RESTRICTED  
  
WT/TPR/G/ 432 
19 October 2022 
(22-7841) Page: 1/49 
Trade Policy Review Body  Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
BRAZIL 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Brazil  is 
attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Brazil . WT/TPR/G/ 432 • Brazil  
 
- 2 - 
 
  Contents  
1   OVERVIEW  ................................ ................................ ................................ .................  4 
2   GENERAL  ECONOMIC  ENVIRONMENT  ................................ ................................ ..........  4 
2.1   Macroeconomic  Overview  ................................ ................................ ............................  4 
2.2   General  Legal  and Regulatory  Framework  ................................ ................................ ....... 5 
2.2.1    Business environment  ................................ ................................ ..............................  5 
2.2.2    Financial system  ................................ ................................ ................................ ...... 6 
2.2.3    Insurance market  ................................ ................................ ................................ .... 9 
2.2.4    Securities market  ................................ ................................ ................................ .. 10 
2.2.5    State -owned enterprises and privatization  ................................ ................................  12 
2.2.6    Government procurement  ................................ ................................ .......................  13 
2.2.7    Exchange rate and foreign capital regime  ................................ ................................ . 13 
2.2.8    Export insurance ................................ ................................ ................................ .... 14 
2.2.9    Long run production and export finance  ................................ ................................ .... 14 
2.3   Social  Policies  ................................ ................................ ................................ ...........  15 
3   TRADE POLICY DEVELOPMENTS (2017 -21) ................................ ..............................  16 
3.1   Latest  Developments  in Brazilian  Foreign  Trade  ................................ .............................  16 
3.2   Tariffs  ................................ ................................ ................................ .....................  17 
3.3   Measures  directly affecting imports  ................................ ................................ .............  17 
3.4   Participation  in the WTO ................................ ................................ ............................  18 
3.4.1    Negotiations  ................................ ................................ ................................ ..........  18 
3.4.2    Dispute settlement  ................................ ................................ ................................ . 18 
3.4.3    Special and differential treatment  ................................ ................................ ............  19 
3.4.4    Trade and Environmental Sustainability Structured Discussions (TESSD)  ......................  19 
3.4.5    Preferential Agreements  ................................ ................................ .........................  20 
3.5   MERCOSUR  ................................ ................................ ................................ ..............  20 
3.5.1    MERCOSUR  and regional  agreements  ................................ ................................ ........  22 
3.5.2    MERCOSUR  and extra-regional  agreements  ................................ ...............................  22 
3.5.3    Global  system  of trade  preferences  ................................ ................................ ...........  23 
3.6   Investment  Agreements  ................................ ................................ .............................  24 
4   TRADE INSTITUTIONAL AND REGULATORY FRAMEWORK ................................ .........  24 
4.1   Cross -Cutting  Issues  ................................ ................................ ................................ . 24 
4.1.1    Implementation of good regulatory practices  ................................ .............................  24 
4.1.2    Technical regulations and standards  ................................ ................................ .........  25 
4.1.3    Trade facilitation  ................................ ................................ ................................ .... 27 
4.1.4    Sanitary and phytosanitary issues  ................................ ................................ ............  29 
4.1.5    Competition policy  ................................ ................................ ................................ . 29 
4.1.6    Trade remedies  ................................ ................................ ................................ ..... 33 
4.1.7    Intellectual property  ................................ ................................ ...............................  34 
4.1.8    Micro, Small and Medium -Sized Enterprises (MSMEs)  ................................ .................  36 WT/TPR/G/ 432 • Brazil  
 
- 3 - 
 
  4.2   Sectoral  Issues  ................................ ................................ ................................ .........  39 
4.2.1    Industry  ................................ ................................ ................................ ...............  39 
4.2.2    Agriculture  ................................ ................................ ................................ ............  39 
4.2.3    Services  ................................ ................................ ................................ ...............  40 
4.2.4    Renewable energy  ................................ ................................ ................................ . 41 
4.2.5    Rail transport  ................................ ................................ ................................ ........  41 
4.2.6    Air transport  ................................ ................................ ................................ .........  42 
4.2.7    Ports and maritime transport ................................ ................................ ...................  45 
4.2.8    Telecommunications  ................................ ................................ ...............................  46 
5   FUTURE DEVELOPMENTS  ................................ ................................ ..........................  49 
 
  WT/TPR/G/ 432 • Brazil  
 
- 4 - 
 
  1  OVERVIEW  
1.1.  The Brazilian Government is pleased to submit its eighth eighth Trade Policy Report to 
WTO Members. Brazil considers this periodic review mechanism as a key element of the multilateral 
trading system embodied in the WTO, contributing to a more transparent and comprehensive 
understanding of Members' trade policies and regulatory frameworks.  
1.2.  In the period examined in this TPR (2017 -21), trade has been one of the guiding lines in the 
process of modernizing the Brazilian economy. In this sense, Brazil has sough t to expand its 
integration in international trade, in order to increase the productivity and competitiveness of its 
economy and guarantee sustainable growth . Since  2019, Brazil  has been pursuing  a trade  agenda  
based  on three  pillars:  (i) intensification  of the trade  agreements  network;  (ii) modernization  of the 
MERCOSUR  tariff structure;  and (iii) trade  facilitation . Although  it is true that many  challenges  
persist,  significant  progress  has been made  in several  areas.  For example,  in July 2022,  
MERCOSUR  Members  decided  to reduce  permanently  its common  external  tariff by 10%.  Brazil  has 
also removed  part of its import  licenses.  Brazil 's trade agenda  has also continued  to highlight  its 
contributions  to food security  and to pursue  the elimination  of trade  distortions  – such as those  that 
exist in trade  in agriculture  – that undermine  opportunities  for developing  countries.  
1.3.  The multilateral  trading  system  is a priority  in Brazil's  foreign trade  policy.  Brazil  believes  that 
well-functioning multilateral trade rules are essential for the efficiency of international trade and  for 
the good functioning of the global economy, contributing significantly to counter anti -trade 
sentiments and protectionism. During the review period, Brazil has initiated the procedures for its 
accession to the WTO Agreement on Government Procurement (GPA) and  to the WTO  Agreement 
on Trade in Civil Aircraft.  
1.4.  Over the review period, Brazil has maintained and enhanced its engagement with the WTO in 
all its pillars and negotiating formats, seeking strengthen and modernize the Organization, while not 
neglecting lon gstanding issues, such as agriculture trade. This commitment to the WTO was 
highlighted during the Twelfth Ministerial Conference, as well as by Brazil 's participation in WTO joint 
initiatives, i.e. e-commerce, investment facilitation for development, MSME s (Micro, Small and 
Medium -sized Enterprises), and domestic regulation of trade in services . 
1.5.  Notwithstanding the priority it attributes to the multilateral trading system, Brazil believes that 
preferential trade agreements can play a complementary role in the efforts to harness the benefits 
of international trade towards the goal of economic and social development of all Members. In the 
period under review, Brazil engaged in the negotiation of new bilateral, regional, and extra -regional 
trade agreements wit h a wide range of partners throughout the world, and has undertaken talks to 
expand the scope of existing agreements. In Latin America, Brazil has continued to strengthen 
regional economic integration through the Southern Common Market (MERCOSUR) and the 
Latin American Integration Association (LAIA/ALADI) regional trade agreements ( RTAs) by 
deepening existing agreements and negotiating new ones, such as the MERCOSUR -Colombia trade 
agreement in 2017 and the Brazil -Chile free trade agreement in non -tariff matters in 2018. In the 
extra-regional arena, MERCOSUR also  concluded the negotiations of trade agreements 
with the European Union, EFTA and Singapore, while other negotiation s are 
ongoing  (MERCOSUR -Republic  of Korea and MERCOSUR –Canada, for example).  
2  GENERAL  ECONOMIC  ENVIRONMENT  
2.1  Macroeconomic  Overview  
2.1.  After two consecutive years with negative variat ions in GDP in 2015 and 2016 ( -3.5% 
and -3.3%), Brazil experimented a 1.3% GDP growth in 2017. In 2018 and 2019 GDP growth 
was 1.8% and 1.2% respectively, signaling  that the economy was moving towards a more 
sustainable growth path.  
2.2.  However, the year 2020 was marked by the outbreak of the COVID -19 pandemic , strongly 
affecting the country's economic recovery and stabilization process. T he economy was negatively 
affected by health restriction measures and by supply shortages in value chains, both internally and 
externally, causing a strong shock on economic activity and the labor market. Broad adoption of 
fiscal, monetary, and regulatory stimulus measures to protect the income of families and companies WT/TPR/G/ 432 • Brazil  
 
- 5 - 
 
  and to safeguard the liquidity of the economy helped to mitigate stronger adverse effects . Basic 
interest rates reached historic lows, in line with monetary measures. On the other hand, fisc al 
measures to support the economy led to the increase of  public indebtedness. The inflation scenario 
remained comfortable for most of the year, following the weakening of aggregate demand, especially 
the reduction in demand for services. However, inflatio n reached 4.52% in 2020, above the 
Central  Bank target, mainly due to a strong increase in food prices in the last months of the year. 
The unemployment rate reached 14.2%. The weak demand and supply bottlenecks led to a  3.9% 
drop in GDP in 2020.  
2.3.  The fiscal  measures adopted in 2020 to face the crisis consisted of an increase in public 
spending, by launching a set of emergency measures to support the economy and to fight the 
pandemic, in line with those adopted internationally. These measures provided financi al assistance 
to the population, companies, and subnational entities. The cost of these measures amounted to 
approximately 8.5% of GDP, which led to a fiscal primary deficit equivalent to 10% of GDP . As a 
result, gross government debt increased from 74.82%  of GDP in January 2020 to 88.59% 
in December 2020. However, a series of fiscal control measures allowed that government debt 
indicator to fall back to 80.27% in December 2021, and in May 2022 it was further lower  
at 78.17%  of GDP.  
2.4.  In 2021, the economy con tinued to be affected by COVID -19, but the advance in vaccination 
and the easing of restrictive measures began to have positive economic effects. The recovery of 
activity resulted in a deceleration of the unemployment rate at the end of the year (to 11.1%)  and 
increased consumer demand and confidence. On the other hand, inflation continued to increase, 
mainly due to food , fuel prices and electricity prices . Inflation rose from 4.52% in 2020 to 10.06% 
at the end of 2021. In that year, Brazil began the cycle of raising the basic interest rate to contain 
inflationary pressures, moving from an annual rate of 2.0% in March to 9.75% in December, in 
seven consecutive rate hikes carried out by the Central Bank.  
2.5.  In 2022, the Brazilian economy shows signs of a sustain ed recovery, with an increase in 
employment and an improvement in business and consumer confidence.  
2.2  General  Legal  and Regulatory  Framework  
2.2.1   Business  environment  
2.6.  Brazil has promoted in the last years an ambitious supply -side reform agenda aimed at boosting 
productivity, potential growth, and living standards. Market friendly structural reforms have been 
moving ahead in Brazil despite the pandemic. Some of the most significant developments include: 
institutional reforms; autonomy for the Central Bank; privatizations; labour market and pension 
reform; efficiency and inclusiveness policies in the financial sector; new mechanisms to control 
mandatory spending growth; im port tariffs reductions; and new laws on sanitation, startups , natural 
gas, and bankruptcy.  
2.7.   Regarding the business environment as a whole, it is worth highlighting the enactment of 
the Economic Freedom Act (Law No. 13,874/2019), the Regulatory Agencies ' Law 
(Law No. 13,848/2019) and the Business Environment Act (Law No. 14,195/2021). The Economic 
Freedom Act main objective is to guarantee the free exercise of economic activity and 
free enterprise, allowing for the intervention of the State only as a subsid iary and exceptional 
recourse; the Regulatory Agencies Act guarantees functional, decision -making, administrative and 
financial autonomy to Regulatory Agencies; and the Business Environment Act advances in economic 
legislation in the context of the busines s environment.  
2.8.  Regarding innovation, the Brazilian government has regulated the Legal Framework for 
Science, Technology and Innovation (Decree No. 9,283/2018). The new rules seek to bring 
universities closer to companies, making research and innovation in the country more dynamic, as 
well as reducing the bureaucracy in investments for the area. The new legal framework should 
simplify the signing of agreements for the promotion of public research, facilitate the 
internationalization of scientific and technol ogical institutions, and increase interaction between 
them and companies. Other points are the simplification of import procedures for goods and research 
inputs; new incentives to make technological orders and flexibility in rearranging budget resources.  WT/TPR/G/ 432 • Brazil  
 
- 6 - 
 
  2.9.  It is also worth highlighting the enactment of the Legal Framework for Startups and Innovative 
Entrepreneurship (Supplementary Law No. 182/2021 ). The legislation reduces red tape for smaller 
businesses, increases legal protection for investors in startups, establishes measures to increase the 
venture capital available for startups, strengthens the legal basis for the creation of regulatory 
sandboxes by Brazilian agencies, and institutes a public procurement procedure for the acquisition 
of innovative solutio ns. An analysis published by the Secretariat of Economic Policy of the Ministry 
of Economy estimates that around 15,000 companies may be covered in the definition of startup 
provided by the Legal Framework, and that this legislation has the potential to sa ve companies up 
to BRL 330 million a year, and to increase the venture capital available to startups by 
BRL 200 million  a year.  
2.10.   The Brazilian government has also created the National Innovation Policy (NIP) 
(Decree  No. 10,534/2020), followed by a wide -ranging plan to address various aspects of innovation 
development in the country. The NIP looks at six key areas, such as how to broaden Brazil's human 
capital pool for activities related to innovation. It also aims to stimulate research, development and 
innov ation by companies and private non -profit entities, to boost productivity and competitiveness 
in the economy, wealth generation and social well -being. The NIP promotes the coordination and 
deployment of public resources directly or indirectly related to th e promotion of innovation. It also 
encourages the transformation of knowledge into innovative products, processes and services. The 
interministerial  Innovation Committee, which was created following the decree, has formulated a 
National Innovation Strategy . At the same time, the Innovation Diplomacy Program (PDI), ran by 
the Ministry of Foreign Affairs since 2017, seeks to showcase a country that generates knowledge, 
goods and services in sectors on the scientific frontier. The PDI is aimed at bringing toge ther actions 
to promote technology abroad, in line with the NIP.  
2.11.   During the review period, the InovAtiva Brasil Program ( http://www.inovativabrasil.com.br ), 
launched in 2013, has continued to connect innova tive early -stage businesses to investors and to 
other national programs that foster innovation, and has also continued to promote their international 
insertion. As of 2022, the program has accelerated more than 2,600 startups and more than 
14,000  projects have been submitted.  
2.12.   Since 2013, EMBRAPII (Brazilian Company of Research and Industrial Innovation) supports 
technological research institutions fostering the Brazilian industry innovation. EMBRAPII operates 
through cooperation with scientific and technolo gical research institutions, public or private, focusing 
on business demands and targeting risk sharing in the pre -competitive phase of innovation. By 
sharing project risks with companies, it aims to stimulate the industrial sector to innovate more and 
with greater technological intensity, in order to boost the competitive strength of companies both in 
the domestic and in the international markets. There are already more than 1,600 projects supported 
in different areas, benefit ting companies in all regions of Brazil, with over BRL 2.2 billion invested.  
2.2.2   Financial  system  
2.13.   The stability of the Brazilian financial system has remained high in recent years, although the 
adverse scenario has affected credit risk indicators, resulting in cautious credit granting policy as 
well as low borrower demand. Banks have proved their capacity to absorb short -term liquidity shocks 
as demonstrated by their swift actions to improve liquid assets in the onset of the COVID -19 crisis. 
The structural liquidity risks stemm ing from potential maturity mismatches remains unchanged, with 
long-term assets fully supported by sources of stable funding. The system continues to exhibit 
capital, leverage and liquidity ratios well above the required regulatory minimums even considerin g 
the Basel III stricter conditions, the economic scenario and political turbulences. Stress tests outputs 
indicate that the banking system is able to absorb shocks from adverse macro -economic scenarios, 
as well as from abrupt changes in interest and excha nge rates, from increase in defaults and from 
widespread decline in house prices, despite the increase in impacts due to materialization of risks 
from macroeconomic environment.  
2.14.    The Central Bank of Brazil (BCB) remains committed to enhance its regulatory framework 
and practices of banking supervision, with the goal of achieving a high degree of compliance with 
the Basel Core Principles for Effective Banking Supervision. These results were reported in the last 
jointly IMF -World Bank Financial Sector Assessm ent Program (FSAP) concluded in 2017. Brazil has 
continuously and promptly implemented measures to improve the financial system 's regulatory 
framework, specially through adoption of the Basel III standards, which include capital definition, 
minimum capital  requirements, capital buffers, liquidity rations and a leverage ratio. Considering the WT/TPR/G/ 432 • Brazil  
 
- 7 - 
 
  finalized Basel III post -crisis reforms published by the Basel Committee in December 2017, the 
BCB has worked on the implementation of the revised approaches for credit , market and operational 
risks. Consistent with the recommended schedule, the revised standardized approach for credit risk 
will be effective in January of 2023. Regulation addressing market and operational risks is under 
development and will be implemente d in due course.  
2.15.   Brazil remains committed to implement the Basel III capital framework. In November 2017, 
the National Monetary Council (CMN) defined the Net Stable Funding Ratio (NSFR) and set the 
conditions for compliance with this new liquidity requirem ent. The NSFR and the Liquidity Coverage 
Ratio (LCR), which is in force since 2015, have complementary objectives. A revamped optional 
simplified capital requirement framework for institutions with a simplified risk profile was also 
published by the CMN in  late 2017. In the process of aligning the domestic regulation (which was 
issued on 1 March 2013) to the new Basel recommendations, the BCB published in May 2022 the 
new methodology of calculation of risk -weighted assets (RWAs) for credit risk for institut ions that 
use the standardized approach. The draft rules for the calculation of risk -weighted assets (RWAs) 
for operational risk and market risk are expected to be published later this year and in 
early 2023,  respectively.  
2.16.   The BCB is fully committed to the  sustainability agenda and has implemented regulation over 
the last few years to that end. In 2020, the BCB announced the inclusion of a sustainability dimension 
in its institutional agenda, with concrete initiatives in five pillars, including regulation a nd 
supervision. Among the new regulations already issued are:  
• CMN Resolution  No. 4,943/2021,  altering  Resolution  No. 4,557/2017  to include  a specific  
section  on the management  of social,  environmental  and climate  risks applicable  to 
financial  institutions  allocated  in segments  1-4; 
• CMN Resolution  No. 4,944/2021,  altering  Resolution  No. 4,606/2017  to include  a specific  
section  on the management  of social,  environmental  and climatic  risks applicable  to 
financial  institutions  allocated  to segment  5; 
• CMN Resolu tion No. 4,945/2021,  revoking  Resolution  No. 4,327/2014,  to establish  new 
requirements  for all financial  institutions  (segments  1-5) relative  to a new Social,  
Environmental  and Climatic  Responsibility  Policy;  
• BCB Resolution  No. 139/2021,  establishing  the Report  on Social,  Environmental  and 
Climate -related  Issues  (GRSAC),  containing  information  to be disclosed  by financial  
institutions  allocated  to segments  1-4, along  the lines recommended  by the Taskforce  on 
Climate -related  Financial  Disclosure  (TCFD);  and 
• BCB Resolution  No. 140/2021,  strengthening  the compliance  of rural credit  with provisions  
prohibiting  credit  to agents  with illegal  social,  environmental  or climate  practices.  
2.17.   The above -mentioned BCB Resolution No. 140 is one of the pillars of the Sustaina ble Rural 
Credit Bureau. Within the Bureau, the BCB has already put in place an open finance 
platform  (BCB Resolution No. 204/2022). The Bureau also promotes integration with other 
environment - and land -related government databases, and upcoming regulation  will make it easier 
for the market to identify rural credit operations that generate social, environmental or climatic 
benefits, one or all of them. The TCFD disclosure recommendations are gradually being incorporated 
into the prudential framework of fina ncial institutions, initially comprising qualitative information and 
including quantitative information in Phase 2.  
2.18.   Interest rate spreads have increased in the period of 2017 -21 in line with the monetary policy 
cycle – the basic interest rate decreased fro m 7% at the end of 2017 to 2% at the end  of 2020. As 
price indexes have increased towards the inflation target set by the Monetary Policy Committee,  the 
monetary cycle began to reverse. After five months at 2%, the basic interest rate has been 
increasing s ince March 2021, reaching 9.25% in December 2021.  
2.19.   During the review period, the Central Bank of Brazil has continued to regulate and oversee 
the payment systems as well as to  strengthen its actions to meet the objectives of granting 
non-discriminatory acce ss to payment services and market infrastructures, promoting competition, WT/TPR/G/ 432 • Brazil  
 
- 8 - 
 
  financial inclusion, innovation, and interoperability within the Brazilian Payment System, taking into 
account its importance to the soundness and normal functioning of the National Financial System. 
In November 2020, the Central Bank of Brazil launched its instant payment system called Pix, a 
payment scheme that provides real -time payment operations in a 24/7 basis. Pix is free of charge 
for P2P  transactions and its offer is compulso ry for any licensed institutional holding more 
than 500,000  active accounts. Although its functionalities are still not fully implemented, so far Pix 
has already provided for cost reduction in retail payments, which led to (i) financial inclusion and 
(ii) reduction  in the use of cash.  
2.20.   Over the past three years, the share of the population with an active relationship with financial 
institutions increased by 14%, reaching 159 million people by the end of 2020, or 96% of the 
population aged 15 and above. Curre ntly, all 5,570 Brazilian municipalities have at least one point 
of face -to-face access to financial services. In 2020, 81% of transactions were carried out through 
non-face-to-face channels, such as call centers, mobile phones, internet and tablets (compa red 
to 39% in 2010). It is worth mentioning that cell phones are now the main means of access to 
financial services.  
2.21.   First established in 2010, Brazil 's National Strategy for Financial Education (ENEF ), was 
designed as a perennial State policy, assuring the commercial impartiality of every program, 
including those developed within public -private partnerships. The goal of the strategy, created 
through Federal Decree No. 7,397/2010, and amended by Federa l Decree No. 10,393/2020, is to 
contribute to the strengthening of citizenship by providing, supporting, stimulating, and setting 
strategies to programs that help citizens make well -informed financial choices. Programs comprise 
financial education for adul ts and elementary, junior high and high school students. Each of the eight 
governmental members of the Brazilian Forum for Financial Education (FBEF, published in 20211) 
have their own programs, developed and implemented either individually or through bil ateral or 
multilateral partnerships. One recent example is the Central Bank of Brazil Aprender Valor  Program 
to support public schools and municipal and state secretariats of education in providing financial 
education in the classroom. Another noteworthy e xample is the Center on Financial Education and 
Literacy for Latin America and the Caribbean, established in 2016, through a partnership between 
the Securities and Exchange Commission of Brazil (CVM) and the OECD. The Center has proved to 
be a successful p artnership, serving as a hub for knowledge exchange on efficient financial education 
and related issues in Brazil and LAC since its creation.  
2.22.   Just like other similar initiatives worldwide, in 2021, BCB launched its Sandbox program, 
which is an extraordinar y regulatory framework where companies are authorized by the financial 
regulator to test, for a period of time, an innovative project related to the financial or payment 
systems. The projects have to comply with a specific set of regulatory provisions that  supports a 
controlled performance of their activities. By monitoring these projects, BCB expects to modernize 
its regulatory framework in order to promote new business models in the financial and the payment 
system. In the first call for projects, the San dbox Strategic Committee selected 7 out of 52  projects 
which were submitted for the initiative. These projects are under implementation and their activities 
will be monitored throughout 2023.  
2.23.   Aligned with the principle that consumers own their personal dat a and therefore should be 
able to use it to their own benefit, including sharing with other parties, in 2020 the BCB and 
the CMN defined the main principles and rules for Open Banking (recently evolved into Open 
Finance), which allows the standardized shar ing of data and services between financial institutions 
and other institutions licensed by the BCB. The data sharing must be previously consented by the 
customer. A safe and sound environment is key to reduce information asymmetry by demonopolizing 
data, l eading to increased competition and, hopefully, cheaper and better financial services for 
consumers. The BCB expects that Open Finance promotes a more competitive and efficient financial 
system, generating new opportunities for all parties involved.  
2.24.   Regard ing implementation, institutions are already (i) providing access to standardized 
information related to their service channels and to products and services that they offer to their 
customers; (ii) allowing customers ' data sharing between institutions; and  (iii) initiating payments. 
For the near future, we are looking forward to the interoperability between Open Finance and Open 
Insurance, as well as to the sharing of service of forwarding loan proposals. In terms of usage cases, 
institutions are using Open  Finance data to improve their credit rating and pricing engines, and 
 
