Brazil: Seize the Opportunity

Richard Turner
Deputy Director for UKTI Brazil and
Deputy Consul General, Sao Paulo

ExploreExport 2011
Coventry
29 June 2011
UK Trade & Investment: Brazil

Brazil: The size of a continent – 8.5 Mn km2

 North
 North East
 Central
 South East
 South
• 5th biggest country in the world
• Language: Portuguese
• Capital city: Brasilia
• Population 193 million – the world’s 5th most populous
country
Source IBGE 2009
• Divided into 5 regions and 27 states
UK Trade & Investment: Brazil

Brazil: Vitality and Confidence

• Continuing economic stability: GDP growth rate reaching 5.3 per cent in
2007 and a low inflation rate of just 3.7% reconfirms Brazil's status as a
market growing strongly from a solid base. -0.2% growth in 2009 due to
recession. Returned to strong growth of 7.5% in 2010. Predicted growth of
between 4 to 4.5% in 2011.

• Last year Brazil received 30% of the foreign direct investment in Latin
America, almost double the amount of FDI it received in 2006

• In early 2008, Standard & Poor’s and FitchRatings upgraded Brazil’s

sovereign risk rating to Investment Grade. Brazil is only the third Latin
American country to reach Investment Grade status

• Among developing countries, Brazil’s scientists contribute more of the most-

cited research papers than any other country except China and India
UK Trade & Investment: Brazil

Brazil: Striking Facts

• World’s 7th biggest economy, alongside UK, France and ahead of Italy, Spain,
Mexico, South Korea

• GDP US$1.6trn; GDP per capita US$8,421 - larger than China's or India's –
now could be consider middle income economy

• State of São Paulo economy larger than Argentina's

• Investment Grade from Standard & Poor's and FitchRatings

• 82% of all equities traded in Latin America at BM&FBOVESPA (São Paulo Stock
Exchange)

• Following Petrobras capitalisation in September 2010 BM&FBOVESPA became

world’s 2nd largest stock exchange after Hong Kong
UK Trade & Investment: Brazil

Brazil: Striking Facts

• 25% of the world's agricultural land

• 22% of the world’s fresh water

• World’s largest producer of ethanol, with 308 installed production plants,

producing 17.7 billion litres per year

• World’s largest producer and exporter of coffee, sugar cane and fruit juices

• World’s largest exporter of meat, chicken and leather

• World's 2nd largest producer of soya

• 45% of Brazil’s energy (80% of electricity) already comes from renewable

sources compared to a world average of 14%

• Won the World Cup 5 times!!

UK Trade & Investment: Brazil

Brazil: Infrastructure
• 70 airports: annual flow of 75 million people

• 54 ports: cpacity for over 500 million tonnes/year

• 31,000 km of railways: 11th largest world railway network

• 1.6 million km of roads: 3rd largest world road network

• 100% digital telephone lines

• Advanced communications: 125 million mobile lines; 42 million fixed lines

and more than 1 million public telephones
UK Trade & Investment: Brazil

Brazil: High Value Opportunities

1. Petrobras Business Plan 2010- 2014 (£9.1 billion)

2. Oil & Gas Critical Equipment Supply (£1.6 billion)
3. Rio 2016 Olympic Games Infrastructure (£1.5 billion)
4. 2014 World Cup Infrastructure (£984 million)
5. Naval Shipyard & Ship Building Programme (£1.2 billion)
6. Expansion of metro systems (£600 million)
7. Rail Infrastructure Development (£250 million)
8. Power Generation from Alternative Sources (£350 million)

(the figures in brackets represents the value accessible to the UK, not the total value of the project)
UK Trade & Investment: Brazil

Other Leading Opportunities

 Renewables  Aerospace
 ICT  Automotive
 Environmental Technologies  Corporate Training
 Marine  Distance Learning
 Construction  Financial Services
 Life Sciences  Defence and Security
 Chemicals  Retail/Luxury Consumer
 Agribusiness Goods
UK Trade & Investment: Brazil

Not all good news….

 Brazil 127th in Ease of Doing Business League in 2010

(152nd for paying taxes)
 Complicated Tax System/High Import Duties
 Starting up a company
 Employment Laws
 Bureaucracy
 Infrastructure problems, not keeping pace with growth
 Inflation pressures – currently annual rate 6.55%
 High cost of borrowing
UK Trade & Investment: Brazil

Trade Flows
2010
UK  Brazil £2,128,822,035 (+23%)
Brazil  UK £3,097,446,136 (+19%)
Total £5,226,268,171

2011 (Jan to Apr)

UK  Brazil £656,142,879 (+15%)
Brazil  UK £731,701,341 (-10%)
Main UK Exports: Petroleum Products, Metals, Power Generating Equipment, Transport Equipment
UK Trade & Investment: Brazil
Brazil: UKTI Services
Tailored market reports
Production of validated contact
lists of agents, distributors,
customers, key players
Press and PR services
Arrangements for special events
such as product launches,
seminar and receptions
Support for participation in a
trade fair/mission
Development of a complete
visiting programme when you
come to the market
Enhanced access to the key players
drawing on our experience and contacts
Reduction in time spent searching for
contacts
Reduced risk of encountering the wrong
contacts as we will vet them beforehand
drawing on our local expertise
Reduced overall risk through our local
knowledge, advice and assistance
Faster identification of opportunities in
the market
Reasonable cost but high value
Reduction in time spent with Logistics
UK Trade & Investment: Brazil

Brazil: Delivering Results

Time

Business
Opportunity

Risk Cost

UKTI services mean considerable time-saving, reduced risk, low costs

and a short-cut to the significant opportunities to be discovered
in the Brazilian market.
UK Trade & Investment: Brazil

Richard Turner
Deputy Director UKTI Brazil

richard.turner@fco.gov.uk
+55 11 3094 2713

Obrigado!