International Trade in Brazil

Introduction

International trade law in Brazil (Direito do Comércio Internacional) governs the country’s participation in the global trading system. Brazil is a founding member of the World Trade Organization (WTO), a key member of Mercosur (the Southern Common Market), and an active participant in international trade negotiations. The legal framework includes trade remedies, export promotion, customs regulation, and investment treaty law, administered by the Foreign Trade Chamber (CAMEX) and other agencies.

Institutional Framework

CAMEX

The Foreign Trade Chamber (Câmara de Comércio Exterior, CAMEX) is the highest governmental body for foreign trade policy. Created by Law 10.683/2003 and regulated by Decree 4.732/2003, CAMEX is composed of ministers and is responsible for: (i) formulating foreign trade policy; (ii) coordinating trade negotiations; (iii) establishing tariffs; (iv) administering trade remedies; and (v) promoting exports.

Ministry of Development, Industry, Trade and Services

The Ministry of Development, Industry, Trade and Services (MDIC) implements foreign trade policy through its Secretariat of Foreign Trade (SECEX) and other departments. SECEX is responsible for: (i) trade negotiations; (ii) trade remedy investigations; (iii) export promotion; and (iv) import licensing.

Other Agencies

• Brazilian Trade and Investment Promotion Agency (APEX Brasil): Promotes Brazilian exports and foreign investment
• Central Bank of Brazil (BACEN): Regulates foreign exchange and capital flows
• Federal Revenue Service (RFB): Administers customs and tariff collection

Mercosur

Formation and Structure

Mercosur was established by the Treaty of Asunción (1991) and institutionalized by the Protocol of Ouro Preto (1994). Founding members are Brazil, Argentina, Paraguay, and Uruguay (with Venezuela suspended since 2016). Mercosur has a common external tariff (TEC) for most products and a customs union framework.

Dispute Resolution

Mercosur disputes are resolved through the Permanent Review Tribunal (Tribunal Permanente de Revisão, TPR), established by the Protocol of Olivos (2002). The TPR has jurisdiction over disputes among member states regarding Mercosur law. Brazil has participated in several TPR proceedings and has generally complied with its decisions.

Integration and Recent Developments

Mercosur has concluded trade agreements with the European Union (agreement in principle, 2019), the European Free Trade Association (EFTA), and several other partners. The Mercosur-EU Agreement, once ratified, will significantly expand trade opportunities and require regulatory harmonization.

WTO Participation

Dispute Settlement

Brazil is one of the most active WTO members in dispute settlement. Its notable cases include:

• Brazil — Aircraft (DS46): Canada challenged Brazil’s export financing program for aircraft (PROEX). The Appellate Body found aspects of PROEX inconsistent with the SCM Agreement.
• Brazil — Retreaded Tyres (DS332): The European Communities challenged Brazil’s import ban on retreaded tires. The Appellate Body found the ban justified under Article XX(b) (human health protection) but found the discrimination between Mercosur and non-Mercosur imports unjustified.
• Brazil — Taxation (DS472/497): The European Union and Japan challenged Brazilian tax incentives in the industrial and ICT sectors. The dispute panel and Appellate Body found several measures inconsistent with national treatment and prohibited subsidies rules.

Trade Policy Review

Brazil undergoes periodic WTO Trade Policy Reviews, which assess its trade and trade-related policies. Recent reviews have highlighted Brazil’s relatively high tariff protection, complex tax system, and the importance of regulatory reform for trade competitiveness.

Trade Remedies

Anti-Dumping

Brazil is a frequent user of anti-dumping measures. SECEX conducts anti-dumping investigations under Decree 8.058/2013, which implements the WTO Anti-Dumping Agreement. Measures are typically applied for five years, with reviews available.

Countervailing Duties

Countervailing duty investigations address subsidized imports. Brazil’s framework, also under Decree 8.058/2013, implements the WTO SCM Agreement.

Safeguards

Brazil applies safeguard measures under Decree 1.488/1995, implementing the WTO Safeguards Agreement. Safeguard investigations are conducted by SECEX, and measures may include tariff increases or quantitative restrictions.

Export Promotion and Financing

BNDES-EXIM

The National Bank for Economic and Social Development (BNDES) provides export financing through its BNDES-EXIM program, offering pre-shipment and post-shipment credit. WTO disciplines on export subsidies have constrained certain BNDES financing practices.

Drawback Regime

The Drawback regime suspends or exempts import duties on inputs used in exported products. The Special Customs Regime of Drawback is a key instrument for export competitiveness.

Investment Treaties

Brazil has not ratified traditional bilateral investment treaties (BITs) with investor-state dispute settlement (ISDS) provisions. Instead, Brazil promotes Cooperation and Facilitation Investment Agreements (CFIAs), which focus on cooperation, institutional governance, and dispute prevention through state-to-state mechanisms. Brazil has signed CFIAs with several countries, including Angola, Chile, Colombia, and Mozambique.

Customs Law

Brazilian customs law is governed by Decree-Law 37/1966, Law 10.833/2003, and regulations issued by the Federal Revenue Service. The Mercosur Common Nomenclature (NCM) classifies products. Customs valuation follows the WTO Customs Valuation Agreement.

Conclusion

Brazil’s international trade legal framework is sophisticated and reflects the country’s active engagement with the multilateral trading system. Through Mercosur, WTO participation, and an extensive network of trade agreements, Brazil has integrated into global trade while maintaining policy space for domestic development objectives. The ongoing liberalization of trade policies, regulatory reform, and the potential ratification of the Mercosur-EU Agreement represent significant developments for Brazilian international trade law.