Brazil: Restrictions to sale of rural land to foreigners
On 23 August 2010, the government of Brazil has formalized a restriction to the sale of rural land to foreigner investors and Brazilian companies in which foreign investors hold more than 50 percent.
The new regime sets the maximum amount of land to be purchased to 50 "Undefined Exploration Modules". Undefined Exploration Modules are a unit of account set in hectares that varies betwenn 5 and 10 ha depending on the region the property is located in. The property need not be continuous.
Property may only be acquired for agricultural, industrial or development purchases that is in line with the central business as specified in the statutes of the foreign investor.
Property purchases of less than three Undefined Exploration Units have been excempt from the stated regulation.
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: 23 Aug 2010
GTA Evaluation: Red
Interpretation Law 5.709 from 1971 by the Attorny General. Published in the Official Gazette on 23 August 2010. Available at http://www.in.gov.br/