BRAZIL COUNTRY COMMERCIAL GUIDE

Fiscal Year 2004
Preparation Date: July 15, 2003

TABLE OF CONTENTS
1. 2. EXECUTIVE SUMMARY ……………………………………………………… ECONOMIC TRENDS AND OUTLOOK …………………………………….. Major Trends and Outlook …………………………………………………….. Principal Growth Sectors ………………………………………………………. Government Role in the Economy ……………………………………………. Balance of Payments Situation ……………………………………………….. Infrastructure ……………………………………………………………………. POLITICAL ENVIRONMENT …………………………………………………. Nature of Political Relationship with the United States …………………….. Major Political Issues Affecting Business Climate ………………………….. Brief Synopsis of Political System, Schedule for Elections and Orientation of Major Political Parties ……………………………………………………….. 005 006 006 007 007 008 008 010 010 010 011

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MARKETING U.S. PRODUCTS AND SERVICES …………………………. Distribution and Sales Channels ……………………………………………… Use of Agents/Distributors; Finding a Partner ………………………………. Franchising ……………………………………………………………………… Direct Marketing including E-Commerce.. …………………………………… Joint Ventures/Licensing ………………………………………………………. Steps to Establishing an Office ……………………………………………….. Selling Factors/Techniques …………………………………………………… Advertising and Trade Promotion …………………………………………….. Pricing a Product ……………………………………………………………….. Sales Service/Customer Support …………………………………………….. Selling to the Government …………………………………………………….. Protecting your Products from IPR Infringement …………………………… Need for a Local Attorney ……………………………………………………... Performing Due Diligence/Checking Bona Fides Of Banks Agents/Customer. ………………………………………………………………. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT ……… Best Prospects for Non-Agricultural Goods and Services …………………. Best Prospects for Agricultural Products …………………………………….. TRADE REGULATIONS, CUSTOMS AND STANDARDS ……………… Trade Barriers, Including Tariff and Non-Tariff Barriers ……………………. Tax and Fees Assessed on Imports ………………………………………….. State of Espírito Santo Tax-Exemption Incentive …………………………... Customs Regulations ………………………………………………………….. Import Licenses ………………………………………………………………… Automatic Licenses ……………………………………………………. Non-Automatic License ……………………………………………….. Prior to Customs Clearance ………………………………………. Prior to Shipment …………………………………………………... Export Controls …………………………………………………………………. Import/Export Documentation ………………………………………………… Temporary Goods Entry Requirements ……………………………………… Labeling, Marking Products …………………………………………………… Prohibited Imports ……………………………………………………………… Standards ……………………………………………………………………….. Free Trade Zones/Warehouse ………………………………………………... Membership in Free Trade Arrangements …………………………………... INVESTMENT CLIMATE ……………………………………………………… Openness to Foreign Investment …………………………………………….. Conversion and Transfer of Policies …………………………………………. Expropriation and Compensation …………………………………………….. Dispute Settlement …………………………………………………………….. Political Violence ……………………………………………………………….. Performance Requirements/Incentives ………………………………………. Right to Private Ownership and Establishment ……………………………... Protection of Property Rights …………………………………………………. Patents ………………………………………………………………….. Trademarks …………………………………………………………….. Copyrights ………………………………………………………………

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Integrated Circuit Layout Design …………………………………….. Regulatory System: Laws and Procedures (as they pertain to investments) …………………………………………………………………….. Bilateral Investment Agreements …………………………………………….. OPIC and Other Investment Insurance Programs ………………………….. Labor …………………………………………………………………………….. Capital Outflow Policy ………………………………………………………….. Major Foreign Investors in Brazil ……………………………………………... Efficient Capital Markets and Portofolio Investments ………………………. TRADE AND PROJECT FINANCING ……………………………………….. Brief Description of the Banking System …………………………………….. Foreign Exchange Controls Affecting Trade (As Opposed to Investment) . General Availability Financing ………………………………………………… How to Finance Exports/Methods of Payment ……………………………… U.S. Dept. of Agriculture Credit Assistance Program ………………………. Types of Available Export Financing and Insurance ……………………….. Export-Import Bank of the United States …………………………… Availability of Project Financing ………………………………………………. Overseas Private Investment Corporation ………………………….. Ex-Im Bank ……………………………………………………………... Multilateral Development Banks ……………………………………... List of Banks with Correspondent U.S. Banking ……………………………. BUSINESS TRAVEL ………………………………………………………… Business Customs ……………………………………………………………… Travel Advisory and Visas …………………………………………………….. Holidays …………………………………………………………………………. Business Infrastructure …..……………………………………………………. Air Travel ……………………………………………………………….. Local Transportation …………………………………………………... Time …………………………………………………………………….. ECONOMIC AND TRADE STATISTICS ……………………………………. APPENDIX A Country Data …………………………………………………………… APPENDIX B Domestic Economy …………………………………………………… APPENDIX C Trade ……………………………………………………………………. APPENDIX D Investment Statistics ………………………………………………….. U.S. AND COUNTRY CONTACTS Brazilian and Government Contacts ………………………………………… Country Trade Association/Chambers of Commerce ………………………. American Chambers of Commerce …………………………………………... Country Market Research Firms ……………………………………………… U.S. Mission in Brazil ………………………………………………………….. List of Attorneys in Brazil ……………………………………………………… U.S. Government Agencies …………………………………………………… MARKET RESEARCH AND TRADE EVENTS

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Guide to USCS Brazil Commercial Services ………………………………. Industry Sector Analysis Report (ISA) ……………………………………….13.. TRADE EVENTS SCHEDULE ……………………………………………….. 140 141 145 4 .

exports are booming because of the weak real. Despite partial liberalization in recent years. U. Over one quarter of Brazil’s exports go to the United States. Nevertheless. Internal migration from the poor northeastern states continues to produce rapid urbanization in the southeast. and a legal system that is overloaded and often incapable of enforcing business law or intellectual property rights effectively. match-making services and advocacy programs. estimated U. internet. aircraft. it is rich in agricultural. With over 170 million people. President Luiz Inacio Lula da Silva. EXECUTIVE SUMMARY With a gross domestic product (GDP) of $457 billion. Crime. His administration has focused on tax and social security reforms and the fight against hunger and poverty. including explicit as well as hidden costs of doing business (referred to as the “Custo Brasil”).S.br or www.5 % in 2002 and is expected to grow a little over 1% in 2003. and aircraft. particularly in sectors such as computer hardware and software. franchising. Successful negotiations could lead to a reduction in customs tariffs and increased market access for U. Brazil’s gross domestic product grew 1. companies face high tariff barriers.S. coffee. exports to Brazil will reach $10 billion and Brazilian exports to the United States will reach $16 billion. Government anti-inflation policies.S. a heavy and unpredictable tax burden.01.export. exporters. territory. For 2003. has pursued moderate economic policies since taking office in January 2003.S. He has also stated that he is committed to completing the Free Trade Area of the Americas (FTAA) negotiations by the set deadline of January 2005.S. and the continued sluggish world economy have put a damper on growth. exporters. You can also visit the website: www. mineral and industrial resources and offers a substantial market opportunity for U. soybeans. steel.org. the complexities of the Brazilian business environment still create substantial obstacles for U. a difficult customs system. and Sao Paulo and includes automobiles. Rio de Janeiro. Doing business in Brazil requires intimate knowledge of the local environment. of the left-leaning Worker’s Party (PT). Sao Paulo. making it Brazil’s largest single trading partner. Most industrial economic activity is focused around the southeastern states of Rio de Janeiro. health epidemics. Brazil has the 11th largest economy in the world. the U. exporters gain entry into the Brazilian market through market research reports. and economy.S. economic difficulties in neighboring Argentina. and safety and security equipment. the Brazilian currency. The President has promised to respect all contracts and maintain current payments on the external debt. Overall relations between Brazil and the United States are strong. exporters. The Brazilian agricultural sector is well diversified and Brazilians are world leaders in production of sugarcane. telecommunications. drug abuse.FocusBrazil. The Commercial Service has offices in Brasilia. and represents about half of the South American population. Belo Horizonte and Porto Alegre. However. and environmental degradation are major problems that are exacerbated by one of the most unequal distributions of wealth in the world. petrochemicals. many companies find that the opportunities outweigh the risks.gov 5 .S. Yet Brazilians remain an optimistic people and are leaders in Latin America in their calls for free trade and transparent governance. foreign direct investment (FDI). Commercial Service can assist U. Brazil is also one of the top three locations for U. computers.S. Minas Gerais. and orange juice. petroleum equipment and services. uncertainties about future economic plans. With its team of industry sector experts.

In 1994. Brazil initiated an economic stabilization program known as the Real Plan which was highly successful in reducing longstanding inflation. Inflation will likely exceed official targets. The 2001 energy crisis and the resultant decline in economic activity devastated a number of ongoing power generation projects.5%. To reassure financial markets and halt the hemorrhaging of foreign reserves. Foreign direct investment levels dropped from $22.5%. However.6 billion in 2002 as investors feared that following the elections Brazil might default on its foreign debt service.5% for the year. Despite the Lula administration’s strict fiscal and monetary policies. 6 . Power generation recovered significantly from its 2001 crisis levels. Through the first half of 2003.5% by December.5 billion in 2001 to $16. ECONOMIC TRENDS AND OUTLOOK Major Trends and Outlook In 2002. From its inception. However.25% of GDP. the government was forced to devalue and float the real in January 1999. which are currently set at around 8. The exchange rate of the real weakened appreciably during the third and fourth quarters (reaching its nadir of close to 4:1 to the dollar in mid-October between the first and second election rounds) before partially recovering at the end of the year to roughly 3. economic uncertainty remains high and growth will again be modest in 2003. inflation hit a 7-year peak of about 17% by May as the longer term impact of the real’s depreciation and backward-looking perspective of inflationary trends reached the broader economy. probably no more than 1. GDP expanded by only 1. Brazil’s country risk premium for international borrowing has fallen from a high of 24% in late 2002 to just 7% by mid-2003. From October to December 2002 interest rates were raised from 18% to 25% (in nominal terms) in an effort to counter inflationary pressures. 2003. the behavior of the Lula government assured markets that it would continue the orthodox economic and financial policies begun under Cardoso. The real’s depreciation increased inflationary pressure.75% of GDP. the same anemic level achieved in 2001. The first half of 2003 witnessed the recovery of the exchange rate by about 20% against the dollar as markets became more comfortable with the reform-minded policies of the new Lula administration. Brazil has undertaken a number of economic reforms that have helped it absorb these shocks. total electricity consumption remained below its 2000 peak. The plan also inaugurated one of the world’s largest privatization programs. although economic activity showed no signs of picking up. In its agreement. which were a result of lack of rainfall to run hydroelectric facilities. In spite of a $42 billion assistance package negotiated with the IMF and other lenders. which reached 12. when growth slowed. However. the Cardoso administration assured the IMF it would tighten fiscal discipline and strive for a primary budget surplus (excluding interest payments) of 3. the Brazilian government reached agreement with the IMF in August 2002 on a $30 billion Stand-by Arrangement through the end of 2003. the Brazilian economy entered into recession. the Lula administration stated it would raise the primary budget surplus level set under the IMF Stand-by to 4. In the past decade. both foreign and domestic companies correspondingly lost huge sums. Following the Russian debt default in August 1998.5:1. Soon after taking office January 1. By the second quarter of 2003 moderate international borrowing began.02. the government remained in compliance with the terms of the Stand-by. most notably uncertainties regarding presidential elections in October. the Brazilian economy’s dependence on external financing and the government failure to control its finances left the economy vulnerable to external shocks. the Brazilian economy registered its second straight year of lackluster growth due to several factors.

but has exceeded the targets for 2001 and 2002.8% in the quarter. In the petroleum and gas sectors.8%. price. The balance of payments. although PETROBRAS. and removal of impediments to competition. Inflation was on target for 2000. but a large share of generation and transmission capacity is still held by the government. the Lula government has advanced a program of economic reform founded on major changes in Brazil’s tax and pension systems. The Cardoso government broke up numerous federal monopolies in key areas.9% expansion in industry. Manufacturing activity grew 1.9%. In order to achieve more sustainable budgetary equilibrium. a state-owned enterprise. with a 2. the communications subsector turned in the best performance by far with a 7. deregulation. GDP grew 2.2% and transportation fell by 0.4% expansion. Within the industrial sector. with a decline in the current account deficit and less costly foreign financing.0%. compared to the same quarter in 2001. Despite these recent structural changes. although oligopolies have sometimes emerged in their places. Government Role in the Economy Under the development policies of Brazilian administrations since the 1960s. keeping the same 2.9% and construction fell by 2. Its influence was felt not only directly through the day-to-day activities of government entities. In telecommunications. The Cardoso government emphasized greater economic opportunities for the private sector through privatization. the government has recently raised the inflation targets for 2003 and 2004. Agriculture grew by 8.5%.5%. however. Most electricity distribution has been privatized. and education. still dominates the sector. essentially the same as in 2001. the government has established itself as the dominant force in shaping economic growth by means of planning and management.During Cardoso’s second term. highlighted by the passage in May 2000 of the Fiscal Responsibility Law. Commerce rose 0. Reflecting the difficulty of accommodating these shocks.5% band around the central target. The government also initiated an inflation targeting program as the basis for monetary policy. the majority of the private sector has so far been unable to prosper. The proposed reforms were submitted to Congress in the second quarter 2003. Principal Growth Sectors The Brazilian Statistical Institute (IBGE) estimated that the economy grew 1. and credit policies. barely recovering from the effects of electricity rationing in response to the drought in 2001.6% (driven by grains such as soybeans) and services increased 0.5%. Industrial production and services increased by 1. In the services sector. In the first quarter of 2003. the government ended the state monopoly and established a National 7 . safety. In the energy sector. the government began privatizing state entities in 1995 and created the National Electrical Energy Agency (ANEEL) to regulate the sector in 1996. public utility services increased 1. Growth was led by agriculture. is not a concern at present. While the central government retains an important economic role. but also through wage. the policies of the Cardoso administration in the mid to late 1990’s significantly reduced the public sector presence in economic activities and focused government efforts on areas such as public health.5% in 2002. which expanded 5. in which the government sets a target and the Central Bank strives to keep inflation within a target band. and subsidy and fiscal incentive programs. the Cardoso government opened offshore exploration to private companies. the government remained dedicated to fiscal discipline. which set strict limits on government spending at the federal and sub-federal level.

Brazil must make amortization payments of roughly $ 28 billion on external debt in 2003. but both indicate slight growth in Brazilian exports and a steep decline in Brazilian imports of U.6 billion. Based on U.S. and coffee to international markets. show that Brazil ran a $5. including $21 billion in net new financing from the IMF. footware. but not until a subsequent depreciation in 2001 did Brazil register another trade surplus.S. exports of $12. which has experienced explosive growth immediately following privatization.Telecommunications Agency (Anatel) to regulate this sector.S. with U. 8 . and pentup public demand for capital and consumer goods.7 billion current account deficit in 2002 (-1.8 billion. fell by over 50%. Net foreign direct investment. soybeans. turbines.4 billion and imports from Brazil totaling $15. and Brazilian trade figures differ for various reasons. $2.S. include cell phones.8 billion. Brazilian trade statistics. The United States remains Brazil’s largest trading partner with about 25% of its total international trade – roughly equal to Brazil’s trade with the European Union. The aviation sector figures prominently in the trading relationship. the United States ran a $3. Brazil is also a leading exporter of iron ore. the implementation of an overvalued exchange rate. Brazil ran a record trade surplus of around $13 billion in 2002.5 billion in 1994 to sizeable deficits in 1995-98. Balance of Payments Situation Due to market opening policies. on the other hand.S. and components. U. gemstones. The capital account ran a net surplus of $8. The Lula administration has indicated it would continue this effort. the merchandise balance of trade dropped sharply from a surplus of $10. Agricultural commodities remain competitive on world markets. Other leading Brazilian exports to the U. However.S. which had been Brazil’s second largest market. sugar. and autos.4 billion trade deficit with Brazil in 2002. Brazil’s net balance of payments surplus was $ 302 million. well below last year’s pace. largely because of an increased trade surplus and manageable interest payments on its foreign debt. Meanwhile. particularly as Brazil registers bumper harvests in 2003. Infrastructure Most products reach Brazil by sea and must pass through Brazil's inefficiently run and notoriously costly seaports. which declined throughout 2002 to $16 billion. new funds are slowly being made available to Brazil in 2003. Following the steep collapse in international lending to Brazil during 2002. In 2002. From a traditional surplus.7% in 2002 while imports fell 15% as a result of the weakened real and lackluster consumer demand. In the transportation sector.S. Bureaucracy and paperwork can be serious impediments at the ports. products. firms provide hi-tech inputs for final assembly in Brazil. Port reform legislation. Brazil’s leading export to the U. increased exports in 2002 to new markets such as China (up 32%) and Mexico (up 25%) offset this loss. The 1999 devaluation helped reduce the trade deficit.71 percent of GDP).S. the current account deficit was $ 2 million. its second leading import category from the U. Offloading costs are high and ship turnaround time is long. Brazil ran a relatively small $ 7. following a surplus in 2001. the Cardoso government privatized all seven railway firms and has either privatized or turned over to the states most of the federal highway network. Department of Commerce statistics.1 billion trade surplus with the U. was finished aircraft. orange juice. The structure of trade reveals a growing degree of production interdependence as U. was aircraft engines. The trade surplus could reach over $16 billion in 2003. Brazilian exports in 2002 to Argentina. Exports rose 3. Brazil's trade position has undergone a radical transformation under the 1994 Real Plan.S. For the first six months of 2003. shows no likelihood of reversal in 2003.

Brazil derives over 90% of its electricity from its extensive hydroelectric capacity. poorly maintained highway system. Even before the 2001 power crisis. Almost all internal transportation is by truck on a grossly inadequate. the Lula government announced plans to increase hydroelectric generating capacity. As more hydropower generation came back on line in 2002. During the power shortages. The Lula administration has suggested that the government would support augmentation of the country’s rail system. The Cardoso government had promised to privatize the port system. The Rio and Espírito Santo ports in the state of Rio are partially privatized. While the government was successful in privatizing most distribution companies. Brazil’s plans for economic growth are sensitive to repeat power generation problems. Brazil lacks an extensive rail network. although the position of the Lula government towards privatizing the ports remains unclear. With the exception of the southeast coast. However. as well as upgrade transmission systems linking independent systems within Brazil and linking Brazil to its neighbors. However. 9 . Fuel costs are high and add significantly to the cost of transportation. The government required business and residential users in most of the country to reduce consumption by 20 percent from 2000 levels. Adequate rainfall in 2002 and 2003 has alleviated this problem for the time being. At the same time that it seeks to expand the power grid with neighboring countries. analysts had noted a decline in investment in the electrical sector at a time when the economy was growing rapidly.enacted in 1993. Except for the Amazon Basin. the government has sought to convince Bolivia to reduce the offtake price for Bolivia’s natural gas exports. was sufficient to avoid blackouts. market prices for electricity collapsed creating huge losses for the investors. The entire rail system has been privatized. which ran from June to February. The highway network only reaches first-world standards in the state of São Paulo. The rationing program. Costs are lower and turnaround time is shorter there. such an effort is unlikely in the foreseeable future. has not yet significantly improved port conditions. Following in the footsteps of the Cardoso administration. private sector investors had negotiated high price contracts with government generators. In 2001 poor rainfall resulted in a serious production shortfall for the second half of the year. geographic constraints and environmental concerns have limited river transport development. major generating companies remained in government hands.

Brazil’s president came not from the country’s wealthy elites or military but out of the working classes that make up the lion’s share of the country’s 170 million people. 2001. firms in commercial space launches from Brazil’s Alcântara space facility. important topics of discussion and cooperation include counter-terrorism. President Bush invited the President-elect to the White House. Under Lula. in December 2002. After six months in office. each approaching 50 per cent of South America -Brazil is the continent’s dominant country.geographic size. however. Luiz Inacio Lula da Silva was sworn in as Brazil’s President. however. Lula emphasized a strong social agenda.from sending an expeditionary force to the Allied campaign in Italy during World War II to dispatching a battalion to Angola as UN Peacekeepers from 1995-1997 and coordinating the Military Observer Mission on the Peru-Ecuador border (MOMEP).S. a program that became known as Fome Zero (Zero Hunger). the Lula Administration decided to withdraw from Congress a bilateral nonproliferation technology safeguards agreement that would have allowed participation of U. 2003. POLITICAL ENVIRONMENT Nature of Political Relationship with the United States The United States and Brazil have traditionally enjoyed friendly and active relations encompassing a broad political and economic agenda. Candidate Lula won the election by promising a government that would be more responsive to these poorer classes. population. Apart from trade and finance. human rights. easing inflationary pressures and gaining Brazil new international credibility.S. U. many investors and creditors feared the prospect of a Lula victory. Some bumps in the road have occurred. It has also led political efforts for economic integration in the Southern Cone. and environmental issues. Public expectations. although its opposition to the war was generally non-vitriolic. Major Political Issues Affecting Business Climate Lula’s election in October 2002 was a watershed event in Brazilian history. Once in office. During the presidential campaign.-Brazilian contact and cooperation have remained close. In June 2003. an unusual courtesy extended to a non-head of state. the first such cabinet-wide event between the two countries. Prior to Lula’s inauguration.S. peacekeeping efforts. President Lula defied expectations. Brazil led the successful effort to invoke the Rio Treaty of mutual security following the events of September 11. For the first time. succeeding Fernando Henrique Cardoso who had served two four-year terms. anti-capitalist past of the candidate and his Workers Party (PT). resolution of regional problems. and gross economic product. remain 10 . In a move that has both surprised and pleased financial markets. fighting poverty. counter-narcotics. as he is widely known.03. and particularly possible default on Brazil’s foreign debt.-led coalition in Iraq. By most measures -. Markets reacted accordingly in a negative fashion as candidate Lula’s polling numbers rose. It has played an important role in international collective security efforts -. he pledged that by the end of his term all Brazilians would have three meals a day. Brazil did not support the efforts of the U. Looking at the more radical. In May 2003. From October 2002 to June 2003. President Lula is one of Brazil’s most popular leaders in recent history with an approval rating significantly above that of his three predecessors at the same point in their terms. On January 1. the Lula administration continued and in some cases exceeded the economic stabilization and reform programs launched by President Cardoso. President Bush hosted President Lula and the Brazilian cabinet for a bilateral Summit. In a move that energized many impoverished Brazilians. the real recovered about 25% of its value.

and municipal taxes. Both require constitutional amendment. and security. The core challenge to tax reform is to change the state-assessed ICMS (Tax on the Circulation of Merchandise and Services) to a VAT-like tax with just five. the largest state delegation (Sao Paulo's) is capped at 70 seats. and public security. Brazil is a federal republic with 26 states and a Federal District. Of the two. As currently envisioned. demanding two successive votes with sixty percent approval in each chamber of Congress. Meanwhile. become eligible for retirement at an early age. and enjoy no ceiling on their pension benefits. While most proponents agree there should be an evolution to a system of charging at “destination” and not “origin. conversely. State representation in the Chamber is only loosely proportional. The system is governed by the 1988 Constitution. and Deputies are elected statewide. The federal government is comprised of the executive. clearing the way for eventual Central Bank “operational autonomy. which grants broad powers to the federal government. for the moment avoiding more serious ideological clashes with leftists in Lula’s PT. and do away with so-called “cascading” taxes. President Lula’s proposed reforms would unify the public and private sector pension systems for future entrants into the workforce. Years of previous attempts to achieve these reforms have come to naught. It is worth noting here Brazil’s current political structure. private sector workers typically receive just a small fraction of their salaries as pension and max out at a very low level. particularly from Brazil’s governors and mayors who all have status quo interests to protect. three for each state and the Federal District. health. Tackling the abysmal fiscal drain caused by the annual mismatch between the pension system’s receipts and outlays is critical for making available the financial resources to address other social needs such as education. Instead. governors of Brazil’s impoverished northeast states. The Lula administration notched an important legislative victory in April 2003 when Congress voted to amend Constitutional Article 192. There are 81 Senators. the Senate and the Chamber of Deputies. eliminate the most egregious components of the public sector pension system. The current fiscal crater was dug by Brazil’s public sector pensioners who receive an “integral” pension equal to their top lifetime salary. The President may be elected to two four-year terms and appoints his own cabinet which does not require Congressional confirmation. In recent surveys.” governors of major producer states insist on federal compensation for revenue they would thereby lose. The Congress consists of two houses. it would streamline the dozens of different federal. Chamber terms are for four years. pension reform is the most vital. the Lula administration has not been able to distinguish itself in dealing with any of these problems. prefer to tinker with ICMS rates or exemptions as their sole tool for attracting/poaching new investment. Lula has staked his administration’s reputation on passage of two major reforms in 2003 – the pension system and the tax code. hunger. A key stumbling block is the question of whether to collect the new ICMS at the point of production or sale. and limit all pensions to a common ceiling. the government agreed not to submit for now the follow-on law needed to change the Central Bank’s status. and judicial branches.” To do so. The president’s personal popularity could also suffer if he is unable to move the country out of its current economic malaise. Senate terms are for eight years (with elections staggered so that two-thirds of the upper house is up for election at one time and onethird four years later). Meanwhile. legislative. Brazilians listed their three most pressing problems as unemployment.exceedingly high. state. The net result is a system heavily weighted in favor of the less populated states. Each state is eligible for a minimum of 8 seats. So far. and 513 Deputies. 11 . nationally standardized rates. Tax reform faces broad political resistance. the Lula administration’s tax proposal would not lower the overall tax burden.

Following gubernatorial elections in all 27 states. Because of mandatory revenue allocation to states and municipalities provided for in the 1988 Constitution. a consequence of weak internal party discipline. the PFL (three). In the Senate. Although PT presidential candidate Lula won national elections resoundingly in 2002. The following are Brazil's major political parties. PSB. the PT holds just four governorships. Although it lost badly at the federal level in October 2002.Partido dos Trabalhadores (left) PFL . the PT fared less well in state and local elections. PT . Other governorships are held by the PMDB (five).Partido Liberal (center-right) PSB . Sixteen governors are part of the PT coalition. PTB.Partido Progressista Brasileiro (center-right) PL . PSDB. Congress is characterized by a large number of political parties. with three branches of government. the PSB (four). in order of the size of their delegations. States are organized like the federal government. Federal deputies and senators do not always vote with their parties. the PSDB still holds eight governorships. the order of delegation size is: PMDB. and PL.Partido Democrático Trabalhista (left) PCdoB .Partido Comunista do Brasil (left) Two-thirds of the federal Senate seats were up for election in October 2002. PT. and party switching is commonplace.Partido da Frente Liberal (center-right) PMDB .In addition to geographic imbalance. in the Chamber of Deputies 2003 (since it is common for politicians to switch parties. Brazilian governors and mayors have exercised considerable power since 1989. and the PDT (one).Partido da Social Democracia Brasileira (center-left) PTB . the PPS (two). PDT.Partido Trabalhista Brasileiro (center-right) PPB . PFL. 12 . Brief Synopsis of Political System.Partido Socialista Brasileiro (left) PPS . Schedule for elections.Partido Popular Socialista (left) PDT . and Orientation of Major Political Parties All deputies were up for election in October 2002.Partido do Movimento Democratico Brasileiro (center) PSDB . the most of any party. the proportion of congressional seats held by particular parties changes regularly).

companies seeking countrywide presence. Smaller agents may have geographical limitations. invest in market research and test market receptivity thorough pilot projects. larger companies will have sales offices throughout Brazil. Franchising Franchising is one of the healthiest segments in the Brazilian economy and accounts for approximately 25% of gross revenue in the retail sector.. trading companies. foreign groups. The apparent success of local franchise operations is primarily attributed to the speed of service and quality of products offered by these firms. can define the type of warranty. Lawyers recommend that the exporter and representative have a written agreement. Recently. franchisers must be prepared to adapt their product or service to the Brazilian market. we strongly suggest that U. U. This is partly due to high importation and storage costs.S. Under Brazilian law. This document must contain basic information regarding the economic and financial health of the franchisor. In general.S. The advantages of a written agreement are that the exporter can limit his liability in case of any product defects.or their masterfranchisees . companies consult with a Brazilian law firm before signing any type of agreement with local firms to avoid legal problems in the future. import houses. among others. In Brazil franchise consultants call this process “the tropicalization of the franchise. Contract clauses are freely negotiated between the foreign and local firms. MARKETING U. distributors. Finding a Partner Although some companies import directly from foreign manufacturers without local representation. in most cases the presence of a local agent or distributor can be very helpful.should provide all their potential franchisees with a Franchise Offering Circular (Circular de Oferta de Franquia). Use of Agents and Distributors. particularly from the U. an agency agreement entitles an agent to receive a termination amount equivalent to at least 1/12 of all commissions received throughout the contract. as well as information on any pending legal disputes. spare parts. As in other countries.S. It is up to the foreign company and the local agent or distributor to negotiate the type of representation. however. However. Brazilian importers generally do not maintain inventory of capital equipment. the selection of an agent requires careful consideration.04. PRODUCTS AND SERVICES Distribution and Sales Channels All of the customary import channels exist in Brazil: agents. or raw materials. It states that franchisors . industries that rely heavily on imported components and parts are maintaining larger inventories there. whether it is an exclusive representation and whether performance targets are included. subsidiaries and branches of foreign firms. To take best advantage of this huge market.S. due to the creation of additional bonded warehouses. are making their way into the market too.S. 13 .” The Franchising Law requires close attention. protect his trademark and better ensure payments. Local Brazilian Franchises dominate the market (90%). which is key for U.

g. telemarketing. Also. different Brazilian customs rules apply to these types of transactions. postal rates.All Shipments valued above US$500 must be imported by Brazilian companies that are registered with SECEX. Today. the product specific import tariff rate will apply 14 . The Internet is having a profound effect on Brazil. Brazil is an important trading partner for U. exports to Chile. direct marketing is a proven way to reach 35 million middle-class Brazilian consumers. which is perfect for direct marketing. exporters can only sell to Brazilian companies that are registered with the Secretariat of Foreign Trade (SECEX) of the Ministry of Development. Because of its excellent postal service. in these cases.000 members and reported that catalogers. printing and mailing services. particularly for U. telemarketers.S. approximately 20 million Brazilians are on-line on a regular basis and there are 35 million credit cards in circulation. However. As far as shipments to distributors or Brazilian trading companies. U. U. Although the Brazilian market differs from that of the United States in regards to telemarketing. and Brazilians have rapidly become the Latin American leaders in technological innovation and Internet applications. and other subjects vital to direct marketing. exporters do well in South America. In 2001. fulfillment. and service suppliers to the direct marketing industry constantly look to Brazil as a growing market. media. Ecommerce is on the increase and provides many additional marketing and business opportunities. and . companies must track the latest information about direct mail. Brazil.Shipments under US$50 enter Brazil duty free. Growth has been steady and the Brazilian e-commerce sector believes B2C ecommerce will top $2 billion and B2B revenues will reach $12 billion in 2003.Direct Marketing.com is the largest online bookseller in Brazil). Brazilians only receive 10 percent as much direct mail as U.S. U.S. internet marketing. Thus.S. databases. and the first in Latin America with the most advanced Internet and e-commerce industries. E-commerce and teleservice firms have had a significant presence and have successfully marketed their products and services in Brazil (e. DRTV.S. In such cases the following regulations must be noted: . With respect to sales to end users or consumers. The Brazilian Direct Marketing Association (ABEMD) has over 1. taxes. Brazil is the ninth largest Internet market in the world.S. business perspectives for the digital “e-conomy” are optimistic. E-commerce companies. financial service companies.: Amazon. In Brazil. Industry and Commerce (MDIC). shipping. Nevertheless. publishers.Shipments over US$50 up to US$500 are subject to a flat 60 percent import tariff rate (except for pharmaceutical drugs and books which enter duty free regardless of the value of the shipment).S.S. . U. .Merchandise imported under this mechanism cannot be resold locally.S. exporters may sell directly to Brazilian consumers or distributors. leading catalog. regulations. exporters may ship the goods directly to them. mailing lists.S. On average. credit cards. U. U. Brazil has the most advanced Internet and e-commerce industries in Latin America. citizens each year. companies. SECEX plays a central role in the implementation of directives on trade issues in general. including E-Commerce Brazil is a large country. IT firms. tariffs. with a vast untapped interior. U. and Argentina topped 11 billion dollars. financial services.

companies should also take into consideration the local culture and technical requirements. companies must offer high quality products at competitive prices.gov. standards are not acceptable in Brazil. one must often develop different approaches for different parts of the country."sociedades anônimas" or "limitadas.mre. Selling Factors/Techniques Sales are typically price-driven. U.br Steps for Establishing an Office Either setting up a company in Brazil or acquiring an existing entity is an option for investing in Brazil.S. U. Use of a competent local attorney in structuring such an arrangement is advised. and profit remittance. To be competitive in the market. U. To be succes sful in Brazil. A major motivation for joint ventures is to pair foreign firms with Brazilian partners to compete in segments of the government procurement market or in other markets subject to government regulation. For further information please contact the Secretariat of Foreign Trade . although the Ministry of Development has signaled its desire to simplify this process. Other important aspects include financing. 15 . Local law requires that foreign capital be registered with the Central Bank.Country Government Agencies.RJ – Brazil Phone: 55/21) 2206-3000 Fax: 55/21 2263-2539 E-mail : patente@inpi. capital repatriation.INPI Praça Mauá nº 7 .) BRAZILIAN INDUSTRIAL PROPERTY INSTITUTE . and adapt their products accordingly.SECEX or the Brazilian Consulate in New York City. All licensing and technical assistance agreements. In many cases. Due to Brazil’s vast territory and cultural differences. Corporations (sociedades anonimas) and limited liability companies (limitadas) are relatively easy to form.br. Setting up new companies is relatively complex. Licensing agreements are common forms of accessing the Brazilian market. Generally.S. (See Appendix E . (See Appendix E. Contacts. goods are perceived as high quality products.gov.S.) and/or Brazil's Ministry of External Relations' homepage at http://www.S.S.Centro 20081-240 . as described above. must be registered with the Brazilian Industrial Property Institute (INPI). Usually. Acquisitions of existing companies are monitored by the Central Bank. products manufactured at U. but quality is also an important factor. after sales support and customer service. such as telecommunications and energy.rather than the flat 60 percent rate applied to shipments valued under US$500. delivery. joint ventures are established through two main legal formats -.Rio de Janeiro . but the opening of the market in the early nineties upgraded considerably the quality of locally produced products. including trademark licenses." which are legally similar to corporations and limited partnerships companies in the U.S. Joint Ventures/Licensing Establishment of joint ventures is a common practice in Brazil. U. Failure to do so may cause serious problems related to access to foreign exchange.

