Brazil´s Foreign Trade and CNI´s...
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Transcript of Brazil´s Foreign Trade and CNI´s...
Brazil´s Foreign Trade and CNI´s Agenda
Diego Bonomo
Executive Manager
Foreign Trade Unit – CNI
International Area
Foreign Trade Unit
• Trade-related services
• Trade policy and trade facilitation
• Business diplomacy
• International relations
• International cooperation
International Negotiations
• Trade agreements agenda
• Services agenda for manufacturing competitiveness
• Brazilian investments abroad
• Trade remedies
International Business Centers
• International Business Centers Network: Promotes Brazilian companies internationalization by offering trade-related services.
• Presence in all 27 Brazilian states.
• Since 1998.
• Network composed by 305 analysts and experts.
• More than 15,000 products and services were delivered in 2013.
• Business Training
• Commercial Intelligence
• Business Promotion
• Internationalization Programs
• Certificate of Origin
• Consultancy and Advisory Services
• ATA Carnet Emission
• Support to Foreign Investors
Services to Foster Foreign Trade
International Business Centers
Trade Balance
73,2 96,7
118,5 137,8
160,6
197,9
153,0
201,9
256,0 242,6 242,2
48,3 62,8 73,6
91,4 120,6
173,0
127,7
181,8
226,2 223,2 239,6
24,9 33,8 44,9 46,5 40,0 25,0 25,3 20,1 29,8 19,4 2,6
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Exports Imports Trade balance
China 19%
USA 10%
Argentina 8%
Netherlands 7% Japan
3%
Germany 3%
Others 50%
Total exports by partner (2013)
Brazil`s Trade Balance US$ billion
China 16%
USA 15%
Argentina 7%
Germany 6%
Nigeria 4%
South Korea 4%
Other 48%
Total imports by partner (2013)
Manufactured Goods Trade Balance
Argentina 19%
USA 14%
Netherlands 9%
Panama 5%
Mexico 4%
Other 49%
Manufactured exports by partners (2013)
39,8 53,1 65,4 75,0 83,9 92,7 67,3 79,6
92,3 90,7 93,1
37,8 47,7 56,8 69,9
93,2
132,5 103,8
150,8
184,8 184,9 198,1
2,0 5,4 8,6 5,1 -9,2
-39,8 -36,5 -71,2
-92,5 -94,2
-105,0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Exports Imports Trade balance
Brazil`s Trade Balance US$ billion
China 18%
USA 17%
Germany 7%
Argentina 7%
South Korea 5%
Japan 4%
Other 42%
Manufactured Imports by partners (2013)
Trade Balance - Total Trade Balance – Manufactured Goods
-11,3
-8,8
-8,6
-6,4
-4,8
-3,2
-3,1
-3,1
-2,6
-1,6
-0,9
0,2
0,5
0,9
3,2
3,6
8,7
15,0
-20,0 -10,0 0,0 10,0 20,0
United States
Nigeria
Germany
Africa
South Korea
India
European Union
France
Italy
Mexico
Spain
Chile
United Kingdom
Japan
Argentina
Middle East
China
Netherlands
*US$ billion
Trade balance – partners (2013)
-34,8
-31,0
-19,8
-12,2
-8,9
-6,1
-5,8
-5,7
-5,5
-3,6
-2,0
-1,9
-1,7
-1,2
-0,3
4,1
4,4
5,7
-40,0 -30,0 -20,0 -10,0 0,0 10,0
China
European Union
United States
Germany
South Korea
Japan
India
Italy
France
Spain
United Kingdom
Mexico
Switzerland
Middle East
Africa
Argentina
Panama
Netherlands
Manufactured goods 83%
Semi manufactured goods
3%
Primary goods 14%
Manufactured goods 39%
Semimanufaturados 13%
Primary goods 48%
Brazilian trade by products
Description US$ Billions Part.(%)
Primary goods 113.0 100.0
Iron ore 32.5 28.7
Soybean 22.8 20.2
Crude Oil 13.0 11.5
Semi manufactured goods 30.5 100.0
Sugar Cane 10.0 32.9
Pulp 4.7 15.4
Semimanufactured goods of iron or steel 3.8 12.6
Manufactured goods 93.1 100.0
Automobiles 5.5 5.9
Airplanes 3.8 4.1
Auto parts 3.3 3.6
Source: Secex/MDIC.
