Maritime transport agreement between Brazil and Chile ends

The Official Gazette (DOU) published a presidential decree on November 22, making the decision public through the Federative Republic of Brazil, choosing not to renew the agreement between Brazil and Chile on maritime transport, signed on 25 April, 1974.

The decree confirms the decision taken by the Foreign Trade Chamber (Camex) in July 2017. According to the act, the Brazilian decision had already been informed to Chile as of 2017. The document states that “the Ministry of Foreign Affairs sent a verbal note to the Government of the Republic of Chile, on August 8, 2017, to communicate the decision not to renew the Agreement as from January 8, 2020.”

Cabotage stimulus plan

Still on the maritime transport of cargo, the project that is being prepared by the Ministry of Infrastructure to encourage cabotage should be sent to Congress by the beginning of December, according to Infrastructure Minister Tarcísio de Freitas. The proposal aims to open this market to foreign companies.

According to Freitas, in some points, the opening must be done gradually. In principle, it should be required that companies wishing to operate with foreign ships in the country have a “ballast” on Brazilian vessels.

Earlier, the Ministry of Infrastructure had announced that the company would need to operate with Brazilian flagged vessels to use a foreign vessel without flag suspension (ie without having to comply with Brazilian rules), in a proportion of 50% of the total tonnage (capacity) of its own shipments. But this percentage can still be changed.

It has not yet been disclosed whether the bill will be approved by provisional measure or urgent bill.

Source: Estadão Conteúdo

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