; (a) rural credit programmes: 
paragraph 24, page 101: 
 
 The Secretariat report notes that, the Agriculture Policies in NON-OECD countries: 
Monitoring and Evaluation 2007 stat es that, “Brazil’s delivery of credit subsidies is heavily managed, 
while the repayment of debt has become an issue for negotiation with producers. This approach to the 
problem posed by high real interest rates thwart s the development of a properly functioning credit 
market.”  Could Brazil please indicate the social and economic reasons for maintaining such a credit 
system?  
 
ANSWER: 
 
 Interest rates in Brazil have been kept  at high levels because of macroeconomic 
stabilization policies.  In this context, negotiati ons were required in order to reschedule the debt 
of agricultural producers in certain situations. Brazilian management of its rural credit support 
does not cause major market distor tions because the bulk of the co untry`s exports is carried out 
by large-scale farmers and relies mainly on pri vate sources of financing. A great number of 
small-scale farmers rely on concessional credit but sell their production exclusively or mainly in 
the domestic market. Rates offered by Brazilian credit programmes are significantly higher than those applied in similar programs in other economies. 
 
 In addition, has Brazil considered using more effi cient and targeted instruments to meet their 
objectives? 
    WT/TPR/M/212/Add.1 
Page 146  
 
 ANSWER: 
  Even if still at high levels, when compared  with international standards, interest rates 
are gradually falling in Brazil, as inflation targ ets are met and prices are kept under control. As 
mentioned above, Brazilian agriculture credit progr ammes do not have a significant distortive 
effect in international markets and, despite a pe rmanent effort to improve its functioning, have 
been able to adequately attain their policy objectives.  Part IV. Trade Policies by Sector: (2) Agricu lture and Forestry; (a) rural credit programmes: 
paragraph 29, page 102: 
 
 There Secretariat report refers to Box A.1.3.1 of the Agriculture Policies in NON-OECD 
countries: Monitoring and Evaluation 2007  report that notes that Brazil has restructured or written-off 
large amounts of debt and that overdue repayment has also increased.    Could Brazil please indicate how and where this is being accounted for? 
 
ANSWER: 
  Farmers' debt was not written-off but rescheduled 
 
 In addition, could Brazil also indicate how they are ensuring that such write-offs and 
rescheduling will be less prevalent in the future?   ANSWER:  
 The last rescheduling of farmers' debt undertaken in 2008 was conceived with the 
purpose of avoiding the need for new renegotiation s, and, in spite of the current world financial 
crisis, Brazilian authorities do not foresee future rescheduling. 
 
 Could Brazil also comment on how the curren t financial and economic crisis has affected 
their agricultural producers and the av ailability of agricultural credit? 
 
ANSWER:   The outbreak of the world financial crisis took  place in a moment of steady growth of 
Brazil`s agricultural production and exports, which began in the last few years, after a period of 
setbacks caused by declining prices and weathe r associated crop failures. This previous good 
performance is a factor that attenuates the impact  of the current crisis. The crisis` major effects 
are lack of liquidity and retraction of demand, which affect commodity prices and profit margins. These effects were aggravated by longst anding high rural indebtedness, strong 
dependence on fertilizer imports and high interest rates.   
 A major problem faced by farm ers, especially in the export segment, is one of liquidity, 
since they rely on foreign sources of financing and tend to be located in the Mid-West region, at an average distance of two thousand kilometers  from the closest ports and main domestic 
markets. Farmers in that region are dependent on  private credit sources and the cost of their 
foreign debt increased substantially due to  the devaluation of Brazil`s currency.  
 
 To countervail these effects, the Govern ment adopted several measures aimed at 
strengthening the banking system’s capability of financing agriculture. Farmers' liquidity, 
however, did not increase as expected, because banks initially diverted their resources away 
from rural credit to lower risk sectors. Howe ver, more recent measures undertaken to increase  WT/TPR/M/212/Add.1 
 Page 147 
 
 
 liquidity in the economy were ef fective. Brazil estimates that its grain crop production in 2008-
2009 will be approximately 6.4% lower than the 144 million tons registered in the last harvest 
season. A more serious problem may arise during harvesting season due to marketing 
uncertainties related to demand and relative prices for the commoditi es exported by the 
country. 
 
Part IV. Trade Policies by Sector: (4) Energy; ( ii) Hydrocarbons; (b) Regulatory: paragraph 71, 
page 112: 
 
 The Secretariat report notes that, in 2006, the 8th round of concessions for the exploration of 
petroleum and gas was suspended due to complaints  concerning the granting rights.  What were the 
complaints concerning the granting criteria?  W hat changes have been intr oduced to the granting 
criteria to ensure that following rounds do not experie nce the same issues? Th e results of the tenth 
round of concessions were expected in December 2008, were these results provided in December? 
 
ANSWER: 
  Due in November 2006, the 8
th Round of Concessions was suspended due to concerns on 
competition aspects, as wether one applicant woul d be allowed to acquire various rights in one 
same bloc of concession.   
 The rules disputed were supp ressed in the following rounds of concessions. In that, the 
9
th and 10th rounds took place successfully.  
  The results of the 10
th round or concessions were presented on December 18th 2008 
and they can be found on the website: http://www.brasil-rounds.gov.br/portugues/ 
resultados_R10.asp 
 
Part IV. Trade Policies by Sector: (5) Manufacturing: paragraph 100, page 117: 
 
 The Secretariat report notes that “it will be im portant to ensure that the implementation of 
industrial policy does not make it more difficult for other sectors to attract factors of production, 
which would hinder their growth.”  Which indus trial policies is the Secretariat report referring? 
 ANSWER:   Given that the Secretariat mentions “an enha nced strategy for 2008-10”, it is likely to be 
the Production Development Policy (PDP).  
 What steps is Brazil taking to ensure that foreign manufacturers are not discriminated 
against?   ANSWER: 
 
 Brazilian policy and legislation follow the WT O Agreements, which have the status of 
law, fully respecting national treatment.   What is being done to ensure that the industr ial policy does not impede the trade flows and 
factors of production? 
 WT/TPR/M/212/Add.1 
Page 148  
 
 ANSWER: 
  The Brazilian Government is not aware of any measure under that policy with such an effect.  
 The policies and measures established by th e Productive Development Policy (PDP), aim 
at fostering the Brazilian Economy in the next  3 years while respecting all international 
commitments assumed . 
 
Part IV. Trade Policies by Sector: (5) Manufacturing; paragraph 106, page 118: 
 
 Paragraph 106 mentions that in 2008 the Go vernment of Brazil launched the Productive 
Development Policy. One of the four macro-economic goals of this new policy is to increase Brazil’s 
participation in world exports. Suppor t measures include credit lines, reduce cost of credit and tax 
exemptions.  Could Brazil please identify the criteria that companies must satisfy in order to benefit 
from the Productive Development Policy’s support meas ures?  a) Could Brazil please specify whether 
any of these support measures are based either partly or wholly on export performance?  b) Could 
Brazil please indicate which support measures are not  based on export performance, as well as those 
that are partially based on export performance?   ANSWER: 
 
 Financing provided by BNDES under the Pro ductive Development Policy will follow the 
conditions of its ordinary credit lines and progr ammes which finance traditionally domestic and 
overseas investments of Brazilian enterprises, expo rts, imports, domestic commercialization of 
capital goods and infrastructure projects in Brazil. 
 
Eligibility criteria are the same applied to the ordinary credit lines managed by BNDES. 
 
BNDES’ support to the Brazilian enterprises takes into account the feasibility of the 
project/transaction, the adherence to the govern mental policies and the availability of risk 
mitigation schemes. 
 
Part IV. Trade Policies by Sector: (5) Manufacturing; paragraph 106, page 118: 
 
 Paragraph 106 mentions that, under the Pr oductive Development Policy, the authorities plan 
to offer some US$ 116 billion in total credit lines until 2010, of which 84% will be through BNDES 
(Banco Nacional de Desenvolviment o Econômico e Social).  Could Brazil please indicate through 
which BNDES program(s) the credit lines will be offered?  ANSWER:   Credit lines in reference are the ordina ry credit lines/programs managed by BNDES 
which are BNDES Automatic, FINEM, FINAME and BNDES-Exim credit lines.  
Part IV. Trade Policies by Sector: (5) Manufacturing: paragraph 108, page 118: 
 
 The Secretariat report notes that Brazil pr ohibits the importation of used goods for 
environmental and safety reasons.  What tests and/or procedures were used to determine whether 
these used goods would in fact cause environmen tal and safety issues?  Does this apply to all 
manufacturing industries or only to certain specific industries? If the latter, which industries does this 
apply to?  WT/TPR/M/212/Add.1 
 Page 149 
 
 
  
ANSWER: 
  The import prohibition of used consumer goods is in place mainly for environmental 
and safety reasons, related either to their shor ter life cycle or to their functionality and 
performance characteristics. Regarding the life cy cle of such goods, it is well known that used 
goods have a shorter remaining lifespan than  new goods and therefore become waste sooner 
than the latter. Besides contributing to increase  the generation of wastes in the importing 
countries, importation of used goods may bring together specific health and environmental risks to be assessed in each case.   
 
Part IV. Trade Polices by Sector: (6) Services; (ii) Financial Services: paragraph 121, page 120:  
 
 Paragraph 121 states that, “Brazil partici pated in the WTO negotiations on financial 
services; although it has not ratified the Fifth Protocol, amendments made to its insurance legislation 
in 2007 may make this possible.”  Can Brazil provide an update on progress made towards 
ratification of the Fifth Protocol?  What additiona l changes, if any, are required and when does it 
anticipate ratification?  
 ANSWER:  
 As it was stated in the last regular m eeting of the Committee on Trade in Financial 
Services of the WTO, in December 2008, due to pr ocedural matters the Fifth Protocol has not 
yet concluded its ratification process. Changes in  the insurance legislation were already made. A 
specific timeframe for the completion of th e ratification process cannot be determined. 
 
Part IV. Trade Policies by Sector: (6) Services;  (ii) Financial Services; (a) Main features: 
paragraph 126, page 122: 
 
 Paragraph 126 states that, “the installation of new foreign financial institutions is subject to 
approval by Presidential Decree, which gi ves way to new bank authorizations.”  
 
 Canada notes that in practice, Brazil has few rest rictions on foreign investment in the capital 
of domestic banks and on the establishment of forei gn financial institutions in Brazil. However, this 
openness is predicated on the discretion of the Presi dent.  Can Brazil provide an update on when the 
establishment of foreign financial instituti ons will be formalized in legislation? 
 
ANSWER: 
  The establishment of foreign financial inst itutions in Brazil is regulated by Law 
Nº 4.595/64. The topic is also subject to especific regulation through Resolutions of the National 
Monetary Council.  
 This regulatory framework remains in place as long as the approval of a 
Complementary Law on the National Financ ial System, foreseen in Article 192 of the 
Constitution, is not completed. 
 The approval by Presidential Decree embodies the normal Executive discretion on the 
establishment of new foreign financial institutions, on the basis of systemic and prudential 
considerations. It is not, therefore, an impedime nt to foreign investment in the financial sector. 
The market share of foreign banks, authorized to  operate in Brazil in the last decade, currently 
corresponds to 23% of the total assets of the Brazilian banking sector. WT/TPR/M/212/Add.1 
Page 150  
 
  
Part IV. Trade Policies by Sector: (6) Services; ( ii) Financial Services; (c) Insurance: paragraph 
152, page 127: 
 
 Paragraph 152 states that, “[l]ife insurance products that offer long-term savings and 
annuities, capitalization plans, and open pensio n products require prior approval from the 
Superintendence of Private Insurance (SUSEP); other new insurance products do not need pre-
approval by the SUSEP, but must be notified.”  C an Brazil clarify whether the approval process for 
new life insurance products differs for foreign and domestic firms? 
 
ANSWER: 
  All companies authorized to operate in th e Brazilian market are s ubmitted to the same 
treatment regarding the approval of new products. 
 
Part IV. Trade Policies by Sector: (6) Services;  (iii) Telecommunications: paragraphs 159 and 
169, pages 129 and 130: 
 
 The Secretariat notes that strengthening the regulatory agency would consolidate 
improvement to the regulatory system, and that add itional regulatory action is  needed "in order to 
prevent and solve market bottle necks, facilitate universal access in  the context of modern 
technologies, and better integrate the consumer persp ective."  Can Brazil describe what steps are 
being taken to strengthen the regulatory agency (ANATEL)?  ANSWER:  
 Many actions have been established in order to keep Anatel as one of the regulatory 
agencies recognized as a benchmark by ITU. Tho se actions have the objective of improving co-
ordination with the Ministry of Communication s for the establishment of policies for the sector 
and of the regulatory process, as well as to stren gthen transparency of its rule making process. 
One of these actions has been to conduct nation al entrance exams almost yearly in order to 
fulfill its demand for qualified personnel. Anatel ha s also been working with ITU to provide to 
its staff a post-graduate course on telecomm unication regulation, which will undoubtedly 
contribute to a higher proficiency of Anatel staff.  Part IV. Trade Policies by Sector: (6) Services; (iii) Telecommunications: paragraph 174, page 
131: 
 
 The Secretariat notes that “value-added servic es are not regarded as telecom services per se; 
providers of these services are considered to be "us ers of telecom services"”.  Can Brazil provide 
further information on how these services are catego rized in Brazil?  How are providers of these 
services categorized in Brazil?  
ANSWER: 
  Value-added services are not defined as te lecommunication services according to the 
Brazilian legislation. But, any value-added servi ce provider offering services equivalent to a 
regulated service shall be subject to the regul ations applicable to the regulated service. 
  WT/TPR/M/212/Add.1 
 Page 151 
 
 
 Part IV. Trade Policies and Practices by Sect or: (6) Services (iii) Telecommunications: 
paragraph 183, page 133: 
 
 The Secretariat notes that “[t]he use of Br azilian satellites is given priority over foreign 
satellites, if technical and economic conditions are equi valent…”  Could Brazil explain what is meant 
by equivalent technical and economic conditions?  
 ANSWER:   According to the Brazilian legislation, priority should be given to the use of Brazilian 
satellites when, concomitantly, conditions such as  the price of MHz and the deadline for 
providing the requested service are equivalent or more favorable; and operational and technical 
parameters comply with the requirements es tablished by the telecommunication service 
provider. Although these conditions are in force, up to the moment, there was no case in which 
the preference was applied.  
 
 It is important to note that, in acco rdance with the Brazilian rules, foreign 
communication satellite operators cannot provide  satellite capacity or telecommunication 
services to licensee service providers or users wi thout any commercial presence in Brazil (The 
foreign satellite operator must nominate a Lega l Representative in Brazil, and the capacity 
should be contracted through this Legal Representative). 
 
 For further details, see Resolution nº 220/2000. 
 
Part IV. Trade Policies by Sector: (6) Servi ces; (iv) Air Transport; (b) Legal Framework: 
paragraph 196, page 135: 
 
 The Secretariat report notes that Brazil is part of the Fortaleza Agreement on regional air 
services; the enhancement in 2008 of the Brazil-USA air transport agreement; and Brazil’s focus on the Americas and its trading partners.  Could Braz il explain what provisions have been\will be 
enhanced in pursuit of more flexible agreements?   
ANSWER: 
  The National Civil Aviation Agency (ANAC) abides by the political guidelines defined in 
the Civil Aviation Council. The Council establishe s that enhanced air services and competition 
in the international market shall be pursued by  the negotiation of Air Services Agreements. 
Brazil has just recently published its new Nation al Civil Aviation Policy (DECREE Nº 6.780, 
February 18th, 2009), which also establishes that international air transport may be enhanced as a means to expand the flux of people and g oods and to promote regional integration within 
South America. ANAC has negotia ted, in 2008, more flexible agreements, by adopting 
provisions such as third party codesharing, pha sed in increase of flight frequencies, route 
schedule liberalization, and 5th and 6th freedom rights. ANAC has also established free pricing 
for air fares within South America.  
Part IV. Trade Policies by Sector: (6) Servi ces; (iv) Air Transport; (b) Legal Framework: 
paragraph 199, pages 136 and 137: 
 
 The Secretariat report notes that, “Concessi ons to provide passenger and merchandise 
transportation services within Brazil (cabotage) are gr anted only to companies with headquarters in 
Brazil, managed exclusively by Braz ilians, and in which fo ur fifths of voting rights are in Brazilian 
hands…”  WT/TPR/M/212/Add.1 
Page 152  
 
  a) Could Brazil further detail its 20% lim it of voting rights in domestic airlines? 
 b) Could Brazil indicate whether ther e are different foreign ownership and control 
rules\policies affecting, for example:  i)  Ownership of voting shares by a single foreign investor;  ii) Start-up of small airlines\cargo carriers whether they are exclusively domestic in 
nature or operate international routes; 
 iii) Investment of foreign carriers in Brazilian domestic carriers.  ANSWER:  
 Law No. 7565/1986, also known as “Braz ilian Aeronautical Code” (http://www.planalto. 
gov.br/ccivil_03/Leis/L7565compilado.htm) provides, in its art. 181, the following conditions for foreign investment in companies of regular air transport:  I - headquarters in Brazil; 
II - at least 4/5 (four fifths) of the voting capital, belonging to Brazilians, prevailing such 
limitation in eventual capital increase; III – direction positions entrusted exclusively to Brazilians. § 1 Voting shares must be entitled to a bearer if the company is constituted as private, which statutes must contain explicit prohibition on  conversion of preferred shares without voting 
rights into voting shares. 
§ 2 Issuance of preferred shares up to 2 / 3 (two thirds) of the total issued shares may be 
permitted, not prevailing the restrictions not provided in this Code. § 3 The transfer of voting shares to foreign bearers, which are included in the margin of 1 / 5 (one fifth) of the capital referred to in item II of this article depends on the approval of the 
aviation authority. 
§ 4 If the final amount of shares in foreign power does not exceed the limit of 1 / 5 (one fifth) of 
capital, foreign bearers, individual or corporat e, can acquire shares of the capital increase.  
  ANAC reviews such conditions at the time of granting the concession for the operation 
of air transport services. There are, today, several projects of laws in Congress seeking to 
increase the percentage of foreign investment in Brazilian airlines.  
 
Part IV. Trade Policies and Practices by Sector : (6) Services; (vi) Professional Services: 
paragraph 232, page 141: 
 
 Paragraph 232 states that while no professions are reserved for nationals, the practice of 
legal and other professions requires residence in Br azil.  Can Brazil please clarify the type of 
residence required, for example permanent resi dence, temporary residence or other? 
 ANSWER:   The website address http://www.mte.gov. br/trab_estrang_ing/Procedure_Guide.pdf 
brings information in English on the type of residence and procedures for concession of work 
permits to foreign citizens.  Part IV. Trade Policies and Practices by Sector : (6) Services; (vi) Professional Services: 
paragraphs 240-241, pages 142-143: 
 
 Paragraph 240 indicates that foreign lawyers who are allowed to practise in their country of 
origin are permitted to "establish a consultancy or a consultant partnership in foreign law in Brazil to 
the domestically established firm." The paragraph then proceeds to out line requirements that must be 
met for foreign lawyers to provide such services. Par agraph 241 then notes t hat consultancy firms  WT/TPR/M/212/Add.1 
 Page 153 
 
 
 providing foreign-law services must be constitu ted and registered in Brazil, and all its lawyers 
require authorization from the Brazilian Bar Associa tion to provide foreign-law consultancy services.  
Can Brazil please clarify if the requirements in  Paragraph 240 apply on both a mode 3 basis and a 
mode 1 basis?  If the regulations do not apply on a mode 1 basis, does Brazil have regulations 
governing the provision of legal consultancy services for international and foreign law through 
mode 1? 
 ANSWER:   This legislation regulates the supply of le gal services through commercial presence 
(mode 3). It is worth mentionning that the Brazilian consolidated schedule does not include 
commitments in the legal services sub-sector. There is no specific legislation on the provision of 
certain professional services on a mode 1 basis. General legal requirements, such as consumer protection laws would apply, as possible. 
 
Part IV. Trade Policies and Practices by Sector : (6) Services; (vi) Professional Services: 
paragraph 244, page 143: 
 
 Paragraph 244 notes that Braz ilian law recognizes two kinds of accounting professionals: 
accountants, who require university study, and acco unting technicians.  Can Brazil please clarify 
what differentiates accountants and accounting t echnicians besides univer sity education? What 
requirements must be met to be recognized as an accounting technician? 
 ANSWER:   The professionals of accountancy are divided into two distinct categories, namely 
Accounting Technician and Accountant. Account ing Technicians are formed by schools of 
accounting or commercial schools (diploma programs) and can answer for bookkeeping 
accounting services, including the survey and si gnature of balance books. Accountants are 
graduated by the Colleges of Accounting Scien ces (university-level), pursuant to Decree-Law 
7988 of 22.9.45, and are the only ones able to respond for all accounting services, including 
written examination for judicial and extra-judicial purposes. 
 
QUESTIONS FROM THE GOVERNMENTS OF CANADA, MEXICO AND THE UNITED 
STATES 
 
Report by the Secretariat (WT/TPR/S/212)  
Part III. Trade Policies and Practices by Measure: (2) Measures Directly Affecting Imports; -
Steel  
 
 Brazilian authorities will be aware that the North American governments have stated an 
expectation that steel-producing countries not undert ake actions that direct or otherwise influence 
steel exports as a response to the current economic  crisis. In this context, Canada, Mexico and the 
United States are concerned with certain steel-rel ated measures and initiatives recently announced by 
a number of countries, including the raising of  tariffs, the imposition of restrictive and non-
transparent import and export licensing procedures and the institution of policies to promote exports. 
While the current economic downturn may provide an  impetus for governments to consider measures 
and initiatives with the intent of supporting domes tic industries, there are concerns that such 
measures may effectively impede steel trade. The governments of North America are also concerned 
that such actions will only serve to exacerbate difficulti es in global steel markets in general. As has 
been frequently noted, most recently at the OECD Steel Committee meeting on December 15-16, 
2008, the current economic crisis requires all governmen ts to consider carefully how their actions 
may impact steelmakers in global steel markets, par ticularly at a time when excess steel capacity WT/TPR/M/212/Add.1 
Page 154  
 
 remains a major problem in the steel sector and when the market is particularly sensitive to 
distortions and possible disruption.   It is in this context then that Canada, Mexico and the United States ask Brazil to provide 
information on actions it is taking to support the Br azil steel industry or to influence steel imports and 
exports in response to the econom ic crisis. We understand, for example, that in January 2009 Brazil 
expanded the list of products subject to import licen sing requirements to include coking coal and all 
steel products currently classified under HST Chapter 73 but then suspended the requirement. More 
recently, there was an announcement by Brazilian Mini ster Miguel Jorge on February 9 that Brazil is 
monitoring prices of steel imports, primarily fr om Asia, to ensure they are consistent with 
Ainternational reference prices @ with a possible view to taking anti-dumping duty actions against 
these imports. Canada, Mexico and the United St ates ask Brazil to comment on these recent 
developments and to explain the rationale and operati on of the latter system. We also ask Brazil to 
report on any other actions that may be relevant to trade in the steel sector.   ANSWER:  
 There are no measures concerning the Brazilian steel sector being adopted or planned, 
other than monitoring prices of steel imports. Th e eventual adoption of anti-dumping measures 
in Brazil would in any case be exclusively based  on clear evidence of dumping and consequent 
injury to the domestic industry.   Brazil shares Canada’s, Mexico’s and the United States’ concerns that the adoption of 
measures to support the domestic steel industry may hinder steel trade. In that sense, Brazilian 
authorities are also closely following the implem entation of the North-American Stimulus Plan, 
as studies are being conducted to evaluate (i ) whether the “Buy American” clause applied to 
steel, iron and manufactured goods is duly consis tent with the WTO disciplines; and (ii) the 
potential impact of those measures on the international steel market. 
 
EUROPEAN COMMUNITIES (FIRST BATCH) 
 I. Economic environment (6) Developments in Trade and Investment (ii) Trade in services 
WTO Secretariat’s Report, page 11, para. 36  
 
 The Secretariat report observes that Brazil c ontinues to run a trade deficit in services. 
Moreover, this deficit appears to grow further.  The report notes that professional and technical 
services are the only exception to this trend, as the re has been a widening trade surplus in these 
sectors in the 2003-07 period.  Could Brazil indica te in what professional services sub-sectors this 
surplus and growth have occurred?  
 
ANSWER: 
 
 Trade flows on professional services are obtain ed from the National Balance of Services 
(part of the Balance of Payments), which follo ws the recommendations of the Fifth Edition of 
the Manual of Balance of Payments elaborated by the IMF. The data is not disaggregated; 
therefore we are not able to inform on sub-sector level.   Brazilian Government is developing a new Integrated System of Foreign Trade in 
Services (SISCOSERV) in order to have more precise information on that.   WT/TPR/M/212/Add.1 
 Page 155 
 
 
 II. Trade and investment policy regime 
(3) Trade Policy Formulation and Implementation and Objectives WTO Secretariat’s Report, page 15, para. 25 
 
 The Secretariat report notes that Brazil's regul ations do not allow foreign participation in 
nuclear energy, health services (except insuran ce), hydraulic power generation, or postal and 
telegraph services.  Could Brazil confirm that no restrictions, even partial restrictions, on foreign 
participation exist in other sectors than those listed by the report? 
 
ANSWER: 
 
 As a general rule, the Brazilian Constitution  determines that nationals and foreigners 
established according to Brazilian legislation must receive the same treatm ent. For strategic or 
public policy reasons, foreign participation in the li sted sectors are not allowed. In other sectors, 
specific restrictions may be found, according to sectoral regulations. 
 
(4) Foreign Investment Regime 
WTO Secretariat’s Report, page 18, para. 28 
 Foreign Investment is limited to no more than one fifth of the capital stock with voting rights. 
The enterprise must obligatorily be organized as a joint stock company and its capital must be 
represented by registered shares. This limit does not apply to legal persons already existing on 11 
July 1980, which, however, in the event of futu re capital increases through subscriptions, shall be 
required to have four fifths of this increase in or dinary registered shares subscribed and paid up by 
national investors.  What are the intentions of Brazil to liberalise investment in this area? 
 ANSWER: 
 
 Changes in this area have not been under consideration. 
 
WTO Secretariat’s Report, page 18, para. 30  
 
 The Secretariat report notes that Brazil has signed 14 bilateral investment agreements (BITs), 
and has negotiated two MERCOSUR pr otocols on investment:  the Buenos  Aires Protocol (extrabloc), 
and the Colonia Protocol (intrabloc), but that none  of these agreements are in force.  What are the 
steps the Brazilian Government is taking to ensure th e internal entry into force of these international 
commitments? Could Brazil indicate whether the en try into force of these ag reements will take place 
in the near future? 
 
ANSWER: 
  The agreements have been withdrawn from the Congress approval procedure. 
 
 Is Brazil in the process of negotiating more BITs?  
ANSWER: 
  No, Brazil has not been negotiating BITs.  
 The credit facilities of BNDES are essential fo r the development of investment projects in 
Brazil, because of its advantageous conditions. This bank only finances Brazilian enterprises. The 
criterion to consider an enterprise as Brazilian is the or igin of its capital, independently of the origin 
of its constitution and legal compliance. Neverthel ess, the Decree of the Executive Power No. 2233 of WT/TPR/M/212/Add.1 
Page 156  
 
 1997 authorises to grant loans to foreign capital en terprises when their ac tivities cover priority 
sectors or regions of high national interest.  Fo r the projects included in Decree No. 2233/97, have 
Brazilian enterprises with Brazilian capital and Br azilian enterprises with foreign capital access to 
BNDS finance in the same conditions?  
ANSWER:  
  In the areas of national interest defined in the mentioned Decreee, BNDES offers the same conditions to both Brazilian a nd foreign enterprises. First of all, it should be noted that the 
criterion to consider an enterprise as Brazilian is  not the origin of its capital. Every Brazilian 
company regardless of its shareholders´ origin or place of residence can access the programme 
resources. Thus, the same conditions apply for bo th Brazilian enterprises with Brazilian capital 
and Brazilian enterprises with foreign capital.  (5) International Relations 
(ii) Preferential agreements 
MERCOSUR WTO Secretariat’s Report, page 21, para. 41  
 Negotiations for the establishment of a MERCOSUR automotive policy, dealing with both 
intra-MERCOSUR and external trade , were concluded in June 2000 between Brazil, Argentina and 
Uruguay; Paraguay accepted the regime in 2001.   Ho wever, this agreement has not fully entered into 
force (mid-2008) and intra-MERCOSUR trade in th e automotive sector is ruled by bilateral 
agreements.  Could Brazil explain the scheduled stages leading to the entry into force of the 
MERCOSUR automotive policy?  
ANSWER: 
  The intra-Mercosur Automotive Trade Agreeme nt negotiated in 2000 has not come into 
force and is is due do be reviewed.  Trade in the automotive sector is currently regulated by 
bilateral agreements negotiated under the Lati n American Integration Association - LAIA 
(Argentina-Brazil, Argentina-Uruguay and Brazil-Uruguay) and flows duty free under the 
conditions foreseen therein. 
  The Brazilian list of exceptions to the CE T has 100 tariff lines and, according to the 
Decision N° 59/07 of the Common Market Council, can be revised each semestre (maximum of 
20 changes each semestre). There will be a sch edule of reduction to Argentina and Brazil 
starting in 2009 (93 items in the first semestre of 2009; 80 from 01/02/2010 until 31/07/2010; 50 
from 01/08/2010 until 31/12/2010). The Brazilian lis t is available at the following web page: 
http://www.desenvolvimento.gov.br /arquivos/dwnl_1227554000.xls. 
  The list is designed to offer State Parties some flexibility to address very specific and 
limited issues.  
 
 It would be difficult to state a specific date  for complete circulation of goods and services 
in Mercosur, but State Parties are actively workin g to achieve that goal as soon as possible and 
important discussions are currently underway to cons olidate of the Customs Union, in areas as 
diverse as technical regulations, customs proced ures, the drafting of a common customs code 
and the elimination of the double charging ot th e CET. Liberalization of trade in in services 
shall be concluded in 2015. 
 
 Could Brazil list all the exceptions to the M ERCOSUR Common External Tariff, including 
their validity and rationale?  WT/TPR/M/212/Add.1 
 Page 157 
 
 
 ANSWER: 
  The Brazilian list of exceptions to the CE T has 100 tariff lines and, according to the 
Decision N° 59/07 of the Common Market Council, can be revised each semestre (maximum of 
20 changes each semestre). There will be a sch edule of reduction to Argentina and Brazil 
starting in 2009 (93 items in the first semestre of 2009; 80 from 01/02/2010 until 31/07/2010; 50 
from 01/08/2010 until 31/12/2010). The Brazilian lis t is available at the following web page: 
http://www.desenvolvimento.gov.br /arquivos/dwnl_1227554000.xls. 
  The list is designed to offer State Parties some flexibility to address very specific and 
limited issues.   
 When does Brazil foresee the complete free circulation of products and services in 
MERCOSUR?  
ANSWER: 
  It would be difficult to state a specific date  for complete circulation of goods and services 
in Mercosur, but State Parties are actively workin g to achieve that goal as soon as possible and 
important discussions are currently underway to cons olidate of the Customs Union, in areas as 
diverse as technical regulations, customs proced ures, the drafting of a common customs code 
and the elimination of the double charging ot th e CET. Liberalization of trade in in services 
shall be concluded in 2015.  
 
(c)  Other trade agreements and agreements 
Brazil’s Report, page 15, para. 58 and WT O Secretariat’s report, para 22, para. 45 
 
 Could Brazil provide a short description of the current state of play as regards negotiations 
on the GSTP, which now have been ongoing for almost five years?  ANSWER:  
 Brazil considers that the Third Round of negotiations on the GSTP, the São Paulo 
Round, is a great opportunity to achieve the hi gh potential of the GSTP to consolidate the 
pattern of dynamism of South-South trade. In co ntrast with the modest results from previous 
rounds, the current round of negotiations is ex pected to produce more ambitious results. 
 
