New decree regulates Trade Reciprocity Law in Brazil

The Brazilian government published Decree No. 12,551/2025 today (July 15, 2025), to regulate Brazil’s Trade Reciprocity Law.

This law established criteria for suspending trade and investment concessions, as well as intellectual property rights obligations, in response to unilateral measures adopted by countries or economic blocs that negatively impact Brazil’s international competitiveness.

Decree No. 12,551/2025 created the Interministerial Committee for Negotiation and Economic and Trade Countermeasures, a collegiate body responsible for deliberating on the enforcement of provisional countermeasures (on an exceptional basis) and for overseeing negotiations to overcome unilateral measures that negatively affect Brazil’s international competitiveness.

The interministerial committee will be formally linked to the Ministry of Development, Industry, Trade and Services (MDIC). It will be formed by representatives from the Ministries of Finance, Foreign Affairs, the Office of the President’s Chief of Staff, and the MDIC, resulting in a multidisciplinary and integrated approach to conduct negotiations and define possible countermeasures.

The authority to propose countermeasures belongs both to members of the interministerial committee and of the Executive Management Committee of the Foreign Trade Chamber (GECEX), a collegiate body made up of ten Ministries. These representatives play a fundamental role in assessing the economic, legal, and diplomatic impacts arising from the measures under review, to ensure that decisions are based on consistent technical criteria and aligned with the strategic interests of the Brazilian government.

The procedure allows the interministerial committee to hear from representatives of the private sector and other federal government bodies with correlated responsibilities, It also enables their participation in potential meetings of working groups coordinated by the Foreing Trade Chamber (CAMEX), broadening the range of information and technical input available for decision-making.

Decree No. 12,551/2025 establishes public consultations as a mandatory step for enforcing ordinary reciprocity measures. These public consultations will be conducted by CAMEX, with a 30-day deadline for interested parties and trading partners potentially affected by the measures under review to submit their contributions. As such, Decree No. 12,551/2025 reinforces the importance of this mechanism as a tool for improving government decisions, allowing economic agents, sector associations, and other stakeholders to present data, studies, and suggestions that may support the assessment of risks and benefits of the measures proposed.

According to the procedure for ordinary countermeasures, CAMEX’s Strategic Council (CEC) must deliberate on the enforcement of countermeasures within 60 days (extendable for an equal period) from GECEX’s submission. The CEC is a high-level collegiate body responsible for defining the strategic guidelines of Brazil’s foreign trade policy. It is chaired by the Vice President of Brazil and other State Ministers (Chief of Staff, Foreign Affairs, Finance, Agriculture and Livestock, Planning and Budget, Management and Innovation in Public Services, Defense, Mines and Energy, and Agrarian Development and Family Farming). It is noteworthy that the CEC may postpone the enforcement of these ordinary countermeasures depending on the progress of diplomatic negotiations with the country that originated the restriction or discriminatory practice.

Decree No. 12,551/2025 also establishes that in each stage of the reciprocity measure enforcement, the Ministry of Foreign Affairs must notify the country that imposed the restriction or discriminatory practice. It must also conduct formal diplomatic consultations, in coordination with the MDIC and other competent bodies, to mitigate or nullify the effects of the measures adopted by the trading partner and the countermeasures in force. Additionally, the Ministry of Foreign Affairs must submit periodic reports to GECEX in order to formalize the oversight of diplomatic negotiations.

These countermeasures may be adjusted according to the progress of negotiations and the monitoring of economic impacts.

Demarest’s International Trade and Customs, Intellectual Property, Innovation and Technology, Agribusiness, Life Sciences and Healthcare, and ESG teams continue to monitor the topic and are available to provide further information and clarification.