The European Union (EU)

and Mercosur, the South

American trade bloc,

moved forward, as Mer-

cosur countries adopted

unified positions.

The Mercosur countries

reiterated commitments to

advancing the negotia-

tions, which have stalled

recently, and German

Angela Merkel also ex-

pressed hope for a fair

deal between the groups.

The deal would be a con-

siderable victory for Bra-

zilian agribusiness and

manufacturers alike, who

would gain more favora-

ble access to the large EU

export market.

Export industries experi-

enced a scare last month

when some countries froze

beef imports amid a

health inspections scan-

dal, but tests and reas-

surances led those deci-

sions to be quickly re-

versed. But the issue was

not expected to imperil

the talks.

With efforts like the TTIP

stalling amid rising pro-

tectionist sentiment in

many advanced econo-

mies in the United States

and Europe, a break-

through in Europe-South

America trade would be

a significant victory for

businesses in each of

those markets.

A deal would also aid

intermediate goods pro-

ducers in the supply

chain sometimes export-

ing to Brazil, especially

in agribusiness areas

with high-tech parts not

always made in Brazil.

EU and Mercosur move forward on trade talks

Exchange Rate News

The Brazilian real (BRL) was somewhat more volatile during the month of March vis-à-vis the US dollar (see graph at right on inverted scale), but finished the month at roughly the level it began, at roughly 3.12 BRL per USD.

APRIL 2ND

FOREX QUOTES:

USD-BRL 3.120

USD-GBP 0.796

USD-EUR 0.938

USD-KRW 1116

USD-JPY 111.37

USD-CNY 6.889

INFLATION EXPECTED TO REGISTER BELOW TARGET

2

FUNDING INCREASES FOR BRAZILIAN DRONE PROJECTS

2

GOOGLE LOOKS TO BOOST INVESTMENT IN BRAZIL

3

EMBRAER TESTS JET PROTO-

TYPE IN SAO PAULO STATE

3

CHINA BECOMES BRAZIL’S LARGEST EXPORT MARKET

3

PORSCHE BRINGS HYBRID MODEL TO BRAZIL

4

TRADE SHOWS: APRIL, MAY, AND JUNE

5

BRAZIL BUSINESS NEWS HEADLINES

6

Inside this issue:

April 2017 Volume 6, Issue 4

Brazil Buzz!

Business news and updates for opportunity seekers

Tradebrz WTC Business Tower Av. das Nações Unidas, 12551, 4th Fl Sao Paulo-SP—04578-903 Ph: +5511 -3044-4848 Mobile: +5511-97207-2065 Ph: +5511 -3044-4848 Mobile: +5511 –97207-2065 fabio@tradebrz.com

Source: Oanda

BRL per USD in March 2017

farmers elsewhere in the

world, and may soon become

an integral part of farm man-

agement.

The Brazilian military, like

other countries in the region,

has also used drone technolo-

gy as part of border surveil-

lance efforts to boost counter-

trafficking initiatives.

These growing ranks of cus-

tomers, together with Brazil’s

status as a world leader in

aerospace technology, make

the country make clear the

trend toward funding and

developing greater drone

production capacity.

Drones are garnering greater

interest, as well as greater fi-

nancing, in Brazil as they seek

out opportunities in the country.

SP Ventures, an investment fun

recently involved in one such

deal, provided a loan of 3 mil-

lion Brazilian reais for Horus

Aeronaves, a small drone de-

veloper, to expand its opera-

tions.

Brazil’s large and growing ag-

ribusiness sector could soon de-

mand even greater involvement

of drone flights for duties like

crop monitoring and mapping.

Unmanned aerial vehicles like

those made by Horus have be-

come increasingly utilized by Page 2

Brazil Buzz!

“APPROVAL OF A

GOVERNMENT

SPENDING CEILING

AND IMPORTANT

REFORM

PROPOSALS SENT

TO CONGRESS ARE

INITIATING AN

INCREASE IN

CONFIDENCE.”

- Institute of Applied

Economic Research,

in written note

whom feared a worsening stag-

flation scenario of low growth,

complicated by rising prices.

The stabilization has also enabled

the Central Bank to cut rates, a

move that would have been a risky

means of boosting economic growth

amid higher price levels.

The government’s aggressive ap-

proach to budget cutting and deliv-

ering broader fiscal reform pro-

posals for debate in congress are

evidently bearing fruit.

Along with the improved inflation

expectations, Moody’s an American

ratings agency, raised its debt rat-

ing for Brazil to “stable,” marking a

serious move toward investor confi-

dence and market-based belief in

the country’s longer term stability

and growth prospects.

