ANNOUNCEMENT 06 May 2013

In May 2013, the government of Brazil announced a change in the required local inputs to serve domestic customers and a change in its trade finance instruments.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Reuters, 6 May 2013, 'Brazil to deploy 6,000 Cuban doctors in remote areas' (see last two paragraphs): http://www.reuters.com/article/2013/05/06/us-cuba-brazil-doctors-idUSBRE9450U620130506

Ministry of Development, Industry and Trade (MDIC) news item of 6 May 2013 (in Portuguese): http://www.desenvolvimento.gov.br/sitio/interna/noticia.php?area=1&noticia=12382

Colby, Seth. (2012). Explaining the BNDES: what it is, what it does and how it works. CEBRI Artigos, Volume 3, Ano VII, p. 6: http://www.cebri.org/portal/publicacoes/cebri-artigos/explaining-the-bndes

BNDES, Condi??es espec?ficas: http://www.bndes.gov.br/SiteBNDES/bndes/bndes_pt/Institucional/Apoio_Financeiro/clientes.html

BDNES, Itens pass?veis de apoio condicionado: http://www.bndes.gov.br/SiteBNDES/bndes/bndes_pt/Institucional/Apoio_Financeiro/itens_apoio.html


Inception date: 06 May 2013 | Removal date: open ended
Still in force

Trade finance

On 6 May 2013, the Brazilian Minister for Industry, Development and Trade (MDIC), Fernando Pimentel, signed a memorandum of understanding between Cuba and Brazil which grants Cuba a US$ 176 million loan to modernize five Cuban airports: Havana, Santa Clara, Holguin, Cayo Coco and Cayo Largo.
 
The credit is released by the Brazilian Development Bank (BNDES) conditinal on Brazilian content requirements. The money granted to Cuba will flow directly from BNDES to Brazilian companies which then provide for the modernization of the airports. The bilateral discussions in Havana on 6 May 2013 also included an agreement that allows Brazil to hire about 6.000 Cuban doctors (see 'Related Measures').
 
The Brazilian Development Bank provides credits with below-market interest rates to legal persons (private or public) with headquarters and administrations in Brazil.In the case of companies with headquarters abroad, majorityshareholders (private or public) need to have residence in Brazil. Besides this, the bank imposes local content requirementson goods (mainly capital goods), services and software. However, itmakes exceptions when there is no national production of those goods.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 06 May 2013 | Removal date: open ended
Still in force

Local sourcing

On 6 May 2013, the Brazilian Minister for Industry, Development and Trade (MDIC), Fernando Pimentel, signed a memorandum of understanding between Cuba and Brazil which grants Cuba a US$ 176 million loan to modernize five Cuban airports: Havana, Santa Clara, Holguin, Cayo Coco and Cayo Largo.
 
The credit is released by the Brazilian Development Bank (BNDES) conditinal on Brazilian content requirements. The money granted to Cuba will flow directly from BNDES to Brazilian companies which then provide for the modernization of the airports. The bilateral discussions in Havana on 6 May 2013 also included an agreement that allows Brazil to hire about 6.000 Cuban doctors (see 'Related Measures').
 
The Brazilian Development Bank provides credits with below-market interest rates to legal persons (private or public) with headquarters and administrations in Brazil.In the case of companies with headquarters abroad, majorityshareholders (private or public) need to have residence in Brazil. Besides this, the bank imposes local content requirementson goods (mainly capital goods), services and software. However, itmakes exceptions when there is no national production of those goods.

 
N/A
 
N/A