Demarcation Issues

The fight between Brazilian indigenous people and the government over the rights to inherited lands continues to rage as slow demarcation and the acknowledgment of their territories continues to take place.

On May 24, citizens packed into a council meeting in the city of Sinop for the latest public hearings. The major concerns they stated were the lack of clear criteria when it comes to demarcation—or the act of creating boundaries around a location. Because of this, organizations of all sizes are worried about the possibility of bankruptcy and isolation.

There are currently more than 70 areas that are being disputed. Current legal provisions give Congress the final say on the demarcations.

According to Congressman Nilson Leitao, there is a feeling that the process of demarcation is misguided. Particularly, this comes from the distrust in the good faith of Funai—the National Indian Foundation in Brazil.

“The boundaries are based on anthropological reports, some fraudulent, which has been proven and its validity even overlaps the Constitution,” Leitao said. “Not only because of the disorderly way that the demarcations have been done, but mainly because of the expedients used, is why we are protocoling this CPI request to investigate what is behind this sudden interest in areas, especially in the Amazon.”

The parliament has announced a national stoppage of demarcation on June 14. This means there will be an increased effort to be heard over the next two weeks. Companies that are interested or currently doing business in the area should partner with lawyers in Brazil to find out how this could affect business operations.

New Partnership

Sharing natural resources is important in any national market, and organizations that produce and maintain these resources must formulate an understanding with those that utilize them. In Brazil, significant steps have been made to increase unity between these two parties, which could have a number of positive effects on the country’s environment and economy.

The International Finance Corporation (IFC) and the Union for Ethical Biotrade (UEBT) have formally partnered together to add significant assistance to various social, environmental, and government organizations. The partnership can help establish new rules pertaining to the access and sharing of benefits resulting from the use of natural, genetic resources like plants and fruits.

Many believe this is a long time coming, as the Brazilian government has been trying for years to establish unity between organizations to ensure that every party is treated fairly without compromising environmental integrity. Debates have raged for 10 years on this topic. While all sides have always agreed that the current regulations pertaining to the usage of natural resources need to be updated, a disconnect between the public and private sectors has prevented the establishment of a strong conclusion.

There is hope that the partnership between the IFC and UEBT will help with this. If so, any organization interested in doing business in Brazil and using its natural resources must stay up-to-date on the latest legal proceedings regarding this issue. Working with lawyers in Brazil can help business owners understand their options, learn the consequences of compliance failure and understand what they must do to follow all rules related to the country’s natural resources.

Brazil’s Amnesty Law

Brazil’s Amnesty Law was passed in 1979 as a way to bring exiled activists back into the country while protecting officials who may have violated human rights prior to 1979 from prosecution. Because the country was ruled by military dictatorship starting in 1964, this was a way to secure officials who served under that regime and clear them of any wrongdoing that may have transpired during their years in service.

While the law has stood in place for more than three decades, its current state has caused unrest among various citizens and political activists throughout the country. In 2010, a case was brought to the Brazilian Supreme Court to modify the validity of the Amnesty Law, which currently protects those charged with torture during the military regime. Many wanted to remove that clause in the law so that those accused of such crimes could stand trial, but the Supreme Court denied the request.

Three months ago, the Bar Association of Brazil (OAB) went to the Minister Luiz Fux, Rapporteur of the appeal of the OAB, asking to be heard. However, before the Supreme Court was able to review and analyze the appeal, the OAB dropped the case. Today, the organization is studying an alternative to a straight appeal, which may have a better chance of making an impact on the Supreme Court.

The OAB believes its actions could force Brazil to comply with a number of international treaties. For example, the Pact of San José, Costa Rica and the Treaty of Rome, of which Brazil is a signatory, are currently being violated by Brazil’s Amnesty Law. At the very least, the OAB is adament that this be amended as soon as possible, so that the country doesn’t perform any illegal international incidents.

