In 1986, several small businessmen dedicated to agricultural agrochemicals decided to found an organization to help them with the registration of their products at the Ministry of Agriculture and represent their views in the areas of industrial and economic policy. Thus was born the Association of National Agrochemical Companies, called AENDA for short. Other companies soon joined this first group, consolidating and developing this associations’s activities.

EXECUTIVE SUMMARY

AENDA is the principal organization which pushed for registration by equivalence and this concept totally changed the agricultural pesticide market in Brazil. The fight to more rapidly implement registration by equivalence continues because the evaluation of technical and formulated product dossiers is still considered to be slow.

AENDA is an information source for its members in real time and a place where the producers of generic domissanitary and agricultural pesticides meet to discuss their problems

AENDA, together with like organizations, was co-responsible for the very successful Brazilian programme for dealing with empty pesticide packaging; and is now active in the question of the reevaluation of active ingredients, fighting for the adoption of rational criteria which consider product cost/ benefit and the interests of the farmer.

AENDA, thoughout the years, has been strongly involved in many different questions, whether they be federal or state regulations, product application and use, tributes and taxes, the patents’ system, import procedures, etc., it being the forum where the producers of agricultural pesticides and domissanitary products will find support for its problems and claims and will act as a spokesman for this group before government institutions.

PHYTOSANITARY PRODUCTS

1st DECADE (1986 to 1996)

These years were marked by the environmental movement and noisy opposition to agricultural pesticides. The country assimilated this new tendency to defend the environment and founded IBAMA – The Brazilian Institute for the Environment and Renewable Natural Resources, and under its orientation Law 7.802 was written and promulgated in 1989, creating the term “agrotoxic”. From this point in time, an overwhelming wave of environmental and eco-toxicological norms, hurriedly and in a disorganized fashion, resulted in the present legislation and caused a strong impact on the business community since the demands and studies requested were completely unknown in Brazil. Obviously, the smaller companies suffered the most.

In this new environment, AENDA had a very important role, which included:

Convincing and stimulating Universities and Research Centres of the need to carry out research and develop services in the areas of environmental toxicology to give Brazil its own knowledge bases. It is worth noting that the reaction was rapid and various centres started to deal with a large demand generated by product registration. Private laboratories were created later and, today, these are well-known in pesticide toxicology.

Besides these worries and the costs necessary to fulfill these new norms, the members still had to race against time because of the product “renewal” date, a concept inherited from the old legislation. Many products would be cancelled because of this. It was AENDA which first fought for the end of “renewal”, under strong opposition from IBAMA and the indifference of other sector organizations. The Association appealed for the intervention of the Federal Attorney General and the “renewal” was stopped.

Closing ranks with other class and business organizations, such as AEASP, ANDEF and SINDAG, in support of a programme for receiving and dealing with empty pesticide packaging, one of the biggest demands of the environmental movement. At the beginning of the 90s, we financed, together with ANDEF, a pilot project in São Paulo and later the organizations created INPEV – The National Institute for Empty Packaging Processing, with proportional funds from all the companies working in the area. This solution for the community was fundamental in reducing tensions and improved the dialogue between those involved.

Closely following the newly-implemented norms by IBAMA, or by the MINISTRY OF HEALTH or by MAPA. A high point was the abolition of the heavy registration taxes illegally established by IBAMA since this was done through a ministerial directive, Ordinance nº 84 of 1996. During 1997, 1998 and 1999, the members were free of these obligations until the government agency reformulated the taxes through Law nº 9.960 at the beginning of 2000, and this is also presently being contested by the association

Dedicating a lot of effort to MERCOSUL, by supporting CIAFA, AENDA’s equivalent in Argentina which proposed the introduction of registration by similarity in the region, a concept largely accepted in developed countries. The concept is expressed in the statement: “Same chemistry, same effects”. Therefore, it guarantees quality and avoids the onerous repetition of toxicological, environmental, agronomical and residue dossiers. Unfortunately, Argentina adopted this concept but Brazil did not until the end of the 90s. This lack of cooperation between governments forced AENDA to drop out of its partnership with CIAFA, while at the same time, a Resolution permitting the free circulation of products within MERCOSUL had been approved and Brazilian businessmen were at a significant disadvantage.

