New Trade Pact Expands International Agreements

After 18 months of negotiations, 34 countries from the Indo-Pacific, Latin America, and Sub-Saharan Africa formalized the Digital and Commercial Pact of the Global South, an agreement combining tariff liberalization on technology goods with common rules for digital trade and intellectual property protection adapted to the realities of developing economies. Brazil participates as a founding signatory and one of the main articulators of the text.

What the Pact Covers

The agreement has three main pillars. The first eliminates or reduces import tariffs on categories such as semiconductors, renewable energy equipment, connected medical devices, and telecommunications infrastructure among member countries. The second establishes rules for digital services trade — mutual recognition of electronic signatures, prohibition of forced data localization as a market access condition, and interoperable standards for digital identity.

The third pillar, considered the most innovative, creates a Shared Technological Development Fund capitalized with contributions from members proportional to GDP, aimed at financing digital infrastructure in remote regions, technical training, and adaptation of technologies to local needs. The fund starts with US$2.4 billion committed for the first three years.

Impact for Brazilian Companies

For Brazil's technology sector, the agreement opens markets in countries where bureaucracy of certification and high tariffs previously made the export of software and digital services economically disadvantageous. Industry associations estimate that reducing barriers could increase Brazilian IT exports by 15 to 20% over the next five years, with highlights for agritech solutions, fintechs focused on financial inclusion, and distance education platforms.