Figures from Brazil’s official eco-

nomic research institute showed the

country’s inflation expectations

likely falling below the target lev-

el of 4.5 percent in 2017.

The stabilization of prices in the

country as of late has brought a

sense of relief to politicians and

ordinary citizens alike, some of

Funding and interest increase for Brazilian drone projects

Inflation expected to register below target in 2017

Source: Flickr Creative Commons, Mark Hillary

Horus FT-100 drone (Source: Defesanet)

Google Brazil executives have

indicated that the company

will maintain its current invest-

ment trajectory in Brazil.

Over the past three years,

Google invested on the order

of 500 million Brazilian reais

in the country, where the tech

giant has expansive opera-

tions.

With a growing online popula-

tion, Brazil presents an ex-

panding base of internet users

likely to use its services.

The company has taken ad-

vantage of this fact and increased

its service offerings, as well as of-

fering entrepreneur trainings, lay-

ing more Western Hemisphere-

linking undersea cable, and other

moves in an effort to cement its

sectoral leadership in the country.

Recent activities by Google in Bra-

zil include the launch of Waze, a

navigation app that the company

acquired after it gained wide-

spread popularity in the US and

elsewhere.

Google looks to maintain investment rhythm in Brazil

Embraer tests prototype for new family of jets

terior of Sao Paulo state, sig-

nal a key step before the jets

can become part of the new

Embraer fleet bound for for-

eign buyers in export markets

across the globe.

The first E190-E2 is slated to

be ready for commercial

flights next year, with a Euro-

pean airline preparing to be

the first customers to pilot the

new line.

Brazilian aerospace giant

Embraer announced it had

completed test flights for

prototypes of its new family

of jets.

The prototype is part of the

new E190-E2 line of commer-

cial jets, intended to supple-

ment the company’s existing

options for major airlines.

The tests, carried out at the

company’s facilities in the in-

Page 3

Volume 6, Issue 4

Trade data released for the first two months of

2017 showed China replacing the European

Union as Brazil’s largest export market abroad.

The period showed export growth to Asia’s

largest economy of nearly 80 percent, surpris-

ing many analysts.

The boost was at least in part thanks to in-

creased sales to China in grains, chicken, soy

products, cellulose, pork, plastics, worked iron,

and airplanes. The varied makeup of goods ac-

counting for the growth showed that it was not

the performance of just one in-demand product.

With that increase, China became the number

one destination for foreign-bound Brazilian

products, rising from representing 14.6 percent

up to 21.6 percent of Brazil’s total exports.

China becomes largest market for Brazilian exports

“OUR PROPOSAL IS

TO OFFER

TECHNOLOGY THAT

HELPS MAKE

GOVERNMENTS

AND BUSINESSES

MORE

PRODUCTIVE.”

- Fabio Coelho, Vice

President of Google

Source: Flickr Creative Commons

English Language news sources for Brazilian news:

http://www1.folha.uol.com.br/internacional/en/ http://thebrazilianeconomy.com/

Porsche announced the arrival of its hybrid

Panamera model, soon to be seen driving on

Brazilian roads.

With carmakers expanding operations and

importing new models to the market, the up-

swing in interest and investments appears to

be putting an end to the period of weak de-

mand that plagued the industry during Brazil’s

concurrent political and economic problems last

year.

The arrival is set against a backdrop of growing

interest in hybrid vehicles in the country. While

the Prius and hybrid models of other cars have

long since become popularized in the US and

other markets, they have taken longer to gain

traction in Brazil.

That has begun to change, however, with more

car companies beginning to offer hybrid and

electric models. Nissan, for instance, is now selling

its Leaf electric model, and others may soon join

if conditions allow.

Porsche Panamera hybrid arrives in Brazil

Page 4

Fabio Yamada Tradebrz—Trade and Investment Promotion

WTC Business Tower Av. das Nações Unidas, 12551

4th Floor Sao Paulo-SP—04578-903

Ph: +5511 -3044-4848 Mobile: +5511-97207-2065

fabio@tradebrz.com

For information on how to participate in these or other trade shows in Brazil, contact fabio@tradebrz.com

May 1-5: AGRISHOW (agricultural technology) May 2-5: APAS (supermarket management) May 9-12: GLASS SOUTH AMERICA (glass technology & design) May 16-19: HOSPITALAR (hospital, lab, pharmacy, clinic & exam room) May 23-25: CARDS PAYMENT AND IDENTIFICATION May 23-25: FCE COSMETIQUE (cosmetics industry) & FCE PHARMA (pharma industry) May 23-25: EXPOSEC (private & public security)

