HIGHER EXPORTS AND INVESTMENT KEY GOALS OF NEW ADMINISTRATION

The United States is Brazil’s main trading partner and together the two countries co-chair the Free Trade Area of the Americas (FTAA) talks, which involve 34 nations. President Lula is a strong supporter of the free trade area and is commited to expanding and opening up new markets for Brazilian exports

The United States is Brazil’s largest trading partner with about 25% of its total international trade – roughly equal to Brazil’s trade with the European Union, and the U.S. leads foreign direct investment in the country, with interests that represented $24 billion in the year 2000. Three U.S. companies – GM, Texaco, and Exxon, are among the top twenty domestic firms in Brazil, and six of the country’s top ten exporters (Bunge, Volkswagen, Cargill, General Motors, Motorola, and Ford) represent foreign investment.

Increasing Brazil’s exports and attracting higher levels of FDI are key elements in the new government’s economic strategy. Mr. Juan Manuel Quirós, President of the country’s main export promotion agency, APEX, says, “Brazil is going through a great transformation now, and we are actively seeking new business relationships internationally and increasing our relationships with the private sector. We are offering huge opportunities to interested parties, as the transfer of technology and investment will enable us to develop new products for export.”

LUIS FERNANDO FURLAN Minister of Deveopment, Industry, and Foreign Trade

Central to the country’s export growth are the ongoing Free Trade Area of the Americas (FTAA) talks, which President Lula has been co-chairing with the U.S. and which involve a total of 34 nations. Brazil is a strong supporter of the free trade area and has been working hard to produce what it feels to be a fair and just agreement for all concerned. Minister of Development, Industry, and Foreign Trade, Mr. Luis Fernando Furlan, says, “Reciprocity is the keyword of this administration when it comes to external trade. We believe that free trade agreements are good for the country and that they are a positive way to expand and to open up the market. A fair market will allow us the chance to create wealth in Brazil, while offering vast opportunities to international companies that are interested in investing.”