WORLD TRADE  
ORGANIZATION  WT/TPR/M/212 
3 June 2009 
 (09-2658) 
Trade Policy Review Body 
9 and 11 March 2009  
 
 
 
TRADE POLICY REVIEW 
 
BRAZIL 
 
Record of the Meeting  
 
Chairperson:  H.E. Mr. Istvan Major (Hungary) 
 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF BRAZIL 4 
III. STATEMENT BY THE DISCUSSANT 8 IV. STATEMENTS BY MEMBERS 11 
V. REPLIES BY THE REPRESENTATIVE OF BRAZIL AND ADDITIONAL COMMENTS 56 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 69 
 
Note:   Advance written questions by WTO Me mbers and the replies provided by Brazil are 
reproduced in document WT/TPR/M/212/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/212 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The fifth Trade Policy Review of Brazil was held on 9 and 11 March 2009.  The Chairperson 
H.E. Mr. Istvan Major (Hungary) welcomed the dele gation of Brazil, headed by H.E. Mr. Roberto 
Azevedo, and the discussant, H.E. Mr. Muhamad Noor (Malaysia).   
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by Brazil was contained in document WT/TPR/G/212 and 
that of the WTO Secretariat in WT/TPR/S/212. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delegati on of Brazil:  China, Mexico, Singapore, Chinese 
Taipei, India, Switzerland, Costa Rica, Hong Kong , China, Argentina, New Zealand, the United 
States, Turkey, Japan, Ecuador, Chile, Norway, Au stralia, Colombia and Canada.  All advance 
questions, as well as the responses received from the delegation of Brazil are reproduced in WT/TPR/M/212/Add.1. 
4. The following delegations had submitted written questions after the two-week deadline:  the 
European Communities, Guatemala, Peru, Korea, Malaysia, Thailand and Pa kistan and additional 
questions by Mexico. 
5. The Chairperson said that he had considered with keen interest the reports prepared by Brazil 
and the Secretariat for that meeting.  Both repor ts noted that Brazil had continued to simplify and 
modernize its customs procedures.  The Braz ilian economy took advantage of these and other 
reforms, and of a favourable economic environmen t, to achieve solid economic growth during the 
period under review.  The reforms undertaken also creat ed the foundations that seemed to be allowing 
Brazil to weather the current global economic crisis better than most.  In this respect, he believed 
Members would be interested to know of any specific measures Brazil may had taken since the start of the year to address the global crisis.  The two repo rts prepared for this meeting also indicated that 
Brazil gave utmost importance to multilateral trade libe ralization and, in this context, he believed that 
Members might also want to understand the reasons for the slight increase in the average applied tariff 
during the period under review. WT/TPR/M/212 
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  II. OPENING STATEMENT BY THE RE PRESENTATIVE OF BRAZIL  
6. Let me start by thanking the Secretariat for the thorough and comprehensive report on Brazil's 
trade policies, which provides an excellent basis fo r our work in this 5th Trade Policy Review of 
Brazil. I must also thank the discussant, Ambassa dor Noor, for his helpful comments and insights, 
offering us inspiration for the next hours and days in this important tr ansparency exercise. Let me also 
thank all other delegations for the interest they took  in this review. The numbe r of questions they have 
submitted as well as the nature of those questions ma ke clear that long hours were spent trying to 
better understand the various aspects of Brazil's trade policies. 
7. I am also thankful to the members of my de legation, who have gone through a very long 
journey and who also have dedicated countless hours to  this review, trying to provide answers to all 
questions we received over the last few weeks. Let  me  introduce  them  to  this  plenary: 
• Minister Carlos Márcio Cozendey, heads the delegation that came from Brasilia. He is the 
Director of the Economic Department  of  the Ministry of External Relations; 
• Mr. Dyogo Henrique de Oliveira, Deputy Secretary of Economic  Policy  of  the  Ministry  of  
Finance;  
• Ms. Eliane Fontes, Director of the Internati onal Negotiations Department of the Ministry of 
Development, Industry and Commerce; 
• Mr. Aloísio Tupinambá, Deputy Secretary of the Foreign Trade Chamber; • Mr. Alexandre Freitas, Manager of Intern ational Relations, Securities and Exchange 
Comission of Brazil;  
• Ms. Luciene Machado, Head of the Foreign Trade Department of the  National Bank for 
Economic and Social Development;  
• Mr. Luiz Claudio Carmona, Advisor of the Department of Multilateral Commercial 
Negotiations Department of the Ministry  of   Agriculture,  Livestock  and Supply; 
• Mr. Antonio Luiz Machado de Moraes, Adviso r of the Agricultural Policy Secretary of the 
Ministry of Agriculture, Livestock and Supply; 
• Ms. Ana Paula Jucá, International Advisor of the Brazilian National Health Vigilance 
Agency; 
• Ms Vanessa Tavares, Assistant to the Genera l Coordinator of Economic Organizations of the 
Ministry of External Relations;  
• As well as my team from the Permanent Missi on of Brazil to the WTO and other Economic 
Organizations in Geneva. 
 
8. It is with great satisfaction that Brazil particip ates in this Review. We also note with pleasure 
the increased interest in Brazil's policies as the large number of questions received clearly 
demonstrates: they are now 65% more numerous than in our 4th Review. We will try to respond them 
all  fully  over  the  course  of  the  review.  
9. This Review could not come at a better time.  We are living in challenging times, when our 
economies are under stress, facing the specters of global recession and unemployment, trying to resist the temptation of protectionism. The multilateral trad ing system is also being asked to respond and 
contribute to the global efforts trying to revert the downward path of the current crisis. The WTO 
trade policy reviews are a much n eeded instance of transparency, where views can be exchanged on 
policy issues of national and also of systemic relevance. 
10. As far as the crisis is concerned, I believe we have learned tough lessons from previous 
similar blows. From the deep recession and convul sions of the 30's emerged the multilateral  trading 
system and the Bretton Woods institutions. Over the p ast two decades, Brazil also learned that crisis 
originating in foreign lands could also deeply a ffect its own economy, as capital became risk averse 
and fled emerging economies. Brazilian fiscal and monetary policies became more conservative and  WT/TPR/M/212 
 Page 5 
 
 
  stricter regulations were enforced on the financial system. Growth was not accelerated, but it was 
prudent and socially inclusive.  
11. Brazil's previous Trade Policy Reviews focused on how the country was responding to earlier 
shocks and how it was equipping itself to respond to the challenges associat ed with a globalized 
economy. Brazil has been placing particular emphasi s on four key aspects of its trade and economic 
policies: (1st) finding the proper role for the State as a regulator but also as a catalytic element; (2nd) 
providing a stable but also dynamic economic envir onment, fostering growth and development; (3rd) 
exploring synergies between a dynamic export sector  and a sustainable and robust domestic market; 
and (4th) adopting effective social policies that reduces inequalities and enhances the inclusion of a 
large portion of the population into the formal economy.  
12. As a consequence, the Gini coefficient – that measures the inequality of income distribution – 
has significantly declined from 0.58 in 1997 to 0.5 28 in 2008, reflecting the positive impact of the 
Zero Hunger Programme, as well as of other social policies that improved access to food, education, 
social welfare, employment and other fundamental social and human rights. 
13. Taking advantage of the favorable internati onal economic environment, the Brazilian GDP 
grew annually by 4.5% on average between 2004-2007. In 2007, the GDP increased by 5.7%. For 
2008, government estimates point to  a further expansion of 5.5%.  
14. The prospects for 2009 naturally also depend on  the depth of the international crisis but, 
although at a slower pace, growth is expected, lik e in other emerging markets.  Unemployment has 
significantly declined from 11.7% in 2002 to 9.4%  in 2007 and to 8% in 2008 according to recent 
estimates.  
15. External vulnerability has greatly reduced in light of the performance of the Balance of 
Payments over the last few years, allowing Brazil to accumulate significant reserves that last February amounted to US$ 200 billion. These reserves derive prim arily from surpluses in external trade, which 
increased both in absolute and relative terms. From  2004 to 2007, the period covered by the report, 
external trade grew by 76% - from US$ 163 billi on to US$ 287 billion – increasing from 24.8% of the 
GDP to 26.7%. In 2008 total trade flows reached  US$ 371 billion, and increase of 127% since 2004, 
the year of our last review. Brazil's share in world exports grew 10% in a peri od of rapid expansion of 
world trade. 
16. In the same period, trade surplus continued to evolve positively with an average of 
US$ 40 billion and a peak of US$ 46.5 billion in 20 06. Final figures for 2008 show a trade surplus of 
US$ 24.7 billion.  
17. Brazilian exports are now more di versified and directed to a la rger number of destinations, 
making them less vulnerable to external turbulen ces. Between 2004 and 2007, exports to traditional 
markets grew markedly: 24.1% to the USA and 63.8% to the European Union. However, exports grew 
even more rapidly to other markets: to Latin Am erican countries (114%), to Eastern Europe (113%), 
to Africa (101%), to  the  Middle  East  (73.5%), and to Asia (72%). 
18. This performance obviously improved investors'  confidence in Brazil. Foreign Direct 
Investments amounted to 34.7 billion in 2007 and US$ 45.1 billion in 2008, positioning Brazil as the second largest recipient of FDIs among developi ng and emerging economies. All these indicators, 
together with solid growth and stable fundament als were noted by the international community and 
Brazil's sovereign debt was  upgraded  to  'investment  grade'.  
19. Fiscal responsibility is a central tenet of Brazilian policies. Estimates of the primary surplus 
are at 4.3% of GDP, including the additional effort to fund the Brazilian Sovereign Fund. WT/TPR/M/212 
Page 6  
 
  Furthermore, public sector net indebtness has sharply decreased from 54.2% to 36% of GDP from 
2003 to 2008.  
20. As 2008 unfolded with increased prices of ag ricultural and industrial commodities and oil. 
Nonetheless, inflation was kept at bay with mone tary policies that, although tight, still permitted 
economic growth. 
21. A few words on the crises Mr. Chairman. The cu rrent global economic cr isis slowed Brazilian 
growth but the economy still rests on sound fundament als. Still, measures are being implemented to 
lessen the impact of the worldwide economic downt urn. A major component of these efforts is the 
Growth Acceleration Program, which encourages investments on infrastructure projects. Inclusive social actions are also critical in developing and sustaining the domestic market, which compensates, 
at least to some extent, the effects of the contr acting international markets. Due to sensible fiscal 
policies, Brazil was able to mark edly reduce the public debt and is now in a position to maintain 
reasonable levels of government expenditure , helping to sustain economic activity.  
22. The national financial system is responding well due  to controlled participation of state banks 
and sound regulatory practices. Braz ilian banks normally have lower le vels of leveraged activities as 
well as healthier non-toxic assets, have reduced expos ure to the turbulent international financial 
market, and adopt standards that are usually more  conservative, for example, than recommended by 
Basel II.  
23. This is not to say that Brazil is not affected  by the credit crunch. Indeed, at a time when 
developed countries' first line institutions are hit hard, trade finance is less available for developing 
countries. In order to counteract the  increased  demand for domestic credit, due to disappearance of 
international credit lines, Brazilian monetary author ities have reduced banks' compulsory deposits and 
have increased the amount of resources availa ble for loans by the National Development Bank 
(BNDES). Furthermore, public banks have increased  the amount of credits to key sectors such as 
agriculture, construction, automotive, and small and medium enterprises.  
24. As far as exchange rates are concerned, the Government was able to maintain the Real 
aligned to most emerging markets currencies.  
25. I will now make a few brief comments on the ma in themes that have been raised in the 
Secretariat's report and that have been echoed in Member's questions. I will not be long, since we will 
have the opportunity to take these points later when  answering  questions  dur ing  this  Review.   
26. Let me start with Mercosur. The Customs Union of Mercosur is the backbone and platform 
for the competitive integration of Brazil in the global economy. Recent measures of note include 
deepening of integration of production chains in the automotive, tourism, oil and gas sectors.  
27. One must also underline the creation, in 2006, of the Fund for Structural Convergence of 
Mercosur (FOCEM) which is destin ed to bridge the development gap among its Members. It is 
funded with US$ 100 million annually, and Braz il contributes with 70% of these resources. 
28. The external agenda of Mercosur remains busy with the signing of an FTA with Israel in 
2007, which will gradually eliminate  ta riffs  over  a  10-year  period. 
29. The Group has also signed a Preferential Free Trade Agreement with India in 2004 and 
concluded negotiations on a Preferences Trade Ag reement with the South African Customs Union 
(SACU) yet to be signed. Framework agreements in itiating trade negotiations were signed with Egypt, 
the Gulf Cooperation Council, Jordan, Morocco a nd Turkey. The negotiation of an Association 
Agreement with the European Union, including a bilateral FTA remains in  Mercosur's agenda.  WT/TPR/M/212 
 Page 7 
 
 
  30. South-South trade continues to increase at a faster pace than world trade. Brazil actively 
promoted the launching of the São Paulo Round of  the Negotiations of the Generalized System of 
Trade Preferences among Developing Countries and we  believe that its conclusion will open new 
markets and will generate new trade opportunities among developing countries. 
31. One of the points that have drawn attention con cerns the modest increase in the average tariff 
of Brazil from 10.5% to 11.6%. This was due to the fact that 7% of our tariff lines in the sectors of 
textiles, clothing and footwear were brought to  their WTO bound level. Those products comprised 
only 2.4% of Brazilian imports in 2008. It is importa nt to note that, despite such measures, imports of 
those sectors still grew at a slightly faster pa ce than total imports (178%  in the period 2004-2007, 
against 176% for total imports).  
32. Brazil's agriculture is strongly market oriented . It is extremely competitive, efficient, and 
grows in a sustainable and continuous fashion. Support levels in Brazil continue to be very low – with 
a PSE between 4% and 6%, which is much lower th an most OECD members. Indeed, Brazil's support 
continues  to  be  below  "de  minimis"  levels.    
33. Services is the area that has concentrated most questions from members. Let me state 
unequivocally that the services market in Brazil is es sentially open to interna tional trade.  The OECD 
has subscribed to that perception by signaling th at "unlike most OECD countries, Brazil has few 
restrictions to FDI in sensitive sectors such as finance, telecommunications and energy".  
34. Services are responsible for 57% of the value- added GDP and 54.5% of total FDI in Brazil, 
generating over 17 million formal jobs. Since the ear ly 90s, Brazil has continuously liberalized its 
services sector through privatization and new and  more  open  regulations,  most  noticeably in 
telecommunications, financial services, and port and airport services. 
35. State agencies still play a role as suppliers of  banking and insurance services, but private 
participation, including foreign, has increased in thes e and other areas. As we have seen, such limited 
role of State agencies has allowed the financial sector to pass relatively unscathed through the first 
stages of the international crisis. Foreign ownership r estrictions remain in just a few sectors, such as 
air transport services. 
36. In the area of intellectual property, Brazil h as stepped up its fight against piracy and 
counterfeiting through the establishment, in 2004, of the National Council to Combat Piracy and 
Crimes against Intellectual Property. It has desi gned an Action Plan with 99 measures that have 
already resulted in a marked decrease in the vol ume of commerce of items violating intellectual 
property rights. This is duly reflected in pa ragraph 349 of the Secretariat's report.  
37. In conclusion, my final message to all those who are here today is that although Brazil finds 
itself better prepared to face the global economic cris is than it ever was before, we do not believe that 
this should be a lonely endeavor. We need to join efforts and strive to reenergize trade, strengthen the 
multilateral trading system, and conc lude the Doha Round so as to mi nimize the loss of income and 
wealth, particularly in the developing world. 
38. I do hope that this 5th review of Brazil's trade policies will be a fruitful and inspiring exercise 
to us all.  WT/TPR/M/212 
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  III. STATEMENT BY THE DISCUSSANT (H.E. Mr. Muhamad Noor (Malaysia)) 
39. On October 29, 2006, President Lula, in celebrating his second presidential victory declared, 
“We proved that it is possible to guarantee, simulta neously, stability, economic growth, job creation, 
and an improvement in income distribution. Now,  Brazil is ready to grow over 5% per year.” 
Elaborating on the declaration subsequently, th e President indicated that “the second Lula 
Administration is committed to a strategy of f aster economic growth and higher living standards 
based on investment promotion, redistributive policies, and higher levels of education.” 
40. The background to the policies and strategies e nunciated by President Lula are as follows: 
41. Brazil is the sixth-largest country by area (8  million square kilome tres) and in PPP terms 
(counting the EU as one) the tenth-largest economy in the world. It has a population of 196 million, 
making it the fifth most-populous country in the world; 
42. Brazil has had one of the most unequal economies in  the world with a Gini coefficient of 0.56 
in 2005 with the richest 10% earning 45% of total income, while the poorest 50% got only 14%. It should be noted, however, that the Gini coefficien t has been declining, reaching 0.528 in 2008, the 
lowest point in three decades;  
43. Businesses complained about the macroeconomic  environment. For them, one of the major 
obstacles for growth was the high real interest ra te. With lending rates over 48% and money market 
rates above 15%, capital investments had to be fina nced with retained earnings. For lower income 
Brazilians, in particular, high interest rates closed the doors for entrepreneurial activity. On the other 
hand, there are recent reports that Brazil has successfully implemented entrepreneurial schemes in favour of low income groups; 
44. The overvaluation of the nominal exchange rate has been another major issue. Some exporters 
argued that the exchange rate was overvalued, hur ting the competitiveness of the country. In terms of 
policy, Brazil maintains a floating exchange rate  regime, with the exchange rate fluctuating 
significantly in both directions during 2003-08.  Fo reign exchange regulati ons were liberalized 
although without resulting in a full convertibility of the Brazilian Real. The R:US$ exchange rate 
averaged 1.97 for 2007 and 1.83 for 2008. However,  Brazil’s currency declined 2.4 percent in 
February and is down nearly 32 percent over the past six months.  
45. A report published by McKinsey & Co. identified five priority areas that the government 
should focus on in order accelerate growth:  i) im proving the large informal sector by reducing 
informality;  ii) improving the macroeconomic envir onment;  iii) reducing red tape;  iv) improving the 
efficiency of public services (e.g. security, edu cation, and the judiciary); and v) improving the 
infrastructure network. 
Trade Policies and Practices 
46. Let me quote President Lula once more, this time from an interview with the Financial Times: 
“The Doha Round is the most important thing that we can do to reduce inequalities, create 
opportunities and develop the poorest countries, f ace up to the struggle against terrorism, and 
strengthen democracy.” 
47. In line with that position, Brazil has assumed an active role in the WTO DDA negotiations, 
including as coordinator of the G20. Let me pay high tribute to the Brazilian delegation for their 
manifold contributions.  WT/TPR/M/212 
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  48. Brazil’s entire tariff schedule is bound i.e. at an  average of 30.2%.  At the applied level, 
Brazil has increased its simple average applie d MFN from 10.4% in January 2004 to 11.5% in 
January 2008. I am somewhat reticent to suggest that Brazil reduce bound rates to close the gap between them and applied tariffs, especially unde r the current circumstances. However, such an 
outcome is to be expected from early conclusion of the DDA, of which Brazil is a leading proponent.  
49. The Secretariat Report describes Brazil as a genuine global trader, with considerable 
diversification in the geographic distribution of its exports and imports. On the other hand, the 
exports/GDP ratio for Brazil is below 15%, compar ed to the median for emerging markets which 
stands at around 40%. 
50. While being a strong supporter and advocate of  the multilateral trading system, Brazil 
considers preferential trade agreemen ts as a valuable complement to the multilateral trade system.  It 
is a full member of the Southern Common Market (MERCOSUR).  Although this is by far Brazil’s 
most important preferential agreement in terms of value of trade, only some 10% of its merchandise 
trade takes place with MERCOSUR members. 
51. Through its participation in MERCOSUR, Brazil al so has preferential trade agreements with a 
number of countries and is negotiating bilatera l agreements with a number of others.  
52. Brazil uses both automatic and non-automatic impor t licences. The latter affect slightly more 
than one third of all tariff lines.   
53. Brazil is an active user of anti-dumping (AD) measures.  At end 2008, it had 63 AD measures 
in force, affecting the exports of 23 trading partne rs.  In 2008 alone, 25 new AD investigations were 
initiated, almost twice the level of 2007 initiations. 
54. Given the current difficulties faced by the globa l economy, there have calls in various fora, 
including the WTO, that Governments refrain from adopting protectionist measures. In the case of 
Brazil, there has been a report that President Lula ordered the reversal of a measure broadening the 
scope of import licensing requirements.  
55. As regards investment policies, Brazil has liberalized its investment regime and no major 
changes were introduced to Brazil’s foreign inv estment regime during the period under review.  
Assessment and Evaluation  
56. Brazil’s merchandise exports increased by ab out 120% between 200 3 and 2007, to reach 
US$160 billion.  The value of imports reached US $120 billion in 2007 or 2.5 times the 2003 level.  
57. It should be noted, however, that falling exte rnal demand, coupled with lower commodity 
prices, has led to a sharp deterioration in Braz il’s external sector performance in recent months. 
Brazil’s exports fell in February for a third c onsecutive month from year-ago levels and seen on a 
monthly basis, for a fifth straight month. Exports dropped to $9.6 billion in February from $9.8 billion 
in January and from $12.8 billion a year ago. Braz il’s imports dropped to $7.8 billion in February 
from $12 billion in the same month year ago, the biggest drop in at least 10 years.  
58. To state the obvious, Brazil, like many countri es, has not escaped the effects of the global 
economic slowdown. 
59. While the services sector accounts for almost two-thirds of Brazil's GDP, the country is a 
traditional net importer of services. Brazil’s commerc ial services exports amounted to US$22.6 billion 
in 2007 whereas imports amounted to US$34.8 billion. WT/TPR/M/212 
Page 10  
 
  60. The country’s balance of payments has b een registering surpluses with the country 
accumulating large foreign exchange reserves amounti ng to close to US$200 billion as at end-2008.   
61. Brazil has in recent years enjoyed stable econom ic growth, low inflation rates and significant 
improvements in social well-being. The economy ha s grown strongly, averaging 4.5 percent between 
2004 and 2007, well above average a nnual growth (of just below 2.5 percent) in recent decades. It 
grew by 5.4 percent in 2007, an annualized rate of  6% in the first half of 2008 and 6.8% during the 
third quarter. According to EIU estimates, GDP grew by 5.3% for the year 2008.   
62. Consumer price inflation rates have been around 5 - 6% a year, in fact estimated at 5.8% for 
2008.  
63. The improvements in the macroeconomic foundati ons came together with equally important 
advances in the social indicators of income dist ribution, school enrolment, literacy and infant 
mortality. It should be recognised that Brazil h as had an aggressive education and redistribution 
policy. This was reflected in higher Human Deve lopment Index (HDI) resu lts than other similar 
developing/emerging countries.   
64. To take a peek into the future, with global economic conditions deteri orating and signs that 
Brazil’s domestic economy is slowing down significan tly, the country’s GDP is expected to contract, 
at least modestly, in 2009. However, this might be mitigated by government stimulus measures and 
monetary easing. A recovery of growth in 2010 might be foreseeable. I will abide by the advice of my economics professor and not try to present a prognosis in respect of times further into the future.  WT/TPR/M/212 
 Page 11 
 
