DOING BUSINESS IN BRAZIL. Mr. Miguel Rovira Regional Director Americas Governor s Office of Economic Development International Trade and Diplomacy

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1 DOING BUSINESS IN BRAZIL Mr. Miguel Rovira Regional Director Americas Governor s Office of Economic Development International Trade and Diplomacy

2 REASONS FOR DOING BUSINESS IN BRAZIL São Paulo Brazil

3 REASONS FOR DOING BUSINESS IN BRAZIL Photo Montage of the City of Sao Paulo Matarazzo Building is headquarters of São Paulo City Hall

4 REASONS FOR DOING BUSINESS IN BRAZIL Manaus, Amazonas

5 AGENDA About Brazil Economy Culture Market Opportunities Industries Market Challenges Constraints to Doing Business in Brazil Issues Facing Brazil Cost of Doing Business in Brazil

6 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.)

7 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

8 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)

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

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

11 INDUSTRIES Mining Medical Equipment Architecture / Engineering / Construction Brazil is one of the largest Information Technology markets within the emerging economies

12 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

13 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

14 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

15 EASE OF DOING BUSINESS GLOBAL RANK Source:

16 Source:

17 ECONOMY OVERVIEW Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil Making a difference for Entrepreneurs

18 STARTING A BUSINESS Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil Making a difference for Entrepreneurs DEALING WITH CONSTRUCTION PERMITS Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil Making a difference for Entrepreneurs

19 REGISTERING PROPERTY Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil Making a difference for Entrepreneurs GETTING CREDIT Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil Making a difference for Entrepreneurs

20 PROTECTING INVESTORS Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil Making a difference for Entrepreneurs PAYING TAXES Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil Making a difference for Entrepreneurs

21 TRADING ACROSS BORDERS Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil Making a difference for Entrepreneurs ENFORCING CONTRACTS Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil Making a difference for Entrepreneurs

22 CLOSING A BUSINESS Source: International Finance Corporation, The World Bank. Doing Business 2011 Brazil Making a difference for Entrepreneurs

23 REAL REASONS TO DO BUSINESS IN BRAZIL Iguazu Falls Brazil. Author: Martin St-Amant

24 REAL REASONS TO DO BUSINESS IN BRAZIL Ipanema Beach

25 REAL REASONS TO DO BUSINESS IN BRAZIL Copacabana Beach Brazil

26 REAL REASONS TO DO BUSINESS IN BRAZIL Soccer Brazil

The Energy Situation and Market in Brazil

Solarthermie in Brasilien Darmstadt, 13.11.2012 The Energy Situation and Market in Brazil Prof. Dr. Terence Trennepohl Post-doc at Harvard University Pillsbury Winthrop Shaw Pittman LLP, New York Outline