Walter Thompson Co. sports & tourism. Grey Worldwide. price negotiations are intimately related to the supplier's payment 16 .uol. Foote. Department of Commerce assists U. Duailibi Petit Zaragoza Propaganda (DPZ). The top ad categories per investment ($) are: trade & commerce. Ford Motor Co.000 subscribers. media. culture. Bates Worldwide. companies willing to sell in the Brazilian market should not ignore advertising in these trade publications.com. Lowe & Partners. often the price of products sold in the domestic market reflects financing costs. DDB Worldwide Communications. Institute of Circulation Verification (IVC).com.com ).adageglobal. Pricing a Product Due to high local interest rates.. Participation in Brazilian trade fairs is another important marketing tool. TV advertising in Brazil is also highly developed and plays an important role in the promotion of consumer goods and food products.br). and the top ad-funded web sites in Brazil include Universo OnLine (www.888 on Mondays and 451. Zenith Media. and public & social services.934 on Sundays.12 million copies is a weekly publication called Veja. Grupo Interamericano de Comunicação. Therefore. Y&R Advertising.focusbrazil. Meio & Mensagem (MMOnline). Talent Comunicação . With its well-established and diversified industrial sector. with first-world standards and a high level of creativity.br) with 650. Brazil’s total ad spending two years ago was US$ 6. The U.S. The Economist.S. Saatchi & Saatchi.uol. published by the Abril Publishing Company (www. leisure. J.. Fiat.org. Top advertisers vary from year to year.br/veja) and the biggest daily circulation newspaper is Folha de São Paulo. The Latin American ranking presents both foreign-owned agency networks and indigenous Brazilian agencies with multiple offices throughout Brazil. U.000 subscribers and Terra/ZAZ (www. 449. Brazil accounts for approximately 42% of publicity gross income in the region. but can be listed as: Volkswagen. Ogilvy & Mather. Publicis Worldwide. Fischer America Comunicação. The city of São Paulo hosts around 300 trade fairs per year. According to Zenith Media and The Economist.com. Brazil is home to many sophisticated advertising agencies. and Lopes Consultoria de Imoveis (real estate company) among others.com. Sources: Adage Global (www.uol. with a circulation of 592. D'Arcy Masius Benton & Bowles. Monitor/IBOPE. Leo Burnett.9 billion and the sector has been growing steadily since then. Brazil has a variety of specialized publications that serve the industrial and business communities.br) with 450. TBWA. consumer services. Interactive Media Association. published by the Folha Group. The biggest and most popular magazine in Brazil with a circulation of 1.S. companies seeking to do outreach at several of them (www. Unilever.terra.br/fsp).Advertising and Trade Promotion Advertising in specialized trade and technical publications is an important marketing tool in the Brazilian market. Some of the top networks in Latin America in 2001 were: McCann-Erickson. Cone & Belding. Euro RSCG. These events attract a large number of visitors and exhibitors from Brazil and foreign countries.534 from Tuesday through Saturday (www.

i. military purchases) become very political and are done through “sole sourcing” or “national security” arrangements that exclude competition. which can be difficult and time consuming.S. portions of major projects financed by IDB may not require bidding where local Brazilian counterpart funding is involved. or produced by a Brazilian company. In some cases they are so high that a simple calculation may indicate that there is de facto no way the product can effectively compete with a locally made similar product. In the case of imported products. Under 8666. The Brazilian executing agencies of IDB loans require international bidding above specific ceilings. Most government procurement processes are open to international competition. State. Selling to the Government The Brazilian Government procurement policies apply to purchases by government entities and by parastatal companies. it is important that U. and Municipal levels. domestically produced in Brazil. To be competitive in the market. It is not unusual for a company to select a supplier whose prices are higher than the competition based solely on payment terms. For example.. Following enactment of Constitutional Amendment No. and companies of joint public and private ownership that are controlled by the Brazilian Government. the bid with the lowest price becomes the provisional winner. which suppressed the difference between nationally owned and foreignowned companies. This kind of purchasing does often require an act of Congress. special funds. 17 . the importer or the distributor is responsible for such services. according to IDB procurement guidelines. by entities directly and indirectly administered by the Federal Government. However. several companies are reducing profit margins and implementing efficient logistics systems to reduce costs. Government procurement regulations contained in Law 8666 of August 1993 establish an open competitive process for major government procurement. consultant contracts require international bidding above US$200. In the case of foreign suppliers. of 15 August 1995. preference is given to goods produced or services supplied by Brazilian firms of national capital. In Brazil such costs are generally high. Brazil is not a signatory of the WTO multilateral Agreement on Government Procurement (GPA). i. Nevertheless.terms. After Sales Service/Customer Support The “Consumer Protection Law” of 1992 requires customer support and after-sales servicing. 6. either through direct bidding.e. However many of the larger bids (e. manufacturers appoint agents or distributors in Brazil that are qualified to provide such services. there is no distinction between Brazilian and foreign enterprises in the government procurement process. the World Bank. price is to be the determining factor in selecting suppliers.000 and civil works above US$5 million. consortia or imports. in the case of a tie in the tendering process. etc. and as such does not necessarily use the same procedures as developed country signatories. Therefore. public enterprises.e. Law 8666 establishes general norms regarding tenders and administrative contracts (for goods and services) to be followed at the Federal. it is important to calculate the import-related costs. International bidding is required for all procurements with international development bank funding. The tax burden in Brazil on both imported and locally manufactured products is the heaviest in Latin America and higher than in the United States. the Inter-American Development Bank.g.

is the expert on this topic.br (only in Portuguese).ComprasNet. The proposed changes to the "Project of Law" and other relevant information is available on the Brazilian e-Procurement homepage . it is difficult for foreign companies to operate in the public sector in Brazil unless they are associated with a local firm. or significant subcontract association with a Brazilian firm. 18 .gov. Since the open period for bidding is often as short as one month. In the case of international bids to supply goods and services or specific government projects. "legal presence" in Brazil. cement. and beer sectors.S. Ms. These early proposals can be effective even before the exact terms of an investment plan are defined or the project's specifications are completed. will improve the chances for success. Such a proposal should include financing. supplier may find that inclusion of local purchases of Brazilian goods and services within its bid.Government procurement of telecommunications equipment and data processing (informatics) equipment is exempted from the above requirements. To be considered Brazilian. This year the Ministry of Finance launched a “Portal da Concorrência” (Competitiveness Portal) a website for products in the surgery. and to be eligible for tax and other fiscal benefits based on meeting local content and other requirements. 2002 anyone interested in providing comments and suggestions to the Project of Law was allowed to give feedback. it is advisable to have a partner resident in Brazil able to act on tenders as soon as they are announced. A foreign firm may only bid for government contracts to provide technical services when no qualified Brazilian firms exist. engineering. The goal for launching this site is to heighten transparency in these sectors to promote competitiveness. Similarly.S. a financing proposal that includes credit for the purchase of local goods and services for the project will be more attractive. An U. the Brazilian Government is changing Law 8666 to modify electronic procurement. In practice. A Brazilian State enterprise is permitted to subcontract services to a foreign firm if domestic expertise is not available for the specific task. as well as the basic food basket. successful bidders are required to have local representation -.i. and equipment presentations. Advance descriptions of U. Due to the advance of internet technology and its successes with e-government trials. medications. Based on the comments provided at the ComprasNet homepage. The goal is to create a more efficient system using electronic purchase contracts and to allow small companies to have a better chance at competing with medium and large size companies. a firm must have majority Brazilian capital participation and decision-making authority ("operational control"). the Brazilian Ministry of Planing will work in order to have the project turned into law as soon as possible (it is considered as a priority issue in the Brazilian Congress).http://www. suppliers' capabilities can often be influential in gaining a bid contract. Brazilian Ministry of Planning.e. Until May 17. Renata Vilhana. Deputy Secretary of Logistics and Information Technology Department.. Special requirements were established in 1993 and 1994 allowing locally manufactured telecommunications and informatics products to receive preferential treatment in government procurement.

medical. The inventor has 36 months to request a formal examination of the application. and will then be officially published. including the contents of patents in Brazil and abroad before filing a patent application. and a certificate of filing is issued. pharmaceutical and food products. trade and service marks. An application must be submitted to INPI. Industrial Property The Industrial Property Law (May 15. industrial designs and models. Foreign patent holders have expressed concern about INPI's slow processing of patent applications.gov. 1997. Food. 19 . chemical-pharmaceutical products or preparations.Protecting your Products from IPR Infringement Brazil is a signatory to the Paris. it must be patented in Brazil. and registration of industrial designs. and Universal Copyright conventions on intellectual property rights (IPR) protection. and 12 months for inventions and utility models (a new arrangement of known materials which improve a product).inpi. A patent holder must use the patent commercially or the patent lapses. and the formal examination of applications for trademark and advertising slogan registration.S. The application will be kept secret for 18 months. Brazil is a member of the Paris Convention and thus U. Law No. and proof of compliance with all legal requirements. chemical. patent holders have an exclusive right to apply for patents during certain periods: 6 months for industrial designs. An additional feature is the recognition given to well-known ("famous") brands. and for 10 years for industrial design patents. for 15 years for patents on utility models. Proceedings for the issuance of a letter patent are lengthy and time-consuming. a preliminary formal examination takes place. The protection granted by a patent extends for 20 years. Once the application has been presented. As provided for in article 8 of the Industrial Property Law. Failure to request this formal examination will cause the application to be considered withdrawn. industrial nature. the requirements essential for the granting of a patent in Brazil are: absolute novelty. utility models. Patents For an invention to be protected. in the case of inventions. the WTO Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS). with the exception of cases where priority was previously applied for or a priority claim was made pursuant to the Paris Convention. Prior art constitutes everything that has become accessible to the public through a written or oral description or by use or any other means. A patent is considered to be new when its subject is not included in the prior art concept. always as from the date the request for protection is filed at INPI.br) is the government entity in charge of industrial property rights. and advertising slogans. and inventive nature. and microorganisms are patentable. and the Patent Cooperation Treaty (PCT). and the issuance of letters of patent. a full description of the invention and its drawing (when applicable). The Brazilian Institute of Industrial Property (INPI – www. Brazil is also a member of the World Intellectual Property Organization (WIPO). Letters patent may be issued for the protection of inventions. besides patents of invention. containing the inventor's claims. utility models. 9279) features the granting of patents to medicines. Bern. Granting of any patent application can be cancelled at any time by the courts.

The Industrial Property Law provides for conducts that constitute patent infringement. which is subject to penalties varying from three (3) months to one (1) year of imprisonment or a fine. The use of a trademark is essential to its protection in Brazil. certification that the applicant is a company duly organized in accordance with the laws of its country to operate within its field of business is required.Commercial use of the patent must be initiated within three years of the date of issue of the letter patent. and all rights stem from the registration of the trademark in Brazil. Registering your trademark secures protection and enables the trademark to be licensed or transferred in return for a royalty payment. However. A foreign trademark is registered under the terms of the Paris Convention and thus establishes an exclusive priority. if the foreign owner of an unregistered trademark is able to prove its trademark is wellknown worldwide. The system for protection of trademarks in Brazil is based on ownership. However. which establishes that the signatory countries must deny applications for registration or cancel registrations of a trademark that reproduces a well-known trademark registered in another signatory country. A trademark will lapse if it is not used for five years from the date of registration. A registration is valid for ten years and is renewable for successive ten-year periods. under penalty of obligatory licensing or lapse. or if its use is interrupted for more than five consecutive years. if the inventor fails to pay the required annuities to INPI. Technology Transfer Agreements and Trademark or Patent License Agreements 20 . will constitute a patent infringement. in order to qualify for the benefit of article 6 bis of the Paris Convention. No protection whatsoever is accorded an unregistered owner even though it may have been using a trademark for years. if the inventor expressly waives the privilege. it will be considered a Brazilian trademark. Use can be proved by the owner of the trademark in Brazil or by the licensee that actually uses it. This law determines that the manufacture of a product or use of any means or processes covered by a patent. Registration of a trademark in Brazil may be applied for either by a Brazilian or foreign company. the owner must apply for registration of its trademark in Brazil. and therefore the benefit of such Convention will not be granted. To apply for registration of a trademark in Brazil. Brazilian law requires that the field of business of the trademark owner in Brazil be related to the goods or services covered by such trademark. it is possible to claim the international protection granted by article 6 bis of the Paris Convention. If a trademark registration is applied for in Brazil by a foreign company without the priority claim established in the Paris Convention. or if it is administratively cancelled or judicially annulled. Trademarks Application for a trademark may be either as a foreign or a Brazilian trademark. without authorization of the respective patent owner. Extinguishment of a patent may also occur if its use is interrupted for a period of two or more consecutive years.

INPI approval of patent license agreements is necessary. the tax and exchange legislation. Currently. the acquisition of know-how and technology not protected by industrial property rights. Technology transfer agreements in Brazil are subject to filing at INPI. these contracts are subject to review and approval by INPI. After approval of the Industrial Property Law. simplifying the procedures for approval. INPI review of agreements that involve licensing of industrial property rights (trademarks and/or patents). transfer of technology. to evidence commercial use of the licensed patent and to avoid forfeiture. but also for the deduction of fees paid by the licensee or recipient of the technology as operating expenses. and any characterization of antitrust or unfair competition practices. contracts still have to be registered with INPI. Contracts for rendering of technical and scientific assistance services must state the time required to perform the specialized services. research. However. The license agreements must state the conditions for actual use of patents regularly applied for or granted in Brazil. the registered trademark in Brazil or application for registration. INPI approval of such agreements is not only essential for the registration at the Central Bank of Brazil that will allow remittance of the remuneration abroad. the list of mandatory clauses that the agreements should contain was eliminated. together with actual use by the licensee. the number of technicians required. However. Trademark and patent license agreements must also state whether the license is exclusive and remunerated. and describe in detail how the transfer will actually take place. Furthermore. their specialization and training programs. 21 . it has to register with the Central Bank in order to remit payments. Among other changes. Generally. studies and projects intended for execution or rendering of specialized services. technical assistance services and similar agreements will be limited to examination of the aspects intrinsic to the documents submitted thereto. If the franchiser is a foreign party. as well as to enforce them upon third parties. but to be executable against third parties it must be registered in accordance with Norm 115/93. Trademark and patent license agreements will only entitle the owners to collect fees if the requirements mentioned above are met. and respective remuneration. for instance) may also be submitted to INPI for approval. Franchising agreements are not subject to the same statutory rules as trademarks. and the obtainment of techniques. thus permitting remittance of funds abroad and tax deduction of payments resulting from the transfer. and whether sublicensing is permitted. It is not mandatory to register a franchising agreement to be valid. several requirements for approval of agreements of this kind were eliminated. The term of the agreement must not exceed the validity of the trademark registration or patent. planning and programming methods. technology transfer agreements must clearly state their object and the industrial property rights involved.Companies established in Brazil are now virtually free to negotiate technology transfer contracts. patents and transfer of technology. Other valid documents evidencing the transfer of technology and conditions governing such transfers (invoices.

Law 8248/91 clearly states that as from October 29. 22 . The new law defines a Brazilian company with domestic capital as a legal entity incorporated and headquartered in Brazil. operation. or by a state-owned company. less taxes.Remuneration of the technology to be transferred may be established at a fixed price. The first important modification introduced concerns about the definition of a domestic company for the purposes of manufacturing and marketing of computer goods in Brazil. Law 8248/91 also provides for certain benefits applicable to any company producing computer products. On October 24. although some incentives were left in effect until 1997 as a sop to domestic companies. This should mean the end of market reserve. Although the Informatics Law did not expressly establish the market reserve. and import of computer goods and services. Additionally.exemption from the Tax on Manufactured Products (IPI) until October 29. a domestic company was defined as one incorporated according to the laws of Brazil. On the other hand. and no voting rights should be granted to any alien. 1991. and empowering the federal government to establish restrictions on the manufacture. Law No. 1999 with regard to products manufactured following certain criteria. At least 70% of the total corporate capital should be held by Brazilians. Informatics In October 1984. 1992 no special monitoring of imports or approvals of manufacturing plans would be in force. its decision-making as well as technological and capital control had to be exclusively in the hands of individuals resident and domiciled in Brazil. to qualify as a domestic company. or a percentage of the net sales price. fees and other charges agreed to by the parties. 8248 was enacted. Under article 12 of the Informatics Law. such as: . establishing the principles. marketing. and amending the Informatics Law. objectives and guidelines for the Brazilian Informatics Policy. in fact controlled--directly or indirectly--by individuals domiciled and resident in Brazil. introducing several modifications in the regulation of the computer science field in Brazil. as well as examine and decide on plans for development and production of such goods. Companies not considered domestic (or national) pursuant to article 12 of the Informatics Law could only manufacture computer goods and qualify for the benefits granted by the law if their plans were approved by the Brazilian Informatics and Automation Council (CONIN).deduction of up to 1% of the income tax owed by legal entities investing in domestic informatics companies. a fixed price per item sold. . this was the start of the practice known as market reserve. the federal government used to monitor imports of computer goods and services.deduction of al research and development expenditures up to the limit of 50% of the income tax owed by the company. a percentage of the profits. and . Congress approved Law 7232 (the Informatics Law). and headquartered in this country.

a corporation must hold such rights always at the author s approval. is treated by Brazilian law as owner of the copyright. Any other work that cannot be classified within any of the above categories may be registered at the Brazilian Copyright Information Center of the National Copyright Council. and modifies definitions of reproduction. Infringement of copyright can also be punished as an offense by the criminal courts.at the School of Fine Arts of the Federal University of Rio de Janeiro. trademarks and intellectual property under the terms of the Paris Convention. the person claiming to be the author or whose name is included in the registered work. This provides protection especially against large distributors of pirated software including producers of hardware and CDs. but also corporations are allowed to own the copyright to a work. and not essential for its protection. . sound recordings. Proceedings in the civil and criminal courts may be brought against anyone who infringes another's copyright.at the Brazilian National Library. The registration of software prior to marketing is no longer required. Brazil’s new software law meets the TRIPS accord framework. any person who adapts.at the Brazilian Film Institute. and distribution. translates. Nevertheless. translation. Nevertheless.at the School of Music of the Federal University of Rio de Janeiro. The civil courts prohibit publication of a work which infringes copyright. Registration of a work in Brazil is optional. However. and can also award damages to the owner of the copyright. . transmission. In addition. Criminal and civil proceedings may be brought against infringers. However. Architecture & Agronomy. The copyright piracy is punished with payment of damages and loss of profits. Not only individuals. but he/she cannot prevent the publication of another adaptation. Software 23 .at the Federal Council of Engineering. 9610 of February 19. arranges or edits a work that is no longer under copyright may claim the copyright to the work. pursuant to which all creative works of inspiration howsoever expressed are protected as intellectual property. publication. How does Brazilian Law avoid and punish the property’s copyright piracy? The Brazilian Law protects copyrights. . registration is recommended. Copyrights in Brazil are regulated by Law No. depending on its nature: . arrangement or edition of the same work unless the new version is derived from his/her own. 1999. to secure the copyright the author may register his/her work with the following bodies. in the absence of proof to the contrary.Copyrights Copyrights are protected regardless of whether or not they are registered. concern remains about the lack of effective copyright enforcement against pirated videocassettes. It addresses protection of software programs. or . besides a Court order to stop the piracy and search and seizure of the forgery goods (if required in Court). The author of the work or. books and computer software entering the market.

regulatory precepts or technical standards. if the software is developed independently of any agreement or statutory relationship. granting both Brazilian and aliens resident in Brazil protection equivalent in extent and time. it may be essential to hire a local lawyer. facilities or equipment belonging to the employer or service principal. or if not published. materials. following its creation in each country. plus a fine. causing eventual losses to the foreign company. Unless the parties agree otherwise. in which such activity is carried out by the employee. qualified to act on behalf of the foreign company. and (c) penalties of a criminal nature. Without the appropriate legal assistance. provided it is used exclusively by whoever undertook this integration. provided the author and the software quoted are mentioned. provided this similarity stems from functional features in their application. will belong to the employer or service principal. software owners that reside outside Brazil are ensured protection. and integration of software and its basic features into an application or operating system that is technically indispensable to the user's needs. creating mechanisms for government agencies to monitor this marketing with a view to protecting Brazilian software. consolidating or expanding in the Brazilian market. To operate in accordance with Brazilian laws. or a limitation of alternative forms for their expression. civil servant or individual rendering the services. which provides mainly for: (a) protection of the software itself as intellectual property.reproduction of a copy that has been legally acquired. 9609 of February 19. research or development. and without the use of any resources. provided it is essential to the proper use of the program. Infringement of software copyright is a criminal offense. from compliance with legal. or which results from the nature of the work for which he/she was hired.Protection of software in Brazil is regulated by Law No. the rights to any software developed during the life of any agreement or statutory relationship. According to the Software Law. investors might be subject to several liabilities. civil servant or individual hired to render services as expressly provided for in the respective agreements. the following situations will not violate software copyright: . provided that their country of origin offers reciprocal treatment. and the author need not register it. for cases of infringement of software copyrights and certain rules for marketing. 24 . Software is protected for 50 years as from January 1st of the year following its publication. (b) the rules for marketing software. As with copyrights. The protection of software does not depend on registration. know-how. 1999. partial quotation for educational purposes. which range from a denial of an appropriate authorization to operate in the Brazilian market to facing obstacles with a Brazilian partner. similarity of two copies. Understanding the legal aspects of the Brazilian market is extremely important. Source: 2000 Pinheiro Neto Advogados Need for a Local Attorney Local assistance can be very useful when entering. However. which subjects the offender to detention from six months to two years. Registration can be made at the Brazilian Institute of Industrial Property (INPI). the rights to such software will belong to the employee.

firms to conduct credit checks on potential customers or to obtain important legal advice before signing commercial agreements. Company may not have access to the private and confidential documentation and information. In the event that the relationship with the Brazilian company is strictly commercial. Lawyers can also explain aspects related to real estate. relying only the public investigations regarding the legal and financial situation of the Brazilian company. the Commercial Service can provide U. labor.S. all of which can be complicated in Brazil. It is advisable to check corporate compliance with Brazilian corporate tax laws. Local legal council may also provide expertise in negotiating with local players. and antitrust laws. 25 .S.S. companies with lists of well-known and respected credit rating companies and law firms to assist U. the U. Detailed due diligence on a target company based on all documentation provided by the Brazilian company and field investigation by a law firm is crucial when trying to avoid any negative surprises in the future.S.S. Commercial Service strongly encourages all U. companies to conduct legal and financial due diligence before completing a commercial transaction or formalizing any agreement outside the United States. intellectual property. The Federal Taxpayer Registry Number of the company can help obtain information that attests to the firm's compliance with tax requirements and other public and third party interests. state or federal levels. Performing Due Diligence/Checking Bona Fides Of Banks/Agents/Customer Because laws regulating commercial agreements and commercial transactions vary from country to country.Local lawyers can assist with minimizing your company's tax burden by taking advantage of tax incentives provided by local. In Brazil. the U.

but the general trend has been for Brazil’s spending to increase rapidly. In the second quarter of 2002.5. for a list of trade specialists responsible for the following sectors. LEADING SECTORS FOR U. EXPORTS AND INVESTMENT Best Prospects for Non-Agricultural Goods and Services The following best prospects are ranked by estimated export growth in dollars over the coming year.) RANK 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 N/A N/A Name of the Sector: Computer Hardware. Electronics and Peripherals C.S. According to the Electrical and Electronics Industry Association – ABINEE – the poor result in the IT sector in the last year was due to problems in investments in the energy and telecommunications sectors. 26 . Railroads and Highways Insurance A. The investments in 2002 were affected by the economic crisis in Argentina and the crisis in the Brazilian energy sector. Guide to Commercial Services. (See Chapter 12. ITA Code: CPT Comments: The computer hardware sector is one of the fastest growing sectors in Brazil. Name of Sector: Computer Hardware. In 2002 the total revenue of this sector was $20 billion. Electronics. Rank: 01 B. and Peripherals Computer Software Internet and e-Commerce Services Oil and Gasfield Machinery & Services Airport Equipment Franchising Safety and Security Equipment Telecommunications Equipment Print and Graphic Arts Equipment Iron & Steel Pollution Control Equipment & Services Mining Equipment Automotive Aftermarket Electrical Power Systems Medical Equipment & Devices Aircraft and Parts Drugs and Pharmaceuticals Transportation. the country suffered speculative attacks on the real. This value corresponds to a 3% decrease from the previous year.

from $4. The number of imports into Brazil declined 24%.200.Total Revenue (Billions of Reais) 80 1994 60 40 20 0 15.1 billion and in the previous year the total amount was $13.2 56. The hardware sector declined about 9%. including hard drive assemblies and motherboards. however. Comparing the year 2002 with the previous one. compared to the year 2001. is that the country imports approximately 50 percent of all parts and components used in the Brazilian industry. in reais: Revenues by Segment (R$ Millions) Components Computers Electrical Supplies Home Appliances Industrial Automation Industrial Equipment Power Generation.875 1. Transmission and Distribution Telecommunications TOTAL 2001 5. from $ 5.431 58.4 50. the revenues by segment in 2001 and 2002. However.4 41.3 1998 1999 2000 2001 2002 In the beginning of 2002.431 56.353 02/01(%) 12 -9 1 14 22 8 12 -35 -3 The export of IT products to the United States grew in 2002 from $ 745.114 7. The total amount of imports of the IT sector in 2002 was $ 10.548 11. growth of 7% was expected in the IT sector. Below. The explanation for the growth of revenues in the electronic components segment. this expectation dropped to 0% in the beginning of the second semester of 2002.649 11.185 2002 5.263 14.3 billion. The United States exported to Brazil in 2002 a total of $3.3 billion to $ 4. as previously mentioned.000 to $ 798. from a total amount of $ 1.4 billion in 2002.592 9.292 1.472 7.916 13.4 billion and in 2001 27 .732 4. the revenue of the electronic components sector grew 12%.1 billion.8 37.8 billion. even though Brazil was facing economic difficulties.391 4. the total amount of products exported overseas declined about 7%.542 4.7 billion in 2001 to $4.202 6.088 5.6 58.9 billion to $ 2.

The great increase is due to the energy crisis that affected Brazil in the first quarter of 2002. Name of Sector: Computer Software C. In the first quarter of year 2003. DVDs. The exports into Brazil are expected to grow 7%. based on the improvement of the U. Best prospects for U.3 billion.USAtrade.S. scanners. Currently. ABC Bull. printers. Electronic Components (52%) and Industrial Equipment (46%) were the sectors with the best performance. IDC. network products. including IBM.125 $3.2 $4.357 $10. Microtec.the exports into Brazil reached $4. Global players. The computer hardware sector in Brazil is likely to continue expanding as industry and commerce continue important automation upgrades.6 billion (a decrease of 26%). the U. exports of computer hardware include laptops. UIS and Tropcom. Brazilian exports are to increase 4%. Therefore. and the number of home users continues to grow.405 2003(*) $22. Hewlett-Packard and Dell Computers. The hardware sector grew 22% in the first quarter of 2003. there are excellent opportunities for US exporters of electronic hardware and peripherals. This increase is related to the increase of competitiveness and reduction of the import tax (II) and exemption of the Industrialized Product Tax (IPI).619 2002 $20. and Argentinean economic situation.S.gov).00 = R$ 2. ITA Code: CSV 28 . ABINEE A. for the end of year 2003. resulting in the purchase of new equipment/home supplies in order to reduce the consumption of electrical energy. 2001 $20.78 $745 $4. Companies manufacturing PCs locally receive fiscal benefits through the “Basic Productive Process” and through the “Informatics Law” which assures more competitive prices to local PC manufacturers. under the Provisory Messure 100/02 (please see related IMI report available at http://www.S. IT Sector Market Size Exports to the U. Brazilian imports of the electronics sector grew 18%. locally manufacture most PCs sold in Brazil. Other major manufacturers are Itautec. The great number of Brazilian imports of computer hardware and peripherals reflects the fact that local production for such parts is not keeping up with local market demand.318 $4. It is expected that by the end of 2003 the revenue of the IT sector will reach $22.S.664 $13. storage devices and quickcams.35 (Billions) (Thousands) (Millions) (Millions) (Millions) (*) Statistics are unofficial estimates. supplies 57 percent of Brazilian imports of such products.3 $837 $4. BNDES. representing an increase of 11%. exports Imports Imports from the U.S.80 (July 2003) Source: SECEX.10 $798.5 $11 $5. Compaq. handheld devices. Rank: 02 B. compared to the same period in 2002. Exchange Rate: US$ 1.

Brazil has become the world's seventh biggest software market. of which almost 80% originated from the U.300 The above statistics are unofficial estimates. Total Market Size E. Brazilians have a high regard and strong preference for U. Of this amount. The Brazilian market for software represents one of the best opportunities for U. retain clients. Industry experts predict total software sales in excess of US$ 8 billion in Brazil during 2002.7 billion in 2001.S.700 4.S. Brazil offers significant opportunities for U.400 4.000 4.S. and enterprise resources planning (ERP). As the largest and most dynamic IT market in Latin America.5 billion will be sales of imported products.00 = R$ 2. Security software will be in high demand. US$ 3. As a result of the 2002 economic slowdown and the economic forecast for 2003.S. similar in size of the software markets of the world's most populous nations.700 3. China (sales of US$ 7.000 2002 8.500 3. as well as the government sector. (*) Source ABES . dollars .S. suppliers as long as the Brazilian government and private sectors make meaningful progress toward reducing intellectual property rights violations. Security is the number one solution sought by the financial and telecommunication institutions. exporters. suppliers to introduce new products to this market. supply chain management (SCM). companies that can offer competitive prices. The role of the U.300 100 3.600 200 3.S.S. electronic document management (EDM). Brazilian manufacturing and service corporations have a significant need for software solutions that will help them reduce costs.According to the Massachusetts Institute of Technology.200 100 3. Imports from the U.9 billion) and India (US$ 8. suppliers of IT products and services. as the primary source of software for Brazil paves the way for U. Total Exports G. 2001 7. database management. which indicates a high inflation rate and reduced economic growth. with sales of US$ 7.S. and increase profits through automation of their operations.200 2003 8. SOFTWARE/SERVICES REVENUES 2000/2001/2002 (In US$ million) D. despite the budget constraints that companies continue to face in 2003.US$ 1.800 3.Massachusetts Institute of Technology The Brazilian packaged software market has enormous potential for U. technologies and will buy from U.2 billion). Total Local Production F. The software packages that will continue to be in the highest demand in Brazil are those for customer relationship management (CRM). business intelligence (BI). Total Imports H. 29 . Software revenue in Brazil now equals almost 1% of GDP.80 (June 2003) .S.2003 Estimated Exchange rates: values expressed in U.S.

From e-gov to e-business. and Brazilians have rapidly become the Latin American leaders in technological innovation and Internet applications. Some of the factors influencing such growth are: (1) large user base. Rank: 03 Name of Sector: Internet Services and E-Commerce ITA Code: ECC. 30 .” Other ISPs include Terra Lycos (owned by Spain’s Telefonica). IT firms.com. At-home usage in Brazil is growing as fast as in more advanced countries. and (5) the Brazilian Government’s new project to extend Internet access to all citizens. Brazilian teens have spent almost 14 hours a month on the web. Analysts expect that this will enhance price competition among service providers. The Internet is having a profound effect on Brazil. e-banking and e-commerce. Brazil’s profile in the Internet is growing. etc. second and third places: UOL. counterparts. Brazilian executives surfed the web at home almost the same amount of time as U.000 ISPs in Brazil. it is a very important trading partner for U. CSV. more than the time they use to read newspapers or going to the movies. Teenagers. O Site. internet Gratis (iG). This segment continues to receive significant investments. According to the Brazilian Association of Internet Service Providers (ABRANET). thanks to the rapid expansion of the telecommunications sector in the past years. there are currently more than 1. In 2002. Thus. The Brazilian e-market continues to grow at a steady pace.S. Matrix. Globo. but only five large companies hold 50 percent of the market share (in Internet users). from real-time news to state-of-the-art software solutions. BOL (Brazil Online) and ZipNet. there was a growing use of the Internet in 2002. a figure that places Brazil among the global Internet elite. (2) state-of-the-art banking equipment. Brazil is the ninth largest Internet market in the world. (4) a wide array of Portuguese language content providers. with over 1 million subscribers. particularly for U. The market leader for paid Internet access is Universo Online (UOL). The UOL group is ranked first. (3) large local retailers with strong brand recognition. In addition.S. executives and professionals are usually the heaviest web users. it is also the largest Brazilian portal and has attracted many business partners with its e-commerce site “Shopping UOL. CSF.S. especially in the broadband segment. Besides being the largest ISP. and the first in Latin America with the most advanced Internet and e-commerce industries.IT service providers will likely review service and product portfolios strategically repositioning their marketing plans towards small contracts. when Brazilian users ranked even higher than European ones in time spent and relative usage of audio-visual content. TEL Brazil is Latin America’s largest Information Technology (IT) market and the Brazilian ecommerce sector continues to grow with B2C e-commerce expected to top $2 billion and B2B revenues to reach $12 billion in 2003. companies. There are approximately 20 million Internet users in Brazil. America Online (AOL Time Warner). despite the economic downturn of last year. A few large Internet Service Providers (ISPs) dominate the Brazilian market.

the second largest Brazilian supermarket chain). Broadband access is still expensive in Brazil and only a few Brazilian families or corporations can afford it. household items. the market penetration is still low. car accessories. Although a large number of Brazilian and Multinational companies made significant investments to develop e-business. e. and increased availability of credit lines for the acquisition of the first family computer. “Livraria Saraiva” (a bookstore chain). Brazilian consumers have begun to buy items such as computer peripherals and accessories. there has been a significant growth in Internet use by lower income individuals. who have access to computers and other necessary hardware to access the Internet. Most local Brazilian sites are dedicated to books. performing various transactions such as obtaining checking balances.S. Brazil has developed one of the most advanced home-banking systems in the world. used to shopping internationally and is becoming more and more used to on-line shopping.com” (Grupo Pão de Açúcar. and software are still the most frequently purchased items. toys. Nevertheless. Dell Computers is a good example of a U. a number of local on-line auction sites continue to offer their services. numbers point to a different reality. and applying for loans on-line. In 1999. Besides the decreasing of Internet subscription costs and the availability of free Internet providers. which opened a plant in Brazil in 1999 (Rio Grande do Sul) and has been fully operating in the Brazilian e-business scenario. Through an early focus on PC banking and Internet-based offerings. etc. banks. clothes. only 5% of the industry is currently utilizing B2B tools to perform sales (Source: The Industries Federation of the State of SP-FIESP). up from just 5 percent three years ago. and others (including auction sites and virtual automobile dealerships). Internet Banking: Thanks to Brazilian banks. Brazilian companies know they must rush to do their homework.com” (books and CDs). there are other reasons for the popularization of the Internet among lower-income users: initiatives to make computers available in schools and public places. computer software and hardware. 31 . Mercado Livre.com” (a major retail chain). The penetration rate is limited due to the relatively small portion of the population in the upper and middle classes. groceries. They hope to dramatically increase sales through on-line channels. Arremate.g.5 million Brazilian consumers had accessed their banks via direct dial-up or the Internet. approximately 1. “Americanas. Bad income distribution limits the number of domestic users. and Lokau. cosmetics. In the “Consumer to Consumer” segment (C2C). making transfers. CDs. of which “Bradesco” (the largest private Brazilian retail bank) was the pioneer. highly sophisticated. airlines. brokerages. It is estimated that one fifth of Brazilian Internet users have made on-line purchases.com.Fierce competition among Internet Service Providers has caused access costs to fall. who now represent 17 percent of Brazilian net surfers. the country is on the cutting edge in the development of secure e-commerce technology. electronics. For example. However.. based computer hardware company. but the web reaches more than 80 percent of the upper-middle and upper classes. E-Commerce & E-Business: The “Business to Business” (B2B) segment is still timid in Brazil and is concentrated in a few large companies. “Webmotors” (used-car sales) and “Submarino. While books. The average Brazilian on-line consumer is well educated. In contrast. vitamins. in the state of São Paulo. music. Among the main “Business to Consumer” (B2C) players are diverse retail companies such as “Amelia.

3 billion from 2003 to 2007.S. According to Brazil’s version of the IRS.300 3. These companies were awarded nearly 90 oil blocks during the four rounds of oil concessions offered to date in Brazil. the largest Brazilian company. Brazilians have been filing their federal tax returns via the Internet since 1996. In schools. more than two thirds of all federal services are available over the Internet through the portal www. it plans to make about 20 percent of its acquisitions – for about $1billion – via the Internet. ITA Code: OGM/OGS The Brazilian oil and gas sector is considered one of the most attractive markets for U. and the public health system to the Internet. the postal and delivery systems that service Brazil are still inadequate in light of the high volume of small packages that characterizes business to consumer e-commerce. ( in US$ Millions) Total Market Size (B2B+B2C) Imports from the U.200 2003 (*) 14. Future Challenges: Economic and technological issues that have impeded the growth of the Internet and e-commerce in Brazil are gradually being resolved. industry due to the investment plans of over 30 international petroleum firms led primarily by Petrobras. Sao Paulo’s telecommunications operator.br. Rank: 04 B. 2001 5. the “@jato” service. alone.900 3.5 million bopd and exported around 32 . 12 million people filed their taxes over the Internet last year (95 percent of filers). Telefonica offers high speed services through the Asymmetric Digital Subscriber Line (ADSL) and TVA cable television offers high speed Internet access through cable modem technology.gov. 7 million students in 13. Name of the sector: Oil and Gasfield Machinery and Services C. Petrobras’ goal is to reach self-sufficiency by 2007 by increasing capacity to 2.300 Exchange Rate: R$ 3.000 schools are expected to be connected over that period. local telephone charges remain high as calls are still billed on a per minute/per pulse basis.2 million barrels of oil a day (bopd).000 2002 9. Forrester Research & Boston Consulting Group A.200 3. In addition. museums and libraries. The federal government announced that next year.20 = $1 (June 2002) (*) The above statistics are unofficial estimates Sources: IDC Brasil.S. According to the federal government. the potential for e-commerce transactions will grow as well. Additionally. following its revised strategic plan announced in May 2003. The federal government has pledged to invest about $1.e-Gov: The most visible impact of the Internet revolution in Brazil has been the presence of the Government of Brazil on-line. and all corporate returns were filed electronically this year. In 2002 Petrobras produced about 1.500 public access terminals over the next two years.Brasil. As these issues are resolved.4 billion over the next five years to connect public schools. the national post office system is preparing to install 5. through the federal acquisitions site Comprasnet. PC ownership is increasing as prices decline with the introduction of cheaper models. However. High Speed Internet Access: High Speed Internet Access is already a reality in certain regions of Brazil. despite improvements. Petrobras plans to invest US$34.

U. However. However. Overall. Brazil refined a total of 1. oilwell completion systems. Nigeria or Angola.) Petrobras’ net revenues in 2002 reached US$22. may translate into a total of 2.S. for example flexible pipes. Petrobras has also recently discovered a giant non-associated gas field with 70 billion m 3 estimated reserves capable of producing 10 million m 3/day. and the outlook for 2003 is positive despite a stronger emphasis on local content in future Petrobras purchases and in new oil concession contracts.“ABC of Registration/Vendors’s List Registration Guide” available in English).com.1 billion in 2002. This amount of investment is primarily for exploratory activities. the average percentage of local source commitment was 34%.6 million bopd (1. This oilfield will produce 70.6 billion. In the June 2002 round. in May and in June 2003. In 2002. Other companies including Shell/Enterprise Oil. of which around US$ 3.250.000 of imported oil. and Phillips Petroleum (many of which are already Petrobras partners) are expected to invest a total of $4 billion a year to fulfill their contractual obligations as a result of having won oil concession rights.000 bopd. their investments in Brazil may triple. the commercial success rate in exploration activities has decreased in recent years when compared with the Gulf of Mexico. Oil exploration and production (E&P) is expected to account for 70% of Petrobras’ annual investments. companies interested in supplying equipment or services to Petrobras must register at the Petrobras website (www. The fifth oil round 33 . considering that Brazil already has a long-term gas contract with Bolivia. drill pipes. Shell will be the first foreign company to start production in Brazil as of 2003 through a partnership agreement with Petrobras. pumps. The only exception was in 2001 when Petrobras discovered the giant Jubarte/Cachalote fields (970 million barrels of oil) in the BC-60 Block located in northern Campos Basin along the southern coast of the State of Espírito Santo.br . This amount corresponds to about 30% of Brazil’s proven gas reserves which currently stand at 231 billion m 3. subsea services and others.2 million barrels of domestic oil and 360. The total Brazilian market for oil and gas equipment and services was projected at US$ 10. Opportunities will obviously abound for U. To develop this field. Exxon-Mobil. down from 47% in the 2000 oil round.S. Petrobras is currently the only oil and gas producer in Brazil. added to the 2001 Jubarte and Cachalote findings. These four new discoveries. suppliers of offshore and onshore equipment and services. More recently. oil and gas equipment/services in 2002 is estimated to have surpassed US$ 1. The Brazilian import market for U. Petrobras found a total of four new fields in the same promising BC-60 Block (one containing reserves estimated at 630 million barrels and three with estimated 500 million barrels).12 billion is represented by imports.000 kilometers of seismic lines and drilled about 200 offshore wells. Petrobras will invest about US$1 billion. ElPaso/Coastal. oil companies have ordered over 400. A total of five new oil production platforms should be built over the coming years to add to the 96 Petrobras currently has in its portfolio.petrobras. valves. most of which have Petrobras as the operator. Chrevon-Texaco.000 barrels. Additionally. it will need to build a 130 Km-long gas pipeline. Should these companies succeed in finding “commercial oil”.9 billion. In the third oil round held in June 2001.S. In the last few years. any decision to develop the field will depend on the market potential for this gas. commitment averaged at 40% for the exploration phase and 55% for the oil development stage. in which it has an 80% share as the operator in the Bijupirá-Salema project.1 billion barrels of oil in reserves. there are currently 50 onshore and offshore drilling rigs with ongoing activities in Brazil.

8 billion by 2005 in selected refineries. as long as they remain in the country for less than 24 months.2 million barrels/day over the next years. the Brazilian Government (GOB) created a special federal tax exemption regime (Repetro) in 1999 to last until 2007. although the Repetro philosophy was for “temporary” admission of products. As part of its environmental programs. the environmental area has merited further attention from Petrobras after the company experienced major oil accidents in recent years and in view of more stringent environmental legislation.8 million barrels/day. Recently. Additionally. Petrobras plans to disburse a total of $4. installed oil bearing detection and soil movement monitoring systems.000 barrels of oil and 26 million cubic meters of gas a day. They lobby for an extension of the Repetro regime while they also urge the Brazilian Government to reconsider current fiscal terms as a whole for E&P activities.scheduled for August 2003 will place heavier weight on domestic purchases as an evaluation factor to award oil concessions.000 kilometers (620 miles) of new oil and gas pipelines over the next three years. Although foreign suppliers tend to be more price competitive and offer advanced technology not yet available in Brazil.3 billion to include the installation of a fixed pumping station platform to drain about 630. Part of these investments will be allocated to operational safety and environmental upgrades. (Note: Brazil’s current refining capacity is about 1. In an attempt to attract foreign investors to the oil and gas sector.) The increase of oil production in the giant Campos Basin in the State of Rio de Janeiro will require the construction of 1. 2001 2002* 2003* 34 . Petrobras also plans to build a new refinery in Brazil by 2005 to increase Brazil’s refining capacity to 2. whereas the weight on bid bonuses. however. and upgraded oil spill detection systems in deep water. Although domestic suppliers are also eligible for Repetro. the State of Rio de Janeiro abolished such ICMS exemption on the imports of oil and gas equipment. U. companies are encouraged to seek partnerships with local suppliers. in practice it applied to items such as production platforms which end up staying in Brazil for up to 20 years. These projects will demand investments of over US$1. foreign suppliers have benefited the most as they were exempted from ICMS state sales tax as well. Specifically. Oil companies see such taxation changes as a deterrent to further investments in Brazil. This strategy is particularly advisable in view of the current exchange rate volatility and due to the aforementioned increased local content commitment. Petrobras has installed automated supervision at main pipelines. Petrobras also has significant investments in progress to improve the quality of its oil products (mainly diesel and gasoline) to face the recent opening of this market to imported products. They argue that the trend in Brazil is to find heavy oil in ultra-deep water. the most relevant criteria in previous oil rounds. although it excluded oil rigs and other equipment for exploration activities. which increases the risk and costs and reduces the rewards.S. contracted risk analyses and subsurface hydrologic studies. In the downstream area. will decrease from 85% to 30%. as well as to other types of equipment installed at depths of 1500 meters.

