Doing Business in Brazil. Rio de Janeiro. Felipe Hsieh Trade & Receivables Finance, UK October 2012. Quick facts about Brazil. Brazil is Latin America’s largest economy ; among the 10 largest in the world (GDP in 2011: $2.5trn)
Rio de Janeiro
Trade & Receivables Finance, UK
Source: Ministerio da Fazenda
Brazil GDP growth
Source: IBGE, HSBC
A structural shift in Brazil’s demographics
Brazil: Distribution of Economic Classes
(millions of people)
Source: Ministry of Finance
Household ownership of durable goods
Gap between demand and supply (Jul 2008 = 100)
% of Household
Brazilian Foreign Trade
Exports are almost three times larger compared to ten years ago
China represents now 13% of Brazilian exports against 2% in 2000
China represents now 13% of Brazil’s imports against 2.2%
Exports*: Brazil’s Rank and Market-Share
* Data from 2009
Trade between Brazil and UK grew by 4 TIMES over the last 10 years
Goods and services sold by UK institutions to Brazil grew by same rate
Since 1990 Brazil has made substantial progress in reducing border trade barriers (tariffs, import licensing, etc.)
Moderate tariffs, especially on import taxes
Import license required for certain products
Free Ports, Zones
Common Import Taxes:
- Import Duty
- Industrialised Product Tax (‘IPI’)
- Merchandise and Service Circulation Tax (‘ICMS’)
Most of companies have English-speakers, however using interpreters for 1st meeting can be a good idea….
Establishing personal relationships is essential to conducting business
Like South-Europeans Brazilian use a lot of body language and contact
DO NOT attempt to do business during CARNIVAL!
Customers: 5 million
Payments & Cash-Mgmt
l British Embassy, Brasília (Distrito Federal) [email protected]
l British Consulate-General, São Paulo [email protected]
l UK Trade & Investment - Enquiry Service enquiries[email protected]
l Export Finance Programme (Programa de Financiamento às Exportações—Proex) http://www.bb.com.br/.
l Brazilian Association of Listed Companies (Associação Brasileira das Companhias Abertas— Abrasca http://www.abrasca.org.br (Portuguese only).
l Brazilian Export Credit Insurer (Seguradora Brasileira de Crédito à Exportação—SBCE) http://www.sbce.com.br/ us/index.asp
l Brazilian Foreign Trade Association (Associação de Comércio Exterior do Brasil—AEB),
http://www.aeb.org.br/home.htm (Portuguese only).
l Ministry of Development, Industry and Commerce (Ministério do Desenvolvimento Indústria e Comércio Exterior—MDIC) http://www.mdic.gov.br/ (Portuguese only).
l São Paulo State Federation of Industry (Federação das Indústrias do Estado de São Paulo—FIESP), http://www.fiesp.com.br
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