IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 27 Jan 2015 | Removal date: open ended
Still in force

State loan

On 27 January 2015, the Brazilian Development Bank (BNDES) announced that is financing Indústria de Produtos Alimentícios Piraquę S.A. with a loan.
 
The company is one of the biggest pasta and cookie producers in the Southeast Region of Brazil and also exports to Japan and the USA. The loan, worth 88 million real (USD 28.94 million), is going to be used to to build a new plant in Queimados (Rio de Janeiro). The sum represents 42% of the total cost of the new site and is backed by BNDES's credit line for fixed assets (BNDES Finem).
 
The measure is considered discriminatory, since in general, the Brazilian Development Bank provides credits with below-market interest rates only to legal persons (private or public) based in Brazil. Besides this, the bank imposes local content requirements on goods (mainly capital goods), services and software financed through its credit lines.
 
The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

234 Bakery products
1905 Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products.
190520 Gingerbread and the like
190531 Sweet biscuits
190532 Waffles and wafers
237 Macaroni, noodles, couscous & similar farinaceous products
1902 Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether or not prepared.
190211 Containing eggs
190219 Other
190220 Stuffed pasta, whether or not cooked or otherwise prepared
239 Food products n.e.c.
1905 Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products.
190590 Other

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