The Chamber approves the establishment of an office for the Organization for Economic Cooperation and Development in Brazil – News

06/29/2022 – 23:09
• Updated on 06/29/2022 – 23:14

The plenary session of the Chamber of Deputies on Wednesday (29) approved the draft legislative decree 253/21, which ratifies the terms of the agreement establishing an office for the Organization for Economic Cooperation and Development (OECD) in Brazil. The text will go to the Senate.

The agreement was signed in Paris (France) on June 8, 2017, and for it to enter into force, it must be approved by the National Congress.

Rapporteur of the proposal, Representative Eduardo Curie (PSDB-SP) stated that the OECD is one of the most important international institutions in the world and has strategic partners in Brazil in its ranks. The group consists of 38 countries, including the United States, Germany, France, the United Kingdom, Australia, Japan, Turkey, Chile, Canada and Mexico.

“Although Brazil is not yet a member of the Organization for Economic Co-operation and Development, its relationship with Brazil is long-standing, as it is a key partner,” Currie said. And the strategy for good relations between Brazil and the international body, he says, is a state policy.

In justifying the proposal, the Brazilian government assessed that the office would enhance the joint activities between Brazil and the OECD, and serve as an effective point of contact between the Brazilian authorities and the OECD secretariat.

“The establishment of the office in Brazil would be particularly appropriate, given the country’s recent request to start the process of accession to the organization, in a letter dated May 29, 2017,,” reads the text signed by former Chancellor Ernesto Araujo and Minister of Economy Paulo Guedes.

According to the text, the office will also work to support OECD missions and events in Brazil and ensure privileges and immunities for the entity’s agents in the performance of their duties.

Discuss
PT, Psol and PSB voted against the order. Representative Afonso Florence (PT-BA) said he disagrees with certain points of the agreement, such as granting tax incentives. “These are incentives that exist as a rule for countries that are part of the OECD, but we are not,” he said.

Attorney General Petrinelli (União-SP) defended the agreement’s approval. He declared, “This country representative office is very important, we all know that the office has a representation similar to the embassy and will allow Brazil to enter the international scenario.”

Warranties
The text of the agreement states, among other things, that the OECD will have legal personality and that its office will enjoy the same privileges and immunities as those granted to the specialized agencies of the United Nations, which will apply to OECD property, assets, agents and experts on mission in Brazil.

Tax concessions should be granted to the OECD office in Brazil, such as tax exemption on the purchase of imported cars to the OECD office; radio and television license fees; and tax on the circulation of goods and servicesICMS) on the domestic consumption of goods and services by the OECD office, is charged on electricity, telecommunications and gas.

Learn about the process of drafting legislative decrees

Reporting – Carol Sequeira
Editing – Pierre Tripoli