 During the last Ministerial Meeting, whic h took place in Accra, Gana, in 2008, the 
parties reached consensus that the establishmen t of a general preference would be the main 
negotiating modality, pending the definition of the exact level of that preference. 
 
WTO Secretariat’s report, page 20, para. 38 and Brazil’s report, page 17, para. 70-72 
 
 In its government report, Brazil notes that MERCOSUR has “a broad range of free trade 
agreements (FTA) subscribed by that customs uni on, within the framework of LAIA”. These FTA are 
known as Economic Complementation Agreements and have been signed with Bolivia (ACE-36), 
Chile (ACE-35), Peru (ACE-58), and Cuba (ACE-62). Additionally, there is a joint agreement with Colombia, Ecuador, and Venezuela (ACE-59). Preferen tial margins granted within the framework of 
the free trade agreements between MERCOSUR and Chile, and between MERCOSUR and Bolivia 
have been regularly expanded since their entry into  force.  Could Brazil confirm when it does intend 
to notify to the WTO the free trade agreements with  Bolivia (ACE-36), Chile (ACE-35), Peru (ACE-
58), and Cuba (ACE-62), and the joint agreement wi th Colombia, Ecuador, and Venezuela (ACE-59)? 
 WT/TPR/M/212/Add.1 
Page 158  
 
 ANSWER: 
  The agreements signed under the Montevideo  Treaty of 1980 are part of the LAIA 
(Latin-American Integration Association) integrat ion process.  Their notification, according to 
the established practice, is therefore included in the reports presented by the Secretariat 
General of LAIA through the delegation of Urug uay.  As far as the framework agreements are 
concerned, they do not contain any trade prefer ences and are not required to be notified under 
the enabling clause or any other WTO provision.   The agreements signed under the Montevideo  Treaty of 1980 are part of the LAIA 
(Latin-American Integration Association) integrat ion process.  Their notification, according to 
the established practice, is therefore included in the reports presented by the Secretariat General of LAIA through the delegation of Urug uay.  As far as the framework agreements are 
concerned, they do not contain any trade prefer ences and are not required to be notified under 
the enabling clause or any other WTO provision. 
 
 Could Brazil specify the legal status of the above-mentioned agreements? 
 ANSWER:   The ACE-35, ACE-36, ACE-58 and ACE-59 are already in force. As to the ACE-62 with 
Cuba, Brazil has already ratified it. All th ese agreements were signed under the Montevideo 
Treaty of 1980 and are part of LAIA integration process. 
 
 Could Brazil please describe each of the abo ve-mentioned agreements? Could Brazil specify 
the current coverage in terms of tariff lines and trade value for each agreement? 
 
ANSWER:   They are all free trade agreements, except for the ACE-62 which is a partial scope 
agreement. The trade flow Brazil registered, in 2008, with the above-mentioned countries is as follows: Chile: US$ 8,9 billion; Bolivia: US$ 3,9 billion; Peru: US$ 3,2 billion; Colombia/ 
Ecuador/Venezuela: US$ 9,7 billion; and Cuba: US$ 572 million.  
 Brazil indicates that since 30 June 2001, “MERCOSUR members are not individually 
allowed to sign trade preferential agreements with  third parties, according to a Common Market 
Council Decision”. The remaining agreements previ ously concluded by each MERCOSUR member 
country are being replaced by agreements that involve MERCOSUR as a whole.  Could Brazil 
elaborate on the state of play of this process? How many agreements have been replaced and which 
ones remain to be replaced? 
 
ANSWER: 
 
 MERCOSUR has negotiated agreements as a block with Peru (ACE-58 MERCOSUR-
Peru), Colombia, Ecuador and Venezuel a (ACE-59 MERCOSUR-Colombia/Ecuador/ 
Venezuela) and Cuba (ACE-62 MERCOSUR-Cuba).   All of them replace previous bilateral 
agreements between MERCOSUR and counterpart(s). With Mexico, MERCOSUR has negotiated a framework agreement MERCOSUR-MEXICO. The agreements negotiated or to 
be negotiated between MERCOSUR member states and Mexico are a part of this framework 
agreement. A free trade agreement between MERCOS UR and Mexico remains to be negotiated. 
 
 Has MERCOSUR established a timeframe fo r finalizing the replacement of those 
agreements?  WT/TPR/M/212/Add.1 
 Page 159 
 
 
 ANSWER: 
  No time frame has been established. 
 
 What type of agreements is MERCOSUR aiming to  conclude in this process: ambitious free 
trade agreements or partial scope agreements?  
 ANSWER:   The process supposes that both types of ag reement are to be taken into consideration. 
 
 Does MERCOSUR plan to notify to WTO these future agreements? 
 
ANSWER: 
 
 The agreements, when signed under the Montev ideo Treaty of 1980, are part of the 
LAIA integration process.  Their notification, a ccording to the established practice, is therefore 
included in the reports presented by the Secretariat General of LAIA through the delegation of Uruguay.  As far as the framework agreements are concerned, they do not contain any trade 
preferences and, therefore, are not required to  be notified under the enabling clause or any 
other WTO provision. 
 
 Could Brazil explain how many agreements  and arrangements have been notified to WTO 
and how many remain to be notified in accordan ce with paragraph 4(a) and (b) of the Enabling 
Clause, paragraph 7(a) of GATT Article XXIV and/or paragraph 7(a) of the GATS Article V, as 
appropriate?  
 
ANSWER: 
  See above. 
 
WTO Secretariat’s report, page 23, para. 49 
 
 A partial scope agreement was signed by MERCOSUR and India on 25 January 2004. The 
report notes that “the trade agreement cover s 450 tariff lines for India and 453 lines for 
MERCOSUR, with reductions of between 10% and 20 % on the MFN tariff”. The agreement is not yet 
in force, pending ratification by Uruguay.  Could Brazil explain the rationale for negotiating a partial 
scope agreement covering only 453 tariff lines?    
ANSWER: 
  The rationale of the agreement was to prom ote trade creation in the covered products. 
 
 Could Brazil indicate the coverage of th e agreement in terms of trade value? 
 ANSWER:   The agreement covers approximately 24% of the bilateral trade value between the 
parties.  
 Why has MERCOSUR not negotiated instead a more ambitious agreement, with a larger 
coverage and thus less trade distortive?   WT/TPR/M/212/Add.1 
Page 160  
 
 ANSWER: 
  The scope of any trade negotiation is to be decided by the parties involved in the negotiating process, according to their interests on the matter. 
 
 Could Brazil explain the foreseen economic impact of this agreement? 
 
ANSWER: 
  In the case of the Mercosur-India Agreeme nt, economic impacts are expected in the 
form of trade creation on the sectors covered by the Agreement.  
 Does Brazil, as member of MERCOSUR, plan to notify this Agreement to WTO? If so, when? 
 
ANSWER: 
 
 Brazil intends to coordinate with its partners the notification of the agreement under the appropriate WTO provisions as soon as it enters into force. 
 
WTO Secretariat’s report, para 23, para.50 
 
 The report notes that MERCOSUR and SACU concluded a preferential trade agreement in 
April 2008.   Could Brazil describe the main elements of this agreement? What is the coverage in 
terms of tariff lines and imports value?  
 
ANSWER: 
 
 The agreement covers trade in goods, rules of origin, safeguards, dispute settlement, 
technical barriers to trade, sanitary and phytosa nitary measures, and customs co-operation.   
  Mercosur’s offer has 1052 tariff lines, wh ich covers approximately 22% of SACU’s 
exports to Brazil. SACU’s offer has 1064 tariff lines, approximately 17% of Brazil’s exports to 
SACU.  
 Could Brazil enumerate the products that have been excluded from the agreement?  
 ANSWER: 
 
 The agreement does not establish a prio ri the exclusion of any products. 
WTO Secretariat’s report, para 23, para.51 
 
 The report notes that Brazil is negotiating preferential trade agreements with Egypt, the 
GCC, Jordan, Morocco and Turkey.  Could Braz il confirm whether negotiations with Turkey and 
Jordan for a conclusion of a preferential trade agreement have finalised?  
 ANSWER:   MERCOSUR and Turkey concluded a Framew ork Agreement for the Establishment of 
a Free Trade Area in June 2008. Negotiations were launched on November, 2008, in Ankara. 
There is no specific deadline for the conclusion  of the negotiations. Negotiations between 
MERCOSUR and Jordan were launched on October 2008. There is no specific deadline for the 
conclusion of the negotiations. 
  WT/TPR/M/212/Add.1 
 Page 161 
 
 
  If so, could Brazil specify the date of signature? Furthermore, could Brazil elaborate on the 
main elements of each agreement, and indicate their coverage in both trade value and tariff lines?  
 ANSWER:  
 As indicated, both negotiations have just star ted; no date for conclusion and signature of 
the resulting agreement has been pre-defined. Th e coverage of both agreements is still under 
negotiation.  
 
 Could Brazil explain in detail the main objec tives of MERCOSUR’s trade policy with regard 
to the negotiation of pref erential trade agreements?  
 ANSWER:   For MERCOSUR, the main goal of preferenti al trade agreements is the expansion of 
market access among the parties involved, includi ng related disciplines on Rules of Origin, 
Preferential Safeguards, TBT, SPS, Dispute Settlement and Customs Cooperation.   Could Brazil confirm whether MERCOSUR will continue negotiating partial scope 
agreements or whether MERCOSUR would opt inste ad for ambitious and WTO compatible free trade 
agreements? 
 
ANSWER:   All trade agreements concluded or being negotiated by MERCOSUR are WTO-compatible. The scope of any trade negotiation is decided exclusively by the parties involved in 
each individual negotiating process, accord ing to their own interests on the matter. 
 
 Could Brazil further elaborate on whether it pl ans and how it intends to include social and 
labour issues in free trade agreements?  ANSWER: 
 
 MERCOSUR has no plans to include social and labour issues in the scope of the free trade agreements that the bloc negotiates. 
 
Brazil’s Report, page 15, para. 54 
 
 Could Brazil indicate whether the overall numb er, and the corresponding amount, of bilateral 
trade transactions between Brazil and Argentina, and in particular small value transactions related to 
SME exports, has increased since the implemen tation of the Brazil-Argentina Local Currency 
Payment System? 
 
ANSWER:   The Local Currency Payment System betw een Brasil and Argentina only began its 
operations in October 2008. There is, thefore, too li ttle data to offer an accurate analysis of its 
operation. Nevertheless, it can be confirmed that the overall number, and the corresponding 
amount, of bilateral trade transactions using local currencies between Brazil and Argentina has 
increased every month since the im plementation of the System. 
 
 
 WT/TPR/M/212/Add.1 
Page 162  
 
 Brazil’s Report, page 15, para. 57 
 
 The EC agrees with Brazil’s observation that the DDA would bring new and structural 
opportunities for developing countries. Particularly for Least Developed Countries (LDCs), the DDA 
would bring DFQF market access to the markets of developed countries and developing countries in a 
position to do so, as provided for by Annex F of  the Hong Kong Ministerial Declaration.  Could 
Brazil explain how and under which timeframe it in tends to implement the Hong Kong Decision as 
regards DFQF?  ANSWER: 
 
 Brazil will implement the DFQF mechanism for LDCs. In principle, this will be done in 
the context of the implementation of the Doha Round results. 
 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
Measures Directly Affecting Imports 
(i) Customs procedures and documentation WTO Secretariat’s Report, page 28, para. 13-14   The Secretariat's report notes that “[a] DSI ma y be used, inter alia, for imports whose value 
does not exceed US$3,000, goods imported via regular and express mail, and imports under the 
temporary import regime.  The use of SISCOMEX is  exempted, and may be replaced by paper forms, 
for certain imports.
" Furthermore, it indicates that there is a “minimum fee of R$40 (some US$21) 
per ID registered in SISCOMEX; d ecreasingly smaller fees apply for each  item added to the same ID.  
The fees may be adjusted annually by an Act of the Finance Minister." 
 
 In the Brazilian Customs regulation, there is no definition of samples and consequently there 
is no specific legal treatment for them. According to IN SRF 611 of 18 January 2006, it is compulsory 
to fill a simplified declaration (DSI) in order to impor t samples. Even though this regulation has been 
modified several times, the requirement for sampl es has been maintained impeding the normal 
promotion of exports.  
 Does Brazil envisage adopting a definition of commercial samples without market value?  
Would Brazil be willing to liberalize these samples fr om previous Custom inspections and procedures 
given the fact that they are not going to be sold  in the market?  How th e commercial samples are 
treated within the intra-MERCOSUR trade? 
 
ANSWER:   This issue is presently under consideration by  the Brazilian authorities. Up to this point 
in time, there is no decision on the adoption of a definition of commercial samples without market value or on the liberalization of these samples from previous customs inspections and 
procedures. In this connection, it is worth noti ng that the ATA Carnet, which Brazil is in the 
process of implementing, includes a definition of commercial samples. 
  With regard to intra-Mercosul trade, harm onized regulations on commercial samples 
are being discussed in the context of the ne gotiations of the Customs Code of Mercosul.  
 
WTO Secretariat’s Report, page xii, para. 10  
 
 The report notes that Brazil has continued to take gradual steps to simplify and modernize its 
customs procedures.  For example, it introduced an  express import declaration regime for frequent 
importers, and streamlined inspection procedures.   WT/TPR/M/212/Add.1 
 Page 163 
 
 
  On 27 March 2008, a trade facilitation task fo rce was created in Brazil. It involves all the 
organisms related to customs procedures. Neverthe less, there are still sev eral complaints from 
European enterprises given the slow process to follow all the obligatory administrative burdens. 
 
 Could Brazil enumerate the decisions that have emerged from the trade facilitation task force 
created in March 2008? 
 ANSWER:   Resolution nº 16 of March 20th 2008 created the Technical Group of Trade Facilitation 
(TGTF). Since then, the Brazilian Government adopted Trade Facilitation measures, which, 
among other benefits, led to reduced customs clearance times. These measures include:  a) Conclusion of the draft legislation submitted to Congress to ratify the Istanbul Protocol (Ata 
Carnet); b) Elimination of licensing requirements for importing airplanes and airplane parts;  
c) Reduction in the number of products subjected  to inspection for internal transit by ANVISA 
and IBAMA;  d) Comprehensive review of legisl ation and licensing requirements for each non-
tariff control agency with a view to reduce duplication and increase efficiency;  e) improvements to SISCOMEX in order to allow agencies to automatically approve less risky operations;  
f) Incorporation of new software to SISCOMEX  to allow the attachment of electronic 
documents to the system; and g) Nationwide evaluation of the available workforce of all 
Brazilian government agencies operating at borders, in order to provide adequate personnel to 
deal with increased trade flows. 
  In addition, the TGTF has been working on  the following actions:  (i) Definition, 
development of criteria, and introduction of risk management tools for non-tariff control 
agencies into SISCOMEX; and (ii) Implementation of more efficient rules for inspections of 
wood products and containers consisting of wood , including acceptance of a certification issued 
by exporters or importers that the wood has been treated. 
 
 According to EC's information, European fishing boats placed in the Atlantic-South Ocean 
are not authorized to discharge in transit in the North Brazilian ports.  C ould Brazil confirm this 
information?  If this is the ca se, what measures is Brazil undertaki ng in order to fully comply with 
GATT Article V (Freedom in transit) in this regard?  
ANSWER: 
  The operation referred to by the EC does not seem to correspond to a transit operation 
in the sense of GATT Article V. Brazil fully comp lies with its obligations under GATT Article V 
(freedom in transit) whenever this provision ap plies. Brazil hopes that other WTO Members, 
specially those hosting important internat ional transportation hubs, do the same. 
 
(iv) Tariffs 
WTO Secretariat’s Report, page 32, para. 43-45  
 
 The report notes that the “2008 simple aver age applied MFN was 11.5%, up from 10.4% in 
2004.  This is mainly due to an increase of 1. 1 percentage points in the average tariff of non-
agricultural products (WTO defin ition) to 11.6%, since the agriculture sector average remained 
practically constant at 10.1%.  More specific ally, between 2004 and 2008 , Brazil increased its 
applied tariffs for chemical products, footwear, and textiles and clothing; the latter incurred the 
highest increase (7.9 percentage points).  Brazil's tariff structure still shows low dispersion, as 
measured by a coefficient of variation of 0.7”. The highest average rate applies to the textile and 
clothing product group (25.1% in 2008, up from 17 .2% in 2004).  Could Brazil explain the reasons 
why tariffs have been increased?  Could Brazil expla in the rationale for tariff peaks applying to the WT/TPR/M/212/Add.1 
Page 164  
 
 above-mentioned sectors having been increased, and whet her a subsequent return to lower levels is 
foreseen? 
 
ANSWER: 
 
 The simple average increase does not reflect Brazil’s general trade policy, since it is 
related to changes in the tariff profiles of a fe w sectors which are particularly sensitive. Those 
applied tariffs are related to particularly sensiti ve sectors, as they are mostly labour-intensive. 
Analysis of import flows for the same sectors reveals an accelerated growth of imports for that period, including the lines for which applied tariffs  are higher. Tariff levels are not restricting 
trade. The related imports for textile and clot hing, for instance, increased by 178% over the 
period 2004-2008 (from US$ 1,49 billion in 2004 to US$ 1,64 billion em 2005; US$ 2,29 billions 
in 2006; US$ 3,23 billions in 2007; US$ 4,16 billio ns in 2008). The modal tariffs are lower than 
some developed countries’ peaks for the same se ctors. With regard to chemicals, there were 
limited topic increases in tariffs: the modal tariff is only 2% and the average applied tariff is 
around 7%. 
 WTO Secretariat’s Report, page 37, para. 63 
 
 The report highlights that the WTO Secretaria t “did not have access to the tariff-line level 
rates actually applied” under Brazil’s preferential trade agreements in 2008.  What prevented Brazil 
from furnishing the WTO Secretariat with this information?  
 
ANSWER: 
  As Brazilian preferential agreements are negot iated in terms of the preferences to be 
applied to the CET, the resultant applied tariff in  a preferential import operation results from a 
percentual reduction of the tariff. There are not Brazilian preferential arrangements negotiated 
in terms of residual tariffs.  (v) Other charges affecting imports WTO Secretariat’s Report, page xiii, para. 19  
 
 Law No. 11,727 of 23 September 2008 provides for the introduction of specific taxes in any 
duty line.   Could Brazil explain the objective of this Law?   ANSWER: 
 
 Paragraph 2 of Law 11.727 of 23 June 2008 foresees the possibility of the Brazilian Government imposing specific tariffs. The legal instrument has not been applied and there is a 
need for a complementary legal instrument  for its imposition – which is still under 
consideration by CAMEX. In any case, if specific tariffs are adopted, they will respect the WTO 
bound rates for each product. 
 
WTO Secretariat’s Report, page 37, para. 64  
 
 The report indicates that in addition to tariffs  “the following internal taxes are levied on 
imports:  the industrial products tax (IPI); the tax on the circulation of merchandise and on the supply 
of interstate transportation and communication servi ces (ICMS); and contributions to the social 
integration programme (PIS) and to finance social security (COFINS).  All four taxes follow value-
added tax principles".  Could Brazil ensure that the mentioned internal taxes are equally levied on 
domestic and imported pr oducts?  What are the intentions of th e Government of Brazil with regard to  WT/TPR/M/212/Add.1 
 Page 165 
 
 
 the reform of the ICMS, which impacts particular ly on premium imported goods and adversely affects 
their competitiveness in the Brazilian market?  ANSWER:  
 The situation for domestic sales is the same of that of imports.  
  The ICMS falls under the competence of States. Each State determines the duty and how it is applied. The government proposed tax reform is aimed at reducing the complexity of 
the ICMS legislation. Brazil does not consider that ICMS has a particular impact on premium 
imported goods. 
 WTO Secretariat’s Report, page 39, para. 73-74 
 
 The importation and commercialization of gasoline, diesel, kerosene, fuel oil, and liquefied 
petroleum gas (LPG), and combustible ethylic alc ohol are subject to a contribution for "interventions 
in the economic domain" (CIDE).  This tax is char ged as a specific rate per import unit.  Revenue 
from the CIDE accounted for some 0.3% of GDP in 2006 (latest year available).   Furthermore, “Brazil applies two special char ges on transportation, including imports:  the 
additional airport tax (ATAERO), and the additional ta x for the renovation of the merchant marine 
(AFRMM)”.  Could Brazil ensure that the above-mentioned charges and taxes also apply to domestic 
products and supplies?  Could Brazil indicate whether there are duties on tobacco and alcoholic 
beverages?  ANSWER: 
 
 The ATAERO and the AFRMM are not related to the origin of goods, its basis for 
application is the service cost.   Brazil does not apply duties on tobacco and alcoholic beverages.  
(vi) Contingency measures 
(b) Anti-dumping and countervailing duties WTO Secretariat’s Report, page 40, para. 82   The Secretariat’s Report states that Brazil applies in most cases the lesser duty rule. 
However, since 2007 Brazil has applied the full ma rgin of dumping on suppliers who do not respond 
to the questionnaires sent by SECEX during the inves tigation.  Could Brazil explain the background 
and the reasons of this change of practice since 2007 and whether it will continue to apply this 
practice?  ANSWER: 
 
 Brazil continues to apply the lesser duty rule in most cases. However, due to the recent 
increase in the level of participation of exporters in the investigations and as a way of recognizing the cooperation efforts made by them in the investigating process, the Brazilian authority decided to differentiate between the int erested parties that actively take part in the 
investigation and those that remain silent throug htout the process. In general, the former are 
granted the benefit of the lesser duty rule, whereas the latter are subject to the full margin of dumping. 
 
 WT/TPR/M/212/Add.1 
Page 166  
 
 WTO Secretariat’s Report, page 40, para. 83  
 
 According to the WTO Secretariat’s report, Braz il introduced into its legislation in September 
2008 a provision which allows the Government to extend AD and CV measures (including to parts, 
pieces, and components of a product) to third countri es whenever it verifies that elusive practices are 
undermining the application of such measures.  Could Brazil please inform us whether this 
amendment has been notified to the WTO and prov ide us with the related reference?  In addition, 
could Brazil explain how this prov ision is applied, and the reason for its introduction?  Could Brazil 
please explain the notion of elusive prac tices and how it determines their existence? 
 
ANSWER: 
  The aforementioned legislation was enacted in 2008 and is currently pending regulation. 
Since the new provision as established by the aforementioned amendment is not yet being enforced due to the lack of specific regulation, the amendment has not yet been notified to the 
WTO and no investigations on elusive practices have been undertaken.  
(vii) Prohibitions, restrictions, and licensing 
(a) Import prohibitions WTO Secretariat’s Report, page 44, para. 105 
 
 Could Brazil explain the reasons for impos ing import restrictions on certain grapes and 
grape juices to be used in the production of wine?  ANSWER:  
 The measure has as an objective to en sure adequate inspection for the correct 
application of health and consumer legislation. 
 
WTO Secretariat’s Report, page 46, para. 109; page 93, para. 340; and page 52, para. 140  
 
 The WTO Secretariat’s report explains that  Brazil restricts the importation of some 
pharmaceutical products, narcotics, psychotropics and  precursors, products and equipment for health 
and diagnosis, tobacco products, cosmetics, foods tuff, and other products to protect animal and 
human health and these exporters, importers or manufacturers must be authorised and registered with ANVISA.   
 According to IN 335 and IN 336 of 22 Ju ly 1999, exporters and producers of cosmetics and 
home products are obliged by the Health Ministry to communicate to ANVISA Agency confidential 
information (name, formula, etc.). The requirement to disclose information needs to be filled well in 
advance the INPI-ANVISA has granted the patent for the products to be exported.   Could Brazil 
explain the way the essentia l information required by ANVISA is protected?  What sort of guarantees 
do producers have in relation to this confidential information? 
 
ANSWER: 
  It is important to note that Resolution no. 335/99 establishes a simplified mechanism for producers/exporters/importers to accomplish th e legal requirements (law 6360/76) of 
registration of cosmetics – grade of risk 1 – a nd was completely substituted by Resolução RDC 
nº 343, of 13 december 2005 that maintained the same mechanism as before in an electronic manner. Resolution 336/99 creates the same method ology for home products – grade of risk 1 – 
and was completely substituted by Resoluç ão RDC nº 184, de 22 de outubro de 2001. The 
information required in these pieces of legislation is compatible to international standards and  WT/TPR/M/212/Add.1 
 Page 167 
 
 
 has the main objective of guaranteeing safety, qu ality and efficacy of the products that will be 
commercialized in our territory.   All the documents presented to public au thorities, in this case, ANVISA, for 
registration/notification purposes are confidenti al and kept under Government responsibility. 
In particular, Decree 4.553/2002regulates matters re lated to the protection of data, information, 
documents and confidential materials in the scope of the Brazilian Public Administration. 
 
Import licensing 
WTO Secretariat’s Report, page 46, para. 110  
 It seems from the WTO Secretariat’s report that  products subject to AD duties fall under the 
non-automatic licensing scheme. However, it app ears that the non-automatic licensing scheme 
combined with a minimum import price already appli es as of the initiation of the investigation and not 
only once duties are imposed.  Could Brazil explain how  this is justified (on which basis the minimum 
import price is set) and clarify this practice? 
 
ANSWER:   Brazil does not apply any import licenses based on dumping investigations. It may 
happen that a product under dumping investigation is subject to import licensing for a reason 
other than the dumping investigation, such  as safety or environment protection. 
 
WTO SECRETARIAT’S REPORT, PAGE 46, PARA. 111-112  
 
 According to the authorities, the majority of products subject to non- automatic licensing are 
products that may cause damage to human, plant or animal health; products capable of causing 
environmental damage; and produc ts subject to tariff quotas. 
  Almost 3,500 eight-digit level lines in the common external tariff (CET), or some 35.8% of all lines, are subject to non-automatic licensing.   The list of products spans all HS headings, except headings 47, 51, 57, 66, 68, 77, 86 and 91.  Could Brazil explain the rationale for imposing non-automatic licenses to such a broad range of g oods, and whether a phase-out of these measures is 
foreseen? 
 ANSWER:   Non-automatic licenses are an instrument to  integrate different control requirements, 
imposed by different agencies, within a single el ectronic system for the processing of import 
documentation – the Integrated System of Foreign Trade (SISCOMEX).   Each governmental agency in charge of imposing non-automatic import licensing requirements derives its specific competence from law and/or international treaties. The website 
of the Ministry of Development, Industry and Commerce (MDIC – 
www.desenvolvimento.gov.br) contains a list of th ose agencies, the legal basis for the controls 
imposed by them, and the justification for th eir implementation. The Foreign Trade Chamber 
(CAMEX), the government body responsible for coordinating Brazilian foreign trade policy, 
analyses licensing requirements and discusses al ternative solutions against the backdrop of 
administrative law, fundamental principles of rea sonability, proportionality, public interest and 
efficiency. Non-automatic licensing is authoriz ed only when considered technically necessary, 
legally-based, and in the absence of a better alternative.   WT/TPR/M/212/Add.1 
Page 168  
 
  In order to minimize the impact of licen sing requirements on Brazilian imports, all 
governmental agencies involved in import contro ls are periodically required to review their 
licensing requirements and to reduce their contro ls to the minimum necessary, considering the 
principles of reasonability, proportionality, publ ic interest and efficiency. As an additional 
measure to minimize the impact of licensing on trade, Resolution CAMEX nº 70/2007 
introduced a new process whereby the merit and the legality of agencies’ demands for products 
to be subject to licensing are checked in order to avoid the occurrence of multiple authorizations 
and inspections, with a view to saving time and costs. 
 
(viii) Technical regulations and standards (a) Institutional and legal framework WTO Secretariat’s Report, page 49, para. 133 
 
 The Brazilian authorities note that the vast majo rity of Brazil's technical regulations are 
established based on international standards.  In th e exceptional cases where this  is not the case, they 
are based on performance criteria.  Could Brazil pr ovide some clarifications with regard to the cases 
in which international standards are deemed to be ineffective or  inappropriate for the fulfilment of 
legitimate objectives pursued? For instance, there are cases in which technical regulations issued by 
Brazilian regulatory bodies are not based on ISO standards, compliance with which is widely accepted as sufficient proof of conformity by other WTO Members, including the EC.  
 
ANSWER: 
  In Brazil, technical standards and regulat ions are, as far as possible, based on 
international standards. However,  in cases in which no international standard is available or the 
existing ones are inadequate since they do not take  into account the specific geographic, climatic 
or technological conditions in Brazil, or the desired level of consumer protection, national 
standards have to be developed. The project s of these new standards and regulations are 
notified, as appropriate, under TBT disciplines. 
 
(b) Conformity assessment 
WTO Secretariat’s Report, page 51, para. 143  
 In October 2008, 59 products were subject to mandatory certification, including baby bottles 
and dummies, buses, electrical cables, electrical applian ces, fuel tanks, gas containers, matches, parts 
for vehicles, preservatives, steel tub es, toys, and tyres.  Certification is  also mandatory for eight types 
of services, mostly linked to motor-vehicle and gas distribution, and for the process of manufacturing 
food baskets.  Motor-vehicle safety and the transpor t of dangerous products are subject to mandatory 
inspection. 
 
 According to information at the EC's disposal , there are cases in which testing requirements 
for demonstrating conformity w ith Brazilian regulations are more  burdensome for imported products 
than for domestically produced goods. One example would be the toys sector, in which domestic 
products can be certified, based on the evaluati on of the manufacturer's quality management system 
and type testing, with all procedures completed prio r to the goods being shipped. By contrast, foreign 
produced toys are subjected to a more burdensome pr ocedure, which requires that samples should be 
taken from each imported lot into Brazil and tested by a Brazilian laboratory.  Could Brazil explain 
the reason why conformity assessmen t procedures for some imported goods are stricter than those for 
domestic goods?  
   
  WT/TPR/M/212/Add.1 
 Page 169 
 
 
 ANSWER: 
  Brazil has so far observed Article 2.1 of the TBT Agreement, which relates to no less favorable treatment as stated below:  
 “Article 2.1 Members shall ensure that in respect of technical regulations, products 
imported from the territory of any Member sha ll be accorded treatment no less favorable than 
that accorded to like products of national origin  and to like products originating in any other 
country.” 
 
 The technical specifications required by INM ETRO for the import of tyres are different for 
those adopted by the UN-ECE WP29 World Forum Harmonization of Vehicle Regulations (Norm ECE/TRANS/WP.29/343/Rev.16). This situation increases the costs for producers and ex porters and 
could constitute a breach of the WTO Agreement on Technical Barriers to Trade.  Could Brazil 
explain the technical reasons for not adop ting the norms accepted by the UN-ECE? 
 
ANSWER:    Brazil seeks to adopt international standards in  its technical regulations, specially those 
coming from international bodies mentioned in  the TBT agreement, such as ISO and IEC. If 
there is no international standard, a regional or local standard is adopted. 
 
(ix) Sanitary and Phytosanitary measures 
WTO Secretariat's Report, page 55, para. 168    According to the WTO Secretariat Report, "[r]isk assessment, including recognition of 
inspection systems, certification of foreign establishm ents, import licences, re-inspection procedures, 
and transit controls of animals and their pr oducts are conducted by  MAPA and governed by 
Ministerial Act No. 183 of 9 October 1998".  Could Brazil clarify and provide details of the criteria 
used to justify - including the respective risk asse ssments - the import prohi bition of products of 
animal origin that: a) have been produced in urban areas, and b) have not been submitted to 
maturation or heat treatments, or both? 
 
ANSWER:   Import prohibitions for products of animal origin are not addressed in the Ministerial Act No. 183 of 9 October 1998, nor in the WTO Secretariat Report. With respect to rural and 
urban areas, Brazil does not make distinctions between them when evaluating if an area is 
disease-free. Since it has still not been possible to attest that th ere are areas free from classical 
swine pest in the European territory, Brazil allows  only the importation of swine meat products 
that have been submitted to thermo processing  or prolonged cure. Brazil will gladly consider 
any necessary information sent by the EU for the recognition of European Classical Swine Pest-
free areas. 
 
