Governmental subsidies to foreign companies in Belgium looking for access to European markets

On March 5th 2012, in Curitiba Brazil, Thierry Muschang, a Luxembourg PwC Director, presented the beneficial aspects of the project for attracting foreign companies to the Belgium / Louxembourg region, constructed in partnership with IDELUX, a government agency that was represented at the meeting by Joel Marinozzi, the Business Development Manager from the Economic Development Division, while in a mission in Brazil. The meeting was organized by the local Center for International Business (CIN) at the Federation of Industries of the State of Paraná (FIEP) and had the support of the Consulate General of Belgium in São Paulo, Brazil.

Located at the heart of Europe, the region of Belgium/Luxembourg means a strategic gateway to the European markets, very competitive in the international logistics point of view. This advantage is enhanced by the local government subsidies offered to foreign companies and specially start-ups who wish to install a regional office and/or a regional manufacturing distribution warehouse.

South African trade mission to Brazil

The South African delegation on a trade mission to Brazil was receptioned in the city of Curitiba this past week by the local trade association (ACP) in partnership with the Federation of Industries in the State of Paraná (FIEP). The mission received the support of the consulate general of South Africa in São Paulo and the Department of Trade and Industry of South Africa, and was composed by delegates from the wine industry, energy, civil engineering, architecture and tourism sectors.

Many of the delegates, specialy from the construction sector, were involved in the preparation for the World Cup 2010 in South Africa, and had the goal of identifying business opportunities in Brazil in order to transfer know how for the preparation of the upcoming World Cup 2014. Juliana Michelon Alvarenga from Aldeota Global, accompained by Wagner Giovani Silva, a technology manager from SOCIESC, a regional educational institution for technology development, met with a couple of the companies during the business rounds.

During the first meeting with Mr Fumani Dlomu, the director for Avuxeni Construction CC, a company from Highveld that provides electrical engineering services, the subject addressed was the solar energy market in SouthAfrica. According to Mr Dlomu, the sector is expanding and continuous growth is foreseen specially for low income housing programs. The equipment is today imported from China and specially Korea, being the later the equipments with better efficiency than chinese solar technology. He also mentioned that it is very promising to promote transfer of technology to South Africa. Aldeota Global also presented information on the Ex-Im Bank financing alternatives for importing US solar energy systems into Africa.

The last meeting was with The Western Cape Investment and Trade Promotion Agency of South Africa (WESGRO). The head of international trade and development, Mrs Seanne Kube, mentioned her concerns about how tough the Brazilian market is when in their attempts to conquer market share with the South African products. She also spoke about the well developed medicine technology capacity of the country and how the first open heart transplant was sucessfully executed in South Africa.

Aldeota Global also presented a pac to the members of the delegation with a document containing the highlights from the study recently published by The World Bank in partnership with IPEA, the Institute of Applied Economic Research, entitled Bridging the Atlantic, Brazil and Sub-Saharan Africa: South-south partnership for growth. The highlights were on the investment and economic complementarities between Brazil and African countries.

Visit of Asia-Oceania Ambassadors

Curitiba received the visit of Ambassadors from the Asia-Oceania group last Thursday, March 29th. Their agenda began with a breakfast event at the local trade association (ACP), and we were there to reception the delegation. The visit was coordinated by Mr. Brett Hacket, the Ambassador of Australia in Brazil, followed by the Ambassadors of Korea, the Philippines, Indonesia, Malaysia, New Zealand and Thailand. Each one of their speeches was carefully listened to and the intentions and opportunities of bilateral cooperation between Brazil and each one of these countries are listed below, from the perspective of the foreign Ambassadors.

It is evident that Brazil is becoming a center point for international relations in Latin America, but it is impressive how foreign delegations come with exclusive intentions of selling products and services to Brazil. This is only natural, of course, but from a strategic point of view for the internationalization of markets, it is not sustainable (if this is the correct and convenient word to mention). Not all manufactured products will have opportunities in the Brazilian market (or foreign markets as a whole). Countries have internal industrial capacity themselves. From a broad perspective, countries should not only consider selling products or services, but instead, transfering manufacturing facilities or business units as part of constructing economic complementary strategies for the globalization of international markets.

