Brazil intends to reform trade protection mechanisms

The Brazilian private sector has recently drafted definitions of subsidies, dumping margin calculation methods, and temporary anti-dumping duties during the investigation of dumping cases to reform its existing trade protection mechanisms.

The Brazilian Industry Confederation (CNI) believes that the scope of the export subsidies for exporting countries should be expanded, with the exception of any other relevant economic activities in addition to the subsidies for the export of the products from the source countries to the production, export, and transportation of Brazilian products. Subsidy measures should be regarded as export subsidies for the country of origin of the product. In addition, CNI believes that the currency devaluation policy of exporting countries can also be regarded as a subsidy policy for exporters.

The Brazilian government intends to shorten the investigation cycle of dumping cases: 1. The time period from the average 159 days to 41 days for the investigation agency to receive a dumping complaint and to start a dumping investigation; 2. The period of recognition of temporary anti-dumping measures will be shortened from an average of 433 days to 108 days; 3. Reduced the period for confirming field verification from an average of 191 days to 126 days.

The above reform proposals will be compiled by Brazil's Ministry of Development, Industry and Trade, and a draft reform will be submitted to the Foreign Trade Commission consisting of seven ministers for approval.