1. Doing Business in Brazil Ken Johnston Consulate General of Canada São Paulo, Brazil November 2003

2. Doing Business in Brazil Key Points Canadian firms do very well over long term but: - Competitive market - Price sensitive (exchange rate) - Financing is generally important (local credit expensive) - “Niche” markets often best - Local presence or good partner often critical

3. Doing Business in Brazil Market Characteristics: Highly segmented: - stark demographics (ranks 4 th in terms of income inequality) - Income differences (middle class 35-40 million, poor 130 million) - Regional differences (south - middle class; northeast – poor)

4. Doing Business in Brazil Public Sector - large demand in principle but limited funding - increasingly - private sectors solutions (concessions for infrastructure) - IFI Funding - Petrobras - exception

5. Doing Business in Brazil Private Sector - large, diversified - financing critical - export sectors - better prospects - inputs rather than consumer/end products - cutting edge technology

6. Doing Business in Brazil Options Exporting - agents, representatives, sales offices - advantages - lower risk, opportunity to develop market - disadvantages - less flexible costs, weaker presence Investment -includes joint ventures -approach of over 60 Canadian companies -advantages - more flexibility re costs, stronger presence, post sales servicing, qualified/inexpensive staff -Disadvantages - up front costs, greater risk

7. Doing Business in Brazil Technology Transfer - seeking advanced niche technologies - Canada-Brazil S&T cooperation 2 Way Partnerships - your products/technologies in Brazil, their products/technologies in North America

8. Doing Business in Brazil Challenges - language (but English increasingly common) - bureaucracy / regulation / tariffs - competitive environment Solutions - Trade Commissioners - Good local partners - Flexible approach

9. Doing Business in Brazil Steps Research at home (e.g. www.infoexport.gc.ca)www.infoexport.gc.ca Register with Virtual Trade Commissioner - Infoexport Contact post (infocentre.brazil@dfait-maeci.gc.ca)infocentre.brazil@dfait-maeci.gc.ca Visit (with PEMD assistance) - meet contacts - assess - learn about opportunities, constraints - decide on strategy