Australia, Ambassador Brett Hacket:
Mr. Brett Hacket started his speech by stating that “The World has discovered Brazil.” In terms of opportunities for bilateral cooperation between Australia and Brazil, Mr. Hacket outlined Infrastructure, manufacturing and agriculture as key sectors. In technology, research and innovation, he believes that the center of bilateral relations must be education. The Australian government has made available one thousand places within their higher education institutions for the program Science without Borders, and this number is foreseen to double within the next couple of months.

Republic of Korea, Ambassador Kyong-Yong KIM:
The Minister of Foreign Relations, Mr. Kyong-Yong KIM spoke about the FTAs (Free Trade Agreements) that his country has in the region, as an advantage for business between Brazil and his country, also undergoing negotiation for FTA with Japan and China. The main areas of interest are science and technical, and industrial cooperation. The Minister also mentioned that Brazil is very important in the context of landrace for agriculture.

Philippines, Ambassador Eva G. Betita:
Brazil and the Philippines hold a combined 300 million consumer market for manufacturing trade exchange. Business Process Outsourcing (BPO) is offered in the Philippines. Vale, a Brazilian company in the mining industry is present in the country for copper and gold extraction. International Terminal Container Services, a company from the Philippines is present in the port of Recife, Brazil. The Ambassador also mentioned how Public-Private Partnerships (PPP) is an experience that has led to governance improvement in her country. She also expressed how the Philippines has shown growing interest in the Brazilian market and made many visits, but the country is still waiting for the return from the Brazilian side.

Indonesia, Ambassador Sudaryomo Hartosudarno:
According to Mr Hartosudarno, Brazil and Indonesia already have significant relations in the tourism sector, because of the inflow of Brazilian tourists in the region, in special visiting Bali. He also outlined the Indonesian industry on Oil Palm and musical instruments as relevant activities from bilateral cooperation.

Malaysia, Ambassador Sudha Devi Vasudevan:
Mrs. Vasudevan mentioned the internal reforms in Malaysia and the cultural similarities between her country and Brazil. She mentioned as relevant sectors for cooperation manufacturing of parts for industry of oil and gas, ICT and multimedia, pharmaceuticals, construction material, palm oil, tourism and education services. Also, Malaysia has FTAs with Japan, Australia, New Zealand and China.

New Zealand, Ambassador Jeffrey Mcalister:
Investments and services are more important for bilateral cooperation between Brazil and New Zealand. The main sectors are agriculture, livestock, dairy, forests, gastronomy and equipment. There is a high flow of Brazilian students to New Zealand, but they wish to put more of these students in high education institutes and not just only for language studies as it is today. For this, NZ is also preparing for the Science without Borders program. Currently, NZ and Brazil are negotiating a revision on their flight schedule, trying to establish a direct flight between both countries. Mr. Mcalister also showed his concerns on the growing of protectionism in Brazil and mentioned that a FTA has been proposed between New Zealand and Australia, and Mercosul.

Thailand, Ambassador Tharit Charungvat:
Thailand is an exporter for rice, rubber, sugar and tapioca, among other products. Relevant sectors is tourism and the airport of Bangkok means possible experience exchange. Thailand has twelve expositions in order to put buyers and sellers together in one place, and has a very attractive currency exchange rate for the Brazilian currency Real.

Forum Brazil – Africa for Cooperation and Development

Diplomatic delegations, government authorities academic body and financial institutions debated at the hotel Gran Marquise, Fortaleza, Brasil, on May 9-11 2012, on bilateral and multilateral relations between Brasil and Africa. The event was organized by Universidade de Fortaleza, through its post graduate program on business administration.

  • Infraestructure and development of commercial relations were the main objectives of the speeches on May 10th.
  • Necessity of logistic bounding Northeast Brazil and Angola by sea and air transportation.
  • Brazil and Angola recently signed a 2 billion dollar exchange budget account, garanteed by the bilateral oil deposit accounts.
  • Transfer of technology still seems the best investment opportunities for both countries, in relations to the developed world countries.
  • Universal access to electric energy in Africa is still a challenge that Brazil recently solved in its social system. This may be the main know how in need of exchange between Brazil and Africa, through PRODEEM, PROINFA, Luz Para Todos programs from MME – Ministry of Mines and Energy of Brasil.