(US$ millions) Total market Local production Exports Imports Imports from the U. and parts for radar maintenance.460 90 2. Total Imports from U. building.S.875 12. who estimate very small growth in the next three years. Rio de Janeiro. baggage X-ray inspectors. Total Exports D. These investments will be made in conjunction with state governments as well as with private sector corporations. Estimated figures for local production were obtained through industry experts. INFRAERO is responsible for designing. Recife.870 5. operating and managing 65 airports and 82 navigation support stations that carry air traffic control. Salvador. *The above statistics are unofficial estimates. It is therefore up to the contracted company to decide whether it will use foreign or domestic partners.5 m $148k $126k $4.860 65 3. Porto Alegre.500 1. telecommunications services.375 10. Most equipment is imported from the United States. The company headquarters are in Brasília and there are seven regional business centers located in Belém.9 m $129k $109k $3. Total Imports E.385 8. Brasilia. sniffers. A. Total Market B. The following products in the airport sector have the best potential in Brazil during 2003-2004: passenger bridges. Spain. radars. Brasilia. and flight protection.5 m $1. ITA Code: APG To increase the quality and integration of Brazil’s airport system – previously comprised primarily of ex-military base landing strips . Recife.9 m $207k $176k $20.88 (June 2003) * Statistical data are unofficial estimates 7. 2000 $3. Portugal. Manaus.8 m 35 . and Rio de Janeiro downtown airport (Santos Dumont). metal detectors. INFRAERO plans to invest around $1.7 m $244k 2001 $4.S.590 1. All airport construction projects are contracted by INFRAERO through a public auction. The largest investments will be made at Sao Paulo International Airport (Guarulhos). The project has been offering good long term market prospects for U.095 75 3.Empresa Brasileira de Infra-Estrutura Aeroportuária (INFRAERO) has been working on airport modernization projects since 2000. Rank: 05 B. and São Paulo.S. There are no official statistics regarding local production for airport and ground support equipment. firefighter trucks.65 billion through 2006 to upgrade and expand its airport network.125 1.00 = R$ 2. Exchange Rate: US$ 1. Local Production C.3 m $7k 2002 $20.145 7. Name of Sector: Airport Equipment C. manufacturers. and Germany.975 Sources: Petrobras/Brazilian trade associations and industry analysts A. Maceio.

625 8. Market statistics for franchising (US$ millions) Total Market Size Total Local Production Total Exports 2001 7. however.20 A.000 franchise units. Sector: Franchising C. franchisors must adapt to meet required market norms and standards. foreign groups. and Rio Grande do Sul.875 2003* 9. Local Brazilian companies form the vast majority of franchises in Brazil (about 90%). the segments that yielded the most impressive results in terms of financial growth and unit expansion are Personal Accessories (+33%). According to ABF. the continued growth of franchising in this market has strengthened Brazil’s franchising system to such that it is now one the world’s third strongest. the franchising system continues to boom. franchises are often advised to find a suitable local partner to adapt and develop U..S. U. the reform of the Franchising Law in 1994 has granted greater investing opportunities to foreign franchises. outranked only by the United States and Japan. are making their way into the market too.Source: SECEX . Health and Beauty (+16%). the continued success of the Brazilian franchising system is in part due to the increase in participation of already consolidated businesses exploring alternative avenues of expansion. ITA Code: FRA After nearly two decades of success in Brazil.750 7. Rank: 06 B. particularly from the U. Parana. As of 2002 it accounted for 25% of the gross revenue in the retail segment with around 800 franchise chains and 56. Foreign franchises are now allowed to remit royalties to their countries of origin. generating over 350.000 jobs. Between 2001 and 2002 the Brazilian franchising system boasted more than eight billion dollars in sales. According to a recent survey conducted by ABF.662 - 36 .030 2002 8. franchise concepts suitable for the Brazilian market. invest in market research. Most of the franchises are already established in the state of Sao Paulo. companies should register their trademarks in the Brazilian market as soon as possible to avoid problems in the future.812 7.S. Recent figures for 2001-2002 show an additional growth of 12% in the Brazilian franchising industry.Secretaria de Comércio Exterior/ INFRAERO/ SATA – Ground handling equipment/ IMAM Exchange Rate: US$ 1. followed by the States of Rio de Janeiro. Minas Gerais. Strict regulations preventing foreign franchises from remitting royalties to their headquarters contributed to the dominance of Brazilian franchises over their foreign counterparts. According to local sources. However. divided into approximately 30 business segments. U. franchise consultants refer to this process as the “tropicalization” of the franchise.S.S. and Education and Professional Training (+14%). However. test market receptivity through pilot projects and adjust their concepts to Brazilian business practices and consumer tastes. U. In Brazil. Sports.00 = R$ 3.S.

and kidnapped every few hours. There are opportunities in almost all segments.S. Foreign products supply about 75% of the market and U. According to ABESE. state and municipal governments are implementing new security measures to protect the population. that makes it mandatory to install cameras or other security devices in residential and commercial buildings with more than four floors. Major competitors are Israel and Japan. 37 . especially ones that use biometric technology. The market for electronic security equipment is heavily concentrated in the States of São Paulo. electronic security equipment is not limited only to banks. but only 7% have a more sophisticated access control system. the market for safety and security equipment also grows. commercial or industrial buildings. a security industry publication. These factors have contributed to the increase of crime in large cities. but it is in the electronic security segment that U. each one responsible for about 20% of market share. Rio de Janeiro. or are in the process of approving a law. According to “Proteger”. and vehicle monitoring systems. According to the Brazilian Association of Electronic Security Companies (ABESE).20 Source: ABF – Associação Brasileira do Franchising (Brazilian Association of Franchising) * The above statistics are unofficial estimates. Espírito Santo and Minas Gerais. As the violence level grows. Brazil invests approximately US$ 20 billion per year in safety and security equipment and services. alarm systems. someone is murdered every hour in the State of Sao Paulo. there are 4. products retain about 50% of the import market share. A.S. The increase of security monitoring services and security devices in residences is and will continue contributing to the fast expansion of the market. federal. Today. CCTVs.00 = R$ 3. 781 546 875 612 962 673 Exchange Rate: US$ 1.Total Imports Imports From the U. Others have passed a law. firms will find excellent opportunities. Best prospects in this segment include: access control equipment. Despite the ups and downs of Brazil’s economic performance in the last few years. They do not hesitate to kill if the victims resist. the market for electronic security equipment is estimated at US$ 900 million. Several cities have installed video cameras on the streets to inhibit criminal activities. Kidnappers usually carry guns and drive the victim around to make withdrawals from ATM cash machines.5 million properties in the State of Sao Paulo with potential to be equipped with electronic security equipment. Brazil is currently facing serious social problems due to high unemployment rates and drug consumption. In view of such a dramatic situation. the safety and security sector has constantly registered an average growth of 15-20% per year. Rank: 07 B.S. Name of Sector: Safety and Security Equipment ITA Code: SEC According to local trade contacts. home security equipment. that together are responsible for 63% of the market.

Germany and Sweden with 13. H.S. Brazil’s Telecommunications Body. anti-trauma equipment. ITA Code: Tel/Tes Brazil has the largest telecommunications sector in the region. The injection of new investments slowed to approximately USD3. mainly due to prior large investments made by companies in the fixed and wireless segments to comply with standards established by Anatel.2 billion). Name of Sector: Telecommunications Market C.2 percent) are principal U. The privatization process has brought Brazil unprecedented investments of over USD27 billion. and cellular call blockers.6 billion. (In US$ million) Total Market Size Total Local Production Total Exports Total Imports Imports from U.0 percent of all telecommunications imports. but several police officials have indicated recently that the quality is not up to the level of the ones produced in the United States. Southeast Asian countries (mostly South Korea and China) increased exports to Brazil in 2002 by 22. a significant decrease se as compared to 2001 (USD 26. However. By 38 . mainly from carriers committed to introducing GSM services in the country.9 billion of net revenue. ballistic shields and helmets.S. G. including carriers.There are no official statistics.4 billion in 2002. A. there is a huge need for bulletproof vests.3 billion. batons. The United States makes the lion´s share of Brazilian imports with 58. 2001 750 208 18 560 280 2002 825 235 30 620 310 2003 900 261 36 675 338 Sources: ABESE – Brazilian Association of Electronic Security Companies. competitors. U. night vision goggles. cuffs. For 2003 the sector predicts an average growth of 11 percent.4 percent and European countries (mostly Norway. shotguns. but local industry contacts estimate the market for electronic security equipment is divided as follows: D. X-ray equipment to detect narcotics. Moreover. publications and industry contacts In the law enforcement segment. Services. the turbulence of the economy and uncertainty about the plans of the newly elected president also contributed to the slower pace. accounted for USD 13.S. companies interested in this market segment will find excellent opportunities if they establish themselves in Brazil. for 2003/2004 the industry expects an injection of an additional USD 4. non-lethal arms. Rank: 08 B. The Brazilian import market for telecommunications equipment and components in 2002 surpassed USD 596 million and is expected to increase 7 percent in 2003. while product suppliers (hardware & software) have generated USD 2. but in the last two years the sector has been affected by the global downturn faced by the telecommunications industry. Net revenue for telecommunications equipment and services in 2002 was approximately USD 16. F.2 billion. Most of these items are manufactured domestically. E. The Brazilian legislation for government tenders provides that the lowest bidder wins the contract. Since Brazil has high import-related costs it is difficult for foreign suppliers to compete successfully in the market unless they consider local production. super machine guns. or find a joint venture or technology transfer partner in Brazil.

the number of telephone terminals installed went from 8.575 Total Exports 977 Total Imports 1.3 in December 2002. Telecommunications Equipment (USD millions) 2001 Total Market Size 3.3 million fixed lines existing in 1994. local cellular operators are considering taking different routes in terms of standards.322 2.174 1. in November 2002 Brazil had over 81 million telephones. Most of these companies still do not have good internet connections and will need customized services.577 3. companies will be found mostly in the wireless market since a significant increase of wireless data applications is expected with the deployment of GSM. and 32. and CDMA 1xRTT technologies. the number of lines installed compared to the country's population. Many multinational players established domestic manufacturing plants to provide products and services to major new operators. SECEX – Secretaria de Comércio Exterior and other industry sources Good opportunities for U.5G and 3G. For each group of 100 inhabitants. In the evolution toward 2.20 *The above statistics are unofficial estimates.2005 Anatel predicts that total investments in the telecommunications sector in Brazil will reach USD 53 billion.S. to survive and remain financially healthy. that is. These figures demonstrate an extraordinary growth compared to the mere 13. i.975 Total Import from U. According to Anatel. has also increased significantly. adding telecommunications services.572 Total Local Production 2.859 1. Furthermore. Sources: ABINEE. Trends continue to be toward convergence. increasing jobs in the sector by over 40 percent. carriers will have to find new ways to retain their existing customers. generate new revenues. 47 percent of this amount will be for fixed services and 19 percent for mass communications services. Best prospects for the sector include: • • • • New Generation Networks (NGNs) Corporate and Virtual Private Network Services (VPNs) New revenue generating mobile services (preferably based on the existing network) Broadband multiple services – evolving from plain old telephony services such as 39 .133 596 344 2003* 2. Of this total there were approximately 49 million fixed lines – 39 million effectively in service. 467 2002 2.00 = R$ 3.. to maximize the benefits derived from investments and efficient operations. Special attention should be devoted to small to medium enterprises (SMEs) as they account for 98 percent of the registered companies in Brazil and compose 48 percent of the country’s GDP. Associação Brasileira da Indústria Elétrica e Eletrônica. Most operators that adopted the TDMA platform (approximately 80 percent in Band B) are still studying or conducting tests to define what standard to follow: GSM or WCDMA.S.e.6 million wireless. and keep operational and capital expenditures low.6 in 1994 to 29. Telephone density.178 638 368 Exchange Rate: USD 1.

image and sounds Telemedicine equipment Security telecom equipment (alarm receivers and transmitters) E-Learning Services (to fill the geographic and income gaps between the populations at the lowest income levels and those in the middle) System Integration Services A. obtain higher quality products capable of competing in foreign markets. this sector is sensitive to exchange rate fluctuations and is suffering from the current unfavorable Real-Dollar rate. Fortunately.S. flexographic printing machines. Rank: 09 B. Sector: Print and Graphic Arts Equipment C. which represented 40% of the total import market in this sector. Germany has the competitive advantage in the offset printers segment. bookbinding machines. 2001 450 149 121 422 170 2002 370 171 113 312 124 2003* 390 180 125 335 134 40 . mostly equipment and machinery with high technology.S. Best U. While the United States is the leading supplier for digital processing units and plotters to Brazil. consequently. machines for photographic procedures and serigraphy printing machines. The extariff list includes 600 items.• • • • • • ⇒ Integrated Services Digital Network (ISDN) ⇒ Circuit Data ⇒ Voice Over Internet Protocol (VoIP) (According to IDC data. a large quantity of the printing and graphic arts equipment imported from the United States are on a tariff reduction list published by the Brazilian Federal Government. Print and Graphic Arts Equipment (US$ millions) Total Market Local Production Total Exports Total Imports Total Import from U. granting import duty reductions up to 4%. and usually with no similar product manufactured locally. auxiliary machines. Because imported printing and graphic arts equipment account for 85% of the total market for these products in Brazil. US$ 121 million in exports and US$ 422 million in imports. exporters include digital processing units and plotters. export prospects for printing and graphic arts equipment include machinery with higher efficiency levels. automated. data. which seeks to modernize Brazilian production lines and. by 2005 22 percent of Brazilian voice traffic will be VoIP) Intelligent services network New services merging voice.S. automated devices and new technology. Segments presenting good prospects for U. with US$ 149 million in local production. The United States exported approximately US$ 124 million in printing and graphic arts equipment to Brazil in 2002. offset printers. Code: PGA The Brazilian printing and graphic arts equipment sector was estimated at US$ 370 million in 2002.

Includes HS 8440/8441/8442/8443/9009 The above statistics are unofficial estimates Source: Secex, MDIC-Abimaq-Decon, Abigraf and Industry Specialists. Rank: 10 B. Name of Sector: Iron & Steel ITA Code: IRS Total Brazilian crude steel production in 2002 was 29.6 million metric tons. Brazilian imports of steel products in 2002 were $465 million or 672,346 metric tons and total exports by Brazilian manufacturers were $2,928 million or 11,686,000 metric tons. Brazil is the eighth largest steel manufacturer, with approximately 50% of the steel production of Latin America and 3.2% of the world. Approximately 85% of Brazilian crude steel production is made in integrated steelworks, whereas 15% is made in non-integrated mills; 92% is made in continuous casting process and 8% is made in conventional casting; 80% is made in oxygen (BOF) process, 20% is made using electric process. Nearly 60% of the total output of the country is flat product and 40% is long product. Brazilian manufacturers are concentrated in the states of Minas Gerais (41% of total production), Rio de Janeiro (20%), Espirito Santo (19%) and São Paulo 13%. The largest manufacturers are Usiminas / Cosipa with a combined output of 8.4 million metric tons in 2002, Gerdau with 3.6 Mtons, and CSN with 5.1 Mtons. Brazilian imports of steel products from the U.S. during 2002 were 16,110 metric tons, or $40.5 million (FOB). During 2001 imports were 22,657 metric tons or $66 million. The most exported products from the U.S. to Brazil have been seamless tubes and pipes, with 42% of the total value exported in 2002. (US$ millions) D. Total Market Size E. Total Local Production F. Total Exports G. Total Imports H. Imports from the U.S. 2001 $6,860 $8,500 $2,317 $677 $66 2002 $6,437 $8,900 $2,928 $465 $40 2003* $6,800 $9,300 $3000 $500 $50

Source: IBS - Brazilian Steel Institute. * Estimate A. Rank: 11 B. Sector: Pollution Control Equipment and Services C. ITA Code: POL Environmental experts estimate that Brazil’s environmental technologies market equaled US$ 2.8 billion in 2002, including equipment, engineering and consulting services and instrumentation associated with pollution control and cleanup projects. The market for air pollution control products is projected at US $ 200 million, for water and wastewater treatment at

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US $1.6 billion and the market for solid waste treatment at US $1.0 billion. The market is growing at a rate of 5 to 8% per year. Some of the driving forces affecting this market are: stricter environmental legislation, pressure from the community and clients; introduction of environmental management practices by a growing number of industries and increased number of industries with ISO 14001 certificates. This certificate foresees continuing improvement in production processes and adoption of pollution prevention measures. In 2003, the number of ISO 14,001 certified companies in Brazil reached 900. Basic sanitation services in Brazil are provided by 27 state owned companies that serve 3,800 municipalities under concession contracts, whereas municipal sanitation companies serve 1,700 municipalities. There are 5,507 municipalities in Brazil. The concession law of 1995 allows private sector participation in this market, through concession contracts. The presence of international companies in this market is small, however some international leaders such as Lyonnais des Eaux, Vivendi, Aguas de Portugal and the U.S. companies Earth Tech, Montgomerry Watson and CH2M Hill are active in Brazil. Water distribution services cover 98% of Brazilian municipalities, but only 64% of the residences in Brazil. The sewage situation is much poorer: sewage collection systems are available in 52% of municipalities but only 33% of residences. About 76% of the residences in Brazil throw their untreated sewage in water bodies. According to the Urban Development Secretariat, water distribution and sewage collection for 100% of the Brazilian residences would require investments of US$ 35 billion within the next 10 years. Although smaller than the sanitation market, the industrial sector is an important market for effluent treatment systems. Investments in effluent and industrial waste treatment in Latin America for 2002-2005 are estimated at US$ 2.2 billion, of which US $ 1.1 billion will be invested in Brazil. The Brazilian market for solid waste equipment and services was established with participation by several Brazilian and foreign companies. Engineering and consulting companies, distributors of foreign equipment and locally established equipment manufacturers supply this market. According to the Brazilian Institute of Geography and Statistics, daily collection of solid waste in Brazil reaches 224,413 metric tons, 125,258 metric tons of which is residential waste. Statistics indicate that 74% of the residential waste ends up in garbage dumps, 24% in landfills, and only 2% is recycled. The Brazil-German Chamber of Commerce and ABETRE (Brazilian Association of Special Waste Treatment, Recovery and Disposal) estimate that industries in Brazil generate 2.7 million metric tons of industrial hazardous waste per year, of which only 600,000 metric tons are adequately treated and disposed of. Best prospects for U.S. environmental products and services include: water reuse and saving technologies, sophisticated filtration methods (ultra filtration and reverse osmosis), compact sewage treatment stations. Suppliers of water treatment stations incorporate specific imported equipment such as automatic valves, oil separators, and ultra-violet systems. Laboratory and analytical instruments are usually imported.

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Best prospects for U.S. companies in the solid waste sector include: special small vehicles for city cleaning services, automatic street wipers; high pressure water trucks; machines and tractors for beach cleaning; heavy machines for mechanical street wiping; equipment for rubber, paper and debris recycling, odor control products, soil clean up technologies and waste-toenergy projects. (US$ millions) Total Market Local Production Total Exports Total Imports Total Import from U.S. 2001* 2,660 2,035 133 758 152 2002* 2,800 2,142 140 798 160 2003* 2,940 2,249 147 838 168

* Statistics are unofficial estimates. Exchange Rate: US$ 1.00 = R$ 3.20 Source: environmental consulting companies. A. Rank: 12 B. Name of Sector: Mining Equipment C. ITA Code: MIN The Brazilian market for mining equipment is one of the largest in the world. Brazil is a major producer of several minerals, especially iron ore, gold, bauxite, kaolin, manganese, phosphate rock and niobium. It is the fifth largest mineral producer in the world. The mineral potential of the country has not been fully assessed and ongoing geological surveys may still find significant deposits. There are also many well-known deposits, especially of copper and gold, that are not being currently exploited, but that could be developed in the future if world market prices increase. Most of the mining activities in Brazil are open pit. The local market for underground mining equipment is relatively small when compared to the market for open pit mining. In the long term (three to seven years), however, there will be a trend to increase the number of underground mines. The largest installed mining operations are for iron ore, with total output of more than 200 million metric tons of processed ore in 2002. CVRD, Companhia Vale do Rio Doce, the largest Brazilian mining company, is responsible for more than one third of the mineral output of this country, in terms of value. CVRD was privatized in May 1997, and there are no longer any state-owned mining operations in Brazil. The largest investments planned for the next three years in Brazil are three copper projects of CVRD, calling for a combined total investment of more tan US$600 million. Expansion of the existing gold mines is the second most promising area for the near future. (US$ millions) D. Total Market Size E. Total Local Production F. Total Exports G. Total Imports 2001* 2,900 3,050 350 200 2002* 2,950 3,100 370 220 2003* 3,150 3,300 380 230

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Trade and Tourism and the Brazilian Mining Institute. modest growth compared to last year’s figures. The assemblers are responsible for 57% of the total market size of auto parts in Brazil.667 4.000 0. ITA Code: APS The automotive aftermarket in Brazil for 2003 is expected to reach US$11 billion. The Brazilian currency devaluation and the internal market drop in consumption during last year have reduced the chances of Brazilian companies in importing new machinery and rawmaterials to accomplish the local content components.roller bearings . The market is primarily driven by growing exports of automobiles and auto parts from Brazil.tubes. Rank: 13 B.000 56 17 20 7 4.785 2002 10.joint gaskets and alike of soft vulcanized rubber .spark ignition and internal combustion engines .920 57 18 19 6 3.2 billion and the sector will continue to employ 170 thousand people in Brazil. ball axles and rollers .900 3.S. Brazilian Market for Automotive Parts (In US $ Millions) Total Market Size Market Distribution % : Assemblers OEM’s Aftermarket Exports Inter-Sectorial Total Exports Total Imports Imports from the U.H. while exports represent 19% of it. New investments reached US$500 million in 2003.903 57 18 19 6 3.200 4.748 Est.subassemblies and accessories for tractors and automotive vehicles .979 0.gearings and friction wheels. 90 95 98 Sources: Brazilian Ministry for Industry.parts and accessories of stamping . a substantial growth when compared to 2002. Name of Sector: Automotive Parts C.2003 11.S 2001 11. Statistics are unofficial estimates A. The automotive-aftermarket exports are expected to grow 7.ignition key for vehicles engines . Imports from the U.subassemblies and parts for explosion engines .gear boxes .199 0. pipes and hoses of vulcanized rubber 44 .2002 .7% reaching US$ 4.750 Main items imported .

A new Ministry of Mines and Energy program has established deadlines on a case-by-case basis. Rank: 14 B. Such low consumption in 2002 was a direct reflection of the power rationing from June 2001 to February 2002. down from US$23 billion in 2001. ITA Code: ELP The total Brazilian market for electrical power equipment. The new Brazilian Minister of Mines and Energy who took office in January 2003 has proposed changes to the power regulatory framework. including generation. the power distribution companies (DISCOs).- injection pumps parts for liquids A. mainly due to uncertainties in the power regulatory framework which.) Power consumption habits have gradually begun to recover as of the first semester of 2003.) Another area the DISCOs will need to invest to meet contractual obligations is in the expansion of their distribution networks to reach outer rural communities. As a consequence. Name of the Sector: Electrical Power Systems C. or 290 TWh. total power consumption in Brazil dropped back to 1999 levels.2 billion in 2002. Some power concessionaires will need to conclude the power expansion as early as 2006. transmission and distribution service companies amounted to about US$12 billion in 2002. along with complex environmental permit processes. The Brazilian government is also proposing a new public-private partnership legislation to attract private sector investment in infrastructure projects in general. up from about US$ 3. they are expected to invest in effective electricity measurement controls and in client database management. Additionally. after having reached 306 TWh in 2000. (Note: Aneel has recently installed online monitoring systems to track down the frequency and duration of electricity interruptions. and the latest will be in 2015. The power generation and transmission subsectors are expected to grow only modestly in 2003. To this end. are expected to prioritize investments in 2003 focusing mostly on reducing technical and commercial power losses. (Note: In 2002. A new model is under evaluation and is likely to be sent to the Brazilian Congress by mid-2003. have delayed implementation of planned projects.6 billion in the previous year in terms of local Brazilian currency levels. transmission. and distribution segments (GTD).S. is estimated to have reached US$ 4. but trade sources still do not expect substantial power consumption growth due to the current slowdown of the Brazilian economy. Translated into dollars. The power distribution segment is expected to show a slight recovery in 2003 compared to 2002 as a result of the five-year tariff review that started in April 2003 and of higher power consumption levels. they should continue energy delivery quality programs by installing supervision and control systems to avoid penalties from the Brazilian power regulator (Aneel). Reduction of these deadlines is also under evaluation as the new Brazilian Administration is extremely socially-oriented. 45 . which saw their revenues shrink in the last two years because of reduced power consumption and high debts contracted in dollars. Net revenues of the electrical power generation. dollar. this market dropped about 17% as a result of the devaluation of the Brazilian real against the U.

The absence of clear rules.238 MW of new energy to be added to the Brazilian interconnected power system in 2003. Aneel was counting on 15.615 2. Industry specialists predict that Brazil may face further power rationing if new power generation and transmission projects do not come on line by 2005 to meet demand that is anticipated to result from a recovery of the Brazilian economy.S. continued strong up to mid-2002. The remainder presents serious environmental and/or legal obstacles that prevent operations. gas supply contracts with take-or-pay and ship-or-pay clauses are considered a serious deterrent to these projects.130 670 2002 4.797 Km.850 MW are expected to operate commercially by then. coupled with the fact that 2002 was an election year in Brazil. ranging from 235 Kv to 525 Kv. In order to make up for the delays in the construction of power transmission lines (TLs) as well. called for the construction of nearly 50 plants by 2003.455 580 2003* 3. although imports of gas turbines. Aneel plans to accelerate this program by opening tenders in 2003 for the construction and operation of seven TLs totaling 1..005 12. The thermal power segment was the most affected. Seventeen projects are pending definition of new rules.441 MW have been concluded . only 11 such plants totaling 4.875 3. Beginning 2002. benefiting U. the Brazilian Government implemented an emergency diesel-fueled set of power plants to serve as back-up in the event of prolonged rationing. during the power rationing.260 12.785 300 1.most of which are operating at partial capacity. generating just over 2.400 MW. practically stalled investments in power generation.015 255 GTD Service Revenues 23.150 290 1. but schedules are delayed. Moreover. which had grown substantially in 2001. however only about 6.235 3. GTD Equipment Market (US$ millions) Total Market Total Local Production Total Exports Total Imports U. Imports 2001 3.S. However.060 280 1. suppliers. The Priority Thermal Power Program (PTPP) which the Brazilian Government launched at the end of 1999. The governmentowned power transmission companies are expected to be the primary players to secure needed investments in an area considered crucial to avoid future power rationings.605 46 . The volatile exchange rate has also greatly contributed to an unstable investment climate in Brazil. The gas-fired power projects are directly influenced by the exchange rate value as they depend on the natural gas imported mostly from Bolivia. About ten are under construction. Imports of diesel generators greatly increased during that period. These TLs are expected to generate investments of about US$700 million over 2003/2004.

88 (June 2003) Source: Brazilian Association of Electrical/Electronic Industries (ABINEE) and Brazilian Association of Power Distribution Companies (ABRADEE) A. Brazilian medical equipment revenues in 2002 reached US$ 1. and the southern states of Paraná.5 billion.S. Since compulsory product registration before sale is required in the entire region. opportunities exist in the northeastern states of Bahia. Brazil now has approximately 150 of these types of care providers.* Statistics are unofficial estimates from trade sources. Ceará.00 = R$ 2. Private entities such as universities and even religious organizations around the country offer new opportunities for both U. Local buyers view U. 44% were to the public sector and 8% were exported. health insurance companies are responsible for 99% of the costs with home care treatment. Pernambuco. while offering better services to patients. An interesting trend in Brazil is the growing market for the Home Health Care. Sector: Medical Equipment and Devices C. Financing often becomes the differentiating criteria in making the sale. In particular.S. and use Brazil as a "spring board" for export into the region. Code: MED Brazil is the largest medical market in Latin America. Rank: 15 B.3 % of these firms can be classified as large companies. Of Brazil’s total medical equipment sales valued at US$1. suppliers should look for opportunities beyond the larger communities of São Paulo and Rio de Janeiro (both in Southeast Brazil). U. This market comprises medical equipment and devices.S. the central western states of Goiás and Mato Grosso do Sul.000 equipment and supply distributors in Brazil.440 in the United States. Brazil's 47 . Santa Catarina and Rio Grande do Sul. These organizations are viewed as a good way to cut hospitalization costs.S. which represents an increase of 53% compared to 1999. which moved approximately US$40 to 70 million in 2002.5 billion in 2002. Interested U. Exchange Rate: US$ 1. virtually all distributors are regional rather than national. The Nursing Regional Council is developing procedures on how to regulate this market. U. U. with solid local production and a sizeable import market. exporters should consider the opportunities offered by Mercosul. Nowadays.S. Paraíba and Rio Grande do Norte. dental equipment and products. compared to approximately 1. The total market for medical equipment in Brazil should continue to expand through 2003. but only 3. Currently. equipment and training/management services suppliers. There are few high-quality Brazilian manufacturers of advanced medical products so reliance on imports will generally continue. distributors and importers who sell to hospitals and clinics. approximately 48% were to the private health sector. There are some 3. including standards for health professionals. and other foreign products (mainly Canadian and European) as having equally good quality and reliability.S. exporters should consult a local lawyer/consultant before signing a contract with any agent/distributor. In addition to the attractive size of the Brazilian medical market. Excluding the direct sales networks of individual multinational manufacturers. the southeastern states of Minas Gerais and Espirito Santo. The United States accounts for 50% of the import market. radiology and image diagnostic equipment and laboratory equipment. sales have traditionally been made through Brazilian agents. local manufacturing can supply approximately 95% of a hospital needs.

610* 188* 918* 460* Echography with Doppler analysis Computer Aided Tomography Pacemaker (except accessories) Artificial Kidneys X-Ray tubes X-Ray Angiography Ophthalmic Instruments * The above statistics are unofficial estimates. diagnostic devices. 3917. 3923.779 25. Total imports in 2001 were $807 million. Source: SECEX . Source: SECEX Rank: 16 Name of Sector: Aircraft and Parts ITA Code: AIR Air transportation is a critical link in Brazil’s infrastructure.138 9.355 15. disposables.S. Spain exported to Brazil $219 million (32%) 48 . the continued expansion of the Brazilian private health care sector. 8421. 9019.039 2003 1. particularly HMO's (private health care plans).043 19.146 16. However. The Brazilian total fleet is approximately 9 million aircraft including airplanes and civil and military helicopters.476 18. In 2002 the Brazilian market for aircraft and parts was approximately $675 million. 3926.288 27. 9023: Medical Products Market (US$ millions) 2001 2002 Total Market 1. exporters.251 35. particularly for more advanced medical equipment.303 41.070 19. 9021. 8540. In 2002. The country is vitally dependent upon its civil aviation system to link the sparsely inhabited areas with the country’s major economic centers. was the good news the market needed and should create new opportunities for U. 3821. implants and components. 3702. According to Brazil’s Department of Civil Aviation (DAC).385 2003* US$ FOB 19. 4014.451 21. 9022. and $1 billion in 2000. Combining this dependence on air transport with the national policy to establish a modern market economy. 8419. surpassed only by the US and Mexico. 9011.Brazilian Government Statistics and ABIMO Best Prospects for Medical Equipment and Devices: 2001 US$ FOB 52.433 1. Imports 420* 530* * The above statistics are unofficial estimates.816 1. Brazil holds the world’s third largest business aviation fleet.S. 3822.06 U.670 13.286 16.S. 9018. commercial aircraft and parts manufacturers have good market prospects in Brazil.economic difficulties slowed government investment plans for public hospitals. The tables below are based on the following Harmonized System Codes: 3701. 9020. U. 4015. 3919.055 32.501 3.984 8.517 Total Exports 160 171 Total Imports 981 1.854 13.008 2002 US$ FOB 38.

The Brazilian aircraft parts industry is not well developed.338 C. Multinational companies are responsible for supplying 70% of the internal market. Rank: 17 Name of Sector: Drugs/Pharmaceuticals ITA CODE: DRG The Brazilian pharmaceutical industry is comprised of 370 companies. civilian aircraft parts. production and marketing of a range of turboprop and jet aircraft for regional airline and military use. representing a total market value of US$5.026 6.784 1. The world airlines crisis has affected the Brazilian aircraft and parts market. (US$ Millions) 2000 2001 2002 A. In 2002. Source: SECEX . There are no official statistics regarding local production for airport and ground support equipment. The United States is its largest customer and largest supplier of parts. The Government collects over US$1 billion in taxes from the pharmaceutical sector. Embraer leads a group with widely diversified interests in the aerospace field.S. as well as a major international supplier for the aviation market.379 1. 80% are domestic and foreigners are mostly from the United States and Europe.553 2. However the industry is able to supply around 20-25% of the market since most engine manufacturers have a local presence.6 billion packages of pharmaceuticals. Embraer is Brazil’s largest aircraft manufacturer. in the state of Sao Paulo. Brazil sold 1.799 D.812 B. aircraft engines. which is expected to have very slight growth in 2003. has a percentage of 65% on Embraer purchases. development. Total Imports from U. Embraer’s headquarters is located in Sao Jose dos Campos. aircraft control systems. not including direct sales to the Government. turbojet aircraft engines. 359 280 185 *The above statistics are unofficial estimates. U. Brazil still remains among the 5 largest sellers of units. air speed instrumentation. Total Imports 1.574 3. This market is the 10th largest in the world and the second largest in Latin America after Mexico. Embraer is a major buyer of equipment and parts for its own production line. and is one of the most 49 .Secretaria de Comércio Exterior/ EMBRAER/ Brazilian Association of Aerospace Industry. Despite stagnating pharmaceutical sales over the past three years. Local Production* 2. The group's activities include the design. aircraft propeller parts and aircraft accessories.073 807 675 E. civilian helicopters. The cascading tax method applied on manufactured goods in Brazil affects several industries.144 4.followed by United States with $185 million (27%). Total Exports 3. Taxes applied on medicines in Brazil are among of the highest in the world. Total Market 7. The following products in the aircraft and parts sector are expected to have the best potential in Brazil during 2002-2003: civilian aircraft. and aviation-related mechanical and hydraulic systems. turboprop aircraft for general aviation. corporate and agricultural utilization. Among the pharmaceutical companies.S.50 billion.

one of the most problematic areas of the pharmaceutical sector in Brazil is the lack of access to essential drugs by a large portion of the country’s population due to financial constraints.important topics that private industry has raised with the Government. in comparison to US$ 5.20 Health Scenario Most Brazilian health insurance companies do not reimburse patients for prescription drugs. The average annual per capita consumption of pharmaceuticals in Brazil is approximately US$ 61. importation.ANVS.7 billion in 2001.00 = US$ 3.4% increase over the previous year's level. 2001 5.521 241 700 2002 5. manufacturing. Imports from the United States account for about 50% of Brazil’s imports of pharmaceutical products. but currency fluctuations make this drop more dramatic. Brazil's pharmaceutical net sales reached US$ 3.53 253 800 2003* 3.965 1. the income from this sector reached US$224 million. According to the Syndicate of the Pharmaceutical Industry (SINDUSFARMA). exportation and sale of any medical product. This is the Brazilian counterpart of the U. Market In 2002. Generic Pharmaceutical Drugs The introduction of generic drugs in the Brazilian market. Pharmaceutical Market – Statistical Data: Net Values (in US$ millions) Total Market Size Imports Exports Imports from the U.550 1. in 1999. according to data from the Pan American Health Organization. total Brazilian imports of pharmaceutical products in 2002 were approximately US$1. but various sources suggest that 40% to 50% of the population have limited or no access to needed pharmaceuticals.5 billion. Moreover. The public health care systems in most Brazilian states purchase 50 . created a dynamic investment process in the pharmaceutical market. Average Exchange Rate in June 2003 : R$ 1. In June 2003. considering sales for the past 12 months. Sources : ABIFARMA.Brazilian Association of Pharmaceutical Industries and Sindusfarma – Pharmaceutical Industries Syndicate of Sao Paulo. Imports still represent a large share of the market.34 261 600 *The above statistics are unofficial estimates. Food and Drug Administration. Similar to most countries in Latin America. According to Brazilian legislation.758 1. The market has softened somewhat. The process aimed at reducing these taxes on pharmaceutical production is slow and bureaucratic. which corresponds an increase of 47% for the same period in 2002. Certainly.9 billion. This reflects a 0. Estimates vary.S. an agency of the Brazilian Ministry of Health. pharmaceutical or cosmetic must be processed through authorized companies only. the production.S. all products must be registered with the National Agency for Sanitary Health . over 80% of drug expenses in Brazil are paid by one’s own resources.

had a $98 million loan approved by the Brazilian Development Bank (BNDES). U. the nature of agricultural products and commodities best served by rail. Brazil’s private railroad operators were reluctant to release investment figures for 2003. Ferronorte. eventually beginning to export generic drugs. Railtex International Holding. the Brazilian Government is investing in campaigns to stimulate the population to request generics during the visit to physicians. suppliers are expected to capture 25% of the market.5 billion in the concessions. We see opportunities for both direct exports to Brazil. And there is an increase in freight movement to Mercosul with neighboring countries. and logistics services. Name of Sector: Transportation . The generic market represents today approximately 6. Manufactured goods.almost the entire production of generic drugs as part of the government’s program to distribute medicines to the poorest.S. In the Midwest grains for export are being shipped to the ports of Santos (SP). its determination to develop the interior. investment in the railroad industry will remain heated in the next few years. including U. and Vitória (ES) and Rio de Janeiro (RJ). The total needed investment is estimated at $5 billion over the next thirty years. Currently. and the political impediments faced in improving roads all bode well for increased investment in this sector. technology and products. Railroad companies are increasing their investments to serve important export corridors. an increase of 56% over the previous year's budget.5% of the total market.Railroad C. and may make Brazil a generic drug nexus. both in new and reconditioned equipment. According to sector analysts. approximately 85% of the raw materials used in the production of generic drugs in Brazil are imported. in the state of Mato Grosso.S. While Brazil has traditionally relied less on railroads for the transport of freight and passengers than other countries. Sales of generic drugs should also be further boosted by the fact that 75 important medicine patents on best selling drugs will expire by 2004. ITA Code: TRN We expect to see an increased focus on expansion and modernization of the railroad infrastructure in Brazil in the coming years. invested $2. integration and improvement of regional systems is the primary focus of investment. A. The concessions require that the concessionaires provide maintenance services as part of the agreement. Private consortia. equipment. groups participating in the Brazilian concessions. and for foreign direct investment in railroads.S. Opportunities for Investment and Exports in the Rail Sector A number of business opportunities are open for international companies interested in supplying the growing demand of the railroad sector. participants. In addition to that. This expectation can be substantiated by the investments published by the railroad companies which estimated that over $416 million was invested in 2001. Noel Group. It is expected that in 2008 this market will reach sales of US$ 1 billion.S. as there is a local preference for U. but said they planned to invest millions of dollars in the following activities: refurbishing and buying 51 . from São Paulo and Campinas. In the North and Northeast. These funds were dedicated to finance the second stage of the Alto Taquaril project. Ralph Partners. are being transported mainly to the port of Santos (SP). Rank: N/A B. and BankBoston are some of the U. Tubarão. This expiration of patents and the new demand may stimulate an increase in the scale of production. the major investor for 2001. Brazil Rail Partners.

new technology.refurbished locomotives. EFC and FCA). such as refurbished locomotives.7 million Reactivation of the railroad branch between Jacareí (SP) and Campinas (SP) 130 million Restructuring of the rail network. with 21 km and 16 stations 343. 1. and enlarging and remodeling maintenance facilities. couplings.2004 MRS and Votorantim FCA Companhia Vale do Rio Doce São Paulo Subway 2003 . partnerships in railroad expansion. especially soybean. to facilitate the flow of agricultural products. and maintenance equipment. linking Cumbica Airport in Guarulhos (SP) to the Barra Funda station to the city São Paulo. signaling equipment. Supplying railroad equipment. signaling systems. between the cities of Balsa e Estreito.300 km of railroad tracks. purchase and installation of cargo 27 million terminal equipment. building and/or operating silos and other warehouse facilities. growing and processing soy beans and corn.3 million Construction of surface subway with 13 Km 300 million Construction of the Airport Express.4 km. Selection of Investment Forecasted Companies MRS Logistica Investment/US$ Project 33 million Infrastructure improvement. container operations. braking systems. duplicating and electrifying 3. grinding machines.S. 646 million Construction of the branch 5. Also building and/or operating multimodal transshipment terminals. replacing rails and ties. Business Opportunities. linking Capao Redondo to the Klabin. telecommunication equipment. communication systems. modernization. railroad ties of concrete and wood. railroad cars. Purchase of new cars new and refurbished locomotives 7.2004 Up to 2006 Up to 2006 Up to 2006 2006 Curitiba Subway Government of the State of São Paulo Government of the Estado do Maranhão N/A 52 . and freight handling for agricultural products. Top U.26 billion Construction of the branch 4 linking the districts of Vila Sônia and Light with 12.300 cargo cars for their railroads (EFVM. locomotive spare parts. diesel engine parts. recovery and acquisition of locomotives and cars 15 to 20 million Purchase of 2. remodeling. concrete sleepers. 168 million Construction of the North-south Railroad. track maintenance equipment and services. Period 2003 2003 2003 2000 . railroad tracks and fixtures.

