Lei da Liberdade Econômica

Lei da Liberdade Econômica
Name	Lei da Liberdade Econômica
Other names	Lei nº 13.874/2019
Enacted by	National Congress of Brazil
Signed by	Jair Bolsonaro
Date signed	20 May 2019
Status	in force

Lei da Liberdade Econômica The Lei da Liberdade Econômica is Brazilian federal legislation enacted as Lei nº 13.874/2019 that introduced a framework of administrative deregulation and new guarantees for private initiative, affecting relations among Brazilian Federal Government, Supreme Federal Court (Brazil), Superior Court of Justice (Brazil), Ministry of Economy (Brazil), State of São Paulo, and municipal authorities such as the São Paulo City Council. The law intersects with prior statutes including the Constitution of Brazil, Código Civil (Brazil), Código de Defesa do Consumidor, and reforms associated with the Brazilian tax reform debate, shifting norms relevant to Confederação Nacional da Indústria, Associação Comercial de São Paulo, Federação das Indústrias do Estado de São Paulo, and Banco Central do Brasil regulatory practice.

Background and Legislative Process

The legislative genesis involved actors like President Jair Bolsonaro, ministers from the Ministry of Economy (Brazil), members of the Chamber of Deputies (Brazil), and the Federal Senate (Brazil), with debates referencing precedents from United Kingdom, United States, Portugal, and Chile deregulatory programs. Drafts drew input from business groups including the Federação do Comércio de Bens, Serviços e Turismo, Confederação Nacional do Comércio de Bens, Serviços e Turismo, and civil society organizations such as Instituto Brasileiro de Defesa do Consumidor and Instituto Millenium. Committee review took place in commissions analogous to the Constitution and Justice Commission (Câmara dos Deputados), and legislative negotiation engaged leaders like Rodrigo Maia and Davi Alcolumbre. The promulgation date followed discussions on Reforma Trabalhista (2017), Programa Mais Brasil, and fiscal agenda items debated during the Temer administration.

Objectives and Key Provisions

The stated objectives echo principles championed by World Bank, International Monetary Fund, and Organisation for Economic Co-operation and Development reports urging reduced administrative burdens, legal certainty, and promotion of private sector activity. Core provisions establish a “regulatory rule of reason” for inspections, create guarantees for the exercise of economic activity, and introduce the concept of “entities of production” aligned with standards used by United Nations Conference on Trade and Development. The law amends rules in the Código Civil (Brazil), modifies administrative procedure guidance used by Tribunal de Contas da União, and institutes a presumption of good faith analogous to doctrines in United States law and European Union regulatory policy. It also creates protections affecting licensing regimes overseen by bodies like the Agência Nacional de Vigilância Sanitária and Instituto Nacional de Metrologia, Qualidade e Tecnologia.

Rights, Guarantees and Regulatory Changes

Statutory guarantees include presumptions of legality for business acts, limits on discretionary inspections by municipal agents such as those from Secretaria Municipal de Finanças (São Paulo), and protections for entrepreneurs similar to rights enunciated by International Labour Organization standards. The law alters administrative sanctions procedures used by agencies including the Agência Nacional de Transportes Terrestres, Agência Nacional de Energia Elétrica, and affects licensing under frameworks employed by the Ministry of Health (Brazil). It also interacts with constitutional protections in the Constitution of Brazil concerning property and contractual freedom and harmonizes with case law from the Supreme Federal Court (Brazil), leading to statutory cross-references in regulatory acts issued by the Presidency of the Republic (Brazil).

Impact on Businesses and Economic Activity

Business associations such as the Confederação Nacional da Indústria, Federação das Indústrias do Estado do Rio de Janeiro, Associação Brasileira da Indústria Elétrica e Eletrônica, and small-business groups like the Serviço Brasileiro de Apoio às Micro e Pequenas Empresas analyzed expected effects on foreign investment flows and domestic entrepreneurship. Sectors under scrutiny included retail networks represented by Assaí, Grupo Pão de Açúcar, Magazine Luiza, and service providers regulated by Agência Nacional de Aviação Civil and Agência Nacional do Petróleo, Gás Natural e Biocombustíveis. Economic research from institutions such as the Fundação Getulio Vargas, Instituto Brasileiro de Economia, and Instituto de Pesquisa Econômica Aplicada evaluated prospective impacts on formalization, compliance costs, and administrative litigation before the Superior Court of Justice (Brazil) and state courts like the Tribunal de Justiça do Estado de São Paulo.

Legal Challenges and Jurisprudence

Litigation raising constitutional questions involved parties including Procuradoria-Geral da República, Partido dos Trabalhadores, Partido Socialista Brasileiro, and municipal governments, with matters adjudicated by courts such as the Supreme Federal Court (Brazil) and Tribunal Superior Eleitoral. Disputes addressed statutory interpretation, conflicts with consumer protections under the Código de Defesa do Consumidor, and administrative procedure issues under precedents from the Superior Tribunal de Justiça (Brazil). Comparative jurisprudence referenced rulings from the European Court of Human Rights, United States Supreme Court, and administrative law doctrines applied in Canada and Australia.

Implementation, Compliance and Enforcement

Implementation required regulatory instruments from ministries including the Ministry of Economy (Brazil), Ministry of Justice (Brazil), and local secretariats, coordinated with enforcement agencies such as the Federal Police (Brazil), Ministry of Labor (Brazil), and municipal inspection services. Compliance programs by corporations like Vale (company), Petrobras, Itaú Unibanco, and Banco do Brasil adapted internal controls, while consultancies such as Deloitte, Ernst & Young, KPMG, and PwC provided guidance on risk management. Monitoring involves statistical analysis by Instituto Brasileiro de Geografia e Estatística and policy evaluation by Tribunal de Contas da União and research centers like Centro de Estudos de Direito Econômico.

Category:Brazilian legislation