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Explore the recent developments in external trade in Brazil, focusing on liberalizing reforms, export performance, and structural components. Delve into trade balance, export markets, main products, and policies for export incentive with a view on macroeconomic stability, microeconomic reforms, and trade negotiations. Learn how Brazilian firms are evolving into export-oriented entities and examine the country's business climate. Will the export performance continue to rise? Let data-driven insights guide you in understanding Brazil's trade landscape and future prospects.
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External Trade in Brazil: Recent Developments Pablo Fonseca P. dos Santos Paris - OECD November 22, 2004
Graph I: Nominal and Real Exchange Rate1, 1998 - 2004 (October)(index: July 1994 = 100) 2
Graph II: Trade Balance, 1998 - 2004 (October)(US$ billions; accumulated over 12 months) 3
Table I: Exports by Main Markets, 1997 and 2004 (US$ billions) 4
Graph III: Exports Quantum by Class of Products(12 months moving average) Source: Funcex. 5
Table II: Exports by Main Products, 1997 and 2004 (US$ billions) 6
Liberalizing reforms of the 1990’s - Privatizations - Reduction of trade tariffs Some industry examples - airplanes - steel - textiles FDI - automobiles - mobile phones R&D and investments in the agricultural sector Some Facts About the Structural Component of the Brazilian Trade Performance
Graph IV: Export Quantum, 1997 - 2004*(% change over previous year) 8
Table III: Balance of Payments, 1998 - 2005(US$ billions) 10
Table IV: Balance of Payments: Selected Indicators, 1998 - 2005 11
Brazilian firms are increasingly becoming more export oriented Policies to incentive exports Macroeconomic Stability - Necessary but not sufficient condition Microeconomic Reforms Agenda - Improvement of the business environment - Reduction of the cost of credit - Infrastructure investment (PPP, regulatory framework) - Improvement of the tax structure - R&D (new law being discussed by the Senate) - education Trade negotiations - High tariffs and non tariff restrictions on products that Brazil is more competitive Will Export Performance Keep Up?
Table VI: Improving Business Climate Structural Reform Checklist 14