S.2% of the Brazilian GNP. Sector : Insurance C. and setting general accounting and statistical standards. compared to 65% now held by Brazilian firms. representatives of the Ministries of Justice and of Planning. In fact. about 95% of the sector was controlled by Brazilian groups. establishes operational risk limits. and regulates open pension funds (which are equivalent to the U. regulating private insurance firm creation. an independent agency subject to the Ministry of Finance via the CNSP. activities and supervision. Main insurance types in Brazil include: Cars: Life: Health: Fire: Personal Accidents: Residential: Property: Risks: 27% 24% 21% 7% 3% 3% 3% 2% 53 . is currently the sole Brazilian reinsurer at this time. establishing guidelines of insurance contracts. Rank: N/A B. and four private insurance companies. the Brazilian Central Bank. and retirement insurance were the fastest growing sectors. insurance sales should increase 51%. The sector's trade association is the Federation of National Private Insurance and Capitalization Firms (FENASEG). the Brazil Reinsurance Institute (IRB). The CNSP’s responsibilities include setting insurance policy guidelines and rules. health. which are the main distribution channel for insurance in Brazil. organization. supervises technical reserves. The Superintendence of Private Insurance (SUSEP). This equates to almost 50% of South America’s insurance market. establishing reinsurance rules. car.S companies’ share of the total market is 21%. In 2003.Source: Ministerio do TransportesN THE TEXT A. In 1994. The Brazilian federal government formulates policy for the private insurance system. comprised of the Ministry of Finance. (III) IRB. The remainder is made through banks. and does so through the following organizations: (I) The National Council of Private Insurance (CNSP). It monitors the insurance and private pension market through the solvency index. KOLC). pending the outcome of a recent court injunction. The Brazilian insurance industry has been growing for the last seven years at rates higher than that of the GNP. or around 3. accounting for 70% of the sales. (II) SUSEP. it has doubled since 1994. a 51% state-owned company. 49% privately owned insurance companies. The market potential is attracting foreign companies. U. led by growth in the life insurance segment. according to industry sector professionals. It also regulates insurance brokers. The state-owned segment is scheduled to be privatized. ITA Code : INS Insurance in Brazil is a market of US$ 14 billion. In addition to life insurance.

which is a long-term saving and retirement fund for individuals operated by financial institutions. Other funds have been offered. Reinsurance The IRB was founded in 1939. a revised law shall be issued. 401(k) plans: a) The individual programmed retirement fund (Fundo de Aposentadoria Programada Individual. the Congress passed a law to open this market to competition. Otherwise. c) The free life benefit generator ( Vida Gerador de Benefícios Livres. these repeated court injunctions and delays may discourage foreign companies from maintaining their market presence. which functions as an alternative to social security. and administered through the National Social Security Institute (INSS). In July 2000. as of 1997. is very popular due to the tax incentives (earnings are tax-free). contributors make monthly deposits and can withdraw assets upon retirement or before. The public social security is deducted from salaries. In 1996. The timing of the court ruling is uncertain. 54 . as per its name. All the steps were adopted in order to complete IRB’s privatization. open to all. Several foreign companies have established branches in Brazil to strengthen their bids for the IRB' s auction. PGBL): this product. paying a wage as soon as the client is retired. It allows small and medium-sized companies to supplement its employees’ social security. If the court decides against these congressmen and in favor of the privatization. and open funds are. Hartford. Those funds operate as an insurance product. The Brazilian pension funds system is composed of public social security and private complimentary plans. VGBL). b) The tax free benefits generation plan (Plano Gerador de Benefícios Livres. the privatization process may be completed by the end of 2003. and. some Brazilian congressmen stopped the IRB's privatization. though it still runs a deficit. offered through insurance companies. In this plan.S. and Petrobras). The latter is for employees of specific companies and institutions (the largest being linked to governmental entities such as Banco do Brasil. a court injunction has interrupted the process. the IRB – now IRB Re Brasil – is owned 51% by the Brazilian government. However. This system has recently been reformed by the government. and acted as a monopoly for over 50 years. The private system consists of two categories: open and closed funds. and others. While the prerequisites for IRB's privatization already exist. stating that a "specific legislation on reinsurance should be created".Other: (Source : Fenaseg) Retirement Insurance 10% This insurance subsector has been undergoing rapid growth. similar to the U. FAPI). AIG. They are usually offered by insurance companies and insurance subsidiaries of banks such as Banco Bradesco (main provider).

99 Traditionally a net coarse grain importer. Source: Secretaria de Comércio Exterior (SECEX) . However. Exports of these wheat varieties must come with an addition declaration in the phytosanitary certificate that "the wheat comes from an area free of 55 .700 250 0 2003* 37. Ministry of Finance. Northeastern Brazil continues to import due to the high internal freight costs. lower transportation costs. the Ministry of Agriculture lifted the ban on U. there are opportunities for U. Despite Argentina’s advantages. Argentina enjoys many advantages in the Brazilian market.200 41. LIBERTY.000 3. Corn (Thousand Metric Tons) Consumption Local Production Exports Imports Imports from the U.MICT.S. including TCK smut. and protection from the 9. shorter delivery times. PRUDENTIAL. grains. For the past several years. wheat imports due to several phytosanitary issues related to wheat. AON. AMERICAN HOME. and Hard Red Winter wheat. 2001. Similar agencies exist in Canada.500 600 32 2002 36. On March 15. 2001 36. METLIFE. a smaller and weather-damaged crop in 2002/3 will necessitate increased imports to meet consumption needs. CIGNA. and the Scandinavian countries. NATIONWIDE. CHUBB. MARSH & MCLENNAN. cereal stripe and flag smut.S. AIG.NEW REGULATORY AGENCY The creation of a regulatory agency for the insurance sector in Brazil is under study. and USDA Foreign Agricultural Service Name of Sector: Wheat HTS 1001 Comments: Brazil relies on imports for the majority of its wheat consumption. among others. such as proximity.S. MONY. particularly in feeds and fodder.S. HARTFORD. LINCOLN CONTINENTAL. Brazil emerged as a corn exporter in 2001. Brazil blocked U. the Secretariat of Complementary Pension of the Ministry of Finance. insurance companies currently operating in Brazil include: AETNA.600 39. Soft Red Winter. a new office would bring together institutions such as SUSEP. Hard Red Spring. U.000 250 0 (Marketing Years) (*) Statistics are unofficial estimates. Best Prospects for Agricultural and Food Products (SP FAS) Name of Sector: Coarse Grains HTS: 1001 – 1008.000 1. MUTUAL.300 36.000 2. Even in years of surplus production. which enjoyed $17 million in sales from the United States to Brazil in CY 2002. and the Comissão de Valores Mobiliários (CVM). which is the Brazilian equivalent of the U.S.5 percent MERCOSUL duty and 25 percent merchant marine tax.S. with Argentina as its primary supplier. CHASE. Securities and Exchange Commission. In Brazil. Japan.

The paddy rice tariff was reduced from 14 percent to 11.MICT. (Thousand Metric Tons) Consumption Local Production Exports 2001 7. and are likely to resume later in the year. In 2002. before Brazil imposed import restrictions on U. Idaho.956 7. Camex also removed rice from the Brazil’s Mercosul List of Exceptions.58 million dollars. lower transportation costs. comprised almost entirely of paddy rice. such as proximity. 2003. Despite Argentina’s advantages. and Arizona remains prohibited due to phytosanitary concerns.250 136 2002 7. Brazil will require imports from non-Mercosul sources to meet its rice demand. 2002.250 50 2003* 7.S. Access to U. given its superior quality.S.990 7.200 6. wheat. US rice sales continued through early 2003. and importers will prefer paddy rice to supply Brazilian mills.950 6. wheat.956 7.S. it purchased roughly 760. U.914 3. Furthermore. California.800 Exports 0 0 0 Imports 7. with sales of nearly $96 million. In 1996. there are significant opportunities for U. importers and millers have stated a willingness to pay a premium for U. wheat classes will benefit Brazilian millers and consumers. On December 19.703 tons of US rice exports to Brazil in CY 2002. and USDA Foreign Agricultural Service Name of Sector: Rice HTS 1006 Comments: Due to tight rice supplies in Brazil and its neighbors.anguina tritici. worth $6. 110 500 500 (Marketing Years) (*) Statistics are unofficial estimates. however. Importation of U.194 2. US customs data indicates 56. in order to fight inflation due to the rice shortage in Brazil and the inability of Mercosul suppliers to meet Brazilian demand. Ministry of Finance. and protection from the 10 percent MERCOSUL duty and 25 percent merchant marine tax. Oregon.500 Imports from the U. particularly from May through September preceding the Brazilian harvest.000 tons of U. shorter delivery times.5 percent. wheat exports became the number one agricultural export item to Brazil. wheat from the states of Washington.100 10. tight Mercosul supplies indicate a strong possibility for US rice sales in the second half of 2003. wheat worth $174 million. US exports are unlikely from March through June due to the Brazilian harvest. (Thousand Metric Tons) 2001 2002 2003* Consumption 10.100 10. Nevada. wheat. Brazil is one of the world’s largest wheat importers.476 50 56 .5 percent. and the milled rice tariff was lowered from 18 percent to 13.S.S.S." and cannot be shipped out of west coast ports.S.200 Local Production 3.S. the Brazilian Chamber of Foreign Trade (Camex) reduced the rice import tariffs from non-Mercosul nations as of January 1. Argentina enjoys many advantages in the Brazilian market. The United States is likely to be the primary supplier for non-Mercosul product. Source: Secretaria de Comércio Exterior (SECEX) .

is expanding. Consumer knowledge of U. (Thousand Metric Tons) Consumption Local Production Exports Imports Imports from the U. whey is considered a residue and is seldom used as a food ingredient.S.10 Brazil has virtually no commercial pear production. marketing programs.S. U. benefit from preferential tariff treatment.S.10 and 0808. production also benefits from having an opposite harvest season from that of Argentina and Chile.S. product characteristics and quality. particularly for pears. Most of the whey used by the dairy and beverage industry in Brazil is imported. Ministry of Finance. and USDA Foreign Agricultural Service Name of Sector: Pears and Apples HTS 0808. nevertheless. the dominant suppliers of pears and apples to Brazil. The EU is the major competitor for this product.S. Source: Secretaria de Comércio Exterior (SECEX) . 1702 Although Brazil produces a small amount of whey derived from its cheese production. 0 57 500 (Milled Basis. Ministry of Finance.000 Imports from the U.S.MICT. This offers an opportunity for U. Source: Secretaria de Comércio Exterior (SECEX) . all imports and consumption level were reduced. exporters because local production does not meet demand.S. As result of the economical crisis in 2002. 2001 750 706 36 198 3 2002 845 857 66 143 2 2003 (*) 809 825 73 150 3 (*) Statistics are unofficial estimates. Argentina and Chile. but the market is still an opportunity because of the increasing use of whey in dairy-based drinks (yogurt). (Thousand Metric Tons) Consumption Local Production Exports Imports Imports from the U. imports are ongoing.20. and USDA/Foreign Agricultural Service. allowing for a marketing window. Marketing Years) (*) Statistics are unofficial estimates. and active U. exports have interesting opportunities in this market.S.Imports 618 600 1. Name of Sector: Whey and Lactose HTS 0404. U. as well as for animal feed purposes.MICT. While Brazilian apple production continues to increase. 2001 65 30 0 37 12 2002 70 36 0 36 11 2003 (*) 60 36 0 30 13 57 . European suppliers are also active in the market.

MICT. The situation shifted. the Brazilian economy showed significant recovery. Brazil imported US$21.567 MT lint cotton. According to ABIT. the highest level since the 1970's. increased phytosanitary restrictions.000 MT. down 41 percent from MY 2002/03. 2001/02 830 764 147 55 9 2002/03 780 806 120 120 45 2003/04 (*) 800 885 160 70 40 (*) Statistics are unofficial estimates. Apples & Pears) HTS: 0804 . Total MY 2003/04 cotton imports are projected at 70.4 million of U. In 1996.800 MT. with the 1999 maxi currency devaluation. fruit. Name of Sector: Cotton HTS: 5201 Domestic cotton consumption for MY 2002/03 has been revised downward to 780. however.S.S. Ministry of Finance.000 MT. and. the market showed an unprecedented opportunity for imported fruit. A year after the maxi devaluation. based on updated information from SECEX. According to SECEX.April 2003 period are 84.S. The tables below show cotton imports by country of destination for MY 2001/02 and 2002/03.0810 With an over-valued currency during the first years of the Real Plan (1994-97). cotton imports during the August 2002 . Other factors also impacted U.000 MT. down 101. and USDA Foreign Agricultural Service. however. as reported by SECEX.000 . (Thousand Metric Tons) Consumption Local Production Exports Imports Imports from the U.* Statistics are unofficial estimates. Ministry of Finance. lint cotton. Source: Secretaria de Comércio Exterior (SECEX). For the domestic MY 2003/04. including: increased competition from MERCOSUL countries and Chile. as noted when comparing per capita fresh fruit consumption with that of more economically developed countries.000 MT from current season. domestic cotton consumption for calendar year (CY) 2001 is 872. fresh fruit imports. lint cotton. assuming that Brazilian macroeconomic variables improve in the near future. down 50. up 20. Major factors causing a reduction in consumption include the significant retraction in the retail market due to decreased purchasing power of Brazilian consumers and high unemployment rates. which enjoy duty-free entry and preferential tariffs. respectively.0807 & 0809 . lint cotton. from 2000. greater local production. cotton consumption is forecast at 800. assuming the expected increase in domestic production. Brazil has enormous growth potential. Cotton imports for MY 2002/03 are estimated at 120.000 MT from MY 2001/02.400 MT. There are market segments 58 . and USDA Foreign Agricultural Service Name of Sector: Fresh Fruit (Excl. Source: Secretaria de Comércio Exterior (SECEX) .

(Thousand Liters) Imports Imports from the U. and highly competitive. While Brazilian consumers generally ack awareness of U. which are not as sensitive to economic fluctuations. In the Southwest.34 2003 (*) 27.637 23. and USDA Foreign Agricultural Service.S.545 137 2. and is among the larger producers of pineapple. and USDA Foreign Agricultural Service Name of Sector: Wine HTS: 2204 Trade sources indicate that Brazilian wine consumption has grown on average from 1. Source: Secretaria de Comércio Exterior (SECEX) . which favors imported wine. Center-South and South regions.173 356 2. kiwi. bananas and papayas. The main suppliers of imported wine are France.50 2002 25.MICT. Chile and Argentina.3 liters per capita to 3 liters in the last decade.S. These last two countries also enjoy MERCOSUL tariff rate advantages.S. still tends to be consumed by higher economic classes. 59 . Italy. sector specialists indicate that the wine segment will be one of the least affected as wine.50 (*) Statistics are unofficial estimates. Even though domestic wine production has increased. plums. the average rose to approximately 10 liters. product in Brazil. notably the state of Rio Grande do Sul. (**) Import FOB price Source: Secretaria de Comércio Exterior (SECEX) .000 150 2. with time and product choices consumers learned more about wine quality and characteristics. dollar. Concurrently. it is not enough to supply the expanded demand.180 40. Ministry of Finance. particularly imported product. Brazil ranks among the major fruit producers. Portugal.000 380 66 1 (*) Statistics are unofficial estimates. vis-avis the U. they show great interest in learning more.125 362 63 1 2003 (*) 24. quality wines. (US$) (**) 2001 29. It is the top grower of oranges.MICT. peaches and strawberries. (Thousand Metric Tons) Consumption Local Production Exports Imports Imports from the U.to be developed. grapes.035 38. Today. Avg Price per lt. The sector is promising for imported wines. Despite the decline of the Real. 2001 23. Production is concentrated in the southernmost part of the country. opportunities exist for imported cherries. Ministry of Finance.922 439 62 1 2002 23. l Importers believe there is a great potential for the U.S. mangoes and grapes.S.

firms. the CET is currently full of exceptions. the Secretariat of Foreign Trade (SECEX) implemented a computerized trade documentation system (SISCOMEX) to handle import licensing. Paraguay and Uruguay. and in July 2000 the United States held its own WTO consultations with Brazil. Since 1990. etc.f. levied on the c. The average tariff in 1990. Argentina. Brazil also maintains a higher average tariff on processed items than on semi-processed goods and raw materials. and given these developments. The surcharge is being gradually phased out (over a longer period than initially anticipated). to register with SECEX (the Foreign Trade Secretariat). TRADE REGULATIONS AN D STANDARDS Trade Barriers. The United States continues to encourage tariff reductions on products of interest to U. the United States actively participated as an interested third party in European WTO consultations on the issue. To fight increasing under-invoicing. Brazil and its Southern Common Market (Mercosul) partners. It appears that the Government of Brazil has required some products to meet minimum prices for the issuance of import licenses and/or in order to receive normal customs processing. and importers must comply with onerous registration guidelines. All tariffs are ad valorem. Customs will focus its efforts on under-invoicing. after consulting with its Mercosul partners.). Brazil issued a series of measures that required additional approvals for products subject to non-automatic licensing. are the primary instrument in Brazil for regulating imports. In November 1999. Brazil implemented an across-the-board threepercentage point increase on all tariffs (inside and outside the CET). with the exception of some telecommunication goods. This would raise questions about whether Brazil's regime is consistent with its obligations under the WTO. Senior Brazilian officials have stated to embassy officers since late 1999 that such requirements currently do not exist. non-tariff barriers and import taxes. with rates between 0-35%. 1995. While the Government is now in the process of phasing these out and moving most products to the automatic license category. these requirements still present a barrier. Brazil’s average applied tariff is 11. The Brazilian Government reportedly has modified its customs regime somewhat. but it has not codified these changes in a public document. Under Brazil’s new Customs Valuation regulations. A primary concern has been the use of minimum reference prices both as a requirement to obtain import licenses and/or as a base requirement for import. Complete information on requirements for importing into Brazil is available only through SISCOMEX. import licensing. implemented the Mercosul Common External Tariff (CET) on January 1. quality and safety approvals from various government entities for products subject to non-automatic licenses. even though tariff rates in many areas are still high. in general. value of the import. In November 1997.06. Other Mercosul members have also unilaterally adjusted their tariffs in response to economic crises.S. and should be eliminated in 2003. raising the ceiling from 20 to 23%. Brazil has made substantial progress in reducing traditional border trade barriers (tariffs. including a minimum capital requirement. Brazil issued a series of administrative measures that required additional sanitary/phytosanitary (SPS). In January 1997.8% in 2002. 60 . was 32%. and broadened the list of such products. by contrast. Beginning in October 1998. and are authorized to hold up imports until the goods are valued. which is only available to registered importers. Tariffs.i. including tariffs. and a wide variety of products were subject to non-automatic licensing. There are fees assessed per import statement submitted through SISCOMEX.

Implementation of such import measures continues to be poorly coordinated and not well publicized. Argentina. • Industrialized Product Tax (IPI) The IPI is a federal tax levied on most domestic and imported manufactured products. • Import Duty Import duty is a federally mandated product specific tax. and (3) the Merchandise and Service Circulation tax (known in Brazil as the "ICMS"). The United States will continue to encourage the reduction of barriers to trade and investment.In addition.S. Brazilian exports are exempt from the IPI tax. In most cases. After the creation of the MERCOSUR customs union. and at the point of customs clearance in the case of imports. As with valueadded taxes in Europe. such costs are discussed below. Government also has received complaints relating to Brazil's "law of similars. the IPI tax rate ranges from 0 to 15 %. the tax is charged on the product's c. In addition to these three taxes. IPI taxes on products that pass through several stages of processing can be adjusted to compensate for IPI taxes paid at each stage. Please note that most taxes are calculated on a cumulative basis.S. Conversely. the importer debits the IPI cost. the four member countries -. when the product is sold to the end user. as well as for medical and pharmaceutical products. The United States signed a trade and investment framework agreement with Mercosul in 1991. While after the adoption of the TEC. product registrations from the Ministry of Health are required for imported processed food products and food supplement products effective March 1. specifically GATT Article XXIV.(1) Import Duty itself (known in Brazil as the "II"). Often one can note that usually a relatively low import tariff rate carries a lower IPI rate. The U. also increased significantly over the course of 1999. exports. Specifically.i. including tariffs and the creation of a customs union that is open and consistent with the WTO. a relatively high import tariff rate carries a correspondingly higher IPI rate. 2000. The Government of Brazil levies the IPI rate by determining how essential the product may be for the Brazilian end-user. since the value is credited to the importer. several other taxes and fees apply to imports.f.S. import tariff rates.adopted a single import tariff structure known as the "common external tariff" (known in Brazil as the "TEC"). Registration fees for these imports. In the case of imports.e.. Brazil. they are still high in comparison to U. Tax and Fees Assessed on Imports Imports are subject to a number of taxes and fees in Brazil. It is assessed at the point of sale by the manufacturer or processor in the case of domestically produced goods. which are usually paid during the customs clearance process. 61 . Brazilian import duty rates range from 10 . There are three main taxes that account for the bulk of importing costs -. magnifying the negative impact on U. value plus import duty. Paraguay and Uruguay -." including that it leads to non-transparent preferences for Brazilian products in procurement bids for government and non-profit hospitals and prejudices against the import of refurbished medical equipment when domestically-produced "similars" exist. with a reduced term of validity for registrations. The IPI tax is not considered a cost for the importer. Brazilian import tariff rates were reduced.20 %. (2) the Industrialized Product tax (known in Brazil as the "IPI"). Generally.i.

On interstate movements. shipped in a 20 foot container.65% of CIF for a 15 day period Typical Terminal Handling Charges at Santos' port: US$100 per container Merchant Marine Tax: 25% of ocean freight charges (does not apply to air freight) Mandatory Contribution to Custom Broker's union: 2. value. plus IPI. The rate varies among states. The ICMS tax due to the state government by companies is based on taxes collected on sales by the company. It also illustrates the impact of importing costs on the landed price of the product in the Brazilian market. Effectively.f. the importer debits the ICMS. Most Brazilian exports are exempt. since the cost of the tax is generally passed on to the buyer in the price charged for the merchandise. plus import duty. electrical energy.) • - Additional Miscellaneous Taxes and Fees Warehouse Tax: 0. it is not necessarily a cost item for the importer. because the paid value represents a credit to the importer. liquid and gaseous fuels are exempt from the ICMS tax. the rate is 18 percent. The ICMS tax is levied on both intrastate and interstate transactions and is assessed on every transfer or movement of merchandise. such as construction services. the tax is paid only on the value-added. When the product is sold to the end-user. shipped from Miami to the port of Santos illustrates how taxes and fees are calculated. minus the taxes paid in purchasing raw materials and intermediate goods. in the State of Sao Paulo. (Some sectors of the economy. the tax will be assessed at the rate applicable in the state of destination. 62 . mining. The ICMS tax on imports is assessed ad valorem on the c. Although importers have to pay the ICMS to clear the imported product through Customs.i.2% of CIF with a minimum contribution of US$71 and a ceiling set at US$160 SISCOMEX usage fee: US$30 Typical Cargo Transportation Fee: US$35 The hypothetical cost buildup for an imported machine. which is included in the final price of the product and is paid by the enduser.• Merchandise and Service Circulation Tax (ICMS) The ICMS is a state government value-added tax applicable to both imports and domestic products.

. . . . . . . . max US$ 160 . Custom Brokerage Fee: average 0. . . . . .applied to CIF + import duty + IPI . . . . the main advantages to Brazilian importers using the FUNDAP system are: Exemption of the "import" ICMS tax during customs clearance. . . . . . . . . . . . . . . . . . . . . ./foreign exporter is ready to ship to its customer(s). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The FUNDAP program allows for payment of ICMS up to 60 days after the product is sold to the final Brazilian customer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .400 19. . . . . Import cost is here defined as the total CIF + Import duty + Industrial Federal tax. . . . . . . . . . . . . . . . . . . . . . . . Typical Cargo Transportation charge . . . . . . . . . . . . . . . *Freight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The FUNDAP regulation permits the importer of record or consignee to transfer some financial benefits to the U. . . . . . . . . . . . . . . . . . . .646 6. CIF Price of Product. . . Under the new Customs regime imported goods in bond (or out of bond) may be held until the U. . . . . . . Terminal Handling Charges: average US$ 100 per container . . . . . . . . . . . . . . . SISCOMEX Fee . . . . . . . . . . . Warehouse: 0. . . . . . . . . . . . . . . . . . . . The goods can be held at the Customs Interior facilities (EADI) for up to 6 months. . . . . State of Espírito Santo Tax Exemption Incentive 100. . . . . . .000 156. . claims to have the largest privatized port complex of Latin America. . . . . . . . . either an importer of record or simply a consignee located in the City of Vitoria is exempt from this tax. . . . . . . . . . US$ 170.applied to CIF. . .000 103. . . . . . . . . thus improving the exporter’s cash flow and competitive position. The ICMS rate is 18% of the total import cost. Deferred payment of the "Sales" ICMS for approximately 60 days after consignee invoices the goods to the final customer ["Sales" ICMS is 12% of the sales amount in inter-state sales and is otherwise due within several days of the sale. . . . . . . . . . . . . . . . . . . . the goods are retained in a tax/duty free status. . payable upon Customs clearance of the imported goods. . . . . . . . . . . . . . . . . . . During this entry phase. . . . . . . . . . . . reducing the time and cost of clearing imported goods.256 600 235 100 160 450 30 35 2. . . . . . . . . . . . . . . . . Typical Bank Costs: 2% of FOB . . . . . . . . . . . . . . . . . . . . . Briefly. Merchant Marine Tax: 25% of ocean freight cost . . . . max US$ 235. . . . . . . . . . . . . . . . . . . . . . . . max US$ 450 . . . . . . . . . . . . . . Vitoria. .064 The State of Espirito Santo has established an import-friendly system entitled FUNDAP to defer payment of ICMS (value-added tax charged by all Brazilian States) to the State. .000 2. in the State of Espirito Santo. . . . .65% of CIF or min US$ 170. . . . .S. . . . . . . . . . or min. . . .152 23. . . . . . . . Contribution to Custom Broker's union 2. . . . ICMS: 18% -. . . . . . . . . . . .65% of CIF. . . . . . . . . . ./foreign exporter. .] 63 . . . or min of US$ 71. . . . . and improving the final operational efficiency of the import process. . . . . . .400 1. . . FINAL COST . . Specifically. . . . . . IPI: 5% -. . . . . . . . The FUNDAP program also applies to imports by air transport. . . . . . . .2% CIF. . . . . . as well as sea. . . . .FOB price of Product . . . . . . . . . . . . . . . . . . . . . . . . . . .applied to CIF + import duty. . The FUNDAP program has been instrumental in developing in the State of Espirito Santo an efficient and economical port structure (seven ports). Insurance (1%) . . . . . . . Import Dury Rate: 19% -. .S. . . . . . .

which. including description of the product as well as the harmonized tariff classification number. The SISCOMEX has a graphic interface for the composition of electronic import documents and transmits information to a central computer. similar to other countries in the region. Import Licenses Automatic License As a general rule. Brazil and the U. synthetic or artificial rubber. and several other animal or vegetal products. can still be burdensome. Company and/or product registration may be required for imports of numbers for asbestos. you should be prepared for the fact that unloading and clearance may take substantially longer than expected. fruits. shipping costs. sea food products. they are also working on a “green line” expedited method of clearance. The Brazilian Foreign Trade Secretariat (SECEX) is the government agency responsible for granting import licenses. - Non-Automatic License (LI) 64 . Approval by Brazil's Agricultural Ministry for imports of meat and food products. etc. Brazilian importers must be registered in the Foreign Trade Secretariat . quantity. Brazilian imports are subject to the "automatic import license" process. Certain products and import operations are subject to special requirements. value of the shipment. This information will be used for purposes of preparing the "Import Declaration" (locally known as the DI). Customs Clearance in Brazil can be a time consuming and frustrating process. milk and milk derivatives. The Brazilian Environmental Protection Agency may need to issue a determination concerning imports of natural. the average customs clearance time in Brazil was the slowest in the Hemisphere (150 hours). which should also be completed prior to the customs clearance process. are working on measures to allow more rapid customs clearance. perfumes and cosmetics and medical related products. This procedure requires that the Brazilian importer submits information concerning each import. Below is an illustrative list of special requirements. pharmaceutical products. The SISCOMEX has facilitated and reduced the amount of paperwork previously required for importing into Brazil. eggs and honey. However.Wordata – GB – Procedures – FUNDAP CCG 2003 Customs Regulations In 1997 the Brazilian Government established a computerized information system to monitor imports and to facilitate customs clearance known as the Foreign Trade Integrated System (SISCOMEX). loading and unloading as well as customs clearance need increased efficiency. Subsequently. To this end. all information is fed into Brazil’s customs computer system known as the SISCOMEX. Products can get “caught up” in customs because of minor errors of emissions in paperwork. In FTAA negotiations. In a report issued by ICEX (Instituto de Estudos das Operações de Comércio Exterior).S.SECEX’s Export and Import Registry and receive a password given by Customs to operate the SISCOMEX. agricultural chemicals. however. The Brazilians recognize that many of its ports.

Trade Information Center at 1800-USA-TRADE. quantity. products that may be harmful to the environment -. the U. oil derivatives or other petroleum derivatives. products for human or veterinary research. stamp selling machines. medications with plasma and human blood. as well as imports destined to the free trade zones and the National Council for Scientific and Technological Development. shipping costs. temporary admission. imports that do not involve payment from importer to the exporter -. Items on the Munitions Control list are also a controlled export to Brazil requiring a special license from the State Department or Commerce Department depending on the item. high-tech information systems. cosmetics and medical equipment/devices.S. samples. and equipment of a highly sensitive nature. anti-hemophilic serum.S. products that enjoy import tariff reductions.g. Export Controls At this time.. the importer must provide information concerning each shipment to Brazilian customs authority either prior to shipment or prior to customs clearance. airplanes. donations. Pre-shipment Inspection). mailing machines. Normal controls are maintained on military equipment.Whenever imports are subject to the Non-Automatic License (LI) regime. The required information includes a description of the product as well as the harmonized tariff classification number. or .The foreign company establishes a local Brazilian manufacturing unit or local office. 1999.The foreign company appoints a Brazilian distributor who is authorized by the Brazilian authorities to import and distribute medical products.. CFC. Brazilian Customs issued regulation 150 (Instrução Normativa 150) establishing new procedures for imports under Temporary Admission Program. including pharmaceuticals. crude oil. Such products can only be imported and sold in Brazil if: .g.e. For Additional information. However. vitamins. etc. Pharmaceuticals. Prior to Shipment Clearance: Products subject to special controls from SECEX or which require approvals from other Brazilian government agencies. radioactive products and rare earth metal compounds. the SISCOMEX system will indicate whether or not a "non-automatic import license" is required.e. weapons and related products. Import/Export Documentation (Health. Such products may include: used products in general. value of the shipment. etc. Temporary Goods Entry Requirements On December 20. The Program 65 . Shortly after feeding the SISCOMEX system information concerning a specific shipment. please contact the U. Any product that comes in contact with the human body is controlled by the Ministry of Health. psychotherapeutic drugs. such products must be registered with the Brazilian Ministry of Health. Government maintains no export controls specific to Brazil. Prior to Customs Clearance: Products imported under the drawback regime.

Under the program. quantity. Marking Requirements The Brazilian Customer Protection code. Taxes due are proportional to the time frame the imported product will remain in Brazil.000 (5% over CIF Price + Import Tax) US$ 31.000 20. requires that product labeling provide the consumer with correct. and risks to the consumer’s health and safety.according to Normative Instruction # 162. shelf life.000 11. In a regular operation the due taxes would be as follows: CIF Price: Import Tax: IPI: Payable taxes: 200. composition. The life span of this hypothetical machine is 5 years. guarantee. sheets and industrial tools. matrices. with 10% import tariff and 5% tax over industrial product (IPI). dated December 31. origin. clear.2 V = 6200 V = US$ 6200 Labeling. import tax and the Federal tax (IPI) are only charged on products that will be used in the production of other products and involves payment of rental or lease from the local importer to the international exporter. 1998) An example is a leasing operation for 12 months of a US$ 200.allows for imports of goods for a pre-determined time frame and a clear objective. 1990.000 Under the temporary admission program payable taxes would be as follows: V= 31000 x [ 1-{12 x 5 – 12}] 12 x 5 V = 31000 x [1 – 0. and easily readable information about the product’s quality. precise. in effect since September 12. Imported products should bear a Portuguese 66 .000 machine into Brazil. This includes products such as dies. The import tax applicable on products imported under temporary admission program is calculated according to the following formula: V = the tax to be paid I = Federal Taxes in the normal import process P = number of months in which the product will remain in Brazil U = the life span of the product . price.8] V = 31000 x 0.

In some areas. the Brazilian Association for Technical Standards (Associaçao Brasilera de Normas Técnicas).S. Standards committees are under the umbrella of ABNT but. in1973. The general rule prohibits the importation of all used consumer goods. The labeling requirement for genetically modified organism (GMO) must follow the same procedures as mentioned above.saude. 67 . SP Phonefax: 55/11/3257-7611 Website: www. Under this system. national security interest. 99 – Centro Cep: 01046-001 São Paulo. is the recognized standards organization. Brazilian Federal law established. is the national accreditation body and is responsible for all aspects of metrology. Used capital goods.cvs. U. “United States of America”. with participation from public and private organizations. on external shipping containers in indelible print of a suitable size.sp. INMETRO. exporters to inscribe.sp. Information sources: IPEM – Instituto de Pesos e Medidas do Estado de São Paulo Rua Santa Cruz. INMETRO is also the operating arm of CONMETRO. GMO is currently being debated in Brazil. industry groups hold the secretariat and run the technical committees that develop standards.br CVS – Centro de Vigilância Sanitária Av. it places special controls on certain imports and prohibits the importation of others. SINMETRO. Although such marking is not compulsory under law. although. the national committee that oversees the work of SINMETRO. Voluntary Standards. Imports of used machinery and equipment to the Manaus Free Trade Zone are subject to more liberal treatment Standards Legal framework. However.gov.São Paulo. Since metric units are the official measuring system.sp.S. ABNT. and to the environment.br E-mail: informacao@cvs. products should be labeled in metric units or show a metric equivalent. a government agency.br Prohibited Imports (SP) The Brazilian Government has eliminated most import prohibitions. 1953. Standardization and Industrial Quality.saude. There is also specific legislation that prohibits the importation of products that the Brazilian regulatory agencies consider harmful to health/sanity. the National System of Metrology. SP Phonefax: 55/11/ 5085-2600 Website: www. are allowed only when there is no similar produced locally.ipem. The United States Senate Concurrent Resolution nº 40 adopted July 30. invited U. National voluntary standards in all sectors are developed by ABNT. 1922 – Vila Gumercindo Cep: 04122-002 .gov. shippers are urged to follow this procedure in publicizing American-made goods.gov. São Luiz. in some sectors.translation of this information.

S. some U. Some ministries such as Health. It is expected that. Non-Mandatory Testing and Product Certification. exports.S. Testing must generally be performed in-country unless the needed capability does not exist in Brazil. Some of the regulations managed by INMETRO and currently in place are being strengthened and new ones are being studied. the appropriate agencies may impose their own requirements. Brazil develops and issues national planning documents for standards and certification activities that indicate general tendencies and the sectors where activities will be focused.S. There is no legal mandate to date to retest non-regulated products that have been approved in their country of origin. there is no impediment for U. Also. Future trends. This preference may be expressed in procurement specifications or in customary design and construction practices. Mandatory Testing and Mandatory Product Certification. organizations party to the ILAC MRA.S. As with standards. In Brazil. The buyer and seller share responsibility in determining what product standard is applicable. enforcement will increase. Products that are not under the jurisdiction of a specific ministry may be regulated by INMETRO. standards. Brazil (INMETRO) is a signatory to the mutual recognition arrangement of the International Laboratory Accreditation Cooperation that may facilitate acceptance of test results from U. Most recent rules mandate compliance to safety requirements with evidence of compliance often. products that meet European requirements may be preferred. Embassy in Brasilia. any certification that may be required in non-regulated sectors is a contractual matter to be decided between the buyer and the seller. in general. certification organizations to be established and accredited in Brazil. In regulated sectors. ranging from registration of products and laboratories to mandatory certification with the 3rd party testing done in-country. at the U.S. This could provide recognition of existing certifications. Products conforming to U.S. with regional responsibilities for South American countries. 68 . and Mines and Energy issue technical regulations for products under their jurisdiction. ABNT is also a certification organization for both products and systems.S. marks and product certification may be accepted. Given the growing importance of standards and conformity assessment in expanding U.S. agreements between U. However. but not exclusively.S. a standards expert is assigned to work in the Commercial Service. through mandatory product certification. For regulated products. many standards are voluntary.S. Agriculture. laboratories that are accredited by U. For non-regulated products.ABNT bases its standards on those of ISO and IEC and on occasion on U. To facilitate the acceptance of U. and local certifiers and testing houses are encouraged. Technical Regulations. products in the Brazilian market. the relevant government agency generally requires that entities that engage in product testing and mandatory certification must be accredited by INMETRO. standards may be fully acceptable. Market forces and preferences however may sometimes lead to the need for a specific certification.

