Brazil 's Foreign Trade Policy Essay

851 Words May 8th, 2015 4 Pages
In 2012 it looked like Brazil might be returning to the protectionist trade agenda of the 50’s – 70’s, when it slapped a 30% tax on automobiles with less than a 65% local content (Mendes, 2012). Headlines abounded; Brazil’s New Protectionist Agenda, in Americas Quarterly and Brazil 's Trade Policy: Seeking Protection, in the Economist. To date there have been no further examples of this extreme behavior.
Today Brazil’s foreign trade policies include tax relief on exports, trade remedies, financing and guarantees for exports, and trade promotion (Plano Brasil Maior 2011 / 2014, 2014). Foreign ownership of some sectors is restricted including the aviation, insurance and media sectors. Land ownership by foreigners is also restricted and foreigners cannot own land within 150 KM of Brazil’s borders without approval of Brazil’s National Security Council. In addition to the complex tax requirements discussed earlier in this report, Brazil has equally complex regulatory requirements as well. No distinction is made between foreign and national capital in most cases (U.S. Department of State, 2013).
Currently Brazil is encouraging foreign investments in its infrastructure. Including the rights to operate its major airports, over 6,299 miles of railroads and 3,500 miles of Highways. Overall Brazil is seeking almost USD $100 Billion over the next 20 years to shore up its infrastructure with the majority of those funds expected to come from foreign investment (U.S. Department of…

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