 
  IV. STATEMENTS BY MEMBERS 
CHINA 
65. We note that this meeting is of particular importance, held against the background of a 
spreading and deepening global financial crisis. An d we hope as part of our objectives against this 
particular background, this review will help  Members better understand and learn from Brazil’s 
counter measures to the crisis. 
66. Brazil is one of China’s most important trad ing partners, and the past few years have 
witnessed a rapid development in bilateral trad e and economic cooperation. According to our 
statistics, in 2008, despite the global financial cris is, our bilateral trade amounted to 48.5 billion US 
dollars, representing a 63.2% growth over the previous  year, and almost four times that of the year 
2004. In that year, President Hu Jintao and President  Lula paid fruitful visits to each other. A few 
weeks ago, Chinese vice president Xi Jinping paid a nother successful and productive visit to Brazil, 
during which a number of cooperation projects were signed. We believe that these projects will bring 
a new momentum to further enhance our trade a nd economic cooperation and serve as an example of 
our concerted efforts to help d eal with the financial crisis.  
67. China believes that coordination at the internati onal level is essential in order to overcome the 
difficult times ahead. We appreciate Brazil’s positive attitude towards the multilateral trading system 
and the Doha Round, as presented in Brazil’s report,  which is helpful in warding off the risky 
tendency of protectionism. Ambassa dor Azevedo and his team in Gene va have been playing a leading 
role in the negotiations. China shares a lot of comm on positions with Brazil, and would like to thank 
Brazil for its leadership of the G20 in Doha agricultural negotiations.  
68. On Brazil’s trade related policies and measure s, China has submitted a number of questions, 
which mainly focus on tariffs, anti-dumping measures,  export insurance, TBT related issues, etc. Our 
enterprises also noticed, from the Re port by the Secretariat, that Brazil is increasing its average tariff 
protection. We hope that our qu estions will be answered in good time, and our concerns will be 
addressed properly. China understands the difficulties of Brazil and hopes that Brazil will deal with 
the crisis in a reasonable way, within the frame work of the multilateral trading system, and in 
accordance with the spirit of the G20 Washington Su mmit. We wish Brazil a successful trade policy 
review. 
69. Last but not the least, warm congratulations to you for being elected as Chair of this important 
Body. Please be assured of our whole-hearted support. 
MEXICO 
70. The Report shows that Brazil's economy grew at an annual average rate of 4.5 per cent 
between 2004 and 2007.  This growth was triggere d by a strong increase in domestic demand and a 
favourable external environment.  Domestic demand, in turn, was supported by increasing real wages 
and facilitated access to credit.  This growth in Br azil's economy also benefited from an increase in 
exports of goods and services, which as a whole recorded an annual average rise of 22 per cent 
between 2003 and 2007.  Because of the reforms initiate d in recent years, Brazil is better placed than 
many other countries to contend with the global recession. 
71. Despite the strong performance of its economy during the period under review, Brazil still 
faces daunting economic and social challenges.  Although Roberto and Noor  have mentioned the 
important advances made, one partic ular challenge is income inequa lity and the levels of extreme 
poverty, which affect over 20 per cent of the population. WT/TPR/M/212 
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  72. At the macroeconomic level, the Brazilian G overnment has taken the appropriate monetary 
and fiscal measures to keep control of key variables such as the spectre of inflation - a real handicap 
for Brazil in the past - and the fiscal deficit.  Th e Report, however, indicates that fiscal reform is 
needed to allow the Brazilian Gove rnment to increase its income a nd maintain control over the public 
sector's fiscal deficit.  It seems clear to us that  Brazil will continue to implement the monetary and 
fiscal policies required to enable it to maintain ma croeconomic stability, an absolute necessity in the 
current negative situation of the global economy. 
73. In view of this critical situation in the inte rnational economy, it appears even more necessary 
to promote the competitiveness of the banking sector, thus facilitating access to credit and narrowing the wide gap between the borrowing and lending rat es.  Likewise, more active implementation of its 
competition policy would allow the Brazilian economy to emerge from the global recession in a 
stronger position. 
74. As far as tariffs are concerned, the Report stat es that Brazil increased its average MFN tariff, 
from 10.4 per cent in 2004 to 11.5 per cent in 2008 .  The origin of this increase was a higher average 
applied tariff on non-agricultural goods (1.1 percen tage points).  The average bound tariff is 30.2 per 
cent, so there is a wide margin and Brazil will ha ve to bridge the gap existing between the bound and 
applied tariffs in the current round of negotiati ons, which we all hope will conclude successfully. 
75. With regard to non-tariff measures, we would like to take this opportunity to thank the 
Brazilian authorities for the attention given to the trade concern raised by Mexico in the Committee on Technical Barriers to Trade regarding the draft technical standard that will regulate the maximum 
limits for some toxic substances in spirits, which coul d affect our exports of Tequila, a product of the 
utmost importance for Mexico's foreign trade.  We  are certain that the Brazilian delegation will soon 
confirm formally that the draft standard will not apply to products previo usly imported such as 
Mexican Tequila. 
76. Turning to the services sector, the Report indicates that it is making a larger contribution to 
Brazil's economy and accounted for 65.4 per cen t of GDP in 2007.  Ambassador Azevedo also 
pointed out that there are very few restrictions in Brazil's services sector.  During the Uruguay Round, 
however, Brazil made commitments in 7 of the 12 services sectors.  Although Brazil participated in 
the negotiations on the Fourth Protocol on Te lecommunications, it did not make any additional 
commitments in this sphere and did not adopt the Re ference Paper.  In view of the progress made and 
the autonomous liberalization in Brazil over the past decade, we consider that Brazil's final offer in 
the Doha Round should reflect its current legal regi me.  Furthermore, in order to give foreign 
investors a greater degree of certainty, we urge th e Brazilian Government to ratify the Fifth Protocol 
on Financial Services as soon as possible. 
77. In the current economic crisis, governments are facing strong pressure from certain 
production sectors seeking protection.  There is a risk that protectionist measures may be adopted so it 
is important that Members of this Organization prevent this.  An increase in tariffs or the creation of 
new non-tariff barriers would put at risk the progress made in the multilateral trading system and 
would deepen still further the global economic rec ession.  In this connection, we would like to 
congratulate the Brazilian Government on not only  having contained these pressures, preventing the 
adoption of measures affecting trade in goods and ser vices, but also on being one of the most active 
promoters of the commitment on the status quo at  the G-20 and of the rapid conclusion of the 
Doha Round.  Mexico strongly supports Br azil with regard to both these objectives. 
78. Concerning trade relations between Mexico  and Brazil, I will mention the Economic 
Complementarity Agreement which came into force in  2003.  Under this Agreement, trade relations 
between Mexico and Brazil have become even closer  over the past decade.  Mexico's exports to Brazil 
have doubled in value terms since the Agreement came in to effect.  Mexico is Brazil's fourth largest  WT/TPR/M/212 
 Page 13 
 
 
  supplier on the American continent and is the fourth  most important market for Brazil's exports.  The 
Mexican Government is confident that trade betw een Brazil and Mexico will continue to show a 
sustained increase to the benefit of consumers in both countries. 
79. Because my country is keenly interested in trade policy developments in Brazil, my 
delegation has submitted a number of questions relating to intellectual property, technical barriers to 
trade, services, and the iron and steel industry, am ong others.  We thank the Government of Brazil for 
replying to the questions put by my delegation and we shall study the replies in detail back in our 
capital. 
SINGAPORE 
80. Brazil is a key trade and investment partner for Singapore.  Our economic relationship has 
grown stronger over the years. Brazil is Singapore’ s second largest trading pa rtner in Latin America 
while Singapore is Brazil’s principal trading partner in ASEAN. In 2008, total bilateral trade between 
Singapore and Brazil stood at S$4.1 billion, about a 156% increase from 2004.  
81. Despite our small size, Singapore-based companies’ presence in Brazil has widened over the 
years and spans a number of sectors - oil and gas, port and logistics, commodities, and infocomms.  In 
fact, Singapore is the third largest source of Asia n FDI into Brazil. According to Brazilian Central 
Bank figures, our total investments in Brazil amount to approximately US$137.7 million.  
82. Brazil’s footprint in the Singapore economy is also becoming prominent, with the increasing 
presence of Brazilian companies in recent years.  No t only have some established marketing offices in 
Singapore, major Brazilian companies (such as Embraer and Vale) have also set up representative offices in Singapore to handle the Asia-Pacific ma rket.  Many of these Brazilian companies have 
come to capitalise on Singapore’s strategic location as a gateway to the market in Asia.  This is a win-
win development for both Singapore and Brazil, and our companies.    
83. Brazil and Singapore share similar outlooks on continued multilateral trade liberalization, 
market diversification and expanding linkages betw een Asia and Latin America. Notwithstanding the 
current global economic crisis, Asia  and Latin America are growth re gions with long-term promise.  
84. Singapore is keen to deepen our economic li nkages with Brazil. Our business communities 
have made significant headways into our respectiv e markets. As governments, we should encourage 
and facilitate such forays by putting in place th e necessary G-to-G framewo rks such as FTAs, DTAs 
and IGAs. This will create a positive climate and increase Brazil’s overall competitiveness.  
85. I would now like to turn to Brazil’s trade with the world and its involvement at the WTO.  As 
noted in the WTO Secretariat Report, “ Brazil is a genuine global trader, with considerable 
diversification in the geographic dist ribution of its exports and imports ”.  We fully concur with this 
assessment.  The WTO Secretariat report has also provided suggestions on how Brazil could give additional impetus to trade and investment and we would note a couple of these. 
86. First, although Brazil’s applied tariffs are ad valorem  and its tariff structure shows low 
dispersion, the presence of tariff peaks and escalation increases the effective rates of tariff protection.  
Brazil’s entire tariff schedule is bound at an average of 30.2% and the reduction of bound rates to 
close the gap between bound and applied would increase the predictability in Brazil’s trade regime.   
In the same vein, we encourage Brazil to participate in the plurilateral sectoral agreements, such as the 
existing Information Technology Agreement. 
87. Second, on government procurement, we encour age Brazil to consider becoming a party to 
the GPA.  As noted in the WTO Sec report, join ing the GPA would increase the predictability of its WT/TPR/M/212 
Page 14  
 
  trade regime.  Moreover, it could result in benefits to taxpayers by reducing procurement costs, and to 
the domestic producers that could realistically compete for contracts in foreign markets. 
88. Brazil is a very active participant in the curre nt DDA negotiations and is the leader of the 
important agriculture G20 coalition.   It is eviden t to all that Brazil considers the multilateral trading 
system to be at the core of its trade regime.  Singapore will continue to work with Brazil and other 
Members in supporting an expeditious and successful Doha outcome. 
CHINESE TAIPEI 
89. We are aware that Brazil has gained extensiv e recognition in recent years for its outstanding 
economic performance.  Even in these times of globa l financial crisis and severe economic downturn, 
the level of foreign investment in Brazil still managed to reach a historical high in 2008.  In specific 
sectors within Brazil, such as the Services and th e Advanced Technology in dustries, growth rates 
have also been impressive.  And, the same can be said too for the successful development of its bio-energy industry.  In our view, it is facts like these that make today's TPR of Brazil very interesting for 
all of us.  Moreover, we are now at a critical  juncture in fighting against increasing trade 
protectionism and at the same time trying to driv e the DDA negotiations towards an early conclusion.  
Therefore, any experiences in relevant areas that Br azil can share with us by way of this Trade Policy 
Review could be valuable. 
90. Our bilateral relationship with Brazil is a clos e one.  Just this week, one of our high ranking 
officials in charge of trade and investment is  leading a group visiting Sao Paulo to enhance our 
bilateral economic cooperation and trade relationship with Brazil.  Moreover, most recent figures 
show that our trade and investment flows into Brazil have been increasing significantly.  Our 
investment in dollar terms doubled in 2008 compared to 2007.  The total amount of two-way trade 
between us was valued at 5 billion US dollars in 20 08, nearly 64 per cent more than in the previous 
year.  Within this, Brazil's exports to us and our  exports to Brazil were both up by similar amounts, 
again about 64%.  These figures have demonstrated c onclusively to us that Brazil is our Number One 
trading partner in Central and South America, a nd there should be even greater cooperation between 
us in the future. 
91. Furthermore, we all know that Brazil has been playing a key role in the DDA negotiations.  
My delegation often finds itself sharing similar views with Brazil on a number of the key issues, 
including anti-dumping and environmental goods and services.  In fact, as a proponent ourselves of 
the negotiations on environmental goods and services, we  are pleased to see that Brazil is so keen on 
getting bio-fuel liberalized.  This being said, we would like to encourage Brazil to demonstrate the 
kind of leadership that is going to be necessar y to get these 7-year-old DDA negotiations moving 
forward again. 
92. In the written questions that my delegation sent to Brazil in advance, we have already asked 
about any relevant measures it has taken in response to  the financial storm, as well as its main trade 
objectives and trade-related regula tions.  We have also requested details of its programme of 
privatization of State-owned enterprises, and certain  measures in the energy sector.  We thank Brazil 
for its answers to our questions, which have just been received. 
INDIA 
93. Brazil plays a very important role in the global economy. It is Latin America’s largest market, 
ranks fifth in the world in size and population and is  the world's tenth-largest economy in GDP terms.  
Brazil accounts for 22% of the world’s arable land and nearly 20% of its fresh water resources. The 
country utilizes only 5.7% of its arable land, which has sufficed to catapult it to the ranks of the 
world’s top exporters of a number of agricultural produc ts.   In the years to come, Brazil is sure to  WT/TPR/M/212 
 Page 15 
 
 
  play a pivotal role in global food security. Braz il has an advanced industrial base and industrial 
production accounts for an important part of the GDP. The recent discovery of huge offshore oil 
reserves has the potential to transform Brazil’s economy in the near future.  
94. Brazil has followed prudent monetary and fiscal  policies and deepened structural reforms 
over the last decade.  These policies have enabled Brazil to achieve a higher growth trajectory in the 
last few years. The US$45 billion FDI that Brazil received last year is obviously a result of the 
confidence it enjoys in global markets due to its  sound macro economic management. Brazil’s overall 
growth during 2008 is its highest since 1994.  However, as has been pointed out in the Secretariat report, the global economic downturn has also affect Brazil and the outlook for the current year  is 
less robust.  The present crisis has taught us ma ny lessons – the need for diversifying our export 
profiles and destinations, the value of strong institu tions based on national priorities and not subject to 
the transitory whims of western orthodoxies, th e value of domestic demand in reducing economic 
volatility, the increasing role of emerging economies in global economic stability an so on.  I am sure these lessons have not been lost on Brazil. 
95. Brazil is an important member of the multila teral trading system and has made a vital 
contribution for the establishment of a fair and balanced global economic system, which can foster 
development and mitigate poverty worldwide.  We ar e pleased to have partnered Brazil in establishing 
the G-20 which has played a central role in setting the agenda for the negotiations on Agriculture, an 
issue which is vital in delivering on the development mandate of the Doha Round. Since its establishment, the G20 has provided the middle gr ound on most issues in the negotiating agenda on 
Agriculture through its high quality technical work and consensus building.  Brazil has played a vital 
leadership role not only in the G20 but in all areas of the negotiations. 
96. India and Brazil share historic relations. Between the 16
th and 18th centuries, Brazil and Goa, 
both outposts of the Portuguese colonial outreach, ha d bilateral exchanges wh ich found reflection in 
the flora and fauna, food and dress as well as folk traditions of Brazil. The interesting similarities 
between folk traditions of Boi Bumba in the north of Brazil and the Pokam Kudharai of South India, 
for instance, draw attention to the strong under cu rrents of cultural and popular exchanges that have 
taken place in the past. India’s contribution to farmi ng in Brazil is a lesser known facet of our bilateral 
relationship. An important part of  Brazilian cattle livestock is of Indian origin.  The ‘Ongole’ strain 
from Andhra Pradesh led to the production of the variety ‘Zebu’ known in Brazil as ‘Nelore’.  
97. India and Brazil’s shared vision of the evolvi ng global order has enabled forging of close 
cooperation and coordination in the multilateral arena in the WTO as we ll as in other organizations. I 
can assert with confidence that our joint emphasi s on strengthening multilateralism with a growing 
role for developing countries will continue in th e foreseeable future. The transformational diplomacy 
being attempted in the framework of IBSA is another aspect of this collaboration. 
98. The multifaceted strategic partnership between  India and Brazil is built upon a strong 
institutional architecture. Several agreements cove ring a wide range of areas including defence, space, 
science & technology, trade, industry, agriculture, tourism and culture have been signed between our 
2 countries. Regular high level bilateral visits have provided a sustained impetus to the growing 
relationship. President Lula has visited India thrice since 2004. The first foreign visit by the President 
of India Smt. Pratibha Patil was to Brazil in Ap ril, 2008 during which 4 impor tant agreements were 
signed. 
99. Trade between India and Brazil reached US $ 4.66 billion in 2008 registering a 33% growth 
over the previous year. India’s imports were US$ 1.10 billion and exports from India stood at US$ 
3.56 billion.  WT/TPR/M/212 
Page 16  
 
  100. Infrastructure development represents an ar ea of important economic interaction as both 
countries seek to upgrade their infrastructure. As pa rt of the process of intensification of economic 
ties currently underway, Indian petroleum major ONGC Videsh acquired a 15% stake by investing 
US$ 410 million in an offshore oil block in So uth-East Brazil. GAIL and Petrobras signed a 
cooperation agreement in 2006. The same year TATA  Motors and Marcopolo of Brazil formed a joint 
venture company in India for body building of buses and coaches.  
101. India has been seeking to deepen its regi onal cooperation with Latin America and the 
Caribbean. As a part of this endeavour, Indi a signed a framework agreement with Mercosul. 
Subsequently, a preferential trade agreement was signed with the trading bloc which we hope will 
soon be operationalised. Efforts are underway to broa den and deepen the India-Mercosul PTA and to 
link it, under IBSA, to SACU as well. 
102. My delegation has posed several advance written  questions to the delegation of Brazil and I 
thank them for the responses provided this morning. I do not wish to go into  details here but would 
like to highlight some important issues. 
103. Many Indian pharmaceutical companies have set up joint ventures in Brazil.  We have been 
informed that the registration/licensing process in Brazil is very lengthy and cumbersome. The 
pharma companies operating in Brazil require regi stration with the National Health Surveillance 
Agency (ANVISA).  Indian companies also requi re a product license from ANVISA to export their 
products. ANVISA annually inspects the manufacturing plants and renews the license of the importers.  This often turns out to be a complicated  procedure with frequent delays in inspection by 
the ANVISA team and the consequent delays in renewal of the license, pending which the goods of 
the company cannot enter Brazil. 
104. Brazil has, over the last two years, initiated a number of antidumping/anti subsidy 
investigations against imports from India on produ cts like PET films, jute yarn, viscose yarn and 
bicycle tyres.  While Brazil is certainly entitle d to take legitimate trade remedial action when 
circumstances so warrant, the range of these inv estigations has caused apprehensions among Indian 
exporters.   
105. Indian businessmen visiting Brazil have also info rmed us about delays in issuance of Business 
visas by Brazil’s Embassy in New Delhi.  Indian Ph arma and IT companies which have operations in 
Brazil have also reported delays in issuance of work visas for their India based employees to be 
stationed in Brazil. 
106. India has also requested that customs procedures for export of automobile parts to Brazil need 
to be simplified to avoid delays and penalties. Each consignment reportedly requires an import license 
and has to fulfil a number of procedural requirements. 
107. We hope Brazil will address these issues exped itiously to enable our bilateral economic 
relations to reach their true potential. 
SWITZERLAND 
108. My remarks will cover three points: our b ilateral economic relations, Brazil’s domestic 
economy, as well as its trade policy. 
109. First, our bilateral relations:  Brazil is Switzer land’s most important partner in Latin America. 
Since 2004, our economic relations have strengthened considerably : our trade almost doubled and 
Swiss investment reached a stock of USD 30 b illion, Brazil thereby becoming one of our most  WT/TPR/M/212 
 Page 17 
 
 
  important FDI destinations. Swiss firms provide over 100’000 jobs in Brazil and play a significant 
role in several sectors.  
110. Considering Brazil’s growth potential and its increasing importance for the Swiss economy, 
the Swiss government adopted a foreign economic st rategy for Brazil in 2006. It aims at further 
strengthening our trade and investment relati ons. Topics dealt with under a Joint Economic 
Commission cover inter alia  double taxation, scientific cooperation,  exchange of trainees, intellectual 
property rights and overall business conditions. The next  meeting will take place in March in Brazil. 
111. Second, the Brazilian economy:  We have noted with satisfaction the good economic 
performance of the last years and the significant pr ogress toward the Millenni um Development Goals. 
We would like to point in particular to the ri gorous macroeconomic policy, the foreign exchange 
liberalisation and the diversification of trading part ners toward new markets in Asia and the south in 
general. These achievements were duly recognized, Brazil being granted „investment grade“-status by 
two major rating agencies in the spring of 2008.  
112. Meanwhile, the international financial crisis  and the worldwide recession have seriously 
affected Brazil. The strong depreciation of the Brazilian real against the US-dollar since last 
September did not prevent exports from declining si gnificantly during the last quarter of 2008. This 
points to the need for continued improvement of  international competitiveness and for internal 
reforms in areas such as taxation, la bour legislation or education.  
113. Third, Brazil's trade policy: We note with satis faction that Brazil is taking steps to simplify 
and modernize its customs procedures. On the othe r hand, Switzerland is concerned about the increase 
in tariffs on some non-agricultural products and the significant difference between applied and bound 
tariffs. Regarding other charges affecting imports, we note the complexity of the Brazilian taxation 
system, with four different taxes levied on impor ts, not only varying between different groups of 
goods, but in some instances also from one State to  the other. Switzerland would like to encourage 
Brazil to simplify its taxation system and improve its transparency. 
114. With regard to services, though Brazil took part in the negotiation on financial services, it has 
still not ratified the Fifth Protocol . We understand that changes in internal legislation would now 
make a ratification possible. Since the implementati on of what has been negotiated is central to the 
credibility of the multilateral system, Switzerla nd would very much welcome such a step.  
115. Referring to intellectual property, we take not e with satisfaction that Brazil passed new 
legislation on layout designs of integrated ci rcuits. Switzerland also commends the Brazilian 
government for its efforts to foster national publ ic policies in order to strengthen the domestic 
environment for innovation. We hope  that this positive approach w ill also be reflected in Brazil’s 
position on IP issues in international fora. On the other hand, we are concerned about the average 
pendency time for patents of seven years and the sh arp decrease in patents granted annually since 
2003. 
116. Finally, owing to the importance of governme nt procurement and the advanced regime in 
place, Switzerland would like to encourage Brazil to join the GPA. Procurement costs could be further 
reduced through international competition and domestic producers would gain improved access to 
GPA member markets. 
117. Let me conclude, by emphasizing Brazil’s economic  achievements, which were rewarded i.a. 
with important FDI inflows. Still, there remains a need to vigorously pursue domestic reforms in order 
to increase economic efficiency. Switzerland shares  with Brazil a strong interest in a successful 
conclusion of the Doha negotiations and commends Brazil’s active participation in the Round as well 
as its commitment to the multilateral trading system. WT/TPR/M/212 
Page 18  
 
  COSTA RICA 
118. Firstly, Costa Rica acknowledges the importance a ttached by Brazil to the multilateral trading 
system as a pillar "for the establishment of a fa ir and balanced global economic system, which can 
foster welfare and mitigate poverty worldwide" and as "a means to avoid the risky path of 
protectionism"
1, as Brazil has stated in its Report.  My country shares this vision and welcomes the 
efforts made by Brazil to achieve ambitious results  in the negotiations on agriculture in the Doha 
Round by phasing out all trade-distorting subsidie s and broadening market access for agricultural 
products, objectives that we share as a member of the Cairns Group.  We also wish to draw attention 
to the leading role played by Brazil in the negotia tions on anti-dumping, trade and the environment, as 
well as in the review of the Understanding on the Settle ment of Disputes, to mention just a few issues. 
119. Costa Rica would like to highlight Brazil's strong economic growth since the previous 
Review, particularly during the last quarter of 2008, when it was 6.8 per cent, even though the first 
effects of the global financial crisis were startin g to be felt.  Equally impressive has been the 
expansion of Brazil's trade with the rest of th e world between 2004 and 2007, an increase of 76 per 
cent over this period.  This growth, together with effective social policies, has allowed poverty to be 
alleviated and an improvement in the social indicators for education, health and employment. 
120. In addition, the Secretariat's Report also men tions some less positive aspects of Brazil's trade 
policy.  My delegation would like to express its surprise, in particular, at the increase in tariff 
protection in Brazil, from an average MFN applied rate of 10.4 per cent in 2004 to 11.5 per cent in 2007, which has particularly affected  industrial products.  We hope that  this trend will be reversed in 
the near future so that it does not turn into an obs tacle with a view to mitigating the impact of the 
crisis.  We have also noted the use of non-automatic  licensing, which applies to one third of all tariff 
lines and we hope that any form of protectionism will be eschewed when using it. 
121. From the trade standpoint, bilateral trade betw een our countries has also  increased in recent 
years.  The figures for 2007 show a 20 per cent in crease in bilateral trad e since 2004, rising to 
US$444 million in 2007.
2  Of this amount, the largest share corresponds to imports from Brazil, which 
account for 3.2 per cent of my country's total impor ts, whereas Costa Rica's exports to Brazil only 
account for 0.3 per cent of total exports.  Costa Rica  hopes that this relationship will become stronger 
and continue to grow. 
122. My delegation submitted a series of questions to  Brazil in connection with this Review of 
trade policy regarding technical regulations, as well as sanitary and phytosanitary measures.  I should 
like to thank the delegation of Brazil for addressing these questions. 
HONG KONG, CHINA 
 
123. Hong Kong, China enjoys harmonious bilateral trad e relations with Brazil.  Our trade grew by 
an annual average rate of 19.4% between 2004 and 2008. Brazil ranks 1st among Hong Kong, China’s 
trading partners in Central and S outh America, and we believe that there is great potential for further 
expansion of trade between the two places. 
124. Going into specific areas, we first wish to r ecord our appreciation that Brazil has bound 100% 
of all its tariff lines. However, we note, as have ot hers this morning, that there was an increase in 
Brazil’s simple average applied MFN tariff from 10.4% in 2004 to 11.5% in 2008, mainly due to an 
increase of 1.1% in the average tariff of non-agricu ltural products. In additi on, there is still a gap 
between Brazil’s applied rates, averaging 11.5%, and bound rates, averaging 30.2%.  This imparts 
                                                      
1 Report of Brazil:  WT/TPR/G/212, paragraphs 4 and 2, respectively. 
2 http://www.comex.go.cr/.  WT/TPR/M/212 
 Page 19 
 
 
  unpredictability to Brazil's tariff regime. The Secretar iat’s report also pointed out that there are signs 
of tariff escalation in most industries in Brazil. We would therefore like to encourage Brazil to 
consider improving these aspects and further accelerate its trade liberalization efforts by:  reducing the 
average MFN applied tariff rates;  reducing the large gap between its  average bound and applied rates;  
simplifying its rather complex internal taxes le vied on imports and removing any discriminatory 
elements in these taxes. 
125. On technical regulations and standards, we are encouraged to note that Brazil has introduced a 
Good Regulatory Practices Guide in 2007 to enhance transparency and consistency in the process of 
adopting technical regulations. We also note that  Brazil has actively engaged in development of 
multilateral recognition agreements on conformi ty assessment, certification and accreditation, 
memoranda of understanding and co operation agreements with a number of countries. These 
initiatives help facilitate international trade flow s. We also welcome the annual review being 
conducted by the Brazilian authorities of standards older than five years to ensure they are up to date. 
126. According to the Secretariat’s Report, a larg e number of Brazilian agencies issue technical 
regulations at federal level, but no statistics were available to the WTO Secretariat on the number of 
technical regulations currently in force, or on the number of such regulations which have been 
notified to the WTO. We would therefore urge Brazil to enhance the clarity and transparency of its technical requirements. 
127. Furthermore, we note that, since its last tr ade policy review in 2004, Brazil has developed 
about 2,130 standards, of which only some 38% we re adopted directly from ISO or IEC standards. 
The remainder were either purely domestic initiatives or adaptations of international standards. As 
compliance with the Brazil-only standards brings extra costs to overseas manufacturers, we would 
like to encourage Brazil to step up its efforts in harmonizing its national sta ndards with international 
ones. 
128. Concerning state trading enterprises, we note that  Brazil has not made any notification to the 
WTO in accordance with Article XVII of the GATT since 1997, and would ask Brazil to improve its notifications in order to provide greater  transparency to its trading partners. 
129. Turning to Agriculture, we would like to commend Brazil for its relatively low level of tariff 
protection on agricultural products and would al so encourage Brazil to keep refraining from 
implementing any trade-distorting support measures. 
130. We appreciate Brazil’s active engagement and fl exibility in the agriculture negotiations. We 
look forward to Brazil’s continued de monstration of leadership in working with other key players to 
thrash out the outstanding issues in those negotiations. 
131. On Services, we note from the reports by Brazil and the WTO Secretariat that Brazil’s 
services sector constitutes a major part of its econom y, accounting for almost two-thirds of its GDP in 
2007 and nearly 80% of formal jobs distribution in  2006. Given the importance of this sector, we 
would appreciate Brazil’s continued effort to liber alize trade in services, which would be highly 
beneficial to its further economic growth. 
132. We note that Brazil has, on top of its Urugua y Round commitments, proposed to introduce 
some new or improved commitments in its services o ffers in respect of certain sectors, such as 
telecommunications, financial services and transport services. We look forward to Brazil’s continuing 
contribution in this direction through the inclus ion of additional improvements for major services 
sectors in its next offer. WT/TPR/M/212 
Page 20  
 