ABNT has signed the WTO TBT Code of Good Practice for the Preparation. pre-measured products and others. Separate working groups. Mercosul countries are Argentina.org. as an active Mercosul member.org. Brazil. electrical products safety. AMN (previously known as the Mercosul Standards Committee) is composed of the standards institutes of Argentina. Regional technical regulations are developed and/or harmonized within the Mercosul Sub Working Group 3 in the following fields: automotive. including proposed mandatory regulations. Bela Vista 01310-910 São Paulo.abnt.Associação Brasileira de Normas Técnicas Av. a member of the World Trade Organization (WTO). signed the Agreement on Technical Barriers to Trade. harmonized Mercosul regulations must be adopted by each country. Normalização e Qualidade Industrial Contact: Annalina Camboim de Azevedo Rua Santa Alexandrina 416. metrology. located at NIST (see Information Sources below). such as those for telecommunications and health issues.Standards and Regulations in Mercosul. Most of the voluntary standards published deal with steel products. Paraguay and Uruguay and develops and harmonizes voluntary standards. Adoption and Application of Standards. The four countries generally adopt all Mercosul regulations though at different speeds. participates in the development of both Mercosul standards and regulations. Responsibilities under the TBT agreement include the establishment of a national inquiry point to serve as a central location for information on standards-related issues. International Agreements.br AMN. Paulista 726 – 10o andar. Asociacion Mercosul de Normalizacion Av.br Web site: http://amn. Brazil. SP Brazil Phone: (55-11) 3016-7040 Fax: (55-11) 3016-7049 Website: http://www. also focus on mandatory technical requirements for their particular sectors. The AMN Executive Secretariat is located in Sao Paulo. contact: INMETRO – Instituto Nacional de Metrologia. Several hundred additional standards are at different stages of preparation or in the work plan. Brazil. Paraguay and Uruguay. Auro Soares de Moura Andrade 664 01156-001 Sao Paulo – SP Brazil Phone: (55-11) 3823-4603/02 Fax: (55-11) 3826-3724 E-mail: secretaria@amn. cement and concrete and electrical safety. foods. Brazil. The Brazilian inquiry point is in INMETRO in Rio de Janeiro.br For information on the WTO-TBT inquiry point. affirming its WTO obligations relative to technical regulations and conformity assessment procedures. The Mercosul Standards Association. The US inquiry point is the NCSCI. Rio Comprido 20261-232 Rio de Janeiro – RJ 69 . Information Sources ABNT . To be applicable. toys.org.

Tabatinga. which has the most important Free Trade Zone. the capital of the State of Amazonas in the north region of Brazil. the Brazilian tax for industrialized products (which has the Brazilian acronym IPI) on certain commodities and the tax for in-country sales (called ICMS.gov.gov Web site: http://www. In addition. as a Brazilian acronym for Merchandise Circulation Tax) on most items are not applied. is located in the State of Amazonas. which has special incentives for the establishment of industries. The Decree No.Brazil Phone: (55-21) 563-2816/24 Fax: (55-21) 502-6542 Website: http://www. 288 of February 1967 established special incentives for a period of 30 years with the aim of creating an industrial.ansi. are also qualified for these tax exemptions.000 square kilometer area. re-export or transshipment.br For information in the U.inmetro. in the State of Amapá.. bordering with Bolivia.gov/ncsci American National Standards Institute (ANSI) 11 West 42nd Street New York. The other seven Free Trade Zones are located in Amazon’s frontier regions: Macapá-Santana. Bonfim and Paracaíma in the state of Roraima. which includes the city of Manaus. Brasiléia-Epitacilândia and Cruzeiro do Sul. which borders with Peru. The ICMS sales tax is imposed on items produced in the free port whenever they are shipped out of the Free Trade Zone into other areas of Brazil. and benefits an area that corresponds to 25% of the national territory. Manaus. in the State of Rondônia. State or local import taxes. commercial and agricultural center in the heart of the Brazilian Amazon. the other zones are only free ports for import and export of goods. Unlike Manaus. imported products to be used for processing.nist. which are subsequently shipped to other parts of Brazil.S.org Free Trade Zones/Warehouses There are eight Free Trade Zones in Brazil. NY 10036 Phone: (212) 642-4900 Fax: (212) 398-0023 Web Site: http://www. The Brazilian Federal Constitution of 1988 endorsed the fiscal benefits of the Manaus Free Trade Zone and extended their applicability to the year of 2013. in the State of Acre. The Free Trade Zone status implies that goods of foreign origin may enter into the Manaus free port without the payment of customs duties or other Federal. The Manaus Free Trade Zone has a 10. in the state of Amazonas. 70 . With very few exceptions. The Manaus Free Trade Zone is the most extensively developed. contact: National Center for Standards and Certification Information (NCSCI) National Institute of Standards and Technology (NIST) Gaithersburg. MD 20899 Phone: (301) 975-4038 Fax: (301) 926-1559 E-mail: ncsci@nist. and Guajará-Mirim.

and one of the following statements: "Zona Franca de Manaus para Consumo" (Manaus Free Zone for Consumption) or "Zona Franca de Manaus para Reexportação" (Manaus Free Zone for Reexport). In July 1992 the Brazilian Government announced a serial number of measures in order to help the Manaus Free Trade Zone. These licenses are additionally subject to authorization at SUFRAMA. Fiscal incentives for Manaus include exemption from the IPI tax and from tariffs on imported components. although required to perform much basic assembly in the zone. national security interests. On the other hand.com (private owned homepage). 50% of reducing from 2004 to 2008. 19 export processing zones have been authorized. These goods. With special government permission. The Brazilian Foreign Trade Secretariat – SECEX – is responsible for import licenses.hpg. however. such as consumer electronics. 71 . Computers and peripherals were not on the list. issued through the electronic system called SISCOMEX. The Ministry of Development. 8387 of December 30. The 1992 regulations allowed computer firms to benefit from both fiscal benefits and the change in local content requirements. are subjected to all duties assessed under normal importation. The general lowering of tariff and non-tariff barriers seriously hit the Manaus Free Trade Zone. A license and an authorization requirement for health/sanitary controls. may be permitted to import circuit boards which use only surface mounted devices. televisions. there is a program that reduces the income tax as following: 75% of reducing until 2003. The Manaus Free Trade Zone importers are allowed to supply foreign goods from their stock in Manaus to other parts of the country regardless of quantity. reduced state tax (ICMS) on products imported from or exported to the rest of Brazil. Brazilian restrictions on the informatics sector no longer apply to the Manaus Trade Zone.gov.br (Brazilian Government Official homepage) and www. modifies the regulations for the Manaus Free Trade Zone by eliminating the previously existing import quota and requiring only that prior notification is made to the Superintendent of the Manaus Free Trade Zone (SUFRAMA) which is the Manaus Free Trade Zone Authority. up to ten years exemption from federal income tax. Each industry had to perform certain basic assembly steps in the zone in order to qualify for the fiscal incentives. and VCRs. Detailed information can be obtained at the Internet under: www.estudosfiscais. the IPI Tax was raised by ten percent on competing products. and environmental protection remain in effect. In addition to the free trade zones. To protect Manaus industries. The import licenses must be issued prior to shipment of goods destined for the Brazilian marketplace. which are heavily concentrated in the zone. It is important to notice that Commercial invoices and bills of lading must have a letterhead mentioning "Free Zone of Manaus" that must be typed on them. there is the advantage that the ICMS is reduced to only 4 percent. 1991. (Actually. in May 1995 the Brazilian Government returned to the import quota system and nowadays only imports of wheat and petroleum are not subject to quotas.The Brazilian Law No. The initial list included stereos. Industry and Foreign Trade administers them. those are not produced outside the Free Trade Zone in Brazil. However. reduced tariffs on products shipped from Manaus to the rest of Brazil.ig. which are either imported or produced in Brazil but outside the zone.suframa. 25% of reducing from 2009 to 2013) and an exemption from import license fees. computer firms.

Goiás: Comex Produzir: Importations processed at the state have reduction of 85% on the ICMS. Foreign firms established in the zones may use their own hard-currency resources for tax-free imports of machinery and raw materials from abroad. However. and environmental protection. a member of the World Trade Organization. the Southern Common Market. Mercosul members Brazil. which essentially put foreign investors on an equal footing with Brazilians. New rules considerably liberalizing foreign investment in equities. License and authorization requirements remain in effect in ZPEs for health/sanitary controls. minus the cost of the imported inputs. Normal corporate income taxes apply to profits generated in the zones. INVESTMENT CLIMATE Openness to Foreign Investment Brazil welcomes foreign investment and has lifted many restrictions in the past several years to encourage foreign investors. An imperfect customs union. Up to 10 percent of production can be sold in the domestic market. national security interests. there are currently no ZPE’s in Brazil. (To have these facilities the importer needs to be on the state and in the program) Mato Grosso: 21 years to pay the ICMS for imported goods to industrial projects of interest to the state. provides a reduction of ICMS and larger period of time for paying it. The 1962 Foreign Capital law and subsequent amendments govern most foreign investment. Firms operating in the zones will be exempted from foreign exchange regulations and will maintain dollar and local currency accounts. The official Brazilian exchange rate must be used to convert dollar accounts for local purchases. and Uruguay implemented a Common External Tariff (CET) on January 1. and a participant in negotiations that would establish a Free Trade Area of the Americas by December 2005. Membership in Free Trade Arrangements Brazil is a founding member of Mercosul. Paraguay. took effect in 2000. Chile and Bolivia joined Mercosul as associate members in 1996. The Brazilian Congress approved constitutional amendments in 1995 to eliminate the distinction between foreign and national capital.Legislation regarding Export Processing Zones (which has the Brazilian acronyms ZPEs) requires that firms operating in the zone export at least 90 percent of their production. See above samples of the facilities that transform some states into ¨fiscal paradises¨: Espírito Santo: FUNDAP. Although the federal government is trying it’s not easy to combat these kind of “fiscal politics” once it involves big amount of money and local political power. Foreign investors have been permitted to invest in the Brazilian stock market since 1991. 07. Argentina. and is subject to a duty of 75 percent ad valorem on the final price. 1995 (see discussion under tariffs for further details on the Mercosul CET). With 15 years of free time. 72 . Firms in the ZPE may not produce goods subject to export quotas. DF Brasília: Importations processed at the Distrito Federal have 30 years of term to pay the ICMS.

1 billion in debt transfer as a result of its decade-long privatization program that began in 1991. registration is a pro forma matter.5 billion in FDI. and in 2000 the Central Bank greatly simplified requirements for capital account transactions. However. 48% of the total. fishing.S. Conversion and Transfer Policies There are few restrictions on converting or transferring funds associated with an investment. Brazil looks to foreign direct investment (FDI) as an important source of financing for its balance of payments. but some loans may be subject to review by the Central Bank. the Brazil Reinsurance Institute. In 2002.3% in 2003. Congress approved a constitutional amendment permitting foreign investors to own up to 30% of media companies. health services. power generation. media. In 2001. firms are already represented. The certificate of registration permits remittances of profits and repatriation of capital without additional Central Bank authorization. There are restrictions on foreign investment in a limited number of sectors: nuclear energy. have been delayed by a court decision. the vast majority of requests for entry or expansion have been granted. this has also delayed the country’s plan to open the reinsurance market to foreign and domestic competition. In most cases. mainly via joint venture arrangements.Constitutional amendments passed in 1995 opened formerly closed sectors. Brazil’s average MFN tariff was 11. Since 1996. Foreign banks currently account for 20% of total banking system assets and 38% of private bank assets. Usually this is done automatically. Investors must have a representative in Brazil and register with the Brazilian securities 73 . Registration is done electronically. Foreign exchange transactions on the current account have been fully liberalized in practice. and average tariff should fall to 10. mining. Through 2002. Central Bank authorities say that they intend to proceed with a general capital account liberalization in the medium term. All foreign exchange transactions. rural property. mail and telegraph. and internal transport to foreign investors. since 1995 entry or expansion has been approved on a caseby-case basis. Foreign investment accounted for $42 billion in sales revenue.6 billion in 2002. which runs sizeable current account deficits. aviation and aerospace. One third of the foreign investment was from the United States ($14 billion). All foreign investment must be registered with the Central Bank. reflecting both investor uncertainty in Brazil and a global decline in investment. foreign investors may freely convert Brazilian currency in the unified foreign exchange market wherein buy-sell rates are mainly determined by market forces. Foreign loans must be registered with the Central Bank.8% versus 32% percent in 1990. In 2002. the insurance sector has been open to foreign investors and most major U. Foreign direct investment dropped to $16. such as petroleum. including identifying data. telecommunications. Brazil has witnessed a significant reduction in trade barriers in recent years. Investments involving royalties and technology transfer must be registered with the patent office (INPI) as well. Foreigners investing in Brazil must register their investment with the Central Bank within 30 days of the inflow of resources to Brazil. must be reported to the Central Bank. Brazil realized $87 billion in sales revenue and another $18. At this time. Brazil received a $22. The government plans to privatize the state monopoly. New or expanded foreign investment in the banking sector is technically forbidden by the Constitution of 1988.

and.38%. associated with the partial privatization of a state electricity company. if the Central Bank does not respond within five working days. provided the recipient is not a government entity (loans to government entities still require prior approval). In 2003. but does have such treaties with a number of other countries. while those of longer maturity do not. Some claims regarding land expropriations by state agencies many years ago have been judged by courts in U. the registration is considered complete. Taxes— Dividend and capital gain remittances are subject to a 15 percent income withholding tax. the loan is reviewed by the Central Bank. capital (including capital gains). investors. royalties. Beginning in 2000. on stock market transactions. early payment requires prior approval of the Central Bank.S.S. Subsequent transactions. the parties involved continue to negotiate these contract disputes. a newly inaugurated government in another state refused to honor a number of contracts the previous state government had signed with a range of Brazilian and foreign investors. If the contract does not have such a provision. lease payments were assessed a 25 percent withholding tax. Brazil has no double taxation treaty with the United States. Loans of 90 days or less must pay the IOF. Automatic registration is not issued when the costs of the operation are “not compatible with normal market conditions and practices. Upon concluding the transaction. The remittance transaction may be carried out at any bank by documenting the source of the transaction (evidence of profit or sale of assets) and showing that applicable taxes have been paid. such as reinvested profits. 74 . if there is a provision in the contract for early payment. In 2002 Brazil eliminated the application of the financial transaction tax (CPMF). are able to remit dividends. the loan must be registered electronically with the Central Bank. Repatriation of an initial investment is exempt from income tax. the registration is completed automatically. this requirement is to ensure accurate records of Brazil’s stock of debt. signed by the prior state government. In 1999 a state government sought and obtained a court ruling canceling contractual obligations. and insurance (IOF). Foreign investors. That also applies to early payments. In most instances. citizens' favor. Remittances related to technology transfers are subject to the tax on credit. There remain individuals who have not yet been compensated because the states have appealed these decisions. Interest and amortization payments specified in the loan contract can be made without additional approval from the Central Bank. and all requests have been approved since the new guidelines were issued in 2000.” In such instances. if applicable. upon registering their investment with the Central Bank. Expropriation and Compensation There have been no expropriatory actions in Brazil in the recent past nor any signs suggesting that the Government is contemplating such actions. there are other approved procedures for transferring funds abroad that in practice can be used for a wide range of purposes. foreign exchange. In addition to payments associated with registered loans and investments. The court ruling is being appealed by the U. Foreign loans obtained abroad no longer require advance approval by Central Bank. According to Central Bank officials. Remittances must also be registered with the Central Bank.commission (CVM). Dividends cannot exceed corporate profits. which is currently 0. may also have to be registered with the Central Bank.

Foreign arbitration awards require confirmation by a court of the country in which rendered and the Brazilian Supreme Court. Some municipalities provide land on favorable terms for industrial development. None of the agreements has been ratified. may use violence to settle land disputes and influence the local judiciary. both domestic and foreign. In August 1995. powerful landowners. Performance Requirements/Incentives Geographic preferences consist of tax benefits for investment in less developed parts of the country. Legal experts doubt that such arbitration provisions would apply if the Government of Brazil. with equal application to foreign and domestic investors. In firms employing three or more persons. In rural areas. it is worth noting that the Landless Workers’ Movement (MST) political action group has recently been invading a variety of agricultural interests. such as the Northeast and the Amazon. Foreign specialists in fields where Brazilians are unavailable are not counted in calculating the one-third permitted for nonBrazilians. was one of the parties to the dispute. In urban areas. the police are sometimes implicated in killings. most foreign investment remains concentrated in the more industrialized southern part of Brazil. as well as the 1979 Interamerican Convention on Extraterritorial Validity of Foreign Judgements and Arbitral Awards.Dispute Settlement Brazil is not a member of the International Center for the Settlement of Investment Disputes (ICSID . An overburdened court system is available for enforcing property rights but decisions can take years. although those rights are sometimes difficult to enforce. Bankruptcy laws provide for creditor rights. as well as other criminal activities and abuse of prisoners. Brazil ratified the 1975 Interamerican Convention on International Commercial Arbitration. or another government entity. These benefits have had limited impact on most foreign investment decisions. They are rarely charged and convicted. Brazilian nationals must constitute at least two-thirds of all employees and receive at least two-thirds of total payroll. Finally. Brazil has signed Bilateral Investment Agreements with about fourteen countries (but not the United States) that permit arbitration by either ICSID or a panel set up under the United Nations Rules for International Commercial Law. Arbitration clauses in contracts are not enforceable as such. Binding arbitration between foreign investors and state entities is apparently prohibited on the grounds that it infringes the sovereign rights of the state. Congress is considering legislation that would streamline the assertion of lender rights in the case of default on a loan. often aided by police serving as their private security agents. except for corporations formed for the provision of professional services. Individual states have sought to attract investment by offering ad hoc tax benefits and infrastructure support to specific companies. 75 . Brazil has a functional commercial code that governs most aspects of commercial association.also known as the Washington Convention) nor of the New York Convention of 1958 on the recognition and enforcement of foreign arbitration awards. which are governed by the civil code. Political Violence (as it may affect investments) Significant human rights violations occur throughout Brazil.

particularly by special IPR task-forces in Sao Paulo and Rio de Janeiro.The Special Agency for Industrial Financing (FINAME) of the National Bank for Economic and Social Development (BNDES) provides financing for purchases by Brazilian firms of Brazilianmade machinery and equipment -. Patents – In most respects. sound recordings and musical compositions. own. locally manufacture. Nonetheless. books and computer software were over $770 million in 2002. Brazil has agreed to consult with the United States before invoking the local working requirement (to date. the patented invention in Brazil within three years of issuance. Brazil removed its reservations and fully accepted the Stockholm revision of the Paris Convention. including the Trade Related Aspects of Intellectual Property (TRIPS) Agreement. Copyrights -. significant anti-piracy raids have been made.Brazil's copyright law generally conforms to world-class standards. The law would theoretically permit the grant of a compulsory license if a patent owner has failed to work. and dispose of business enterprises. the Government created an inter-ministerial committee to address copyright piracy. Brazil is a member of the World Intellectual Property Organization (WIPO) and a signatory of the Bern Convention on artistic property. Brazil’s 1996 Industrial Property law brings its patent and trademark regime up to the international standards specified in the TRIPS Agreement. Protection of Property Rights Brazil is a signatory to the GATT Uruguay Round Accords. As a result of continuing problems regarding protection of intellectual property rights. i. Brazil has not yet ratified the WIPO Treaties on Copyright and Performances and Phonograms. The government also has a series of smaller programs designed to assist small and medium sized businesses export. but a national strategy for combating piracy on a comprehensive scale has yet to emerge. In May 2001. Trademarks -. However. Some foreign firms have been successful in court actions against trademark infringement. principally in enforcement. the failure to register licensing agreements will no longer result in cancellation of trademark registration for non-use. its software copyright protection law contains provisions that would introduce a rental right and an increase in the term of protection to 50 years. signed in April 1994. Likewise. A sting 76 . However. the Industrial Property Law has provided significant improvements in Brazil's trademark regime. widespread piracy of copyright and trademark material remains a problem.capital goods with a high level of domestic content.S.e. Government efforts to stem the flow of pirated goods through its ports and across the border with Paraguay have been largely unsuccessful. The U. Brazil remains on the Special 301 priority watch list following the early 2003 review. Right to Private Ownership and Establishment Foreign and domestic private entities may establish. however. and the Paris Convention on Protection of Intellectual Property. In August 1992. Despite passage of these copyright laws in 1998. Trademark licensing agreements must be registered with the National Institute of Industrial Property (INPI) to be enforceable. it has not used this provision). An export program known as PROEX was established in 1991 to equalize domestic and international interest rates for export financing and to directly finance production of tradeable goods. private sector estimates that trade losses from piracy of videocassettes.The fraudulent use of internationally "famous" marks has been a problem in Brazil. the law includes compulsory licensing and local working requirements which may be TRIPSinconsistent. the Washington Patent Cooperation Treaty. including better protection for internationally known trademarks.

but do not discriminate between foreign and domestic firms. which led to extensive financial losses for a number of companies. the latter has not been signed by Brazil. a process that is ongoing as of June 2003. However. but have not been ratifified. not only for those selling pirated products. the country’s telecommunication agency. In 2002. Taxes are numerous and burdensome. handles the licensing and assigning of bandwidth. The National Petroleum Agency (ANP) is commended by the industry for its fair handling of auctions of oil exploration blocks and its willingness to assist industry in seeking to simplify regulatory procedures such as environmental licensing. and businesses complain that these taxes hinder international competitiveness of Brazilian products. Brazil has separate value-added tax systems run by the federal and state governments. one of the invoice taxes was converted to a value-added tax. a number of companies have complained about the high level of regulatory risk in the sector. ANATEL. The central government has historically exercised considerable control over private business through extensive and frequently changing regulations. although in a few instances there have been complaints that the value-added tax collected by individual states (ICMS) is set to favor local companies. Bilateral Investment Agreements Brazil has signed Bilateral Investment Agreements (BITs) with fourteen countries and completed negotiations on two regional Mercosul agreements since 1994. Integrated Circuit Layout Designs -. The new law also establishes procedures for making arrests and destroying confiscated products. In 2003 the administration presented tax reform legislation to congress that would simplify the valueadded tax collected by the states and convert another invoice tax to a value-added tax.A government-drafted bill to provide protection for the layout design of integrated circuits (computer mask works) was introduced in the Brazilian Congress in April 1996. To enhance enforcement efforts. Taxes on commercial and financial transactions are particularly burdensome. This prompted the government to review the regulatory framework for the electricity sector. energy and transportation are a relatively new phenomenon in Brazil. Brazil suffered a energy crisis in 2001 when lack of rainfall triggered an electricity supply shortage in the heavily hydro-dependent country. hiding or acquiring counterfeit copyright products. smuggling. but also for those convicted of renting. State courts in particular are subject to political influence. The bureaucracy has broad discretionary authority. They cite the tariff review process and the lack of medium-term to long-term energy policy. and also imposes several invoice taxes that are cumulative. in the electric power sector. The draft law was still under discussion in 2002. Regulatory System: Laws and Procedures (as they pertain to investments) Although some improvements have been made. There are two Mercosul investment-related agreements: the Buenos Aires Protocol ("extrabloc") and the Colonia Protocol ("intrabloc"). Regulatory agencies for sectors such as telecommunications. the Brazilian legal and procedural system is complex and overburdened.operation at a border crossing in Foz do Iquacu in early 2003 also resulted in the arrest of a number of government officials involved with smuggling operations. The United 77 . the Brazilian Congress passed a law in July 2003 that establishes prison terms of two to four years for copyright violations. Seven of the bilateral investment treaties have been sent to the Brazilian Congress.

OPIC and Other Investment Insurance Programs Programs of the Overseas Private Investment Corporation (OPIC) are fully available and activity has increased in recent years. The IBGE reports that about 13 percent of the population is illiterate. regardless of membership status. In more recent years. as the wealthiest half of Brazilians earn nearly 90 percent of the total income. About a quarter of all workers are self-employed.2 percent. with 7 percent illiteracy in the Southeast and 26 percent in the Northeast. According to this survey. roughly a quarter in agriculture.States signed an Investment Warranty Treaty with Brazil in 1965. Illiteracy rates also exhibit regional disparities. are obliged to represent all formal sector workers in a professional category and geographical area. and do not enjoy full protection under the law. Union members account for approximately 16 percent of the workforce. These figures hide stark wage inequalities. Brazil became a member of the Multilateral Investment Guarantee Agency in 1992. however.1 percent in 2000. The participation of women. with this number reaching 60 percent in the Southeast (including Rio and Sao Paulo) and 77 percent in the Northeast (including Recife and Salvador). The typical industrial worker in Sao Paulo. The average monthly wage in Brazil’s six largest cities was approximately 770 reals (approximately $300) in January 2002. significantly higher unemployment numbers have been registered in such urban areas as Sao Paulo. tend to be well-organized and aggressive in defending wages and working conditions. and the minimum monthly salary was raised from 180 reals ($70) to 200 reals ($78) in April 2002. two-thirds of the population studied fewer than 8 years. the unemployment rate in 2001 averaged 6. Labor unions. Real wages declined by nearly four percent in 2001. most sources estimate that nearly half of all workers are not formally registered. earns about three times as much as the average retail worker in the northeastern state of Bahia. The Brazilian Institute of Geography and Statistics (IBGE) calculates an average unemployment rate for the country based on data collected monthly in Brazil’s six largest metropolitan areas. which are funded largely by a mandatory tax equivalent to one day’s wages per year. and the retail and manufacturing sectors combine to employ another quarter of all workers. continues to grow. In more remote areas with smaller local unions. pay no income taxes. however. The labor market has a high rate of informal sector employment. but unions represent more than twice this number in collective bargaining. down from 7. following two consecutive years of lower real wages for most workers. 78 . According to a 1999 survey by IBGE. Earnings also vary significantly by region and industry. Labor The Brazilian labor force comprises nearly 80 million workers in a wide range of occupations and industries. for example. Nearly half of the labor force is employed in the service sector. Unions. Differences in earnings are caused in part by the regional disparity in educational attainment and in the availability of skilled workers. who now account for over 40 percent of the labor force. unions tend to be less effective. especially in the most skilled sectors such as metalworking and banking. The size of OPIC's exposure in Brazil may occasionally limit its capacity for new coverage. The United States and Brazil currently have no plans to discuss a BIT.

Currently. DIEESE reports that most strikes were motivated by salary demands in the early 1990s. formal sector workers are guaranteed 30 days of annual leave. but that strikes are increasingly are undertaken to protest a perceived failure by management to comply with negotiated agreements. This approach is changing.Royalties Section for further information. salary disputes. the number of strikes each month has declined from 111 in 1996 to roughly 46 in 1999. which in the past has created problems for foreign investors. A 1992 INPI resolution simplified procedures and. working conditions.The Ministry of Labor estimates that there are over 11. Conversion and Transfer Policies Section for further details. foreign investors may freely convert Brazilian currency at the "commercial" rate. organize strikes and salary campaigns involving multiple professional categories. In addition.) There has been a relaxation since 1991 of the restrictions on the remittances of royalty payments for patent and trademark use between subsidiaries established in Brazil and the parent office headquartered overseas and on remittances of franchise contract royalties. According to the Interunion Department of Socioeconomic Studies and Statistics (DIEESE). an annual bonus equal to one month’s salary. eliminated a number of requirements (but not all) concerning technology transfer agreements. and severance pay in the case of dismissal without cause. as labor and management have become more flexible and collective bargaining has assumed greater relevance. Brazil also has a system of labor courts that are charged with resolving routine cases involving unfair dismissal. The labor code is highly detailed and relatively generous. Labor courts have the power to impose an agreement on employers and unions if negotiations break down and either side appeals to the court system. While some labor organizations and their leadership operate independently of the government and of political parties. This has led labor relations in Brazil to be characterized by a conflict approach in which both sides typically take extreme positions. the Central Bank has broad administrative discretion in regulating remittances. the Workers' General Confederation (CGT). where they may remain unresolved for four or five years. but Ministry officials note that these figures are inexact. however. No royalties or other fees may be transferred between related companies for the use of software. Capital Outflow Policy There are few restrictions on converting or transferring funds associated with an investment. others are viewed as closely associated with such parties as the PT and the PDT.FS). the Union Force (Forca Sindical . labor courts routinely are called upon to determine wages and working conditions in industries across the country.5 million complaints are languishing in the labor court system. and represent workers in many governmental and tripartite councils. As a result. and other grievances. At this time. However.) 79 . (Refer to Chapter VII . (Refer to Chapter VII. over 2. The Brazilian government is attempting to reduce this backlog and increase the efficiency of the labor courts through recent initiatives to expedite legal procedures and increase the number of claims that are resolved before reaching the courts. four major labor centrals have emerged: the Workers' Unitary Central (CUT).000 labor unions in Brazil. Labor federations channel much of the political activity of the labor movement. Local unions often associate with state federations and national confederations in their professional category. in particular. and the Social Democratic Union (SDS).

7 0.6 59.5 38.7 -41.9 82. Investment from Spain and Portugal surged in 1998 due to involvement in telecom privatizations and greatly increased investment in the banking sector by Spain. investment activity by other national groups.0 28.9 60. Spain had 11.1 35.7% or $11.7 10.8 57. balance of payments data. In 2000. Efficient Capital Markets and Portfolio Investment Brazil opened its market to foreign portfolio investment in 1991.5 -23.6 32.4 36. the United States was the largest single foreign investor in Brazil followed by Spain. Motorola and Ford-.BRAZIL’S CAPITAL FLOWS 1995-2002 (US$ billions) Net FDI Inflow Outflow Net Portfolio Investment Inflow Outflow Net Total Inflow Outflow 1995 1996 1997 1998 1999 2000 2001 2002 4.3 -52. Investment from the Cayman Islands began growing rapidly in 1995 and is thought to represent mainly repatriation of Brazilian capital entering the country as foreign investment and. The Brazilian financial sector is large and sophisticated.1 -37.0 45. Despite current 80 .represented foreign investment. Cargill.1 11.6 -24.2 41.2 -4.1 75.9 28.3 3.2 -49. Netherlands.3 32.4 -2.0 -1. to a lesser extent.1 -6.5 -28.7 38.3 59. Six of the top ten exporters -.GM.8 42.4 18.8 44.6 -9. Three U. the United States had the largest share at about 24% or about $24.5 16.. Ford Motor Co. Volkswagen.5 -36.1 -43.5 billion.1 22. Bunge and Halliburton.0 billion.1 14. Nokia.0 26.4 10.3 40.4 -23. Volkswagen.6 6.8 22. Texaco. Portfolio Investment includes equity and bonds Major Foreign Investors As of December 1998.8 18. and Exxon -.4 79.9 29.Bunge.0 Source: Central Bank of Brazil.5 -7.0 36.5 32.9% of the total or $12.0 22.2 -3.8 19. the government further liberalized portfolio investment by granting foreign investors greater flexibility in reallocating domestic assets without passing through the foreign exchange market. Of this.4 12. France.6 23. General Motors.7 -7.5 -26.9 -28. companies -. Seven of the top ten importing firms in 2002 were foreign: Motorola.8 -33.2 47.0 8.4 94.S. According to the Central Bank foreign capital census.1 -7.2 billion and Netherlands 10. Cisa Trading. Germany and Portugal.are among the top twenty domestic firms.3 29.3 30.9 -35.8 -30. in part a legacy of the high inflation period when good financial management was critical for a firm’s survival.9 10.7 -47. the stock of direct foreign investment in Brazil stood at $103 billion as of December 2000.

Banco do Brasil. high mandatory reserve requirements and administrative overhead. and Safra are Brazilian-owned private banks.S. and acquisitions. or transformed into development agencies.0 38. Dutch and U.1 45. and 1996 and 1997 were marked by a series of failures. the banking sector entered a period of consolidation in 1995. mergers.) Few corporations raise capital through the Brazilian stock exchanges. The federally owned banks were also undercapitalized and carrying poorly performing loans. and tightened its capital adequacy rules to better reflect risk.moderate inflation rates. Santander and ABN Amro are foreignowned banks (Spanish. Domestic banks began to experience liquidity problems. Most state banks were taken over by the federal government. In June 2001. the Central Bank strengthened its bank audits. liquidated. Nossa Caixa is owned by the state government of Sao Paulo. The total number of companies listed on the 81 .7 18. Bradesco. billions) (March 2003) BANK Banco do Brasil BNDES Federal Savings Bank Bradesco Itau Unibanco Santander Banespa ABN Amro Nossa Caixa Safra Assets 60.S. implemented more stringent internal control requirements. BRAZIL'S TEN LARGEST BANKS Public and private (U. risk. many the result of the banks undertaking loss-making “social” lending. These measures are applied to private and publicly-owned banks alike.3 33. the Federal Savings Bank (Caixa Economica Federal). and the National Bank for Economic and Social Development (BNDES) are owned by the federal government. and some 20 smaller banks were liquidated. and the disappearance of so-called "float income" due to high inflation.9 Source: Central Bank Notes. the government announced plans to recapitalize the banks and clean up their balance sheets. As a result of these failures. Itau. At the same time it is undertaking measures to prevent the banks from undertaking loss-making social programs without government budget support to subsidize the programs.1 15. In 2001 four new issues in the primary market raised only $366. privatized.0 12.4 7. It also established loan classification and provisioning requirements.5 million.9 7. dollars. Unibanco. Three of the country's ten largest banks failed and were taken over by other banks. bank lending spreads remain extremely high due to taxation. With the elimination of high inflation in the mid-1990s.3 31. Banks owned by state governments in particular were burdened with large amounts of unserviced debts.

