LUN 6 DE MAYO DE 2024 - 10:59hs.
Dispute with Argentina

Brazil seeks help from casino mogul Sheldon Adelson for OECD vacancy

In the dispute with Argentina for a vacancy in the Organization for Economic Cooperation and Development (OECD), Brazil even appealed to a friend of US President Donald Trump to try to overcome the American resistance to the entry of an emerging country into the entity. During a trip to Brasilia in May, when he met with President Temer, casino mogul Sheldon Adelson heard government requests for endorsement of the Brazilian candidacy.

The strategy is not confined to Adelson, one of the top US campaign donors. Companies and US authorities knocking on the door of the Planalto Palace do not leave there immune to Brazilian pressure. Brazil formally applied for membership of the OECD a year ago, and four other countries are also applying for the vacancy - in addition to Argentina, Peru, Bulgaria, Croatia and Romania.

Since then, the country has fulfilled 39 of the 237 requirements of the entity, most aligned to international rules of taxation and improvement of business environment, to advance the process. It also recently sent a request to verify compliance with the organization's other 90 recommendations.

Another relevant factor, according to Temer's advisers, was the request of the Cade (Administrative Council for Economic Defense) to be part of the OECD's competition committee. According to them, the decision comes before the choice of the new member and, if it is accepted in the committee, Brazil will have made many goals to take the place in the OECD Cup.

Even so, the Argentines seem to be one step ahead of Brazil. In April 2017, the Argentine president, Mauricio Macri, met with Trump and obtained direct support from him.

This year, the high ranking government of the United States reaffirmed that the Argentines are better placed in the race for the vacancy. Argentina has as its trump card its reformist credentials, which would have a greater support of the population than in Brazil, where Social Security reform, for example, was not voted.

Argentina has also courted the US by offering collaboration in a number of areas, including UN (United Nations) policing and anti-terrorism measures. Macri would have other equally strong allies. In an interview with Argentina's Clarín newspaper in January, he said French President Emmanuel Macron and German Chancellor Angela Merkel had reaffirmed their support for Argentina.

Brazil, on the other hand, has the support of the organization's secretary general, Angel Gurría, and a long history as an observer member in the organization, participating in forums and regularly contributing to the discussions.

When the Brazilian request was formalized in June of last year, the expectation was that it would be answered in two months and that the process of analysis would begin. So far there has been no response. The Americans, who have the greatest decision-making power within the organization, have positioned themselves differently.

In addition to the competition represented by Argentina, there is a defense of a high-ranking part of the US government that the entity, now with 35 member countries, is maintained as a "club of the rich." That is, a smaller group, without many divergent positions.

So much so that at the last meeting in which the matter was discussed by the OECD, the endorsement of the Argentine candidacy was not formalized. This was seen by Brazil as a sign that the game is not yet completely lost.

Membership is so valued because it would increase international trust in the country. In the assessment of Central Bank President Ilan Goldfajn, the necessary steps for entry would even help reduce the cost of public debt, as the structural interest rate of the economy, which takes into account factors such as productivity and the country's business environment, would fall.

The Civil House also insists on Brazil's entry, because if it does, it will put pressure on the Congress so that microeconomic reform goals can be approved: all bureaucracy reduction measures and improvement of the business environment that the Ministry of Finance sent to the Congress.

Source: GMB / Folha do SP