Negotiations on trade agreements necessary to increase the competitiveness of Brazilian exports – These have been an important part of the agenda of the National Confederation of Industries (CNI) since 1990. But they have only become a government priority two years ago. For almost two decades, Brazil has been on the sidelines of agreements made by the world’s major economies.

In the 2017 International Industry agenda , a document prepared by the CNI, analyzes the political environment, the internal and external scenario for the advancement of Brazil’s trade agreements, and the role of Mercosur.

  1. MEXICO

Brazil and Mexico have three agreements in place for bilateral trade liberalization, but Mexicans make better use of these agreements. Of the exports from Mexico to Brazil, 74 per cent are exempt from taxes or have reduced taxes. From Brazil to Mexico, only 55 per cent benefit. The CNI supports the conclusion of negotiations on a free trade agreement that also includes: services, government procurement, trade facilitation and technical barriers and sanitary and phytosanitary measures.

  1. EUROPEAN UNION

The CNI supports the rapid conclusion of the free trade agreement between Mercosur and the European Union . And it supports the engagement of the Brazilian private sector in the negotiations, to improve the positioning, especially in goods and rules of origin.

  1. SOUTH AMERICA

For the industry it is important to have a trade policy strategy with the main South American countries , in addition to expanding the agreements that already exist with Colombia and Chile. An agreement between Mercosur (Brazil, Argentina, Paraguay and Uruguay) and Aliança do Pacífico (Chile, Colombia, Mexico and Peru) and convergence of standards between the two blocs would boost trade in the region.

  1. MERCOSUR

The Mercosur is important for the Brazilian industry. However, it is necessary to strengthen the bloc’s economic and trade agenda, which has been forgotten in recent years. Mercosur members must agree on technical barriers and sanitary and phytosanitary measures, investments, new protocols on government procurement, trade facilitation, and make the rules for the bloc’s external negotiations more flexible.

  1. OTHER NEGOTIATIONS

CNI has shown interest to the Brazilian government in the industry in South Africa, Canada , India, Iran and the Central American Integration System ( SICA ). The industry has already made an outline for negotiations on a free trade agreement with Japan and the United States

  1. SERVICES

The services come to account for more than 50 per cent of the value of industrial output. Even so, Bureaucracy and the high tax burden affect trade in services in Brazil. In addition, there are barriers to trade in services, which are very difficult to identify. There are different ways of delivering services, with different regulations varying according to the service sector considered.

The industry supports Brazil’s participation in the negotiations on the Agreement on Trade in Services (TISA) and the plurilateral negotiations for trade liberalization of services.

  1. INTELLECTUAL PROPERTY

The industry has proposed to the government that it make permanent and include all sectors in the Patent Examination Sharing Agreements (PPH ) with the United States, Europe and Japan; Sign new with China and South Korea;

And to internalize the Madrid System for the International Registration of Marks (Madrid Protocol).

  1. MOVEMENT OF PEOPLE

An important flag to increase trade and investment is to eliminate the visa requirement for business and tourism visas in the United States (Visa Waver Program) and Japan and facilitate the entry of business and tourism travellers into the BRICS (Travel Card) and the United States (Global Entry).

By Adriana Nicacio

Translated from Portuguese

Source: CNI

Image: Fotosearch