Brazil and Emirates Talk Exports

    United Arab Emirates

    United Arab Emirates Opportunities for exports of services from Brazil to the United Arab Emirates were among the main topics discussed this Monday, May 12, in the "Brazil-United Arab Emirates Bilateral Foreign Trade and Investment Seminar", promoted at the offices of National Trade Confederation (CNC), in Rio de Janeiro.

    The event finished with the announcement, by the federal government, of the new Production Development Policy, which includes the concession of tax benefits and credit for the export of services.

    "With the inclusion of the service complex in the Industrial Policy, our exports will certainly be boosted," stated the Trade and Service secretary at the Ministry of Development, Industry and Foreign Trade, Edson Lupatini. The idea, according to him, is to expand the number of services made into export goods for the concession of benefits.

    With this, according to Lupatini, several fields should prepare themselves to receive benefits that are currently only granted to the trade of products, including credit at lower interest rates and tax breaks. Today, in the area of services, only exports of software and services provided by professionals in the technical area have these benefits.

    The new industrial policy has already expanded incentives to the fields of the transfer of funds for the promotion of services abroad, which is now free of income tax, and logistics services.

    Further on, according to Lupatini, the government wants to include other sectors in this regime, like tourism, telecommunications, trade, engineering and architecture, among others. According to him, the government wants to expand service exports from the US$ 22.5 billion of 2007 to US$ 39.5 billion in 2010.

    "This target is possible. If we consider all sectors, this is even conservative," he said. "And we have much to send there (to the Emirates) with very high added value in the case of technology," he added.

    The possibility is in accordance with one of the country's current interests in the macroeconomical area, which is to maintain the foreign deficit under control. The president at the Logistics Chamber at the Brazilian Foreign Trade Association (AEB), Jovelino Gomes Pires, recalled that, although Brazilian exports of goods are growing below imports, the country still has a reasonable surplus, and the deficit in external accounts takes place mainly due to the service and income accounts.

    He pointed out that the United Arab Emirates has managed to make the revenues of a mineral extraction product, oil, into an enormous service sector. That is, the country invested, and continues investing, petrodollars in the development of sectors like tourism, trade and the financial sector.

    As an example, the director of the Dubai Department of Tourism and Commerce Marketing, Hamad Mohamad Bin Mijren, pointed out that tourism now represents 33% of the Gross Domestic Product of the emirate, while oil represents just 3%.

    He presented a panorama of the works that are currently under development in Dubai, like the expansion of the local airport, the construction of the new Jebel Ali airport, as well as a series of homes, commercial buildings, hotels and resorts.

    Brazil, in Pires' opinion, could take the Arab example and export several services, like medical treatment, transportation, distance learning, decoration and engineering.

    In this respect, the institutional relations manager at construction company Odebrecht, Julio Brant, pointed out the company's experience in the Emirates and in other Arab countries. The company started operating in Abu Dhabi in 2003, where it is currently actively participating in the works for the expansion of the international airport; then, in 2004, the company built two port terminals in Djibouti and, finally, last year the organization entered the Libyan market.

    "We are currently the largest Brazilian exporter of services," said Brant. Odebrecht has already developed, according to him, around 2,000 works in over 30 countries.

    Initially the company planned to participate in the reconstruction process in Iraq, but, according to Brant, the continued violence made the company put this plan aside. Engineer João José Vasconcellos, a company employee, was kidnapped and murdered in Iraq. The natural alternative, then, was to turn his efforts to the Emirates, who were already living a boom in civil construction.

    The reasons that took the company to the country, according to him, were political and social stability, the good receptiveness to foreign companies, peaceful coexistence between cultures and the local government's determination to modernize infrastructure and institutional stability, essential characteristics for the development of long-term projects.

    The contract in Djibouti, in turn, was reached through Dubai Ports, a company in the Emirates that administers port terminals in several countries. "Apart from the execution of works in the Emirates, this shows that we may work in partnership with companies from the Emirates in other countries," stated Brant.

    Lupatini recalled that exports of services, especially in the area of engineering, bring in their wake other business, like the sale of machinery and building material.

