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The U.S.-Brazil CEO Forum
2022 U.S. Government Progress Report

The U.S. - Brazil CEO Forum - U.S. Government Progress Report

U.S. Government Progress Report on the Joint Recommendations of the U.S.-Brazil CEO Forum

January 2022

The U.S. Government (USG) is pleased to present this Progress Report in response to the joint recommendations made at the last meeting of the U.S.-Brazil CEO Forum (Forum), held on November 26, 2019, in Washington, D.C. Due to the COVID-19 pandemic, the Forum held a virtual meeting on September 28, 2020, to assess progress on the 2019 Joint Recommendations. There were no new recommendations issued at the 2020 virtual meeting so the focus remained on efforts to respond to the 2019 Joint Recommendations. This report outlines progress made in advancing the issues identified by the private sector members of the Forum. The United States is committed to strengthening our bilateral economic and commercial relationship with Brazil, and the Forum remains an important tool in identifying policies that promote greater trade and investment between our two countries. The report below summarizes recommendations by category and reports on USG efforts to address them.

Tax, Trade, and Investment

Brazil is the United States’ 9th largest trading partner and an important source of foreign direct investment. In 2020, U.S.-Brazil bilateral trade in goods reached nearly $58.5 billion with $35 billion in U.S. exports to Brazil and $23.3 billion in Brazilian exports to the United States. Our two countries also have robust trade in services, and in 2019 (latest available data), the United States exported $24.6 billion in services to Brazil while importing services worth $6.8 billion.
In 2020, Brazilian direct investment in the United States grew to nearly $50 billion. More information on the investment relationship between Brazil and the United States can be found here: https://www.trade.gov/sites/default/files/2021-09/Brazil.pdf

KEY RECOMMENDATIONS

• Trade Policy: The Forum CEOs detailed steps the USG and the Brazilian Government (GOB) could take to improve trade policy with the long-term goal of completing a free trade agreement and supporting Brazil’s intent to accede to the Organization for Economic Cooperation and Development (OECD).

o    Progress:

  • OECD: The National Security Council reiterated the U.S. Government’s support for Brazil’s accession to the OECD. Discussions among OECD members regarding the accession process for aspiring member countries remain ongoing.
  • ATEC Protocols: In October 2020, the United States and Brazil completed an update to the Agreement on Trade & Economic Cooperation (ATEC) by completing the historic U.S.-Brazil Protocol to the ATEC Relating to Trade Rules and Transparency featuring annexes on Customs Administration and Trade Facilitation, Good Regulatory Practices, and Anti-Corruption. The Agreement has been approved by the Brazilian Congress and will go into effect upon completion of an exchange of letters between the two countries. Almost all provisions will be implemented upon entry into force.  

o    Next Steps: The United States and Brazil will continue working bilaterally, including through the U.S.-Brazil Commercial Dialogue (Commercial Dialogue) and U.S.-Brazil Defense Industry Dialogue (DID) to support Brazil’s implementation of the protocol.

• Regulatory Cooperation: Regulatory issues are the non-tariff barrier most often cited by the trade community. The CEOs encouraged both governments to promote the use of Good Regulatory Practices (GRPs) and regulatory cooperation. The CEOs recommended that the USG and GOB exchange best practices for GRP implementation on topics such as notice and comment, regulatory impact analysis, transparency, and risk assessment, among others. The CEOs also recommended both governments engage in regulatory cooperation at the sector level.

o    Progress:

  • Promoting the Use of GRPs: As noted above, the ATEC Protocols on Trade Rules and Transparency were a major milestone in the U.S.-Brazil trading relationship and include a state-of-the-art Annex on GRP that will advance transparency and public participation in Brazil’s rule making process. Through the Commercial Dialogue, the U.S. Department of Commerce (Commerce) continues to focus on promoting key GRP principles, including the use of notice and comment, regulatory impact analysis, and a risk-based approach to decision making. The Commercial Dialogue has executed many different virtual events since November 2019, discussing topics such as interagency coordination, regulatory oversight, regulatory review, alignment with international standards, stakeholder engagement, and the use of risk assessment in the regulatory process. These activities have supported important regulatory reforms in Brazil, including the ongoing development and implementation of Brazil’s Regulatory Agencies Law, Economic Freedom Law, and associated implementing decrees. Additionally, the Office of the U.S. Trade Representative (USTR) led a series of workshops in 2021 on Western Hemisphere Leadership in Good Regulatory Practices, with Brazilian participation.
  • Environmental Protection Regulations & Trainings: Since November 2019, the U.S. Environmental Protection Agency (EPA), in collaboration with the U.S. Geological Survey (USGS), has been providing a range of water and sanitation training to the Brazilian National Water and Sanitation Agency (ANA), which includes examples of how EPA develops goals and regulations related to complex water and sanitation issues. EPA has also hosted three webinars for the Brazilian Ministry of Environment (MMA) and the U.S. and Brazilian private sectors to share EPA’s regulatory approach to marine litter, water and sanitation infrastructure finance, and land contamination.
  • Medical Devices & Products: The U.S. Food & Drug Administration (FDA), along with industry and regulatory agencies, completed a Joint Webinar Series on the Medical Devices Single Audit Program and manufacturing quality control related to the International Organization for Standardization’s ISO 13485 standard. Further, FDA and the Brazilian Health Regulatory Agency (ANVISA) are working to renew a Statement of Cooperation and are engaged on Project Orbis, an effort to promote the authorization of oncological products. Through the International Medical Devices Regulators Forum, FDA and ANVISA are exploring a single review program. In addition, to strengthen collaboration to rapidly implement medical device sector-specific regulatory convergence and cross-sectoral GRPs, the U.S. Agency for International Development (USAID) is funding the Medical Device Regulatory Convergence (MDRC) project under the Standards Alliance, a public-private partnership between USAID and the American National Standards Institute (ANSI). Brazil is among the participating countries. The multi-year project will establish international benchmarks for medical device regulatory convergence and assist participating countries in implementing structural policy changes to better align medical device regulatory frameworks, technical regulations, standards, and conformity assessment requirements. This will result in increased regulatory efficiency, improved patient access to innovative healthcare technologies, and lowered barriers to trade.
  • Energy Sector Regulation: Under the U.S.-Brazil Energy Forum (USBEF), the U.S. Departments of Energy (DOE) and the Interior have worked with their Brazilian counterparts – such as Brazil’s Institute of the Environment and Renewable Natural Resources (IBAMA). Since October 2020, Interior’s Bureau of Ocean Energy Management and IBAMA have held exchanges on oil and gas environmental licensing and on offshore wind and environmental impacts. Meanwhile, from November 2020-August 2021, DOE has worked with Brazilian counterparts to develop scientific research and a roadmap on strategies to grow a Brazilian market for natural gas-based heavy-duty vehicles to encourage a shift away from diesel fuel.
  • Standards & Conformity Assessment: Commerce, through the Commercial Dialogue, is working to facilitate bilateral trade by improving the mutual understanding of each country’s regulatory system while fostering opportunities for regulators to share experiences and best practices. This is being done with the aim of better aligning or facilitating acceptance of standards and conformity assessment requirements in each market. In support of these efforts, in May 2020, the Dialogue held a Standards & Conformity Assessment Virtual Workshop with more than 90 attendees from 16 regulatory agencies. The event covered a range of sectors, from consumer products to automobiles and telecommunications. Following up on this discussion, in September 2020, the Dialogue hosted a second public-private workshop, attracting more than 300 participants. This workshop focused on the role of accreditation and conformity assessment bodies in the United States and Brazil, opportunities and challenges related to accepting conformity assessments in respective markets, and the use of post-market surveillance in each market. The workshop series was well-timed to inform ongoing regulatory reforms at several Brazilian regulatory agencies, including the National Institute of Metrology Standardization and Industrial Quality (INMETRO).
  • Military Product Certifications: Under the DID, and at the behest of U.S. industry, the U.S. and Brazilian Governments have agreed to exchange best practices on select military product certifications (e.g., NIJ06 standard) and facilitate commercial activity through use of current standards. This work will also promote greater collaboration between Brazil’s Ministry of Defense and INMETRO, the utilization of WTO notification channels, as well as educate Brazil’s military on regulation processes and standards to promote high-level trade in aerospace, defense, and security products and services.

o    Next Steps: The Commercial Dialogue renewed its good regulatory practice and standards and conformity assessment-focused work plans at its October 2021 plenary, setting an ambitious agenda responsive to the Joint Recommendations. These include the use of regulatory impact assessment, transparency and stakeholder engagement, intergovernmental coordination, technical cooperation and assistance, and regulatory improvement. The Commercial Dialogue also announced its intention to support exchanges on topics including accreditation and cybersecurity, and to explore additional topics ranging from trade in remanufactured goods to climate-related technologies.  
 
• Trade Facilitation: Movement of goods has been featured in Forum joint recommendations since the Forum’s inception in 2007. Key 2019 recommendations included the adoption of an Authorized Economic Operator Mutual Recognition Agreement (AEO MRA), implementation of the World Trade Organization Trade Facilitation Agreement (WTO TFA), and regular engagement between the customs agencies and private sector in both countries with the goal of streamlining documentation and processing requirements.

o    Progress: The two governments have made great strides in the area of trade facilitation. The ATEC Protocol Customs Administration and Trade Facilitation Annex expands on the WTO TFA and includes: commitments for online publication of customs and other border information; a single window for import, export and transit; electronic systems for traders; greater acceptance of electronic documents; mechanisms to help ensure consistent customs treatment from port to port; and, expanded customs cooperation, including on trade enforcement.

