Brazilian Economy: Brazil negotiates a discount on OECD accession fees

Brazilian Economy: Brazil negotiates a discount on OECD accession fees

Brazil has negotiated a reduction in entry fees into the Organization for Economic Co-operation and Development (OECD), which were initially set at €5.1 million (R$27 million). The amount was originally supposed to be paid in April 2023, but was extended after the Brazilian government requested a discount.

Trading details

The new amount agreed upon remains secret by both Itamaraty and the OECD. The reason for the secrecy is the potential backlash from the other five countries that began the accession process in 2022, all of which are paying similar amounts.

Funds related to the new amount are currently being transferred to the Organization for Economic Cooperation and Development, after obtaining permission from the Brazilian government. The request for a reduction in fees is due to the fact that Brazil did not participate in all the procedures carried out by the various government committees established to deal with the country's accession to the organization. Currently, Brazil has 26 thematic committees discussing the terms of its accession.

Brazilian membership status

Under the government of Jair Bolsonaro, Brazil's accession process began in October 2022, and since then a fee of €5.1 million must be paid annually as long as the country remains a candidate. To stop the charge, it is necessary to officially withdraw from the application.

The process is slow and unlikely to be completed before 2026. Notably, accession may be delayed further due to the more moderate pace adopted by the current government regarding the OECD issue.

International scene

Brazil is competing with five other countries nominated for membership in the Organization for Economic Cooperation and Development, including Romania, Croatia, Bulgaria, Argentina and Peru. Among these countries, European countries and Argentina are most likely to join the institution before Brazil.

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Argentina was invited to begin the accession process in 2022, during the previous government of Alberto Fernández. However, the process was revitalized with the inauguration of President Javier Miley, who made this issue a priority of his government.

Membership benefits

According to some anonymous sources within the federal administration, Brazil's joining the OECD could bring many benefits. Many of the policies the body currently advocates are consistent with those sought by Planalto, including improved public policies. Moreover, membership in an international organization can enhance a country's credibility in its role on the global economic arena.

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About the Author: Camelia Kirk

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