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See also:
Promoting market competition would help sustain economic growth
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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.
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