Lobo de Rizzo establishes multidisciplinary WorkGroup to advise on legal risks associated with US-Brazil bilateral trade

We are advising national and foreign clients on the immediate and long-term impacts of the US tariffs on Brazilian goods and the legal risks associated with the evolving trade relationship between the countries. In August, a new 50% tariff for steel, aluminum and other imports will be added to the standard 10% rate already in place for Brazilian goods, and relevant business in both countries are suffering the consequences of the escalation. 

If you are being affected by issues such as the ones below, our firm has a dedicated multidisciplinary WorkGroup that can help you navigate the associated challenges. Please feel free to reach out to any of the partners indicated at the end of this news or, if you prefer, to the following email address that includes the whole group: USTariffsWorkGroup@ldr.com.br.

• Economic and financial imbalance (theory of unforeseeability, excessive burden, among others);

• Hardship and renegotiation of contractual obligations;

• Acts of God and force majeure (tariff increases may or may not fall under the legal or contractual definition of force majeure); 

• Risk allocation regimes in contracts;

• Triggering of material adverse effect clauses; 

• Triggering of cross-default clauses in related or linked agreements;

• Economic and financial rebalancing in contracts with public entities, with potential regulatory discussions;

• Modification and interpretation of dispute resolution clauses and applicable law 

• Interpretation and revision of fixed-price or take-or-pay clauses; 

• Abuse of rights and irregular exercise of penalty clauses;

• Assessment of sectoral mechanisms and industry associations for negotiation;

• Negotiation and mediation procedures.

 • Preparation to deal with potential sanctions depending on the escalation of measures taken by the US;

• Fact-finding and risk analysis for the engagement with certain Brazilian entities;

• Setting up crisis and contingency protocols to address new risks.

• Requirements, procedures, and potential law changes Brazil would need to implement in case it elects to adopt measures to suspend IP rights (considering the applicable local law and existing international treaties on the subject);

• IP rights subject to suspension (specific sectors, existing rights, new rights);

• Possible impacts on technology transfer and royalty agreements, especially involving foreign companies;

• Practical and legal differences between the suspension of IP rights and compulsory licensing under Brazilian Industrial Property Law.

WorkGroup Partners

Compliance 
Bernardo Viana
Sergio Bruna

Corporate, Mergers and Acquisitions
Marcelo Droghetti

Dispute Resolution
Helena Abdo
Luis Fernando Guerrero

Intellectual Property
Marcos Blasi

Investment Funds and Market Players
Guilherme Cooke

Oil and Gas
Thiago Luiz

Power
João Pedro Assis

Tax
Eduardo Carvalho
Marcelo Silveira