This document provides an overview guide for doing business in Latin America. It includes key economic data for countries in the region such as population, GDP, GDP growth rate, GDP per capita, inflation rate and unemployment rate. The guide then provides individual country profiles for Brazil, Mexico, Colombia, Argentina, Peru, Venezuela, Chile, Cuba and Panama. Each country profile outlines information for trading with that country, business opportunities, key industries and visiting the country. The document is intended to help businesses expand into Latin American markets.
2. According to the Harvard Business Review, “Latin America is a
modern marketer’s dream, and not just because of its size. By
2020, nearly one out of every 10 dollars in the world economy
will come from Latin America. The region will soon represent
10% of the global population and 9% of global GDP, with 640
million customers. It also has the fourth-largest mobile market
in the world, with social media adoption even surpassing that of
the United States”
About Mercatrade.com
Mercatrade was created with a simple mission in mind: to provi-
de effective TRADE MARKETING solutions for businesses that
wish to grow their sales in Latin America. Mercatrade fulfills its
mission by bringing its users with high quality business informa-
tion about Import and export in the region. As trade marketing
experts, we also build digital marketing strategies to help you
find new B2B clients, execute your communication campaigns
and achieve maximum ROI of your brand assets in Latin Ameri-
ca.
3. Chapter 1 Key Economic Data
Population
Total GDP
GDP Growth Rate
GDP per capita
Inflation
Unemployment Rate
Chapter 2 Country Profiles
How to do business with Brazil
1- Brazil in a Nutshell
2- Brazil’s Economy
2.1- GDP Figures (2015), The World Factbook
2.2- Economic Outlook
2.3- Trade and Economic Challenges
3- Trading With Brazil
3.1- Trading Partners
3.2- Brazil's Imports and Exports
3.3 - Trading Infrastructure
3.4 - Time and Cost to Import into Brazil
3.5 - Tax Free Zones
3.6 - Brazil Free Trade Agreements
4- Brazil’s Business Opportunities
4.1 - Investment Grade
4.2 - Significant Projects
4.3 – Infrastructure
4.4 - Largest Employers
4.5 - General Business Taxes
5- Brazil’s Key Industries
5.1 - Largest Industries
5.2 – Brazil’s Technology and Connectivity
5.3 - E-Commerce and Startups
6- Visiting Brazil
6.1 - Business and Cultural Etiquette
6.2 - Primary Tourist Attractions
6.3 – Safety
6.4 - Public National Holidays
6.5 - Fun and Interesting Facts
6.6 - The Foodie Scene
6.7 – The Media
6.8 - Emergency Numbers
6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
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4. How To Do Business With Mexico
1- Mexico in a Nutshell
2- Mexico’s Economy
2.1- GDP Figures (2015), The World Factbook
2.2- Economic Outlook
2.3- Trade and Economic Challenges
3- Trading With Mexico
3.1- Trading Partners
3.2- Mexico‘s Imports and Exports
3.3 - Trading Infrastructure
3.4 - Time and Cost to Import into Mexico
3.5 - Tax Free Zones
3.6 - Mexico Free Trade Agreements
4- Mexico’s Business Opportunities
4.1 - Investment Grade
4.2 - Significant Projects
4.3 – Infrastructure
4.4 - Largest Employers
4.5 - General Business Taxes
5- Mexico’s Key Industries
5.1 - Largest Industries
5.2 – Mexico’s Technology and Connectivity
5.3 - E-Commerce and Startups
6- Visiting Mexico
6.1 - Business and Cultural Etiquette
6.2 - Primary Tourist Attractions
6.3 – Safety
6.4 - Public National Holidays
6.5 - Fun and Interesting Facts
6.6 - The Foodie Scene
6.7 – The Media
6.8 - Emergency Numbers
6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
