Economic Reciprocity Law allows countermeasures, including on investment, in response to unilateral trade actions
11 Apr 2025
On 11 April 2025, Brazil enacted Law No. 15.122/2025, known as the Economic Reciprocity Law. It authorizes the Executive Branch, in coordination with the private sector, to adopt countermeasures in cases where foreign countries or economic blocs:
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interfere with Brazil’s sovereign policy choices;
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impose environmental requirements more stringent than Brazil’s domestic standards (e.g. the Forest Code, the National Environmental Policy, and nationally determined contributions under the Paris Agreement); or
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violate trade agreements or deny benefits to Brazil under such agreements.
Countermeasures may take the form of restrictions on the import of goods and services, or of suspension of commercial, investment or intellectual property–related concessions and obligations. Provisional measures may be adopted during the consultation and review process.
The law provides for prior public consultations and establishes proportionality as a guiding principle in applying countermeasures. It also foresees the possibility of diplomatic dialogue to mitigate or reverse adverse measures.
Nature of measure:
Type:
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Entry and establishment (Approval and admission - other)
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Treatment and operation (Other)
Industry:
Inward FDI:
Yes
Outward FDI:
No
Sources:
