It has been attested by specialists that the depreciation of the Brazilian real made the country’s account deficit to improve. On the other hand, this depreciation of the local currency also represents a help to boost Brazil’s export competitiveness.
If you are planning on importing goods from Brazil, this current instability of the country’s political and economical areas might turn the present moment into the right time to start doing business in Brazil.
However South America’s largest economy and market is known for being among the most challenging nations in the world to do business, having local expertise in the country will guarantee the success of your overseas venture.
Being aware of that, Doracorp’s team listed some things you must consider before making the leap.
Key hints to guarantee your success when acquiring Brazil’s exports
As mentioned on the previous post, Brazil is very abundant in agricultural, mineral, and energy resources. These advantages have permitted the country to develop diversified industrial and economic bases. With an economically active population of 109 million people, one of Brazil’s main competitive advantages lies on the Brazilian consumer confidence increase. This consumption growth boosted some economic sectors and gave producers and manufacturers more capital availability either to invest in new areas, to enhance their manufacturing or to improve their products to make them competitive in foreign markets.
Brazil’s governors promote many incentives in order to promoting Brazilian exports. These incentives vary according to the state from which the good is originated, to the purpose of its use, to the type and classification of the product, etc. It is essential to be well informed on everything about the goods you intend to import from Brazil and check all the tariffs and taxes they are exempted of and also the ones that must be paid.
Brazil is still a developing nation. Even though this condition often means that several areas of the economy remain underdeveloped, it can also be interpreted as a precursor for ‘high growth levels’. If you plan on investing in Brazilian acquisitions, in Brazilian corporations or to move your company basis to the country, probably one of the many growth incentive programs that the Brazilian government promotes might help you a lot.
Financing and Export Credit Guarantee
In Brazil there are many measures to stimulate exports. Low-cost financing for capital investments for enterprises and financing incentives for production of goods and services that will be offered in international markets are promoted by the Brazilian government. There is even a list of products approved by the’ Ministry of Development, Industry and Foreign Trade’ in which approved products by eligible firms can be found. Investment opportunities and export incentives are vast, but it is also important to be really well informed about the possible bureaucratic barriers you might have to deal with.
Local Companies Preference
Brazil’s varied economy attracts many companies to move into the country. At present 400 of the world’s 500 largest companies (e.g. Rolls Royce, BG Group, Shell, among others) operate in Brazil. To fight the Brazilians preference for local companies some corporations have been choosing to do so in partnership with local businesses. This makes the transition less impacting for consumers at the same time that it gives the company real insight on local economy and market.
Brazil has been slowed by the lack of investment on new technology during its development, but now there are joint efforts to improve the country’s infrastructure. In fact, many technology start-ups have grabbed the headlines lately and large corporations have also compromised to dedicate their efforts to help in the country’s economy improvement. This new attitude resulted on technology innovations, an increased production volume and much more sophisticated goods that are equal in quality in comparison to the ones from foreign origin but offer a much attractive
Although each of Brazil’s target markets are also facing constraints, which will limit the Brazilian export, other conditions, such as weaker Real (BRL) and greater government support, are certainly going to benefit Brazil to export out of its slowdown.
We have the local knowledge to help you much more, whether you want to streamline your Brazilian operations, or set up in Brazil talk to us and let us make your imports of Brazilian goods a success.