ApresentaçãO Estudantes Chile 06.08.2007 [Ing.]

Departamento de Relações Internacionais e Comércio Exterior / Department of Trade and Foreign Affairs (DEREX)

Federation of Industries of the State of Sao Paulo - FIESP- FIESP

Thomaz Zanotto

Deputy General Director

Department of Trade and Foreign Affairs (DEREX)

- 2007 -


Sectorial Associations

FIESP – Federation of Industries of the State of São Paulo

CNI – National Confederation of Industries

Representative Structure of the Brazilian Industry


FIESP: Represents 132 state and national sectoral associations.

SESI: Guarantees basic education to nearly 125,000 children, youth, adults and elderly.

SENAI: Acts in the field of technical training and professional instruction (Over 1 million of subscriptions per year).

IRS: Think Tank dedicated to researching industry's issues.

Institutional


Structure

• Department of Environment – DMA

• Department of Competitiveness and Technology – DECOMTEC

• Department of Infrastructure – DEINFRA

• Department of Small and Medium-Sized Companies – DEMP

• Department of Economic Research and Studies – DEPECON

• Department of Union Affairs – DESIN

• Department of Communication and Marketing – DECOM

• Department of Regional Action – DEPAR

• Department of International Affairs and Foreign Trade – DEREX

• Department of Agribusiness – DEAGRO

• Service Center – CSER


Brazil:

An Overview


BRAZIL - 6 Positive Points:BRAZIL - 6 Positive Points:

1) Latin America’s political and institutional “stability pillar”;

2) In few years, the Brazilian GDP will reach about US$ 1 trillion;

3) US$ 150 billion in foreign reserves, has become an international creditor;

4) Probably, next year Brazil will become investment grade

5) Self-sufficient in Oil (almost 2 million bpd);

6) The biggest program of renewable energy of the world;


Brazilian Trade Flow

Source: MDICElaboratiion: DEREX

Brazilian Trade Flow (1970 - 2006)

137,5

118,4

55,1

31,3

20,12,7

55,8

20,723,0

2,5

91,4

-0,710,6

-2,90,2

46,1

-20

0

20

40

60

80

100

120

140

160

197

0

197

2

197

4

197

6

197

8

198

0

198

2

198

4

198

6

198

8

199

0

199

2

199

4

199

6

199

8

200

0

200

2

200

4

200

6

US

$ B

illio

n

Exports Imports Surplus

158*

111*

47*

* Estimate (2007)


Main Export Partners in 2006(US$ millions)

Source: MDICElaboratiion: DEREX/RI

U.S. 18%

US$ 24.679

Asia15%

US$ 20.792

E.U.22%

US$ 30.373MERCOSUR

10%US$ 13.950

Other Countries35%

US$ 47.676


Main Import Partners in 2006(US$ millions)

U.S. 16%

US$ 14.851

Asia 25%

US$ 22.886

Other Countries27%

US$ 24.553

E.U.22%

US$ 20.126MERCOSUR10%

US$ 8.968Source: MDICElaboratiion: DEREX/RI


Brazil: Global Player

Foeign Direct Investment of Latin-American Companies in 2006

Colombia US$ 1.1 Billion

2,7%Argentina

US$ 2.0 Billion 5,0%

VenezuelaUS$ 2.1 Billion

5,2%

Chile US$ 2.8 Billion

7,0%

Mexico US$ 3.9 Billion

9,7%

Brazil US$ 28.2 Billion

70,3%


Gross and Net Foreign Debt (1987 - 2006)

148,30

172,46

241,64

214,93

121,19

88,2074,70

182,27

150,99

106,35

0

50

100

150

200

250

30019

87

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

US

$ B

illio

ns

Gross Foreign Debt Net Foreign Debt

Brazilian Foreign Debt


Brazilian Foreign Reserves

Net Foreign Reserves (1963 - 2007)

147,10*

53,25

32,43

11,407,10

0,0655

11,808,68

58,73

85,16

0

20

40

60

80

100

120

140

160

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

*

US

$ B

illio

n

* Amount of foreign reserves at the end of the first semester of 2007.