BRAZIL TRADE SHOWS AND EXPOS, MAY 2017

BRAZIL TRADE SHOWS AND EXPOS, JUNE 2017

June 1-4: REATECH (physical rehabilitation and accessibility) June 23-26: BRAZIL OFFSHORE (oil & gas) June 27-30: FISPAL TECNOLOGIA (food & beverage industry packaging, processes & logistics)

BRAZIL TRADE SHOWS AND EXPOS, APRIL 2017

April 4-6: INTERMODAL SOUTH AMERICA (logistics, cargo transport & international trade) April 4-7: LAAD DEFENCE & SECURITY (security equipment & services for armed forces & law enforcement)

AB InBev to use 100 percent re-newable energy in Brazil

Multinational brewer AB InBev announced that, by the year 2025, all of the energy used in its Bra-zilian outfit’s operations will derive from alternative renewable sources. This means even its hydroe-lectricity, on which Brazil is highly dependent, will come from small sources rather than mega dams.

New Land Rover arrives in Brazil Land Rover’s newest model of its popular Velar SUV hit the Brazilian car market last month after its presentation in a Sao Paulo showroom. The sector has begun recovering from a recent slump, and carmakers in all segments of the market are hopeful for a return to the pre-crisis market growth.

Energisa plans 1.4 billion reais in investments

Energisa, an electricity provider, announced 1.4 billion reais in intended investments in 2017. The move would broaden the utility’s delivery capacity.

Airbus projects heavy aircraft de-mand in Latin America

European aerospace giant Airbus released estimates for Latin American demand growth for commer-cial jets, predicting that nearly 2,600 planes will be sold in the region for US$350 billion by 2020.

Canadian Solar wins financing for Brazil projects worth $20 million

Canadian Solar managed to obtain financing for US$20 million in projects soon to be underway in Brazil. A broader array of international funding sources for alternative renewable energy projects is changing the financing options for project developers previously dependent only on domestic banks.

Industrial goods consumption ticks upward to start the year

Brazilian consumption of industrial goods ticked upwards in January, as indicated by official figures released last month. The indicator, together with slowing inflation, bodes well for the country’s re-bound prospects this year.

Qualcomm to open semiconductor factory in Sao Paulo

Multinational telecoms firm Qualcomm announced it will open a new semiconductor factory in the city of Campinas, in Sao Paulo state. The company will invest US$200 million in the factory, as part of a joint venture with ASE Group and Brazil’s national development bank.

Brametal diversifies and enters solar equipment market

Brametal, a metal company in Brazil that specializes in electricity transmission towers and related equipment, announced it will enter the market for large-scale solar photovoltaic products.

EPE shows energy consumption continuing to trend upward

Brazil’s energy research arm showed that energy consumption in the country is continuing along its long upward trend. January consumption rates edged up 2.8 percent over January of last year.

Year begins with elevated beer sales

According to new figures, 2017 began with a boost for beer sales in Brazil. An industry group’s numbers showed several common brands showing growth of up to 40 percent over 2016.

Dassault plans Brazil expansion French aerospace firm Dassault announced plans to resume its business expansion efforts in Brazil. The company will accelerate its service offerings for private jets in the country.

Moody’s raises Brazil’s investment grade to “stable”

Moody’s, an American ratings agency, raised Brazil’s sovereign debt rating from negative to stable in a move that signaled greater investor confidence in recent macroeconomic trends in the country. The improvement credited at least in part the faster than expected fall in Brazilian inflation figures.

Brazil Business News Headlines

Culture Corner Papaya Cream Recipe

This is a popular dessert in Brazil. No wonder, because it's a most delicious and quick-to-

prepare summer dessert. It must be made and served right away. You will need a blender to

prepare the cream. This recipe serves one (a generous serving...).

- 1 ripe papaya

- 1 scoop vanilla ice-cream

- 1 tbsp. Creme de Cassis

- 1 sprig of mint for decoration

Peel papaya and remove seeds. Cut in small pieces. Put in blender with ice-cream and Creme de Cassis. Blend well until

smooth. Pour into a small bowl and decorate with mint. The mix of flavors and colors (orange papaya and purple liqueur)

is wonderful! If you don't want it to be alcoholic, use cassis syrup instead. You can reduce the calories by using Light ice-

cream.

Fogodechao.com