weighted score 5.6 · nine dimensions
Country Risk Profile
Brazil
Sourcing risk, regulatory exposure and EUDR compliance intelligence for Brazil-origin supply chains.
Forced & child labour
6
ILAB TVPRA 11th edition 2024: sugarcane, beef/cattle, charcoal, Brazil nuts listed. 'Cadastro de Empregadores' (lista suja) — state registry of employers found using conditions analogous to slavery.
Worker rights & FOA
4
Active union movement (CUT, Força Sindical). FOA guaranteed under constitution. 2017 Labour Reform weakened some collective bargaining protections. Better than peers with state-controlled union systems.
OHS & audit transparency
4
MTE labour inspection system functional. Mobile slave-labour inspection unit (GEFM) active since 1995 but geographic coverage uneven across a large territory.
Food & product safety
4
ANVISA (food safety regulator) functional. Beef fraud scandal ('Carne Fraca', 2017) on record. Some SPS compliance issues for agri-food exports to EU.
Environmental & regulatory
8
EUDR high risk — soy, beef, palm oil, cocoa, timber are all regulated commodities with documented Amazon and Cerrado deforestation links. Highest EUDR compliance burden of any country on this index.
Governance & anti-corruption
6
TI CPI 2024: 36/100. Functioning anti-corruption institutions (CGU, TCU) with Lava Jato institutional legacy, but systemic corruption risk remains.
Tariff & preferential access
6
EU-Mercosur agreement reached in principle (December 2024) but not yet ratified. Brazil graduated from EU GSP in 2014 — MFN rates apply to all categories with no preferential access currently.
Non-tariff barriers
5
EU SPS barriers on agricultural exports. Enhanced veterinary controls apply to some beef categories. Residue monitoring ongoing for agri-food products.
Supply chain traceability
7
Cattle and soy supply chains in Amazon and Cerrado regions have documented opacity. EUDR compliance requires geo-referenced plot data that many mid-tier and smallholder suppliers cannot yet provide.
Labour & Social Risk
Labour & Social Risk
- Lista suja
- The 'Cadastro de Empregadores' is a federal register of employers found using labour conditions analogous to slavery. Inclusion triggers financial penalties and restricts access to public credit.
- GEFM inspections
- Brazil's mobile slave-labour inspection unit has operated since 1995 and has freed over 60,000 workers from conditions analogous to slavery — primarily in cattle ranching, sugarcane, and charcoal production.
- ILAB-listed goods
- Sugarcane, beef/cattle, charcoal, Brazil nuts — 11th edition 2024. Risk concentrated in frontier agricultural regions of Pará, Mato Grosso, and Maranhão.
- Urban manufacturing
- Manufacturing supply chains in São Paulo state have lower forced labour risk. Risk is concentrated in rural and frontier agricultural sectors, not urban export manufacturing.
EU Regulatory Exposure
EU Regulatory Exposure
- EUDR exposure
- Brazil is the most EUDR-exposed country on this index. Soy, beef, palm oil, cocoa, timber and derived products are all regulated commodities with documented deforestation links in Amazon and Cerrado biomes.
- EUDR due diligence
- Due diligence obligations apply from 30 December 2024 (large operators) and 30 June 2025 (SMEs). Geo-referenced plot-level data is required for all regulated commodity imports.
- EU-Mercosur
- Political agreement reached December 2024. Ratification requires approval by all EU member states — timeline and conditions remain uncertain. MFN rates apply until ratification.
- GSP status
- Brazil graduated from EU GSP in 2014 as an upper-middle-income country. No preferential tariff access is currently available — all goods enter at standard MFN rates.
Logistics & Supply Chain
Logistics & Supply Chain
- Primary export route
- Atlantic ports (Santos, Paranaguá, Rio de Janeiro) → Strait of Gibraltar → Northwest European ports (Rotterdam, Hamburg, Antwerp).
- Port of Santos
- Brazil's largest port and primary agricultural commodity export hub. Handles the majority of soy, corn, sugar, and beef exports.
- Typical transit time
- 18–22 days from Santos to Rotterdam.
- Seasonal congestion
- Brazilian soy harvest (February–May) creates significant port congestion at Santos and Paranaguá. Lead time planning is essential for Q1–Q2 procurement.
Environmental & Traceability Risk
Environmental & Traceability Risk
- Amazon deforestation
- Cattle ranching and soy expansion are primary drivers of deforestation in the Legal Amazon. Supply chain links between deforestation events and export commodities are documented by Global Forest Watch, Trase, and Imazon.
- Cerrado biome
- Brazil's savanna biome faces significant agricultural conversion pressure. Previously outside Amazon Fund protections, it is now captured under EUDR. Cerrado soy is a growing compliance risk area.
- SISBOV cattle system
- Brazil's national cattle traceability system (SISBOV) covers the formal sector. Frontier and informal ranching — where deforestation risk is highest — has lower system coverage.
- Soy traceability
- Plot-level GPS data is required under EUDR for soy imports. Many smaller traders and cooperatives lack the infrastructure to generate compliant documentation without supply chain investment.