Brazilian Bank Invests Overseas to Win U.S. Markets

Brazil’s National Economic and Social Development Bank (BNDES) made its first disbursement from a credit line for foreign investments by Brazilian companies. The credit line was instituted in 2002, but the first loan was made only last month.

According to the bank’s president, Guido Mantega, the program will help Brazilian companies compete abroad on equal terms with foreign corporations.


The first Brazilian firm to be benefitted by the internationalization support program was the Frigoboi meatpacking company, which received a loan from the BNDES of approximately US$ 30 million (70 million reais) to acquire majority control of the Argentinean Swift Armour company.


As a result, according to Mantega, Frigoboi gained access to a meat-processing technology that does not exist in Brazil and new markets, such as the US, and began to sell processed meat.


“In this phase of globalization, it is very important for Brazilian companies to compete for markets here and abroad on equal terms with other companies, especially in segments in which Brazil has demonstrated comparative advantages.


“This means that Brazilian firms must build muscles and compete abroad. It is not enough to be efficient locally,” Mantega affirmed during the Getúlio Vargas Foundation’s 2nd Economics Forum, which took place Tuesday, September 13, in the capital of São Paulo.


“The BNDES created a line of financial support for these operations, which must produce an increase in the trade surplus. They have to result in market liberalization and, therefore, a greater trade surplus,” Mantega says.


According to the president of the BNDES, the chief beneficiaries of the internationalization support program will be companies that export finished goods.


“There exists an international competition nowadays that implies quota obstacles and tariff barriers, and you are obliged to have Brazilian subsidiaries abroad, or else you don’t have entry to local markets.


“A flagrant example of this is in the steel sector, where everybody protects the market for finished goods. Brazil is thus limited to exporting iron ore and semi-finished items.”


Agência Brasil

Tags:

You May Also Like

Buenos Aires Declaration Decries Violence Against Children in Latin America

The family and State institutions are the main settings where Latin American children and ...

Exports Are Silver Lining in Brazil’s Grim Industrial Output

Brazilian industrial production in the last quarter of 2005 was what it was in ...

Brazil Shows Its Fittest Arabian Horses

The National Arabian Show started today at the HÀ­pica Paulista, in São Paulo, the ...

Chile and Uruguay Ban Beef and Pork from Brazil

Uruguay and Chile banned the import of beef and pork from Brazil following the ...

Impunity in Brazil: 1,349 Rural Workers Killed and Only 15 Convictions

The final report of Brazil’s Joint Parliamentary Investigatory Commission (CPMI) on the Land points ...

Brazil’s Embraer Promotes Top of Line Jets af Internationl Fair

Brazilian aircraft maker Embraer is going to participate in the Idex fair for the ...

Brazil’s Minister Steps Down Over Army Rift

Brazil’s Defense Minister, José Viegas, has resigned, sharply criticizing the country’s army over its ...

Corruption and Violence: Fed Up with Status Quo Brazilians Finally Do Something About It

In Brazil, the leaders behind the March against corruption, after catalyzing popular dissatisfaction with ...

Ameron Brazil to Export Epoxy Pipes

Plastic pipe company Ameron Brazil Pipe Factory and Trade is investing 45 million Brazilian ...

This Brazilian Doctor Brought Forth 5,000 Test Tube Babies

When he travelled to Lebanon for the first time, six years ago, doctor Roger ...