Brazil Uses Central America as Springboard to US

    There is a very simple reason for Brazil’s interest in making investments in Central America: it can be used as an export platform for the US and European markets.

    The government will formally inaugurate an investment incentive program for Central America and the Caribbean (Programa de Incentivo aos Investimentos Brasileiros na América Central e Caribe) (Pibac). at the Brazil-Central American Integration System summit in Guatemala on September 12 and 13, which will be attended by President Luiz Inácio Lula da Silva.


    The Pibac is being rolled out against the backdrop of the recent trade treaties between the US and Central America/Caribbean, known as CAFTA. In January 2006, when CAFTA goes into effect, 99.8% of the region’s exports will have a zero import tariff for the US market.


    “Brazil continues to be interested in the Americas Free Trade Agreement (FTAA), but while it is still in the pipeline, we will take advantage of CAFTA to achieve market access,” explains Mário Vilalva of the Foreign Ministry’s Commercial Promotion Department.


    Meanwhile, in Brazil the Pibac will get to work educating the Brazilian export community on the advantages of internationalization.


    “In the case of Central America, Brazil can be competitive in the area of capital goods. So, the idea is to invest in order to make capital goods there, and then export them,” explained Vilalva.


    Agência Brasil

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Porfirio Lobo, Honduras' president

    Honduras to Dominate Mercosur’s Summit. Brazil Still Refuses to Accept New President

    The Honduras' situation and the dispute over the recognition of just-elected Porfirio Lobo as ...

    Brazil’s Formal Job Market Grows 9%, but Income Shrinks

    A survey has found that the number of workers in Brazil in the formal ...

    Castelo do Plácido

    In Fortaleza, Brazil, Old Buildings Tell City’s Story

    Founded in the 17th Century by Dutch conquerors,  Fortaleza is one of the few ...

    Lula and Dilma Rousseff

    Lula Is Not Coming Back, Says Brazilian President, Because He Never Went Away

    Responding to news that former president Luiz Inácio Lula da Silva is returning to ...

    Brazil’s Fat Lady Can’t Sing: Intermission Feature

    As a young and musically inclined adolescent of Brazilian descent, growing up in the ...

    Exports from Brazil

    Brazil Upgrades 2007 Foreign Trade Forecast from US$ 152 to US$ 155 Billion

    Brazilian exports broke a monthly record in July. Sales totaled US$ 14.12 billion. Imports ...

    Brazilian born Francileudo plays for Tunisia national team

    A Brazilian City Will be Rooting for Tunisia at World Cup

    In a remote corner of the Brazilian Northeast, 51,000 people are not only going ...

    Brazil Sends High-Level Team to London to Probe Death of Brazilian Killed by Police

    The Brazilian government expressed indignation over new information published in the media about the ...

    Brazil mining

    Tired of China’s Whims Brazil Decides to Add More Value to Its Raw Minerals

    The Brazilian government has just announced an overhaul of the management of its mineral ...

    Pratini de Moraes

    The Best Time for Brazil to Go Multinational Is Right Now

    Brazil's former minister of Agriculture, Marcus VinÀ­cius Pratini de Moraes, who is now the ...