  • Despite challenges imposed by the pandemic and inability to conduct the necessary verification visits, the United States and Brazil continue to move forward towards an AEO MRA. U.S. Customs & Border Protection (CBP) expects to resume in-person verification visits in 2022 and work towards completion of the AEO MRA.
  • Through the Commercial Dialogue, the United States and Brazil have an active agenda on trade facilitation issues. The Commercial Dialogue has worked to support Brazil’s adoption of electronic sanitary and phytosanitary certificates (e-phyto), supporting increased trade in agricultural goods by facilitating conversations between the Global Alliance on Trade Facilitation (GATF) and Brazil’s Ministry of Agriculture, Livestock, and Food Supply (MAPA). GATF and MAPA have developed an action plan that will complement similar work supported by the Inter-American Development Bank.
  • The Commercial Dialogue also has a strong trade facilitation risk management agenda, and in 2021 brought together U.S. and Brazilian regulators and their respective private sectors for a productive discussion on risk management at the border. Furthering risk management collaboration, CBP conducted nine seaport and airport assessments in Brazil in August with Receita Federal and conducted two customs processing and risk management training events in the fourth quarter of 2021.

o    Next Steps: The Commercial Dialogue will hold best practices discussions related to express delivery, remanufactured goods, and risk management. 

• Digital Trade: CEO Forum joint recommendations related to digital trade focused on developing common approaches to policies that promote cybersecurity, free flows of data, and avoid the costs of data localization requirements. Recommendations also included the development of a multilateral approach towards a digital tax.

o    Progress: The Commercial Dialogue Trade in the Digital Economy Working Group (TDEWG) focuses on ways to prevent trade barriers in this area. Between 2019 and 2021, the working group has held events, and plans ongoing engagement, on topics including cross-border data flows, data privacy and cybersecurity. The working group’s cross-border data flows workstream has discussed data privacy and explored potential mechanisms for interoperability for personal data transfers from Brazil to the United States. The activities serve to bridge regulatory gaps that complicate cross-border data flows of consumer data and seek to provide certainty through harmonization.

  • Data Privacy, Data Flows, & Interoperability: In 2021, the TDEWG engaged with Brazil’s Data Protection Authority (ANPD) and co-hosted two roundtables on best practices in data protection and possible mechanisms (e.g., international certifications) that could be jointly recognized to enable companies to transfer data internationally and enable interoperability between the U.S. and Brazilian privacy regimes.

o    Next Steps: The TDEWG will incorporate activities related to cybersecurity into its 2022 agenda. Upcoming activities will focus on the U.S. and Brazilian approaches to address constantly changing cybersecurity demands in order to achieve regulatory compatibility and alignment to facilitate trade. The TDEWG is also exploring possibilities for sector-specific programming, including a health data interoperability event in light of the COVID-19 pandemic.

• Double Taxation: The CEOs called on the governments to negotiate a Double Taxation Agreement (DTA).

o    Progress: Brazil continues to work with the OECD on developing a plan for adherence to OECD tax standards. As Brazil moves towards adherence to OECD tax standards and makes the necessary legislative changes, the United States will consider reengaging in DTA discussions.

• Global Entry Implementation: Forum CEOs recommended the inclusion of Brazil in the U.S. Global Entry program, encouraging it to be done as soon as possible.

o    Progress: The USG and GOB are working towards Brazilian inclusion in the U.S. Global Entry program and are entering the technical testing phase.

o    Next Steps: The two governments are finalizing the technical requirements for implementation of the Global Entry program and expect to open the system to qualified Brazilian applicants soon.

• Utilizing the Private Sector as an Anti-Corruption Ally: To promote transparency, combat corruption, and create effective enforcement mechanisms, CEO Forum members recommended that the private sector be seen as a partner to public officials in the fight against corruption in international trade.

o    Progress: Commerce, through its sector-focused Business Ethics program, has brought U.S., Brazilian, and other regional medical device and pharmaceutical private sector partners together to develop a consensus framework of business ethics principals. In partnership with Ética Saude, the Brazilian medical ethics association, several codes of ethics have been drafted and adopted by companies and associations in Brazil, the United States, and across the Western Hemisphere. In addition, similar work has begun between the United States and Brazil in the aerospace and defense sectors. Under the DID, U.S. and Brazilian industry associations have jointly developed four codes of ethics on relevant topics, which will then be introduced to stakeholders in the rest of the region for further refinement and regional adoption. Such regionally-harmonized codes reduce the cost of doing business for all and level the playing field – particularly for small- and medium-sized companies. Additionally, the ATEC Protocols on Trade Rules & Transparency includes an Annex on Anti-Corruption that includes numerous commitments.  These include obligations to adopt and maintain measures to prevent and combat bribery and corruption, as well as policies and procedures to report corrupt acts and protections for those who report corruption.

