BRAZIL TRADE DIRECTORY ON DISK BRAZIL - COUNTRY MARKETING PLAN FY'93 - SUMMARY Country Data Best Prospects Commercial Environment Financing Environment Trade and Investment Issues/Barriers Market Analysis Plan Trade Event Plan BRAZIL: COUNTRY MARKETING PLAN FISCAL YEAR 1993 Brasilia, August, 1992 Table of Contents Part I. Country Data A. Profile B. Domestic economy C. Trade D. Investment II. Best Prospects III. Commercial Environment A. Political factors B. Economic factors C. Commercial factors D. Social/cultural factors IV. Financing Environment V. Trade and Investment Issues/Barriers A. Major trade barriers B. Major investment barriers VI. Market Analisys Plan A. Industry subsector analyses (ISAs) B. Trade event market studies C. Scheduled periodic reports D. Other reporting and research VII. Trade Event Plan I. Country Data A. Profile: Brazil is the largest and most industrialized nation of the Latin American Republics, with an area of 3,287,000 square miles. It is the fifth largest nation in the world, about the same size as the continental United States. The 1991 population was 146.2 million; by 2000, the population is projected to be 174.4 million, with a growth rate of 1.98 percent per year. Brazil has become increasingly urbanized, with 77.1 percent of the population now living in cities, and Sao Paulo, with 18.5 million inhabitants, classifies as a world megapolis. Portuguese is the official language of the country, although many business people have a working knowledge of English. The population is listed as 89 percent Roman Catholic. The standard workweek throughout Brazil is Monday through Friday, with offices usually open between 9 A.M. and 6 P.M., but factories tend to open earlier and some work a 48-hour week. Some retail business establishments are open on Saturdays. Lunch breaks occur during the period from 12 pm to 3 pm, depending on the type of business. The U.S. and Foreign Commercial Service posts in Brazil are generally open from 8 am to 5 pm, Monday through Friday. Contacts: Richard Ades Senior Commercial Officer (resident in Sao Paulo) or Dar Jalane Pribyl Commercial Officer American Embassy (FCS) Brasilia, Brazil Unit 3500 APO AA 34030 Telephone: (5561) 321-7272, extension 279 or 416 Fax: (5561) 225-3981 Walter Hage Commercial Officer American Consulate General (FCS) Rio de Janeiro, Brazil Unit 3501 APO AA 34030 Telephone: (5521) 292-7117 FAX: (5521) 240-9738 Albert Alexander Commercial Officer and Deputy SCO Jon Kuehner Commercial Officer American Consulate General (FCS) Sao Paulo, Brazil Unit 3502 APO AA 34030 Telephone: (5511) 853-2011 Fax: (5511) 853-2744 Raymundo Teixeira Commercial Specialist Consular Agency (FCS) Belem, Brazil Unit 3500 APO AA 34030 Telephone: (5591) 223-0800 Fax: (5591) 223-0413 Jose Mauricio de Vasconcelos Commercial Specialist U.S. and Foreign Commercial Service Belo Horizonte, Brazil Unit 3505 APO AA 34030 Telephone: (5531) 335-3250 Fax: (5531) 335-3054 Larry Farris U.S. Department of Commerce Brazil Desk, Room 3017 Fourteenth Street Between Constitution and E Streets, NW Washington, DC 20230 Telephone (202) 377-3871 Fax: (202) 377-3718 Robert Taft Director, Western Hemisphere US and Foreign Commercial Service US Dept. of Commerce, Room 3130 Fourteenth Street Between Constitution and E Streets, NW Washington, DC 20230 Telephone (202) 377-2736 Fax: (202) 377-3159 B. Domestic economy 1990 1991 1992(E) GDP (current U.S.$ billion) 1/ 478 412 420 GDP projected average growth rate through 1994: (1993=3) (1994=3) -4.6 1.2 2.2 GDP per capita (U.S. billion) 3,501 2,822 2,823 Government spending as percent of GDP 17.3 18.0 18.5 Inflation (percent change) 1,585 475 710 Unemployment (percent of workforce) 3.9 4.2 4.5 Foreign exchange reserves (U.S.$ billion) 9.9 9.4 13.5 Annual Average exchange rate (one U.S.$ equals cruzeiros) 67.671 408 2,780 (Jan-May) Foreign debt (U.S.$ billion) 121.0 121.3 123.3 Debt service ratio (ratio of principal and interest payments on foreign debt to foreign income)2/ 9.9 11.0 12.2 U.S. Economic Assistance none none none U.S. Military Assistance none none none C. Trade (U.S.$ billion) 1990 1991 1992(E) Total Brazilian exports 31.4 31.6 34.8 Total Brazilian imports 20.7 21.0 22.5 Exports to U.S. 8.0 6.2 7.0 Imports from U.S. 5.1 5.0 5.5 U.S. share of host-country Imports (percent) 21.3 23.8 24.4 Imports of manufactured goods: Total (from all countries) 11.9 12.5 13.1 Projected average growth rate through l994, (5.0 percent) From the U.S. 3.3 5.0 6.0 Projected average growth rate through l994, (6.0 percent): U.S. share of manufactured imports (percent) 27.7 40.0 45.0 1/ Actual inflation factors were used to adjust data to current year 1991. 2/ This would be the ratio if Brazil had been meeting its obligations. Sources: Central Bank, Bank of Brazil and the Ministry of Economy. Trade balances with leading partners in 1991 (U.S.$ millions): Brazilian imports Brazilian exports U.S.A. 4,970 6,285 Japan 1,213 2,568 Germany 1,902 2,102 Netherlands 349 2,135 Italy 792 1,348 Principal U.S. exports by tariff line item, in 1991 (U.S.$ millions): harmonized system. 2701 - Coal 284.3 2710 - Petroleum 116.8 8473 - Data Processing & Office Equipment 90.8 1104 - Wheat 69.2 2603 - Copper 68.0 Principal U.S. imports in 1991 by tariff line item (U.S.$ millions): harmonized system. 6403 - Footwear 474.1 0901 - Coffee 334.4 2009 - Orange Juice 282.5 4703 - Wood Fibers 181.4 8408 - Diesel Engines 181.0 D. Investment (U.S.$ billion) 1991 Total foreign direct investment in Brazil 36.7 U.S. direct investment in Brazil 10.6 US percent share of foreign investment in Brazil 28.9 Principal foreign investors in Brazil United States 10.6 Germany 5.2 Japan 3.6 Switerland 2.9 Sources of Data: Central Bank, Bank of Brazil, and the Ministry of Economy. II. Best Prospects These 40 sectors are determined by FCs Brazil to offer the greatest opportunities for U.S. suppliers. Selected best prospects for exports to Brazil are likely to comprise a mixture of exports which have near-term growth potential or a large market receptive to U.S. suppliers, as well as a few which were opened for exports under the new Brazilian tariff-based trading system. All are ranked roughly by dollar volume and potential for growth to 1995. U.S. exporters should be aware that landed costs of imported goods remain high, despite a decreasing federal import tariff, because of cumulative other federal, state and local taxes (see Section III for greater details). A) Rank of sector: 1 B) Name of sector: ELECTRONIC COMPONENTS C) Three-letter ITA industry sector code: ELC D) Total market size (US dols millions): - -1991 3,000 - -1992 (e) 3,150 E) Est. avg. annual growth rate of market 1992-4 (%) 5 F) Imports, total (US dols million): - -1991 2,200 - -1992(e) 2,290 G) Est.avg.annual growth rate of total imports (percent) 4 H) Imports from U.S. (US dols millions): - -1991 1,000 - -1992(e) 1,200 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 15 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 2 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 4 K) Comments: Imports account for almost half of the Brazilian market in this sector and U.S. manufacturers are believed to supply over 40 percent of these imports. This makes the United States the prime overseas source of equipment in this sector for Brazil. Prospects for modest but steady growth of imports are good, but are heavily dependent on over-all economic conditions in Brazil. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Integrated circuits: 515; Printed circuit boards: 400; Active components: 200. A) Rank of sector: 2 B) Name of sector: INDUSTRIAL CHEMICALS C) Three-letter ITA industry sector code: ICH D) Total market size (US dols millions): - -1991 9,400 - -1992 (e) 10,000 E) Est. avg. annual growth rate of market 1992-4 (%) 4 F) Imports, total (US dols million): - -1991 1,950 - -1992(e) 2,000 G) Est.avg.annual growth rate of total imports (percent) 5 H) Imports from U.S. (US dols millions): - -1991 620 - -1992(e) 700 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 4 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 4 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 4 K) Comments: The Brazilian chemical sector, after the profound reforms of President Collor, faces a strong challenge to maintain its competitiveness. Trade liberalization is forcing the Brazilian chemical industry to upgrade the quality, efficiency and pricing of its production. The U.S. is the leading supplier of industrial chemicals, followed by Germany, Switzerland and France. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Industrial Organic Chemicals: 5,700; Alcohols and Derivatives: US$ 120 million; Heterocyclic Compounds: US$ 377 million. A) Rank of sector: 3 B) Name of sector: COMPUTERS AND PERIPHERALS C) Three-letter ITA industry sector code: CPT D) Total market size (US dols millions): - -1991 3,100 - -1992 (e) 3,500 E) Est. avg. annual growth rate of market 1992-4 (%) 40 F) Imports, total (US dols million): - -1991 400 - -1992(e) 500 G) Est.avg.annual growth rate of total imports (percent) 50 H) Imports from U.S. (US dols millions): - -1991 313.5 - -1992(e) 400.0 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 40 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 3 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 3 K) Comments: The Brazilian market reserve policy, which restricted foreign participation in the computer industry, will end in October 1992. However, the new Informatics Law will offer incentives and subsidies to the Brazilian Informatics industry, including joint ventures. Imports of 42 Informatics items still require prior approval of the Department on Informatics and Automation Policy - DEPIN, at least until October 29, 1992. All other Informatics items are free for import, and theoretically, after October 1992, market access will be limited only by tariffs. Import duties for computers, peripherals and parts will be gradually reduced from 50 percent to 35 percent by July 1993. Many Brazilian and U.S. computer companies have already negotiated joint ventures, representational and distributorship agreements, to prepare for the new changes in Brazil's Informatics policy. Major foreign suppliers other than the U.S. include Taiwan, Japan, and Korea. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): high-end microcomputers:200; workstations, including CAD/CAM/CAE workstations: 110 ;Laptops and notebooks: 70; computer peripherals: disk drives: 210; monitors: 100; printers: 35; Local area networks: 13; computer graphics: 50. A) Rank of sector: 4 B) Name of sector: FRANCHISING C) Three-letter ITA industry sector code: FRA D) Total market size (US dols millions): - -1991 3,822 - -1992 (e) 4,200 E) Est. avg. annual growth rate of market 1992-4 (%) 30 F) Est. sales by foreign-owned firms (US dols million): - -1991 500 - -1992(e) 680 G) Est.avg.annual growth rate by foreign-owned firms (percent) 30 H) Est. sales by U.S.-owned firms (US dols millions): - -1991 489 - -1992(e) 640 I) Est. avg. annual growth rate of sales by U.S.-owned firms (percent) 30 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 5 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 4 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 3 K) Comments: Franchising is one of the fastest growing segments in Brazil with some sectors reaching the average growth of 100-150 percent per year. Total revenues in 1992 are expected to be $4.2 billion (excluding fuel distribution, the automobile dealers, and beverage bottling). In 1991 the number of outlets totaled 9,000. Local sources predict that by the year 2000 Brazil will be ranked among the first countries in number of outlets. Brazil has a large domestic market, diversified industrial and services sector, and an increasingly urbanized population. Country of origin of major non-U.S. franchisors: Italy (clothing). L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Fast food and convenience stores: 847.5; clothing and shoes: 586; cleaning and maintenance services: 38.5; services (including automobile repair and services, computer maintenance and repair, quick printing, etc): 550. A) Rank of sector: 5 B) Name of sector: TRAVEL AND TOURISM SERVICES C) Three-letter ITA industry sector code: TRA D) Total market size (US dols millions): - -1991 4,400 - -1992 (e) 3,960 E) Est. avg. annual growth rate of market 1992-4 (%) 8 F) Imports, total (US dols million): - -1991 1,700 - -1992(e) 1,530 G) Est.avg.annual growth rate by foreign-owned firms - (percent) 7 H) Est. sales by U.S.-owned firms (US dols millions): - -1991 900 - -1992(e) 810 I) Est. avg. annual growth rate sales by U.S.-owned - firms (percent) 10 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 5 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 3 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 4 K) Comments: USTTA estimates for Brazilian visitors to the United States in 1992 are 480,000 and 570,000 in 1993. Brazil was roughly competitive with Italy and Australia, and will pass them when the Brazilian economy recovers and has become the number 8 generator of visitors to the U.S. Airline seat capacity between Brazil and the U.S. has doubled from 1991 to 1992, including many charter flights in the high seasons. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Discretionary pleasure travel: 422; Incentive travel: 144; Educational travel: 240. A) Rank of sector: 6 B) Name of sector: HOUSEHOLD CONSUMER GOODS C) Three-letter ITA industry sector code: HCG D) Total market size (US dols millions): - -1991 1,600 - -1992 (e) 2,000 E) Est. avg. annual growth rate of market 1992-4 (%) 20 F) Imports, total (US dols million): - -1991 500 - -1992(e) 500 G) Est.avg.annual growth rate of total imports (percent) 10 H) Imports from U.S. (US dols millions): - -1991 300 - -1992(e) 300 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 10 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 4 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 5 K) Comments: The consumer goods market in Brazil has a tendency to increase due to the liberalization of imports. Although the local industry has improved, it will be able to meet only 75 percent of local demand until 1994. The remaining 25 percent will be supplied by imports. Competition from third countries is negligible due to quality and price of U.S. made products. After the U.S., the principal suppliers are France, Germany, Italy, Japan and Poland. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Household electrical appliances: 70; Housewares: 60; Textile furnishings: 50; Small appliances: 50; plastic housewares: 50. A) Rank of sector: 7 B) Name of sector: TELECOMMUNICATIONS EQUIPMENT C) Three-letter ITA industry sector code: TEL D) Total market size (US dols millions): - -1991 2,300 - -1992 (e) 3,600 E) Est. avg. annual growth rate of market 1992-4 (%) 9.8 F) Imports, total (US dols million): - -1991 498.6 - -1992(e) 571.5 G) Est.avg.annual growth rate of total imports (percent) 12 H) Imports from U.S. (US dols millions): - -1991 288.9 - -1992(e) 345.8 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 10 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 5 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 4 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 2 K) Comments: The 1992 total Brazilian telecommunications market includes equipment, training and services. Many recent positive developments have occurred on this sector and Brazilian regulations now provide ample opportunity for foreign capital to invest in the sector. American companies have formed joint ventures with many Brazilian groups to participate in leading telecommunications projects including cellular. The Brazilian government appears commited to opening this market which is a positive sign to America telecom providers. