Concluding remarks by the Chairperson

The eighth Trade Policy Review of Brazil has offered us a good opportunity to deepen our understanding of recent developments in, and challenges to, its trade, economic, and investment policies. Since its seventh TPR in 2017, Brazil's initiatives to maintain its participation in the Multilateral Trading System and take advantage of the opportunities it offers were greatly appreciated. Indeed, the 958 advance written questions submitted by 38 Members and the 51 delegations that took the floor during the first and second day underline the importance attached by Members to Brazil's trade and investment policies and practices.

I would like to thank Brazil's delegation, led by Minister Fernando Meirelles de Azevedo Pimentel, Director of the Trade Policy Department of the Ministry of Foreign Affairs, for its active participation in this exercise. I would also like to thank our discussant H.E. Ambassador Dr. Muhammad Mujtaba Piracha, Permanent Representative of Pakistan to the WTO, for his insightful remarks, and all the delegations that took the floor for their valuable contributions to this Review.

Members commended Brazil for the improvements of its economic fundamentals and macroeconomic resilience as well as for maintaining its level of openness of trade and investment regimes despite the economic turmoil caused by the COVID-19 pandemic. Members were pleased to see rebounding growth in 2021 as a result of timely implemented support measures. Brazil was praised for its ambitious supply-side trade-related structural reforms to boost productivity, potential growth, and living standards in several areas. At the same time, several Members encouraged effective and timely implementation of a significant tax reform as well as further reduction of regulatory burden on businesses and to continue strengthening measures to improve governance practices and enhance transparency. Brazil was also invited to address a number of environmental challenges including rising deforestation, as well as to continue creating an investment climate favourable to the further development of renewable energy. Some Members noted the rise of the share of foreign trade to GDP notwithstanding the impact of the pandemic in 2020 and 2021. Several Members saw untapped potential for further enhancing bilateral trade in goods and services and increasing investment flows in many areas. Diversification of foreign trade remained essential to overcome temporary disruptions of supply chains and to further improve Brazil’s international competitiveness.

Brazil was praised for its continued commitment to the rules-based multilateral trading system, as well as its leadership, constructive and valuable role at the WTO, including its contribution in securing successful outcomes in MC12. Brazil’s recognition to forgo special and differential treatment in future WTO negotiations was commended. Members appreciated its active participation in the various Joint Statement Initiatives (JSIs), including E-Commerce, Investment Facilitation for Development, MSMEs, and Services Domestic Regulation, as well as the Trade and Environmental Sustainability Structured Discussions (TESSD), the Multi‑Party Interim Appeal Arbitration Mechanism and WTO reform discussions. Members welcomed its on-going accession to the Government Procurement Agreement (GPA) noting that Brazil was the first Latin American Member seeking to do so, and encouraged the expeditious completion of the pending procedures. Brazil’s recent application to join the Agreement on Trade in Civil Aircraft was also commended. Members noted Brazil’s positive overall notification and transparency record and encouraged to submit outstanding notifications with respect to import licensing procedures and quantitative restrictions as well as to ensure the submission of TBT and SPS notifications at least 60 days in advance of the measure being adopted. Members welcomed the progress made so far in Brazil’s OECD accession process. Brazil was encouraged to play an active role in inter alia expanding MERCOSUR RTAs network with major trading partners outside the region.

Members noted that since the last TPR the overall simple average MFN tariff rate had declined but the rate on dutiable items had increased. Despite a high tariff binding coverage, they encouraged to close large tariff binding overhangs. Brazil had progressively sought to reduce non-tariff barriers to trade through simplifying regulations, increasing transparency and encouraging the use of digital tools and services. Concern was expressed over persisting burdensome, costly and often redundant import procedures involving a disproportionately large number of documents. Suggestions were made to further reduce the number of non-automatic import licences. Tax discrimination was another area of concern and Brazil was requested to address perceived tax rate distortions between imported and domestic products. Support was expressed for action to improve the regulatory framework of its financial system and enhance the transparency of its procurement processes at all levels of government. Members welcomed positive developments in the area of intellectual property (IP) rights, including joining the Madrid Protocol and taking steps to accede to the Hague Agreement, as well as its action for reducing backlogs in processing patent applications and expanding the scope of its Patent Prosecution Highway program. Brazil was urged to join certain other IP treaties.

At the sectoral level, several Members welcomed Brazil's active role in the agriculture trade negotiations as a member of the Cairns Group. Members acknowledged Brazil's importance as an agriculture powerhouse for a number of trading partners and its contribution for meeting the global food security challenge. Members noted the significance of Brazil's exports of mining products and commended the new regulatory framework for natural gas. Members commended Brazil's ambitious renewable energy plans and encouraged further regulatory reforms to foster investments in the energy sector.

Concerning services, Brazil was urged to further open up its markets to foreign enterprises, in particular in the financial, insurance and the legal professions activities. Members praised Brazil's openness in the telecommunications sector. The removal of maritime cargo sharing agreements and government cargo restrictions as well as the reform of the domestic maritime transport regulations were appreciated. The privatizations and concessions undertaken in the administration of airports, maritime ports, and energy distribution were also commended.

The above points are some of the key issues that had emerged in our discussion. I hope that the Brazilian delegation will consider and further reflect on these issues and on the many constructive comments, both broad and detailed, that it has received during this Review. Members look forward to receiving the answers from Brazil to any outstanding and follow up questions within one month, at which point the Eighth Trade Policy Review of Brazil will be successfully concluded.