It is possible that some of these restrictions will be moderated in future regulations. Service trade possibilities are also affected by limitations on foreign capital participation in many service sectors. The proposed constitutional amendment eliminating the distinction between national and foreign capital submitted to the Congress in February 1995 may, when ratified, remove most of these limitations. Foreign companies, particularly construction engineering firms, are prevented in government procurement contracts from providing technical services unless Brazilian firms are unable to perform them. INPI, which must approve all technical service contracts, has subjected them to substantial delays.
Restrictions exist on the use of foreign-produced advertising materials.
Furthermore, discriminatory government procurement practices exist. Foreign legal, accounting, tax preparation, management consulting, architectural, engineering, and construction industries are hindered by various barriers. These include forced local partnerships, limits on foreign directorships and non-transparent registration procedures. The Government of Brazil reserves the right to refuse entry of managers or executives associated with providing a service if they do not provide new technology, increase productivity in Brazil, or attract new investment. This denies U.S. marine cargo insurers an opportunity to compete for business.