 Does Brazil clarify whether it incorporates in its  regulatory process of authorising the import 
of plants, animals, and their products (including th e disease and pest risk asses sment), the number of 
diseases and pest import cases and/or interceptions and the evidence that diseases and pests have been found and reported in the EU Member State of  origin? How long does it take to conclude the 
respective authorisation process?  WT/TPR/M/212/Add.1 
Page 170  
 
 ANSWER: 
  The Brazilian regulatory framework takes into account the aspects mentioned by the EU in conducting risk assessment fo r animal and plant product imports. 
 
 In this regard, in accordance with ISSBs and practices followed by most countries, the 
period needed to undertake proper risk assessme nt is not fixed and takes many factors into 
account. Brazil is willing to discuss this issue at the SPS Committee. The sanitary status of the 
exporting areas and the scientific information ava ilable, for instance, is one of the factors 
considered, among others. 
 
WTO Secretariat's Report, page 55, para. 172 
  According to the WTO Secretariat Report, "B razil accepts phytosanitary and zoosanitary 
certificates issued by official sanitary services in countries that follow  the guidelines of Codex, IPPC, 
OIE, and other international scientific organizations.  Import prohibitions for the protection of animal 
health are in place for a number of products; they are established under various regulations, and there is no unified list".  Could Brazil clarify its own policy, import procedures and prohibition 
criteria related to the mentioned Codex, IPPC, and OIE guidelines, and in particular if Brazil follows 
and implements the World Organization for Animal He alth (OIE) BSE risk classification on the basis 
of which 25 EU Member States belong (since May 2008) to either a "controlled" or "negligible" risk 
status, and allows the import of animals and products of animal origin that comply with the relevant 
OIE recommendations? 
 
ANSWER 
 
 Brazil adopts risk categories for BSE, in  accordance with OIE categorization on the 
sanitary status of Member States and sets out a “decison matrix for the importation of animal, 
products, and subproducts of animal origin”, which takes into consideration the risk of 
imported products as well as that of the expo rting country. This process follows the guidelines 
set in Normative Instruction 49/2008. 
 
WTO Secretariat's Report, page 56, para. 175 
 
 The WTO Secretariat Report notes that the "[r]ecogn ition of pest- or disease-free areas or of 
areas of non-dangerous pest and disease prevalence is s ubject to an on-site inspection, as well as an 
analysis of the exporting country's relevant proc edures. Based on questionnaires sent to the SPS 
authorities of the exporting country, Brazilian author ities evaluate whether the inspections systems, 
accrediting procedures, and product/la bel approval mechanisms are equi valent to those applied in 
Brazil.  On-site inspections of the exporters' est ablishments are undertaken at the cost of the 
interested party."  Could Brazil confirm under wh ich conditions it recognises the regionalisation 
principle (in line with Article 6 of the WTO SPS Agreement and with the relevant OIE 
recommendations), and in particular  if Brazil applies the regionalisation principle and allows the 
import of animals or products of animal origin from certain regions of the EU Member States that 
have not been affected by animal diseases?  ANSWER  
 Brazil recognizes the principle of regionalization. It examines the applications for 
recognition of pest or disease free areas or areas of low prevalence of pests or diseases, following 
the recommendations of the SPS Agreement and of  Chapter 4.3 of the Animal Health Code 
Land of the OIE.  
  WT/TPR/M/212/Add.1 
 Page 171 
 
 
 Measures Directly Affecting Exports 
(ii) Export taxes WTO Secretariat’s Report, page xiii, para. 16 
 
 The WTO Secretariat’s Report outlines that “Brazilian legislation allows for the application 
of an export tax of 30%, which can be decreased or  increased (up to 150%).  Taxes may in principle 
be applied to all exports, but in practice are levied only on leathers and skins”   According to CAMEX IN 42 of 19 December 2006, Brazil increased in 2007 the wet-blue 
export tax up to 9% indefinitely.  Could Brazil exp lain the rationale for applying export taxes on hides 
and skins?  Is Brazil planning to phase-out this syst em? Has Brazil foreseen a deadline to eliminate 
or reduce the wet-blue export tax? 
 
ANSWER: 
 
 The export tax on wet blue leather was adopted in a context where most leather 
importers apply tariff escalation to the leather chai n. For the time being, there is no phasing-out 
or plan to eliminate this tax.   (iii) Export prohibitions, restrictions, and licensing Export prohibitions 
WTO Secretariat’s Report, page 60, para. 190   
 The WTO Secretariat's report explains that th e exports of wood in the rough (HS 4403) have 
generally been suspended unless certain conditions a re met, and are subject to prior approval of the 
IBAMA.  Could Brazil explain the rationale for prohibiting the export of this type of wood, and 
whether a phase-out of the prohibition is foreseen?  
ANSWER: 
  Ibama’s request for prior approval is a pplied for environmental purposes. Adequate 
control of trade in wood can only be done at the sawmill level.   
 
WTO Secretariat’s Report, page 60, para. 192  
 
 Exports of certain wood (pine, imbuia, and vi rola) are subject to specific rules and require 
prior authorization from the IBAMA.  Exports of mahogany, Brazil wood, and cedar are subjected to 
permission by CITES, which is issued by the IBAM A.  Could Brazil explain the rationale for taking 
these export licensing measures, and whether a phase-out is foreseen?  ANSWER:   Licensing is necessary for environmenta l reasons, including to enforce CITES 
obligations. 
 WTO Secretariat’s Report, page 63, para. 209  
 
 With regard to export finance, insuran ce and guarantees, Brazil maintains the RECAP and 
PROEX schemes.  Could Brazil explain in deta il the rationale for maintain each scheme? 
Could Brazil indicate whether new regulations  and related changes have been adopted regarding 
these two schemes?  Under what legal basis th ese schemes are applied? Does Brazil consider these 
schemes to be in compliance with the SCM Agreement?  WT/TPR/M/212/Add.1 
Page 172  
 
 ANSWER: 
  PROEX is aimed at providing access to credit at conditions similar to those obtainable 
in international markets. In accordance with Resolution CAMEX No. 27, of 6 May 2008, it is focused on financing micro, small or medium size enterprises.  
 
 RECAP is aimed at simplifying the admi nistrative procedures related to the 
compensation and refund process that those firm s previously had to apply systematically. We 
note that RECAP is not related to expo rt finance, insurance and guarantees. 
 
 Brazil does not provide any kind of subsidy through RECAP or PROEX. RECAP 
legislation merely suspends the PIS and COFINS  levied on the acquisition of capital goods 
acquired on the domestic market or imported by  export-oriented firms. Therefore, it is not 
possible for these companies to use or maintain any PIS and COFINS credits related to the 
acquisition of capital goods made under the pr ogramme. In the case of PROEX, its financial 
costs are fully covered, at interest rates compat ible with those of the international market. 
Therefore, both programmes are fully in complia nce with the provisions set forth in the WTO 
Agreement on Subsidies and Countervailing Measures.  (4) Measures Affecting Production and Trade Government procurement 
WTO Secretariat’s Report, page 85, para. 306   
 The EC understands that Brazil recognises the merits  of the GPA.  Does Brazil intend to take 
further steps as far as the GPA is concerned?   
ANSWER: 
  Brazil is not considering becoming an  observer of the Committee on Government 
Procurement.   WTO Secretariat’s Report, page 86, para. 310 
 
 How does the Tendering Law establishes its own coverage: through definitions of the entities 
covered (such as "entities directly or indirectly admin istered by the Federal government") or through 
exhaustive lists of entities?   
ANSWER: 
  The Tendering Law establishes its coverage in  its Article number 1, by  stating that 
every branch of the federal, state and municipa l levels are subject to the general rules therein 
established. Public enterprises and foundations, i ndependent agencies and other entities directly 
or indirectly controlled by the Union, the States  or the Municipalities must comply with the 
dispositions of Law 8.666. Public enterprises and government controlled enterprises operating 
under the private law regime (such as Petrobras an d Banco do Brasil) are equally subject to the 
requirements set by the Tendering Law. Airpor ts, railways, urban transport operators, water 
utilities, electricity providers and ports will have  to comply with the Tendering Law if they 
correspond to one of the categories mentioned in article 1º of Law 8.666. 
 
 States and Municipalities have, and normally use, the constitutional power to establish 
their tendering regimes as far as they do not cont radict the general rules outlined by the Union. 
All exemptions from the Tendering Law are mentioned in its articles 24 and 25. 
  WT/TPR/M/212/Add.1 
 Page 173 
 
 
 WTO Secretariat’s Report, page 86, para. 311  
 
 Could Brazil be more specific as to the ty pes of public companies, including those with 
private participation that are subject to the Te ndering Law? Are, there for instance, airports, 
railways, urban transport operators, water utilities,  electricity providers and ports subject to the 
Tendering Law? Is there an exhaustive list of all th e public companies subject to the Tendering Law?  
Do the Tendering Law or State and local public  procurement rules also cover public companies 
depending from States and municipalities?  Do municipalities and States contracting authorities 
apply the Tendering Law directly or do States and municipalities complement it through local 
legislations (in particular in the States of São Pa ulo, Rio de Janeiro and Minas Gerais)?  Does the 
Tendering Law cover the purchases of all services or a re some services exempted from it? If so, is 
there a list of those services exempted?   ANSWER:  
 The Tendering Law establishes its own coverage in its Article 1, by stating that every 
branch of the federal, state and municipal le vels are subject to the general rules therein 
established. Public enterprises and foundations, i ndependent agencies and other entities directly 
or indirectly controlled by the Union, the States  or the Municipalities must comply with the 
dispositions of Law 8.666.  
 Public enterprises and government controlle d enterprises operating under the private 
law regime (such as Petrobras and Banco do Bras il) are equally subject to the requirements set 
by the Tendering Law. Airports, railways, urban transport operators, water utilities, electricity 
providers and ports will have to comply with the Tendering Law if they correspond to one of the 
categories mentioned in article 1º of Law 8.666. 
 
 States and Municipalities have, and normally use, the constitutional power to establish 
their tendering regimes as far as they do not cont radict the general rules outlined by the Union. 
All exemptions from the Tendering Law are mentioned in its articles 24 and 25. 
 
WTO Secretariat’s Report, page 86, para. 313 
 
 Does the Tendering Law also foresee the publicatio n of contract award notices informing on 
the successful bidder and/or the value of the contract awarded?  Is the situation different in States or 
municipalities?  
ANSWER: 
  There is no such provision in the Tenderi ng Law, although the tendering notice may 
foresee procedures for publishing contract award notices. 
 
WTO Secretariat’s Report, page 88, para. 326  
 
 The drafting of a new law specific to proc urement by public enterprises appears to be 
ongoing.  What are the main features of this draf t legislation compared to the current Tendering 
Law?  
 
ANSWER:   The Bill of amendment to the General Law of Tenders and Contracts is under revision in the Brazilian Senate. It seeks primarily to enhance efficiency in public tendering, by a 
broader use of Information Technology resources in bids. More specifically, the bill seeks, WT/TPR/M/212/Add.1 
Page 174  
 
 among other provisions, to foster the use of inverse auction as a tendering modality and the use 
of the official website as a means to publish information concerning tenders. 
 
IV.  Trade policies by sector 
(1) Agriculture  
WTO Secretariat’s Report, page 98, para. 17  
 The Report states that an OECD report calculates Brazil’s average Producer Support 
Equivalent (PSE) at 5% in 2003-05, increasing from  4% in 2004 to 6% in 2005.  Could Brazil provide 
more updated data?  
 
ANSWER:   Brazil does not use the OECD methodology for assessing its collected national data. 
However, the Brazilian Government is finalizin g the compilation of information regarding 
WTO notifications on domestic support for the years 2005, 2006 and 2007.  Brazil intends to 
circulate them by the end of the first semester of 2009.  WTO Secretariat’s Report, page 99, para. 19 
 
 The Report notes that Brazil described s upport programmes for approximately US$40 billion 
for 2008-09. In the WTO committee on Agriculture of September 2008, Brazil “pointed out that most 
of these measures (such as the PRONAF programme ) would continue to be classified under the 
special and differential treatment provisions of Ar ticle 6.2 of the Agreement of Agriculture, and hence 
excluded from the calculation of the AMS”.  Coul d Brazil explain the difference between investment 
credits for family programmes and those for comm ercial farms? Could Brazil indicate why they 
notified the latter under Article 6.2 of the Agreement of Agriculture, and why in this case commercial 
farms are not considered differently to family ones?  
 ANSWER:   1st Subquestion - Pronaf credits are offered at more favorable conditions than those for 
commercial farmers. Nevertheless, Pronaf is desi gned to benefit exclusively family farmers, who 
are, by legal definition, resource-poor produc ers and owners of small areas, being their 
production mainly targeted  to domestic markets. 
  2nd Subquestion - Article 6.2 of the Agreement on Agriculture states that “…investment 
subsidies which are generally available to agr iculture in developing country Members and 
agricultural input subsidies generally available to low-income or resource-poor producers in 
developing country Members shall be ex empt from domestic support reduction 
commitments…”. Therefore, Brazil understands that production credits for small farmers 
(PRONAF) and all investment credits for agricultu re fall under Article 6.2, and are thus exempt 
from domestic support  reduction commitments . 
 WTO Secretariat’s Report, page 100, para. 22  
 
 The report indicates that credits are granted at  an annual interest rate of 6.75%. It is 
important to note that SELIC int erest rate has been shifted from 12.25% to 13% in July 2008 and 
subsequently to 13.73% in September 2008. Cutting rates for “mandatory resources” would be 
understandable only in case of decreasing interest rates. Therefore, increasing interest rates 
combined with a cut of preferential rates lead to a higher value of the subsidy in real terms.  Could 
Brazil specify why those interest rates were cut from 8.75% to 6.75%? 
  WT/TPR/M/212/Add.1 
 Page 175 
 
 
 ANSWER: 
  The preferential rural credit interest rate of 8.75% remained constant since the 1998/1999, but the basic interest rate SELIC decre ased in the 2005-2007 period, mainly in 2007 
whose drop was sharp, followed by the persistent decline of inflation. Thus, the implicit real 
interest rate of the preferential rural credit increa sed and so did the financial cost for the sector. 
In order to countervail that effect, the annual interest rates of concessional rural credit for 
working capital and commercialization were redu ced from 8.75% to 6. 75% in the 2007/2008 
crop season.  
WTO Secretariat’s Report, page 100, para. 23  
 What methodology has been used for the calcul ation of new rates for each specific program? 
 ANSWER: 
 
 The new rate of 6.75% was determined under the criteria of preserving the level of support to producers.  WTO Secretariat’s Report, page 101, para. 24 
 
 The Report notes that “benefits to rural credit recipients may have in creased thereafter, since 
rates applied to rural credit were lowered during the period under review, from 8.75% to 6.75%. 
While this initially corresponded to a decline in market interest rates,  these rates have been rising in 
2008, resulting in an increase in the implicit subsidy.  The authorities note that there are social and 
economic reasons for maintaining this policy.  Could Brazilian authorities elaborate further on the 
reasons for maintaining this policy? 
 ANSWER:   Brazil has periodically revised its agricul tural policy since the major reform undertaken 
in the early 1990s and will continue to pursue its modernization based on the following criteria: 
(a) a more market-oriented approach, increasing  the participation of private sources of 
financing; (b) the pursuit of higher efficiency in  the allocation of concessional credit resources; 
(c) improvement of its policy instruments; (d) higher transparency on farmers' indebtedness and accountability, guaranteeing them bett er access to credit. Another initiative under 
consideration is the strengthening of futures ma rkets in providing support to farmers, which 
would dilute their risk and sustain their in come. These are the main challenges Brazil must 
overcome in order to expand and improve the co untry’s agricultural performance. In January 
2009, the basic interest rate was reduced by 1%  from 13.75% and the general expectation is 
that it will continue to decrease. Consequently, the implicit benefit to farmers would tend to 
diminish as well.  
 
WTO Secretariat’s Report, page 105, para. 35  
 
 Could Brazil explain why debt reschedu ling for low-income programmes (PRONAF, 
PROCERA, PROGER) are the only ones that have been notified under Article 6.2 of the Agreement of 
Agriculture? 
 
ANSWER: 
 
Debt rescheduling for low-income progr ams (PRONAF, PROCERA, and PROGER) are 
the only ones that have been notified under Arti cle 6.2 of the Agreement on Agriculture because WT/TPR/M/212/Add.1 
Page 176  
 
 they are the only part of the debt reschedu ling that falls under programs for low-income and 
resource-poor producers. Other debt reschedu ling notifications fall under non-specific AMS . 
 
(4) ENERGY 
(iv) Renewable energy 
Brazil's Report, page 26, para. 125  
 In its government report, Brazil underlin es its commitment to renewable energy and 
sustainable development. Could Brazilian authorities please provide more information on the state of 
reform and plans for liberalisation in the area of environmental services?  
ANSWER: 
  At the current time, regulatory changes are not being considered. 
 
Brazil's Report, page 26, para. 126-127  
The Secretariat's report outlines that "widespread access to affordable energy is really important 
to achieving the goals of sustainable development, as  means to promote social inclusion and combat 
poverty, promote national integration and the reduc tion of greenhouse gas emissions."  Furthermore, 
"Brazil also considers bioenergy, including biofue ls, an indispensable tool for the expansion and 
diversification of the energy matrix.  By 2020, biom ass electricity should meet 15% of the national 
need for electricity.  As for the transport sector, the use of ethanol and biodiesel plays a key role in 
the pursuit of sustainable development, climat e change mitigation and energy security."   
 
 Considering the increasing use of biofuels and Br azil's contribution to create an international 
market for biofuels, could Brazil elaborate on what measures Brazil takes to ensure the sustainability 
in biofuels production, including respect for core labour standards and land- use change implications 
(both direct and indirect)? 
 ANSWER   The sugar and ethanol industry in Brazil crea tes about one million direct jobs (including 
in family companies and cooperativ es) and three million indirect jobs.  
 
 Brazil has a very strict labor legislation and has signed the main International Labor 
Organization (ILO) Conventions (including 29 and 105), which expresses its commitment to 
ensuring the adequate treatment of Brazilian wo rkers. The average family income of workers in 
the ethanol sector is higher than that of 50% of Brazilian families. Working conditions on sugar 
cane farms have improved significantly in th e last decade. The occurrence of illegal labor 
practices in sugar plantations is residual and th e government has intensified its inspections, 
thereby curbing abuses.    Another important initiative aiming at promoting an open dialogue between Brazilian workers and the private sector is the Roundtable for the Improvement of Work Conditions in 
the Sector of Sugarcane, created and coordinated by the Presidency of the Republic. 
  With regard to land use, the long term Braz ilian experience in large-scale production of 
sugarcane has demonstrated that due to consta nt productivity gains, increase in production 
does not mean a proportional increase in cultivated area. The expansion of sugarcane in Brazil 
is taking place in degraded grazing areas in  the Center-South region, far away from the 
Amazon forest. Although the savannah region is  a promising area for the cultivation of 
sugarcane, the data available about projected shor t and long-term investments indicate that the  WT/TPR/M/212/Add.1 
 Page 177 
 
 
 expansion of sugarcane will occur in the Western reg ion of São Paulo as well as in some parts of 
the states of Mato Grosso and Goiás.    The Brazilian government is also undertakin g an agroecological zoning for sugarcane, 
an important instrument in promoting sustaina bility. The zoning exercise will ensue policies 
determining in which areas the cultivation of sugarcane will be prohibited, allowed or 
encouraged. In respect to indirect implications of land-use change, it should be pointed out that there is no universally accepted methodology to e valuate such implications and further research 
should be conducted in order to draw obj ective conclusions regarding this issue.  
 
 Finally, it should be noted that technologica l advancements - such as the use of residues 
from the process of distillation as fertilizers; seed improvement; the use of bagasse as animal 
feed and the production of electricity from co-g eneration – also contribute to the sustainability 
of the whole production chain and allow the re duction of operational costs of the plants 
ensuring the maintenance of high levels of productivity in the production of of ethanol and 
sugar.  
(5) Manufacturing 
WTO Secretariat’s Report, page 118, para. 106  
 
 Among the activities to which new tax exempti ons worth circa USD 3.3 billion are being 
granted, there are activities where Brazil is c onsidered by an OECD study to have a revealed 
comparative advantage (e.g. the production of non- metallic products, machinery and equipment, and 
motor vehicles). Could Brazil explain the reas ons behind these tax exemptions, and whether a phase-
out is scheduled? 
 
WTO Secretariat’s Report, page 118, para. 108  
 
 The WTO Secretariat's report notes that "manufac turing production has also been stimulated 
by the prohibition on the importation of used goods, which the authorities note are in place for environmental and safety reasons." Could Brazil explain the environmental and safety reasons 
invoked for the prohibition of produc ts listed in Table III.4 (page 45)? 
 
ANSWER:   The prohibition on importing used consumer goods is in place mainly for environmental and safety reasons, related to the product’s life cycle and to its functionality and performance 
levels. Used goods become wastes, sometimes hazardous ones, in sh orter periods of time, not to 
mention all packaging, stocking and transportation difficulties related to that kind of products. 
 
 Could Brazil explain whether a phase-ou t to these prohibitions is scheduled? 
 ANSWER: 
 
 There are no phase-out schemes in place regarding the prohibitions of used consumer goods. In the case of importation of used goods,  which are subject to non-automatic licensing, 
the Brazilian Government is currently undertaking a review of its legislation that should be finished soon. 
 
WTO Secretariat’s Report, page 119, para. 110  
 
 The WTO Secretariat's report states that accord ing to the authorities, the scheme is no longer 
limited to companies under the control of persons residing in Brazil.  Could Brazil indicate the WT/TPR/M/212/Add.1 
Page 178  
 
 percentage of BNDES financing currently granted to  companies under the control of persons residing 
in Brazil?  ANSWER:  
 About 90% of Profarma portfolio compri ses BNDES financing granted to companies 
under the control of persons residing in Br azil. Nevertheless, every Brazilian company 
regardless of its shareholders´ origin or pla ce of residence can access the programme resources. 
  In spite of the fact that there are no rest rictions to their participation in Profarma, 
Brazilian subsidiaries of multinational groups in fact still develop very few R&D activities in 
Brazil. 
 
(6) Services 
(i)  Introduction 
Brazil's Report, page 26, para. 124  
 Brazil's report states that Brazil is elaborating a Nomenclature of Services, with nine digits 
and that the first version of a proposal on the nomen clature will be submitted to public scrutiny in the 
first semester of 2009.  Does Brazil intend to cons ult with its trading partners on this issue and in 
which way?  
 
ANSWER: 
  The final adoption of a Brazilian Nomenclatu re of Services currently awaits the results 
of the public consultation process, postponed until March 31st, 2009.  Further information can 
be found on the following website (www.desenvolvimento.gov.br).  
(ii) Financial services 
WTO Secretariat’s Report, page 121, para.  121 
 
 Could Brazilian authorities provide an update on the state of its ratification procedure for the 
5th protocol? 
 ANSWER:   As it was stated in the last regular m eeting of the Committee on Trade in Financial 
Services of the WTO, in December 2008, due to pr ocedural matters the Fifth Protocol has not 
yet concluded its ratification process. A specific timeframe  for the completion of the process 
cannot be determined. 
 
(c) Insurance 
WTO Secretariat’s Report, page 127, para. 149 
 
 Is Brazil going to continue the liberalisation of  insurance companies? If so, could Brazil give 
any detail of its plans?  Could Brazil list the insu rance branches in which foreign competition is still 
forbidden?  
ANSWER: 
  According to Article 11 of Law 126/07, the liberalization will be undertaken gradually. As stated in the Secretariat Report, the situation of the Brazilian insurance and reinsurance  WT/TPR/M/212/Add.1 
 Page 179 
 
 
 market changed substantially during the last years.  It is important to analyze how those changes 
are absorbed by all economic agents, in cluding consumers and service suppliers. 
 
WTO Secretariat’s Report, page 127, para. 153 
 
 It is stated in the Secretariat’s report on that that Brazil has changed its  laws to allow, under 
certain conditions, the cross-border supply of insuran ce services, which was previously forbidden.  
Could Brazil specify what further reforms it intends  to make in this sector, for example in order to 
increase the role of private banks and credit ins titutions and thus lower the costs of lending? 
 
ANSWER:   Complementary Law No. 126/07 contains  provisions on cross-border supply of 
insurance services.  As stated in the Secretariat report, while risks that take place in Brazil must 
be insured domestically, the Law provides for a few exceptions, allowing the taking out of 
insurance abroad by natural persons or legal p ersons resident in Brazil to:  cover risks for 
which there is no provision of insurance in Brazil, provided that this represents no violation of existing legislation;  cover risks abroad where th e insured is a natural person resident in Brazil, 
for which the term of the insurance contract is limited exclusively to the period in which the 
insured person is abroad;  insurance policies th at are the subject of international agreements 
ratified by the National Congress;  and insu rance contracted abroad before the date of 
publication of the Complementary Law.  The law allows Brazilian legal persons to take out 
insurance abroad to cover risks abroad, provided this is notified to the SUSEP. WTO Secretariat’s Report, page 127, para. 153   
 
 Could Brazil inform about the changes made sin ce the last TPR with regard to new initiatives 
to open its reinsurance market? Does Brazil inte nd to pursue new initiatives in this regard?  
 ANSWER:   Complementary Law nº 126/07, approved in January 2007, and Resolution nº 165 of the National Council on Private Insurance establis hed new regulations in the reinsurance market 
with a view to end the monopoly of the Brazilian Institute of Reinsurance  and open this market 
to new players. 
 
(iii) Telecommunications 
WTO Secretariat’s Report, page 128, para.  159  
 
 Brazil has not yet ratified the 4th Protocol on Telecommunication services.  Could the 
Brazilian authorities please inform about the procedu re in Brazil regarding the ratification of this 
protocol, the current state of play and the intenti ons in terms of concluding the ratification process? 
 
ANSWER: 
 
 Brazil presented in 2000 an offer intended to rectify the situation generated by its impossibility to ratify the IV Protocol in the 1997 form, but such offe r was rejected by some 
Members (United States, Hong Kong/China, Euro pean Communities and Japan).  Adoption of 
the IV Protocol as such is thus not under cons ideration.  However, the Brazilian revised offer 
under the GATS Doha Round negotiations, circulated on 10 June 2005, which is conditional on 
other WTO Members making substantive and satisf actory offers in areas of interest to Brazil, 
includes commitments in the telecommunication services sector.   WT/TPR/M/212/Add.1 
Page 180  
 
 (iv) Air transport 
WTO Secretariat’s Report, page 136, para. 197  
 
 Authorization is required from the Ministry of  Aviation (Law No. 7565 of December 19, 1986 
and regulation (portuaria) No. 146 of March 30,  1993). Currently, the domestic air transport and 
non-regular air transport are limited to Brazilian co mpanies.  Does Brazil intend to maintain this 
situation or to liberalise domestic air transpor t in order to free up the bottlenecks and delays 
described in the Secretariat's report? 
 
ANSWER: 
 
 Brazil has no plans of opening the domestic  market for foreign airlines in the near 
future. However, there might be some changes in  the level of permitted foreign investiment in 
Brazilian airlines as the result of some bills  under discussion in the Congress. The public 
policies for the Civil Aviation sector in Brazil are under a comprehensive process of revision. 
Brazil has just recently published its new Nation al Civil Aviation Policy. DECREE Nº 6.780, 
February 18th,  2009.   The following questions remained unanswered during the last TPR. In some cases, Brazil 
indicated that “Brazil will provide answer for th is question in due course” (reference document 
WT/TPR/M/140/Add.1 of 1 November 2004). The EC would like to receive the replies to these 
questions and a clarification explaining why th ese questions have not been answered before.  
 
 In paragraph 265 of the WTO Secretariat's repor t, it is mentioned that Brazil intends to 
equalise the conditions for Brazilian and forei gn international air transport operators.  
 
 In relation to remittance and currency con version airlines have to have a license before they 
can convert locally earned revenue into other currencies. The license is  given on a monthly basis, and 
therefore causes delay in the remittance and conversion. Since many costs (including fuel and airport 
charges) in Brazil have to be paid in US dollars,  the restriction and the delay of conversion puts 
financial pressure on foreign airlines.  Could Braz il clarify if Brazilian airlines are covered by 
identical restrictions?   
 
 Foreign airlines usually want to provide their customers with additional services such as 
booking of package holidays, car hire, travel  insurance etc. as an integrated part of 
selling/marketing, and in some cases these related pr oducts are even integrat ed in the reservations 
systems of the carriers.  Can Brazil clarify under which conditions foreign airlines are allowed to 
provide such products? Can Brazil clarify whether the same conditions apply to Brazilian carriers?  
 
ANSWER: 
  Those kind of marketing actions aren´t reg ulated by ANAC. We consider these actions 
as commercial promotion activities. In order to operate regular flights from/to Brazil, the 
foreign airline usually establish a Brazilian en terprise, under Brazilian commercial law, and 
this Brazilian enterprise may commercialize th ose services (booking of package holidays, car 
hire, travel insurance etc). In many cases, th ose kind of marketing actions are made via 
commercial agreements among the air carriers and other companies, as tourism operators, 
travel agencies and car hire companies. 
 
     WT/TPR/M/212/Add.1 
 Page 181 
 
 
 (v) Maritime transport and ports 
WTO Secretariat’s Report, page 138, para.  210  
 
 The WTO Secretariat's report refers to Braz il collecting a lighthouse fee (TUF) exclusively on 
foreign flag vessels.  Could Brazil confirm that the f ee is not levied on countries with which Brazil has 
concluded a maritime transport agreement?  Coul d Brazil report on whether there are any proposals 
to phase out this fee with regard to treating all maritime transport services suppliers in a non-
discriminatory manner? 
 
ANSWER: 
 
 Based on reciprocity, TUF is not levied on  countries with which Brazil holds a maritime 
transport agreement. There are no plans und er consideration to phase out this fee. 
 WTO Secretariat’s Report, page 138, para. 212  
 
 The WTO Secretariat's report stipulates that  the Brazilian fleet comprises some 1,100 vessels 
with a total carriage capacity of 3.0 million deadweight  tons.  Could Brazil confirm that the fleet size 
referenced corresponds to vessels op erated under the Brazilian flag, rather than vessels operated by 
Brazilian shipping companies under any flag?  
 In the absence of a reference date for the statistics on total carriage capacity, could Brazil 
confirm our information that the total carriage  capacity of the vessels under the Brazilian flag 
amounted to 3.6 million deadweight tons in 2008? 
 
ANSWER: 
 
 The Brazilian sea and support navigation fleet under Brazilian flag comprises some 
1.000 vessels, but only 180 of those are author ized to operate cabotage and long distances. 
  The total carriage capacity of the Braz ilian fleet amounted to some 3.0 million 
deadweight tons. 
 
WTO Secretariat’s Report, page 138, para. 213   
 
 The EC understands that the productivity and effic iency of ports and terminals in Brazil is 
generally low. 
 
 With regard to the regulatory measures outli ned in paragraph 213 of the WTO Secretariat's 
report, could Brazil report on the revitalisation of it s ports and terminals? In that context, would 
Brazil consider simplifying conditions for acces s and establishment of terminal operations? 
 
ANSWER: 
 
 In 2007, Law 11.518/07 established the Special Secretary on Ports, directly linked to the 
Presidency. This reflects the importance attribut ed by the Federal Government to the port 
sector, which carries annually around 700 million to ns of a wide diversity of products and 
responds for aproximately 90% of Brazilian export  trade.  This new office aims at increasing 
the efficiency of Brazilian ports in order to  improving overall economic competitiveness. In 
2008, Decree 6.620/08 establishe d specific guidelines and policies for this sector. 
 WT/TPR/M/212/Add.1 
Page 182  
 
  In that context, Brazil has implemented several measures to improve the operation 
conditions of their ports and terminals. Port activities are regulated by Law N. 8630 (Port Modernization Law), which provides for a decen tralized system of port administration. 
 
WTO Secretariat’s Report, page 138, para. 219  
 
 The WTO Secretariat's report exp lains restrictions with regard to cabotage. The Brazil-US 
Agreement on Maritime Transport stipulates that the Parties shall not impose any restrictions on 
performing relay shipments, subject to cabotage la ws.  Could Brazil clarify the interpretation that 
relay shipments involve the su ccessive loading or unloading of vessels in Brazilian ports for 
international export or import?  Could Brazil also  clarify whether Brazilian law on cabotage does not 
restrict relay shipments?   
 
 In that respect, could Brazil confirm that performing relay shipments is open to the shipping 
companies of Brazil's trading partners on a non-discriminatory basis? 
 
ANSWER: 
  The U.S.-Brazil bilateral agreement on mari time transport was never ratified and did 
expire in 2002.   
 Cabotage activities are restricted to do mestic flag vessels operated by a Brazilian 
national or an Brazilian Shipping Company in accordance with Law 9432/97.   Cabotage activities are restricted to do mestic flag vessels operated by a Brazilian 
national or an Brazilian Shipping Company in  accordance with Law 9432/97. Therefore, a 
vessel with foreign flag is not allowed to load cargo in a Brazilian port and unload it in other 
Brazilian port. This does not mean that a foreign  vessel cannot stop in more than one Brazilian 
port and perform loading and unloading activities, providing that the cargo unloaded has not been loaded in a Brazilian port.   In order to be classified as a “Bra zilian navigation company” and perform relay 
shipments, a foreign company must: (i) either be  part of a “consortium” or be established 
according to Brazilian legislation; (ii) follow cert ain sectoral regulation applied to all national 
companies that provide those services; (iii) have  vessels with Brazilian flag or that have been 
constructed by a Brazilian shipyard.  
WTO Secretariat’s Report, page 138, para. 226   
 Paragraph 226 of the WTO Secretariat’s report ref ers to the busiest ports in Brazil, in terms 
of cargo. The EC has been informed that the Port of Sao Sebastiao handl es around 45 million tons a 
year, and in that respect makes it one of Brazil's bus iest ports, before Santos (São Paulo) and Itaguaí 
(Rio de Janeiro).  Could Br azil confirm this information? 
 
 The following questions remained unanswered during the last TPR. In some cases, Brazil 
indicated that “Brazil will provide answer for th is question in due course” (reference document 
WT/TPR/M/140/Add.1 of 1 November 2004). The EC would like to receive the replies to these 
questions and a clarification explaining why th ese questions have not been answered before.  
  WT/TPR/M/212/Add.1 
 Page 183 
 
 
 ANSWER: 
  The public commercial business of the port of São Sebastião handles around 500 thousand tons a year. For further informat ion see www.portodesaosebastiao.com.br. The 
private terminal of Petrobras (Tebar) operates around 45 million tons a year. 
 
 In paragraph 281 of the WTO Secretariat's re port, a clarification is given of the cargo 
reservation that Brazil has in place: with respect to  the oil and oil related products it is underlined 
that it has to be transported by  Brazilian flagged vessels. However, the Brazil-US maritime agreement 
of October 1999, states and the ocean borne liner tr ade is free and open, and there are no exemptions 
that relates to this type of products.  Can Braz il confirm that oil and oil related products are not 
exempted by the agreement? Can Brazil clarify if these products are also included in agreements that 
cover international maritime transport with other trading partners?  
 
ANSWER: 
 
 The U.S.-Brazil bilateral agreement on mari time transport was never ratified and did 
expire in 2002.    According to the Federal Constitution, crude oil imports and exports, and crude oil derivatives produced in Brazil must be transported by Brazilian flag vessels. 
 
 Paragraph 281 of the WTO Secretariat's repor t also mentions that equipment and parts 
for Brazilian military organisations and public enti ties cargo and goods benefiting from official 
fiscal or credit programmes are reserved to Brazilian flagged vessels (subject to 
availability/waivers). This appears to be broader  that the exclusion found in the Brazil US 
maritime agreement the where only defence cargo and agricultural assistance cargo are 
excluded.  
 
 Can Brazil confirm that only defence and agr icultural assistance cargo are reserved to 
Brazilian vessels? Can Brazil clarify if these products  are also included in agreements that cover 
international maritime transport w ith other trading partners?   
 
 Can Brazil clarify whether the obligation to  use Brazilian flagged vessels also applies in 
other situations for example when a foreign com pany has received official (local) fiscal support to set 
up (greenfield) production of goods: will the export/import related to this production come under the 
flag requirement?  
 
ANSWER: 
  The U.S.-Brazil bilateral agreement on mari time transport was never ratified and did 
expire in 2002. The requirement app lies to the referred situation. 
 
 Paragraph 280 of the WTO Secretariat's repor t explains that cabotage is reserved to 
Brazilian vessels subject to availability. Since Braz il exports more than it imports the gap is created 
where empty containers on the incoming vessels (i mport) make up more than 60% of the total number 
of containers (imports are estimated to be 700,0 00 full containers, exports to be 1 500,000).  Can 
foreign maritime operators freely reposition empt y containers between ports in Brazil? 
 
 Given the imbalance of the import/export volu mes and in order to remedy port congestion, 
has Brazil considered granting general waivers to foreign maritime operators to operate dedicated 
feeder vessels to relay their own international car go between some of the 15 Brazilian ports currently 
served by foreign containers vessels?  WT/TPR/M/212/Add.1 
Page 184  
 
 ANSWER: 
  Foreign maritime operators must operate ac cording to the Brazilian legislation, which 
does not allow foreign maritime op erators on cabotage transport. 
 
 If a foreign operator wants to bring containers from abroad, this is allowed providing 
that it follows regulations established by th e Federal Revenue Service (Receita Federal). 
  No “general waivers” or any change in  the legislation are being considered. 
 
(vi) Professional Services WTO Secretariat’s Report, page 141, para.  232   As regards services for the safeguarding and trans port of valuables, the investment by foreign 
investors is prohibited by Law No. 7102/83.  Coul d Brazil specify the reasons for this restriction? 
 
ANSWER: 
  The nature of the mentioned service requires strict regulation by government authorities for security reasons.  
WTO Secretariat’s Report, page 141, para.  232  
 The Secretariat report indicates that registra tion in professional associations is mandatory 
for provision of certain professional services.  Is Brazil envisaging any measure to facilitate the 
presence of foreign professionals in its market? If so, could Brazil give any detail of its plans? 
 
ANSWER:   In order to ensure the quality of service suppliers and their compliance with certain 
regulatory principles, registration in profession al associations to supply certain professional 
services is mandatory. According to GATS provisi ons, those policies are not considered market 
acess restrictions, but domestic regulation req uirements.  Changes in those policies are not 
under consideration. 
 
WTO Secretariat’s Report, page 142, para.  236  
 
 The WTO Secretariat notes that MERCOSUR  Decision No. 25/2003 establishes a general 
regulatory framework to engage in mutual career recognition, is being im plemented gradually.  
Could Brazil confirm if this initiative is notified under GATS Article VII? 
 
ANSWER: 
 
 MERCOSUR Decision nº 25/2003 has not yet be en ratified by three of the four Members 
and it is not yet into force. It is worth ment ioning that, on September 2008, the Montevideo 
Protocol, the fundamental legal framework of the services liberalizing process in MERCOSUR, 
has been examined under the transparency me chanism of the Committee on Regional Trade 
Agreements. 
 
WTO Secretariat’s Report, page 142, para. 237 
 
 The WTO Secretariat notes that professionals w ith foreign qualifications must request 
revalidation of their title by a university, by produci ng an official copy of th e original document,  WT/TPR/M/212/Add.1 
 Page 185 
 
 
 accompanied by a transcript.  Could you please cl arify if this revalidation relates only to academic 
qualifications or also to other qualifications including professional experience?  
 
ANSWER: 
 
 The mention of revalidation on paragraph 237 refers only to academic qualifications. 
 
(d) Architectural and engineering services 
WTO Secretariat’s Report, page 143, para.  245  
 
 Federal Law 5194/66, art.2 stipulates rules t hat foreign architects may establish in Brazil, 
but they need to be registered in  a temporary register and that they can only be contracted provided 
that they work with a Brazilian assistant.  Does Brazil intend to maintain this restriction? 
 
 The following questions remained unanswered during the last TPR. In some cases, Brazil 
indicated that “Brazil will provide answer for th is question in due course” (reference document 
WT/TPR/M/140/Add.1 of 1 November 2004). The EC would like to receive the replies to these 
questions and a clarification explaining why th ese questions have not been answered before.  
 
ANSWER: 
 
 Changes in the mentioned legislation a re not under consideration at this moment 
 
 Could Brazil explain the rationale behind the residence requirement for the practice of the 
legal profession in Brazil, both for c onsultancy on Brazilian and foreign law? 
 
ANSWER:   To provide legal services, the professional shall observe professional requirements, with 
due regard to the Federal Constitution and a pplicable laws, as well as the OAB Statute. 
 
 Before being authorized for a consultancy prac tice in Brazil under Provision No. 91/2000, the 
applicant must show proof of permanent residency in  Brazil, a licence to practise law, an effective 
admission at the Bar in the country of qualification, proof of good conduct in cluding an affidavit by 
three BBA-registered Brazilian lawyers, and proof t hat there is an instrument for reciprocity for 
Brazilian attorneys wishing to practice law in the app licant's country of origin.  Could Brazil explain 
the rationale behind the requirement for a proof of  good conduct including an affidavit by three BBA-
registered Brazilian lawyers?  W ould a good conduct certificate de livered by authorities of the 
applicant’s country not have a stronger link with the applicant than an affidavit by three BBA-
registered Brazilian lawyers? 
 
ANSWER: 
 
 Since the recognition of a foreign authorization to practice law is accorded 
autonomously by the receiving country, a proof of  good conduct by nati onals is part of the 
requirements for the authorization . 
 
 A good conduct certificate delivered by authorities of the applicant's country might not 
include information on the applicant's conduct in Brazil. 
Postal and courier 
 
 The following questions remained unanswered during the last TPR. In some cases, Brazil 
indicated that “Brazil will provide answer for th is question in due course” (reference document WT/TPR/M/212/Add.1 
Page 186  
 
 WT/TPR/M/140/Add.1 of 1 November 2004). The EC would like to receive the replies to these 
questions and a clarification explaining why th ese questions have not been answered before.  
 
 How precisely is the area  reserved to the postal monopoly (i.e. activities excluded from 
competition) defined? Is there a weight or a price limit or a limit based on the nature of the item 
transported (ie. parcels, letters, direct mail, u naddressed letters) or on the nature of the service 
provided? If yes, what is their level? 
 
ANSWER: 
 
 The delimitation of the scope reserved to the Brazilian Postal Company (Empresa 
Brasileira de Correios e Telégrafos - ECT) does not take into account levels of weight or price, 
being fixed according to the nature of the postal item (Law Nº 6.538 of 1978)   According to Article 9 of the Law, the follo wing postal activities are explored by the 
Union, under monopoly regime:  
 I – receiving, transport and delivering, in national  territory, and the expedition for abroad, of 
letters and postal-letters;  II - receiving, transport and delivering, in national  territory, and the expedition for abroad, of 
aggregated correspondance;  
III - fabrication, emission of stamps and other forms of postal franchising. 
  Article 47 of the mentioned law provides definitions for the sending items under monopoly. 
 
 Are some activities or postal/courier services subject to licensing and if so what are the 
licensing requirements applied?  
 
ANSWER: 
  Companies established according to Brazilian law are not subject to  specific licensing 
requirements for providing courier activities.  
 What is the status of express delivery services in  Brazil? Are they defined in some way in the 
internal legislation? Are express delivery operators authorised to deliver all items, including letters? 
Are they subject to licensing and if so, what are the licensing requirements?  
 
ANSWER: 
  In Brazil, express delivery services related to postal activities are not classified 
separately from postal services. The speed of deliv ering (express in that case) is only considered 
an attribute of a certain postal service. Theref ore, it does not have a specific regulatory 
framework. 
  Private operating companies cannot comme rcially transport items integrating the 
monopoly. 
  WT/TPR/M/212/Add.1 
 Page 187 
 
 
 EUROPEAN COMMUNITIES (SECOND BATCH) 
 II. TRADE AND INVESTMENT POLICY REGIME (5) INTERNATIONAL RELATIONS (ii) Preferential agreements 
(b) MERCOSUR 
Brazil's report, Paragraph 6, page 5   In its government report, Brazil indicates that  "Mercosur is in the process of expansion with 
the accession of Venezuela".  Could Brazil indica te whether this means that free trade will apply 
between Venezuela and the other Mercosur countri es on the day of Venezuela's accession to the 
region? If a transition period is foreseen, could Brazil i ndicate its duration as well as the main steps?  
Similarly, will Venezuela adopt Mercosur's common external tariff on the day of its accession? If a 
transition period is foreseen, could Brazil indicate  its duration as well as the main steps? 
 
ANSWER: 
 
 Conditions for accession are es tablished in the Accession Prot ocol, which can be found at the 
following link: http://www.mercos ul.gov.br/tratados-e-protocolos/p rotocolo-de-adesao-da-republica-
bolivariana-da-venezuela-ao-mercosul/protocolo-d e-adesao-da-republica-bolivariana-da-venezuela/. 
 
 Article 5 establishes deadlines for free trade between the current Mercosur State Parties 
and Venezuela.   Article 4 establishes that Venezuela will ad opt the CET not later than four years after 
the entry into force of the Protocol.  
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)  MEASURES DIRECTLY AFFECTING IMPORTS (v) Other charges affecting imports 
WTO Secretariat’s Report, page 37, para. 64  
 To determine tax liability in each jurisdicti on, the arm's length principle following the OECD 
transfer pricing guidelines is most commonly app lied. The OECD transfer pricing guidelines were 
first issued in 1979 and have become internati onally respected as a principle to avoid double 
taxation. Although the Brazilian rules were inspir ed by the OECD guidelines, local statutes adopt 
criteria and restrictions that are not compa tible with the arm’s length principle.  
  It is in the interest of the smooth functioni ng of the markets that intragroup trading activity is 
governed by the same inter national rules.  Otherwise, it would resu lt in double taxation.  Could Brazil 
indicate the steps currently underta ken in order to gradually apply the arm's length principle, as 
recommended in the OECD transfer pricing guidelines?  
(vii) Prohibitions, restrictions, and licensing 
WTO Secretariat’s Report, page 45, para. 107  
 
 The importation of retreaded tyres from all sources, except MERCOSUR members, is subject to non-automatic licences, but by law such li cences may not be granted.  This measure was 
challenged by the EC under the WTO dispute se ttlement mechanism in November 2005.  The Panel 
and Appellate Body Reports concluded, inter alia, th at the exemptions from the import ban granted to 
retreaded tyres from MERCOSUR, as well as imports of used tyres by local retreaders through court 
injunctions constituted arbitrary or unjustifiable discrimination, and were, therefore, inconsistent 
with the GATT Agreement.   Following consultations with  Brazil, the EC requested that the period of WT/TPR/M/212/Add.1 
Page 188  
 
 time in which Brazil had to implement the decision be determined through ar bitration.  In August 
2008, the arbitrator determined that Brazil had to  implement the recommenda tions by 17 December 
2008.   Brazil has failed to meet the deadline set by the arbitrator. According to the Appellate Body 
ruling, Brazil must withdraw the WTO-inconsistent  import prohibition on retreaded tyres. Instead, 
Brazil operates tariff-rate quotas for retreaded tyres from Paraguay and Urug uay while maintaining 
the prohibition for other WTO Members. When is  Brazil going to implement the WTO ruling? Is 
Brazil planning to eliminate the quotas for Para guay and Uruguay? Are there any plans for a general 
regime at Mercosur level? 
 
(4)  MEASURES AFFECTING PRODUCTION AND TRADE 
(iv) Incentives and other government assistance WTO Secretariat’s Report, page 76, para. 270 
 
 In addition to the data provided by the Govern ment's and the Secretariat's reports, publicly 
available information indicates that Brazil launch ed in 2008 the "Mais Pesca e Aqüicultura" initiative 
with a view to promoting fish production in Brazil and setting explicit targets to be reached by 2011. 
Among the targets, the initiative id entifies the increase of fish production by 40%, i.e. from 1 million 
tonnes in 2008 to 1.4 million tonnes in 2001. Con cerning fisheries infrastructure the plan includes the 
constructions of up to 20 l anding facilities for fishermen. 
 
 The EC notes that, among other subsidies, the fo llowing aid has been provided to the fisheries 
sector in the framework of the "Mais Pesca e Aqüi cultura" initiative: i) a fuel subsidy programme 
amounting 18 million Reales and benefiting 2.230 vessels; ii) subsidies, including those provided by 
the Ministry of Transport, for the construction of fi sh landing terminals; and iii) subsidies for the 
purchase of 103 ice machines, 85 refrigerated trucks, 
  The EC also notes that a number of programm es ("linhas de crédito") such as the "FUNDO 
CONSTITUCIONAL DE FINANCIAMENTO DO  NORTE – (FNO)" or the "FUNDO 
CONSTITUCIONAL DO NORDESTE – (AQÜIPESCA)" will be coordinated and will give the 
possibility to fishermen to obtain subsidies, int er alia, for the construction and modernisation of 
fishing vessels.    
 Further, the initiative seems to  include the possibility for fis hermen to make use of the 
subsidies of the "MODERAGRO" programme (CUSTEIO PECUÁRIO TRADICIONAL) covering, inter alia,  aid in the form for:  i) purchase of fu el, lubricants, ice, bait, and other operational costs;  
ii) nets, hooks, labour-costs, insurance, taxes, freight, and iii)  maintenance and modernisation of 
vessels. 
 
 Information published by the Brazilia n authorities on the "MODERAGRO" programme 
indicate that beneficiaries could receive up to 300.000 Reales aid to finance the above mentioned 
types of costs. Concerning canni ng and processing of fish products the aforementioned information 
mentions that funds from the "MODERAGRO" pr ogramme are also available for these activities. 
Could Brazil confirm the existence of such subsidies to its fisheries sector? 
 
ANSWER: 
 
 Unlike most of the countries currently with hi gh fishing capabilities, which have started 
public investments and developed support program mes for the fishing sector since a long time 
ago, Brazil is a late-entrant in the international fishing market. 
  WT/TPR/M/212/Add.1 
 Page 189 
 
 
  Brazil had the opportunity to draw lessons  from the questionable public policies of 
today`s fishing powers in terms of overexploitation or even depletion of many of the world most 
important fish stocks. Such fishing support programmes have been criticized by specialized international organizations. In order to preven t the environmentally adverse results from those 
policies, the basic characteristic of all Brazilia n programmes to support the fishing sector is a 
direct link to sustainability benchmarks. 
  First of all, regarding the programme “Mais P esca e Aqüicultura”, we note that it is still 
not operational. So far it has only been publicly announced by the Brazilian government, and its timeframe refers to the period 2008-2011. We are at the disposal of the EC for further technical 
information once the programme is fully operational. 
  The programmes related to FNO, AQUIPESCA and MODERAGRO are not related to fish catching activities. They are aimed at e nhancing the quality of the fish chain structure. 
 
 As a follow-up to the questions asked at th e 2004 Trade Policy Review of Brazil the EC would 
appreciate if Brazil could provide information on wh ether the above mentioned subsidies, and those 
provided via the PROFROTA programme, have resulte d in an increase in fishing capacity.   
 
ANSWER: 
 
 The PROFROTA programme has its main axis on sustainability criteria. The 
programme combines modernization and constructi on of new vessels (basically in order to 
replace chartered vessels or to reduce the pressu re on species that are near full exploitation 
levels).  
 Therefore, even for new vessels, there is no increase in fishing capacity as the 
programme relates to the replacement of chartered  vessels. In addition, we recall that those 
vessels are primarily used to fish within Regional Fisheries Management Organization’s 
(RFMO) regimes (mainly the International Conv ention for the Conservation of the Atlantic 
Tuna -- ICCAT), which carry out a strictly moni toring system. Brazil fully abides by those 
rules. 
 
 For the other operations supported within  the programme, it is again important to 
reinforce the link with the sustainability criteria – in that sense, only fishing vessels that are 
going to target species that are far below any su stainable explotation level will be granted with 
the benefit. In effect, the programme enables fi shermen to shift from fully-exploited species to 
others that are below a sustainable exploitation level. 
  In addition, it is also important to reiterate that the magnitude of the Brazilian governament support for this programme is far below other programmes conducted by 
powerful fishing nations (most of which do not take into account any sustainability criteria). To illustrate that point, from the creation of PR OFROTA up to now, only 5 fishing vessels have 
been constructed (of a total of 8 that have been authorized to) and 1 fishing vessel has been 
modernized. 
 
 In the affirmative, could Brazil provide inform ation on whether fishing capacity, existing or 
planned, exploits (or will exploit) species with no or almost no fishing activities?  
 
ANSWER: 
  The PROFROTA programme has been esta blished taking into account strict 
sustainability criteria. In that sense, its main objective is the reduction of any fishing effort on WT/TPR/M/212/Add.1 
Page 190  
 
 overexploited stocks (with an incentive for fishermen to shift from those stocks to species 
exploited below a sustainable level), associated wi th the exploitation of non-exploited species.  
 
 How will Brazil ensure that subsidies, such as those provided via the PROFROTA, FNO, 
AQUIPESCA and/or MODERGAGRO, do not result in fis hing activities above levels that are capable 
of producing a maximum sustainable yield?   
ANSWER: 
  For a specific project to be approved under the PROFROTA progamme, a series of 
technical analysis in connection with the exploita tion of the target and co-related species are 
carried out in order to check the compliance of the project with the main objectives and 
conditionalities of the programme (see the reply to the question immediately above). 
  The programmes related to FNO, AQUIPESCA and MODERAGRO are not related to 
fish catching activities. They are aimed at e nhancing the quality of the fish chain structure. 
  With regard to fisheries infrastructure, could Brazil provide figures on the amounts disbursed 
in the framework of the "M ais Pesca e Aqüicultura"? 
 
ANSWER: 
 
 The programme “Mais Pesca e Aqüicultura” is still not operational. We remain at the disposal of the EC for exchanging techni cal information once the programme is fully 
operational. 
 
 On the aid provided to the canning and pr ocessing of fish products through the different 
programmes ("linhas de crédito"), could Brazil provide further information on the modalities of the 
aid granted to private operators, such as the ma ximum amount or the types of expenditure financed?  
 ANSWER:  
 The programmes of “linhas de credito” are related to the industrialization process 
(acquisition of machineries and equipm ent) up to R$ 300,000 per beneficiary. 
 
 Could Brazil provide information on subsidies, if any, provided by the States to the catching 
sector? 
 
ANSWER: 
  There are no programmes at the State leve l to support the fish catching sector. 
 
 Can companies in the catching sector, owned and controlled by foreign nationals, benefit 
from the above subsidies?  
ANSWER: 
  Brazilian legislation makes no distinction between companies regarding the origin of 
their capital. Therefore, all co mpanies duly registered in Brazil – regardless of the origin of 
their capital – are eligible to benefit from th e programs available to the sector in which they 
operate. 
  WT/TPR/M/212/Add.1 
 Page 191 
 
 
  In relation to aquaculture activities, the EC not es that in the context of the "Mais Pesca e 
Aqüicultura", economic operators will be able to benefit from a number of programmes ("linhas de 
crédito"). In addition to the aforementioned FNO,  AQUIPESCA and MODERAGRO programmes, the 
FINAME ESPECIAL programme would be providing soft finance for the processing industry sourcing 
farmed fish while the PROGER RURAL programme  would be providing subsidies covering 
investments and operating costs for small fisherm en and fish farmers.  Could Brazil provide 
information about the amounts disbursed in relation to the above programmes?  
 ANSWER:  
 The programme “Mais Pesca e Aqüicultura” is still not operational. We remain at the 
disposal of the EC for exchanging techni cal information once the programme is fully 
operational and for a detailed pano rama in a due TPR reference phase. 
 
 Could also Brazil provide information about on what species are being farmed in production 
units benefiting from these subsidies? 
 ANSWER:   The programme “Mais Pesca e Aqüicultura” is still not operational. We remain at the disposal of the EC for exchanging techni cal information once the programme is fully 
operational.  
 Can companies in the aquaculture sector, owned and controlled by foreign nationals, benefit 
from the above subsidies? 
 
ANSWER:   Brazilian legislation makes no distinction between companies regarding the origin of 
their capital. Therefore, all co mpanies duly registered in Brazil – regardless of the origin of 
their capital – are eligible to benefit from th e programs available to the sector in which they 
operate. 
 
 Could Brazil provide information on subsid ies, if any, provided by the States to the 
aquaculture sector? 
 
ANSWER: 
 
 The programme “Mais Pesca e Aqüicultura” is still not operational. We remain at the disposal of the EC for exchanging techni cal information once the programme is fully 
operational. 
 
(vi) Intellectual property rights 
WTO Secretariat’s Report, page 90, para. 336  
 The report notes that the number of patents granted annually decreased since 2003.  To our 
knowledge, there is a serious registration backlog within the Brazilian Patent and Trademark Office 
(INPI). According to recent INPI information, the backlog is estimated at 70,000 patents. The 
situation is even more negative in the case of pharmaceutical applications (close to 20,000 out of the 
total 70,000). Pharmaceutical companies need to wait  on average 8 years to get a patent in Brazil. 
Trademark backlog is reported to be in the hundreds of thousands. 
 WT/TPR/M/212/Add.1 
Page 192  
 
  Could Brazil report what concrete steps it is undertaking in order to reduce the delay in 
obtaining patent and trademark registration, thus ensuring implementation of TRIPS article 62.2, which states that trademarks and patents shall be  granted “within a reasonable period of time”? 
 
ANSWER: 
 
 Between 2003 and 2007, the number of patents granted did not vary significantly from one technology area to the other, taking into a ccount the degrees of difficulty in the examination 
process are not uniform in the different areas. 
 
Outline of the restructuring program of INPI  (I) Increase in the examination ca pacity and examination quality  
a) Number of examiners (2008/2004): 443/112  b) Education and training of examiners:  
-Requirement of Master Degree  
-Full EPO training program (24 months)  -Supplementary training in more complex fields  (II) Process streamlining  a) EPOQUE and full PCT-required documentation available on-line for examiners 
b) Complete and detailed examination guidelines (under preparation) 
c) Quality control and independent administrative revision  (in place as from January 2009).  (III)  Backlog reduction  - Applications filed until December 2004 – first examination until October 2011 
- Applications filed as from  2010 – 4 years from filing. 
 
WTO Secretariat’s Report, page 93, para. 340  
 
 To the EC's knowledge, there is a 5% rest riction to the remittances of royalties abroad 
applied by the Brazilian INPI at the time of  registering license agreements between foreign 
companies and local manufacturers. This restriction is  negatively affecting foreign companies since it 
limits contractual freedom to decide on percentage  for royalties transfer. This limit only applies to 
deals struck by international companies located outside Brazil.    INPI and Brazilian Courts have allegedly based  their decisions on a law issued for other 
purposes to justify such interference (Law 4. 131/62 which restricted remittances between parent and 
subsidiary companies). Nowadays, even  such restriction has been revoked.  Could Brazil provide 
clarifications regarding this alle ged restriction to contractual freedom in licensing agreements? 
 ANSWER:  
 Article 211 of Brazil’s Industrial Prop erty Act (Law 9,279/1996) requires the 
registration in INPI of contracts involving tran sfer of technology. Contracts are registered with 
the sole purpose that they may become effective with regard to third parties. No restriction to 
the remittances of royalties is imposed by INPI.  
 
 Contractual freedom is a consecrated princi ple in Brazil’s civil and commercial law. 
Brazil’s legislation gives foreign companies the same treatment provided for national companies. 
  WT/TPR/M/212/Add.1 
 Page 193 
 
 
  With regard to revenue tax collected on  foreign exchange transactions, Brazil 
understands that this is a matter inserted in another legal context than intellectual property legislation. 
 
WTO Secretariat’s Report, page 93, para. 343  
 
 The report refers to the role of the National Sanitary Agency (ANVISA) with respect to the 
procedures for the patentability of pharmaceutical pr oducts that have to obtain prior approval of 
ANVISA.  Numerous patents have been denied by  ANVISA since Art. 229-C was introduced in 2001 
and, in fact, decisions taken by INPI (granting a patent) have been contradicted by ANVISA.  Could 
Brazil describe the exact role of ANVISA in t erms of patent examination/granting?  What additional 
"value" is ANVISA adding to the examination of th e three patentability criteria (novelty, inventiveness 
and industrial) set by Article 27.1 TRIPs, which, a ccording to Brazilian law is the competence of 
INPI?  Are additional criteria taken into considerati on in ANVISA's decisions?  What's the role of 
ANVISA with regard to the examination of pharma ceutical patent applications compatible with the 
TRIPS provisions that commit Brazil to ensure t hat there will be no discrimination between fields of 
technology (TRIPs Article 27.1)? 
 
ANSWER: 
  Law 10,196/01 introduced the rule of  “prior consent”, whereby patents for 
pharmaceutical products and processes may be gr anted only after ANVISA’s prior examination 
and approval.  Approval is granted or denied after due evaluation of  the application, taking into 
account the three patentability requirements provided for in the TRIPS Agreement. 
  The granting of pharmaceutical patents with the participation of the ANVISA is part of 
a complex administrative act of the Executive br anch, which relies on the combined expertises 
of ANVISA and INPI. One should bear in mind that pharma products were not patentable in 
Brazil before the Industrial Property Act of 1996 (Law 9,279/96).     ANVISA relies on a specialized and experienced technical staff to carry out   its examination. The examination is carried out in full compliance with the Industrial Property 
Act, and the Agreement on trade-related aspects of intellectual property rights (TRIPS). Thus, 
ANVISA’s examination focuses on the three patent ability criteria, provided for in the TRIPS 
Agreement as well as in the Brazilian legislation,  which are, as already pointed out: novelty, 
inventive step and industrial application.  
 Needless to say, the TRIPS Agreement, in Ar ticle 1.1, provides that “Members shall be 
free to determine the appropriate method of implementing the provisions of this Agreement within their own legal system and practice”.   The EC looks forward to Brazil's accession to the Madrid Protocol on the International 
Registration of Trademarks.  Could Brazil report the current status of its application to join the 
Madrid Agreement?  
ANSWER: 
  The Chamber of Foreign Trade (CAMEX) has recommended the accession of Brazil to 
the Madrid Protocol. This recommendation is under examination in the Office of the 
President’s Chief of Staff. 
 
