In this edition, we detail CADE’s decisions regarding the mandatory notification of mergers and acquisitions involving foreign companies and the creation of a working group to review these criteria. We also highlight the conviction of hub-and-spoke cartels with fines exceeding BRL 12 million, and the initiation of a new proceeding in the fragrances market.
In International Trade, the highlight is the entry into force of the European Union’s new steel safeguard regime, featuring reduced quotas and tariffs raised to 50%. On the domestic front, we emphasize the formalization of CAMEX’s new public interest rules (Resolution No. 906/2026), the promulgation of the Mercosur-Singapore Free Trade Agreement, in addition to the opening of public consultations and an intense agenda of anti-dumping investigations and reviews conducted by SECEX.
During the 268th Ordinary Trial Session (“SOJ”) of the Administrative Council for Economic Defense (“CADE”), the Tribunal reinforced the understanding that mergers and acquisitions between foreign companies may be subject to mandatory notification in Brazil, even if the target companies, considered individually, do not meet the applicable turnover thresholds. The decision was rendered after the Tribunal called up (avocação) a non-cognizance opinion issued by CADE’s General Superintendence (“SG”) in a case involving the acquisition of a company located in Japan, whose turnover in Brazil was less than BRL 75 million in the year preceding the transaction, although its economic group met the turnover thresholds in Brazil.
According to the Tribunal, the understanding adopted by the SG could compromise legal certainty and would be contrary to CADE Resolution No. 33/2022, which establishes that mandatory notification must be analyzed based on the turnover of the economic groups involved and not of the target companies considered individually.
The Tribunal, however, recognized the need to reevaluate the notification criteria for mergers and acquisitions and established a working group to conduct studies on the revision of CADE Resolution No. 33/2022.
In the 268th SOJ, CADE’s Tribunal judged two cases involving alleged “hub and spoke” cartels. In this model, a company (usually a supplier) acts as the coordinating center (“hub”) of a collusive agreement between competitors (usually its distributors, the “spokes”). The practice is treated by CADE as an illicit act by object, equivalent to a hard-core cartel.
In both cases, the Tribunal partially convicted companies and individuals accused of allegedly restricting competition in public and private bids through the coordination of distributors by their respective suppliers. The first case involved the market for electronic test and measurement instruments, originating from a leniency agreement. During the trial, Reporting Commissioner Camila Alves highlighted that even when companies (e.g., distributors) sell the same brand, they remain competitors with each other, which is an essential element for formulating proposals in a bidding process.
The second case involves the interactive whiteboards market and derives from the first conviction of an alleged “hub and spoke” cartel by CADE in 2023. In this case, the Tribunal’s decision to disregard the legal personality of a distributor stands out, assigning its managing partner the responsibility for paying the fine.
Combined, the fines imposed in both cases exceeded BRL 12 million.
In August 2026, the SG initiated an administrative proceeding to investigate alleged anticompetitive conducts consisting of the exchange of competitively sensitive information among competitors operating in the fragrances market. The conducts reviewed by CADE have already been the subject of investigation in other jurisdictions, such as the United States and the European Union.
The European Union recently approved its new regime for steel imports, in effect since July 1, 2026, replacing the safeguards that expired on June 30, 2026.
Among the main points of the measure are: (i) the reduction of tariff quotas to 18.3 million tons per year, representing a 47% drop in imports that could benefit from tariff exemption; (ii) the increase in the tariff on the surplus from 25% to 50%; and (iii) the imposition of melt-and-pour documentation rules (not yet regulated), which must detail the proof of the country where the steel was originally melted and poured, in order to prevent circumvention.
In June, the Chamber of Foreign Trade (“CAMEX”) approved GECEX Resolution No. 906/2026, which provides for the public interest analysis in trade defense measures. The rule formalizes an additional avenue of action for CAMEX, allowing members of CAMEX’s Executive Management Committee (“GECEX”) to propose and carry out interventions in trade defense measures for public interest reasons, regardless of the prior conduct of a formal administrative proceeding for public interest analysis by the Department, provided they present adequate reasoning. The mechanism does not replace the technical analysis conducted by the Department of Trade Defense (“DECOM”), but opens a new front of action in these cases.
The resolution also assigns competencies to the Committee on Trade Defense and Public Interest (“CDCIP”), a collegiate, consultative technical body that subsidizes GECEX’s decisions and whose internal regulations were subsequently approved by GECEX Resolution No. 922/2026, expressly providing for the possibility of administrative appeals against the adopted decisions.
Also in June, CAMEX approved Resolution No. 918/2026, which determines the execution of the 223rd Additional Protocol to Economic Complementation Agreement No. 18, signed between Argentina, Brazil, Paraguay, and Uruguay, and incorporates into the agreement Directive No. 212/2025 of the Mercosur Trade Commission. The rule adjusts specific rules of origin within the scope of the Mercosur Rules of Origin Regime, due to changes in the Mercosur Common Nomenclature (“NCM”) based on the 2022 Harmonized System, with impacts on certain products classified under the NCM, including coated fabrics and steel pipes.
The Secretariat of Foreign Trade (“SECEX”), through Circular No. 61/2026, opened a public consultation on proposals to amend the Common External Tariff (TEC) and the NCM. The proposals cover various products, including steel coils, steel discs, and nylon yarns.
