Exclusive: Brazil eyes OECD membership to woo investors after recession - sources

Wed Apr 26, 2017 6:13pm EDT
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By Alonso Soto

BRASILIA (Reuters) - Brazil could decide to join the Organisation for Economic Co-operation and Development (OECD) as soon as next month, officials told Reuters, as President Michel Temer seeks its seal of approval for reforms to Latin America's largest economy. 

Temer's intention to join the Paris-based think tank is his latest effort to strengthen ties with Western developed nations after previous Brazilian governments prioritized relations with developing peers.

The OECD advises its 35 members of mostly rich countries and is considered a key influencer in the world's economic architecture.

The final decision, however, hinges on a review of the entry requirements that could mean legislative changes to comply with OECD tax and transparency rules, said one official who asked for anonymity because the matter is not public.

An initial result of the review is expected for May 15.

The official and three other sources said Temer hopes the OECD's imprimatur will attract foreign investment to an economy struggling to pull out of its worst recession ever.

"Membership will guarantee investors that Brazil is seeking market-friendly policies," said another official, adding that the final decision will also depend on the OECD willingness to speed up membership approval.

If approved by the OECD Council, Brazil would become the biggest emerging market member of the group and the third from Latin America after Mexico and Chile.   Continued...