An export credit program for capital and some consumer durable goods. notwithstanding positive financial statements prepared by the major accounting firms. The failure of major banks and large businesses during 1995.3 billion. so it is possible to achieve majority control of voting shares. As a result. 82 . auditors have been personally liable for the accuracy of accounting statements prepared for banks. In January 2000. distributors. In 2000. In 2001. up to two-thirds of a corporation's capital may be preferred (non-voting) shares. and service exports. The foreign investors are required to trade derivatives and stocks of publicly held companies on established markets. in which one company loses its separate identity by being merged into another. Trading is highly concentrated. The procedures for both are essentially the same. which finances capital good exports for both foreign and domestic companies. the Congress approved a law that limits preferred shares for new issuances to 50 percent. FINAMEX (Export Financing) is a part of FINAME. Wholly owned subsidiaries of multinational accounting firms.stock market fell to 388 as of May 2003. The same proposal strengthens rights for minority shareholders. brokers. Brazilian regulators removed a number of remaining restrictions on foreign portfolio investment. in which the pre-existing companies are extinguished and a new entity emerges. In 2001. new legislation granted the CVM independence and established stronger penalties against insider trading. but the sale has been delayed by a court decision. Brazilian law recognizes mergers. PROEX receives funds from the National Treasury to offer assistance in the areas of interest rate equalization. including the major U. are present in Brazil. the numerous regional stock markets agreed to consolidate. was established in 1991. This is mainly due to the high cost-benefit relation of keeping a company listed at the stock exchange for some companies. and consolidations. while trading of public securities is conducting on the Rio de Janeiro market. The Sao Paulo stock market also launched a “New Market. with the intent of promoting the stock market and improving liquidity. The Brazilian Securities Exchange Commission (CVM) directly regulates the stock exchanges.S. BNDES. capital and other goods exports. Beginning in 1996. Total turnover in the secondary market was $49. but opening the reinsurance market to domestic and foreign competition has been help up pending the privatization of the Brazil Reinsurance Institute (IRB). Historically. and also provides export credits. Some Brazilian firms are also listing on the NYSE via American Depository Receipts (ADR's). securities and derivatives. by holding only 17 percent of total capital. in some cases. raised doubts about the credibility of these financial statements. mutual funds. Sales of Brazilian companies usually result from private negotiations. with the top 10 stocks accounting for 56 percent of turnover. All stock trading is done in Sao Paulo stock market. known as PROEX. foreign investors – both institutions and individuals – can directly invest in equities. FINAME (Special Agency for Industrial Financing) provides foreign and domestic companies operating in Brazil financing for the manufacturing and marketing of capital goods. pension funds. firms. rather than stock exchange activities. The government legally ended the reinsurance monopoly in late 1996. The firm was scheduled to be privatized in 2000. the government national development bank. and leasing companies. is the primary Brazilian source of longerterm credit.” in which the listed companies would comply with strict corporate governance requirements. compared to 399 in 2002 and 439 in 2001.

manages exchange transactions. efficient. The following are key governmental financial institutions: National Monetary Council -. see Trade and Project Financing. With the reduction of the financial operations tax (IOF) on overseas credit card purchases to less than 2 % in February 2000. including housing and educational programs. primary lender to the agricultural sector. It is the principal governmental entity responsible for financing urban development and sanitation. registers foreign investment. Brazil's banking system is highly developed. and maintains strict accounting and operational supervision. Individuals may import items via catalogs or phone/mail order. Brazil removed the last obstacle to full liberalization of the current account. Foreign Exchange Controls Affecting Trade (As Opposed to Investment) Obtaining an import license gives importers access to foreign exchange to pay for imports at the commercial rate through commercial banks.Sets financial and monetary policy.Acquisitions resulting in market concentration in excess of 20 percent are subject to review by the Administrative Council for Economic Defense (CADE) under Brazil's 1994 Anti-trust Law. Ceará. Brazil's Central Bank regulates banking and financial services. the government instituted new rules that forbade normal financing of outstanding balances arising from international credit card purchases. for the low-income citizens.e. Private sector banks are often organized as financial conglomerates offering a full range of financial services through subsidiaries and associated companies. of less than 360 days in duration. and the Investment Climate Statement.Finances both public and private sector projects.Provides long-term financing and administers the privatization program. and Piauí. National Economic and Social Development Bank (BNDES) -. The number of such state-level banking institutions has fallen in recent years due to the central government's financial and banking reform efforts. In May 1997. regulates banking and financial institutions. Bank of Brazil -. Four of Brazil's states still have state-owned or state-controlled banks offering public and private banking services: The States of Maranhão. 83 . Caixa Econômica Federal – Finances social programs. 08. paying with an international credit card. Chapter VII. and offers a wide range of financial services. For more information on Brazil's banking system. sets interest rates within inflation-targeting policy framework via the Monetary Policy Committee (COPOM).Executes monetary policy. TRADE AND PROJECT FINANCING Brief Description of Banking System The largest in South America. Ended in October 1999 were import financing restrictions imposed in April 1997 that had required importers to purchase foreign exchange for financing purposes at least 180 days in advance of the due date for short-term supplier credit.. i. Central Bank -. Santa Catarina.

per company. is the main source of medium and long-term financing in the Brazilian economy. Disbursements by sector in CY 2002 : Commerce and Services : 47% Infrastructure : 43% Agribusiness : 10% BNDES’s main credit activities are financing of fixed investment.br Loan terms for FINAME (Special Agency for Industrial Financing) are: Maximum coverage is 90 % of transaction Maximum of US$ 7. BNDES focus has varied in the past: 1950’s : Infrastructure . energy or technology. The key interest Selic rate (Brazil's counterpart to the U. The sovereign risk is 100% owned by the Brazilian Federal Government. medium or large Brazilian companies investing in capital goods.5% in 2002). acquisition and leasing of machinery and equipment.gov. Financing infrastructure (energy. Privatization (Management of the Brazilian Privatization Program -Total : $100 billion) With the new Brazilian government having taken office in January 2003. small and medium companies). and Financing to Brazil-based exporters and buyers abroad. Brazilian National Development Bank . nanotechnology). Continental integration (partnership with other South American financing agencies).bndes.BNDES The Brazilian Development Bank (BNDES). raw materials. Brazilian export of goods and services. Technology projects (Biotechnology.General Availability of Financing Interest rates currently prevailing in Brazil for short term loans (60 to 90 days) range currently from 20 to 60% a year (with a 12-month inflation of 12.000. Fed Funds) adopted by the Brazilian Central Bank monetary policy committee (Copom) is 26% a year. Presently BNDES emphasizes: Social inclusion (employment. The BNDES’ budget for 2002 was about US$ 10 billion for financing to small. disbursed in one year 84 . water.Steel 1960’s : Basic inputs – Consumer goods – Small and medium-sized enterprises 1970’s : Import substitution of basic inputs – Capital goods 1980’s : Energy-Agribusiness 1990’s : Private Infrastructure and Brazilian Exports. oil and gas. The BNDES is one of the few sources of long term financing in the market. telecommunications and logistics). BNDES changed its orientation. as well as the main Brazilian agent of multilateral credit organizations. ports.000 is automatic. founded in 1952. Web site: www. infrastructure.S. education). Modernization and expansion of the productive structure (creation of micro.

horses and donkeys. carrots. cauliflower.S. and subsidiaries of international banks are active in trade finance. beans. distilled spirits (rum. Terms were increased to 18 months in March 1997. including semen and embryos). lettuce. bank financing.Disbursal above that limit depends on the company in question Cost: currently 13. Leasing.S. total quality systems. lease-back and leasing-import are widely used in Brazil. swine. for research centers.S.55 to 16. United States Department of Agriculture Credit Assistance Program A GSM-102 credit assistance program was extended to the Brazilian private sector for the first time in the Fiscal Year 1995 (October-September). carrots. banks that extend credit to Brazilian banks to finance U. The reduction of risk may be reflected in lower interest rates on financing than would be the case without a USDA guarantee.The Study and Projects Financing Agency of the Ministry of Science and Technology made available US$ 260 million in 2002 for long-term financing with a grace period of 2 years and repayment period of 5 years. FINEP'S funds are made available to the public through some development banks. and imported equipment. As a result.86 % per annum (long term interest rate of 10. BNDES also provides export finance for capital goods and for services. agricultural commodities to Brazil under the Commodity Credit Corporation's Supplier Credit Guarantee Program (SCGP) for Fiscal Year 1997. canned vegetables (asparagus. FINEP . U. Payment terms are available for up to three years for breeder livestock exports. goats. broccoli. However. many suppliers extend open account privileges to established reliable clients in Brazil to avoid high financing costs.S. locally produced. This is an adaptation of the GSM-102 program and is designed to assist exporters of U. letters of credit and other trade finance can be expensive to open in Brazil. and all other taxes and fees involved in the importation.S. import taxes.S. tomatoes 85 . Department of Agriculture has authorized US$ 10 million in credit guarantees for sales of U. potatoes and tomatoes). Leasing is available for both new and used. both for exports and imports. agricultural exports. transportation. onions.25 % plus spread of 3 to 6 % representing BNDES spread and commercial bank fee Amortization period: six months to 5 years Maximum grace period: up to twelve months . sheep. celery. and joint ventures. The leasing operation includes financing of installation. The program is currently authorized at US$ 250 million. vodka and whiskey). peppers. at the time Brazilian government instituted restrictions on short term import financing. exporters may apply for credit guarantees on a first-come-first-serve basis to cover sales of any of food and agricultural products. Brazilian commercial banks. wine and brandy. The U. peas. Eligible products under the GSM -102 Program include: Breeder livestock (cattle. agricultural commodities who wish to provide relatively short-term credit to their importers These credit guarantee programs reduce the risk of nonpayment to U. corn. freight. garlic. corn. beans. How to Finance Exports/Methods of Payment All the standard methods of export financing are available and used in Brazil. fresh vegetables (asparagus. This financing was for the development of new products.S. or it may mean the difference for the availability of U.

one or the other of which must be used by the importer to evidence its obligation to pay for the U. grapes.8 67. frozen or chilled (beef. almonds ( walnuts.S. lactose. and/or printed). pears. barley malt. peas and lentils). dry. peanut butter or peanut flour.tomato paste. beer. nectarines. 9/36 at 24 months.S. Exporters are advised by CCC to review thoroughly the provisions of these promissory notes with the importer. wood. Four additional credit options are also available for coverage of sales to Brazil. ghee. granules). applicable guarantee fee rates. semolina. lemons.wheat. ready-to-eat meals. eggs and egg products (fresh. flakes.5 18 months 36 months (Livestock only) 48. albumin. including malting barley. corn and spinach). grapefruit. melons. pork and their products). frozen vegetables (beans. non-fat and whole milk powder. oranges. refrigerated of frozen). poultry breeder stock (baby chicks. Also. cotton. 100% cotton yarn. seafood (fresh and frozen).and tomato paste). yellow corn. pistachios. hazelnut and pecan). Length (Term) of Coverage 15 months 18 months Principal Repayment Intervals Full repayment at 15 months 5/6 repayment at 15 months and 1/6 at 18 months Full repayment at 18 months 15/36 repayment at 15 months. peaches. dairy products (butter. corn meal. whey protein concentrate. turkey pouts and hatching eggs). hops: hops extract. ice cream. cherries. fresh fruits (apples. Embassy in Brasilia. broccoli. raspberries and tangerines). skins. blueberries. 100% cotton fabrics (woven and knit unbleached/bleached/dyed. please contact the Foreign Agricultural Office at the U. lard. whey powder. In order to obtain an updated list of the OAA Brazilian participating banks. peanuts. These new configuration are set forth below. refrigerated. potatoes(cut and chilled or frozen. soups and sauces. frozen fruits. kiwi. tallow: grease. avocados. vegetable oils. expressed in cents per US$100 of coverage (based upon guaranteed value) are shown. corn products (flour. wheat flour. etc). seeds for sowing.5 43. preparation for breads and pizzas (powder. dry fruits. feed grains (barley. frozen. soy protein products. Two promissory note forms exist. animal feed ingredients. honey. anhydrous milk fat. white corn. popcorn and gluten). lecithin and cheese). agricultural commodities exported under SCGP. carrots. butter oil. rice. alfalfa. These fee rates include a charge to provide adjustable interest coverage. meat. fish food. starch. apricots. 100% natural fruit juice. nutritional beverages preparations (for human consumption). plums. 86 . commercially prepared dog and cat food. canned fruits. pulses(dry beans. fruit pure and fruit pulp. No changes may be made to the promissory note form elected for use and no other form of promissory note may be used. and 12/36 at 36 months Fee(cents/$100) 40. canned pickles. fluid milk. soft drinks and sodas. cereals. non-sweetened condensed milk.0 No interest coverage is offered. sorghum and oats).

Types of Available Export Financing and Insurance Export-Import Bank of the United States The Export-Import Bank of the United States (Eximbank) offers a range of loan. jobs. and the company must have a good commercial track record.S. will pave the way for co-financing projects with the export credit agencies (ECAs) of other countries. The more flexible procedures. goods and services. exports to Brazil when the obligor is a highly creditworthy private sector entity.S. its audited balance sheet and income statements must be very strong.S.S. Such information includes financial statements and credit references. and lease insurance policies. export sales. Ex-Im Bank has approved major procedural changes in applying its foreign content and local cost policies to finance U. insurance and loan guarantee programs to facilitate exports of U. which borrows in the commercial market and re-lends for exports. companies seeking to win foreign sales by making Ex-Im Bank programs easier to use. a Brazilian public sector entity may be the end-user. Ex-Im Bank will work with exporters to monitor and report on the impact of these procedural changes to ensure they achieve the desired result of maximizing U. obligor. or guarantor of financing provided with Export-Import Bank assistance. However Ex-Im Bank will now use an aggregate approach to calculating the foreign content of transactions.S. supply contract. or 100% of the U. effective immediately.S. contract price of an export to support locally obtained products and services in the country of the foreign buyer. exports and U. Most of the Bank's recent medium-term Brazilian business has been done under the Credit Guarantee Program. The Brazilian bank becomes the obligor and assumes the commercial risk of the transaction.S.S.S. Local Cost Policy: Ex-Im Bank provides up to 15% of the U. including short-term and medium-term export insurance.S. assuming the commercial and political risks of the loans. letter of credit insurance. medium-term and long-term programs are available to support U.S. Government lenders. content of an export transaction. goods and services. The resources guaranteed by the Bank are made available to privately-owned Brazilian companies importing U. The Bank's short-term. Ex-Im Bank works with the Foreign Credit Insurance Association (FICA) to offer various export insurance programs. Engineering data are required for long-term transactions. Foreign Content Policy: Ex-Im Bank will continue to support the lesser of: 85% of the U.S. The changes will enhance the competitiveness of U. The Ex-Im Bank requires information on proposed obligors and guarantors. The simplified procedures provide U. Following a relaxation of policy in late 1998 reflecting Brazil's progress in making up arrears payments to U. exporters with a more efficient and predictable disbursement process. multi-buyer insurance.S. The Bank does not require that a private sector commercial bank be the obligor or guarantor on all transactions. Under the new procedures Ex-Im Bank has eased the eligibility criteria in three ways: 87 . Other Eximbank guaranteed export credits are available from the Private Export Funding Corporation (PEFCO). bank loans to private Brazilian banks. If the risk is with a non-bank company. Eximbank acts mainly as a guarantor of U. replacing the item-by-item procedure used until now.

C. Additional information on Ex-Im Bank. Ex-Im Bank conducted joint marketing seminars with Banco do Brasil in five Brazilian cities to encourage more small and medium-sized Brazilian companies to purchase U. Ex-Im Bank will continue to ensure that it meets all of its policy and legislative responsibilities. It also enables companies to obtain export financing more easily because the proceeds of the policy can be assigned to a financial institution. Using the flexibility created by these changes.co-financing.1. In Brazil. exporters to offer foreign buyers the convenience of a "one-stop-shop" approach. When Ex-Im Bank is the lead ECA on an export transaction.S. exports to Brazil. 2. NW Washington. For limited recourse project finance transactions.) In FY 2002. exporters.S. Ex-Im Bank may now support any local costs that benefit the project as a whole and contribute to the U.S. FICA and PEFCO programs can be obtained from: Export-Import Bank of the United States 811 Vermont Avenue. 20571 (202) 565-3946 Web site : www. Senior Business Development Officer Phone : (202) 565-3939 88 . the new local cost and foreign content procedures will make Ex-Im Bank's ways of doing business more consistent with the co-financing model used by other ECAs.S. export. D. Co-financing Procedures: The foreign content and local cost changes pave the way for another important initiative -. O’Connor. As of February 1. Short-term export credit insurance (repayment terms generally 180 days or less) is one of Ex-Im Bank's principal products to assist small business exporters because it protects against loss due to buyer default for commercial or political reasons. Ex-Im Bank authorized US$ 73. Craig S. which involve exports from each of the respective countries. Ex-Im Bank is eliminating certain documentary requirements for local cost financing to avoid unintended expenses for U.S.590 to support U. When Ex-Im Bank is the follower ECA on a transaction. the Export-Import Bank of the United States (Ex-Im Bank) implemented two changes that will enable more U. (Ex-Im Bank will continue to offer local cost support for all medium-and long-term environmental exports and for project finance transactions). and an increase in the eligibility threshold of the small business policies from $3 million to $5 million in annual credit sales. exporter's responsibilities in carrying out his contract.959.S. Ex-Im Bank has established principles for co-financing transactions with other ECAs.exim.S.gov Contact : Mr. and 3. Now all long-term cases can obtain local cost support when the costs are connected to the U. goods and services with Ex-Im Bank and Banco do Brazil financing. 2001. These principles allow U. (Note: CS Brazil Finance Team actively supported and participated in many of these promotional seminars. small business to access short-term export credit insurance for their foreign sales : a new short-term pricing system that will reduce premium rates on short-term policies for lower-risk transactions.

Market estimates are that US$ 44 billion needs to be invested in the next two years. almost all project finance is raised in the international market. IL 60603 Phone: (312) 353-8081 Fax: (312) 353-8098 West USEAC – One World Trade Center Suite 1670 Long Beach. the Brazilian Government has granted concessions to private companies to explore commercially some of the activities formerly reserved to state-owned companies (electricity distribution and generation.W. US$ 5 billion in transportation. Exporting companies typically securitize future export earnings not only for implementing restructuring projects but also for working capital. FL 33126 Phone: (305) 526-7436 Fax: (305) 526-7435 Southwest Ashford Crossing II 1880 South Dairy Ashford II Suite 585 Houston. Ave Suite 3M2 Miami. of which US$ 12 billion is needed in electric power. 72nd. Monroe Street Suite 2440 Chicago. Due to high domestic interest rates. TX 77077 Phone: (281) 721-0465 Fax: (281) 679-0156 Midwest 55 W. and US$ 20 billion in the petroleum sector.Eximbank Regional Offices: Northeast 6 World Trade Center Suite 635 New York. US$ 7 billion in telecommunications. Since February 1995. CA 90831 Phone: (562) 980-4580 Fax: (562) 980-4590 Availability of Project Financing Overseas Private Investment Corporation (OPIC) There is a huge potential for project finance operations in Brazil because of the lack of public funds for infrastructure investment. The concessions opened new business 89 . NY 10048 Phone: (212) 466-2950 Fax: (212) 466-2959 Southeast 777 N. road repair).

Washington. which was halted in the past due to the lack of investment funds. new gas pipelines and associated thermal power generation plants. Ex-Im has no minimum or maximum project size limitations and no specific country lending caps. with loans covering $266 million. by providing financial advisory services and raising funds. In CY 2001. 20527 Web site : www. The U. N. OPIC provided insurance in Brazil for five projects. Some of the projects that could be undertaken through project finance include the construction of 19 hydroelectric plants. the Ex-Im Bank established a Project Finance Division. Asia & Latin America Investment Development Phone : (202) 336-8616 Ruth Ann Nicastri – Regional Manager for Latin America and the Caribbean. and El Paso Energy Corp. namely the AES Corporation/Companhia de Geração de Energia Elétrica Tietê. Manager. and political risk. there are 22 projects.W. economic. In 90 . Banco Itaú and Banco Unibanco are some of the banks in Brazil that have been involved in project finance. and repair of several highways.opic. Investors typically seek guarantees from international institutions because the long-term nature of the operations presents high commercial. Preliminary studies involved in project finance can take as long as four years. Nancy Rivera.opportunities for banks operating in Brazil. Manager. Project Finance Phone : (202) 336-8500 Mr.gov Contacts: Ms. Multilateral Development Banks/International Financial Institutions The Inter-American Development Bank (IDB) and the World Bank are also involved in supporting infrastructure projects in Latin American countries. In 2002 the IDB approved ten loans totaling US$ 690 million. D. Insurance Phone : (202) 408-6240 Ex-Im Bank In June 1994. The cost of using Ex-Im Bank financing will be directly based on the risks associated with each project and will be designed so that the bank neither makes nor loses money.C. Richard Greenberg./UTE Araucária. Commercial Service Brazil was actively involved in several of those projects. OPIC did not commit any projects in Brazil in FY2002. Insurance Phone : (202) 336-8590 Andre Potasinski – Country Ofiicer. Currently in the IDB pipeline for Brazil.S. The Bank is capable of financing all creditworthy projects that request its support. Several banks are engaged in project finance for private investors. Citibank. Additional information on OPIC programs can be obtained from: Overseas Private Investment Corporation 1100 New York Avenue. Banco Bradesco.

(São Paulo) Capital Bank (Rio de Janeiro) Chemical Bank (São Paulo) Citibank (São Paulo) Corestates Bank N.iadb. (São Paulo) 91 . and designing projects for future private sector participation. such as education. Morgan & Chase (São Paulo and Rio de Janeiro) M & T Bank (Rio de Janeiro and São Paulo) Manufacturers Hanover Trust Company (São Paulo) Mellon Bank (São Paulo) Merrill Lynch (São Paulo and Rio de Janeiro) Nations Bank (São Paulo) NCNB National Bank of North Carolina (São Paulo) Pinebank (São Paulo) Pittsburgh National Bank (São Paulo) Security Pacific National Bank (São Paulo) Texas Commerce Bank N. About 60% of the Bank’s resources in FY 2002 focus on targeted poverty reduction. American Express Bank Ltd. Citibank. JP Morgan & Chase. the World Bank approved. health. In terms of asset size. Inc. rural development and water/sanitation. (São Paulo) Union Bank of California N. in fiscal year 2002. The Bank's activities include traditional co-financing.A. and Banco GM were among the top 50 institutions in the country as of March 2000.A.worldbank.org and www. (São Paulo) UBS Securities Inc. creating infrastructure funds to finance private project companies. commercial and investment banks have been in Brazil since 1915.S. Banking Arrangement Brazil has one of the most sophisticated financial systems in Latin America.25 billion. U. World Bank guarantees.S.Illinois (São Paulo) Bank of America International of Florida (São Paulo) Bank of America International of Texas (São Paulo) Bank of America National Trust and Savings Association (Rio de Janeiro and São Paulo) Bank Ford (São Paulo) Bank General Motors (São Paulo) Bank John Deere (Porto Alegre) Bank Merrill Lynch (São Paulo) Bankers Trust Company (São Paulo) Bear Stearns & Co. Banco Ford.P.Brazil.A. (São Paulo) Delta National Bank and Trust Company of New York (São Paulo) First Interstate Bank of California (Rio de Janeiro) First Republicbank Dallas.A. thirteen projects totaling US$ 1. Citibank (12th) and Bank Boston (16th) are placed among the country's top 20 institutions on this basis. Web sites : www. (São Paulo) BankBoston (São Paulo) Bank Audi (São Paulo) Bank of America . Bank Boston. N. (São Paulo) Goldman Sachs (São Paulo) Harris Trust and Savings Bank (São Paulo) J.org List of Banks with Correspondent U.

businessperson is encouraged to learn as much about the Brazilian economic and commercial environment as possible before doing business.S.m. While many Brazilians may speak English. specialists providing “technical assistance” to a firm located in Brazil related to the execution of a sale or contract of that firm with a U.m. Brazilian visas must be obtained in advance from the Brazilian Embassy or Consulate nearest the traveler’s place of residence. regardless of type or validity. are considered invalid if not used within 90 days of the issuance date. There are no “airport visas. which must be approved and transmitted to the appropriate Brazilian Embassy or Consulate 92 . and English is preferred as a substitute over Spanish. partners. to 6:00 p. The Brazilian entity inviting a technical expert to Brazil must apply for and obtain a work permit from the Ministry of Labor in Brazil. and negotiations with subsidiaries.S. Many Brazilian executives do not react favorably to quick and infrequent visits by foreign sales representatives. business visitors should become accustomed to several business conditions specific to Brazil.S. Specifications and other technical data should be in the metric system. even if they are not employed in Brazil and receive no remuneration from a Brazilian source. BUSINESS TRAVEL Business Customs U. It is rare for important business deals to be concluded by telephone or letter.S. the pace of negotiation is slower and is based much more on personal contact.” and immigration authorities will refuse entry to Brazil to anyone not possessing a valid visa. company always require work visas. While office hours in Brazil are generally 8:00 a. U. Travel Advisory and Visas A passport and visa are required for Americans traveling to Brazil for any purpose.S. U. discussions. executive may need an interpreter on more than 50 percent of business calls. and 3:00 to 5:00 p. In addition. Correspondence and product literature should be in Portuguese. one should be as prepared technically when making a call on a Sao Paulo firm as on a Chicago firm. although this is less the case for Sao Paulo where appointments are common throughout most of the day. Business visas are required for visitors intending to engage in business transactions such as meetings..The Bank of New York (São Paulo) Wachovia Bank (São Paulo) (Source : Brazilian Banking Association – FEBRABAN) 09.. Lunch is usually two hours.m. All Brazilian visas. In fact. The best times for calls on a Brazilian executive are between 10:00 a. or customers in Brazil. decision-makers begin work later in the morning and stay later in the evening. Business travelers attempting to enter on tourist visas risk being denied entry. The non-Portuguese speaking U.m. and noon. The Brazilian buyer is also concerned with after-sales service provided by the exporter. They prefer a more continuous working relationship. they may wish to conduct business in Portuguese. Business visa holders are prohibited from engaging in gainful employment. a U. The slower pace of business negotiations does not mean that Brazilians are less knowledgeable in terms of industrial technology or modern business practices.S. Commercial or Consular officers are unable to secure relief for anyone arriving without a valid visa. Compared to the United States.

93 . Mission in Brazil is working with the Government of Brazil to find ways of simplifying and speeding up the process.before a work visa can be issued. Some of these include: San Sebastian Day (Rio de Janeiro only) Anniversary of the Founding of the City of Sao Paulo (Sao Paulo only) "Nossa Senhora dos Navegantes" (Porto Alegre) Evangelic’s Day (Brasília only) January 20 January 25 February 2 November 30 Avoid arriving during Carnival unless reservations have been confirmed in advance. For complete information on travel to Brazil. at present delays of several months are frequently experienced in the approval of such work permits.W. including safety and security. Holidays The following holidays are designated by the Brazilian Government: New Year's Day Carnival* 4 nights/3 days preceding Ash Wed. phone numbers.brasilemb. and jurisdictions of these Consulates may be found at the Brazilian Embassy website above. various state holidays and other religious and federal holidays are proclaimed throughout the year. 20008.C. Los Angeles. travelers may contact the Brazilian Embassy at 3009 Whitehaven St. traffic and road conditions. Chicago.org. telephone (202) 238-2818. and medical and health information.S. Washington.org.travel. N. Miami.. web and e-mail addresses. Travelers may also contact the Brazilian consulates in Boston. Good Friday Easter Sunday Tiradentes Day Labor Day Corpus Christi Independence Day "Nossa Senhora Aparecida" (The Appearance of Our Lady) All Souls Day Proclamation of the Republic Immaculate Conception Christmas Day January 1 February 22-25 April 09 April 11 April 21 May 1 June 10 September 7 October 12 November 2 November 15 December 8 December 25 In addition. or San Francisco. D. business travelers may wish to consult the Department of State consular information sheet. Houston. Addresses. located on Consular Affairs web site at www. For complete visa and customs requirements for Brazil. Internet: http://www. New York.state.gov. email consular@brasilemb. While the U.. crime.

Sao Paulo. Private charter rentals are available at major airports in Brazil. in Brasilia call: 325-3030. In Rio call: 270-1442. It is not always possible to rely on taxis when making calls. Brazil observes daylight savings from December to February. Varig and Vasp.S. travelers. Brasilia. Rio de Janeiro. For weekend travel. Driving is not recommended. and Belo Horizonte is a major industrial/mining center. Eletrobras. Fares are inexpensive and sometimes a table used to adjust fares is posted on the inside of the taxi's rear window. When daylight savings is in effect in the United States. are plentiful in urban areas. They are extremely difficult to find at certain hours of the day and in certain sections of the city.3 percent Religion: Predominantly Roman Catholic. Brazilian regional airlines provide service to their respective parts of the country. i. When daylight savings is in effect in Brazil. Petrobras. getting about in Sao Paulo and other large cities can still be a problem.Brazil has four principal airlines: TAM. especially at airports. 94 . Time -. Business people.e November to March. several state companies. 10 – ECONOMIC AND TRADE STATISTICS Appendix A Country Data Population: 175 million inhabitants Population Growth Rate: 1. Brasilia is the seat of government and location of foreign embassies. i.e April to October. It is not necessary to tip. Brazilian time is three hours ahead. return reservations must be confirmed for Rio on Friday evening and for return to Sao Paulo or Brasilia on Monday morning. for oil/gas and service industries as well as hosting major national entities such as the Brazilian Development Bank. Sao Paulo is Brazil's center for commerce and manufacturing. identified by roof lights. They can be costly compared with other forms of transportation. Radio taxis (cabs) are more expensive but convenient and reliable. in Sao Paulo call: 0800-106688. flights between Rio de Janeiro and Sao Paulo leave every 15 minutes from conveniently located downtown airports. in Sao Paulo and Rio. However. Rio de Janeiro is important for its service industries.Meter taxis.C.Business Infrastructure Air Travel -. and Belo Horizonte. and residents spend a good deal of time among the four most important cities -. Brazilian time is one hour ahead. Rental cars are common. and in Belo Horizonte call: 08003350550. cities such as Washington D. These companies provide efficient service throughout the country. etc. with growing Protestant influence. Local Transportation -. taxi fares are comparable to large U. Gol. Note that for the newcomer driving can be confusing in large cities such as Sao Paulo and Rio. During rush hours. However.Local time in Brazil is two hours ahead of Eastern Standard Time. An excellent air shuttle services (or "ponte aérea") facilitates travel among those cities.

25 25.6 2003/1 480 1.FDI stock by country.0 45.0 3.0 45. Language: Portuguese Work week: 40– 44 hours Appendix B Domestic Economy 2002 451 1. /3 Open unemployment as percent of economically active workforce /4 Gross reserves. Fiscal Year Appendix C Trade In US$ Millions FOB Total Exports Total Imports US Exports US Imports 2002 60.0 2.10 23.700 4.0 8.0 52.5 10.8 2.0 17. U.5 8. with executive branch agencies.0 2.1 2004/1 490 3.0 N/A Nominal GDP (US$ bil) GDP Real Growth Rate (%) GDP Per Capita (Current US$) Nominal Govt. deficit as a % of GDP Annual Inflation (%)/2 Unemployment Rate (%)/3 Foreign Exhange Reserves (US$ bil)/4 Avg.6 12.0 55.0 2004(E) 68.3 13.5 2.0 6.5 Source: Ministry of Development.0 16. Federative Republic.5 13.S.0 11.2 15. Presidential system. Chamber of Deputies).2 37.0 3. including tranches from IMF agreement /5 No military assistance.4 47. and judicial branch. May 2002 estimate (USD billion) 95 .730 4.580 4.4 2003(P) 64. two-house congress (Senate. Exhange Rate (R/US$1) Debt Service/Exports (%) US Econ/Mil Assist (US$ mil)/5 Notes: /1 2003 = estimate.5 21.Government System: Democratic. USAID figures only.0 11.5 7.93 24. 2004 = projection /2 Inflation as measured by the Broad Consumer Price Index (IPCA) produced by the Brazilian Institute of Geography and Statistics (IBGE). Industry and Commerce (MDIC) Appendix D Investment Statistics Brazil .

8 1.5 3.0 4.8 15.2 4.9 2.4 32.6 9.COUNTRY Total United States Fiscal Havens* Netherlands Spain France Portugal Germany Japan Canada Italy Other Total as PCT of GDP STOCK (E) 147.7% Source: Central Bank of Brazil 96 . Netherlands Antilles Note: 2002 stock estimate equals to 2000 stock plus sum of inflows 2001-May 2003 Source: Central Bank of Brazil.0 3. 2001-May 2003 (USD billion) SECTOR Total Agriculture/Livestock/Minerals Industry Vehicles Chemicals Food Machinery/Equipment Other Services Telecom Commerce Banking Energy Business Services Other Total as PCT of GDP FLOW (E) 43. Bahamas.2 22. Bahrein Islands.4 25.6% * Cayman Islands.4 23.5 0.1 7. Bermuda.3 1.0 3. BRAZIL – FDI INFLOW BY SECTOR.0 3.3 7. Virgin Islands.5 9. Aruba.4 16.4 16.6 3.9 11.3 2.0 32.8 3.7 3.

Bloco C 70054-900 Brasilia. DF Phone: 55/61/311-6201 Fax: 55/61/331-6731 http://www. Pecuária e Abastecimento Esplanada dos Ministerios.mc.gov. DF Phone: 55/61/218-2800 Fax: 55/61/225-8091 http://www.br Ministry of Social Assistance MAS . U.gov.S. Bloco B 70068-900 Brasilia.assistenciasocial.br Ministry of Communications MC .Ministério da Ciência e Tecnologia Esplanada dos Ministérios.br Ministry of Culture MINC – Ministerio da Cultura Esplanada dos Ministerios.Bloco R 70044-900 Brasilia.cidades.mct. DF Phone: 55/61/411-4694 Fax: 55/61/223-5243 http://www.gov.br Ministry of Science and Technology MCT .br Ministry of the Cities Ministério das Cidades Esplanada dos Ministérios. Bloco E 70067-900 Brasilia.Ministério das Comunicações Esplanada dos Ministerios . Bloco D 70043-000 Brasilia.gov. DF Phone: 55/61/317-7508 Fax: 55/61/225-7496 http://www.gov.agricultura.Ministério da Assistência Social Esplanada dos Ministérios. and Country Contacts Brazilian Government Contacts Ministry of Agriculture MAPA – Ministério da Agricultura.11. DF Phone: 55/61/316-2172 Fax: 55/61/225-9162 97 . Bloco A 70050-901 Brasilia. DF Phone: 55/61/313-1822 Fax: 55/61/224-4753 http://www.

Bloco J 70056-900 Brasilia. DF Phone: 55/61/312-8520 Fax: 55/61/225-4151 http://www.esporte.mec.br Ministry of Defense MD – Ministério da Defesa Esplanada dos Ministerios.mdic. Industry and Foreign Trade MDIC .gov. Bloco Q 70049-900 Brasilia.br Ministry of Finance 98 .gov.br Secretariat of Foreign Trade SECEX .br Ministry of Education MEC – Ministério da Educação Esplanada dos Ministerios.gov. Bloco L Cep: 70047-900 Brasilia – DF Phone: 55/61/410-9670 Fax: 55/61/410-9233 http://www.gov.http://www. Bloco A 70054-900 Brasilia.cultura.br Ministry of Sports ME .gov. DF Phone: 55/61/314-8002 Fax: 55/61/322-0492 http://www.br Ministry of Agrarian Development MDA .Ministério do Esporte Esplanada dos Ministerios.mda.Secretaria de Comercio Exterior Esplanada dos Ministérios.gov. Bloco J 70053-900 Brasília. Indústria e Comércio Exterior Esplanada dos Ministérios.gov.Ministério do Desenvolvimento Agrário Esplanada dos Ministérios.defesa.Ministério do Desenvolvimento. DF Phone: 55/61/329-7002 Fax: 55/61/329-7230 http://www.mdic. Bloco A Cep: 70054-900 Brasilia – DF Phone: 55/61/217-1852 Fax: 55/61/217-1818 http://www.br Ministry of Development. DF Phone: 55/61/329-7077/7080 Fax: 55/61/325-2075 http://www.

receita.gov. Bloco U Cep: 70065-900 Brasilia – DF Phone: 55/61/319-5042 Fax: 55/61/319-5074 http://www.gov.Secretaria da Receita Federal Esplanada dos Ministérios. Bloco T Cep: 70064-900 Brasilia – DF Phone: 55/61/429-3101 Fax: 55/61/322-6817 http://www.integracao.br Ministry Planning and Budget MP .fazenda. Bloco B Cep: 70068-900 Brasilia – DF Phone: 55/61/322-7819 Fax: 55/61/322-8469 http://www. Orçamento e Gestao Esplanada dos Ministerios.Ministerio do Planejamento.gov.Ministerio do Meio Ambiente Esplanada dos Ministerios.Ministerio das Minas e Energia Esplanada dos Ministerios.gov.gov.br Ministry of Environment MMA .mma. Bloco E Cep: 70062-906 Brasilia – DF Phone: 55/61/414-5815 Fax: 55/61/321-9125 http://www.br Secretariat of Internal Revenue Service SRF .Ministerio da Fazenda Esplanada dos Ministérios.fazenda. Bloco P Cep: 70048-900 Brasilia – DF Phone: 55/61/412-2515 Fax: 55/61/412-1721 http://www.mme.Ministerio da Justica Esplanada dos Ministerios.mj.br Ministry of Mines and Energy MME . Bloco P Cep: 70048-900 Brasilia – DF Phone: 55/61/223-4302 Fax: 55/61/321-0488 http://www.MF . Bloco K Cep: 70040-906 Brasilia – DF Phone: 55/61/429-4102 99 .Ministerio da Integracao Nacional Esplanada dos Ministerios.gov.br Ministry of Justice MJ .br Ministry of National Integration MI .

br Ministry of Health MS .Ministerio da Saude Esplanada dos Ministerios. Bloco R 70044-900 Brasilia.br Ministry of Foreign Relations MRE .mpas.gov.Ministério da Previdência Social Esplanada dos Ministérios.Ministério do Trabalho e Emprego Esplanada dos Ministérios.gov.br Ministry of Work and Employment MTE .gov.Ministério dos Transportes Esplanada dos Ministérios. Lt. DF Phone: 55/61/225-0041 Fax: 55/61/226-9004 http://www. Bloco F 70059-900 Brasilia.planejamento.mre.turismo.br Ministry of Social Security (welfare) MPS .Ministerio das Relaçoes Exteriores Esplanada dos Ministerios Palacio do Itamaraty Cep: 70170-900 Brasilia – DF Phone: 55/61/411-6100 Fax: 55/61/411-6993 http://www. Entrada A 70200-000 Brasilia.gov. 1°andar.saude.br Ministry of Transportation MT . Bloco F 70059-900 Brasilia. DF Phone: 55/61/311-7001 Fax: 55/61/311-7876 http://www. Bloco G Cep: 70058-900 Brasilia – DF Phone: 55/61/315-2392 Fax: 55/61/224-8747 http://www. DF Phone: 55/61/310-9491 Fax: 55/61/310-9499 http://www.br Ministry of Turism Ministério do Turismo SCES Trecho 2. DF Phone: 55/61/317-5189 Fax: 55/61/317-5407 http://www.mte.gov.gov.transportes.Fax: 55/61/225-7287 http://www.br 100 .gov. 24.

com.Edifício Sede 70074-900 Brasilia.Banco Nacional de Desenvolvimento Av.Centro 101 .gov. 100 – Centro 20031-917 Rio de Janeiro.br Brazilian Long Distance Telephone Company (EMBRATEL) Empresa Brasileira de Telecomunicacoes S.Banco do Brasil S/A SBS. 1012 .bcb.3 floor 70712-907 Brasilia.br Brazilian Industrial Property Institute INPI .br National Bank of Economic Social Development BNDES . Qd.com.embratur.3.embratel.Instituto Nacional da Propriedade Industrial Praça Mauá 7 .Bloco G .gov.Centro 20179-900 Rio de Janeiro.br Bank of Brazil BB . Av. DF Phone: 55/61/310-2000 Fax: 55/61/310-5476 http://www. Carlos Francisco Theodoro Machado de Lessa.gov. President http://www.bndes. DF Phone: 55/61/411-4710 Fax: 55/61/321-1077 Brazilian Central Bank BCB . Edifício Sede I.Banco Central do Brasil SBS. República do Chile.A. Bloco A 70073-900 Brasilia. RJ Phone: 55/21/2277-7001 Fax: 55/21/2533-1538 Contact: Mr. RJ Phone: 55/21/2519-8182 Fax: 55/21/2519-8081 http://www. Bloco B . Bloco A 70054-900 Brasilia. Quadra 1. DF Phone: 55/61/429-7777 Fax: 55/61/429-7710 http://www.br Brazilian Tourism Institute EMBRATUR – Instituto Brasileiro de Turismo SCN – Quadra 2 .bancobrasil. DF Phone: 55/61/321-3060 Fax: 55/61/310-2502 http://www.Extraordinary Ministry of Hunger Safety Ministério Extraordinário de Segurança Alimentar e Combate a Fome Esplanada dos Ministérios. Presidente Vargas.

SP Phone: 55/12/3941-3400 Fax: 55/12/3941-4033 www. 2 andar 70055-900 Brasília. DF Phone: 55/61/223-6058 Fax: 55/61/429-1006 Army Command SMU. QG/EX.br Aeronautics Command Esplanada dos Ministérios. 50 12228-901 São José dos Campos.gov. Bloco M.gov.651. Bloco A. RJ Phone: 55/21/2223-4182 Fax: 55/21/2263-2539 http://www.inpi. Av.petrobras.gov.Cstelo Cep: 20040-030 Rio de Janeiro – RJ Phone: 55/21/3814-6700 Fax: 55/21/220-5727 http://www. Bloco N.br Brazilian Petroleum Company PETROBRAS – Petróleo Brasileiro S.A. DF Phone: 55/61/415-5200 Fax: 55/61/415-4379 Aerospace Technical Center – CTA Praça Marechal Eduardo Gomes. República do Chile.cta.br 102 .dac. 65 – Centro 20031-912 Rio de Janeiro – RJ Phone: 55/21/2534-1000 Fax: 55/21/2534-3838 http://www. 4 andar 70630-901 Brasília. 8 andar 70045-900 Brasília.20081-180 Rio de Janeiro.br assecom@dac.com. DF Phone: 55/61/329-9601 Fax: 55/61/223-0930 Navy Command Esplanada dos Ministérios.br Country Trade Associations/Chambers of Commerce Aerospace and Defense Departament of Civil Aviation DAC – Departamento de Aeronautica Civil Rua Santa Luzia.

abrava@abrava.br http://www. Air Conditioning and Ventilation Equipment Av.AIAB . SP Phone: 55/11/3159-0846 Fone/Fax: 55/11/3214-4860 www.com.com.Brazilian Association of Manufacturers of Refrigeration. Heating. 2644 11º andar 01310-300 Cerqueira Cesar São Paulo. 795 6º andar Bom Retiro 01120-001 Sao Paulo. Arnaldo O. Correia.agricultura. RJ Phone: 55/21/2533-4568 Fax: 55/21/2533-5310 Sinaval@osite. Heating.com.gov. SP Phone: 55/12/3931-2721 Fax: 55/12/3933-0657 Aiab@iconet. 1492 01206-001 Sao Paulo.br Agricultural Machinery Ministry of Agriculture Secretariat of Agriculture & Livestock Defense Esplanada dos Ministerios. SP Phone: 55/11/221-5777 Fax: 55/11/222-4418 Contact: Mr.br cenagri@agricultura.Brazilian Apparel Association Rua José Paulino.br Apparel Manufacturers ABRAVEST . 799. sala 703 20030-040 Rio de Janeiro. Ventilation ABRAVA .com. Paulista.br ABIMDE – Associação Brasileira das Indústrias de Material de Defesa Av.br Air Conditioning.br abimde@abimde.abimde.Associação das Indústrias Aerospaciais do Brasil Rua José Alves dos Santos. Refrigeration.abrava.com.gov.br SINAVAL – Sindicato Naval das Indústrias da Construção Civil Rua Santa Luzia. Edifício Sede Cep: 70043-900 Brasilia – DF Phone: 55/61/218-2828 Fax: 55/61/225-2497 http://www. Rio Branco. 281-203 – Jardim Satélite 12230-081 São José dos Campos. General Manager. Bloco D. Foreign Trade Dept.com. SP Phone: 55/11/3338-1477/ 3338-1471 103 .

