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Brazil rescinds expansion of import license requirements

January 30, 2009
World Trade\Interactive

According to reports from the Sao Paulo office of Sandler & Travis Trade Advisory Services Inc., an outpouring of opposition from business executives has prompted Brazil to rescind a significant expansion of its import license requirements just days after it was originally announced. Brazilian President Luiz Inácio Lula da Silva said the measure was a “phenomenal” mistake and ordered the ministries of Development, Industry and Foreign Trade and Finance to suspend what had widely been seen as a protectionist measure. Da Silva said the expanded license requirement was contrary to his government’s foreign trade policy and sent a negative message about the use of protectionism in response to the global economic crisis.

As a result of the withdrawal of the import license requirement, as of Jan. 29 Brazil has reinstated the automatic licensing regime for the affected goods, which included textiles, toys, furniture, articles of iron or steel, machinery, medical and surgical equipment and certain food products. Products that were subject to import licensing before Jan. 26, however, continue to be subject to that requirement.