How To Do Business With Colombia
1- Colombia in a Nutshell
2- Colombia’s Economy
2.1- GDP Figures (2015), The World Factbook
2.2- Economic Outlook
2.3- Trade and Economic Challenges
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5. 3-Trading With Colombia
3.1- Trading Partners
3.2- Colombia ‘s Imports and Exports
3.3 - Trading Infrastructure
3.4 - Time and Cost to Import into Colombia
3.5 - Tax Free Zones
3.6 - Colombia Free Trade Agreements
4- Colombia’s Business Opportunities
4.1 - Investment Grade
4.2 - Significant Projects
4.3 – Infrastructure
4.4 - Largest Employers
4.5 - General Business Taxes
5- Colombia’s Key Industries
5.1 - Largest Industries
5.2 – Colombia’s Technology and Connectivity
5.3 - E-Commerce and Startups
6- Visiting Colombia
6.1 - Business and Cultural Etiquette
6.2 - Primary Tourist Attractions
6.3 – Safety
6.4 - Public National Holidays
6.5 - Fun and Interesting Facts
6.6 - The Foodie Scene
6.7 – The Media
6.8 - Emergency Numbers
6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
How To Do Business With Argentina
1- Argentina in a Nutshell
2- Argentina’s Economy
2.1- GDP Figures (2015), The World Factbook
2.2- Economic Outlook
2.3- Trade and Economic Challenges
3- Trading With Argentina
3.1- Trading Partners
3.2- Argentina ‘s Imports and Exports
3.3 - Trading Infrastructure
3.4 - Time and Cost to Import into Argentina
3.5 - Tax Free Zones
3.6 - Argentina Free Trade Agreements
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6. 4- Argentina’s Business Opportunities
4.1 - Investment Grade
4.2 - Significant Projects
4.3 – Infrastructure
4.4 - Largest Employers
4.5 - General Business Taxes
5- Argentina’s Key Industries
5.1 - Largest Industries
5.2 – Argentina’s Technology and Connectivity
5.3 - E-Commerce and Startups
6- Visiting Argentina
6.1 - Business and Cultural Etiquette
6.2 - Primary Tourist Attractions
6.3 – Safety
6.4 - Public National Holidays
6.5 - Fun and Interesting Facts
6.6 - The Foodie Scene
6.7 – The Media
6.8 - Emergency Numbers
6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
How To Do Business With Peru
1- Peru in a Nutshell
2- Peru’s Economy
2.1- GDP Figures (2015), The World Factbook
2.2- Economic Outlook
2.3- Trade and Economic Challenges
3- Trading With Peru
3.1- Trading Partners
3.2- Peru ‘s Imports and Exports
3.3 - Trading Infrastructure
3.4 - Time and Cost to Import into Peru
3.5 - Tax Free Zones
3.6 - Peru Free Trade Agreements
4- Peru’s Business Opportunities
4.1 - Investment Grade
4.2 - Significant Projects
4.3 – Infrastructure
4.4 - Largest Employers
4.5 - General Business Taxes
5- Peru’s Key Industries
5.1 - Largest Industries
5.2 – Peru’s Technology and Connectivity
5.3 - E-Commerce and Startups
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7. 6- Visiting Peru
6.1 - Business and Cultural Etiquette
6.2 - Primary Tourist Attractions
6.3 – Safety
6.4 - Public National Holidays
6.5 - Fun and Interesting Facts
6.6 - The Foodie Scene
6.7 – The Media
6.8 - Emergency Numbers
6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
How To Do Business With Venezuela
1- Venezuela in a Nutshell
2- Venezuela’s Economy
2.1- GDP Figures (2015), The World Factbook
2.2- Economic Outlook
2.3- Trade and Economic Challenges
3- Trading With Venezuela
3.1- Trading Partners
3.2- Venezuela ‘s Imports and Exports
3.3 - Trading Infrastructure
3.4 - Time and Cost to Import into Venezuela
3.5 - Tax Free Zones
3.6 - Venezuela Free Trade Agreements
4- Venezuela’s Business Opportunities
4.1 - Investment Grade
4.2 - Significant Projects
4.3 – Infrastructure
4.4 - Largest Employers
4.5 - General Business Taxes
5- Venezuela’s Key Industries
5.1 - Largest Industries