    "The service sector should deserve special attention not just in the Emirates, but in the Arab world as a whole," declared the secretary general at the Arab Brazilian Chamber of Commerce, Michel Alaby, who mediated the panels of the seminar.

    The seminar was organized by the Federation of Chambers of Foreign Trade and also counted on the presence of the organization's president, João Augusto de Souza Lima, of business attaché at the embassy of the Emirates, Ahmad Mohamed Bassis Al Taneigi, of the Production Development secretary at the Ministry of Development, Armando Meziat, and of diplomat Carlos Leopoldo de Oliveira, of the Middle East II Division at the Brazilian Foreign Office, among others.

    Anba – www.anba.com.br

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    • Show Comments (9)

    • João da Silva

      dnbaiacu
      [quote]I’d like to know what YOUR take is on the minister for enviroment resigning? It probably broke her heart to see forces implemented the would make the position meaningless or of token value at best. There ARE some sincere people in politics . And they ususually DO resign.[/quote]

      Not many people in this blog know that Marina, the ex- minister is a self made lady. She was an illiterate house maid who went through a government school called “MOBRAL” to learn to read and write. Subsequently she got a degree in History from Federal University of Acre. She was and still is a very popular politician in Acre. She got elected as a senator at the age of 36. She was always affiliated to PT and one of the first candidates to be invited by Lula for a cabinet position (in 2003).

      The problem with her was that she questioned too much about the actions of her boss and his cronies. I think that another problem was that she did not come out with alternative solutions. She also did not realize that her party members forgot their roots.

      One thing I am pleased is that she entered as a “lady” and left like one. Did not lose her posture nor her dignity. I am sure that she will always be defending the interests of her “Querido Acre” pra sempre.

    • dnbaiacu

      Thank Joao for the insight
      [quote]”Make Hay, while the sun shines”. That is what we are doing.[/quote]
      That HAS to sum it up. It’s no different than the present profiteering of the oil companies. “Get it while you can”. They better hope the U.N does impose any trade restrictions in the future. (the U.N. is the real sleeping giant. The Pope just gave it his blessing.) BRINCADEIRA!

      But the “sun” is quickly setting over there. I don’t see the logic? Companies do well to STUDY political science. And be realistic. This is the true nature of the game these days. You would think they do. But it is becoming pretty obvious some don’t. This will be interesting to watch.
      I’m a NOBODY and it didn’t take much intelligence to forsee where the euro is at now as opposed to when it first came out. Funny thing was my brokers claimed they had no clue as to how I could buy them (when they first came out)except by making a trip physically over there.
      Anyway , this “partnering” with the ME is going to be interesting to watch.
      Thanks for your input.
      I’d like to know what YOUR take is on the minister for enviroment resigning? It probably broke her heart to see forces implemented the would make the position meaningless or of token value at best. There ARE some sincere people in politics . And they ususually DO resign.

    • João da Silva

      Ch.c
      [quote]You are clever Joao ![/quote]

      Oh, thanks.

      What do you think of the exit of our Minister (for environment) Marina Silva? I liked her, because of the stances she took, in spite of her pertaining to PT. I hope she continues doing a good job in the Senate.

      Any opinion about the new minister?

    • ch.c.

      You are clever Joao !
      ” What can we sell? Only food. *
      So right !
      Cheap Brazilian fooda for the foreign construction workers.
      Premium and Expensive European foods for the wealthy locals.

      How could/should it be different…if one has tons of money ?

    • João da Silva

      dnbaiacu
      A correction. I said:

      [quote]What can we sell? Only food. Because they can buy from China, India, Pakistan ,Egypt, etc; Technology? Forget it. [/quote]

      It should read “Because they can buy OTHER THINGS from China, India, Pakistan ,Egypt, etc; for more competitive prices”

    • João da Silva

      dnbaiacu
      Thanks for your response with interesting comments. I will restrict my comments to just the trade between Brazil and the ME. I have been following the evolution (or lack of it) for over a decade and in fact I have participated in some debates and seminars here regarding Foreign trade in general and trade with the ME in particular.Unfortunately, the efforts made by the Brazilian companies with regards to exports of goods and services to that region have been haphazard and depend on our needs to generate foreign reserve. The policies of various governments (after the military left) with respect to this have been quite comic.

