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Economic Institutions in Brazil

Business in Brazil is booming. The country has been achieving good results since the 1990’s and now foreign investors have started taking notice. Many people are investing in Brazil and many more are starting up new companies or new branches to their existing companies in Brazilian jurisdiction. The economy is stable overall, which means it has come a long way from the time before the 90’s. A major part of Brazil’s economy is the exportation of goods to other countries. Its economy is actually the sixth in the world, and the first in Latin America. Another reason why Brazil has remained afloat for so long is its economic development institutions. Three major economic institutions include SACN, Mercosul, and the Cairns Group

  • SACN: The South American Community of Nations, or SACN, is a major contributor to Brazil’s economic success. It set out to be more than just a trade union, and its ultimate goal is to turn South America in to the United States in the sense that the country is a unified nation. Many tariffs have been abolished with the help of SACN, and Brazil is more supported by its neighboring countries than ever before.
  • Mercosul: Mercosul was established in 1991 with the goal of promoting free trade in South America. It is a political and economic agreement between Argentina, Brazil, Uruguay and Paraguay. This economic development institution allows all of the countries in South America to support each other by trading goods freely. It is considered a full customs union.
  • The Cairns Group: This economic development institution is comprised of 19 countries that are serious agricultural exporters. Agricultural goods are Brazil’s number one export, so it’s clear why they are a member of the Cairns Group. Other countries in this group include Argentina, Bolivia, Australia, Indonesia, New Zealand, Malaysia, Pakistan, Peru, Paraguay, Guatemala, Costa Rica, Columbia, Chile, Canada, the Philippines, Thailand, South Africa and Uruguay. The foundation of the group was a response to trade subsidiaries that were hurting exporters. The objective of the Cairns group is to bring about a liberalization of the agricultural produce being traded globally. Specifically, the members want to abolish export subsidies and improve market access to agricultural goods across the globe.

Advantages in Investing in Brazil

Brazil is a stable country right now, especially when its turbulent past is considered. While it has been successfully attracting investors and business owners on its own, it has also received some much needed help from economic development organizations aimed to improve the exportation landscape in South America. By abolishing certain taxes and subsidies in the exportation process, Brazil can really make a profit off of its exports, especially those that are agricultural in nature.

If you’re looking to invest in Brazil, you should understand that exportation and the economic development institutions that support it are a major reason why business is booming. Brazilian attorneys experienced in economic and business matters can also be a great help in your Brazilian investment.

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