5.2 – Venezuela’s Technology and Connectivity
5.3 - E-Commerce and Startups
6- Visiting Venezuela
6.1 - Business and Cultural Etiquette
6.2 - Primary Tourist Attractions
6.3 – Safety
6.4 - Public National Holidays
6.5 - Fun and Interesting Facts
6.6 - The Foodie Scene
6.7 – The Media
6.8 - Emergency Numbers
6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
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8. How To Do Business With Chile
1- Chile in a Nutshell
2- Chile’s Economy
2.1- GDP Figures (2015), The World Factbook
2.2- Economic Outlook
2.3- Trade and Economic Challenges
3- Trading With Chile
3.1- Trading Partners
3.2- Chile ‘s Imports and Exports
3.3 - Trading Infrastructure
3.4 - Time and Cost to Import into Chile
3.5 - Tax Free Zones
3.6 - Chile Free Trade Agreements
4- Chile’s Business Opportunities
4.1 - Investment Grade
4.2 - Significant Projects
4.3 – Infrastructure
4.4 - Largest Employers
4.5 - General Business Taxes
5- Chile’s Key Industries
5.1 - Largest Industries
5.2 – Chile’s Technology and Connectivity
5.3 - E-Commerce and Startups
6- Visiting Chile
6.1 - Business and Cultural Etiquette
6.2 - Primary Tourist Attractions
6.3 – Safety
6.4 - Public National Holidays
6.5 - Fun and Interesting Facts
6.6 - The Foodie Scene
6.7 – The Media
6.8 - Emergency Numbers
6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
How To Do Business With Cuba
1- Cuba in a Nutshell
2- Cuba’s Economy
2.1- GDP Figures (2015), The World Factbook
2.2- Economic Outlook
2.3- Trade and Economic Challenges
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9. 3- Trading With Cuba
3.1- Trading Partners
3.2- Cuba ‘s Imports and Exports
3.3 - Trading Infrastructure
3.4 - Time and Cost to Import into Cuba
3.5 - Tax Free Zones
3.6 - Cuba Free Trade Agreements
4- Cuba’s Business Opportunities
4.1 - Investment Grade
4.2 - Significant Projects
4.3 – Infrastructure
4.4 - Largest Employers
4.5 - General Business Taxes
5- Cuba’s Key Industries
5.1 - Largest Industries
5.2 – Cuba’s Technology and Connectivity
5.3 - E-Commerce and Startups
6- Visiting Cuba
6.1 - Business and Cultural Etiquette
6.2 - Primary Tourist Attractions
6.3 – Safety
6.4 - Public National Holidays
6.5 - Fun and Interesting Facts
6.6 - The Foodie Scene
6.7 – The Media
6.8 - Emergency Numbers
6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
How To Do Business With Panama
1- Panama in a Nutshell
2- Panama’s Economy
2.1- GDP Figures (2015), The World Factbook
2.2- Economic Outlook
2.3- Trade and Economic Challenges
3- Trading With Panama
3.1- Trading Partners
3.2- Panama ‘s Imports and Exports
3.3 - Trading Infrastructure
3.4 - Time and Cost to Import into Panama
3.5 - Tax Free Zones
3.6 - Panama Free Trade Agreements
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10. 4- Panama’s Business Opportunities
4.1 - Investment Grade
4.2 - Significant Projects
4.3 – Infrastructure
4.4 - Largest Employers
4.5 - General Business Taxes
5- Panama’s Key Industries
5.1 - Largest Industries
5.2 – Panama’s Technology and Connectivity
5.3 - E-Commerce and Startups
6- Visiting Panama
6.1 - Business and Cultural Etiquette
6.2 - Primary Tourist Attractions
6.3 – Safety
6.4 - Public National Holidays
6.5 - Fun and Interesting Facts
6.6 - The Foodie Scene
6.7 – The Media
6.8 - Emergency Numbers
6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
Sources
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15. GDP PER CAPITA
CHILE ARGENTINA PANAMA MEXICO VENEZUELA BRAZIL PERU COLOMBIA CUBA
$15,600
$22,600
$12,200
$10,200
$16,700
$23,500
$21,800
$17,500
$13,800
$25,000.00
$20,000.00
$15,000.00
$10,000.00
$5,000.00
$0,00
The World Factbook (2015 est.)
