U.S Commercial Service So Paulo

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U.S Commercial Service São Paulo

• U.S Consulate General
• São Paulo, Brazil

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President Luis Inácio Lula da Silva

• Took leadership on 1st of January, 2003
• Political party Labor Party- PT
• 2002 - Won by 61.27 at the first mandate
• 2006 - Won by 60,83 at the second mandate

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Doing Business in Brazil
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Brazil Compared(Size of the EconomyUS Billion)
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Brazil Compared U.S. Exports to Latin America
(US. Billion)
Source U.S Census Bureau
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Brazils GDP US Billions
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Robust trade surpluses, with both exports and
imports on the rise.
Trade Balance, Exports and Imports (12 months
rolling)
Current Account and FDI (12 months rolling)
TB
X, M
Source Ministry of Commerce
SourceBCB
Strong trade adjustment dampening external
financing needs.
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Composition of Brazils GDP 2007
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Inflation Rate (1993 Dec/2007)
2,477
8.5
6
5.5
3.5
3
4.5
1.8
1.8
1993
1998
2002
2003
2004
2005
2006
2007
2001
Source Agência Estado
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Interest Rates

• The SELIC interest rate is currently 11.5 (per
  year)
• Mortgage loans range from 2 to 4 per month
• Businesses generally pay from 2 to 4.5 (per
  month), depending on their creditworthiness

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São Paulo and Brazil
3 of area
Brazil
22 of inhabitants
34 of GDP
41 of industrial GDP
32 of exports
São Paulo
43 of imports
68 of financial operations
Source IBGE, Seade and Banco Central do Brasil,
2005
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São Paulo
45 of world trade of medium aircraft (30-60
passengers).
 
53 of Brazilian motor vehicle-production
 
70 of Brazilian sugar and alcohol production and
exports. Worlds biggest producer of orange juice.
60 of Brazilian capital goods production.
 
40 of Brazilian refining oil production.
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47 NUSA SITES IN BRAZIL 02 NUSA SITES IN PARAGUAY

• Anápolis GO Aracajú SE Belém PA
• Belo Horizonte MG Belo Horizonte MG Betim
  MG
• Boa Vista RR Brasília DF Brasíia DF
• Campinas SP Campo Grande MS Campo Grande MS
• Contagem MG Contagem MG Caxias do Sul RS
• Cuiabá MT Curitiba PR Divinópolis MG
• Florianópolis SC Fortaleza CE Goiânia GO
• Goiânia GO João Pessoa PB Juiz de Fora MG
• Londrina PR Macae RJ Macapá AP
• Maceio AL Manaus AM Natal RN
• Novo Hamburgo RS Palmas TO Petrolina PE
• Porto Alegre RS Pouso Alegre-MG Recife PE
• Ribeirao Preto - SP Rio de Janeiro-RJ Salvador
  BA
• São Luís MA São Paulo SP Teresina PI
• Uberaba MG Uberlândia MG Uberlândia MG
• Vitória ES Vitória ES
• Asunción Ciudad del Este

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(U.S. Billion)
U.S. Census Bureau
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Best Prospects for Sales to Brazil

• Aircraft and Aircraft parts
• Chemicals/Pharma
• Electronics and Electric Power equipment
• Medical Equipment
• Oil and Gasfield Machinery Services
• Pollution Control Equipment
• Printing/graphic equipment
• Retail/consumer items
• Safety and Security Equipment
• Telcom/Computer Hardware/Software
• Transportation Equipment
• Travel and Tourism

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U.S. Brazil Trade Relations

• Brazil Business Concerns with the U.S.
• Agricultural Subsidies (cotton, ethanol,
  soybeans)
• Restrictive Tariff Rate Quotas (sugar, OJ,
  ethanol)
• U.S. Anti-dumping policies
• U.S. Business Concerns with Brazil
• High tariffs (20) complicated taxes (Up to 60
  FOB)
• Enforcement of Intellectual Property Rights
• Onerous licensing Regulatory Requirements
• Transparency, bureaucracy, different judicial
  system, slow customs

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Telecom Market US 46 billion

• Best Prospects
• Wireless equipment Services for 3G
• HDTV related software equipment (Set-top
  decoder boxes transmitters for digital radio and
  TV, encoders, multiplexes, automation systems,
  studio TV cameras, video servers, IPTV solutions,
  digital transmitters for High Definition
  Television (HDTV), microwave systems
• Concerns
• Brazil high tariffs (0-20) complicated tax
  system (Up to 60 FOB)

Source Anuario Brasileiro de Telecomunicacoes
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The telecom sector has almost 150 million fixed,
mobile, Internet and pay TV clients
2006
Fixed phones
35,4 million
Mobile users
99,9 million
Pay TV households
4,5 million
Brazil
LA - Most important countries
FIxed phones / household
Mobile phones / population
Pay TV / households
Broadband / households
Argentina, Chile, Mexico and Venezuela
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Internet OverviewThe Brazilian users spend
more time than anyone in the world
Internet users 32 million Brazilians had used
the internet, monthly in 2006. The forecast for
2007 I to reach 37 million In four years, the
number of internet users increased 67
Internet users
Broadband Access 2006 the broadband active
connections growth was 40,1. In this same
period, the service penetration jumped from 2,2
to 3 2010 it is expected 10 million
connections Time Spend monthly surfing on
web The Brazilian internet user is the one who
spend more time online 22h26 for each user in
June 2007 (USA 19h05)
Time spend in internet
Source Ibope e-Rating and IAB (Interactive
Internet Bureau)
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• CONSTRUCTION EQUIPMENT

• Total Market size US 2.2 billion/year
• Best Prospects
• Crawler lattice-boom cranes
• Cranes above 60 tons
• Tower cranes above 100 tons
• Rough terrain hydraulic cranes
• Heavy earthmoving equipment
• Large concrete plants
• Paving equipment
• Topography equipment
• Non-destructive drilling and tunneling equipment

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Leisure Boats

• Abundance of cost line over 5,000 miles long
• Less price-sensitive market
• Heavy duties as it is considered a
  non-essential market
• The market is expected to expand, accompanying
  the increased number of beach resorts being
  constructed along the northeastern coast of
  Brazil.
• Small local production X heavy presence of
  foreign companies
• Brazilian boat fleet Sao Paulo 80, Rio de
  Janeiro 9 Santa Catarina and Parana together
  with 4.

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Leisure Boats

• Accessories for the boats such as motors,
  electronics, awnings, GPS, furnishings are mostly
  imported.
• The majority of the boats are used in the ocean.
• The market is expected to expand as the number of
  beach resorts being constructed along the north
  and northeastern coasts of the country increase.
• Major shows in the segment are
• Sao Paulo Boat Show October 4-9, 2007
• Rio Boat Show TBD, 2008
•  

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• MAJOR COMPETITORS

• AGCO
• Caterpillar
• CNH (Case New Holland)
• Komatsu
• Randon
• Volvo
• Ingersol Rand
• Dynapac
• Ciber
• BobCat
• Note All above companies are manufacturing in
  Brazil.

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Points of Contact

• São Paulo Sean.Kelley_at_mail.doc.gov
• Rio de Janeiro Camille.Richardson_at_mail.doc.gov
• Brasilia Rebecca.Armand_at_mail.doc.gov
• Belo Horizonte John.Mueller_at_mail.doc.gov