In a context of accelerating commerce limitations to Brazilian exports, particularly the extra tariffs imposed by the USA (US Reciprocal Tariffs) that embody Brazilian exports, along with environmental restrictions on the export of Brazilian merchandise by the European Union and different nations (such because the Carbon Border Adjustment Mechanism (CBAM) and different carbon management mechanisms (e.g. UK CBAM), imposed by the European Union and different nations), Legislation No. 15.122/2025 (referred to as the “Financial Reciprocity Legislation”) was revealed yesterday in Brazil.
The Legislation authorizes the Government Department in coordination with the non-public sector “to undertake countermeasures within the type of restrictions on imports of products and companies or measures to droop commerce concessions, investments, and obligations referring to mental property rights, and measures to droop different obligations offered for in any of the nation’s commerce agreements”.
In different phrases, it’s an instrument that permits the adoption of potential financial retaliation by the Brazilian authorities to mitigate the impression on financial exercise and keep away from disproportionate administrative burdens and prices. However, the rule itself factors out that diplomatic consultations might be held with aiming to mitigating or annulling the consequences of the measures and countermeasures in query.
The eventual suspension shall be adopted by the Government Department in coordination with the non-public sector if a rustic or financial bloc adopts actions, insurance policies, or practices that:
- intrude with Brazil’s official and sovereign selections, in search of to forestall or acquire the cessation, modification, or adoption of a selected act, or apply in Brazil, by means of the appliance or risk of unilateral software of commerce, monetary, or funding measures;
- represent unilateral measures based mostly on environmental necessities which can be extra onerous than the parameters, norms, and requirements of environmental safety adopted by Brazil, such because the Forest Code, the Nationwide Coverage on Local weather Change, the Nationwide Environmental Coverage, nationally decided commitments beneath the Paris Settlement, particular attributes of the Brazilian productive system, such because the excessive charge of renewable vitality within the electrical energy and vitality matrices, or particularities and differentials and others; or
- violate or are inconsistent with the provisions of commerce agreements or in any other case deny, nullify, or impair advantages to Brazil beneath any commerce settlement. The countermeasure shall be used exceptionally when different countermeasures show insufficient to reverse the actions, insurance policies, or practices adopted by one other nation/financial bloc.
In response, the Government Department can retaliate by means of remoted or cumulative measures, that embody: (i) imposition of economic duties towards items or companies; (ii) the suspension of concessions and different obligations referring to mental property rights; and (iii) different measures to droop concessions or different obligations of the nation offered for in commerce agreements by which Brazil is a celebration.
Particular laws might be issued to deal with the implementation of the aforementioned acts, which is able to initially set up public consultations for the manifestation of events, adopted by the dedication of deadlines for analyzing the precise request, and at last the suggestion of countermeasures.
The countermeasures shall, to the extent that it’s potential, be proportionate to the financial impression attributable to the acts, insurance policies, or practices adopted by the nation or financial bloc. Nevertheless, exceptionally, it’s potential to undertake a provisional countermeasure legitimate throughout the levels of the process (i.e. consultations, deadlines for the precise declare, suggestion of countermeasures).
The brand new regulation gives the Brazilian authorities with a retaliation instrument and a related software in negotiation contexts. It’s related that firms pay shut consideration to the impacts and alternatives created by this new commerce surroundings. They’ll actively take part in future public consultations as a way to legitimately shield their pursuits, and monitor developments arising from the regulation as a way to put together for any potential impacts.
We are going to intently monitor the discharge of the regulatory norm and any further developments and can hold you knowledgeable.
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