Secretariat TPR |
WT/TPR/S/358/REV.1 |
S-IV§77 |
Brazil |
2017 |
Sectors |
General environmental reference |
Energy |
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During the review period, the main regulatory framework of the electricity sector remained virtually unchanged. Law No. 12,783 of 11 January 2013, which governs electricity generation, transmission, and distribution concessions, was amended by Law No. 13.203 of 8 December 2015, which provides for the renegotiation of the hydrological risk of electricity generation and establishes the bonus for the granting of a concession.
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Secretariat TPR |
WT/TPR/S/358/REV.1 |
S-IV§78 |
Brazil |
2017 |
Sectors |
Other price and market based measures |
Energy |
Relevant information
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The National Agency for Electrical Energy (ANEEL) grants concessions for electricity generation, transmission, and distribution through authorizations or public tender procedures; the latter may involve auctions, which are organized by the ANEEL and carried out by the CCEE. The generation concessions granted for hydropower may be extended at the discretion of the Government, only once, for up to 30 years, in order to ensure the continuity and efficiency of the service provided as well as low electricity tariffs. The extension is contingent upon the generator's acceptance of certain conditions set by the ANEEL, including the remuneration tariffs to be applied, a guaranteed supply quota allocation, and quality standards. Quotas are allocated through contracts and they are revised periodically by ANEEL. Regarding self-generation of hydropower, concessions for up to 50MW may be extended once for up to 30 years; generators may sell any non-consumed surplus in the spot market and those not linked to the National Interconnected Grid (SIN) are not bound by the 50MW threshold. In the case of thermo-electric power generation, the renewal of concessions is allowed for up to 20 years and must be requested by the concessionary at least 24 months prior to the expiration of the concession.
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Secretariat TPR |
WT/TPR/S/358/REV.1 |
S-IV§79 |
Brazil |
2017 |
Sectors |
Other price and market based measures |
Energy |
Relevant information
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Setting-up thermoelectric plants with a capacity of more than 5 MW requires ANEEL authorization; the same applies to hydroelectric plants with a capacity greater than 1 MW but equal to or lower than 50 MW. Hydroelectric projects with capacity greater than 50 MW require public-provider concessions in order to trade part of their electricity via auctions. Authorizations for building and operating new thermoelectric generators and certain hydropower plants are granted for 30 years, non-renewable. A renewable period of 35 years is envisaged for new hydroelectric generators. Concessions for building hydropower plants with a capacity greater than 50 MW are granted for 35 years, non-renewable. In 2015, legislation in this area was modified to include the possibility of undertaking existing hydropower plants auctions as a means of collecting a bonus for the concession (a payment for the concession right); two MME ordinances were issued to define the possible bidding evaluation criteria, i.e. through the offering of the lowest tariff (2015) and the additional possibility of bidding by offering the largest payment of bonus (2017). On 25 November 2015, Brazil held one auction under the new regulatory framework that led to the concession of 29 existing hydropower plants, totalling 6 GW of installed power, representing a R$17 billion bonus payment for these concessions. As of March 2017, no auctions have been held under the 2017 alternative criterion.
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Secretariat TPR |
WT/TPR/S/358/REV.1 |
S-IV§83 |
Brazil |
2017 |
Sectors |
General environmental reference |
Energy |
Relevant information
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Average electricity supply tariffs dropped by 13% in 2013 and then rose progressively by 8.8% (2014), 42.6% (2015), and 6.7% (2016) to R$ 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); (...)
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Secretariat TPR |
WT/TPR/S/358/REV.1 |
S-IV§84 |
Brazil |
2017 |
Sectors |
Internal taxes |
Energy |
Relevant information
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(...) 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.
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Secretariat TPR |
WT/TPR/S/358/REV.1 |
S-IV§94 |
Brazil |
2017 |
Sectors |
Loans and financing |
Energy |
Relevant information
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(...) 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. (...)
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Secretariat TPR |
WT/TPR/S/358/REV.1 |
S-IV§99 |
Brazil |
2017 |
Sectors |
Tax concessions |
Manufacturing |
Relevant information
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(...) 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.
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Secretariat TPR |
WT/TPR/S/358/REV.1 |
S-IV§101 |
Brazil |
2017 |
Sectors |
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Manufacturing |
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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.
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Secretariat TPR |
WT/TPR/S/358/REV.1 |
S-IV§113 |
Brazil |
2017 |
Sectors |
Other price and market based measures |
Services |
Relevant information
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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.
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Secretariat TPR |
WT/TPR/S/358/REV.1 |
S-IV§114 |
Brazil |
2017 |
Sectors |
Other measures |
Services |
Relevant information
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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.
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