Intense debate on tank mixes, since on the one hand the government wanted to define rules and more tests for registration based on complaints from farmers that agronomists could not issue the Agronomical Prescription because these tank mixes were not described on the labels or inserts, and on the other hand, the multinational companies who saw this as just another obstacle for the generic companies. Based on regional research, AENDA pointed out that this was not a subject for registration but an international practice by farmers. Ordinance 67 was published in 1995, increasing the bureaucracy even more, which only permitted the inclusion of a certain product mixed with another after the written support by the registering company of the additional product. AENDA began to denounce this “elitization” (which multinational would permit the inclusion on its own brand label of a small or medium-sized generic company?). In the second decade, AENDA’s opinion was accepted.

Effectively participating in the debates on state legislations created in the wake of Federal Law 7.802/89. Mention should be made of discussions (and even judicial proceedings in some cases) in Rio Grande do Sul, Paraná, Mato Grosso, Mato Grosso do Sul, Espírito Santo, Minas Gerais, Santa Catarina, Goiás and Rio de Janeiro.

2nd DECADE (1996 to 2006)

In the second half of the 90s, the Ministry of Health set up ANVS – National Agency of Sanitary Surveillance (later ANVISA), which incorporated a series of activities and services of the Health Ministry. This agency also started to emit directives and resolutions, increasing the registration costs to unsustainable levels for small and medium-sized companies and, once more, without distinguishing generic from new products.

Once again, AENDA’s presence was of extreme importance through:

Forming a group of associations when ANVISA was created by a Provisional Decree, and coordinating an economic study which demonstrated to the government the inequality of the registration taxes proposed (in our case, the registration of household cleaning products and the evaluation of phytosanitary processes). This group managed to get the authorities to see sense and the subsequent Provisional Decrees incorporated a discount for company size until the definitive law was promulgated.

Presentation to the government and the community of the system of registration by similarity, through advertisements, talks in the House of Deputies and in the Senate, sending the academic community and various authorities, various international opinions, the American legislation and FAOs recommendations on the subject; as well as innumerable meeting with Ministers, Executive Secretaries, Divisional Secretaries and Area Managers of various government departments.

In 2000, the association managed to negotiate Resolution 104 with ANVISA, which made the more expensive chronic toxicological tests unnecessary for generic product registrations.

Also in 2000, AENDA obtained support from the President’s Office, which issued Inter-ministerial Ordinance 17 for revision of Decree 98.816/1990; and coordinated the work so that the revision did, in fact, include the fact of Similarity in the registration of generic products.

In 2002, this intense fight was crowned with success with the publication of Decree 4074 which finally introduced into the Brazilian judicial regime the concept of Similarity, under the denomination of Equivalency.

Still in 2002, AENDA “negotiated” an agreement with ANDEF which allowed the approval of Law 10.603, the Law of Proprietary Data, which was fundamental for “unlocking” the Equivalency concept. The concept of a New Chemical Entity (adopted in the TRIPS agreement and “forgotten” in the Brazilian Patents Law) was established at AENDA’s insistence and the new data added to a registration dossier were only granted 1 year of protection and not the 5 years proposed by LACPA (the international entity representing the multinationals). Besides this, the Association managed to remove from the legal text the system of financial compensation for the use of a dossier developed by the company which had first launched a certain molecule into the market, as had also been proposed by the LACPA.

Tank mixes: in 2002, the Government finally perceived that Ordinance 67/1995 on tank mixes was an antidemocratic way of conducting registrations in this case, as AENDA had been claiming, and revoked the registration of products for tank mixes through Normative Instruction 46/2002.

In the period between mid 2001 and the beginning of 2003, the Association was working against the antidumping process involving GLYPHOSATE of Chinese origin, promoted by MONSANTO and NORTOX. In spite of the wealth of information presented by the members showing the inconsistency of the arguments in favour of antidumping and the blatant injustice to the Brazilian importers, the government imposed a 35.8% tax on imports from China. However, AENDA’s actions through magazine and newspaper articles and many meetings with Ministers and upper echelon civil servants from various Ministries, left the government with the bitter feeling of supporting a monopoly or duopoly for the principal pesticide used in the country.

In 2004, AENDA carried out a detailed study on the competition of pesticides in Brazil based on 2003 data. The study separated the products into categories: no competition, low competition and good competition. The Secretariat for Accompanying Economic Matters of the Treasury Department became interested and AENDA made an incisive presentation to the technicians of that Secretariat. The importance of generic products was finally accepted by that Ministry.