1 Available  on https://www.bcb.gov.br/cidadaniafinanceira . WT/TPR/G/ 432 • Brazil  
 
- 9 - 
 
  offering services related to data aggregation, financial management and payment initiation. In 
conclusion, Open Finance is not meant to be taken as a static model, but rather an evolutio nary one. 
Although defining the technical standards is a challenge in the short -term, scope should be 
understood as dynamic in nature, enabling new solutions in the long run.  
2.2.3   Insurance  market  
2.25.   By the end of 2021, there were 124 insurance companies, 14 local  reinsurers and  33 admitted 
reinsurers registered with SUSEP, the Superintendence of Private Insurance, as compared to 118, 
16 and 36 in 2016, respectively.  
2.26.   In 2021, the number of foreign -owned companies was 45, with a market share of 17%  (life) 
and 58% (n on-life). The number of foreign -owned reinsurers was 114 (33 admitted, 72  occasional, 
9 local) with a market share of 67%, including retrocessions from other reinsurers. Foreign insurance 
companies providing insurance of any kind, except reinsurance, are r equired to be incorporated 
under Brazilian law, as a corporation. Insurance companies are precluded by law from engaging in 
other financial activities; nevertheless, they may provide more than one type of insurance service 
and, therefore, may be a composit e company (life and non -life insurer).  
2.27.   Brazil accounts for 39% of Latin America 's reinsurance market. This figure is expected to grow 
as investments of the Brazilian government in energy and infrastructure projects advance and the 
country 's middle class ri ses, requiring significant reinsurance capacity to support the thriving primary 
market. As of December 2021, 119 reinsurance companies were authorized to do business in 
Brazil  (161 in 2015), of which 14 were local and 105 were foreign (33 registered as adm itted 
and 72 as occasional), compared to 145 by the end of 2015.  
2.28.   All insurance, local reinsurance, capitalization and private pension fund companies are subject 
to a supervisory fee (Taxa de Fiscalização dos Mercados de Seguro e Resseguro, de Capitalização  
e de Previdência Complementar Aberta). This fee increases  in line with the margin of solvency, 
whereas for admitted reinsurers there is a single fee per supplier. Insurance companies must pay 
a (higher) fee for the head office and for each risk location.  
2.29.   Solvency capital requirements for insurance and reinsuranc e companies, as well as open 
pension funds, are defined by CNSP Resolution 432/2021 and  vary according to the region of 
operation, the company's type of activity and a standard risk -based model. There are no barriers to 
the domestic trade of insurance serv ices as long as the company complies with these solvency 
requirements.  
2.30.   There were no major changes in the institutional framework of the insurance industry during 
the review period. The Federal Government is responsible for designing insurance policies, as  well 
as for establishing standards and overseeing operations in the National Private Insurance System. 
CNSP (National Council of Private Insurance) remains the main body responsible for setting policies, 
including establishing the characteristics of the v arious insurance contracts, and for the regulation 
of the National Private Insurance System. SUSEP (the Superintendence of Private Insurance), an 
autonomous body under the Ministry of Economy, is in charge of the controls and supervises 
insurance, reinsura nce, open private pension funds, and capitalization (investment plans) and 
brokerage operations. SUSEP implements the CNSP policies.  
2.31.   In 2017, new regulations facilitated the entrance of international players in the Brazilian 
reinsurance market, through the  elimination of four classes of business from the minimum insurance 
retention requirements, namely Nominated Risks, Oil&Gas and Aviation (hull and civil liability) 
insurance. Moreover, mandatory placement with local reinsurers, as well as limits on intra -group 
cessions, were removed. In 2019, Decree No. 10,167 established a 95% cession from local 
reinsurers to foreign -owned companies. Resolution CNSP 396/2020 also enabled the issuance of 
debentures and other financial debt instruments (ILS – insurance -linked securities) by local 
reinsurers. Finally, a new framework for contractual freedom on large risks was issued by 
Resolution  CNSP 407/2021.  
2.32.   The contribution of insurance activities to Brazil 's GDP rose from 3.29% (2015) to 4% (2020). 
Rapid growth was observ ed in recent years, as premiums rose to BRL 289.5 billion in 2020 and to 
BRL 306.3 in 2021. The Brazilian population is still, nevertheless, underinsured.  WT/TPR/G/ 432 • Brazil  
 
- 10 - 
 
  2.33.   Life segment remains larger than non -life segment reaching in gross premiums, respectively, 
USD 35.6 billion and US D 16.8 billion in 2021, from US D 48.7 billion and US D 22.3 billion in 2017. 
This overall 26% decrease is mainly due to exchange rate variation. In Brazilian real terms, there 
was real growth.  
2.34.   Market concentration in the  insurance activity is still high. In 2021 the market share of 
the 10 largest companies  in the industry remained around 80% in terms of direct premiums  – similar 
to the levels observed in previous years  (Table 2.1).  
Table 2.1 Brazilian insurance market concentration  
Year 10 largest  companies  (MKT  share  in %) 
Non-life Life Total  
2017  61.47  90.97  78.80  
2018  60.06  90.07  79.27  
2019  60.02  90.63  79.82  
2020  61.26  91.03  80.55  
2021  63.21  89.98  81.09  
2.35.   Brazil accounts for almost half of Latin America's insurance premiums. From 2017 to  2021, 
the total amount  of assets  was as follows  (Table 2.2) : 
Table 2.2 Brazilian i nsurance premiums  
Total  asset  
(USD billion)  2017  2018  2019  2020  2021  
Insurance  and 
Reinsurance  60.7 55.0 55.4 44.3 44.6 
Open pension  funds  225.4  217.7  228.9  186.8  185.3  
Capitalization  10.5 9.0 8.7 6.9 6.7 
2.36.   Bancassurance is significant, especially in life business; many larger banks offer a full range 
of insurance services whereas large stand -alone companies tend to dominate non -life insurance. 
Nevertheless, brokers remain an important distribution channel. I nsurance brokers must register 
with SUSEP after passing a technical exam.  
2.37.   SUSEP has in place MoUs with the Federal Insurance Office -FIO (USA) and Argentina  and 
a MoU with the International Association of Insurance Supervisors (IAIS), through which it can 
cooperate and exchange information with all other signatories (currently 79 insurance supervisors). 
In 2015,  SUSEP was granted provisional equivalence to Solvency II ( Article 227) by the 
European  Insurance and Occupational Pensions Authority (EIOPA), a n important step towards full 
equivalence. In 2022, SUSEP will become signatory to the MoU of Assal (Asociación de Supervisores 
de Seguros de  América Latina ). 
2.2.4   Securities  market  
2.38.   Despite the devaluation of the Brazilian real between 2017 and 2021, inflation was mostly 
under control during the review period. In that context, Brazilian securities market experienced an 
expansion in 2017 as compared to 2016, not only in the amount of public offerings as a 
whole  (40.9%), both primary and secondary, but a lso in financial volume traded (34.1%). 
Registered offerings alone increased by 51.8% in quantity and 22.1% in financial volume traded 
in 2017, deemed as a year of resurgence of the market in comparison to previous years. There 
were 10 IPOs in 2017, as opp osed to only one in 2016. Offerings placed through restricted effort 
distribution (targeting qualified investors only) increased by 42% in quantity and 39.4% in financial 
volume traded, mostly debentures (around 51%), which reflected a context of constant and 
considerable reduction of the domestic basic interest rate (SELIC).  
2.39.   After this recovering of the market in 2017, more volatility, in 2018, caused a retraction in 
registered offerings, since they require more specific and longer timeframes. Offerings pl aced 
through restricted efforts showed, in contrast, an increase in 2018, as a result of their flexibility in 
terms of structuring and placement processes. Regarding registered offerings, there were only 
three  IPOs in 2018, reflecting hesitations usually o bserved in years of general elections in the 
country, the global macroeconomic instability caused by international trade disputes and a noticeable 
raise of the US benchmark interest rate.  WT/TPR/G/ 432 • Brazil  
 
- 11 - 
 
  2.40.   In 2019, an expressive increase in quantity (27%) and financial volu me traded (66%) in 
public offerings as a whole (both registered and waived of registration) occurred in a context of 
significant reduction of the domestic basic interest rate (SELIC)  (Table 2.3) . Registered offerings 
alone made  2019 the best of the previou s seven years both in quantity and in financial volume 
traded. Offerings of stocks raised 1,750% in quantity and 1,140% in financial volume traded. 
Offerings placed through restricted efforts of distribution also increased 24% in quantity and 51% 
in financ ial volume traded . 
Table 2.3 Brazilian stock  offerings  
Types of 
offerings  2017  2018  2019  2020  
Offers  BRL 
billion  Offers  BRL 
billion  Offers  BRL 
billion  Offers  BRL 
billion  
Primary and 
Secondary 
Offerings 
Registered 
with CVM 167 50,568  128 33,503  189 93,804  163 121,012  
Registration 
waiver granted  14 642 5 410 - - 3 5,006  
Offerings 
through 
restricted 
efforts closed  804 174,908  975 247,997  1,219  374,424  1,777  295,219  
Total 985 226,118  1,108  281,810  1,408  468,228  1,943  421,237  
2.41.   In 2020, the COVID -19 pandemic brought severe volatility to prices of financial products but 
did not reduce significantly offerings in the securities market. Considering all offerings, the 
consolidated financial volume traded in 2020 was 53% higher than the volume registered in  2018 
and only 8% under what was registered in 2019. In terms of the total amount of securities 
issued,  2020 registered 1,362, a reduction of less than 2% in comparison with 2019 (1,382). If 
compar ed to 2018, securities issuing in 2020 showed an increase of 26%. The number of regulated 
market participants (not all market participants but the majority, e.g. securities issuers, service 
providers and the so -called non -resident investors) reached 61,776 , representing a growth of 12% 
in relation to 2019 (54,956) and 21% in relation to 2018. Of all market participants, investment 
funds and autonomous investment agents had the most significant growth in 2020 compared 
to 2019, from 10,798 to 13,881 autonomou s investment agents and from 19,427 
to 22,295  investment funds. Moreover, crowdfunding platforms grew from 14 in 2018 to 26 in 2019, 
and reached 32 by the end of 2020. Finally, the number of natural persons registered under B3 (the 
Brazilian stock exchange ) amounted to 99% of the 3.2 million registered as a whole (juridical and 
natural persons) in the country.  
2.42.   In the past decades, securities markets around the world have shown a constant capacity of 
evolution and transformation. Technological development an d the integration of global financial 
markets are catalysts of a continuously emerging flow of new products models and arrangements, 
as well as services and the market structure itself. The challenge in this context is fine -tuning how 
to stimulate market d evelopment and efficiency, while controlling market conducts and protecting 
investors, and protecting the integrity of the whole market. One of the most important achievements 
in the securities market in Brazil during the period under review was the enactm ent of 
CVM Instruction 626/2020 and CVM Resolution 29, setting forth directions for the constitution and 
functioning of a regulatory sandbox administered by the Securities Commission of Brazil (CVM). In 
less than a year, 33 participants had submitted appli cation for admission, out of which 3 were 
approved, 26 were declared inapt by the Sandbox Committee and 4 were rejected by the Board of 
Commissioners (being 2 for not demonstrating the need for operating outside the ordinary regime 
and 2 for lack of conven ience and opportunity in accordance to Article 12 of CVM Resolution 29).  
2.43.   Structural conditions for the development of  the Brazilian capital markets remained favorable  
from 2017 to 2020, being unaltered from 2019 to end of 2020 . They  benefitted these last two years 
of the period from a lower level of the basic interest rate and the decapitalization p rocess of 
government stimulus funding through development policy and ba nks. WT/TPR/G/ 432 • Brazil  
 
- 12 - 
 
  2.2.5   State -owned enterprises and privatization  
2.44.   Brazil took a key step towards meeting the best international governance practices for 
state-owned enterprises (SOEs) with the publication  of Law 13,303 in 2016. It has directly 
contributed to the reversal of the negative economic scenario not only by providing relief to 
government budgets, but also by  improv ing services for the population.  An important example of 
this movement was the adherence of Brazil to the OECD guidelines of governance for SOEs in  2021, 
as result of a peer review conducted in 2019.  
2.45.   From 2017, Ministry of Economy 's Secretariat of Coordination and Governance of State -
Owned Enterprises (Sest) established its Governance Indicator – IG-Sest, an instrument created to 
verify the fulfillment of le gal, infralegal and good corporate governance practices by SOEs. In 2021, 
IG-Sest reached its 5th cycle and incorporated new aspects , including  non-financial items, such as  
ESG actions and responsible business conduct.  
2.46.   In 2021, the central government owned 154 companies, of which 47 were directly owned, 
representing 7.6% of the GDP. During the review period, two directly owned companies were 
liquidated (Codomar and Casemg), and another one (Ceitec) is under liquidation a s of 2022. 
Moreover, since 2017, divestments largely targeted the energy sector and included 97 SOEs (directly 
and indirectly owned) .2 
2.47.   Regarding transparency, reports of SOEs ' aggregated data have been published since 2020.  
In 2021, the first edition of SOEs Personnel Benefits ' Report and the second one of SOEs in Brazil 
Aggregated Report, the latter in Portuguese and English.  
2.48.   It should be noted that SOEs are not treated differ ently from private companies by sectorial 
regulatory agencies, nor in relation to environmental legislation.  The Brazilian State legally separates 
its functions as majority shareholder, regulator and from the control activities of public resources. 
Further more, the Brazilian Federal Constitution, in its Article 173, § 2º, establishes that  "public 
companies and mixed capital companies cannot have tax privileges that do not extend to private 
sector ones ". This is a competitive neutrality tool, avoiding the gr anting of subsidies, tax exemptions 
or immunities for SOEs that could be extended to private companies operating in the same 
economic  sector.  
2.49.   Since the creation of the Brazilian Investments Partnerships Program (PPI) 
(Law No. 13,334/2016), Brazil has witne ssed the increase in the development of new and 
better -structured projects. The PPI aims to expand and strengthen the interaction between the state 
and the private sector through partnership contracts for the implementation of public infrastructure 
project s and other privatization measures. To this end, the program favors guidelines such as 
stability, legality, legal security, predictability, and transparency in the State's relations with the 
private entities involved.  
2.50.    Those infrastructure projects conside red as top priorities are qualified in the program by the 
President of the Republic, after recommendation by a Council of Ministers. Once mode lled and 
structured, they are offered to private investors through competitive procedures. In its activities, 
the PPI Council can recommend the inclusion of a SOE in the program, suggesting its privatization 
or liquidation (extinction). This latter assignment of the Council is due to its role in the National 
Privatization Program (PND). In addition, the state and muni cipal levels could also benefit from 
the PPI, as their SOEs are also covered by the privatization program.  
2.51.   During the review period (2017 -21), 18 projects involving direct privatization of a federal  SOE 
were included in the PPI portfolio (although one of t hem was excluded from the program in 2021). 
The included SOEs operate in different sectors such as electricity, transportation (port  authority), 
urban mobility, IT, telecommunications, and trading hub, among others.  
 
2 Information is available at Sest panaroma at: 
http://www.panoramadasestatais.planejamento.gov.br/QvAJAXZfc/opendoc.htm?doc ument=paineldopanorama
dasestatais.qvw&lang=en -US&host=QVS%40srvbsaiasprd07&anonymous=true ). 
 WT/TPR/G/ 432 • Brazil  
 
- 13 - 
 
  2.52.   Projects evolved considerably since 2017 , which allowed for the privatization of two important 
SOEs in 2022: Eletrobras (electricity) and Codesa (port authority). In addition, two SOEs were 
extinguished: Casemg (bulk storage, mainly grains) and Codomar (port authority).  
2.53.  Indirect privatizations, considered disinvestments, were also included in the PPI 
between  2017 and 2022. The most important  ones were subsidiaries controlled by Petrobras (oil and 
gas) and Eletrobras  (electricity). Other types of disinvestments related to SOEs included on the 
portfolio have already been auctioned: airports (31 owned by Infraero), port terminals (1), national 
railways  (2), irrigation and interbasin river transfer  (1). 
2.2.6   Government  procur ement  
2.54.   Brazil has a decentralized procurement system. Federal, State and Municipal authorities can 
make public purchases, in accordance with the Procurement Law (Law No.14,133 /2021), which 
provides for five types of bid proceedings that can be used by agenc ies and public entities: open 
tendering; electronic reverse auction ; competitive dialogue ; contest; and public auction. According 
to this Law, public entities cannot establish differential treatment between Brazilian and foreign 
companies. For procurement of common goods and services, reverse auction (" Pregão ") has been 
consolidated as the most popular modality, performed mostly by electronic means, having enhanced 
the efficiency and transparency of Brazil's procurement system.  
2.55.   An important feature of the G overnment procurement system in Brazil is access to 
information. During the period under review, the Government continued to advance towards the 
modernization  of its procurement  systems,  having  set a Public Procurement National 
Platform  (PNCP), which centr alizes disclosure of public notices, providing greater transparency in 
the procurement procedures (https://www.gov.br/pncp/pt -br). 
2.56.   Bidders can also easily find substantial information online through the Panel 
on Procurement  (http://paineldecompras.economia.gov.br ) and the Transparency Portal 
(http://www.portaltransparencia.gov.br ). In addition, the legislation requires both federal and  
sub-federal governments to give wide publicity to tendering processes.  
2.57.  Last but not least, Brazil started in 2020 its negotiations to access the Global Procureme nt 
Agreement (GPA) of the WTO. In June 2022, Brazil presented its final offer for accession to the GPA 
and, as of August 2022, is awaiting the answer by the signatories.  
2.2.7   Exchange  rate and foreign  capital  regime  
2.58.   There is a single foreign exchange market in Brazil. Clients may freely negotiate currency and 
the exchange rate with institutions authorized to operate in the foreign exchange market. There is 
no repatriation requirement of export proceeds, and exporters are allowed to keep all  their 
revenues  abroad . 
2.59.  There is no approval requirement to bring foreign  capital into Brazil. Nevertheless, all  foreign 
capital – including foreign direct and portfolio investments, foreign credit and financing – entering 
Brazil must be registered at the Central Bank. The regi stration is done in declaratory and electronic 
forms in the corresponding modules of the Electronic Declaratory Registration (RDE), at the Central 
Bank Information System (Sisbacen). Repatriating investments and income related to foreign capital 
such as li quidated equity and bond investments, dividend payments and making payments on a 
foreign loan do not need Central Bank 's authorization.  It is important to highlight that all the 
regulations in charge of the Central Bank related to international capital are  being reviewed due to 
the enactment of Law 14,286 /2021  (Exchange and International Capital Law - LCCI). The new law 
and the new regulation will come into force together, on 31 December 2022.  In compliance with the 
provisions of the new Law, the future reg ulation will innovate by using the proportionality criterion 
to establish the requirements for providing information to the Central Bank considering ranges of 
values and specific conditions. Therefore , there  will be a significant reduction in the scope of foreign 
capital operations subject to the provision of information to the Central Bank.  WT/TPR/G/ 432 • Brazil  
 
- 14 - 
 
  2.2.8   Export  insurance  
2.60.   One of the official mechanisms to promote Brazilian exports is the Export Credit 
Insurance  (SCE) backed by the Export Guarantee Fund (FGE). Th e SCE covers the credit risk of 
export financing extended either by private or public financial institutions. The policy is designed so 
that it does not crowd out private insurers from the market. Therefore, it targets market segments 
where there is no sub stantial supply of risk coverage by private insurance companies. Given this 
guideline, the SCE can cover commercial risk of Brazilian exports by companies of any size for 
transactions with repayment terms longer than two years. It can also cover commercial  risk for short 
term transactions (i.e. with a repayment term shorter than two years) in the case of exports by 
small and medium enterprises (SME) – even though this modality of the SCE has not been 
operational since 2018, due to budgetary issues. Under ce rtain conditions, the SCE can also cover 
the risk of performance bonds, refundment bonds and bid bonds issued by financial institutions.  
2.61.   Between 2017 and 2021, 75 operations of export credit insurance were approved under 
the SCE/FGE, which corresponded to USD 16.5 billion in total approved coverage.  
2.62.   Although not yet a full member of the OECD, Brazil follows the pricing model approved in the 
framework of the OECD 's Arrangement on Officially Supported Export Credits. Moreover, Brazil is a 
participant in the S ector Understanding on Export Credits for Civil Aircraft, applying the minimum 
premium rate and other conditions established in that sector understanding. Therefore, the SCE  risk 
premia are priced according to a methodology that is reputed to accurately re flect the risk of the 
transaction.  
2.2.9   Long  run production  and export  finance  
2.63.   The National Bank of Social and Economic Development (BNDES), a state -owned bank created 
in 1952, is the main source of long -term credit in Brazil. Since its foundation, BNDES has played a 
fundamental role in stimulating the expansion of industry and infrastructure in the country. Over the 
course of the Bank's history, its operations have evolved in accordance with the country's social and 
economic challenges, and now they include s upport for technological innovation, sustainable 
socio-environmental development and the modernization of public administration. Currently, the 
long-term financing needed for investment in fixed assets, both direct – through capital 
markets  – and indirect – through the banking system – is still scarce, and the activities of BNDES 
have complemented those of commercial banks, with a clear segmentation between short -and 
long-term credit. Brazil's financial market remains focused mainly on  the short term, with liquidity 
concentrated in few assets.  
2.64.   Credit lines offered by BNDES encompass long -term financing for the development of 
investment projects and for the commercialization of new machines and equipment, as well as the 
financing of Brazilian exports, taking into account ethical, environmental and sustainable 
development principles. BNDES's credit lines also contribute to strengthen the capital of private 
companies and to the development of capital markets.  
2.65.   BNDES disbursed BRL 64.3 billion and performed 191,09 3 credit operations in 2021. In 
comparison with the previous year, disbursements were almost stable, falling less than 1%. BNDES 
had a net profit of BRL 34.1 billion in 2021. The Bank was able to achieve a financial performance 
consistent with  its activiti es as a development  bank,  reaching  a loans portfolio,  net of provision  for 
credit  risk, of BRL 439.5 billion at the end of 2021. Total assets amounted to BRL 737.2  billion 
in 2021, a reduction of 5.3% over 2020.  
2.66.   BNDES aims to be the bank of Brazilian sustainable development and its missions are linked  
to the Sustainable Development Goals (SDGs) . Support for micro, small and medium enterprises, 
for example, seeks to generate jobs, productivity and competitiveness, contributing to promote 
decent work and economic growth and reduce inequalities. Stimulus to basic education and 
professional qualification, part of the Bank 's agenda for education, is a recognized strategy to reduce 
poverty. Building resilient infrastruct ure, promoting inclusive and sustainable industrialization and 
fostering innovation stay relevant to the institution 's strategy. BNDES 's missions are also aligned to 
the transition to a low carbon economy, with a focus on expanding renewable energy, develo ping 
the market for carbon credits and promoting productive sector operations that have a positive 
environmental impact.  WT/TPR/G/ 432 • Brazil  
 