Executive Director abicem@abicem. State of Rio de Janeiro Rua do Senado.asbea. Brig.abravest.br http://www.br SECOVI – State of Sao Paulo Real Estate Developers Association Rua Dr. Faria Lima.com.br/ ibc@uol.br ABICEM .Association of Building Contractors of the State of Sao Paulo Rua Dona Veridiana.br secovi@secovi-sp. SP Phone: 55/11/3334-5600 Fax: 55/11/3224-8266 Contact: Mr.479 – 6 Floor – Cj 62 04533-011 – Sao Paulo .9 Floor 01452-001 Sao Paulo. 55 – Bairro Santa Cecilia 01238-010 Sao Paulo.br http://www.com. Marcio Guimaraes.org.abicem. 1931 . President sindusconsp@sindusconsp.secovi-sp.com.br/abce abce@abceconsultoria. Artur Quaresma Filho.com.1043 04026-002-Sao Paulo – SP Phone: 55/11/5591-1300 Fax:55/11/5591-1301 http://www.br Architecture/ Construction/ Engineering ABCE –Brazilian Association of Consulting Engineers Av.Fax: 55/11/3331-2802 Contact: Mr.SP Phone:55/11/3168-4982 Fax:55/11/3078-2208 http://www.org.br SINDUSCON .sindusconsp.Ditto.com.br SINDUSCON .com.br asbea@asbea. Rio Branco. Bacelar. 213 . SP Phone: 55/11/3816-6597 Fax: 55/11/3813-8717 Contact: Mr.124 –13rd floor 20148-900 – Rio de Janeiro – RJ Phone : 55/21/2215-1401 Fax:55/21/2224-2693 http://www.com.ibpinet.centro 104 .com.térreo .Brazilian Association of Metallic Construction Contractors Av.br ASBEA – Brazilian Association of Architectural Firms Rua Tabapuã. President abravest@uol.org.org. Roberto Chadad.com.br http://www.

225 Internet: http://www. Indianopolis 2357 04063-004 Sao Paulo. 2o. PR Phone: 55/41/352-2883 Fax: 55/41/253-5567 Contact: Mr.com.andap. Brazil Phone: 55/11/5051-4044 Fax: 55/11/5051-4044 ext.br http://www. President nucleo@sindusnet. SP. Eliel Lopes Ferreira Jr.com. Brazil Tel: 55/11/3884-4599 ext. Foreign Trade Advisor SINDIREPA – Brazilian Association of Mechanical Shops (Associação Brasileira dos Reparadores Independentes de Veículos) Av. SP.com.br Contact: Ecilas Nazario.br e-mail: info@andap.org.br Contact: Luiz Carlos Auler Pereira.br Tel/Fax: 55/11/3266-7700 105 .20231-020 Rio de Janeiro. Paulista 1009 – 1 andar – conj. State of Paraná Rua da Glória. RJ Phone: 55/21/2221-5225 Fax: 55/21/3852-8995/2221-8066(presidência) Contact: Mr. Brazil Tel: 55/11/5066-7450 e-mail: abrive@nutecnet.com. 175. SP. 222 Fax: 55/11/3884-0584 Internet: http://www. floor – Bairro Centro Civico 80030-060 Curitiba.com. SP.sinduscon-pr. Foreign Trade Division SINDIPECAS – National Association of Autoparts Manufacturers (Sindicato Nacional da Industria de Componentes para Veiculos Automotores) Rua Abilio Soares 1487 04005-005 Sao Paulo.Ditto. 101 01311-919 Sao Paulo. Brazil Home Page: www..com. President sinduscon@sinduscon-pr.br Contact: Antonio Gaspar de Oliveira. Indianopolis 496 04062-900 Sao Paulo.br Automotive and Autoparts ANFAVEA – National Association of Vehicle Manufacturers (Associação Nacional dos Fabricantes de Veiculos Automotores) Av.sindipecas.sindusnet.br http://www. Consultant ANDAP – National Association of Autoparts Distributors (Associação Nacional de Distribuidores de Autopeças) Av.anfavea. Roberto Kaulffmann.org.org.br SINDUSCON .

br http://www.br ABCP – Brazilian Portland Cement Association Av.Brazilian Association of Cable TV R.br Cable TV ABTA .org. 404 Conjunto 401 Água Branca 05001-000 – Sao Paulo . 111 / 21º andar 01050-904 Sao Paulo. SP Phone: 55/11/3151-5822 Fax: 55/11/3120-3611 Contact: Mr.com.br SOBRATEMA – Brazilian Association for Equipment and Maintenance Technology Rua Francisco Matarazzo. Major Quedinho. Leila Loria .com.br sobratema@sobratema. President abta@abta. Claudio Elias Conz. SP Phone: 55/11/3078-9307 Fax: 55/11/3078-9307 Contact: Sra.org.br mercado@abcp.Contact: Luiz Carlos Vieira.SP Phone: 55/11/3662-4159 Fax:55/11/3662-4159 http://www.br 106 .Brazilian Federation of Banks Rua Libero Badaro 425 / 17º floor / Centro 01009-905 Sao Paulo.br Building Products ANAMACO . Torres de Oliveira.org.sobratema.org.org. 181 04531-090 Sao Paulo. Paes de Araujo 29.National Association of Building Materials Retailers R.br http://www. President anamaco@anamaco. Superintendent febraban@febraban. 18 floor.febraban. 76 – Jaguare 05347-902 – Sao Paulo – SP Phone: 55/11/ 3760-5314 Fax: 55/11/3760-5388 http://www.abcp.abta. SP Phone: 55/11/3244-9800 Fax: 55/11/3104-0641 Contact: Mr. conj.com.com.br http://www.anamaco. Executive Director Brazilian Federation of Banks FEBRABAN .org. Wilson Antonio Salmeron Gutierrez.

State of Rio de Janeiro Rua do Senado. Faria Lima.Cosmetic and Toilettes IBP . RJ Phone.br SIPATESP – Brazilian Association of Cosmetics Manufacturers Av. Marcos Rothenberg. 213 .Brazilian Association of Metallic Construction Contractors Av.org. Rua Tabapuã.Association of Building Contractors of the State of Sao Paulo (residential and commercial buildings. Director geral@abihpecsipatesp. floor / Grupo 2602 . President 107 . Alvaro Teixeira.Ditto.centro 20231-020 Rio de Janeiro. Sergio Porto. Executive Director SINDUSCON . 26o.Centro 20031-000 Rio de Janeiro. Av Almirante Barroso 52.com. Manoel Teixeira Simões. only) Rua Dona Veridiana. 1931 . RJ Phone: 55/21/221-5225 Fax: 55/21/221-5195 Contact: Mr. 1313 / 10th floor – conj. President SINDUSCON . 649 conj.org.com. SP Phone: 55/11/3334-5600 Fax: 55/11/224-8266 Contact: Mr. Secretary.br Construction ABICEM . Brig.: 55/21/2220-1596 Contact: Mr.ibp. 55 – Bairro Santa Cecilia 01238-010 Sao Paulo. SP Phone: 55/11/816-6597 Fax: 55/11/813-8717 Contact: Mr.br ADIPEC – Brazilian Association of Perfume and Cosmetics Importers. Marcio Guimaraes. President http://www.9 Floor 01452-001 Sao Paulo. 74 04533-012 Sao Paulo. Paulista.: 55/21/2532-1610 Fax. SP Phone: 55/11/3168-4518 Fax: 55/11/3168-4518 Contact: Mr.1 floor .adipec. 1080 01311-923 Sao Paulo. Perfume and Cosmetic Manufacturers ibp@ibp. Natalino Rabinovicht.br http://www. SP Phone: 55/11/251-1999 Fax: 55/11/287-9207 Contact: Mr.Brazilian Petroleum Institute.

Sede e Anexos 70047-902 – Brasilia – DF Phone: 55/61/410-8484 Fax: 55/61/410-9233 108 .abimo.org.org.saude.: 55/11/3285-0155 Fax. 806 01311-923 Sao Paulo. 5º andar (gabinete do Ministro) 70058-900.br ABIMED – Brazilian Association of Equipment. Brasília – DF Phone: 55/61/ 315-2425 Fax: 55/61/ 224-8747 http://www. 2o. 8º Floor. Paulo Akio Takaoka.br SINAEMO . conj.gov. Products and medical Supplies Importers Alameda dos Tupiniquins. President Dental. 175.abimed. 8º Floor. Hospital and Laboratory Industries Av. PR Phone: 55/41/352-2883 Fax: 55/41/253-5567 Contact: Mr.br http://www.br abimed@uol. conj. Paulista 1313. Dental. Paulo Akio Takaoka.: 55/11/3285-0155 Fax.org.Brazilian Association of Dental.br MINISTÉRIO DA SAÚDE – Ministry of Health Esplanada dos Ministérios – bloco G.Ditto.: 55/11/3285-0155 Contact: Dr. Presidente abimo@abimo. Gustavo Daniel Berman.org.br ministro@saude. SP Phone. floor – Bairro Centro Civico 80030-060 Curitiba.: 55/11/3285-0155 Contact: Dr.abimo.br Educational Professional Training MEC – Ministerio da Educação Esplanada dos Ministérios – Bl L – Ed. Medical and Hospital Equipment Av. 203 Moema 04077-000. São Paulo Phone: 55/11/5052-2664 Fax: 55/11/5052-7074 Contact: José Manuel Laranjeira. SP Phone.br abimo@abimo.SINDUSCON .gov.com. 806 01311-923 Sao Paulo. State of Paraná Rua da Glória. Medical and Hospital Equipment ABIMO .org. President http://www. Paulista 1313.Syndicate of Medical. Presidente http://www.

br APINE .br http://www.: 55/21/2528-5858 109 . Technical Director rsimonsen@senai101. room 626/8 70710-500 Brasilia. Fabián Yaksic Abinee@abinee. 298 – Brás 03008-000 – São Paulo – SP Phone: 55/11/3322-5000 Fax: 55/11/3322-5029 Contact: Alcindo Daniel Favero.br SENAI – Roberto Simonsen School Rua Monsenhor Andrade. Conj.Contact: Osvaldo Russo de Azevedo – Chefe de Gabinete Web site: http://www.Brazilian Association of Electrical Energy Concessionaires Alameda Campinas. RJ Phone. SP Phone: 55/11/251-1577 Fax: 55/11/285-0607 Contact: Mr.: 55/61/327-2069 Contact: Mr.abce.org. 433 10º andar 01404-901 Jardim Paulista .br Electronic Equipments ABINEE – 0Brazilian Association of the Electronic Industry Av.org.abinee. 219 22283-900 Rio de Janeiro.com.br Energy ABCE .br E-mail: osvaldorusso@mec.Brazilian Association of Independent Electrical Energy Producers SCN Quadra 2 Edifício Centro EmpresarialEncol Torre A.gov.com.senai101. 1313m 7andar.org. President http://www. Paulista.: 55/61/315-9182 Fax.org.: 55/11/288-1166 Fax.: 55/21/2528-3112 Fax.apine.com. 703 01311-923 São Paulo.mec.Sao Paulo.: 55/11/288-8524 Contact: Mr.br http://www. José Geraldo dos Santos. Eric Westberg.br WORLD ENERGY COUNCIL Rua Real Grandeza. President abce@abce.gov. DF Phone.com.br apine@apine. SP Phone.br http://www.

Contact: Mr. José Pedro Rodrigues Oliveira, President http://www.furnas.com.br presiden@furnas.com.br ANEEL – Brazilian Regulatory Agency of Electric Energy SGAN – 603, Módulo J / I (diretoria) 70830-030 Brasília – DF Phone: 55/61/ 223-4592 Fax: 55/61/ 426-5615 ou 426-5711 Contact: Rulemar Pessoa Silva, Superintendet/ Regulations http://www.aneel.gov.br tanure@aneel.gov.br Entertainment ADIBRA-Associação de Empresas de Parques de Diversão Alameda Santos, 1343, conj. 1502 01419-001, São Paulo, SP tel/fax: 11 3253-9354 Mr. Francisco Lopes, President Adibra@uol.com.br Associação Brasileira de Parques Rua Cabo Aylson Simões, 490 Cep 29100-320 Vila Velha, Espírito Santo tel/fax: 27 3200-4600 e-mail: azevedo.m@terra.com.br Mr. Marco Azevedo, Director Environment CETESB - Sao Paulo State Environmental Agency Avenida Professor frederico Hermann Jr., 345 05459-900 Sao Paulo, SP Phone: 55/11/3030-6000 Fax: 55/11/3030-6402 Contact: Ms. Fatima A. Carrara, Manager Int'l Affairs http://www.cetesb.sp.gov.br FEEMA - Rio de Janeiro State Environmental Agency Av Nossa Senhora de Copacabana, 493 10º andar Caixa Postal 23.011 22020-000 Rio de Janeiro, RJ Phone: 55/21/2255-9292 ramal 3299 Fax/tel: 55/21/2580-9229/2589-3773 Contact: Mr. Americo Fernando M. Lopes, Chief of the Industrial Control Division. Mr. José Alencar, Chief of Engineering Services, Liquid Effluent Dept. feema@proderj.rjgov.br http://www.feema.rj.gov.br

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SABESP - Sao Paulo State Sewage and Water Treatment Company Rua Costa Carvalho, 300 Pinheiros 05429-900 Sao Paulo, SP Phone: 55/11/3388-8000 Fax: 55/11/3813-3587 Contact: Mr. Sergio Pinto Parreira, Director of Environmental Department spparreira@sabesp.com.br http://www.sabesp.com.br FIESP - Federation of the Industries of the State of Sao Paulo Avenida Paulista, 1313 13º floor Room 1309 01311-923 Sao Paulo, SP Phone: 55/11/3549-4499 Fax: 55/11/284-6200 Contact: Dr. Angelo Albiero Filho, Director of the Environment Department kbugholi@fiesp.org.br http://www.fiesp.org.br SINDESAM - National Department of Sanitation Equipment Manufacturers Avenida Jabaquara, 2925 04045-902 Sao Paulo, SP Phone: 55/11/5582-6365 Fax: 55/11/5582-6379 Contact: Mr. Ubiraci Moreno Pires Correa, President – até maio de 2004 http://www.abimaq.org.br CONAMA - National Council of Environment Esplanada dos Ministérios - Bl B - 6º andar sala 637 70068-900 Brasilia, DF Phone: 55/61/317-1392 ou 317-1433 Fax: 55/61/226-4961 or 55/61/226-2837 Contact: Sra. Muriel Saragoussi – Director http://www.mma.gov.br conama@mma.gov.br FEPAM - Rio Grande do Sul State Environmental Agency Rua Carlos Chagas 55 90030-020 Porto Alegre, RS Phone: 55/51/3225-1588 Fax: 55/51/3212-4221 Contact: Dr. Lucia Coelho, Gerente de Programas http://www.fepam.rs.gov.br fepam@fepam.rs.gov.br Food ABIA - Brazilian Association of Food Industries Av. Brig. Faria Lima, 1478 - 11 floor 01451-913 Sao Paulo, SP Phone: 55/11/3030-1353 Fax: 55/11/3814-6688

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Contact: Mr. Edmundo Klotz, President http://www.abia.org.br abia@abia.org.br ABRABE - Brazilian Beverage Association Av. 9 de Julho, 5017 - 1 floor 01407-903 Sao Paulo, SP Phone: 55/11/3079-6144 Fax: 55/11/3167-6381 Contact: Mr. Fabrizio Fasano, President abrabe@abrabe.org.br Franchising ABF - Brazilian Franchising Association Av. Brigadeiro Faria Lima, 1739 – 3º andar São Paulo – SP CEP: 01452-001 Phone.: 55/11/ 3814-4200 Fax.: 55/11/ 3814-4200 – ext. 37 Contact: Mr. Gerson Keila, President http://www.abf.com.br abf@abf.com.br Furniture ABIMOVEL – Brazilian Furniture Industry Association Av. Brigadeiro Faria Lima, 1234 – 16o andar, sala 161 01452-904 São Paulo, SP Phone: 55/11/ 3813-7377 Fax: 55/11/3813-7377 Contact: Domingos Sávio Rigoni, President http://www.abimovel.org.br abimovel@abimovel.com PROMOVEL – Programa de Incremento à Exportações Rua Afonso Grosskopf, 352 São Bento do Sul – SC CEP: 89290-000 Phone: 55/47/ 635-1391 Fax: 55/47/ 635-1582 Contact: Pedro Paulo Pamplona, Executive Director promovel@creativenet.com.br http://www.abimovel.org.br Industrial Machinery ABIMAQ – Brazilian Association of Machinery and Equipment Av. Jabaquara, 2925 04045-902 São Paulo, SP Phone: 55/11/5582-6327 Fax: 55/11/5582-6239 Abimaq@abimaq.org.br

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br CAMARA E-NET.http://www.gov. Cassio Vecchiatti.br ABRANET(RJ) Brazilian Association of Internet Service Providers Associação Brasileira de Provedores Internet Av.abinee.org.Brasilia . SP Phone: 55/11/251-1577 Fax: 55/11/285-0607 Contact: Mr.Brazilian Chamber of Electronic Commerce Camara Brasileira de Comércio Eletrônico R. Murilo Marques.net 113 . President gerente@abranet. Presidente Vargas.camara-e. 221 / conj 42 CEP: 05428-000 São Paulo – SP Phone: 55/11/3026-9111 Fax: 55/11/3026-9110 Contact: Mr. President murilo@abranetrj. Benjamim Funari Neto.org.br Internet / E.org. President abinee@abinee. 1313.br ABINEE – Brazilian Association of Electrical and Electronics Industry Association Av.br ANATEL – Brazilian Telecommunications Agency SAUS Quadra 06 .org. 1313 / 10º andar CEP: 01311-923 São Paulo – SP Phone: 55/11/3285-3866 Fax: 55/11/3285-3866 Contact: Mr.gov. Ferreira Araujo.br http://www. Sergio Motta 70070-940 .br http://www. 7o andar. President anatel@anatel.br http://www.anatel.org.org.Commerce ABRANET(SP) Brazilian Association of Internet Service Providers Associação Brasileira de Provedores Internet Av. 3131/1505 .Brazil Phone : 55/61 312-2000 Fax : 55/61 312-2002 Contact: Mr.abimaq.RJ Phone: 55/21/524-8209 Fax: 55/21/524-8209 Contact: Mr. Paulista.abranet. conj. 703 01311-923 São Paulo. Paulista.Bloco H e E Ed.DF .abranet.br http://www.Teleporto CEP: 20210-030 Rio de janeiro . President http://www.org. Luis Guilherme de Oliveira. Gastão Mattos.

br Hotel / Restaurant ABIH – Brazilian Association for Hotels Industry. Carlos de Paiva Lopes. Rio Branco.sp. 2925 04045-902 Sao Paulo. 7o andar. 8º floor Brasília – DF CEP: 70044-900 Phone: 55/61/311-6201/311-6000 Fax: 55/61/226-3980 Contact: João Pimenta da Veiga Filho Hardware ABINEE – Brazilian Association of Electrical and Electronics Industry Association Av. 703 01311-923 São Paulo.net SECRETARIA DA CIENCIA.fontana@sctdesp. SP. Assessor Especial http://www.ciencia. conj. Jabaquara.org.info@camara-e.Associacao Brasileira da Industria de Maquinas e Equipamentos SINDIMAQ . Paulista. Nilo Peçanha.Sindicato Nacional da Industria de Maquinas Av.br MINISTRY of COMMUNICATIONS Esplanada dos Ministérios Bloco R.abinee.sp. Executive Manager Comments: ABIMAQ/SINDIMAQ is the Brazilian Association of Machine and Equipment Manufacturers webmaster@abimaq. 1313. Brazil Phone: 55/11/5582-6410 Fax: 55/11/5582-6239 Contact: Maria Cecilia Cortez.org.br ABIMAQ .br http://www.gov.br http://www. TECNOLOGIA E DESENVOLVIMENTO ECONÔMICO (Governo do Estado de São Paulo) Av.Rio de Janeiro Av. SP Phone: 55/11/251-1577 Fax: 55/11/285-0607 Contact: Mr. President abinee@abinee.org.gov.12 Room 1005 20020-100 – Rio de Janeiro – RJ Phone: 55/21/2533-7632 Fax: 55/21/2533-7632 Contact: Luis Carlos Nunes ( president) 114 .org. 1269 01205-001 São Paulo – SP Phone: 55/11/3331-0033 Fax: 55/11/221-4927 Contact: José Zeno Fontana.br j.abimaq.

org.br abredi@uol. 291 01242-010 Sao Paulo – SP Phone: 55/11/3663-6391 Fax: 55/11/3663-1872 Contact: Horst Tassilo Siebert.net abprabraselrj@bol. President ibs@ibs.com.br http://www.br Iron and Steel IBS .28 Floor 20040-007 Rio de Janeiro.264-2631 Contact: Sergio Bezerra. Paulista.com.org. 75. Barra 40140-280 Salvador – BA Phone: 55/71/267-4566 Fax: 55/71/ 264-3640 . President http://www.br ABPR – Associaçao Brasileira dos Proprietarios de Restaurantes Estrada do Vidigal. 1313 – Cj. 25 – 2o. 3rd. Rio Branco. 515 – Bl. RJ Phone: 55/21/2544-3255 Fax: 55/21/2262-2234 Contact: José Armando Figueiredo Campos.br ABREDI – Associação de Bares e Restaurantes Diferenciados Rua Armando Penteado.com.com.ibs. President http://www.Brazilian Steel Institute Av.com. 62 04011-904 Sao Paulo – SP Phone: 55/11/5573-9835 Fax: 55/11/5571-5542 Contact: Antonio Guimaraes. andar.br ABTS – Brazilian Association for Metal Surface Treatment Av.com. Director http://www. floor Leblon 22450-230 Rio de Janeiro – RJ Phone: 55/21/2516-6293 or 55/21/2512-6522 Fax: 55/21/2512-6522 Contact: Gustavo Werneck.br guimaraes@aberc.aberc. cj. 913 São Paulo – SP / CEP: 01311-923 115 .abpr.br ABERC – Associaçao Brasileira das Empresas de Refeiçoes Coletivas Rua Estela. B.com. President abraselnac@e-net.br Abrasel Nacional Rua Dom Marcos Teixeira. 181 .abredi.abihnacional@montreal.

2294 Contact:Carlos Alberto Mira. Waldemar Pires Ribeiro.br Web-site: www.org.2267 / 5084. 205 . 3147 .2287 Fax:++55-11-5084. Director of Institutional Issues http://www. President Abml@uol.br 116 . 1274 – 20º andar São Paulo – SP / CEP: 01310-926 Phone: 55/11/3266-7331 Fax: 55/11/3266-5659 Contact: Mr.org.Brazilian Associationo of Cargo Movement and Logistics Av.abts. 848 São Paulo/SP-04014-002 Phone: ++55-11-50823972 Contact: Pedro Francisco Moreira. Nossa Senhora das Graças. Luis Carlos Koch.org.abml. Machado Bittencourt. Conselheiro Rodrigues Alves.abifa.Brazilian Association of Wholesalers and Distributors Av.br ABAD.gov.SP Phone:++55-11.br Material Handling ABML.cj 96 04044-000 .com.inmetro. President abts@abts. President Ventura@abad.org. Paulista.9616 Fax: ++55-11-3885.Phone: 55/11/251-2744 Fax: 55/11/251-2558 Contact: Mr. President abifa@abifa.5084.org. José Aoad Raya.br http://www.Brazilian Association of the Foundry Industry Av. Chief of Docummentary Service Mr.com.br Laboratory Equipment INMETRO – Instituto Nacional de Metrologia Av.São Paulo . President e-mail:aslog@aslog. Roberto Della Manna.br Web-site: www.br ASLOG . 9 de Julho.President Mr.Logistics Brazilian Association R.br http://www. Vice .br ABIFA .com. 50 25250-020 Xerem – RJ Phone: 55/21/2679-9001 Contact: Tomaz Gonzalez. 11 andar Phone:++55-11-3885.aslog.com.6840 Contact: Paulo Herminio Pennacchi.

br http://www. RJ Phone: 55/21/2240-7062 Fax: 55/21/2283-1542 Contact: Mr.abad.com. President Abrapet@domain. José Eduardo Frascá Poyares Jardim. 156 room 1119 20043-900 Rio de Janeiro.br Mining ABM .abmbrasil.abmbrasil.br ibrambsb@uol.ibram. President 117 .Karl Heinz Pohlmann.br Metallurgy ABM .com. Edmundo Paes de Barros Mercer. Karl Heinz Pohlmann. 218 / Campo Belo 04605-030 Sao Paulo.Brazilian Association of Oil Drillers Avenida Rio Branco. 41 São Paulo – SP / CEP: 01426-001 Phone: 55/11/ 3082-9722 Fax: 55/11/ 3081-9201 Contact: Mr.br Oil & Gasfield Equipment ABRAPET .Web-site: www.com. Oscar Freire.com.br Packaging Equipment ABRE – Associação Brasileira de Embalagens R. Oscar Niemeier – Sala 1107 Brasília – DF CEP: 70316-900 Phone: 55/61/226-9367 Fax: 55/61/226-9580 Contact: Mr.org.br IBRAM – Brazilian Mining Institute SCS – Quadra 2 – Bloco D – Ed. SP Phone: 55/11/5536-4333 Fax: 55/11/240-4273 Contact: Mr.Brazilian Association of Metallurgy and Materials Rua Antonio Comparato. President http://www. Fábio Mestriner.br abm@abmbrasil.com.com.Brazilian Association of Metallurgy and Materials Rua Antonio Comparato. 379 – 4º andar – Cj.com. SP Phone: 55/11/5536-4333 Fax: 55/11/240-4273 Contact: Mr. President abm@abmbrasil. 218 / Campo Belo 04605-030 Sao Paulo. President http://www.

ABIQUIM Rua Santo Antonio 184 / 18 andar 01314-900 Sao Paulo.org. Jabaquara 2925 04045-902 Sao Paulo. President ABIQUIM is the Brazilian Association of Chemical Industries Instituto Nacional do Plástico Av.ABIMAQ Sindicato Nacional da Industria de Maquinas . 3814-8604 http://www. SP Phone: 5511-3031 3933 Web site: http://www. Brigadeiro Faria Lima 1779 – cj.br Plastic Production Associacao Brasileira da Industria de Maquinas e Equipamentos . Paulo da Colina.br Contact: Mr.org. SP.br abiquim@abiquim. Director 118 .plastics. 132.São Paulo.PET .br Pets Assofauna .br Contact: Mr.br ANFAL .br webmaster@abimaq.São Paulo. SP.Associacao dos Revendedores de Produtos.br abre@abre. SP Phone: 5511-5051 3511 Fax: 5511-5051 0579 E-mail: alvorada@alvoradapetshop.br inp@inp. Brazil Phone: 55/11/3232-1144 Fax: 55/11/3232-0919 http://www. Carlos Mariani Bittencourt. Contact: Mr. Prestadores de Servicos e Defesa Destrinado ao Uso Animal. Maristela Simões Miranda.Associacao Nacional dos Fabricantes de Alimentos para Animais Contact: Mr.SINDIMAQ Av. President of the Plastics Production Machinery Division ABIMAQ/SINDIMAQ is the Brazilian Association of Machine and Equipment Manufacturers http://www.org. President Rua dos Jamaris.abiquim.org.anfal.com.org. SP.abre. 7andar 05423-010 . João Prior.br Associação Brasileira da Indústria Química e Produtos Derivados . 884 04078 002 .org. Brazil Phone: 55/11/5582-6377 Fax: 55/11/5582-6379 Contact: Ms.62. Brazil Phone/Fax: 55/11/3814-8142. 6andar 01451-912 . Executive Director Rua Diogo Moreira.São Paulo.org. João Regis.http://www.com.org.abimaq.

2439 / 8º andar 01311-936 .br e-mail: siresp@siresp. Brazil Phone: 55/11/3060-9688 Fax:L 55/11/3060-9686 Homepage: http://www. Paulista 1313 .br http://www.abiplast. that provides training courses.org.abigraf.br Pulp & Paper BRACELPA – Associação Brasileira de Celulose e Papel Rua Afonso de Freitas.bracelpa.8 andar – cj. President Brazilian Association of the Plastics Industry Sindicato da Industria de Resinas Sinteticas no Estado de Sao Paulo Av.org. SP. 287-9539 Fax: 55/11/3284-9812 http://www. ABIPLAST . Francisco Braz Saliba. President presi@abigraf. 810 01311-923 Sao Paulo. SP.br e-mail: abiplast@abiplast.org.br Contact: Mr.org. 499 São Paulo – SP / CEP: 04006-900 Phone: 55/11/ 3885-1845 Fax: 55/11/3885-3689 Contact: Mr.Associação Brasileira da Indústria de Plástico Avenida Paulista.com. Merheg Cachum.São Paulo. resins and plastics machines manufacturers. SP CEP: 04153-001 119 .org.siresp.com.org. Director Mr.br Contact: Almir Abdala.br saliba@bracelpa. 533 São Paulo – SP / CEP: 04103-000 Phone: 55/11/5087-7777 Fax: 55/11/5087-7733 Contact: Mário Cezar Martins de Camargo.National Plastics Institute is an association of plastics.br Security and Safety ANIMASEG (National Association of Manufactures of Safety Products Rua Francisco Tapajós. President Sao Paulo Association of Manufacturers of Synthetic Resins Printing and Graphics Arts Equipment ABIGRAF – Associação Brasileira da Indústria Gráfica Rua Paraíso. 627 Sao Paulo. Brazil Phone: 55/11/287-2619. Assesssor Diretoria Executiva http://www.Instituto Nacional do Plastico. Jean Daniel Peter.

President contato@assespro.Brazilian Association of Data Processing Companies R. Retailers and Distributors of Safety Products Address is the same as the above (ANIMASEG) Software ABES . Teodoro Sampaio 417. President abes@abes.br ASSESPRO-RJ. Ernesto Haberkorn. 1713 . SP Phone: 55/11/3816-1185 Fax: 55/11/3097-8288 Contact: Mr.org. 3o andar 04719-002 São Paulo. Newton Palhano. Treze de Maio 33. SP Phone: 55/11/3064-0003 Fax: 55/11/3064-0003 Contact: Mr.br http://www.3 floor 01451-910 Sao Paulo.br EAN/Brasil .RJ Phone: 55/21/2240-2005 Fax: 55/21/2532-5730/ 2533-1940 Contact: Mr.org..Brazilian Association of Software Companies Av. Executive Director npalhano@riosoft.Brazilian Association of Commercial Automation.softex.assespro. 509 20031-000 Rio de Janeiro . 3 floor – Cj.animaseg.org. Brig.br http://www.com.Phone: 55/11/5058-5556 Fax: 55/11/5058-5556 Contact: Raul Casanova Jr. 33 05405-000 Sao Paulo.br http://www. 33/34 .org.org. 2441 – 9º andar São Paulo – SP / CEP: 01419-002 Phone: 55/11/ 3064-8772 Fax: 55/11/3064-0821 atendean@eanbrasil.Cj. José de Miranda Dias.br ASSESPRO-SP . Bloco A Gr.eanbrasil. Faria Lima.assespro-rj. Executive Director animaseg@animaseg.br Sporting Goods and Recreational Equipment ABIAE – Brazilian Association of Sporting Goods Industry Rua Verbo Divino.br ABRASEG .org.com.br http://www. 1661.abes. Santos. Al.org. SP 120 .Brazilian Association of Data Processing Companies Av.Brazilian Association of Agents.br http://www.

penalty. 1343 Cj. Santos. Pasteur.org lbonilha@tia.tiaonlinel.Phone: 55/11/5185-9400 Fax: 55/11/5185-9411 Contact: Mr.gov. Morumbi. M.Sao Paulo – SP Contact: Roberto Iouejiri.com. 8390 . President http://www. president tel: 55/11/5041-0766 fax: 55/11/5041-0256 Telecommunications ANATEL – Brazilian Telecommunications Agency SAS Quadra 06 .Bicycle Association Av.Brazil Phone: 55/21/ 2295-4432 Fax: 55/21/2542-4092 Contact: Cleofas de Medeiros Uchoa. Sergio Motta 70313-900 .ele. Bonilha http://www. 383 .br anatel@anatel.DF .Luis Guilherme Schymura de Oliveira.org.br http://www. President marap@cambuci.br Parts and Related Accessories ADIBRA – Associação das Empresas de Parques de Diversões do brasil Al.org TELEBRASIL . Lopes.br ABRACICLO .org.Bloco H Ed.Urca 22290-240 Rio de Janeiro – RJ .com.Brasilia .anatel.br ABERIMEST – Brazilian Association of Telecom Companies and Professionals 121 . Luiz C.Brazil Phone : 55/61 312-2578 Fax : 55/61 312-2367 Contact: Mr.br telebrasil@telebrasil. 62 04703-002 . President http://www.br TIA – Telecommunications Industry Association TEC-LA Contact: Mr. Roberto Estefano.gov.Cj.Brazilian Association of Telecommunications Av.com.telebrasil. President adibra@uol. 1502 São Paulo – SP / CEP: 01419-001 Phone: 55/11/ 253-9354 Fax: 55/11/ 284-0536 Contact: Francisco Carlos F.

Brazilian Society of Broadcast Engineering .org.Brazil Phone: 55/11 5082-2902 Phone/Fax: 55/11 5579-8078 Contact: Gilberto Justen. 16 04035-000 .br aberimest@aberimest. President http://www.São Paulo .br marcelo@abecortel. 2243.SP .br ABECORTEL – Brazilian Association of Telecommunications Engineering Services Companies Associação Brasileira Das Empresas De Serviços De Engenharia De Telecomunicações Rua Domingos de Moraes. Campinas.SP .br ABEPREST – Brazilian Association of Telecommunication Service Providers Associação Brasileira de Empresas Prestadoras de Serviços em Telecomunicações Al.org. 1º andar .Brazil Phone: 55/11/3043-8832 Fax: 55/11/3043-8834 Contact: Renato Pazotto.com.Brazil Phone: 55/11 3825-6533 Fax.Jd. Das Nações Unidas.cj.SP .org.br ABTA .abta.4º andar . Flavio Castelli Chueri.br abraforte@abraforte. 923 – 01151-000 . 181 04531-090 Sao Paulo . President http://www.Brazil Phone: 55/11 3253-4633 .São Paulo – SP . President http://www.: 55/11 3825-6460 Contact: Mr.br abta@abta.net ABRAFORTE – Brazilian Association of Telecommunication Multi-service Net Provider Associação Brasileira dos Fornecedores de Redes Multiserviços em Telecomunicação Av. 4A . 463 .Conj. 29 . Paulista 01404-000 São Paulo . Harold Walter Weiss.org.abecortel.cj.Associação Brasileira das TVs por Assinatura Rua Paes de Araujo. President http://www.aberimest. 12551.abeprest.org.Associação Brasileira das Empresas e Profissionais das Telecomunicações Rua Brigadeiro Galvão.org.br wagner-aere@attglobal.5874 Fax: 55/11 251-3899 Contact:Mr. President http://www.abraforte.com.Brazilian Association of Pay TV . 24º andar 04578-903 São Paulo – SP .Brazil Phone/Fax: 55//11 3078-9307 Contact : José Augusto Moreira.br SET .Sociedade Brasileira de Engenharia de TV e Telecomunicações Rua Jardim Botânico 700 sala 306 22461-000 Rio de Janeiro RJ 122 .org.

br abrafas@abrafas. 968 01223-000 – São Paulo – SP Phone: 55/11/3666-0101 Fax:55/11/3667-8209 Contact: Mr.br set@set.sinditextil.org. 968 01223-000 – São Paulo – SP Phone: 55/11/3666-0101 Fax:55/11/3667-8209 Contact: Mr.:55/11/3231-3077 Fax. President abit@abit. President http://www. Carlos Roberto de Castro. SP Phone: 55/11/3666-0101 Telex: 55/11/ 3667-8209 Contact: Mr.br ABRAFAS – Associação Brasileira de Produtores de Fibras Artificiais e Sinteticas (Brazilian Association of Artificial and Synthetic Fiber Producers) Rua Marquês de Itu.1 floor .1 floor 01047-000 Sao Paulo. Olimpio José Franco. President abav@abav.org.br ABIT – Associação Brasileira da Industria Textil (Brazilian Association for Industrial Textiles) Rua Marquês de Itu.br Textile and Yarn Industry SINDITEXTIL .Phone: 55/21 2512-8747 Fax: 55/21 2294-2791 Contact: Mr.abit.org.Brazilian Tour Operators Association Rua Marconi.: 55/11/3259-8327 Contact: Mr. President http://www. President http://www. Sao Luiz. Tasso Gadzanis.org.br Travel and Tourism ABAV .com.Centro 01046-001 Sao Paulo. 968 01223-000 Sao Paulo.br secretariageral@abit.abav.com.com. 165 .br BRAZTOA-COBRAT . SP Phone.org.Syndicate of Textile and Yarn manufacturers of the State of Sao Paulo Rua Marques de Itu. SP 123 . 34 .com.abrafas.br http://www.Brazilian Association of Travel Agents Av.set.org. Paulo Skaf.br http://www. Paulo Skas.

braztoa@braztoa.: 55/11/3259-9500 Fax.br http://www. 107/801 22230-000 Rio de Janeiro – RJ Phone: 55/21/2205-4819 or 55/11/5505-0190 Fax: 55/21/2558-9623 Contact: Gil Firmino . Technical Coordinator http://www. 2092 Fax: 55/21/2465-2795 Contact: Carlos Henrique L. Km 163 .1626 01304-902 Sao Paulo .br ANTP – Associação Nacional de Transporte Público SCS Quadra 4.Edif.com.Mineiro.org.abcr. President.Phone. José Reis de O.com. Presidente Dutra.com.org.braztoa. 82 Brooklin 04575-060 Sao Paulo .br antpsp@antp.br abcr@abcr.com.P.br Em SP Rua Augusta.br Em SPRua Geraldo Flausino Gomes. de Lucas 21240-000 Rio de Janeiro – RJ Phone: 55/21/2473-7245 or 55/21/2471-6565 ext.br Transportation ANTF – Associação Nacional dos Transportes Ferroviários Setor de Autarquias Sul – Quadra 5 – Bl N – Edificio OAB – Room 509 70070-050 – Brasila – DF Phone: 55/61/226-5434 Fax: 55/61/321-0135 http://www.br 124 .org.42 cj. Lima DNER . Ilya Hirsch.SP Phone: 55-11-5505-0190 Fax: 55-11-5505-1640 Contact: Mr.br antf@tba.: 55/11/3255-1226 Contact: Mr.antp.org. bl A.antf.SP Phone:55-11-283-2293 Fax: 55-11-3253-8095 ABCR – Associação Brasileira de Concessionárias de Rodovias Rua Senador Vergueiro. Higway Concessions Cordinator sdt7drt@openlink.Ministério dos Transportes Rod. de Noronha.org. room 504 70300-944 – Brasilia – DF Phone: 55/61/223-0844 Fax: 55/61/223-0844 http://www.

br AMCHAM – Campinas Av Selma Parada.com. Curitiba. MG Tel: 55/31/3287-1012/1649 Fax: 55/31/3287-1977 Jorge Perutz. s 451 13091-905 Campinas. DF Tel: 55/61/321-0939 Fax: 55/61/321-0171 Roberto Villaça.AMERICAN CHAMBERS OF COMMERCE AMCHAM – São Paulo Rua da Paz.com.br AMCHAM – Belo Horizonte Rua Paraíba. Bloco G. Ed. sala 1502 .com.Savassi 30130-141 Belo Horizonte.br amchambsb@amcham. President Ombudsman@amcham.br AMCHAM – Porto Alegre R Candido Hartmann.com. s 451 80250-080 Curitiba.com. Regional Manager robinsuz@amcham.br AMCHAM – Curitiba Av Selma Parada. 1431 04713-001 São Paulo. Baracat 70309-900 Brasília.com. 570 80730-440. President Robinson Luz. President Amchambh@amcham.com.br 125 . SP Tel: 55/11/5180-3804 Fax: 55/11/5180-3777 Álvaro de Souza.br www. PR Tel: 55/41/312-1657 Fax: 55/41/312-1699 Amchamctba@amcham. SP Tel: 55/19/3207-4343 Fax: 55/19/3207-4440 Amchamcnas@amcham.br AMCHAM – Brasília SCS Quadra 01. 201. 201.am cham. 1352. PR Tel/Fax: 55/51/325-0343 amchamrs@amcham. salas 1206/7.com.

br www. Presidente www.com. Agamenon Magalhães Espinheiro 52020-000 Recife. salas 809-811 29050-060 Vitória. 191.br MARKET RESEARCH COMPANIES Sao Paulo Arthur D. cj 46 04552-060 – São Paulo –SP Phone: 55/11/3845-7422 126 . Sala 705 40015-110 Salvador. Brig. Empr.amchamrio. Little S/C Ltda.vix@zaz. 5o andar 20040-020 Rio de Janeiro.br AMCHAM .AMCHAM – Recife Av.br AMCHAM – Vitória Rua Abiail do Amaral Carneiro. 2656 – sala 1004 . RJ Tel: 55//21/2203-2477 Fax: 55/21/3213-9200/9201 Joel Korn. PE Tel: 55/81/3426-9561 Fax: 55/81/3426-9561 recife@amcham.Rio de Janeiro Praça Pio X. 14 78 – 21º and. Governador Agamenon Magalhães.Ed.com BSR Projetos Empresariais S/C Ltda. Rua Pequetita 179.com.Salvador Rua Torquato Bahia.sp@ablittle. Cep: 01451-913 Sao Paulo – SP Phone: 55/11/3039-1000 Fax: 55/11/3039-1008 Contact: Jefferson Nascimento http://www.com.com rh. ES Tel: 55/27/324-8681 Fax: 55/27/345-6907 Amcham. BA Tel. President Achambr@amchamrio. 4andar. (071) 242-0077 Fax (071) 243-9986 Jorge Bonfim. Faria Lima.com. 69 Edifício Raimundo Magalhães.amcham. Av.br AMCHAM .adlittle.com.

