Trade treaties in Brazil

As an important element of global trade in goods and services, Brazil is naturally a country that has numerous bilateral or block agreements with several other countries, ensuring privileged access to markets, always seeking greater competitiveness for companies located here.

In this week’s article, we will briefly talk about the main treaties to which Brazil is a party. To learn more about the subject, read on.

Mercosur

The Southern Common Market – Mercosur is a very important economic bloc for Latin America. Made up of Brazil, Argentina, Uruguay, Paraguay and other countries, it was created in 1991 with the objective of increasing the offer of jobs and income, improving productivity and intensifying economic relations between nations.

Commercial operations in Mercosul were regulated through the Economic Complementation Agreement nº 18 – ACE-18, implemented in Brazil by Decree nº 550/92. This Agreement was signed with the support of ALADI, on 11/20/1991, with the objective of facilitating the creation of the necessary conditions for the establishment of the Common Market. Within its scope, several Additional Protocols and Rectification Minutes were signed.

Over the last three decades, complementary agreements were signed between Mercosur and other countries. These are Chile, Mexico, Bolivia, Peru, Ecuador, Colombia, Venezuela, India, Israel, Egypt and the countries that make up the Southern African Customs Union: South Africa, Namibia, Botswana, Lesotho and Swaziland.

It also includes a specific agreement with Mexico, regarding the automotive industry.

Mexico

The Economic Complementation Agreement nº 53 (ACE-53), was signed in August 2002 and internalized in Brazil by Decree nº 4.383/02. This agreement covers approximately 800 Naladi/SH 96 codes for which fixed tariff preferences have been granted.

Brazil and Mexico are negotiating to expand this Agreement. The objective is to significantly expand its tariff coverage, in addition to updating the regulatory framework in the sanitary and phytosanitary areas, services, government procurement, trade facilitation, technical barriers, intellectual property, among others.

ALADI

Most of Brazil’s trade agreements were signed within the scope of ALADI. The Latin American Integration Association – ALADI was created in 1980 by the Montevideo Treaty and seeks to continue the economic integration process initiated in 1960 by the Latin American Free Trade Association – ALALC. This process aims at the gradual and progressive implantation of a common Latin American market, characterized mainly by the adoption of tariff preferences and the elimination of non-tariff restrictions.

ALADI currently has 13 (thirteen) member countries: Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Panama, Peru, Uruguay and Venezuela.

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