Doing Business in Brazil

1
Doing Business in Brazil

• Ohio Trade Office Brazil
• Represented byVânia Zulatto, Director

2
Brazil in the Americas
3
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 Geograph
y and Statistics
4
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
  

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

7
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

8
Brazil Inflation
Source USDOC
9
Brazils Leading Products
10
Brazilian Imports - 2007 (US Million)
11
Brazilian Imports - 2007 Import by Product
CategoriesShare
12
Brazilian Exports - 2007 (US Million)
13
Brazilian Exports - 2007 Export by Product
CategoriesShare
14
Brazil Compared U.S. Exports to Latin America (
US Billion)
Source U.S Census Bureau
15
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
16
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 Burdenso
me regulations Slow/bureaucratic customs system
European /Asian competition

17
Landed Cost (example shipped into Santos, São
Paulo)
100,000
171,447
18
Tariff Concessions
Special Regimes - Ex Tarifário
Temporary reduction in import duties of
Capital goods Informatics and telecom goods/ part
s Including mostly goods of HTS chapters 84, 85
and 90. List of goods carrying the tariff conc
essions www.desenvolvimento.gov.br
19
We can help !
Access the Brazilian Market through
Market researches Identification of market opp
ortunities Identification and qualification of p
otential Contacts One on One meeting appoint
ments Trade Event organization and participation
Navigate Brazils legal and regulatory issues
Cross cultural issues and business practices
20
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

21
Trade Shows
AGRISHOW Agriculture Technology
BRASILPLAST Plastic Industry FCE Pharma Pharmac
eutical Industry FEIMAFE Machine Tools FENASUCR
O Sugar and Alcohol Industry FISA Food Ingredie
nts FISPAL Industrial Packaging and Processes HO
SPITALAR Hospitals, Health Clinics and
Laboratories ISA SOUTH AMERICA Analytical Instru
mentation and Equipment LAAD Aerospace and Defen
se TELEXPO Telecommunication, Network and Informa
tion Technology
22
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