Despite current economic challenges, Brazil continues to offer strong opportunities for U.S. exporters. Brazil's investment grade economy is the 10th largest in the world, with a GDP of $1.5 trillion. Brazil represents approximately half of South America's territory and economy.
Several of Brazil's largest companies are publicly traded on the NYSE including Petrobras (energy), Embraer (aerospace), and Vale (mining). Brazil has been in the spotlight in the United States quite a bit over the last two years. Most of Brazil's allure for US exporters is due to its geographical proximity, booming business opportunities, warm climate and friendly people.
U.S. Exports to Latin America were on the rise in 2006. Notice how Venezuela and Colombia are similar markets in size to Chile. In Venezuela’s case, U.S. exports are increasing due to higher oil revenues and economic activity.
That’s an hypothetical cost buildup for an imported machine, shipped in a 20 foot container, from Miami to the Port of Santos. Illustrates how taxes and fees are calculated. It also illustrates the impact of importing costs on the landed price of the product in the Brazilian market. Some taxes such as Import duty, ICMS, and freight, varies depending on the state or on the product. Note that despite the high mark ups there is a market for new and cutting edge products from the US – particularly electronics. For examples, IPODs sell in duty free shops for US$300 and an Oster chrome blender that would normally sell in the US for US$70, sells here for over $300.
Camille: Here are the main points of contact in all four cities. We are happy to answer any questions you may have.