#1Investing in Brazil Trade and Promotion Department. Consulate General of Brazil in Chicago#2VENEZUELA SURINAME GUYANA French North Atlantic COLOMBIA Guiana Ocean (FRANCE) Belém Manaus São Luís Amazon Fortaleza Río Ucayali Rio Branco Recife. PERU Salvador Cuiabá BRASÍLIA BOLIVIA Corumbá Belo Horizonte São *Vitória South Pacific Ocean CHILE Paulo. PARAGUAY Santos Rio de Janeiro Pôrto Alegre South Atlantic Ocean ARGENTINA 0 300 600 km URUGUAY 0 300 600 mi Country Facts and Key Data#3• Country Facts and Key Data Population: 200 million of people (2010 Census) • Share Borders with 10 countries. • • • Largest cities: São Paulo ( 11,3 million habitants) and Rio de Janeiro ( 6,4 million). 12% of the earth's fresh water reserves. Iron ore: world's second largest reserve (29 billion metric tons). • Host to the 2014 World Cup and the 2016 Olympics. Census 2010 IBGE#4● Country Facts and Key Data 3rd main market for biodiesel. 3rd main aircraft producer and top producer of models seating up to 120 passengers. 4th largest market for cell phones, automobiles and TV sets. ● 5th largest market for medical equipment. • 60% of all R&D investment in Latin America is allocated in Brazil. ● 161 tech parks in operation. Renai - http://investimentos.mdic.gov.br/conteudo/index/item/442#5Economic and Trade Profile#60 100 107,7 2002 2003 121,5 200 159,5 2004 2005 192,1 300 229,2 2006 2007 281,3 400 370,9 • 500 Brazil: Expanding Trade Flow Trade Balance Evolution in USD billions Exports (Jan- Nov 2014) - US$ 225,101 billion. Imports (Jan- Nov 2014) - US$ 229,031billion. Caderno: Economia Brasileira em Perspectiva. Dezembro/2014 Portal Brasil: http://www.brasil.gov.br/economia-e-emprego/2015/01/ministerio-do-desenvolvimento-divulga-balanca-comercial 2008 2009 2010 280,7 2011 383,7 482,3 2012 465,7 481,7 2013 2014 454,1#7Brazil: Major trading partners (2014) Nigeria 2,2% Italy 2,3% India 2,4% South Korea 2,7% Japan 2,8% Germany 4,5% Argentina United States China 6,3% 13,6% 17,4% Dados fornecidos pelo MRE/DPR/DIC#8Trade Products (2014) Main Import Products Product Mechanic Machinery Fuel Oil % 19,5% 18,8% Electric Machinery 7,9% Organic Chemicals 6,4% Plastics 6,1% M Precision Instrument 5,8% Product % Fuel Oil 14,7% Iron & Steel 12,7% Mechanic Machinery 11,7% Dado Planes. 56%#9* 2014 data: Jan to Oct. Brazilian FDI (2014) Foreign Direct Investment, in USD billion. 80 70 60 50 40 30 20 17 10 0 10 18 19 15 H 2002 2003 2004 2005 2006 Caderno: Economia Brasileira em Perspectiva. Dezembro/2014 Investments 67 65 64 49 45 35 26 2007 2008 2009 2010 2011 2012 2013 2014* 66 Investments#10Brazilian FDI (2014) Foreign Direct Investment: Rank with other countries in USD billion. * Inclui Hong Kong 2005 2013 Reino Unido 177,9 China* 200,5 China* 113,4 EUA 187,5 EUA 104,8 Rússia 79,3 França 84,9 Brasil 64,0 Alemanha 47,4 Cingapura 63,8 Holanda 39,0 Canadá 62,3 Bélgica 34,4 Austrália 49,8 Canadá 25,7 Espanha 39,2 Espanha 25,0 México 38,3 México 24,7 Reino Unido 37,1 Itália 23,3 Irlanda 35,5 Cingapura 18,1 Luxemburgo 30,1 Rússia 15,5 India 28,2 Brasil 15,1 Alemanha 26,7 ** Não inclui Ilhas Virgens Britânicas Caderno: Economia Brasileira em Perspectiva. Dezembro/2014 Fonte: UNCTAD Elaboração: Ministério da Fazenda#1114 12 10 Unemployment Rate at historic lows (%) 2003 2004 2005 * 2014 data: Jan to Oct. 2006 2007 Média: 7,1% 2 12,4 11,5 9,9 10,0 9,3 7,9 8,1 6,7 6,0 5,5 5,4 4,8 Caderno: Economia Brasileira em Perspectiva. Dezembro/2014 2008 2009 2010 2011 2012 2013 2014*#12A growing middle class Growing middle class, in million people. 250 200 A/B - more 23 29 13 150 105 118 66 100 47 50 39 49 32 32 25 0 2003 2011 17 2014* than USD 3,390.00 C - more than USD 786.00 D - more than USD 490.00 ■E - less than USD 490.00 (family's monthly income) Brazil will be the 5th largest consumer market in 2020, with a forecast of USD 18,8 trillion in household consumption, and will be among the top three markets of automobiles and motorcycles, food and beverage, clothing and cosmetics. Central Bank of Brazil. FGV projections Exame Magazine, McKinsey consulting firm, Ministry of finance.#13Investments in Brazil: new demands, new opportunies.