5
20. 2
1- Brazil In A Nutshell
Capital City: Brasilia
Population: 204,259,812 (July 2015 estimate, The World Factbook)
Language: Portuguese
GDP (purchasing power parity): $3.166 trillion (2015 estimate, The
World Factbook)
Unemployment Rate: 6.4% (2015 estimate, The World Factbook)
Inflation: 9% (2015 estimate, The World Factbook)
Currency: Brazilian Real
Time Zone: 6 times zones GMT-5, GMT-4, GMT-3, GMT-2. It is impor-
tant to note that not all states observe daylight savings time and
both Rio de Janeiro and Sao Paulo are GMT-3 during South Ameri-
can winter time and GMT-2 during summer time.
Telephone Code: +55
Internet Domain: .br
Electricity Voltage: Voltage varies from 110 to 220 depending on the
municipality and state.
10
21. 2.1 - GDP Figures (2015), The World Factbook
GDP: USD $3.192 trillion
GDP growth rate: -3.8% (2015 estimate, The World Factbook)
GDP per capita (PPP): $15,600 (2015 estimate, The World Factbook)
GDP Composition by sector: Agriculture (5.9%), Industry (22.2%), Services (71.9%)
2.2 - Economic Outlook
Brazil is in a state of economic crisis causing much concern over the long-term growth
potential of the country. In addition to such economic woes, the political state of the
nation is also in disarray with the impeachment proceedings of President Dilma Rousse-
ff and a staggering list of resignations and prosecutions of many members of the inte-
rim President Michel Temer’s cabinet and ministry. Each month announcements are
being made of corruption charges and national fraud by both major businesses and
politicians. Safety is also a concern of investors and consumers alike, and many citizens
fear that after the Olympics, crime may skyrocket as a lack of money will be available to
fund police and special forces that have kept crime down in recent years. All of these
factors are contributing to a poor economic outlook for Brazil in the next few years.
2- Brazil’s Economy
11
22. 2.3 - Trade and Economic Challenges
A few of the challenges to the growth in Brazil is the fiscal policies that are not conduci-
ve to pursuing more exports and more investment. At this time, fiscal policies have been
established to promote consumerism to foster growth instead. The infrastructure conti-
nues to be problematic. As furiously as Brazil is working to improve the infrastructure,
the vast size of the country and environmental implications make development a massi-
ve obstacle.
Another challenge that remains constant is a lack of confidence in consumers and
investors. The government administration is taking steps to create more confidence. A
new Finance Minister has been appointed to attack the spending problem that exists
within the current government infrastructure. This too faces a grand challenge given
that much of the spending within the budget is directly connected to mandated
expenditures within the constitution. Experts agree that in order to bolster confidence
and to secure growth, spending must be significantly reduced; however, it seems new
laws affecting their constitution are required to accomplish such a task making the
situation highly problematic.
3- Trading With Brazil
3.1 - Trading Partners
Brazil has strong trading ties with China, the US, and Argentina in both imports and
exports. At this time, limited trade agreements and an economy heavily based on servi-
ces have made the distribution between trading partners less drastic than in other Latin
American countries. As Brazil continues to consider new trade agreements, partnership
distribution is likely to change.
Largest Export Partners (2014):
China 19.1%
US 12.6%
Argentina 6.8%
Netherlands 5.3%
Largest Import Partners (2014)
China 18.1%
US 15.3%
Germany 6%
Argentina 6%
Nigeria 4.2%
12
23. What does Brasil Import? (2014)
3.2- Brazil's Imports and Exports
0.92%
Paper
Goods
3.2%
Textiles
0.38%
Footwear
and
Headwear
0.80%
Stone and...
0.26%
Precious...
