BRAZIL ESTABLISHES THE CRITERIA FOR THE SUSPENSION OF TRADE CONCESSIONS
Spring 2025 - Vera Kanas
As a response to the increasing protectionism around the globe and the weakening of the multilateral trading system, Brazilian Law No. 15,122/2025 published on April 14, established the criteria for suspending trade concessions, investments, and obligations related to intellectual property rights. Suspension of trade concessions includes the possibility of imposing restrictions on importing goods and services.
The first bill of law was developed and proposed by the lawmakers from the agribusiness caucus in the Brazilian Congress. This is because this law was initially conceived as a response to European standards that established certain environmental requirements which, if not met, would lead to trade restrictions, particularly regarding deforestation.
The bill was expanded to allow Brazil to impose retaliatory measures against any unilateral actions adopted by a country or economic bloc that negatively affect Brazil’s international competitiveness. This includes, for instance, recent commercial measures imposed by the United States.
The possibility of retaliation is granted to the Executive Branch in cases of actions, policies, or practices that interfere with Brazil’s legitimate and sovereign choices through the unilateral application of commercial, financial, or investment measures that violate trade agreement provisions (or that harm Brazil’s benefits thereunder), or that constitute unilateral measures based on environmental requirements that are more burdensome than the standards, rules, and norms adopted by Brazil. Countermeasures may be adopted cumulatively, but they must be proportional to the economic impact imposed on Brazil.
Certain sectors raised concerns about the possible impacts on Brazilian companies if intellectual property rights are suspended under this law. However, it is worth noting that the private sector must be consulted before any retaliation is implemented.
In principle, the Brazilian Government intends to prioritize negotiations and use this legislation as a last resort only.
