Brazil: The "Brasil Maior" plan to advance competitiveness
On 2 August 2011, the government of Brazil announced its plan "Brasil Maior" through which it intends to strengthen the productivity and competitiveness of Brazilian industry. The following components of the plan concern the country's trade policy.
- Companies in enumerated labour-intensive sectors are freed from paying payroll taxes until the end of 2012, namely clothing, footwear, furniture and software. The government expects the measure to cut costs by R25 billion (USD 16 billion). Part of this cost shall be returned through a revenue tax of 1.5 percent (2.5 percent for software). The described scheme may be prolonged if proven successful.
- Introduction of a preference margin for domestic products in the government procurement regulation. Products originating in Brazil shall be allowed to cost up to 25 percent more than the equivalent imported product.
- Faster antidumping procedures. Investigation times shall be reduced from 15 to 10 months for antidumping measures and from 240 to 120 days for provisional antidumping duties. Supporting this goal, the number of antidumping investigators shall be increased from 30 to 120 investigators.
Any Evidence-Based Deliberation:
|Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations?|
|Is there any evidence that alternatives to the proposed measure were considered?|
|Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government?|
|Was such evidence identified?|
|Is such evidence publicly available?|
|Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives?|
|Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken?|
|Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory?|
|Did the government state its intention to review the measure within one year of implementation?|
Date of inception: 2 Aug 2011
GTA Evaluation: Red
Brazilian Government. (2011). Brazil Launches plan to Strengthen National Industrial Productivity and competitiveness. Available at http://www.brasil.gov.br/news/history/2011/08/02/brazil-launches-plan-to...