Importing and Exporting
In the last decades, Brazil has gone from being essentially a basic goods provider to a country with an extremely diversified industrial economy. In the field of science and technology, for example, the country has climbed from 28th to 17th place among countries with a relevant scientific production, thanks to the presence of over 79 thousand researchers and scholarship students (2004) operating in universities and the private business sector.
In 2004, exports reached US$ 100 billion, an all-time record for the period. Trade surplus also reached a record high of US$ 33,6 billion. In 2003, Brazilian exports had reached a Record US$ 73 billion, a 21% increase compared to the same period in 2002. This performance is more impressive if compared to the growth expectation for world trade this year, of only 2.9%.
Trade surplus figures, which surpassed US$ 24.5 billion in 2003, have become essential to reduce the economy’s external vulnerability and improve the balance of payments. In addition, important steps have been taken in order to increase and diversify exports. Among other measures, the Office for the Promotion of Brazilian Exports (Apex-Brazil) was created, with the resources and the flexibility to carry out the commercial promotion of Brazil to foreign markets.
Windows of opportunity
In order to balance the economy, the country recently carried out reforms to its social security (state and retirement pensions) and tax systems, with the noteworthy addition of a Fiscal Responsibility Law to control public expenditure at federal, state and municipal government levels. With a focus on administration efficiency, policies were created to encourage exports, industry and trade, thus creating “windows of opportunity” for local and international investors and producers.
Support for the productive sector has been simplified at all levels; Congress and the Judiciary Branch can actively and independently carry out the evaluation of rules and regulations. Among the main measures taken to stimulate the sector are the reduction of up to 30% on the Manufactured Products Tax (IPI) and the investment of R$2 billion on road cargo transportation fleets, to improve distribution logistics.
Information and business
Further resources guarantee the propagation of business and information telecenters, providing important data for businessmen and entrepreneurs. The Policy for Industry, Technology and Foreign Trade, at the forefront of the sector, for its part, invests R$ 14.5 billion in specific sectors, following the example of the software and semiconductors, pharmaceutical and medicine products, and capital goods sectors.
With these alterations in place, Brazil has reduced its vulnerability: the country imports 9% of the oil destined for its own use; it has halved its internal debt through exchange rate-linked certificates and has increased exports by an average 15% a year. The exchange rate does not create industrial or inflationary pressure – inflation stands at a current 7% a year - and avoids a liquidity crisis.
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