RESTRICTED
WORLD TRADE GATS/SC/13/Suppl.1
28July1995
ORGANIZATION(95-2236)
Trade inServices
BRAZIL
Schedule ofSpecific Commitments
Supplement 1
(This isauthentic inEnglish only)
_______________
Thistextreplaces theFinancial Services section contained inpages 18to20of
document GATS/SC/13.BRAZIL -SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
7.FINANCIAL SERVICES
A.AllInsurance and
Insurance-Related Services
Insurance onfreight
(CPC 81293)(1)Imports canonlybeinsured withestablished
companies.
(2)Unbound
(3)Theformation ofaspecific typeoflegal
entity isrequired, intheform ofa
Sociedade Anônima, withregistered stocks.
Theestablishment ofnewbranches and
subsidiaries offoreign insurance companies,
aswellasincreases inthepercentage ofthe
participation offoreign persons andfirms in
thecapital stock ofBrazilian insurance
institutions withheadquarters inBrazil, is
notpermitted.
(4)Unbound except asindicated inthe
horizontal section.(1)Unbound
(2)Unbound
(3)None
(4)Unbound except asindicated inthe
horizontal section.Brazil willintroduce intoits
schedule commitments
relating totheparticipation of
foreign capital inthe
Brazilian insurance market,
within twoyears after the
adoption bytheNational
Congress oflegislation
permitting such participation.
Lifeinsurance
(CPC 81211)(1)Unbound
(2)Unbound
(3)Same conditions asininsurance onfreight.
(4)Unbound except asindicated inthe
horizontal section.(1)Unbound
(2)Unbound
(3)None
(4)Unbound except asindicated inthe
horizontal section.
GATS/SC/13/Suppl.1
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Page2
BRAZIL (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
Medical care
(CPC 81291)(1)Unbound
(2)Unbound
(3)Same conditions asininsurance onfreight.
(4)Unbound except asindicated inthe
horizontal section.(1)Unbound
(2)Unbound
(3)None
(4)Unbound except asindicated inthe
horizontal section.
Property insurance
(CPC 81292, CPC 81294,
CPC 81295, CPC 81296)(1)Unbound
(2)Unbound
(3)Same conditions asininsurance onfreight.
(4)Unbound except asindicated inthe
horizontal section.(1)Unbound
(2)Unbound
(3)None
(4)Unbound except asindicated inthe
horizontal section.
Liability insurance
(CPC 81297)(1)Unbound
(2)Unbound
(3)Same conditions asininsurance onfreight.
(4)Unbound except asindicated inthe
horizontal section.(1)Unbound
(2)Unbound
(3)None
(4)Unbound except asindicated inthe
horizontal section.
Reinsurance and
retrocession services
(CPC 81299)(1)Unbound
(2)Unbound
(3)Itisofthecompetence oftheBrazilian
Institute ofReinsurance (IRB) toaccept
mandatory orfacultative reinsurance, in
Brazil orabroad. Thedistribution by
insurance institutions ofparts ofreinsurance
notretained byIRBisalsoofits
competence.
(4)Unbound except asindicated inthe
horizontal section.(1)Unbound
(2)Unbound
(3)Unbound
(4)UnboundBrazil willintroduce intoits
schedule commitments
relating totheparticipation of
foreign capital inthe
Brazilian reinsurance market,
within twoyears after the
adoption bytheNational
Congress oflegislation
permitting such participation.BRAZIL (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
Auxiliary services -
agencies andbrokers
(CPC 81401)(1)Unbound
(2)Unbound
(3)Foreign nationals mayestablish themselves
asbrokers. However, thepresence of
foreign capital indomestic brokerage firms
isrestricted, directly orindirectly to50per
centofthetotalcapital ofthedomestic firm
andonethird ofitsvoting capital. Thisrule
does notapply tofirms established before
3July1986.