 To our knowledge, Braz ilian authorities are currently consid ering the implementation of draft 
Regulation 3995/2008.  Could Brazil explain the objective of this Regulation? WT/TPR/M/212/Add.1 
Page 194  
 
 ANSWER: 
  The draft Regulation 3995/2008 is an initiative of Congress Representative Paulo Teixeira, not of the Federal Government.  
 The objective of the draft Regulation is to provide an internal legal basis for the 
implementation of DSB rulings in case the DSB al so authorizes the suspension of concessions or 
obligations under the TRIPS Agreement.  GUATEMALA 
 
I
NFORME DEL GOBIERNO  
Entorno Económico General Estabilidad Macroeconómica, Página 8 
 
 La crisis financiera se ha convertido en un importante factor que influirá las perspectivas económicas del mundo entero, incl uyendo Brasil.  En el Reporte de Gobierno, Brasil  identifica 
algunas iniciativas que ha adoptad o para abordar los desafíos que pl antean el crecimiento más lento 
de la economía mundial y la reducción de la liq uidez financiera. ¿Podría Brasil ofrecer información 
más detallada respecto a estas medidas, particularme nte, con relación a los préstamos garantizados 
destinados a financiar las exportaciones (párrafo  19 del Informe de Gobierno)? ¿Qué tipo de 
exportaciones se benefician de estos préstamos?  ¿Son estos préstamos garantizados similares a las 
líneas de crédito ofrecidas por el BNDES (párrafo 42 del Informe de Gobierno)?    ANSWER:   
 The Authorities are following developments related to the financial turmoil closely. 
Since September 2008, to ease the liquidity squeeze, the Authorities adopted measures to tackle the financial problems, injecting liquidity in th e foreign currency market and in the domestic 
credit market. With these initiatives, the Centra l Bank of Brazil (BCB) wants to prevent further 
excessive exchange rate to prese rve economic stability and to minimize inflation pass-through. 
Since then, the BCB and Government’s actions to tackle the crisis include, for example, 
reduction of reserve requirements for banks, sal es of currency, collateralized loans to banks, 
elimination or reduction of taxation on financ ial operations, exchange swap agreements with 
other Central Banks, preventive authorization for the Central Bank to buy assets from banks, 
etc.    
 Concerning export credit, the BCB is pr oviding exporter, through commercial banks, 
with loans that are equivalent to the value of th eir exports, prior to the shipment, accepting as a 
guarantee the exchange rate contract. All expo rts are covered in this operation, which is 
different from the credit lines provided by the BNDES . 
 
Evolución de la Política Comercial 
4.ii)  Mercosur y Acuerdos Regionales, Página 19  
 Podría Brasil explicar en qué consiste la  condición de “Estado Asociado” de MERCOSUR? 
¿Podría Brasil identificar los derechos y obligac iones que se generan para los Miembros del 
Mercosur vis-à-vis el Estado Asociado y viceversa?   
 
ANSWER:  
  MERCOSUR Associated States are entitled to participate in the meetings of MERCOSUR decision-making bodies. Even though  they lack voting powers in these bodies,  WT/TPR/M/212/Add.1 
 Page 195 
 
 
 they may contribute to regional integration by  presenting their views on the issues under 
consideration. 
 
Marco Institucional y Normativo del Comercio Internacional 
1.ii) Cuestiones Transversales, Facilitación del Comercio, Página 22 
 
 ¿Podría Brasil identificar quienes integran el Grupo Técnico de Facilitación del Comercio 
(GTFAC) e indicar cuáles son las principal es atribuciones y objetivos de dicho Grupo? 
 
ANSWER: 
 
 Resolution nº 16 of March 20th 2008 created the Technical Group of Trade Facilitation 
(TGTF). The TGTF is integrated by the following bodies: 
 
I – one representative from the Executive Secretariat of CAMEX,  
II – one representative from the Ministry of  Development, Industry and Foreign Trade 
(MDIC); III – one representative from the Chief of Staff Office of the Presidency of the Republic (CC); 
IV – one representative from the Ministry of External Relations (MRE); 
V – one representative from the Ministry of Finance (MF); VI – one representative from the Ministry of Agriculture (MAPA); 
VII – one representative from the Ministry of Agrarian Development (MDA); 
VIII – one representative from the Ministry of Planning, Budget and Management (MP); 
IX – one representative from the Federal Revenue (RFB); 
X – one representative from the Foreign Trade Secretariat (SECEX/MDIC); and, 
XI – one representative from the Agriculture Defense Secretariat (SDA/MAPA).   
 Since the creation of the TGTF, the Brazilia n Government adopted the following Trade 
Facilitation measures:    
a) Conclusion of the draft legislation submi tted to Congress to ratify the Istanbul Protocol 
(Ata Carnet); 
b) Elimination of licensing requirements fo r importing airplanes and airplane parts; 
c) Reduction in the number of products subjected to inspection for internal transit by 
ANVISA and IBAMA; 
d) Comprehensive review of legislation and licen sing requirements for each non-tariff control 
agency with a view to reduce duplication and increase efficiency; 
e) Improvements to SISCOMEX in order to a llow agencies to automatically approve less 
risky operations; 
f) Incorporation of new software to SISCOMEX  to allow the attachment of electronic 
documents to the system; and 
g) Nationwide evaluation of the available workforce of all Brazilian government agencies 
operating at borders, in order to provide ad equate personnel to deal with increased trade 
flows. 
 
 Additionally, the TGTF has been working on the following actions: (i) Definition, 
development of criteria, and introduction of risk management tools for non-tariff control 
agencies into SISCOMEX; and (ii) Implementation of more efficient rules for inspections of 
wood products and containers consisting of wood , including acceptance of a certification issued 
by exporters or importers that the wood has been treated. 
 
 The Technical Group of Trade Facilitation has the following attributions, according to 
the Resolution nº 16 of March 20th, 2008: WT/TPR/M/212/Add.1 
Page 196  
 
 I – identify and evaluate measures related to the subjects found in the CAMEX Resolution nº 
70/2007; II – suggest to the Council of the CAMEX Ministers measures of rationalization, simplification, 
harmonization and facilitation of pro cedures related to Foreign Trade; 
III – examine requests of inclusion, exclusion or alteration of products or treatments 
undergoing approval on importation and exportation; 
IV – monitor the execution of stated periods by CAMEX for the implementation, by agencies 
and entities of the Public Federal Administration, of measures relating to the subject of 
CAMEX Resolution nº 70/2007; 
V – submit to the Council of Minister of CAMEX recommendations and orientations regarding the effective implementation to the matters of  article 2 of CAMEX Resolution n° 70/2007; 
VI – analyze other subjects relating to its functions; 
VII – undertake other attributions entrusted by the Council of Ministers of CAMEX. 
 
2. iii) Cuestiones Sectoriales, Servicios página 28 
 
 ¿Podría Brasil ofrecer mayor información respecto a la elaboración de una nomenclatura 
brasileña de servicios? ¿Qué sectores participan en la  elaboración de esta nomenclatura y con qué 
fines se elabora la misma? 
 
ANSWER:   The Integrated System of Foreign Trade in Services (SISCOSERV) is being developed, under the general oversight of the Department of  Commerce and Service Policy of the Ministry 
of Development, Industry and Foreing Trade with  a view to (i) make available periodical and 
disaggregated statistics on the Brazilian foreign trade in services in the four modes of supply, 
(ii) propose, keep up with and assess public polic ies for service sector, (iii) support international 
trade negotiations on services. The conclusion of the export module is expected for 2009 and the 
import one for 2010.   
 An important step of this process is a crea tion of a new nomenclature on services which 
uses the Central Product Classification  (CPC) as a reference. The final adoption of a Brazilian 
Nomenclature of Services currently awaits th e results of the public consultation process, 
postponed until March 31
st, 2009.  Further information can be found on the following website 
(www.desenvolvimento.gov.br).  
2.iv) Cuestiones Sectoriales, Energías renovables, Página 29  
 
 ¿Podría Brasil proporcionar mayor inform ación respecto a los incentivos que se otorgan 
para la investigación y desarrollo de nuevas tecnol ogías para mejorar la generación y distribución 
de la energía, en particular en  lo que respecta a las fuentes de energía hidroeléctrica?  
 
ANSWER: 
 
 The Ministry of Science and Technology (MCT) is responsible for the administration of R&D programmes.  Law No. 8,661 of 2 Ju ne 1993 establishes the Brazilian policy for 
technological training in industry and agricultu re, and fiscal incentives for promoting research 
and development (R&D) progra mmes in Brazilian enterprises. 
 
 Since 1999, the scientific and technological development support funds constitute the main R&D financing mechanism in Brazil.  One of these funds (CT-Energ) is focused on the energy sector. Its resources stem from direct cont ributions on the energy bills of consumers and 
are deposited with the National Fund for Scie ntific and Technological Development (FNDCT).  WT/TPR/M/212/Add.1 
 Page 197 
 
 
 They are then managed by the Funding of Studies and Projects (FINEP), which is responsible 
for the selection of projects to which such reso urces will be allocated. The funding comprises not 
only generation but also distribution, and favo rs both new forms of renewable energy, such as 
wind and photovoltaic, and more traditional ones, including hydroelectric.  
 Also regarding the energy sector, the Nati onal Agency for Electric Power (ANEEL)’s 
Superintendence on Energy R&D is in charge of the Energy R&D Program. The Program mandates concessionaires and licensees of the ener gy sector (comprising distribution, generation 
and transmission) to invest a minimum percent age of its net operating revenues in R&D, 
according to ANEEL’s guidelines and instructions. 
 
 It is also worth mentioning that the Ministry of Mines and Energy has endorsed a 
project to foster energy production trough sma ll hydroelectric plants (SHPs). The Program for 
Encouragement of Alternative Electric Power Sources (PROINFA) has granted fiscal incentives 
and special lines of credit to investors committed to the development of SHPs 
 
V.  Futura Evolución.  Página 32 
 
 ¿Podría Brasil mencionar ejemplos de la s medidas previstas bajo el Programa de 
Aceleración del Crecimiento (PAC) encaminadas a estim ular el crédito y la financiación, reducir la 
carga tributaria e incentivar la inversión en infraestructuras? 
 
ANSWER: 
  There are several examples, such as: the ne w legal framework for SMEs (“Lei Geral das 
Micro e Pequenas Empresas”); the opening of the re-insurance market (Complementary Law 
No. 126/07), with its financing and insurance eff ects; the REIDI (Law No. 11.488/07) with its 
fiscal incentives to infra-structure. 
 
I
NFORME DE LA SECRETARÍA  
II. Régimen de Política Comercial y de Inversiones 4. Régimen de Inversión Extranjera, página 21  
 
 El informe de la Secretaría indica que Bras il ha firmado 14 acuerdos bilaterales de inversión 
y ha negociado dos protocolos del MERCOSUR referentes a las inversiones. No obstante, ninguno de 
estos acuerdos está en vigor, debido a que el poder ejecutivo no presentó el Acuerdo al Congreso o porque lo retiró antes de que el Congreso lo votara.  Más adelante, el Informe de la Secretaría pone 
de manifiesto las preocupaciones expresadas por el Congreso en relación con los acuerdos 
bilaterales sobre inversión.  ¿Podría Brasil indicar qué medidas se están adoptando para zanjar esta situación?  
 
ANSWER: 
 
 Besides the issue of the potential discrimina tory treatment against national investors in 
the face of investor-State arbitration clauses, othe r specific problems were identified, such as the 
obligation of prompt indemnization in case of expropriation, given that the Constitution 
establishes that indemnization for expropriation for agrarian reform purposes must be given in the form of agrarian reform titles.  The agreements have been withdrawn from the Congress 
approval procedure. 
 WT/TPR/M/212/Add.1 
Page 198  
 
 IV. Políticas Comerciales por Sectores  
2.  Agricultura y Silvicultura, iii) Medidas de ayuda interna.  b) Disposiciones sobre precios 
interiores, página 121 
 
 El informe de la Secretaría señala que Br asil concede ayuda para determinados productos 
agropecuarios a través de diversos programas de so stenimiento de los precios (cuadro IV.4).  
¿Podría Brasil explicar los criterios que toma como base para establecer los precios interiores?  
Utiliza Brasil los mismos criterios para determinar  los precios interiores de todas las mercancías 
sujetas a este mecanismo o varían estos criterios de  acuerdo al tipo de mercancía.  ¿Podría ilustrar 
Brasil, a través de un ejemplo,  la forma como de termina el precio interi or para una mercancía en 
particular. 
 ANSWER:   The Brazilian government fixes minimum gu aranteed prices annually, taking into 
consideration factors such as agricultural po licy objectives, variable production costs and 
market prices in each one of the country’s regions.    The minimum price fixation follows the same  criteria for all agricultural goods, but the 
final decision on price setting may vary  according to different policy objectives. 
 
 The minimum price for peanuts (2007/2008 crop year, 25kg) was determined based on 
the table shown below (R$):  
 2006/2007 2007/2008 
Variable cost 18.83 18.10 
Market price (for producer) 22.79 - 
Export parity price (for producer) 21.59  
Minimun price 16.10 18.10 (Conab recommendation 
 
  Even though the variable cost for the 2007/2008 crop year declined when compared with the 2006/2007 crop year, Conab recommended rais ing the minimum price from R$16.10 to 
R$18.10, due to the fact that the previous minimum price was set below the variable cost. 
Nevertheless, after discussions among the various  governmental institutions involved, including 
MAPA, it was decided to keep the minimum price for peanuts at R$16.10 for the 2007/2008 crop year.  PERU 
OBSERVACIONES RECAPITULATIVAS -BRASIL  
 Para hacer frente a la desaceleración de la  economía mundial, ¿Qué  medidas está tomando 
Brasil para preservar su comercio y sus inversiones? 
 
ANSWER: 
 The Authorities are following developments related to the financial turmoil closely. 
Since September 2008, to ease the liquidity squeeze, the Authorities adopted measures to tackle the financial problems, injecting liquidity in th e foreign currency market and in the domestic 
credit market. With these initiatives, the Cent ral Bank of Brazil (BCB) aims at preventing  WT/TPR/M/212/Add.1 
 Page 199 
 
 
 excessive exchange rate devalua tion, preserving economic stabilit y and minimizing inflation 
pass-through. Since then, the BCB and Governmen t’s actions to tackle the crisis include, for 
example, reduction of reserve requirements for ba nks, sales of currency, collateralized loans to 
banks, elimination or reduction of taxation on financial operations, exchange swap agreements 
with other Central Banks, preventive authoriz ation for the Central Bank to buy assets from 
banks, etc.  
 Para que Brasil haga efectivos sus acuerdos sobre inversiones, ¿que medidas tendría que 
tomar en cuanto a su legislación? Teniendo en cu enta que esta aceptando nu evos compromi sos en el 
Marco del Acuerdo General sobre el Comercio de Servicios (AGCS). 
 
ANSWER: 
  The reasons for not adopting the Bilatera l Investment Agreements negotiated by Brazil 
do not hinder the ability of Brazil to make co mmitments in the GATS. The Brazilian regulatory 
framework already guarantees national treatment and market access to foreign investment, key 
principles of the GATS. However, it is not comp atible with some features of the investment 
agreements, such as clauses on investor-State dispute. 
 
 ¿Qué tipo de sanción podría imponer la OMC a Brasil de no cumplir con las normas 
Multilaterales? 
 
ANSWER: 
  According to the article 19 of the annex 2, Understanding on Rules and Procedures Governing the Settlement of Disputes, “where a pane l or the Appellate Body  concludes that a  
measure is inconsistent with a covered agreement, it shall recommend that the member 
concerned bring the measure into conformity wi th that agreement(...)”  In addition, according 
to the article 22 of the same annex, if the recommendations and rulings are not implemented 
within a reasonable period of time, compensation  and the suspension of concessions or other 
obligations are temporary measures available. It is paramount to stress that article 21 
establishes that if the matter regards a developing  country, the DSB  shall take into account the 
impact on the economy of developing country concerned.  
 ¿Qué mecanismos utiliza Br asil para lograr un régimen de neutralidad fiscal para sus 
exportaciones? 
 
ANSWER:   Brazil has a general policy of excluding ind rect taxes applied on exports. However, the 
complexity of the tax system makes it di fficult to achieve fully fiscal neutrality. 
 
 Brasil ha participado activamente en las Negocia ciones de Ronda de Doha, ¿que resultados 
espera del Programa de Doha para el Desarrollo  (PDD)? ¿Brasil considera que se pueden  
transformar los objetivos de los países en desarrollo? 
 
ANSWER: 
 
 Brazil considers that the Doha Development Ro und will only be successful if it results in 
benefits for all members, particularly for deve loping countries. Brazil considers that priority 
should be assigned to a successful and me aningful agreement on agriculture, since the 
overwhelming majority of the world´s poor have  their livelihoods linked to the rural areas and WT/TPR/M/212/Add.1 
Page 200  
 
 the sector remains subject to a wide array of trade distortions and protectionism, which hamper 
effective exploitation of developing co untries' competitiveness in this field. 
 
 The conclusion of the Doha Round would bring new and structural opportunities for 
developing countries through: a) elimination of agriculture export subsidies; b) significant 
reduction of domestic subsidies for agriculture in  developed countries, c) expansion of market 
access for agricultural products;  and d) strong reduction of tariff escalation. Moreover, Special 
and Differential Treatment (S&D) in the WTO sh ould be reinforced. Developing Countries will 
only benefit from the conclusion of the Round if  they build export capacity, infrastructure and 
if they are able to identify export opportuni ties, diversify production and add value to it. 
 
REGIMEN DE POLITICA COMERCIAL Y DE INVERSIONES 
 
 Párrafo 3: “Los inversores extranjeros y brasile ños reciben el mismo trato a menos que se 
apliquen restricciones a la inversión extranjera en virtud de una determinada ley”. Sobre el 
particular, ¿cuáles son las leyes que limitan la  participación de la inversión extranjera?  
 
ANSWER: 
  As a general rule, the Brazilian Constitution  determines that nationals and foreigners 
established according to Brazilian legislation must  receive the same treatment. For strategic and 
public policy reason, foreign participation in nucle ar energy, health services (except insurance), 
hydraulic power generation, or postal and tele graph services sectors are not allowed. In other 
sectors, specific restrictions may be fo und, according to sectorial regulations. 
 
PANORAMA GENERAL Y MEDIDAS QUE AFECTAN DIRECTAMENTE EL COMERCIO 
III; 1); 1.  
 Del 2004 al 2008 se ha producido un aumento del arancel MNF en 1,1%. Al respecto, el Perú 
desea saber cuáles han sido las partidas que han au mentado más y la razón de este incremento.  El 
Perú desea saber en mayor detalle en qué consis ten los cuatro impuestos internos acumulativos 
aplicados también a las importaciones. 
 
ANSWER: 
  The simple average increase does not reflect Brazil’s general trade policy, since it is 
related to changes in the tariff profiles of a fe w sectors. Those applied tariffs are related to 
particularly sensitive sectors, as they are mo stly labour-intensive (textiles, clothing and 
footwear). Analysis of import flows for the sa me sectors reveals an accelerated growth of 
imports for that period, including the lines for which applied tariffs are higher. The related 
imports for textile and clothing, for instance,  increased by 178% over the period 2004-2008 
(from US$1,49 billion in 2004 to US$ 1,64 billion em 2005; US$ 2,29 billions in 2006; US$3,23 billions in 2007; US$ 4,16 billions in 2008). The modal tariffs are lower than some 
developed countries’ peaks for the same sectors. With regard to chemicals, there were limited 
topic increases in tariffs: the modal tariff is on ly 2% and the average applied tariff is around 
7%. 
 
III; 1); 2. 
 
 Además de programas de fi nanciación, seguro y garantía de las exportaciones, ¿bajo qué 
otras formas Brasil “ofrece otros incentivos y pres ta asistencia oficial a los productores nacionales a 
nivel tanto federal como estatal”? 
  WT/TPR/M/212/Add.1 
 Page 201 
 
 
 ANSWER: 
  With respect to subsidies, please refer to  our notifications to the SCM Committee. We 
remain available to exchange information on any other action which may be of interest to the Peruvian government . 
 
III: 2); i); 10 
 
 ¿Por qué razón sólo los ciudadanos brasile ños pueden actuar co mo agentes de aduanas? 
 
III: 2); i); 14 
 
 ¿El arancel MNF incorpora de alguna manera el derecho mínimo de 40 reales por DI 
registrada en el SISCOMEX? 
 
ANSWER:   The SISCOMEX charge is commensurate to the cost of the services rendered by 
Brazilian governmental agencies involved in international trade. 
 
III: 2); i); 17 
 
 Respecto de las actividades de facilitación del co mercio en curso, el Perú desea saber ¿cuál 
es la meta u objetivo que se ha propuesto el Brasil en relación con el tiem po de despacho de aduana y 
cuál es el plazo para lograrlo? 
 
ANSWER:   Brazil has not defined a specified target fo r the average customs clearance times. The 
goal pursued by trade facilitation measures is to  gradually and consistently lower these average 
times. 
 
III; 2); iv); 43. 
 
 ¿Por qué motivos entre 2004 y 2008, el Brasil aumentó los aranceles aplicados a los 
productos químicos, el calzado y los textiles y las prendas de vestir; estos  últimos registraron el 
incremento más elevado (7,9 puntos porcentuales)? 
 
ANSWER: 
  Those applied tariffs are related to particul arly sensitive sectors, as they are mostly 
labour-intensive. Analysis of import flows for th e same sectors reveals an accelerated growth of 
imports for that period, including the lines for wh ich applied tariffs are higher. Tariff levels are 
not restricting trade. The related imports for te xtile and clothing, for instance, increased by 
178% over the period 2004-2008 (from US$ 1,49 billion in 2004 to US$ 1,64 billion em 2005; 
US$ 2,29 billions in 2006; US$ 3,23 billions in 2007; US$ 4,16 billions in 2008). The modal tariffs are lower than some developed countries’ peaks fo r the same sectors. With regard to chemicals, 
there were very limited increases in tariffs: the mo dal tariff is only 2% and the average applied 
tariff is around 7%.  WT/TPR/M/212/Add.1 
Page 202  
 
 POLITICAS Y PRÁCTICAS COMERCIALES POR MEDIDA 
Medidas sanitarias y fitosanitarias 
 
 En el punto 169 de este documento se hace ref erencia a los análisis de riesgos, a saber: 
"Según las autoridades, en el proceso de evaluac ión del riesgo se tiene presente la información 
técnica recibida de terceros países y, por ese motivo, su duración depende sobr e todo de la rapidez 
con que se obtenga y evalúe esa información.  No se disponía de información sobre los plazos mínimo 
y máximo necesarios para realizar una evaluación de l riesgo".  La consulta es: Brasil ha pensado en 
mejorar la atención en la realización de análisis de riesgos para facilitar el ingreso de productos 
agropecuarios. 
 
ANSWER: 
  Brazil has continuously strived to improve its analysis capabilities in line with international recommendations.  
 
Competencia 
 
  Podrían alcanzarnos mayor detalle sobre el  trabajo de investigaci ón que realiza el órgano 
competente de Libre Competencia brasilero (S DBC), sobre todo, respecto de su Centro de 
Inteligencia para el control de cárteles en colabor ación con la Policía Federal y la Fiscalía.  ¿La 
norma sobre el control de cárteles es del de tipo judicial?  ¿Podrían aclarar las competencias del 
SDBC? 
 
ANSWER: 
 
 The competition law and practice in Brazil is  governed primarily by Law No. 8.884, of 
1994, as amended in 2000 and 2007. The Brazilia n Competition Policy System (BCPS) is 
composed of three agencies - namely, the Secretar iat for Economic Monitoring of the Ministry 
of Finance (SEAE), the Secretariat of Economic La w of the Ministry of Justice (SDE), and the 
Administrative Council for Economic Defense (CADE ). SDE is the chief investigative body in 
matters related to anticompetitive practices and it  also issues non-binding opinions in merger 
cases. SEAE issues non-binding economic opinion in merger review and it may also issue non-
binding opinions related to anticompetitiv e practices, including cartel. CADE is the 
administrative tribunal, composed of seven Co mmissioners, which makes the final rulings in 
connection with anticompetitiv e practices and merger review. 
 
 In addition to constituting an anticompetitiv e practice, cartel is also a crime in Brazil 
(Law No. 8,137/90) and SDE as the chief inv estigative antitrust authority is increasing 
cooperation with the Federal Police and Public  Prosecutors to ensure that managers and 
directors of companies that do not come forwar d and take part in our Leniency Program will 
face full criminal liability, with jail sentences of maximum five years.  
 The BCPS is currently undergoing a pro cess of revision through Bill nr. 5.877/2005, 
which is still pending congressional approval. It is intended to consolidate the investigative, 
prosecutorial, and adjudicative functions within CADE. 
 
Propiedad Intelectual: Derecho de Autor 
 
 ¿Qué medidas se han adoptado en el Plan Nacional de Lucha contra la piratería que el 
Consejo Nacional de Lucha contra la Pirat ería y los delitos de propiedad intelectual CNCB? 
 
  WT/TPR/M/212/Add.1 
 Page 203 
 
 
 ANSWER: 
  The National Plan to Combat Piracy – launched in February 2005 - comprises 99 actions based on a three-pronged strategy, which include s repression, educational/awareness campaigns 
and economic measures. The implementation of the plan is carried out through coordinated 
action of public authorities (in all levels: federa l, state and municipal) and the private sector. 
The plan aims at combating counterfeiting by addressing both supply (with repression actions) 
and demand (with educational/awareness campaigns and economic measures). 
  The National plan has achieved importan t results both in political and operational 
aspects. Firstly, it has brought together public and private sector in the fight against piracy and 
counterfeiting. Also, the plan has garnered comple te involvement of enforcement agencies such 
as Federal Revenue of Brazil, Federal Police and Federal Highway Police Department. As a 
result, the Brazilian Government posted in the last  years record breaking figures of seizures of 
counterfeit and pirated goods, arrests of and cr iminal procedures against pirate producers/ 
counterfeiters.  
  In light of the challenges posed by pira cy and counterfeiting, the Brazilian Government 
assessed that actions under the national plan should be revised building on its three year 
implementation experience  In 2008, CNCP organi zed workshops, attended by the members of 
the Council, to discuss the revision of the Nati onal plan. The revision process produced a 
Strategic Roadmap, which describes new action s, new methods and new frontlines to combat 
piracy and counterfeiting.    In 2009, a revised plan based on the road map will be put in place. The new plan will include initiatives to involve the consumer more  directly in the national effort against piracy 
and counterfeiting. The private sector will st ep up its participation in awareness-raising 
campaigns directed to consumers. Such campai gns would be displayed in movie theatres, 
shopping malls, stores, etc.   In sum, Brazil will work on a wider and mo re systematic strategy to combat piracy and 
counterfeiting. This strategy will seek to mobili ze Brazilian society at large against the scourge 
of piracy and counterfeiting.  
 MARCO INSTITUCIONAL Y NORMATIVO DEL COMERCIO INTERNACIONAL  1) Cuestiones transversales 
ii) Facilitación del comercio 
Párrafo 86:  
 
 Con respecto al mejoramiento del régimen de los “operadores económicos autorizados”, 
¿éste estaría dirigido solo para los importadores? Si es así, ¿por qué?  To mando en consideración 
que deben tener un historial de cumplimiento de  la reglamentación comercial, ¿se está considerando 
el tema de la trazabilidad en los “operadores económicos autorizados”?  
 
ANSWER: 
  Authorized economic operators, in Brazil, operate through the “blue line”. According to 
article 2 of Normative Instruction nº 476, the “b lue line” is destined to industrial enterprises 
regularly operating in foreign trade and allo ws express customs clearance in importation, 
exportation and traffic operations.  There is no sp ecific mention to traceaility in the legislation 
concerning the “blue line”. 
 WT/TPR/M/212/Add.1 
Page 204  
 
 Párrafo 87: 
 
 ¿Cómo está conformado el Grupo Técnico de Facilitación del Comercio (GTFAC)? ¿Cuáles 
son sus objetivos con respecto a las Aduanas?  ¿Cuáles son las razones que llevaron a Brasil a 
implementar el Carnet ATA? 
 
ANSWER: 
  Resolution nº 16 of March 20th 2008 created the Technical Group of Trade Facilitation 
(TGTF). The TGTF is integrated by the following bodies: 
 
I – one representative from the Executive Secretariat of CAMEX,  II – one representative from the Ministry of  Development, Industry and Foreign Trade 
(MDIC); III – one representative from the Chief of Staff Office of the Presidency of the Republic (CC); 
IV – one representative from the Ministry of External Relations (MRE); 
V – one representative from the Ministry of Finance (MF); VI – one representative from the Ministry of Agriculture (MAPA); VII – one representative from the Ministry of Agrarian Development (MDA); VIII – one representative from the Ministry of Planning, Budget and Management (MP); 
IX – one representative from the Federal Revenue (RFB); 
X – one representative from the Foreign Trade Secretariat (SECEX/MDIC); and, 
XI – one representative from the Agriculture Defense Secretariat (SDA/MAPA).    Since the creation of the TGTF, the Brazilian Government adopted the following Trade Facilitation measures:   
 
 a) Conclusion of the draft legislation submitted to Congress to ratify the Istanbul 
Protocol (Ata Carnet); 
 b) Elimination of licensing requirements fo r importing airplanes and airplane parts; 
 c) Reduction in the number of products subjected to inspection for internal transit by 
ANVISA and IBAMA; 
 d) Comprehensive review of legislation and licensing requirements for each non-tariff 
control agency with a view to reduce duplication and increase efficiency; 
 e) Improvements to SISCOMEX in order to  allow agencies to automatically approve 
less risky operations; 
 f) Incorporation of new software to SISCOM EX to allow the attachment of electronic 
documents to the system; and 
 g) Nationwide evaluation of the availa ble workforce of a ll Brazilian government 
agencies operating at borders, in order to provide adequate personnel to deal with increased trade flows. 
  Additionally, the TGTF has been working on  the following actions:  (i) Definition, 
development of criteria, and introduction of risk management tools for non-tariff control 
agencies into SISCOMEX; and (ii) Implementation of more efficient rules for inspections of wood products and containers consisting of wood , including acceptance of a certification issued 
by exporters or importers that the wood has been treated.  
 The Technical Group of Trade Facilitation has the following attributions, according to 
the Resolution nº 16 of March 20th, 2008:  I – identify and evaluate measures related to the subjects found in the CAMEX Resolution nº 
70/2007;  WT/TPR/M/212/Add.1 
 Page 205 
 
 
 II – suggest to the Council of the CAMEX Ministers measures of rationalization, simplification, 
harmonization and facilitation of procedures related to Foreign Trade; III – examine requests of inclusion, exclusion or alteration of products or treatments 
undergoing approval on importation and exportation; IV – monitor the execution of stated periods by CAMEX for the implementation, by agencies 
and entities of the Public Federal Administration, of measures relating to the subject of 
CAMEX Resolution nº 70/2007; V – submit to the Council of Minister of CAMEX recommendations and orientations regarding the effective implementation to the matters of article 2 of CAMEX Resolution n° 70/2007; VI – analyze other subjects relating to its functions; 
VII – undertake other attributions entrusted by the Council of Ministers of CAMEX. 
  Brazil considers that ATA Carnet is a valuable tool to simplify and expedite customs procedrures related to temporary admission of  goods. Therefore, the Brazilian government has 
recently sent to Congress a project to become a Member of the Istanbul Convention, which 
contains the ATA Carnet provisions.  
V.  FUTURA EVOLUCIÓN 
Párrafo 144:  
 
 ¿El objetivo de la Política de Desarrollo Produc tivo (PDP) de fortalecer el marco jurídico de 
la innovación tecnológica involucra proyectos de gobierno electrónico?  
ANSWER: 
  The PDP does not have any specific project addressing E-Government. 
 
Párrafo 145:  
 
 ¿El fortalecimiento y desarrollo  del MERCOSUR incluye desarrollar acuerdos de asistencia 
mutua entre aduanas? 
 
ANSWER:   Yes. There are different initiatives concern ing the cooperation between the national 
customs services. Mercosur has a specific body to discuss and harmonize customs policies – the 
Technical Comittee N° 2 (CT-2), linked to the Trade Comission (CCM). The CT-2 meets 
regularly three or four times each semestre. A D ecision to promote mutual assistance between 
the national customs was approved in 1997 (Decision  N° 1/97) and was later revised by Decision 
N° 26/06. 
 
III. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS 
2) Medidas que afectan directamente a las importaciones 
i) Procedimientos aduaneros y documentación 
Párrafo 9: 
 
 ¿El Sistema Integrado de Comercio Exterior  - SISCOMEX está bas ado en algún estándar 
internacional? De ser así, por favor indicar cuál es ese estándar.  ¿Bajo qué condiciones las 
operaciones son realizadas a tra vés de un agente de aduanas? 
 