#1450 2003 Caderno: Economia Brasileira em Perspectiva. Dezembro/2014 100 71,0 2004 150 200 79,3 250 94,6 Investment in infrastructure (R$ billion) 2005 101,8 2006 2007 121,4 150,2 2008 2009 167,5 Crescimento de 142% 192,0 194,7 2010 212,5 2011 2012 2013 228,6#15Brazil Scientific Mobility Program Development of the science, technology and innovation sectors Launched in 2011. Budget: US$ 1,5 billion. Scholarships in 2014 (Jan- Nov): 75.168. 22.016 just in USA universities. ( Jan - Nov 2014). CIÊNCIA SEM FRONTEIRAS#16Start-up Brasil Federal Government to support technology-oriented projects from conception phase until reaching the market. How does Start-Up Brasil work? Each Edition has 1 year duration. Organized in 3 phases: Phase 1: Qualify and habilitate accelerators. Phase 2: Global start-up selection process (25% of start-up can be foreign). Phase 3: Execution of the projects. Star-ups receive support from the accelerators. R$ 200,000 in resources and financial investment from the accelerators#17Brazil and USA relations: trade and investment#18Trade Relationship: Export and Import In USD millions. U.S Census $26.095,5 Total Export per Year. ( USA to BR) $35.417,7 $43.018,8 $43.807,2 $44.118,5 $42.418,0 III Export 2009 2010 2011 2012 2013 2014#19International Companies. US Companies in Brazil General Motors Cargill 3M AbbVie Coca-Cola Ford Monsanto Wal-Mart General Eletric Pepsico Kraft Dell Microsoft. Brazilian Companies in US. JBS Grupo Gerdau Stefanini IT Solutions Marfrig Alimentos Votorantim Cimentos WEG Equipamentos Elétricos Tramontina Odebrecht Tigre Vale Minerva Foods Embraer Tupy American Foundry Investment Guide to Brazil 2014#20BRAZIL Ju Doing Business with Brazil.#21Federal Incentives: Incentive packages. Tax Incentives Regional Incentives: Coordinated by regional development bodies: SUDAM (Amazon Region Development Agency) SUDENE (Northeastern Brazil Development Agency) State-level Incentives: Investment incentive on the bases of the ICMS tax (product taxes). Municipal-level incentives: Tax reduction on Service Tax (ISS) and Property Tax (IPTU) Sectors likely to get government incentives: Infra-structure, IT, oil and gas, and electronics. Investment Guide to Brazil 2014#22Property and Land Foreigners can buy real state in Brazil without a partner. Limitation for marine and rural lands, islands, and areas near international borders. Foreign investors without a permanent visa cannot get a Brazilian mortgage. Rural Land. Acquisition/ Leasing. Who? Only foreigners with permanent residence status and an established residence in Brazil. Restrictions : Individuals NATURE OF FOREIGN PERSON Allowed to acquire up to 50 MEI"(Indefinite Exploitation Module), which is equivalent to areas ranging from 250 to 5,000 hectares, according to the MEI's value in each municipality. Corporations Allowed to acquire up to 100 MEI, which is equiva- lent to areas ranging from 500 to 10,000 hectares, according to the MEI's value in each municipality MUNICIPALITY AND NATIONALITY The total sum of land areas acquired by foreigners in a municipality may not exceed 25% of its territory, Foreigners of the same nationality cannot own more than 10% of the total area of a municipality. Investment Guide to Brazil 2014#23Transportation System Types: Roads: ➤ Most common type of transportation. Over 1,7 million Km of roads in Brazil ➤ Perishable, finished and semi finished products ➤Limited space Railroads: Over 28,190 Km of railroads in Brazil Coal, ore, agriculture products, fertilizers, oil derivable, etc. Used for transportation of high quantity of goods ➤ Good for long distances Waterways: Brazil has a waterway network of sailing that reaches approximately 22,037 km Good for the transport of large quantities of goods over long distances ➤ Low cost of transportation and maintenance Ports: 34 ports to import or export goods ➤ The Brazilian port complex can handle over 930 million tons of cargo ➤ Responsible for 90% of exportation in the country Investment Guide to Brazil 2014#24Visas (American Citizens) Types: Business Visa: Valid for 05 years. Allow maximum stay of 90 days. Investor Visa: Plan to invest at least $75.000 in Brazil. Partners, Managers and administrators of a Brazilian Company: Request must be made by the Brazilian company to Ministry of labor in Brazil. Work Visa: Request must be made by the Brazilian company to Ministry of labor in Brazil. Valid for 2 years, renewable for