The belief is that simple adjustments, which would not require a full appeal, could be enough to change the way some state officials are treated, particularly those involved in crimes that are still ongoing.

Whether changes are made to the Amnesty Law remains to be seen. However, regardless of what eventually transpires between the Supreme Court and the OAB, any individual or organization looking to do business in Brazil will have to obtain a firm understanding of the country’s laws. Lawyers in Brazil can help with this effort by sharing important information regarding any and all Brazilian legal matters.

Roberto Azevêdo to take control of WTO

Brazil’s Roberto Azevêdo is getting set to receive a major promotion and will soon be viewed as a high-authority figure on a global stage. The politician and diplomat has represented Brazil at the World Trade Organization (WTO) since 2008 and now he has been selected to run it.

Earlier this month, Azevêdo was elected to succeed France’s Pascal Lamy as Director-General of the WTO. He will officially take over in September, but he has already begun to indicate his plans for the organization. Given the current state of the global economy, Azevêdo understands the importance of his work and that he must right the ship by making a number of changes, including solidifying the union between established and developing countries.

Political differences have hindered much of the WTO’s progress in recent years, but Azevêdo is urging his colleagues to put these differences aside for the betterment of the organization and the global economy.

“We must try to move the organization forward, and it has nothing to do with the specific policies of one country or another,” he said.

Meanwhile, Brazil’s political leaders are confident in Azevêdo’s abilities to establish himself as an enforcer who can get things done and improve the overall state of the world economy. There is much enthusiasm regarding the choice to promote Azevêdo, particularly among BRIC countries—a group consisting of Brazil, Russia, India and China—as he is the first individual from that congregation to ascend to his new position.

For Brazilian President Dilma Rousseff, this is a chance to show what the country is made of and an opportunity to establish itself as a global leader. Brazil is preparing itself to host the World Cup in 2014 and the Summer Olympic Games in 2016, and this is another chance for the country to show that its representatives can handle complex global issues. Rousseff gave a statement recently commending those who voted Azevêdo into his role and indicated that Brazil is up to any and all potential challenges.

“For Brazil, it is clear that, as a result of its commitment and experience, the country will be able to lead the organization toward a more just and dynamic world economic order,” Rousseff said.

It’s unclear now what impact this will have on organizations looking to do business in Brazil, as no major impact will be felt until at least September. However, once the change is official and Brazil establishes ownership of the WTO, it will be important to keep up with any changes or new regulations pertaining to international business. Lawyers in Brazil can help companies with this process.

Legal experts mull over potential change in arbitration law

The Brazilian arbitration law may soon be changing, as regulators want to strengthen certain components of the law in order to increase its effectiveness in certain situations.

Brazil’s current arbitration law is considered strong by many legal analysts in the country, however, as it gave complex cases the opportunity to be settled by expert professionals in a manner that is both just and easy to enforce. In fact, from 2005 to 2011, arbitration has become an increasingly effective component of Brazilian law, as the total amount of the major cases that underwent arbitration in the main chambers of the country was eight times higher in 2011 than six years earlier.

Despite that fact, there are still many in favor of increased arbitration regulations, which has prompted a response from numerous professionals in the industry.

Selma Ferreria Lemes is a professor at GVLaw of Fundação Getúlio Vargas and a Brazilian representative in the International Court of Arbitration of the International Chamber of Commerce (ICC). Lemes worked on the draft of the current arbitration law, which was put in place in 1996, and is one of the individuals primarily responsible for the law’s presence in Brazil. She is fighting to keep the law in place, stating that its failure to regulate certain situations represents freedoms that she doesn’t want to see go away.

“There are many people who cannot work with this freedom, because he or she is used to being directed,” she said in a recent statement. “We have a good law. I hope that they preserve this freedom.”

It’s important for companies considering doing business in the country to obtain a firm grasp of Brazilian laws. Working with lawyers in Brazil will help establish this understanding.