Brazilian exports by main products and groups - 2013
Description US$ Billions Part.(%)
Primary goods 33.3 100.0
Crude oil 16.3 49.0
Natural gas 3.9 11.6
Wheat 2.4 7.2
Semi manufactured goods 8.2 100.0
Potassium chloride 3.3 40.6
Copper cathode 1.8 22.2
Syntetic rubber 0.7 8.7
Manufactured goods 198.1 100.0
Automobiles 9.1 4.6
Auto parts 8.3 4.2
Medicines for humans and animals 6.7 3.4
Brazilian Imports by main products and groups - 2013
The largest part of the FDI Stock in 2010 was directed to services (44%) and manufacturing (40%)
Investments in Brazil
According to the last UNCTAD data, in 2012, Brazil was the 4th country with the largest influx of FDI in the World
Country US$ billion Part%
USA 109.7 20.3%
Spain 85.4 15.8%
Belgium 50.3 9.3%
United Kingdom 41.6 7.7%
France 30.7 5.7%
Germany 30.4 5.6%
Japan 29.0 5.4%
Italy 18.2 3.4%
Mexico 15.7 2.9%
Netherlands 14.9 2.8%
Canada 14.4 2.7%
Total 541.0 100.0%
Source: BACEN
FDI Stock by Final investor partner - 2010
Brazilian investments abroad
4
8
8
10
17
19
35
53
Middle East
China
Other
Other Asian
Africa
EU
NAFTA
South america
Brazilian multinational investments abroad by location
US$ billion %
Agriculture, livestock and mineral mining 61.9 25.1
Metalic mineral mining 42.8 17.3
Oil and gas extraction 12.3 5.0
Industry 44.7 18.1
Metallurgy 15.2 6.1
Food 16.9 6.8
Non-metallic mineral products 8.1 3.3
Chemical products 0.7 0.3
Sevices 140.5 56.9
Financial services 97.9 39.6
Infraestructure services 4.3 1.7
Total 247.2 100
Fonte: BACEN
Brazilian Investments Stock:
Description2012
Agenda on Trade and Investment Policies
1. Trade Agreements 2. Trade Facilitation 3. Brazilian Investments Abroad 4. Trade in Services 5. Other Trade Policy Issues
1. Trade Agreements
CNI supports deeper integration of Brazil to the world economy through trade agreements. For CNI, Brazil should have a multifaceted strategy, covering bilateral, regional and multilateral agreements (WTO DDA).
Multilateral: reduce agricultural and industrial subsidies, non tariff barriers, improve trade remedies agreements, eliminate export restrictions and others; Regional: deepen agreements, including non tariff measures, services, investments, procurement. Foster energy and infrastructure agenda; Bilateral: negotiate agreements with countries outside the region. The priority is the European Union – Mercosul Agreement.
Agenda and Suggestions
2. Trade Facilitation
TF policies are crucial to reduce export and import clearance and release time. CNI priority is to implement the provisions of the recently approved WTO Trade Facilitation Agreement.
Single Window: harmonize and integrate customs-related agencies procedures to increase efficiency and decrease costs and time. Imports currently take around 17 days and exports 13 days; Authorized Economic Operators: implement Brazil´s mechanism to include more companies and to harmonize with other countries’ mechanisms;
Agenda and Suggestions
3. Brazilian Investments Abroad
Investing abroad contributes to increase Brazilian exports, innovation and companies´ productivity. CNI developed an ambitious agenda in this area that covers four topics: taxation, finance, diplomacy and innovation.
Agenda and Suggestions
Taxation: improve Brazil´s multinational companies profit tax regime and celebrate more Bilateral Tax Treaties (Brazil has only 29 agreements); Economic Diplomacy: increase diplomatic support to Brazilian companies abroad to reduce investment barriers and celebrate Bilateral Investment Treaties.
3. Brazilian Investments Abroad
Country Companies United States 13 Australia 4 Colombia 4 Germany 3 Russia 3 Venezuela 3 Paraguay 2 United Kingdom 2 Switzerland 2 Uruguay 2 Angola 1 Saudi Arabia 1 Singapore 1 United Arabic Emirates 1 Guinea 1 Mozambique 1
Brazilian Multinational Companies Priorities (CNI´s Survey of 2013)
Bilateral Tax Treaties
Country / Region Companies
South America 25
NAFTA 12
China 5
Africa 5
Germany 2
Russia 2
India 2
Australia 1
Turkey 1
Indonesia 1
Bilateral Investment Treaties
4. Trade in Services
Services have a growing importance for manufacturing competitiveness in Brazil. Services represent around 55% of industrial production value-added and 40% of Brazil´s exports value-added.
Services agreements: engage in multilateral, regional (South and Latin America), bilateral and plurilateral services agreements aiming specifically at the liberalization of strategic services for the manufacturing sector. Services imports: reduce tax burden on services imports in Brazil, currently around 50%.
Agenda and Suggestions
5. Other Trade Issues
CNI has also an internal agenda to reform some of the Brazilian trade support instruments. Some of the main areas are: institutional reform, trade finance and tax credits.
Trade Court: establishment of specialized trade courts in Brazil. Tax credits and trade finance: improve guarantees for trade finance to enable more companies to use public credit, and accelerate tax restitution.
Agenda and Suggestions
