OECD invites Brazil for global plan on carbon pricing

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The Organization for Economic Co-operation and Development (OECD) has invited Brazil to participate in a global plan it is articulating on carbon pricing, Valor has learned. The goal of the plan is to avoid trade wars amid the decarbonization of economies.

Carbon pricing is considered one of the good ways to tax polluters for their emissions. The issue is to determine what this price should be and establish a global solution.

The OECD Secretary General, Mathias Cormann, sent a letter to Economy minister Paulo Guedes explaining that his idea is for a group of countries to start working on mapping the carbon price, examining its impact and trying to avoid the multiplication of unilateral measures.

The plan is to gradually draw countries into discussions that could lead to an understanding on a voluntary basis on the best carbon tax and other environmental measures. This could later become a global agreement, along the lines of the international agreement to tax multinational companies more heavily with the support of 136 nations, well beyond the 38 members of the organization.

The Brazilian government has not yet responded, but initial reactions in Brasilia seem positive, amid concern about the unilateral “carbon border adjustment mechanism” announced by the European Union on July 14.

According to that, Brussels will set a carbon price for imports of iron and steel, aluminum, cement, electricity, and fertilizers. The goal is to avoid that polluting industries move to countries where standards are less strict and carbon dioxide emissions are not taxed.

Brazil is the eighth most vulnerable country to taxation in almost $2 billion of exports to the European market, basically on steel products, according to the United Nations Agency for Trade and Development (Unctad).

Source: Valor international

OECD wants Brazil to stop deforestation

The Organization for Economic Cooperation and Development (OECD) recommended that the Brazilian government put an end to deforestation, as one of the “new priorities” in a list of reforms for the country. This is an additional signal for the Bolsonaro administration to review its environmental policy, condemned on the international scene. European countries, starting with France, and now more and more the United States under Joe Biden’s administration, will only accept the OECD to start formal negotiations for the country to enter the entity if Brasília takes concrete actions to protect forests.

Source: Valor international

Bolsonaro: Brazil works to meet requirements, join OECD

The US reiterated its support for Brazil’s entry into the organization

Brazilian President Jair Bolsonaro said today (Jan. 15) Brazil has made significant progress in meeting the requirements to enter the Organization for Economic Cooperation and Development (OECD). The US government announced yesterday (14) it plans to recommend Brazil as the next country to join the organization as a full member.

“This is great news. We had been working on this for months—discreetly, of course. The announcement [by the US] came out; there are over 100 requirements for being accepted; we’ve made a lot of progress, and have overcome Argentina. Brazil has a number of advantages. It’s as if Brazil were about to join the top league in football,” Bolsonaro said after leaving the Alvorada presidential residence this Wednesday morning (15).

In the president’s view, in addition to having the support of the US, Brazil has overcome obstacles from other countries and proved Brazil is a strong candidate.

In a note, the US embassy in Brasília stated that the decision at this point to prioritize Brazil’s candidacy and its efforts to start the admission process is a natural development of the commitment restated by US State Secretary Mike Pompeo and President Donald Trump in October 2019. On the occasion, however, the secretary submitted a document to OECD Secretary-General Angel Gurria backing the entry of Argentina and Romania to the organization.

“The Brazilian government has worked to bring its economic policies in line with OECD norms, prioritizing the admission to the organization to bolster economic reforms,” the note from the embassy reads. “OECD,” the text goes on, “is an organization based on consensus, and any decision to invite countries to start the admission process must be made by all 36 member countries.”

OECD is made up of the world’s most industrialized countries—most of which in Europe and North America—and sets shared parameters for economic and legislative rules for its members.

Source: Agência Brasil

After Bolsonaro’s Flattery And Concessions, Trump Announces Support To Brazil Joining OECD

Jair Bolsonaro ended his meeting with US president Donald Trump on Tuesday (19th) in Washington with a win: the United States’ support for Brazil’s candidacy to become a member of OECD (Organisation for Economic Co-operation and Development), the “rich countries club.”

It was the primary goal of Bolsonaro’s first visit to the United States as president. The Brazilian government sees the OECD membership as a sort of “seal of approval” of its macroeconomic policies.

However, the support didn’t come for free. In exchange, Brazil will give up its special treatment status at the World Trade Organization, WTO, which allows the country to have better terms in trade deals and other privileges.

The trip also cemented Trump and Bolsonaro’s relationship and ideology affinities.

During the press conference at the White House Rose Garden, they exchanged compliments and jokes, showing their chemistry as right-wing populists.

“I have always been a great admirer of the US, and my admiration only grew strong with you as a president,” Bolsonaro said to Trump. “Brazil and the United States are united in the safeguard of freedom, fear of God, and against gender ideology, political correctness, and fake news.”

Trump also didn’t spare praises for the Brazilian leader. “You did an incredible job uniting the country. I’m very proud to hear the president use the expression ‘fake news.'”

The United States is waging war to reform the WTO. One of the main goals is to end the possibility of member countries to define themselves as developing, a label that would warrant them special treatment.


Source: Folha

US Blocks Analysis Process for Brazil to Enter OECD

Nine months after Brazil’s request to become a member of the Organization for Economic Co-operation and Development (OECD), the US is blocking the beginning of the process to analyze the request from inside the OECD.

On Wednesday, February 28, the OECD released a major report in Brasília with diagnoses and solutions for the problems faced by the Brazilian economy.

Brazil values its entrance in the OECD because it would increase international confidence in the country. It could even help to reduce the cost of the public debt, the president of Brazil’s Central Bank, Ilan Goldfajn, said at the launching of the study.

When the request was formally filed in June, it was expected that an answer would follow in up to two months, and the analysis of the process would begin. So far, no answer has been given, as the U.S. has voted against Brazil’s participation.

The U.S. believes that the OECD, which currently has 35 members, should continue as a “wealthy nations’ club.”

That means a smaller group would lead to fewer disagreements. Folha has learned that members of the Brazilian government have been travelling to the U.S. regularly to talk to American authorities and companies to try to gain support.

It is believed, however, that Brazil has a better chance at getting President Donald Trump to support the idea publicly, as the President of Argentina, Mauricio Macri, did last year.

In addition to Argentina, four other countries are now trying to become members of the OECD: Peru, Bulgaria, Croatia and Romania.

Source: Folha de S. Paulo