RIO DE JANEIRO, BRAZIL – On Friday, May 15th, Costa Rica achieved one of Brazil’s long-standing goals. After passing a tax reform that simplified tax collection, and implementing measures to improve its business environment, Costa Rica was formally invited to become the 38th member country of the Organization for Economic Cooperation and Development (OECD).
The formal accession agreement is expected to be signed in the near future.
“We are delighted to welcome Costa Rica at a time when multilateralism has become more important than ever,” said Angel Gurría, Secretary-General of the OECD, on Friday. “The best way to address today’s global challenges is to have both emerging and developed economies working side by side”.
Founded in 1961 to encourage economic growth and international trade, the OECD is known as the “club of the rich” for grouping together the world’s most developed economies, such as the United States, France, the United Kingdom, Germany, and Japan.
Chile, accepted in 2010, is the only South American representative in the organization for the time being. Other emerging economies, such as Turkey and Mexico, are also part of the group.
Brazil has been applying for a seat at the OECD since 2017. Last year, President Donald Trump endorsed Brazil’s accession process. But despite the US support, the negotiations for Brazil’s accession to the organization have not been unblocked.
The OECD working group on anti-bribery measures and analysis disclosed on Thursday, May 14th, that it is awaiting the outcome of the inquiry into the accusations made by ex-Minister Sérgio Moro against President Bolsonaro to reassess Brazil’s request to join the organization.
Other major points to achieve the OECD’s green light include improving the business environment, as well as stepping up the fight against corruption and investing in corporate governance and public policies aimed at improving the population’s quality of life.
“For 20 years, the business environment has not improved in Brazil,” retired Ambassador José Alfredo Graça Lima, former head of the Brazilian mission to the European Union, said in an interview . “Negotiating with the OECD signals a path”. However, a long road still needs to be traveled to achieve the good practices recommended by the OECD.
Source: Exame