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Doing business in Brazil - an introductory guide (PDF - 834 KB)
Foreword - Minister for Trade, Mark Vaile
"Doing Business in Brazil" is a follow-up to the 1999 publication
"Doing Business in Latin America". Along with the portfolio's annual
"Capture the Americas – Latin America" seminar series, it is another
tangible sign of the Government's commitment to promoting Australian
trade and investment in Latin America, and supporting the efforts of
the business community.
The importance of expanding Australia's relations with Latin
America was highlighted by the report, tabled in September 2000, on "Australia's
Trade and Investment Relationship with South America" by the Trade Sub-Committee
of the Joint Standing Committee for Foreign Affairs, Defence and Trade
of the Australian Parliament. The report assessed that the region had
considerable market expansion potential and could play a more important
role from Australia's trading perspective.
The Government has responded positively to the thrust of the
recommendations. In particular, at the time of his visit to Brazil in
March 2001, my colleague, Mr Downer, and I jointly announced the creation
of the Council on Australia Latin America Relations (COALAR). The Council,
which will include prominent business representatives with experience
in Latin America, will advise government and business on ways to further
Australia's commercial, economic and political interests in the region.
Of all the region's markets, Brazil stands out. It is already
Australia's largest trading partner there, and, due to its economic size
and diversity, offers significant potential.
My first official overseas assignment as Australian Trade
Minister in September 1999 included a visit to Brazil. I was struck by
the warm and positive relations that exist between our two countries.
I was able to speak to Australian business people on the ground and obtain
first-hand assessments of the opportunities for our exporters.
While the commercial relationship is growing, it remains less
than optimal: Brazil, the ninth largest economy in the world, accounts
for only 0.5 per cent of Australia's total exports. Clearly, the potential
for further commercial cooperation is substantial.
Of course, there are historical and commercial reasons for
this modest trade relationship, but changes to the Brazilian economy
are providing new opportunities. For example, Brazil has made substantial
progress in opening its markets to investment. It is now a primary target
for North American and European capital, with many of the world's largest
companies making strategic acquisitions.
Importantly, Brazil has also made progress towards further
trade liberalisation. As the economy becomes more outward-looking, the
opportunities for Australia will continue to expand.
Already there is substantial evidence that more Australian
companies are looking to Brazil as a market for growth. Some of our traditional
corporate leaders such as Burns Philp, WMC and BHP are being joined by
a new guard of innovative small and medium-sized enterprises such as
Open Telecommunications, Quiksilver, Maptek, Agrichem, Securency and
Hills Industries that are featured in this publication. These companies
are leading the way for all Australian companies.
Apart from the direct commercial relationship, Australia and
Brazil have much in common in our approaches to trade policy. For example,
as members of the Cairns Group, Australia and Brazil work together to
promote freer global trade in agriculture. This cooperation has extended
to lobbying against barriers to sugar exports. Brazil and Australia are
the world's two largest sugar exporters.
The message in this publication is a simple one: Brazil offers
a major market for Australian businesses. I encourage more Australian
business people to take a look at this South American giant for themselves.