  133. Specifically on maritime transport services, although Brazil did not make any commitment in 
this sector in the Uruguay Round, we are pleased to note that it has made an offer in the current 
negotiations to undertake commitments in this sector . Given the importance of the maritime transport 
services sector to Brazil and to global trade, we  encourage Brazil further to remove or reduce the 
limitations and MFN exemption. 
134. Finally, we would like to applaud Brazil's ac tive participation in the Rules negotiations. 
Brazil and Hong Kong, China share the same objectives of clarifying and improving the Anti-dumping Agreement. In pursuance of such objectives and with the intention of reducing the arbitrary 
application of anti-dumping measures, Hong Kong, China and Brazil have, together with other 
Members, jointly submitted a number of proposals on various issues, including sunset reviews, lesser 
duty and zeroing. We look forward to continued cooperation with Brazil and other Members with a 
view to bringing the negotiations to a fruitful conclusion. 
135. Hong Kong, China and Brazil share the same  objective of strengthening the multilateral 
trading system. We are very appreciative of Brazil’ s commitments and its constructive participation in 
the DDA negotiations. The team led by Ambassador Roberto AZEVEDO here in Geneva plays an 
active role in the Doha negotiations. We commend th eir work and hope all such efforts can contribute 
towards a successful conclusion of the Round.  
136. Hong Kong, China has posed a number of ques tions in connection with the current trade 
policy review. We are grateful for the responses pr ovided by Brazil this morning and will consider 
them carefully.  
ARGENTINA 
137. The Secretariat's Report shows us a Brazil that continued to experience sustained growth of 
around 4.5 per cent between 2003 and 2007 with a peak of 6 per cent in 2008, based on 
macroeconomic policies that yielded fiscal surpluses and controlled inflation.   This situation has 
enabled national per capita income to rise and has led to a sharp decrease in the unemployment rate, 
as well as a higher level of human development.  Rega rding the latter, I should like to draw attention 
to the fact that in the Government of Brazil's Report there is a section on production and employment 
that is similar to that provided by Argentina in  its TPR for 2007.  We both share the same concern 
about the role and impact of trade on employment. 
138. Regarding Brazil's trade policy, there has been a notable expans ion and geographical 
diversification of its exports and imports, the fo rmer having increased by 120 per cent over the period 
2003-2007 while the latter rose two and a half times more  in 2007 than in 2003, and this is confirmed 
not only in the Secretariat's Report but also  in that of the Government of Brazil. 
139. The delegation of Brazil has a high profile in  the Doha Round negotiations and shares the 
views of our country regarding various issues in this Round.  Brazil will undoubtedly continue to 
contribute towards the achievement of a balanced outcome that gives priority to development and 
facilitates employment for all Members of this Orga nization.  The Round cannot continue to disregard 
the most important economic financial crisis that is  affecting employment and millions of workers.  
The year 2009 is not 2001. 
140. Bilateral relations between Argentina and Braz il obey a broad agenda that is varied and 
covers numerous issues:  political, economic and trad e, security and social issues, regarding which 
MERCOSUR is for both our countries the major preferential agreement linking us.  WT/TPR/M/212 
 Page 21 
 
 
  141. Brazil takes 19 per cent of our exports and is the origin of 31 per cent of our imports.  There 
has been a considerable increase in trade flows since 2003 and they reached a record level of 
US$31.201 billion in 2008. 
142. Although total bilateral trade exceeds this figur e, it should be emphasized that flows in both 
directions fell sharply from the month of October onwards as a result of the current global financial 
crisis, which has a marked impact on expectation th at our trade flows will continue to increase.  
Suffice it to say that total bilateral trade in Ja nuary 2009 compared with the figure for 2008 fell by 
52 per cent, a highly significant decrease. 
143. We have once again listened to several statemen ts and use of the word "protectionism".  
Brazil has been reminded of the disastrous impact of the 1.5 per cent increase in its tariff, as well as 
the adoption of certain illegal anti- dumping measures.  In the situati on in which the world finds itself 
today and in view of the shameful protectionist  measures taken by some Members, giving massive 
subsidies to banks and industries, we have careful ly noted the concern of some Members at Brazil's 
increase in tariffs on certain products. 
144. I should like to express my gratitude for the rep lies given to us by Brazil, which we shall 
study with care, and we wish Brazil the utmost su ccess in this new analysis of its trade policy. 
NEW ZEALAND 
145. New Zealand and Brazil cooperate closely in the WTO. New Zealand values the leadership 
role played by Brazil in the Doha Round negotiations .   As members of the Cairns Group, we share a 
desire for an ambitious outcome in the agriculture negotiations. We look forward to further leadership 
from Brazil across the agenda of the Round. 
146. New Zealand would also like to acknowledge Br azil’s position on the importance of keeping 
markets open in the current global financial cris is.  We appreciated the decision of the Brazilian 
Government in January to suspend policy which would have re-introduced non-automatic import 
licensing requirements for an estimated 70% of Br azil’s imports.  New Zealand firmly supports the 
Brazilian Government’s commitment to preventing a return to protectionism. 
147. We note our appreciation that, in contrast with the international norm, Brazil’s average tariff 
on agricultural products is lower than that on non-ag ricultural products (albeit with dairy products a  
notable exception). 
148. Within this generally positive context, howev er, there nonetheless remain some aspects of 
Brazil’s trading regime (including the many non-tariff charges outlined in the Se cretariat’s report) that 
could still be improved. We note that the areas of cu rrent concern are almost exactly the same as those 
we raised during Brazil’s Trade Policy Review in 2004.  New Zealand urges Brazil to make 
improvements in this area a priority for the period ahead, including in particular:  the removal of the 
remaining non-automatic import licensing requirements (covering about one third of tariff lines);  the 
reduction of tariff escalation in key industries;  c ontinued improvements in customs procedures;  and 
improvements in technical regulati ons and standards requirements. 
149. Others have noted Brazil’s active use of anti- dumping.  New Zealand has some concerns in 
that regard, which we will explore bilaterally. 
150. Brazil’s trade policy is an important factor in realising its economic potential – much has been 
achieved, but more can be done.  New Zealand is plea sed to participate constructively in this review, 
with the aim of promoting a more open trade e nvironment, including between our two countries. WT/TPR/M/212 
Page 22  
 
  UNITED STATES 
151. We would like to recognize the excellent work of the Secretariat and the Government of 
Brazil in compiling the reports before us.  The reports thoroughly detail Brazil’s key trade policy 
objectives since the government’s last review in 2004, and they give us a more complete picture of 
Brazilian policies affecting trade.  We also appreci ate the responses to our questions, which we will 
be examining closely.  We look forward to learning more about Brazil’s trade policies in this session.  
I would also like to take this opportunity to th ank the discussant, Ambassador Muhamad Noor Yacob, 
for sharing his thoughts with us in the context of Brazil’s TPR. 
152. The United States has always viewed Brazil as a valuable partner in the western hemisphere.  
The ties between our two nations ha ve expanded over the years with in creased trade, capital flows, 
cross-border investment, and a wide range of educati onal, health, scientific and other joint activities.   
153. Brazil and the United States face many common ch allenges.  Primary among them is the need 
to stimulate economic growth in the face of the current global economic downturn without resorting 
to protectionist policies.  President Obama has spoke n clearly about the need to avoid protectionism in 
response to the financial crisis, and we suppor t Brazil’s commitment to the November 2008 G-20 
pledge to refrain from raising new ba rriers to trade.  In that respect , we were pleased to note that the 
members of Mercosur chose not to raise the tr ade bloc’s common external tariff on a number of 
products during its December 2008 summit in Brazil. 
154. Clearly, Brazil has become a true global trader, and this year’s report recognizes the 
considerable diversity in the geographic distributio n of Brazil’s exports and imports.  Focusing for a 
moment on our bilateral trade, we note that two-way U.S. goods and services trade with Brazil 
totalled $64 billion in 2007 (latest data available).  Brazil is currently our 11th largest trading partner 
in goods with $63 billion in to tal (two-way) goods trade during 2008.  Brazil was the United States’ 
ninth largest goods export market and 16th largest s upplier of goods in 2008.  Overall, U.S. goods 
imports from Brazil are up 51% over the last 14 years (since the conclusion of the Uruguay Round).   
155. The picture was also encouraging for U.S.-Braz il services trade during the period of review.  
U.S. exports of private commercial services to Braz il were $9.8 billion in 2007.  Brazil’s supply of 
private commercial services to the United States was $4.0 billion in 2007, up 339% from pre-Uruguay 
Round levels.  Business, professional, and technical services, as well as telecom services, led U.S. 
services imports from Brazil.  Although Brazil pa rticipated in the WTO GATS negotiations on 
telecommunications, the government did not ratify th e Fourth Protocol on telecommunications.  The 
United States encourages Brazil to reconsider its decision in light of its international commercial 
presence. 
156. We are pleased to note Brazil’s steps toward simplifying and modernizing its customs 
procedures, though much work remains.  We have  appreciated the opportunity to provide technical 
assistance to the Brazilian government regarding best practices in facilitating trade, and we hope that 
Brazil will remain committed to this objective.   
157. The significant economic growth experienced in Brazil during the 2003-2007 period is 
slowing due largely to the global economic and fina ncial crisis.  Despite the difficult international 
context, we are convinced that Brazil would benef it from continuing its efforts to give additional 
momentum to liberalized trade and investment policies, including eliminating the use of import prohibitions and lowering effective tariff protecti on that, the Secretariat’s Report notes, increased to 
11.5% in January 2008.  
158. In our view, there are some specific areas where Brazil could take action to improve its trade 
and investment regime for the purpose of creati ng additional growth and development opportunities.  WT/TPR/M/212 
 Page 23 
 
 
  We have covered many of these areas in our questio ns but I would like to to uch briefly on some of 
them here today.  For example, we would call a ttention to Brazil’s difficult import licensing regime 
(which some others have referred to), its questi onable SPS measures, the fact that as yet it has not 
joined the WTO Government Procurement Agreement (GPA) and shortcomings in some areas of IPR 
protection and enforcement.  
159. A myriad of U.S. exporters continue to ra ise concerns about Brazil’s extensive import 
licensing regime.  We understand that Brazil al ready requires both automatic and non-automatic 
licenses for a large number of products that the Secretariat estimates cover 35.8% of all Brazilian 
tariff lines.  Notwithstanding Brazil’s efforts to co mputerize and streamline its system, individual 
ministries continue to administer import licen ses without regard to the provisions of the WTO 
Agreement.  We raise this issue constantly in both capitals, and now again in Geneva.  Also, we 
would like to know where the government publishes the necessary detailed information regarding 
import licensing procedures across the entire range of  ministerial import permits that are not notified 
or listed in Brazil’s submissions to the Import Licensing Procedures Committee.  We have also been advised that the approval of import license applicati ons involving products from certain sectors, in 
practice, takes longer than the 30-60 days prescr ibed by the WTO Import Licensing Agreement.   
160. Most recently, we have received reports that Brazil had been planning to impose new import 
licensing requirements on a much broader list of goods .  While we understand that this proposal was 
overturned, we are, nonetheless, concerned that Br azil may still be planning to expand the list of 
products subject to import licensing.  The United St ates would be grateful to know Brazil’s current 
thinking on this issue. 
161. The Secretariat’s report makes multiple assertions that Brazil’ s sanitary and phytosanitary 
measures are strongly based on international standard s and guidelines.  However, significant issues 
remain that involve the government’s restrictions  or prohibitions of Brazilian imports of U.S. 
agricultural and food products.  Ou r concerns include access to Brazil’ s market for such items as U.S. 
poultry meat and table eggs; wheat, and cattle; and, beef and beef products.  We are interested in 
learning about Brazil’s achievements since the last re view, especially with regard to conformity with 
international practices and guidelines on SPS measures. 
162. We are also concerned with Brazil’s non-tran sparent policies on government procurement as 
well as its lack of participation in the WTO GPA.  We agree with the Secretariat’s conclusion that 
Brazil ought to consider the benefits of joining the GPA inasmuch as membership “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 Braz ilian firms that could realistically compete for 
contracts in foreign markets.” 
163. We want to acknowledge the important progr ess that Brazil has made in enhancing the 
effectiveness of intellectual property rights enforcem ent, particularly with respect to pirated audio-
visual goods.  Nonetheless, shortcomings in some areas of IPR protection and enforcement continue 
as obstacles to U.S. exports and investment.  In  particular, the United States encourages Brazil to 
strengthen its IPR enforcement legislation, take  more vigorous action to address book and Internet 
piracy, and consider acceding to and impl ementing the WIPO Internet Treaties.  
164. We welcome the priority that the Brazilian gove rnment attaches to the multilateral trading 
system as the main pillar of its trade policy.  Th e Secretariat advises that Brazil conducts more than 
seventy-five percent of its trade with MFN trading partners.  We are encouraged by Brazil’s active 
participation in the WTO, but call upon the governme nt to take on the additional responsibilities that 
come with its increased influence in the global economy.  Brazil is well positioned as a “genuine” world trader to help ensure that a ll markets remain open for business.   WT/TPR/M/212 
Page 24  
 
  165. The United States recognizes that Brazil, in addition to its active participation in the WTO, is 
a leading force among developing countries, in par ticular in the context of the Doha Development 
Agenda (DDA).  While we appreciate Brazil’s activ e role in the negotiations, we are, nonetheless, 
disappointed that the government has not pursued a bolder outcome.  In light of Brazil’s position as one of the fastest growing economies, we urge th e government to make commitments that result in 
meaningful new trade flows in all three pillars of  the negotiations, and contribute to an ambitious 
conclusion to the negotiations.  
166. One area where we see bolder action from Brazil is  in the fisheries subsidies negotiations.  
The United States appreciates the leadership Braz il has shown in these negotiations and hopes that 
such leadership will not only continue but also w ill spill over into other negotiating areas.  As a Friend 
of Fish, we have worked closely together through the years to achieve an ambitious outcome, based 
upon a strong prohibition, with appr opriate and effective special and differential treatment that would 
not undermine the overall disciplines and contribute to the further exhaustion of marine resources. 
167. In closing, the United States appreciates the importance that Brazil places on continuing to 
ensure that the global trading order remains ope n.  I would like to express my Government’s 
expectation that, going forward, Brazil will continue  to pursue further reforms and open markets that 
enable it to reap the benefits of expanding trad e and global economic opportunity.  In addition, we 
welcome further cooperation on trade matters with our Brazilian coll eagues both here at the WTO and 
in the context of our grow ing bilateral relationship. 
TURKEY 
 168. Brazil has undertaken a pivotal role in the Doha  Round. The range and depth of contributions 
by Ambassador Azevedo and his team to the Doha Round and various bodies of the WTO are 
impressive and useful. 
169. We have posed a few questions to Brazil. We thank in advance for their responses. Taking 
this opportunity, we also would like to remark on a few issues.  
170. We face common developmental challenges with Brazil. Despite some structural difficulties 
like very high domestic interest rate spreads, in  recent years, both countries achieved very dynamic 
economic performances with enha nced macro economic stability, strong growth rates and increased 
export capabilities in terms of new markets and products.  
171. This achievement resulted in higher per capita  income and better living conditions for our 
people and greater role for our countries in the world economy. However, the job is not done, yet. 
172. Both countries are now striving to put this dyna mism on a more sustainable basis. We believe 
that founding stronger trade relationships  will be pa rt of the solution, particularly, in face of the 
current economic difficulties.  
173. Since its last review, Brazil has achieved importa nt expansion to different markets, becoming 
“a global trader” as noted at the Secretariat’s Report.  Developments in the Turkish-Brazilian bilateral 
trade are no exception. Businessmen from both countries have begun to harness the enormous 
potential in both countries.  
174. The two way trade between Turkey and Brazil incr eased by more than three times in the last 
four years, reaching 1,7 billion dollars.  
175. In the said period, our imports from Brazil doubled  to 1,4 billion dollars as Brazil has become 
a major raw material supplier for the Turkish steel industry.   WT/TPR/M/212 
 Page 25 
 
 
  176. In the meantime, our exports to Brazil almost trip led. This is in parallel to the faster import 
growth recorded in Brazil as noted by the Secretariat.  
177. We increased our exports of steel products almost ten times compared with 2006. However, I 
must also point out that our export figure is low as 320 million dollars.  
178. Increased bilateral trade between the two count ries is also a good reflection of the potential 
existing in the south-south trade. The major hurdle is still the average high tariffs.  
179. We believe that a free trade agreement to be signed between Turkey and MERCOSUR will 
help overcome this problem, and ensure highe r volume of trade between our countries.  
180. To this end, we signed with MERCOSUR the framework document in June 2008, laying the 
ground for the negotiations and, we held the firs t round of negotiations in November 2008. We are 
ready to conclude the negotiations in the shortest  possible time and, we urge the Brazilian authorities 
and other members of MERCOSUR to fasten the negotiations.  
181. We are also pleased that the Turkish-Brazilian Business Council has been active for the last 
two years, supporting the networking between  business communities in both countries.  
182. In the meantime, I also would like to inform th e Brazilian delegation that the Turkish Airlines 
is expected to start direct flights to Sao Paolo th is year. This will very much facilitate the contacts 
between our businessmen.  
183. Since its last review, with regard to customs duties, despite slight increase for certain groups 
of product last year, Brazil has continued gradual lib eralization and moderniza tion of its trade regime, 
moving towards greater transparency and predictability with fewer import restrictions. 
184. This has resulted in a simpler trade regime with  an average applied tariff rate of 11,5% as the 
highest rate was reduced from 55% to 35% over the last four years.  
185. However, we agree with the Secretariat’s opi nion that reducing the ga p between applied and 
bound tariff rates will further enhance the pr edictability of the Brazilian trade regime. 
186. Given this gap and the current economic crisis, we certainly appreciate that Brazil has not 
resorted to any major protectionist measures until now.  We hope that Brazil will  keep its stand against 
protectionism, and encourage other MERCOSUR memb ers not to resort to future protectionist 
measures.  
187. Despite the considerable steps to  ensure transparency, we must also point out that almost one 
third of all eight digit tariff lines still requires au thorization from different government agencies prior 
to shipment.  
188. Thus, the import licensing system in place still continues to be a major concern for the 
Turkish exporters. It covers a large number of tari ff lines and, particularly with regard to consumer 
goods, it may be difficult to obtain them.  
189. In some cases, like automotive products, ther e are also special licensing provisions. We 
certainly look forward to the efforts by the Braz ilian authorities to ease the licensing regulations as 
part of further liberalization of trade regime in the future. 
 WT/TPR/M/212 
Page 26  
 
  JAPAN 
190. Let me start with economic policy. Japan welc omes Brazil’s favourable economic and trade 
environment since the previous review. This has been lead by strong domestic demand such as robust 
personal consumption and accelerated private investme nt due to the soaring prices of resources. Its 
trade surplus had been expanding until 2007, mainly due to efforts of export promotion by the public and private sectors and the strong performance of prim ary commodities. Japan also notes that inflation 
rate has been kept at a low level through the moderate economic policy under President Lula, 
including financial and fiscal restraints. While majo r countries have significantly lower interest rates 
to avoid further economic deterioration under the curre nt financial crisis, Brazil has been reducing its 
rate slightly to 12.75%. Japan we lcomes that recently announced wider consumer price index (IPCA) 
in 2008 was 5.90% which is within the range  of the government's inflation target. 
191. Following the global financial crisis in 2008, how ever, the Brazilian economy is expected to 
stall. The outflow of foreign capital has become s ubstantial so that there is a growing feeling of 
tightness in the financial market. Both trade and th e current account surplus have sharply reduced in 
2008, which are likely to be particularly affected by the falling prices of primary products. Bearing 
this in mind, Japan would like Brazil to indicate the prospects of its economy and trade in 2009 and 
possible measures to cope with this economic turmoi l in order to maintain sustainable development. 
192. On economic bilateral ties between Japan and Brazil, Japan is pleased to mention that the 
recent economic relationship between the two countries enjoys furthe r impetus to its upward trend. 
The year 2008, the 100th anniversary of Japanese immi gration to Brazil, was a critical turning point in 
our bilateral relationship. Japan regards Brazil as an important global partner in the economic sector, 
aiming at building a complementary relationship at a high level beyond the trading of natural 
resources and investment to import substituting industries. 
193. Recently, the framework of intergovernmental cooperation on bilateral economic relations has 
been strengthening. It was agreed to establis h the Joint Committee of Trade and Investment 
Promotion when the then Minister of Economy, Trade and Industry Amari, visited Brazil in July 
2008. The first meeting was held on the 20
th of February this year. In addition, both governments have 
held active discussions on various fields such as digital TV, Biomass and social security.  
194. Bilateral trade and investment have been increasi ng in recent years. Japan is of the view that 
there is much potential and hopes for the further de epening of the trade and investment relationship 
between us. 
195. Let me turn to Brazil's participation in the WT O. Japan appreciates that Brazil attaches great 
importance to the promotion of free trade for su stainable economic growth . I believe no one would 
disagree that Brazil is one of the Members which is  most actively involved in playing a leadership 
role in the WTO system and the DDA. Japan is of the view that, from the perspective of keeping 
Members’ trade policies in accordance with the GATT rules, Brazil is an active user of the dispute 
settlement mechanism. Japan and Brazil are building a partnership as ‘anti-dumping friends’. Both are 
concerned about the abuse of anti-dumping measures, and both aim to strengthen the disciplines of the 
Anti-Dumping Agreement.   
196. Having said that, today Japan would like to touch upon several points with a view to 
strengthening bilateral ties in the future.  
197. Given the seriousness of the current economic situation, it is necessary to promote global 
economic growth through trade expa nsion. In this regard, Japan is concerned about the fact, as the 
Secretariat report mentioned, that the average MFN applied rates increased in Brazil during its review 
period, from 10.4% in January 2004 to 11.5% in January 2008. In order to avoid succumbing to the  WT/TPR/M/212 
 Page 27 
 
 
  temptation of protectionism, Japan hopes Brazil will refrain from raising new barriers to trade and 
investment in Brazil. It is also Japan’s view that the additional import license system, which was 
recently announced and withdrawn, will not be deployed again in Brazil. 
198. With regard to regional and bilateral integrati on, Brazil, as a member of MERCOSUR, is now 
negotiating Free Trade Agreements (FTA) with va rious trade partners including the European 
Communities. It is generally argued that custom s unions and FTAs allow member countries to share 
the fruits of trade liberalization, while non-memb er countries are potentially marginalized by 
relatively disadvantageous conditions. In this cont ext, Japan would like Braz il to keep its customs 
unions and FTAs consistent with the WTO Agreemen t, and not to raise trade barriers to non-member 
countries. 
199. As for participation in the WTO, like other sp eakers, Japan would like to encourage Brazil to 
achieve early accession to the Information Technolog y Agreement (ITA), as well as early ratification 
of the Fourth and Fifth protocols in te lecommunications and financial services.  
200. On FDI, Japan welcomes that the trend of inwa rd FDI in Brazil has increased significantly, 
from 13.1 billion US dollars in 2003 to 34.3 billion US dollars in 2007. At th e same time, Japan has to 
express its strong demand to Brazil to strengthen its IP R enforcement. This is mainly due to the fact 
that complaints about counterfeits have increased  from Japanese companies operating in Brazil. In 
addition, for further improving the investment envir onment in Brazil, it is also worth mentioning in a 
multilateral forum that Japan has raised several issues in our bilateral consultations, such as 
improvement of the transfer pricing system which is not compliant with the OECD standards, and 
shortening the time of customs inspections. 
201. We have submitted a relatively large number of written questions to Brazil within the 
deadline, which clearly illustrates that Japan has a high level of interest in Brazilian trade and 
economic measures. We appreciate Brazil’s utmost efforts to circulate its written answers this 
morning. We will have careful examination of them.  
202. In conclusion, taking this opportunity, Japan woul d like to reiterate its hope that Brazil will 
continue to promote trade liberalization and structur al reform as well as to contribute to the further 
progress of the DDA negotiations, in order to bene fit from the multilateral trading system. Japan 
sincerely hopes that intensive discussion and oral  and written responses today and on Wednesday will 
help us enhance transparency and our mutual un derstanding of Brazilian trade and economic policy. 
ECUADOR 
203. As indicated in the Secretariat's Report, the notable diversification in the geographical 
distribution of Brazil's exports and imports, which increased at an annual average nominal rate of 
approximately 22 per cent and 26 per cent, respec tively, over the period 2003-2007, has meant that 
Brazil's trade has genuine global scope.  Its strong economic growth, at an annual average of 4.5 per 
cent between 2004 and 2007, the diversity of its exportable offer, composed of primary and manufactured goods, and strong external demand are so me of the factors that have allowed Brazil's 
trade to rebound. 
204. Brazil has continually shown itself to be an advocate of recognition of the need for more 
flexible rules for developing countries at the multilate ral level, while at the same time supporting the 
development of South-South trade.  The important role it played in developing the thematic areas and technical assistance and capacity building activ ities that should benefit from cooperation under the 
Aid for Trade Programme needs to be recognized.  Th is is why we remain confident that Brazil is 
strongly determined to continue making its contribu tion to reaffirming the development dimension of 
the Doha Round. WT/TPR/M/212 
Page 28  
 
