Roberto Azevêdo to take control of WTO

Brazil’s Roberto Azevêdo is getting set to receive a major promotion and will soon be viewed as a high-authority figure on a global stage. The politician and diplomat has represented Brazil at the World Trade Organization (WTO) since 2008 and now he has been selected to run it.

Earlier this month, Azevêdo was elected to succeed France’s Pascal Lamy as Director-General of the WTO. He will officially take over in September, but he has already begun to indicate his plans for the organization. Given the current state of the global economy, Azevêdo understands the importance of his work and that he must right the ship by making a number of changes, including solidifying the union between established and developing countries.

Political differences have hindered much of the WTO’s progress in recent years, but Azevêdo is urging his colleagues to put these differences aside for the betterment of the organization and the global economy.

“We must try to move the organization forward, and it has nothing to do with the specific policies of one country or another,” he said.

Meanwhile, Brazil’s political leaders are confident in Azevêdo’s abilities to establish himself as an enforcer who can get things done and improve the overall state of the world economy. There is much enthusiasm regarding the choice to promote Azevêdo, particularly among BRIC countries—a group consisting of Brazil, Russia, India and China—as he is the first individual from that congregation to ascend to his new position.

For Brazilian President Dilma Rousseff, this is a chance to show what the country is made of and an opportunity to establish itself as a global leader. Brazil is preparing itself to host the World Cup in 2014 and the Summer Olympic Games in 2016, and this is another chance for the country to show that its representatives can handle complex global issues. Rousseff gave a statement recently commending those who voted Azevêdo into his role and indicated that Brazil is up to any and all potential challenges.

“For Brazil, it is clear that, as a result of its commitment and experience, the country will be able to lead the organization toward a more just and dynamic world economic order,” Rousseff said.

It’s unclear now what impact this will have on organizations looking to do business in Brazil, as no major impact will be felt until at least September. However, once the change is official and Brazil establishes ownership of the WTO, it will be important to keep up with any changes or new regulations pertaining to international business. Lawyers in Brazil can help companies with this process.

Legal experts mull over potential change in arbitration law

The Brazilian arbitration law may soon be changing, as regulators want to strengthen certain components of the law in order to increase its effectiveness in certain situations.

Brazil’s current arbitration law is considered strong by many legal analysts in the country, however, as it gave complex cases the opportunity to be settled by expert professionals in a manner that is both just and easy to enforce. In fact, from 2005 to 2011, arbitration has become an increasingly effective component of Brazilian law, as the total amount of the major cases that underwent arbitration in the main chambers of the country was eight times higher in 2011 than six years earlier.

Despite that fact, there are still many in favor of increased arbitration regulations, which has prompted a response from numerous professionals in the industry.

Selma Ferreria Lemes is a professor at GVLaw of Fundação Getúlio Vargas and a Brazilian representative in the International Court of Arbitration of the International Chamber of Commerce (ICC). Lemes worked on the draft of the current arbitration law, which was put in place in 1996, and is one of the individuals primarily responsible for the law’s presence in Brazil. She is fighting to keep the law in place, stating that its failure to regulate certain situations represents freedoms that she doesn’t want to see go away.

“There are many people who cannot work with this freedom, because he or she is used to being directed,” she said in a recent statement. “We have a good law. I hope that they preserve this freedom.”

It’s important for companies considering doing business in the country to obtain a firm grasp of Brazilian laws. Working with lawyers in Brazil will help establish this understanding.

Importance of increased foreign trade

The need to increase foreign trade is reaching urgent levels in Brazil, as per a recent conference attended by several of the country’s leaders.

Ambassadors Rubens Barbosa and Samuel Pinheiro Guimarães spoke to a number of Brazilian Senators during a public hearing on Foreign Relations and National Defense last month and the two indicated that the best way to increase Brazil’s economic potential while improving relations with other nations is by opening up additional trade routes and building new relationships with other countries.

Barbosa and Pinheiro pointed to a number of factors that impacted the current landscape of Brazil’s foreign trade. Barbosa pointed to the fact that foreign trade has quadrupled in Brazil between 2002 and 2012, but indicated that the numbers are slightly skewed and don’t represent what’s happening in the country—domestic consumption is still the driving force behind economic growth, which is a factor that cannot sustain itself going forward.

This news comes in conjunction with last week’s report that Brazil is seeking foreign investors to help upgrade its infrastructure. Currently, Brazil is in need of foreign partnerships, which means this could be a strong opportunity for U.S. businesses. Companies looking to trade with or invest in Brazilian organizations have a good chance to initiate a partnership now while the need is high. However, doing so will require a strong understanding of all laws pertaining to such business practices.

Lawyers in Brazil can offer guidance to any business interested in taking the country up on its various offers.

Agriculture Growth

The value of Brazilian land is increasing at a rapid rate, making the country’s landowners some of the smartest investors of the past few years.

While the global economic landscape has been anything but smooth since the crisis of 2008, land values have increased by leaps and bounds during that time. In the past four years, land has been one of the most fruitful investments in the country, outperforming gold and the stock market. In fact, dating back to 2003, the value of the average hectare—roughly two-and-a- half acres—has more than tripled.

While the entire country is benefiting from this trend, there are areas that have seen stronger increases in land value than others. For example, the North and Northeast regions of Brazil have seen an enormous growth in land value. But regardless of the location, much of this trend can be attributed to one thing—the growth in business pertaining to agriculture, or agribusiness. Many of Brazil’s crops are becoming increasingly desirable exports, which has helped improve the value of the land they are grown on.

This is interesting information for businesses around the world and is definitely something investors should be cognizant of. Working with agricultural companies in Brazil could prove to be a smart business decision, but only if proper precautions are made ahead of time. Working with lawyers in Brazil will help businesses understand the rules and regulations pertaining to agriculture, land investments, and imports and exports of related products.