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Cellular telephone equipment: 400; Telecommunications Value-added network service: 250. A) Rank of sector: 8 B) Name of sector: AIRCRAFT AND PARTS C) Three-letter ITA industry sector code: AIR D) Total market size (US dols millions): - -1991 500 - -1992 (e) 300 E) Est. avg. annual growth rate of market 1992-4 (%) 4 F) Imports, total (US dols million): - -1991 450 - -1992(e) 290 G) Est.avg.annual growth rate of total imports (percent) 8 H) Imports from U.S. (US dols millions): - -1991 400 - -1992(e) 250 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 11 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 4 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 3 K) Comments: Although this sector has been a traditionally strong one for U.S. exports, it has been in a down-turn due to the domestic economic situation which is hurt by a persistent average monthly inflation rate of approximately 20 percent. Exporters should follow import tariff changes as they are lowered from the current high of 14 percent, the only category which enjoys an exemption is over 15,000 kg which is only subject to a domestic tax of 4 percent. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Civilian helicopters: 150; Executive/general aviation aircraft: 400. A) Rank of sector: 9 B) Name of sector: CONSUMER ELECTRONICS C) Three-letter ITA industry sector code: CEL D) Total market size (US dols millions): - -1991 1,800 - -1992 (e) 2,100 E) Est. avg. annual growth rate of market 1992-4 (%) 30 F) Imports, total (US dols million): - -1991 1,600 - -1992(e) 1,900 G) Est.avg.annual growth rate of total imports (percent) 20 H) Imports from U.S. (US dols millions): - -1991 440 - -1992(e) 500 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 10 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 1 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 5 K) Comments: With the opening of the Brazilian imports there will be an increasing market for consumer electronics in Brazil. Despite the efforts of the Brazilian industry to improve the domestic production, it will be able to cover 10 percent only of the total market demand. Japan, South Korea, Hong Kong, Taiwan and China are other large suppliers of the Brazilian market. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Video recorders and players: 500 million; Color television: 200 million; video games: 300 million; still motion picture equipment: 300. A) Rank of sector: 10 B) Name of sector: AUTOMOTIVE PARTS AND SERVICE EQUIPMENT C) Three-letter ITA industry sector code: APS D) Total market size (US dols millions): - -1991 9,000 - -1992 (e) 9,500 E) Est. avg. annual growth rate of market 1992-4 (%) 4 F) Imports, total (US dols million): - -1991 870 - -1992(e) 960 G) Est.avg.annual growth rate of total imports (percent) 7 H) Imports from U.S. (US dols millions): - -1991 235 - -1992(e) 250 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 8 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 3 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 4 K) Comments: After two years in a row experiencing a sharp decline in domestic sales, the Automotive Parts and Service market should rebound in 1992 due to more efficient output and lower relative prices in the auto industry. The deep recession this sector is going through and the increased competition from imported products has caused companies to increase production efficiency as the only way to survive. Investments in capital goods should also pick-up from 1992 on. Major foreign suppliers are the U.S. (26 percent), Japan (16 percent), and Germany (20 percent). L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Autoparts: 7.7; Automotive service equipment: 800 million; Automotive accessories: 1,000. A) Rank of sector: 11 B) Name of sector: MEDICAL EQUIPMENT C) Three-letter ITA industry sector code: MED D) Total market size (US dols millions): - -1991 1,500 - -1992 (e) 1,605 E) Est. avg. annual growth rate of market 1992-4 (%) 7 F) Imports, total (US dols million): - -1991 485 - -1992(e) 515 G) Est.avg.annual growth rate of total imports (percent) 6 H) Imports from U.S. (US dols millions): - -1991 200 - -1992(e) 215 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 7 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 3 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 3 K) Comments: Although the market in this sector is expected to contract slightly over the next few years due to inadequate government funding, U.S. suppliers are nevertheless expected to increase their share of imports in this sector to Brazil. Import liberalization in Brazil should make this sector a particularly attractive market for U.S. suppliers, who already enjoy a reputation for quality and a high level of technology. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Medical imaging: 203; electro diagnostic apparatus: 165; disposable medical products: 100. A) Rank of sector: 12 B) Name of sector: ELECTRICAL POWER SYSTEMS C) Three-letter ITA industry sector code: ELP D) Total market size (US dols millions): - -1991 1,500 - -1992 (e) 1,575 E) Est. avg. annual growth rate of market 1992-4 (%) 3 F) Imports, total (US dols million): - -1991 325 - -1992(e) 335 G) Est.avg.annual growth rate of total imports (percent) 3 H) Imports from U.S. (US dols millions): - -1991 78 - -1992(e) 80 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 2 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 2 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 2 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 4 K) Comments: Due to lack of adequate investments in the past, the Brazilian market in this sector is not expected to keep pace with the country's demand for electric power, and imports are not expected to experience growth until the mid 1990's. Manufacturers from the United States enjoy the highest reputation for quality and technology among foreign suppliers to Brazil in this sector. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Turbines for thermal power plants: 45; Electric distribution and transmission equipment: 30. A) Rank of sector: 13 B) Name of sector: AUTOMOBILES AND LIGHT TRUCKS/VANS C) Three-letter ITA industry sector code: AUT D) Total market size (US dols millions): - -1991 7,200 - -1992 (e) 7,500 E) Est. avg. annual growth rate of market 1992-4 (%) 3 F) Imports, total (US dols million): - -1991 320 - -1992(e) 350 G) Est.avg.annual growth rate of total imports (percent) 5 H) Imports from U.S. (US dols millions): - -1991 46 - -1992(e) 50 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 8 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 3 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 3 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 3 K) Comments: The gradual import duty reduction imposed on automobiles (currently 50 percent, 40 percent in October 1992, and 35 percent in July 1993) is making imported vehicles price competitive in Brazil, especially in the high-end segment. The number of automobile dealerships in major cities is rapidly increasing. All major international manufacturers have authorized dealers established locally. With the growing inflow of imported parts, the fear for lack of technical assistance is vanishing, stimulating the acquisition of imported cars and vans. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Vans: 200; Luxury cars: 320. A) Rank of sector: 14 B) Name of sector: MINING INDUSTRY EQUIPMENT C) Three-letter ITA industry sector code: MIN D) Total market size (US dols millions): - -1991 2,996 - -1992 (e) 3,050 E) Est. avg. annual growth rate of market 1992-4 (%) 1 F) Imports, total (US dols million): - -1991 310 - -1992(e) 320 G) Est.avg.annual growth rate of total imports (percent) 3 H) Imports from U.S. (US dols millions): - -1991 124 - -1992(e) 128 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 3 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 2 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 3 K) Comments: The installed mining capacity in Brazil is among the largest of the world for many minerals. The mineral potential of this country has been not fully assessed yet, although no new major investment project is planned for the next years. Most of the imports planned for the next three years are related to replacing and maintaining existing equipment. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Underground mining equipment: 437; Scrapers, graders, rollers and off-highway trucks: 300. A) Rank of sector: 15 B) Name of sector: PRINTING AND GRAPHIC ARTS EQUIPMENT C) Three-letter ITA industry sector code: PGA D) Total market size (US dols millions): - -1991 387 - -1992 (e) 425 E) Est. avg. annual growth rate of market 1992-4 (%) 10 F) Imports, total (US dols million): - -1991 295 - -1992(e) 324 G) Est.avg.annual growth rate of total imports (percent) 10 H) Imports from U.S. (US dols millions): - -1991 97.5 - -1992(e) 108 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 10 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 2 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 4 K) Comments: This sector had been seriously affected by the import substitution policy that had prevailed in Brazil for about two decades, and the industry made few investments in modernizing until the Brazilian government lowered import tariffs of most printing and graphic arts equipment in 1990 with a temporary zero import tariff through 1992. Should this exemptions not be extended, tariffs will range at around 30 percent, declining to 20 percent in 1994. The U.S. and Germany compete strongly, with Germany being the leading supplier. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): composition equipment: 20.4; offset machinery: 72.5. A) Rank of sector: 16 B) Name of sector: LABORATORY AND SCIENTIFIC INSTRUMENTS C) Three-letter ITA industry sector code: LAB D) Total market size (US dols millions): - -1991 580 - -1992 (e) 609 E) Est. avg. annual growth rate of market 1992-4 (%) 5 F) Imports, total (US dols million): - -1991 292 - -1992(e) 321 G) Est.avg.annual growth rate of total imports (percent) 10 H) Imports from U.S. (US dols millions): - -1991 94 - -1992(e) 101.5 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 8 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 4 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 4 K) Comments: The policy of the Brazilian government to open the market to stimulate domestic competition and productivity will have a positive effect on the market for Laboratory and Scientific Instruments. To accomplish the goal of the government and to meet the competition of imported products, domestic industries and research institutions will require a level of sophisticated instruments that are only available outside Brazil. Major foreign suppliers after the U.S. are Japan and Germany. The average import duties in this sector in 1992 is 20 percent. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Laboratory chemical analysis instruments: 64; chromatographic and spectroscopical equipment: 35. A) Rank of sector: 17 B) Name of sector: TEXTILE MACHINERY AND EQUIPMENT C) Three-letter ITA industry sector code: TXM D) Total market size (US dols millions): - -1991 430 - -1992 (e) 450 E) Est. avg. annual growth rate of market 1992-4 (%) 6 F) Imports, total (US dols million): - -1991 280 - -1992(e) 300 G) Est.avg.annual growth rate of total imports (percent) 15 H) Imports from U.S. (US dols millions): - -1991 7 - -1992(e) 7.4 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 5 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 3 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 2 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 5 K) Comments: In order to increase competitiveness of the textile industry and reduce the pressure of textile products on domestic inflation rates (over the past few years, textile producers have been often blamed for abusive price increases), the Brazilian government removed the import tariffs on non-locally produced machinery. The leading suppliers of imported textile equipment are Germany, Switzerland, Japan and the Asian Tigers (Korea, Taiwan and Hong Kong). The U.S. is an important supplier of computerized systems for the apparel industry. Imports of these products are duty-free. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Looms: 50; Industrial sewing machines: 56; computerized systems for the apparel industry; 5. A) Rank of sector: 18 B) Name of sector: AIR CONDITIONING AND REFRIGERATION EQUIPMENT C) Three-letter ITA industry sector code: ACR D) Total market size (US dols millions): - -1991 2,000 - -1992 (e) 2,000 E) Est. avg. annual growth rate of market 1992-4 (%) 1 F) Imports, total (US dols million): - -1991 180 - -1992(e) 186 G) Est.avg.annual growth rate of total imports (percent) 3 H) Imports from U.S. (US dols millions): - -1991 50 - -1992(e) 52 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 3 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 3 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 3 K) Comments: Brazil is well known for having one of the largest markets for air conditioning and refrigeration equipment in the world. A wide range of equipment is sold to be used in almost all kinds of residences and commercial and industrial buildings. Brazil also has a developed air conditioning industry, which generates an export volume of nearly US dols 300 million yearly. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): compressors and parts thereof: 100; other parts and components, sold separately: 400. A) Rank of sector: 19 B) Name of sector: MACHINE TOOLS AND METALWORKING EQUIPMENT C) Three-letter ITA industry sector code: MTL D) Total market size (US dols millions): - -1991 400 - -1992 (e) 420 E) Est. avg. annual growth rate of market 1992-4 (%) 5 F) Imports, total (US dols million): - -1991 176 - -1992(e) 193 G) Est.avg.annual growth rate of total imports (percent) 7 H) Imports from U.S. (US dols millions): - -1991 26 - -1992(e) 28 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 10 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 2 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 5 K) Comments: The U.S. is the second largest (to Germany) supplier of machine-tools to Brazil and has possibilities to increase exports of numerically controlled equipment, since Brazilian importers are usually large firms demanding state- of-the-art technology. Conventional U.S. machinery faces difficulties in competing with similar locally-made products, since Brazilian firms have efficient distribution channels, provide technical assistance and offer financing. Import duties are scheduled to decrease from 25 for conventional machinery and 45 for numerically controlled machinery to 20 and 25 percent, respectively in 1994. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Metal cutting machine-tools: 352; Laser marking and laser cutting machine-tools: 10; Industrial robots: 10; CNC tube bending machines: 10. A) Rank of sector: 20 B) Name of sector: IRON AND STEEL C) Three-letter ITA industry sector code: IRN D) Total market size (US dols millions): - -1991 7,000 - -1992 (e) 7,200 E) Est. avg. annual growth rate of market 1992-4 (%) 1 F) Imports, total (US dols million): - -1991 136 - -1992(e) 170 G) Est.avg.annual growth rate of total imports (percent) 3 H) Imports from U.S. (US dols millions): - -1991 9 - -1992(e) 10 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 3 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptitivy to U.S. products and services: 3 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 1 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 2 K) Comments: Import duties for steel products in Brazil have been largely reduced in the last two years. Most products of this sector will have an import duty of 10 percent after January 93. The only requirement for importing iron and steel products into Brazil is an import license, which is normally issued in four to seven days. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): stainless steel sheets: 700; steel rails: 200; tinplate: 200; galvanized sheets: 280. A) Rank of sector: 21 B) Name of sector: YARNS C) Three-letter ITA industry sector code: YAR D) Total market size (US dols millions): - -1991 7,000 - -1992 (e) 7,200 E) Est. avg. annual growth rate of market 1992-4 (%) 10 F) Imports, total (US dols million): - -1991 116 - -1992(e) 125 G) Est.avg.annual growth rate of total imports (percent) 12 H) Imports from U.S. (US dols millions): - -1991 22 - -1992(e) 25 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 15 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 3 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 2 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 5 K) Comments: Prior to 1988 imports of yarns were insignificant. However, the opening of the Brazilian market to imported product started in 1990, pushed imports of yarns to US $125 million in 1992. Yarn imports are expected to reach US$ 336 million in 1995. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Spun yarns, other yarns and threads: 6,500; Filament yarns: 1,000. A) Rank of sector: 22 B) Name of sector: PROCESS CONTROLS - INDUSTRIAL C) Three-letter ITA industry sector code: PCI D) Total market size (US dols millions): - -1991 365 - -1992 (e) 410 E) Est. avg. annual growth rate of market 1992-4 (%) 12 F) Imports, total (US dols million): - -1991 110 - -1992(e) 120 G) Est.avg.annual growth rate of total imports (percent) 8 H) Imports from U.S. (US dols millions): - -1991 50 - -1992(e) 55 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 9 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 2 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 4 K) Comments: The U.S. is one of the main suppliers of PCI to Brazil. Sectors expected to make significant investments in PCI are the chemical, petroleum and petrochemical, pulp and paper, oil and gas extraction, and primary metals industries. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): DCDS-Distributed control digital systems: 85; Process controls for the oil and gasfield industries: 76; Programmable logic controllers: 50. A) Rank of sector: 23 B) Name of sector: TEXTILE FABRICS C) Three-letter ITA industry sector code: TXF D) Total market size (US dols millions): - -1991 16,700 - -1992 (e) 17,300 E) Est. avg. annual growth rate of market 1992-4 (%) 12 F) Imports, total (US dols million): - -1991 110 - -1992(e) 122 G) Est.avg.annual growth rate of total imports (percent) 10 H) Imports from U.S. (US dols millions): - -1991 7 - -1992(e) 24 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 20 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 2 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 5 K) Comments: U.S. made fabrics enjoy a reputation of having high quality, however the market is very competitive and the decision to import is based primarily on the price and quality of the product. The foreign supplier is expected to present a product with superior distinguishable qualities than the ones produced locally but at a similar price level. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): cotton fabrics: 5,000; synthetic fabrics: 3,600; non-woven fabrics: 9. A) Rank of sector: 24 B) Name of sector: OIL AND GASFIELD MACHINERY AND SERVICES C) Three-letter ITA industry sector code: OGM D) Total market size (US dols millions): - -1991 1,210 - -1992 (e) 1,235 E) Est. avg. annual growth rate of market 1992-4 (%) 2 F) Imports, total (US dols million): - -1991 95 - -1992(e) 100 G) Est.avg.annual growth rate of total imports (percent) 5 H) Imports from U.S. (US dols millions): - -1991 45 - -1992(e) 47.5 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 5 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 3 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 2 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 4 K) Comments: The Brazilian market in this sector has been stagnant due to constitutional restrictions on foreign participation in exploration and thus to a lack of investments needed to facilitate rapid growth in exploration and production. While the United States is the largest supplier of imports to Brazil in this sector, U.S. manufacturers' share of the import market has been falling as other foreign suppliers endeavor to offer more attractive financing. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Drill bits: 25; Offshore oil/gas/exploit equipment: 300, Gas transmission equipment 350.. A) Rank of sector: 25 B) Name of sector: PLASTICS PRODUCTION MACHINERY C) Three-letter ITA industry sector code: PME D) Total market size (US dols millions): - -1991 207.5 - -1992 (e) 219.7 E) Est. avg. annual growth rate of market 1992-4 (%) 4 F) Imports, total (US dols million): - -1991 93.2 - -1992(e) 99.7 G) Est.avg.annual growth rate of total imports (percent) 5 H) Imports from U.S. (US dols millions): - -1991 11.0 - -1992(e) 12.0 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 3 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 4 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 3 K) Comments: With a total installed capacity of 45 thousand machines for processing plastics, in nearly 5,000 transforming companies, Brazil has the largest industrial base of Latin America. The average age of this equipment is 10 years. Businessmen from the sector estimate that 60 percent of the industrial capacity of plastics production machines will have to be replaced in the coming years, which represents almost 5 thousand units per year. The U.S. is the third largest supplier of plastics production machinery to Brazil and has possibilities of increasing exports of state- of-the-art equipment, as Brazilian importers are demanding advanced technology. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Extruders: 8.6 ; blow-molding machines: 7.2; vacuum-molding machines: 7.2. A) Rank of sector: 26 B) Name of sector: BOOKS AND PERIODICALS C) Three-letter ITA industry sector code: BOK D) Total market size (US dols millions): - -1991 532 - -1992 (e) 553.3 E) Est. avg. annual growth rate of market 1992-4 (%) 6 F) Imports, total (US dols million): - -1991 65 - -1992(e) 68.4 G) Est.avg.annual growth rate of total imports (percent) 8 H) Imports from U.S. (US dols millions): - -1991 39 - -1992(e) 42 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 7 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 5 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 4 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 5 K) Comments: Brazil is a prime market for technical, scientific and professional books. Since there are upwards of 800,000 English-language students in Brazil, dictionaries and other reference books, heretofore dominated by the British, should be promoted. Periodicals of all sorts should benefit from the Brazilian government's allowance of the use of international postal money orders to buy periodicals and books. Major foreign suppliers include the U.K., Spain, Portugal, Germany, France and Japan. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Technical, scientific and professional books: 287; Business and professional periodicals: 35; Dictionaries and thesauruses, enclyclopedias: 2; artbooks: 34. A) Rank of sector: 27 B) Name of sector: PULP AND PAPER MACHINERY C) Three-letter ITA industry sector code: PUL D) Total market size (US dols millions): - -1991 100 - -1992 (e) 150 E) Est. avg. annual growth rate of market 1992-4 (%) 40 F) Imports, total (US dols million): - -1991 50 - -1992(e) 70 G) Est.avg.annual growth rate of total imports (percent) 20 H) Imports from U.S. (US dols millions): - -1991 36 - -1992(e) 40 I) Est. avg. annual growth rate of imports from the U.S. - (percent) 15 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 5 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 4 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 5 K) Comments: The pulp and paper industry in Brazil is developing fast. Local production is still negligible and does not meet the market demand either in quantity or quality. The liberalization of Brazilian imports is an important factor making Brazil a good market for this kind of machinery. L) List of most promising subsectors within the sector, along with estimated 1992 total market size of each subsector (US dols. millions): Pulp making machinery: 30; Paper and paperboard making machinery: 40. 3A) Rank of sector: 28 B) Name of sector: WATER RESOURCES EQUIPMENT C) Three-letter ITA industry sector code: WRE D) Total market size (US dols millions): - -1991 260 - -1992 (e) 270 E) Est. avg. annual growth rate of market 1992-4 (%) 5 F) Imports, total (US dols million): - -1991 33 - -1992(e) 35 G) Est.avg.annual growth rate of total imports (percent) 5 H) Imports from U.S. (US dols millions): - -1991 5.5 - -1992(e) 6 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 8 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 3 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 4 K) Comments: The demand for products and equipment in this sector will depend largely on investments performed by municipal water companies. The precarious water supply and sewage collection conditions in most Brazilian cities require considerable investments that are waiting for federal or foreign financing. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): water treatment and distribution equipment: 330; exploration, mapping, development equipment: 40. A) Rank of sector: 29 B) Name of sector: SECURITY AND SAFETY EQUIPMENT C) Three-letter ITA industry sector code: SEC D) Total market size (US dols millions): - -1991 500 - -1992 (e) 525 E) Est. avg. annual growth rate of market 1992-4 (%) 10 F) Imports, total (US dols million): - -1991 31 - -1992(e) 34 G) Est.avg.annual growth rate of total imports (percent) 10 H) Imports from U.S. (US dols millions): - -1991 18 - -1992(e) 20 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 10 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 2 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 4 K) Comments: Demand for security equipment is rapidly increasing, but locally-manufactured products lack technological advancements more common in foreign manufactured equipment. Reduced import duties and the elimination of non-tariff barriers means the Brazilian market now offers considerable potential for foreign suppliers in this sector. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Security equipment: 250. A) Rank of sector: 30 B) Name of sector: ELECTRONICS INDUSTRY PRODUCTION AND TEST EQUIPMENT C) Three-letter ITA industry sector code: EIP D) Total market size (US dols millions): - -1991 65 - -1992 (e) 70 E) Est. avg. annual growth rate of market 1992-4 (%) 8 F) Imports, total (US dols million): - -1991 30 - -1992(e) 33 G) Est.avg.annual growth rate of total imports (percent) 10 H) Imports from U.S. (US dols millions): - -1991 25 - -1992(e) 26 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 3 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 3 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 3 K) Comments: The Brazilian government's industrial development policy emphasizes the strategic importance of the electronic components industry, essential to the establishment of an internationally-competitive Brazilian electronics sector. Brazil will have to reduce the technological gap with more advanced nations and in order to do this, state-of-the-art production and test equipment will have to be imported by the local industry in larger quantities than practiced to date. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Circuit component assembly equipment: 26; Integrated circuit testers: 10; Encapsulating equipment: 10. A) Rank of sector: 31 B) Name of sector: TOYS AND GAMES C) Three-letter ITA industry sector code: TOY D) Total market size (US dols millions): - -1991 50 - -1992 (e) 55 E) Est. avg. annual growth rate of market 1992-4 (%) 30 F) Imports, total (US dols million): - -1991 30 - -1992(e) 35 G) Est.avg.annual growth rate of total imports (percent) 15 H) Imports from U.S. (US dols millions): - -1991 20 - -1992(e) 25 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 20 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 3 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 2 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 5 K) Comments: The liberalization of the Brazilian imports makes it favourable to the entry of foreign products. Other countries selling to Brazil are Japan, South Korea, Taiwan, Hong Kong, China and Italy. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Electronic games: 15; Educational toys: 15; Pre-school toys: 10 million. A) Rank of sector: 32 B) Name of sector: COMPUTER SOFTWARE AND SERVICES C) Three-letter ITA industry sector code: CSF D) Total market size (US dols millions): - -1991 1,600 - -1992 (e) 2,200 E) Est. avg. annual growth rate of market 1992-4 (%) 30 F) Imports, total (US dols million): - -1991 25 - -1992(e) 34 G) Est.avg.annual growth rate of total imports (percent) 20 H) Imports from U.S. (US dols millions): - -1991 24 - -1992(e) 32 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 30 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 4 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 4 K) Comments: Market access is relatively barrier free, but restrictions still exist for imports of software based on the Software Law of December 1987, which regulates software marketing and copyright protection in Brazil. As of August 1992 the Brazilian Congress had not yet voted on a proposed new Software Bill, which would liberaliza the distribution of software imports and abolish the "National Similars" test for imports of software. 1992 market estimates for the whole sector including services is US$2.2 billion, of which US$360 million is software. Approximately 95 percent of imported software comes from the United States. US dols. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): PC software (including CAE/CAD/CAM software for mechanical and manufacturing applications: 45; Software for mainframe and minicomputers: 90; Lan software: 13; Graphics software: 1.3. A) Rank of sector: 33 B) Name of sector: POLLUTION CONTROL EQUIPMENT C) Three-letter ITA industry sector code: POL D) Total market size (US dols millions): - -1991 245 - -1992 (e) 270 E) Est. avg. annual growth rate of market 1992-4 (%) 5 F) Imports, total (US dols million): - -1991 25 - -1992(e) 30 G) Est.avg.annual growth rate of total imports (percent) 10 H) Imports from U.S. (US dols millions): - -1991 6 - -1992(e) 8 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 10 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 3 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 4 K) Comments: Local sources estimate that the market potential for pollution control equipment reaches US dols. 1.4 billion in Brazil. However, due to the economic recession the country is going through, companies in nearly all industry sectors are postponing investments necessary to comply with parameters set by environmental agencies. If the economy recovers and production output increases, this market should grow considerably. Major foreign suppliers are Germany, France, and the U.S. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Liquid wastes treatment equipment: 120; Air pollution control equipment: 120; solid wastes treatment equipment: 30. A) Rank of sector: 34 B) Name of sector: PACKAGING EQUIPMENT C) Three-letter ITA industry sector code: PKG D) Total market size (US dols millions): - -1991 125 - -1992 (e) 130 E) Est. avg. annual growth rate of market 1992-4 (%) 3 F) Imports, total (US dols million): - -1991 24 - -1992(e) 25 G) Est.avg.annual growth rate of total imports (percent) 4 H) Imports from U.S. (US dols millions): - -1991 5.4 - -1992(e) 6 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 5 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 3 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 4 K) Comments: The lower production output experienced by almost every industrial sector in the last two years has reduced expansion investments. Therefore, the acquisition of capital goods such as packaging equipment has been sharply reduced. However, stricter enforcement of consumer rights regarding package quality and product conservation, the increasing competition coming from imported products, and the general awareness for environmentally friendly packages, are forcing companies to seek higher packaging quality. These three factors may cause investments in packaging technology to rise in the next couple of years. Major foreign suppliers are Italy, Argentina, Germany, and the U.S. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): forming, filling, and sealing machinery; 20; label imprinting machinery; 20; liquid filling equipment: 15. A) Rank of sector: 35 B) Name of sector: FOOD PROCESSING EQUIPMENT C) Three-letter ITA industry sector code: FPP D) Total market size (US dols millions): - -1991 199.5 - -1992 (e) 166.5 E) Est. avg. annual growth rate of market 1992-4 (%) 8 F) Imports, total (US dols million): - -1991 21.6 - -1992(e) 27.5 G) Est.avg.annual growth rate of total imports (percent) 10 H) Imports from U.S. (US dols millions): - -1991 6.8 - -1992(e) 7.3 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 8 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 2 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 3 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 4 K) Comments: Brazil is a special market, just opening up to imports under the new market rules implemented by the Brazilian government. Technological advantages in this industry have been very slow, but picking up lately. A few multinational companies have invested in the modernization of their Brazilian subsidiaries, transferring state-of-the-art equipment and processes to their local affiliates. The industrial policy implemented by the government, that forsees the upgrading of the Brazilian industrial sector, is favoring imports of technologically-advanced equipment as the market has a repressed demand and is facing the competition of imported food products. Major foreign suppliers: Argentina, Germany, Italy, U.S.. The average import duties in this sector are to decrease up to 1994 as follows: 1992: 25 percent; 1993: 20 percent; 1994: 20 percent. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Testing/Inspecting/Weight Control Machinery: 36.6; Bakery Machinery and Equipment: 24.3; Dairy Processing Equipment: 37.5. A) Rank of sector: 38 B) Name of sector: FORESTRY AND WOODWORKING MACHINERY C) Three-letter ITA industry sector code: FOR D) Total market size (US dols millions): - -1991 30 - -1992 (e) 25 E) Est. avg. annual growth rate of market 1992-4 (%) 30 F) Imports, total (US dols million): - -1991 20 - -1992(e) 10 G) Est.avg.annual growth rate of total imports (percent) 20 H) Imports from U.S. (US dols millions): - -1991 1.4 - -1992(e) 4.0 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 30 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 4 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 5 K) Comments: More rational and orderly exploration of Brazilian wood resources indicates a continuing need for advanced woodworking machinery and equipment. Major foreign suppliers after the U.S. are Sweden, Finland, Germany and Italy. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Lumber mill equipment: 3; Dry kilns: 2; Log skidders: 10; Plywood and veneer machinery: 5; Log transportation trucks: 5. A) Rank of sector: 39 B) Name of sector: MUSICAL INSTRUMENTS C) Three-letter ITA industry sector code: MUS D) Total market size (US dols millions): - -1991 20 - -1992 (e) 30 E) Est. avg. annual growth rate of market 1992-4 (%) 30 F) Imports, total (US dols million): - -1991 15 - -1992(e) 25 G) Est.avg.annual growth rate of total imports (percent) 40 H) Imports from U.S. (US dols millions): - -1991 10 - -1992(e) 20 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 50 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 5 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 4 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 5 K) Comments: The musical instruments industry in Brazil is negligible. Items of foreign origin find a good market in Brazil. With Brazilian import liberalization, the purchase of musical instruments from other countries will increase. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Wind musical instruments: 10; String musical instruments: 5; Pianos: 5; Percussion instruments: 5; keyboard pipe organs: 5. A) Rank of sector: 38 B) Name of sector: FURNITURE C) Three-letter ITA industry sector code: FUR D) Total market size (US dols millions): - -1991 40 - -1992 (e) 60 E) Est. avg. annual growth rate of market 1992-4 (%) 10 F) Imports, total (US dols million): - -1991 10 - -1992(e) 15 G) Est.avg.annual growth rate of total imports (percent) 50 H) Imports from U.S. (US dols millions): - -1991 5 - -1992(e) 7 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 45 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 4 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 3 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 5 K) Comments: The furniture industry, especially wooden furniture, is being developed in Brazil at a moderate pace. Metal furniture manufacturing is still incipient. The liberalization of Brazilian imports is an important factor, making Brazil a good market for these products. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Household furniture: 30; Office furniture: 30. A) Rank of sector: 39 B) Name of sector: AIRPORT AND GROUND SUPPORT EQUIPMENT C) Three-letter ITA industry sector code: APG D) Total market size (US dols millions): - -1991 50 - -1992 (e) 40 E) Est. avg. annual growth rate of market 1992-4 (%) 3-5 F) Imports, total (US dols million): - -1991 5 - -1992(e) 4 G) Est.avg.annual growth rate of total imports (percent) 4.5 H) Imports from U.S. (US dols millions): - -1991 9 - -1992(e) 20 I) Est. avg. annual growth rate of imports from the - U.S. (percent) 1-3 J-1)On a scale of 1 (lowest) to 5 (highest), evaluate - country's receptivity to U.S. products and services: 3 J-2)Competition: on a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic and third country suppliers: 2 J-3)Market barriers: on a scale of 1 (very severe) - to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of these products or services; consider both government and private sector barriers: 3 K) Comments: The principal user of equipment in this category is INFRAERO, which is a Brazilian para-statal. While early export predictions were positive, the market has failed to change because Eximbank has been off-cover to the Brazilian public sector and alternative financing has not been available. EMBRAER has continued to procure national product. L) List of most promising subsectors within the sector, along with estimated 1992 market size of each subsector (US dols. millions): Airport ground services equipment: 35. Persons interested in these sectors may contact the nearest District Office of the U.S. Department of Commerce, the Brazil Desk in Washington at (202) 377-3871, or any one of the US&FCS posts in Brazil. For inquiries direct to the posts, interested firms should note that they have specific sectoral responsibilities as follows: Brasilia Agricultural Chemicals (agc) Agricultural Machinery & Eq. (agm) Agricultural Services (ags) Aircraft and Parts (air) Aviation/Helicopter Services (ahs) Chemical Production Machinery (chm) Drugs and Pharmaceuticals (drg) Industrial Chemicals (ich) Processed Foods (fod) Telecommunications Equipment (tel) Telecommunications Services (tes) Rio de Janeiro Audio Visual Equipment (auv) Biotechnology (btc) Commercial Fishing Equipment (cfe) Education and Manpower Training Services (eds) Electronic Components (elc) Electrical Power Systems (elp) Electronics Industry Production and Test Equipment (eip) Employment Services (emp) Health Care Services (hcs) Process Control-Industrial (pci) Medical Equipment (med) Oil and Gas Field Machinery and Services (ogm) Security & Safety Equipment (sec) Sporting Goods (spt) Marine Fisheries (mfi) Sao Paulo Accounting Services (act) Advertising Services (adv) Architectural, Construction, Engineering Services (ace) Laboratory and Scientific Instruments (lab) Insurance Services (ins) Hotel and Restaurant Equipment (htl) Leasing Services (les) Plastic Materials and Resins (pmr) Plastics Production Machinery (pme) Apparel (app) Automobiles & light trucks/vans (aut) Automotive Parts and Accessories (aps) Books and Periodicals (bok) Business Equipment (non-computer) (bus) Computers and Peripherals (cpt) Computer Software and Services (csf) Food Processing and Packaging Equipment (fpp) Franchising (fra) Jewelry (jlr) Machine Tools and Metalworking Equipment (mtl) Management Consulting Services (mcs) Operations and Maintenance Services (oms) Railroad Equipment (rre) Pollution Control Equipment (pol) Textile Fabrics (txf) Textile Machinery and Equipment (txm) Textile Products, Made-Up (txp) Travel & Tourism Services (tra) Trucks, Trailers, and Buses (trk) Water resources equipment (wre) Yarns (yar) Belem Consumer Electronics (cel) Cosmetics and Toiletries (cos) Footwear (fot) Forestry and Woodworking Machinery (for) Furniture (fur) Household Consumer Goods (hcg) Musical Instruments (mus) Pulp and Paper Machinery (pul) Toys and Games (toy) Belo Horizonte Air conditioning and refrigeration equipment (acr) Building Products (bld) Construction Equipment (con) General Industry Equipment (gle) Iron and Steel (irn) Materials Handling Machinery (mhm) Mining Industry Equipment (min) Pumps, valves and compressors (pvc) III. Commercial Environment A. Political Factors: Brazil is a democratic intermediate developing nation with the tenth largest market economy in the world. It has a diversified industrial, agricultural, and services base, a GDP of U.S.$ 420 billion, and a wealth of resources, both human and material, on 48 percent of the landmass of Latin America. President Fernando Collor, the first democratically-elected President in over two decades, took office in March 1990. President Collor pledged to open up the Brazilian economy to imports, sell off parastatal firms, diminish the discretionary role of government bureaucrats in the workings of the Brazilian economy, and, in general, to concentrate the government's efforts to taming inflation, fostering eduction, healthcare, and social justice. Among the notable successes of the Collor government are trade liberalization, decreasing the size of the federal bureaucracy, and the creation of a more market-oriented economic system relatively free of government interference. Other successes have included the sell-off of some parastatals, the easing of rules of investment and remittances by foreigners, and the adherence of Brazil to the Southern Cone Common Market (MERCOSUL) and to the principles of the Enterprise for the Americas Initiative. Brazil is also attempting to put its financial situation in order via pending agreements with the IMF, the Paris Club and its commercial creditor banks. However, there are significant problems remaining, and prospects for success in the near-term are open to question. One of these is inflation, which remains stubbornly at the 20 percent per month figure despite a sharp cutback in Brazilian Federal Government (GOB) outlays, and an orthodox monetary policy that has had deep recessionary effects on the country. Another is the inability of the GOB to get many of its programs passed by Congress. These include several significant constitutional amendments, fiscal reform, and an intellectual property rights bill. In addition, the GOB has been plagued by charges of corruption, none of which have been judged in court, but which continute to hamstring the process of governance. B. Economic Factors: Upon assuming office in March 1990, President Collor began to implement sweeping economic reforms to stop inflation and integrate Brazil into the developed world. Although Collor's first two economic programs signif cantly reduced trade barriers and other distortions, the failure to address Brazil's large structural fiscal deficits has resulted in double-digit monthly inflation rates and a general lack of confidence in the government's economic polices. With inflation running at 20 percent per month in May 1992, the government is hoping to pass a tax reform package before the end of the year. Such a package -- in conjuction with a comprehensive debt accord with commercial banks -- would help place Brazil's economy on a sustainable growth path. C. Commercial Factors: The Collor government opened Brazil's borders to imports, and now controls imports through tariffs. The last of the market reserve barriers, on informatics goods, will end in October 1992. In addition, most import tariffs have been falling over a four-year period which ends in 1994, when Brazil will have an average tariff of 20 percent. For products with no similar produced in Brazil, importers can petition the GOB for a zero tariff. U.S. exporters should keep in mind, however, the additional taxes and fees can bring the landed cost of many imports to 100 percent of FOB prices. Capital goods, however, have been exempted from the industrial products tax through 1993 as a means of improving Brazilian competitiveness. The Ministry of Economy's DECEX (Departamento Nacional de Comercio exterior), which replaced CACEX, is responsible for the day-to-day administration of import and export licensing via the Bank of Brazil. Bank of Brazil offices normally issue import licenses within five to seven days of application by a registered importer, although there are some reports of longer delays. Through sectorial commisions, the GOB intends to analyze the industrial competitiveness of Brazilian industry and to liberalize those sectors which require, for example, less bureaucratic intervention or lower import duties. On June 20, 1991, Brazil signed with the United States a framework agreement under the "Enterprise for the Americas Initiative" of President Bush, along with Argentina, Uruguay, and Paraguay (the MERCOSUL). Under this agreement, negotiations are to be held in and 1992 leading to a free trade area and increased investments among the signatory countries. The U.S. ultimately envisions combining various bilateral and plurilateral agreements with Latin American countries to create a hemispheric system of free trade in Latin America. To achieve this, free trade agreements evolving from the Enterprise for the Americas will need to be largely consistent in scope and terms with each other and with the form of the North American Free Trade Agreement. Investment Issues: Investors should be familiar with the 1988 constitution, which contains restrictions against foreign capital in selected industry areas including mining, petroleum production and refining, public utilities, media, real estate, shipping, and various "strategic industries." More specific investment restrictions apply in the informatics, telecommunications, and defense industries. Even with the existing restrictions, Brazil warrants a close look because of its large domestic market, relatively high per capita income, and diversified industrial and services sectors. Brazil has begun a major privatizaton program with ten sales concluded by mid-1992, but delays may be encountered due to court challenges. There are limits on the amount of stock of privatized firms that can be purchased by foreign investors. The rules governing privatization limit foreign ownership to 40 percent in the first sale of the state enterprise, but foreign companies can buy up to 49 percent of the privatized firm during a subsequent resale. Foreign capital invested in privatization must stay in Brazil for six years before it can be repatriated. Current foreign investment in Brazil is U.S.