Brazilian Bank Invests Overseas to Win U.S. Markets

    Brazil’s National Economic and Social Development Bank (BNDES) made its first disbursement from a credit line for foreign investments by Brazilian companies. The credit line was instituted in 2002, but the first loan was made only last month.

    According to the bank’s president, Guido Mantega, the program will help Brazilian companies compete abroad on equal terms with foreign corporations.


    The first Brazilian firm to be benefitted by the internationalization support program was the Frigoboi meatpacking company, which received a loan from the BNDES of approximately US$ 30 million (70 million reais) to acquire majority control of the Argentinean Swift Armour company.


    As a result, according to Mantega, Frigoboi gained access to a meat-processing technology that does not exist in Brazil and new markets, such as the US, and began to sell processed meat.


    “In this phase of globalization, it is very important for Brazilian companies to compete for markets here and abroad on equal terms with other companies, especially in segments in which Brazil has demonstrated comparative advantages.


    “This means that Brazilian firms must build muscles and compete abroad. It is not enough to be efficient locally,” Mantega affirmed during the Getúlio Vargas Foundation’s 2nd Economics Forum, which took place Tuesday, September 13, in the capital of São Paulo.


    “The BNDES created a line of financial support for these operations, which must produce an increase in the trade surplus. They have to result in market liberalization and, therefore, a greater trade surplus,” Mantega says.


    According to the president of the BNDES, the chief beneficiaries of the internationalization support program will be companies that export finished goods.


    “There exists an international competition nowadays that implies quota obstacles and tariff barriers, and you are obliged to have Brazilian subsidiaries abroad, or else you don’t have entry to local markets.


    “A flagrant example of this is in the steel sector, where everybody protects the market for finished goods. Brazil is thus limited to exporting iron ore and semi-finished items.”


    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    Your email address will not be published.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

    A group from Brazil's Mial Movement For Exchange of Adolescents from Lavras

    A Brazilian Girl in Germany’s Junior 8 Summit

    Fernanda Winter, 17 years old, will be the first Brazilian to participate in the ...

    Brazilian ambassador to UN, Sérgio Vieira de Mello

    Brazilian UN Envoy Killed in Iraq Gets a Bronze Bust in Geneva

    Sérgio Vieira de Mello, a Brazilian ambassador to the UN who was killed four ...

    A street reserved for camelôs, street vendors, in Brazil

    Brazil: More than Half of Sí£o Paulo Population Buys Pirated Products

    Music, film and publishing industries from around the world lose billions of dollars annually ...

    The World of Education Is Gathering in Rio, Brazil

    The World Education Forum (WEF) begins Wednesday, March 22, in the city of Novo ...

    Brazil Gets Tough in Haiti, Freeing Kidnapped People and Seizing Drugs

    The United Nations peacekeepers in Haiti, headed by Brazil, have been taking action to ...

    Brazil Scolds Mexico for Visa Requirement and Threatens to Bar Country from Mercosur

    The Brazilian Minister of Foreign Relations, Celso Amorim, commented today in New York about ...

    World’s Unions Meet in Brazil and Bash Neoliberalism

    The secretary of Social and Economic Policy of the International Confederation of Free Trade ...

    Brazilian Market Betting on Deep Cut in Interest Rates

    Latin American stocks fell, with Brazilian shares falling on profit taking following recent gains ...

    Brazil Chalenging US Leadership and Raring to Be New IDB Boss

    After 17 years at the helm of Latin America’s largest source of development financing, ...

    Brazil’s Lula Goes to Venezuela

    Brazil’s President Luiz Inácio Lula da Silva will be off on a trip Sunday, February ...