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Public procurement preference margin
On December 15, 2010, Brazil passed Law no. 12.349/2010 that lays the basis for discriminatory changes in the country's public procurement. The law allows the establishment of a preference margin for domestic produce for a duration of up to 5 years.
Under this law, Brazilian authorities may introduce public procurement regulation that contains a preference margin of up to 25 percent. A preference margin specifies by how much a domestic supplier's bid may exceed the lowest price offered by a foreign competitor and still be granted the tender.
As is evident from the related measures specified below, the Brazilian authorities have made ample use of this instrument.
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