1 April 2019
Brazilian Industry Association Unveils Proposal to Strengthen Foreign Trade
Brazil’s National Confederation of Industry (CNI) recently unveiled 110 proposals for the consideration of the ministries of Economy and Foreign Relations aimed at strengthening the country’s foreign trade and fostering a culture that favours exports. CNI Director Carlos Abijaodi indicated that even though Brazil is the ninth largest economy in the world, it is only the 26th largest exporter and the 29th largest importer. Abijaodi added that a more integrated Brazil would produce and innovate more and create more jobs, stressing that the sustained resumption of economic growth and increased competitiveness require a greater and more effective insertion of Brazil into international markets.
The document released by CNI includes proposals in such trade-related areas as trade agreements and investments, taxation and financing, trade facilitation, and services to support internationalisation. Some of the more notable proposals are listed below.
- Trade Agreements. Negotiate and conclude trade agreements with strategic markets such as the European Union, Mexico, the Pacific Alliance, the United States and Japan, as well as Iran, Central America, North African countries and ASEAN (particularly Indonesia), and expand the existing trade agreement with the Southern African Customs Union.
- Foreign Trade Strategy. Adopt in consultation with the private sector a national foreign trade strategy for 2019-2022, with clear objectives and measurable targets, including all Brazilian trade policy issues. Assign industry and commerce attachés to strategic markets.
- Barriers in Foreign Markets. Examine at least 20 instances of new barriers in foreign markets identified by the private sector and identify possible solutions.
- Brazilian Investment Abroad. Pursue agreements to avoid double taxation with key countries, including the United States, Colombia and Germany, as well as co-operation and investment facilitation agreements with the BRICs countries, the United States, Japan, and countries in Latin America and Africa.
- Trade Facilitation. Stress the importance of the electronic single window for international trade operations through the allocation of human, technical and budgetary resources and by supporting the implementation of the new import module.
- Foreign Trade Logistics and Infrastructure. Denounce the maritime cargo reservation agreements that Brazil maintains with Argentina and Uruguay, ensure compliance with the Foreign Trade Chamber’s decision not to renew the agreement with Chile, and defend the inclusion of clauses in trade agreements currently under negotiation by Brazil and Mercosur to promote liberalisation and non-exclusivity of cargoes in maritime transport.
- Foreign Trade Taxation. Eliminate the restrictions imposed on the offset of federal tax credits and carry out actions with Congress and at the state level aimed at ensuring the effective use of the credits related to the ICMS tax.
- Trade Remedies. Defend the importance for the private sector of the preservation and strengthening of Brazil’s trade remedy regime, maintaining the current institutional model with analyses of dumping, countervailable subsidies, import surges, injury and causation under the jurisdiction of DECOM.