  205. Brazil is a founding Member of this Organizati on and one of the most active participants in 
the current negotiations, especially in the area of ag riculture, where it coordinates and leads the G-20, 
a group to which Ecuador also belongs, and it is wide ly appreciated for its active participation in the 
negotiations and its balanced proposals regarding a ll the pillars of the negotiations, especially the 
reduction of agricultural subsidies in  developed countries.  We should like to take this opportunity to 
renew our thanks to Brazil for the wo rk it is doing in this sphere. 
206. Regarding its trade policies, attention should be drawn to the relatively low levels of Brazil's 
applied tariffs on agricultural and non-agricultu ral products, 10.1 per cent and 11.6 per cent, 
respectively, as well as the binding of its tariff universe at ad valorem rates.  Despite the foregoing, it 
should be mentioned that there are various domes tic support programmes for agricultural production, 
a sector in which, according to the OECD's cal culations, Brazil's producer  subsidy equivalent 
amounted to an average of 6 per cent in 2005.  Th ere is a similar situation in manufacturing, which 
benefits from government support through lines of  credit, and over the period 2008-2010 these will 
amount to a total of US$116 billion, in addition to  US$3.3 billion in the form of tax exemptions. 
207. In addition, we have noted that Brazil is an active user of anti-dumping measures.  According 
to the Secretariat's Report, at the end of October 2008, 63 anti-dumping measures were in force.  In 
view of the impact which this type of measure has on trade flows and the fact that the Brazilian 
authorities have initiated an investigation for the purpose of applying anti-dumping duties on imports 
of biaxially-oriented polypropylene film from Ecua dor, my delegation has submitted questions to the 
Brazilian delegation regarding the consistency of the initiation of the investigation with the 
Anti-Dumping Agreement and also on other aspects of its trade policy.  We would like to express our 
appreciation for the replies which Brazil gave to ou r questions this morning and in the case of some, 
especially those to which no reply has been r eceived, we would like to insist on an answer. 
208. Regarding bilateral relations , Ecuador and Brazil have cl ose cooperation and friendly 
relations, as can be seen from the many visits which President Rafael Correa has made to 
President Lula.  In the area of trade, however, Ecua dor is concerned at its growing trade deficit with 
Brazil, which amounted to some US$800 million in 2008,  particularly when the product that is the 
subject of the investigation for the purpose of  applying anti-dumping duties by the Brazilian 
authorities is one of Ecuador's major exports.  More over, the bilateral declaration suspends the import 
of crustaceans, one of my country's leading exports , and has been in force for ten years.  In this 
connection, we consider that there are important trade opportunities that could help to stabilize the trade balance between our two countries, for exampl e, the recent granting of preferential tariffs to 
Ecuador under Trade Agreement 59 with MERCOSUR, and lines of credit to finance our imports.  
Ecuador acknowledges the quality of Brazil's industr y and our air force, including our presidential 
aircraft, have been supplied by the company Embraer. 
CHILE 
209. Brazil has not avoided the global financial cr isis.  After the impressive economic growth 
recorded since the last Review, triggered by expor ts, which increased at an average rate of 22 per 
cent, and investment that made Brazil the second most  important destination in the world after China, 
the economy started to slow down from the second ha lf of 2008 onwards.  The current account deficit 
increased in comparison with the previous year and there was a sharp fall in industrial production last 
January.  Nevertheless, according to the IMF's foreca st, Brazil will continue to grow, even though at a 
rate of around 1 per cent. 
210. 
We note with appreciation that the Brazilian authorities are resisting protectionist pressures 
and finally did not apply the automatic import li censing that had been announced for 3,000 products, 
which would have affected 60 per cent of its imports.  We hope that Brazil will continue to set an  WT/TPR/M/212 
 Page 29 
 
 
  example and that its authorities will continue to show strong determination when faced with those 
seeking to apply new measures, for example anti-dumping investigations. 
211. Brazil and Chile share similar views in inte rnational forums.  They support and promote 
multilateralism as a way of responding to the challe nges of international society.  At the regional 
level, they both participate in many political discussion and trade integration mechanisms such as 
UNASUR, the Rio Group and the LAIA.  Chile has also been an associate member of MERCOSUR 
since 1997. 
212. Brazil is our leading trade partner in Latin Amer ica and the fourth at the global level, with 
total trade amounting to almost US$10 billion last year.  It should be noted that this trade generates a 
surplus of over US$1 billion for Brazil.  Brazil is also the second most important destination for 
Chilean investment in the world.  By 2008, Chile 's investment in the Brazilian market amounted to 
US$8.4 billion, with a focus on the generation a nd distribution of electricity, services such as 
construction, the forestry sector and the productio n and marketing of wood panels, foodstuffs and 
beverages. 
213. This bilateral and regional relationship is also re plicated here in the WTO.  Brazil is an active 
participant in the Doha Round nego tiations and has been a key and positive factor in the search for a 
consensus in order to reach its eagerly awaited c onclusion.  Chile and Brazil have the same high 
hopes regarding the outcome of this Round, where we have a similar vision on many issues, particularly agriculture and we welcome and appreciate Brazil's coor dination of the G-20.  We are 
also "Friends" in areas such as an ti-dumping and fish ing subsidies. 
214. After reading both Reports, we note that one positive aspect has been that a section on Aid for 
Trade has been included.  Nevertheless, the Re ports mention some aspects that warrant Brazil's 
attention and should be remedied.  These include the wide use of anti-dumping measures, most of 
which are directed against developing countries, in cluding Chile.  Brazil has not complied either with 
all its commitments as regards agricultural not ifications, and also maintains domestic support 
mechanisms such as preferential loan s, and price support and stabilization, although it must be said at 
levels much lower than the OECD average. The taxation system could also  be improved and, of 
course, its burden reduced, and in this resp ect we welcome the draft law before Congress. 
215. We hope that we can continue to rely on Br azil's commitment and ambition to conclude the 
Doha Round as soon as possible, particularly taking  into account the difficult global environment we 
are facing. 
NORWAY 
216. Brazil remains, as Norway, deeply committed to a strong multilateral trading system. We 
recognize and appreciate the active participation of  Brazil in the WTO. Both Brazil and Norway 
attach great importance to the conclusion of the Do ha Round. This is particularly so now that the 
world economy is in desperate need of impetus. An expeditious conclusion of the Doha Round will 
mitigate the impact of the crisis and trigger economic growth. 
217. Norway and Brazil have different views on some  key aspects of the negotiations, agriculture 
in particular. Our differences have, however, not im peded a close dialogue neither on issues where we 
disagree, nor on issues where we agree. Our cooperati on in the rules negotiations is an example of our 
fruitful cooperation. 
218. Brazil has enjoyed economic growth during the period under review. However, Brazil – as 
other countries - is facing challenges due to the curre nt state of the world economy. As evidenced in 
both reports, Brazil has shown strong economic results in recent years. The current resilience of the WT/TPR/M/212 
Page 30  
 
  Brazilian economy bodes well for the future. We have taken note of Brazil’s explicit warnings against 
protectionism and we share Brazil’s concerns. We  would therefore like to commend Brazil for having 
abolished the proposal to regulate 60% of imports by  licensing. We urge Brazil to continue to refrain 
from taking measures with possible protectionist consequences. 
219. The Secretariat's report point out that Brazil's entire tariff schedule is bound. This is highly 
commendable. We do, however, regret that the simp le average applied MFN tariff has been raised 
since Brazil’s last trade policy review. This de velopment is disadvantag eous, considering that 
predictability is essential for creating an optimal trade environment.  
220. Brazil is Norway’s tenth largest trade part ner and our countries enjoy excellent trade 
relations. Brazil has noted in its report that its expor ts and imports have grown remarkably in the last 
years. This trend has its parallel in Norwegian-Br azilian trade relations. Our imports from Brazil have 
increased by 30% since 2007. Norwegian exports to Br azil have also shown rema rkable results with a 
21% growth.  
221. A broad range of Norwegian companies are present in Brazil. Most Norwegian-owned 
commercial activity in Brazil is in the form of dir ect investment and hence production in Brazil. The 
majority of these companies have reported positive experiences while making business in Brazil. But 
there are also examples of complex bureaucratic  processes and difficulties in customs clearance. 
Brazil is ranked as number 125 of a total of 181 in the World Bank’s Doing Business report. This 
indicates that there may be scope for further fac ilitation of business and investments in Brazil.   
222. The WTO Secretariat’s report notes that forei gn and Brazilian investors receive the same 
treatment in Brazil, unless restrictions are imposed on foreign investment by a specific law. Two areas 
where such restrictions apply are the maritime and the air transport sectors, both of interest to 
Norwegian enterprises. We are pleased that Brazil h as started to liberalize its international aviation 
policy and look forward to see furthe r liberalisation in both sectors. 
223. Trade in fish and marine products is a key aspect  of our economic relations  with Brazil. Brazil 
is Norway’s fifth largest market, and fish and ma rine products account for approximately 40% of our 
total export to Brazil. Considering the great importa nce of this sector for Norway, we have submitted 
a written question in order to learn more about the specific content of the program for “ fisheries 
incentives ”. 
224. Maritime services is another area of great im portance to Norway, where we have submitted a 
number of questions. Furthermore, we have submit ted questions regarding other sectors, including 
government procurement, where oil and gas are of pa rticular interest to us. We thank the Brazilian 
delegation for the responses to our questions. We will study the answers with interest. 
225. In conclusion, Brazil is an active participant in the multilateral trading system, an economic 
engine in Latin America and globally, and an importa nt trade partner for most of us. I therefore have 
no doubt that this review will continue to be inte resting and useful not only for Brazil, but to all 
participants here today.  
AUSTRALIA 
226. Before I comment further on Brazil’s review, I w ould like to draw Members’ attention to one 
of the lessons we have all learned from the curr ent financial crisis, that is, the importance of 
transparency to underpin a robust and effective global system.  Similarly, the WTO Trade Policy 
Review Mechanism, as a transparency instrument , provides the opportunity to build confidence and 
provide legitimacy to the multilateral trading system .  Australia therefore remains committed to the  WT/TPR/M/212 
 Page 31 
 
 
  review process in recognition of the vital role it plays in ensuring the WTO remains a credible and 
respected institution. 
227. Australian economic engagement with Brazil has grown steadily since the mid-1990s, most 
notably in the mining, agribusiness and services  sectors.  Two-way merchandise trade between 
Australia and Brazil was A$1.98 billion in 2007-08.  Brazil is now Australia’s largest merchandise 
trading partner in Latin America. 
228. Australian companies have also substantial inv estment interests in Brazil.  Our firms have 
invested in the Brazilian mining sector and steel industry as well as others areas such as chemicals, 
information technology and insurance. 
229. Australia and Brazil enjoy close and constructiv e working relations on a range of multilateral 
issues, particularly in seeking reform of the ag ricultural trading system through the Doha Round 
negotiations, including as Leader of the G20 and ac tive member of the Cairns Group.   Australia 
recognises the very significant role played by Brazil chairing the G20 Group in the WTO; its hosting of G20 Finance Ministers’ Meeting in November 2008 and through its constructive participation in 
the G20 Leaders’ Summit held in Washington DC l ast November.  Australia recognises the important 
role played by Brazil in the current global economic crisis in resisting at the highest political level 
return to protectionism. 
230. In 2008 Australia and Brazil announced that an Enhanced Partnership would be developed to 
reflect growing interest in our broadening and deepening bilateral engagement.  Australian and 
Brazilian officials are currently developing a Plan of Action with initiatives aimed at improving bilateral links, including proposals for ministeria l-level engagement on a number of trade policy 
issues and measures aimed at strengthening bilateral commercial links..  Australia looks forward to 
implementing the various initiatives that are to  be agreed with Brazil in coming months. 
231. The Secretariat’s report indicates that Brazil was able to take advantage of a favourable global 
economic environment in recent years to achieve solid economic growth.  This performance can be attributed in part to Brazil’s on-going modernis ation and streamlining of its trade regime.  The 
Secretariat has, however, noted a number of areas where improvements could contribute to future 
productivity growth, including lowering effective tariff protection, reducing the use of import 
prohibitions, and providing greater predictability in  the foreign investment regime.  Australia 
encourages Brazil to pursue further reforms to be in a better position to tackle the current global 
economic challenges that we all are faced with. 
232. With particular regard to Brazil’s taxation sy stem, Australia encourages Brazil to continue 
efforts to reform its tax regime.  Brazil’s large and growing market, divers ified economy and political 
stability make Brazil an attractive investment location.  However its complex taxation system can discourage investment, particularly from small and medium enterprises.  A simplified and unified taxation system would improve Brazil’s internati onal competitiveness and encourage greater inwards 
investment.  
233. Trade is vital to both Australia and Brazil’s ec onomies and we have a shared interest in a 
strong, open and rules-base d multilateral trading system .  Australia values Brazil’s strong support of 
the WTO and its constructive role in working with  other developing countries including as a fellow 
Cairns Group member and as Chair of the G20 Group of developing countries .  Australia looks 
forward to working with Brazil and other Member s to conclude the Doha Round as soon as possible 
in 2009.  In the current economic climate, conc luding Doha is vital to  stimulating economic 
confidence and addressing the serious risk of protectionist responses. WT/TPR/M/212 
Page 32  
 
  234. Our questions for this trade policy review reflec t Australian interests in the Brazilian market.  
Our questioning ranges across the Brazilian economy, including agriculture, industrials, investment 
and services.  We thank Brazil for its re sponses which we will examine carefully. 
CANADA 
235. Canada acknowledges Brazil as one of the worl d's major economies and as a key partner in 
mutually beneficial economic and tr ade relations.  Since 2004, we have  reinforced our cooperation in 
a number of areas.  Canada and Brazil have set up a bilateral consultative committee on agriculture, 
completed negotiations on a framework agreem ent for cooperation in science, technology and 
innovation (signed in Brazil in November 2008), and have both made a sizable contribution to the 
positive conclusion of the multilateral negotiations  on the OECD's 2007 Sector Understanding on 
Export Credits for Civil Aircraft, and its successful implementation. 
236. From 2004 to 2008, the value of bilateral trad e in goods between Cana da and Brazil rose by 
95 per cent, reaching a total of US$5 billion in 2008.  Over this period, the value of Canada's exports 
to Brazil more than tripled and exceeded US$2 b illion, a 72 per cent increase between 2007 and 2008.  
The impressive expansion of investment between the two countries marks an important milestone in 
their bilateral trade relations.  At the end of 2007, Brazil was the major destination for Canadian direct 
investment in South America (US$8.9 billion) and occupied 10
th place at the global level.  Since the 
previous Review, Brazil has considerably increased its investment abroad and is now the seventh 
largest source of foreign direct investment in Ca nada with investment totalling close to US$13 billion 
in 2007. 
237. Brazil has worked hard to achieve solid macr o-economic fundamentals and can be cited as a 
model of socially responsible economic grow th. Brazil is well on the way to achieving self-
sufficiency in oil and gas, and is the world’s second-largest producer of ethanol. Brazil has also 
successfully managed its international debt, brought  inflation under control and achieved investment 
grade status. Canada commends Brazil for these achievements. 
238. While we note that Brazil has made some progress towards the modernization and 
streamlining of its trade regime, we cannot help  but observe that average tariff protection has 
increased, and that Brazil still relies heavily on im port prohibitions. Brazil’s foreign investment 
regime is another area where much  remains to be done. Improvement in this area would certainly 
make Brazil a more attractive investment destinati on. We also take particular interest in the 
developments within MERCOSUR as it continues to evolve, both internally and through its various 
international accords. We look to its members to ensu re the group’s continued outward orientation, in 
a manner both consistent with, and supportive of , the principles and goals of multilateralism. 
239. Canada encourages Brazil to continue its e fforts towards a more open and transparent 
economy. This would include stream lined laws and regulations to bring greater transparency and 
access to Brazil’s market. Canada would also enc ourage Brazil to work towards a decrease in its 
average tariff level and the abolition of non-tariff barriers to trade and investment. Canada also 
strongly encourages Brazil to take the necessary steps to join the Government procurement 
Agreement (GPA) in the immediate future. 
240. Canada commends Brazil for its commitmen t to liberalizing trade and for avoiding 
protectionism in spite of the pressures stemming from the global crisis. Canada will look for Brazil’s 
continued leadership among developing countries,  especially MERCOSUR members, in the Doha 
Round negotiations, and in supporting the work of th e WTO in monitoring trade-related measures to 
achieve maximum transparency during this global financial and economic cr isis. As highly trade-
dependent economies, both Canada and Brazil stand to benefit from a strong rules-based multilateral 
trading system and from a successful outcome to the Doha Round.   WT/TPR/M/212 
 Page 33 
 
 
  241. In closing, Canada would like to acknowledge th e positive advances that Brazil has achieved 
since the last Trade Policy Review and encourage Br azil to continue efforts towards greater economic 
efficiency and integration in the global economy. There are of course a number of specific interests and issues which we address in the written questi ons we have submitted. We look forward to 
receiving Brazil’s responses and to a comprehensive exchange of views during the two days of the 
review. 
COLOMBIA 
242. Colombia particularly welcomes Brazil's positiv e performance since the previous Review of 
its trade policy, as can be seen from the following economic indicators:  (i) real GDP growth of 
around 4.5 per cent annually over the period 2004-2007
3;  (ii) decrease in the unemployment rate from 
11.7 per cent in 2002 to 9.4 per cent in 2007;  ( iii) lowering of the public sector's net debt from 
52.4 per cent in 2003 to 42.7 per cent in 2007 and 36.6 per cent in October 2008 (as a percentage of 
GDP). 
243. As reflected in the Secretariat's Report, Brazil's modernization and reorganization of its 
trading system yielded positive results during the period under review, with an average annual 
nominal rate of increase in exports of around 22 pe r cent in terms of United States dollars and an 
average nominal rate of some 26 per cent in imports.  Like the rest of the world, Brazil's economy has 
been affected by the financial crisis, but we not e with satisfaction that it has adopted measures to 
offset the impact such as the "Growth Accelerati on Pact", as Ambassador Azevedo has informed us. 
244. There are a number of concerns to which we shoul d like to draw the attention of the Brazilian 
authorities:  the increase in overall tariff protecti on, with average applied MFN tariffs rising from 
10.4 per cent in 2004 to 11.5 per cent in 2008, as a result of the applied tariffs on non-agricultural 
products;  the high levels of effective tariff protection, which the Government could make a 
determined effort to bring down;  the absence of  notifications under the Agreement on Agriculture. 
245. Our trade relations with Brazil come under th e umbrella of the Economic Complementarity 
Agreement signed between the Andean Communi ty (CAN) and MERCOSUR in October 2004.  
Bilateral trade has increased in recent years,  from US$700 million in 2002 to US$2.409 billion in 
October 2008, with a surplus accruing to Brazil.  Colombia's exports increased from US$110 million in 2002 to US$578 million in 2008 and impor ts from Brazil rose from US$599.6 million to 
US$1.83 billion over the same period.
4 
246. The relationship between our two countries ne vertheless goes beyond the trade sphere.  
Colombia also has neighbourly and friendly relations with Brazil and cooperates in a number of areas, 
including cultural affairs.  In February last, in the course of important meetings held in Brasilia, the 
Presidents of the two countries discussed issues on th e multilateral, regional and bilateral agendas.  I 
should just like to mention briefly some points in th e joint declaration issued on this occasion:  (1) the 
importance of coordination among countries in the region was underlined to be able to deal with the 
effects of the international economic crisis;  (2 ) attention was drawn to the need to confront 
protectionist trends, which exacerbate the effects of the crisis, and the conviction that regional 
integration and stronger flows of investment are essential for economic growth was reaffirmed;  and 
(3)  the understanding that market access was essen tial for the promotion of economic and social 
development was also reaffirmed and it was recognized  that a fair and balanced international trading 
system was essential to overcome the economic crisis. 
                                                      
3 In 2007, it was 5.7 per cent and 6.8 per cent in the third quarter of 2008. 
4 The main products exported to Brazil are coal, crude petroleum oils, polyvinyl chloride, tyres and 
ferro-nickel.  The products imported from Brazil are aircraft, telephones  and cellular phones, aluminium and 
iron and steel products. WT/TPR/M/212 
Page 34  
 
  247. In conclusion, I should like to underscore the importance of Brazil on the international 
economic scene.  According to the World Bank, its  economy is the foremost in Latin America, the 
second in America as a whole and the sixth at the globa l level.  In the current economic and financial 
crisis, Brazil is called upon to play a leading ro le among developing countries and to act in a 
coordinated way as the linchpin for economic growth  that will have a positive impact on the global 
economy. 
EUROPEAN COMMUNITIES 
248. From both Reports we see a country that represents the world's tenth-largest economy in GDP 
terms, and is, nowadays, one of the most solid and larger exporters/traders in the world. Brazil and the 
EC enjoy a strong economic relationship: the EC is Brazil's main trading partner and Brazil represents 
the EC's main trading destination in Latin Americ a. Bilateral trade totalle d €61 billion in 2008 and EC 
FDI amounted to €15.3 billion in 2007. 
249. Brazil is a strong and diversified economy, its macroeconomic indicators are self-explanatory: 
continued strong output growth, declining unempl oyment rates, rocketing diversified exports, 
expanding trading partners. Inflation and high inte rest rates, however, should be closely monitored 
and controlled. The relatively sound performance of the Brazilian economy and its growth are 
strongly linked to successive engagement and successf ul opening to international trade and this 
objective needs to be maintained in view of the global financial and econom ic crisis. The continued 
opening is crucial for the solid growth and exploring large potenti al of the Brazilian economy, where 
trade accounts for 21% of its GDP.  
250. Indeed, we are going through difficult times and we  all have uphold the faith in free trade in 
order to surmount the current crisis. Brazil has r esponded to the crisis in a responsible fashion. 
Despite initial temptations to resort to a number  of protectionist measures – namely, raising non-
automatic import licenses and converting ad valorem  tariffs into specific duties – Brazil has rightly 
and successfully resisted the temptation, and furtherm ore, Brazil is effectively defending this line in 
Mercosur (i.e. warning against raising CET in certain products). In fact, this is the expected behaviour 
following G-20 commitments in this regard. Furtherm ore, Brazil's leadership in pushing for a prompt 
conclusion to the Doha Round will continue to be of crucial im portance. We do nonetheless expect 
thus Brazil to make additional efforts in NAMA (sectors) and services negotiations to close a Doha deal, of which Brazil would be the main beneficiary. 
251. Brazil's leadership is also hi ghly required to lead Merc osur towards genuine regional 
integration. The much doubted customs union has not been effectively implemented. And Brazil is 
clearly not benefiting from this situation, since, as i ndicated in the Secretariat's report, only 10% of its 
merchandise trade takes place within Mercosur. An au tomotive policy has not entered into force - it 
therefore continues to be based on bilateral agre ements. As we understand it, even if the customs 
union were to enter into force, it would do so with limitations to duty-free trade because of 
arrangements on trade-balancing among members, double duties, remaining exceptions to the 
common external tariff, and outstanding non-tariff barrier s. In short, more work needs to be done and 
we urge Brazil to take the lead towards the co mpletion of the customs union, which is also an 
important element in the contex t of bi-regional negotiations. 
252. Even if negotiations of an EU-Mercosur re gion-to-region Association Agreement are on hold 
since 2004, the EC remains committed to negotiati ons and concluding an am bitious and balanced 
agreement as soon as conditions allow. 
253. 
The Secretariat's report notes that Brazil, as part of Mercosur, has engaged in an active RTAs 
policy. The report has been useful for informat ive purposes, since, unfortunately, not much is 
otherwise known about Brazil's/Mercos ur's regional trade policy. As we all know, transparency is a  WT/TPR/M/212 
 Page 35 
 
 
  key pillar within the WTO, and we urge Brazil to comp ly with its transparency obligations in terms of 
WTO notification of its regional trade initiatives. Furthe rmore, we invite Brazil to share with us today 
Brazil's trade objectives – through its participati on in Mercosur- with regard the negotiation of 
regional trade agreements and arrangements.  
254. The EC notes Brazil’s participation in the Globa l System of Trade Preferences (GSTP) among 
developing countries. In its government report, Br azil stresses that the GSTP is a timely opportunity 
to promote new markets and generate trade among developing economies, within a rules-based and 
predictable framework. The EC would certainly be in terested in the current state of play of this 
initiative, preferably with indicati on of coverage in geogr aphical and products te rms, and details about 
the rules within that framework.   
255. We obviously regard Brazil as a developing coun try in a position to offer meaningful DFQF 
access to LDCs. However, according to the S ecretariat's data, Brazil's agricultural and non-
agricultural imports from LDCs (excluding oil and ra w materials) are not only very low but also 99% 
dutiable.  There is thus untapped potential for Br azil to step up efforts to assist the poorest countries 
and boost South-South trade. Brazil could share wi th us today further details on how it plans to 
implement the Hong Kong Decision as regards DFQF and contribute thus to bringing genuine 
development value in the DDA.  We certainly wish to work with Brazil and others to ensure that all, 
in particular the poorer developing countries, enjoy the increase in prosperity through participation in 
global trade. 
256. I'd like to briefly touch on five of those issu es now.  Firstly, I would like to refer to 
government support schemes. While advocating subs idy reduction, Brazil has put in place a good 
number of financing, insurance, and guarantee schemes aimed at promoting exports, both at the 
federal and state level. Some support schemes are dependent upon domestic-c ontent and/or ownership 
requirement. The existing RECAP, PROEX and REPES mechanisms have been reinforced with new 
financing and extended to new sectors over the last two years. For instance, the Brazilian Government 
has decided, just some weeks ago, to extend the be nefit of its PROEX scheme, so that exporters from 
sectors such as agriculture, equipm ent, pharmaceuticals, chemicals a nd textiles, could benefit also 
from this programme. The EC urges Brazil to ra tionalise support schemes for the sake of increased 
competitiveness, and to avoid recourse to them  in an effort to mitigate the crisis. 
257. Secondly, I would like to refer to IPR. Since its last TPR, Brazil has made significant progress 
in terms of IPR protection.  The National Counsel against Piracy has pursued a more effective border campaign to increase seizures. However, the majority  of the goals included in Counsel’s plan remain 
work on progress. The EC encourages Brazil to conti nue co-operating with the private sector in this 
field, and to ensure the full implementation of th e Counsel's action plan.  As regards enforcement, 
there have been recent improvements in the res ponsiveness to infringements by Brazil police forces, 
as well as by Customs. Nevertheless, in spite of a generally adequate legal framework, sanctions 
actually imposed appear not to be deterrent enough to  prevent infringements. Brazil needs to step up 
efforts towards an effective and swift enforcement by both administrative and judicial means. With 
regard to patents and trademarks, we would invite Brazil to accelerate the application process in order 
to overcome the current registration backlog.  
258. The EC regrets that the perceived domestic improvements in terms of IPR protection and 
enforcement are not reflected in the general attit ude of Brazil towards these same issues at the 
international level. In multilateral frameworks - such as TRIPs Committee, WIPO and the WCO- 
Brazil continues to be reluctant to engage in di scussions aimed at solving the international problem 
that piracy and counterfeiting of intellectual property rights represent. The EC urges Brazil to be coherent with its internal and external polici es, and thus favour international cooperation and 
dialogue. At the bilateral level, the EC hopes to continue constructively co-operating with Brazil 
through our technical IPR dialogue, which fi rst meeting took place in November 2008. WT/TPR/M/212 
Page 36  
 
