APPENDIX 27
Further supplementary memorandum submitted
by UKTI
AJETCO RECOMMENDATIONS AND PROGRESS
1. Encourage the relevant authorities in each
country to address issues that have been raised as a priority
by the JETCO workshops.
Good relationships established and
regular meetings are taking place both in Brazil between the UKTI
team in Brasilia and Brazilian officials to exchange information
and discuss progress and in London between UKTI and the Brazilian
Embassy.
2. Consider and, as appropriate, develop a
structured and co-ordinated approach to deliver successful programmes
of events to increase awareness of the opportunities for bilateral
trade and investment.
Collaboration on events such as:
Brazilian Chamber Lunch for the Foreign Secretary; Brazil Trade
and Investment Conference in London attended by Andrew Cahn;
Brazil awareness seminars with an
engineering focus are being organised in the regions and already
UKTI have organised four in North West, West Midlands, Yorkshire
and Humber and London in the last five months. We are already
seeing outcomes eg from the Yorkshire & Humber event five
companies have expressed interest in Brazil which are being followed
up.
A series of emerging markets (including
Brazil) seminars have been arranged in the South West region.
A sharing of events calendars and
strategies on relevant JETCO sectors, encouraging greater cooperation
and participation.
3. Foster co-operation through missions and
other initiatives in areas of business development such as SME
internationalisation.
UKTI stand ready to help organise
a visit to the UK from Brazil. Post are awaiting suggestions from
the Brazil Industry Department on possible themes, timing etc.
4. Encourage co-operation between: (a) the
Brazilian National Institute for Metrology and Industrial Quality
(INMETRO), and the UK National Physical Laboratory (NPL) and the
UK Accreditation Service (UKAS); and (b) the Brazilian National
Institute for Industrial Property (INPI) and the UK Patents Office.
NPL, UKAS and UKPO. UKAS and UKPO
are very keen on working with the Brazilians and would welcome
an inward visit as a first step. Awaiting suggestions from the
respective Brazilian bodies.
5. Support a Brazilian mission to the UK during
the first half of 2007 focused on technical aspects of the services
sector.
Inward visit by the Brazilian Ministry
of Trade is planned for April 2007 to look at technical aspects
of the services sector such as statistical measurement.
6. Further co-operation in science and innovation,
particularly in the bioscience and nanotechnology sectors and
during the year of science.
Full programme of events in place
for the year of science. Sir David King is attending the opening
ceremony in Brazil on 30 March.
7. Establish partnerships in investment and
trade in renewable energies, particularly ethanol.
Terms of Reference agreed for the
UK-Brazil-Southern Africa bioethanol partnership and first meetings
held in December.
8. Support the negotiations between Brazilian
and British institutions for a joint project in the electronic
sector particularly on electronic displays.
Negotiations concluded and contract
awaiting signature for the Cambridge Display Technologies.
9. Promote co-operation on strategic sectors
specifically: aerospace and aviation; financial services; and
healthcare.
Aeropace
The four companies that participated
in the 2005 mission to Brazil are all developing business in Brazil
as a result.
UKTI Sector Group commissioned an
in depth report on the aerospace industry in Brazil.
This report showed that the industry
welcomes the JETCO and wants it to focus on addressing barriers
and highlighting the difficulties of getting into Embraer's supply
chain.
A UK-Brazil working group is therefore
being set up under JETCO to focus on these issues. Industry has
welcomed this.
The first UK-Brazil Working Group
meeting is expected to take place later this year. It will be
made up of UK and Brazil public and private sector.
Financial Services
10. Support the ratification of the Brazil-UK
Agreement on the taxation of Air Transport and Shipping.
Brazilian Minister Furlan will write
to relevant authorities in Brasilia to expedite the ratification
of the Agreement on the taxation of Air Transport and Shipping.
11. Examine IPR issues under government leadership,
with a view to increasing co-operation including promoting innovation
and transfer of technology initiatives in order to reach adequate
level of protection of intellectual property rights.
British Embassy, Brasilia has submitted
a bid under the Global Opportunities fund to UKPO experts to visit
Brazil to deliver two-weeks of IPR training to Brazilian patent
examiners in the fields of: Biology/Microbiology, Chemistry and
Pharmaceuticals; and Electronics, Telecommunications, Physics,
Electricity, Metallurgy, Agriculture, Forestry.
12. Increase UKTI resources in Brazil and
the UK in recognition of the importance of Brazil as a trading
partner.
Three new UK based staff will be
added to the UKTI complement in Brazil bringing the total number
of UK based staff up to approximately 5.5. Furthermore an extra
local member of staff will be added to the team bringing the total
of Local UKTI staff up to approximately 30.5.