      I think that you yourself gave the answer for our wooing the Middle East:

      [quote]Yes, they need to eat over there and they have money to trade. But for how long?
      One thing is for sure. A “CHANGE” is in the making. No one knows what it is. No one knows what it is going to cost.[/quote]

      They need to eat, clothe themselves and have all the comforts that their petrodollars can buy. They have plenty of Dollars. What can we sell? Only food. Because they can buy from China, India, Pakistan ,Egypt, etc; Technology? Forget it.

      So I think that Brazil has to sell “Value Added” food items, with famous brand names. That is the reason, the American companies are rushing in to sign contracts with Brazilian ones like Sadia, PerdigÀƒ£o, Cica, etc;

      I don’t know if we are going to make lots of money on this new frenzy, but there is an old saying “Make Hay, while the sun shines”. That is what we are doing.

      And I don’t know what it is going to be two years from now. QuÀƒ© serÀƒ¡ serÀƒ¡, the future is not with us to say!

    • dnbaiacu

      [quote]What do you think that is happening there? [/quote]
      For starters. Bush is running around trying to get a peace deal in the region before the end of his term. In the meantime today Isreal celebrates 60 years of a coup of palestian land.
      Here in the States, by the day we are getting poorer with this mortgage, energy, and falling dollar crises. And everyone is expecting that the next president ( whoever he may be) to pull out of Iraq. And if that were to happen, the popular consensus is that the region will be destabilized. Why would you form alliances in such a volatile situation?
      Yes, they need to eat over there and they have money to trade. But for how long?
      One thing is for sure. A “CHANGE” is in the making. No one knows what it is. No one knows what it is going to cost. A wait and see attitude would be the most pragmatic approach to any middle east involvement, unless that is you are talking about military technology.
      It is like plugging in to what soon will be the worlds biggest enemy.
      Who is going to take over the situation once the U.S inevitably pulls out?.. .. The U.N. !!!!! That’s why the Pope was over here babbling. There will be a united front against Islamic “terrorists”.
      All you hear Bush saying is that we have to “stop our dependency on foreign oil. ” Translation,,, “oil companies , make it while you can, we are going to blow them all up soon.”
      In the meantime the American people are being broken until they are willing to accept giving up whatever will be left of the countrys’ own constitution ( after the Homeland Security Act kicks in) all in the name of “security”.
      This game has been played hundreds of times throughout history. Break them down,, take former rights and liberties,, control them.
      The world should know Obama is being pimped as a neutral front to pacify the masses. He will sweet talk everyone to accept the U.N.
      The North American Union is quietly in the making. Deals were being closed (although not advertised as such ) some weeks ago. (quickly swept under the rug, Bush giggling all the way)
      Why am I so convinced they are “putting” Obama in office.. Just follow the money. The media has already written Clinton off. And God knows only a terrorist attack here is going get people to turn to the Republican McCain at the 11th hour. God forbid that worse case scenario.
      But HELLO! They are all CFR members anyway. New World Order supporters. So no one really had a real CHOICE anyway.
      Do you see the big picture.?
      And now Brazil is getting all chummly with the Middle East? I don’t get it?

    • João da Silva

      [quote]Something is happening FAST over there.[/quote]

      What do you think that is happening there?

      [quote]Wake UP Brazil!! You can’t just do ANYTHING for money![/quote]

      The “Sleeping Giant” has already waken up and it is having breakfast!!

      Do you know that the latest news is that the “Ministra do meio ambiente” has quit? Probably you did not read your favorite newspaper from BA [i]yet[/i] 😉

      Take care.

    • dnbaiacu

      What?!!!
      All of this partnering with the Middle East? These aren’t forward thinking moves. Is Brazil that desperate? Do these ministers and businessmen see what is happening? So shortsighted or just plain blind. Or maybe they know something we don’t? Which is doubtful. One thing is for sure , they better make money or whatever they intend to do with this “partnership” within the next 12 months or sooner. Something is happening FAST over there. Oil prices are UP for nothing . Neither are the unknown “powers that be ” putting Obama “the front” in office for nothing. Wake UP Brazil!! You can’t just do ANYTHING for money!

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