Brazil’s Trade Mission to Canada, September 22- 24, 2010

(Them Concept)

The Ministry of Development, Industry and Foreign Trade of Brazil (MDIC) and the Brazilian Agency for Export Promotion and Investment (Apex-Brazil), in partnership with the Ministry of Foreign Affairs, will promote Brazil´s Trade Mission to Canada. The goal is to expand and diversify the flow of trade and investment between the two countries and explore possibilities for cooperation between the productive sectors. The agenda will focus on the business meetings that will take place on September 23 in Toronto, where Brazilian companies will meet with potential local buyers, who will be identified and selected by the Canadian consulting company Them Concept, specialized in “matchmaking”.

For more information please contact Them Concept:
Johanne Fondrouge Email: jfondrouge@themconcept.ca, Tel: 514-274-0151 x 101

Mercosur “Too Small” for Brazil, Claims Sao Paulo Federation of Industries

(MercoPress)

One of Brazil’s most influential lobbies, the Sao Paulo Federation of Industries, FIESP, claims that Mercosur is an economic space “too small” given the development and “growing international presence of Brazil”. “Mercosur from a trade angle and Latin America from a political angle are turning to be too small for the global interests of Brazil”, said Rubens Barbosa head of FIESP foreign trade council.

Barbosa pointed out that lately Brazil and China, strong trade allies, have become decisive players in the reorganization of global production, following the 2008 downfall, and are increasingly responsible for the growing presence of developing countries in the international stage and in decision making. Read more here.

Related: Say Bom Dia to Brazilian Businesses (Slate Magazine)

‘Doha Round’s Success Depends on India, China’

(Press Trust of India – Lalit K Jha)

Alleging that some key global players were acting as a roadblock in international trade negotiations, a top U.S. trade official said on Wednesday that the success or failure of the Doha Round depends on countries like India, China and Brazil.

“Today, the key roadblock is the continued resistance of some important partners to engage in sustained, meaningful negotiations,” said U.S. Deputy Trade Representative Demetrois Marantis during his speech at the 25th annual World Trade Day in Rhode Island. “The success or failure of the Doha Round depends on whether advanced developing countries like China, India and Brazil accept the responsibility that comes along with their growing roles in the global economy,” he said.

The Obama administration is gearing up to host the Asia Pacific Economic Cooperation (APEC) forum in 2011

Brazil will Impose Import Levies to Face “Cheap” US Dollar, Unless Accord is Reached

(MercoPress)

Brazil’s government may take additional steps to limit gains in the local currency (Real) should advanced economies favor policies that keep their currencies weak, Finance Minister Guido Mantega said. “We will take further measures if we don’t reach an agreement” Guido Mantega said in New York. Last year, Brazil implemented a tax on foreign purchases of stock and fixed-income investment in a bid to stem the currency’s advance.

Mantega said he was “worried” after last weekend’s International Monetary Fund (IMF) meetings in Washington, where officials from the US and other developed nations said they intend to keep their benchmark interest rates low. Reduced lending rates can weaken currencies by prompting investors to shift their money to countries where rates are higher.

“I told my colleagues we won’t just watch the deterioration of our situation,” Guido Mantega said. A stronger Real would put Brazilian exporters at a disadvantage by making their goods more expensive in dollar terms. After gaining over 30% last year, the best performance against the US dollar among the 16 most traded currencies tracked by Bloomberg, the Real has lost 0.1 percent in 2010. Read more here.

U.S. and Brazil Reach Agreement on Cotton Dispute

(New York Times – Serwell Chan)

The United States and Brazil have reached an agreement aimed at settling a long-standing trade dispute over American subsidies to cotton growers, officials in both countries said Tuesday.

The announcement came one day before Brazil was to begin imposing up to $830 million in sanctions with authorization from the World Trade Organization. The trade body had ruled last August that American subsidies to cotton growers had violated global trade rules.

Under the preliminary deal, Brazil would hold off on retaliation in exchange for American concessions that include the modification of an export loan program and the establishment of a temporary assistance fund for the Brazilian cotton industry. The broader issues in contention would be deferred until Congress takes up the next farm bill, most likely in 2012.

The Brazilian sanctions were to include $591 million in higher tariffs on a wide array of goods, including autos, pharmaceuticals, medical equipment, electronics, textiles and wheat. Read more here.

Brazil Emerging Market for Canada

(Canadian Sailings – Kathlyn Horibe)

Companies encouraged to find niche opportunities, local partners

Doing business in Brazil requires local partners who understand the country’s culture and bureaucracy. That was one of the main messages delivered at a seminar on Brazil-Canada trade hosted earlier this year by the Quebec chapter of I.E.Canada in collaboration with the Brazil-Canada Chamber of Commerce.

“You need partners and introductions to them,” said Johane Séguin of Export Development Canada. “Do your homework. There’s lots to gain.” Ms. Séguin is senior advisor, Latin America, at EDC, which provides Canadian exporters with financing, insurance and bonding services as well as foreign market expertise.

“Local presence is essential,” said David Verbiwski, former consul of the Consulate General of Canada in São Paulo. “You can’t do it without a local partner. It takes people stopping by to see your customers on a regular basis and speaking to them in their own language. Executives (from head office) should also get down there at least once a year to visit customers. Business is built not only on quality and price but also on relationships.” Read the complete article here.

Minister Day Opens Doors for Canadian Business and a New Trade Office in Brazil

(Minister of International Trade)

The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today [Friday] opened a new Canadian trade office in Recife, Brazil. This new office will build on the two countries’ growing trade and investment relationship and expand Canada’s economic presence in Brazil, Latin America’s largest and most diversified economy.

“In 2008, Canadian exports to Brazil totalled $2.6 billion, an increase of an impressive 70% over the year before,” said Minister Day. “A great number of opportunities exist for Canadian companies in Brazil’s northeast in sectors such as information and communication technologies, oil and gas, agricultural technologies, health industries and science and technology. This new trade office in Recife will be the central point of contact for Canadian firms and for Brazilian businesses seeking to establish new links in these key sectors—sectors in which Canadian companies have proven to be world leaders.”

The new office will take advantage of the Pernambuco state government’s stimulus efforts specifically devoted to revitalizing the region. The state aims to attract long-term foreign investment through fiscal incentives dedicated to the sweeping development of the region and, in particular, of the Port of Suape, one of South America’s main shipping hubs and home to a blend of commerce, industry and port services.

A new trade office will be operational in Porto Alegre in September, bringing the total number of Canadian trade offices in Brazil to six. These six offices (in Belo Horizonte, Brasília, Porto Alegre, Recife, Rio de Janeiro and São Paulo) are located in states that together contain more than half of Brazil’s total population.

More details about Minister Day’s visit to Brazil may be found at: Ministerial visit to Brazil and Ecuador.