- 15 - 
 
  2.67.   Beyond credit, BNDES stands out in project structuring, provision of guarantees, fund 
investments and issuance of green bonds. At the s ame time, digital transformation and partnerships 
with agent banks and fintechs  are bringing the institution closer to entrepreneurs, with a direct 
impact on job and income generation.  Since 2016, BNDES has made debt repayments amounting to 
BRL 472 billion  to the National Treasury. The proceeds are used in full to reduce Brazil's public debt. 
The amortization does not affect the BNDES's equity structure, full compliance with prudential 
banking rules and compliance with the disbursement schedule of operation s already contracted 
or prospective.  
2.68.   Defaults on BNDES's credit portfolio represented 0.19% of the total in 2021, below the 
national average of 2.30% in the same period. The capital adequacy index (Basel Index) recorded 
by the BNDES was 40.2%, whereas the index required by the Central Bank is 10.0%. The Bank 
seeks to harmonize competitive interest rates with the preservation of public equity by continuously 
monitoring credits and guarantees that cover the debt position over the duration of the contracts.  
2.69.   BNDES offers two export credit lines: (a) pre -shipment credit, which supplies working  capital 
for Brazilian exporters; and (b) post -shipment credit, which targets the commercialization  of 
exported goods and services through buyer's or supplier's credit, in a ccordance with international  
standards.  BNDES's  export  credit  disbursements  decreased  from USD 815.4  million in  2017 to 
USD 477.9  million by the end of 2021, mainly due to reduced demand from exporters. Capital goods 
accounted for almost the entirety of th e total export finance disbursements in 2021. This  includes  
buses, trucks, light  commercial vehicles, industrial  machinery and  equipment, as  well as aircraft.  
2.3  Social  Policies  
2.70.   During the period under review, Brazil continued to prioritize social development by combining 
the strengthening of universal policies in health, education and social security with income 
distribution and policies focused on promoting the social inclusion of low -income and vulnerable 
segments of the population.  
2.71.   Brazil is als o continuing to move forward in social development by strengthening its policies 
to fight forced labour and child labour by implementing plans, programs and actions, in line with 
international labour standards, to promote decent work. These policies also h elp to improve social 
inclusion and fight against business illegal competitive practices. Between 2017 and 2020, Brazilian 
authorities rescued 6,426 people from forced labour and removed 8,194 children from work.  
2.72.   Brazil is also implementing social dialogue  practices and technological tools in order to inform, 
train and make the social actors aware of the national law system and the international labour 
standards in order to help businesses achieve sustainable decent work across the country.  
2.73.   2020 was a chall enging year for Brazil, requiring the structuring of quick and effective 
responses to face the socioeconomic impacts caused by the COVID -19 pandemic. With the 
Emergency Aid ( Auxílio Emergencial ) and the Residual Emergency Aid ( Auxílio Emergencial 
Residual ), the Brazilian assistance programs reached historic levels in 2021, benefitting 
14.69  million  families.  
2.74.   Most of the Emergency Aid beneficiaries (more than 50%) were female heads of families, who 
received BRL 375.00 each, per month. The beneficiaries who r eceived the standard benefit of 
BRL 250.00, represented 33.4% of the payroll. Another 15.6% of the families were single persons, 
and each one received BRL 150.00.  
2.75.   The perspective of the end of Emergency Aid, in October 2021, and the challenges of the 
post-pandemic situation demanded a quick response from the federal government to mitigate the 
income losses of the most vulnerable families and promote the recovery of the economy. This took 
place through the creation of a strategy aimed at improving social pro tection and income transfer 
policies, made possible through the Aid Brazil ( Auxílio Brasil ), an assistance program which replaced 
the Bolsa Família  Program and was instituted by Provisional Measure No. 1,061/2021, converted 
into the Law No. 14,284/2021.  
2.76.   Auxílio Brasil  aims to promote citizenship with guaranteed income and support, through the 
benefits offered by the Unified Social Assistance System (SUAS), the articulation of policies aimed WT/TPR/G/ 432 • Brazil  
 
- 16 - 
 
  at beneficiaries; promote, as a priority, the development of childr en and adolescents, through 
financial support to pregnant women, nursing mothers, children and adolescents in poverty or 
extreme poverty; promote the development of children in early childhood, with a focus on health 
and stimulation of physical, cognitive,  linguistic and socio -affective skills, in accordance with the 
provisions of Law No. 13,257/2016; expand the offer of care for children in day care centers; 
encourage children, adolescents and young people to have excellent scientific and technological 
performance; and stimulate the emancipation of families in situations of poverty and 
extreme  poverty.  
2.77.   The target audience is families in extreme poverty and in poverty that have pregnant women, 
nursing mothers or people under the age of 21 in their family com position. The five benefits of the 
Auxílio Brasil  are foreseen in the caput of Art. 4 of Law No. 14.284/2021, and in Art. 1 of 
Law No. 14,342/2022.  
2.78.   The amount paid per family in Auxílio Brasil  depends on the basket of benefits to which each 
family is entit led, and may vary depending on income and family composition, respecting the 
minimum of BRL 400.00. This is an improvement to the the Bolsa Família , as it is simpler, more 
understandable, more equitable and, as a rule, provides higher values.  
2.79.   As an example  of its impact, the average value of Auxílio Brasil , in May 2022, was around 
BRL 407.91. This is an increase of more than 100% compared to the average value per family paid 
by Bolsa Família  in the most recent historical series ( BRL 189.00), which covers th e period starting 
in July 2018, month of the last readjustment, and disregards the months of payment of the 
Emergency Aid, in 2020 and 2021. If the old average value adjusted for inflation (until May  2022) 
of approximately BRL 227.00 is computed, the incre ase after the incorporation of the Extraordinary 
Benefit is equivalent to around 80%.  
2.80.   The permanence in Auxílio Brasil depends, among other issues, on the fulfillment of some 
conditions that aim to encourage families to exercise the right of access to publ ic policies of social 
assistance, education and health. Among the criteria are a minimum monthly school attendance 
of 60% for children aged between 4 and 5 years, and 75% for those aged between 6 and 21, 
compli ance with the national vaccination schedule es tablished by the Ministry of Health, the 
nutritional monitoring of children up to seven years of age and prenatal care for pregnant women.  
2.81.   In summary, the creation of the Auxílio Brasil Program, with its new basket of benefits, its 
values and the upward  review of the extreme poverty and poverty lines, is an important step within 
the gradual process of guaranteeing the right to a basic income for citizenship (minimum income), 
provided for in Law No. 10,835/2004.  
Finally, it is worth mentioning the Gas Aid Pr ogram ( Auxílio Gás ) created to reduce the impact of the 
price of cooking gas on the budget of low -income families. The benefit of the Gas Aid Program will 
be paid within the limit of 1 (one) benefit  per beneficiary family, in alternate months, in the amoun t 
of BRL 52.00, which represents 50% (fifty percent) of the average  of the national reference price 
for a 13 kg bottle of liquefied petroleum gas . 
3  TRADE  POLICY  DEVELOPMENTS  (2017 -21) 
3.1  Latest  Developments  in Brazilian  Foreign  Trade  
3.1.  Brazilian foreign trade has increased since 2017, both in nominal terms and as a percentage  
of the GDP. The country's foreign trade value increased 40% between 2017 and 2021, from 
USD 379 billion to US D 532 billion. Relative to GDP, foreign trade increased  from 24 .3% in  2017 
to 39.2% in 2021. The share of Brazilian exports in global trade increased from 1.2% in  2017 
to 1.3% in 2021.  
3.2.  The period 2017 -21 was characterized by significant surpluses in goods trade. In 2017, the 
surplus trade in goods reached US D 57.3 billion, decreasing to US D 43.4 billion in 2018 and 
USD 26.6 billion in 2019. In the next two years, the surpluses increased again to US D 32.4 billion 
and US D 36.4 billion, respectively. Regarding the destination of goods, exports to Asia 
increased  67.4%; to North America, 22.1%; to Europe, 21.7%; to the Middle East, 3.5%; and to 
Africa, 0.9%. Exports to South America decreased 3.4% in the period.  WT/TPR/G/ 432 • Brazil  
 
- 17 - 
 
  3.3.  Manufacturing accounted for 56% of exports, mining and quarrying for 24% and agriculture, 
forestry and fishing for 20%. The main exported products were iron ore and concentrate, soybeans, 
petroleum oils and oils obtained from bituminous minerals (crudes), sugars and molasses, meat of 
bovine animals, soybean waste and other animal feeds, petroleum oils and o ils obtained from 
bituminous minerals (other than crude), meat and edible offal of the poultry, pulp, and ingots and 
other primary forms of iron or steel.  
3.4.  Intermediate goods had a share of 64%  of total imports in the 2017 -21 period. These were 
followed by consumer goods (13%), capital goods (13%) and fuels and lubricants (12%). Petroleum 
oils and oils obtained from bituminous minerals (other than crude), fertilizers, telecommunications 
equipment and parts, parts and accessories of the motor vehi cles and electronic goods were the 
main products imported by Brazil.  
3.2  Tariffs  
3.5.  All trading partners of Brazil receive at least most -favoured -nation (MFN) tariff treatment. The 
MERCOSUR Common External Tariff (CET) and the Common MERCOSUR Nomenclature  (NCM) a re 
currently based on the 2022 version of the Harmonized System  (HS) accordingly to the Executive 
Committee of Foreign Trade Chamber (Gecex) Resolution No. 272/2021. The regulation also 
consolidates tariffs levels applied in Brazil, enhancing transparency to domestic trade operators and 
foreign partners.  
3.6.  Brazil's 2022 applied MFN tariff is entirely ad valorem  and has 10,435 lines at the  8-digit level. 
The simple average applied MFN tariff is 9 .4%, as of 1 July 2022, and declined by 2 .2 percentage 
points rel ative to 2017.  
3.7.  In response to the COVID -19 pandemic, Brazil reduced to zero the MFN import duties on certain 
medical and protective equipment between 18 March 2020 and December 2022 . As of August 2022, 
the list covers 548 products.  
3.8.  In November  2021, Brazil  also implemented a horizontal reduction of 10 percentage points  
across its MFN tariff, and a reduction from 2% to 0% to all tariff lines previously charged in this tariff 
level, with a view to lessening the pandemic's economic impact. This temporary reduc tion was to 
remain in force until 31 December 2022.3 An additional linear reduction of 10% was carried out 
on 1 July 2022 extending the validity of reductions until 31 December 2023.  
3.9.  In parallel to national measures, MERCOSUR has been reducing tariff leve ls since 2017. 
Around  200 NCM codes with applied MFN tariff equal or higher than 4% were reduced to 0% in 
the CET, covering, mainly, chemical, pharmaceutical and aeronautical products.  
3.10.   Lately, MERCOSUR approved new reductions in the CET scheduled to enter into force on 
1 September  2022. They refer to cuttings from 2% to 0% to all tariff lines previously charged in this 
tariff level (2,123 tariff lines) and of 10% across MFN tariff covering 4,763 tariff lines.  
3.3  Measures directly affecting imports  
3.11.   During the p eriod under review, in line with provisions set forth in the Economic Freedom Act, 
and in the WTO's Trade Facilitation Agreement, Brazil has undertaken efforts to reduce the cost of 
government int ervention on foreign trade operations to the minimum necessary to guarantee that 
public policies are properly applied. In this context, the Secretariat of Foreign Trade (SECEX) has 
removed several automatic and non -automatic import licensing requirements i mposed by economic 
purposes. Thus, over 2020 -21, impo rts related to trade remedies, non -preferential origin 
investigation, statistical monitoring and replacement of defective goods were excluded from the 
licensing regime.  
3.12.   Currently, SECEX only imposes aut omatic import licensing requirements to imports under the 
suspension and exemption drawback special regime. In turn, non -automatic import licensing 
requirements are applicable to imports of used goods, operations subject to similarity examination 
and those  supported by tariff quotas. Moreover, in 2021 SECEX s treamlined the import licensing 
 
3 GECEX Resolution No. 269/2021.  WT/TPR/G/ 432 • Brazil  
 
- 18 - 
 
  process to import used production lines into Brazil by reducing the deadline of licensing analysis 
from 30 days to 10 days and cutting unnecessary bureaucratic procedures.  
3.13.   As a result of measures adopted to reduce non -tariff barriers associated with the Brazilian 
import licensing regime, the number of licenses issued by SECEX decreased from 1.2 million in  2019 
to 380,000 in 2021. In the same period, the trade value of the licensed imports shrank from 
USD 37 billion to USD 20 billion. In addition, the average time to issue an import license dropped 
from 1.9 days to 0.6 days, with about 80% of licenses being analyzed in an automated way. All 
these figures are displayed on the internet through the Siscomex website .4 
3.14.   Brazil also put in place arrangements for the bilateral exchange of digitally signed certificates 
of origin in trade with Argentina, Colombia, Paraguay and Uruguay. In these countries, the digital 
certificates of origin may completely replace the hard -copy certificate s of origin.  
3.4  Participation  in the WTO  
3.4.1   Negotiations  
3.15.   Brazil remains firmly committed to preserving and strengthening the rules -based Multilateral 
Trading System and reaffirming the relevance of the WTO as a central pillar of the global economic 
governance.  
3.16.   Agriculture remains one of Brazil's top priorities. The lack of a specific outcome on agriculture 
at MC11 and MC12 should mark the end of a cycle and the beginning of a new stage for agriculture 
negotiations with new guiding principles for MC13. The only po int of consensus Members have in 
agriculture is Article 20 of the Agreement on Agriculture – and that is the mandate the Membership 
should stick to for a fresh start. Brazil advocated that Members must take advantage of this clean 
slate in agriculture to r eflect on the necessary conceptual modernization of agricultural negotiations. 
This conceptual modernization should include, among other things, an assessment of how the two 
main topics of the agricultural negotiations – domestic support, including PSH, an d market 
access  – will be dealt with under new parameters.  
3.17.   In the period under review, Brazil has been actively engaged in the negotiations of the joint 
initiatives on E -Commerce, Investment Facilitation for Development and Services Domestic 
Regulation. Brazil took part in conclusion of the JSI on Services Domesti c Regulation in 
December  2021, and presented a pre -finalization schedule with five additional sectors (Postal 
Services, Telecommunication Services, Environmental Services, Maritime Transport Services and Air 
Transport Services), showing its commitment to a n ambitious outcome of this initiative. Brazil has 
also actively participated in all negotiations during the WTO 's Twelfth Ministerial Conference  (MC12).  
3.18.   In June 2022, Brazil presented its final market access offer in the context of its accession to 
the WT O Agreement on Government Procurement (GPA). Brazil communicated its intention to join 
the GPA in May 2020, circulated its Reply to the Checklist of Issues in October 2020 and presented 
both the initial offer and the revised offer throughout 2021. The coun try has been an observer in 
the GPA Committee since 2017. Should the negotiation be successful , Brazil will be the 
first Latin American country to become a Party to the GPA. This is in line with the Brazilian agenda 
of concluding international procurement agreements and trade agreements with procurement 
chapters, such as in the case of the agreements con cluded with Peru, Chile (in force), with 
MERCOSUR countries and between MERCOSUR -European Union and MERCOSUR -EFTA.  
3.19.  Brazil has also presented to the WTO in J une 2022 its application for accession to the 
Agreement on Trade in Civil Aircraft. Brazil's intention to join this agreement reinforces the federal 
government's commitment to the multilateral trade liberalization agenda, along with the ongoing 
process of the country's accession to the GPA.  
3.4.2   Dispute  settlement  
3.20.   Brazil attaches high priority to strengthening the WTO dispute settlement system and has 
actively  participated in the mechanism since its very first dispute that advanced beyond the 
 
4 https://www.gov.br /siscomex/pt -br/informacoes/importacaoo/paineis -licenciamento -de-importacao . WT/TPR/G/ 432 • Brazil  
 
- 19 - 
 
  consultations stage ( US – Gasoline ). To date, of 612 WTO disputes, Brazil participated in 215 of 
them – 34 as complainant, 17 as respondent and 164 as a third party. Most o f the cases of which 
Brazil was or is a party have dealt with issues that are at the core of the Multilateral Trading System, 
such as: granting of subsidies both to industrial ( Canada –Aircraft  and Canada –Commercial Aircraft ) 
and agricultural goods ( EU–Sugar, US–Upland Cotton, Indonesia –Chicken , and India-Sugar ), the 
application of trade -restrictive measures by developed countries ( US-Orange Juice, EU -Poultry ), the 
protection of the environment ( Brazil–Tyres ), and the protection of public health ( EU–Medicine s 
in Transit ). 
3.21.   Considering only active disputes, with actions taken from December 2020 on, Brazil 
participates in 4 disputes as a complainant, and 36 as a third party. Brazil challenges the restrictions 
imposed by Indonesia on the importation of  poultry ( Indonesia –Chicken ), the subsidies accorded by 
Thailand ( Thailand –Sugar ) and by India ( India–Sugar ) to their sugar industries, as well as the 
SPS requirements adopted by the EU on Brazilian poultry.  
3.22.  Brazil has  recently adopted Law No. 14,353/2022, which allows for the suspension of 
concessions and other obligations  for Members that have appealed  panel reports in which Brazil is a 
complainant to an inoperative Appellate Body (i .e. appealed "into the void "), thereby obstructing the 
conclu sion of a dispute. The objective of that law is to remedy the present failings of the 
WTO's dispute settlement system by creating incentives for achieving a solution through 
negotiations between the disputing parties and/or the recourse to alternative mean s of settlement.  
3.23.  In another effort to overcome the paralysis of the Appellate Body, Brazil joined in 2020 the 
Multi-Party Interim Appeal Arbitration Arrangement (MPIA). The MPIA is based on Art. 25 of the 
Dispute Settlement Understanding , and provides an a lternative, provisional solution to ensure the 
rules-based system through the recourse to an independent and effective appeal system.  
3.4.3   Special  and differential  treatment  
3.24.   In 2019, Brazil decided to begin to forego the use of special and differential treatmen t (S&DT) 
in current and future WTO negotiations, in an effort to help move the WTO forward. It is important 
to highlight, however, that  Brazil continues to attach great importance to  S&DT  for least developed 
countries (LDCs) and developing WTO Members in a ccordance with their individual development 
needs, providing them the needed flexibility to fully integrate into the multilateral trading system. 
In Brazil 's understanding, S&DT should be focused, needs -based and aimed  towards the 
full implementation of WT O provisions as a way to promote development, which is one of the goals 
of the MTS.  
3.25.   Brazil also attaches great  value to the role of the Committee on Trade and Development as 
the reviewer of regional trade agreements (RTAs) among developing countries and pr eference 
schemes favouring developing countries authorized under the Enabling Clause.  
3.26.   The Enabling Clause is also the WTO legal basis for the  Generalized System of 
Preferences  (GSP). During the review period, Brazil has been graduated from the GSP schemes 
of Japan, in 2019, and the Eurasian Economic Union (Armenia, Belarus, Kazakhstan, Kyrgyz Republic 
and the Russian Federation), in 2021. Brazil remains a beneficiary of the GSP schemes of Australia, 
New Zealand, Norway, Switzerland, and the United States.5 
3.4.4   Trade and Environmental Sustainability Structured Discussions (TESSD)  
3.27.  During MC12, Brazil announced it would join the TESSD Ministerial Declaration and become 
a co-sponsor of that plurilateral initiati ve. Even while internal consultations were taking place, Brazil 
was the only non -cosponsor to present a proposal in the area. Document INF/TE/SSD/W/12 
emphasizes the central role of the agricultural sector in promoting sustainable development and 
draws att ention to the environmental impacts of agricultural subsidies. Brazil has also been a 
 
5 Legal authorization for duty -free treatment under the USA GSP program expired on 1  January  2021 
(19 U.S.C. Section 2465). The renewal of the program is still under discussion at  Congress. Congressional 
practice has been to extend the program retroactively from the original expiration date, so that importers 
are refunded for the duties incurred during the time lapse.  WT/TPR/G/ 432 • Brazil  
 
- 20 - 
 
  constructive participant in the discussions on trade and sustainability held in the WTO  Committee 
on Trade and Environment.  
3.4.5   Preferential  Agreements  
3.28.   Notwithstanding the pr iority it attributes to the multilateral trading system, Brazil believes 
that preferential trade agreements can play a supplementary role in the efforts to harness the 
benefits of international trade towards the goal of economic and social development of a ll Members.  
3.29.   Brazil is looking for new partners to increase, diversify and improve its trade relations, 
alongside its MERCOSUR associates, in order to ensure the growth and stability of the Brazilian 
economy and a competitive insertion of the country in the  global scenario.  
3.30.   Within the Latin American region, Brazil participates in regional agreements under the 
provisions of the Latin American Integration Association (LAIA). Brazil's trade policy is structured 
around  the MERCOSUR  customs  union.  As detailed  below, MERCOSUR  has trade  agreements  with a 
number of Latin American countries and free trade agreements with all South American countries.  
3.31.  Since 2017 , Brazil 's strategy has also focused on going beyond its traditional Latin  American 
partners , intensifying it s agenda of trade negotiations,  and negotiating comprehensive trade  
agreements. Some trade agreements entered into force during the review period (Brazil –Argentina, 
Brazil -Chile, Brazil –Mexico, Brazil –Paraguay, MERCOSUR -Colombia, MERCOSUR –Egypt) and some  
FTAs negotiations were concluded (MERCOSUR –European Union, MERCOSUR –European Free Trade 
Area [EFTA] and MERCOSUR –Singapore ). Signing and ratification of these agreements are still 
pending and the negotiation of other agreements ( with e.g. the Republic of  Korea, Canada and 
Lebanon) is under way .6 Together with the other MERCOSUR Members, Brazil has concluded 
exploratory dialogues with Indonesia and Viet Nam and launched negotiations with Indonesia in 
December 2021.  These initiatives  reflect the growing openness and support of both the Brazilian 
government and the private sector regarding free trade negotiations.  
3.5  MERCOSUR  
3.32.   MERCOSUR was established in 1991 by the Treaty of Asuncion7, and its institutional structure 
was defined in 1994 by the Protocol of Ouro Preto. MERCOSUR is Brazil's main preferential 
agreement in terms of value of trade, accounting for more than 10% of its merchandise trade; it is 
also the backbone for further regional integration and negotiation of  extra-regional ag reements. The 
MERCOSUR market is particularly important to Brazil as its main destination for manufactured goods 
with higher added value.  
3.33.   The Common Market Group (GMC) and the Council for the Common Market (CMC) are the 
main decision -making bodies of MERCO SUR respectively. The Council is composed of the Ministers 
of External Relations and Economy of member states; its mission is to formulate policy and promote 
actions to develop the Common Market. The GMC oversees the application of the Treaty of Asuncion, 
its protocols and agreements, and can make recommendations to the Council. It is entitled to issue 
mandatory Resolutions that apply to all member states. It is also in charge of negotiations with other 
countries, groups of countries and international organ izations. The MERCOSUR Trade Commission 
(CCM) is responsible for the application of common trade policy instruments.  
3.34.   Dispute  Settlement  in MERCOSUR  is regulated  by the Protocol  of Olivos,  signed 
in February  2002 and in  force since January 2004.  Under the  Protocol  of Olivos,  member  states can 
choose to file disputes either within MERCOSUR or at the WTO. Upon agreement by the  parties, the 
Common Market Group can provide mediation. Cases are handled by a Court of Ad  Hoc Arbitration  
(TAHM)  and/or  by the Perman ent Review  Court  (PRC),  which  is composed  of five judges.  
 