  259. Thirdly, let me turn to services. The Secret ariat Report notes that Brazil has neither ratified 
the Fourth Protocol on Telecommunications servi ces nor the Fifth Protocol  on Financial Services. 
Brazil has not included commitments on air or mari time transport in its GATS Schedule either.  The 
EC strongly encourages Brazil to take all necessary st eps to further open its core services sector, for 
instance, by removing foreign ownership restrictions in the transport sector.   
260. Fourthly, it is important we recall remaini ng NTBs.  Compliance with Brazilian technical 
regulations, standards and registration procedures rema in to be cumbersome. Just to point to some 
examples, I need to mention the registration of me dical devices, the certification procedures for toys, 
and the quality standards for alcoholic beverages.  In order to overcome these obstacles, the EC 
encourages Brazil to step up effo rts to reduce excessive red tape to  follow certification procedures and 
to duly align with internationa l standards and recommendations. 
261. Lastly, I would like to draw Brazil's attenti on to the need for an open, transparent, non-
discriminatory and efficient government procurement system.  As noted in the Secretariat's report, domestic preference prevents taxpayers to prof it from procuring goods and services at competitive 
prices. We would like to encourage Brazil to reflec t again on the manifold advantages of joining the 
WTO Plurilateral Agreement on Government Procurement. 
262. The EC appreciates this opportunity to comment on Brazil's trade policy.  We would like to 
express our appreciation to Ambassador Roberto Carvalho de Azevedo  and his team for all of the 
information they are providing, and we look forwar d to receiving the answers to our questions.  In 
addition, we welcome further cooperation on trade ma tters with our Brazilian colleagues - here at the 
WTO and bilaterally. 
REPUBLIC OF KOREA 
263. Brazil is an important member of the intern ational trading community, and Korea and Brazil 
have forged a close relationship over the years. Bilateral trade has increased almost four-fold since 2003, and as of last year, reached a record-high of  $10 billion US dollars. Investment cooperation has 
also witnessed a ten-fold increase in  the last three years reaching new heights. In light of these 
remarkable figures, I have every confidence that our important econom ic cooperation will continue to 
further develop well into the future. 
264. In my view, one of the areas in which the bilateral economic cooperation could further 
strengthen is in regards to the fight against protectio nism. As strong supporters of international trade, 
Brazil and Korea are of the common view that the cu rrent rule-based multi-lateral trading system must 
be further strengthened, and any and all measures of a protectionist nature must be held at bay. Korea 
looks forward to cooperating with Brazil in monito ring protectionist measures that might adversely 
affect the international trading environment; either  in the context of the Monitoring Exercise of the 
TPRB, or any other forum to which our two countries are part of.  
265. In this regard, my delegation would like to  take this opportunity to extend its high 
appreciations to Brazil for reversing an earlier d ecision to significantly expand its import licensing 
requirements. The swift and decisive intervention of  President Lula showed the strong commitment of 
Brazil on this issue. 
266. As I mentioned earlier, it is no secret that Br azil attaches great importance to the multilateral 
trading system and in this context, is an active a nd increasingly one of the more important participants 
in the current DDA negotiations. However, as Br azil acknowledges in its Government report, 
Mercosur is (and I quote) “at the center of its fo reign policy, as a process that goes beyond its customs 
union disciplines and constitutes a privileged space fo r cooperation in all areas.” Although in the 
context of Mercosur, preferential trade agreem ents have been negotia ted with non-Mercosur  WT/TPR/M/212 
 Page 37 
 
 
  countries, it is Korea’s view that these agreements are generally of limited scope, covering only some 
portions of trade in goods. As such, my delegation would like to inquire whether Brazil and its Mercosur members will consider (in the near future) engaging in negotiations for the conclusion of an 
FTA that includes the entire spectru m of trade, that is, trade in goods, trade in services, government 
procurement, intellectual propert y, and e-commerce, among others. 
267. In regards to government procurement, Korea notes that Brazil has taken steps to increase 
transparency in its government procurement regime. However it also notes that Brazil has yet to sign 
on to the GPA. In light of the new market access opportunities possible for highly competitive 
Brazilian suppliers, and the benefit that will accrue  to domestic taxpayers in the form of reduced 
procurement costs, we would like to join others a nd recommend that Brazil consider signing on to the 
GPA at the earliest possible juncture. 
268. In preparation for this TPR, my delega tion submitted in advance a number of written 
questions ranging from 1) request for further clarif ication on its FDI policy and its foreign investor 
protection regime, 2) several trade facilitation related issues, 3) its tariff structure, 4) its government 
procurement policy, and 5) its policy to prohibi t imports of used consumer goods, among others. 
269. While we look forward to Brazil’s response to these and other questions, taking this 
opportunity, I would like to point out one issue that is  simultaneously of concern and interest to us. It 
concerns the apparent implementation of the “minimum import price” by the Brazilian customs authorities. 
270. The Secretariat Report for the Brazil TPR of year 1996 (WT/TPR/S/21), for the year 2000 
(WT/TPR/S/75), for the year 2004(WT/TPR/S/140), and for the current TPR (WT/TPR/S/212) all 
state that Brazil does not apply minimum import prices for customs valuation purposes. However, it 
has come to our attention that recently items such as ‘spandex yarn’ and ‘re-generated polyester staple 
fibers’ from my country were denied customs clear ance for allegedly declaring a price which falls 
below a certain import price. In the case of ‘re-gener ated polyester staple fibers’, customs clearance 
was resumed following a price adjustment. 
271. While these incidents could have been isolated in cidents that do not reflect ordinary practices, 
it were sufficient to cause concerns with regards to the transparency and predictability of the customs 
clearance process of Brazil. These concerns were fuelle d in part due to the fact that in the year 1999 
this same issue was at the center of a dispute with another WTO Member, and for two full years 
(between 1999 and 2001) this same issue was repeatedly reviewed at the WTO Committee on 
Customs Valuation. 
272. In light of the concerns that this case has rai sed in my capital, my delegation would appreciate 
a detailed explanation and/or any supporting materi al on this specific issue during the intervention on 
the second day of the TPR. 
GUATEMALA 
273. Diplomatic relations between Brazil and Guat emala commenced a century ago and have led 
to numerous joint initiatives in the political, economic,  trade and cooperation spheres.  Brazil has also 
made a concrete and positi ve contribution to stability and peace in  Central America.  One outstanding 
example has been its participation in the "Contador a Support Group", an important tool for restoring 
peace in the region, which led to the "Rio Group" that has until now been an ongoing consultation 
mechanism among our countries.  Another significan t event has been President Lula's offer to 
Guatemala to initiate technical cooperation activities to allow my country to develop a programme for 
the use of ethanol as fuel, taking into account Brazil's successful experience. WT/TPR/M/212 
Page 38  
 
  274. At the bilateral trade level, as there is only a modest level of trade between Guatemala and 
Brazil, the two countries have underlined their inte rest in developing action to strengthen bilateral 
trade links.  In this connection, the possibility of negotiating a free trade agreement has been explored 
as it would allow trade to grow, taking into acc ount the asymmetry between the respective economies 
and the desire for concrete benefits for both peoples. 
275. At the multilateral trade level, it is important  to point out that the Brazilian delegation has 
taken an active part in the Doha Round negotiations  and has been a leading proponent of development 
objectives during the negotiations.  Brazil is marked by its pursuit of real opportunities for developing 
countries and the achievement and consolidation of  trade openness in agricultural markets.  Its 
leadership in the G-20 bears witness to this. 
276. It should also be recognized that Brazil's par ticipation in the dispute settlement mechanism 
has been serious and constructive.  It has exerci sed its rights and has ensured compliance with their 
obligations on the part of WTO Members in a res ponsible and appropriate manner.  In so doing, 
Brazil has strengthened Members' confidence in this mechanism. 
277. Guatemala notes that since the previous Review  of its trade policy, Brazil has taken several 
positive trade measures.  These include initiatives inte nded to develop a more efficient, streamlined 
and transparent government procurement mechanism.  Brazil has also made effo rts to ensure that its 
national regulations are harmonized with international rules and th at sanitary measures are applied 
fully.  It has also made considerable progress on en forcement of intellectual property rights (National 
Council on Combating Piracy and the relevant National Plan). 
278. We note, however, that Brazil is still facing sev eral challenges that will depend not only on 
the measures adopted at the national level but also on what happens on the international scene, 
particularly in view of the financial and economic cr isis.  It is therefore important that Brazil should 
continue to speak out against protectionism. 
279. Lastly, I should like to say that my delega tion has submitted questions to Brazil on various 
trade measures that are of interest to us.  We shoul d like to thank the delega tion of Brazil in advance 
for their response to our request. 
THAILAND 
280. At this juncture, we note that we have listene d carefully to Brazil’s discussions, especially on 
its outlook towards international trade policy.  As  a developing country de pendent on international 
trade and open markets, we commend Brazil for upholding the multilateral trading system as its 
priority, its determination to c onclude the Doha Round of negotiati ons, and its leading role in the 
current negotiating process. Brazil and Thailand have enjoyed a mutually beneficial trading 
relationship, with gradually increasing bilateral trad e over the years.  We hope that this trend would 
continue, and despite the distance between our countries, we encourage Brazil to continue 
diversifying its markets to Asia, including Thaila nd. We also look forward to reviewing Brazil’s 
answers to our advance questions on among othe rs, TBT, intellectual property rights, foreign 
investment regime, preferential trade agreements, and Anti-dumping.   
281. Although our countries are very distant in te rms of geography, Thailand and Brazil share a 
close and friendly working relationship in issues of trade.  On the group level, we are both members 
of the Cairns Group and the G20 group of developi ng countries which is under the chairmanship of 
Ambassador Roberto Azevedo, and in the multilatera l arena, we work closely on many important 
issues, such as Agriculture and TRIPS & CBD, in particular vis-à-vis  the communication on the Draft 
Modalities for TRIPS related issues under the Doha Wo rk Programme.  In addition, our positions are 
closely aligned in the AD Rules negotiations, as we are both members of AD Friends.  We also  WT/TPR/M/212 
 Page 39 
 
 
  closely cooperate in the Dispute Settlement Body , having been successful co-complainants in two 
disputes, and are both keen to promote developing country interests in the DSB Special session. 
PAKISTAN 
282. Since the last Review in 2004, Brazil has made noteworthy strides in economic development, 
thus assuming the role of South Americas leadi ng economic power.  Prudent  macroeconomic policies 
and expanding presence in the world markets, bolstered by commodity-driven current account 
surpluses have propelled its international reserves at  historically high levels.  These trade balance 
surpluses, have been instrumental in offsetting defi cits in services and income balances.  Accordingly, 
we are pleased to note in the Report by Brazil th at Brazil is not perturbed by the current global 
financial and economic crisis.  The GDP growth ra te of 4.5% during 2004-07 is indeed commendable 
besides achieving primary fiscal surpluses and infla ting targets.  The Secretariat's Report aptly 
describes Brazil as a "genuine global trader".  Brazil has reaped a harvest of surge in exports through 
productivity gains coupled with high commodity pr ices.  A floating exchange rate, an inflation-
targeting regime, and a tight fiscal policy are th e three pillars of macroeconomic management.  
Brazil's debt achieved investment grade status ear ly in 2008, although since the financial crisis, 
Brazil's currency and its stock market Bovespa have significantly lost value, along with a current 
account deficit in 2008. 
283. It is also commendable that the government of President Lula da Silva has been successful in 
stepping up social spending while consolidating macr oeconomic stability.  By some accounts, he has 
been the most poplar President, although constitutiona lly ineligible to stand for a third consecutive 
term. 
284. A proactive export policy and favourable external  demand have contributed in Brazil's strong 
export performance, converting the current account defi cit of 4.6% of GDP in 2001 to a surplus for 
several successive years, although the deficit re-e merged in 2008.  However, following commodity 
prices and contraction in global demand is likely to affect Brazil's growth trajectory as well.  The Brazilian Government has already embarked upon a programme of damage mitigation, e.g. the 
Central Bank has slashed the benchmark overnight in terest rate, the Selic, along with other counter-
cyclical measures. 
285. Brazil is an active player at the bilateral, re gional and multilateral levels.  We can all bear a 
testimony to Brazil's active role at the WTO which needs no further elaboration.  Apart from being an 
active member of MERCOSUR, it has entered into va rious Preferential Trade Agreements.  However, 
it has increased simple average applied MFN tariff fr om 10.4% in January 2004 to 11.5% in January 
2008.  Its tariff structure reflects presence of tariff peaks and escalation.  It also has various import 
restrictions.  Its taxation system involves heavy tax burdens.  The corporate and indirect taxation system are particularly complex, porous and unwieldy.   However, it is satisfying to note that Brazil's 
is steadily progressing towards modernizati on and streamlining of its trade regime. 
CÔTE D'IVOIRE 
286. A critical analysis of the documentation and the information given to us shows that Brazil, 
which aspires to be the leader of a South Ameri can pole of growth and sustainable stability on the 
American continent and is today the 10
th largest economy in the world, has equipped itself with the 
material, human and strategic resources needed to achieve this since multi-party democracy took root 
in 1985. 
287. Brazil's brilliant overall economic performance, on th e part of the fifth largest country in the 
world by size of population, shows us that underdevelopment is not inevitable. WT/TPR/M/212 
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  288. The continuous and tangible improvement in Br azil's economic and fina ncial parameters and 
indicators since 1994, after it had experienced a debt and hyperinflation crisis combined with a trade 
deficit following the upsurge in imports, is a vindi cation of the liberal macroeconomic and sectoral 
reforms promoted and supported by the State. 
289. Furthermore, the virtuous economic policy followed  by the current administration in Brazil is 
along the same lines as the liberal reforms undertaken by the previous administration and they have 
enabled Brazil to see a remarkable improvement in its financial parameters. 
290. Barely a decade ago Brazil was weakened by the burden of its debt, difficult to reduce 
because at the end of 2002 it represented almost 65 per cent of the GDP, one quarter of which was external debt.  It has managed to lessen its external vulnerability while  at the same time restoring and 
strengthening its credibility vis-à-vis  its partners abroad by announcing the advance repayment of its 
debts with the Paris Club in 2005,  on the one hand, and with the IMF on the other and it will be 
recalled that in 2002 the latter had agreed on a large-scale financial support programme for Brazil. 
291. The sustainability of Brazil's debt, lowered to  less than 50 per cent of GDP between 2003 and 
2008, more precisely 40.3 per cent , shows that its sound economic policy based on budgetary and 
monetary orthodoxy with a stable banking system and subject to strict prudential rules and a high 
proportion of own funds, constitutes st rong leverage for growth that is fully integrated into a more 
global strategy linked to the Growth Acceleratio n Plan (PAC) launched by President Lula in 
January 2007 with an annual growth target of 5 pe r cent and financing of the investment deficit in 
infrastructure, acceleration factors and ongoing consolidation of growth. 
292. Since January 2008, Brazil has been a creditor w ith reserves, i.e., foreign exchange assets that 
largely cover the amount of its public and private ex ternal debt and it is no longer to be found on the 
list of speculative risk countries.  This is a reflec tion of the maturity of its institutions and the new 
political, economic, financial and trade framework, which is amply demonstrated by the reduced 
fiscal risk, even a fiscal balance, and the lower external debt, combined with a positive outlook for 
growth. 
293. Brazil's growth, deemed by analysts to be bot h robust and balanced because of the liberal 
reforms implemented, has placed this emerging c ountry in a virtuous circle that inspires its 
institutional and private partners with confidence and respect. 
294. These economic indicators and financial parameters  therefore explain Brazil's resilience in the 
face of the current international financial and economic crisis, whic h spares no country, and justifies 
the serenity shown by the highest authorities in Brazil. 
295. All is not yet perfect in Brazil because, to u se a sporting term, development is a marathon and 
not a sprint.  Nevertheless, as indicated by Ambassad or Azevedo in his introduction, Brazil appears to 
be better prepared than in the past to confront the current crisis compared with the effects of the Asian 
crisis in 1997, which had a marked impact on Brazi l's indebtedness that reached its peak in 2000, as 
we recall. 
296. Having expressed this satisfaction, I would lik e to inform the Brazilian delegation of two 
concerns:  firstly, does the monetary volatility relate d to the floating exchange rate not constitute a 
handicap for the Brazilian economy itself?  In an y event, for African exporting companies on the 
Brazilian market faced with a systemic exchange risk, the handicap is a real one. 
297. The second concern is that it is well known that Brazil, which has made foreign trade a lever 
for growth, regularly defends the multilateralism of trade, making it a major actor in the  WT/TPR/M/212 
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  WTO negotiations and a strong defender of the Doha Development Round, to cite the Brazilian 
Government itself.  Moreover, we can confirm this. 
298. Against this historical background, I am temp ted to ask the Brazilian delegation what is its 
position vis-à-vis  the escalation in customs duty on certain exports from developing countries, 
particularly those tariff lines where these countries have a comparative advantage, especially since 
Brazil has increased its South-South trade in recent years, notably with African countries, by around 
101 per cent?  It is hardly necessary to recall that Br azil is also a leading actor in the global system of 
trade preferences among developing countries, wh ich makes my question even more pertinent. 
HONDURAS 
299. We note with satisfaction in the Secretariat's Report that since the previous Review of its 
trade policy Brazil has continued the gradual pro cess of modernizing and reorganizing its trade 
regime on the basis of well-founded macroeconomic  policies and previous and recent reforms, 
knowing how to take advantage of a global econo mic environment conducive to achieving strong 
economic growth. 
300. We welcome the fact that Brazil's trade has genuine global scope and considerable 
diversification in the geographical distribution of  its exports and imports.  During the period under 
review, the proportion of Brazil's trade correspondi ng to reciprocal trade with the European 
Communities and the United States of America fell, wh ile at the same time exports to Argentina and 
China increased, together with imports from China and certain African countries. 
301. In this Review of its trade policy, we have b een able to see with great satisfaction that Brazil 
considers the multilateral trading system to be the b asis of its trade regime.  Brazil is an original 
Member of the World Trade Organization and takes an  active part in its work.  It has made numerous 
proposals to various WTO bodies and has participated  in the negotiations on telecommunications and 
financial services under the GATS.  It has also played  an active role in developing the Aid for Trade 
process, where it has a dual function both as a beneficiary and a donor. 
302. More than three quarters of Brazil's trade is with MFN trade partners and it takes an active 
part, in particular, in relation to the Doha Deve lopment Agenda (DDA), submitting a relatively large 
number of proposals in the areas covered by the DDA, either individually, as a member of the MERCOSUR or together with other countries, incl uding proposals to liberalize trade in services, 
agriculture, negotiations on NAMA, the Rules Ne gotiating Group and intellectual property rights. 
303. As regards market access, Brazil has continued to take measures gradually to simplify and 
modernize its customs procedures.  For example,  it has introduced an express import declaration 
regime for frequent importers and h as streamlined inspection procedures. 
304. Regarding bilateral relations between Brazil and Honduras, we should mention that our trade 
is relatively small and there is a deficit in our trade balance.  We hope that in the near future Honduras 
and Brazil will be able to strengthen their trade relations. 
EL SALVADOR 
305. We should begin by underscoring the positive economic performance of Brazil since the 
previous Review of its trade policy. 
306. As can be seen from the Secretariat's Report, despite the global financial crisis affecting all 
Members, Brazil has found the key to achieving economic growth, thereby achieving a marked 
improvement in social indicators, lower infant mo rtality, better poverty indicators and literacy levels, WT/TPR/M/212 
Page 42  
 
  inter alia , showing that the Brazilian Government's prio rity is the well-being of its population through 
promotion of a fair and balanced economic system  that enables it to ra ise living standards and 
alleviate poverty in the country. 
307. We note that Brazil has abundant and varied na tural resources together with a diversified 
economy and that manufactures represent a large pro portion of its production a nd exports, while at the 
same time it has improved its econom ic and financial stability and the ability to withstand fluctuations 
in the international financial market.  We also not e that it has managed to maintain a balance in the 
macroeconomic factors in its economic policy and that the potential of its domestic market and 
advantageous labour costs have made Brazil in creasingly attractive to foreign investors. 
308. Trade relations between Brazil and El Salvador have intensified in recent years.  Between 
2005 and 2008, El Salvador's exports to Brazil increas ed by 267 per cent, mainly owing to the export 
of products such as aluminium, cotton towels and clothing, manufactures, other made-up textile 
articles, toys, worn clothing, boilers, mach ines, machinery and me chanical appliances, inter alia . 
309. On the other hand, the main Brazilian products imported by El Salvador are industrial goods 
such as iron and steel, machines, machinery and me chanical appliances, aluminium and aluminium 
articles, paper and paperboard, optical, photographic or cinematographic instruments, inter alia . 
310. In relation to investment, Brazilian investment in El Salvador has increased in recent years, 
principally following the establishment of a large Brazilian textile company in 2008. 
311. Concerning the Review before us, we are pleas ed to note that strengthening the multilateral 
trading system is one of Brazil's trade policy priorities. 
312. With regard to the multilateral negotiations taki ng place in this Organization, especially under 
the Doha Development Agenda framework, Brazil tak es an active part in al l the discussions and has 
made proposals to various WTO bodies, including tho se in the negotiations on agriculture, industrial 
goods, intellectual property services, inter alia , attaching great importance to the principle of special 
and differential treatment for developing countries. 
313. In addition, Brazil has played an active role in  developing the Aid for Trade process, where it 
has had a dual function as a beneficiary and a donor, and is currently chair of important negotiating 
groups in the Committee on Rules of Origin, among other functions that are a tribute to its leadership in this process.  As for investment, it should be noted that this has increased in recent years. 
314. Regarding intellectual property, we should like to draw attention to the work carried out by 
the Brazilian National Industrial Property Institute (INPI), as well as that by the National Council on 
Combating Piracy and Intellectual Property Offen ces (CNCP), which has undertaken important action 
to combat piracy and counterfeiting. 
EGYPT 
315. One cannot but commend Brazil for its constr uctive political and economic role on the 
international arena, particularly in defending the interests of developing countries, and for its positive 
economic and social developments.  
316. According to the Secretariat’s report, the Braz ilian economy grew at an annual average rate of 
4.5% during 2004-2007, after an economic expansi on by only 1.1% in 2003. Moreover, Brazil’s 
posted deficits in its services and income balances were more than offset by trade balance surpluses. 
We are confident of Brazils’ ability in pursuing further economic and social achievements, while  WT/TPR/M/212 
 Page 43 
 
 
  facing the different challenges imposed on developing countries as a result of the Global Economic 
and Financial Crisis.    
317. Brazil’s contribution to world trade is constantly growing, with considerab le diversification in 
the geographic distribution of its exports and im ports, from the traditional trading partners, to 
developing countries in Africa and Asia. Egypt welc omes and supports this growing trend, especially 
with African countries.  
318. Furthermore, Egypt strongly supports Brazil’ s active participation in the Doha Round 
negotiations, and all the WTO activities. Brazil consider s the multilateral trading system to be at the 
core of its trade regime, and considers preferen tial trade agreements as a complement to the 
multilateral trade system.  
319. The leadership Brazil has shown as Chair of the G20 in the Agriculture negotiations is 
remarkable. Egypt worked closely, and in partners hip, with Brazil to defe nd developing countries’ 
interests and incorporate numerous positions in the negotiations, with the aim of reaching the 
necessary balance in the level of ambition in Agri culture and all other negotiating tracks, and to 
guarantee that the developmental component of the Round is at the core of any outcome.  
320. Finally we are looking forward to a continue d fruitful cooperation and coordination with 
Brazil, on the Bilateral, Regiona l, and International level. 
BARBADOS 
321. Since its last review in 2004, the Brazilian economy has grown from strength to strength, 
through the promotion of sound macroeconomic policies, based on a commitment to fiscal responsibility and targeted measures for managing inflation and income distribution. While the 
current global economic and financial crisis w ill present inevitable challenges and pressures to 
Brazil’s solid pattern of growth, current indications  suggest that Brazil is well positioned to weather 
the storm. 
322. A consistent theme throughout the Secretar iat and Government Reports, has been the 
centrality of the multilateral trading system to th e Brazilian trade regime, which it views as “one of 
the main pillars for the establishment of a fair a nd balanced global economic system, which can foster 
welfare and mitigate poverty worldwide”.  Brazil’s stra tegic diversification of its exports and markets 
during the review period therefore comes as no surprise,  particularly in its efforts to deepen South-
South co-operation and trade, the latter, which h as increased exponentially over the review period. We 
would fully endorse the Secretariat’s view of Brazil as a “genuine global trader”.  
323. At the regional level, Brazil also plays an important role within and through MERCOSUR, 
which it continues to place at the centre of its foreign policy. We also recognise the value of 
preferential agreements to the Brazilian trade re gime, through the increasing number of agreements 
that Brazil has become party to, or is in the process of negotiating as a Member of MERCOSUR. 
324. Barbados enjoys a productive working rela tionship with the delegation of Brazil and 
commends the active and leading role that they pl ay in the WTO and the Doha Development (DDA) 
negotiations, particularly in its support of advancing deve lopmental interests of developing countries, 
including Small, Vulnerable Economies (SVEs). 
325. Barbados also places significant value on our long-standing and cordial bilateral relations 
with Brazil, which we expect to place on even so under footing in the very near future, through the 
establishment of an Embassy in Brasilia.  WT/TPR/M/212 
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  CUBA 
326. At a time when the world is facing a negativ e international financia l, trade and economic 
situation, it is good news for the world in general a nd for developing countries in particular to see that 
Brazil is enjoying the longest period of economic pros perity in two decades;  that its economy is well 
placed to confront the current difficult global envi ronment and that this new cycle of growth will 
continue despite the worsening of the internationa l situation, from which no country in the world is 
totally immune. 
327. These prospects are the result of the combined e ffect of sustained growth of Brazil's foreign 
trade, its economy, the trade surplus, investme nt, production capacity, productivity, domestic demand, 
employment and wages in recent years. 
328. Several economic indicators highlight Brazil's successful economic performance.  Real GDP 
grew by around 4.5 per cent annually over the period 2004-2007, almost double the average rate recorded from 1980 onwards.  Another positive note for Brazil's foreign trade in recent years has been 
its geographical distribution, with a trend towards increased South-South trade in 2008, particularly 
growth of over 100 per cent with Latin American a nd African countries.  In addition, Brazil's net 
share of exports in global trade increased from 1. 05 per cent in 2004 to 1.16 per cent in 2007, which 
indeed shows commendable efforts to expand th e number of Brazilian exporting companies. 
329. Brazil not only diversified its markets but also its exports.  Some 65.8 per cent of its exports 
were industrial goods, symptomatic of growing devel opment of a competitive national industry at the 
international level.  The Brazilian Government's efforts to promote regional trade agreements such as 
MERCOSUR and others that go beyond a simple cu stoms union and also constitute a forum for 
cooperation in various areas should also be commende d.  Brazil's action and support for economic and 
political integration in Latin America and the Cari bbean are also worthy of praise and, in this 
connection, special atte ntion should be drawn, inter alia , to the most recent initiative of the First Latin 
American and Caribbean Summit on Integration and Development, held in Salvador de Bahía in 
December last year.  In this c onnection, our two countries share the aim of Latin American integration 
with an increased commitment to so cial justice and human dignity.  Brazil's economic successes have 
also extended to the social field.  It has ma de progress in achieving the millennium development 
objectives, some of which have been reached be fore 2015, the deadline set by the United Nations. 
330. We should also like to express our surprise at the comments and questions from the 
champions of protectionism and s ubsidies relating to Brazil's internal support and a tiny increase of 
1 per cent in applied tariffs, questions which ar e legitimate according to the WTO agreements. 
331. Turning to bilateral questions, Brazil is Cuba's sixth most important trade partner in the world 
and the second in Latin America and the Caribbean , with trade amounting to US$572 million in 2008, 
which will undoubtedly increase.  Trade, invest ment and economic coope ration relations were 
virtually inexistent 15 or 20 years ago but have increased under the Government headed by 
President Lula.  They received a boost when the Brazilian President visited Cuba in January and 
October last year and the Cuban President, Raúl Castro, went to Brazil in December.  During 
President Lula's official visit to Cuba in Janua ry 2008, ten agreements, protocols or bilateral 
memorandums were signed, including several comple mentary agreements to the Basic Scientific, 
Technical and Technological Cooperation Agreement, together with agreements on trade financing, 
investment, mutual transfer of technology, and oil exploration. 
332. In addition, on 31 October last, both heads of  State presided over the inauguration of the 
Business Centre of the Brazilian Export and Invest ment Promotion Agency (APEX-Habana) in the 
Cuban capital, the first branch of the Brazilian Agency in Latin America, which both Presidents 
agreed was a matter of great satisfaction.  WT/TPR/M/212 
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  333. The two heads of State also presided over the ceremony that accompanied the signing of an 
international economic association agreement be tween oil companies from both countries on oil 
exploration and exploitation in deep water within Cuba's exclusive economic zone.  The exchange of 
visits between the Presidents and Ministers for Fo reign Affairs and the important agreements signed 
last year are proof of the development of bilateral trade, the deepening of the excellent traditional 
friendly relations between our peoples and th e respect, confidence, friendship and mutual 
understanding that are a feature of our relations. 
334. As a developing country, Brazil is also a sour ce of development cooperation and aid.  We 
should like to express Cuba's gratitude in this c onnection for the immediate solidarity shown by the 
Brazilian Government to the Cuban people after th e three devastating hurricanes last year, which 
caused losses amounting to US$10 billion, equivalent  to 20 per cent of Cuba's GDP.  We are also 
grateful for Brazil's permanent rejection of the United States blockade against Cuba, including the 
systematic concern it expresses for the long-standing fa ilure to comply with the rulings and decisions 
of the Dispute Settlement Body concerning Section 211. 
335. When the Cuban President visited Brazil in December last, the two Governments reaffirmed 
at the highest level their determination to devel op trade in both directions and both parties expressed 
their desire gradually to achieve a balance to the extent of our possibilities as a small country. 
MALI 
336. First of all, my delegation wishes to support the statement made by HE Mr Guy Alain Gauze, 
Ambassador of Côte d'Ivoire, with  which my country is a member of an existing customs union - the 
WAEMU - and of another to come - the ECOWAS;  we also support the statement made by the 
representative of Egypt, who is coordinator of the African Group, and by the representative of 
Burkina Faso, my brother and friend Ambr oise Balima, who coordinates the C-4. 
337. My delegation will not attempt to analyse in de pth the trade policy of this great emerging 
country;  more authoritative voices than mine have  done so and, in our view, with considerable 
lucidity and relevance.  Almost all the statements  have highlighted the considerable progress made by 
Brazil in various areas in which the Government has been active, at the econo mic, trade and social 
levels.  My delegation welcomes the fact that th e Brazilian Government has given reassuring replies 
to all the questions raised by its partners.  We also  realize that it is true that, as a developing country 
with the sixth largest population in the world, it will no doubt require some time before it can fully liberalize its trade policy. 
338. Although Brazil is still a developing country, its  outstanding economic and trade importance 
and the fact that it has been better able to resist  the current economic recession constitute a source of 
hope, together with other emerging countries, to enable the shocks cause d by the global financial 
crisis to be cushioned in the first instance and, undoubtedly, afterwards to help to stimulate global 
recovery. 
339. Cooperation between Brazil and Mali really took of f with the signature of an agreement on 
the creation of a joint economic cooperation commiss ion in Brasilia in October 1981.  The objective 
was to identify ways and means of promoting and reinforcing cooperation between the two countries 
in all areas, particularly in economic, scientif ic, technical, technological and cultural matters. 
340. In recent years, this cooperation has bene fited from a revival with the determined 
encouragement of President Lula da Silva, very committed to developing South-South cooperation.  
The results of this cooperation are currently encouraging. WT/TPR/M/212 
Page 46  
 
