• Categories
  • Archives

Brazilian Foreign Traders Call for Less Taxes and Red Tape

Brazilian cargo train The 28th National Foreign Trade Meeting (Enaex), held last month in the city of Rio de Janeiro, raised concerns regarding the international financial crisis, which has already begun to interfere with Brazilian foreign trade and should exert a negative impact on the trade surplus, in 2009, of approximately 10% of the current figure, which is US$ 200 billion.

"One of the issues raised was fear that the effects on the balance of trade might have repercussions in 2010 and 2011, in case effective measures are not immediately adopted by the government and the private sector," said JosΓ© Augusto de Castro, vice president at the Brazilian Foreign Trade Association (AEB).

"Markets worldwide are retracting and suppliers are growing more and more aggressive. We must identify and reach the buyer," he said.

"The international crisis has interfered on the event's schedule to such an extent that the Ministry of Development has not disclosed its projections for next year's export goal, as it usually does," he asserted.

The Enaex tackled isolated aspects of foreign trade, generating a document that is going to be passed on to the government so as to contribute emergency solutions to problems that hinder the expansion of foreign trade. "To that extent, the working groups emphasized the pressing need for a change in tax policy," said Castro.

Among the measures that were called for during the event is the reduction of the income tax rate on remittances of money to foreign countries, which drives up mandatory expenses such as contracts for technical, lawyer and administrative work, generating tax of up to 40%.

In this edition, the Enaex changed its venue and format. "Before, it was held a the GlΓ³ria hotel and, as it is an open, free-entrance event, it used to count on the participation of many students. After the event was moved over to the Firjan building, it became more technical and brought the participants closer together, leading to greater integration between the AEB, the government and the entrepreneurial sector," said Castro.

The event was held on November 27 and 28, was attended by 660 companies and 20 organizations with institutional stands.

Among the main points presented in order to solve foreign trade bottlenecks is the creation of a new Law of Foreign Trade, simplifying the administrative procedures, currently comprised of more than 3,000 different bureaucratic actions.

According to information supplied by the AEB press office, the president of the organization, Benedicto Fonseca Moreira, underscored the need for the State Secretariat to ascribe priority to the foreign trade sector.

He also stated that 16 ministries are currently involved in the activity and mentioned concern over the adjustment of foreign trade logistics, which can enable the country to reduce costs for domestic producers with no need for addressing the financial aspects that are making the international financial crisis worse, and ensure greater competitiveness to Brazil.

The railways that have already been privatized, federal roads, ports and accesses to the sea represent yet another issue of bureaucratic simplification and analysis of issues, in which most of the action will be up to the private sector.

"The government needs to reduce red tape in foreign trade activities, and let the private sector operate as it should in a market economy," said Moreira.

The main recommendations include the port administration issue, draining activities, unblocking the railways in the cities, financing for replacing the lorry fleet, encouraging coastwise shipping, focusing on naval construction for the maritime transport sector, among others.

First

The Bank of Brazil launched the world's first three-in-one card, with debit, credit and digital signature, named Ourocard Foreign Trade. "Besides being the world's first, the card reduces costs and provides agility, as it does everything electronically," said Castro.

Anba

Tags:

  • Show Comments (1)

  • ch.c.

    What a joke these Brazilians !
    You are not even competitive with the other emerging countries !

    – Ranking for Doing Business 125th out of 185 countries
    – Ranking for time spent in determining and paying the taxes for an average size company : Brazil…THE WORLD WORST…needing 2600 hours YEARLY, followed by Cameroon at 1400 hours !!!!! In Brazil one needs nearly twice more time than the World Second Worst !!!!!

    Viva the Brazilian Economic Model…you wish to export the World Over…..including your corruptions and red tapes at all and every level….otherwise bureuacrats may as well…put your forms and requests…..in a lower drawer and then have it lost…in the system….voluntary !

    And as a LARGE emerging country, Noooo doubt…Brazil is the worst of all !!!

    I challenge anyone to prove me wrong…with reliable proven facts and sources ! Simple

    That is why Brazilian exports despite their self boasting will just cross the US$ 1000.- PER CAPITA !!!!!
    Much much much lower than emerging nations with similar GDP per Capita !

    Brazilians are NIL ! IRREFUTABLY….NIL ! Proven….time and again !

    RED FACED ?
    You certainly have the good reasons to be !

    πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Why Is IMF Director in Brazil?

The new Managing Director of the International Monetary Fund (IMF), Rodrigo Rato, arrived today ...

With 400 Feared Killed by Rains, Rio’s Governor Blames All of Society for Tragedy

With rescuers racing against time amid fading hopes of finding survivors of a huge ...

Prostitutes in Brazil Enlisted in War Against Sex Slavery

A move by the Brazilian Ministry of Justice during Carnaval is aimed at raising ...

Pirelli Spends Over US$ 50 Million on New Brazilian Unit

Italy-based tire company Pirelli inaugurated Wednesday, March 22, the expansion of the company industrial ...

124 People Hold 12% of Brazil’s Wealth. Half of Population Survives on US$ 4 a Day

Brazil’s 124 richest people hold assets totaling 544 billion reais equivalent to 238.6 billion ...

In Rio, 95% of Favelas Are Controlled by Drug Lords and Police-Connected Thugs

Postcard-pretty Rio, in Brazil, is pockmarked with favelas (slums). More than a thousand of ...

Brazil’s Petrobras Teaches Social Responsibility in London

The Brazilian Petroleum Institute, Pro-Natura International hosted the first Brazilian workshop on Corporate Social ...

Brazil: Northeasterners Get No Respect

Brazilian TV viewers may associate what is deemed as successful attributes with urban or ...

Mexican Coca-Cola Gets Another Big Gulp of Brazil’s Coke Market

Mexico-based KOF, also known as Coca-Cola FEMSA, the largest Coca-Cola bottler in Latin America ...

Best-seller Books, Plays and Movies

All the dirty words you knew existed, but didn’t know where to find. How ...