On March 19, during the first bilateral meeting between Brazil and the United States since the former’s new government took office, the U.S. president assured in a joint press round that he will support Brazil’s entry into the Organization for Economic Cooperation and Development (OECD). While the country made official its request to join the OECD last year, the evaluation process can take years. The apparent support from the United States to fastrack its accession would, however, come at the cost of otherwise special and differential treatment of Brazil as guaranteed under the World Trade Organization’s (WTO), courtesy of it being an emerging country.

The OECD acts as a framework for cooperation and discussion of public and economic policies intended to guide the countries forming part of it. However, in order to join the organization it is necessary to apply a series of liberal economic measures, such as inflationary and fiscal control. In return, the country obtains an international distinction that can attract investors the world over. In line with the interests of the Brazilian government, the US has signalled its support to expedite the country’s joining of the OECD, though this would see it forsake its  “developing” nations privileges under the WTO.

Although Brazil has yet to formally respond to this proposal the prospect of it foregoing WTO’s special and differential treatment generated tensions within Congress, as this status offers advantages such as longer deadlines for complying with agreements and more flexibility in trade negotiations. Thus, Sen. José Serra (Partido de la Social Democracia Brasileña – ally of the ruling party) voiced his opposition, stating “the country will lose negotiating tools if it renounces this status”. He pointed out that negotiations were started for Brazil’s accession to the OECD under Temer’s government but that “concessions of this nature” were never contemplated.

In a speech read in Congress, Serra said that while he is in favor of joining the organization he is against “the price that the Bolsonaro administration is willing to pay”. The Minister of Economy, Paulo Guedes, declined to say how Brazil will respond to the U.S. offer.