6 The Agreements with Chile and Colombia aim to boost the MERCOS UR-Pacific Alliance relationship 
in light of the July 2018 MERCOSUR -Pacific  Alliance Puerto Vallarta Summit commitments, with a focus on free 
trade and regional economic  integration, including issues such as services, investment and trade facilitation.  
7 MERCOSUR is incorporated in the LAIA legal regime as Economic Complementarity Agreement 
(ECA)  No. 18. LAIA economic complementarity agreements must be open for accession by any LAIA country.  WT/TPR/G/ 432 • Brazil  
 
- 21 - 
 
  3.35.   Created in December 2005, the Parliament of MERCOSUR (PARLASUR) is a symbol of the 
political  decision to strengthen and deepen the integration process and to develop common interests 
and values in the region.  
3.36.   During the period under review, MERCOSUR has taken important steps towards the 
consolidation and modernization of the Customs Union. MERCOSUR member states share a Common 
External Tariff (CET), which entered into force on 1 January 19 95. For the first time, in July  2022, 
Mercosur Members decided to reduce permanently the CET by 10%.  Different exceptions have been 
admitted through Decisions by the CMC. All MERCOSUR member states are currently authorized to 
have an exception list of prod ucts on which higher or lower tariffs vis-à-vis the CET will be applied. 
There are different provisions for each country. Brazil can include up to 100 tariff lines and modify 
as many as 20% of them every six months, until the end of 2028 .8 Brazil is also allowed to establish 
special tariffs for Capital Goods (BK) and for Informatics and Telecommunications Goods (BIT)  until 
the end of 2028.9 
3.37.   The sugar and automotive sectors are the only ones excluded from free trade within 
MERCOSUR. There is no schedule fo r the inclusion of sugar in the free trade regime, although talks 
on the issue resumed in 2017. Since the creation of MERCOSUR, there were plans to bring sugar 
into the Customs Union and an Ad Hoc Group was created to that purpose. Brazil believes it is ti me 
to make progress towards a gradual liberalization of trade for sugar in MERCOSUR. Trade in the 
automotive sector between Brazil and MERCOSUR Members is still largely regulated by  bilateral 
agreements within the framework of LAIA.10 Trade flows  are duty -free in the sector under specific 
conditions. In 2020, an automotive agreement was established between Brazil and Paraguay. The 
common automotive policy agreed on by member states in 2000 and 2001 did not enter fully into 
force as originally planned. It is  Brazil's intention to advance towards the establishment of 
a MERCOSUR common automotive regime since bilateral sectoral agreements have been concluded 
with all MERCOSUR partners.  
3.38.   Established  in 2006,  the Fund for Structural  Convergence  of MERCOSUR  (FOCEM)  (Decisions 
CMC No. 45/2004 and No. 18/2005) epitomizes MERCOSUR's commitment to bridging the 
development gap between the countries in the region. It funds infrastructure development and social 
cohesion initiatives in MERCOSUR. The Fund receives cont ributions from all member states. 
Paraguay and Uruguay  are the main beneficiaries  of FOCEM  and Brazil  is the main contributor.  
Decision  CMC No.  22/2015 renewed FOCEM for 10 years from the date all member states incorporate 
the decision into their domestic legal orders.  
3.39.   The Protocol of Montevideo on Trade of Services entered in to force in 2005 between Argentina, 
Brazil and Uruguay. It establishes a schedule for services liberalization (covering both market access 
and national treatment measures) within MERCO SUR. Under the Protocol  of Montevideo,  the Parties  
have scheduled  commitments  in virtually  all sectors  and sub -sectors covered by the WTO Services 
Sectoral Classification List (MTN.GNS/W/120). In 2019, the bloc approved a revision of the Protocol 
to incorporate  financial services , and, i n 2021 , MERCOSUR Parties agreed to incorporate disciplines 
on postal services, domestic re gulation and telecommunications.  A mutual recognition agreement 
on the qualification of certain professional services  was also reached in 2021.  
3.40.   The Protocol  on Cooperation  and Facilitation  of Investments (Decision CMC 03/2017)  
represents a milestone in the regulation of investments in the region. The Protocol addresses  the 
business  community's  interest  in minimiz ing risks and preventing  disputes  related  to investments. 
It also seeks to encourage mutual investments within the region through intergovernmental dialogue 
mechanisms, which support companies in the process of internationalization. The Protocol will 
provide for greater disclosure of business opportunities, exchange of information on regulatory 
frameworks and appropriate mechanisms to prevent and, eventually, settle disputes. It establishes 
a solid framework for investment in all Member States and will be a pplicable to Foreign Direct 
Investments made before or after its entry into force.  The Protocol on Government Procurement, 
 
8 Provisions are identical for Argentina. Paraguay was authorize d to maintain a list of up to 649 tariff 
headings until the end of 2030, and Uruguay can include up to 225 tariff headings until the end of 2029  
(Decision CMC 11/21).  
9 Decision CMC 08/21.  
10 44th Additional  Protocol  to ECA No. 14 (Brazil -Argentina),  ECA No. 2 (Brazil -Uruguay)  and ECA No. 69 
(Brazil -Bolivarian Republic of Venezuela) and 1st Additional Protocol to ECA No. 74 (Brazil -Paraquay).  
 WT/TPR/G/ 432 • Brazil  
 
- 22 - 
 
  also signed in 2017,  seeks to create new business opportunities for the private sector and thus  
generate employment and income  and to reduce costs for the public sector, in order to contribute 
to the economic and social development of member states.  
3.41.   In 2020, MERCOSUR Members concluded the negotiations of the Electronic Commerce 
Agreement. In light of the increasing importance of e -comme rce in Brazilian and regional economies, 
this Agreement aims at facilitating trade by electronic means, providing legal certainty and creating 
an environment that protects users of e -commerce, their privacy and data. In that regard, 
MERCOSUR 's Electronic Commerce Agreement provides for non -imposition of customs duties on 
electronic transmissions; electronic authentication and signature; online consumer protection; 
protection of personal information; cross -border transfer of information by elect ronic means; 
location of computing facilities; principles on the access and use of the Internet for electronic 
commerce; unsolicited commercial electronic messages ( "spam "); electronic commerce facilitation; 
and cooperation.  
3.42.   In 2015,  the CMC approved  the Action Plan for the Strengthening  of MERCOSUR's  Trade  and 
Economic Mechanisms. An ad hoc group was created to identify measures deemed detrimental to 
free trade in the areas of technical regulations, sanitary and phytosanitary measures, domestic taxes 
and b ureaucratic procedures. Specifically concerning Technical Regulations, Brazil strongly supports 
improvements to the approval and revision mechanisms of MERCOSUR's technical regulations.  
3.43.   In 2019, trade -related agreements were signed on the following issues:  trade facilitation 
(eliminating fees and taxes on mutual trade) ; Geographical Indications for numerous products; a 
framework for concluding trade facilitation initiatives in the area of technical regulations; a mutual 
recognition agreement for digital sig natures , and an agreement on the elimination of  roaming taxes 
in telecommunications within MERCOSUR countries . In the same year , an agreement on the mutual 
recognition of Authorized Economic Operators was signed by MERCOSUR Customs General Directors.  
3.44.   It is also worth recalling that Member states have agreed on a number of instruments with a 
view to facilitating the movement of citizens between Member States. Active participation of civil 
society and social movements in discussing public policies in areas as  diverse as education, health, 
labour, human rights and others is also contributing to social responsibility and political 
accountability. This is as much an institutional breakthrough as it is a commitment to advancing the 
social agenda of MERCOSUR integr ation.  
3.5.1   MERCOSUR  and regional  agreements  
3.45.   MERCOSUR has a broad range of trade agreements within the framework of LAIA. These trade 
agreements are known as Economic Complementation Agreements (ACEs). They have been signed 
with the Plurinational State of Boliv ia (ACE -36), Chile (ACE -35), Mexico (ACE -54, ACE -55), 
Peru (ACE-58), Colombia  (ACE-72), Ecuador  (ACE-59), the Bolivarian  Republic  of Venezuela 
(ACE-59) and Cuba (ACE -62). Besides the aforementioned agreements in the framework 
of MERCOSUR,  Brazil  has celebrated  bilateral  fixed tariff preferences  agreements  with 
Mexico  (ACE-53) and other partial scope agreements with Guyana (AAP -38), Saint  Kitts and Nevis 
(AAP-38), and Suriname (AAP -41). 
3.5.2   MERCOSUR  and extra -regional  agreements11 
3.46.    The European Union and M ERCOSUR reached a political agreement in 2019 for an ambitious, 
balanced and comprehensive trade agreement. Once the agreement enters into force, EU will provide 
full tariff elimination on 92% of imports from MERCOSUR and 95% of its tariff lines, along wit h 
partial concessions under TRQs, fixed margins of preferences and entry prices, which elevates i ts 
coverage to 99% in terms of tariff lines. MERCOSUR 's offer allow s for full tariff elimination in 91% 
for both bilateral imports from the EU and tariff lines . MERCOSUR also granted partial concessions 
to the EU in 32 tariff lines. In addition, the agreeme nt provides for openness, greater transparency, 
and legal certainty in the markets for services, investments and government procurement, as well 
as the reduct ion of non -tariff barriers and consolidation of an agenda of good regulatory practices, 
in additio n to the establishment of modern disciplines in the area of trade facilitation and intellectual 
property, among other topics. As of July 2022, the  agreement 's texts were undergoing  legal and 
 
11 Further  informations regarding MERCOSUR 's extra-regional trade agreements can be found at 
https://www.gov.br/siscomex/pt -br/acordos -comerciais . WT/TPR/G/ 432 • Brazil  
 
- 23 - 
 
  formal revision , after which  they will be translated and sent to the parties  for signature.  In 2020, 
the parties announced the conclusion of the negotiations on the political dialogue and cooperation 
part of the Association Agreement as well.  
3.47.   Negotiations between MERCOSUR and the European Free Trade Association (EFTA) countries 
were concluded in  principle in 2019, two years after its first round. The conclusion of this negotiation 
is yet another result of efforts to expand Brazil 's and MERCOSUR 's network of trade agreements and 
took place shortly after the conclusion of the negotiations between M ERCOSUR and the European 
Union. Brazil estimates that at the end of the implementation period, 97% of EFTA's exports would 
be duty -free or partially liberalized in MERCOSUR, with an equivalent figure of 98% to 99% of 
MERCOSUR 's exports to the EFTA market, depending on the importing country. The agreement also 
includes provisions on services, investments, government procurement and intellectual property.  As 
of July 2022,  the agreement was undergoing formal and legal revision before the parties could send 
it for signature . 
3.48.   Negotiations for a FTA between MERCOSUR and Singapore were launched in 2018 and were 
substantially concluded in July 2022. The agreement covers trade in goods and services, as well as 
investments between the parties. Furthermore, it has comm itments on modern topics such as trade 
facilitation, intellectual property, government procurement and electronic commerce.  
3.49.   In 2018, MERCOSUR launched negotiations for free trade agreements with Canada and the 
Republic of Korea. The last in person negotiat ion round between MERCOSUR and Canada was held 
in July 2019, in Ottawa, and achieved important progress in several negotiating groups , followed by 
further progress during a virtual round in 2020 . The last round between MERCOSUR and the 
Republic  of Korea wa s held in September 2021, virtually. In both negotiating processes, experts 
from different technical groups have continued the discussions through virtual meetings.  
3.50.   MERCOSUR and the Republic of Lebanon held their first round of negotiations for an FTA 
between the parties in 2019, in Beirut. In addition, MERCOSUR and Lebanon met v irtually  in 2020, 
to discuss regulatory aspects and acc ess to the goods market, in addition to defining the next steps 
in the negotiation.  
3.51.   In 2020, Brazil approved the negotiating m andate for free trade agreements with Indonesia 
and Viet  Nam. The exploratory dialogue between MERCOSUR and Viet  Nam was conclude d in 2020 
and, as of July 2022, negotiations were not yet launched. In December 2021, MERCOSUR and 
Indonesia announced the laun ching of negotiations for a Comprehensive Economic Partnership 
Agreement, including trade in goods and services, investment, and a wide range of non -tariff 
matters. The first round of negotiation is expected to take place in the second half of 2022.  
3.52.   In 2017, the Free Trade Agreement between MERCOSUR and Egypt entered into force. Under 
the agreement, MERCOSUR granted full tariff elimination on 10,166 eight -digit tariff lines (99% of 
total tariff lines). The tariff dismantling period will end in September 2026. The Agreement also has 
an evolutionary clause on the possibility of future understandings for opening negotiations on market 
access on trade in services and investments.  
3.53.   In 2019, MERCOSUR and India resumed dialogue on a possible expansion of the Pref erential 
Trade Agreement signed in 2004 and in force since 2009. Moreover, MERCOSUR and Israel have 
been working since 2020 on a possible expansion of the FTA signed in 2007.  
3.54.   Before the review period, Brazil and the other MERCOSUR countries ratified a Preferential 
Trade Agreements (PTA) with the Southern  African Customs Union (SACU). MERCOSUR also signed 
an FTA with the Palestine, whose text was approved by the Brazilian Congress in 2018 and is 
currently under analysis in the Presidency of the Republic.  
3.5.3   Global system  of trade  preferences12 
3.55.   Brazil continues to participate in the 1988 Global System of Trade Preferences among 
Developing Countries (GSTP ), and, as from 1991, MERCOSUR began to participate as a bloc, with a 
single list of concessions. MERCOSUR grants preferences to participating countries on some 
 
12 https://www.gov.br/siscomex/pt -br/informacoes/acordos -comerciais/sgpc . WT/TPR/G/ 432 • Brazil  
 
- 24 - 
 
  127 HS2002  tariff headings. These preferences range from 10% to 100% and their scope includes 
agricultural products, fuels, chemical products, hides and skins, ferrous and steel products.  
3.6  Investment  Agreements  
3.56.   During the 1990s , Brazil signed 14 traditional Bilateral Investments Agreements (BITs) but 
the Brazilian National Congress decided not to rat ify them.  
3.57.   Following the rejection of BITs by the National Congress, the Brazilian Government intensified  
work to  define  new guidelines  for further  negotiations  on investment  agreements.  Brazil has focused 
on designing a new model of investment agreement ba sed on thorough review of studies by 
international organizations (UNCTAD and OECD Guidelines), extensive consultations  with the 
Brazilian private sector, and international benchmarking. This process led to the drafting of the 
Cooperation and Facilitation I nvestment Agreement (CFIA), which seeks a balanced  outcome 
combining the promotion of an attractive environment for investors while preserving space for public 
policies. The new Brazilian model sidelines the limitations identified in traditional BITs in fa vour of a 
positive approach comprising institutional cooperation and facilitation of investment flows. This 
model has been used since 2013 . 
3.58.   Brazil has already signed CFIAs with Mozambique  (2015),  Angola  (2015),  Mexico  
(2015),  Malawi  (2015),  Colombia (2015) , Chile (2015), Peru (2016), Ethiopia (2018), 
Suriname (2018), Guiana (2018), UAE (2019), Morocco (2019), Ecuador (2019) and India 
(2020).  Among the first  CFIAs, the agreements with Angola and Mexico are already in force.  
The Cooperation and Facilitation o f Investments Protocol of MERCOSUR (PCFI) was signed in 
2017 and in force as well. Brazil is also engaged in an exploratory dialogue with Saudi Arabia, 
and has concluded, during the review period, negotiations of FTAs with EFTA and Singapore, 
which include  investment chapters inspired by the CFIAs provisions.  
4  TRADE  INSTITUTIONAL  AND REGULATORY  FRAMEWORK  
4.1  Cross -Cutting  Issues  
4.1.1   Implementation  of good  regulatory  practices  
4.1.  It is noteworthy that Brazil has been promoting several efforts to improve the quality and 
transparency of its regulatory process. In 2018, the Office of the Chief of Staff of the Presidency of 
Brazil, along with Regulatory Agencies and sectorial Ministrie s, launched the Guidelines and 
Guidebook for Regulatory Impact Analysis - RIA, providing instructions for the practical 
implementation of RIA by any public administration body and presenting a set of common minimum 
standards for the application of this too l. 
4.2.  In the following year, Laws No. 13,848/2019 (Regulatory Agencies ' Law), and No. 13,874/2019 
(Economic Freedom Act) were enacted, establishing the adoption of RIA, Public Consultations and 
Regulatory Result Assessment (ARR) for Regulatory Agencies and ot her public administration offices. 
At the end of 2020, the Protocol on Transparency, Business and Good Regulatory Practices with the 
United States was signed, and it entered into force in June 2022. The Protocol has an annex 
dedicated to binding commitment s on good regulatory practices, expanding the requirements of RIA  
and social participation and bringing innovations regarding the institution of regulatory oversight, 
regulatory agenda and annual report of the regulatory impact caused by the regulations is sued. A 
Presidential Decree aimed at supporting the implementation of the Protocol is on its final drafting 
stage.  
4.3.  In 2021, Law No. 14,195/2021 (Business Environment Law) was approved, which brought 
advances in economic legislation in the context of the bu siness environment.  
4.4.  It is also worth mentioning the Decree No. 10,139/2019 (Revision Decree), which established 
regulatory review and consolidation procedures, encompassing all current regulations and instituting 
the regular review of the regulatory stock for the first year of each presidential term. The 
concentrated effort reached 79 public bodies, including ministries, bodies linked to the 
Presidency  of the Republic, military commands, foundations and autarchies. Altogether, more WT/TPR/G/ 432 • Brazil  
 
- 25 - 
 
  than 80,000  normative act s were identified, of which more than 90% were examined, resulting in 
the revocation of about 42% of the norms dealt with so far.  
4.5.  In June 2022, the OECD Review of Brazil's Regulatory Reform was completed. The Review 
analyzed sectors that create barriers to  competition, such as regulations that create obstacles to the 
entry of firms, inhibit the entry of firms, or restrict activities in professional and network sectors. In 
a complementary way, the review also identified government efforts to develop policies  and tools to 
improve the quality of regulations, such as ex ante assessment of draft regulations, stakeholder 
engagement in rule making, and administrative simplification. Based on its recommendations, action 
plans are being drawn up for the implementatio n of initiatives that bring the country closer to world 
best practices.  
4.1.2   Technical  regulations  and standards  
4.6.  Since 2019, in accordance with the Economic Freedom Rights legislation, the National Institute 
of Metrology, Quality and Technology (INMETRO ) has be en modernizing its regulatory approval 
methods with a view to cutting red tape and simplifying rules. Tacit approval timelines for certain 
INMETRO decisions entered into force on 1  February  2020, as shown in the table below . 
In September 2020, INMETRO also  put in place a three -level risk assessment system for legal 
metrology and compulsory conformity assessment activities.13 In addition, from July 2020, requests 
for revision of technical regulations that depart from international standards may be made through 
a request to INMETRO 's Presidency . It must be highlighted, furthermore, that, on February  2022, 
INMETRO published Ordi nance No. 30, which approved  its new regulatory framework. This ordinance 
sets guidelines for moderniz ing INMETRO's regulatory approach and establishes a transition period 
of five years for its implementation. As of August 2022, INMETRO was planning the ro admap of 
such implementation  (Table 4.1).  
Table 4.1 INMETRO 's tacit approval timelines  
INMETRO 's tacit approval timelines, 2022  
Decision  Maximum period (days)  
Import licence or authorization  30 
Inscription in the register of items  55 
Inscription in the register of supplier's declarations  100 
Pattern approval (measuring instrument prototypes)  150 
4.7.  In accordance with the Agreement on Technical Barriers to Trade (TBT), Brazil has notified to 
the WTO, from January 2017 to May 2022, 1,446 Technical Regulations and Procedures for 
Conformity Assessment, including new regulations, addenda, revisions, corri genda and supplements. 
As a rule, international standards are the basis for the elaboration of technical regulations. 
INMETRO  is the national enquiry point for technical regulations and conformity assessment 
procedures in Brazil. INMETRO also promotes bila teral, regional and multilateral cooperation with 
other WTO  TBT enquiry points, aiming at improving transparency and fostering the exchange 
of information.  
4.8.  From 2017 to 2021, Brazil has intensified its participation in international organizations 
dedicated  to the creation and implementation of standards, such as the Codex Alimentarius, ISO, 
IEC, ITU, the United Nations Committees on the Transportation of Dangerous Goods (SCETDG) and 
on the Classification and Labeling of Chemical Products (SCEGHS), among oth ers, in order to keep 
its regulations aligned with international standards in the related sectors. Brazil has also intensified 
its participation in international harmonization and regulatory convergence initiatives in the area of 
medicines, medical devices  and cosmetics.  
4.9.  Voluntary standardization in Brazil is under the responsibility of the Associação Brasileira de 
Normas Técnicas (ABNT), a private, non -profit entity, founded in 1940. ABNT i s recognized by federal 
law as the only Brazili an National Standard s Body, being responsible for the preparation of Brazilian 
National Standards for all fields of knowledge. ABNT develops Brazilian Standards through 
the coordination of a consensus -based process of standardization and represents Brazil in 
the International  Standards Organizations ISO and IEC as well as in the Regional Standards 
Organizations Pan -American Standar ds Commission ( COPANT ) and MERCOSUR  Association for 
Standardization  (AMN ). ABNT has signed in 1995 Annex 3 of the  TBT Agreement – "code of good 
 
13 INMETRO Ordinances No.  265 of 10  August  2020 and No.  282 of 26  August  2020.  WT/TPR/G/ 432 • Brazil  
 
- 26 - 
 
  practice for the preparation, adoption and application of standards ". Brazilian Technical Standards 
are developed by ABNT's technical committees, where all stakeholders are allowed to contribute and 
to participate in the standardization process. Moreover , ABNT  has established cooperation 
agreements with National Standards Bodies from a variety of countries in the world . 
4.10.   Brazil has also maintained mutual recognition agreements with multilateral bodies such as 
the Bureau International des Poids et Mesures  (BIPM),  Organi zation Internacionale de Métrologie 
Légale  (OIML),  the International Laboratory Accreditation Cooperation (ILAC), the Inter American 
Accreditation Cooperation (IAAC), the International Accreditation Forum (IAF), the American 
Aerospace Quality Group (AAQG), the Program for the Endorsement of Forest Certification 
Schemes  (PEFC) and the Global Partnership for Good Agricultural Practice (Globalgap), and became 
a full party to the OECD decisions on the mutual acceptance of data (MAD) – Good Laborato ry 
Practice  (GLP) on pesticides, their components and related products as well as on industrial 
chemical  products.  
4.11.   Under the framework of MERCOSUR, Brazil has been implementing  Resolution 
GMC No. 45/2017, Decision CMC No. 20/2018 - MERCOSUR Agreement on Good Regulatory 
Practices and Regulatory Coherence - and Decision CMC No. 16/2019 on General Framework on 
Trade Facilitating Initiatives . Brazil has been engaged in harmonizing t echnical regulations , which  
are notified to th e WTO after each MERCOSUR member has carried out domestic consultations, and 
before they are adopted by the bloc in the form of Resolutions.  
4.12.   Bilaterally, Brazil and Argentina concluded, in 2022, negotiations on a Mutual Recognition 
Agreement on Vehicle App roval regarding safety issues. Brazil also has bilateral cooperation 
initiatives on technical regulations with Australia, the Plurinational State of Bolivia , Cabo Verde, 
China, Chile, Colombia, Costa  Rica, Cuba, the Dominican Republic, Ecuador, Germany, Gu atemala, 
France, India, Italy, Japan, Kazakhstan, Lebanon, Mexico, Mozambique, New Zealand, Panama, 
Paraguay, Peru, Portugal, the Republic of Korea, Singapore, South Africa, Spain, Russia n Federation , 
Trinidad and Tobago, T ürkiye , Ukraine, the United Arab Emirates, the United Kingdom, 
the United  States, Uruguay and , Bolivarian Republic of Venezuela . 
4.13.   Regarding measures in response to the COVID -19 pandemic, Brazil has submitted more 
notifications than any other Member of the WTO. Under the TBT Agreement, Braz il has notified 
65 technical regulations and conformity assessment procedures, covering pharmaceutical products, 
medical devices and other medical supplies. Measures adopted by  the Brazilian Health Regulatory 
Agency  (ANVISA )14 include : 
• quick  adoption  of extraordinary  and temporary  procedures  for handling  the public  health  
emergency  related  to COVID -19, to streamline  or simplify  technical  regulations,  
conformity  assessment  procedures  and related  procedures  and, thus, ensure  the supply  
of safe essential  products ; 
• temporary  flexibility  of certain  regulations  to ensure  access  to essential  medical  
products ; and 
• adoption  of closer  control  strategies  to identify  shortages  of essential  medicines  and 
medical  devices  and extraordinary  regulatory  pathways  to enhance production  of and 
access  to such products.  
 
