Brazil published a Decree regulating the Economic Reciprocity Law

In brief

Published on July 15^th, Decree No. 12.551/2025 regulates the Economic Reciprocity Law[1], establishing criteria for the Executive Branch to establish suspensions of trade concessions, investments and obligations relating to intellectual property rights (collectively called “countermeasures”), in response to unilateral measures adopted by a country or economic bloc that negatively impact Brazil’s international competitiveness.[2]

The regulation followed the announcement of unilateral measures by the United States of America (USA), imposing additional tariffs of 50% on all Brazilian imports, as of August 1^st, and indicating its intention to initiate an investigation based on Section 301[3] – which materialized on July 15^th –, concerning allegedly unfair or discriminatory acts, policies and practices adopted by Brazil that affect US trade.[4]

The regulatory Decree establishes that the members of the Interministerial Committee for Economic and Trade Negotiations and Countermeasures – CINCEC[5] and CAMEX[6] are authorized to propose the adoption of countermeasures.

The Decree, in line with the Reciprocity Law, establishes the procedure for imposing provisional and ordinary countermeasures. The procedure for the imposition of provisional countermeasures is faster and is conducted solely by CINCEC. On the other hand, ordinary countermeasures  are subject to a stricter procedure, which requires at least 5 months, involving SE-CAMEX[7], GECEX, and the CAMEX Strategic Council (CEC)[8], as well as the submission to public consultation, so that potentially affected stakeholders can contribute to mitigating the risks and impacts of the proposed measures. Countermeasures, whether provisional or ordinary, can be amended or suspended at any time.

Both provisional and definitive measures are limited to the hypotheses established by the Reciprocity Law[9]: (i) imposition of a commercial duty on imports of goods or services; (ii) suspension of intellectual property rights, under the terms of Law 12.270/2010; and (iii) suspension of concessions or obligations assumed in trade agreements. Countermeasures can be applied individually or cumulatively. Considering that the suspension of intellectual property rights is the exclusive competence of CAMEX[10], under the terms of Law 12.270/2010, expressly referenced by Law 15.122/2025, and that provisional measures are the competence of CINCEC, it is reasonable to conclude that this countermeasure can only be adopted through the ordinary procedure. Furthermore, the measure should be used on an exceptional basis, only when the other countermeasures provided for in the Law are deemed inadequate to reverse the actions, policies, or practices of the unilateral measures.[11]

The MRE[12] will be responsible for notifying any affected trading partners about the possibility of adopting countermeasures at each stage of the procedure, as well as initiating diplomatic consultations, in coordination with the MDIC and after consulting other CAMEX member bodies with competencies relating to the matter, when appropriate. These consultations aim to mitigate or nullify the effects of the measures and countermeasures. In addition, the MRE will monitor any effects resulting from countermeasures and periodically report progress to SE-CAMEX.

Finally, it is important to note that complementary rules to the provisions of this Decree may be published within the scope of its competencies.

More details:

 I.Provisional countermeasures 

Procedure: In this modality, applicable in exceptional situations and following a faster procedure, the CINCEC members assess the possible effects of potential countermeasures, in commercial, sectoral, and economic terms, to consider the impact on the competitiveness of national productive sectors; and in diplomatic relations, such as potential violations of international commitments. Once the analysis is concluded, MDIC may consult representatives of the private sector and other federal bodies before submitting the request for CINCEC’s own deliberation. If approved, CINCEC will publish a Resolution establishing the necessary procedures for implementing the countermeasures. The regulation provides that, after their implementation, provisional countermeasures shall undergo the ordinary procedure for the adoption of definitive measures.

Modification or suspension of provisional countermeasures: CINCEC may establish the adoption, amendment or suspension of countermeasures at any time.

