ANNEX I
SCIENCE AND TECHNOLOGY INITIATIVES
BACKGROUND
I1. During the last 20 years, Brazilian
scientific research output has had one of the fastest growth rates
in the world. From 1990 to 2001, the number of new PhDs coming
out of universities across the country grew annually at a rate
of 16.1%.
I2. Brazil's S&I expenditure is 1.37%
of GDP, which equated to £510 million in 2005. The ratio
between public/private expenditure in R&D is 55/45, demonstrating
that the majority of science and innovation is still carried out
in public universities and research centres. In recent years much
attention has been dedicated to shifting this balance, but change
is slow.
I3. In technology, multinational companies
continue to set up R&D centres in Brazil, especially in the
ICT sector. Brazil's technological aspirations are focused on
software, medical and pharma products, semiconductors and capital
goods. Future bearer sectors are biotechnology, nanotechnology
and biomass. These initiatives are outlined in Brazil's Industrial,
Technological and Foreign Trade Policy.
I4. The passing of a new biotech law has
allowed stem cell research to move ahead with government funding.
The main, £3 million, programme, involving 40 institutions,
focuses on their efficacy in treating heart disease.
SCIENCE AND
TECHNOLOGY ACTIVITY
I5 June 2005: Blood Seminar with Prêmio
Jovem Cientista, Dr Suzanne Watt, Head of Stem Cell Biology and
Immunotherapy Department, National Blood Service, Dr Clive Dash,
Scientific Director of Bio Products Laboratory (BPL). The theme
of the Brazilian Research Council's annual Young Scientist Award
in 2005 was "blood". UKTI had been working with Bio
Products Laboratory (BPL), a business unit of the UKs National
Blood Service, to strengthen their image as a potential partner
in the establishment of Brazils national blood fractionation facility.
The S&I section brought the scientific director of BPL and
the head of the Stem Cell, Biology and Immunotherapy Department
of the National Blood Service to take part in a seminar organised
by the Brazilian Research Council to promote its award.
I6. February 2006: Conversion of Wave Energy
into Electricity in partnership with UK Brazil Centre of Ocean
Engineering. With global concern over energy security, Brazil's
extensive coastline offers huge potential to exploit wave and
wind energy. In partnership with the UK-Brazil Centre of Ocean
Engineering, the S&I section and UKTI Energy team organised
a wave energy seminar in February 2006, highlighting an area where
the UK is a world leader. The event discussed the Brazilian prototype
currently being set up and showcased two successful British companies,
Wavegen and Ocean Power Delivery Ltd. Brazilian and British academics
were also present.
I7. February 2006: Bioethanol Project mission:
Sir David King visited Brazil in June 2005 and identified an opportunity
for the UK to work with Brazil on a joint project that evaluates
the worldwide potential capacity for ethanol production as a viable
energy source. There is a worldwide interest in expanding production
of biofuels in order to reduce carbon emissions from transport
and a significant commercial and governmental interest. In response
to the government priority we organised a scoping visiting programme
for E4Tech consultants.
I8. The UK Presidency of the G8 has raised
two major issues to the top of the global agenda—climate
change and African development. Sir David King identified the
potential for the UK to contribute to these G8 agenda goals by
encouraging the development of an African bioethanol sector based
on Brazilian Technology and know-how. This would reduce the dependence
on fuel imports and create a new revenue source for those countries.
I9. OSI (Office of Science and Innovation)
launched the project, announcing a Brazil: UK: South Africa bioethanol
partnership during President Lula's visit to the UK in March 2006.
It is becoming increasingly clear that the project will not be
primarily about technology transfer. The technology is commercialised
and readily available on the market and therefore the scope for
HMG intervention in this respect is limited. What is required
is help for African governments to establish the policy, regulatory
and infrastructural framework which would facilitate private sector
investments in those technologies for bioethanol production. Given
the focus it now seems likely that DFID will take the project
forward.
I10. March 2006: Recife—IT workshop
in partnership with CESAR and FINEP. Recife is home to a growing
IT cluster. In March 2006 the S&I section and the UKTI trade
office in Recife together with Recife's Centre for Advanced Studies
and Systems (CESAR) launched the British-Brazilian Discussion
Group on Entrepreneurship (BRIDGE) with a seminar entitled "How
to create innovation and lead it to entrepreneurship". Entrepreneurship
centres and innovative institutions from the UK, as well as local
companies from Recife's Digital Port cluster took part in the
event. The idea was to exchange trade experiences between institutions
and to create opportunities for new relationships that may lead
to future interaction, such as exchange programs, exchange of
knowledge or partnerships.
I11. March 2006: Sao Paulo—a scoping
visiting programme with some of the leading video games developers
and mobile games/entertainment companies in Brazil was organised.
