The Federal Government enacted new rules for the investigation of subsidies and imposition of countervailing measures on subsidized imports. It seeks to modernize the Brazilian framework on countervailing measures, by adopting new developments, harmonizing with anti-dumping measures, and improving transparency.
The Federal Government, through Decree n.º 10.839/2021, renewed its regulatory framework on the investigation of the use of subsidies by foreign countries and imposition of countervailing measures on subsidized imports, in line with the WTO’s Agreement on Subsidies and Countervailing Measures. The new framework will replace Decree n.º 1.751/1995 on February 16, 2022.
According to the Ministry of Economy, the new framework seeks to modernize the Brazilian procedures on countervailing measures, stemming from the ministry’s accumulated experience on trade defense and the international developments on trade policy since 1995. The Federal Government investigation on the use of harmful subsidies by foreign countries is carried out by the Subsecretariat of Trade Defense and Public Interest (SDCOM) at the Ministry of Economy.
As a means to improve regulatory predictability, the new decree is designed to match the framework of the Federal Government decree on anti-dumping measures (Decree n.º 8.058/2013), whose update in 2013 (from a framework established in 1995) sought the same modernization effort. In addition, the decree expanded specific subsidy investigation conditions (chapter “VI”), defining additional steps and deadlines for each investigation, as a means to improve transparency.
Furthermore, through Circular n.º 71/2021, the Ministry of Economy launched a public consultation on the modernization of the ministry’s investigation procedures on countervailing measures, currently provided by Ordinance n.º 20/1996. The consultation concerns the addition of four new chapters, related to private sector petitions on countervailing duties, to the revision process of Ordinance n.º 20/1996 under Circular n.º 38/2021. Contributions can be submitted through the ministry’s website until November 30.