6.0%
Metals
26%
Machines
11%
Transportation
3.2%
Instruments
1.0%
Miscellaneous
1.1%
Animal
Products
2.1%
Vegetable Products
0.49%
Animal and Vegetable Bi-Products
1.4%
Foodstuffs
20%
Mineral Products
16%
Chemical Products
5.6%
Plastics and
Rubbers
0.29%
Animal
Hides
0.079%
Wood...
MINERALPRODUCTS
WOODPRODUCT
METALS
STONEANDGLASS
ANIMALANDVEGETABLE
BIPRODCUTS
PAPERGOODS
VEGETABLEPRODUCTS
ANIMALPRODUCTS
FOODSTUFFS
WEAPONS
FOOTWEARANDHEADWEAR
ANIMALHIDES
TEXTILES
TRANSPORTATION
INSTRUMENTS
PLASTICANDRUBBER
MISCELLANEOUS
MACHINES
ARTSANDANTIQUES
PRECIOUSMETALS
CHEMICALPRODUCTS
Source: AJG Simoes, CA Hidalgo. The Economic Complexity Observatory: An Analytical Tool for Understanding
the Dynamics of Economic Development. Workshops at the Twenty-Fifth AAAI Conference on Artificial Intelligence. (2011)
TOTAL: $228B
13
24. What does Brasil Export? (2014)
MINERALPRODUCTS
WOODPRODUCT
METALS
STONEANDGLASS
ANIMALANDVEGETABLE
BIPRODCUTS
PAPERGOODS
VEGETABLEPRODUCTS
ANIMALPRODUCTS
FOODSTUFFS
WEAPONS
FOOTWEARANDHEADWEAR
ANIMALHIDES
TEXTILES
TRANSPORTATION
INSTRUMENTS
PLASTICANDRUBBER
MISCELLANEOUS
MACHINES
ARTSANDANTIQUES
PRECIOUSMETALS
CHEMICALPRODUCTS
Source: AJG Simoes, CA Hidalgo. The Economic Complexity Observatory: An Analytical Tool for Understanding
the Dynamics of Economic Development. Workshops at the Twenty-Fifth AAAI Conference on Artificial Intelligence. (2011)
Total: $228B
3.6%
Paper Goods
1.1%
Textiles
0.56%
Footwear
and
Headwear
0.86%
Stone
and
Glass
1.6%
Precious
Metals
7.0%
Metals
7.3%
Machines
7.5%
Transportation
0.40%
Instruments
0.27%
Weapons
0.49%
Miscellaneous
7.8%
Animal Products
16%
Vegetable Products
0.75%
Animal
and
Vegetable
Bi-
Products
12%
Foodstuffs
22%
Mineral Products
5.4%
Chemical Products
2.5%
Plastics and
Rubbers
1.3%
Animal
Hides
1.0%
Wood...
14
25. 3.3 - Trading Infrastructure
Major Airports and Ports
As a country with over 200 million people and the largest geographical size in the
whole of Latin America, it should be no surprise that the country has nearly 775 airports.
Many of the busiest airports are currently undergoing expansion and modernization
projects. Many of the other airports are in desperate need for similar projects, however a
lack of investments and funding is preventing passenger growth in these smaller
airports and placing further strain on larger ones. The following are a few of the busiest
airports in Brazil many of which are some of the most technologically advanced and
sophisticated in the world where you will find sleeping options, shopping, dining, access
to transportation, VIP services, and much more:
Airports - (include airport codes)
• Guarulhos International Airport (GRU)
• Rio de Janeiro/Galeão International Airport (GIG)
• Congonhas-São Paulo Airport (CGH)
• Brasília International Airport (BSB)
• Tancredo Neves International Airport - Confins (CNF)
15
26. Ports
It is essential to keep in mind that selec-
ting the correct port for your needs will
depend upon many aspects such as the
type of container you are shipping, the
commodity, your final destination, and
much more. Ports are unique and each
has its own set of limitations and advanta-
ges. Some are owned and operated priva-
tely; whereas, other ports are owned and
operated by state governments. Keep in
mind that very few ports in Latin America
are able to receive the large Panamax
ocean vessels at this time. The following
are the primary ports of Brazil all of which
happen to be located in the Southern half
of the country:
Port of Santos
Santos is the busiest port in all of Latin
America. It is located in the state of Sao
Paulo. This port will accept nearly all ship-
ments such as container loads, liquid bulk,
solid bulk, and much more. Santos is the
most modern port in Brazil and it also
offers a number of services from port and
logistical services to customs storage. The
port is also conveniently located near
major highways and railways for seamless
transportation in and out of the port.
