Brazil

Location:  South America

Flag of BrazilLocation of Brazil

Population: 205,716,000 (Estimate July 2012)

Language(s): Portuguese – There also exist a mix of Portuguese and Spanish known as Portunol or Brazilero

Currency:   Real (R)

GDP:  $ $2.2 Trillion (estimated 2011)

Imports Duties are subject to duty based on CIF.

Top Import Commodities:

  • Agricultural equipment
  • Aviation equipment
  • Information technologies
  • Telecommunication
  • Oil and gas
  • Electrical power/renewable energy
  • Medical

Other Information:

Brazil is the strongest economy in South America with 200 million consumers. It has a strong agricultural as well as mining sector. US exports to Brazil exceeded $42 billion.  Although Brazil experienced slower than anticipated growth in 2011, it overtook the United Kingdom as the 7th largest economy by GDP and it is greater than Russia and India. Its unemployment is at its lowest point in many years. This creates a very strong buying economy. US exporters are taking advantage of this buying force by positioning their products in a B2C model. Brazilian customs allows imports for personal use under US$3000 (it’s equivalent in Brazilian Real). This allows US companies to sell directly to consumers products under that amount.  Many products are selling well now in Brazil.  Brand names in clothing and accessories are selling well.

The buying culture in Brazil is structured so that individuals buying products break up the cost of the product(s) in monthly payments. Understanding this structure/business model will allow you to better position your products in this market. Brazil’s high tariffs are a concern, ranging from 20% to 60%.  Shipments moved with integrators (FedEx, UPS, DHL, etc.) pay a higher rate of duty (approximately 99%).

With 2 major global events coming to Brazil over the next 4 years (World Cup 2014, Olympic Games 2016), there are many investments in infrastructure. It is anticipated that Brazil will stand $50 billion in infrastructure construction security  and public transportation among other areas as they get ready for these 2 events.