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Average electricity supply tariffs dropped by 13% in 2013 and then rose progressively by 8.8% (2014), 42.6% (2015), and 6.7% (2016) to R$ 421.72 per MWh excluding taxes; these developments (except for 2015) were broadly in line with the average inflation rate of 6.7% in the period 2012-15 (Section 1.2.1). These tariff developments, inter alia, were due to: (...) electricity tariff cuts for households and businesses in 2013 compensated by subsidies to distributors as energy costs rose when low water levels at hydro plants forced a turn to more expensive thermal plants (Section 4.2.4.1); (...)

(...) According to a 2011 Federation of Industries of the State of Rio de Janeiro (FIRJAN) survey at the time of the previous TPR, Brazil had the fourth (out of 27 countries) highest electricity price for industrial consumers; some 48.6% of that price was attributable to federal and state-level taxes (PIS/COFINS and ICMS), as well as to sector-specific charges. [127] (...)

[127] The sector-specific charges finance a variety of programmes, including for cross-subsidization of regions and consumers, safety of the electricity system, research and development, alternative energy sources, and energy conservation. WTO document WT/TPR/S/283/Rev.1, 26 July 2013.

(...) The National Bank of Social and Economic Development (BNDES) provided approximately R$20.8 billion to the Investment Maintenance Program (PSI) in 2015, compared to US$18 billion (R$42.5 billion) in 2014, to finance the purchase of locally manufactured capital goods at administered interest rates. BNDES also provides similar financing for wind and solar farm development, contingent upon progressively more stringent production step-related local content requirements. Wind turbine suppliers of any origin are also eligible to BNDES administered interest rate financing, provided the wind towers are built with at least 70% Brazilian steel by 2016, and photovoltaic suppliers use 60% Brazilian-made components by 2020. (...)

(...) As of October 2015, the import duty on electric and cell-powered vehicles was removed, and the 35% import duty on other hybrid vehicles was reduced, depending on certain specifications such as energy efficiency, in a bid to make these vehicles more attractive to buyers compared to the flex-fuel vehicles.

INOVAR-Auto, operated by the MDIC, provides for a reduction of the IPI tax rates on automobiles manufactured or imported by accredited companies. This discount is in the form of: presumed IPI tax credits; and, reduced IPI tax rates on the importation of vehicles originating in certain countries as well as on certain domestic vehicles. Accreditation is granted, under certain conditions, (...) To be accredited, companies must comply with energy-efficiency requirements and meet at least three of the following four conditions: perform a minimum number of manufacturing steps in Brazil for at least 80% of vehicles produced; invest a minimum percentage of the company's gross revenues in R&D activities in Brazil; invest in engineering, basic industrial technology, and supplier training; and participate in the Brazilian vehicle tagging/labelling programme (Programa de Etiquetagem Veicular, PBEV) for a minimum percentage of the company's output. [157] These requirements were set to rise progressively in the period 2013-17 (Table 4.10). Companies that only trade automotive products are not subject to the requirement of minimum manufacturing steps in Brazil; however, to qualify for the programme, they must meet the remaining three conditions.

[157] The PBEV, a labelling programme only for cars, measures the consumption of fuel, gas and Co2 and No2 emissions. These labelling standards are issued by INMETRO in partnership with MDIC. Every year INMETRO issues the labelling technical regulation according to the type of the vehicle. INMETRO online information. Viewed at: http://www.inmetro.gov.br/consumidor/tabelas_pbe_veicular.asp.

Brazil's commitments under the GATS were last changed in March 2016 with the ratification and insertion of the Fifth Protocol undertakings in the area of financial services. Brazil's Schedule of Specific Commitments contains undertakings in certain business services (including professional services), construction services, courier services, distribution services, financial services, hotels and restaurants services, as well as rail, road and pipeline transport services and those auxiliary to all modes of transport. [176] (...)

[176] Sectors in which there are no commitments include computer, telecommunication, audiovisual, education, health, environmental, recreational, maritime transport, and air transport services.

Brazil maintains two RTAs involving commitments on trade in services: MERCOSUR (ACE 18) (2005); and, Mercosur-Chile Agreement (ACE 35) (2009) (Section 2.5.2.1.1). The entry into force of a third agreement, the Agreement on Economic and Trade Expansion between Brazil and Peru, concluded in April 2016 and covering trade in services, is pending. Brazil has notified one MERCOSUR RTA under Article V of the GATS. In MERCOSUR, Brazil undertook specific commitments on trade in services that went significantly beyond the commitments under the GATS. These commitments covered new sectors (computer, R&D, telecommunication, audiovisual, educational, environmental, and maritime transport services) and improved sectoral coverage and/or the level of treatment bound in a number of other sectors (professional, distribution, financial, and other business services). Under the Brazil-Peru agreement, Brazil undertook market access commitments in sports event promotion and organization, and sport facility operation services.

The sector's 2015-2024 Strategic Plan is aimed at: expanding access to and use of services of an adequate quality and at affordable prices; stimulating competition and sustainability; supporting consumer satisfaction; and, promoting the dissemination of sectoral data and information. (...)

Brazil signed the UN Convention on a Code of Conduct for Liner Conferences in 1975 but has not ratified it yet, as its provisions on rejection of proposals on freight rates put forward by Liner Conferences (article 14, paragraph 6) do not conform with Brazilian law. Brazil is a member of the International Maritime Organization (IMO) and has ratified a number of IMO conventions related to maritime safety, prevention of maritime pollution, and civil liability, among others. During the review period, no action was taken to either sign or ratify any other IMO conventions or recent amendments to those that it is already a signatory. Brazil is a party to the Multilateral Agreement on Inland Waterway Transportation through the Paraguay-Parana Rivers, together with Argentina, the Plurinational State of Bolivia, Paraguay, and Uruguay.

(...) During the review period, Brazil hosted six mega events, i.e. the United Nations Conference on Environment and Development (Rio+20), (...)