ANNOUNCEMENT 25 Jul 2016

The Brazilian Government decreased the foreign ownership limit on airlines and re-established some local labor requirements.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Presidency of Brazil. Presidência de la República. Lei Nº 13.319 de 25 de Julho de 2016. Available at: http://www.planalto.gov.br/ccivil_03/_Ato2015-2018/2016/Lei/L13319.htm

Inception date: 26 Jul 2016 | Removal date: 13 Dec 2018
Still in force

FDI: Entry and ownership rule

On July 25, 2016, when PM 714 was to be converted into Law 13,319, the Brazilian President vetoed the increase on the foreign ownership limit setting it again on 20%. The previous limit had been set at 49%.

Update
On 13 December 2018, the Brazilian Government has adopted Provisional Measure 863/2018 revoking the restrictions on the participation of foreign capital in Brazilian air transport companies (please, see related state acts). 

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 26 Jul 2016 | Removal date: open ended
Still in force

Local labour

When the Brazilian Government issued Law 13,319 on July 25, 2016, they eliminated article 5 from PM 714, setting again the requirement that directors of airlines have to be exclusively Brazilian nationals.

 
N/A