Doing Business in Brazil

Mr. Miguel RoviraRegional Director Americas

Governor’s Office of Economic Development

International Trade and Diplomacy

Reasons for Doing Business in Brazil

São Paulo Brazil

Reasons for Doing Business in Brazil

Matarazzo Building is headquarters of São Paulo City HallPhoto Montage of the City of Sao Paulo

Reasons for Doing Business in Brazil

Manaus, Amazonas

AGENDA

About Brazil Economy CultureMarket Opportunities IndustriesMarket Challenges Constraints to Doing Business in Brazil Issues Facing Brazil Cost of Doing Business in Brazil

ABOUT BRAZIL Area: 8,514,877 sq km Population: 203,429,773 (July 2011 est.) President: Dilma Rousseff Government Type: Federal Republic GDP: $2.172 trillion (2010 est.) GDP Composition by Sector:

Services: 67.4% (2010 est.)Industry: 26.8%Agriculture: 5.8%

Unemployment Rate: 6.7% (2010 est.)

economy

Brazil is the 7th largest economy in the world Brazil is today South America's leading

economic power and a regional leader, one of the first in the area to begin an economic recovery.

Brazil grew 7.5% in 2010, compared to an estimated 2.3% growth in the G7 countries and 2.8% in the United States

Highly unequal income distribution and crime remain pressing problems.

Underutilized Natural Resources

ECONOMY

Exports: $201.9 billion (2010 est.) Export Commodities: Transport equipment, iron ore,

soybeans, footwear, coffee, autos Export Partners: China 12.5%, US 10.5%, Argentina 8.4%,

Netherlands 5.4%, Germany 4.1% (2009) Imports: $181.7 billion (2010 est.) Import Commodities: machinery, electrical and transport

equipment, chemical products, oil, automotive parts, electronics

Import Partners: US 16.1%, China 12.6%, Argentina 8.8%, Germany 7.7%, Japan 4.3% (2009)

iNDUSTRIES

Sector with higher than average growth are:

Transportation

Telecom

Oil and Gas

Mining

Brazil will spend billions in infrastructure development of its roads, railroads, ports and airports as well as in stadiums as it prepares for the World Cup 2014 and the Olympics in 2016.

Other leading sectors for U.S. exports and investments include:

industries

Agricultural Equipment Aerospace and Aviation Airports Information Technologies Telecommunications Transportation Electrical Power Oil and Gas Safety and Security Environmental Technologies

INDUSTRIES

Mining Medical Equipment Architecture / Engineering /

Construction

Brazil is one of the largest Information Technology markets within the emerging economies

constraints to doing business in brazil

Bureaucracy Poor Infrastructure Corruption Lack Technology Preference to Local Companies Tax on imports

Significant Barriers: Developing Country Heavy Import Taxes

issues facing brazil

Uneven income distribution Poor public education Significant imbalance of market concentration Informal economy that hinders tax collection Tariff barriers, a complex custom system, overloaded

legal system, heavy taxes, bureaucratic procedures and onerous product licensing raise costs for doing business in Brazil

The World Bank ranks Brazil 127 out of 183 economies in the world in terms of ease of doing business

COST OF DOING BUSINESS IN BRAZIL

Understand how to deal with Labor Force and Taxes Liberal and socialist policies Labor Unions have more influence in Brazil Taxes increase the cost of doing business

EASE OF DOING BUSINESS –GLOBAL RANK

Source: www.doingbusiness.org

Source: www.doingbusiness.org

Economy Overview

Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil “Making a difference for Entrepreneurs”

Starting a Business

Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil “Making a difference for Entrepreneurs”

Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil “Making a difference for Entrepreneurs”

DEALING WITH CONSTRUCTION PERMITS

Registering Property

Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil “Making a difference for Entrepreneurs”

Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil “Making a difference for Entrepreneurs”

Getting credit

Protecting Investors

Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil “Making a difference for Entrepreneurs”

Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil “Making a difference for Entrepreneurs”

Paying taxes

Trading Across Borders

Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil “Making a difference for Entrepreneurs”

Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil “Making a difference for Entrepreneurs”

Enforcing contracts

Closing a Business

Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil “Making a difference for Entrepreneurs”

Real Reasons to Do Business in Brazil

Iguazu Falls Brazil. Author: Martin St-Amant

Real Reasons to Do Business in Brazil

Ipanema Beach

Real Reasons to Do Business in Brazil

Copacabana Beach Brazil

Real Reasons to Do Business in Brazil

Soccer Brazil