Understanding the context
On June 11, 2024, the Executive Secretariat of the Foreign Trade Chamber (SE-Camex) of the Ministry of Development, Industry, Commerce, and Services launched a public consultation to gather contributions from companies regarding “sustainable goods” in Brazilian foreign trade.
What are the impacts for Brazilian companies and the goals of the public consultation?
Brazilian companies from various sectors already are or will be impacted by new sustainability-related regulations imposed by other countries. Examples include carbon border adjustment mechanisms (such as the CBAM adopted by the European Union), deforestation regulations, and due diligence requirements in supply chains to ensure compliance with environmental, labor, and human rights standards in product sourcing.
Given the challenges these new rules pose to the competitiveness of Brazilian exports, SE-Camex aims to identify:
- sustainability attributes of goods produced in Brazil;
- costs related to complying with international or national environmental standards;
- the need to build a legal framework for sustainable goods in Brazil; and
- the need for regulation to promote fair competition between domestic and foreign goods in the Brazilian and external markets.
Specific Topics SE-Camex intends to address with the Private Sector
SE-Camex seeks contributions to assist in mapping the following points:
(i) Carbon Emissions Embedded in Products: Gathering companies’ insights on this sustainability attribute and measuring investments already made in this regard, especially to meet requirements of other countries.
(ii) Circular Economy Practices: Mapping circular economy standards already adopted, companies’ strategies, and investments made in this regard, especially to meet requirements of other countries.
(iii) Social Impact in Goods Production: Mapping social and labor issues in the production of goods, particularly concerning the rights of workers, children, local communities, and indigenous peoples, and verifying if investments have been made in this regard.
(iv) Legal Framework: Collecting opinions on existing legislation and identifying the main points for improvement in Brazil.
Why is it interesting for Brazilian companies to participate in the Public Consultation?
Brazilian companies, especially those that export their products, will have the chance to present to the federal government the main obstacles they face to comply with rules related to sustainability imposed by other countries affecting their products. In addition, comments are an opportunity for companies to engage in the Brazilian rulemaking process, ensuring that their interests are considered at an early stage of this process.
How to participate?
SE-CAMEX has provided a list of questions to be answered, available through this link. The Public Consultation ends on August 26, 2024.