As a result, Global Watch with support from Business Group (formerly
known as IIG) will organise an Inward Mission from Brazil focused
on mobile content and applications in November 2006.
I12. This mission will combine trade, investment
and technology partnering objectives. Its overall aim is to raise
awareness in the UK of Brazil's science and technology strengths
and its market potential, as well as to promote the UK as the
location of choice for overseas expansion.
I13. April 2006: International Centre for
Digital Content (ICDC) visited Brazil to meet the main Digital
TV researchers with the idea of developing a project to share
expertise to develop iTV applications for the Brazilian/Latin
American market.
I14. The development of the prototype will
be an interactive process and the results will be disseminated
at the end of project workshop in the UK. This intention is to
stimulate interest among UK companies already working in the DTV
field, with ICDC's existing partners, BT and BBC, being the main
players who have already signalled their interest in seeing the
results of the project.
I15. ICDC will be able demonstate to these
companies, the experience and know-how of developing bespoke content
tailored for the Brazilian interactive TV marketplace. The prototype
will provide a case study to demonstrate the way in which UK companies
can partner with Brazilian organisations in the digital TV sector.
The project is the subject of a GOF (Global Opportunities Fund)
bid evaluation.
I16. May 2006: London—Brazil Day at
Royal Society: The Royal Society held a Brazil Day in May 2006,
organised on behalf of the UK Office of Science and Technology
and the Brazil Ministry of Science and Technology. The event provided
an opportunity for UK and Brazilian scientists to share research,
explore future collaborations, and further existing links. Brazilian
and UK scientists in the areas of Animal Health, Biotechnology
and Drug Discovery, Climate Change, Foresight, Nanotechnology
and Organic Electronics participated in parallel workshops following
the Brazil Day to discuss their research and to seek opportunities
for future links.
ANNEX J
ARGENTINA TRADE AND INVESTMENT BRIEF
TRADE
|
| Millions | 2004
| 2005 | Jan-June 2006
|
|
| UK exports | 178.68
| 168.90 | 106.8
|
| UK imports | 272.18
| 290.89 | 170.4
|
| Balance | -93.5
| -121.99 | -63.60
|
|
J1. Argentina is the UK's third largest market in Latin
America after Mexico and Brazil. In 2005 the UK exported goods
totalling almost £169 million to Argentina and imported £290
million from Argentina in the same period. GDP growth was 9.2%
in 2005 and inflation exceeded the government's expectation at
12.3%.
J2. Despite the difficult economic climate, Argentina
continues to offer significant trade opportunities for UK companies.
The most promising opportunities can be found Argentina's export
sectors such as agriculture, mining, petrochemicals and the creative
industries.
J3. Argentina's recession of the late 1990s developed
into a full economic crisis in 2001-02. The Argentine peso, which
was pegged to the US dollar, was devalued in early 2002 and led
to Argentina defaulting on its foreign debt (the highest ever
by a sovereign government). In the last few years economic growth
in Argentina has been strong (9.2% in 2005 and 7.5% forecast for
2006) and GDP has recovered from its pre-crisis levels. It remains
to be seen whether growth can be maintained long term whilst keeping
inflation in check. This year inflation is forecast to reach between
12-15%. Argentina's long term recovery will also depend on structural
reforms: combating tax evasion, excessive bureaucracy, corruption
and an inefficient judiciary system will be essential to improve
Argentine competitiveness. Improvements in legal and judicial
security are needed to attract, and maintain, foreign investment.
J4. The strict exchange controls that were introduced
at the start of 2002 have been eased, importers can now prepay
all their purchases and companies have more freedom to remit royalties
and dividends abroad. In 2005 the Argentine government paid off
its IMF debt, although significant repayments are still needed
to cover World Bank and IADB debts.
INVESTMENT
J5. Britain has a long history of investing in Argentina
and many well known international companies have a presence in
the market. The UK is the sixth largest foreign investor with
approximately 5% of total foreign investment.
J6. British Gas, through its subsidiary Metrogas, operates
the gas distribution network in Buenos Aires. Other important
British investors include: BP and Shell in the energy sector,
Rio Tinto in mining and HSBC in the banking sector. Over 30 over
the UK's top 100 companies have investments in Argentina.
J7. The current Kirchner government has an ambiguous
policy towards foreign investors—it knows that the country
desperately needs FDI, but this has not prevented it from criticising
investors for the country's economic crisis of 2001-02. President
Kirchner also encouraged a blockade against Shell in February
2005 after the company decided to raise petrol prices. Foreign
investors have been easy targets for government complaints about
rising inflation price and high levels of poverty. Several foreign
investors (including UK firms) have international arbitration
claims against the Argentine government. Most of these claims
are from privatised utility companies, whose tariffs were artificially
capped following devaluation.
ANNEXES D, G & K (NOT
PRINTED HERE)
October 2006
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