o    Next Steps: In 2022, the DID Policy Working Group will convene a regional meeting to introduce the new draft codes of ethics to other governments and aerospace-defense industries in the region. In the health sector, efforts will focus on seeking high-level endorsement of the outcomes from the Americas Health Ethics Forum at the Summit of the Americas hosted by the United States in 2022. The USG also plans to foster transparency and accountability in the engineering and construction sector, with the aim of helping small- and medium-sized enterprises (SMEs) and domestic workers benefit from large infrastructure projects.  

• Strengthening the Multilateral Trade System: CEO Forum members recommended that the United States and Brazil reaffirm their commitments to the global trading system through the World Trade Organization (WTO).  

o    Progress: The United States and Brazil fully support the multilateral trading system and remain committed to working through the WTO. The United States and Brazil have been close partners on customs-related initiatives and recently submitted a proposal supporting accelerated implementation of the WTO TFA in response to the challenges posed by the global pandemic. The two countries also collaborated on a proposal formalizing engagement with the private sector to obtain its feedback on TFA implementation. The United States and Brazil have also co-sponsored a WTO Ministerial Declaration responding to modern sanitary and phytosanitary challenges, including climate change, population growth, the pace of innovation, shifting pest and disease pressures, and environmental sustainability. In doing so, the USG and GOB affirmed that a transparent, science- and risk-based approach is essential to meeting these challenges. The United States and Brazil also agree that the WTO moratorium on customs duties applied to electronic submissions should be extended since the moratorium has supported the rapid growth of digital trade over the past two decades.

o    Next Steps: Brazil and the United States, led by the Office of the U.S. Trade Representative, will work with other WTO Members to help establish mechanisms through the WTO TFA Committee for the private sector to provide feedback on TFA implementation in 2022.

Technology & Communications 

Technology and communications are critical components in the U.S.-Brazil trade relationship. Recognizing the role that technology plays in driving competitiveness and innovation across all sectors, it remains at the forefront of U.S.-Brazil engagement. The COVID-19 pandemic increased our reliance on technology to facilitate the continued movement of goods, services, and data across borders. As a result, areas such as internet access, data infrastructure, and communications technology remain vital for continued development. Both the United States and Brazil recognize the need to cooperate on technology and communications to ensure alignment between our countries and industries. Progress made on recommendations in this section highlights the work both the U.S. and Brazilian governments are doing related to technology and communications. 

KEY RECOMMENDATIONS

• Internet Access: CEO Forum members recommended that the USG assist Brazil in establishing polices and regulations to minimize costs and accelerate terrestrial fiber expansion, thereby increasing internet access throughout the country.  Forum members also recommended that the USG assist the GOB in efforts to promote a “Dig Once” policy.
o    Progress: The U.S. Trade and Development Agency (USTDA) has funded technical assistance for broadband connectivity as well as digital inclusion in remote locations.  

o    Next Steps:  USTDA is also supporting the adoption of best-value based procurement methodologies among public information and communications technology (ICT) sector entities across the country.

• Cybersecurity: To improve security, cybersecurity, and crime prevention, Forum members recommended the adoption of intelligent technological solutions, as well as the promotion of collaboration and strategies for alert sharing to combat cyber-attacks, digitalization of security agency records, and the training of data security experts.

o    Progress: USTDA-funded studies focused on cybersecurity for the State Bank of Pará, Equatorial Telecom, Companhia de Transmissão de Energia Elétrica Paulista, and Companhia Paranaense de Energia. USTDA is also funding/funded studies for ANPTrilhos, Brazil’s National Association of Passenger Rail Operators, and water utility Companhia Pernambucana de Sanaemento. These projects focus on the use of video analysis, artificial intelligence, and big data.

  • Commerce’s DID Policy Working Group has supported activities aimed at exchanging best practices and information sharing on cybersecurity with Brazil’s Ministry of Defense. In May 2021, the DID, in partnership with the U.S. Department of Homeland Security’s Cybersecurity and Information Security Agency, held a workshop on “U.S. Partnership-Based Approach to Infrastructure Security & Resilience.”  

o    Next Steps: The DID Policy Working Group will host additional activities to focus on topics such as sharing information on U.S. Government cyber structure and division of responsibilities, best practices on the U.S. Department of Defense collaboration with the U.S. defense industry on cyber threat sharing, and approaches to security-focused government procurements. 

