Brazil withdraws mining, defense, oil exploration and fishing from liberalized services in trade with the EU

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Brasilia - Brazil decided to keep the mining, defense, oil exploration and fishing sectors closed in the free trade agreement signed between Mercosur and the European Union (EU) at the end of last week. In maritime services, European vessels will be able to transport containers between ports in Mercosur countries, for example, from Santos (SP) to Buenos Aires. But service between port terminals within Brazil, such as from Santos to Itajaí (SC), will continue to be prohibited.

Until recently, Brazil was not part of any agreement on public procurement, including that of the World Trade Organization (WTO). Therefore, it has been pressured by developed countries for years to open their bids. In recent years, the Brazilian government signed agreements in this regard with Peru, Chile and the other Mercosur countries, which, however, have not yet entered into force.

Despite these restrictions in the area of ​​services, Brazilian government sources said that Europeans could participate in public tenders in areas such as infrastructure, education (supply of school meals, for example), transport and capital goods.

Brazil has a market of BRL 78 billion in government procurement

Another point of the agreement concerns the equal treatment between Mercosur and EU companies in public procurement. In this respect, the exceptions, in the case of Brazil, will be tenders that focus on incentive programs for science and technology, small businesses and public health. States and municipalities will be invited to participate after the agreement enters into force. Government purchases carried out annually by the EU amount to around 1.3 trillion euros per year. In 2017, Brazil contracted BRL 78 billion in public tenders.

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