1 / 26

U.S Commercial Service São Paulo

U.S Commercial Service São Paulo U.S Consulate General São Paulo, Brazil President Luis Inácio Lula da Silva Took leadership on 1 st of January, 2003 Political party: Labor Party- PT 2002 - Won by 61.27% at the first mandate 2006 - Won by 60,83% at the second mandate

jana
Download Presentation

U.S Commercial Service São Paulo

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. U.S Commercial Service São Paulo U.S Consulate General São Paulo, Brazil

  2. President Luis Inácio Lula da Silva • Took leadership on 1st of January, 2003 • Political party: Labor Party- PT • 2002 - Won by 61.27% at the first mandate • 2006 - Won by 60,83% at the second mandate

  3. Doing Business in Brazil

  4. Brazil Compared:(Size of the EconomyUS$ Billion)

  5. Brazil Compared: U.S. Exports to Latin America (US.$ Billion) Source: U.S Census Bureau

  6. Brazil’s GDP US$ Billions

  7. Robust trade surpluses, with both exports and imports on the rise. Trade Balance, Exports and Imports (12 months rolling) Current Account and FDI (12 months rolling) TB X, M Source: Ministry of Commerce Source:BCB Strong trade adjustment dampening external financing needs.

  8. Composition of Brazil’s GDP2007

  9. Inflation Rate (1993 – Dec/2007) 2,477% 8.5% 6% 5.5% 3.5% 3% 4.5% 1.8% 1.8% 1993 1998 2001 2002 2003 2004 2005 2006 2007 Source: Agência Estado

  10. Interest Rates • The SELIC interest rate is currently 11.5% (per year) • Mortgage loans range from 2% to 4% per month • Businesses generally pay from 2% to 4.5% (per month), depending on their creditworthiness

  11. São Paulo and Brazil 3% of area Brazil 22% of inhabitants 34 % of GDP 41% of industrial GDP 32% of exports São Paulo 43% of imports 68% of financial operations Source: IBGE, Seade and Banco Central do Brasil, 2005

  12. São Paulo 45% of world trade of medium aircraft (30-60 passengers). 53% of Brazilian motor vehicle-production 70% of Brazilian sugar and alcohol production and exports. World’s biggest producer of orange juice. 60% of Brazilian capital goods production. 40% of Brazilian refining oil production.

  13. 47 NUSA SITES IN BRAZIL 02 NUSA SITES IN PARAGUAY Anápolis – GO Aracajú –SE Belém – PA Belo Horizonte – MG Belo Horizonte – MG Betim – MG Boa Vista – RR Brasília – DF Brasíia – DF Campinas – SP Campo Grande – MS Campo Grande– MS Contagem – MG Contagem – MG Caxias do Sul – RS Cuiabá – MT Curitiba – PR Divinópolis – MG Florianópolis – SC Fortaleza – CE Goiânia – GO Goiânia – GO João Pessoa – PB Juiz de Fora – MG Londrina – PR Macae – RJ Macapá – AP Maceio – AL Manaus – AM Natal – RN Novo Hamburgo – RS Palmas – TO Petrolina – PE Porto Alegre – RS Pouso Alegre-MG Recife – PE Ribeirao Preto - SP Rio de Janeiro-RJ Salvador – BA São Luís – MA São Paulo – SP Teresina – PI Uberaba – MG Uberlândia – MG Uberlândia – MG Vitória – ES Vitória – ES Asunción Ciudad del Este

  14. (U.S. $ Billion) U.S. Census Bureau

  15. Best Prospects for Sales to Brazil • Aircraft and Aircraft parts • Chemicals/Pharma • Electronics and Electric Power equipment • Medical Equipment • Oil and Gasfield Machinery & Services • Pollution Control Equipment • Printing/graphic equipment • Retail/consumer items • Safety and Security Equipment • Telcom/Computer Hardware/Software • Transportation Equipment • Travel and Tourism

  16. U.S. – Brazil Trade Relations • Brazil Business Concerns with the U.S. • Agricultural Subsidies (cotton, ethanol, soybeans) • Restrictive Tariff Rate Quotas (sugar, OJ, ethanol) • U.S. Anti-dumping policies • U.S. Business Concerns with Brazil • High tariffs (20%) & complicated taxes (Up to 60% FOB) • Enforcement of Intellectual Property Rights • Onerous licensing & Regulatory Requirements • Transparency, bureaucracy, different judicial system, slow customs

  17. Best Prospects: Wireless equipment & Services for 3G HDTV related software & equipment (Set-top decoder boxes; transmitters for digital radio and TV, encoders, multiplexes, automation systems, studio TV cameras, video servers, IPTV solutions, digital transmitters for High Definition Television (HDTV), microwave systems Concerns: Brazil high tariffs (0-20%) & complicated tax system (Up to 60% FOB) Telecom Market US$ 46 billion Source: Anuario Brasileiro deTelecomunicacoes

  18. The telecom sector has almost 150 million fixed, mobile, Internet and pay TV clients 2006 Fixed phones 35,4 million Mobile users 99,9 million Pay TV households 4,5 million Brazil LA - Most important countries * FIxed phones / household Mobile phones / population Pay TV / households Broadband / households * Argentina, Chile, Mexico and Venezuela

  19. Internet OverviewThe Brazilian users spend more time than anyone in the world • Internet users • 32 million Brazilians had used the internet, monthly in 2006. The forecast for 2007 I to reach 37 million • In four years, the number of internet users increased 67% Internet users • Broadband Access • 2006: the broadband active connections growth was 40,1%. In this same period, the service penetration jumped from 2,2% to 3% • 2010: it is expected 10 million connections • Time Spend monthly surfing on web • The Brazilian internet user is the one who spend more time online: 22h26 for each user in June 2007 (USA: 19h05) Time spend in internet Source: Ibope e-Ratingand IAB (Interactive Internet Bureau)

  20. Total Market size: US$ 2.2 billion/year • Best Prospects: • Crawler lattice-boom cranes • Cranes above 60 tons • Tower cranes above 100 tons • Rough terrain hydraulic cranes • Heavy earthmoving equipment • Large concrete plants • Paving equipment • Topography equipment • Non-destructive drilling and tunneling equipment CONSTRUCTION EQUIPMENT

  21. Abundance of cost line – over 5,000 miles long; Less price-sensitive market; Heavy duties as it is considered a “non-essential” market; The market is expected to expand, accompanying the increased number of beach resorts being constructed along the northeastern coast of Brazil. Small local production X heavy presence of foreign companies; Brazilian boat fleet : Sao Paulo 80%, Rio de Janeiro 9% Santa Catarina and Parana together with 4%. Leisure Boats

  22. Leisure Boats • Accessories for the boats such as motors, electronics, awnings, GPS, furnishings are mostly imported. • The majority of the boats are used in the ocean. • The market is expected to expand as the number of beach resorts being constructed along the north and northeastern coasts of the country increase. • Major shows in the segment are: • Sao Paulo Boat Show – October 4-9, 2007 • Rio Boat Show – TBD, 2008

  23. AGCO • Caterpillar • CNH (Case New Holland) • Komatsu • Randon • Volvo • Ingersol Rand • Dynapac • Ciber • BobCat Note: All above companies are manufacturing in Brazil. MAJOR COMPETITORS

  24. Points of Contact • São Paulo: Sean.Kelley@mail.doc.gov • Rio de Janeiro: Camille.Richardson@mail.doc.gov • Brasilia: Rebecca.Armand@mail.doc.gov • Belo Horizonte: John.Mueller@mail.doc.gov

More Related