 
  WT/TPR/M/212/Add.1 
Page 206  
 
 ANSWER: 
  SISCOMEX is an electronic system desi gned to facilitate the implementation of 
regulations affecting international trade. Braz il is not aware of international standards 
regarding these kinds of electronic systems. The underlying regulations that SISCOMEX 
implements are in line with the Agreement on Import Licensing.  
  The activities of customs brokers are regulated, in Brazil, by the Decree nº646 of 1992. It is important to note that the engagement of cu stoms brokers is not mandatory in Brazil for 
international trade operations. 
 
4) Medidas que afectan a la producción y al comercio 
vi) Derechos de propiedad intelectual 
 
 ¿Existe la observancia de la propiedad intelectual en frontera por Aduanas?  
 
ANSWER: 
  Brazil has put in place enforcement border measures consistent with the TRIPS Agreement. Furthermore, Brazilian anti piracy  and counterfeiting policies go beyond those 
provisions on border measures, having in the last years resorted increasingly to ex-officio 
actions.  
  The Brazilian Customs acts in ports, airports  and border checkpoints, as well as in areas 
legally defined as subject to customs surveillance.  
 The following strategies are applied to the Federal Revenue of Brazil to tackle 
smuggling, customs evasion, piracy and counterfeiting:   
¾ Customs control in all stages of the customs clearance process; 
¾ Growing number of operations ; 
¾ Use of non-intrusive inspection technology and remote surveillance; 
¾ Customs integration with Mercosur Countries; 
¾ International Cooperation; 
¾ Inter-agency Cooperation with the Federa l Police and the Highway Federal Police – 
integrated action; 
¾ Training of customs employees; 
¾ Remodeling and re-structuring of enforcement activities: 
 
o Exclusive and permanent professional activity; 
o Continuous presence of fiscal authorities; 
o Decentralized planning and action; 
o Focus on results; 
o Purchase of specialized equipment: 
 
 02 helicopters; 
 13 speedboats for maritime and fluvial customs surveillance; 
 Motor-homes/mobile offices. 
  WT/TPR/M/212/Add.1 
 Page 207 
 
 
 v) Compras Públicas: 
 
 ¿Cómo se define a una micro, pequeña y mediana empresa? ¿Cuál es la preferencia que se le 
aplica en un procedimiento de licitación? 
 
 The definition of micro and small en terprises can be found in article 3 of 
Complementary Law nº 123/2006. These enterprises m ay be incorporated as simple societies, 
commercial societies or single entrepeneur and shall be registered in the Register of 
Commercial Enterprises or in the Civil Register,  according to the case, and a) shall not earn 
more than R$240.000,00 in case of micro ent erprises; and b) shall not earn more than 
R$2.400.000,00 in case of small enterprises 
  Actualmente, ¿se pueden presentar ofertas de m anera electrónica? De ser así, ¿en qué casos? 
 
ANSWER: 
 
 Yes. Offers can be presented electroni cally in the case of reverse auctions 
  ¿El sistema electrónico de contrataciones públicas  se encuentra en algún idioma distinto del 
portugués? 
 
ANSWER:   The Brazilian electronic system for tenderi ng is available only in Portuguese. 
 
Párrafo 309: 
 
 Aunque aún no ha sido validado, ¿el Protocol o de Contratación Pública del MERCOSUR 
poseerá umbrales? ¿Se aplicará a las entidades a todo nivel de gobierno o sólo a nivel federal/central? 
 
ANSWER: 
 
 The Government Procurement Protocol of Merco sur is applied in principle to all levels 
of government. However, State Parties are allo wed to exclude state and municipal governments 
from the disciplines set by the Protocol. Argentina and Brazil have initially incorporated only the central government entities to their list of commitments. 
   
 The Protocol states that Mercosur enterpris es will have access to other member’s bids to 
purchase goods, services or public works provided that they are included in the Protocol’s 
Annex. The bid must exceed a minimum value defined in Annex V of the Protocol: 
 
COUNTRY GOODS AND SERVICES  (US$) PUBLIC WORKS (US$) 
ARGENTINA 150.000  
BRASIL 75.000 3.000.000 
PARAGUAY 200.000  
URUGUAY 200.000  
 WT/TPR/M/212/Add.1 
Page 208  
 
 IV.  POLÍTICAS COMERCIALES, POR SECTORES 
6) Servicios   ii) Servicios financieros Párrafo 128 
 
 Se indica que “las solicitudes presentadas por inversores extranjeros para desempeñar su 
actividad en el sector financiero brasileño deben esp ecificar, entre otras cosas, la cuantía de la 
participación extranjera en el capital total, los beneficios para la economía brasileña y una 
descripción pormenorizada de las actividades act uales del inversor extranjero en el sistema 
financiero brasileño”. Desearíamos saber lo siguien te:  ¿Cuántos casos ha habido en los que Brasil 
haya denegado autorizaciones a banc os extranjeros por considerar que no existen beneficios para la 
economía brasileña?  ¿El requisito de especificar “los beneficios para la economía brasileña” es 
considerado y aplicado por Brasil en la prác tica como un test de necesidades económicas? 
 
ANSWER: 
 
 The approval by Presidential Decree embodies the normal Executive discretion on the establishment of new foreign financial institutio ns, on the basis of sistemic and prudential 
considerations. It is not, therefore, an impedime nt to foreign investment in the financial sector. 
Once in accordance with the prudencial requirement s set by the Central Bank, no request from 
foreign bank to establish in Brazil has never been denied. In Executive Approval does not 
correspond to an Economic Needs test.  
iii) Telecomunicaciones 
Párrafo 159 
 
 Se señala que la estructura normativa del sector  de las telecomunicaciones del Brasil se basa 
en la mejor práctica internacional, y, durante el período objeto de examen, las autoridades han 
tratado de mejorar esa estructura mediante la in troducción de cambios en esferas tales como la 
facturación y la fijación de precios, las tarifas de  interconexión, la portabilidad de números, y las 
metas del servicio universal. Al respecto, el P erú desearía conocer si se ha incorporado en la 
legislación de Brasil obligaciones de reventa de servicios de telecomunicaciones. 
 
ANSWER: 
  ANATEL recently approved the General Plan for Telecommunication Regulation Updates in Brazil (PGR), which presents actions to be promoted in the next ten years, aiming to 
update telecommunication regulations in Brazil.  As established in PGR, ANATEL will have to 
issue regulation on resale of telecom services in order to authorize it in the next two years. 
 
Párrafo 174 
 
 Se indica que los servicios de valor añadido no se consideran servicios de 
telecomunicaciones per se. Desearíamos conocer qué  servicios son considerados como valor añadido 
en la legislación de Brasil y, si estos no son considerados servicios de te lecomunicaciones, que tipo 
de regulación aplica sobre ellos. 
 
ANSWER: 
 
 Value-added services are not defined as te lecommunication services according to the 
Brazilian legislation. Any value-added services th at perform equivalent to a regulated service 
shall be subject to the regulations applicable to the regulated service. 
  WT/TPR/M/212/Add.1 
 Page 209 
 
 
 iv) Transporte Aéreo 
Párrafo 194   Se señala que “todos los acuerdos bilateral es en vigor establecen derechos de tercera y 
cuarta libertad, y algunos conceden también derech os de quinta o sexta libertad para el tráfico de 
pasajeros.  Ninguno de los acuerdos bilaterales firmados o en vigor puede considerarse acuerdo de 
cielos abiertos.  Sin embargo, las autoridades ha n indicado que el Gobierno ha propuesto acuerdos 
más flexibles a  sus interlocutores comerciales, particularmente en América del Sur”. El Perú 
desearía saber si Brasil está considerando o tiene planes concretos de migrar hacia una política de 
cielos abiertos respecto a sus acuerdos bilaterales con países de América del Sur. 
 
ANSWER:   Open skies agreements in air tran sport are not under consideration. 
 
Párrafo 195   Se señala que” La mayor parte de esos ac uerdos se han suscrito con países de América 
Latina y Europa, y en todos ellos se establece que las compañías aéreas designadas para el suministro de los servicios acordados deben pert enecer sustancialmente a nacionales de los países 
signatarios y estar efectivamente controladas por el los”. El Perú desearía conocer si el Brasil está 
considerando flexibilizar su política respecto a la  exigencia de propiedad sustancial nacional y 
control para ser beneficiario de lo s derechos de tráfico acordados. 
 
ANSWER: 
 
 Brazil has no plans of opening the domestic  market for foreign airlines in the near 
future. However, there might be some changes in th e level of foreign equity in Brazilian airlines 
as the result of the ongoing comprehensive revis ion of the Civil Aviation regulatory framework. 
Brazil has just recently published its new Nation al Civil Aviation Policy. DECREE Nº 6.780, 
February 18,
 2009. 
 
vi) Servicios Profesionales Párrafo 234 
 
 Se señala que no se reservan profesiones par a los nacionales pero los extranjeros deben 
cumplir con ciertos requisitos legales para el ej ercicio profesional. Al respecto, desearíamos conocer 
cuáles son los requisitos legales a los que se hace referencia, además de la revalidación o 
reconocimiento del título. 
 
ANSWER: 
  The requirements vary according to the professional sector, but they usually refer to 
complience with the statue of the relevant professional associations.  
Párrafo 245 
 
 Se señala que los arquitectos e ingenieros ext ranjeros pueden trabajar en el Brasil sólo tras 
haber demostrado que no existen profesionales brasile ños capaces de realizar el trabajo de que se 
trate. Al respecto:  ¿Las profesiones de arquitect ura e ingeniería son las únicas a las cuales se les 
aplica esta limitación?  ¿Cuáles son los criterios técnicos y objetivos que gobiernan este test de 
mercado laboral? Es decir, ¿Cuál es el método y el  procedimiento que sigue  la autoridad brasileña WT/TPR/M/212/Add.1 
Page 210  
 
 para demostrar que no existen profesionales brasile ños capaces de realizar el trabajo de que se 
trate? 
 
OTROS 
Servicios de juegos de azar (casinos) 
 
 Aunque el sector de servicios de esparcimiento no está incluido en el análisis sectorial, gentilmente el Perú solicita se responda a lo sigui ente:  ¿Existen restricciones al trato nacional para 
los servicios de juegos de azar, en particular casinos, en Brasil? De ser así, ¿cuáles son estas 
restricciones? ¿Existen restricciones al comercio de servi cios de juegos de azar en línea? ¿Existen 
restricciones para el establecimiento de casinos y demás negocios de juegos de azar según región 
geográfica? 
 
ANSWER: 
 
 Gambling and like activities are prohibited by  the Brazilian legislation, with exception 
of government-sponsored lottery.  REPUBLIC OF KOREA  
 
Question 1: Secretariat Report, page 16, paragraph 18 
 
 According to page 16, paragraph 18 of the Secretariat Report, the Federal Government of 
Brazil has established programs and mechanisms in order to facilita te inbound foreign investment. 
However, despite great interest among foreign invest ors in the Brazilian market, apparently the scope 
of information available to them seems insu fficient (e.g. information on foreign investment 
procedures, laws and regulations on investment, market  information, etc.).  Korea would like to 
inquire whether efforts to facilitate the access of  such information (by web-based investment 
information system, for example), to  foreign investors are being considered. 
 
ANSWER: 
 
 Information about investment in Br azil is available at the website 
http://www.braziltradenet.gov.br/. 
 
Question 2: Secretariat Report, page 18, paragraph 30 
 
 In page 18, paragraph 30 of the Secretariat Re port, Korea notes that Brazil has signed many 
bilateral investment agreements, but none of th ese agreements have been ratified by the Brazilian 
Congress.  Could Brazil further elaborate on the concerns of the Brazilian Congress? 
ANSWER: 
 Besides the issue of the potential discrimina tory treatment against national investors in 
the face of investor-State arbitration clauses, othe r specific problems were identified, such as the 
obligation of prompt indemnization in case of expropriation, given that the Constitution 
establishes that indemnization for expropriation for agrarian reform purposes must be given in 
the form of agrarian reform titles. 
 Could Brazil inform us of the efforts und ertaken by the executive branch to ratify and 
implement the agreements it has already signed? 
  WT/TPR/M/212/Add.1 
 Page 211 
 
 
 ANSWER: 
 The agreements have been withdrawn from the Congress approval procedure. 
 Question 3: Secretariat Report, page 18, paragraph 32 
 
 Paragraph 32 states that Germany terminated its  tax treaty with Brazil as of 1 January 2006. 
Could Brazil elaborate on the reason for the termi nation?  Is there an alternative arrangement in 
place or to be introduced? 
 
ANSWER: 
  The 1975 Double Taxation Agreement (DTA) between Germany and Brazil was 
denounced by the German government in 2005, after negotiations to revise it collapsed. Such 
negotiations had been requested by the German side, on the grounds that the 1975 text was at 
odds with German new tax philosophy. The chan ges proposed by the German side on a broad 
number of issues, such as transfer pricing and wi thholding tax rates, coul d not be accepted by 
the Brazilian Tax Administration (Receita Federal). Hence, the German side decided to 
terminate the DTA. 
  The Brazilian Government, through the Brazilian Tax Authority, is open to resume discussions on the issue, but understands that the German side should take the initiative. Until 
the present moment, such step has not been made. 
 
Question 4: Secretariat Report, page 19, paragraph 33 
 
 Paragraph 33 states that Brazil is not a signato ry to the International Centre for Settlement of 
Investment Disputes (ICSID) Convention.  Could Braz il elaborate on the reason it is not signing-on to 
the ICSID Convention?  Are there plans to sign the ICSID Convention in the future? 
 
 The ICSID Convention is considered by many to be the fundamental assurance a country can 
provide to its foreign investors and their investment.  What is Brazil’s view on this point of view? 
  In the absence of protection provided to its  foreign investors by being a signatory to the 
ICSID Convention, could Brazil provide information on the type of mechanism/ system it has in place 
domestically to protect foreign investors?  
ANSWER: 
  All investor without discrimination have access to the Brazilian judiciary to protect 
their rights. Brazil considers that a stable legisl ation on FDI and an independent judiciary are 
the best instruments to guarant ee investor’s rights without jeopardizing its ability to develop 
public policies. Brazil does not intend to adhere to instruments containing investor-State dispute 
settlement system. 
 
Question 5: Secretariat Report, page 19, paragraph 34 
 
 Paragraph 34 states that Brazil announced in  the Committee on Trade in Financial Services 
in November 2007 that the Fifth Protocol had passed the first reading in both houses of the Brazilian 
Congress, and that the constitutional procedures for full adoption were near completion.  What is the 
current status of Brazil’s ratification process of the F ifth Protocol?  If the ratification process is being 
delayed, please elaborate on the reason for the dela y, and the possible timeframe for ratification. 
 WT/TPR/M/212/Add.1 
Page 212  
 
 ANSWER: 
  As it was stated in the last regular m eeting of the Committee on Trade in Financial 
Services of the WTO, in December 2008, due to pr ocedural matters the Fifth Protocol has not 
yet concluded its ratification process. A specific timeframe  for the completion of the process 
cannot be determined.  
Question 6:  Secretariat Report, page 21, paragraph 41 
 
 Paragraph 41 states that “Negotiations for the establishment of a MERCOSUR automotive 
policy, dealing with both intra-MERCOSUR and external trade, were concluded in June 2000 
between Brazil, Argentina, and Uruguay; Paraguay accepted the regime in 2001. However, this 
agreement has not fully entered in to force (mid-2008) and intra-MERCOSUR trade in the automotive 
sector is ruled by bilateral agreements.” Could Brazil elaborate on the details of the automotive 
policy agreed in June, 2000? 
 
ANSWER: 
  The intra-Mercosur Automotive Trade Agreeme nt negotiated in 2000 has not come into 
force and is due to be reviewed.  Trade in th e automotive sector is currently regulated by 
bilateral agreements negotiated under the Lati n American Integration Association - LAIA 
(Argentina-Brazil, Argentina-Uruguay and Brazil-Uruguay) and flows duty free under the 
conditions foreseen therein. 
 
 Could Brazil elaborate on the reason why this agreement is yet to be enforced? 
 
ANSWER:   See above. 
 
 Does Brazil envisage the implementation of the automotive policy in the near future? If so, 
could Brazil provide a timeline? 
 
ANSWER: 
  Quadripartite negotations will be initiated in due course. No timeline can be provided at this time. 
 
Question 7: Secretariat Report, page 32, paragraph 41 
 
 Paragraph 41 states that a certificate of origin must be issued by the appropriate authorized 
government body in each country. However, for Korean exporters in addition to receiving a 
certification from the Chamber of Commerce they mu st also receive the necessary notarization from 
the Brazilian Diplomatic mission. Without a doubt this is a burdensome requirement for exporters and 
a hindrance to trade.  In light of the trade inhi biting nature of this requirement, does Brazil have 
plans to simplify the orig in certification procedure? 
 ANSWER: 
 
 Non-preferential certificates of origin are re quested only for those products subject to 
import licensing on account of anti-dumping, safe guard or countervailing measures, as stated in 
paragraph 1 of article 10 of Portaria Secex 25/2008. When those certificates are issued by a  WT/TPR/M/212/Add.1 
 Page 213 
 
 
 governmental body or another entity authorized by the government, there is no need of 
notarization from the Brazilian Diplomatic Mission. 
 
Question 8: Secretariat Report, page 32, paragraph 43 
 
 Korea notes that the applied tariff for chemic al products, footwear, textiles and clothing have 
increased for the year 2008 vis-à-vis for the year 2004.  Could Brazil provide the reason for the 
increase in applied tariffs on these products?  Coul d Brazil provide the import figures for the years 
2004 through 2008 for textile and clothi ng products that were subject to the tariff increase? Is there a 
noticeable trend emerging from the figures?  In light  of 2) above, how does Brazil assess the effect of 
the tariff increase for textile and clothing products? Is  Brazil of the view that the tariff increase has 
served its original purpose?  Does Brazil have plans to reduce the tariff on chemical products, 
footwear, and textiles and clothing to previous levels?   ANSWER: 
 
 Those applied tariffs are related to particul arly sensitive sectors, as they are mostly 
labour-intensive. Analysis of import flows for th e same sectors reveals an accelerated growth of 
imports for that period, including the lines for which applied tariffs are higher. The related 
imports for textile and clothing, for instance,  increased by 178% over the period 2004-2008 
(from US$ 1,49 billion in 2004 to US$ 1,64 billion em 2005; US$ 2,29 billions in 2006; US$ 3,23 
billions in 2007; US$ 4,16 billions in 2008). The modal tariffs are lower than some developed 
countries’ peaks for the same sectors. With re gard to chemicals, there were limited topic 
increases in tariffs: the modal tariff is only 2%  and the average applied tariff is around 7%. 
 Question 9 : Secretariat Report, page 34, paragraph 45 
 
 In page 34, paragraph 45, the Secretariat Report notes the high levels of tariff in certain 
sectors of Brazil. In paragraph 100 of page 117 the Secretariat Report states as follows: “. . . in 
particular with respect to industries where Braz ilian producers are already world-class players, 
reducing the levels of effective tariff protecti on would encourage greater productivity and benefit 
consumers.”  Could Brazil comment on the Secretar iat’s assessment on the manufacturing sector of 
Brazil?  Does Brazil have plans to reduce its high tariffs in the manufacturing sector?  
ANSWER: 
  Brazil is negotiating the reduction of bound and applied tariff levels in the context of the 
Doha Round  
Question 10: Secretariat Report, page 34, paragraph 48~52 
 
 The Secretariat Report details the tariff regime in place in Brazil: the MERCOSUR CET and 
the various exceptions to it (in the form of a BK list, BIT list, basic list, MFN tariff quotas). Could 
Brazil elaborate on the process and the considerations  through which it determines which tariff lines 
will be included in the BK list, BIT list, basic list, or the MFN tariff quotas?  
 
ANSWER: 
 
 The “Ex-Tarifário regime”, through which BK and BITs goods can benefit from 
temporary CET reductions, only apply to pro ducts that are not produced in Brazil. The 
approval of “Ex Tarifarios” requests is based upon the following criteria, among others:  
contribution to the development and competitiven ess of the sector involved; absorption of new 
technologies; related investments in infra-structure. WT/TPR/M/212/Add.1 
Page 214  
 
  The basic lists of exceptions to the CET are designed to offer State Parties some 
flexibility to address very specific and limited i ssues and both reductions and increases in rates 
can be contemplated.    MFN tariff quotas with reduced rates are temporary exceptions to deal with short 
supply problems. 
  CAMEX is responsible for decisions on the lists, in Brazil.  
 
 Generally, once a tariff line is included in one of these lists, how long does it stay in it? Is 
there a pre-determined length of time it must be a part of this list?  
ANSWER: 
  Goods can benefit from the “Ex-Tarifário regime” for up to two years. Under current 
Mercosur regulations, Brazil ca n use the regime until 31/12/2010. 
  The national list of exceptions to the C ET can be modified twice a year (generally 
January and July), with a maximum of 20 change s (exclusions/inclusions) each time. There is no 
limit on how long a tariff line can stay in the list. 
 
 Could Brazil provide more detailed informati on concerning the tariff lines included in the BK 
list, BIT list, basic list, and the MFN tariff quotas? (e .g., total number of tariff  lines, the % vis-à-vis 
the entire total tariff lines, etc.) 
 
ANSWER: 
 
 The lists are available at the following web pages:  http://www.desenvolvimento.gov.br /arquivos/dwnl_1230727490.xls 
http://www.desenvolvimento.gov.br/sitio/interna/interna.php?area=5&menu=1848 http://www.desenvolvimento.gov.br /arquivos/dwnl_1227554000.xls 
 
 The NCM (Common Mercosur Nomencla ture) has about 9000 tariff lines. 
  Concerns have been raised with regards to  the lack of transparency concerning the 
operation of these lists of exceptions (which TLs are included in the list, for how long, and on 
the reason for inclusion in the list, etc.).  
 What is the view of Brazil with regards to the comments?  
 
ANSWER: 
 
 The list is designed to offer State Parties some flexibility to address very specific and 
limited issues. All the corresponding information ca n be found at the Ministry of Development, 
Industry and Foreign Trade web page: h ttp://www.desenvolvimento.gov.br/arquivos/ 
dwnl_1227554000.xls.  
 The validity of the national lists and its ra tionale is regulated by Decision N° 59/07, 
available at the following web page:  http://www.mercosul.gov.br.  
 
 What measures have been introduced to ensu re that this system is implemented in a 
transparent manner, and foreign exporters may fi nd the relevant information with ease?  WT/TPR/M/212/Add.1 
 Page 215 
 
 
 ANSWER: 
  See above. 
 
Question 11 : Secretariat Report, page 44, paragraph 105 
 
 Paragraph 105 states that Br azil imposes import prohibitions on virtually all used consumer 
goods, including motor vehicles.  Could Brazil expla in the purpose of this policy? Could Brazil 
elaborate on how this measure is applied in practi ce? Could Brazil elaborate on how this measure is 
in conformity to Brazil’s international commitm ents and obligations?  Does Brazil have plans to 
reverse its ban on the importation of used cons umer goods, including motor vehicles in the near 
future? 
 
 On January 26, 2009, Brazil implemented a pre-import licensing requirement which would 
have applied to 60~70 percent of all imported goods. However, in light of the concerns expressed by 
importers and foreign governments, Brazil abandoned th e policy within two days. Although repealed, 
this type of measure creates uncertainty surr ounding the Brazilian market; concerns about whether 
similar measures of a protectionist nature might be adopted in the future.  Could Brazil confirm that 
any such measures of a protectionist meas ure will not be introduced in the future? 
 
ANSWER: 
 
 The import prohibition of used consumer goods is in place mainly for environmental 
and safety reasons, related either to their shor ter life cycle or to their functionality and 
performance characteristics. Regarding the life cy cle of such goods, it is well known that used 
goods have a shorter remaining lifespan than  new goods and therefore become waste sooner 
than the latter. Besides contributing to increase  the generation of wastes in the importing 
countries, importation of used goods may bring together specific health and environmental risks to be assessed in each case.  Brazil do es not intend to adopt those measures. 
 
Question 12 : Secretariat Report, page 45, paragraph 107 
 
 With regards to the August 2008 DSB arbitr ation decision on Brazil – Tyres, Brazil must 
implement the WTO recommendations by December 17, 2008. Could Brazil provide details on 
whether it has taken the necessary measures to implement the WTO recommendations?  (If no) Could 
Brazil elaborate on why it has not taken the necessa ry steps to implemen t the recommendations? 
 
ANSWER:   The Panel Report, as modified by the Appella te Body Report, on the Brazil – Retreaded 
Tyres dispute acknowledged that the Brazilian import  ban is justified by the exception of GATT 
Article XX(b) on environmental and public health  grounds, but failed to comply with the caput 
of that article due to imports of used tyres th rough court injunctions and imports of retreaded 
tyres from MERCOSUR. Therefore, Brazil is pursuing compliance by remedying the measures 
found inconsistent, basically (i) by eliminating im ports based on court injunctions; and (ii) by 
negotiating a MERCOSUR-wide tyre regime.    Brazil is taking all necessary steps to comp ly with DSB recommendations as speedily as 
possible, and progress has been made in both aspects. Regarding the court injunctions, the 
Supreme Court proceedings initiated by the Br azilian government are about to reach their 
conclusion, with the judgement already scheduled  to occur in the March 2009. Negotiations are 
also in progress concerning the MERCOSUR i ssue, which has been discussed in several WT/TPR/M/212/Add.1 
Page 216  
 
 instances, and therefore Brazil expects to ac hieve full compliance of DSB recommendations 
shortly 
 
Question 13: Secretariat Report , page 46, paragraph 110~112 
 
 According to page 46, paragraph 112 of the Secretariat report, Brazil applies non-automatic 
import licensing for 35.8% of all tariff lines. Pl ease elaborate on the reason for maintaining the non-
automatic import licensing system.  Does Brazil have plans to reduce the number of products subject 
to non-automatic import licensing? 
 
ANSWER:   1) Non-automatic licenses are an instrument  to integrate different control requirements, 
imposed by different agencies, within a single el ectronic system for the processing of import 
documentation – the Integrated System of Foreign Trade (SISCOMEX). 
 
 Each governmental agency in charge of imposing non-automatic import licensing requirements derives its specific competence from law and/or international treaties. The website 
of the Ministry of Development, Industry and Commerce (MDIC – www.desenvolvimento.gov.br) contains a list of th ose agencies, the legal basis for the controls 
imposed by them, and the justific ation for their implementation. 
 
 2) In order to minimize the impact of li censing requirements on Brazilian imports, all 
governmental agencies are periodically required to review their licensing requirements and to 
reduce their controls to the minimum necessary. As an additional measure to minimize the 
impact of licensing on trade, Resolution CAM EX nº 70/2007 introduced a new process whereby 
the merit and the legality of agencies’ demands for products to be subject to licensing are 
checked in order to avoid the occurrence of multip le authorizations and inspections, with a view 
to saving time and costs. 
 
Question 14 : Secretariat Report, page 46, paragraph 111 
 
 Although not elaborated in the Secretariat Repor t, it is our understanding that Brazil has 
adopted a “Minimum Import Price” system thr ough which the issuance of import licenses for 
products that fall below a certain “M inimum Import Price” is refused.  Recently, it has come to our 
attention that due to this measure, customs clearance for a Korean product (Spandex yarn) was 
denied for allegedly failing to meet the minimum im port price.  Previous to the Spandex yarn case, the 
import license for regenerated polyester staple fiber s from Korea was refused; its exports to Brazil 
have since been resumed following a price adjustment.   What is the legal bas is for setting arbitrary 
minimum import prices?  Could Brazil provide a detailed explanation on how the minimum import 
price is set by the relevant Brazilian authorities and on what condition the actu al transaction price is 
denied? Does Brazil view that this practice is cons istent with Articles 1 and 3 of the Agreement of 
Import Licensing Procedures?  Will Brazil contem plate discontinuing the implementation of the 
“Minimum Import Price” system? If not, what assu rances can Brazil provide to ensure that it will not 
abuse this measure to support its domestic industry? 
 
ANSWER: 
 
 Brazil does not apply a "Minimum Import Price" system.  
  WT/TPR/M/212/Add.1 
 Page 217 
 
 
 Question 15 : Secretariat Report, page 63, paragraph 209 
 
 Brazil is taking steps to expand the scale of the Export Financing Programme (PROEX), 
through which the government provides support not only to companies that export capital goods, but 
also to exporters of materials (basic commoditi es), textiles and shoes. Such an expansion could lead 
to another trade dispute, simila r to the recent case involving aircraft.   What measures are being taken 
to ensure that the PROEX programme is in confor mity to Brazil’s international commitments and 
obligationis? Are there any plans to adjust the scope of the PROEX progr am, particularly regarding 
textiles and shoes? 
 
ANSWER:   PROEX is fully in compliance with the pr ovisions set forth in the WTO Agreement on 
Subsidies and Countervailing Measures. We note th at its financial costs are fully covered, and 
its operation is done at interest rates compatib le with those of the international market.  
 
 The sectors mentioned have always been cove red, and no significant adjustments in the 
scope of PROEX are now being envisaged. 
 
Question 16: Secretariat Report, page 69, paragraph 231 
 
 Para 231 of the Secretariat report notes t hat Brazil has a complex legal framework on 
manufacturing and investment. It has come to our at tention that regulations on investment tend to be 
stipulated in several separate laws making it d ifficult for foreign investors to fully understand and 
comprehend Brazil's investment-related laws and regulations.   
 In this context, does Brazil have plans to si mplify/streamline its laws on foreign investment? 
(i.e. to form a single “General law on foreign investment ”) If so, what is the current progress of such 
efforts? 
 
ANSWER: 
 
 Brazil has a stable and business-friendly regulatory framework, which it is committed to 
keep improving. Brazil is the second recipient among emerging economies of FDI. 
 
Question 17 : Secretariat Report, page 69, paragraph 236 
 
 According to page 69, paragraph 236 of the Secret ariat report, foreigners wishing to engage 
in corporate activities in Brazil must estab lish either a subsidiary or a branch office. 
  For a foreigner to establish a subsidiary in Br azil, he or she must first obtain a residence 
visa, the requirements of which are quite excessive (e .g. strict performance requirements in the form 
of minimum level of capital investment per dispat ched employee, local hiring obligations, etc.). 
Furthermore, to establish a subs idiary, the foreign investor need s to obtain permission from the 
President. This process is apparently quite strict; not  many have acquired the permission successfully.  
Has Brazil given any consideration to easing the requirements imposed on foreigners in establishing 
subsidiaries and branch offices in Brazil? 
 
ANSWER:   Korean expatriates who have been dispatched  to work in Brazilian branch offices must 
first enter Brazil as temporary visas and then re quest permission from the Ministry of Labor WT/TPR/M/212/Add.1 
Page 218  
 
 for a formal stay. After approval of the Ministry  of Labor, they must  then apply for visas 
through the Embassy of Brazil in Korea. 
 
 Korea believes this process should be made  more efficient and convenient for foreigners 
conducting business in Brazil, and would like to inquire Brazil’s views on this issue. 
 
ANSWER: 
  The requirements for obtain a residence vi sa are not excessive, and they are in 
accordance with international practice.  
 
Question 18:  Secretariat Report, page 75, paragraph 265 
 
 Could Brazil provide specific plans regarding the future privatization of public services, such 
as electricity generation and oil exploration? 
 
ANSWER: 
  The Brazilian Government does not discard the possibility of granting concessions in 
certain sectors in the future, but there are no  specific plans as such in this sense .  
 Question 19: Secretariat Report, page 86, paragraph 315 
 
 In government procurement, Brazil provid es preference to domestic products and services 
when deciding between identical offers. Also, by  invoking a provision in its information and 
communication law, Brazil is able to provide sp ecial treatment to domestic companies when 
procuring IT goods and related services. In light  of Brazil’s competitiveness in the manufacturing 
sector, Korea is of the view that it is high time for Brazil to wholly review this practice. Could Brazil 
provide a timeline for providing equal access to  foreign suppliers in its government procurement 
market? 
 
