Commercial Guide: Brazil

Overview

Brazil is Latin America's largest economy with a population of 197 million. Brazil’s economy, the 7th largest in the world is projected to be the 5th largest consumer market in the world. To do business in Brazil knowledge of the local environment, including costs of doing business like distribution, government procedures, environmental laws, and a complex tax structure is a must. Brazil practices protectionism though they advocate free trade mainly for export. To offset local tax burden on local businesses, Brazil implements a dramatic tax reduction for companies that export product or services from Brazil. In addition to import tariffs and high taxes, logistics is a challenge and the customs and legal system are complex. Brazil’s business culture relies on strong personal relationships. It is essential to work through a qualified representative or distributor when developing the Brazilian market. Brazil MPI ranks 17 of 26 emerging markets, 116 of 189 in the ease of doing business (80 of 189 in protecting investors). Promising areas for U.S. exports and investment includes safety and security devices.

Entry method From the overview is can be determined that there is a market for our product, it is difficult to enter the market; we need to understand the culture and have a market based agent if we want to be successful. The country commercial guide also tells us that it is complex to setup a subsidiary and importation into Brazil is subject to tariffs and high taxes and that the culture and legal system is complex. Based on this overview, I will recommend that our entry method at the onset into the Brazilian market should