14 Further  details  on ANVISA 's measures  in response  to the pandemics  are available  in the following  
links, in Portuguese:  https://www.gov.br/anvisa/pt -br/assuntos/paf/coronavirus ; and 
https://www.gov.br/anvisa/pt -br/centraisdeconteudo/publicacoes/gestao/relatorio -sobre -os-500-dias-de-
acoes -da-anvisa -no-enfrentamento -a-covid-19. 
 WT/TPR/G/ 432 • Brazil  
 
- 27 - 
 
  4.14.   Due to travel  restrictions  imposed  by the pandemics  and to challenges  related  to medical  
products  marketing  authorization,  specifically,  ANVISA  adopted extraordinary  measures  in order  to 
issue Good Manufacturing  Practices  (GMP)  certification  for medical  products  and other  regulatory  
flexibilities,  such as: 
• issuing  extraordinary  and temporary  GMP Certificate s with shorter  validity  instead  of 
ordinar ies GMP Certificate s; 
• issuing  emergency  use authorizations , emergency  importation  authorizations  or 
temporary  registration s instead  of ordinary  product  registration s; 
• prioritization  of registration  of medical  devices  required  for the clinical  management  of 
COVID -19 (for instance,  oxygen  therapy,  pulse  oximeters,  thermometers  infusion  and 
suction  pumps,  X-ray, ultrasound,  CT scanners,  in vitro diagnostics  as well as personal  
protective  equipment);  
• shifting  from on-site inspection  only to remote  inspection,  where  applicable;  
• accepting  conformity  assessment  results  of specific  health  authorities  that 
fulfilled  minimum  criteria;  
• enhancing  international  regulatory  cooperation  to accelerate  approval  of vaccines  and 
other  essential  medical  goods;  and 
• maintaining  relevant  international  standards  as basis for technical  regulations  on select ed 
essential  medical  goods,  as well as relevant  international  standards,  guides  or 
recommendations  as basis for conformity  assessment  procedures  associated  with those  
measures.  
4.1.3   Trade  facilitation  
4.15.   During the review period, Brazil continued streamlining foreign trade formalities and 
upgrading its Integrated Foreign Trade System (SISCOMEX) under its Single Window 
Programme  (Programa Portal Único de Comércio  Exterior). Launched in 2014 and jointly coordinated 
by the Economy Ministry's Secretariat of Foreign Trade (SECEX) and Special Secretariat of Federal 
Revenue of Brazil  (RFB), the programme is at the cent er of Brazilian trade facilitation policies and 
aims to reduce bureaucracy. It will allow companies to present information only once, reducing time 
and expenses to both exporters and importers.  
4.16.   The Portal Único Program encompasses a series of solutions to be gradually implemented. It 
is based on the single window provisions of the TFA. These provisions were internalized in the 
Brazilian legislation through the Presidential Decree No. 8.229/2014, which amended 
Decree  No. 660/1992. Law 12.195/2021 provided for the obligation of a Single Window for trade.  
4.17.   Following the publication of GECEX Resolution No. 378 /2022, the Portal Único website 
(www.siscomex.gov.br ), which already provided access to information regarding trade -related 
legislation, requirements, documents, for ms and systems, has incorporated Brazil 's national foreign  
trade enquiry point, Comex Responde  (available in Portuguese, English and Spanish ). 
4.18.   The tool for the submission of digital documents by importers and exporters was implemented 
in 2015, under the Portal Único system , and i t is being used in almost all licensing and customs 
release procedures, reducing time and costs, particularly to traders located away from the 
country's  borders. However, there  are limits to the use of this solution, because some in ternational 
agreements require paper documents to be retained by agencies.  
4.19.   The New Export Process was fully implemented in 2018, allowing simplification that provides 
greater efficiency and cost reduction for operators. Th is includes a reduced number of do cuments 
required to conclude foreign trade operations via Single Export Declaration (DUE); the integration 
of the DUE with national eInvoice system; the new cargo control and customs transit system; 
comprehensive licensing for more th an one export; impleme ntation of a posteriori  administrative WT/TPR/G/ 432 • Brazil  
 
- 28 - 
 
  controls; adoption of parallel instead of sequential procedures. As a result, the average export time 
was reduced from 13 to 5 days, leading to savings of US D 14 billion annually for the private sector.  
4.20.   The New Import  Process (NIP) has been implemented since 2018 and should be in full effect 
by the end of 2025. The NIP is already capable of covering up to 40% of the total amount imported 
in Brazil. Although the NIP is still under development, it has already had a major  impact on reducing 
import time. The average time to import in Brazil dropped from 17 days to 9 days, representing 
annual savings of US D 10 billion annually for the private sector . 
4.21.   During the review period, Brazil also continued making improvements to its authorized 
economic operator (AEO) programme, gradually supplementing the benefits15 offered to participants 
by the RFB with advantages conceded by other administrative bodies intervening 
through  SISCOMEX.16 In 2021, the RFB -managed AEO Program added the p articipation of SECEX 
and initiatives are under way for the inclusion of the  Secretariat of Animal and Plant Health and 
Inspection (SDA), the National Agency for Civil Aviation (ANAC), the Brazilian Health Regulatory 
Agency  (ANVISA), the Brazilian Army, an d the National Institute of Metrology, Quality and 
Technology  (INMETRO).17 
4.22.   At end -February 2022, the AEO  programme comprised 490 certified economic operators 
accounting for 25.79% of total trade volume and 26.54% of import and export declarations 
registered in that month. AEOs benefitted from significantly lower customs clearance times than 
non-AEO traders. Besides being party to a MERCOSUR agreement for the mutual recognition of 
AEO programmes, Brazil has signed bilateral agreements on the matter with the Plurinational State 
of Bolivia , China, Colombia, Mexico, Peru, Uruguay, Argentina, Chile, Colombia, Costa Rica, 
Guatemala, Paraguay, Peru, Dominican Republic and Uruguay. Exploratory talks on the mutual 
recognition of AEO  programmes are also underway at MERCOSUR -Pacific Alliance level,  and an 
agreement with the United  States is to be signed in September 2022.  
4.23.   In the context of the AEO Program me, SECEX implemented, in 2021, its Integrated AEO, 
which seeks to broaden the AEO Program me positive effects. Companies previously certified by th e 
Special Secretariat of the Federal Revenue of Brazil (RFB) as Authorized Economic Operators can 
apply to join the SECEX Integrated AEO. Benefits offered by the SECEX Integrated AEO allows low 
risk private companies to obtain  reduction of documentation an d information submitted to grant the 
suspension drawback special regime, as well as prioritized analysis of applications for this regime 
and its exemption version. Besides that, certified companies have an exclusive point of contact 
at SECEX to address  operational difficulties  related to the suspension and exemption drawback 
special regimes more rapidly.  
4.24.   In 2020, Brazil published its first Time Release Study (TRS) carried out in accordance with 
the World Customs Organization's methodology, based on 262,787 import transactions (by air, sea 
and road) registered between June and July 2019.18 The TRS found that, on average, it took 7.4  days 
from the goods' arrival until their effective exit from the area under customs control. The average 
release times for consi gnments arriving by air, sea and road were 5.8 days, 9.7 days and 2.3  days, 
respectively.19 The TRS makes a number of recommendations, including: standardization of 
procedures and timeframes across administrative bodies' respective nation -wide networks; 
minimizing risk assessment backlogs; creation of a nation -wide mechanism for prompt payment of 
trade -related taxes and licensing fees; separating the cargo's physical flow from its documentation 
and financial flows; and the replacement of sequential work flo ws by parallel ones.  
4.25.   During the review period, Brazil took active part in the Committee on Trade Facilitation, 
including by: notifying the definitive implementation date for its three category  B commitments 
 
15 An overview of AEO benefits can be viewed at: https://www .gov.br/receitafederal/pt -
br/assuntos/aduana -e-comercio -exterior/importacao -e-exportacao/oea/beneficios -do-programa -oea. 
16 RFB Ordinance No. 2,384/2017 and RFB Normative Instruction No. 1,985/2020.  
17 Viewed  at: https://www.gov.br/receitafederal/pt -br/assuntos/aduana -e-comercio -
exterior/importacao -e-exportacao/oea/beneficios -do-programa -oea/oea -integrado. 
18 Viewed at: https://www.gov.br/receitafederal/pt -br/acesso -a-informacao/dados -
abertos/resultados/aduana/estudos -e-analises/time -release -study -brasil . 
19 The data on imports by road were collected at Brazil's two main points of entry and represented 
approximately 46% of  the total volume  imported by this mode of transport.  WT/TPR/G/ 432 • Brazil  
 
- 29 - 
 
  (31 December 2019); making six experience -sharing  presentations; and tabling a proposal on 
customs cooperation through electronic exchange of information and data.20 
4.26.   Another important provision of the TFA implemented by Brazil in 2016 was the National 
Committee  on Trade  Facilitation  (CONFAC).  It was rest ructured by Presidential 
Decree  No. 10.373 /2020 and had its internal rules approved by GECEX Resolution No.  377/2022. 
The Committee remains responsible for guiding, coordinating, harmonizing and supervising the 
activities of federal agencies related to for eign trade operations, bearing in mind, among  others,  the 
implementation  of Brazil's  commitments  under  the TFA. The importance of private sector 
participation has been highlighted by the maintenance of a Cooperation Subcommittee in which 
public and private  stakeholders can work together to improve trade facilitation in Brazil.  
4.27.   In 2020, Brazil and the United States signed a Protocol on Trade Rules and Transparency. 
Negotiated under the Brazil -U.S. Commission on Economic and Trade Relations (ATEC), the 
agreem ent includes an annex on Trade Facilitation and Customs Administration. The Protocol, which 
has entered into force in June 2022,  includes relevant provisions on advance rulings, penalties, use 
of technology in import, export and transit controls, and on the mutual recognition of authorized 
economic operators.  
4.1.4   Sanitary  and phytosanitary  issues  
4.28.   Brazil is committed to animal and plant health and food safety in accordance with the 
WTO SPS agreement. All measures aiming at protecting human or animal health fro m food -borne 
risks, human health from animal or plant carried diseases and animals and plants from pests or 
diseases are regularly notified to the Committee on Sanitary and Phytosanitary 
Measures  – SPS Committee/WTO  and made  available  on the internet.  The relevant  sanitary  or 
phytosanitary  events are  also immediately  reported  to the competent  international  organizations  
and authorities  of trade partners. The Brazilian Enquiry Points are the Ministry of Agriculture, 
Livestock and Food Supply and the National Health Surveillance Agency, which work in a coordinated 
manner. Sanitary and phytosanitary measures  are normally  based  on standards,  guidelines  or 
recommendations  produced  by Codex  Alimentarius, OIE, and IPPC.  
4.29.   Since the creation of the WTO, Brazil has signed more than 30 bilateral agreements 
on sanitary and phytosanitary matters, based on SPS Agreement principles , besides several regional 
agreements . The main purpose of these agreem ents is to identify common rules, simplify import 
controls,  provide greater predictability to the parties by establishing timeframes,  harmonize 
certification requirements, and facilitate bilateral trade and the entry of selected products. The 
importance of  such agreements for Brazilian exporters and their trade partners can be measured by 
the sustainable  increase in  production and in  volume of trade exports with more than one hundred 
countries and the integration of medium and small -sized agricultural produ cers into the international 
market in sectors as honeybee, organic products, fresh fruits and flowers.  
4.30.   However, the full potential of Brazil's agribusiness has yet to be developed, mainly due to the 
lack of recognition of equivalence and regionalization  by some countries, as stipulated by articles  4 
and 6 of the SPS Agreement.  Another significant concern is that not all countries have been properly 
taking into account the work of the Codex Alimentarius on the harmonization of Maximum Residue 
Levels (MRLs), in order to base their policies on solid scientific principles and consider less 
trade -restrictive measures.  
4.1.5   Competition  policy  
4.31.   Since  the entry  into force of the Brazilian  competition  law (Law No.  12,529/ 2011), in 2012,  
the Brazilian Competition Policy System (SBDC ) went through significant changes. Consistent with 
international best practices, the creation of a single autonomous competition agency and the 
introduction of an ex ante  merger control policy led to significa nt efficiencies and modernized 
antitrust enforcement in Brazil. They also allowed the Brazilian antitrust authority, the Administrative 
Council for Economic Defense (CADE ), to focus more on relevant precedent, predictability and legal 
 
20 WTO documents G/TFA/N/BRA/1/Add.1 of 14 March 2018 and G/TFA/W/51/Rev.1 
of 11 November  2021. The experience -sharing presentations made by Brazil can be viewed at: 
https://tfadatabase.org/members/brazil/experience -sharing . WT/TPR/G/ 432 • Brazil  
 
- 30 - 
 
  certainty, and grante d it the tools and framework to reflect carefully on competition cases and 
provide coherent consistent and robust legal precedent in Brazil.  
4.32.   The ex ante merger control policy has been  consolidated  since then , engendering remarkable 
improvements in CADE 's assessment of mergers , with the efficient use of fast -track case analysis, 
when cases are considered less -threatening from a competition perspective . The decision -making 
process regarding mergers created important institutional efficiencies. As the majority  of merger 
cases are concentrated in the General Superintendence, CADE's Administrative Tribunal is able to 
focus on the challenged and complex merger cases, in cartels and other anticompetitive conducts 
cases and in its decision -making and normative compe tences. In other words, this institutional 
configuration allows the Tribunal to focus its resources on those cases that would affect most 
significantly the Brazilian market and the Brazilian consumers.  
4.33.   The efficiencies from the changes in the merger contro l policy  and CADE's organizational 
set-up have benefitted developments and achievements in the investigation and assessment  of 
anti-competitive  conducts.  As a result, CADE has been able to efficiently modernize its cartel 
enforcement activities by signific antly expanding and developing its leniency program, increasing 
the use of investigation tools and intelligence techniques and enhancing inter -institutional 
cooperation with other relevant authorities.  
4.34.   As far as the Brazilian leniency program is concerned,  it has consistently evolved since 
the 2012 Competition Reform and is now one of the most important aspects for cartel enforcement, 
driving interest from other jurisdictions around the world. In 2021, for example, CADE received 
five first-in leniency appli cations, 15 addendums to leniency agreements and 17 applications  for 
cease and desist agreements. Leniency a greements are only available for the first whistleblower to 
appear before the antitrust authority. Thus, providing incentives for cartel participant s to arrive first 
and ensure they receive the agreements ' benefits, which may consist of legal immunity in the 
administrative and criminal legal spheres or a reduction in one to two -thirds of the fines applicable 
for latecomers.  
4.35.   To improve the efficiency o f this Program, CADE has also developed ancillary instruments to 
the leniency agreement. Cease and desist a greements (TCCs, in their acronym in Portuguese) are 
agreements available for latecomers, wh ich are not entitled to sign a leniency a greement. 
Althou gh TCCs do not provide for full legal immunity to its signatories, in terms of administrative 
and criminal prosecution, they enable a significant reduction - of one to two -thirds - in the applicable 
fines for cartel offenses. The dimension of such reductio n will dep end on different variables, such as 
the order of demanding to sign the agreement with CADE (the sooner the request to sign the 
agreement, the highest will be t he discount given to the cartel 's participant), the stage of the 
procedures on which ag reements are signed, the quality of the new evidence  provided by the cartel 
member, among o ther variables. In this way, the  TCC program was also implemented to create an 
incentive for the cartel member to come as soon as possible to CADE to receive a bigge r discount 
on its fines.  
4.36.   The efficiency provided by this legal instrument relies on strengthening the evidence available 
for antitrust authorities to prosecute the case. Therefore, preventing that antitrust rulings in the 
administrative legal sphere are br ought to court and, eventually, reversed.  
4.37.   Aside from the leniency and TCC p rograms, the authority has also develop ed the so -called 
leniency plus p rogram, which enables latecomers in a first cartel investigation to denounce other 
cartels about which the ant itrust authority does not have previous knowledge. In these situations, 
CADE provides to the pa rticipant of the leniency plus p rogram the reduction of one -third of the fines 
applicable in the first cartel invest igation, plus the signature of leniency a greements in the new 
offenses brought to light by the applicant.  
4.38.   Inter-institutional arrangements have also considerably increased in the last years. As of 
July 2022, CADE has technical cooperation agreements with all State Prosecution Services i n Brazil. 
During the review period, CADE concluded technical cooperation agreements with several institutions 
and regulatory agencies, namely: National Agency for Data Protection (ANPD), National 
Telecommunications Agency (ANATEL), National Health Agency ( ANS), National Agency for 
Waterway Transportation (ANTAQ), National Civil Aviation Agency (ANAC), National Cinema 
Agency  (ANCINE), National Health Regulatory Agency (ANVISA), National Petroleum Agency (ANP), WT/TPR/G/ 432 • Brazil  
 
- 31 - 
 
  National Land Transportation Agency (ANTT), Nati onal Institute of Industrial Property (INPI) and the 
Securities and Exchange Commission of Brazil (CVM). CADE also signed with the Central Bank of 
Brazil in 2018 the Normative Joint Act No. 121, which establishes the procedures  to be followed by 
the Centra l Bank and CADE in merger reviews and in the analysis of anticompetitive conducts in the 
financial market. The norm provides for the sharing of information between the two entities in these 
cases and for periodic meetings.  
4.39.   Finally, as a common widespread institutional policy that gained relevance with the COVID -19 
pandemic, CADE has endeavored to improve  its digital tools and launched new ones. It has been 
continuously improving its Screening Project or "The Brain Project ", as nationally known, in line with 
international best practices in cartel investigation. The project is a software interface that combines 
data, data mining instruments and statistical tests with the purpose of detecting cartels. It is a 
powerful tool for identifying implausibl e facts and suspicious behavioral patterns. The online merger 
submission and the platform for leniency agreements ( Clique Denúncia ), which were already in 
place, have been fundamental in the new context brought by the pandemic as they avoid personal 
contac t. The Case Law Search Tool  and the Market Data Platfo rm (PIM) were launched and  have 
been important instruments for competition enforcement in Brazil. The Brazilian Competition 
Authority had to adapt considerably its regular operations  in the context of C OVID -19 to continue 
performing its activities effectively. It had to rely more heavily, for example, on its screening tools 
for investigati ons and on the leniency program , instead of search and seizure operations.  
4.40.   The internal organization of the General S uperintendence and, in particular, the 
implementation of a Screening Unit responsible for receiving and assessing complaints and leniency 
applications have also considerably contributed to the detection and effective investigation of 
anticompetitive cases,  identifying and prioritizing the most harmful ones.  Regarding cartel detection, 
the General Superintendence activities have been made even more efficient with the implementation 
of an Intelligence Unit, in 2013, in charge of ex officio cartel detection, p articularly on public 
procurement. It acts through partnerships with public institutions that can provide data on public 
procurements in Brazil and through the development of procedures, based on international best 
practices, oriented to apply screens and data-mining in order to identify conducts potentially harmful 
to the economic order. Cade has also recently created a specialized unit for unilateral conduct.22 This 
unit is responsible for receiving and analyzing complaints and investigating these practic es. 
According to the OECD Peer Review of Competition Law and Policy: Brazil (2019)23, there was a 
general perception that combining mergers with unilateral conduct in the same units inevitably 
meant that more resources were in practice devoted to merger re view given the statutory deadlines. 
By creating a specialized unit for unilateral conduct, CADE will redress the balance towards more 
unilateral conduct investigations.  
4.41.   The Brazilian Competition Authority has equally  sought to strengthen the robustness of the 
Brazilian competition policy and maintain its efficiency through its normative guidance and by 
ensuring the predictability of the system. In 2016, CADE published Resolution No. 17, regulating 
cases concerning the  notification  of associative  contracts.  In the same  year, CADE  published  
Resolution  No. 16, establishing  a deadline  of 30 days to complete  the analysis  of fast-track mergers. 
In 2015, CADE published Resolution No. 11, which  implemented  the Electronic Infor mation System 
as the authority's official system for information management. This initiative aims at reducing the 
duration of competition cases, contributing to public transparency and decreasing public expenses. 
Moreover,  all citizens  have online  access  to the public  versions  of CADE's  files and documents. This 
feature is particularly appreciated by companies that have to notify or negotiate cases with 
the authority.  
4.42.   To enhance t ransparency of its activities, s ince 2015, the Brazilian Competitio n Authority has 
released and updated several guidelines as an effort to promote competition enforcement in Brazi l 
through offering better predicta bility about the parameters used in its analysis. Examples of that are 
the Guidelines for the Analysis of Prev ious Consummation of Merger Transactions – Gun 
Jumping  (2015); Guidelines for Competition Compliance Programs (2016); Guidelines on Cease and 
 
21 https://www.bcb.gov.br/conteudo/home -
ptbr/TextosApresentacoes/Ato%20normativo%20conjunto%205_12_2018%20limpa.pdf . 
22 The General Superintendence is subdivided into 11 Genera l Antitrust Analysis Coordinations 
("CGAAs"), the specialized unit for unilateral conduct is CGAA 11.  
23 Available at: https://www.oecd.org/comp etition/oecd -peer-reviews -of-competition -law-and-policy -
brazil -2019.htm . WT/TPR/G/ 432 • Brazil  
 
