Brazilian-American Capital and Investment Exchange Analysis

2 WELCOME DAVID BARIONI NETO President of Apex-Brasil and Vice-President of the Brazil Industries Coalition CARLOS EDUARDO ABJAODI Industrial Development Director, National Confederation of Industry (CNI), and President of the Brazil Industries Coalition T his study is the result of an initiative by Apex-Brasil, with the support of the National Confederation of Industry (CNI) and Brazil Industries Coalition (BIC), aimed at encouraging investment flows between Brazil and the United States. Investments between the two countries from 2000 to the start of 2015 were mapped. The results, described on the following pages, indicate a mature partnership, based on the reciprocal interests of Brazil and the United States in a wide variety of sectors, from labor-intensive ones to those focused on the knowledge economy. On both sides, a focus on the sustainability of relationships was identified, disengaged from what may seem positive in the short term, and instead prioritizing what is essential in solid, long-term relations such as the one between the two countries. For Apex-Brasil, reports such as this mapping are everyday work instruments, indicating paths for private sector investments. In this sense, the United States continues to be a constant focus of the Agency's actions. In the last five years, Apex-Brasil, together with Brazilian industry associations, has conducted more than 650 trade and investment promotion events in the United States. It has opened two offices in the country. It supports projects in 56 sectors that recognize the U.S. market as a priority. In the field of investments, the United States is the highlight of the Agency's outreach work, which focuses on attracting capital and technology in the areas of R&D, smart grids, renewable energy and, most recently, equity investments. This work has been supported by SelectUSA, a U.S. government agency with which we signed a Memorandum of Understanding in 2014. The figures presented here, besides demonstrating the importance of these bilateral investments for Brazil and the United States, also point to a solid commitment focused on the mutual development of the two largest economies of the Americas. We believe that everything is a matter of strategy and harnessing opportunities. The United States and Brazil have many such opportunities, and we do not want to miss them. This mapping is an indicator of this situation and it may contribute to new ventures to effectively boost the economic growth of both countries. growing number of Brazilian companies are expanding internationally in order to enhance their competitiveness, An internationaly in order to enhance their competitivene among other reasons related to the new logics of global value chains. As part of this challenge, the United States may be considered one of Brazilian industry's main partners. The publication "Brazil - US Investments Map," the result of a successful partnership between CNI, Apex-Brasil and the Brazil Industries Coalition (BIC), provides an analysis of trade and investment flows, showing how the American market has become strategic for Brazilian industry. In terms of exports, the United States is currently the main destination for Brazilian manufactured goods. Regarding investments, a comparative analysis of emerging economies in terms of sums and jobs generated demonstrates the significance of Brazilian investment in the USA. Through quantitative and qualitative information, this publication confirms that we are involved in a two-way process. The United States is one of the main investors in Brazil, most notably in research and development, while Brazilian investments in the USA are concentrated in sectors such as aerospace, food, renewable energy, pharmaceutics, construction materials, metals, oil & gas, chemicals, software and textiles. Brazil's potential foreign presence should be taken into account. Thus, it is fundamental to have policies that reflect this new reality for industrial production and international trade. We hope the Brazil - US Investments Map will contribute to the development of such policies. 3

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