number of negotiations with countries outside the Latin America is very low. Another finding is that the majority of the trade agreements are still allusive to reduction of taxes. Having this in mind, there is a big space to expand the Brazil’s market share in the international trade, through new negotiations, including those that cover non-tariff issues, and progress in the conclusion of trade agreements that are under negotiation. To make qualified inclusion of the country in the global value chains, by deepening its participation in the worldwide agreement network, the Government has been, since last year, performing an aggressive strategy of trade, by signing more agreements with wider coverage of issues. This is going to be a qualified inclusion, based on the assessment of the Brazilian real concerns, designed jointly with the private sector. The new trade strategy is founded in two pillars: expanding the subjects of the regional agreements, by negotiating
YEARBOOK IEL 200 LARGEST COMPANIES 2016
non-tariff agreements, such as the investments, services, trade simplification, regulatory convergence and governmental acquisitions; and expanding the number of agreements of extra-regional trade, aligned with the most modern trends of international trade. In the scope of non-tariff negotiations, what stand out are the first international agreements made by Brazil in History, on investments, services and governmental acquisitions. Two original agreements were made with the United States: regulatory convergence and trade simplification. These agreements led to the elimination of technical barriers imposed to Brazilian products and the simplification of the goods’ flow, on both sides. Furthermore, international labs that certificate products for sale in the NorthAmerican market have settled in Brazil, reducing significantly the exportation costs of Brazilian products to the USA. With the investment agreements, made with Angola, Mozambique, Mexico, Malawi, Colombia, Chile and Peru, the Brazilian companies that invest in these countries began to have the same treatment as national firms. Now they can count on contractual terms of protection to their intakes, prevention and solution of disputes, besides the institutional support given by the Governments that receive the investments. Moreover, the foreign inversions in Brazil are more pushed, because the same terms are applied here. The agreements of governmental acquisitions and services signed with Peru unlock the public bidding, which becomes automatically available for the Brazilian companies, under the same treatment as the national companies. This way, the Brazilian services suppliers can have new and better opportunities to participate in the sectors with great interest for services. Brazil has also signed the Protocol of Services with Colombia and it is negotiating agreements of governmental acquisitions with Chile, Mexico and Colombia.
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In the scope of non-tariff negotiations, what stand out are the first international agreements made by Brazil in History, on investments, services and governmental acquisitions”
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