• 5G & Telecommunications: To expand 5G coverage in Brazil, CEO Forum members recommended the development of a new information technology and telecommunications ecosystem, and a Brazil-wide regulatory framework for installing and operating antennas.

o    Progress: Commerce, through the Foreign Commercial Service in Brazil, is working to promote U.S. technologies to the telecommunications industry in Brazil and maintains close and ongoing communication with Vivo and Claro, two of the largest Tier 1 telecommunications operators in country. With these carriers, Commerce has organized a series of 5G-related roundtables, featuring discussions on 5G best practices and deployment. Commerce also engaged with TIM Brazil in October 2021 and discussed opportunities for future collaboration.  

  • Regarding telecommunications regulations, Commerce is working to advance conversations between U.S. tower developers and Brazilian regulators at the Federal and State levels. Commerce also hosted an interagency discussion with the Ministry of Communications and ANATEL on antenna regulations during a visit to Brazil by U.S. Federal Communications Commissioner Geoffrey Stark.

o    Next Steps: USTDA hired a technical expert to evaluate potential 5G projects in Brazil. 

•Digital Transformation: Forum CEOs recommended the sharing of knowledge and experience in digital transformation processes and technology with a focus on the Internet of Things (IoT) and Industrial Internet of Things (IIoT) applications, analytics, industry 4.0, and blockchain as applied to industries such as health, logistics, public mobility, trade, and education. 

o    Progress: The Commercial Dialogue’s TDEWG has led USG efforts to encourage Brazilian adoption of emerging technologies including IoT, AI, cross-border data flows, and Wi-Fi 6 with sector-specific approaches focused on agribusiness, health, and telecommunications. In August 2020, Commerce hosted an AI-focused webinar titled “A Conversation on Artificial Intelligence - Brasil and U.S. Perspectives.” This event included two virtual sessions: “Building a Robust AI Ecosystem - Commercial Perspectives” and “Advancing Trustworthy AI”. Additionally, in February 2021, Commerce hosted an IoT roundtable that included panel discussions on U.S. and Brazilian approaches to IoT security and best practices for policy development and implementation.  

  • USTDA is also active in supporting digital transformation by funding a passenger rail study to analyze the incorporation of IoT into rail systems. USTDA has also hired a technical expert to evaluate Brazil’s ICT sector and identify digital transformation-related opportunities in Brazil. 
  • Digital transformation and application of emerging technologies is an important topic for the Biden-Harris Administration. In October 2021, U.S. National Security Advisor Jake Sullivan discussed ICT and related technologies with his Brazilian counterpart Admiral Flavio Rocha, who also met with National Security Council ICT officials.

o    Next Steps: In early 2022, the TDEWG will hold an information exchange event focused on adoption and diffusion of Technology 4.0 – specifically related to AI and IoT applications with the potential to drive productivity for the agribusiness sector.

• Space Technologies: With the growth in demand for commercial space activities and technologies, the CEOs recommended development of a framework for trade in space-related technologies, including a licensing regime, joint research and development tools, support for communications connectivity at Alcântara, and Brazilian legal and regulatory reforms that promote competition and private sector inclusion.

o    Progress: The Federal Aviation Administration’s (FAA) Office of Commercial Space Transportation (AST) and Office of International Affairs (API) continue to cooperate with the GOB on public safety regulations for commercial space transportation. To support the fast-growing commercial space transportation industry, the FAA held several productive bilateral meetings with the Brazilian Space Agency (AEB) during 2020-2021. In December 2021, FAA Associate Administrator Wayne Monteith met with the Brazilian Space Agency President Carlos Moura to sign a letter of intent promoting further collaboration and joint cooperation in the area of commercial space transportation activities. 

  • In addition, representatives from Brazil attended an FAA international virtual workshop on Part 450 launch and reentry regulations in 2021. This collaboration yielded a positive outcome when Brazil published new Launch Operator License and Launch Authorization regulations in August 2021 citing the FAA’s influence.  
  • In tandem, Commerce’s DID Space Working Group executed an ambitious action plan in 2020, which included: advocating to the Brazilian Congress for swift ratification of the U.S.-Brazil Research, Development, Testing and Evaluation Agreement; providing regular input to Brazilian space-related agencies to promote a competition- and business-friendly regulatory framework; keeping U.S. space companies informed of commercial opportunities and market developments; and partnering with Brazilian trade associations to advocate for the ZEMA Bill, which would create a Maranhão State Export Zone.  

o    Next Steps: The DID Space Working Group will continue its aforementioned efforts, with additional plans to develop a reference guide for U.S. companies interested in doing business with the Alcântara space launch center and partner with the DID Policy Working Group to explore bilateral cooperation and exchanges on space-related cybersecurity issues.  

