International Trade Regulatory Challenges for Brazil and Some Lessons from the Promotion of Ethanol

41 Pages Posted: 29 Jan 2013 Last revised: 22 Jun 2021

See all articles by Michelle Ratton Sanchez Badin

Michelle Ratton Sanchez Badin

São Paulo Law School of Fundação Getulio Vargas FGV DIREITO SP

Daniela Godoy

University of São Paulo (USP)

Date Written: January 28, 2011

Abstract

Since the 1990s, participation in international trade has been affirmed as a tool for development. Therefore, countries like Brazil have intended so far to increase their international insertion through trade. Ever since, in those twenty years since then, Brazil has experienced a sequence of moments that affirms that direction to its development: from a period of unilateral trade liberalization to a phase of integration into international blocks and negotiations, in the seek for a more structured policy by and for trade.

This article takes the Brazilian experience in its effort to promote ethanol as a renewable and competitive energy alternative in the international market. Through programs and support measures employed by the government for decades, agricultural production of sugar cane and the industrial park for its processing were developed and present high level of efficiency and productivity nowadays. In order to promote ethanol in the international trade, it takes a multi-level action from the Brazilian State to overcome the fragmentation of centers responsible for the definition of commercial policies and regulatory structure. Indeed, Brazilian government has been acting in several thematic forums, seeking specific purposes. Its traditional inherent functions have been revisited, as well as the legal and institutional framework set to have them fulfilled. Furthermore, collaboration between government and private sector has been playing a major role, once one seeks to optimize the effectiveness of defined policies and to establish a ‘learning curve’ for both sectors.

This case permits the extrapolation of its main characteristics to the Brazilian commercial policy as a whole, once, even if it is directly related to a traditional area for commercial regulation- that is agriculture-, further understanding requires complete review of that classification and of its linkages to the new commercial themes, such as energy and environment.

Keywords: international trade, law and development, Brazilian foreign trade policy, ethanol promotion, renewable energy policy

JEL Classification: K33, F10

Suggested Citation

Sanchez Badin, Michelle Ratton and Godoy, Daniela, International Trade Regulatory Challenges for Brazil and Some Lessons from the Promotion of Ethanol (January 28, 2011). Available at SSRN: https://ssrn.com/abstract=2207894 or http://dx.doi.org/10.2139/ssrn.2207894

Michelle Ratton Sanchez Badin (Contact Author)

São Paulo Law School of Fundação Getulio Vargas FGV DIREITO SP ( email )

R. Rocha, 233, Bela Vista
São Paulo, 01330-000
Brazil

Daniela Godoy

University of São Paulo (USP)

Rua Luciano Gualberto, 315
São Paulo, São Paulo 14800-901
Brazil

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