Port of Rio Grande
Rio Grande is the second biggest port in
Brazil located in the South near Uruguay
and considered the primary port to the
Southern Cone. The port continues to
receive financing and investment to make
expansions that will enhance customer
service by doubling port capacity to alle-
viate bottlenecks and improve efficiency.
The port is often receiving bulk cargo for
transshipments as it is strategically located
to essential highways, railways, and an
international airport. The port is also com-
mitted to being environmentally responsi-
ble.
Port of Itajai
The Port of Itajai is located South of Sao
Paulo. This extensive cargo terminal will
accept both dry and reefer container ship-
ments. Also available at this modern port
are logistical services. The port is highly
dedicated to safety with webcams throu-
ghout the port and to the environm
Port of Paranagua
This strategic port is located near the city of
Curibita. The port accepts both liquids and
dry bulk shipments as well as general
cargo, vehicles, and containers. Like many
other Brazilian ports, they are dedicated to
security and the environment and the port
is home to cruise ships.
Port of Rio de Janeiro
The Port of Rio is the third busiest port in
Brazil. The port is currently undergoing
modification and restoration, however
progress has slowed greatly as it works to
receive government financing that is requi-
red to complete the project despite a large
sum of private funding already committed.
The port is located near downtown Rio and
in addition to accepting container ship-
ments; the port is also home to cruise ships.
As part of the modification project, the port
will soon be home to many tourist attrac-
tions, as well.
Port of Vitoria
The Port of Vitoria has many more restric-
tions and limitations that most other ports
in Brazil as it is quite challenging to access.
At this time, the port is most commonly
used for cruise ships and the repairing of oil
platforms and ships. The port is near both
strategic rail and highway lanes.
16
27. 3.4 - Time and Cost to Import into Brazil
The time and cost to import into Brazil will vary greatly. If the exporting country is part
of a free trade agreement with Brazil and the imported good is subject to the benefits
of the agreement, it is likely minimal to no import tariffs or customs fees will apply. If
the exporting country is not a member of any bilateral agreement or trade bloc with
Brazil, goods will be subject to import duties, state sales tax, federal tax, and quite possi-
bly an excise tax. It is also possibly your shipment could be subject to a declaration fee,
airport fee, air handling fee, or a storage fee.
If the goods are shipped into a free trade zone, they can be accepted, repackaged, and
exported without having to pay import fees. Do not forget to consider Incoterms before
you sign any sales contracts. The transit time to Brazil will vary from several days for
ocean vessels from Miami to over a month for shipments originating in Asia.
Import Duties
10.73 % is the average import duty.
Things to Know
• Time to import: Border compliance is 63 hours
• Time to import: Documentary compliance is 146 hours
• Many imported products are subject to a license application to the SECEX (Secretariat
for Foreign Trade). The license is valid for 60 days from the date of the license applica-
tion. This period is often not long enough and a new license application must then be
made.
• Textiles regulations are strict - the license is only issued if payment is made within 30
days following the date of the B/L
• With the launch of "Brasil Maior" (Greater Brazil) plan, there has been a rise in trade
protection.
• Every importer must register with SECEX (the authorities in charge of foreign trade)
http://www.investexportbrasil.gov.br/secex-1?l=en
Import documents Needed:
• Bank document
• Bill of lading
• Cargo release order
• Commercial invoice
• Customs import declaration
• Import Invoice (Nota fiscal)
• Packing list
• Technical standard certificate
Useful Links
Link to the International Customs Tariffs Bureau
http://www.bitd.org/Search.aspx
17
28. 3.5 - Tax Free Zones
Bonfim and Boa Vista
Both zones are located in the state of Rorima in the far North. These zones were created
to encourage and foster relationships with neighboring countries. A number of busines-
ses and business activity are granted tax exemption or suspension within these zones.