Fax: 55/11/3845-0720 Contact: Mr. Samuel Ribeiro http://www.bsr.com.br strategy@bsr.com.br Booz Allen & Hamilton do Brasil Consultores Ltda. Av. das Naçoes Unidas, 12901 – 18º and. Torre Norte Cep: 04578-000 Sao Paulo – SP Phone: 55/11/5501-6200 Fax: 55/11/5501-6300 Leticia Costa, Presidente http://www.bah.com Datamark Consultores S/C Ltda Av. Brig. Faria Lima, 1993 – cj.35 – 3º andar 01452-001 – São Paulo – SP Phone: 55/11/3819-1810 Fax: 55/11/3819-8008 Contact: William Graham Wallis datamark@datamark.com.br IDC Brasil Al. Ribeirão Preto, 130 – 5º andar 01331-000 – São Paulo – SP Phone: 55/11/3371-0000 Fax: 55/11/3371-0029 Contact: Ruy Mendes / Cristina Muniz, manager www.idcbrasil.com.br Rgois@idcresearch.com.br Duda mendonça e Associados LTDA Av. 9 de Julho, 5960 01406-200 – São Paulo –SP Phone/Fax: 55/11/3067-4400 Contact: Duda Mendonça amonteir@dmmt.com.br Lindsey Consultores S/C Ltda. Rua Bela Cintra, 1932 Cep: 01415-002 Sao Paulo – SP Phone: 55/11/3088-8122 Fax: 55/11/3085-7787 Contact: Mr. Richard Lindsey – Director M & L Magnus Landmann Consultores Empresariais. Av. Brig. Faria Lima, 1931 – 10º and. cj. 102 Cep: 01451-917 Sao Paulo – SP Phone: 55/11/3816-3144 Fax: 55/11/3819-9621 Contact: Mr. Jorge F. Landmann – President http://www.ml.com.br

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contact@ml.com.br Marketing Service Associates do Brasil S/C Rua Prof. Luciano Venere Decourt, 33 Cep: 04648-050 Sao Paulo – SP Phone: 55/11/5686-2322 Fax: 55/11/5686-7625 Contact: Mr. Andre Fay – Director http://www.marketing-service.com.br msa@marketing.com.br MarketPlace Assessoria e Consultoria Ltda Rua Gabriel dos Santos, 168 01231-010 São Paulo – SP Phone/Fax: 55/11/3666-2762 Contact: André Neufeld vedpbrazil@amcham.com.br MV Marketing and Consulting Services. Rua Morgado de Mateus 314, cj 32 Cep: 04015-050 - Sao Paulo – SP Phone: 55/11/5549-9430 Fax: 55/11/5083-0783 Contact: Ms. Magda Vollker – Director www.mvconsulting.com.br Pyramid Research Av. Pres. Juscelino Kubitschek, 1830 – 1º andar – torre 4 04543-900 – São Paulo –SP Contact: Meredith Persily pyramid@amcham.com.br Tecnology Parteners Rua Palacete da Aguias, 842 cj.132 04635-023 – São Paulo – SP Phone/Fax: 55/11/5565-6414 Contact: Norton Ribeiro de Freitas Jr. Simonsen Assoc iados S/C Ltda. Av. 9 de Julho, 5017 – 12º and. Cep: 01407-200 Sao Paulo – SP Phone: 55/11/3078-4733 Fax: 55/11/3079-4958 Contact: Mr. Harry Simonsen Jr. – President http://www.simonsen.com.br simonsen@simonsen.com.br Brasilia, Distrito Federal ETROS Consultoria Ltda. Centro Empresarial – SCN Quadra 2 Lote D Torre A Room 1001

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Brasilia – DF Zip: 70710-500 Phone: 55/61/327-4747 Fax: 55/61/327-4746 Contact: Sergio A. A. Moura – Director http://wwwetrosconsultoria.com.br etros@etrosconsultoria.com.br Minas Gerais BRANDT Meio Ambiente Rua Alameda da Serra, 322 – 6º and. – Vale do Sereno Cep: 34100-000 Belo Horizonte – MG Phone: 55/31/3281-2258 Fax: 55/31/3286-7999 Contact: Wilfred Brandt – President http://www.brandt.com.br bna@brandt.com.br EPC – Engenharia Projeto Consultoria Rua da Bahia, 504 – 10º and. Cep: 30160-010 Belo Horizonte – MG Phone: 55/31/2122-5500 Fax: 55/31/2122-5600 Contact: Mrs. Maria V. Schettino – Mr. Nunziato Schettino http://www.epc.com.br epc@epc.com.br STRATEGOS – Consultoria e Representaçoes Ltda. Rua Ouro Fino, 395 room 309 Cep: 30310-110 Belo Horizonte – MG Phone: 55/31/3227-2047/2575 Fax: 55/31/3227-8008 Contact: Mr. Celedonio Santos – Director strat00@attglobal.net Pollo Com. Exp. R. Guajajaras, 977 conj. 506 30180-100 Belo Horizonte – MG - Brazil Phone: 55/31/3222-4871 Fax: 55/31/3222-4432 Contact: Mr.Joao Fabino F. Neto – Director http://www.wbcexpo.com.br wbc@wbcexpo.com Rio de Janeiro Maxima Consultoria Av Atlantica, 1130, BL A, 7 andar 22021-000 – Rio de Janeiro, RJ

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Joao Nunes Ferreira Neto. 1 andar 01451-000 – Sao Paulo.com 4900.Phone: 5521/3873-8662 Fax: 5521/3873-8669 Contact: Mr. Marcio Fugita. das Naçoes Unidas.janeiro@ey. SP Phone: 3097-1611 Fax: 3814-0528 Contact: Mr.ey.com. Cep: 01046-920 Sao Paulo – SP Phone: 55/11/3235-9449 Fax: 55/11/3235-9169 Contact: Edesio Depaula e Silva – Manager http://www. 282 – 10º and. Luiz Eduardo Assis http://www. Ipiranga. 20042-900 Rio de Janeiro. Rio Branco.maximaconsultoria.br Ernst & Young Av. Director http://www. Eusebio Matoso 891 –9and 05423-901 – Sao Paulo.edesiosilva@bradesco. 128 17and. Cep: 04578-000 Sao Paulo – SP Phone: 55/11/5503-7500/7780 Fax: 55/11/5503-7676 130 .com.br lima@multistock. Av.fugita@unibanco.com. 12995 – 25º and. Superintedent – Global Financial Institution http://www.unibanco. Av Brigadeiro faria Lima. Av.A. Paulo Jose Machado .A.com.br rio.br Banco Bradesco S.br Banco BMC Av.Director www. accumulating the functions of commercial and investment banks and are also active in the capital market.com.hsbc.br Banco HSBC Bamerindus S.A. SP Phone: 5511/3847-5553/5000 Fax: 3847-5167 Contact: Mr.br marcio.bradesco.com. RJ Contact: Mr.br Country Commercial Banks Most banks in Brazil operate as multiple banks. 3064. Banks in Brazil Which Operate with Eximbank Credit Lines Unibanco S.com.com.de.

br netplan@netplan.br M.bancosantos. 1842 – 8º and. Sabadin – Director http://www. Finance Al. Brig.br asabadin@bmc.br Banco Santos Av.com.br r. Cep: 04534-010 Sao Paulo – SP Phone: 55/11/3168Fax: 55/11/3168-0382 Contact: Ronald Leal – President 0383 http://www. Regina Grinberg http://www. 1651 cj. Paulista. Faria Lima.br Financial Companies and Consultants that facilitate access to Eximbank NetPlan Corporate Finance Ltda. Joaquim Eugenio de Lima 680 – 4º and. Mission In Brazil Brasília . Rua Joaquim Floriano.BSB: Tel: Ambassador Deputy Chief of Mission Economic Counselor Deputy Senior Commercial Officer Agricultural Counselor 55/61/312-7000 Donna Hrinak Richard Virden Roman Wasilewski Janice Corbett William Westman 131 .com.com.cc Guardian SC Ltda.netplan.T. Phone: 55/11/3269-6000 Fax: 55/11/3269-1111 Cep: 01310-200 Sao Paulo – SP Contact: Mrs.com.grinberg@bancosantos. 504/505 Cep: 01451-001 Sao Paulo – SP Phone: 55/11/3814-2218 Fax: 55/11/3815-5977 Contact: Joao Carlos Saldanha da Gama – Consult Email: lynx@uol.com. Av.S. 101 – 11º and. Cep: 01403-901 Sao Paulo – SP Fax: 55/11/3141-0175 Contact: Mr. Brazil Corp.Contact: Arthur Paulo R. Milton Tiago Santana (Agent of the FirstBank of New England in Brazil) U.com.bmc.

com.american-embassy. Pinheiro.Homepage: http://www. 907 30112-000 – Belo Horizonte. Isabel Vaz Ovaz@horizontes. 353 – 7and 30130-150 – Belo Horizonte. Mo urao & Raso .BH: Tel: Principal Commercial Officer 55/11/3081-6511 Patrick Duddy Milton Charlton 55/11/3082-3528 Ron Verdonk 55/11/3897-4000 John Harris Paul Kullman Brian Brisson 55/21/2292-7117 Jim Cunningham 55/31/3213-1571 Dan Crocker List of Attorneys in Brazil Minas Gerais A&A Advocacia & Administracao Rua Fernandes Dourinho. Pernabuco.br Dias Correa & Vaz R.net Grebler.br atorneaporney@prime. MG Phone: 5531/3284-8280 Fax: 5531/3284-8280 Contact: Mr. 1431 1and Bairro dos Funcionarios 30150-311 – Belo Horizonte MG Phone: 5531/3273-1234 Fax: 5531/3273-1222 Contact: Ms. MG 132 .RJ: Tel: Principal Commercial Officer Belo Horizonte .br Sao Paulo . Ceará. 735 s.dinisicampos.com.SP: Tel: Consul/General Consul/Economic Affair Tel: Agricultural Officer Tel: Senior Commercial Officer Principal Commercial Officer Director of Commercial Officer Rio de Janeiro . Randolfo Diniz Neto http://www.Advogados R.org.

amaralgurgel.br asa@azevedosette.gpmr. Cep: 01452-938 Sao Paulo – SP Phone: 55/11/3168-2566 Fax: 55/11/3078-6120 Contact: Mrs. Paraiba. Director http://www. Elisabeth V.com.M.com.amarostuber. Faria Lima.br araujopolicastro@amcham. Dr.com.com. do Amaral Gurgel amaralgurgel@amaralgurgel.com.br Sao Paulo Amaral Gurgel & Freire – Advogados R lepoldo Couto magalhães. Ricardo Azevedo Sette – Phone: 5511/38455553 http://www. 1070.br gpmr@gpmr. Brig. 1750 – 7º andar Cep: 04548-005 Sao Paulo – SP Fax: 55/11/3849-0039 Contacts: Mr. MG Phone: 5531/3261-6656 Fax: 5531/3261-6797 Contact: Mr Ordelio Azevedo Setti São Paulo: Mr. 110.com Araujo e Policastro e Portugal Advogados Av.br Bekin e Gennari Advogados Av.araujopolicastro. Camila Araujo http://www. Paulo F.com www. De Gennari 133 . 1000 – 14and 30130-141 – Belo Horizonte.com Amaro. Antonio Fernandez Guimaraes Pinheiro.azevedosette. 2894 – 11º and. Bekin / Mrs. 8º e 9º andares 01404-001São Paulo Phone: 5511/3882-9911 Fax: 5511/3882-9983 Contacts: Abel Simão Amaro / Walter Douglas Stuber www.M.Phone: 5531/3261-1400 Fax: 5531/3261-8199 Contact: Mr.br Azevedo Sette Advogados Sociedade Civil R. Cardoso de Mello . 3th floor 04542-000 São Paulo Phone:5511/3043-7700 Fax:5511/3043-7701 Contacts: J.com lawyers@amarostuber.com. Stuber e Advogados Associados Alameda Campinas.

9 de Julho. 1380 cj 32 01307-002.gennari@bekingennari.com.br Felsberg e Associados Advogados e Consultores Legais Av. Barros e Sobral Advogados S. 807 – 2ºfloor – Cj.C. 5593 – 9º andar 01407-200 – São Paulo – SP Phone: 55/11/3078-6600 Fax: 55/11/3167-4735 Contact: Fabio Ferreira Kuhawski Kujawski@cff. Paulista.br Escritorio Vi llemor Amaral Av.com. 4413 Cep: 01407-100 Sao Paulo – SP Phone: 55/11/3887-0977 Fax: 55/11/3887-0217 Contact: Hermano de Villemor Amaral / Claudio Mauricio Boschi Pigatti villemor@villemor.São Paulo. 341 – suite131 04559-000 – São Paulo – SP Phone: 55/11/5532-1055 Fax: 55/11/5533-2086 Cunha. Av. Paulista.SP Phone: 5511/3064-0364 Fax: 5511/3284-0259 Contact: Ricardo Thomazinho da Cunha www.com.com Castro. 1294. 9 de Julho. 221-225 01311-100 – São Paulo – SP Phone: 55/11/3285-2511 – 251-1323 Contact: Jamil Michel Haddad Jamilhaddad@jamilhaddad.: 01454-902 – São Paulo – SP Phone: 55/11/3846-2416 Fax: 55/11/3814-4903 Contacts: Fábio Monteiro de Barros / Sérgio Soares Soral Filho Carvalho de Freitas e Ferreira Advogados e Associados Av. Av.carvalhodefreitaseferreira.br www. Cidade Jardim.com.br Escritório de Assessoria Juridica Jamil Michel Haddad S/C Ltda. 400 – 14º andar Cep.cmpk. Marques e Kanamaru R Frei Caneca. 2/3th flor 01310-915 – São Paulo – SP Phone: 55/11/3141-9100 Fax: 55/11/283141-9150 134 .Bekin.com.br Cesar Montalvão Fernandes Av. Portugal.

adv. Brigadeiro Faria Lima. Remor e Furriela Advogados Av.br pna@pinheironeto.com.br www. Sendacz e Opice Advogados Rua da Consolaçao. Cep: 01301-903 Sao Paulo – SP Phone: 55/11/3150-7000 Fax: 55/11/3150-7071 Contact: Antonio de Souza C. 254 – 8º and. Meyer http://www.com.com. 247 – 4º à 6º e 8º and. 296.8º andar 01411-001 – São Paulo – SP Phone: 55/11/3068-8373 Fax: 55/11/3068-8379 Contact: Cristiano Diogo de Faria Lacazmartins@lacazmartins.br Pinheiro Neto Advogados Rua Boa Vista.com. noadsao@noronhaadvogados. 1750 – 8º andar 04548-005 – São Paulo – SP Phone: 55/11/3846-9050 Fax: 55/11/3846-9054 135 .br Noronha Advogados Av.macedoadvocacia.br Santos. / José Paulo Alves Pequeno / Ruben Fonseca e Silva / Eliana Filippozzi.br mmso@mmso. 923 . Cep: 01014-907 Sao Paulo – SP Phone: 55/11/3247-8400 Fax: 55/11/3247-8600 Contact: Fernando Pinheiro http://www.com. 1355 – 3º andar 01451-903 – São Paulo – SP Phone: 55/11/3038-8090 Fax: 55/11/3812-2495 Contacts: Durval de Noronha Goys Jr.noronhaadvogados.br Machado. Dr.br www.felsberg. 12 floor. Meyer.pinheironeto.com. Gurevich & Schoueri Rua Padre João Manoel.com.br Mello & Macedo Advocacia R Sete de Abril.machadomeyer.Contacts: Thomas Benes Felsberg / Gilda Machado www. Cardoso de Melo.br Lacaz Martinz. Pereira Neto. Halembeck.org.com. conj 122 01044-000 – São Paulo – SP Phone/Fax: 55/11/3257-1445/9619 macedoadvocacia@aasp.

Chucri Zaidan. 119.tozzini.Contacts: Manuel joaquim R. R. Jose Geraldo Garcia de Souza jggarcia@garciaciakeener.br www. room 909 20017-900 – Rio de Janeiro. RJ 136 . 920 – 13º andar 04583-904 – São Paulo – SP Phone: 55/11/3048-6800 Fax: 55/11/5506-3455 Contacts: Sérgio Paula Souza Caiuby – sergio.com www. RJ Phone: 5521/2240-2341 Fax: 5521/2240-2491 Contact: Dr.com Luiz Antonio D’Arace Vergueiro – luiz.com. Director Custodio@custodio.com.br Trench. Rua Luiz Goes. Rio Branco. Alvaro Alvim.br Rio de Janeiro Custodio de Almeida & Cia.br Tozzini e Freire Advogados Rua Libero Badaro.com.vergueiro@bakernet.br Garcia & Keener Advogados Av.trenchrossiewatanabe.com.br Zairo Lara Filho & Advogados Associados Rua Mexico. dos Santos / Fernando Nabai da Furriela Office@srflaw. Rossi e Watanabe Av. Cep: 01009-907 Sao Paulo – SP Phone: 55/11/3291-1000 Fax: 55/11/3291-1111 Contact: Syllas Tozzini – Partner http://www.com.br Sul America Marcas e Patentes S/C Ltda. 293 – 21º and.br mail@tozzini. 99 – 15and 20040-004 – Rio de Janeiro. RJ Phone: 5521/2203-2466 Fax: 5521/2233-3184 Contact: Dr. 1296 Cep: 04043-150 Sao Paulo – SP Phone: 55/11/5584-0933 Fax: 55/11/5581-3858 Contact: Luis Armando Lippi Braga – Director marketing@sulamericamarcas. 21 – 19and 20031-010 Rio de Janeiro.com.caiuby@bakernet.com. Custodio Cabral.com.custodio.

Outward Investment Tel: (202) 606-9867 Greg Fouch. Demographer Tel: (202) 457-1358 Trade Figures. U. Latin American Industry Specialist Tel: (202) 482-4466 ITA – International Trade Administration John Andersen.(USDA) Patricia Sheikh. Zairo Lara Zairolara@outelink. GOVERNMENT AGENCIES AGRICULTURE . Director of the Latin America and Caribbean Division Tel: (202) 482-2437 Tyler Shields. Brazil Desk Tel: (202) 482-3872 137 . Trade Policy Tel: (202) 720-6887 Dan Birman. Import Policies and Program Division Tel: (202) 720-2916 AID – Assistance for International Development Dyane Barnes Tel: (202) 647-4359 COMMERCE BEA – Bureau of Economic Affairs Ray Malaloni.S. Inward Investment Tel: (202) 606-9831 COMMERCE BIS – Bureau of Industry and Security Addi Apiricio Tel: (202) 482-3984 Fax: (202) 482-5650 COMMERCE CENSUS .Population John Reed.com. Foreign Trade-Latin America Countries Tel: (301) 457-3041 Import Administration Steve Green.br U. Trade Promotion Tel: (202) 690-0159 Richard Blabey.S.Phone: 5524/2220-8019 Fax: 5521/2220-8019 Contact: Dr.

Regional Director Tel: (202) 482-2736 CUSTOMS Edward Logan. International Affairs Tel: (202) 927-0400 DEFENSE Randy Pearson. Senior Business Officer Tel: (202) 565-3913 HHS-FDA – Health and Human Services – Food and Drugs Administration Minna Golden. Latin America Tel: (301) 713-2276 NIST – National Institute for Standards & Technology Joanne R.Import Bank Greg O’Connor.USCS – United States Commercial Service Daniel DeVito. Saunders. Brazil Tel: (301) 975-2396 Walter G. Physical Scientist / Brazil Specialist Tel: (703) 648-7745 MARINE FISHERIES Dean Swanson. Latin America Tel: (202) 586-5904 EPA – Environmental Protection Agency Michael Young. Associate Director for the Americas Tel: (301) 827-1043 INTERIOR (Mineral Management Service) Alfredo Gurmendi. Latin America Program Tel: (202) 260-6009 EXIMBANK – Export. Leight. Brazil Desk Tel: (703)-6952520 ENERGY Moustafa Soliman. NCSCI/NIST Tel: (301) 975-4037 Mary H. Calibration Program Tel: (301) 975-2203 NTIA – National Telecommunications & Information Administration Judy Kilpatrick. Deputy Director Tel: (301) 975-4010 John Rumble. Brazil Tel: (202) 482-1087 138 . Chief. International Business Development Officer Tel: (202) 565-3939 Cristin Wood. Overman.

Director Tel: (202) 647-2079 TDA – U.S.* World Bank (IBRD) • • • Agriculture & Enviroment Country Operations Infrastructure Division William Crawford. D. Executive Director Jose Fajgenbaum Division Chief. U. Economic Officer Tel: (202) 647-2326 or 736-7481 Sylvia Eiriz. Director Constance Bernard Venod Thomas Dany Leipziger Larry Harrington. Business Development Officer Tel: (202) 336. Trade Development Agency Albert Angulo. MARKET RESEARCH Industry Sector Analysis Report (ISA) FY 2003 139 . Country Manager for Latin America & the Caribbean Tel: 703-875-7056 TRANSPORTATION Coni Hunter.S. Deputy Assistant USTR for Western Hemisphere Tel: (202) 395-5114 INTERNATIONAL FINANCIAL INSTITUTIONS.C. Brazil 458-0120 458-5175 473-8452 473-0001 623-3821 623-8637 Inter-American Development Bank Int’l Monetary Fund (IMF) 12.8745 PTO – Patent & Trademark Office Robert Stoll. Administrator for External Affairs Tel: (703) 305-9300 STATE/BWHA – Bureau for Western Hemisphere Affairs Gerald Gallucci. Secretaty of Transportation for Latin America Tel: (202) 366-9521 or 366-7417 USTR Regina Vargo. Director for Brazil and Southern Cone Affairs Tel: (202) 647-6541 David Edwards. Washington. Political Officer Tel: (202) 647-0443 STATE/EPS – Regional Economic Policy and Summit Coordination Russel Fraisbie.OPIC – Overseas Private Investment Corporation Bruce Camerun. Regional Director for the Latin America & the Caribbean Tel: 703-875-4357 Anne McKinney.

2003 Sept. 2003 March 2004 May 2004 July 2004 July 2004 July 2004 July 2004 July 2004 July 2004 July 2004 August 2004 August 2004 Sept. 2003 Author Mauricio Vasconcelos Patricia Marega Marina Konno Bernhard Smid Igly Serafim Teresa Wagner Regina Cunha Denise Barbosa Jussara Haddad Lynn Wong Paulo Rodrigues Vania Resende Ruy Baptista Patrick Levy Ebe Raso Roberto Mulhbach Jefferson Oliveira Industry Sector Analysis Report (ISA) FY 2004 Title Electrical Power Generation in Brazil The Brazilian Entertainment Market Mining in Brazil: Gold and Copper Projects The Brazilian Cosmetics Market Vitamins and Nutritional Supplements Brazilian Travel & Tourism to the United States Airport Security Systems in Brazil The Franchising Sector in Brazil Brazilian Petrochemical Sector Environmental Consulting and Eng. exporters. 2004 Sept. 2004 Sept. 2003 Sept. The U. Ground Support & Air Traffic Control The Pulp and Paper Industry in Brazil Financial Services in Brazil Due Date Dec. 2004 Jan. Commercial Service is in Brazil to assist your company in maximizing its export potential in this dynamic 140 . 2004 Author Regina Cunha Maria Luiza Leal Mauricio Vasconcelos Denise Barbosa Jefferson Oliveira Jussara Haddad Marina Konno Paulo Rodrigues Igly Serafim Teresa Wagner Genard Burity Lynn Wong Ebe Raso Patricia Marega Ruy ptista Roberto Muhlbach Patrick Levy UNITED STATES COMMERCIAL SERVICE IN BRAZIL GUIDE TO COMMERCIAL SERVICES The Brazilian market offers significant opportunities for U.S. 2002 March 2003 March 2003 April 2003 May 2003 June 2003 July 2003 July 2003 July 2003 July 2003 July 2003 Aug. 2003 Sept. 2004 Sept. 2003 Sept. Services The Brazilian Software Market Electronic Commerce in Brazil Voice over Internet Protocol (VOIP) The Consumer Goods Industry in Brazil Airports.S. 2003 Sept.Industry Sector Analysis Report (ISA) FY 2003 Title Mining Equipment and Technology Forestry Equipment or Woodwork Construction Equipment Regulatory Aspects of Medical & Pharmaceutical Sector Agricultural Machinery Solid Wast Treatment Equipment Oil and Gas Equipment Nonwoven Textiles Opportunities in the Education Market E-Commerce Developments in Brazil Industrial and Analytical Instrumentation Precision Agriculture Equipment Seaports – Port Operations in Brazil Insurance Services Broadcast Equipment Material Handling Equipment Pharmaceuticals & Natural Supplements Due Date Oct.

involved in bidding on a major project.org. 381 CHÁCARA SANTO ANTÔNIO SÃO PAULO . firms active in a key industry sector.S. Platinum Key Service: The PKS is intended for U. Specific requests for these products/services or any other requests for export assistance should be addressed to the USEAC office nearest your or CS Brazil at any of the addresses below: U. Brasilia. CS Brazil has offices in the cities of Belo Horizonte.usatrade. Commercial Service’s export promotion programs and to a ccess important market reports.gov Website: www.focusbrazil. A senior staff member will actively monitor and seek out information and intelligence in the U. identifying a qualified local partner. This Guide outlines the market research. Export Assistance Center (USEAC) nearest you to familiarize yourself with the U.S. Commercial Service in Brazil (CS Brazil) offers a variety of products and services to facilitate U.SP Electronic Address: Email: sao. Commercial Center AMCONGEN São Paulo Unit 3502 APO AA 34030-3502 Tel: 55 / 11/ 5186-7300 Fax: 55 / 11/ 5186-7399 Address Information for Visitors: RUA THOMAS DELONEY. negotiated on a fee or non-fee basis. exporters seeking opportunities in the Brazilian market.S. companies to promote their products and to meet with prospective Brazilian buyers.br CS Brazil Products and Services CS Brazil products and services can meet your company’s needs in exporting to Brazil by addressing basic market inquiries. Also.S.S. These reports. trade promotion and facilities support and services available to U. Contact information for the USEACs and other key information on exporting are available by dialing 1-800-USA-TRADE or by contacting their website (www. via e -mail or through confidential periodical telephone or videoconferences 141 . The first step is for you to contact the U. or seeking commercial intelligence to achieve their business goals. at your convenience visit our web site: www. The U. Porto Alegre.S.S.br.S. The client will receive up-to-the-minute privileged market intelligence. All other offices offer similar support through institutional partners. CS Brazil is also positioned to consider any legitimate request by a U. company for export assistance. trade leads.focusbrazil. Rio de Janeiro and São Paulo. CS Brazil also offers high caliber facilities for U. as outlined in this guide.office. Company's area of interest.paulo. to organizing a highly sophisticated trade promotion event. exports. São Paulo is also the site of CS Brazil’s Commercial Center.S.org. trade contact.gov).S.box@mail.S.doc. insights and major projects news or developments. a facility where U.S.and diverse country. Mailing Address: U. exporters and Brazilian importers can develop business supported by the very latest in “user-friendly” information technologies.

250 per company. focusing on “best prospects”..000 . or a specific timeframe. customers. These are business confidential products tailored to the U.with the Embassy specialist. exporter from USEACs or from the CS Brazil Web Site: www.what their foreign competitors. a review of competitive factors and market shares. Offers individual or groups of companies a high visibility venue at the Commercial Center to present its products or services to a tailored audience of Brazilian clients. The requesting company provides input regarding the specific venue and audience.S.or double check -. giving background and guidance on how to take advantage of the opportunity. financial and competitive developments in the firm's sector or in any number of specific projects in Brazil.S. exporters regarding market opportunities ranging from the general business environment to company and product specific market information and analysis.org. Availability: delivery time on-going for six months. International Market Insights: Reports on specific market opportunities and major projects and new developments. These include: Country Commercial Guide: A comprehensive report on the general business environment in Brazil with an emphasis on market access. Fee: Negotiated by Event. These products and services are designed as tools for use by your company in advancing into the market in the following categories: Market Research. will discuss political. In short. best sales prospects. Company’s product/service the results of which are not made available to the public. Complementary Products: CS Brazil produces a considerable number of market research reports on Brazil. ISAs contain market assessment and outlook supported by statistics.focusbrazil. Business Facilitation Services Single Company Promotion: Services can range from American companies sending their catalogues of their products to be displayed in a specific local trade exhibit to Promotional or Technical Presentation Event. 142 . and light refreshments. MARKET RESEARCH – CS Brazil can orient U. strategic.br. private and government clients are doing and how it affects their competitive position.S. investment issues and general information on markets of opportunity. market access information. Fee: Varies depending on scope of work. Please order this service through your local USEAC.S. and trade contacts. which generally includes a 3-hour program including a detailed company presentation and question/answer session. U.S. Fee includes official CS event space with presentation equipment. They are available at no cost to the U.S. and Trade Events described on the following pages: I. audience development costs. Fee-Based Products: The following reports can be developed for a U.US$2. Finding International Partners. Availability: 1 month of request. exporter upon request for a fee. Industry Sector Analysis: Detailed reports analyzing market opportunities for best sectors for U. colleagues. one year. Range US$1. firms can now access the perfect tool to know -. exports in Brazil.

S. The U. Please request this service through your local USEAC. product standards and registration. arranges an interpreter. U. individualized information on overseas markets. product or service in the Brazilian market. goods and services in identifying interested and qualified potential representatives. companies have the flexibility to design their own question/set of questions or to choose from a Core Menu of standardized questions. II. and strategic partners in Brazil. and interested prospects. licensees. FMR answers questions such as the overall marketability of a product or service. Includes contact information and a brief description of the company. Company. distribution channels.). market trends and size. Availability: 30 business days from date of receipt of materials. CS Brazil arranges the videoconference at the U. Group videoconferences generally consist of a 1-2 hour program with U. Company is responsible for any follow-up contact with Brazilian counterparts. Range: US$175 . reputable. International Partner Search: The IPS assists exporters of U. prices. regulations. Fee: To be determined by the actual cost of facilities and services required to implement. etc. A special report is written for you. and qualified buyers. Availability: Group videoconference available with 1-month lead-time.US$1. Video Market Briefing: CS Brazil offers videoconference programming for groups or individual companies.S. Customized Market Research: A concise report generated upon request examining the competitiveness of a specific U. from basic lists to pre-screened and qualified companies. company requested product/service.300 (with call originating in the United States). customary distribution and promotion practices. or strategic partners. and potential agents.S. The service provides specific information for specific products or services. The preferred method for showing your products and company information to Brazilian firms is your Web page or electronic catalog/brochure. comparable products and their prices. key competitors. Availability and Fee: Dependent on the scope of the research. CS Brazil conducts a personalized pre-screened search to identify up to ten (10) qualified.Customized Market Research Flexible Market Research: provides U. If a Web page or electronic catalog is not available.S.100. Availability: 60 days of request. we will require 20 sets of product literature. Personal visits to each qualified company are made by the trade specialist to ensure compatibility with your product or service. Availability: Within 60 calendar days of request.S. The report covers key marketing issues. Fee: US$5.S. Fee: US$150. distributors. and moderates the program if requested. Fee: $500 per IPS per category of business partners. distributors. This report is confidential and is available only to the requesting U. individual videoconference available with 1-week lead-time.S. Contact Lists: USCS will provide to the customer a list of 10-20 specific contacts relevant to the U.S. 143 . such as sales potential.S. confirms the Brazilian participant(s). CS Brazil also offers important tools for active follow up with interested partners to assist in turning a contact into a business success. Please order this service through your local USEAC. franchisees. and Brazilian audiences focusing on a specific industry/service issue. Availability: 5-10 business days depending on request. firms with customized. Based on parameters provided by the client (product information. exporter to identify potential business partners that meet its qualifications.S. market entry requirements. FINDING INTERNATIONAL PARTNERS – CS Brazil offers several options for the U. Commercial Center.

S. Fee: U$ 500.S. Fee: Varies with each show. companies to evaluate potential business partners by providing a detailed report on overseas companies. Availability: within 3-4 months of confirmed request. Please order this service through your local USEAC.S. Fee: US$450 per day. Fee: Negotiated by Event. The Video Gold Key is not intended to be a substitute for a country visit. but may represent a solution for client companies unable to visit a market at a particular time. companies in proactively promoting their U. products.S. clients can request answers to detailed questions about overseas companies on a variety of issues and receive expert advice from commercial specialists about the relative strength of the firm in its market and its reliability. Trade Fairs: With this set of services. exporters a prescreened set of appointments with Brazilian companies meeting the U. Company.US$3. International Company Profile: In order to help U. company specifications and with expressed interest in a potential business arrangement with the visiting firm. Any changes in reservation are the responsibility of the U.S. Video Gold Key Matching Service: The Video Gold Key Matching Service allows clients to conduct interviews with prospective business partners prior to visiting a country. Through the service.S. Range US$1. as a result. a potential exporter may participate as an exhibitor at a U. Missions typically target specific industries in selected countries. targeted announcements to the trade public. Fee: US$ 700. among other things. and a search for prospective clients. Company's credit card.focusbrazil. Commercial Service. freight handling and customs expediting services. Government official(s) involving prearranged meetings with potential business partners in one or several foreign markets to take advantage of specific overseas market opportunities for U.500 per company. the International Company Profile enables U. III. Such participation includes distinctive decor. Please order this service through your local USEAC. Availability: 6 weeks advance scheduling request. established trade exhibit.S.Gold Key Matching Service Gold Key Matching Service: CS/Brazil develops for visiting U. See current list of trade shows on the Web Site www. products and services in Brazil. Trade Missions: A group business trip (5 or more companies) organized/led by U.S. The service also allows companies to obtain feedback regarding the market for their product and. CS Brazil will make initial hotel reservations and/or arrange an interpreter/driver upon receipt of the U. Upon request. CS schedules 4 appointments per day and meetings are generally held at the Brazilian company location. TRADE EVENTS – CS Brazil organizes a wide range of promotional activities to assist U.S.S. CS Brazil can arrange an interpreter at an additional charge.350 . detailed questions will be asked of the overseas companies. Availability: 6 weeks advance scheduling request. which have been personally visited by a trade specialist or commercial officer of the U. receive in-country business counseling and have specially arranged business appointments. beyond those in the standard questionnaire. 144 .br or request a current list from the Sao Paulo Commercial Center. Mission participants meet with Commercial Service staff.S. Pavilion within a large. Can also include plant tours and government meetings.S.org. companies to enter into international business relationships with confidence. Availability: 10 business days (fee is higher if a tighter deadline is required). to use their time in country more efficiently and effectively.

/04 03/ . The U. Since trade events schedules are subject to change.S. meeting rooms. Commercial Centers around the world./04 01/ .S. and catered events.S./04 06/ .usatrade. CS BRAZIL FACILITIES CS Brazil has offices in Belo Horizonte./04 03/ . 13. Brasilia.IV. In the São Paulo office there are facilities for U./04 02/ . including auditoriums.doc./04 06/ . and indoor and outdoor areas for receptions. Pavillon at the Gramado Tourism Festival ISA South America 2003 Techtextil South America 22nd Dental Show Rocky Mountain Symposia’s Go West Summit Security Week Repcom Brazil Telexpo 2004 Visit USA Road Show Hospitalar Fitma / Aquatech Brazil Medical Device Trade Mission Surf Beach Show 2004 ABF Franchise Expo Febratex 2004 Telexpo Wireless 2004 Start Date 11/13/03 11/18/03 11/ .Box@mail./04 04/ . including a fee schedule./04 Post Responsible SP RJ SP SP SP SP SP SP SP SP SP SP SP SP SP SP 145 .S. The SPCC is a place designed for U./04 03/ . an auditorium for presentations to targeted audiences. exporters and Brazilian importers to conduct business in a full support environment.Office. TRADE EVENTS SCHEDULE These events are supported by USG. Porto Alegre./04 06/ .S. and São Paulo. companies to conduct business and promote their products and services. Commercial Center in São Paulo (SPCC) is one of four U.gov Trade Event Schedule FY 2004 Event Name U. is available upon request by contacting Sao. Full information on each site./04 06/ .gov. firms should consult the Trade Events section of the CS website: www. Rio de Janeiro./04 06/ ./04 06/ . The SPCC offers meeting areas for individuals and groups.Paulo./04 08/ .

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