Brazilian Trade Barriers Polices to be analyzed by the WTO
Trade Policy Reviews are exercises conducted by the WTO at regular intervals that aim to examine and evaluate significant developments made by member countries that may have an impact on global trade. From July 17 -19, 2017, Brazilian trade policies and practices will be reviewed by the WTO. This will be the seventh review of the trade policies of Brazil.
Brazil’s administrative barriers, suspicious incentives, and tax system will be analyzed by the WTO in Geneva. Brazil’s comercial partners have presented more than 700 questions regarding Brazil trade policies, but the complex and burdensome tax system that creates multiple barriers for trade is expected to be the main topic for discussion in Brazilian trade review meeting this time.
Brazil not only acknowledged the high complexity of the Brazilian tax system, but also admitted that the government need to simplify and rationalize the system to improve its business environment and pointed out that negotiations to simplify its tax system are already being made.
Regarding the WTO and other countries’ questions about the local content requirements on programs to promote industrial development, Brazil stated that the critics made upon these requirements are inaccurate, since the programs aim to foster local production, improve technology and work force, which are legitimate objectives recognized by the WTO.
In light of the above, the Brazil delegation argued that critiques of Brazil’s focus on domestic market are only partially true, since Brazil has been making efforts to better integrate on the world’s global economy and because of the fact that its participation in GDP can be compared to countries like United States and Japan.
There is no doubt whatsoever, that a lot of work must be done to better integrate Brazil into the world’s global economy, there seems to be a common understanding within this government about the importance of simplifying Brazil’s bureaucracies. However, its national oriented politics may continue to jeopardize its liberalization process.
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