another 2 years upon request of the Brazilian company. * Check for more requirements before applying for the Visa. Investment Guide to Brazil 2014#25Trade and Promotion Depto Each Brazilian Consulate in the U.S.A has a trade and promotion section, called Secom, that serves as a bridge between businesses in Brazil and USA. The main goal is to promote Brazilian exports and attract foreign investment to Brazil. It also supports the internationalization of Brazilian companies. Secom-Chicago is responsible for 10 states in the Midwest: IL, IN, Iowa, MI, Minnesota, MO, Nebraska, N. Dakota, S. Dakota, WI. The department can offer general information on How to do Business in Brazil and connect companies to government level bodies and other associations.#26BRASIL EXPORT Trade and Investment Guide.#27http://www.brasilexport.gov.br/ BRAZIL EXPORT Trade and Investment Guide Invest Buy from Brazil in Brazil Discover Brazil RENAI Brazilian Investment Information Network RENAI Consult an extensive data bank of announced investment projects and investment opportunities across Brazil. Brazilian Official Guide on Investment Opportunities Know more information on projects and public works in various sectors of the national economy Join the Brazil Export business network. Register now for free! ZASK BRAZILEXPORT Contact us Brazil Export is a Trade and Promotion website developed by the Brazilian Government to promote international business. It's mainly used by Brazilian and foreign companies searching for: List of exporters, importers and distributors. Legal Guides. Sector and Country Trade information. Virtual gallery of products. Upcoming trade shows in Brazil.#28IBRAZIL EXPORT Trade and Investment Guide Buy from Brazil Invest in Brazil Why invest in Brazil? Regions and states Investment opportunities Incentives Discover Brazil Project announcements and requests for proposal Guides Supporting organizations Get to know Brazil. Foreign importers interested in doing business can access the virtual showroom and send their proposals directly to the participating Brazilian companies. Business investors can access information about supporting organizations; major events, economic indicators, State information, incentives, and much more.#29BRAZIL EXPORT Trade and Investment Guide INVEST IN BRAZIL Guides Informative Guides Buy Invest from Brazil In Brazil Discover Brazil Guides Support Guide for Industrial Development Resources for productive development see more Legal Guide for Foreign Investors in Brazil A guide on how to invest in the country see more -> Brazilian Official Guide on Investment Opportunities Government-sponsored public projects in several areas see more How to do business and Invest in Brazil Guidebooks aimed at promoting business in the Brazilian market see more LAW HOW TO mo HOW ST TO GOLAS AMCHAM HOW INVEST TO PARANA JAMCHAM JAMCHAN HOW TOY BRAZI BUSINESS CAMPINA HOW RANKS TOMA FRANCE & ASPECT Tax HOW HOW 10-MADE HOW FLORTION Colliers HOW CT PEOPLE AND TO JAMCHAM & Santander E JAMCHAM AMCHAM JAMCHA BRAZIL NHLIGHTS Ministry of External Relations Department of Trade and Investment Promotion Investment Division Legal Guide for Foreign Investors in Brazil VESTMENT GUIDE TO BRASIL 2014 Brazilian Official Guide on Investment Opportunities Updated 2014#30Register for Free and have access to all the business information. IBRAZIL EXPORT Trade and Investment Guide BUY FROM BRAZIL Join the Brazil Export business network Buy Invest from Brazil in Brazil Discover Brazil Join the Brazil Export business network Sign up now! To register your company for free on Brazil Export - the federal government's official trade promotion and investment website - complete the form on the next page. Registrations will be reviewed by the Trade Promotion Sector at your local Brazilian Embassy or Consulate. Once reviewed, your company will be posted on the Brazil Export website, increasing its visibility among enterprises looking to do business with Brazil and invest in the country. Register now for free! (external link)#31Thank you / Obrigada Consulate General of Brazil in Chicago BRAZILIAN GOVERNMENT BRASIL Consulate General of Brazil in Chicago Trade and Investment Department http://chicago.itamaraty.gov.br www.brasilglobalnet.gov.br Email: [email protected]