Entity indicates progress in 59% of the actions analyzed
The first seven months of Jair Bolsonaro’s government saw advances in the foreign trade agenda. The assessment is from the National Confederation of Industry (CNI), which analyzed 22 actions on the government agenda for the area and found that 13 of them had improvements, equivalent to 59%.
Among the topics showing improvement, the main ones are the conclusion of the trade agreement between Mercosur and the European Union and the US government’s support for the country’s admission to the Organization for Economic Cooperation and Development (OECD). The survey also cited as examples of improvement the end of the levy of Financial Operations Tax (IOF) on export exchange and the signing of the agreement with Uruguay to avoid double taxation.
The entity also listed among the advances the publication of the decree that expands the direct investment ombudsman’s duties (instrument of consultation of foreign investors on the legislation and administrative processes in Brazil), the update of the transfer pricing rules for multinationals (prices charged on transactions between the headquarters of a foreign company and the Brazilian subsidiary) and Brazil’s adherence to the Madrid Protocol (an international treaty that simplifies and reduces costs for the registration of trademarks of Brazilian companies in other countries).
CNI has classified six actions as pending, waiting for the executive branch to be finalized. The first is the edition of the presidential decree that ends the maritime agreement between Brazil and Chile. According to the Confederation, the current agreement undermines bilateral trade with freight up to 40% more expensive and limits competition in the supply of ships.
The other actions considered pending are the decrees recreating the Foreign Trade Chamber (Camex); the National Trade Facilitation Committee (Confac), as provided for in the World Trade Organization (WTO) Trade Facilitation Agreement; the National Trade Promotion Committee (Copcom); and the Electronic Barrier Monitoring System Management Committee (SEM Barriers).
Despite advances in most actions, the survey found that there was backtracking in three areas (14%). The first is the lack of budget resources for the development of the import module of the Single Foreign Trade Portal and for the maintenance of the existing export module. The most important tool of Brazilian foreign trade, the portal is routinely used by 25,000 exporting companies and 44,000 importers across the country.
The second setback was caused by the change in the rule of analysis of anti-dumping duties (imposition of tariffs on companies and products from other countries that compete unfairly with their national equivalents). According to CNI, the changes occurred without prior public consultation.
The CNI also considered that there was a setback in Mercosur’s Common External Tariff (TEC) review process. According to the confederation, the Brazilian Business Coalition (CEB) sent a letter to the Ministry of Economy reinforcing the request for dialogue with the productive sector on the subject. In such cases, the OECD recommends public consultations and regulatory impact analysis prior to the adoption of standards that may affect the private sector.
Source: Agência Brasil
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Entidade aponta progresso em 59% das ações analisadas