Address by Minister Mauro Vieira at the Ministerial Council Meeting of the Organisation for Economic Co-operation and Development (OECD)

Thank you, Mr. Chair.

The digital transition is not only a technological shift — it is a structural transformation that must serve sustainable development, social inclusion, and resilience.

For this transformation to succeed, foreign direct investment (FDI) must be better aligned with national development priorities. Countries must have the policy space to define digital sectors of strategic importance and the regulatory tools to channel investment toward those areas.

Brazil is currently implementing a new productive development strategy, called “New Industry Brazil”, with a strong emphasis on digital and green transformation. In this context, we reaffirm our belief in the role of investment as a vector of productive transformation — not merely a financial flow.

Mr. Chair,

OECD’s work, including the FDI Restrictiveness Index, has highlighted the relevance of sound entry and incentive regimes for digital FDI. But let us not forget that predictability, transparency, and regulatory stability are equally essential.

At the same time, Brazil believes that investment screening mechanisms, if necessary, must be designed and implemented with transparency and proportionality, avoiding undesirable barriers that discourage productive and development-oriented investment flows.

Brazil supports investment facilitation efforts that help improve the business climate while respecting the right of countries to regulate in the public interest.

Brazil has promoted its Cooperation and Facilitation Investment Agreements (CFIAs), which provide institutional dialogue channels, ombuds services, and government-to-government coordination — without relying on Investor-State Dispute Settlement (ISDS).

We are convinced that this approach can be an inspiration for more balanced frameworks for digital economy investment.

Mr. Chair,

Colleagues,

Digital FDI should not undermine the fiscal capacity of developing countries. On the contrary, it must contribute to fairer and more sustainable tax systems.

The implementation of the global minimum corporate tax (GMT) is a major step in reducing harmful tax competition. Brazil has recently incorporated the Pillar Two of the OECD/G20 BEPS framework into its domestic legislation, reaffirming our commitment to building a more balanced and cooperative global tax environment.

Brazil also sees value in revisiting the design of incentive regimes to ensure greater alignment with development objectives, while underscoring the relevance of the ongoing process under the United Nations to negotiate a Framework Convention on International Tax Cooperation.

Finally, countries need the tools to ensure that digital value creation is taxed where it occurs, avoiding a scenario where only capital-exporting countries benefit from the new international tax order.

Thank you.