Brazil gets a discount and the government will pay off debts with the OECD

Brazil has not paid the €5.1 million (R$27 million) fee in 2023 to join the Organization for Economic Co-operation and Development (OECD). The amount was supposed to be paid in April. The government requested a reduction in the value. You have achieved.

The final value is kept confidential by both Itamaraty and the OECD. The reason is that there are 5 other countries that make up the group that began the accession process in 2022, and they are all paying similar amounts. There is a fear of possible negative reactions.

As the value fell, the government allowed payment. The funds are actually transferred to the entity.

The reason why Itamarathi requested the devaluation is because she did not participate in all the procedures undertaken by the various committees set up by the government to gain membership. Brazil has 26 thematic committees to negotiate its accession. In government Jair Bolsonaro (PL), this issue has been treated as a priority. The current government has taken its foot off the accelerator, as expected Power360 Celso Amorim, still on the campaign trail.

The OECD inter-ministerial working group held only one meeting in 2023, on October 2. It was installed in August. But there have been discussions at the Esplanada dos Ministérios for two decades, under different administrations, about cooperation with the OECD and potentially joining the institution. The entry process began in October 2022 under Govt Jair Bolsonaro.

A fee of €5.1 million will be charged to join (entry) the body each year during state nomination. To stop receiving fees, you must stop applying to join the organization.

Entry queue

The process of joining the OECD takes a long time. It will not be completed before 2026. Without a commitment from the government, it will be postponed. There are 5 other nominated countries, 3 from Europe (Romania, Croatia, and Bulgaria), and 3 from South America (Brazil, Argentina, and Peru). They are likely to join the organization before Brazil.

Argentina was invited to begin the accession process in 2022. The previous government, led by Alberto Fernández, did not continue the process. Current President Javier Miley has returned to this process as one of the first measures taken by his government. Indonesia formalizes its application to join the Organization for Economic Cooperation and Development. The process should start in 2024.

Technicians from various areas of the federal administration said, on condition of anonymity, that there would be advantages for the current government in expanding cooperation with the OECD. In many cases, the improvement in public policies that the agency advocates coincides with what Planalto seeks.

Minister Fernando Haddad The Treasury in May 2023 defended the changes to CARF decisions, arguing that they were an adaptation of OECD rules. Congress approved the change to CARF in August.

Haddad had stated in January 2023 in Davos, Switzerland, that the government would discuss the process of joining the Organization for Economic Cooperation and Development. But things calmed down later. There are doubts about whether the government will postpone or suspend it.