ANSWER: 
 
 Brazil’s system of Government Procurement is one of the most transparent systems. Brazil intends to keep promoting further transparency. Foreign companies can participate in any public te nder in Brazil, as long as they are legally 
established or represented in the country and are authorized by the Brazilian Government to 
function within its territory. This authorization has never been denied by the Brazilian Government .  
 
Question 20 : Secretariat Report, page 109, paragraph 53 
 
 It is our understanding that Brazil will grant  permission to foreign companies to conduct 
mineral resources development projects in border areas, under the condition that the resources are 
processed in Brazil. Could Brazil confirm whether this  is accurate information? (If Yes) Could Brazil 
provide further information on the current status  the legislation process? When does Brazil foresee 
this policy being implemented? 
 
ANSWER:   Yes, the legislation on mining is under review in order to allow foreign companies to conduct activities in border areas under specific  conditions. The legislation is still under 
discussion in Congress and it is not possible to determine when it will be in effect.  WT/TPR/M/212/Add.1 
 Page 219 
 
 
 Question 21 : Secretariat Report, page 120, paragraph 120 
 
 In regards to the inter-bank export credit o ffered by foreign banks such as the Import-Export 
Bank of Korea, it has come to our attention that Brazilian banks that administer the inter-bank export 
credits place strict criteria for its use (e.g., credit is  given only for imports that exceed US $1 million). 
While there is no golden rule concerning this issue, it is clear that a flexible operation/use of these 
funds will lead to the promotion of trade.  Please confirm whether in Brazil the issue described above 
involves the intervention of the Govern ment of Brazil. Would Brazil be willing to look into this issue 
with a few to introducing a more flexible criteria?  
ANSWER: 
  Yes, the legislation on mining is under review in order to allow foreign companies to conduct activities in border areas under specific  conditions. The legislation is still under 
discussion in Congress and it is not possible to determine when it will be in effect. 
 
Question 22: Secretariat Report, page 119,  128, 131, paragraphs 115, 159, 170 
 
 According to the Secretariat report, alt hough the General Telecommunication Law provides 
the Executive Branch with the authority to limit ne w foreign participation in the telecom sector, any 
company established in Brazil, regardless of the origin  of the capital, has been able to participate in 
the sector. In this context, there is no distin ction between foreign and domestic capital. 
  Given the above, are there any  review procedures or public interest tests applied to foreign 
investors and/or foreign capital? If so, please expla in in detail.  Given that Brazil has neither 
committed the telecom sector in its GATS schedule nor adopted the Reference Paper, how is Brazil 
providing the necessary assurances to foreign investors w ith regards to its telecom sector?  In light of 
the lack of predictability in the telecom sector, do es Brazil have plans to commit its telecom sector in 
GATS? 
 
ANSWER: 
 
 All service suppliers in order to supply a te lecommunication service in Brazil need to 
obtain a licence from Anatel. Licences shall be  granted only to suppliers duly constituted 
according to the Brazilian legislation, regardless of the origin of capital, which requires head 
office and management located in the Brazilian t erritory, and ownership of the majority of the 
voting shares by natural persons resident  in Brazil or companies duly constituted according to 
the Brazilian legislation, which requires head o ffice and management located in the Brazilian 
territory. 
 
 Once established according to the rules mentioned above, every company despite its 
capital composition, is submitted to  the same rights and obligations. 
 
 The Federal Constitution guarantees the rights of foreign investment in Brazil. 
 
Question 23: Secretariat Report, page 132, paragraph 179 
 
 Paragraph 179 of the Secretariat report(page 132) states that in 2007, the government 
introduced a new cost-based methodology to calcul ate price caps for interconnection prices charged 
by operators with significant market share but it is not yet in force. Could Brazil elaborate on this 
new cost-based methodology in detail?  Could Brazil elaborate on when it foresees this methodology 
being implemented?  If there are further consider ations which prohibit the introduction of this 
methodology, please elaborate in detail. WT/TPR/M/212/Add.1 
Page 220  
 
 ANSWER: 
  In January 2006, ANATEL started using a new index in order to calculate inflation for the telecom market. The “Índice de Serviços de Te lecomunicações” (Telecom Services Index) is 
a mix of several economics indexes and reflects the real costs of telecom services. Besides that, in 
2008, ANATEL published a new formula for calculatin g productivity in the sector (Factor X) 
that introduces optimized inputs in the tel ecom sector. Concerning Interconnection fees, 
ANATEL is developing a new method – based in costs – in order to calculate those fees. 
 
Question 24: Government Report, page 7, paragraph 17 
 
 In page 7, paragraph 17 of the Government report, Brazil states that its banks are relatively 
well-equipped to face the global credit crunch owing to Brazil's stable financial system.  Could Brazil 
further elaborate its views expressed in paragraph 17?  Is there a particular policy that is under 
review by the Brazilian government to further stab ilize/improve the Brazilian financial system? If so, 
please explain in detail. 
 ANSWER:    Most Brazilian banks had profits in the 2008  fiscal-year. They benefited from the robust 
growth of the domestic economy. It is import ant to bear in mind that Brazilian financial 
institutions were not as exposed to toxic a ssets or US mortgage papers as some foreign 
institutions were. Moreover, their leverage leve ls over capital are far below Basel II limits, 
at 6,5.   Notwithstanding the good performance of  Brazilian banks, our Government set up 
measures in late 2008 to safeguard the health of  the financial system. Firstly, the government 
made it easier for private and state-owned banks  to purchase the loan portfolio of smaller 
financial institutions. Secondly, The Brazilian Ce ntral Bank provided liquidity to revitalize the 
interbanking credit market.  
 
Question 25: Government Report, page 8, paragraph 20 
 
 BCB and the US Federal Reserve settled a swap  line of US $30 billion in October 2008 to 
prevent the contagious effects of the global financial crisis. 
 
 Compared to the beginning of 2008, the value of the Brazilian Real depreciated by about 30% 
by the end of the year 2008. In this regard, w hat other measures besides the currency swap agreement 
with the US have been or will be implemented by the Brazilian government to stabilize the value of the 
Real?  What is Brazil’s assessment on the currency swap agreement with the US? Is it of the view that 
on the agreement was effective in stabilizing the fluctuation of the Brazilian real? Does Brazil have 
plans to settle swap lines with other countries? 
 
ANSWER:   The Brazilian Central Bank adopted a floating exchange rate in 1999 and, since then, the monetary authorities have not intervened in the currency exchange market in order to 
obtain pre-determined level.  
 
 The US agreement with the Brazilian govern ment on currency swaps works alongside 
the guidelines of similar agreements signed wi th the Central Banks of Mexico, Korea and 
Singapore, in October 2008. It is a recognition of the key role played by emerging countries and 
of their importance for global stabilization and recovery. Brazil is open to study the possibility  WT/TPR/M/212/Add.1 
 Page 221 
 
 
 of cooperating with any partner willing to estab lish swap lines, but is not actively proposing 
such agreements with any country.   It is important to mention that Brazil has shown resilience to the world crisis due to a number of reasons. The country has a safety net of more than 200 billion dollars in international 
reserves. Its banking system has been exposed to a tight regulatory framework, which has 
spared the banks from exposure to sub-prime l oans and guaranteed a safe leverage for the 
system. Additionally, the count ry has diversified internatio nal trade partners, avoiding 
dependence on specific markets. All these aspect s have been and will continue to play an 
important role in the stabilization of the Real. 
 
THAILAND 
 
Technical Barriers to Trade 
 
 We would like to refer to Brazil’s tec hnical regulation as notified under document 
G/TBT/N/BRA/313, which concerns importation of to ys, and which in our view, would create 
unnecessary barriers to trade in the said product du e to its certification and conformity identification 
requirements. Our relevant focal poin t, the Thai Industrial Standards  Institute (TISI), has already 
conveyed our formal comments to its Brazilian coun terpart, and to date we have not received a formal 
reply. We would like to enquire whether further in formation regarding our concerns on this matter, 
including suggestions and comments by other members would be available.  
ANSWER: 
  Regulation G/TBT/N/BRA/313 is undergoing public consultations. 
 
 Presently, Brazil’s regulations require that impor t documents be translated into Portuguese, 
which represents an additional burden for importers, bot h in terms of extra translation time and cost. 
We would like to enquire whether Brazil is consideri ng allowing English to be used for this purpose, 
as it would help facilitate trade and reduce unnecessary burden to traders. 
 
Anti-Dumping 
 
 We would appreciate any information on the progress of the Anti-Dumping final 
determination on viscose fiber and viscose yarn from Thailand. 
 
ANSWER:   This question refers to an on-going AD inv estigation. At this stage we cannot comment 
further than to state that our authorities a re commited to provide ample opportunities for all 
interested parties to make their views consid ered and to defend their interests, as we are 
required to do under the AD Agreement. We certainly remain available for bilateral 
consultations on the issue.  
PAKISTAN 
 
Q.1  Almost all of Brazil's b ound and applied tariffs are ad valorem.  However most of its 
Anti-dumping duties re levied in specific terms.  Would Brazil like to share with the Members the 
rational and philosophy behind such an approach? 
 WT/TPR/M/212/Add.1 
Page 222  
 
 ANSWER: 
  The decision concerning the sort of duty to be imposed is assessed on a case by case basis 
taking into account a variety of elements under th e scope of the investigation and with a view to 
achieving the most effective results in t erms of offsetting the dumping practice. 
 
Q.2 Brazil is using both automatic and non automatic  licenses for imports.  Would Brazil share the 
justification for maintaining such trade restric ting measure and benefits ac cruing to its economy.  
Does Brazil (periodically) reviews the cost and benefits  of this scheme?  How does this measure 
compliment Brazil's otherwi se trade facilitative regime? 
 
ANSWER: 
  The Brazilian import licensing regime is not aimed at restricting imports. Non-automatic licenses are an instrument to integr ate different control requirements, imposed by 
different agencies, within a single electronic syst em for the processing of import documentation 
– the Integrated System of Foreign Trade (SIS COMEX). Each governmental agency in charge 
of imposing non-automatic import licensing re quirements derives its specific competence from 
law and/or international treaties. The website of  the Ministry of Development, Industry and 
Commerce (MDIC – www.desenvolvimento.gov.br) cont ains a list of those agencies, the legal 
basis for the controls imposed by them, and the justification for their implementation. 
 
 In order to minimize the impact of licen sing requirements on Brazilian imports, all 
governmental agencies involved in import contro ls are periodically required to review their 
licensing requirements and to reduce their contro ls to the minimum necessary, considering the 
principles of reasonability, proportionality, publ ic interest and efficiency. As an additional 
measure to minimize the impact of licensing on trade, Resolution CAMEX nº 70/2007 
introduced a new process whereby the merit and the legality of agencies’ demands for products 
to be subject to licensing are checked in order to avoid the occurrence of multiple authorizations 
and inspections, with a view to saving time and costs.  MALAYSIA 
 
3. The Brazilian Authorities confirm that reference prices are not used to determine the customs 
value of imported goods.  Does Brazil apply refere nce price to issue an import license for toys?   
 
ANSWER: 
 
 Brazil does not apply a "reference price" system.  In accordance with legislation notified to the Committee on Import Licensing, the 
granting of licenses to import toys is conditioned on the presentation of a certificate upon conclusion of conformity tests. This requireme nt applies to all of Brazil’s trading partners, 
without discrimination. 
 
  WT/TPR/M/212/Add.1 
 Page 223 
 
 
 2nd DAY REPLIES TO ADVANCE WRITTEN QUESTIONS 
 CHINA (THIRD BATCH) 
 
Report by Brazil IV. TRADE INSTITUTIONAL AND REGULATORY FRAMEWORK 
(2) CROSS-CUTTING ISSUES 
Paragraph 86 
 
Question 1 
 
 The Report referred to “better coordina tion and cooperation among different government 
border agencies”.  Are there any specific steps take n or plans to achieve “better coordination and 
cooperation”? If so, please specify. 
 
ANSWER: 
 
 Resolution nº 16 of March 20th 2008 created the Technical Group of Trade Facilitation 
(TGTF). The realization of periodic meetings of the TGTF, which include governmental agencies intervening in international trade, is th e key step taken by Brazil to foster coordination 
and cooperation among these agencies. In additi on, the TGTF has implemented, inter alia, 
specific measures aiming at improving coordinati on and cooperation, such as: reduction in the 
number of products subject to inspection for internal transit by ANVISA and IBAMA; 
comprehensive review of legislation and licensi ng requirements for each non-tariff control 
agency with a view to reduce duplication and increase efficiency; improvements to SISCOMEX in order to allow agencies to automatically a pprove less risky operations; and definition, 
development of criteria, and introduction of risk management tools for non-tariff control 
agencies into SISCOMEX.  
Question 2 
  The Report referred to ‘enhancement of the “Economic Authorized Operator” for traders 
with good compliance records with trade regulations”.   Are there any specific steps taken or plans to 
achieve this aim? If so, please specify.  
ANSWER: 
  Brazil is presently in the process of harmonizing risk assessment definitions among 
different agencies. In order to achieve this obj ective, each agency has been required to produce 
a list of criteria deemed relevant in their respective areas to assess the risk of international trade operations.   Simultaneously, Brazil is updating SISCOMEX in order to provide the system with the 
capability to process these harmoni zed risk assessment definitions. 
 
Paragraph 87 
 
Question 3 
 
 The Report referred to “reduction in the num ber of products subjected to inspection for 
internal transit by ANVISA and IBAMA”.  Could the Delegation of Brazil please provide a list of 
products no longer subject to such inspection, as referred to above? WT/TPR/M/212/Add.1 
Page 224  
 
 ANSWER: 
  With a view to simplify procedures and expedite trade flows, ANVISA and IBAMA no longer require that products under their control be inspected while in internal transit. The only 
exceptions are perishable products and/or pro ducts that require special conditions of storage. 
This measure also does not cover of course products that are prohibited to be in internal transit, 
of which narcotics are an example. 
 
Question 4 
 
 The Report referred to “nationwide evaluati on of the available workforce of all Brazilian 
government agencies operating at borders to optimi ze personnel to increase the flow of trade”.  
Could Brazil please share with us the findings of this evaluation? 
 
ANSWER: 
 
 Brazil is in the process of engaging a co nsultancy that will prepare a comprehensive 
survey of the workforce available for key govern mental agencies intervening in international 
trade. Once ordered, the survey will be comple ted in 120 days. Its primary objective is to 
identify quantitative and qualitative de ficiencies in the surveyed agencies. 
 
Report by the Secretariat  SUMMARY OBSERVATIONS III. TRADE POLICIES AND PRACTICES BY MEASURE (2) MEASURES DIRECTLLY AFFECTING IMPORTS  
Paragraph 13 
 Question 5   The Report referred to “imports whose value does not exceed US$3,000…”  Could the 
Delegation of Brazil please clarify whether the word “value” refers to the declared value of imports?  
 
ANSWER: 
  In principle, the value corresponds to the declared value of imports. According to specific circumstances, however, the import may be  subject to the substitute methods of customs 
valuation provided for in the Customs Valuation Agreement.  
IV. TRADE POLICIES BY SECTOR 
(6) SERVICES Paragraph 174 
 
Question 8   According to the Report, “value added services are not regarded as telecom services per se; 
providers of these services are considered to be ‘use rs of telecom services’”.  (1) Does the scope of 
services provided by these “users of telecom services” encompass those as considered to be value 
added services in other WTO Members?  (2) Does Br azil envisage introducing the regulatory regime 
of value added services in Brazil? 
  WT/TPR/M/212/Add.1 
 Page 225 
 
 
 ANSWER: 
  Value-added services are not defined as te lecommunication services according to the 
Brazilian legislation. Any value-added services th at perform equivalent to a regulated service 
shall be subject to the regulations applicable to the regulated service. The creation of specific 
regulation to value-added services is still under discussion.  
Paragraph 176 
 
Question 9 
 
 According to the Report, “the authorities note that ANATEL plans to issue regulations to authorize the resale of telecom services”.  Could the Delegation of Brazil indicate whether the regulation will be issued?  How can a WTO Member get a copy of the regulation? 
 
ANSWER:   ANATEL recently approved the General Plan for Telecommunication Regulation Updates in Brazil (PGR), which presents actions to be promoted in the next ten years, aiming to 
update telecommunication regulations in Brazil.  As established in PGR, ANATEL will have to 
issue regulation on resale of telecom services in order to authorize it in the next two years. 
 
Other Questions  
 
Question 10 
 
 Could the Delegation of Brazil specify the procedure of granting a compulsory license on 
patents? 
 
ANSWER: 
  Brazil has made use of compulsory licensing  only once. In 2007, the Government of 
Brazil decided to compulsory license the pate nt of EFAVIRENZ, which is the most-consumed 
anti-retroviral (ARV) in Brazil, with a clear growth trend. In Brazil, the use of “efavirenz” increased from 2,500 patients in 1999 to 75,000 patien ts in 2007 (38% of patients with AIDS). 
  Considering its importance to Brazil’s Pub lic Health Policy consummation and its 
growing budgetary impact, the Government of Br azil commenced fair and transparent price 
negotiations with Merck & Co., Inc, who holds “efavirenz’s” patent in Brazil. Negotiations lasted for three years, during which Merck Sha rp & Dohme (MSD) did not show flexibility to 
reduce the price. In 2006 and 2007, the Brazilian Government had many negotiations meetings 
with the representatives of the company. In sp ite of these meetings, the company made five 
formal statements indicating its firm intent ion to not decrease the price of efavirenz 600mg 
below 2%. 
  In light of the prices practiced by Merck for this product in third markets, the Government of Brazil asked Merck to make a price offer consistent with the growing 
consumption of efavirenz in Brazil and with the prices practiced by the company in third 
countries. However, the company remained in flexible. Merck’s proposal was considered 
insufficient and unsustainable in light of th e growing costs successful National STD/AIDS 
Program.  WT/TPR/M/212/Add.1 
Page 226  
 
  On April 25th, 2007, the Brazilian Government issued Decree No. 886 of July 24
th, 2007, 
by which efavirenz was formally recognized as a medicine of public interest for the purpose of 
granting a compulsory license for non-commercial  public use. The company owner of the patent 
rights was informed of this decision on April 24th, 2007, and was offered a renewed chance to submit a proposal of price reduction within a seven-day period. In this period, the company 
presented a proposal far below the expectations of the Government of Brazil. 
  The Government of Brazil had not option  rather than continuing the compulsory 
licensing process. On May 4, 2007, Presidentia l Decree 6, 108 compulsorily licensed efavirenz’s 
patent for non-commercial use ba sed on public interest, thereby guaranteeing the viability of 
the National Program on STD/AIDS. 
  EFAVIRENZ has been imported by means of  multilateral international organizations 
UNICEF and PAHO, which had been recognized as  world producers of efavirenz and had been 
pre-qualified by the World Health Organization. Two laboratories from India were selected: the 
Ranbaxy and Aurobindo. 
  The final cost of the product delivered  by the Indian companies through such 
international bodies, including freight and royalties, is $ 0.4594 for EFAVIRENZ 600 mg and $ 0.2173 for 200 mg. This accounts for an annua l reduction of approximately 30 millions US 
dollars in the expenditure with this medicine. 
 
 The compulsory license issued correctly est ablished a remuneration for the company at 
1.5%.   The Government of Brazil implemented EF AVIRENZ compulsory license in absolute 
transparency and demonstrated, throughout the process, a firm willingness to achieve a mutual 
understanding with the patent owner. The compulso ry license was done absolutely in line with 
the TRIPS Agreement, the Doha Ministerial De claration on TRIPS and Public Health and 
national legislation. 
 
Question 11 
 
 How long does it take Brazil to grant a patent on average? Is there any plan to speed up the examination process?  
 
ANSWER: 
 
 Brazil’s patent office has set the objective of reducing the average pendecy for patent 
applications to 4 years by 2014. In 2009, we  expect average pendency will start to decrease. 
  INPI is undergoing a modernization and restructuring process. The outline of this restructuring program is as follows: 
 
(I) Increase in the examination ca pacity and examination quality  
 a) Number of examiners (2008/2004): 443/112  b) Education and training of examiners:  
 
-Requirement of Master Degree  -Full EPO training program (24 months) -Supplementary training in more complex fields   WT/TPR/M/212/Add.1 
 Page 227 
 
 
 (II) Process streamlining  
 a) EPOQUE and full PCT-required documentation available on-line for examiners b) Complete and detailed examination guidelines (under preparation) c) Quality control and independent administrati ve revision (in place as from January 2009) 
 
(III)  Backlog reduction   - Applications filed till Dec 2004 – first examination till Oct 2011 
- Applications filed as fr om 2010 – 4 years from filing 
 
Question 13 
  According to Brazil’s 1997 telecom legislati on, telecom service providers are put into two 
categories: those owned by the public sector and  those owned by the private sector. Could the 
Delegation of Brazil please specify the criteria of such categorization and the difference between their 
regulatory regimes? Has Brazil notified the abovementi oned legislation to the WTO? If so, please 
indicate the document reference number of the notific ation; if not, could Brazil please provide a copy 
of the legislation in English? 
 
ANSWER: 
 
 The distinction between public and private sector telephone company does not apply since the privatization of the telecom system in 1998. All service suppliers in order to supply a 
telecommunication service in Brazil need to obta in a license from the regulatory agency Anatel. 
Licenses shall be granted only to suppliers duly constituted according to the Brazilian 
legislation, regardless of the origin of capital, which requires head office and management 
located in the Brazilian territory, and ownership of  the majority of the voting shares by natural 
persons resident  in Brazil or companies duly co nstituted according to the Brazilian legislation, 
which requires head office and manageme nt located in the Brazilian territory. 
  Brazil did not notify the legislation to the WTO since Brazil does not have Telecom 
commitments in the GATS. The legislation is available at http://www.planalto.gov.br/ccivil_03/ 
Leis/L9472.htm.  Question 15  
 It would be appreciated if the Delegation of Brazil could provide information on small-and-
medium-sized enterprises (SMEs), including:  (1) detailed information con cerning developments of 
SMEs since 2007;  (2) policies and measures taken to assist SMEs since 2007, including those to assist SMEs in financing;  (3) a copy of The Micro and Small Business General Law, preferably in English. 
 
ANSWER:   (1) For Brazil, Small and Medium-Sized En terprises (SMEs) are a core instrument to 
promote a dynamic, innovative and growth-orien ted economy. Figures show that SMEs account 
for roughly 55% of employment within the co untry, and represent almost 99% of the formal 
enterprises in operation. Besides, they respond to  more than 50% of the exporting companies.  
  The Brazilian Government has not finish ed the compilation of data from 2008. 
However, between 2006 and 2007, the available figures show that exports of SMEs have increased 25.4%, achieving the total amount of USD 3 billion.  WT/TPR/M/212/Add.1 
Page 228  
 
  (2) Since 2007, the government has redu ced red tape and implemented sustainable 
strategies for the SME development. Some of the actions taken include the creation of the “Simples”, a system to unify and simplify tax collection from SMEs; the facilitation of the 
registration of SMEs; the promotion of access to technology; and the signature of a Protocol of Intentions by the Ministry of Justice to facilit ate access to justice. Additionally, in 2008, the 
Complementary Law n. 128 came into force, allo wing the consortia of SMEs to operate as 
juridical persons, and providing further st imulus for the formalization of the SMEs. 
  (3) The Complementary Law n. 123/06 is not available in English, but a version in 
Portuguese can be found at: www.planalto.gov.br/ccivil_03/leis/LCP/lcp123.htm . 
 
MEXICO (SEVENTH BATCH)  
 
III.  POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS (1) Panorama General/i)  
Procedimientos aduaneros y documentación    
 
 En el párrafo 5 se menciona que Bras il ha seguido adoptando medidas graduales para 
simplificar u modernizar sus procedimientos adu aneros y documentación. M éxico desearía saber 
porque la autoridad brasileña obliga a emitir un “Bill of Lading (BL) ” - conocimiento de embarque - 
para cada 3 contenedores, independientemente del número de contenedores enviados en el mismo 
embarque, generando costos adminis trativos adicionales, ya que se pude permitir relacionar en un 
solo BL el número de contenedores embarcados en el mismo buque. 
 ANSWER:   Brazilian border agencies consider this proced ure necessary to the proper and effective 
performance of their activities, in particular regarding the prevention of frauds.  
 No obstante que los números de identificación veh icular (NIV) de los vehículos exportados se 
relacionan en la factura, la aut oridad brasileña requiere que esos mi smos números se listen en el BL 
generando duplicidad de actividad es e información, aumentando el riesgo de errores de lectura o 
captura al momento de copiar manualme nte los números de la factura al BL. 
 
ANSWER: 
  Brazil considers this requirement necessary  to allow appropriate monitoring of 
automobile exports, while not adding a signif icant burden to governmental agents and private 
operators. 
 (NINETH BATCH) 
 
Párrafo 343  
 
 La Ley Nº 10.196, de 16 de febrero de 2001, modificó la Ley Nº 9.279, de 1996, entre otras 
cosas, con respecto a los procedimientos para la patentabilidad de los produ ctos farmacéuticos. La 
concesión de patentes para los productos o pro cesos farmacéuticos ha de recibir la aprobación 
previa de la Agencia de Vigilancia Sanitaria del Brasil (ANVISA). El Brasil ratificó la Decisión del 
Consejo General de la OMC sobre la aplicación del párrafo 6 de la Declaración de Doha relativa al 
Acuerdo sobre los ADPIC y la Salud Pública el 13 de noviembre de 2007. (énfasis nuestro) 
  México desea saber cuál es el motivo por el  cual se requiere de la aprobación de una entidad 
de vigilancia sanitaria, dentro del tr ámite de estudio de solicitud de patente.  
  WT/TPR/M/212/Add.1 
 Page 229 
 
 
 ANSWER: 
  Law 10,196/01 introduced the rule of  “prior consent”, whereby patents for 
pharmaceutical products and processes may be gr anted only after ANVISA’s prior examination 
and approval.  Approval is granted or denied after the evaluation of the application, taking into 
account the patentability requirements provided for in the TRIPS Agreement. 
 
 The granting of pharmaceutical patents with th e participation of the ANVISA is part of 
a complex administrative act of the Executive br anch, which relies on the combined expertises 
of ANVISA and INPI. One should bear in mind that pharmaceutical products were not 
patentable in Brazil before the Industria l Property Act of 1996 (Law 9,279/96).  
  ANVISA relies on a specialized and experien ced technical staff, to carry out   its 
examination. The examination is carried out in full compliance with the Industrial Property 
Act, and the Agreement on trade-related aspects of intellectual property rights (TRIPS). Thus, 
ANVISA’s examination focuses on the three patent ability criteria, provided for in the TRIPS 
Agreement as well as in the Brazilian legislation,  which are, as already pointed out: novelty, 
inventive step and industrial application.              Needless to say, the TRIPS Agreement, in Ar ticle 1.1, provides that “Members shall be 
free to determine the appropriate method of implementing the provisions of this Agreement 
within their own legal system and practice”.  
INDIA  
 
QUESTION 17. PARA 36. 
 
 Brazil has made a large number of notifications  to the WTO but certain notifications have not 
yet been made (September 2008), for instance unde r the Agreement on Agriculture.  Could Brazil 
elaborate on delay in making these notifications? 
 
ANSWER: 
 
 Brazil has already circulated its pending no tifications on Export Subsidies and Market 
Access for the years 2002 to 2007. The Secretaria t is finalizing their formating in order to 
distribute to Members.   
 The Brazilian Government is finalizing the compilation of information regarding 
notifications on domestic support for the years 2005, 2006 and 2007.  Brazil intends to circulate 
them by the end of the first semester of 2009. 
 
SWITZERLAND 
 
Manufacturing 
 
 In para. 106, the Secretariat's report states t hat Brazil's Productive Development Policy as an 
enhancement to the Industrial, Technological and Foreign Trade Policy (PITCE) will encompass 
measures to reduce the cost of credit, simplify export and import procedures, and grant new tax 
exemptions. Could the Brazilian authorities indicate which branches of the manufacturing sector will 
have access to these measures? Also , will foreign companies be eligible for these programs and if yes, 
at what conditions?   
 
 WT/TPR/M/212/Add.1 
Page 230  
 
 ANSWER: 
  The Productive Development Policy (PDP) enco mpasses a wide range of sectors, since it 
is primarily policy-oriented. The measures incl ude infrastructure development for exports and 
imports, simplification of administrative procedures for trade, support for R&D projects, 
among other policies. Small and medium sized companies, for instance, will benefit of an 
expanded budget of the “PROEX” program for their particular needs. All companies established in Brazil have the status of Brazilia n companies and are therefore eligible under the 
same conditions of all other Brazilian companies.  
 
NEW ZEALAND  
 
2. Average applied tariff for dairy products and misc. manufacturing (WT/TPR/S/212, pp. 32-
34, paras 42- 46) 
 
 The Secretariat’s report notes that the aver age applied agricultural tariff in January 2008 
was 11.5%, lower than the 11.7% tariff for non- agricultural goods (page 43, paragraph 38).  
Table III.1 (page 32-33), however, r eveals that applied tariffs for dairy products were significantly 
higher than this average, at 18.8%.  And the app lied average for miscellaneous manufacturing is 
17.8%.  
 Brazil exports around 4-5% of its dairy producti on, with exports expected to increase in the 
future.  In light of that fact, it would be app reciated if Brazil could provide a rationale for the 
relatively high tariff on dairy products, and outline how it plans to bring this tariff into line with other 
agricultural products. 
 
ANSWER:   The structure of the MERCOSUR’s Common External Tariff establishes different tariff 
levels according the grade of added value contained in the good and defines that the highest tariff would be 20% with differences of two percent among them.  
 Therefore, the evaluation of matters re garding tariff escalation within the 
MERCOSUR’s CET should take into consideration  the fact that a number of tariff headings 
referred to goods placed at the primary stage of certain productive chains are rated 0%, while goods placed in further stages have tariff protectio n, in a level determined by the structure of 
the CET. 
 
 MERCOSUL members agreed that raw agriculture products would have a tariff of 10%, regardless of the degree of competitiveness of  the sector comparing to other countries.  A 
tariff of 10% was thus established both for wheat and rice, traditionally imported products, and 
for soybeans and coffee, two important exported products.  
 The rationale used to define tariffs for raw and processed agriculture products was to 
add two percent points at each step of the production chain.  Above that, however, considering the existence of huge amounts of subsidies in the international market for some agricultural 
products, the importance of these products for the rural development of expressive number of small family farmers and, the po ssibility to take advantage of CET – List of Exceptions, Brazil 
has raised temporarily since 1996 the tariffs for some those pro ducts, such as dairy products, 
processed peach and wine. It is important to note that, at the time of those definitions, Brazil was not a significant exporter of dairy products. 
  WT/TPR/M/212/Add.1 
 Page 231 
 
 
  As long as the subsidies for dairy products  in the international market remain, Brazil 
has no plans to bring this tariff into  line with other agricultural products. 
 
UNITED STATES  
 
 Page 143, Paragraph 245:  In  paragraph 245, the Secretariat notes that, “Foreign architects 
and engineers may work in Brazil only after provi ng that there are no Brazilian professionals capable 
of carrying out the work.”  What is the process for enacting this standard?  What are the criteria for 
establishing that a Brazilian architect is capable of meeting the design/aesthetic demands of a 
Brazilian customer? 
 
ANSWER: 
  The referred process is described in deta il by the CONFEA Resolution n. 1007/2003, 
available at http://normativos.c onfea.org.br/downloads/1007-03.pdf , which requires that such 
professionals apply for registration at the “Conselho Regional de Engenharia, Arquitetura e 
Agronomia” (CREA), entity responsible for evalua ting the applications, including, among work-
related documents, diplomas and university records.     The curricula of Architecture graduate courses approved by the Ministry of Education and registered at the CONFEA/CRE A system cover all the requirements for a 
professional in the area to meet the design/aesthetic demands of a Brazilian customer.  
 
JAPAN  
 
(iii) Export prohibitions, restrictions , and licensing (p. 60-61, para 190) 
 
Q18. Has Brazil implemented any food export restri ction measures since the sharp increase in food 
prices in 2007? 
 