Infrastructure 

Brazil has a large and growing infrastructure gap, estimated to reach $1.2 trillion by 2040 according to the Global Infrastructure Hub. To address this gap, the Government of Brazil has prioritized privatization and the release of concessions for major state-owned assets, creating more flexible models for authorizations and concessions of infrastructure, and advancing regulatory and legislative reforms to incentivize domestic and foreign private investment in infrastructure. In an effort to encourage increased U.S. company participation in this sector, CEO Forum members stressed the importance of continued work to improve transparency, implement more open procurement practices, improve related regulatory practices and standards, and engage in investment promotion activities.  

KEY RECOMMENDATIONS

• Transparent Projects Initiative: Forum members recommended that both countries establish a joint “Transparent Projects” Initiative. The recommendation focused on the importance of regulatory transparency, predictability, the use of regulatory impact assessments, stakeholder engagement, and public notice and comment for public procurements and infrastructure-related regulation.

o    Progress:

  • Promoting Horizontal Good Regulatory Practices: As noted in the section on regulatory cooperation, Commerce’s Commercial Dialogue continues to focus on promoting key GRP principles at the horizontal level, including several topics identified in this set of recommendations, such as transparency, predictability, evidence-based decision making, and internal coordination. The group has executed many different virtual events since 2019, discussing the topics of interagency coordination, regulatory oversight, regulatory review, alignment with international standards, stakeholder engagement, and the use of risk assessment in the regulatory process. A wide range of U.S. and Brazilian regulators participated. These activities have supported important regulatory reforms in Brazil, including the ongoing development and implementation of Brazil’s Regulatory Agencies Law, Economic Freedom Law, and their implementing decrees. The GRP Annex to the Trade Rules and Transparency Protocol will also support promotion of good regulatory practices in the spirit of this recommendation.  
  • An Agenda for Risk Mitigation in Infrastructure: As noted in the section on regulatory cooperation, since November 2019, EPA, in collaboration with USGS, has provided a range of water and sanitation training to ANA, which includes examples of how EPA develops goals and regulations around water and sanitation issues. EPA also provided three webinars to MMA on marine litter, water and sanitation infrastructure finance and land contamination, which outlined EPA’s regulatory approach within these areas.
  • Contracting and Public Procurement Transparency: USTDA organized in-country workshops and study tours to the United States focused on international public procurement as well as value-based procurement methodologies and best practices. 

o    Next Steps: Commerce’s Commercial Dialogue GRP Work Plan was renewed at the October 2021 plenary, setting an ambitious agenda of workshops on topics including the use of regulatory impact assessment, transparency and stakeholder engagement, regulatory improvement, intergovernmental coordination, and technical cooperation and assistance. 

•Underground Infrastructure: Forum CEOs recommended a meeting of U.S. and Brazilian public and private underground utility stakeholders to exchange best practices and policies with respect to placement and protection of underground assets.

o    Progress: The U.S. Department of Transportation is exploring a “Call Before You Dig” Seminar to present to Brazil the history of U.S. utilities programs and research that may benefit Brazil in the establishment of their own program. This seminar will likely take place in early 2022 and include representatives from the USG, GOB, and private sector.

o    Next Steps: The USG will engage GOB officials and private sector leaders to develop an independent Brazilian program. 

• Exports of Infrastructure Technology: To support the movement and trade of goods and the economic impact of export growth, the CEOs asked that the USG and GOB identify technologies and best regulatory and business practices with the potential to increase exports of infrastructure technology, parts, and goods. 

o    Progress: Commerce has been monitoring the progress of MINFRA’s new rail provisional measure (MP) that allows private sector companies to request authorization to build and operate new railways. This MP expands opportunities for exports of U.S. rail equipment and technologies.

o    Next Steps: Commerce, through the Foreign Commercial Service in Brazil, is developing plans to support U.S. infrastructure and rail technology exports in alignment with the MP. 

•Infrastructure Investment Promotion: CEOs recommended that the USG support GOB-led investor roadshows to educate U.S. investors on infrastructure investment opportunities in Brazil, and work with the GOB to develop the structure around debt guaranty funds to reduce investment risk.

o    Progress: The U.S. Department of the Treasury (Treasury) has been working with MINFRA counterparts to develop a structure that can drive infrastructure and capital market development forward in Brazil related to debt guaranty funds, thereby helping reduce infrastructure investment risk. Treasury officials traveled with GOB representatives to the United States in September and October 2021 to participate in meetings with potential investors. 