  341. It is true that, at the trade level, over the period 2004-2007, the balance had been clearly in 
favour of Brazil, from which Malian importers buy a wide variety of consumer goods (sugar, textiles, 
insecticides, pharmaceuticals, … ) and equipment;  on the other hand, the foreign trade statistics show 
that Mali manages to sell ginned cotton to Brazil.  This might come as a surprise! 
342. As regards the multilateral trading system, Braz il appears to be one of the actors best 
prepared;  this can be seen from the extremely active role it plays in the WTO, both as regards 
implementation of the agreements of our common Organization and in the Doha Development Round 
negotiations.  Developing countries are grateful for Brazil's leadership, which never falters, and Brazil 
spares no effort in these difficult negotiations in orde r to maintain and strengthen the pro-development 
focus of this Round. 
343. It appears to us an ideal opportunity to we lcome the excellent cooperation that has been 
established between Brazil and the C-4 countries, a m odel in all respects, since the launching of the 
sectoral initiative on cotton in 2003.  In this regard , as I have just said, my delegation fully supports 
the statement made by Burkina Faso, which coordi nates the C-4.  Brazil has always supported - and 
strongly - the positions taken by the C-4 in the multilateral trade negotiations. 
344. At the development level, Brazil reaffirms its commitment to African cotton-producing 
countries in general and those in the C-4 in particul ar, through concrete technical assistance, capacity 
building and transfer of technology programmes.  It will be recalled that on 7 November last, at the 
latest meeting of the Director General's Consu ltative Framework Mechanism on Cotton, the head of 
the Brazilian delegation announced the forthcom ing initiation of an ambitious cooperation 
programme:  exactly three months later - give or ta ke a day or two - this programme was the subject 
of an agreement signed by the representatives of th e four C-4 countries and the Brazilian Cooperation 
Agency on 19 February last in Bamako, which w ill host the administrative unit.  The project will 
endeavour in particular to remove the basic constraints on the development of cotton growing 
encountered in relation to improved varieties so as to increase the yield and quality of fibre for 
ginning, the reduction in the soil's fertility and phytosanitary protection. 
345. As can be seen, this project is moving ahead , in conjunction with similar programmes made 
possible as a result of the involvement of other developing partners (eme rging developing countries 
and developed countries).  Naturally, the trade solu tion - the other sine qua non for the sustainable 
development of the sector - is still awaited;  with the settlement of the USA - Cotton Upland dispute, 
legitimately won by Brazil, which has reached its la st phase, we have no doubt that there will also be 
a favourable outcome for African cotton growers, which all countries eagerly await. 
346. As a least developed country, moreover a landlocked one, Mali welcomes the measures 
envisaged by the Brazilian authorities to give LDCs  the DFQF regime requested at Hong Kong in 
December 2005. 
347. Under the Aid for Trade framework, Mali we lcomes the commitment of Brazil which, 
although it is a beneficiary, also already acts as a technical and financial partner for development 
under the South-South cooperation framework. 
BURKINA FASO 
348. Burkina Faso is happy to take part in the Review of the trade policy of Brazil, a country that 
is a friend and brother.  Indeed, our two countries have excellent political and diplomatic relations.  
Our respective heads of State have visited each ot her in recent years and are striving to strengthen 
bilateral cooperation betwee n our two countries.  For this purpose, in 2008, Brazil opened an embassy 
in Ouagadougou and Burkina Faso expects to open an em bassy in Brasilia in the very near future.  At  WT/TPR/M/212 
 Page 47 
 
 
  the latest international handicrafts fair held in Ouagadougou in October-November 2008, Brazil was 
the guest of honour. 
349. Like other African countries, Burkina Faso has excellent cooperation with Brazil.  In recent 
years, bilateral cooperation has continued to expand. 
350. As underlined in the Secretariat's report, trad e relations between Brazil and African countries 
have increased by 101 per cent.  Trade cooperation is  prominent and can be clearly seen above all in 
technical training and transfer of knowledge, and in agricultural production and biofuels. 
351. We pay tribute to the role played by Brazil pur suant to its policy of solidarity, acting with the 
C-4 countries to defend the cause of cotton.  In the Dispute Settlement Body in the dispute opposing it 
to the United States of America with regard to upland cotton trade-distorting subsidies, Brazil has 
shown that iniquity cannot be the rule in the multila teral trading system. And in that regard, the Panel 
and the DSB are in agreement.  We also want to thank Brazil for its unfailing support for the C-4, and 
as the spokesperson for the G-20 and in its own name , for its defence of the sectoral initiative in 
favour of cotton.  The latest agreements reached in Bamako at the end of February on technical cooperation for C-4 countries show how  excellent these relations are. 
352. As mentioned in the Secretariat's Report, Brazil has been able to take advantage of a 
favourable economic environment to achieve sustai ned economic growth and take its place among 
emerging countries.  This is an encouragement to us LDCs, who should tell ourselves that our extreme 
poverty is not irreversible.  The Secretariat's Repor t shows that Brazil's economy grew at an average 
rate of 4.5 per cent over the period 2004-2007.  In 2008, growth reached 6 per cent, giving Brazil 10
th 
place in the global economy. 
353. Brazil has played an active role in the Aid for Trade initiative, where it is both a beneficiary 
and a donor.  We hope that the forthcoming review meeting in July 2009 will enable the contribution 
of the donor community to Aid for Trade to be channelled more effectively. 
354. Brazil is also an energetic defender of regiona l trade agreements and its role in MERCOSUR 
bears eloquent testimony to this. 
355. As an LDC, I would like to urge Brazil to give consideration, when it is able, to the possibility 
of granting duty-free and quota-free access to Brazil  for all products from LDCs, as recommended in 
the Hong Kong Ministerial Declaration. 
356. Brazil has a very open position regarding enfo rcement of the TRIPS Agreement.  It issues 
compulsory licences for the manufacture of essential generic medicines for developing countries. 
357. Brazil also participates in the Global System of Trade Preferences among developing 
countries.  We would like to see stronger South-South cooperation as it is an important aspect of 
development and Brazil is proof of this. 
NIGERIA 
 
358. Relations between Nigeria and Brazil cover inter alia ; political, economic and socio-cultural 
spheres and have been sustained over the years by th e mutuality of interests and the friendship of our 
peoples. Nigeria cherishes our ties with Brazil and w ould continue to do our best to consolidate these 
ties as well as the furtherance of relations in other spheres. Nigeria also a member of G-20 share same overall objective of fundamental reform of ag ricultural trade and share common belief on the 
intensification of south-south trade as a major vehi cle of enhancing the integration of developing 
countries into the multilateral trading system. WT/TPR/M/212 
Page 48  
 
  359. It would be recall that pledges of south-south cooperation in a number of economic sectors as 
well as other strategic areas such as peace and secur ity were some of the outcomes of the first summit 
level meeting of Heads of State and Government  from Africa and South America held in Abuja, 
Nigeria from 26-30 November 2006, which were co-c haired by former President Olusegun Obasanjo 
and President Lula de Silva of Brazil. At the b ilateral level, Brazil and Nigeria for centuries have 
enjoyed a warmly, friendly and strong relationshi p on the basis of culture and commercial trade. 
Nigeria is a major provider of petroleum to Brazil.  A major portion of the Afro-Brazilian population is 
of Nigerian ancestry, this is also reflected in th e folk spiritually of Brazil, most prominently in 
“candomble ketu”. We are happy to note the march towards re-igniting the gold en years of Nigeria- 
Brazil relations of 1980s. The success achieved so far especially in our collaboration on the 
production of anti-retoviral drugs in Nigeria and the joint agricultural research  projects in cassava and 
tropical fruits production are aimed at expanding the frontiers of our cooperation. In 2005, Nigeria’s 
state oil firm NNPC signed an agreement with Brazil’s petro Bras and COIMEX signaling the take-off of Nigeria’s ethanol fuel programme. The progra mme is expected to save Nigeria between 100 
million and 130 million dollars annually . This is a clear demonstra tion of south-south cooperation 
between Nigeria and Brazil. In concrete terms, Tr ade relations between Brazil and Nigeria have been 
impressive of late. Trade statistics show that Nigeria’s merchandise exports to Brazil have risen sharply from $ 1 billion in 2003 to nearly $ 5 billion in 2005. Nevertheless, we believe there is huge 
potential for trade expansion mutually beneficial to our beloved countries. Brazil has developed its 
bio-fossils and the use of ethanol as an alternat ive to fuel. This is the kind of diversification 
experience Nigeria could learn from.  
360. Brazil as the world’s tenth largest economy is a key player in global affairs. It has been 
widely acknowledged that Brazil as a major exporte r of agricultural and agro-industrial goods, has 
adopted an offensive stance in negotiations on the lib eralization of trade in agriculture, as well as in 
other negotiating process. As the Coordinator of G-20, Brazil through its Mission in Geneva, has 
participated actively in formulating proposals a nd consistently supported proposals that are pro-
development. Brazil along with G20 Members tries to strike a balance between the interests of trade 
liberalization and development objectives of its memb ers. Our interests coinci de as regards the need 
to end trade-distorting policies in agriculture and for the opening of developed countries’ markets.  
The G-20 under Brazil able leadership has b een widely acknowledged as a major player in 
agricultural negotiations, and one whose interests shoul d be taken into account if agreement is to be 
reached. President Lula da Silva, has emerged as a l eading advocate for the interests of the developing 
world. Brazil has been particularly active in utilizi ng the WTO to handle lawsuits directed at allegedly 
protectionist policies maintained by the developed world. 
361. As pointed out in the Secretariat Report, Braz il has continued with the gradual modernisation 
and streamlining of its trade regime, while also increasing average tariff protection, since its last 
Trade Policy Review in 2004. Brazil was able to take advantage of a favourable global economic 
environment as well as building on sound macroeconom ic policies and previous and recent reforms to 
achieve solid economic growth. However, the current world economic slowdown presents new 
challenges for the Government. To overcome thes e challenges, Brazil should be encouraged to 
provide additional impetus to trade and investme nt, including lowering effective tariff protection, 
reduction in the use of import prohibitions as well as ensuring greater predictability to the foreign investment regime. On the economic front, it is pos itive to note that the Brazilian economy grew at an 
annual average rate of 4.5% during 2004-2007, wh ich is a reflection of strong domestic demand and a 
favourable external environment. Furt hermore, in the first half of 2008 , growth attained an annual rate 
of 6%.although the situation would have cha nged as a result of weaker global activity.  
362. Brazil should be commended for ensuring that th e multilateral trading system remains at the 
core of its trade regime. We attest to the fact that Brazil is an active Member of the WTO. This 
testimony was also acknowledged by the Secretariat. We are pleased to note that Brazil has submitted 
a number of proposals to various WTO bodies and also took part in the GATS negotiations on  WT/TPR/M/212 
 Page 49 
 
 
  telecommunications and on financial services. Howeve r, Brazil has also neither ratified the Fourth 
Protocol on telecommunications nor the Fifth Protocol  on financial services. Like others, we would be 
interested in knowing the status of the ratification process.  
363. As a developing country, it is interesting to no te that Brazil has participated in a number of 
cases, before the Dispute Settlement Body. This shoul d be encouraged given the central role played 
by the Dispute Settlement Body in guaranteeing secur ity and predictability in the multilateral trading 
system. Nigeria is pleased to note as well that Brazil has played an activ e role in the quest by 
developing countries in addressing the issue of TRI PS and CBD. In that regard, Nigeria welcomes 
Brazil’s active participation in multilateral, re gional and bilateral trade agreements. We are 
encouraged by Brazil’s bold bilateral activitie s which cut across all regions as a means of 
complementing the multilateral trading system.  Nigeria acknowledges Brazil leading role and active 
contributions to the DDA negotiations, more impor tantly, her commitment to an ambitious and 
balanced outcome in the agriculture negotiations, wh ich is central to the entire negotiations. We also 
recognise Brazil’s support for a pro-development outcome.  
364. In conclusion, Brazil’s economic situation h as improved, since its previous trade policy 
review. The Brazilian exports performed strongly du ring the review period, increasing at a nominal 
average annual rate of almost 22% in U.S. dolla rs terms between 2003 and 2 007; while imports grew 
even faster, attaining a rate of 26% during the same period. However, Brazil’s trade in goods and 
services as a proportion of GDP fell slightly during the period under review; to about 26% in 2008 as 
pointed out in the Secretariat Report. We share government’s optimism in the sustenance of the 
current recovery, which is dependent on a number of factors, including the pace of growth in the 
world economy. We are also conscious of the fact th at growth prospects would equally be determined 
by Brazil’s ability to implement and situate moneta ry and fiscal policies within the context of its 
structural reforms. We believe this is a major challenge for the government.   
PARAGUAY 
 365. It is necessary to underline th e role played by Brazil in the WTO, where for some time it has 
stood out for its leadership and its determination in  the difficult task of building a multilateral trading 
system based on equitable rules that are, at the same time, adapted to take into account economic 
asymmetry and measures to promote the development of all its Members. 
366. There can be no doubt that Brazil is one of the foremost actors in the current Doha Round, 
where it acts as the leader of the G-20 in agricultu ral negotiations, a group of which Paraguay is a 
founding member and where we share the same vision of striving for less distorting agricultural trade. 
367. Brazil is of great economic and trade importance to Paraguay as it is the main destination for 
our exports, accounting for 16 per cent.  Its position is  even more important if we take into account 
trade within MERCOSUR, where Brazil accounts for over 51 per cent of Paraguay's trade. 
368. The role played by Brazil as a country of trans it for Paraguay's exports is also important as 
Paraguay has no coastline and the majority of its pr oducts are exported through the ports of Santos 
and Paranagua.  To this must be added the extrem e importance of the vast joint hydroelectric project 
at Itaipú, which makes a significant contribution in  an area that is of crucial importance today, 
namely, energy. 
369. We should also mention the similar integrati onist vision which unites Paraguay and Brazil, 
and this can be seen in the joint efforts in ME RCOSUR and LAIA, as well as in the current impetus in 
the UNASUR. WT/TPR/M/212 
Page 50  
 
  370. For these and other reasons, the de legation of Paraguay wishes to express its interest in seeing 
that this exercise is a successful one, helping to make better known the facets of one of the most 
influential economies in the world and defining the pa th to be followed in order to optimize Brazil's 
immense contribution to the devel opment and well-being of humankind. 
VENEZUELA 
 
371. First of all, we appreciate the Review under c onsideration as it has given us the opportunity to 
become more conversant with the performance of the Brazilian economy over the period addressed 
and has allowed us to understand it better. 
372. Brazil is extremely important to us, not only because of the size of its economy and the 
potential this represents, as many speakers have st ated today, but also because of the economic, 
political and trade links that have traditionally un ited our two countries.  In the Reports submitted, 
both by the Secretariat and the Government, our attention has been drawn to the way in which the Brazilian Government has maintained positive economic growth in a difficult international situation 
and how this has been used to achieve developmen t objectives, such as poverty alleviation, which can 
be seen from the UNDP and GINI indicators. 
373. The surplus in the trade balance and the e fforts made by the Brazilian Government to 
maintain a relatively stable inflation rate should be highlighted.  We have noted the various trade 
policy measures currently in force in the Brazilian economy.  We also acknowledge the efforts made 
by Brazil at the multilateral level, particularly in this  forum, where it plays an active role in almost all 
the areas addressed here.  In this regard, we urge Br azil to continue to play an active role for fairer 
and more equitable trade that takes into account the real needs of all developing and least developed 
countries. 
374. From the aforementioned Reports, and at the b ilateral level, we note the positive experience 
of the Brazilian economy and wish to pay tribute publicly to the administration of President Luis 
Inácio Lula Da Silva.  We also note that trade has continued to increase in recent years, making Brazil 
one of Venezuela's principal import markets.  We ho pe that the revival and strengthening of economic 
and trade relations in recent years will see the initiati on of trade that is mutually beneficial to both 
parties. 
URUGUAY 
375. We should also like to underline the active role  played by Brazil and the delegation led by 
Ambassador Roberto Azevedo in the work of  the WTO and in the negotiations under the 
Doha Development Agenda, where Br azil and Uruguay hope to obtain a balanced outcome in all areas 
of interest to developing countries, starting with agriculture.  I should also like to emphasize that 
Uruguay and Brazil share the same global vision of th e role of the WTO and the vital need to bring 
the current negotiations to a rapid conclusion. 
376. In the area of agriculture, both countries participate in the G-20 and in the Cairns Group and 
we promote the goal of phasing out export subsidi es;  regarding the negotiations on rules, both 
countries would like to see an improvement in the ex isting disciplines in all the areas of negotiation. 
377. Uruguay's bilateral trade relations with Brazil are the most important for Uruguay's foreign 
trade, representing the main destination for Urugua y's exports in 2008, with 16 per cent, and the 
principal origin of our imports, with 22 per cent.  
378. They are also defined by a large deficit for Uruguay.  WT/TPR/M/212 
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  379. In 2008, the trade balance showed a negativ e balance of US$626 million for Uruguay.  In 
2007, the deficit was US$502 million. 
380. In 2008, Uruguay's major exports to Brazil were  barley (13 per cent of the total), which 
increased by 87 per cent compared with 2007;  plastic  containers (9 per cent), which increased by 
20 per cent;  rice (7 per cent), whose sales fell by 30 per cent;  rubber (4 per cent), whose sales 
increased by 27 per cent;  wheat (3 per cent), which rose by 12 per cent;  and meat (3 per cent), which 
increased by 20 per cent, all in comparison with 2007. 
381. Uruguay's principal imports from Brazil in 2008 were  fuel (8 per cent of the total), an increase 
of 94 per cent in comparison with 2007;  motor vehicl es (3 per cent), which increased by 75 per cent;  
tractors (2 per cent of the total for the year), wh ich rose by 71 per cent;  cellular telephones (3 per 
cent), an increase of 79 per cent;  electricity (3 per cen t of the total), which was not imported in 2007;  
and maté (3 per cent), an increase of 34 per cent. 
382. There are also problems in our bilateral trade relations, inter alia , the use of non-automatic 
licensing for the import of a large number of products, the quotas imposed on imports of retreaded tyres, technical regulations, the application of discriminatory taxes on important economic activities, 
the small share of government procurement, or problems in trade in services faced by important 
sectors such as the audiovisual sector or ship repair. 
383. Nevertheless, we must undersco re and welcome Brazil's ongoing  availability for dialogue, 
which has enabled solutions to the majority of the problems to be found.  Proof of this has been 
President Da Silva's crucial decision not to extend th e list of products that were to be subject to the 
non-automatic licensing regime because of the intern ational perception of this legitimate measure 
conveyed, inter alia , by our President, as a matter of concern for Brazil's neighbours and other 
Members.  To this must be added President V ázquez's visit to Brasilia tomorrow to discuss the 
bilateral and regional agenda with  President Da Silva and to exchange views on the global economic 
crisis, his forthcoming visit to Washington and th e next summit of the so-called financial G-20. 
384. We should also like to emphasize the need to pursue efforts to give Uruguay more 
opportunities to participate in production chains, to  develop cooperation and integration in the energy 
sector still further, including the conclusion of the extra high voltage connection project between our 
two countries and joint development of biofuels.  Furthermore, MERCOSUR's external negotiations 
should be stepped up through free trade agreements w ith relevant trade partners and its rules made 
more flexible to allow smaller countries in the bloc  to have access to the international market through 
agreements both within and outside the region. 
385. To conclude, allow me, Mr Chairperson, to urge  the Brazilian delegation to continue to show 
leadership with a view to the rapid conclusion of the Doha Round, an imperative that cannot be 
delayed in the current economic situation, and to  assure Brazil of the unwavering support of Uruguay 
for this objective. 
PANAMA 
386. For Panama, Brazil is undoubtedly an important trade partner because the volume of our 
mutual trade was over US$140 million in 2007. 
387. Brazil's economy grew at an average rate of 4.5 per cent over the period 2004-2007.  It was 
able to take advantage of a favourable economic e nvironment to achieve strong economic growth by 
means of well-founded reforms and policies and also fi nds itself in a better position to deal with the 
slow-down in the global economy.  It is also worthy of note that unemployment fell to 7.8 per cent in 
mid-2008 and that it was accompanied by an increase in real wages. WT/TPR/M/212 
Page 52  
 
  388. We should like to underscore Brazil's impor tant role in the Doha Round multilateral 
negotiations, particularly as regards the settlement  of disputes and Aid for Trade, as well as its 
leadership within the G-20. 
389. Panama would also like to congratulate Brazil on its efforts to maintain liberalization as the 
focus of its development policy.  We hope to hear more interesting details concerning its trade policy 
in the replies to the questions submitted by other Members. 
SOUTH AFRICA 
390. As a young activist in South Africa in the 19 80’s I followed closely the democratization of 
Brazil, the rise of its trade unions and social movements, culminating with the election of President Lula. This process foreshadowed the birth of our ow n democracy in South Africa, with the release of 
Nelson Mandela from Robben Island in  1990 and our first democratic election in 1994. The quest for 
dignity, equality, freedom and democracy is clearly shared by both our peoples. 
391. As a founding member of GATT, Brazil has been and continues to be a leading player in the 
multilateral trading system. South Africa too w as a founding member of GATT although our people 
were not free. As we re-joined the multilateral tr ading system in 1994 as a new democracy we have 
drawn on the rich experience and contribution Brazil has made. From the very onset of the GATT in 
1947 Brazil led the debate for a development oriented  International Trade Organization. Brazil made 
alternative proposals to that of the US and the UK and succeeded in shaping the architecture of the 
ITO. Alas, as we all know the US Congress rejected  the ITO in 1955 leaving us with the ad hoc 
mercantilist GATT until the creation of the WTO in 1995. 
392. Today as we think of strengthening and reforming the WTO to make it a genuine global 
public good we would profit by reviewing the many  development provisions contained in the ITO 
Charter.  
393. I have also had the privilege of getting to know and learning from Brazils’ previous  
Ambassadors to the WTO Luiz Felipe de Seixas Correa and Clodoaldo Hugueney. Roberto Azevedo 
continues this proud tradition. In particular, we salu te the contribution that Brazil has made in leading 
the formation and subsequent co-ordination of the G20, a platform that continues to provide a voice 
and leverage for developing countries in the D oha Round that is unprecedented in previous GATT 
Rounds. 
394. Since its last review, The WTO Secretariat Report has correctly commended Brazil on its 
macro-economic reforms. 
395. Buoyed by the high levels of growth in other emerging markets, including the rise of the 
BRICS (Brazil, India, Russia, and China) of which Brazil is an important member,  and the rise of 
commodity prices, Brazil recorded an annual aver age growth rate of 4,5% from 2004-07 – and up to 
6% for the first half of 2008. Brazil was thus able to  contribute significantly to reducing its high levels 
of inequality and make a significant contribution to  reducing poverty – propelle d by President Lula’s 
Anti-Poverty Campaign. 
396. This golden age of developing country growth  that spread throughout Asia, Latin America 
and even Africa was to be interrupted dramatically in the latter part of 2008 as the banking crisis in 
the US created by the sub-prime mortgage ma rket turned into a worldwide contagion. 
397. It is important that Brazil be commended for the reforms it has undertaken, and continues to 
undertake. Although trade in goods and services as a proportion of GDP fell slightly during the period 
under review, it is noteworthy that between 2003-07 e xports grew at a nominal average annual rate of  WT/TPR/M/212 
 Page 53 
 