$ 36.7 billion, of which the U.S. holds U.S.$ 10.6 billion or 28.9%, Germany has U.S.$ 5.2 billion, Japan has U.S.$ 3.6 billion, and Switzerland has U.S.$ 2.9 billion. (Source: Central Bank of Brazil) As yet, no changes have been made in the regulations regarding the foreign investment law. The situation is being studied by the GOB, and changes to reflect Collor's frequently stated welcome to such investors are expected. General Attitude: The change of government in March of 1990 offered Brazil the opportunity for accelerated progress in many areas. Many Brazilians remain sensitive to any possibility of "exploitation" by foreign business interests, and the 1988 constitution reflects this characteristic. The aging capital plant of the country, the increased need for technology in order to compete worldwide, pent-up domestic demand for foreign goods and services, and the youthful and growing population appear to be propeling the government to further accelerate the pace of change toward a fully-functioning market economy. Laws/Codes: The GOB has proposed a variety of changes that it wishes to make to laws affecting trade and investment. The Congress, which took office in February 1991, is only gradually looking at legislative initiatives. Changes will come slowly. New provisions on capital goods, waiving industrial product tax and accelerating depreciation, were passed, but only for a limited time, into 1993. Ownership: As mentioned earlier, there are ownership restrictions for foreigners in key sectors such as mining, petroleum, aviation, informatics, telecommunications, public utilities, real estate, media, shipping, and defense. In general, in these sectors foreigners may only control 30 to 49 percent of voting stock. U.S. firms interested in these areas should consult competent attorneys concerning these restrictions. Marketing Considerations: Despite the continuing problems of initial market entry, the infrequent exporter can benefit from Brazil's market size and need for capital equipment and technology in a marketing campaign that stresses medium to long-term growth of import share. Just as an experienced Brazilian representative or distributor is essential to U.S. export growth, so too is the need to consider competitive financing, distributor support, and training. U.S. exporters should be alert to all provisions of the laws governing the use of agents and distributors, as these include potentially large settlements at termination. In those areas where U.S. exporters choose to compete, import market share almost always grows quickly, as Brazilians have a keen interest to buy U.S. goods. Indeed, the U.S. is the largest trading partner, the largest investor, and most U.S. multinationals have been in Brazil for decades. It has been estimated that half the bilateral trade flow in each direction is for multinationals. A potential exporter to Brazil should keep in mind the demographics and the diversified industrial and talent bases of the country, which sometimes tend to be overshadowed by the economic uncertainties. Commercial Outlook: 1993 should show a growth in U.S. exports of six percent. Should Congress pass other liberalizing measures proposed by the GOB which reduce non-tariff barriers, U.S. exports could grow even more significantly. For the private sector, capital equipment needs are quite substantial, particularly in energy, telecommunications, and transportation. Section II provides a listing of best prospects, with growth forecasts. The Collor government aspires to turn Brazil into a fully functioning market economy as rapidly as possible. Thus, there is every promise that the GOB will continue to liberalize, streamline, and modify trade measures and seek to attract new investment in the months and years ahead. D. Social and Cultural Factors: Urban growth has been rapid. By 1984 the urban sector included more than two-thirds of the total population. Increased urbanization has aided economic development but, at the same time, has created serious social and political problems in the major cities. Indigenous full-blooded Indians, located mainly in the northern and western border regions and in the upper Amazon Basin, constitute less that one percent of the population. Their numbers are rapidly declining as contact with the outside world and commercial expansion into the interior increase. Brazilian government programs to establish reservations and to provide other forms of assistance have been in effect for years but are increasingly controversial. Brazil is the only Portuguese-speaking nation in the Americas. About 90 percent of the population belongs to the Roman Catholic Church, although many Brazilians adhere to Protestantism and spiritualism. As its geography, population size, and ethic diversity would imply, Brazil's cultural profile and achievements are extensive, vibrant, and constantly changing. IV. Financing Environment: Because Brazil has such a diversified economy with a sophisticated banking sector, each financing package for each project should be examined on its merits, rather than simply discarded on the basis that Brazil has financing problems. The wise trader/financier will keep in mind that this market has been, and will continue to be, one of the largest in the world. Basis of Payment and Financing Regulations: On February 27, 1991, the Central Bank of Brazil issued Resolution 1798 which ended the previous requirement that Brazilian importers obtain financing abroad. As of this date all imports may be paid on sight. Central bank resolution number 1537/88, which defines payment terms for imports financed abroad, was revoked in 1991. Payment conditions are now negotiated between the financing institution and the loan maker. FIRCE (the Central Bank agency responsible for regulating Brazil's foreign capital) only controls financing for which the term of payment exceeds one year. For shorter term financing, DECEX (the Brazilian government agency responsible for foreign trade), merely fills in a form with payment conditions. The Central Bank authorizes remittances only as follows: Payment Terms as of June 1992 181 Days: LIBOR 0.625 per year 360 Days LIBOR 0.6875 per year Over One Year LIBOR 0.875 per year Local Financing Possibilities: Commercial Banks in Brazil do not provide long-term cruzeiro financing due to prevailing high inflation and high interest rates. The Brazilian Bank for Economic and Social Development (BNDES) finances imported capital goods with funds from the Interamerican Development Bank and the World Bank. The operationis done through BNDES' financial agents which are most of the local private banks. The price of the equipment is converted into the local currency, cruzeiros, and the loan maker will only reimburse cruzeiros. The maximum coverage is 85 percent of the equipment FOB price for non-locally produced goods and 50 for equipment available in Brazil. The financing cannot exceed U.S.$1 million. The repayment period for small companies (net sales of less than U.S.$130,000 per year) is five years and four years for medium and large firms, with a grace period of six months after the start of operation of the imported equipment. The grace period cannot exceed two years. The interest rate as of June 1992 is 11.4 per year, which included the financial agent's commission. Brazil's banking system is very sophisticated and diverse. Almost all consumer bills (gas, telephone, light, rent, etc.) are collected by banks. In order to meet the demand for these services, the local banks have developed a very sophisticated system of check clearing and the collection of receivables. It takes on 24 hours to clear checks between cities located within a distance of 250 miles. There are not restrictions on inter-state banking, this has stimulated the growth of branch banking. Virtually all money-center banks of the United States and other major trading nations are located in Sao Paulo and Rio de Janeiro, and many have branches in other key cities, offering a wide range of services to their clients. Typically, local financing sources are used for local content costs and foreign financing for the imported goods. Often, a major public project will require that financing packages be put together on the basis of 15 percent local content and 85 percent imported, with contract signatures being delayed or the contract rendered inoperative until secured financing is assured. Foreign Sources: The Export-Import Bank of the United States -- EXIMBANK -- is a major source of financing for private sector projects in Brazil, both as a direct lender and as a guarantor. EXIMBANK's loans are not presently available for most government-owned companies. The rates, including the agent's commission, the letter of credit, the commitment fee and all other taxes, are approximately 11 percent a year, as of June 1992. Seventeen American banks operate in Brazil, and several Brazilian banks operate in the US, some of which are actively seeking trade financing clients. These include Banco do Estado de Sao Paulo, BANESPA (New York and Miami) and Banco Mercantil de Sao Paulo (New York), among others. Regarding industrial projects, The International Finance Corporation (a division of The World Bank) also promotes productive private enterprise in developing countries. The Interamerican Development Bank has a similar private sector financing arm, called Interamerican Investment Corporation. Two other programs provide political risk insurance to U.S. companies investing abroad: OPIC (Overseas Private Investment Corporation) and MIGA (Multilateral Investment Gurantee Agency), a division of the World Bank. OPIC also has a finance program to promote economically viable investment projects in the developing world. Capital Repatriation: Early in the new administration, dividend and profit remittances were frozen briefly on the $1.8 billion in dollar deposits held in the Central Bank. This measure was later reversed, and remittances now are flowing freely again, some without any lag in processing by the Bank of Brazil. In December 1991, Law 8383 eliminated the 60 percent tax surcharge on foreign profit remittances as well as lowering the base tax for such remittances from 25 to 15 percent. Foreign firm remittances of profits and dividends up to twelve percent of registered capital is allowed. Countertrade Requirements: Brazilian public sector firms are required to list countertrade among the key factors in a public tender. Nonetheless, financing terms and overall cost/benefit analysis loom larger in the typical judgment of a tender than does countertrade. Private firms are not required by law to list countertrade as a contract condition, but many firms in Brazil attempt to negotiate countertrade provisions, particularly for large contracts. Monetary, Fiscal and Exchange Rate Policy: Brazil has often tried in recent years to tighten monetary policy and thereby reduce inflation. However, these policies were compromised by the failure of the government to adequately address the fiscal deficit. Ultimately, the central bank was forced to finance the deficit, which resulted in inflation. After Collor's first effort to suppress inflation through heterodox economic policies, a new economic team substantially raised real interest rates in November 1991 (overhight interbank funds rose above 4 percent on a monthly basis) to halt the outflow of foreign exchange and suppress inflation, which at that time was in excess of 25 perecnt/month. This high-interest policy resulted in a reduction of the monthly inflation rate to around 20 percent and brought a huge inflow of dollars (bringing exchange reserves up to nearly U.S.$ 15 billion). However, the cost of this policy was a recession that started the last months of 1991 and continues to the present (August 1992). In addition, hight real interest rates have substantially increased the cost of serving government domestic debt, aggravating the fisca deficit problem. High unemployment and poor fiscal performance forced the central bank to ease real interest rates by several percentage points in early May 1992. Current central bank policy is to maijntain interbank rates slightly above inflation. As of June 1992, the cruzeiro was trading in a range of 3,500 to the dollar. This range has held steady, but inflationary pressures and trade needs may cause devaluation of the cruzeiro over the coming months. V. Trade and Investment Issues/Barriers: In 1991 the U.S. trade deficit with Brazil was U.S.$1.2 billion or U.S.$1.7 billion lower than in 1990. U.S. merchandise exports to Brazil were U.S.$6.2 billion, down U.S.$100 million or 2.0 percent compared to 1990. Brazil was the United States' 17th largest export market in 1991. U.S.imports from Brazil totaled U.S.$6.2 billion in 1991, or 22.5 percent lower than in 1990.* The stock of U.S.foreign direct investment in Brazil was U.S.$10.6 billion through September 1991, U.S.$153 million higher than in 1990. US direct investment in Brazil is largely concentrated in manufacturing, finance and services.