Trade Negotiations: WTO, Mercosur

and bilateral agreements

Diego Bonomo

Executive Manager of International Affairs

November 21, 2017

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WTO disputes: offensive vs. defensive

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What happened in the last decade?

― ‘Protectionist contraction’: the Great Recession (2008/09) and the

‘Greater Brazil’ Plan (2011)

* The Brazilian trap: ‘nobody will do it and if does will not work!’

― ‘Market access expansion’: the Brazilian economic crisis (2014/16)

and the National Export Plan (2015)

* CNI publicly advocates since 2012! Most outspoken group

What is the new strategy?

― Bilaterals as priority (all going on): EFTA, the EU, Mexico and Pacific

Alliance countries (non-tariff issues)

― Mercosur ‘single market’-type effort: removal of trade restrictions and

new agreements on investment and government procurement

― WTO’s ‘Azevêdo Doctrine’: early harvest (or mini single-undertaking)

mixing Doha Round issues (TFA, export competition) and new issues

What else does the private sector want?

― Bilaterals: Canada, Central America, Iran, Japan, SACU and the U.S.

― Mercosur: market access (sugar, services) and rules (RoO, TBT, SPS,

trade facilitation)

― WTO: Doha Round pending issues (e.g. tariff binding, AD/CVD), built-

in agenda reviews (e.g. TBT, SPS) and new issues (e.g. e-commerce,

SMEs, SOEs)

And free, undistorted trade in agriculture!

International Agenda of Industry

The ‘offensive interests’ publication series

Canada, Central America, EFTA, Japan and South Africa

Private-sector roadmaps and agendas

Roadmaps (Japan/Keidanren and U.S./U.S. Chamber and AmCham)

and agendas (Mercosur and WTO)

A word about implementation of trade agreements in Brazil

― CNI survey of 27 agreements – trade and investment – between 2003

and 2017: on average, 1.590 days (more than 4 years!)

* WTO TFA was ratified by Brazil in 2016 but still not formally in force!

― Three-step process: executive branch, Congress (House and Senate),

and executive branch again

― Proposals: streamline and make executive branch procedures more

transparent (e-government)

Thank you! Questions?