Since the end of the 90’s, AENDA has being working to solution the problem of the lack of pesticide registrations for the so-called “small crops” and the implications for the Agronomic Prescription; this problem has been aggravated by the successive cuts in active ingredients promoted by ANVISA in the monographies. AENDA considered as a solution the extrapolation of the Maximum Residue Limits of the most important crops to the less important ones, within “similar” crop groups, as recommended by the Codex Alimentarius. This solution was promoted and, finally, in April 2006, the authorities edited a modified version of this model for public consultation.

In this decade, AENDA started to promote its ideas through printed bulletins, called AENDA-NEWS. This name was maintained until 2001, when the layout was modernized and it was printed in 4 colors under the new name, AENDA OPINION. These editorials, by focusing on a single theme and in a hard-hitting style, made history in the sector, and, without a doubt, stimulated change in the registration system, which provided the advance of the generic pesticides.

In this decade AENDA created a service of price collection, under the operation of the Agricultural Economic Institute of Agriculture Secretary in São Paulo. More than a 100 of most relevant brands in the market had their prices systematically monitored and published in the press. Besides, AENDA created an index of “exchange ratio” between the agricultural product value and the value of the technical basket of chemicals used in culture. This tool for economists and farmers covered Cotton, Coffee, Sugar Cane, Beans, Oranges, Corn and Soybean. This wide index was an innovation among the economic-scientific agriculture.

3rd DECADE (2006 to feb.2009)

In 1996 many important companies, such as ATANOR, AGRIPEC/NUFARM, CHEMINOVA, MILENIA, HELM, SINON, left AENDA without explanations. There are rumors saying they were forced by sources interested in stop AENDA’s success, because of the threaten of the market been taken by hundreds of other companies. Due to this sudden fall on its budget, AENDA decreased its structure and had considerably retracted its actions with Government and general public.

In spite of this AENDA continue vigilant to defend the generic products:

In 2006 AENDA worked for the consolidation of the Equivalence regime, certain this is the solution for rescuing the right that the generic firms have to increase their product lines and, consequently, increase competition. It allied itself with farmers’ organizations – CAN and OCB, and from this alliance Decree 5.981 was born in December, coordinated by the Casa Civil (Presidential Staff) with the 3 Ministries involved. The main objective of this Decree is to make the registration process more agile and to introduce improvements for the Equivalence system.

In May 2007, Agriculture Ministry published Normative Instruction no 18 which definitively settled a long dispute over the necessity or not of presenting agronomic efficacy tests to register a generic product recommended for the same uses as a pre-existing product. These tests are not necessary. Once again, AENDA’s position was accepted: “the objective of the Equivalence Principle, in this case, is that agronomic knowledge be widened by the generic companies, which should give priority to their efficacy tests for new uses, in order to differentiate their products”.

In 2007, AENDA was invited by Industry Federation of São Paulo State-FIESP to integrate the Conselho Superior do Agronegócio (Agribusiness Superior Consel), for its important services to the Agricultural Inputs sector.

In 2008, AENDA launched a monthly report which analyses Patent Requests in Brazil. This document allows the associates acknowledge every patent presented to INPI (Brazilian Institute of the Industrial Property) that could not be considered as Novelty or even Activity Inventiveness. This enable the associates contest any patent that could jeopardize their interests.

At the beginning of 2008, when should had finished the antidumping right against the Chinese herbicide GLYPHOSATE imports, the Brazilian government decided to analyze an request postponement of 35,8% penalty over the import price. AENDA, once more, presented solid proves that such postponement could not be justified anyway and technically supported. In spite of, the government had established a value of 11,7% and commenced to work in a revision process. After that, AENDA immediately demonstrated a mistake in the calculus and the government had to diminish the antidumping barrier to 2,9%. During the revision process, AENDA presented new data to cancel the antidumping. In February 2009, the Government decreased the penalty to 2,1%.

The history of Equivalence Registration System is already presenting a relative success. By the end of 2008, the registration numbers were:
-- 88 registers of Equivalent Technical Products was based on 39 active ingredients
-- 82 registers of “Equivalent Formulated Products” was formulated with 26 active ingredients
-- Register requests of Technical Products which were being evaluated, added more 36 at the 39 first active ingredients.

URBAN PESTS CONTROL

AMATEUR GARDENING – AENDA was the principal instigator of the movement in favour of the registration of household pest control products for flower pots and domestic gardens to replace products with agricultural registration. From this arose Directive 322/1997, legislation which, besides regulating the registration of these products in accordance with the Law of Medicine and Sanitary Drugs, also permitted a more effective supervision of sales

DIRECTIVES AND RESOLUTIONS – AENDA also effectively participated in other important pieces of legislation through its dialogue with the Government and other entities, as in the case of the Resolutions on the GEL formulation and containers with a trigger-type mechanism.