 
  22%, and imports an even higher 26%. Significantly,  these impressive export growth rates occurred 
against a background of the real appreciating by  over 60% in nominal terms between 2004 and mid 
2008. 
398. Further, we commend Brazil on the progress it has made in liberalizing its foreign exchange 
regulations, its foreign direct investment regime, as well as the discipline it has displayed in pursuing 
primary fiscal surpluses and inflation targets. Such sound macroeconomic policies have yielded 
impressive results in terms of employment growth, wage increases and productivity growth.  
399. Mr Chairman, South Africa enjoys a strong  and growing bilateral trade and economic 
relationship with Brazil, and our  two regions, SACU and MERCOSUR , have conclude d a bilateral 
preferential trade agreement. South Africa’s bila teral trade with Brazil for the years 2003-07 has 
doubled from just under 1 billion dollars to about 2 billion dollars – reflecti ng an annual growth of 
23%. 
400. Although the growth of our trade has been impressive, the potential is far greater. As 
members of IBSA (Brazil, India and South Africa)  we have developed a programme to expand our 
trade, investment and economic relations in a mutua lly beneficial manner. In the next few months we 
will be undertaking further steps to strengthe n this trilateral economic relationship. 
401. I will not do justice to our mutual relationship if I do not also point to another great 
commonality between our people – a love for foot ball. As the date for the 2010 world cup draws 
nearer, we wish to warn that our national soccer t eam – Bafana Bafana – are determined to trounce the 
great Brazilian team in South Africa. However, we have planned to make up for this with Brazil on 
the 16th December 2010, which is our national day of Reconciliation – a public holiday – and which is 
also the anniversary of the signing of the SA CU-MERCOSUR preferential trade agreement.  
HAITI 
402. Since 2007, as a result of strong internal dema nd and a favourable external environment, 
Brazil once again experienced growth, which reached a rate  of 5 per cent.  In the current crisis, even if 
growth in 2009 remains at a ceiling of 2 to 3 pe r cent, this would be a respectable performance. 
403. As the 10th largest economy in the world, situated between Canada and Russia, in 
January 2008 Brazil became a creditor country:  its reserves - some €155 billion - now exceed the 
amount of its public and private external debt.  Th e latter does not increase in proportion to the gross 
domestic product (GDP) when the dollar rises, but on the contrary falls. 
404. In April 2008, Brazil became a "secure country" for investors.  Inflation, maintained at around 
5 per cent, might increase but within reasonable limits. 
405. Slowly but steadily, poverty is diminishing in Brazil.  In 2007, the number of Brazilians 
living below the poverty threshold was less than 20 per cent.  Almost 600,000 families have left 
poverty behind.  The disadvantaged are benefiting fro m renewed growth and from allowances such as 
the family allowance currently di stributed to 11 million households.  Some 7 to 10 million people 
belonging to the "poor" category have moved up to the "lower middle class" category, although their 
position remains unstable. 
406. The census by the Statistical Institute (IBGE) also shows that population growth is slowing 
down and the population is becoming older.  Both in  the countryside and in the cities the number of 
children per family is diminishing.  Of the 195 m illion inhabitants, 83 per cent live in urban areas. WT/TPR/M/212 
Page 54  
 
  407. At the bilateral level, Brazil has a strong presence in Haiti.  It is one of the Latin American 
countries that have sent the most troops to the United Nations Stabilization Mission in Haiti 
(MINUSTAH), which it has commanded since 2004.  Several hundred Brazilian energy, agricultural 
and construction technicians are also present in the field. 
408. The date of 18 August is Haitian- Brazilian friendship day.  It recalls the "match for peace" 
between Brazil and Haiti in 2004. 
409. The Haitian delegation would not li ke to conclude its statemen t without referring to Brazil's 
active participation in the work of the WTO.  Br azil plays a leading role among developing countries, 
especially in connection with the Doha Development Agenda (DDA).  Together with other countries, 
it has submitted a relatively large number of proposals, inter alia, in areas covered by the DDA with 
the aim of liberalizing trade in services and also  concerning agriculture, non-agricultural market 
access, the Rules Negotiating Group and intellectual property rights. 
ANGOLA 
 
410. As we know, Trade Policy Review (TPR) is mo st important and fundamental activity for 
WTO because is allow a member to improve a bett er transparency and understanding about the trade 
conditions applies in each country member and ensure transparency and previsibility of the 
multilateral trade system.  
411. As part of outcomes and results of the Uruguay round agreement  is give the opportunities to  
members assess the impact of theses policies on the world trade system and encourage the 
government  to respect the WTO rules and disci plines and the better know ledge and understand of 
their own  national policies and specific situations. 
412. Since the last trade policy review of Brazil, in November 2004, after the world economic 
recession and the monetary crises of the end of 1999, the Brazilian economy was growing very fast. 
413. The report also alludes to the willingness of Braz il to continue its process of liberalization and 
economic reforms including measures to benefit th e economy and of world trade after a report on the 
trade policies and practices of Brazil issued  by the Secretariat the WTO at the time. 
414. These efforts have borne fruit as they have he lped to increase the flex ibility of the Brazilian 
economy, as evidenced by the resistance it showed the face of various shocks in recent years. The 
report also highlighted the importance for Brazil to fight against economic distortions and barriers to 
market access remain. The lowering of rights w ould facilitate the access of consumers and producers 
Brazilian products more competitive in the world.  
415. According to the report, the ambitious libera lization program would benefit not only Brazil, 
but could also contribute to the success of the Doha  development, as Brazil has helped to advance and 
which was for him a major challenge given th e scope, worldwide, its business interests.  
416. The report also noted that like other emerging markets, especially Latin America, Brazil has 
undergone a series of economic shocks internal and external overcoming the negative effects of the 
currency crisis of 1999.  
417. The economy experienced a strong recovery in 200 0.  Despite an international disadvantage, 
caused by the deterioration of the global envi ronment and increased aversion to emerging markets 
represented. The same scenario of economic and fina ncial crisis we resurface four years later, his 
second review of trade policy at WTO. This time ac centuated by market vol atility and stock market 
uncertainty about the prospects of coming short and medium term.   WT/TPR/M/212 
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  418. During the past four years, Brazil has sought to strengthen its institutions and its policies and 
increase its resilience to shocks, a further adjust ment of macro-economic regulation of the smooth 
current, macro - economy has been strengthened by th e application of constant  monitoring of inflation 
in the context of a monetary policy and improving th e performance and quality of  fiscal consolidation. 
The production, consumption and economic activit y is accelerating, unemployment has gradually 
declined and inflation was under control.  
419. Macroeconomic stability is seen as a prerequisite to be completed if we want to achieve a 
permanent economic growth and social justice. Ec onomic growth is also being pursued through the 
implementation of reforms in fiscal, social and em ployment. These reforms have boosted productivity 
and growth in Brazil.  
420. At the multilateral level, Brazil has marked a c ontinued active participation in the preparation 
of the 6th Ministerial Conference in Hong Kong in December 2005, the July Framework in 2006 as well as the Ministerial in July 2008,  for the establishment the final te rms in the fields of agriculture 
and NAMA to the WTO, which should be the first step for the conclusion of the Doha Round.  
421. As a founding member of the G-20, Brazil has pl ayed a leading role in the negotiations on 
agriculture, NAMA, Trips, trade facilitation and techni cal assistance and capacity building developing 
countries and least developed.  
422. The same G20, which in the past was a mere forum for political dialogue diplomatic e for 
economic harmonization and regulatio n of economic and trade relati ons between developed countries 
meeting in the G7, 8 and emerging economies includi ng Brazil, just after the crisis in financial 
markets in 1999, has taken of the importance with the adoption of um plan or series of shares with a 
timetable at the Washington Summit in October 2008,  to reform the rules and institutions of the 
financial system and International Monetary hard hit by the current crisis with solutions and plans for 
adoption have not had to when the desired effects.  
423. At this time of uncertainty, where we all want to understand exactly what is happening 
globally the Brazilian economy will be affected, even the most optimistic analysts will be able to 
declare the end of time. A recent IMF report notes that the global economy should grow by around 
3% in 2009 - which set a global recession.  
424. Emerging countries like Brazil, they should suffer much less, according to the IMF. But now 
seems to have been clearly not free. In this cont ext of volatility, so that important decisions - on 
investment, labor, pricing policy, market strategies - will be taken. the effects of the crisis are already 
being felt and should intensify over the next year. 
425. If in 2008 the Brazilian economy has achieved pos itive results with a gross domestic product 
of between 6% and 5% due in particular to th e high level of liquidity of the main consumer 
businesses, banks and the government, with the expa nsion of credits, investment jobs, consumer 
confidence, however, the rate of inflation and exch ange on the evaluation of the Real currency remain 
areas where the government should work harder.  
426. With the financial crisis, high and positive c onditions for obtaining funds for working capital 
to enterprises increased lack of  confidence and lower levels of consumption in developed country 
markets e decline in the internati onal market prices of major products for which the exporter is Brazil, 
would reduce its GDP from 3% to 2% as estimated by  the IBGE (Instituto Brasileiro de Geografia e 
Estatística).  WT/TPR/M/212 
Page 56  
 
  V. REPLIES BY THE REPRESENTATIVE OF BRAZIL AND ADDITIONAL 
COMMENTS 
427. As we are about to enter in this final phase of the Fifth Trade Policy Review of Brazil, I wish 
to thank you personally, Mr. Chairman, for the sure and efficient way you conducted our work. It was 
an honour for us to have you inaugurate your term at  the TPR Mechanism with this review of Brazil’s 
Trade Policy. Also, I must again proffer words of  praise to our discussant, Ambassador Yacob Noor, 
from Malaysia, for his insightful comments and inspired thoughts that have guided the discussions on Brazil’s TPR. 
428. My delegation – and I must thank them again fo r all the hard work – will return to Brasilia 
glad with the fact that a large number of delegations  displayed a keen interest in relation to Brazil’s 
policies in so many different areas. We received what was for us a record number of 823 written 
questions from 27 delegations. In our first day of work, 40 countri es of all sizes, level of development 
and from all continents intervened in the debate. We  noted, with particular satisfaction, that a number 
of developing countries came forward and expressed th eir views and concerns. Some also shared their 
own experiences, in a warm display of South- South solidarity, a very welcome development, 
especially in time of crisis. 
429. This encourages Brazil to continue its wo rk supporting the multilateral trading system, 
enhancing its human dimension and striving to im prove it in ways that never lose sight of the 
development imperative. It is with this spirit that Brazil engages in the Doha talks, seeking results that 
ultimately offer new opportunities for social inclusio n and poverty alleviation. We will continue to 
coordinate with other developing countries, indivi dually, in the G-20, and with other developing 
country groups. We will continue to interact wi th all WTO partners with transparency, in a 
constructive mood, and in a problem solving mode. 
430. Rest assured, Mr. Chairman, that the comments, suggestions, and criticisms we received from 
Members are most welcome and will be duly conveyed  to the different branches of Government for 
reflection and, whenever required, action. 
431. With more than 800 questions to answer, my firs t comment is that we have been too soft on 
other countries by presenting less than 10 questions for each TPR, we will make more effort now to 
put questions to other countries.  I will try to follow the Themes document presented by the Secretariat. We already presented on Monday practically  all of the answers, around 30 or 40 questions 
were not answered, and they were answered yesterday,  probably the Secretary is going to distribute an 
addendum and a corrigendum to the questions we presen ted on Monday.  We tried our best to give the 
most complete answers to those questions, and we  hope that delegations were satisfied with the 
answers we gave, if that is not the case we are willi ng to give complementary information either today 
or in future contacts.  I'll try to address the main poi nts that were raised here, and not try to repeat the 
answers which are already given in written form.  I'll follow the Themes document presented by the 
Secretariat. 
432. On the first part Economic and Institutional E nvironment a number of questions, interesting 
questions were asked on what is the economic situation of Brazil, and what are we doing to address 
the present economic crisis.  I think it was clear from Ambassador Azevedo's intervention on Monday, as well as from the interventions of a number  of delegations that Br azil is well positioned to 
face the challenges of the crisis.  We have been ta king some measures in order to answer to that, for 
instance in September 2008 with a view to easing the liquidity squeeze, the Brazilian Government has 
injected liquidity in the foreign currency market, a nd in order to try to avoi d excessive depreciation of 
the Real the Central Bank has been participating in the currency market not to change levels of the 
currency but in order to avoid excessive fluctuation of  the exchange rate.  At the same time, given the 
international credit crunch, the Central Bank has acted  to revert the difficulties in the Brazilian credit  WT/TPR/M/212 
 Page 57 
 
 
  market, it has taken action such as the reduction of Brazil requirements for banks, the elimination of 
taxation on financial operations, and increasing accel erating the liberation of credits by the 
governmental banks.  At the same time, on the fiscal  front since we have had the possibility due to 
prudent fiscal policies of accumulating surplus on gove rnment accounts previous to interest payment, 
that puts us in a rather good s ituation in order to maintain in place the growth acceleration 
programme, therefore to maintain a programme of i nvestments in infrastructure without the risk of 
losing control of governmental accounts.   
433. On fiscal policy there were a number of qu estions and a number of criticisms on the 
complexity of the tax system in Brazil.  Of course the first ones to criticize the complexity of our tax 
systems are ourselves and our own government, and th at is why the Government has presented to 
Congress a Bill to reform the tax system.  A number of questions were presented asking for more 
details on that reform, and basically what we are tr ying to do is to reduce any distortions of the 
system, to simplify the system, to unify the value added taxes at the federa l government level and at 
the same time to streamline the pr ocedures and the legislation at the state government level.  As you 
know, Brazil has a federative system of government , where local governments have authority for 
taxation, and there is sometimes a lot of divergen ce between the decisions of local governments, so 
the tax reform of those who provide for mechanis ms to streamline and simplify, and reduce those 
differences. 
434. In relation to MERCOSUR, there was a lot of interest in our integration process, and we are 
glad that many delegations manifested an interest  in knowing how we are proceeding in that area, of 
course this is not a MERCOSUR TPR, but it certainly is  always in our interest to provide information 
on the process.  So in our interest we have expande d what we already stated in our national document, 
on what is going on in terms of the customs union, the efforts that are being made to improve the functioning of the customs union, as well as new instru ments that have been developed to deal with 
the integration process as a whole, like the struct ural convergence fund, as we have mentioned that 
fund is mainly financed by Brazil, and during th e MERCOSUR summit last December President Lula 
announced a decision to double Brazil's contribution to the structural fund, and a decision was also 
taken on the creation of a fund to help finance smal l and medium size enterprises, in order to make 
them benefit from the integration process. 
435. There was also a lot of inter est in the automotive policy in MERCOSUR.  As we explained, 
the automotive policy that was originally negotiated di d not come into force, so the automative sector 
in MERCOSUR is guided by bilateral agreements, but  we renegotiated those agreement last year and 
we intend to start very soon the negotiation of a new MERCOSUR wide policy.  It is important to 
stress that even if it is regulated by bilateral agreements, trade flows duty free in MERCOSUR in the 
automative sector, and I would also call your attention for the fact that this is a very particular sector with a very particular market structure.  As we ha ve seen in the measures that  have been taken in the 
context of the fight against the crisis, it is a sector that deserves special attention and special policies 
everywhere.  That is why this sector has been, w ithin the conformation of MERCOSUR, always dealt 
in a very specific way. 
436. In relation to the other trade agreements, it is  important to notice that today MERCOSUR has 
free trade agreements with all the countries in Sout h America except for Suriname and Guyana.  The 
implementation of those agreements is moving as fo reseen and there are some efforts to accelerate the 
implementation and anticipates some liberalization pr ocesses.  Of course this will depend very much 
on the unfolding of the present economic crisis.  MERCOSUR has also signed a trade agreement with 
Israel which is pending ratification by congress a nd preferential agreeements with India and SACU, 
and is under negotiation with the Gulf Cooperation Council, Egypt, Jordan, Turkey, Morocco, in the 
answers there are some details on the questions that  were asked in this respect.  Some questions 
mentioned here on Monday were made on the GSTP Negotiations.  As you know the third round of 
negotiations of GSTP is taking place since 2006,  and this round encompasses 22 participating WT/TPR/M/212 
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  countries from Latin America, Africa and Asia, duri ng the last Ministerial Meeting which took place 
in Accra, Ghana last year, the pa rties reached the consensus on the establishment of a general margin 
of preference but we are still discussing the level of that margin of preference, so of course, the GSTP Negotiations were taking place at the same time as the Doha Round, therefore sometimes there were some difficulties of focusing because developing countries have a sparse negotiating resources, and 
generally the same negotia tors were occupied in both negotiations.  Also we  reaffirm our commitment 
to implement a duty free, quota free scheme, as we have stated in the past, in principle, that scheme would be implemented in the context of the Doha  Round results, simply because that would facilitate 
its process through congress and no other measures that government would have to take, but of course 
depending on the developments in th e Doha Round, we would have to  take a decision on whether to 
implement it autonomously or maintain the link with the negotiations. 
437. On restrictions to foreign direct investment, Brazil has already an open system, in fact we 
have some pre-established restrictions they are clear ly stated, they are limited to some specific sectors 
like nuclear energy, hydro-electric power lines, but the important point here is that they are pre-established and transparent.  We do not have any screening mechanism, we do not have any 
examinations in terms of national security or any ot her procedure that would be discretionary in that 
sense.   
438. Once the companies have invested in Brazil, and this is very important because we have seen 
that there were a number of doubts in different policy areas on whether there was discrimination in Brazil depending on the origin of the capital, and so  it is important to understand that under Brazil 
constitution, Brazilian companies, that is companies established in Brazil, are treated equally in our 
policies, independent of the origin of their capita l.  This is valid for government procurement, 
consumer protection, competition, this is valid for any other legislation.  So once the investment is 
accepted, the company becomes a Brazilian company,  and it has the same treatment under Brazilian 
Law. 
439. Moving on to Trade Policies by Measure, on customs procedures we are glad to see that there 
was a lot of interest on the technical group on Trade Facilitation that was created in Brazil in order to 
analyse customs procedures, licensing procedures etc ., in order to simplify those procedures both in 
our national documents and in the answers you will find a number of reference to measures that were 
already taken in that respect.  The idea there is to  simplify the procedures to have greater resource to 
risk analysis in controlling imports and exports, an d reduce the direct intervention by the agencies and 
make some procedures more automatic.  Here I ta ke this opportunity to explain the issue of non-
automatic licensing in Brazil.  It has called the atten tion of many delegations the fact that one third of 
tariff lines are subject to some sort of non-automatic  licensing, and here it is important to understand 
that under our system, because we have unified the system to control imports under SISCOMEX system, which is an electronic system where you process all the customs declarations, and the authorizations by different organs, that means that any time you need for instance a sanitary 
certificate, or you have to verify if a medicine is registered etc., that comes into the electronic system, 
and therefore it becomes a non-automatic licensing.  So non-automatic licensing is present there in 
order to unify and facilitate the process of the aut horizations, so you don't have to go to customs and 
get an authorization and then go to agriculture and ge t another authorization, and then go to health.  
All the Ministries are integrated in the same system and that is  why the number of non-automatic 
licensing seems to be very big, but if you go to other countries and count the number of different 
licenses that are required for import that would probably amount to the same or a greater number. 
440. Still talking about non-automatic licensing, a numbe r of delegations referre d to the episode in 
the beginning of this year whereby for some days  we increased the number of non-automatic licensing 
for statistical following purposes, and that measur e was reverted by President Lula.  I think the 
important point here is beyond answ ering as we have answered in the questions that we have no 
intention to re-introduce the measure, the important th ing that I would like to call your attention to is  WT/TPR/M/212 
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  that not only was it a decision by the President to revert but the measure generated a lot of public 
opposition, and public opinion manifested itself very strongly against the measure.  That means that 
we believe that the instinct against reintroducing so me discretionary practices in import is very rooted 
in Brazilian society today.  A number of delegations called the attention for the fact that there was an 
increase during the average tariff during the review period.  As we have explained in our document 
and also in the answers that increase was due to th e increases that were made to textiles and footwear 
which were increased to our bound levels at the WT O.  Even with that, Brazilian industrial imports 
have increased in growth 177% from 51 billion in 2004 to 141 billion in 2008.  Even if you take those 
two sectors and take the year of 2008, because the in crease was by the end of 2007, if you take the 
sectors of textiles and footwear in 2008, even with  that increase, imports increased around 30%.  So 
that means that increase which was an increase to the bound levels did not create a non-surmountable 
obstacle to trade, on the contrary, trade continued to  increase, so in fact it was an increase that serves 
as a mitigator to the strong increase that we are facing in those sectors.  The Secretariat Report also 
mentions chemicals in the context of  those increases, here I should call your attention to the fact that 
there were no sectoral increases in the chemical sector s, those are topic increases to some tariffs, and 
from time to time, MERCOSUR changes some tari ffs due to changes in the productive sector, some 
products stop being produced in the region, so ther e are always topic change s increases and decreases 
of tariffs, and in the chemical sector therefore, th ere is no particular change  in policy, and the modal 
tariff for the sector remains at 2% with the average applied tariff around 7%.   
441. Also in relation to tariffs we think it was ve ry interesting to see that a number of countries 
attached a lot of importance to the fact that the bound rates of Brazil are much higher than the applied 
rates.  It was interesting to note that the countries who attached importance to that fact, are the same 
countries that in the Round are saying that differe nce has no value in terms of concessions, so I am 
happy to see that they now recognize that there has no value in the negotiations.   
442. Some questions were asked in terms of our trad e defence mechanisms, in particular, the use of 
the national interest clause.  As you know, not all countries have a national interest clause in trade 
defence instruments, we do have it, in our system the investigating authority provides its results to a 
Chamber of Ministers, which is formed of 7 Ministers, which are the Ministries who have some bearing on trade, and those Ministers have to make a decision on whether to impose or not an anti-dumping duty, a countervailing duty or a safeguard.  So those Ministers can take a decision on the 
basis of national interest decision, not follow the recommendation by the investigating authority in terms of imposing a duty.  They can decide on the other direction on the base of national interest.  
There are no pre-determined national interest directiv es, that's a political decision taken by Ministers 
on a case-by-case basis.  Some questions addressed  ongoing investigations, in those cases we have 
answered that, of course, we are not providing answers on procedures that are ongoing on a confidential basis, but certainly if there is some i rregularity identified or some problems identified we 
would be glad to consult with the countries concerned in those cases. 
443. On technical regulations and SPS measures, there was also a lot of interest for the guide on 
good regulatory practises that we have put into place during the review period.  The intention of that guide is to allow for all agencies in Brazil that are in the business of regulating, to follow more or less 
the same procedures, and respect the internationa l commitments of the country, because, of course, 
some of the agencies are more used  to the international discussions, others are not really following the 
issue that close, so the code would be a good opport unity for all of them to be acquainted with the 
international obligations, and the best practise intern ationally in that area.  A number of delegations 
asked questions about the numbers of regulations in  Brazil, we do not have those numbers right now, 
but we are developing a national database on technical regulations and we expect that by the next TPR 
we will be able to answer those very specific questions. 
444. On SPS measures, there were a number of questions on that, a lot of those address the ways 
that we proceed on risk analysis, and we have expl ained more or less what are the procedures which WT/TPR/M/212 
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  are not different from most other countries.  There was some specific questions that we addressed on 
bilateral discussions, and we will continue to do so  beyond the information that we have given in the 
specific answers.  We have also answered the i ssue that Ecuador raised, we had not answered on 
Monday, but now we have answered the questi on by Ecuador on crustacean.  Some questions 
addressed the issue of time lines for risk analysis and regionalization.  The fact is that in Brazil, as 
well as in other countries, we don't have a statutory time limitation for risk analysis, or analysis of 
regionalization, but as we have stated in the SPS committee, we are very interested in discussing the issue of time limits for those kinds of analysis, and we see that a number of delegations are interested in that so we look forward to discussing this issue further in the SPS committee. 
445. On the trade and environment area, we note with satisfaction that a number of delegations 
asked for information on our policies on bio-fuels, and the sustentability aspects of that technology, 
and we tried to answer in a proportionate way to the scope of the exercise, in as much detail as we 
could.  The measures that have been taken to ensure  that bio-fuels are of sugar cane remain one of the 
most advantageous bio-fuels in terms of their impact  on the environment.  Not only because of the last 
reduction on CO
2 emissions that it allows, but also for the fact that the bi-products are increasingly 
being utilized either to produce fertilizers or to prod uce electric energy.  In fact today cogen electricity 
from Cogeneration is increasingly an impor tant source of energy in Brazil. 
446. On measures effecting exports taxes, we have also answered a number of questions, although 
we have a legislation that allows for the impositi on of export taxes in practically any product except 
for coffee that has a specific list,  perhaps because in the past it w as the object of export taxes, and 
now it is forbidden in the legislation the impositi on of export taxes on coffee, but the legislation 
allows for the imposition of export taxes on a number of products, but in practise we have a very 
reduced scope of export taxes, one is for economi c reasons, the other two are for other purposes like 
the one we have on small guns, or the ones we have on export of cigarettes, those are taxes that were 
created for control purposes rather than economic purposes. 
447. Some questions were asked on export finance a nd credit programmes, here we must say that 
the most important programmes in that area are the PROEX on the export financing, BNDES EXIM 
programme also on export, and for the long term fina ncing in Brazil, the BN programmes.  All those 
programmes cover if you want market failures, becau se due to the fact that the Brazilian economy was 
not stable for some time, we do not have a long te rm credit market provided by the private sector, nor 
export financing in small and medium companies.  So  PROEX was created mainly  with that objective.  
PROEX was the object in the area of equalization, and of a long dispute settlement process here at the 
WTO it was modified according to the decisions of the Appelate Body, so we don't think there is a 
consistency problem with the PROEX or with BN DES EXIM programmes.  All of those programmes 
respect the market benchmarks and they act in areas where we do not have private sector in Brazil, so 
they respect the international benchmarks for inte rest rates used in those financing programmes.  
448. Some questions were asked in relation to our competition law, especially, we have an active 
system of control of competition.  There is a Bill in Congress in order to restructure that system, that 
would simplify notifications of mergers and would streamline this system by unifying the agencies 
that today have to coordinate themse lves being to indifferent Ministries. 
449. On government procurement there was a lot of inte rest in our legislation and practices, I think 
we were able to demonstrate that we have quite an open government procurement system, and a very 
transparent one that increasingly relies on electronic pr ocedures.  We have an internet portal which is 
called Comprasnet, which is launched and where we pr oceed with electronic bids which have in fact 
become mandatory in a number of cases.  Further steps in relation to transparency in the use of 
information technology are under way, including th rough a bill in the Congress that would amend the 
general law of tenders.  Again some questions we re asked about discrimina tion between national and 
foreign providers, I should stress that as I stated , all foreign companies established in Brazil are  WT/TPR/M/212 
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  Brazilian companies and there is no discriminati on between companies with capital from foreign 
origin and capital from Brazilian origin for govern ment procurement purposes.  Foreign companies 
can participate through a legal representative in Brazil so it is quite an open system even if we have 
not adhered to the government pr ocurement agreement and there is  no intention of the Brazilian 
Government to move in that direction. 
450. On IPR issues we note with satisfaction that a number of delegations me ntioned our efforts on 
the enforcement area, the creation of the Nationa l Council to combat piracy was duly noted by a 
number of delegations, we have provi ded some numbers on the results of that effort, we think it is an 
innovative effort to put together a Council which is  formed both by government agencies and private 
sector representatives to conduct a wide programme on enforcement of IPR laws.  A programme that 
will not only reinforce repressive actions, but also act in the educative side and also discuss economic 
measures like reducing taxation in certain areas in order to move people into buying legal products.  
In that area we have noted that some delegati ons expressed preoccupation with what would seem to 
them to be a contradiction between our national commi tment to combat piracy and some positions that 
we would be taking in their opinion in international bodies.  I would say that there is a difference in 
making all the efforts to ensure that we fulfil w ith our obligation under the TRIPS Agreement and the 
WIPO Agreements and accepting that those disciplin es would be increased.  In fact what we have 
seen is that some members not being able to impos e their will in this Organization, happily so, are 
trying to introduce TRIPS plus obligations in fora wh ere this discussions is not adequate and where in 
most cases officials are not prepared to deal with  them like the World Customs Organization, or the 
World Health Organization.  In fact in some ca ses with legislation like we have seen in the case of 
apprehension of generic products, that we have brou ght to the attention of the members of the WTO, 
going even against what we understand are obligations under the WTO.   
451. Some delegations mentioned also the issue of th e backlog of patents, the number of years that 
if necessary in Brazil to obtain a patent, it is a problem that we do recognize.  Our institute for international property has had a number of difficulties in the past in terms of personnel and resources, 
this is being corrected, we have given in the answer s the precise information on what has been done in 
that respect, and what are the objectives and the goa ls, and the goal is that in a number of years we 
will be able to process all the pending issues as well as go from a 7 to a 4 year average time limit for 
the examination of patents requests. 
452. On sectoral policies a number of questions were  asked about agricultural support, and there 
maybe because Brazil has been a champion of reduc tion of subsidies a number of questions were 
addressed to us in terms of our subsidies.  The fact  is that those countries will be frustrated to see that 
Brazilian levels of subsidies in agriculture are indeed  very low.  The Secretariat has used extensively 
the documentation by the OECD, and there you can see that the PSE of Brazil although increasing lightly from 4% in 2004 to 6% in 2006 is still very low if compared to the average OECD of 30% or 
with the records of 58 or 34% of certain OECD member s.  In fact most of the subsidies of agriculture 
in Brazil are directed to small family farmers, and subsidies to commercia l farmers remain under de 
minimis levels.  Some delegations noted that we have some notifications pending in agriculture and 
we have already updated the notification in respect to  market access and export subsidies.  We intend 
to do the same with domestic subsidi es in this first semester of 2009. 
453. We received some late questions by the EC on the state aid programme to fisheries, we are 
answering most of them, I think we are answering in fact all of them, but eventually if some details 
were not as well covered as they would like we would be willing to continue discussing there.  
Basically, all the aid programmes in Brazil take very  much into account the sustainability aspects of 
those programmes, fisheries is not a well developed sector in Brazil, a lot of the companies operate 
with chartered boats so part of the programmes ai m at substituting charters by a new boat, and that 
means that this does not imply an increase in the ca tch levels.  Some questions  were addressed to our 
new programme of development of production, those programmes encompass a wide array of WT/TPR/M/212 
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  measures.  The main idea there is to coordinate efforts by the private sector and government in a 
number of different areas in or der to improve infrastructure to simplify procedures to develop 
technology programmes, and to a certain extent to correct distortions from the fiscal system. 
454. Turning to services, in the energy side the Br azilian National Agency, BNP is interested with 
the organization announcement and promotion of public biddings for the development of new oil 
fields.  The ANP has realised ten rounds of co ncessions through public bidding, in which both 
national and foreign companies have been granted to  explore, develop and exploit areas of interest 
and there again, no differences made between national and foreign investors when participating in the 
biddings for the execution of contracts.  The newl y discovered oil reserves in Brazil in the pre-salt 
areas in the Atlantic require large investments to be exploited and they imply technical difficulties 
associated with exploration of oil below 4,000 metres in fact 6,000, 2,000 of water and 4,000 on the 
seabed.  Given these specificities of the new di scoveries, the possibility for a new regulatory 
framework for those specific areas is being studied, th ere is no decision in this respect yet, in any case 
the production of pre-salt could double Brazil's cu rrent production of oil by 2020.  It should be 
stressed nevertheless, that the reserves outside the pre-salt area and the contracts  already concluded 
will not be affected and the present regulatory system remains.   
455. On financial services members raised some questions about the status of ratification of the 
fifth protocol, and as we have explained in the past  and answered in the questions we still have some 
procedural matters to solve before we can ratify th at protocol.  In any case as it is widely recognized 
the Brazilian system is well regulated and has proven it self resilient in the face of the credit crunch.  It 
should also be noted that the Brazilian revised offe r in the Doha Round had commitments in that area 
that go beyond what we had in the fifth protocol, so we expect that through the conclusion of the 
Round and the correcting presentation of offers by the other countries that are satisfactory to us we 
will be able to go beyond the fifth protocol.  On e important event in the covered period was the 
liberalization of the reinsurance sector, this is to be  undertaken gradually and it is important to analyse 
how those changes are going to be absorbed by  all economic agencies, including consumers and 
services suppliers before giving further steps. 
456. In telecommunications the Brazilian market is  quite open and foreign operators have the 
greatest market share.  Some questions were asked  about the possibility that exists in the law of 
restricting foreign participation in telecom companies,  that possibility was never exercised and in fact 
foreign companies are important operators in Brazil,  for instance Telefónica of Spain has more fixed 
telephone lines in Brazil than in Spain.   
457. Again the Brazilian revised offer in the Doha  Round negotiations includes commitments in 
telecom services, binding the current level of market a ccess.  There was also in the air questions about 
Brazilian ratification of the fifth protocol.  No w those that followed the services negotiations know 
the story, after negotiating the fifth protocol it was brought to Congress and it was pointed out that 
there was some commitments that were not comp atible to our policies and therefore it was not 
possible to ratify.  In order to correct that, we have proposed some modifications in our schedule in 
that respect.  Those modifications were not accepted by a number of members, therefore it will not be possible to ratify the fifth protocol, and again wh at comes up in the Doha Round will be the Brazilian 
schedule on telecoms in the future. 
458. Some specific questions were asked in terms of regulatory matters like pricing, price indexes, 
those are answered in the question in detail, with re ference to the legislation, again what is important 
is that ANATEL has prepared a progr amme for the regulation that they  are expected to introduce in 
the following years, that gives a lo t of transparency and predictability to regulation in that period. 
459. 
In air transport Brazilian policies are under a comprehensive review, as you know we have 
had, by the end of 2007 a number of problems in the air sector in Brazil, so a comprehensive review is  WT/TPR/M/212 
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  under process.  Under the current legislation fore ign investment remains restrained to 20% of 
shareholding, but at the same time some Bills in  the Congress tried to modify the levels of that 
limitation.  Brazil has no plans to opening domestic mark et to foreign airlines in the near future, but in 
any case it is worth noting that 71% of the internatio nal passenger traffic to and from Brazil is carried 
by foreign airlines.  In maritime transport it also s hould be noted that 95% of all foreign trade resource 
to maritime transport, 96% of that trad e is conducted through foreign flag vessels. 
460. International freight contracts generates almost  6 billion dollars each year, out of which 97% 
are due to foreign flag vessels.  So it is true that  cabotage sector is reserved to Brazilian vessels, but 
even then foreign participation is allowed whenever  there is no national ship available to carry the 
operations.  There are a number of questions on prof essional services, we have tried to answer those 
again as best as we could, basically in that sector  we don't have economics needs test in place, but 
there are requirements regarding educational criteria valuation of graduation certificates, as well as in 
a number of professions there is a need for registration with the specific professional body in order to attest qualification as well as have ethic control of the profession. 
461. With that I think I have explained our answer s to the main points that were asked, more 
detailed answers were given in written form, and we are ready to explain any doubts that delegations 
may have, either today or in the near future. 
CHINA 
462. The comprehensive replies provided today are quite impressive. These replies do help us 
better understand Brazil’s trade-related policies a nd measures at this critical time of a global 
economic downturn. At this stage, my dele gation has the following follow-up questions. 
463. To start with, many Members including China raised concerns over the increase of applied 
tariffs. Specifically, we asked about the effect of this action which has been  left unanswered. We 
would appreciate it if Brazil could shed some light on this, especially what the trade effects are on products where the tariffs have been increased. 
464. Secondly, regarding our question about the main el ements of the “national interests” clause in 
the decision of anti-dumping measures, Brazil answered, and I quote, “this assessment varies on a 
case by case basis”. Could Brazil please provide some examples to illustrate what factors have been 
considered in the past in various cases?  
465. Thirdly, the question from the US on page 105 in Brazil’s replies set and the question from 
the EC in its statements on Monday brought to our attention Brazil’s local content requirements 
included in many of Brazil’s programs. In this connection, we take note that on April 23, 2008, 
Ministry of Technology and Ministry of Extern al Commerce, Industry and Development jointly 
promulgated Inter-ministerial Ordinance No. 101. In  this Ordinance, there are quite a few local 
content requirements, although 100% imports are tem porarily allowed until the e nd of 2009.  It further 
stipulates that a reassessment should take place before  September 30, 2008. So we are interested to 
know how Brazil justifies the compliance of these requirements with its obligations under the TRIMS 
Agreement. Has the above-mentioned reassessment ta ken place? If so, could Brazil share its outcome 
with us?  
466. Finally, we learned from media yesterday that Brazil’s statistics agency IBGE had forecast a 
zero growth for 2009. Given the importance of Brazi l in the global economy, especially against the 
current background, such a drastic comparison with the past several years’ of strong economic performance might cast some shadow over the globa l recovery. We would like to hear the comments 
of the Brazilian delegation in this regard. WT/TPR/M/212 
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  EUROPEAN COMMUNITIES 
467. Even though we closely follow developments in Br azil, this TPR has enabled us to learn more 
about the current state of affairs in Brazil's tr ade policy. We see many issues that need to be 
expeditiously addressed as referred in our written questions and the oral statement delivered last 
Monday.  Today, I would like to reiterate some of  our remaining concerns, without going though into 
detail. 
468. We paid tribute to the outstanding econom ic development of Brazil and its strong 
commitment to resist protectionist tendencies. Ma ny other WTO Members reacted in the same line, 
which illustrates the increased infl uence in the global economy and the considerable responsibility 
Brazil has in the current economic context. We enc ourage Brazil to continue resisting protectionist 
measures to overturn any protectionist measures it may have in the pipeline. 
469. Issues relating to standards and certification need  to be addressed with a view to ensuring 
their alignment with international standards a nd recommendations, and comp liance with WTO rules, 
which will clearly enhance transparency and predicta bility for importers. In this important field, we 
continue to seek more clarity, in particular, as re gards technical regulations applied to medical devices 
and toys; and also, with regard to sanitary and phytosanitary measures, concerning the regulatory 
framework to conduct risk assessments, and ge neral alignment with OIE recommendations.  
470. As already mentioned on Monday, effective prot ection of intellectual property rights is an 
important concern for the EC. In this regard, the EC encourages Brazil again to step up efforts to 
strengthen effective IPR enforcement by both admini strative and judicial means, and to overcome 
remaining shortcomings with regards to patents and trademarks registration.  As already mentioned on 
Monday, we look forward to further co-operating w ith Brazil in this field through bilateral IPR 
dialogue at technical level.  
471. Brazil is a genuine world trader, and as we have all noted here during this TPR, its 
contribution to ensure that all markets remain open is  essential.  Brazil will further reap the benefits of 
expanding trade if it continues to pursue further re forms - for example, the ones related to custom 
procedures and its taxation system, and which Braz il just noted today they would endeavour to 
pursue; if it aligns with international standards a nd eliminates excessive red tape in registration and 
authorisation procedures;  and if it further opens markets, such as in core services sectors.  
472. The EC intend to submit today follow up questions  on certain areas where replies were replies 
were not complete enough and further clarification is sought, for example, on RTA policy, technical 
regulations and standards, on specific taxes and ot her charges affecting imports, SPS measures and on 
the excessive use of the non-automatic import licenses.  
473. The EC would also like to refer to question 89 concerning tax exemp tions which seem to 
remain unanswered and we have not found it in the additional annex that the Secretariat has provided. 
JAPAN 
474. As a result of careful examination of responses in Tokyo, my delegation would like to submit 
three follow-up questions in a paper basis, whic h are related to intellectual property rights and 
telecommunications service. These follow-up questions are technical so that I do not read through 
each question now. Japan would like Brazil to fu rther respond to them in due course.    
 
