1 Brazil – Norway Bilateral relations in a new dimension Ambassador Sérgio Eduardo Moreira Lima BNCC, Oslo, February 26, 2008

2 The Brazilian Economy in 2007 GDP growth of 5.2% (above the Government´s target of 4.5%) Inflation rate of 4.3% p.a. (under the Government´s target of 4.5%) Basic interest rate of 11.25% p.a. International reserves of US$ 177 billion Exchange rate of R$ 1.80 per dollar at end of year Trade surplus of US$ 41.5 billion FDI flows of US$ 34.6 billion

3 Industrial and Agricultural Growth Industry – Sales in computers expanded 24%, cars 25%, cellphones 32%, trucks 34% and agricultural machinery 42% – Mining, steel manufaturing, oil exploration and durable goods pushed economic growth in 2007 – Expected to perform well in 2008 in view of investments in the PAC Farming – Rural GDP resumes growth (6.8% in 2007)

4 Brazilian Economic Outlook for 2008 GDP growth above 5.0% Inflation rate under 4.5% p.a. Basic interest rate of 10.75% p.a. (market expectation) Exchange rate in the range of R$ 1.75 – 1.85 per dollar FDI flows of US$ 28 billion Trade surplus of US$ 30 billion Continued industrial production growth of 5%

5 Some Key Areas Oil & Gas – Tupi field has estimated reserves of 12 to 30 bn barrels – Should duplicate known reserves and rank Brazil among 10 largest world reserves PAC – From 2008 to 2011, R$ 136 bn for investment in new railways, roads, water treatment units and hydroelectric plants – 2/3 should come from private investment, with long term financing by BNDES Investment grade status

Brazil Trade Surpluses (US$ billions) ExportsImports

7 INTERNATIONAL RESERVES */ Position at 06/Sep/2007. Source: Central Bank of Brazil mar/06 59,8 FEB sep 03 des 03 mar 04 jun 04 sep 04 des 04 mar 05 jun 05 sep 05 des 05 mar 06 jun 06 sep 06 des 06 mar 07 jun 07 FEB 08 Increase: over 130 billions Liquidation of Foreign Debt to IMF (US$ billions)

a historical year in bilateral relations State Visit of President Lula Visits of the Minister of External Relations, the Minister of Development, Industry and Trade, the Minister of Environment, and 14 governmental delegations High-level business contacts (´A Meeting of Energy Giants´, CSR Conference, Petrobras, CVRD, Brazil Seminar in Bergen, Breakfast of President Lula with Norwegian CEOs) Agreements between companies (Petrobras-Statoil) and business federations (CNI-NHO)

follow-up of President Lula’s visit Visit of Minister Tora Aasland (March) Visit of Prime Minister Jens Stoltenberg to Brazil with ministerial and business delegation (September) Visit of Minister Åslaug Haga to Rio Oil & Gas (September) Visit of Minister Gilberto Gil (November) Opening of Honorary Consulates in Bergen and Stavanger

10 Bilateral trade flows reach a new record surpassing one billion dollars.

11 Exports to all Nordic Countries increased. Norway kept the position as the main market.

12 Norway as main destination for Brazil`s exports in Scandinavia Exports to (US$,000) NORWAYSweden Jan Jan Δ %+ 118 %- 5 %

13 Norwegian Investment in Brazil

14 ”During my visit to Brazil in 2003, Norwegian businessmen declared that Norwegian investments in Brazil would reach 5 billion US$ in the next 5 years. Today I can confirm that we are reaching this investment level” King Harald V (Sept 13, 2007) ”I come to Norway convinced that the present moment opens up new and important opportunities. One of them results from a lasting cycle of sustainable growth in Brazil” President Luiz Inácio Lula da Silva ( Sept 13, 2007)

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