Brazilian and American entrepreneurs are working together in a campaign to pressure the Brazilian government to change the rules on imports and exports. They feel it would increase the bilateral commerce and also investments.

According to them there is a loss of millions of dollars with unnecessary costs in financial transactions, because of obsolete legislation. The loss is estimated in 4% of the value of each contract.

Roberto Gianneti, director of International Relations of the Industrial Federation of São Paulo, FIESP. said in Washington that they are finishing a project to change the law, simplifying the legislation, leaving multinational executives very happy.

One of the ideas is to allow exporters and importers to have accounts in Brazilian banks that would enable them to operate without having to convert the money. He cited Brazilian aircraft maker Embraer as an example.

The company makes US$ 3 billion in profits, has to convert the money according to the exchange rate to reais, according to the law, and then uses the same money to buy in dollars the necessary equipment to build the aircrafts, losing US$ 132 million dollars in the process.

Bad business, to say the least...

Toyota Invests More in Brazil

Toyota, number two in the automobile industry, but rushing fast to the pole position, is investing more in developing countries, namely Brazil, Russia, India and China, according to news given to reporters during a press conference dinner in Tokyo by President K. Watanabe.

Today, Toyota holds 3.5% of the car industry in Brazil, but it is aiming at 10% and it also plans to become bigger than General Motors.

Plans for Brazil may include a new factory, to be officially announced in 2008. Toyota's plans for Brazil are related to the economy, doing much better than ten years ago, according to VP  for external market, Tokuichi Uranishi.

He explained that the production of Corollas in São Paulo do not leave room for any other model, thus the need for a new factory. Toyota will invest US$ 5.6 million in its Corolla factory in 2007 and will launch a new hybrid version of the Corolla.

Hirouyuki Okabe, President of Toyota Mercosur, pointed that there is a shortage of human resources, and more technicians and engineers will be needed for the brand to be able to develop a new car.

Until the year's end, Argentinean factory Zárate will grow from 45 to 65 thousand vehicles a year, which calls for an investment of US$ 9 million in the São Bernardo do Campo factory in São Paulo, which sells parts to the Argentinean unity.

Springs Merges with VP's Company

The biggest textile group in Brazil, Vice President José Alencar's Coteminas, signed an agreement with Springs, US' biggest in bed and bath.

Both Springs and Coteminas will have equal shares with Springs Global, whose headquarters will be in Brazil, with profits estimated in 2.4 billion dollars. In the merging Coteminas will receive 200 million dollars.

Vice President Alencar told President Lula himself of the signed agreement.

No to EU Sugar-Daddy Rules

After the EU announced that it would not finish export subsidies for sugar until July 2007, Brazil, Australia and Thailand presented a petition to the World Trade Organization asking it to determine a new date, through the end of this year. The end to subsidies was determined by WTO, to prevent ill competition and depression in international prices.

It is expected that the EU will conform to what was previously determined by the WTO. The touchy subject is being analyzed and the WTO shall direct all three countries authors of the petition in the next weeks.

Petrobras Sells 15% of Oil Field

Brazilian giant Petrobras is planning to sell shares up to 15% in the Jubarte field. Jubarte is located off the south of Espírito Santo's coast, a state in southeastern Brazil. Japanese Mitsu, Sumitono and Mitsubishi are on the go for the bidding.

All three companies are also making offers to finance and develop the second phase of the Jubarte project, according to news in the Brazilian press. Jubarte has reserves of about 600 million barrels of heavy oil.

Although all three proposals submitted are being analyzed, it is said that Mitsubishi has less chances. Negotiations will start right after the review of the proposals. Petrobras will keep 85% of the shares in the field. The Brazilian company invited only Japanese companies to send proposals for Jubarte.

No Crisis Today

Brazil has found a way to extract oil from deep-water reserves, and this is the reason why the country has over 7 billion barrels. Although the situation is good at present, this does not mean that Brazil is exempt from the world energy crisis.

In the 1960s the use of oil in Brazil was around 300,000 barrels a day, reaching 1.2 million by 1990, and 1.8 million in 2000; it has been stable since then. According to experts, Brazil will be producing enough oil to use and to export until 2020.

After this time, it is predicted that Brazil will go back as a buyer of oil in the international market. No oil crisis now for Brazil and certainly none for the Brazilian giant, which keeps growing and attracting foreign money today.

Planning for today without losing sight of tomorrow could be among Brazil's priorities, and maybe keeping all the oil it is not using, as opposed to selling it, would be a way to push this unavoidable future further away.

Brazil/Venezuela

Petrobras and Venezuelan PDVSA signed a bilateral agreement with investments of US$ 4.7 billion in both countries. A new US$ 2.5 billion refinery will be built in Brazil, in Pernambuco, bringing 230 thousand new jobs in four years, with capacity for 200 thousand barrels of heavy oil per day. It should start operating in four years.

US$ 1.5 Million for Brazil

Jennifer Lopez will soon be under the hot sun of a December day in Brazil. The super star from the Bronx will sing at Athina Onassis' wedding to Brazilian Doda Miranda, December 3, in São Paulo.

JLo will go to Rio to spend few days after the party. She charged US$ 1.5 million, promptly accepted by the not so discreet charm of the Greek bourgeoisie.

It Just So Happened...

Brazilian economist André Lara Rezende, the father of the Cruzado and Real Plans, decided to stay away from the government and complicated economic plans.

He started a new life riding sophisticated horses and managing fortunes, his own and other people's. Money attracts money. So Lara Rezende met people who knew Athina Onassis and before he knew he was managing the heiress' fortune of 800 million dollars.

Madonna: a Touch of Midas

The most acclaimed Brazilian fashion designer in London is not the New York celebrated Carlos Miele. Daniella Issa Helayel is Great Britain's sweetheart of the moment.

Everything started when Issa made a dress for Madonna, who not only has become her loyal client since, but it is known she has been making several suggestions.

Other celebrities are wearing Issa's creations, like Paris Hilton, Lise Jagger, Jessica Simons, daughter of Peter Simons, one of the richest men in England, Mary Fellowes (from English Vogue), stylist Amanda Sheppard, not to mention many top models who pick an Issa to attend cocktails and parties and even for the casual sophisticated everyday look.

With somewhat of a 70s look, Issa creates her own exclusive prints and is an expert in forms - her twists and cache-coeurs are among her most precious pieces. Funny thing is Issa is more celebrated in London than in Brazil.

In December Issa's collections will start selling in Brazil. Unlike Miele, who became famous in Brazil first, through his brand M. Officer. He first introduced his incredible fabrics and design back home, before he came to New York to become one of the city's celebrities' favorites. Carlos Miele has a fancy store in the meatpacking district on 14th St.

Clara Angelica Porto is a Brazilian bilingual journalist living in New York. She went to school in Brazil and at the University of Wisconsin in Madison. Clara is presently working as the English writer for The Brasilians, a monthly newspaper in Manhattan. Comments welcome at clara.angelica@gmail.com.

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