 II.Ordinary countermeasures 

Procedure: The request is submitted to SE-CAMEX, which distributes it to the members of GECEX and other competent bodies to analyze the foreign measure, estimate the economic impact, and identify the affected sectors. SE-CAMEX prepares a report on the legal framework of the countermeasure within 30 days, which can be extended for the same period, and submits it to GECEX for deliberation within the same period.

Proposals for ordinary countermeasures will be subject to public consultation[13] before final deliberation. The CEC will decide on the adoption of the measure within 60 days, also extendable, counted from the submission of GECEX’s recommendation. The analysis may be postponed depending on the progress of diplomatic negotiations.

Modification or suspension of ordinary countermeasures: GECEX may submit a proposal for the amendment, or suspension of definitive countermeasures to the CEC at any time and may set up a working group responsible for drafting the proposal.

[1] Please see our specific Legal Alert on the subject.

[2] Unilateral measures can be understood as actions, policies, or practices that:

1. 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;
2. 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.

[3] Please see our specific Legal Alert on the subject.

[4] The scope of the analysis includes the following areas: Digital commerce and electronic payment services, unfair preferential tariffs, concerns about anti-corruption measures, intellectual property protection, access to the ethanol market, and illegal deforestation, considered  unfair, discriminatory or harmful to US trade. More information available at: https://ustr.gov/about/policy-offices/press-office/press-releases/2025/july/ustr-announces-initiation-section-301-investigation-brazils-unfair-trading-practices.

[5] The Interministerial Committee for Negotiation and Economic and Trade Countermeasures (CINCEC) was created by the Decree. It is linked to the MDIC and is composed by the following members: (i) Minister of State for Development, Industry, Trade and Services, who will chair it; (ii) Minister of Civil House of the Presidency of the Republic; (iii) Minister of Finance; and (iv) Minister of Foreign Affairs. The CINCEC was created to deliberate on the adoption of provisional countermeasures and to monitor negotiations to overcome the unilaterally imposed measures.

[6]  Chamber of Foreign Trade – CAMEX.

[7] Executive Secretariat of the Chamber of Foreign Trade.

[8] The Strategic Council is Camex’s decision-making body that defines the broad lines of Brazilian trade policy. The CEC is composed the Vice-President of the Republic, who chairs it, and ministers from various strategic portfolios, including the Civil House; Development, Industry, Trade and Services; Foreign Relations; Finance; Agriculture and Livestock; Planning and Budget; Management and Innovation in Public Services; Defense; Mines and Energy; and Agrarian Development and Family Farming.

[9] Article 3, paragraph 1 of Law No. 15.122, of April 11, 2025: I – the imposition of a commercial duty on imports of goods or services from the country or economic bloc referred to in Artcile 2 of this Law; II – the suspension of concessions or other obligations of the country relating to intellectual property rights, under the terms of Articles. 2 to 8 of Law No. 12.270, of June 24, 2010; III – other measures to suspend concessions or other obligations of the country provided for in any trade agreements to which Brazil is a party.

[10] Article 6 of Law No. 12.270, of June 24, 2010: “The measures referred to in this Law may be applied individually or cumulatively, in the manner approved by resolution of the Council of Ministers of the Chamber of Foreign Trade – CAMEX, in the following ways (…)” Article 7: “The application of rights of a commercial nature referred to in item VII of Article 6 will be approved by resolution of the Council of Ministers of CAMEX, for a fixed term, through the application of a compensatory percentage on the amount of remuneration to which the persons mentioned in Article 5 are entitled”.

[11] Article 5, sole paragraph of Law No. 15.122, of April 11, 2025: “the countermeasure referred to in item II of § 1 of Article 3 must be used on an exceptional basis, when the other countermeasures provided for in this Law are considered inadequate to reverse the actions, policies or practices referred to in Article 2”.

[12] Ministry of Foreign Affairs.

[13] The preliminary countermeasure proposal will be submitted to public consultation for a period of up to 30 (thirty) days, with the aim of obtaining comments from interested parties and potentially affected trading partners. The results of the public consultation will be deliberated by GECEX.