* A. Major Trade Barriers Trade barriers continue to vanish as the Collor administration reforms take hold. Non-tariff barriers which existed previously are largely defunct. The Informatics Law will expire in October 1992 (it has been de facto ignored for some months). However, ingenious potectionists at several large Brazilian and multinational firms are trying to apply strategies in the market, allegedly to protect Brazilian jobs, which effectively maintain the barriers to imports. There are several proposed "social agreements" which would have the effect of severely limiting imports. One of these, in the automotive sector, would limit the imports of parts and accessories as well as vehicles. The automotive manufacturing sector is the largest in Brazil: their actions would undoubtedly constitue a precedent for others. If the automotive pact becomes official, the rush to copy it in other sectors will be overwhelming. The administration is currently opposing the automotive pact but is running into strong political opposition from the companies, unions and the state of Sao Paulo government. Another tactic which is developing strong support among closet protectionists in the private sector, as well as in the federal government, is the use of MERCOSUL mechanisms to limit imports into the whole region, effectively meaning Brazil. The principal instrument would be to declare the most protectionist legal mechanism of any of the MERCOSUL countries the standard for the whole pact. As this kind of mechanism is removed from public scrutiny, free traders may in fact see such measures put in place. Reductions of tariff barriers are being speeded up and most will probably hit their targets in 1993 rather than 1994. There is some slippage due to the objections of affected sectors, but opposition is principally centered on less visible areas. *Source: Central Bank of Brazil One area which must be carefully watched is the setting of import product standards and packaging and labelling requirements. These can be easily altered to either be exclusionary, or manipulated by competitors to favor their products. Vigilance in this area is required. The similarities test has largely vanished although it still is an impediment to the reduction of some tariffs to zero in industries under special stimulative regimes. Import Policies: Brazil traditionally followed an economic development policy which included import substitution as a major element. This policy has largely been abandoned by the government of Brazil, and efforts have been undertaken to open the Brazilian economy and reduce barriers to imports. One area where progress has been evident is import licensing. Import licensing is now automatic within five days of requesting a license with a few exceptions, most notably in the computer and related digital electronics sector. As a result of this change in Brazilian practice, on May 21, 1990, the U.S. Trade Representative (USTR) terminated an investigation initiated under the "Super 301" provision of the 1988 trade act, concerning certain aspects of Brazil's restrictive practices pertaining to import licensing. In addition, the Collor administration announced and implemented changes in its import tariff regime and policy. Tariffs are now the primary instrument in regulating imports in contrast to the longstanding practice of severely restricting imports through the import licensing regime. In January 1992 the government of Brazil implemented the second phase of a four-year tariff reduction plan for 12,400 items, a process initiated in February 1991. Following the latest reductions, the weighted average tariff for 1992 is 21.2 percent ad valorem, down from 32 percent ad valorem in 1990 and 25.3 percent in 1992. The plan calls for further reductions to 17.1 percent on October 1, 1992, and to 14.2 percent on July 1, 1993. By 1994, the maximum tariff level in Brazil is expected to be 35 percent ad valorem. The United States continues to encourage tariff reductions on products of interest to US firms. The GOB also signed the Treaty of Asuncion on March 26, 1991, that provides for the establishment of a common market involving Argentina, Brazil, Paraguay and Uruguay by December 31, 1994. The United States will monitor this evolving process and encourage the reduction of barriers to trade and investment (with an additional year for Uruguay and Paraguay to elimate all tariffs on imports of goods of MERCOSUL countries). Import Licensing: One sector where restrictive import licensing remains a significant barrier is computer hardware and related digital electronics equipment. Currently, one can apply for an import license, but the government of Brazil continues to deny licenses to 42 categories of equipment in this sector, including mini- and micro-computers. This practice has been a key element of Brazil's longstanding policy, known as the "Informatics" policy, designed to promote the growth of a national industry. The authority to restrict imports was incorporated in the 1984 Informatics Law. The authority of the Science and Technology Secretariat to restrict imports is scheduled to expire October 29, 1992, under new legislation signed into law on October 23, 1991. The Collor administration has also indicated in the context of the GATT balance of payments committee that it will not extend this authority once it expires. Furthermore, the Economy Ministry indicated that the list of 47 categories of equipment could be reduced if it is determined that the Brazilian industry is failing to make progress in improving its competitiveness. In February 1992 the list was reduced to 42 categories. Government Procurement: The federal, state, and municipal governments, as well as related agencies and companies, follow a "Buy National" policy. Brazil now permits foreign companies to compete in any procurement-related multilaterial development bank loans. However, some state-controlled firms still specify contract as open only to "national" firms and the criteria for the award of a recent public works contract included "percentage of national ownership" of the competing firms. Although Brazil now applies "Buy National" policies informally, Article 171 of the new Brazilian Constitution provides for government discrimination in favor of Brazilian companies with national capital. However, no legislation has been passed enacting the provisions of the Constitution relevant to procurement. Brazil is not a signatory to the GATT government procurement code. It is not possible to estimate the economic impact of these restrictions upon U.S. exports. However, free competition could provide significant market opportunities for U.S. firms. The United States seeks adoption of competitive procurement procedure, elimination of any measures favoring domestic producers, and provision of predictable, nondiscriminatory treatment ofr U.S. suppliers in Brazil's government procurement. To encourage Brazil to liberalize its own government procurement markets, the United States prohibits awards of government contracts to suppliers of Brazilian products for procurement covered by the GATT government procurement code. Lack of Intellectual Property Protection: Patents: Brazil does not provide either product or process patent protection for chemical compounds, foodstuffs, or chemical/pharmaceutical substances. Product protection is not available for metal alloys and for new uses of products including species of micro-organisms. Brazil requires a patent owner to work the patented invention in Brazil. A third party may request a compulsory license if a patent owner has failed to work the patent within three years of issuance or if exploitation has been discontinued for more than one year unless working is prevented by force majeure. Furthermore, the patent term of 15 years from the date of application is relatively short. Patents may also be forfeited for lack of working. The Collor administration publicly stated its intent on June 26, 1990, to revise its laws pertaining to intellectual property rights. Included in this proposed legislation was protection for processed product patent protection for pharmaceuticals. As a result, on July 2, 1990, the USTR terminated an ongoing section 301 investigation, and eliminated the 100 percent ad valorem tariffs imposed on certain Brazilian goods pursuant to that investigation. Subsequently, in May 1991, the Collor administration submitted new legislation to its Congress. However, the United States has informed the government of Brazil that the proposed legislation contains flaws. The United States will continue to pursue adequate effective protection for US intellectual property rights in Brazil. Brazil was placed on the "Priority Watch List" under the Special 301 Provision of the 1988 Trade Act in May 1989 and remains on the list. Trademarks: In 1991, The National Institute for Industrial Property (INPI) cancelled six thousand illicit Brazilian registrations of well know international trademarks. Unscrupulous individuals and phantom Brazilian corporations have advanced registered thousands of recognized international trademarks in attempts to earn huge profits from the sale of Brazilian rights for the trademarks to the rightful multinational owners. The Brazilian Government hopes that cancellation of the bogus registrations will end illicit trade in multinational trademarks. All licensing and technical assistance agreements including trademark licenses must be registered with INPI. INPI participates as a third party in technology transfer negotiations. Failure to register with INPI invalidates the license, which can result in trademark registration cancellation for nonuse. Copyrights: Brazil's copyright law generally conforms to world standards except for the term of protection. The 1987 Software Law extended explicit copyright protection to computer software. However, enforecement of these laws has been a problem. Piracy of video cassettes, records, and computer software continues at substantial levels. Enforcement of laws against video cassette and software piracy has shown some, but not sufficient, progress. Market access for U.S. computer software remains a source of concern, although it has significantly improved. The Collor administration, in an effort to open the Informatics Sector, has introduced legislation to eliminate the so-called "Law of Similars," which had been used to preclude non-Brazilian software from the market if a "similar" Brazilian domestic software exists. It should be noted that over 95 percent of U.S. software seeking entry into the Brazilialn market has been granted entry in recent years. The Collor administration has also proposed the elimination of the requirement that all software be distributed in Brazil by a Brazilian distributor, and is considering doing away with the requirment that all software be registered with the Government. No decision has been made as yet by the Brazilian Congress on these proposals. Services Barriers: Restrictive investment laws, administrative nontransparancy, legal and adminstrative restrictions on remittances, and arbitrary application of regulations and laws limit U.S. service exports to Brazil. Service trade possibilities are also affected by limitations on foreign capital participation in many service sectors. Foreign companies, particularly construction engineering firms, are prevented from providing technical services unless Brazilian firms are unable to perform them. INPI, which must approve all technical service contracts, often subjects them to substantial delays. The US architectural, engineering, and construction industries are also hindered by differential tax rates, and a lack of transparancy in government regulations. The restriction of government contracts to Brazilian firms has been suspended, but not abolished. Barriers to the free provision of advertising services include the requirements that two-thirds of television commercials' footage and all of their soundtrack must be produced in Brazil, as well as continued discrimination in government purchasing. The United States is pursuing new rules for liberalizing trade in services in the Uruguay Round. Insurance: Brazil's national insurance council has granted no new authorizations to transact insurance since 1966. Foreign investors may own no more than 50 percent equity and 30 percent of voting stock in an existing insurance company, insurance brokerage, or private premium fund. Brazil's resolution No. 3/71 of the National Private Insurance Council and other governmental actions effectively restrict Brazilian import insurance to Brazilian firms. This denies US Marine cargo insurers an opportunity to compete for business. Resolution No. 3/71 also requires state companies doing business with insurance brokerage firms to use 100 percent Brazilian-owned brokerages. All reinsurance in Brazil must be purchased by the government reinsurance monopoly, the Reinsurance Institute of Brazil (IRB). This requirement denies US reinsurers full participation in the local reinsurance market. Requirements for withholding insurance premiums and outstanding loss reserves also expose US reinsurers to serious exchange losses. Brazilian regulatory policy precludes the issuance of new licences. Brazil is South America's largest potential insurance market. The United States will pursue rules for trade in insurance and other service industries in the Uruguay Round negotiations and bilaterally as appropriate. B. Major Investment Barriers: Although Brazil officially welcomes foreign direct investment, its policies toward such investment are often restrictive and discriminatory. Foreign investment is prohibited in several sectors, including petroleum production and refining, public utilities, media, real estate, shipping, and various "stragegic" industries. Even with these restrictions, foreign direct investment has increased and many U.S. and foreign firms have major investments in Brazil. In other sectors Brazil limits foreign equity participation, imposes local content requirments, and links incentives to export performance requirements. Brazil also restricts the transfer of earnings and capital. In some sectors foreign firms have no option but to form joint ventures with Brazilian firms. Brazil's constitution bars majority participation in direct mining operations and bans foreign investment in health care. However, these constitutional provisions have not been implemented through legislation. The Constitution imposes prohibitions on foreign capital participation in land, river, coastal, maritime, and internal air transportaion as well as foreign ownership of television, radio, and print media. Foreigners are also barred from owning land in certain coastal zones and other areas on national security grounds. The Constitution contrasts with the Collor administration's emphasis on opening the Brazilian economy. Accordingly, the adminstration has proposed several constitutional amendments that would remove certain restrictions on foreign investment, particularly in the mining and petroleum sectors. Top Brazilian officials have indicated nondiscriminatory treatment will remain the rule in all sectors outside those where specific restrictions apply. Sectors with such specific restrictions include informatics, telecommunications, mining, and national security-related industries. October 1991 legislation will remove many of the restrictions on investment in the informatics sector as of October 30, 1992. The Brazilian tax code was recently modified to eliminate, effective January 1992, the supplementary income tax (surcharge) on foreign profit and dividend remittances that exceed 12 percent of registered capital, though accruals through 1991 will continue to be collected during 1992. In addition, the Central Bank revised its internal regulations in December to allow foreign firms to reinvest earnings at the exchange rate in effect on the date of the new investment, rather than on the date on which the earnings were declared. This addresses the problem of capital erosion, due to inflation, for foreign capital registration purposes during the interval between earnings declarations and reinvestment. Capital may still be under-registered because some intangible capital assets, such as trademarks and know-how, cannot be registered. However, a bill now in the Brazilian Congress would, if approved, lift the current prohibition on the transfer of royalties and technical assistance fees from foreign subsidiary firms to parent firms abroad. Under the new 1992 tax code, Brazil has removed prohibitions on remittances for royalty and technical service payments between related parties. Royality payments between related parties can be deducted from earnings for the purposes of computing Brazilian income tax. Additionally, Brazil has reduced the base tax rate on profits and royalty remittances from 25 percent to 15 percent. Investment restrictions have been discussed in ongoing bilateral discussion of Brazil's informatics policies. The United States is seeking liberalization of Brazilian performance requirements within the Uruguay Round negotioations on trade-related investment measures. Informatics: On October 23, 1991, President Collor signed a new informatics law which effectively replaces the 1984 informatics law. The 1984 law set up a series of regulations tightly restricting foreign access to Brazil's computer and peripherals industry. The new informatics law eliminates the import restrictions (market reserve) as of October 29, 1992, opening the sector to foreign imports and investment. Also the new 1991 law continues to offer incentives and subsidies to the local informatics industry, and to qualifying joint ventures. Until the end of the market reserve in October 1992, official Brazilian policy restricts the imports of a group of 47 informatics products. The list was reduced to 42 items, removing products such as OCR scanners, workstations, optical disks, etc. Trade analysts believe that the list will not be reduced further before October 1992. All other products not among the 42 listed may be freely imported, subject to tariffs. The informatics items on the