Brazil's Minimum Freight Price Bill Faces Senate Deadline

A crucial provisional measure (MP) in Brazil, which aims to regulate minimum freight prices for road transport, is nearing its expiration date of July 16th without Senate approval. This MP, passed by the Chamber of Deputies last month, seeks to enforce a national policy on minimum freight prices, establishing mandatory minimum payments for cargo transport services. The policy, officially known as the National Policy on Minimum Prices for Road Freight Transport, was initially created in 2018 but has faced challenges in its implementation. Provisional measures, while having the force of law upon publication, require congressional confirmation within 120 days to remain valid. Truckers, represented by organizations like Abrava, are advocating for the MP's approval, viewing it as essential protection against exploitation and arguing that the minimum freight price is a law that has not yet been effectively applied. They also cite global events, such as the US-Iran conflict, as factors impacting their livelihoods. However, the productive sector, including industries, agricultural producers, and commerce, opposes the current text. They warn that mandatory minimum prices could significantly increase transportation costs, impacting the entire logistics chain and ultimately raising prices for consumers. Concerns have also been raised about the potential loss of competitiveness for small and medium-sized transport companies that rely on autonomous drivers. The approved text in the Chamber also includes an amendment granting amnesty for fines imposed on truckers during 2022 protests, a provision seen by some as unrelated to the original freight pricing issue. The National Land Transport Agency (ANTT) is designated to periodically update these minimum prices based on fuel cost fluctuations, and non-compliance could result in substantial fines, suspension, or even cancellation of a transporter's registration. The measure also mandates the registration of all transport operations with a unique code (CIOT) to enhance transaction traceability.