  WT/TPR/M/212 
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  INDIA 
475. Our questions were in the spirit of achieving wh at President Lula said yesterday in Brasilia, 
and I quote "more trade, more trade and more trade so that the economy starts returning to normal".  
India and Brazil along with a large number of countries joined hands on TRIPS CBD disclosure to amend the TRIPS Agreement to include a mandate d comment for the disclosure.  We hope that 
remaining reluctant Members will also join us. 
UNITED STATES 
476. We have four follow up questions that we would like to raise. 
477. With regard to Brazil’s response (pages 97-98), c ould Brazil please inform us as to when its 
temporary duty reductions will expire? 
478. With regard to Brazil’s response (page 98) to the U.S. question regarding Mercosur’s 
automotive policy, please characterize the outcome of bilateral automotive negotiations with 
Argentina and Uruguay, specifically the terms of both agreements. 
479. Regarding Brazil's response to the U.S. questio n on the use of import licensing to restrict 
imports of lithium carbonate cont ained on page 103 of Brazil's responses, we appreciate Brazil's 
statement on lithium carbonate contained in the mi nutes of the October 20 meeting of the Committee 
on Import Licensing Procedures.  We request, however , that Brazil circulate within the Committee its 
written responses to our specific questions (contai ned in G/LIC/Q/BRA/3/Add.1, dated June 13, 
2006).  The United States originally submitte d these questions in November 2004, in 
G/LIC/Q/BRA/3, and we subsequently resubmitted th em several more times.  The United States 
believes that a written response is important in orde r to maintain transparency within the Committee 
on Import Licensing Procedures. 
480. On pages 111-112 of Brazil’s responses to U.S.  questions, Brazil states (under “Copyright”) 
that the limitations contained in Article 46 of its Copyright Act are “based on Article 10 of the Berne 
Convention, particularly items 2 and 3, and on Article 11.”  Brazil then cites the text of 
Article 46(I)(a) of its Copyright Act as being comp liant with the Berne Convention.  Article 46(I)(a) 
does not appear to limit the uses to those that are co mpatible with "fair practice" and "justified by the 
purpose."  (See Articles 10(1) and (2) of the Berne Convention.)  Instead, it appears that Article 
46(I)(a) permits the reproduction of entire articl es under any circumstances as long as attribution is 
provided.  Please provide clarification as to how these exceptions are limited  in accordance with  
Articles 10(1) and 10(2) of the Berne Convention. (See TRIPS Articles 9 and 13.) 
KOREA 
481. We would like to flag one issue that we raised on Monday, an issue to which we attach quite a 
lot of importance.  We are of the view that most likely a "minimum import price" is not a measure that Brazil undertakes on a daily basis, but in light of  the reports received, it might be happening 
sporadically in the customs administration process.  We would appreciate it if Brazil would look into 
this issue and take steps to ensure that such incidences do not recur in the future. 
AUSTRALIA 
482. Australia is just seeking one clarification with regard to a response provided by Brazil.  It 
relates to Q10 on page 157 of the replies provi ded to the first day written questions, Brazil has 
provided a response and this is with regards to th e ratification of the Fifth Protocol on financial 
services, Brazil indicates that due to procedure matt ers the Fifth Protocol has not yet concluded its WT/TPR/M/212 
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  ratification process.  If Brazil could just elaborate a bit further on what procedures matters they are 
referring to we would be most grateful. 
DISCUSSANT 
483. Reducing poverty and inequality were among the ma in priorities of President Lula’s platform 
for his first government. As he began his second term in office, a question remained whether he would 
achieve his social goals with fiscal prudence, low in flation, and exchange rate stability, or whether he 
would take a more radical redistributive appro ach disregarding macroeconomic stability. What has 
happened is that rather than focusing single-mindedl y on solving the problem of inequality, he based 
his strategy on three pillars: macroeconomic st ability, strong export promotion and wealth 
redistribution.  
484. Harvard Professor Aldo Musacchio described Br azil under Lula as “Signaling Left, Turning 
Right.” Time Magazine, in its latest issue sees im portant  lessons for economic policy from Brazil’s 
experience: It suggests that Brazil has become an ex ample of a post-ideological approach that is equal 
parts wealth creation and wealth distribution.  
485. While growth is slowing down amidst the gl obal economic turmoil, due to its sound economic 
policies, Brazil looks set to weather the crisis better than most.  
486. Brazil’s good economic performance  has been linked to the expa nsion and diversification of 
trade. Members would have noted that strong export promotion is one of the three pillars of Brazil’s 
development strategy.  
487. Going forward, the Brazilian delegation might wi sh to take on board some of the concerns 
that have been expressed with respect to the co untry’s non-automatic import licensing regime which 
affected one-third of all tariff lines. Concerns we re also raised on the use of import prohibitions. 
Brazil might also consider steps to enhance the tr ansparency of its technical regulations as well as 
sanitary and phyto-sanitary measures. Questions were also registered regarding the complexity of the 
country’s taxation system. Brazil’s new IPR legislation that has been accompanied by better enforcement is welcome but there is perhaps room for further improvement.  
488. In conclusion, while the country’s economic mana gement is to be commended, Brazil, to be 
sure, continues to face important economic and soci al challenges.  On the other hand, overcoming 
such challenges, and they differ from country to c ountry, is the route to the goal of ‘development’. 
BRAZIL 
489. I will try to give at least some preliminary answers to some of the issues of course we are 
committed to answer in written form all written questi ons that may arrive to us after this session.  
Country by country, on the questions by China I beli eve that some of them have already been touched 
in my initial intervention in terms of the products for which tariffs were raised, as I have mentioned 
they were basically on the textiles and footwear sectors and I don't think that there is no secret there.  In terms of the national interest clause in trade defence instruments as I mentioned this is a political 
decision taken by Ministers normally only in the case they decide not to adopt a recommendation by 
the investigating authority to create an antidumping duty or a countervailing duty or a safeguard.  If I 
can give an example we had an antidumping case on  fertilizers against an Eastern European country 
and the investigating authority had identified the existence of dumping inju ry and causality and had 
recommended the extension of a duty and Ministers because fertilizers are an important input into 
agriculture in Brazil and agriculture prices were in creasing last year they decided not to impose other 
duty, in fact to suspend the duty.  So that's an example, but that depends very much on the product, on  WT/TPR/M/212 
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  the situation of the market, and what are the issues, but this is an example of the deal of the national 
interest provision. 
490. On IBGE previewing zero growth in 2009, well normally IBGE does not make previsions.  
What they do not forecast, they do the accounting, so normally the results they bring to public are the 
results of what happened in the past.  So I don't know  exactly what is the reference here but yesterday 
we had the results for the fourth quarter of last year  which were worse than expect to a certain extent 
but at the same time it was expected that they woul d not be good results and on the basis of those 
results some authorities said that the 4% growth that they were betting on might have to be re-evaluated. 
491. In terms of local content of course, I would gl adly receive the detailed question by China, I 
could not take note of all the details of what was me ntioned but I think it is just worth mentioning if 
the reference is to some local content requirements c ontained in the current provisions that the replies 
do not include any kind of subsidy or advantage.  Therefore, there is not a compatibility issue here. 
492. On the EC questions on transparency of standa rds of technical regulations I should say that 
although we don't know the number of all the technical regulations that exist and we are developing a 
data bank on that I have to say that all technical regulations in Brazil go through a public consultation 
procedure with a publication in the Official Journal.  So they are easily available through the National 
Enquiry Point.  We have a well established enquiry poi nt that is prepared to answer all the questions 
relating technical regulations both those pertaining to the agency itself which is in matter and to other 
agencies that prepare regulations.  The system est ablished to convey the consultations that may be 
made in terms of transparency.  I don't think that there is a transparency problem there. 
493. In relation to SPS our understanding is that we  do follow international regulations and OAI 
procedures if the question relates to the request by  the EU on regionalization I should inform that we 
are waiting the answers that we asked for in 2007.   As soon as the EU provides the answers the 
analysis may proceed. 
494. On patent registration backlog as I said we recognize that there is a problem there and we 
have been directing resources in the answers we an swered in detail what are the measures that have 
been taken in terms of increasing the number of personnel providing training to them and ensuring 
that the goals are achieved. 
495. In relation to Regional Trade Agreements as I said there is not a Regional Trade Agreement 
Committee but again we try to give as much informa tion as possible in the answ ers if there are some 
specific questions the EU may have we will be glad to answer. 
496. On question 89 in fact there is an answer in the Addendum we distributed today is a rather 
lengthy answer that explains in detail our explana tion on the numbers that I mentioned in para. 206 of 
the Secretariat we have had some contentious issu es here in the Secretariat about those numbers and 
how that should be reflected here apart of the expl anation we took the opportunity to include part of 
the explanation of our reasons in this answer. 
497. On the US further questions that we are certainly  going to answer in written form as well, the 
temporary duty reductions if they refer to what I am thinking they refer to they have in principle a two 
year duration, at the same time that's true that our  regime has not been harm onized within Mercosur in 
principle this should be harmonized at the end of 2010.  So those adopted by the end of last year in principle would stand for two years and from th en on it would depend on what would be the 
harmonized Mercosur regime on that. WT/TPR/M/212 
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  498. On automotive we will be glad to answer more specific questions by the United States.  Those 
are public agreements they are not secret agreem ents.  Basically the agreements establish some 
conditions for the zero duty trade to occur.  On lithiu m we take note of the US preoccupation, we have 
tried to give the necessary answers in the last Lice nsing Committee but if they feel it is necessary to 
have a written we will certainly work on that.  On the comparison of the Brazilian legislation the Bern 
Convention we will really need to have a detailed explanation on the where and why it considers is 
not covered because in our view it is practically the same language that we have in the Brazilian 
legislation and what we have on those para. of the Be rn Convention.  In fact I inform that in certain 
aspects the issue of copy of copyrighted material in  the US is even more flexible than in Brazil. 
499. On Korea it is true we had a mistake here, we repeated the answer on Q21, we will have to 
solve that but the answer is that the interbank export credit is not subject to any official restriction on 
the contrary, banks are encouraged to finance fore ign trade operations and to have a resource to a 
foreign credit for that. 
500. On minimum import prices, of course we don't have the details of the specific transaction 
which is mentioned in the question, but we do not have a minimum import price system.  What we do 
have as many countries have is that customs uses some parameters to determine whether they are 
going to open a customs valuation investigation.  I do not know if that was the case there, if there were some suspicion of fraudulent declaration of valu e and then the company decided to adjust it, we 
will have to see the specific case. 
501. On the Fifth Protocol again, it was approved by Congress;  then after been approved by 
Congress there is processing that has to be taken in  the Executive.  We have not completed that 
process and that is the reason why it was ratified, but  as I have said the offe rs in the DDA go beyond 
what is in the Fifth Protocol.  WT/TPR/M/212 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
502. The fifth Trade Policy Review of Brazil has a llowed this Body to appraise in detail the 
evolution of its trade policies since 2004.  I th ank His Excellency Ambassador Roberto Azevedo, 
Mr. Carlos Cozendey and their team for engaging so constructively in this Trade Policy Review 
exercise.  I would also like to thank the discu ssant, Ambassador Noor, and the numerous Members 
who participated in the discussion as part of this exercise. 
503. This has been a very constructive review.  We  have heard widespread praise of Brazil's sound 
macroeconomic policies.  Brazil's good economic perfo rmance has been linked to the expansion and 
diversification of trade, and thus to Brazil's lib eralization efforts.  Moreover, Brazil's economic 
growth had become more socially inclusive.  While growth was slowing down amidst the global 
economic turmoil, it was the Members' sense that Brazil would weather the cr isis better than most.  
However, Members also noted that Brazil continue d to face important economic and social challenges 
and that, hence, further efforts were  needed to meet these challenges. 
504. Brazil has received well-deserved commendation for its support of the multilateral trading 
system and its leadership role in all areas of the Doha Development Age nda.  Members acknowledged 
Brazil's active participation in the development of the Aid-for-Trade process, and its twofold role both 
as recipient and as donor.  As well, Brazil was en couraged to grant duty-free quota-free access to 
LDCs. 
505. Widespread appreciation was also expressed fo r Brazil's decision to resist protectionist 
pressures seeking to expand the scope of non-auto matic import licensing.  Nevertheless, some 
Members expressed concern with respect to Brazil' s existing non-automatic licensing regime, noting 
that it affected just over one-third of all tariff lines.  Brazil indicated that it was taking steps to 
minimize the impact of licences on imports, a nd that it did not intend to impose new licensing 
requirements on a broader list of goods.  Concerns we re also raised on the use of import prohibitions, 
with Brazil indicating that prohibition on u sed consumer goods were in place mainly for 
environmental and safety reasons.  Some Members ur ged Brazil to enhance the transparency of its 
technical regulations, and sanitary and phytosanitary measures. 
506. In response to questions regarding the increase in the average applied tariff during the review 
period, Brazil explained that the tariff increases did not reflect its general trade policy, and that they 
had been concentrated in sectors that were particul arly sensitive due to their labour-intensive nature.  
In this respect, Members encouraged Brazil to re duce bound tariff rates to give its import regime 
greater predictability.  Replying to questions on the complexity of its taxation system, Brazil informed 
that a tax reform bill that seeks to reduce the numbe r of taxes, improve tax neutrality and eliminate 
distortions was under discussion in Congress.     
507. Brazil was invited to consider joining the GP A, as this would reduce procurement costs and 
give domestic producers improved access to GPA member markets.  Brazil responded that it was not currently considering joining or becoming an observer to the GPA.   
508. Some Members noted with satisfaction that Brazil had passed new IPR legislation and 
enhanced the effectiveness of enforcement but encour aged Brazil to further strengthen IPR protection.   
509. Some Members noted the use Brazil makes of pr eferential credit and other support schemes in 
sectors like agriculture and manufacturing, and e xpressed concern about domestic content and other 
requirements for accessing some of them.  In this re spect, Brazil considered that the management of 
its rural credit support did not cause major market distortions.   WT/TPR/M/212 
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  510. Members encouraged Brazil to close the gap betw een its relatively liberal services regime and 
its GATS commitments.  Brazil noted that although the ratification process of the Fifth Protocol on 
financial services was ongoing, it could not specify a tim eframe for its completion.  With regards to 
telecommunication services, Brazil indicated that it was not considering adopting the Fourth Protocol, nor relaxing commercial presence requirements, but that its revised conditional GATS offer included 
commitments in the telecom sector.  Certain Members invited Brazil to remove foreign ownership 
restrictions in maritime and air transport services.   Brazil noted that draft legislation changing 
investment restrictions in air transport was under examination in Congress.   
511. In conclusion, this Review has highlighted  the key roles that sound economic policies, 
continued reform efforts and a growing integrati on in the global economy have played in Brazil's 
economic success in recent years.  As a result, Braz il finds itself relatively well prepared to face the 
current global financial crisis, in which it has set an example by resisting protectionist pressures.  Additional domestic reforms would further help Brazil overcome the crisis, and enable it to continue 
reaping the benefits of trade.  Binding these and earlier reforms in the WTO would enhance the predictability of Brazil's trade and investment regi me, as well as contribute to its efforts to achieve a 
successful completion of the DDA. 
512. I would like to close this meeting by thanki ng, once again, the discussant and the Members 
who took part in this meeting for contributing to an  informative review.  I would also like to thank the 
delegation of Brazil for addressing the large number  of questions posed by Members both in writing 
and orally. 
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