The Government of Brazil has initiated a public consultation offering companies, business associations or civil society organizations an opportunity to identify legislative and regulatory issues that result in excessive or unnecessary costs of doing business in the country.
The consultation is part of a multiyear plan to reduce the so-called “Brazil Cost,” the umbrella term for obstacles that make the cost of doing business in the country excessive as compared to similar or competitor economies. The Brazilian Ministry of Development, Industry, Trade and Services (MDIC) will lead the plan’s implementation. Vice President Geraldo Alckmin also serves as Minister in MDIC.
The consultation offers companies operating in Brazil an opportunity to raise issues with the administration that represent challenges to their operations in Brazil. The fact that Vice President Alckmin now leads MDIC increases the likelihood that the consultation will lead to policy and regulatory improvements.
The public consultation is open until May 18, 2023. Its scope includes measures in 12 areas that encompass the business life cycle:
- Starting a business;
- Financing;
- Human resources;
- Infrastructure;
- Access to inputs;
- Business environment;
- Global supply chains;
- Taxation;
- Access to public services;
- Innovation;
- Competition; and
- Closing a business.
Each one of the twelve areas have a list of sub-items.
Each submission must clearly identify (a) the specific area and sub-item, (b) the law and/or regulation, as specific as possible (e.g. type, reference number, issuing agency), and (c) the answer to at least one of the three following questions:
- With regard to the laws and regulations of the listed areas of scope, what are the obstacles and barriers that can result in an excessive cost of doing business in Brazil?
- With regard to the laws and regulations cited in question 1, what are the legislative and regulatory improvements that could be implemented with a view to reducing the cost of doing business in Brazil?
- Also with regard to the laws and regulations cited in question 1, what are the international references and practices, if they exist, that could contribute to an eventual regulatory revision?
Covington’s Public Policy team is ready to support clients interested in submitting issues that negatively affect their cost of doing business in Brazil.
If you have any questions concerning the material discussed in this client alert, please contact the members of our Latin America Public Policy group:
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