- 32 - 
 
  Desist Agreements (2016); Guidelines on the Antitrust Leniency Program (2016), Guidelines on 
Dawn Raids (2017), Gu idelines on Remedies (2018) and, more recently, Fighting Cartels in Public 
Procurement – Practical Guidelines for Procurement Officials (2021) and Guidelines on Parameters 
for Submitting Evidence in Leniency Applications (2021).24 
4.43.   International cooperation  is another  important feature of competition law and policy in  Brazil. 
CADE has cooperated with several foreign jurisdictions in the resolution of anticompetitive cases, 
assessment of mergers and a close dialogue in order to make their work converge for th e purpose  
of more effective  competition  enforcement.  CADE's international activities are guided by the logic 
that convergence of investigations, practices and procedures among authorities are essential to 
reduce time, costs and resources required for merge r review and anticompetitive investigations. The 
constant information interchange about assumptions and antitrust practices adopted in different 
jurisdictions lead to improvements and to the progressive development of common standards for 
merger review and  also to the enhancement of investigation techniques on anticompetitive practices.  
4.44.   This exchange is even more important given the constant need to coordinate antitrust 
responses to cross -border mergers that involve different (yet autonomous) antitrust auth orities. The 
ultimate goal is to provide rapid and consistent decisions. Regular communication channels between 
technical units of antitrust authorities enable agencies to reach shared understandings on different 
competition issues, which, in turn, foster legal certainty and predictability, to the benefit of the 
business environment.  
4.45.   International fora tend to set agendas and thus shape important competition policy debates, 
and these discussions affect the behavior of companies and law firms. There has bee n a gradual 
change with regard to CADE 's international cooperation over the last ten years. Nowadays, it is more 
widespread in terms of jurisdictions and matters.  
4.46.   In 2021, international cooperation maintained the dynamics observed in the previous year, 
with a high number of virtual interactions. Despite res trictions arising from the COVID -19 pandemic, 
CADE strengthened its participation in international fora for competition policy and intensified its 
cooperation with other antitrust authorities, with the ex change of information and experiences, as 
well as the performance of joint actions. CADE's main international activities are in the 
following  forums (Table 4.2) : 
Table 4.2 CADE 'S participation in internationa l fora  
Organization for Economic Cooperation and Development (OECD)  
Competition Committee – Associate member since 2019  
Working Group on Competition and Regulation (WP2)  
Working Group on Cooperation and Enforcement (WP3)  
Global Competition Forum  
Latin American and Caribbean Competition Forum (LACCF)  
International Competition Network (ICN)  
Director Group – member since 2005; new mandate 2021 -23 
Working Group on Mergers – co-president in the 2020 -23 mandate  
United Nations Conference for Trade and Development (UNCTAD)  
Intergovernmental Group of Experts on Competition Law and Policy  
Working Group on Croos -Boarder Cartels  
BRICS  
Working Group on Competition and digital markets – coordinator with the Russian Competition Authority  
Working Group on Competition on the automobile market  
Working Group on Competition in the pharmaceutical sector  
4.47.   CADE is also very active in international co -operation in specific instances, especially with the 
competition authorities of the U nited States  (DOJ), Chile and South Africa. The table below shows 
specific instances ' cooperation of CADE with other antitrust authorities in the year 
of 2021 (Table  4.3): 
 
24 English  version of CADE 's Guidelines are available at https://www.gov.br/cade/en/content -
hubs/publica tions/guidelines . WT/TPR/G/ 432 • Brazil  
 
- 33 - 
 
  Table 4.3 CADE 's cooperation with antitrust authorities in 2021  
Cases  Market  Authorities  
Delta/Latam  Aviation  United States  (DOJ)  
Danfoss/Eaton  Hidraulic solutions  United States  (DOJ)  
European Union  
Fiat/Peugeot  Automotive  Argentina  
Tupy/Teksid  Iron Components  United States  (DOJ)  
Hapag -Llyod/Nile Dutch  Container sea transport  South Africa  
Faurecia/Hella  Automobile Components  South Africa  
Discovery/Warner Media  Entertainment  South Africa  
Chile 
Veolia Environment/Suez  Water treatment  Chile 
European Union  
Valmet Oyj/Neles Corporation  Equipment for the Paper and 
Cellulose industry  Chile 
4.48.   To conclude, the latest numbers actually depict a significant improvement in performance 
terms, in spite of the challenging context brought by the pandemic. CADE held in 2021 18 ordinary 
and 1 extraordinary hearing, total ling 73 cases adjudicated last year. In the year  2021, CADE set a 
record number in its history, with 627 mergers submitted for review. Out of these, 611  deals were 
effectively reviewed, with a n average 33 days to assess a case. Considering fast -track cases  only, 
when cases are considered less threatening from a competition perspective, this number falls to 20 
days – one of the shortest worldwide. CADE 's Department of Economic Studies (DEE) publ ished in 
2021 a study to evaluate the impact of its actions. It came to the conclusion that CADE's actions 
(related to cartels, unilateral conduct, and mergers) in 2021 led to savings of BRL 4.2 billion, out of 
which BRL 3.2 billion resulted from activitie s related only to mergers. As for efforts against antitrust 
practices, BRL 610 million were collected in cartel cases and BRL 401 million in unilateral 
conduct  cases.  
4.1.6   Trade  remedies  
4.49.   During the period under review , Brazil made use of trade remedy mechanisms, such as  
anti-dumping and countervailing measures, in conformity with the relevant WTO rules. The number 
of new measures applied each year decreased sharply  and the number of measures in force has 
decreased from 180 in 2017 to 152 in 2021.  
4.50.   In 2019 Brazil's trade remedies investigative authority was renamed Undersecretariat of Trade 
Remedies and Public Interest (SDCOM) and there was a change in the competence to conduct public 
interest assessments, which are now pe rformed by SDCOM and no longer by Technical Group for 
Public Interest Assessment (GTIP).  
4.51.   Public interest assessments seek to assess the existence of elements that exceptionally justify 
the suspension or amendment of definitive measures, when the impact of the imposition of the 
anti-dumping or countervailing measure on economic agents as a whole proves to be potentially 
more harmful, compared  to the positive effects of the application of the measure. To this end, criteria 
such as the impact on the downstream  and upstream supply chain, the availability of substitute 
products in origins not affected by the measure, as well as the structure of the market and 
competition may be observed. In this regard, ordinances were published to promote greater legal 
certainty , transparency and predictability to public and private entities on the elements that can be 
considered in the public interest assessment.  
4.52.   Brazil continued to modernize its legal framework in order to clarify existing rules as well as 
to give more transpar ency and predictability to the conduct of trade remedy investigations. Such 
modernization process encompassed the release of a new decree that regulates administrative 
procedures related to countervailing duty ( CVD) investigations (Decree No. 10 ,839/2021),  as well 
as the enactment of a SECEX ordinance that regulate s some of the procedures provided for in such 
decree and that determine s the information that must be submitted by the petitioner in each 
case (e.g. original investigations, sunset reviews and oth er assessments). The new decree refines 
the rules applied to CVD investigations, harmonizing them with the procedures already applied in 
anti-dumping  investigations. It also incorporates relevant amendments regarding mandatory 
preliminary determinations fo r original CVD investigations and establishes a precise timetable on the 
stages of the investigation, such as probation and manifestation phases.  WT/TPR/G/ 432 • Brazil  
 
- 34 - 
 
  4.53.   Furthermore, during the period under review, Brazil issued  a decree to regulate the 
participation of fragmente d industries in trade remedy investigation : the deadlines for filing petitions 
and supplementary information to petitions and for the analysis of information submitted by 
industries will be determined by the competent investigative authority, within the sc ope of each 
process, considering the specificities of each fragmented sector of national industry and the 
principles of proportionality and reasonableness. Criteria for qualifying the national production of a 
given product as a fragmented industry were als o determined.  
4.54.   The overhaul  of the Brazilian legislation related to trade remedies also comprised the release 
of new rules that provide ( i) procedures for recommending the extension of anti -dumping duties in 
an amount lower than the duty in force; ( ii) proc edures and factors for recommending the extension 
of anti -dumping duties with the immediate suspension of its application; ( iii) procedures applicable 
to the analysis of the export price in sunset reviews and ( iv) the possibility of the optional pre -
applic ation phase in trade remedies investigations. At the end of 2021 Brazil promoted a process of 
consolidation of its legislation, reducing the number of ordinances and simplifying its trade remedies 
legal framework.  
4.55.  It must also be noted that several efforts  were made to facilitate the participation of 
interested parties in trade remedy investigations conducted by Brazil. For instance, Brazil released 
several guides with the objective of disseminating knowledge on matters related to trade remedies 
to the gene ral public.  
4.1.7   Intellectual  property  
4.56.   As part of the efforts to improve the Brazilian Intellectual Property (IP) system, the Brazilian 
Government launched its Nation al IP Strategy (NIPS) in 2021. The strategy aims at reaching an 
effective and balanced national IP system, to be widely known, used and enforced. NIPS is expected 
to promote creativity, investments in innovation , and access to knowledge, contributing to improving 
overall competitiveness of the Brazilian economy as well as the country 's socioeconomic 
development. The s trategy is composed by 210 actions divided in 7 main ax es, to be implemented 
in the next 10 years: (i) IP for competitiveness and development; (ii) Awareness, education and 
capacity building on IP; (iii) Governance and Institutio nal Strengthening; (iv) Legal framework 
modernization; (v) Enforcement and legal certainty; (vi) Intelligence and vision of future; 
(vii) Insertion of Brazil in the IP global system . 
4.57.   NIPS has already shown substantial results since its adoption, such as: r eduction of 80% of 
the patent backlog; elimination of the mandatory participation of ANVISA (the National Health 
Regulatory Agency) in the patent process; creation of tools for the dissemination and 
commercialization of IP; elaboration of materials to tack le IP crimes in digital environment followed  
by enforcing actions to that end; insertion of IP in SMEs and innovation programs; elaboration of a 
proposal for the simplification of regulation on transfer of technology transactions.  
4.58.   Both the designing and im plementation of the strategy bring together public and private 
stakeholders to discuss proposals to improve the Brazilian IP legal framework. The involvement of 
different institutions also aims at increasing transparency and best governance practices by br idging 
technical knowledge and policy aims in order to build and improve IP programs, projects and 
legislation. The coordination of public institutions in partnership with private ones also generates 
intangible results and gains that contribute to the cred ibility and stability of the Brazilian IP system 
in the medium to the long run.  
4.59.   One of the main actors in the Brazilian IP System, the National Institute of Industrial 
Property  (INPI – the Brazilian patent and trademark office) has continued to improve its  services , 
underscoring the relevance attribute d to the protection and enforcement of IP rights, given that 
Brazil pursues  further social and economic development, respecting, at the same time, the balance 
between rights and duties among producers and user s of technology.  
4.60.   The most important effort carried out in recent years by INPI has been to improve its 
productivity. As such, INPI has also developed a number of systems in order to streamline its internal 
processes, eliminate unnecessary bureaucracy and i ncrease the productivity of examiners. For 
instance, it was possible to implement the Industrial Property Automation System (IPAS), 
administered by the World Intellectual Property Organization (WIPO), which, since 2013, has WT/TPR/G/ 432 • Brazil  
 
- 35 - 
 
  brought more consistency to mana gement and has proved to be an important tool for trademark 
examination purposes. This partnership was extended to fillings via The Madrid System, and now is 
on the way to be implemented for industrial designs. A related point to be considered is the const ant 
revision of the normative framework, with procedures and administrative processes under review in 
both patent and trademark fields. INPI is developing a quality management system that will improve 
the conformity of examiners ' decisions. Additionally, t he Institute is working on modern technologies 
to reduce the complexity of the exam. These measures will certainly contribute to further increase 
the scale of exams and to reduce the backlog of trademarks and patent applications.  
4.61.   INPI has also promoted  several actions  to mitigate  the impact  of its patent  backlog, such as 
the Backlog Combat Project that aimed, in two years, to reduce the total of 149,912  patent  
applications filed until 2016 with required examination and pending decision – (at the end of  2021, 
it reached  77% of  reduction, compared to the 80% initially planned ). 
4.62.   New Patent Prosecution Highway (PPH) pilot programs are being negotiated. Together 
with PPH pilot programs, acti ons on patent priority exams were in place. The first one consists of 
transforming the former "priority examination " (restricted to applications in the patent application 
queue awaiting the technical examination) in "priority procedure " (involving all acti vities of the 
patent process – from submission of documentation for filing to the end o f the process  at the INPI) . 
The second action is a pilot project that allows patent applications with technology already available 
on the market and applications with te chnology resulting from public funding to be prioritized.  
4.63.   In conformity with other IP Offices around the world, INPI has also implemented a  Home 
Office program, which makes it possible to carry out patent and trademarks examinations in different 
regional o ffices other than the Headquarters in Rio de Janeiro. In 2022, more than 80% of the 
Trademark Examiners work from home.  
4.64.   Following Brazil 's accession to the Madrid Protocol in 2019, INPI implemented the operational 
requirements to creating a direct way to r eceive international trademark applications and for 
Brazilians to fill their trademarks abroad, contributing for Brazil to be ranked, in 2021, as 
the 14th country as Designated Office and the 36th as Certification Office. Additionally, Brazil is now 
on fin al proceedings to accede to the Hague system for registering industrial designs, and to launch 
a new version of the Industrial Designs Manual.  
4.65.   As for other IP assets, INPI has carried out relevant initiatives towards improving its services, 
such as the imp lementation of a registry of software by electronic means in an automatic and real -
time manner, which is currently in progress; the development of electronic means for recording the 
topography of integrated circuits; the development of a system for the aut omatic generation of 
leaflet of published and letter -patent applications in an automatic manner. In the industrial design 
field, a workforce has been put together to streamline the examination of pending applications, 
bringing this backlog to zero.  
4.66.   In the field of copyright, from the enactment of Law No. 12,853/2013, which amended 
Law No. 9,610/1998 (Copyright Law), the federal government has the competence to enable, 
monitor, and inspect the collective management of copyright. From then on, collective mana gement 
organizations (CMOs) need to be authorized by a federal public administration body and, annually, 
submit information and documents that allow the verification of the regularity of the exercise of their 
activities to guarantee a transparent and effec tive administration.  
4.67.   Currently, this attribution is the responsibility of the National Secretariat for Copyright and 
Intellectual Property (SNDAPI, the  acronym in Portuguese), under the Special Secretariat for Culture 
of the Ministry of Tourism. In additio n to the annual monitoring of the authorized entities, since  2018, 
the SNDAPI has analyzed and granted the application of 14 CMOs, enabling them to collect their 
respective rights.  
4.68.   Concerning the registration of works protected by copyright, the Brazilian federal government 
intensified efforts to centralize and digitize services. In this sense, Decree 10,359/2020 granted 
to SNDAPI the powers to propose and supervise the elaboration and application of rules on the 
activity of registering intellectually prote cted works; to support and guide federal public bodies 
responsible for copyright registration; and to implement and manage the database and information 
of the Brazilian Copyright Registration System. The system is currently under development.  WT/TPR/G/ 432 • Brazil  
 
- 36 - 
 
  4.69.   Regarding the  modernization of the national copyright legislation, in 2019, there was a Public 
Consultation to improve and update the Copyright Law in the face of new forms of distribution and 
consumption of intellectual works in the digital context. A Public Consultation Report w as prepared 
after evaluation of the  contributions received. In 2022, SNDAPI continues to monitor the proposal 
processing process and provide technical support whenever necessary.  
4.70.   Regarding the accession or internalization of international agreements, in July 2022, through 
Message nº 390 , the President of the Republic sent to the National Congress a proposal for accession 
to the Treaty of the World Intellectual Property Organization (WIPO) on Int erpretations and 
Phonograms (WPPT) . 
4.71.   In addition, during the period under review, Brazil adopted measures to implement the 
Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually 
Impaired, or Otherwise Print Disabled (he reinafter, "Marrakech Treaty "), enacted in Brazil through 
Decree No. 9,522/2018. The Marrakech Treaty provides for copyright exceptions to facilitate the 
creation and cross -border exchange of accessible versions of books and other copyrighted works to 
your target audience. In 2020, SN DAPI held a public consultation to gather information and 
suggestions on the proposed Decree to regulate the Treaty. Subsequently, Decree No. 10,882/2021 
regulated the administrative process of recognition of authorized entities, as well as their inspectio n 
and application of sanctions. In order to promote transparency and legal certainty, the SNDAPI 
published a Guide on the application of the Marrakech Treaty and its regulation, aimed at 
beneficiaries, authorization requesting entities, and society in gene ral. 
4.1.8   Micro , Small and Medium -Sized Enterprises (MSMEs)  
4.72.   The current Brazilian Federal Constitution from 1988 states in its Article 179 that the Union, 
the States, the Federal District and the Municipalities will grant to micro and small companies (MSEs ) 
differentiated legal treatment, aiming at encouraging them by simplifying, eliminating or reducing 
by law their administrative, tax, social security and credit obligations.  
4.73.   Moreover, as defined by the Article 146 of the Federal Constitution, the Complem entary Law 
No. 123/2006 addresses the definition and general rules of special and differentia l treatment to 
MSEs. The aforementioned law also provides definition of MSEs, special tax regime and other 
important provisions on legal framework for these enterp rises.  
4.74.   Regarding technical regulation, the National Institute of Metrology, Quality and 
Technology  (INMETRO ) Ordinance No. 425/2016 establishes special and differential treatment to 
micro and small enterprises regarding payments obligations addressed by th e referred ordinance.25 
In this sense, a number of technical regulations established by INMETRO provides  special treatment 
for SMEs on allowing less burdensome conformity assessment procedures.  On the conformity 
assessment procedures, for instance, INMETRO  Ordinance No. 200/2021, which approves general 
requirements for product certification, exempts SMEs from audits in the process of complaints 
treatment . 
4.75.   The Decree N o. 10,411/2020 rules the regulatory impact assessment and establishes the 
procedures, in th e cases where public consultation is mandatory, for public manifestation, as the 
means to send comments and deadlines applied. Although the referred decree does not mention 
explicitly SMEs, they are encompassed by the legislation.  The Decree N o. 10,139/2019 provides for 
the review and consolidation of normative acts, according to the best international practices, which 
affects directly the entire regulatory environment, favoring  SMEs as well, although not mentioning 
them explicitly.  These regulations act to  bring better regulatory practices to the Brazilian legal 
system, which ultimately favors micro and small companies.  
 
25 Available  at http://sistema -sil.inmetro.gov.br/rtac/RTAC002438.pdf . WT/TPR/G/ 432 • Brazil  
 
- 37 - 
 
  4.76.   Complementary Law No. 123/2006 defines , in its Article 3, micro -enterprises and 
small  businesses, as follows:  
• Microenterprise, earns gross revenue equal to or less than BRL 360,000.00; and  
• Small Business , earns gross revenue greater than BRL 360,000.00 and equal to or less 
than BRL 4,800,000.00.  
4.77.   According to the Enterprises Map, 2022, a tool provided by the Ministry of Economy, in Brazil 
there are 18 ,374,022 micro and small businesses, representing 94% of the total 
of 19,617,237 Brazilian companies.  According to Getulio Vargas Foundation (FGV) and  
Sebrae  (2020), micro and small businesses in Brazil employ 51% of total jobs and account for 30% 
of Brazilian GDP.  
4.78.   Data from the Brazilian National Institute of Statistics (IBGE) i ndicate the composition of micro 
and small Brazilian companies by the gende r of workers and entrepreneurs . It is also possible to 
observe the number of employees by economic activity in this segment  (Table 4.4) . 
Table 4.4 Employees in micro and small Brazilian companies  
PNAD Microda ta – 2021 (4Q)  
People +14 years old  Men Women  Total  % 
Women  
Total of people over 14 years old  83,282,000  89,001,000  172,283,000  51.70%  
People over 14 years old in the labor force  60,528,000  47,230,000  107,758,000  43.80%  
People over 14 years old employed  55,065,000  40,682,000  95,747,000  42.50%  
People over 14 years old unemployed  5,463,000  6,547,000  12,010,000  54.50%  
Unemployment rate (%)  9.00%  13.90%  11.10%    
Main Occupation  Men Women  Total  % 
Women  
Private sector Employee  29,207,605  17,730,621  46,938,226  37.80%  
Own business  16,947,925  8,995,757  25,943,682  34.70%  
Public sector employee (inclusive mixed 
capital companies)  4,279,707  6,308,478  10,588,185  59.60%  
Domestic workers  477,307  5,220,044  5,697,351  91.60%  
Employer  2,720,260  1,153,623  3,873,883  29.80%  
Family unpaid worker  716,650  1,202,644  1,919,294  62.70%  
Military of army, navy, aeronautics, military 
police or fire brigade  715,616  71,220  786,836  9.10%  
Total of Enterpreneurs  19,668,185  10,149,380  29,817,565  34.04%  
With enterprise registered (CNPJ)  6,046,062  3,485,983  9,532,045    
Without enterprise registered (CNPJ)  13,622,123  6,663,397  20,285,520    
% Informal  69.30%  65.70%  68.00%    
Employers  Men Women  Total    
With enterprise registered (CNPJ)  2,122,214  1,001,686  3,123,900    
Without enterprise registered (CNPJ)  598,046  151,937  749,983    
% Informal  22.00%  13.20%  19.40%    
Own Business  Men Women  Total    
With enterprise registered (CNPJ)  3,923,848  2,484,297  6,408,145    
Without enterp rise registered (CNPJ)  13,024,077  6,511,460  19,535,537    
% Informal  76.80%  72.40%  75.30%    
Employers by Activity group  Men Women  Total  % 
Women  
Agriculture, livestock, forestry production, 
fisheries and aquaculture  489,990  102,398  592,388  17.30%  
General industry  546,112  329,942  876,055  37.70%  
Construction  780,086  53,257  833,343  6.40%  
Sale, repair of motor vehicles and 
motorcycles  2,007,567  1,200,491  3,208,058  37.40%  
Transport, storage and mail  436,554  39,860  476,415  8.40%  
Accommodation and food  514,070  439,390  953,460  46.10%  
Information, communication and financial, 
real estate, professional and administrative 
activities  1,095,095  563,222  1,658,317  34.00%  
Education, human health and social service  229,134  328,648  557,782  58.90%  
Other Services  544,038  579,042  1,123,080  51.60%  
Ill-defined activities  1,460  1,670  3,130  53.30%  
Total  6,644,107  3,637,920  10,282,028  35.38%  WT/TPR/G/ 432 • Brazil  
 