•Energy: CEO Forum members recommended regular engagement with the private sector to increase bilateral trade and investment in critical energy infrastructure. They also recommended supporting Brazil’s energy modernization reform through bilateral exchanges among regulators, operators, and other entities, in a whole-of-government approach.

o    Progress:

  • Establishment of a High-level Strategic Dialogue on Energy: DOE and Brazil’s MME launched the U.S.-Brazil Energy Forum (USBEF) Ministerial on February 3, 2020 in Rio de Janeiro. The meeting was co-chaired by the U.S. Secretary of Energy and Brazil’s Minister of Mines and Energy.  
  • Hold Regular USBEF Meetings with Private Sector: DOE led a project with MME, Brazil’s Energy Research Office (EPE) and Brazilian stakeholders (including U.S. and Brazilian industry) to accelerate the adoption of natural gas and biomethane by trucks and buses in Brazil. 
  • Collaboration on Climate Adaptation: In September 2021, EPA and the São Paulo State Environmental Regulatory Agency (CETESB), the U.S. Consulate-General Sao Paulo, and the Cities of Boston and Santos participated in a joint event with a focus on climate adaptation.  One key result was an agreement for additional collaboration between EPA and CETESB to transfer EPA’s Adaptation Resource Center (ARC-X) tool to Sao Paulo. 
  • Engagement Between Regulators, System Operators, and Ministries: USTDA organized reverse trade missions (RTMs) and virtual events covering topics such as microgrids, smart grids, distribution automation, transmission automation, and renewables (including but not limited to wind, solar, storage). USTDA also funded technical assistance that included regulatory and cybersecurity components in support of modern transmission and distribution grids. 
    • In October 2020, DOE held a two-day workshop with MME, EPE, and ANP about the regulatory process for transportation and distribution of natural gas. Presentations were delivered by FERC and State Energy Commissioners. 
    • On October 26, 2021, Commerce hosted the U.S.-Brazil Green Grid Summit, a day-long virtual gathering of innovators, regulators, financiers, and policymakers to network, discuss how the power sector can and should adapt to meet climate goals in both countries, the green financing required to make those adaptations, and how policies and regulations should be structured to allow for them. With strong interagency and private sector participation from both countries, key electricity research institutions in the United States and Brazil signed a cooperation agreement, and a list of concrete action items and next steps was developed for both countries to implement in the coming years. The U.S. Departments of Commerce, State, Energy, USTDA, and state-level regulators actively participated with their Brazilian counterparts and industry associations in both countries.  
  • Facilitate trade missions between Brazilian and U.S. states: USTDA organized RTMs and virtual events covering topics such as microgrids, smart grids, distribution automation, transmission automation, renewables (including but not limited to wind, solar, storage). USTDA has also funded technical assistance that included regulatory and cybersecurity components in support of modern transmission and distribution grids. 

o    Next Steps: DOE is consulting with high-level leadership to hold a USBEF Ministerial in Washington DC in early to mid-2022.

• Water and Natural Resources Management: CEO Forum members recommended that both governments focus on promoting the development of resource efficient, sustainable infrastructure in the water, sanitation, and waste management sectors. Recommendations included enabling access to technology, strengthening building codes, reviewing regulatory standards, supporting the privatization of Brazilian water and sanitation systems, and conducting best practices and technical exchanges on these topics.  

o    Progress:

  • Promoting the Acceptance of International Standards: Commerce is working to encourage Brazil’s acceptance of standards that are developed consistent with the WTO TBT Committee Decision on International Standards and improve market access for innovative and sustainable materials in Brazil. Commerce has developed a standards-related work plan under the Commercial Dialogue.  
  • Supporting the Adoption of Water Standards: USAID’s Standards Alliance is funding the project “Community Water Systems–Standards for Safety and Risk Management” which supports public agencies, private sector stakeholders, academic, and non-governmental stakeholders to build consensus for standards that validate the safety and/or efficacy of materials, chemicals, and water treatment devices that come into contact with municipal, community, and building/home drinking water systems in Brazil.  
  • Technical Assistance for Water Utilities: USTDA funded technical assistance supporting further energy and operational efficiency for water utilities. 
  • Monitoring Regulatory Developments in Brazil: Treasury is monitoring the progress of ANA’s regulatory roll-out for the New Sanitation Framework. This framework will impact not only the requirements for concessionaires in water and sanitation, but also attempt to level the playing field on the operating standards for all water and sanitation systems.  
  • Water and Sanitation Regulatory Cooperation: As mentioned above, since November 2019, EPA, in collaboration with USGS, has provided a range of water and sanitation training to ANA, which includes examples of how EPA develops goals and regulations around water and sanitation issues. EPA also provided three webinars to MMA on marine litter, water and sanitation infrastructure finance, and land contamination which outline EPA’s regulatory approach within these areas.  

o    Next Steps: Commerce will develop a new standards-related work plan under the Commercial Dialogue for the GOB’s consideration. The work plan will focus on standards and policies that encourage innovation, facilitate trade, allow for regulatory flexibility, and ensure interagency cooperation and stakeholder participation. Such work will support Brazil’s acceptance of standards that can aid in the development of efficient, sustainable infrastructure. 

