Brazilian Economic Reciprocity Law is published to safeguard Brazilian interests against unilateral measures adopted by other countries or economic blocs

In brief

In a context of increasing trade barriers to Brazilian exports, especially the additional tariffs imposed by the United States (US Reciprocal Tariffs) that include Brazilian exports, in addition to environmental restrictions on the export of Brazilian products by the European Union and other countries (such as the Carbon Border Adjustment Mechanism (CBAM) and other carbon control mechanisms (e.g. UK CBAM), imposed by the European Union and other countries), Law No. 15.122/2025 (known as the “Economic Reciprocity Law”) was published yesterday in Brazil.

In more detail

The Law authorizes the Executive Branch in coordination with the private sector “to adopt countermeasures in the form of restrictions on imports of goods and services or measures to suspend trade concessions, investments, and obligations relating to intellectual property rights, and measures to suspend other obligations provided for in any of the country’s trade agreements”.

In other words, it is an instrument that allows the adoption of potential economic retaliation by the Brazilian government to mitigate the impact on economic activity and avoid disproportionate administrative burdens and costs. On the other hand, the rule itself points out that diplomatic consultations will be held with aiming to mitigating or annulling the effects of the measures and countermeasures in question.

The eventual suspension shall be adopted by the Executive Branch in coordination with the private sector if a country or economic bloc adopts actions, policies, or practices that:

• interfere with Brazil’s legitimate and sovereign choices, seeking to prevent or obtain the cessation, modification, or adoption of a specific act, or practice in Brazil, through the application or threat of unilateral application of trade, financial, or investment measures;
• constitute unilateral measures based on environmental requirements that are more onerous than the parameters, norms, and standards of environmental protection adopted by Brazil, such as the Forest Code, the National Policy on Climate Change, the National Environmental Policy, nationally determined commitments under the Paris Agreement, specific attributes of the Brazilian productive system, such as the high rate of renewable energy in the electricity and energy matrices, or particularities and differentials and others; or
• violate or are inconsistent with the provisions of trade agreements or otherwise deny, nullify, or impair benefits to Brazil under any trade agreement. The countermeasure shall be used exceptionally when other countermeasures prove inadequate to reverse the actions, policies, or practices adopted by another country/economic bloc.

In response, the Executive Branch can retaliate through isolated or cumulative measures, that include: (i) imposition of commercial duties against goods or services; (ii) the suspension of concessions and other obligations relating to intellectual property rights; and (iii) other measures to suspend concessions or other obligations of the country provided for in trade agreements in which Brazil is a party.

Specific regulations will be issued to address the implementation of the aforementioned acts, which will initially will establish public consultations for the manifestation of interested parties, followed by the determination of deadlines for analyzing the specific request, and finally the suggestion of countermeasures.

The countermeasures shall, to the extent that it is possible, be proportionate to the economic impact caused by the acts, policies, or practices adopted by the country or economic bloc. However, exceptionally, it is possible to adopt a provisional countermeasure valid during the stages of the procedure (i.e. consultations, deadlines for the specific claim, suggestion of countermeasures).

The new regulation provides the Brazilian government with a retaliation instrument and a relevant tool in negotiation contexts. It is relevant that companies pay close attention to the impacts and opportunities created by this new trade environment. They can actively participate in future public consultations in order to legitimately protect their interests, and monitor developments arising from the regulation in order to prepare for any possible impacts.