Dumping Investigations

In recent years, Brazil has been accused of carrying out increasingly protectionist trade policies. Critics point to Brazil’s reliance on tariffs, quotas and “dumping” investigations as evidence of its reliance on commercial defense measures.

Earlier this week, the World Trade Organization (WTO) drilled down deeper on the issue of the country’s dumping investigations, which, according to WTO, led all G20 countries from May to September 2012, with 27 cases. “Dumping” refers to the practice of selling products or services abroad for a lower cost than they would sell for domestically.

Folha speculates that Brazil is likely to soon become the world’s leader in dumping investigations – a title that has been held by India for the last five years. The volume of these investigations, coupled with Brazil’s recent pledge to temporarily raise import tariffs on 100 different items, has led to commercial uncertainty within the country.

How do Brazil’s trade policies impact local businesses and consumers?

“Brazil, South America’s largest economy, is also pushing the mantra of protecting local industry,” investments news source MarketMinder reported last month. “One wonders, though, how consumers of these goods ranging from paper to steel will feel about higher prices. The policy doesn’t target any specific nation, instead focusing on the products themselves – a blanket application meaning the increased tariffs would likely withstand WTO challenge.”

Given Brazil’s aggressive challenge to commercial outlets engaging in dumping, companies or individuals with commercial interests in Brazil must retain a Brazilian attorney to ensure that they remain apprised of local laws. As a general practice, any foreigner with commercial or personal interests in Brazil should partner with an experienced law office in Brazil, which can become an incomparable resource.

Marriages and Divorce Climb

It’s been said that in the United States, an estimated half of all marriages end in divorce. Although that figure isn’t quite as high in Brazil, it still climbed considerably in the previous decade, thus emphasizing the importance of couples contacting Brazilian law firms before getting married.

According to 2010 census data released last month by the Brazilian Institute of Geography and Statistics (IBGE), 15 percent of the Brazilian adult population has been divorced, which is 20 percent more than the figure observed in 2000. Just last week, we reported about a 2010 law that eliminated the legal mandate that couples needed to be separated one year before formally filing for divorce. The divorce rate could climb further as the effects of the new law continue to take effect.

Another group growing in prevalence is the number of Brazilians living in a consensual union – 36 percent, up from 29 percent in 2000. Conversely, the number of married individuals and religious and civil unions fell from 49 percent to 43 percent.

Given the increase in the number of divorces in Brazil, it’s critical for foreigners with Brazilian spouses to remember the important of prenuptial agreements. Should a marriage end in divorce, these documents will ensure that assets are divided in a way that is amenable to both parties. Prenuptial or antenuptial agreements that are crafted correctly will be recognized by courts in Brazil, the United States and elsewhere.

Brazilian attorneys with experience in family law can not only help couples draft these agreements, they can also assist with issues related to alimony, spousal support, child support and the division of marital property, should a prenuptial agreement not exist. With an experienced Brazil law firm on your side, you will be able to focus on rebuilding your life without worrying about legal questions.

Knowledge of Real Estate Laws

Most of the ink has that been spilled surrounding the Brazilian people and their real estate preferences has been about their emerging role as buyers of American properties.

Brazil’s economy is stable, in part due to anticipation surrounding the country’s hosting responsibilities for both the 2014 World Cup and the 2016 Olympics. The most affluent Brazilians, many of whom have enjoyed recent financial successes, have flocked to U.S. cities in droves.  The New York Times has reported on the trend twice in the last year, with feature stories about Brazilians purchasing properties in both New York City and Miami.

Law firms in Brazil assist foreigners with real estate transactions

But, simultaneously, foreign buyers of Brazilian properties continue to expand their own investments, even as prices climb considerably. In fact, some, including the Brazilian government agency known as the Institute of Applied Economics Research (IPEA), believe that the Brazilian government has undertaken policies that have produced a real estate bubble. In part because of decreased interest rates and readily available credit, the IPEA study authors estimate that property values have climbed at an unsustainable rate in the last four years – 165 percent in Rio de Janeiro and 132 percent in Sao Paulo.

A lavish city in the southern part of the country, Florianopolis (also known as Floripa and the Island of Magic), is another location where prices have risen, and are likely to continue to do so unabated, for reasons supplementary to the interest rate issue. Prices in Floripa are climbing for two additional reasons explained recently by a local real estate professional.

“Most of Floripa is set on an island which cannot be expanded, so property is a finite resource, a rare commodity,” Samantha Gore told Property Wire last week. “Most of the island’s luxury homes were bought outright without mortgages, before finance was even available, and vendors have always been able to sit tight until they achieved their full asking price.”

Buyers of Floripa properties should keep in mind that, in general, whenever special circumstances surround the sale of a property, such as if it is part of an estate sale or if it has structural issues, a real estate lawyer is more of a necessity than a luxury. This is especially true if buyers are not familiar with local laws.

An experienced Brazilian law firm can act as a local, trusted ally to foreign buyers with real estate interests in Brazil, shielding them from any legal problems regarding the purchase or ownership of properties.