Problems relating to Trade and Investment on Brazil
21. Restrictions on land ownership |
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Issue |
Issue details |
Requests |
Reference |
| (1) Farmland Acquisition Restricted for FFEs | - The Law that prohibits the FFEs' acquisition of farmland in excess of 10% of the farmland area of each village, town and city has not been implemented on the force of the Federal Government Attorney General's Office (FGAGO) holding that the Law is unconstitutional in regard to the provision in the Constitution that prohibits discriminatory treatment to enterprises. However, in Diario Oficial (Official Gazette) of 23 August 2010, FGAGO's admission of its constitutionality and President's consent were published and the provision under the Law has been enforced since this date of publication. - Foreign Funded Enterprises (FFEs) in substance are foreclosed from acquiring of a large-scale farmland in the rural area, so that an FFE's large-scale investment is nearly impossible in Brazil. - Restrictions upon FFE's ownership of farmland. (Foreign funded enterprises are foreclosed from the majority ownership in the land property ownership Right.) |
- It is requested that GOB deregulates or repeals the restrictions. - It is requested that GOB takes steps to change the requirement to notification in principle on an FFE's large-scale farmland acquisition, so that the administrative intervention may take place only at such occasions when the issues such as buying up of the farmland exists. - It is requested that GOB takes steps to repeal the restrictions. |
- National Institute for Colonization and Agrarian Reform (INCRA), Notification No. 70 of 6 December 2011, etc. - The Land Act |
| (2) Compulsory Appropriation of Land Property and Transfer of Easement | - Securing eucalyptus raw wood is important for manufacturing pulps, and MFS owns in Minas Gerais State a large land property. However, in the name of public interest, MFS receives an increasing number of re quests for coercive land appropriation, transfer of easement, etc. threatening land ownership right. MFS, in each case, has to negotiate with the parties in concern, which taking the most out of the available legal means. The costs are climbing. | - It is requested that GOB: -- streamlines the legislation to enable securing the property right, -- amply compensates for compulsory appropriation or move of easement. |
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