Such types of exemptions could be agriculture related processing, fish farming, tourism
activities, storage, and more.
Brasileia and Cruzeiro do Sul
A number of businesses and business activity are granted tax exemption or suspension
within these zones which are both located in the state of Acre in the North. Such types
of exemptions could be agriculture related processing, fish farming, tourism activities,
industrialization products, and more.
Guajara-Mirim Free Trade Zone
Both zones are located in the state of Rondonia in the far Northwest. These zones were
created to encourage and foster relationships with neighboring countries. A number of
businesses and business activity are granted tax exemption or suspension within these
zones. Such types of exemptions could be agriculture related processing, fish farming,
tourism activities, shipbuilding, storage, and more.
Zona Franca de Manaus (SUFRAMA)
SUFRAMA is the most well-known free trade zone in Brazil and is home to over 600
businesses. It is conveniently located near the Port of Manaus in the North of Brazil. The
zone provides a number of fiscal benefits to both businesses located on the site and
consumers shopping. Goods can be stored as well as land utilized for industrial purpo-
ses. It is estimated that 100,000 people are employed in direct correlation to this zone.
Macapa-Santana Free Trade Zone
Both zones are located in the state of Amapa in two different municipalities in the
North. This zone was created to encourage and foster relationships with neighboring
countries. A number of businesses and business activity are granted tax exemption or
suspension within these zones. Such types of exemptions could be mineral resources,
fish farming, tourism activities, re-exportation, and more.
Tabatinga Free Trade Zone
This zone is strategically located in the state of Amazonas in the Northwest. Tabatinga
was established to encourage and foster relationships with neighboring countries. A
number of businesses and business activity are granted tax exemption or suspension
within these zones. Such types of exemptions could be agriculture related processing,
fish farming, tourism activities, storage, shipbuilding, industrialization products, and
more.
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29. 19
3.6 - Brazil Free Trade Agreements
Because Brazil is a member of MERCOSUR and members of this common market are
limited in the number of trade agreements in which they can be involved outside of
MERCOSUR, Brazil does not have any independent agreements at this time. However,
Brazil, and MERCOSUR, is actively seeking agreements with larger economies such as
the US, Mexico, and the EU. MERCOSUR currently involves Argentina, Brazil, Uruguay,
and Venezuela as primary member countries and Bolivia, Chile, Colombia, Ecuador, and
Peru as associate members. Primary member countries must provide permission to any
other member country to join an agreement outside of MERCOSUR which is another
reason Brazil does not have any independent agreements at this time.
MERCOSUR Agreements
Egypt - MERCOSUR Free Trade Agreement This FTA, the first between an African and
Arab nation and Latin American countries, has been established to increase trade libera-
lization and investment amongst all nations involved. A significant focus has been
placed on agricultural products as well as textiles, chemical products, and engineered
goods.
EU - MERCOSUR Countries include the EU and MERCOSUR nations. Negotiations are in
progress for this agreement which many hope to begin at some point in 2014. Given the
number of countries involved and the existing trade agreements with other nations, this
FTA may not become a reality as quickly as those hopefuls.
India - MERCOSUR Preferential Trade agreement This agreement is a preferential trade
agreement that provides exemptions on roughly 450 products for both MERCOSUR
nations and India. A few examples of exempt products being imported into South Ame-
rican member countries are wool, cotton, steel products, glassware, and machinery. A
few items on the MERCOSUR list are pharmaceuticals, organic chemicals, machinery,
and electrical equipment.
Israel - MERCOSUR Free Trade Agreement Israel was the first non-Latin American nation
to sign an agreement with MERCOSUR. Industries benefiting from the agreement inclu-
de agriculture, aircraft manufacturing, pharmaceuticals, nanotechnology, and many
others. The agreement is also encouraging labor exchange and foreign investments into
both regions.
