The OECD might open a new office in Brazil, says Finance Minister

The OECD might open a new office in Brazil

Following Brazil’s request for membership to the organization, the OECD may open an office in Brazil
Brazil Business

The OECD will soon try to open a new office in Brazil, Finance Minister Henrique Mereilles confirmed today. Mereilles met with the organization’s secretary general, Angel Gurría, and said that their conversations had been productive.

“Brazil’s candidacy as an OECD member country is being very well received,” Mereilles said via Twitter. The minister only joined the social media network earlier on today, using it to publish news of his success.

The new office would be in Brasília. As of yet, however, neither Brazil nor the Paris-based think tank has announced a date for the office to open. Brazil has been cooperating with the OECD since 1994 and began a “key partnership” with the organization in 2007.

The OECD will examine Brazil’s request to join on July 12. If Brazil’s request is accepted, the country will enter a three-year-long negotiation period to establish its terms of membership.

It will also need to create different groups to monitor the country’s compliance with the organization’s recommendations. The organization will monitor issues including the environment, education, and health in addition to the economy.

OECD thinks Brazil is risky

The country made a formal request for membership last week. Mereilles is currently in Paris to negotiate Brazil’s membership to the organization. Brazil would become the 36th OECD member country, joining some of the world’s biggest economies like Germany and the US.

“Entering the OECD forms part of our reform agenda,” Mereilles also said via Twitter earlier today.

But the organization views Brazil as a risky prospect. The country lacks economic stability due to the political scandals taking place over the last few years.

The latest developments in Operation Car Wash are unlikely to result in a refusal for Brazil. But they add to a picture of longer-term instability and a potentially riskier partnership for the OECD. Mereilles is currently in Paris at the OECD’s annual meeting for “risk groups”.

But Brazil doesn’t believe that it warrants this label of “risky.” Mereilles wants to use projected GDP growth, which will surpass the think tank’s minimum requirement by 2018, as a basis for Brazil’s membership. And while Brazil’s Ministry of Finance estimates GDP will grow by 0.5 percent in that time, the OECD predicts a 0.7 percent growth.