ANNOUNCEMENT 15 Dec 2010In December 2010, the government of Brazil announced a change in the price advantage granted to domestic producers in certain public tenders.
NUMBER OF INTERVENTIONS
Official Gazette, December 16, 2010 (in Portuguese): http://www.planalto.gov.br/ccivil_03/_Ato2007-2010/2010/Lei/L12349.htm
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.