1. Ministry of Finance of Brazil Secretariat of International Affairs November 2004 Pablo Fonseca P. dos Santos External Trade in Brazil: Recent Developments Paris - OECD November 22, 2004

2. Ministry of Finance of Brazil Secretariat of International Affairs November 2004 2 Graph I: Nominal and Real Exchange Rate 1, 1998 - 2004 (October) (index: July 1994 = 100)

3. Ministry of Finance of Brazil Secretariat of International Affairs November 2004 Graph II: Trade Balance, 1998 - 2004 (October) (US$ billions; accumulated over 12 months) 3

4. Ministry of Finance of Brazil Secretariat of International Affairs November 2004 Table I: Exports by Main Markets, 1997 and 2004 (US$ billions) 4

5. Ministry of Finance of Brazil Secretariat of International Affairs November 2004 Graph III: Exports Quantum by Class of Products (12 months moving average) Source: Funcex. 5

6. Ministry of Finance of Brazil Secretariat of International Affairs November 2004 Table II: Exports by Main Products, 1997 and 2004 (US$ billions) 6

7. Ministry of Finance of Brazil Secretariat of International Affairs November 2004 Some Facts About the Structural Component of the Brazilian Trade Performance Liberalizing reforms of the 1990’s - Privatizations - Reduction of trade tariffs Some industry examples - airplanes - steel - textiles FDI - automobiles - mobile phones R&D and investments in the agricultural sector

8. Ministry of Finance of Brazil Secretariat of International Affairs November 2004 Graph IV: Export Quantum, 1997 - 2004* (% change over previous year) 8

9. Ministry of Finance of Brazil Secretariat of International Affairs November 2004 Graph V: Exports of Goods and Services, 1999 - 2003 9

10. Ministry of Finance of Brazil Secretariat of International Affairs November 2004 Table III: Balance of Payments, 1998 - 2005 (US$ billions) 10

11. Ministry of Finance of Brazil Secretariat of International Affairs November 2004 Table IV: Balance of Payments: Selected Indicators, 1998 - 2005 11

12. Ministry of Finance of Brazil Secretariat of International Affairs November 2004 Table V: External Debt Indicators, 1999 - 2004 (%) 12

13. Ministry of Finance of Brazil Secretariat of International Affairs November 2004 Will Export Performance Keep Up? Brazilian firms are increasingly becoming more export oriented -Policies to incentive exports Macroeconomic Stability - Necessary but not sufficient condition Microeconomic Reforms Agenda - Improvement of the business environment - Reduction of the cost of credit - Infrastructure investment (PPP, regulatory framework) - Improvement of the tax structure - R&D (new law being discussed by the Senate) - education Trade negotiations - High tariffs and non tariff restrictions on products that Brazil is more competitive

14. Ministry of Finance of Brazil Secretariat of International Affairs November 2004 14 Table VI: Improving Business Climate Structural Reform Checklist