Interested parties may submit their contributions until September 10, 2026.
The Secretariat of Foreign Trade (SECEX/MDIC) opened, on August 3, 2026, a public consultation to gather the private sector’s position on the implementation of paragraph 39 of Annex 18-A of the Free Trade Agreement between Mercosur and the European Union.
The provision foresees the identification of products originating in Mercosur that contribute to the conservation and restoration of forests, sustainable forest management, or the protection of vulnerable ecosystems which, once identified, may receive preferential or additional market access, technical assistance, and capacity-building measures. The deadline for submitting contributions ends on September 2, 2026.
Brazil promulgated the Free Trade Agreement between Mercosur and Singapore through Presidential Decree No. 13,081, of July 27, 2026. The treaty enters into force for Brazil on August 1, 2026, and is the first trade agreement signed by the bloc with a Southeast Asian country.
With its entry into force, Singapore will immediately eliminate the tariffs applicable to all products originating in Mercosur. The bloc, in turn, will gradually liberalize 95.8% of its tariff lines. Among the main products exported by Brazil to Singapore are fuel oils, machinery, equipment, and meat.
To guide companies, the Ministry of Development, Industry, Trade, and Services (“MDIC”) made available manuals on rules of origin and tariff reduction, as well as tables, normative acts, and bilateral trade data on the Siscomex Portal.
Initiation of Investigations and Reviews: The following investigations and reviews of trade defense measures were initiated by SECEX.
Investigation requested by companies and an industry association. The decline in the domestic industry’s sales, as well as the decrease in production, are factors that may play a relevant role in the analysis.
Anti-dumping duty redetermination proceeding in light of indications that the effectiveness of the anti-dumping duty applied to imports of ACSM from a Chinese producer is being compromised due to duty absorption.
Second sunset review. The review should include an in-depth analysis of elements such as the high export potential of the origins and, regarding the United Arab Emirates, the projection of imports with undercutting compared to the domestic industry’s price in the absence of the anti-dumping duty.
Third sunset review. The review should include a deeper analysis of, among other elements, the high Chinese export potential. In this context, the petitioner argued that China’s exportable surplus would be vastly superior to the Brazilian market, characterizing it as significant, immediate, and mobilizable in relation to Brazil.
Investigation requested by the sole national producer of the like product. The increase in imports of Chinese products during the investigated period, as well as the existence of government subsidy programs related to the sector in China, are factors that may play a relevant role in the analysis.
Investigation requested by the sole national producer of the like product. The increase in imports from the investigated origins during the analyzed period, as well as the existence of government subsidy programs related to the sector in China, are factors that may play a relevant role in the analysis.
Investigation requested by the sole national producer of the like product. The significant increase in imports from the investigated origin during the analyzed period (cumulative growth of 437.9% between P1 and P5), as well as the non-prevalence of market economy conditions in the sector, especially considering the strategic role attributed to the steel industry in China, are factors that may play a relevant role in the analysis.
First sunset review, requested by the sole domestic producer of the like product. The review should delve into elements such as China’s high export potential and the application of trade defense measures on steel cylinders by other countries, such as the United States, the European Union, and India, which could generate a possible trade diversion to Brazil if the duty were extinguished.
Preliminary Determinations: SECEX published two preliminary determinations in anti-dumping investigations.
Negative preliminary determination of injury, decision not to apply provisional anti-dumping duties, and extension of the deadline for concluding the investigation to 18 months. The decision was motivated by the preliminary conclusion of no injury to the domestic industry: although some indicators retreated during the period, profitability reached its highest level in the last analyzed period.
Positive preliminary determination without a recommendation to apply provisional duties, considering it a complex case that would demand the analysis of a high volume of information and the participation of other parties.
Conclusion of Investigations and Reviews: The following definitive anti-dumping duties were imposed, extended, or altered by CAMEX.
CAMEX extended, for up to five years, the definitive anti-dumping duty applied to imports, understanding that the termination of the tariffs would likely result in the resumption of injury to the domestic industry (between USD 546.30/t and USD 734.28/t). However, it did not extend the duties for China (originally involved in the investigation), understanding that there is no evidence of the resumption of dumping with the termination of the duty.
CAMEX extended, for up to five years, the definitive anti-dumping duty applied to Brazilian imports of silicon carbide-based ceramic filters, understanding that the termination of the duties would likely result in the continuation of dumping and the resumption of injury to the domestic industry, considering factors such as the behavior of imports subject to the anti-dumping duty. The applied duties were maintained between USD 1.66/kg and USD 3.88/kg.
CAMEX extended, for up to five years, the definitive anti-dumping duty applied to imports of glass for use in cold line home appliances, understanding that the termination of the measure would likely result in the resumption of injury to the domestic industry. The applied duties were maintained between USD 2.74/sqm and USD 5.45/sqm.
Public Interest Decisions: Following CAMEX’s approval in June of proposals to apply a definitive anti-dumping duty and immediately suspend its enforceability for public interest reasons, SECEX initiated, ex officio, a public interest assessment proceeding for the following products:
Denise Junqueira
Competition and International Trade
djunqueira@cascione.com.br