home > trade topics > trade policy reviews > list of reviews >

TRADE POLICY REVIEW:

Concluding remarks by the Chairperson

See also:
Promoting market competition would help sustain economic growth
  

The fifth Trade Policy Review of Brazil has allowed this Body to appraise in detail the evolution of its trade policies since 2004. I thank His Excellency Ambassador Roberto Azevedo, Mr. Carlos Cozendey and their team for engaging so constructively in this Trade Policy Review exercise. I would also like to thank the discussant, Ambassador Noor, and the numerous Members who participated in the discussion as part of this exercise.

This has been a very constructive review. We have heard widespread praise of Brazil's sound macroeconomic policies. Brazil's good economic performance has been linked to the expansion and diversification of trade, and thus to Brazil's liberalization efforts. Moreover, Brazil's economic growth had become more socially inclusive. While growth was slowing down amidst the global economic turmoil, it was the Members' sense that Brazil would weather the crisis better than most. However, Members also noted that Brazil continued to face important economic and social challenges and that, hence, further efforts were needed to meet these challenges.

Brazil has received well-deserved commendation for its support of the multilateral trading system and its leadership role in all areas of the Doha Development Agenda. Members acknowledged Brazil's active participation in the development of the Aid-for-Trade process, and its twofold role both as recipient and as donor. As well, Brazil was encouraged to grant duty-free quota-free access to LDCs.

Widespread appreciation was also expressed for Brazil's decision to resist protectionist pressures seeking to expand the scope of non-automatic import licensing. Nevertheless, some Members expressed concern with respect to Brazil's existing non-automatic licensing regime, noting that it affected just over one-third of all tariff lines. Brazil indicated that it was taking steps to minimize the impact of licences on imports, and that it did not intend to impose new licensing requirements on a broader list of goods. Concerns were also raised on the use of import prohibitions, with Brazil indicating that prohibition on used consumer goods were in place mainly for environmental and safety reasons. Some Members urged Brazil to enhance the transparency of its technical regulations, and sanitary and phytosanitary measures.

In response to questions regarding the increase in the average applied tariff during the review period, Brazil explained that the tariff increases did not reflect its general trade policy, and that they had been concentrated in sectors that were particularly sensitive due to their labour-intensive nature. In this respect, Members encouraged Brazil to reduce bound tariff rates to give its import regime greater predictability. Replying to questions on the complexity of its taxation system, Brazil informed that a tax reform bill that seeks to reduce the number of taxes, improve tax neutrality and eliminate distortions was under discussion in Congress.

Brazil was invited to consider joining the GPA, as this would reduce procurement costs and give domestic producers improved access to GPA member markets. Brazil responded that it was not currently considering joining or becoming an observer to the GPA.

Some Members noted with satisfaction that Brazil had passed new IPR legislation and enhanced the effectiveness of enforcement but encouraged Brazil to further strengthen IPR protection.

Some Members noted the use Brazil makes of preferential credit and other support schemes in sectors like agriculture and manufacturing, and expressed concern about domestic content and other requirements for accessing some of them. In this respect, Brazil considered that the management of its rural credit support did not cause major market distortions.

Members encouraged Brazil to close the gap between its relatively liberal services regime and its GATS commitments. Brazil noted that although the ratification process of the Fifth Protocol on financial services was ongoing, it could not specify a timeframe for its completion. With regards to telecommunication services, Brazil indicated that it was not considering adopting the Fourth Protocol, nor relaxing commercial presence requirements, but that its revised conditional GATS offer included commitments in the telecom sector. Certain Members invited Brazil to remove foreign ownership restrictions in maritime and air transport services. Brazil noted that draft legislation changing investment restrictions in air transport was under examination in Congress.

In conclusion, this Review has highlighted the key roles that sound economic policies, continued reform efforts and a growing integration in the global economy have played in Brazil's economic success in recent years. As a result, Brazil finds itself relatively well prepared to face the current global financial crisis, in which it has set an example by resisting protectionist pressures. Additional domestic reforms would further help Brazil overcome the crisis, and enable it to continue reaping the benefits of trade. Binding these and earlier reforms in the WTO would enhance the predictability of Brazil's trade and investment regime, as well as contribute to its efforts to achieve a successful completion of the DDA.

I would like to close this meeting by thanking, once again, the discussant and the Members who took part in this meeting for contributing to an informative review. I would also like to thank the delegation of Brazil for addressing the large number of questions posed by Members both in writing and orally.

> Problems viewing this page?
Please contact webmaster@wto.org giving details of the operating system and web browser you are using.