Statement by Assistant to the President for Press Relations Fitzwater on Brazil-United States Computer-Related Trade

June 30, 1987

Because of progress by Brazil in its computer-related trade policies, the President has decided to suspend one of two remaining parts of the unfair trade practice case concerning these informatics policies and to continue discussions on the other part.

In the first part of the case, which was brought under section 301 of the Trade Act of 1974, the President has determined that sufficient progress has been made in that portion of the case dealing with copyright protection for computer software. Last week the Brazilian Chamber of Deputies passed legislation that adequately addresses U.S. concerns about software copyright protection. The President believes this represents a good-faith effort by Brazil to solve this part of the case. The President is therefore suspending the software part of the case for now and monitoring it until the copyright bill is enacted into law.

The other remaining unresolved issue in the section 301 case concerned the ability of foreign computer companies to invest in Brazil. The President has determined that the United States will continue discussions with Brazil in order to achieve improvements in Brazilian investment policies.

In addition, the United States will continue to monitor those parts of the case that were suspended by President Reagan on December 30, 1986. These involve the administrative procedures involved in the informatics law and the scope of the market reserve. The President believes that although U.S. concerns have not been completely satisfied in any single area of the section 301 case, Brazil has made significant improvements since this case was first initiated in September 1985. As a result, the President has determined not to take any remedial action at this time. However, the United States reserves the right to reopen any part of this case if progress does not continue or if any actions are taken that would further impede trade in computer-related products.