(4)Unbound except asindicated inthe
horizontal section.(1)Unbound
(2)Unbound
(3)None
(4)Unbound except asindicated inthe
horizontal section.Brazil willintroduce intoits
schedule commitments
relating totheparticipation of
foreign capital inthe
Brazilian insurance brokerage
firms, twoyears after the
adoption bytheNational
Congress oflegislation
permitting such participation.
Auxiliary services -
consultancy, actuarial and
surveys
(CPC 81402, CPC 81404)(1)None
(2)None
(3)None
(4)Unbound except asindicated inthe
horizontal section.(1)None
(2)None
(3)None
(4)Unbound except asindicated inthe
horizontal section.
GATS/SC/13/Suppl.1
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BRAZIL (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
B.Banking andOther Financial Institutions
These commitments cover only those activities performed byfinancial institutions, classified asmultiple banks, commercial banks, investment banks, consumer
finance companies, housing finance companies, financial leasing companies, brokers anddealers, andeach may perform only those activities permitted bythe
Conselho Monetário Nacional, theBanco Central deBrasil and/or theComiss ãodeValores Mobiliários. Multiple banks maybeformed withaminimum ofanytwo
ofthefollowing portfolios, each corresponding toacommercial bank, aninvestment bank, aconsumer finance company, ahousing finance company orafinancial
leasing company, andoneoftheportfolios must correspond toeither acommercial bank oraninvestment bank. Financial instruments, such assecurities, futures
andoptions, when registered fornegotiation onanexchange, maynotbenegotiated inanover-the-counter market. Allsenior level management must bepermanent
residents inBrazil.
-Acceptance ofthe
following funds from the
public, onawholesale or
retail basis:
(i)demand deposits
(ii)time deposits
(iii)savings deposits
destined for
housing finance(1)Unbound
(2)Unbound(1)Unbound
(2)UnboundBrazil willintroduce intoits
schedule commitments
relating totheparticipation of
foreign capital inBrazilian
financial institutions, within
twoyears after theadoption
byNational Congress of
legislation permitting such
participation.BRAZIL (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
-Lending ofalltypes by
financial institutions,
including:
(i)consumer credit
(ii)mortgage credit
(iii)financing of
commercial
transactions
-Financial leasing
-Payment andmoney
transmission services
carried outbyfinancial
institutions
-Guarantees and
commitments(3)Theestablishment ofnewbranches and
subsidiaries offoreign financial institutions,
aswellasincreases inthepercentage ofthe
participation offoreign nationals and
institutions inthecapital stock ofBrazilian
financial institutions, isnotpermitted, except
inconnection withtheprivatization
programme ofpublic sector financial
institutions. Thenumber ofbranches in
Brazil ofallforeign banks andofbanks
controlled byforeign nationals and
institutions iscurrently limited totheamount
existing on5October 1988, except forthe
branches ofprivatized banks, which arenot
subject tothislimitation.(3)None National treatment shall be
granted tosuppliers,
established inBrazil, of
service activities listed inthe
Annex onFinancial Services
thatarenotperformed by
financial institutions andare
notrecognized asfinancial
services according to
domestic regulations, atsuch
time asthese service
activities besubjected to
specific legislation adopted
bytheNational Congress,
therein classified asfinancial
services.
GATS/SC/13/Suppl.1
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BRAZIL (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
-Trading forownaccount
offortheaccount of
customers, whether onan
exchange orinanover-
the-counter market, ofthe
following:
(i) money market
instruments
(ii) foreign exchange
(iii) futures andoptions
(iv) exchange rateand
interest rate
instruments
(v) transferable
securities
(vi) other negotiable
instruments and
financial assets,
including bullionBRAZIL (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
-Participation inpublic
issues ofallkings of
securities, including
underwriting and
placement asagent, and
provision ofservices
related tosuch issues
-Brokerage offoreign
exchange
-Portfolio management and
custodial anddepository
services
-Research andadvice on
investments andportfolios
GATS/SC/13/Suppl.1
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