ANSWER: 
 
 As mentioned in the report of the Secretariat, Brazilian legislation allows for the 
application of export taxes, in principle to all pr oducts. In fact, they are applied to very few and 
specific cases, which are displayed on Table III.5 of the report of the Secretariat. Therefore, not 
applying export taxes would be the usual situat ion. In the case of coffee, “Decreto-Lei 2.295, 21 
november 1986” establishes an exemption from eventual export taxes. In the case of sugar, 
alcohol and derived molasses “Lei 9.362, 13 D ecember 1996” allows for the exemption from 
eventual export taxes. 
 
ECUADOR (SECOND BATCH) 
 
v)  Otras cargas que afectan a las importaciones 
 
 En los párrafos 64 y 67 se indica que además de los aranceles, se aplican a las importaciones 
los siguientes impuestos internos: el impuesto s obre los productos industriales (IPI);  el impuesto 
sobre la circulación de mercancías y la prest ación de servicios interestatales de transporte y 
comunicaciones (ICMS);  y las contribuciones al  Programa de Integración Social (PIS) y a la 
financiación de la seguridad social (COFINS). De manera particular se señala que el ICMS es un 
impuesto sobre el valor añadido aplicado por los Estados federales del Brasil a todas las 
transacciones de mercancías que tienen lugar en el país (tanto intraestatales como interestatales) y a 
las importaciones. No obstante, se indica que la legislación confiere a los estados brasileños el 
derecho a definir lo que se incluye en "otras cargas aduaneras".  Los estados no han acordado una WT/TPR/M/212/Add.1 
Page 232  
 
 definición común, por lo que, según el estado, esas cargas pueden o no incluir impuestos específicos 
sobre el transporte, derechos del SISCOMEX, pos ibles derechos antidumping, y tarifas de los 
servicios portuarios.  3.  ¿Cuál son las consideraciones que dicho país ut iliza para la aplicación de  dichos impuestos y si 
éstos se aplican por igual a los bi enes nacionales iguales o similares? 
 
ANSWER: 
  IPI, PIS and COFINS are federal taxes that are applied in all nation territory in the 
same conditions. The ICMS falls under the comp etence of States. Each State determines the 
duty and how it is applied. Regarding the inclusion of  "other tax or customs costs" in the ICMS tax base, it is granted for States the right to define the customs costs that will integrate the tax base of ICMS, as established in article 13 of Supplementary Law No. 87, of 13 September 1996.  
 
 The Tax Reform Bill, presented by the Fede ral Government, is aimed at reducing the 
complexity of the ICMS legislation. All these t axes are equally applied to foreign and domestic 
goods. 
 
CUESTIONES COMERCIALES  
 
Normativa No. 39 de 4 de noviembre de 1999   La Normativa No. 39 de 4 de noviembre de 1999 (ver anexo) suspende temporalmente la 
entrada al territorio nacional de todas las especies de crustáceos, de agua dulce o salada, en cualquier etapa o ciclo biológico, inclusive sus productos frescos o congelados, así como cocidos, 
sean enteros, sus caparazón o parte de ella, de cualquier procedencia”.  
 6.  ¿Podría proporcionar mayor detalle acerca de la  aplicación de esta medida y su fundamentación 
en la normativa de la OMC?  7.  ¿Existe la intención por parte de las autorid ades brasileñas de revisar esta normativa, la cual está 
vigente desde hace aproximadamente 10 años?  
ANSWER: 
  The IN 39 requires that the mentioned pro ducts from any country have to undergo a 
risk analysis for the white spot and the yello w head diseases. The government of the country 
intending to export to Brazil has to request a ri sk analysis to the sanitary authorities. The 
analysis will be conducted on the basis of in formation provided by the authorities of the 
exporting country and the available scientific in formation. The measure is therefore totally 
compatible to the SPS agreement. 
 
NORWAY  
 
 Para. 221 describes the system on freight tax.  It seems that imports are disadvantaged in 
comparison to export and domestic trade. Could Brazil elaborate on how the freight tax is collected 
and how large the annual revenues for this tax are? 
 
ANSWER: 
  The fees of the AFRMM are 25 % for long co urse, 10% for cabotage, and 40% for lake 
and river navigation. They are differentiated in order to take account of the different economic  WT/TPR/M/212/Add.1 
 Page 233 
 
 
 situation and market structure of the two sectors.  The funds are collected to the Merchant 
Maritime Fund (FMM). The Fund finances the construction and repair of Brazilian vessels.  
 
 According to para. 222 the funds collected from  the freight tax are u sed for the financing of 
vessels. We would like to learn more about the dist ribution of these funds, and who is eligible to 
receive such funding. Is the schem e reserved for construction and repair of Brazilian registered 
vessels? With reference to para. 223 we would also  ask Brazil to explain the notions PIS and CFINS 
taxes, and the annual amounts involved to the benefit of the Brazilian shipping industry.  
 
ANSWER: 
 
 The scheme is reserved for constructi on and repair of Brazilian vessels.  
  Any foreign vessel imported is subject to the following taxes and contributions: 
 • ICMS(State tax)– 18% 
 • TEC (Import tarif) – 14% 
 • PIS/Cofins (Federal contribution) – 1,65% / 7,6%  • IPI (Federal tax) – 10%   Those taxes and contribution are levied a ccording to national treatment principle. 
 AUSTRALI A 
 
(iv) Tariffs 
 
5. The Secretariat’s Report notes that that Braz il’s average tariff for agricultural products is 
10.1 per cent (Table III.2 on page 34).  We note that some product groups have a higher level of tariff 
protection for some products such as dairy and beverages and spirits.  These product groups have 
average tariffs of 18.8 per cent and 17.7 per cent re spectively.  Would Brazil provide its rationale why 
these commodities are subject to nearly double the average tariff rate? 
 
ANSWER: 
 
 The structure of the MERCOSUR’s Common External Tariff establishes different tariff 
levels according the grade of added value contained in the good and defines that the highest tariff would be 20% with differences of two percent among them.  
 Therefore, the evaluation of matters re garding tariff escalation within the 
MERCOSUR’s CET should take into consideration  the fact that a number of tariff headings 
referred to goods placed at the primary stage of certain productive chains are rated 0%, while goods placed in further stages have tariff protectio n, in a level determined by the structure of 
the CET.  
 MERCOSUL members agreed that raw agriculture products would have a tariff of 
10%, regardless of the degree of competitiveness of  the sector comparing to other countries.  A 
tariff of 10% was thus established both for wheat and rice, traditionally imported products, and 
for soybeans and coffee, two important exported products.  
 The rationale used to define tariffs for raw and processed agriculture products was to 
add two percent points at each step of the production chain.  Above that, however, considering the existence of huge amounts of subsidies in the international market for some agricultural 
products, the importance of these products for the rural development of expressive number of small family farmers and, the po ssibility to take advantage of CET – List of Exceptions, Brazil WT/TPR/M/212/Add.1 
Page 234  
 
 has raised temporarily since 1996 the tariffs for some those pro ducts, such as dairy products, 
processed peach and wine. It is important to note that, at the time of those definitions, Brazil was not a significant exporter of dairy products.  COLOMBIA  
 
Numeral 185: Impuesto a las exportaciones  
 
 Cuáles son las razones por las cuales se rea lizan exportaciones exentas de impuesto a las 
exportaciones según el punto de destino[1] en el caso  de  las exportaciones de café, azúcar, alcohol y 
productos conexos? Cuál es la norma de la OM C mediante la cual se justifican tales exenciones. 
 
ANSWER: 
  As mentioned in the report of the Secretariat, Brazilian legislation allows for the 
application of export taxes, in principle to all pr oducts. In fact, they are applied to very few and 
specific cases, which are displayed on Table III.5 of the report of the Secretariat. Therefore, not 
applying export taxes would be the usual situat ion. In the case of coffee, “Decreto-Lei 2.295, 21 
november 1986” establishes an exemption from eventual export taxes. In the case of sugar, alcohol and derived molasses “Lei 9.362, 13 D ecember 1996” allows for the exemption from 
eventual export taxes.  
 
CANADA 
 
Part IV. Trade Policies by Sector: (4) Energy: paragraph 73, page 112:  
 
 The Secretariat report describes Brazil’s re quirements for domestic content and minimum 
local content requirements in the Energy sector.     55. What steps has Brazil taken to ensure that  these provisions are consistent with its WTO 
obligations? 
 
ANSWER:   No “a priori” inconsistencies with WT O obligations have been identified.  
 
 56. Could Brazil please provide its rationale for restricting foreign direct investment in the 
energy sector?  
ANSWER: 
  There are no restrictions to foreign trade investment in the energy sector, with the 
exception of nuclear energy and hydraulic power generation, on the basis of national security 
considerations.   
EUROPEAN COMMUNITIES  
 WTO Secretariat’s Report, page 45, para. 107  
 
 The importation of retreaded tyres from all sources, except MERCOSUR members, is subject 
to non-automatic licences, but by law such li cences may not be granted.  This measure was 
challenged by the EC under the WTO dispute se ttlement mechanism in November 2005.  The Panel 
and Appellate Body Reports concluded, inter alia, th at the exemptions from the import ban granted to  WT/TPR/M/212/Add.1 
 Page 235 
 
 
 retreaded tyres from MERCOSUR, as well as imports of used tyres by local retreaders through court 
injunctions constituted arbitrary or unjustifiable discrimination, and were, therefore, inconsistent 
with the GATT Agreement.   Following consultations with Brazil, the EC requested that the period of 
time in which Brazil had to implement the decision be determined through ar bitration.  In August 
2008, the arbitrator determined that Brazil had to  implement the recommenda tions by 17 December 
2008. 
  Brazil has failed to meet the deadline set by the arbitrator. According to the Appellate Body 
ruling, Brazil must withdraw the WTO-inconsistent  import prohibition on retreaded tyres. Instead, 
Brazil operates tariff-rate quotas for retreaded tyres from Paraguay and Urug uay while maintaining 
the prohibition for other WTO Members.  
 4. When is Brazil going to implement the WTO ruling? 
 5. Is Brazil planning to eliminate the quotas for Paraguay and Uruguay?  6. Are there any plans for a general regime at Mercosur level? 
 
ANSWER:  
  The Panel Report, as modified by the Appella te Body Report, on the Brazil – Retreaded 
Tyres dispute acknowledged that the Brazilian import  ban is justified by the exception of GATT 
Article XX(b) on environmental and public health grounds, but failed to comply with the caput  
of that article due to imports of used tyres th rough court injunctions and imports of retreaded 
tyres from MERCOSUR. Therefore, Brazil is pursuing compliance by remedying the measures found inconsistent, basically (i) by eliminating im ports based on court injunctions; and (ii) by 
negotiating a MERCOSUR-wide tyre regime.  
 
 Brazil is taking all necessary steps to comp ly with DSB recommendations as speedily as 
possible, and progress has been made in both aspects. Regarding the court injunctions, the 
Supreme Court proceedings initiated by the Br azilian government are about to reach their 
conclusion, with the judgment already scheduled  to occur in March 2009. Negotiations are also 
in progress concerning the MERCOSUR issue, whic h has been discussed in several instances, 
and therefore Brazil expects to achieve full compliance of DSB recommendations shortly.  
 
 In paragraph 265 of the WTO Secretariat's repor t, it is mentioned that Brazil intends to 
equalise the conditions for Brazilian and foreign  international air transport operators.  
  In relation to remittance and currency conversi on airlines have to have a license before 
they can convert locally earned revenue into other currencies. The license is given on a monthly 
basis, and therefore causes delay in the remittanc e and conversion. Since many costs (including 
fuel and airport charges) in Brazil have to be paid in US dollars, the restriction and the delay of conversion puts financial pressure on foreign airlines.  
 
(5) Manufacturing 
WTO Secretariat’s Report, page 118, para. 106   
 Among the activities to which new tax exemp tions worth circa USD3.3 billion are being 
granted, there are activities where Brazil is c onsidered by an OECD study to have a revealed 
comparative advantage (e.g. the production of non- metallic products, machinery and equipment, and 
motor vehicles).  Could Brazil exp lain the reasons behind these ta x exemptions, and whether a phase-
out is scheduled? 
 WT/TPR/M/212/Add.1 
Page 236  
 
 ANSWER: 
 
 These tax measures that are part of the Productive Development Policy (PDP) aim at 
mitigating the distortions of the national tax system, which affects every sector of the economy, while the Tax Reform Bill, that will simplify the tributary regime is under discussion in the 
Congress. 
  Brazil would like to emphasize that the majori ty of the tax measures referred to as new 
tax exemptions in paragraph 106 do not consis t a tax exemption. These measures amount to 
6.746 million of reais for 2008-2010. The figures pr esented by the Secretariat were calculated in 
accordance with the Fiscal Responsibility La w, for the purposes of the fiscal budget for 2008-
2010. In many cases that calculation does not refl ect tax revenue forgone. For example, this 
estimated amount includes some measures related to accelerated depreciation. In this case, the 
value informed represents the total income tax that will not be collected during the period. 
However, the accelerated depreciation exclude d from the income tax base during 2008-2010 has 
to be included in the income tax base in the next years. Hence, the tax incentive is much smaller 
than the figures presented in the report. 
 
 101. Could Brazil clarify if Brazilian airlines are covered by identical restrictions?   
 
ANSWER: 
 
 In order to make profit remittances, forei gn companies are required to register only 
once with the Central Bank and declare at each rem ittance that the origin of the profits is the 
selling of tickets. There is no restriction on the remittances.  
 
(d) Architectural and engineering services WTO Secretariat’s Report, page 143, para.  245  
 
 Federal Law 5194/66, art.2 stipulates rules t hat foreign architects may establish in Brazil, 
but they need to be registered in  a temporary register and that they can only be contracted provided 
that they work with a Brazilian assistant.  
 
 121. Does Brazil intend to maintain this restriction? 
 
ANSWER: 
 
 Change in the legislation is not under consideration.  
(SECOND BATCH) 
 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)  MEASURES DIRECTLY AFFECTING IMPORTS 
(v) Other charges affecting imports 
WTO Secretariat’s Report, page 37, para. 64 
 
 To determine tax liability in each jurisdicti on, the arm's length principle following the OECD 
transfer pricing guidelines is most commonly app lied. The OECD transfer pricing guidelines were 
first issued in 1979 and have become internati onally respected as a principle to avoid double 
taxation. Although the Brazilian rules were inspir ed by the OECD guidelines, local statutes adopt 
criteria and restrictions that are not compa tible with the arm’s length principle.  
  WT/TPR/M/212/Add.1 
 Page 237 
 
 
  It is in the interest of the smooth functioni ng of the markets that intragroup trading activity is 
governed by the same inter national rules.  Otherwise, it would resu lt in double taxation.  Could Brazil 
indicate the steps currently underta ken in order to gradually apply the arm's length principle, as 
recommended in the OECD transfer pricing guidelines?  
ANSWER: 
  Brazil is not a member of the OECD. The Brazilian transfer pricing legislation responds to the specific situation of the economy, given its correspondent level of presence of multinational companies due to sustained FDI inflows.  
 
 In paragraph 265 of the WTO Secretariat's repor t, it is mentioned that Brazil intends to 
equalise the conditions for Brazilian and forei gn international air transport operators.  
 
 In relation to remittance and currency con version airlines have to have a license before they 
can convert locally earned revenue into other currencies. The license is  given on a monthly basis, and 
therefore causes delay in the remittance and conversion. Since many costs (including fuel and airport 
charges) in Brazil have to be paid in US dollars,  the restriction and the delay of conversion puts 
financial pressure on foreign airlines.  
 
 101. Could Brazil clarify if Brazilian airlines are covered by identical restrictions?   
 
ANSWER: 
  Both national and foreign companies are on ly required to register with the central bank 
once in order to be able to effectuate remittances and payments abroad. 
 
GUATEMALA  
 
III. Políticas y Prácticas Comerciales, por medidas  
3. Medidas que afectan directamente a las exportaciones, b) Programa BNDES-EXIM, página 75 
 
 El informe de la Secretaría indica que el programa BNDES-EXIM, administrado por el 
Banco Nacional de Desarrollo Económico y Social (BNDES) concede créditos a la exportación para 
los productos que figuran en la Circular No. 31/2007 del BNDES de 30 de julio del 2007. La financiación se concede automáticamente respecto de los productos cuyo contenido nacional tenga 
un valor al 60% como mínimo del valor tota l del producto; los productos que no satisfagan esa 
condición también pueden benefic iarse del programa si super an un proceso no automático de 
análisis.  ¿Podría Brasil explicar la motivación/ fu ndamento para la aplicación de esta condición (i.e. 
contenido nacional)?  ¿En qué consiste el  “p roceso no automático de análisis” y qué requisitos 
deben satisfacerse bajo el mismo? ¿Podría Brasil exp licar los criterios para la selección de los 
productos contenidos en la Circular No. 31/2007? 
 
ANSWER: 
  As correctly noticed in the Secretariat`s TPR report, products with a domestic content, 
in value terms, of at least 60% are automatically eligible for financing, and products that do not 
reach a 60% local content threshold may also benefit from the programme subject to a non-
automatic analysis procedure. Thus, the elig ibility for financing under BNDES-Exim is not 
contingent, neither in law nor in fa ct, on local content requirements. 
   WT/TPR/M/212/Add.1 
Page 238  
 
  Domestic content is one element among the financial criteria under which the applicable 
analytical procedures are defined (e.g. total term , grace period, participation level). The main 
reason for the Automatic process is  to speed up the assessment of the operations complying with 
those criteria by the private banks that ma nage directly BNDES-Exim credit lines.  
 
 The Non-automatic process is undertaken by the BNDES Eligibility Committee taking 
into account several variables of th e transaction on a case by case basis. In its analysis, BNDES 
takes into account mainly the feasibility of the project/transaction, its relevance to the 
governmental policies and the availability of risk mitigation schemes.   
 Eligible products are mainly manufactured goods which demand financing to be 
commercialized. Commodities in  general are excluded due to the availability of private 
mechanisms to support these exports.    Having said that, it is important to no te that BNDES does not provide any kind of 
subsidy through its export financing, insurance and guarantees, as its financial costs are fully 
covered, at interest rates compatible with tho se of the international market.  BNDES acts, 
therefore, fully in compliance with the provision s set forth in the WTO Agreement on Subsidies 
and Countervailing Measures.  
 
PERU  
 
III; 1); 1. 
 
 Del 2004 al 2008 se ha producido un aumento del arancel MNF en 1,1%. Al respecto, el Perú 
desea saber cuáles han sido las partidas que han au mentado más y la razón de este incremento.  El 
Perú desea saber en mayor detalle en qué consis ten los cuatro impuestos internos acumulativos 
aplicados también a las importaciones. 
 
ANSWER: 
  The simple average increase does not reflect Brazil’s general trade policy, since it is 
related to changes in the tariff profiles of a fe w sectors. Those applied tariffs are related to 
particularly sensitive sectors, as they are mo stly labour-intensive (textiles, clothing and 
footwear). Analysis of import flows for the sa me sectors reveals an accelerated growth of 
imports for that period, including the lines for which applied tariffs are higher. The related 
imports for textile and clothing, for instance,  increased by 178% over the period 2004-2008 
(from US$ 1,49 billion in 2004 to US$ 1,64 billion em 2005; US$ 2,29 billions in 2006; US$ 3,23 
billions in 2007; US$ 4,16 billions in 2008). The modal tariffs are lower than some developed countries’ peaks for the same sectors. With re gard to chemicals, there were limited topic 
increases in tariffs: the modal tariff is only 2%  and the average applied tariff is around 7%. 
  The four internal indirect taxes are: the state tax levied on circulation of merchandise 
and on the supply of interstate transportation and communication services (ICMS), the federal 
tax levied on industrialised product (IPI) and th e federal indirect taxes PIS and COFINS levied 
on goods and services. 
 
III: 2); i); 10 
 
 ¿Por qué razón sólo los ciudadanos brasile ños pueden actuar co mo agentes de aduanas? 
  WT/TPR/M/212/Add.1 
 Page 239 
 
 
 ANSWER: 
  The engagement of customs brokers is not mandatory for international trade operations in Brazil. According to article 808 of the Dec ree nº 6.759/20009,  the importer, the exporter or 
any interested party may be represented, for customs clearence purposes, by any director or 
employee working exclusively for the interested part y, as long as properly authorized in writing.  
 
 The activities of customs brokers are regulat ed, in Brazil, by the Decree nº 646 of 1992. 
Considered a sensitive activity, customs br okering is reserved for Brazilian nationals. 
 
KOREA 
 
 On January 26, 2009, Brazil implemented a pre-import licensing requirement which would 
have applied to 60~70 percent of all imported goods. However, in light of the concerns expressed by 
importers and foreign governments, Brazil abandoned th e policy within two days. Although repealed, 
this type of measure creates uncertainty surr ounding the Brazilian market; concerns about whether 
similar measures of a protectionist nature might be adopted in the future.  Could Brazil confirm that 
any such measures of a protectionist meas ure will not be introduced in the future? 
 
ANSWER: 
 
 There are no plans to reintroduce the above mentioned measures.  
THAILAND  
 
2. Presently, Brazil’s regulations require that impor t documents be translate d into Portuguese, which 
represents an additional burden for importers, both in terms of extra translation time and cost. We 
would like to enquire whether Brazil is considering allo wing English to be used for this purpose, as it 
would help facilitate trade and re duce unnecessary burden to traders. 
 
ANSWER: 
 
 Article 13 of the Federal Constitution of Brazil establishes that Portuguese is the official 
language of Brazil. Due to this constitutional rule, official documents processed by Brazilian governmental authorities are required to be s ubmitted in Portuguese. Allowing official 
documents to be submitted in other languages is not under consideration. 
 
4. It is mentioned in paragraph 341 of the Secret ariat Report that in May 2007, Brazil issued a 
Decree allowing for compulsory licensing of an ant i-HIV drug (Efavirenz). We would like Brazil to 
elaborate on its experience in this issue, in par ticular in the period following the issuance of the 
Decree. 
 
ANSWER: 
 
 Brazil has made use of compulsory licensing  only once. In 2007, the Government of 
Brazil decided to compulsory license the pate nt of EFAVIRENZ, which is the most-consumed 
anti-retroviral (ARV) in Brazil, with a clear growth trend. In Brazil, the use of “efavirenz” increased from 2,500 patients in 1999 to 75,000 patien ts in 2007 (38% of patients with AIDS). 
 
 Considering its importance to Brazil’s Pub lic Health Policy consummation and its 
growing budgetary impact, the Government of Br azil commenced fair and transparent price 
negotiations with Merck & Co., Inc, who holds “efavirenz’s” patent in Brazil. Negotiations lasted for three years, during which Merck Sha rp & Dohme (MSD) did not show flexibility to WT/TPR/M/212/Add.1 
Page 240  
 
 reduce the price. In 2006 and 2007, the Brazilian Government had many negotiations meetings 
with the representatives of the company. In sp ite of these meetings, the company made five 
formal statements indicating its firm intent ion to not decrease the price of efavirenz 600mg 
below 2%.  
 In light of the prices practiced by Merck for this product in third markets, the 
Government of Brazil asked Merck to make a price offer consistent with the growing 
consumption of efavirenz in Brazil and with the prices practiced by the company in third countries. However, the company remained in flexible. Merck’s proposal was considered 
insufficient and unsustainable in light of th e growing costs successful National STD/AIDS 
Program.  
 On April 25th, 2007, the Brazilian Government issued Decree No. 886 of July 24
th, 2007, 
by which efavirenz was formally recognized as a medicine of public interest for the purpose of 
granting a compulsory license for non-commercial  public use. The company owner of the patent 
rights was informed of this decision on April 24th, 2007, and was offered a renewed chance to 
submit a proposal of price reduction within a seven-day period. In this period, the company 
presented a proposal far below the expectations of the Government of Brazil.   The Government of Brazil had not option  rather than continuing the compulsory 
licensing process. On May 4, 2007, Presidentia l Decree 6, 108 compulsorily licensed efavirenz’s 
patent for non-commercial use ba sed on public interest, thereby guaranteeing the viability of 
the National Program on STD/AIDS. 
 
 EFAVIRENZ has been imported by means of  multilateral international organizations 
UNICEF and PAHO, which had been recognized as  world producers of efavirenz and had been 
pre-qualified by the World Health Organization. Two laboratories from India were selected: the 
Ranbaxy and Aurobindo.   The final cost of the product delivered  by the Indian companies through such 
international bodies, including freight and royalties, is $ 0.4594 for EFAVIRENZ 600 mg and $ 0.2173 for 200 mg. This accounts for an annua l reduction of approximately 30 millions US 
dollars in the expenditure with this medicine. 
  The compulsory license issued correctly est ablished a remuneration for the company at 
1.5%.  
 The Government of Brazil implemented EF AVIRENZ compulsory license in absolute 
transparency and demonstrated, throughout the process, a firm willingness to achieve a mutual 
understanding with the patent owner. The compulso ry license was done absolutely in line with 
the TRIPS Agreement, the Doha Ministerial De claration on TRIPS and Public Health and 
national legislation. 
 
SECOND BATCH 
 
Foreign Investment Regime  
(paragraph 30-32 on page 18)  
 
1. What is Brazil’s investment policy, in partic ular regarding negotiations of future Bilateral 
Investment Treaties (BITs)?  
 
 
  WT/TPR/M/212/Add.1 
 Page 241 
 
 
 ANSWER: 
  For the moment, Brazil does not have plan s to negotiate new Bilateral Investment 
Treaties. The BITs that already signed h ave been withdrawn from the Congress approval 
procedure. Besides the issue of the potential di scriminatory treatment against national investors 
in the face of investor-State arbitration clauses, other specific problems were identified, such as 
the obligation of prompt indemnization in case of expropriation, given that the Constitution 
establishes that indemnization for expropriation for agrarian reform purposes must be given in the form of agrarian reform titles. (paragraph 29 on page 18) 
 
2. Please elaborate further on the definition of “being in the interest of the country”, vis-à-vis the 
ability of foreign investors to operate in the financial sector. 
 
ANSWER: 
 
 The approval by Presidential Decree embodies the normal Executive discretion on the establishment of new foreign financial institutions, on the basis of systemic and prudential considerations. It is not, therefore, an impedime nt to foreign investment in the financial sector. 
Once in accordance with the prudential requirements set by the Central Bank, no request from foreign bank to establish in Brazil has never been denied. In Executive Approval does not 
correspond to an Economic Needs test.  
Preferential Agreements  
(paragraph 44 on page 22) 
 
3. Please provide further clarification on the statement that The Protocol of Montevideo on Trade in Services “establishes a programme for the liberaliza tion of intra-trade in services within an overall 
implementation period of ten years from the date of entry into force, i.e. by December 2015”. 
 
ANSWER: 
 
 The Protocol of Montevideo intends to elim inate, within a 10-year-time-frame (which 
ends in 2015), market access and national treatmen t restrictions to the trade of services within 
Mercosur.   (paragraph 44 on page 22) 
 
4. What are the main objectives that MERCOSUR plans to achieve in December 2015? 
 
ANSWER: 
  By December 2015, the suppression of market access and national treatment 
restrictions, as well as advances in regulato ry harmonization and domestic regulation 
disciplines are expected. 
 
MALAYSIA  
 
Import Licensing (Page 46) 
 
1. Brazil applies both automatic and non-automa tic licences to imports of various products . 
Since Brazil's last review, there has been no c hanges to the main laws and regulations governing WT/TPR/M/212/Add.1 
Page 242  
 
 import licensing procedures. Can Brazil explain if Brazil utilises the reference price system to issue 
an import license for imported toys?  
 
ANSWER 
 
 Brazil does not apply a reference price system to issue import licenses for imported toys. 
  If yes, is there any notification on usage of th e reference price system  in the issuance of an 
import license for toys? Is this notification availabl e in the website and is it available in the English 
language?  
 Does the requirement for a non-automatic im port license for toys apply to MERSOCUR 
Members as well? 
 
ANSWER: 
 
 Toys originated from MERCOSUR Members are also subject to license requirements.  
 What are the specific criteria utilised to approve and deny imports of to ys? If the application 
is denied, does Brazil provide any explanation?  ANSWER: 
 
 The criterium to approve or deny import li censes is whether the product complies or not 
with technical regulations established by INMETR O. Justifications for all license denials are 
informed through SISCOMEX, Brazil’s el ectronic system for trade operations. 
 
Customs Valuation (Page 29-30) 
 
2. Brazil did not respond to the WTO checklist of issues on customs valuation agreed by 
Members in 1995. Could Brazil provide the justifications for not responding? 
 
ANSWER: 
 
 Brazil is analyzing this issue internally and will refer it to the Customs Valuation Committee when appropriate.  UNITED STATES 
 
III.  Trade Policies and Practices by Measure  (1)  Overview
  
 
Page 26, paragraph 1, WT/TPR/S/212-03:  During the review period, Brazil reportedly continued to 
take gradual steps to simplify and modernize its cust oms procedures. Yet, the Secretariat immediately 
follows with, “In addition to tariffs, imports are subject to four non-cumulative domestic taxes; the 
application of two was extended to imports  in 2004.”  Please describe the product 
coverage/eligibility, operation, and applic ation of these taxes on imports.   
 
ANSWER: 
 
 The taxes that apply to imports as well as  to domestically produced goods are PIS 
(1,65%), COFINS (7,6%), IPI and ICMS (18%).  The coverage of these taxes is different. IPI 
applies to industrialized goods. PIS e COFINS a pply to all goods. ICMS is a state level tax 
applied to all goods, but there are some excepti ons which vary among the states. The IPI rates  WT/TPR/M/212/Add.1 
 Page 243 
 
 
 may vary according to the product concerned. Th e MS rates may vary according to the state 
and the product concerned.  
 
Pages 94-95, paragraph 349:   The Secretariat’s Report provides several statistics related to Brazil's 
seizure activities in the context of its copyright en forcement regime.  Please provide information with 
respect to forfeiture actions and/or destructi on of seized merchandise as well as information and 
statistics related to criminal trademark in fringement actions.  (See TRIPS Article 61). 
 
V.   Trade policies by sector  
(2)  Agriculture and Forestry  
(i)  General features, policy objectives, and administration 
 ANSWER:   (*) Please check table at the end of th e document, which contains statiscs and 
information on seizures made by the Federal Revenue of Brazil in 2007 and 2008. 
: 
2007  
DESCRIPTION QUANTITY UNITY VALUE (R$) VALUE PER 
GROUP (R$) Percentage of the total of 
seized goods 
1,399,469 Bottle 6,607,119.83
4,818 Kg 80,235.22
26,469 Lt 200,332.63
Alcoholic 306,254 Unit. 2,991,831.90 9,879,519.58 0.94%
620 Bottle 744.58
1,508 Kg 8,922.43
2,628 Lt 2,156.84
Beverages Other 93,270 Unit. 452, 395.06 464,218.91 0.04%
5,756,377 Unit. 11,812,366.57
Toys 717,745 Kg 8,171,856.12 19,984,222.69 1.90%
1,638 Kg 26,340.06Sports 
footwear 533,056 Unit. 59,009,619.18 59,035,959.24 5.62%
1,134 Kg 6,639.70
Footwear Other 268,927 Unit. 6,342,280.71 6,348,920.41 0.60%
460 Kg 3,059.44
98,973,682 Pack 77,202,172.31Cigarettes and similar 
tobacco products 3,289 Kg 77,098.47 77,205,231.75 7.34%
407,642 Unit. 4,577,893.61
13 Lt 5,315.56
Medicines and drugs 2,414 Kg 751,527.29 5,334,736.46 0.51%
4,182,785 Unit. 7,423,657.04
12,690 Kg 103,049.71
Recorded 242 Pack 1,239.25 7,527,946.00 0.72%Recordable 
media (CDs, DVDs) Blank 191,808 Kg 2,662,457.66 17,249,909.19 1.64%
 
__________