Posts Tagged ‘Brazil’

April 26th, 2013

Are you an Indiana Jones or a circumspect Ulysses when doing business in emerging markets?

I know that as a seasoned decision-maker, you sometimes feel that your product is the answer to the world’s problems. Then you suddenly get that itch for adventure – think Indiana Jones – and feel the need to conquer a market more exciting than Montpelier or Buffalo.

But all it takes is a few minutes online to realize that Brazil is actually rife with protectionist traps and that you need to jump through more hoops than a circus dog just to get a visa for Algeria.

So what’s the real story? (more…)

January 18th, 2013

Brazil – South America series

A few months ago, I visited four countries, including Brazil, during an exploratory mission to South America. Here are my main observations.

Based on the evidence that I gathered during the course of my meetings, it is difficult for a Québec SME to do business in Brazil, primarily because the country is highly protectionist, there is extensive corruption, the legal system is complex, taxes are very high, the infrastructure is inadequate, etc., etc. Given these challenges, it is preferable to establish a local presence rather than to export directly, particularly in light of the high tax rates. In fact, there are 3 levels of taxation in Brazil (municipal, provincial and federal). The World Bank corroborates this opinion, noting that the country ranks 126th out of 180 countries in terms of the ease of conducting business. (more…)

January 18th, 2013

Moving into South American markets: Advice and recommendations

In May 2012, I had the opportunity to go on an exploratory mission to Latin America, including Brazil (Sao Paulo), Chile (Santiago), Peru (Lima) and Colombia (Medellin), as part of my EMBA program at Concordia University. During this mission, I carried out a mandate for LAVAL TECHNOPOLE International Business Centre, in which I validated the market potential for Laval companies and identified intermediaries for our export activities. Here are my recommendations and my conclusion. (more…)

October 18th, 2010

Brazil has captured the world’s attention. Has it captured yours?

These days, it seems the entire financial world is talking about Brazil. In fact, the country is enjoying tremendous economic growth, unemployment is at an all time low, a real middle class seems to be emerging and the country is getting ready to organize the world’s two biggest sports events—the 2014 Soccer World Cup and the 2016 Olympic Games. A huge market, Brazil is increasingly becoming an unavoidable choice since so many developed nations, including the U.S, are struggling with a sluggish economy. That’s why, as some of the articles below point out, a growing number of Canadian and Quebec firms are turning to the Brazilian market while the Canadian government is working to forge closer ties with the Brazilian government with  a view offering its advice and helping the country organize the Olympic Games to be held in Rio de Janeiro in 2016.

Dossier de La Presse Affaires Magazine

Dossier Lesaffaires.Monde

However, the Brazilian market is tough to penetrate because of its size, language, cultural differences and entry barriers (very high customs duties on certain products for example). To be successful there, you have to surround yourself with the right people, get familiar with the market and be ready to maintain a presence for the long term to build a good business network.

Here are two testimonials of Laval companies that have penetrated the Brazilian market and who talk about their experience in Brazil and other Latin American countries: Interview with Jean Soucy of Technologies 20-20 and a profile of CDVI.

As a matter of fact, the International Business Centre is planning to organize a trade mission to Brazil in fall 2011.  When we organize our trade missions, we work with well-established local experts who arrange the right meetings with the right people based on the needs of our participants. These experts can also ensure certain follow-up activities with potential clients or partners. Lastly, the participating companies benefit from expert guidance from the International Business Centre team during and after the mission. The spinoffs of our last mission to Mexico were impressive and all the participants were very satisfied with their involvement. For more information, please contact Caroline Bouchard at 450-978-5902 or at caroline.bouchard@lavaltechnopole.com.

Bruno Séguin

July 8th, 2010

EDC’S 2010 export forecast

Each spring, Export Development Canada (EDC) publishes its Global Export Forecast for the year ahead. EDC’s vice-president and chief economist, Peter G. Hall, then embarks on a nationwide tour, presenting the analysis at always well-attended luncheon conferences. This forecast has become a reference in Canadian international trade and a highly useful tool for those involved in international business development, helping them set priorities and plan their activities for the year.

The following are a few highlights that could be of interest to Laval SME leaders:

-         EDC predicts global growth of 3.7% in 2010, a huge improvement from the 1.1% recorded last year. Still, EDC refuses to call it a recovery given the many risks still threatening the world economy, for instance, the maturation of huge stimulus measures, instability on the financial and commodity markets, fear of inflation, and a potential new wave of protectionism.

-         Within NAFTA, Mexico is expected to post the strongest GDP growth, projected at 3.5% in 2010 and 4% in 2011. Globally, BRIC countries (Brazil, Russia, India China) will dominate, with China and India leading the way. Solid gains are also expected in Southeast Asia and Sub-Saharan Africa.

-         After a tough year in 2009, Canadian merchandise exports should rebound to the tune of 13% this year.  Québec exports are projected to increase 9% in 2010, placing it seventh among the Canadian provinces.

-         The EDC predicts a 22% jump in Canadian merchandise exports to Brazil, the sharpest growth among the principal trading countries. Last year, exports to Brazil represented a mere 0.4% all Canadian merchandise exports and had tumbled 41.4% from 2008. What this means is that Canadian companies would do well to establish stronger business ties with this now indispensable market.

-         U.S.-bound exports should also improve, picking up 14%. Given the relative importance of this market (75%) for Canadian exporters, this bit of news is encouraging.

-         As regards industries, exports will increase mostly in energy, commodities, and vehicles and auto parts. Aeronautics, the only sector where exports grew last year, and agrifood, will be the only two with negative growth in 2010.

After reading this analysis, I noticed that the activities we have planned for 2010 fit in well with these forecasts. In fact, we just recently returned from a very successful mission to Mexico and are in the process of organizing others for the fall, namely to China and Brazil. We will also be very proactive on the U.S. market, which is still the number one destination for most Laval exports. When you return from vacation, make sure to check out our fall program – it’s packed with activities!

You can read the Global Export Forecast on the EDC Web site.

Bruno Séguin