The law on economic reciprocity has been in force in Brazil since 14 April 2025. It is intended to enable the state to react more quickly and in a more targeted manner to unilateral trade barriers from abroad – especially if Brazilian companies are disadvantaged as a result.

Economic countermeasures enshrined in law

The law gives the government the right to take concrete steps – for example by imposing higher levies on certain services. These include CIDE, a levy for economic intervention, and CONDECINE, which is used to promote Brazil’s film industry. Import restrictions or the suspension of obligations from international trade agreements are also possible.

When can Brazil react?

The law lists three cases in which countermeasures are permitted:

  • If other states violate existing trade agreements,
  • if they enforce stricter environmental regulations than those in force in Brazil,
  • or if they try to influence political decisions with economic pressure.

The measures are to be coordinated with companies and, if possible, accompanied by diplomatic talks.

Adjustments in the field of intellectual property

In the context of intellectual property, the law opens up further operational options for Brazil. Within the provisions of the TRIPS Agreement, which has been an integral part of the WTO legal system since 1 January 1995, protection periods for patents can be shortened or administrative hurdles raised, for example. TRIPS, as the third pillar of world trade law, supplements the GATT (regulates trade in goods) and the GATS (relates to services) and aims to ensure globally standardised protection of intellectual property rights. This set of rules thus creates the framework for harmonising the interests of rights holders and the general public in equal measure.

What German companies should know now

Companies with activities in Brazil, especially those from Germany, should adapt to the changed conditions. Although the law offers tangible instruments for taking action against unilateral trade barriers, it also harbours challenges in the areas of tax law and intellectual property. At a time where protectionist tendencies are on the rise, Brazil is signalling a clear commitment to a fair trade policy with this law, thereby setting new standards for international trade relations.

 

Source: GTAI (In German)