list, however, may be imported only with the prior approval of the Department on Informatics and Automation Policy (DEPIN) of the Secretariat of Science and Technology. The software law of 1987 allows the distribution of almost any type of sofware in Brazil, with certain restrictions: 1) a foreign product can be denied importation if a similar product is available in the market ("similarity test") 2) foreign software can be sold only by Brazilian companies without exclusivity clauses; 3) the local vendor must be a distributor of the foreign supplier; 4) remittances are allowed only after the software is sold. As of August 1992, the Brazilian Congress has not yet voted on a new Software Bill submitted by the executive in 1991 which could further liberalize software imports to Brazil. The main provisions of this bill include the elimination of the requirement that imported software be registered with the Department on Informatics and Automation Policy (DEPIN) and submitted to a similarity test, and the end of the market reserve restricting the distribution of PC software to Brazilian-owned companies. Data Processing and Telecommunications: All data received from unrelated parties must be processed in Brazil. As a result many data processors cannot compete in this market by using central processing facilities abroad. Foreign equity participation in Brazilian telecommunications services industries is limited. TELEBRAS, the state telecommunications monopoly, gives preference to Brazilian equipment suppliers. Telecommunications in Brazil falls under the Ministry of Infrastructure's Secretariat of Communications . Under the overall trade liberalization undertaken by the Collor government, administrative barriers (including the law of similars) formerly applied to practically all telecommunications imports were suspended. However, in practice, full liberalization of telecommunications imports has yet to be effected where restrictions under the 1984 Informatics Law apply. All devices incorporating digital technology require prior approval by the National Informatics Council (CONIN). Nonetheless, the Secretariat of Communications has begun to define how to implement the liberalization in the area of telecommunications. For example, the Secretariat of Communications recently announced the end of the market reserve in the telephone switching sector. Future government purchases of switching centers will be made through public bidding, ending the cartel formerly retained by three major suppliers. Improved market access for telecommunications hardware and services is part of ongoing bilateral talks with Brazil. Motion Pictures: The U.S. motion picture industry has identified several major barriers to the U.S. film industry in Brazil. Two of the most problematic areas are a requirement that all copies of films for theatrical and television exhibition must be made in Brazil, and a requirement that a Brazilian short film must be shown with any foreign feature film. The Brazilian Cinema Council (CONCINE) requires that 25 percent of the video cassette titles that distributors release must be Brazilian. This has the same effect as an import quota. The U.S. industry releases about 1,200 titles a year but only about 15 Brazilian titles were released in 1989. Piracy of home video cassettes remains the biggest problem despite stepped-up enforcement efforts. The Brazilian market is the 10th largest foreign market in terms of revenue for all media and the largest Latin American market for US motion picture distributors. Brazil remains Latin America's largest source for generating pirated US home video cassettes. The motion picture industry estimates pirating in Brazil caused more than U.S.$72 million in losses in 1989; U.S.$7.9 million of which was attributed to the U.S. industry. The cost to U.S. distributors of the local printing requirement was an estimated U.S.$2 million dollars in 1988. The United States has raised its concerns about motion picture industry trade barriers during bilateral trade consultations. U.S. motion picture industry representatives work actively with Brazilian law enforcement officials. Their efforts have helped spur raids on distributors and retail outlets of pirated video cassettes. The U.S. motion picture industry is also working to modify the Brazilian penal code and code of penal procedural rules to make criminal prosecution of video piracy more effective. The GOB has indicated its intentions, as part of its overhaul of its economic policies, of opening the motion picture sector to greater competition. Aircraft: Import costs are a deterrent to U.S. aircraft sales with weights of 40,000 Kg and under. Although the import tariff is 5 percent for all aircraft except those over 40 thousand kilograms, (whose tariff is zero) the industrial products tax and the ICMS (merchandise circulation tax) plus assorted other levies put the landed cost of imported aircraft at approximately 29 percent of the FOB price in the United States. In bilateral consultations some years ago, Brazil pledged to keep the assorted tariffs at 20 percent. The United States will continue to strive to have this pledge restored and overall tariff rates reduced to a more reasonable level. MERCOSUL: In June 1989, Brazil, Argentina, Uruguay, and Paraguay signed the treaty of Asuncion to establish the parameters and schedule for formation of the Southern Common Market, Mercosul. The treaty calls for the formation of a customs union with free internal trade and a common external tafiff. Argentina and Brazil are to reduce import duties for trade between themselves to zero by year-end 1994; Paraguay and Uruguay are given an extra year to reduce import duties to zero. To arrive at the eventual elimination on inter-Mercosul import duties by 1995, the member countries are reducing import duty rates in progressive steps. On July 27, 1992, the Presidents of the four member countries approved a timetable for implementation, in December 1994, of a free-trade zone and a common customs system with a common external tariff. VI. Market Analysis Plan (MAP) A. Industry Sub Sector Analysis (ISAs) 1. Industry subsector 2. Three-letter ITA industry code 3. Due date 4. Country 5. Researcher 6. Estimate of work days needed for research 7. Justification for report 8. Cost of report BELEM 1. Paper Recycling Machinery 2. Pul 3. June 1993 4. Brazil 5. R. Teixeira 6. 15 7. The recent environmental issues in Brazil regarding the protection of its wood resources have led the local paper manufacturers to make a better use of wastepaper thus reducing the use of pulp wich in turn is a derivative of wood. The paper industry is thus looking for advanced paper recycling machinery. 8. US$ 500 (travel, telephone, fax, statistics, publications, taxis) 1. Lumber Mill Equipment 2. FOR 3. June 1993 4. Brazil 5. R. Teixeira 6. 15 7. Brazil has the world's largest wood resources. The largest portion of it is in the northern part of the country. only in the State of Para, for example, there are actually 70 active lumber exporting companies and more than 5,000 large, medium and small size lumber operations. To compete in the international markets in quality and price, these operations must look for advanced technology equipment wich can give them a better production and productivity. 8. US$ 500 (travel, telephone, fax, statistics, publications, taxis) BELO HORIZONTE 1. Air conditioning and Refrigeration Equipment: Parts and Components 2. ACR 3. July 1993 4. Brazil 5. J. M. Vasconcelos 6. 15 7. Brazil has one of the largest markets in the world for air conditioning and refrigeration equipment. Total sales are estimated to reach nearly US$ 2 billion, with an import share of over US$ 150 million. 8. US$ 400 (Telephone, fax, publications, taxis, official statistics) 1. Compressors and parts thereof 2. PVC 3. March 1993 4. Brazil 5. J.M. Vasconcelos 6. 15 7. Brazil imports nearly US dols 80 million annually of compressors and parts and its total market is estimated to reach over US dols 600 million. 8. US$ 400 (telephone, fax, publications, taxis, official statistics). 1. Coal 2. Col 3. July 1993 4. Brazil 5. J. M. Vasconcelos 6. 15 7. Brazil imports more than US Dols 500 million annually of coal. This market is expected to steadily increase in the next years, due to plans of the Brazilian government to deregulate the sector of electricity generation. 8. US$ 400 (Travel, telephone, fax, publications, taxis, official statistics) BRASILIA 1. Non-Prescription Drugs/Vitamins/Provitamins 2. DRG 3. February 1993 4. Brazil 5. M. Conter 6. 15 7. Brazil's trade liberalization has opened the market for these kinds of products, especially in large urban centers that have been influenced by the establishment of fitness centers that promote diet and health awareness. 8. US$ 900 (Travel, Telephone, Fax, Publications, Taxis, Official Statistics). 1. Cellular Telephone Equipment 2. TEL 3. December 1992 4. Brazil 5. R. D'Almeida 6. 15 7. One of the best potential sub-sectors in telecommunications for U.S. exporters for the next three years due to market opening. 8. US$ 900 (Travel, Telephone, Fax, Publications, Taxis, Official Statistics). 1. Telecommunications Value-added Network Services 2. TEL 3. May 1993 4. Brazil 5. R. D'Almeida 6. 15 7. One of the best potential sub-sectors in telecommunications for U.S. exporters for the next three years due to market opening. 8. US$ 900 (Travel, Telephone, Fax, Publications, Taxis, Official Statistics). 1. Agricultural Storage Facilities 2. AGM 3. December 1992 4. Brazil 5. M. Conter 6. 15. 7. Over twenty percent of harvested grain is lost due to poor storage and handling facilities.This sector presents a strong market opportunity for U.S. technology. 8. US$ 900 (Travel, Telephone, Fax, Publications, Taxis, Offical Statistics). 1. Agricultural Services 2. AGM 3. March 1993 4. Brazil 5. M. Conter 6. 15 7. The agri-business sector needs imported advanced crop and farm resourse management services to increase yields and to reduce variable operationing costs. 8. US$ 900 (Travel, Telephone, Fax, Publications, Taxis, Official Statistics). 1. Composing Systems 2. PGA 3. August 1993 4. Brazil 5. R. D'Almeida 6. 15 7. The printing market is seeking high-quality, high-end equipment to upgrade efficiency. 8. US$ 900 (Travel, Telephone, Fax, Publications, Taxis, Official Statistics). RIO DE JANEIRO 1. Gas Pipeline Installation Equipment and Services 2. OGM 3. November 1992 4. Brazil 5. E. Kvassay 6. 15 7. Nothwithstanding considerable domestic competition, trade liberalization and more open procurement policies at Petrobras are expected to boost the market opportunities for U.S. companies in this field. 8. US$ 350 (Travel Telephone, Fax, Publications Taxis, Official Statistics). 1. Programmable Logic Controllers 2. PCI 3. April 1993 4. Brazil 5. E. Kvassay 6. 15 7. In order to meet growing competition from foreign markets, obsolete instrumentation will have to be replaced with state-of-the- art controllers. 8. US$ 350 (Travel, Telephone, Fax, Publications, Taxis, Official Statistics). 1. Active Components 2. ELC 3. May 1993 4. Brazil 5. R. Cunha 6. 15 7. Brazil's open market policy and the government's intention to make the country's electronic sector competitive in overseas markets offers good opportunities for U.S. exporters 8. US$ 350 (Travel, Telephone, Fax, Publications, Taxis, Official Statistics). 1. Disposable Medical Products 2. MED 3. July 1993 4. Brazil 5. R. Cunha 6. 15 7. Brazilian medical authorities are engaging in a basic overhaul of the country's health care system. The demand for imported products of quality superior to that available from local manufacturers is expected to steadily increase. 8. US$ 350 (Travel, Telephone, Fax, Publications, Taxis, Official Statistics). 1. Electric Power Distribution and Transmission Equipment 2. ELP 3. September 1993 4. Brazil 5. R. Cunha 6. 15 7. Due to lack of adequate investment in the past, the Brazilian market for electrical power systems is not expected to keep pace with the country's demand for electric power, and necessary imports of equipment in this sector are expected to grow. 8. US$ 350 (Travel, Telephone, Fax, Publications, Taxis, Official Statistics). 1. Security Equipment 2. SEC 3. May 1993 4. Brazil 5. E. Kavassay 6. 15 7. Market size of this subsector is estimated at $250 million. Reduced import duties and the elimination of non tariff barriers should stimulate imports. 8. US$ 350 ( Travel, Telephone, Fax, Publications, Taxis, Official Statistics). SAO PAULO 1. Fast Food/Restaurant Equipment 2. HTL 3. March 1993 4. Brazil 5. M. Volker 6. 15 7. The Brazilian market for Hotel and Restaurant Equipment is showing increased demand in the fast food segment, influenced by the expansion of franchise and specialty food stores. 8. US$ 250 (Telephone, Fax, Publications, Taxis, Official Statistics). 1. Franchised Fast Food Stores 2. FRA 3. April 1993 4. Brazil 5. M. Volker 6. 15 7. The franchise industry is showing high growth rates, and fast food stores are among the sectors that present good market opportunities for U.S. franchisors. 8. US$ 250 (Telephone, Fax, Publications, Taxis, Official Statistics). 1. Plastic Extrusion and Production Machinery 2. PME 3. January 1992 4. Brazil 5. M. Konno 6. 15 7. Market opening policy should present good opportunities for U.S. exporters. 8. US$ 250 (Telephone, Fax, Publications, Taxis, Official Statistics). 1. Chromatographic and Spectroscopical Equipment 2. LAB 3. May 1993 4. Brazil 5. M. Konno 6. 15 7. In order to meet the competition of imported products, and to upgrade the quality of Brazilian exports, domestic industries and research institutions will require a level of sophisticated instruments such as chromatographs and spectrometers which are available only outside Brazil. 8. US$ 250 (Telephone, Fax, Publications, Official Statistics). 1. Sludge Treatment and Management Equipment 2. POL 3. March 1993 4. Brazil 5. R. Eisenbraun 6. 15 7. The increasing number of companies required by environmental agencies to treat their effluents partially or completely is causing a high production of waste sludge. Companies and municipalities are having trouble disposing of this sludge properly. 8. US$ 250 (Telephone, Fax, Publicatons, Taxis, Official Statistics). 1. Automobile Emission Control Equipment 2. APS 3. June 1993 4. Brazil 5. R. Eisenbraun 6. 15 7. Stricter automobile emission standards imposed by the Federal Government is requiring auto manufacturers and owners to invest in emission control technologies. 8. US$ 250 (Telephone, Fax, Publications, Taxis, Official Statistics). 1. Autoparts 2. APS 3. September 1993 4. Brazil 5. R. Eisenbraun 6. 15 7. Import liberalization, reduced import duties, and higher foreign technology are stimulating the import of autoparts. 8. US$ 250 (Telephone, Fax, Publicatons, Taxis, Official Statistics). 1. High-End Microcomputers 2. CPT 3. April 1993 4. Brazil 5. D. Weiss 6. 15 7. This is one of the sectors that will most benefit from import liberalization 8. US $ 250 (Telephone, Fax, Publications, Taxis, Official Statistics). 1. Information Services 2. CPT 3. February 1993 4. Brazil 5. D. Weiss 6. 15 7. The information services market is still in its embryonic stages, but will quickly become a major segment in Brazil. 8. US$ 250 (Telephone, Fax, Publications, Taxis, Official Statistics). 1. Laser Making and Cutting Machines 2. MTL 3. April 1993 4. Brazil 5. T. Wagner 6. 15 7. U.S. firms should explore this market niche, because laser making and cutting machines made in the U.S. are extremely competitive. Although the Brazilian market for these products is estimated only at US$ 10 million, domestic demand is expected to grow as economic activity recovers in 1992. 8. US$ 250 (Telephone, Fax, Publications, Taxis, Official Statistics). 