- 38 - 
 
  PNAD Microdata – 2021 (4Q)  
Women in Brazilian economy - statistics  
Group  Million  
women  % of the 
total    
1. Total over 14 years old)  89 100%    
1.1. Outside of the labor force  41.8 46.90%    
1.2. Inside the labor force  47.2 53.10%    
1.2.1. Unemployed  6.5 7.40%    
1.2.2. Employed  40.7 45.70%    
1.2.2.1 Workers (all kind)  30.5 34.30%    
1.2.2.2. Enterpreneurs  10.1 11.40%    
1.2.2.2.1. Informals  6.7 7.50%    
1.2.2.2.2. Formals  3.5 3.90%    
4.79.   The Ministry of Economy 's Special Secretariat for Foreign Trade and International 
Affairs  (SECINT) has an institutional framework aimed at supporting MSMEs willing to export, namely 
the PNCE (National Plan for Exporting Culture). It promotes concerted actions through a network of 
national and state level institutions to help MSMEs trade overseas. The PNCE digi tal platform 
provides Brazilian enterprises with an automatically generated business assessment and a list of 
recommended actions to be implemented by these enterprises that will support them on their way 
to exporting.  
4.80.   Another program is Learning how to Export ( Aprendendo a Exportar ), which is a virtual 
collection guide devoted to relevant issues on exporting processes and operations. Its approach 
allows people from different backgrounds , regardless of their previous knowledge in international 
trade, to u nderstand the process from the very first steps of internationalization to actually selling 
overseas. It is worth mentioning that this tool was designed not only to support MSMEs willing to 
export, but also to disseminate the exporting culture countrywide.  
4.81.   Moreover, the Brazilian government is making efforts towards the implementation of a digital 
platform on trade -related services, called BRAEXP, in partnership with the British government, under 
the Trade Facilitation Programme.  
4.82.   BRAEXP is design ed to be a marketplace that connects different providers and their systems, 
in which MSMEs will be able to do an export maturity assessment and find a wide range of export 
services to attend their needs, from management skills courses and market research to financing , 
insurance and logistics. The project is pioneer in Latin America and is grounded in the concept of 
"Integrated Services for MSMEs in International Trade" (ISMIT), that is the digitization and 
integration of all services to enable an export.  
4.83.   This initiati ve is coordinated by the Ministry of Economy and counts on the participation of 
five other national institutions: the Ministry of Foreign Affairs, the Brazilian Trade and Investment 
Promotion Agency (Apex), the Brazilian  Micro and  Small  Business Support  Service (Sebrae), the 
Brazilian National Confederation of Industry (CNI) and the Brazilian Confederation of Agriculture and 
Livestock ( CNA).  
4.84.   The Brazilian and British governments have an important partnership under the Trade 
Facilitation Programme to promote  inclusive and sustainable economic growth in Brazil through the 
internationalization of the country 's MSMEs. The cooperation includes the creation of BRAEXP.  
4.85.   Moreover, under the Brazil -United States Commercial Dialogue, the two countries are working 
to promote cooperation on trade facilitation for MSMEs, including the exchange of information and 
best practices and the engagement of relevant private sector actors in such initiatives.  
4.86.   Regarding RTAs, t here are chapters dedicated to supporting MSMEs in cross-border trade in 
the Brazil -Chile Free Trade Agreement, in force since January 2022, and in the texts of the 
agreements in principle concluded between M ERCOSUR  and the European Union, in June 2019, 
and MERCOSUR  and Singapore, in July 2022. Provisions of these chapters are mainly focused on 
facilitating access to trade -related information such as rates of customs duties, regulations and 
procedures applied to import, export and transit, among others. Additionally, there are commitments 
on cooperation and  exchange of information with a view to enhancing the ability of MSMEs to benefit 
from opportunities created by such agreements . WT/TPR/G/ 432 • Brazil  
 
- 39 - 
 
  4.2  Sectoral  Issues  
4.2.1   Industry  
4.87.   According to the Brazilian National Institute of Statistics (IBGE), taking into consideration the 
System of Quarterly National Accounts, from 2018 to 2021, the industrial sector performance in 
Brazil was impacted by various developments over the review period.  In 2018, the industrial sector 
rose 0.7%, while GDP as a whole rose 1.8%. Although the GDP in tha t year was the highest 
since 2013, industry did not perform well, and the highlight was public utilities. Industries accounted 
for 21.6% of GDP, including mining and quarrying industry (3.0%), manufacturing industry (11.3%), 
public utilities (2.8%) and con struction (4.5%). From the perspective of expenditure, the 
components of the Gross Fixed Capital Formation (GFCF) were construction (47.0%), machinery and 
equipment (38.0%) and others (14.0%). The investment rate reached 15.1%, and the savings rate 
was 14. 5%. 
4.88.   In 2019, industry once again performed poorly, decreasing 0.7%, although the GDP increased 
by 1.2%. The industrial sector that year accounted for 20.9% of GDP, as follows: mining and 
quarrying industry (3.0%), manufacturing industry (11.0%), public uti lities (3.2) and 
construction  (3.7%). The GFCF comprised construction (44.0%), machinery and equipment (40%) 
and others (16.0%) . The investment rate was 15.5%, and the savings rate was 12.2%.  
4.89.   In 2020, industry fell by 3.5%, in line with the GDP ( -4.1%). Th e industrial sector accounted 
for 20.4% of GDP, as follows: mining and quarrying industry (2.9%), manufacturing 
industry  (11.3%), public utilities (2.9%) and construction (3.3%). The GFCF comprised construction 
(42.0%), machinery and equipment (42.0%) and others (15.0%). The investment rate was 16.4%, 
and the savings rate was 15.0%. The performance that year was affected by the enforcements of 
lockdowns in the country to the outbreak of the COVID -19 pandemic, which disrupted industrial 
productive chains. Th e industrial highlights were food and pharmaceutical goods.  
4.90.   In 2021, industry rose 4.5%, contributing the recovery of GDP (4.6%). The industrial sector 
accounted for  22.2% of GDP, covering mining and quarrying industry (5.5%), manufacturing 
industry (11.3% ), public utilities (2.7%) and construction (2.6%). The GFCF comprised 
construction  (38.8%), machinery and equipment (48.0%) and others (13.2%) The investment rate 
was 19.2%, and the savings rate was 17.4%. That year represented an upturn for the industria l 
sector; however, its performance was affected by other challenges , such as rising inflation, the 
increase of the benchmark interest rate, disruption  in industrial supplies  chains , and rising cost of 
electricity and fuel for industry.  
4.2.2   Agriculture  
4.91.   Brazil's  long-standing agribusiness competitiveness and the trend of its production and 
exports have been supported by sustained investments in agricultural research, consolidating the 
country's leadership as a major agricultural producer and exporter. In 2021, ag ribusiness was 
responsible for US D 120.5 billion in exports that represented 43% of Brazil's total exports.  Brazilian  
participation  in world  trade in the sector  is 6.6%. Brazil  is the world 's main exporter  of soybeans, 
poultry meat, bovine meat, sugar and coffee, and the second main exporter of corn and cotton.  
4.92.   Brazilian  grain production  in 2021-22 will probably  reach  272.5 million ton nes, 29% higher 
than in 2016 -17, in spite of adverse weather conditions in some important agricultural states.  
4.93.   Brazilian  agricultural policy follows a market -oriented approach, privileging rural credit and 
risk management based on private rural insurance. As per WTO definition, Brazil has not provided 
market price support (MPS) to agricultural products between the last revi ew and 
agricultural  year 2019/2020.  
4.94.   According to the OECD Producer Support Estimates (PSE), Brazil is one of the countries that 
provide the least subsidies to agricultural producers, well below the OECD average.  
4.95.   The main sources of agricultural financing h ave continued to be resources from demand 
deposits and rural savings compulsorily destined for rural credit, resources from financial institutions, 
freely allocated in rural credit at free interest rates, and from Agribusiness Credit Bills (LCA) directed WT/TPR/G/ 432 • Brazil  
 
- 40 - 
 
  to rural credit and credit lines managed by the National Economic and Social Development 
Bank (BNDES), as well as the "Constitutional Funds" aimed at reducing regional inequalities and 
promoting social and economic development through the financing of agric ulture, agro -industry and 
other sectors, in addition to infrastructure, innovation and technology. These funds are targeted to 
the North, Northeast and Center -West regions (FNO, FNE and FCO).  
4.96.   The share of mandatory resources devoted to rural credit decreas ed from 34% to 25% of 
demand deposits, and from 74% to 59% of rural savings since 2017. In addition, since June 2015, 
a fraction of the balance of Agribusiness Credit Bills (LCA), which are fixed income securities backed 
credit transactions linked to agrib usiness, are directed to rural credit. Since 2016, 35% of the 
balance of the funds raised by this financial instrument must be allocated to rural credit at no cost 
for the National Treasury.  
4.97.   The Government adopts national policies aimed at promoting the pr oduction of food by small 
farmers through public purchase programs carried out at market prices. Through the Feed Brazil 
Program ( Programa Alimenta Brasil , PAB), which replaced the Food Acquisition Program ( Programa 
de Aquisição de Alimentos , PAA), the Gov ernment buys food produced by family farmers and 
distributes it to social organizations that serve individuals and families in situation of food and 
nutrition insecurity. The new Program guarantees food security for both producers and consumers 
and strengt hens local and regional commercial networks. Compared to the former PAA, the PAB has 
expanded the annual limits of amounts paid to families for the purchase of food. In the last 10 years, 
the Program has invested more than BRL 5 billion. In 2020, as a stra tegy to face the COVID -19 
pandemic, the Program invested BRL 700 million, which guaranteed a market for farmers facing the 
closure of their marketing  channels due to social isolation, in addition to guaranteeing a flow of food 
donations to social assistance entities. Another important public purchase program, the National 
School Feeding Program, in turn, encourages the purchase of food from family farm s for use 
in school  meals.  
4.98.   The Cisterns Program ( Programa Cisternas ) is part of a context of promoting climate 
adaptation actions and improving the quality of life of rural populations, with a high incidence in the 
Brazilian semi -arid territory. Law No. 12 ,873/2013 and Decree No. 9,606/2018 represent 
innovations in the process of implementing social technologies for access to water that have been 
supported within a strategy of universal access to water in rural areas for human consumption and 
for agricultur al production, aiming at full human development and food and nutritional security for 
families in situations of social vulnerability.  
4.99.   Since 2003, around 1.3 million cisterns have been delivered by the Federal Government . The 
Program has prove n to be effect ive, since it has significant and  diverse impacts, whether on  the 
health and quality of life of economically vulnerable families , or by enabling the incre ase and 
diversification of agri -food production, the dynamism of the local economy and the generation of 
income for the beneficiary families.  
4.2.3   Services  
4.100.   In 2021, Brazil's exports of goods and services reached a total of US D 317.2 billion. Exports 
of goods increased 34.8% in comparison with 2020, in parallel with exports of services, which 
increased 16.1%, to talling US D 33.2 billion in 2021. In 2021, imports of goods and services 
increased  30.8%  in comparison  with 2020,  reaching  USD 297.9  billion.  Imports  of goods 
expanded  38.9%, whilst imports of services increased only 1.5%, totalling US D 50.3 billion in 202 1. 
4.101.   From 2017 to 2021, exports of services decreased 3.8%, reducing the share of services in 
Brazilian exports from 13.6% to 10.5%. Imports of services contracted 30.9%, reducing 
participation in the composition of Brazilian imports, from 31.2% to 16.9%. Th e deficit in the 
Services Account has declined since 2018, reaching US D 17.1 billion in 2021. The deficit reduction 
resulted  from economic  contraction caused by COVID -19 pandemic  in 2020-21 that weighed  heavily  
on imports  of services. In 2021, the deficit decreased by 18.3%, compared to the previous  year. 
4.102.   Over the past years, Brazil practically maintained its participation in world trade in services, 
ranking  33rd among  world  exporters in 2021. In the same year, Brazil ranked 26th among services 
importing countries.  WT/TPR/G/ 432 • Brazil  
 
- 41 - 
 
  4.103.   The participation of Brazil's services sector in the Brazilian Gross Domestic Product (GDP) 
has decreased in the past years from 63.3% (2017) to 59.4% (2021), while the share of the 
industrial sector increased from 18.2% (2017) to 18.9% (2 021). In 2021, the services sector had a 
share of 47% of all formal jobs in the country, according to data from the Ministry of 
Labor  (CAGED/MTE).  
4.104.   Regarding Brazilian data on foreign trade in services, it is worth noting that the Brazilian 
Integrated System for Foreign Trade in Services and Intangibles (Siscoserv) was discontinued in 
2020. The system's shutdown was part of a broad process of reducing bureaucracy, facilitating, and 
improving the business environment promoted by the federal go vernment, based on the Economic 
Freedom Act (Law No. 13.874/2019). The objective was to provide cost reduction and simplify 
processes for public and private agents.  This measure did not result in loss of information, as 
statistics on foreign trade in servi ces continued to be produced and published by the Central Bank 
of Brazil based on foreign exchange contracts, in accordance with the best practices and 
recommendations of the Balance of Payments and International Investment Position 
Manual  (BPM6  - IMF). 
4.2.4   Renewable  energy  
4.105.   Brazil has one of the world's most renewable energy matrixes. According to the National 
Energy Balance (BEN, EPE 2022), 44.7% of the domestic energy supply comes from renewable 
sources. The diversification of the energy matrix, which is made  possible with the expansion of the 
supply of sugarcane derivatives, wind energy and biodiesel is contributing to the continuation of this 
high share. Renewable sources will continue to account for a large share of supply, mostly due to 
the use of hydropow er, new renewables (wind & solar) and bioenergy, including biofuels.  
4.106.   Only 30% of Brazil's hydroelectric potential has been exploited. The potential for increased 
production of this renewable and affordable energy source is an integral part of the 
country's  long-term strategy for the sector. Widespread access to affordable energy is crucial to 
achieve the goals of sustainable development, to promote social inclusion and poverty reduction; to 
advance national integration and the reduction  of greenhouse  gas emissions;  and to improve  
competitiveness.  Brazil  is, therefore, investing in research and in new technologies to improve the 
generation, transmission26 and distribution of energy.  
4.107.   Brazil also considers bioenergy, including biofuels, an indispensable tool for the expansion 
and diversification of the energy matrix. Nowadays, biomass27 electricity – generated mostly from 
sugarcane processing plants – accounts for about 8% of Brazil's total electricity energy supply. 
By 2031, biomass, wind a nd solar generation are expected to supply 22% of the country's electricity 
energy needs. In the transportation sector, the use of ethanol and biodiesel plays a key role in the 
pursuit of sustainable development, climate change mitigation and energy securi ty. The Brazilian 
case shows that the long term and large scale sustainable production and use of biofuels are possible, 
and Brazil continues to work towards the creation of an international market for biofuels.  
4.108.   The Brazilian Biofuels Policy (RenovaBio), w ith the main objective of promoting the reduction 
of greenhouse gas emissions by expanding the production and use of biofuels in the transport matrix 
is a key development. Brazil is the second largest biofuels producer with a total of 411 kboe/d, just 
behind USA, the worldwide leader with a 665 kboe/d production. It is also important to point out 
that the Brazil 's gasoline has 27% of anhydrous ethanol in its mixture, the higher percentage in 
the world.  
4.2.5   Rail transport  
4.109.   In recent  years,  railway  concessionaires  and authorized operators have  shown  greater  
interest  in investing  to increase available rail transport capacity. Investment proposals are being 
analyzed by the competent areas of the Government regarding early renewals of railway concession 
contracts, new  concessions and authorizations contracts.  
 
26 High-voltage power transmission.  
27 Including Urban  Solid Waste and Biogas.  WT/TPR/G/ 432 • Brazil  
 
- 42 - 
 
  Early renewals of railway concession contracts  
4.110.    Since 2020, early renewals of railway concessions have allowed concessionaires  to operate 
the main Brazilian railways for another 30 years in exchange for  new investments. These include  the 
following railways:  
• Rumo  Malha  Paulista  (2,118  km long), which  is the main railway  to the port of Santos ; 
• Vale Carajás  (996 km long),  which  connects  the port of Itaqui  to the north  of Brazil,  
transporting  mainly  iron and grains; 
• Vale Vitoria  Minas  (894 km long),  which  connects  the port of Vitória  to the iron mine cluster  
around  Belo Horizonte,  transport ing mainly  iron and grains;  and 
• MRS (1,821  km long),  which  connects  the iron mine cluster  around  Belo Horizonte  to 
different  ports in Rio de Janeiro  and São Paulo.  
New concessions  
4.111.   Since 2019, the Ministry of Infrastructure has developed the following important new 
concession projects, with the main objective of generating jobs and stimulate economic growth:  
• Ferrovia  Norte  Sul (EF-151, 1,537  km long) 
• Ferrovia  de Integração  Oeste -Leste , phase  one (FIOL  1, EF 334, 537 km long);  
• Ferrogrão  (EF-170, 965 km long); 
• Ferrovia  de Integração  Oeste -Leste , phase  two (FIOL  2, EF 334, 485 km long);  and 
• Ferrovia  de Integração  do Centro -Oeste , phase  one (FICO  1, EF 354, 383 km long).  
4.112.   The concession process has been concluded for the first two abovementioned projects, while 
the auction of the other three projects is expected to take place until 2024.  
New authorizations  contracts  
4.113.   In 2021, Brazil published the Law No. 14,273, which provides the possibility of exploration 
of railways through authorization contracts, similar to the model allowed by the Rail Staggers Act of 
1980, in the United States. Under this new legal fr amework, any interested private party can request 
the National Land Transport Agency (ANTT) for authorization to operate greenfield railways, upon 
formalization of an adhesion contract.  
4.114.   Under the new open market rail regime, 27 new contracts have been assi gned, and 54  new 
proposals are under analysis. If all proposals are approved, the rail network will be expanded by 
about 20,000 km of new railroads.  
4.2.6   Air transport  
4.115.   Brazil remains among the world 's largest domestic aviation markets and among the countries 
with the most airports. Air transport regulation in Brazil follows a free competition regime based on 
unrestricted arrangement of pricing and routes, according to commercial considerations of 
the market.  
4.116.   Due to the COVID ‑19 pandemic, the number o f scheduled and non -scheduled flights 
dropped , in 2020,  by 50.8%  as compared to 2019. The number of passengers had its first drop 
since 2016, with 52 million domestic and international passengers, representing a 56.4% reduction 
from 2019. In this context, the Brazilian government adopted e mergency measures to mitigate the 
negative economic effects of the crisis on the sector, while seeking to protect the interests  of 
passengers . For example,  a measure was enacted temporarily exempting companies  from fines f or 
delay ing airline ticket reimbursement . Other relevant measures were the Provisional WT/TPR/G/ 432 • Brazil  
 
- 43 - 
 
  Measure  No. 925/2020 (converted into Law No.  14,034/2020), and ANAC Resolution No.  556/2020. 
In spite of these initiatives, the biggest Brazilian airline  companies regis tered losses of 
BRL 20.4 billion in 2020.  
4.117.   The domestic market suffered a drastic reduction in 2020 , having only  406,300 flights 
(-49.4%) and 45.2 million passengers transported ( -52.4%)  in this year . Aircraft 
utilization  (RPK/ASK) registered a n 80% decreas e as compared to 2019. Revenues per Available 
Seat Kilometer (RASK) d ecreased by  53.4% and Costs and Expenses per Available Seat 
Kilometer  (CASK) rose by 40.8%.  
4.118.   The international market was  impacted  even more heavily  by the pandemic, show ing a 
sharper redu ction in both supply and demand, with only 59,900 flights performed ( -58.9%)  and the 
number of passengers transported  was only 6.8 million  (-72%). This resulted in a reduction in 
aircraft utilization (RPK/ASK) from 84% to 65%. Brazilian companies accounted for 34% of the 
international demand (RPK) transported in 2020.  
4.119.   In 2020, 21 .5% of Brazil's imports (by value) and 6 .1% of its exports were moved via air 
cargo compared to 21.3% of imports and 5.9% of exports in 2016. Brazilian companies accounted 
for 20 .3% of total international air cargo transported in the country in 2020, compared to 24% 
in 2015.  
4.120.   Gol, a private -owned air company , maintained the largest share in the domestic passenger 
market, with 16.7 million passengers, followed by Latam and Azu l in 2020. The average domestic 
fare fell by 14.5% in 2020 compared to the previous year in real terms, while the average domestic 
yield (price charged per kilometer flown) decreased by 23.3%. Azul had the highest average yield 
value, at BRL 0.347. Latam a nd Gol presented average yield values of BRL 0.266 and BRL 0.260, 
respectively.  
4.121.   The air transport  market remains concentrated . No state -owned domestic companies 
operate in this segment and no mergers or take -overs have taken  place since 2013, despite the 
suspension of operations of Avianca in May  2019.  Thirteen  Brazilian  companies  provided regular  and 
non-scheduled  public  air transport services, except air taxi, of which three were mainly cargo 
operat ors in 2015 and in 2020. In 2020, a total of 106 companie s provided international air transport 
services, of which 30 operated only in the cargo transportation market. Among Brazilian companies, 
three (Gol, Tam and, Azul) represented 99.5% of the domestic market share (in terms of revenue 
passenger kilometers  - RPK) and 99% of the passengers transported on  domestic flights in the 
country. Among the main cargo companies, LATAM Cargo Brasil (previously Absa LAN cargo) 
carried  30.9% of the total cargo freight in the domestic market. Brazilian companies accounted 
for 29.4% of international flights to and from Brazil in 2020. Latam, Gol, and, Azul accounted 
for 85% of international flights operated by Brazilian companies; considering both domestic and 
foreign carriers, these three Brazilian companies had shares of 13.5%, 7.2%, 4.3% in flights in  2020, 
respectively, whereas the foreign companies Tap, Aerolíneas Argentinas, Lan Cargo S.A. and 
Copa Airlines had shares of 7.1%, 6.4%, 5.5% and 5.4% respectively . 
4.122.   The institutional framework governing the aviation sector i n Brazil was slightly modified 
during the review period, given that the Civil Aviation Council ( CONAC ) now serves as an advising 
body of the Presidency of the Republic for the formulation of the Brazilian civil aviation policy. The 
Ministry of Infrastructu re (MInfra) coordinates and supervises actions for the development of airport 
and aeronautical infrastructure through the Civil Aviation Secretary. The Brazilian Civil Aviation 
Authority (ANAC)28 regulates and inspects civil aviation activities and airport  and aeronautical 
infrastructure. ANAC is linked to the Ministry of Infrastructure, but not hierarchically subordinated 
to this Ministry. The Agency has administrative independence and financial autonomy, and its 
directors have a fixed -term mandate. CONAER O acts as a consultative and deliberative commission 
composed by bodies that directly work with airport management in order to make airports more 
efficient. Infraero is a public company responsible for 59 airports in the country and holds 49% of 
the follow ing airports: Guarulhos (SP), Viracopos (SP), Brasília (DF), Confins (MG) and Galeão (RJ). 
The Department of Airspace Control (DECEA) is, in its turn, subordinated to the Aeronautical 
Command and the Ministry of Defense. The Aeronautical Accidents Investig ation and Prevention 
 
28 ANAC's monitoring report of its strategic indicators available at: https://www.gov.br/anac/pt -
br/acesso -a-informacao/acoes -e-
programas/arquivos/MonitoramentoIndicadoresEstrategicos2020_2021_Final_Diagramado.pdf . WT/TPR/G/ 432 • Brazil  
 