Brazil: Global Player

BBB- Baa3

BB+ Ba1

BB Ba2

BB- Ba3

B+ B1

B B2

S &

P;

Fit

ch

;

R&

I

Mo

od

y´s

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Moddy s S&P Fitch R&I

Note: In 2007, position at June.Sources: S&P (Standard&Poor’s), Fitch Ratings, Moody’s and R&I (Rating and Investment Information).

Speculation Grade

Investment Grade

RATINGS


BRAZIL – 5 obstacles to be dealt with:

1) Tax Reform

2) Social security Reform

3) Labor Reform

4) Political Reform

5) Infrastructure (new legal framework for Public-Private Partnership)


Biofuels – EthanolBrazil, a pioneer in bio-fuel technology since the 1970’s, has become the world’s largest ethanol exporter. More than 16 billion liters of ethanol were processed in 2006 and Brazil’s productive capability can double in the next five years. About 40% of gasoline consumption has been replaced by ethanol, and more than 80% of the cars now sold in Brazil are flex-fuel vehicles that consume either gasoline or ethanol.

Doha RoundThe Brazilian Industry is willing to reach an ambitious and balanced agreement. FIESP’s role is to assist the Brazilian government in the identification of sensibilities and priorities in an agreement and to support technically the government, developing studies and simulations. In addition, FIESP promotes the debate among the private sector in order to assure an acceptable agreement.

EnviromentThe Department of Environment of FIESP is responsible for taking action on environmental issues, working as a link between the government and the private sector. FIESP supports the Kyoto Protocol and considers the achievement of its targets extremely important to enhance the sustainable growth of the Brazilian economy. From 2004 to 2006, Brazil has reduced the deforestation of the Amazon forest in 52%, which prevented the emission of 128 million tons of carbon dioxide, the main cause of global warming.


BRAZIL BRAZIL

XX

CHILECHILE

Bilateral Relations


Bilateral Relations

Trade Flow Between Brazil and Chile (1996-2006)

1.1961.024

896

1.248 1.355 1.465

1.887

2.556

3.6243.914

649821

1.746

1.0661.055

2.871

1.399

968 844719817

974920

177135511

223 208 280

1.043

1.878

1.157816

1.9752.170

1.841 1.615

2.216 2.199 2.114

2.708

3.955

5.370

6.784

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

US

$ M

illi

on

Exports Imports Surplus Trade FlowSource: MDICElaboration: DEREX / RI


Bilateral Relations

• In April 2007, FIESP and SOFOFA signed a Memorandum of Understanding in order to foster trade and promote investments in both countries. The National Confederation of Industries of Brazil has joined the terms of the document.

•Brazil has a favorable trade surplus with Chile. In 2006, the surplus achieved US$ 1,04 billion. The trade flow between the two countries reached US$ 6,8 billion in 2006, a growth of 27% in relation to 2005.

•The main products exported by Brazil to Chile are from the industrial sector, in which Brazil has a broad surplus that reached US$ 1,5 billion in 2006. These products are vehicles, auto parts, cel phone parts, cel phones and chemicals.

•On the other hand, Brazil has a deficit in minerals, approximately 70% of Brazilian imports from Chile are products of copper ore.

•In April 2007, Presidents Lula and Michelle Bachelet signed an agreement to enhance energetic cooperation, specially with reference to biofuels production. Moreover, the two Heads of State signed several agreements to promote trade and mutual investments, as well as scientific, technological and environmental cooperation.


Contacts

International Affairs and International Affairs and Foreign Trade DepartmentForeign Trade Department

(DEREX)(DEREX)

Federation of industries of the State of São Federation of industries of the State of São

Paulo (FIESP)Paulo (FIESP)

Av.Paulista, 1313 – 4th floorAv.Paulista, 1313 – 4th floor

Phone: (55 11) 3549-4531 / 3549-4365

Fax: (55 11) 3549-4342

E.Mail: E.Mail: [email protected]@fiesp.org.br

Home PageHome Pagewww.fiesp.com.brwww.fiesp.com.br

ApresentaçãO Estudantes Chile 06.08.2007 [Ing.]

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