Us Brazil Trade Agreement

On October 19, 2020, Brazil and the United States announced the signing of a protocol on trade rules and transparency (protocol). The protocol updates the 2011 Agreement on Trade and Economic Cooperation (ATEC) between the two countries with new annexes in three areas: trade facilitation and customs administration, good regulatory practices and the fight against corruption. The agreement is the culmination of a long process. In 2016, former Brazilian President Michel Temer expressed interest in additional investments from the United States. Public relations have intensified dialogue between the two countries, and discussions have gained momentum until the 2016 elections of Donald Trump and Jair Bolsonaro in 2018. After a presidential meeting in Mar-a-Lago in March 2020, the economy was hoping to negotiate an ambitious trade agreement between the two largest economies in the hemisphere. The protocol, also announced by Brazilian President Jair Bolsonaro, contains new annexes with provisions on customs administration and trade facilitation, regulatory practices and the fight against corruption, the USTR said in a statement. Here is the full text of the ATEC and Brazil protocol on trade rules and transparency. With regard to trade facilitation, the Protocol contains important provisions on preliminary rulings, sanctions, a single window of opportunity, an approved economic operator and automation that go well beyond the basis of the WTO trade facilitation agreement. With respect to good regulatory practices, this is the first subsequent agreement to use the CCA framework as defined in the USMCA. With regard to the fight against corruption, the protocol further expands the framework for both countries to include provisions on money laundering, confiscation of proceeds of corruption, denial of a safe haven for foreign officials who practice corruption and additional protection for whistleblowers. Today`s agreement will help all traders who are looking for simpler customs procedures, more opportunities to participate in rule-making and more confidence in market rules.