VIEWPOINT ECONOMY & BUSINESS ENERGY & ENVIRONMENT POLITICS, LAW, SOCIETY INTERNATIONAL AFFAIRS VERBATIM Mr Bolsonaro goes to Economic snapshot Oil & gas in brief Politics in brief Diplomatic briefs Firm news Washington Banking & finance Petrobras news Defense issues International trade Client alerts Business news Renewable energy Legal issues Publications Infrastructure issues Environmental news Social issues Mining & metals Science & technology VEIRANO ADVOGADOS’ REVIEW OF ECONOMIC, LEGAL, AND POLITICAL DEVELOPMENTS MARCH/APRIL VistaBrazil 2019 PHOTOGRAPH: GARY BLAKELEY GARY PHOTOGRAPH: 1 02 18 Mr Bolsonaro goes to Washington: · NUMBER NUMBER · What did he get there? 08 After a weak first foreign outing – to Davos for the musing that he would designate Brazil either as MNNA · VOLUME World Economic Forum in January – Brazilian president or “even, possibly, if you start thinking about it, maybe a Jair Bolsonaro made a working visit to the United States NATO ally.” 2019 from 18 to 20 March. Closer military cooperation is an aspect of the US Besides a photo op of the smiling Brazilian and US desire for support over its policy of seeing off disputed presidents exchanging football shirts, what did the visit Venezuelan president Nicolás Maduro, which has not MARCH/APRIL accomplish? yet yielded results. With Russian materiel and a small contingent of troops now on the ground in Venezuela, Donald Trump announced that Brazil would be given the United States needs Brazil to show Latin American major non-NATO ally (MNNA) status, which comes resolve at ousting Maduro. with preferential access to the purchase of US military equipment and technology and higher priority for At their joint press conference, Trump and Bolsonaro cooperative military training. But Trump went further, reiterated support for Juan Guaidó as interim … VIEWPOINT ECONOMY & BUSINESS ENERGY & ENVIRONMENT POLITICS, LAW, SOCIETY INTERNATIONAL AFFAIRS VERBATIM president of Venezuela (Maduro has since barred him launches use 30 percent less fuel, a considerable saving. from public office for 15 years, and he is facing the pos- Some US$300 billion per year is spent on space launches, sibility of being stripped of immunity from prosecution) and by attracting US companies interested in sending and pledged to work to restore constitutional order to up small satellites at a lower cost from the Alcântara base, the country. Brazil will take a part of the lucrative business. MNNA privileges are certainly significant for Brazil, but The deal has taken 20 years to conclude, largely because NATO membership comes only at the invitation of the of Brazilian sovereignty concerns, and it must still be VistaBrazil is published bi-monthly organization itself. ratified by the Brazilian Congress. Produced by Blakeley Words+Pictures Writer/editor: Camilla Blakeley © 2019 · Veirano Advogados and Blakeley Words+Pictures At the same press conference, Trump expressed support Cooperating on security All text rights reserved for Brazil’s effort to gain membership in the Organisation Also during the visit, the Brazilian Ministry of Justice and VistaBrazil is sponsored by Veirano Advogados of Economic Co-operation and Development (OECD). Public Security signed institutional cooperation agree- Founding Partner: Ronaldo C. Veirano Managing Partner: Ricardo C. Veirano Those are certainly welcome words but again, the matter ments with the US Federal Bureau of Investigation (FBI) Rio de Janeiro is not in the US president’s gift. and the Department of Homeland Security to share Av. Presidente Wilson 231 / 25º andar information on the work of criminal and terrorist groups. 2 20030-021 - Rio de Janeiro RJ - Brasil As well, in exchange for US support for its bid to join 02 (55 21) 3824 4747 Phone 18 (55 21) 2262 4247 Fax the OECD, the US president asked Brazil to forego its The agreement with the FBI includes the exchange [email protected] special status as a developing country with the World of information for identifying fingerprints in criminal www.veirano.com.br Trade Organization (WTO). investigations, while the deal with Homeland Security NUMBER · São Paulo Av. Brigadeiro Faria Lima facilitates the exchange of information about threats on 08 3477 / 16º andar 04538-133 - São Paulo SP - Brasil Perhaps the major achievement of the visit from the the national borders of the two countries. (55 11) 2313-5700 Phone perspective of both sides was an agreement permitting Porto Alegre the United States to launch satellites and rockets from the Bolsonaro also met CIA director Gina Haspel at the · VOLUME Av. Dr. Nilo Peçanha 2900 / 15º andar Alcântara Launch Center – which is run by the Brazilian agency’s headquarters to highlight the importance of 2019 91330-001 - Porto Alegre RS - Brasil Air Force – without sharing its intellectual property. strengthening intelligence in order to fight organized (55 51) 2121 7500 Phone The center’s location near the equator means that crime and drug trafficking. Brasília SCS Qd. 9 Lt. C - Ed. Parque Cidade Corporate - Torre A 12º andar sl. 1203 70308-200 - Brasília DF - Brasil (55 61) 2106 6600 Phone MARCH/APRIL Disclaimer This newsletter is intended to provide general information regarding recent events, developments, and trends in Brazil. It is not intended, nor should it be relied on, to provide legal analysis or legal advice on any of the information covered in the newsletter. Veirano Advogados and Blakeley Words+Pictures cannot ensure against or be held responsible for inaccuracies. To the full extent permissible by law Veirano Advogados shall have no liability for any damage or loss (including, without limitation, financial loss, loss of profits, loss of VEIRANO ADVOGADOS business, or any indirect or consequential loss), however it arises, resulting from the use of any material appearing in this publication or from any action or decision taken as a result of using information presented in the publication. Offices in Rio de Janeiro, São Paulo, Porto Alegre, and Brasília … VIEWPOINT ECONOMY & BUSINESS ENERGY & ENVIRONMENT POLITICS, LAW, SOCIETY INTERNATIONAL AFFAIRS VERBATIM PHOTOGRAPH: ISAC NÓBREGA/PR/WIKIMEDIA COMMONS NÓBREGA/PR/WIKIMEDIA ISAC PHOTOGRAPH: What about trade? on expanding Brazil sugar exports to the United States. The two presidents agreed to enhance the work of the United States–Brazil Commission on Economic and Nor did the leaders focus any of their discussion on Trade Relations in order to explore new initiatives to China – Brazil’s main investment and trade partner, facilitate trade investment and good regulatory practices. which Bolsonaro will visit later this year. Trump and Bolsonaro also announced a new phase of the Brazilians might be forgiven for thinking that the trade United States–Brazil CEO Forum, as well as the creation concessions were somewhat lopsided. of a US$100 million Biodiversity Impact Investment Fund to boost sustainable investment in the Amazon. Making nice and talking tough The presidents also agreed to establish a United States– The tangible achievements of the visit were perhaps Brazil Energy Forum to facilitate energy-related trade outweighed by the hyperbolic praise the two leaders and investment. lavished on one another. Beyond the announcement of good intentions and study Meeting Trump on 19 March, Bolsonaro told his coun- groups, what was actually agreed on the economic front? terpart that his longstanding admiration for the United Bolsonaro’s rhetoric and behavior in Washington sharply divided Brazilians 3 States had only increased “with the arrival of your 02 18 Brazil unilaterally decided to drop tourist visa require- excellency in the presidency.” Trump, Bolsonaro made pronouncements about so- ments for US citizens, no doubt hoping for a boost in called fake news propagated by Brazil’s media, which he tourism revenue. On the US side, the joint statement Trump referred to Bolsonaro’s “tremendous bravery” asserted is “dominated by the left wing.” NUMBER · released following Bolsonaro’s visit indicated that the at recovering from being stabbed while on the campaign 08 United States would “take the steps necessary to enable trail, lauded his “vision for freeing the private sector and Bolsonaro also predictably endorsed the American presi- Brazil to participate in the Department of Homeland opening the economy,” and pointed to what their two dent’s border wall project and declared that “The vast Security’s Trusted Traveler Global Entry Program.” nations shared: “an enduring love of faith and family majority of potential immigrants do not have good inten- · VOLUME and country.” tions.” Over a million Brazilians live in the United States. On the Brazilian side was a pledge to accept 750,000 2019 tons of tariff-free US wheat exports and permit the He also called Bolsonaro’s son, Congressman Eduardo Bolsonaro’s rhetoric and behavior sharply divided resumption of US pork exports to Brazil, suspended Bolonsaro “fantastic,” referring to his role in international Brazilians both at home and abroad. Supporters consid- since 2017. relations. Bolsonaro junior, who was along for the trip, was ered the visit a big reputational win. Others thought the recently named as the South American representative Brazilian leader naively made trade concessions without MARCH/APRIL Not on the table was any opening of the US market to for former White House advisor Steve Bannon’s winning much in return, and found his obsequiousness Brazilian beef. The United States agreed only to “expedi- international far-right network, the Movement. a national