HOUSEHOLD PESTICIDE PRODUCTS OR AGROCHEMICALS – The association had to really work hard so that household pesticide products were not considered agrochemicals, as was wrongly established in Decree 4074/2002. Legal opinions were elaborated and distributed throughout the various instances of Government. A solution to this case is still pending, although, fortunately, household pesticide products continue to be registered according to Law 6.360/1976, the Medicine and Sanitary Drugs Law.

PROFESSIONAL GARDENING – After the insistence of AENDA and ABAS for various years to widen Amateur Gardening, ANVISA published Public Consultation nº 46/2005, to regulate the registration and use of products in parks, avenues, sports grounds and other typically
urban situations.

TAXES ACCORDING TO COMPANY SIZE – As already mentioned in the Chapter “The 2nd Decade”, AENDA coordinates a common approach with other entities for the reduction of taxes. An economist was contracted who surveyed the impacts in small and medium-sized companies and the study convinced the Health Ministry to change the rules by introducing discounts for company size.

BANNING OF CHLORPYRIPHOS – Due to incidents with intoxications in Rio Grande do Sul, the Public Prosecutor’s Office opened a lawsuit involving ANVISA and the product manufacturers. AENDA took part in the lawsuit in order to defend its members’ interests. There were 2 years of struggle, with injunctions for and against; innumerable hearings with ANVISA but the latter was forced to cancel the product registrations for the household pest control area. The
judicial process is still pending.

POST-GRADUATE COURSE IN HOUSEHOLD CLEANERS – AENDA and ABAS, with the support of ANVISA and CRQ, organized the 1st Post-graduate Course in Brazil in TECHNOLOGY OF HOUSEHOLD CLEANING PRODUCTS. The course started in October 2005 and lasted for 18 months.

OTHERS ACTIVITIES

Integrant of Federal Ministerial and State Chambers and Thematic Committees.
DATABASE: Registration of Products, Registers in process, Alterations in the Registers,
Legislations, Monographs, State Product Cadasters and Sectorial Politics Data.
AENDA's NEWS REPORT (NOTÍCIAS DA AENDA): Monthly information about the
pesticide sector in Brazil.
INTERNATIONAL PRODUCT NEWS (NOVIDADES EM PRODUTOS): Monthly report
about products on the world.
SIGNALS OF AENDA – YELLOW AND RED (SINAIS DA AENDA): International news
about menaces to the products, including the revaluations activities
Courses promotion, Lectures and Technical Meetings.
Lectures accomplishment in the Parliament, Ministries, Universities, Unions and Rural
Federations, Companies, etc.
Participation in Congresses, Seminars, Fairs and Several Events.
Constant interaction with others entities.
SITE www.aenda.org.br, with some pages:
* Who we are
* Companies associate list
* Papers (AENDA during the year publish some papers in defense of the generic)
* Competition (list of all registered products classified by its market offer)
* Prices (Link with Research Institutes that collect Formulated Products prices)
* Products (Catalog of all products registered according to its use)
* Equivalence (chronological table of all Equivalents Technical Products registered and their
derivative Formulated Products)
* Legislation (Main legal Acts regarding Agrochemicals and Indoor Products)
* Packages (It shows educational folders and lists by State every point to return empty
packages)
* Link’s (it shows other websites related to the sector)
* Contact us

AENDA’S ADVISERS BOARD
Pedro Engels (ENRO) Luiz Eugênio de Freitas (DINAGRO
Thomas Unger (VOLCANO) Milton Kapulskis (SAMARITÁ)
Antônio Sérgio de Melo (PRENTISS) Antonio Damaceno (ROTAM)
Imero Padula (OXIQUÍMICA) John Vieira (CROPCHEM)
Rogério Gabriel (CROSS LINK) Michael Haradom (FERSOL)
Jean-Mark Verduraz (DE SANGOSSE) Fábio Domingues (CHEMOTÉCNICA)
Rodrigo Perez (PR TRADE) Roberto Rozenblum (ROZENBLUM ADV)
Juan Pablo Luco (PILARQUIM)  
EXECUTIVE DIRECTOR
Tulio Teixeira de Oliveira
www.aenda.org.br - aenda@aenda.org.br