Mexico - MERCOSUR Economic Complementation Agreement (ACE) The Mexico and
MERCOSUR ACE is somewhat unique as it involves two different trade agreements of
ACE No 54 and ACE No 55. ACE 54 is a bilateral agreement between Mexico and MERCO-
SUR nations established to increase trade and services between the nations. ACE 55 is
specifically dedicated to the automotive sector and it also includes the USA.
Peru - MERCOSUR Economic Complementation Agreement (ACE) This agreement
covers both goods and services for all member nations. The elimination of customs
duties has fostered positive trade relations. The agreement also focuses on mutually
beneficial development of science and technology, as well as intellectual property rights,
exchange of trade information services, and antidumping.
Trade Agreements in Negotiations
• Egypt - MERCOSUR
• Korea - MERCOSUR
• Southern African Customs Union - MERCOSUR
30. 4- Brazil’s Business Opportunities
4.1 - Investment Grade
Both Fitchs and Standard & Poors investment ratings for Brazil has been changed to BB;
whereas, Moodys rating is listed as Ba2 placing Brazil barely at an investment grade level.
A number of the existing investor concerns remain despite government attempts to
create a more stable and incentive-based environments for investors. Some of such
concerns being fear of a lack of long-term sustainability, the economic growth is not
projected to improve in the coming years, and over-spending by the government and
nationwide budget cuts. Brazil is working to make the investor environment more secure
and the country is far from lacking in investment opportunities.
Investment opportunities exist in nearly every sector and in every desired investment
range. Brazil allows for both public and private investing. At this time, some of the most
appealing investment opportunities exist in sectors such as manufacturing, tourism,
energy, logistics, real estate, agriculture, healthcare, and information, communication,
and technology. In addition to such projects, it is possible to invest in both state and
federal projections throughout the country. Given the vast size of Brazil and that it is the
second largest economy in Latin America, you will have hundreds of opportunities for
investment in each region of the country.
After being considered one of the best countries in Latin America to do business for
years, Brazil has fallen off all reputable lists as many neighboring countries are thriving
during these trying economic and political times in Brazil.
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31. 4.2 - Significant Projects
Between hosting the World Cup in 2014 and the Olympics in 2016, Brazil has been wor-
king on a number of expansive and important projects. While some projects continue,
others have been placed on hold due to significant government cuts in spending. Below
are just a few examples of such significant projects. During the past few years, hundreds
of projects worth billions of dollars have been underway throughout Brazil. It is estima-
ted that Brazil will spend roughly USD $4.6 billion on the Olympics alone despite being
in a deep recession.
Airport Expansion
Porto Alegre is just one airport expansion and modification project of many. Upon com-
pletion, it is estimated that the airport will be able increase its capacity to nearly 19
million passengers annually and includes a new lighting system, a new cargo terminal,
an additional taxiway, and a service road. The cost of the project is estimated at roughly
$170 million.
High-Speed Train (TAV)
While rail expansion is a top priority of the infrastructure projects to alleviate the strain
of the highways, the high-speed train project, which will connect Rio and Sao Paulo, is
arguably the most exciting in the country. This USD $17.8 billion project will connect Rio
de Janeiro, Sao Paulo, and Campinas will now not be complete until the 2020s. The
government continues to seek private financing to repair existing infrastructure in all
forms.
Ports
The Brazilian government has dedicated USD $27.3 billion to port expansion throughout
the country. Brazilian ports are often synonymous with congestion, bottlenecks, and
inefficient shipments. The administration understands the importance of creating grea-
ter efficiencies in order for the economy to reach long-term viability and as such, many
ports will be receiving vital upgrades.
Subway Fortaleza
Fortaleza, Brazil’s fifth largest city, is receiving a USD $1 billion expansion project. The
new line will connect the existing South and West lines and will support up to 400,000
people per day. This project is critical to relieving road traffic and reducing pollution.
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