1. Non-Woven Fabrics 2. TXF 3. March 1992 4. Brazil 5. T. Wagner 6. 15 7. This is one of the sectors that will most benefit from import liberalization 8. US$ 250 (Telephone, Fax, Publications, Taxis, Official Statistics). 1. Filaments 2. YAR 3. August 1993 4. Brazil 5. T. Wagner 6. 15 7. Brazilian production is limited to traditional products of average quality and there is a lack of quality filaments and the latest generation products. 8. US$ 250 (Telephone, Fax, Publiations, Taxis Official Statistics). 1. Travel and Tourism Services 2. TRA 3. November 1992 4. Brazil 5. J. Haddad 6. 15 7. It is estimated that close to 500 thousand Brazilian tourists will visit the United States in 1992, when Brazil will pass Italy and become the number 8 generator of visitors to the U.S. 8. US$ 250 (Telephone, Fax, Publications, Taxis, Official Statistics). B. Trade-event Market Studies: 1. Event Marketing Package on Process Control for Oil & Gas 2. PCI 3. August 1992 4. Rio de Janeiro 5. E. Kvassay 6. 10 7. To support Oil/Gas Trade Fair in October 1992 1. Event Marketing Package on Travel and Tourism Services 2. TRA 3. August 1992 4. Sao Paulo 5. A. Alexander 6. 10 7. To support Visit USA Travel Expo'93 1. Event Marketing Package on Electronic Components and Electronics Industry Prod/Test Equipment 2. ELC/EIP 3. August 1992 4. Rio de Janeiro 5. Regina Cunha 6. 10 7. To support Electro/Electronics USA'93 1. Event Marketing Package on Plastics Production Machinery 2. PME 3. October 1992 4. Brasilia 5. M. Conter 6. 10 7. To support Plastics Production Machinery USA'93 (pending) 1. Event Marketing Package on Telecommunications 2. TEL 3. October 1992 4. Brasilia 5. Renata d'Almeida 6. 10 7. To support Telexpo USA'93 (pending) 1. Event Marketing Package on Food Processing/ Packaging Equipment 2. FPP/PKG 3. October 1992 4. Sao Paulo 5. M. Volker/R. Eisenbraun 6. 10 7. To support Food Processing and Packaging'93 1. Event Marketing Package on Franchising 2. FRA 3. November 1992 4. Sao Paulo 5. M. Volker 6. 10 7. To support Franchising USA'93 1. Event Marketing Package on Laboratory Scientific Instruments 2. LAB 3. November 1992 4. Sao Paulo 5. M. Konno 6. 10 7. To support Productivity/Instrumentation USA'93 1. Event Marketing Package on Computer Software and Computers & Peripherals 2. CPT/CSF 3. December 1992 4. Sao Paulo 5. D. Weiss 6. 10 7. To support Compute USA'93 1. Event Marketing Package on Medical Equipment 2. MED 3. December 1992 4. Rio de Janeiro 5. Regina Cunha 6. 10 7. To support Medical USA'93 VII. Trade Events Plan FCS Brazil has scheduled the following events for FY 93 to assist U.S. suppliers in promoting their products in Brazil. For further information on how to participate in such events, contact your nearest District Office. A. Trade Events: 01. Event name: STUDY USA'92 (CONTINUING EDUCATION SERVICES) 02. Event dates: A) October 01-02, 1992; B) October 05-07, 1992; C) October 05-10, 1992; D) October 08-09, 1992; E) 28-29 03. Event location: A) Rio de Janeiro, R.J., Brazil; B) Sao Paulo, S.P., Brazil; C) Recife, PE, Brazil; D) Belo Horizonte, MG, Brazil; Brasilia, DF, Brazil. 04. Industry theme: Education & Manpower Training Services 05. Industry Code: EDS 06. Type of event: SFO 07. Name and phone number of Washington or post recruiter: Eduardo Altenfelder, (55) (11) 853-2011 08. Brief indication of what is projected for the event in terms of the export background of participants (Percent NTE/NTM): 50 percent NTM 09. Estimated post permanent employee work days (US and FSN) necessary to plan, recruit, set up, hold, take down, and report on the Event: 30 days 10. Estimated dollar cost of event: USD 60,000.00 11. Frequency: annual 01. Event name: OIL/GAS USA'92 02. Event dates: October 18-23, 1992 03. Event location: Rio de Janeiro, RJ., Brazil 04. Industry theme: Oil and Gasfield Machinery and Services 05. Industry Code: OGM 06. Type of event: TFO 07. Name and phone number of Washington or post recruiter: Eduardo Altenfelder (55) (11) 853-2011 08. Brief indication of what is projected for the event in terms of the export background of participants (Percent NTE/NTM): 60 percent NTM 09. Estimated work days: 10 days 10. Estimated dollar cost: USD 0 11. Frequency: Biannual 01. Event name: EXECUTIVE AEROSPACE TRADE MISSION 02. Event dates: November A) Nov. 11-15 B) Nov.15-18, 1992 03. Event location: A) Rio de Janeiro, RJ, Brazil B) Sao Paulo,SP, Brazil 04. Industry theme: Aircraft and Parts 05. 3-Letter ITA Industry Code: AIR 06. Type of event: TM 07. Name and phone number of Washington or post recruiter: Heather Jones Pederson, (202) 377-2835 08. Brief indication of what is projected for the event in terms of the export background of participants (Percent NTE/NTM): 60 percent NTM 09. Estimated post permanent employee work days (US and FSN) necessary to plan, recruit, set up, hold, take down, and report on the Event: 20 days 10. Estimated dollar cost: USD 7,500.00 Sao Paulo; USD 4,500.00 Rio de Janeiro 01. Event name: MACHINE TOOLS USA'93 02. Event dates: March 22-27, 1993 03. Event location: Sao Paulo, S.P., Brazil 04. Industry theme: Machine Tools & Metalworking Equipment 15. Industry Code: MTL 06. Type of event: TFO/TFW 07. Name and phone number of Washington or post recruiter: John A. Mearman (202) 377-0315 08. Brief indication of what is projected for the event in terms of the export background of participants (Percent NTE/NTM): 80 percent NTM 09. Estimated work days (US and FSN) necessary to plan, recruit, set up, hold, take down, and report on the Event: 40 days 10. Estimated dollar cost: USD 160,000.00 11. Frequency: annual 01. Event name: VISIT USA TRAVEL EXPO'93 02. Event dates: March 22-23, 1993 03. Event location: Sao Paulo, S.P., Brazil 04. Industry theme: Travel and Tourism Services 05. Industry Code: TRA 06. Type of event: SFO 07. Name and phone number of Washington or post recruiter: Eduardo Altenfelder (55) (11) 853-2011 08. Brief indication of what is projected for the event in terms of the export background of participants (Percent NTE/NTM): 70 percent NTM 09. Estimated work days (US and FSN) necessary to plan, recruit, set up, hold, take down, and report on the Event: 30 days 10. Estimated dollar cost: USD 50,000.00 11. Frequency: annual 01. Event name: TELECOMMUNICATIONS USA '93 02. Event dates: April 13-16, 1993 03. Event location: Sao Paulo, S.P., Brazil 04. Industry theme: Telecommunications Equipment and Services 05. Industry Code: TEL/TES 06. Type of event: TFO and TFW 07. Name and phone number of Washington or post recruiter: Eduardo Altenfelder (55) (11) 853-2011 08. Brief indication of what is projected for the event in terms of the export background of participants (Percent NTE/NTM): 50 percent NTM 09. Estimated work days (US and FSN) necessary to plan, recruit, set up, hold, take down, and report on the Event: 30 days 10. Estimated dollar cost: USD 60,000.00 11. Frequency: annual 01. Event name: MULTI-STATE CATALOG TRADE DAYS IN SOUTH AMERICA 02. Event dates: April 19-20, 1993 03. Event location: Sao Paulo, S.P., Brazil 04. Industry theme: A) Computers, Peripherals, Software; B) Telecommunications Equipment; C) Surgical, Medical and Dental Instruments; D) Food Processing and Packaging Equipment; E) Energy Generation and Transmission Equipment; F) Automotive Equipment and Supplies. 05. Industry Code: A) CSF; B) TEL; C) MED; D) FPP; E) ELP; F) APS 06. Type of event: TM 07. Name and phone number of Washington or post recruiter: Thomas J. Pierpoint (202) 377-2087 08. Brief indication of what is projected for the event in terms of the export background of participants (Percent NTE/NTM): 100 percent NTM 09. Estimated work days (US and FSN) necessary to plan, recruit, set up, hold, take down, and report on the Event: 20 days 10. Estimated dollar cost: USD 12,600.00 11. Frequency: biannual 01. Event name: PLASTICS PRODUCTION MACHINERY USA'93 02. Event dates: May 17-22, 1993 03. Event location: Sao Paulo, S.P., Brazil 04. Industry theme: Plastics Production Machinery 05. Industry Code: PME 06. Type of event: TFO 07. Name and phone number of Washington or post recruiter: Eduardo Altenfelder (55) (11) 853-2011 08. Brief indication of what is projected for the event in terms of the export background of participants (Percent NTE/NTM): 50 percent NTM 09. Estimated work days (US and FSN) necessary to plan, recruit, set up, hold, take down, and report on the Event: 40 days 10. Estimated dollar cost: USD 90,000.00 11. Frequency; biannual 01. Event name: ELECTRO/ELECTRONICS USA'93 02. Event dates: May 3-7, 1993 03. Event location: Sao Paulo, S.P., Brazil 04. Industry theme: Electronics Industry Production/Test Equipment; Electronic Components; Telecommunications Equipment; Advanced Ceramics 05. Industry Code: EIP/ELC/TEL/CRM 06. Type of event: TFO/TFW 07. Name and phone number of Washington or post recruiter: Joseph Burke (202) 377-2795 08. Brief indication of what is projected for the event in terms of the export background of participants (Percent NTE/NTM): 30 percent NTM 09. Estimated work days (US and FSN) necessary to plan, recruit, set up, hold, take down, and report on the Event: 40 days 10. Estimated dollar cost: USD 120,000.00 11. Frequency: annual 01. Event name: TELCOM TRADE MISSION 02. Event dates: TBD 03. Event location: Brasilia, D.F., Brazil and Sao Paulo-SP,Brazil 04. Industry theme: A) Telecommunications Equipment; B) Telecommunications Services 05. Industry Code: A) TEL B) TES 06. Type of event: TM 07. Name and phone number of Washington or post recruiter: N/A 08. Brief indication of what is projected for the event in terms of the export background of participants (Percent NTE/NTM): 25 percent NTM 09. Estimated work days (US and FSN) necessary to plan, recruit, set up, hold, take down, and report on the Event: 20 days 10. Estimated dollar cost: USD 12,000.00 01. Event name: FOOD PROCESSING AND PACKAGING USA'93 02. Event dates: June 22-25/1993 03. Event location: Sao Paulo, S.P., Brazil 04. Industry theme: A) Food Processing; B) Packaging Equipment 05. Industry Code: A) FPP B) PKG 06. Type of event: TFO/TFW 07. Name and phone number of Washington or post recruiter: Gene Shaw (202) 377-3494 08. Brief indication of what is projected for the event in terms of the export background of participants (Percent NTE/NTM): 50 percent NTM 09. Estimated work days (US and FSN) necessary to plan, recruit, set up, hold, take down, and report on the Event: 40 days 10. Estimated dollar cost: USD 50,000.00 11. Frequency: annual 01. Event name: FRANCHISING USA'93 02. Event dates: August 1993 03. Event location: Sao Paulo, S.P., Brazil 04. Industry theme: Franchising 05. Industry code: FRA 06. Type of event: TFO 07. Name and phone number of Washington or post recruiter: Eduardo Altenfelder (55) (11) 853-2011 08. Brief indication of what is projected for the event in terms of the export background of participants (Percent NTE/NTM): 80 percent NTM 09. Estimated work days (US and FSN) necessary to plan, recruit, set up, hold, take down, and report on the Event: 30 days 10. Estimated dollar cost: USD 12,600.00 11. Frequency: annual 01. Event name: PRODUCTIVITY/INSTRUMENTATION USA'93 02. Event dates: August 24-27, 1993 03. Event location: Sao Paulo, S.P., Brazil 04. Industry theme: Analytical, Instrumentation, Process Control, Quality Control and Electronic Measuring Instruments 05. Industry code: A) LAB; B) MED; C) PCI 06. Type of event: SFO/SFW 07. Name and phone number of Washington or post recruiter: Franc D. Manzolillo (202) 377-2706 08. Brief indication of what is projected for the event in terms of the export background of participants (Percent NTE/NTM): 50 percent NTM 09. Estimated work days (US and FSN) necessary to plan, recruit, set up, hold, take down, and report on the Event: 40 days 10. Estimated dollar cost: USD 150,000.00 11. Frequency: annual 01. Event name: MEDICAL USA'93 02. Event dates: August 3-6, 1993 03. Event location: Sao Paulo, S.P., Brazil 04. Industry theme: Hospital and Medical Equipment Control, Quality Control and Electronic Measuring Instruments 05. Industry code: MED 06. Type of event: TFO/SFW 07. Name and phone number of Washington or post recruiter: George B. Keen (202) 377-2010 08. Brief indication of what is projected for the event in terms of the export background of participants (Percent NTE/NTM): 60 percent NTM 09. Estimated work days (US and FSN) necessary to plan, recruit, set up, hold, take down, and report on the Event: 40 days 10. Estimated dollar cost: USD 108,000.00 11. Frequency: annual 01. Event name: COMPUTE USA'93 02. Event dates: September 23-27/1993 03. Event location: Sao Paulo, S.P., Brazil 04. Industry theme: Computers and Peripherals; Computer Software and Services; Lasers and Electro-Optics; CAD/CAM/ CAE/CIM/CO: Electronics Industry Production/Test Equipment 05. Industry Code: CPT; CSF; LAS; CAD; EIP 06. Type of event: TFO/TFW 07. Name and phone number of Washington or post recruiter: Juddy Fogg, (202) 377-4936 08. Brief indication of what is projected for the event in terms of the export background of participants (Percent NTE/NTM): 45 percent NTM 09. Estimated work days (US and FSN) necessary to plan, recruit, set up, hold, take down, and report on the Event: 40 days 10. Estimated dollar cost: USD 150,000.00 11. Frenquency: annual FOREIGN BUYER PROGRAM Under the Foreign Buyer Program FCS Brazil actively supports recruiting of Brazilian firms/potential importers to attend major exhibitions in the United States, including the following: Minexpo International'92 October 18-22, 1992 Las Vegas, Nevada Lead Post: Belo Horizonte Automotive Aftermarket Industry Week'92 November 3-6, 1992 Las Vegas, Nevada Lead Post: Sao Paulo Pack Expo'92 November 8-12, 1992 Chicago, Illinois Lead Post: Sao Paulo Wescon'92 November 17-19, 1992 Anaheim, California Lead Post: Rio de Janeiro National Home Health Care Expo November 18-21, 1992 Atlanta, GA Lead Post: Rio de Janeiro Greater New York Dental Meeting November 28-December3, 1992 New York, N.Y. Lead Post: Rio de Janeiro Ashrae - International Air Conditioning, Heating, Refrigerating Exposition January 25-27, 1993 Chicago, Illinois Lead Post: Belo Horizonte The Super Show January 30-February 2, 1993 Atlanta, Georgia Lead Post: Rio de Janeiro Promat'93 February 8-11, 1993 Chicago, Illinois Lead Post: Belo Horizonte California Farm Equipment Show February 9-11. 1993 Tulare, California Lead Post: Brasilia National Manufacturing Week March 8-11, 1993 Chicago, Illinois Lead Post: Rio de Janeiro Pittsburgh Conference and Exposition on Analytical and Applied Spectroscopy March 8-11, 1993 Atlanta, GA Lead Post: Sao Paulo Conexpo'93 - International Construction Equipment Exposition, March 20-25, 1993 Las Vegas, Nevada Lead Post: Belo Horizonte Super Comm'93 April 19-22, 1993 Chicago, Illinois Lead Post: Brasilia American Welding Society Exposition April 27-29, 1993 Houston, Texas Lead Post: Belo Horizonte National Restaurant Association Restaurant Hotel-Motel Show May 22-26, 1993 Chicago, Illinois Lead Post: Sao Paulo Comdex/Spring'93 May 24-27, 1993 Atlanta, GA Lead post: Sao Paulo Hazmat International - International Harzardous Materials and Environmental Management Conference and Exposition June 9-11, 1993 Atlantic City, New Jersey Lead Post: Sao Paulo Waste Expo'93 June 16-18, 1993 Chicago, Illinois Lead Post: Sao Paulo PC Expo in New York June 22-24, 1993 New York, N.Y. Lead Post: Sao Paulo National Hardware Show August 15-18, 1993 Chicago, Illinois Lead Post: Sao Paulo Networld 93 Dallas August 31-September 2, 1993 Dallas, Texas Lead Post: Sao Paulo The following events are being promoted as though they were FY 1993 FBPs, because they are significant for the Brazilian market: Networld'92 October 13-15, 1992 Dallas, Texas Lead Post: Sao Paulo ATME-I - American Textile Machinery Exhibition - International October 19-23, 1992 Greenville, S.C. Lead Post: Sao Paulo