- 44 - 
 
  Center (CENIPA) is also subordinated to the Aeronautical Command and the Ministry of Defense and 
is responsible for the investigation and prevention of accidents.  
Regulatory  and operational  framework  
4.123.   The main legal instrument remains t he Brazilian Aeronautical Code (CBA) of 1986, recently  
amended by Law s 13,319 /2016 and 13,842/2019 , which allowed  airline companies with up to 100% 
of foreign capital to operate in Brazil. In May  2019, Air Europa was incorporated as the first 100% 
foreign -owned airline in Brazil. In addition, five other companies received authorization from ANAC 
to operate scheduled international services to/from Brazil: Norwegian, Sky Airline, FlyBondi, 
Italia Trasporto and Fast Colombia (Viva Air). Another important amend ment to the Aeronautical 
Code aims at simplifying authorization processes and civil aviation in Brazil and is currently  
undergoing its final approval stages . For aircrafts employed  in commercial air transport by Brazilian 
certificated operators, the standa rd is to use Brazilian -registered aircraft ; now,  the use of foreign -
registered aircraft may be authorized through  an interchange arrangement.  
4.124.   In the Brazilian market, d omestic air fares are determined freely by airline companies, 
therefore  no prior approval  is necessary. However, companies must report their fares on a monthly 
basis to ANAC for statistical purposes.29 
4.125.   Pursuant to Law  No. 14,034/2020, emergency measures fo r civil aviation  were introduced  
in the context of the COVID -19 pandemic,  determining cases when  indemnity for off -balance sheet 
damage as a result of failure to perform the air transport contract  should be excluded.  Moreover, 
Law No. 13,874/2019 establish ed principles for the interpretation of legislation and contracts in the 
sector and establish ed norms for the protection of free enterprise and free exercise of economic 
activity , as well as simplification of requirements for incorporation of companies and  simplification 
of authorization processes . In its turn, Law No.  13,848/2019 provided for disciplines on the 
management, organization, decision -making process and social control of regulatory agencies 
including ANAC. These disciplines established mandatory  compliance requirements for the regulatory 
process, ensuring that studies are carried out, guaranteeing social participation and anal yzing 
regulatory impact prior to issuing regulations that may impose obligations on regulated  persons. 
Finally,  ANAC Resol ution No.  556/2020 introduced temporary and exceptional relaxation  of certain 
provisions in order to offset the negative effects caused by  the COVID ‑19 pandemic. This 
exceptional  measure  expired on 30  October  2021 for domestic flights and on  31 March  2022 for 
international  flights.  
4.126.   Since 2015, ANAC has been revising regulations on the general conditions of carriage and 
passenger rights in Brazil. The General Conditions of Carriage entered into force in March  2017, 
introducing regulations based on internatio nal best practices and in line with the Brazilian Consumer 
Protection Code, giving consumers the right to cancel a purchase before its completion. Furthermore, 
harmonization between the general conditions of carriage and the Consumer Protection Code is 
important to promote regulatory stability and to reduce judicialization.30 As addressed in the 
previous TPR  report, air transport companies continue entitled to include checked baggage in the 
ticket price or to charge it separately.31 
4.127.   The civil aviation policy pursues greater integration between Brazilian aviation and 
international markets, through the conclusion of air services agreements (ASAs). During the review 
period, new Air Services Agreements (ASAs) were signed with Angola; Bahr ain; Colombia; 
Côte d'Ivoire; Czech  Republic; Guatemala; Guyana; Israel; Luxembourg; the Netherlands; 
the Netherlands in respect of Sint Maarten; Qatar; Rwanda; Sri Lanka; Türkiye ; the United Arab 
Emirates ; and Viet Nam. Brazil  currently maintains 116 bila teral ASAs, including open skies 
agreements with more than 69 countries. During the review period, MoUs were signed with: 
Cambodia; China; Colombia; Czech  Republic; El Salvador; Finland; Greece; Haiti; 
Hong Kong,  China; Iran; Luxembourg; Malaysia; Malta; N icaragua; Portugal; Qatar; 
Scandinavian  countries (Denmark, Norway and Sweden); Slovenia; Thailand; the United Kingdom; 
Cabo Verde, United Arab Emirates. Brazil has negotiated 7th freedom traffic rights but for all -cargo 
 
29 Article  49 of Law No.  11,182 of 27  September  2005, and ANAC Resolution No.  140/2010.  
30 ANAC Resolution No.  400 of 13  December  2016.  
31 WTO document WT/TPR/S/358/Rev.1, 18  October  2017.  WT/TPR/G/ 432 • Brazil  
 
- 45 - 
 
  services only, bilaterally with Chi le, United Kingdom, Ca bo Verde, El Salvador, Dominican Republic, 
Czech  Republic, Qatar; Finland and Oman. Negotiation s with other countries  are ongoing . 
4.128.   Brazil also participates in the Fortaleza Agreement on regional air transport services covering 
all rou tes not operated under bilateral agreements among the parties.32 The country  is also a 
signatory to the 2012 Multilateral Open Skies Agreement for the member States of the Latin 
American Civil Aviation Commission (LACAC) with reservations regarding 7th, 8th and 9th freedom 
traffic rights. The agreement was sent to the National Congress in August 2016 and was ratified by 
Brazil in March 2019. Currently, a process for lifting reservations on 7th freedom traffic rights , limited 
to all-cargo services , is being prepared for analysis by the Brazilian National Congress. The Brazilian 
National Congress has recently  approved the signing of ICAO 's International Air Services 
Transit  Agreement.  
4.2.7   Ports  and maritime  transport  
4.129.   In 2022, the merchant fleet registered under the Brazilian flag (long -haul and cabotage) 
consisted of 263 vessels (184 in 2015), operated by 37 shipping companies and with a total capacity 
of 5.6 million deadweight tons (DWT) (3.4 dwt in 2015). Oil tankers represent 58.7% of total 
DWT capacity, followed by bulk carriers (21.22%) and container ships (8.99%). The predominance 
of oil tankers and bulk carriers reflects the overall structure of Brazilian goods exports, comprised 
by oil, iron ore, soybeans, sugar, and other commodities.  
4.130.   Considered a milestone in the development of maritime transport in Brazil, 
Law No. 14,301/2022 introduced the Maritime Cabotage Stimulus Program, called "BR do Mar " 
(meaning 'the federal highway of the sea '). This law also brought significant changes to 
Law No. 9,432/1997, the main legal framework that organi zes Brazil 's waterway transport and 
regulates cabotage.  
4.131.   This program seeks to foster competitiveness and promote accessibility to this modal, 
increasing the offer of better quality cabotage services, enabl ing the expansion of the fleet and the 
development of the domestic naval industry, and encouraging national seafaring education, training, 
and qualification.  
4.132.   Since the country has a coastline of 8,500 km, the transportation of goods and passengers 
by coast al shipping (cabotage) in Brazil has increased in recent years, and growth potential is still 
significant. Economic growth in the country's North and Northeast regions, as well as the rising 
purchasing power of an emerging middle -class, have created opport unities for the development of 
costal shipping in Brazil.  
4.133.   Brazil's port infrastructure handled 1.214 billion tons of goods in 2021 (5.08% growth 
compared to 2020). This is equivalent to 81.82% of the total value (US D f.o.b.) of the country's 
foreign trade in the same year (88.44% of exports and 73.34% of imports) and to 96.94% of total 
foreign trade by tonnage (98.11% of exports and 92.33% of imports). Between 2010 and 2020, the 
total movement of cargo in ports and terminals in Brazil grew, on average, 3.75 % annually 
(from  840 million to 1.214 billion tonnes). During this period, the movement of containers also 
increased, on average, by 6.01% per year in tonnes.  
4.134.   Since the entry into force of the new Law of Ports (Law No. 12.815/2013), investment in the 
secto r has been limited to the new Grant contracts, as well as the new term extensions of current 
contracts. Nonetheless, the amount established in these cases is just an estimation. Its attainment 
is part of either the Basic Plan of Investments or the Executio n Projects presented by the tenants, 
and it could be satisfied in different moments of the contracts' validity.  
4.135.   Since 2019, 51 contracts regarding private terminals have been signed, representing a total 
investment of BRL 15.91 billion.  
4.136.   The total investmen t in private  terminals  since 2013 has been  BRL 48.08  billion.  
 
32 Other signatories are Argentina, the Plurinational State of Bolivia, Chile, Paraguay, Peru, and 
Uruguay.  WT/TPR/G/ 432 • Brazil  
 
- 46 - 
 
  4.2.8   Telecommunications  
4.137.   The Brazilian telecommunications market, during the review period, had its growth 
particularly driven by the expansion of mobile and fixed data services broadband Internet access. 
Investment in the telecommunication sector increased from BRL 25.7 billion i n 2017 to 
BRL 27.9 billion, in 2021.  
4.138.   The mobile telephony market went through a recovery cycle during the years under review. 
After a decline in the number of mobile telephone subscriptions at the beginning of the period, 
hitting  239 million subscribers in  December 2017, this market reached 259 million subscribers 
in April 2022, with a teledensity of 104.7 mobile lines per 100 inhabitants.  
4.139.   Another development in the period was the consolidation of the main players in the telecom 
market , including through c ompanies mergers, such as the Claro -Nextel, in 2019, and Oi, in 2021. 
Between 2017 and 2021, further decrease in prices in the wholesale and retail markets and a wide 
adoption of messaging apps in lieu of traditional voice and SMS services were observed. T he period 
under review also displayed an increase in the share of post -paid lines in relation to pre -paid phones, 
as around 53.5% of mobile lines are currently post -paid (46.5% pre -paid), in comparison to 28.5% 
in 2017. Moreover, mobile services maintained  their relevance as a means of access to the Internet 
in Brazil, considering that, according to TIC Domicílios 2020, 64% of the Brazilian population (49% 
in 2017) rely exclusively on a mobile connection to access Internet services. This survey reviews 
that the number of users of Internet that rely (not exclusively) on mobile connection has remained 
high, from 96% in 2017 to 99% in 2021.  
4.140.   Internet usage continues to report impressive growth, spurred by increased broadband 
access across the country, following initiatives by the Government to expand access and make 
broadband connections more affordable under the National Broadband Plan and other public policies. 
The deployment of 4G networks accelerated during the review period, surpassing the number of 
3G acces s in October 2017 and, since then, the gap between these technologies has increased. In 
December 2021, access to 4G networks in Brazil reached 197.2 million, followed by 3G with 
28.8 million, which significantly expanded mobile broadband access in recent y ears. Also the number 
of fixed broadband subscriptions reached 41.7 million fixed access in December 2021 
against  26.8 million in December 2017.  
4.141.   In contrast, the number of fixed telephone lines decreased significantly during the period 
under review. In 201 7, there were 41.4 million fixed accesses in service, whereas these accesses 
were reduced to only 28.9 million in December 2021. Another area that experienced decrease was 
pay TV subscription, which reduced from 18.1 million subscribers in December 2017 to  15.9 million 
on December 2021.  
4.142.   The expansion of investments in telecommunications and of mobile and fixed broadband are 
illustrated by recent data of Internet access. According to a 2021 "TIC Domicilios " survey, 82% of 
households in Brazil have either fix ed or mobile broadband service subscriptions in 2021, in 
comparison to only 61% in 2017. Other initiatives, namely the Wi -fi Brasil Program (2021), aimed 
at increasing Internet coverage and access in underserved areas, particularly rural and remote 
locatio ns, have been put forward and have helped bridge the digital divide within the country. In 
this regard, the rural population with access to the Internet also grew from 34% in 2017 to 71% 
in 2021. Brazil is home to the 5th largest digital population in the world, as 81% of its population are 
Internet users.  
4.143.   Today, Brazil's telecommunication sector is fully open to competition and presents different 
market dynamics. While the mobile market is concentrated, having a handful of large operators from 
abroad, incl uding Telefónica (Spain), Telecom Italia (Italy) and Teléfonos de 
México  (Telmex)/América Móvil (Mexico), almost half of the fixed market is controlled by thousands 
of regional providers. A recent change was the selling of the mobile telephony operation of  Oi to 
Claro, Vivo and TIM, three big companies in this market. The operation was conditioned, in 2021, 
by CADE, to a merger control agreement.  
4.144.   As of April 2022 the fixed line market, consisting of 166 operators (32 in 2012 and 
65 in 2015), was dominated b y Claro (owned by Telmex, 30.6%), Oi (formerly Telemar) (39.7%) 
and Vivo (Telefónica, 26.0%). As of April 2022, the mobile telephony market, consisting WT/TPR/G/ 432 • Brazil  
 
- 47 - 
 
  of 11 operators, including the MVNO operators, (18 in 2012 and 20 in 2015), continued to be mainly 
opera ted by Vivo (38.1%), Claro (32.8%) and TIM (26.5%). Between March 2021 and April 2022, 
the number of companies authorized to supply fixed broadband services grew by 12.7%. As of 
April 2022, the fixed broadband market consisted of 11,734 operators (1,725 in  2012 and 3,223 
in 2015) and  was dominated by Claro (Embratel/Net, 23,3%), Vivo (Telefónica, including GVT, 
15.2%) and Oi (12.3%). Nonetheless, small and medium operators ' market share has experienced 
rapid growth in recent years and accounts for more than  19.7 million subscribers as of April 2022 .33 
4.145.   The National Broad Band Plan (PNBL) was instituted by Decree No. 7,175/2010, with a view 
to boosting access to broadband services across the country and bridging the digital divide, in 
collaboration with private operators. The plan consists of a series of actions in several dimensions, 
including spectrum auctions to increase mobile broadband coverage (4G and telecommunications 
services for voice and data in rural and remote regions), the  implementation of a national 
transmission network (backhaul and backbone), Agreements for the expansion of commercial 
broadband offers at low prices and regulatory measures aimed at promoting greater competition 
and network expansion.  
4.146.   In addition to PNBL,  The Structural Plan for Telecommunications Networks (PERT), approved 
by ANATEL's Rule 309/2019, presents a general mapping of the broadband infrastructure in the 
country, enabling the regulator to diagnose the existence of infrastructure suited to meeting  the 
demands of each region in Brazil. The overview allows the adoption of effective actions on quality of 
service, access expansion, spectrum availability and competition stimulus. Moreover, PERT shows 
clearly any gaps in transport and access networks in the Brazilian territory, supporting the 
preparation of lists of investment projects capable of correcting identified deficiencies, and the 
analysis of possible sources of funding for the Public Administration in the execution of such projects.  
4.147.   Regarding te chnological convergence measures, Law No. 12,485/2011 changed and unified 
the regulatory framework for pay TV services. It removed the limit on foreign investment in 
cable TV (which did not apply to pay TV services provided through MMDS or DTH technologies). 
Law No. 12,485/2011 also eliminated previous limitations on fixed -line telephony concessionaires to 
provide cable -TV services and removed regional restrictions on telecommu nication operators, 
allowing them to provide pay TV services anywhere in Brazil. In 2020 ANATEL ruled that offers of 
subscription video on demand (sVOD) do not fall under the legal framework established in 2011. 
According to the ruling, most users acquire sVOD offers through a broadband or a mobile connection, 
which excludes applicability of Law 12,485/2011.  
4.148.   The "General Antenna Law ", an infrastructure legislation of 201534, seeks to  reduce instances  
of duplication of mobile -network base station in urban areas by making a requirement for operators 
to share infrastructure and excess capacity. In 2017, ANATEL approved Resolution 683, which 
further disciplined conditions for infrastructu re sharing among telecommunication services providers, 
aiming at optimizing resources and improving the quality of services. In 2021, after Article 12 of the 
"General Antenna Law " was legally challenged, the Brazilian Supreme Court supported that this 
provision was constitutional, therefore, states and municipalities cannot charge any fee or 
consideration for the passage of telecommunication infrastructure through state or municipal public 
lands, which can greatly reduce the expected cost for the sharing of  infrastructure.  
4.149.   In 2012, ANATEL Resolution 600 approved the General Plan of Competition Goals (PGMC), 
establishing that groups with Significant Market Power (SMP) in relevant wholesale markets should 
contract a Supervisory Entity Of Wholesale Offers (SNOA ) to implement and operate the Wholesale 
Supply Negotiation System with the aim of mediating, in an equitable and non -discriminatory way, 
the process related to the procurement of wholesale services supplied by groups with SMP. In 2018, 
this regulation was  amended to include new definitions regarding market conditions in both local 
and national markets. As a result, relevant market definitions encompass at least four services 
(broadband, voice, mobile and audiovisual content), which can be categorized local ly according to 
the degree of competitive maturity. PGMC also established a revised threshold for asymmetric 
regulation of telecommunication providers (5% of market share in at least one national market). 
 
33 In 2020 Anatel published a practical guide  regarding mandatory filings and disclosures by regulated 
companies. See  at: https://www.gov.br/anatel/pt -br/regulado/outorga/alteracoes -contratuais  (in Portuguese).  
34 http://www.anatel.gov.br/legislacao/leis/807 -lei-13116 . WT/TPR/G/ 432 • Brazil  
 
- 48 - 
 
  The revised criteria contributed to reduce the regu latory burden for small and medium providers and 
to improve efficient rulemaking by ANATEL.  
4.150.   With regard to Internet -related measures, Brazil introduced Law No. 12,965, of 
23 April 2014, on network management in the context of network neutrality, as well as  on the 
protection and keeping of records (logs) and personal data of Internet users, which apply both to 
Internet connection (service) providers and to Internet application/content providers.  
4.151.   Furthermore, the General Data Protection Law (Law No. 13,709/20 18) was enacted to 
protect the rights to freedom and privacy. The law disciplines treatment of personal data, available 
in physical or digital means, carried out by a legal or a natural person of public or private law, 
encompassing a vast set of operations  that could take place in manual or digital means. The 
Constitutional Amendment 115/2022 included the protection of privacy rights in the list of 
fundamental rights, being elevated in the Federal Constitution 's hierarchy. The National Data 
Protection Autho rity (ANPD), established in 2020 to ensure the compliance with Law No. 13,709, 
became a federal autarchy in 2022 and was granted more autonomy in its decision -making.  
4.152.    In 2019, the General Telecommunication Law (LGT, Law No. 9,472/1997) was amended 
by Law No. 13,879/2019 to establish a new framework that fosters investments in broadband and 
infrastructure. The main changes include the possibility of adapting fixed telephony concessions with 
market -oriented authorizations, the establishment of secondary spec trum market, and new rules for 
satellite license renewal. Satellite operators can now be granted 15 year licenses that can be renewed 
without limitations.  
4.153.    Another important change in the telecommunication legislation was the amendment of the 
Law No. 9,998 /2000 by Law 14,109/2020, allowing a more efficient use of the Universal Service 
Fund (USF). The USF can now be used for investments in initiatives related to access and connectivity 
public policies, in contrast with the older stricter regime where the fun d could only be invested in 
services under the public regime (fixed telephony).  
4.154.    In September 24 2021, the largest spectrum offer in ANATEL's history, the so -called 
"5G Auction " (Public Bidding No. 1/2021 -SOR/SPR/CD -ANATEL, regarding the issuance of 
Author izations for the Use of Radiofrequencies in the 700 MHz, 2.3 GHz, 3.5 GHz and 26 GHz, with 
the possibility of granting the Personal Mobile Service – SMP) was approved by the Agency's Board 
of Directors. The Bidding Notice was published in the Official Gaze tte of 27 September 2021. The 
results of the Auction amount for BRL 46.7 billion in fees and investment obligations, including the 
implementation of 5G standalone, coverage of federal highways and investment in connectivity 
projects for public schools.  
4.155.   Improvements in the telecommunications regulatory framework enhanced the country 's 
business environment and contributed to consolidate Brazil 's standing as the biggest 
telecommunications market in the region, as well as one of the biggest international player s in this 
sector. Likewise, according to data provided by Teleco, the number of telecommunication companies 
grew significantly over recent years, increasing from 8,948 in 2017 to 11,043 in 2019. Brazil 
ranked  6th in the mobile market in the world between 2 017 and 2020. The Internet Exchange 
point (IXP) system of Brazil, called "IX.br", is deemed as one of the world 's biggest IXP and reached 
a peak of  20 Tbit/s of Internet traffic exchange. This landmark is a consequence of the growth of 
the Internet in the country and of the number of both Internet connection providers and content 
providers participating in the domestic Internet connection market.35 
Additionally, Brazil has engaged in international cooperation for the deployment of connectivity 
infrastru cture through the deployment of submarine and terrestrial optic fiber cables, providing 
direct connections to Africa and Europe. In this regard, the inauguration of the Ellalink  submarine 
cable in 2021 is an important achievement, connecting Brazil directl y to Europe.  
 
35 The IX.br is an initiative of Steering Committee of the Internet in Brazil (CGI.br) that aims to install 
and operate Internet  traffic exchange points and provide the necessary infrastructure for the direct 
interconnection of the Autonomous Systems (AS) to the networks that make up the Internet, helping reduce 
costs and improve the performance of participating networks and the enti re Internet.  WT/TPR/G/ 432 • Brazil  
 
- 49 - 
 
  5  FUTURE DEVELOPMENTS  
5.1.  After a decrease of 3.9% in GDP in 2020, under the impact of the COVID -19 pandemic, the 
Brazilian economy showed a strong recovery in 2021, 4.6% GDP growth. In 2022, despite the 
lingering impact of the pandemic, and the glo bal effects associated with the conflict in Ukraine, 
Brazilian economic indicators are resilient, with a positive outlook. The forecasts of economic 
indicators have been revised upwards (including by international organizations such as the IMF). As 
of Augu st, the Brazilian Government estimates a growth of 2.0% in 2022, while the IMF in its last 
review changed its forecast from 0.8% to 1.7%. For 2023, the Brazilian Government estimates an 
economic growth of 2.5%.  
5.2.  Recent measures adopted by the government and  the structural reform agenda have 
strengthened the Brazilian economy to face current challenges. There is a focus on fiscal 
sustainability and structural reforms necessary for a sustained economic recovery, while reform 
efforts continue to improve the soc ial safety net, the sustainable fiscal framework, and the 
competitiveness of the Brazilian economy.  
5.3.  The Brazilian government has implemented a series of pro -market microeconomic reforms as 
the basis of its economic policy to consolidate the growth recovery  on a sustainable basis, with 
increased participation of the private sector and increased productivity. The long -term growth of the 
Brazilian economy fundamentally depends on fiscal consolidation (which includes the reduction of 
the debt/GDP ratio) and on the consolidation of the pro -market reform agenda, encompassing trade 
liberalization, privatization of public enterprises, concessions of infrastructure, improvement of legal 
frameworks (reducing legal uncertainty), and improvement of the business environm ent in general.  
5.4.  Brazil has adopted a series of structuring policies in recent years, such as the pension reform, 
the autonomy of the Central Bank, the new bankruptcy law, and several changes designed to 
promote infrastructure projects and reduce the costs of doing business and investing in Brazil.  
5.5.  A new regulatory framework in oil & gas, sanitation, railways, and 5G networks has attracted 
the interest of the private sector, resulting in investment commitments of more than US D 150 billion 
for the next 10 -12 years. New frameworks for cabotage, securitization, and startups were approved. 
The gradual elimination of IOF (financial transaction tax) on foreign exchange is ongoing.  
5.6.  On the environment, the country stands by the sustainability commitments reached in t he 
Paris Agreement and at COP26. It is regulating the Carbon Market, and innovating in creating a 
methane  market.  
5.7.  Strengthening and supporting the multilateral trading system will remain a priority. Brazil will 
continue to play an active role in the WTO an d will contribute to the urgent reform of the 
Organization, aiming at recovering its original focus on open trade and market economies, without 
neglecting longstanding issues, such as agriculture. In that context, Brazil has proposed the holding 
of WTO min isterial conferences with an annual frequency, which would help foster 
Members ' engagement with the Organization, opening space for needed fact -based discussions on 
pressing and structural issues regarding international trade. In light of the diversified n ature of its 
trade and production structures, Brazil has a major stake in a multilateral trading system that is able 
to provide the basis for the expansion of international trade on a non -discriminatory basis. In that 
sense, Brazil will remain actively eng aged in both multilateral and plurilateral negotiations.  
5.8.  Brazil will also continue to be committed to MERCOSUR, regional integration – as mandated by 
its Constitution – and to strengthening and fostering new bilateral and RTAs, with a view to 
promoting cooperation, sustainable development and mutually beneficial  results. Furthermore, 
Brazil 's future accession to the OECD will have a significant impact in the country 's international and 
trade  outlook, as well as strengthen and deepen structural reforms.  
__________