Doing Business in Brazil

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Doing Business in Brazil

• Ohio Trade Office Brazil
• Represented byVânia Zulatto, Director

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Brazil in the Americas
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Brazil in Brief

• Territory 8.5 mi square km/3.3 mi sq miles
• Population 188 million (82 urban)
• Official Language Portuguese
• Laborforce 96.34 million

Source IBGE - Brazilian Institute of Geography
and Statistics
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Political Environment

• Federal Republic
• President Luiz Inácio Lula da Silva
• Former union leader first working-class
  President
• Took office in 2002 was re-elected in 2006
• Credible institutions / Solid Banking System
• Tight fiscal and market oriented policies
• Totally free press fundamental role in
  preserving democracy
• 20 years of strong political stability after
  20 years of military dictatorship

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Regional Disparities GDP share(2005)
North - 5,0
Northeast - 13,0
Center-West - 8,9
Southeast - 56,5
South 16,6
Source IBGE
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Why Brazil?

• Strategic location
• Approximately 50 of South Americas GDP
• Political and economic stability
• Extremely favorable exchange rate U 1.00 R
  1,65
• US and BR trade relations
• Largest and most diversified industrial park in
  Latin America

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Economy

• Inflation 4,5 estimate 2008
• Basic Interest Rate per year (abril 2008) 11.75
• Local currency Real
• Favorable Exchange Rate U 1 R 1,65
• GDP US 1.45 trillion 2008 (estimate)
• Growth Rate 4.3
• Unemployment Rate 14.2
• Consumer Market 48.4 million 26.9

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Brazil Inflation
Source USDOC
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Brazils Leading Products
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Brazilian Imports - 2007 (US Million)
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Brazilian Imports - 2007 Import by Product
CategoriesShare
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Brazilian Exports - 2007 (US Million)
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Brazilian Exports - 2007 Export by Product
CategoriesShare
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Brazil Compared U.S. Exports to Latin
America (US Billion)
Source U.S Census Bureau
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Market Opportunities
for OH companies

• Oil and Gasfield Machinery Services
• Information Computer Technology
• Electronics and Electric Power equipment
• Mining
• Agricultural Equipment
• Railroads Ports
• Insurance
• Pharmaceutical / Medical Equipment
• Travel and Tourism

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Market Challenges Advantages

• Size consumer market
• Diversified/sophisticated industrial park
• Country proximity
• Brazilians receptive US culture/products
• Favorable exchange rate

• High tariffs (0-20)
• Informal economy
• Burdensome regulations
• Slow/bureaucratic customs system
• European /Asian competition

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Landed Cost (example shipped into Santos, São
Paulo)
100,000
171,447
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Tariff Concessions

• Special Regimes - Ex Tarifário
• Temporary reduction in import duties of
• Capital goods
• Informatics and telecom goods/ parts
• Including mostly goods of HTS chapters 84, 85 and
  90.
• List of goods carrying the tariff concessions
• www.desenvolvimento.gov.br

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We can help !

• Access the Brazilian Market through
• Market researches
• Identification of market opportunities
• Identification and qualification of potential
• Contacts
• One on One meeting appointments
• Trade Event organization and participation
• Navigate Brazils legal and regulatory issues
• Cross cultural issues and business practices

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To be Successful in Brazil

• Get ready to travel
• Meet partners face to face
• Personal relationship is very important
• Be fast on your follow-ups / give support to
  your partner
• Visit the market / partner regularly
• Provide after sales and technical assistance
• Translate your catalogs into Portuguese
• Avoid using Spanish
• Be patient and do your homework
• Understanding of the complex tax regime

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Trade Shows

• AGRISHOW Agriculture Technology
• BRASILPLAST Plastic Industry
• FCE Pharma Pharmaceutical Industry
• FEIMAFE Machine Tools
• FENASUCRO Sugar and Alcohol Industry
• FISA Food Ingredients
• FISPAL Industrial Packaging and Processes
• HOSPITALAR Hospitals, Health Clinics and
  Laboratories
• ISA SOUTH AMERICA Analytical Instrumentation and
  Equipment
• LAAD Aerospace and Defense
• TELEXPO Telecommunication, Network and
  Information Technology

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Contact Us!Obrigada!Thank You!

• Ohio Department of Development
• Global Markets Division
• [phone]
• Vânia Zulatto
• (55 11) 3061 2127 / 5055 4536
• vzulatto_at_tvzinternational.com.br
• www.tvzinternational.com.br