Health, Education, & Workforce Development 

The global COVID-19 pandemic shifted priorities nowhere more significantly than in the field of health care. The United States and Brazil leveraged their strong bilateral relationship to respond to the health care needs of their citizens. During the initial phase of the pandemic, the USG and U.S. companies together provided more than $71 million in assistance to help communities, hospitals, and families in Brazil respond to the health emergency. Millions of items of personal protective equipment (PPE) and other much needed equipment were quickly imported by Receita Federal, Brazil’s customs agency, and distributed to hospitals and front-line workers. When the second wave hit, the USG and GOB worked together to identify sources of much needed intubation medication.  

Historically, the United States has been an important destination for Brazilian students. The most recent Open Doors report (https://opendoorsdata.org) shows that 14,000 Brazilian students studied in the United States during the 2020-2021 school year. In addition to being a source of services exports, the deepening of cultural ties through student exchange is important to the U.S.-Brazil relationship.  

KEY RECOMMENDATIONS

• Health: As mentioned above, the onset of the global COVID-19 pandemic required a re-evaluation of priorities. However, the ability to quickly adapt to changing needs supports the spirit of CEO Forum recommendations related to the expanded use of health information technologies to reduce gaps in care and public-private collaboration towards the development of innovative medicines.  

o    Progress:

  • Health Information Technologies: The use of telemedicine, not allowed in Brazil pre-pandemic, was quite successful in ensuring patients had access to care without risk of exposure to the disease and reducing demand on overburdened healthcare facilities. The USG looks forward to supporting telemedicine as a permanent part of Brazil’s health care system. 
  • Cooperation for Innovation in Healthcare and Medicines: Brazil was a primary location for U.S. vaccine manufacturers that conducted clinical trials in the country to ensure the efficacy and safety of their vaccines. The USG actively supported U.S. vaccine manufacturers in these efforts and worked with the GOB to share best practices on mitigating liability concerns with vaccine development. Brazil’s collaboration on the trials facilitated Brazil’s access for purchase, and U.S. vaccine manufacturers ultimately supplied enough vaccines for two-thirds of Brazil’s population. 
  • Medical Device Regulatory Cooperation and Convergence: As mentioned in the regulatory cooperation section, the FDA, along with industry and regulatory agencies, completed a joint webinar series on the Medical Devices Single Audit Program and ISO 13485. Further, FDA and ANVISA are working to renew a Statement of Cooperation and are engaged on Project Orbis, an effort to promote the authorization of oncological products. Through the International Medical Devices Regulators Forum, FDA and ANVISA are exploring a single review program.  
  • Additional examples of USG work in this sector can be found in this Progress Report’s GRP section.  

o    Next Steps: U.S. vaccine manufacturers have announced plans to begin vaccine manufacturing in Brazil beginning in 2022, with plans to distribute Brazilian-made vaccines throughout Latin America. The USG and GOB have closely collaborated to ensure that the needed inputs are available. Additional collaborations on other vaccines are ongoing. 

• Education & Workforce Development: CEO Forum recommendations related to education and workforce development focused on three themes: increasing public-private partnerships in academia, regional skills development and cross-border skills exchanges, and addressing curriculum gaps in Brazil regarding childhood literacy and STEM education.  

o    Progress:

  • Public-Private Academic Partnerships: In October 2021, the U.S. Department of State (State) and SENAI, the Brazilian National Service for Industrial Training, launched a round of grant opportunities for U.S. and Brazilian higher education institutions under the “100,000 Strong in the Americas Initiative.” In November 2021, State also opened applications for the 2022 Brazil Youth Ambassadors Program, which will take place in June 2022. 
  • Regional Skills Development: While student mobility was interrupted by the COVID-19 pandemic, State prioritized the return of students to the United States by establishing a process for blanket National Interest Exceptions for visas for student travelers in the summer of 2021. 
  • Strengthen K-12 Education for Jobs of the Future: In November 2020, the Smithsonian Institute and Brazil’s Ministry of Science, Technology, and Innovation signed a memorandum of understanding (MOU) establishing cooperation on scientific research and education. The purpose of this MOU is to exchange best practices and identify teaching/curriculum gaps in Brazil. 

o    Next Steps: In March 2022, the U.S. Embassy, in partnership with CONIF, will launch an expanded “Power4Girls” program to Brazilian Federal Institutes nationwide. The previously mentioned 2022 Brazil Youth Ambassadors Program will include a 20th anniversary event to be held in Sao Paulo in June 2022.