Strengthening Trade and Investment Ties

Premier business advocacy organization in Washington D.C;

Forging consensus between the two private sectors and communicating to both governments with a unique bilateral voice.

U.S section of the Council;

Operates under the administrative aegis of the U.S. Chamber of Commerce;

Represents major U.S. companies that invest in or have business in Brazil;

Brazil section

Managed by the Brazilian National Confederation of Industry.

About us

Our objectives

Advocate in Brazil and the United States for members’ interests;

Promote substantive interaction between members and leading policy and decision makers in Brazil and the United States;

Deliver timely information to members and facilitate member input into policy formulation and program development;

Advance members’ policy priorities through task forces, working groups, coalitions, and joint programs with government and private sector stakeholders.

Our leadership

Chairman of the Board Greg PageCargill Chairman & CEO

Chair EmeritusAmbassador Anthony S. Harrington

Albright Stonebridge Group President & CEO

Our members

Economic Basics:

Population of 200 million people;

Land mass slightly larger than the area of the Continental U.S.;

Currently the 6th largest economy in the world in terms of GDP;

Although growth has slowed in the last two quarters, Brazil weathered the economic crisis better than most world markets and forecasts predict a strong 2013;

Culturally diverse with extraordinary geographic variety;

Agricultural sector rivals that of the U.S.

Why Brazil?

Among the BRICs:

Per capita income is twice that of China;

Geographic proximity to the U.S.;

Historically a key political ally;

Culturally and geographically similar to the U.S.;

In terms of GDP according to the CIA estimates: Brazil's 2011 GDP was 2.324 trillion, Russia’s 2.414 trillion (2011 est.), and India $4.515 trillion (2011 est.).

Why Brazil?

BRICs Forecast

The five largest economies in the world in 2050, measured in GDP nominal (millions of USD), according to Goldman Sachs.[18]

Forecasts vary, but sometime in the decade after 2014—Brazil is likely to become the world’s fifth-largest economy, overtaking Britain and France.

Bilateral Private Sector

Brazilian State Capitalism

Business Sector Areas of Concern

Presidential-level Dialogues

Economic and Commercial Bilateral Dialogues

Brazil & the United States

Brazil Business Concerns with the United States:

WTO cases against the U.S. on cotton and OJ;

Agricultural Subsidies (cotton, ethanol*, soybeans);

Restrictive Tariff Rate Quotas (sugar, OJ, ethanol).

U.S. Business Concerns with Brazil:

High tariffs & complicated taxes;

Enforcement of Intellectual Property Rights;

Onerous licensing & Regulatory Requirements;

Transparency & bureaucracy.

* Ethanol tariff and blenders credit expired December 2011 in the U.S. and tariffs in Brazil have been suspended until 2015.

Business Sector Concerns

Brazil’s Macro Scene

Best Prospects

World Cup and Olympic Games

Best practices to ensure success

Resources for doing business in Brazil

Doing Business in Brazil

Political Economy:

Focus on state-led growth (infrastructure and PAC investments);

BNDES central role in financing infrastructure;

Increasing government involvement through “national champions”;

New industrial policy that heavily favors domestic production;

Potential for improved relations with United States;

Upcoming major events including World Cup (2014) and Olympics (2016);

Brazil’s macro scene

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Brazil’s macro scene

Challenges:

High level of red tape;

Complex tax system and high rates;

Difficult to get copies of laws and regulations in English;

Regional affiliations;

Inflexible and burdensome labor laws;

Volatile regulatory and legal environment.

2012 Best Prospects

Agricultural Equipment

Aviation/aerospace

Defense

Energy

Environmental technologies

IT hard/software

Infrastructure

Insurance

Medical Equipment

Safety and Security Equipment

Smart Grid/Metering

Sporting Goods

Telecom

Transportation

Tourism

Water and wastewater

2014 World Cup

Will be held in 12 Brazilian cities;

Investments budgeted to be:

Infrastructure: US$ 51 billionStadiums: US$2.7 billionAirport renewals: US$3 billion-----------------------------------------TOTAL: US$56.7 billion

This figure does not include the proposed High Speed Train Rio/Sao Paulo, valued at US$20 billion, which likely will not be ready by 2014.

As delays mount, the total spending is expected to go beyond the budgeted figures listed above.

2016 Olympic Games

First Olympic Games ever to be held in one city

Investments from 2010-2016 may reach US$50 billion in infrastructure, construction, transportation, public security, education and training, among others;

Most of the large-scale investments will occur through Public-Private Partnerships (PPPs) under Brazil’s Growth Acceleration Program (PAC);

Majority of contracts will be awarded to Brazilian firms, but with opportunities for U.S. partnerships and suppliers;

Political alignment on all levels will facilitate the procurement process;

Two sets of opportunities, one through government procurement, the other through Olympic Committee procurement.

Tips for Success

Complex system—advisable to hire local experts;

Requires an intimate knowledge of the local environment, including “Custo Brasil”.;

Location matters—be sure you investigate all 26 states + Brasilia;

Best done for SMEs through a local agent or distributor;

Whether your company is a bank, a realtor, an engineering firm or any type of industry or service provider, it is best to secure local partners;

Get an interpreter—that speaks Portuguese!;

Tax code is complex, accounting practices difficult, best to have a Brazilian firm and a local firm that understands Brazil;

Labor market is competitive and labor law favors the employee; be sure you understand how best to structure your presence on the ground.

Resources

The U.S. Foreign Commercial Service

Brasilia: Devin Rambo, Principal Commercial OfficerDevin.Rambo@trade.govPhone: 55-61 -3312-7401 / Fax: 55 –61 3312-7656

Belo Horizonte: Ruy Baptista, Commercial SpecialistRuy.Baptista@trade.govPhone: 55/31/3213-1574 / Fax: 55/31/3213-1575

Sao Paulo : Brian Brisson, Senior Commercial OfficerBrian.Brisson@trade.govPhone: 55-11 5186-7401 / Fax: 55-11 5186-7445

Recife: Adierson Azevedo, Commercial SpecialistAdierson.Azevedo@trade.govPhone: 55-81 3416-3075 / Fax: 55-81 3416-3075

Rio de Janeiro : Alan Long, Principal Commercial OfficerAlan.Long@trade.govPhone: 55-21 3823-2417 / Fax 55-21 3823-2424

ResourcesAmerican Chamber of Commerce for Brazil: 13 branches across Brazil Membership organization Trade missions, matchmaking, helping to identify service providersCamila MouraCamila.moura@amchambrasil.com.brwww.amcham.com.br

American Chamber of Commerce, Rio de Janeiro:Helio Blak, Diretor Superintendentehelioblak@amchamrio.com www.amchamrio.com

Invest Sao PauloSergio Costasergiocosta@investesp.org.br

Rio NegociosMarcelo Haddade, Directorwww.rio-negocios.com/en/info@rio-negocios.com

Thank you!

Kathleen MclnerneyDirector – BUSBCkmcinerney@uschamber.com

@ BUSBC

BrazilCouncil