13. Support the ratification of the existing
Investment Promotion and Protection Agreement and the agreement
of a comprehensive Double Taxation Agreement.
UKTI have met with HM Revenue &
Customs policy adviser who has undertaken to visit Brazil in Spring
2007 to take forward technical level exchanges on the Double Taxation
Agreement.
A Brazilian Working group has been
established to look at all of Brazil's pending Investment Promotion
Protection Agreements.
14. Promote joint ventures between UK and
Brazilian professional services firms in their respective areas
to develop the market.
A series of joint events is planned
to promote professional services during the Lord Mayor's visit
to Brazil in August. Possibly followed by a mission to the UK
to coincide with the JETCO Ministerial in London in September.
15. Promote a seminar on Doing Business in
Brazil to be held in London during the first half of 2007.
Proposals to stage a "Doing
Business in Brazil" event to coincide with the JETCO Ministerial
in September, to include workshops on relevant sectors.
BPROGRESS ON JETCO (INCLUDING FORTHCOMING
EVENTS)
(See also the note on the three specific sectors
covered under the JETCO)
We have a good story to tell on JETCO.
It is a unique forum for public and private sectors to focus on
identifying opportunities, not problems. It is well regarded by
all.
We are currently finalising an ambitious
programme of activities to raise the profile of Brazil's potential
with British business. Activities include: sponsored missions;
technical-level exchanges including on key issues such as Public
Private Partnerships and Intellectual Property Rights; and themed
seminars on "Doing Business".
JETCO is also being used to develop
relationships between key business organisations such as the CBI
and Brazilian Business representational bodies.
UK and Brazilian teams are working
well together to address the 15 recommendations from the first
JETCO. Initial deliveries, successes or plans so far are:
good relationships established and
regular meetings are taking place between UK and Brazilian officials
to exchange information and discuss progress;
collaboration on events such as:
Brazilian Chamber Lunch for the Foreign Secretary; Brazil Trade
and Investment Conference in London attended by Andrew Cahn. A
sharing of events calendars and strategies on relevant JETCO sectors,
encouraging greater cooperation and participation;
full support for the JETCO process
from UK Patent Office, UK Accreditation Service, National Physical
Laboratory and the Civil Aviation Authority to cooperate with
their Brazilian counterparts and undertake bilateral visits and
missions;
inward visit by the Brazilian Ministry
of Trade (April 2007) to look at technical aspects of the services
sector such as statistical measurement;
full programme of events in Brazil
in place for the year of science: Sir David King is attending
the opening ceremony on 30 March; the Duke of York will be launching
a design show case event in Brazil in April; and the Lord Mayor
will open an event on human life in September;
Terms of Reference agreed for the
UK-Brazil-Southern Africa bioethanol partnership and first meetings
held in December. The Taskforce has agreed to focus initially
on assisting the implementation of Mozambique's national biofuels
strategy and policy;
negotiations concluded and contract
awaiting signature for the Cambridge Display Technologies;
progress on the three sectors highlighted
in JETCO for cooperation: Aerospace, Financial Services and Healthcare;
we are working closely with the Brazilian
government to ensure that the Air Services Agreement is ratified
quickly, but this process has been delayed because of the elections
in Brazil;
British Embassy, Brasilia has submitted
a bid under the Global Opportunities Fund to support a visit by
UK Patent Office experts to Brazil to deliver two-weeks of Intellectual
Property Rights training to Brazilian patent examiners in the
fields of: Biology/Microbiology, Chemistry and Pharmaceuticals;
and Electronics, Telecommunications, Physics, Electricity, Metallurgy,
Agriculture, Forestry;
senior policy adviser from HM Revenue
and Customs visiting Brazil Spring 2007 to take forward technical
level exchanges on the Double Taxation Agreement;
a Brazilian Working group has been
established to look at all of Brazil's pending Investment Protection
and Promotion Agreements (IPPAs);
a series of joint events planned
to promote professional services during the Lord Mayor's visit
to Brazil in August. Possibly followed by a mission to the UK
to coincide with the JETCO Ministerial in London in September;
and
proposals to stage a "Doing
Business in Brazil" event to coincide with the JETCO Ministerial
in September, to include workshops on relevant sectors.
CUPDATE ON JETCO STOCKTAKE
The JETCO six monthly stocktake meeting took
place in Sao Paulo, Brazil on Tuesday 13 March. It was attended
by about half a dozen officials on each side from Brazil and the
UK, including two from UKTI in London, as well as about 20 representatives
of the business community in Brazil. The British Chamber of Commerce
in Brazil, CNI (the Brazilian equivalent of CBI) and FIESP (the
business representative body covering Sao Paulo state) were all
represented.
The main focus of the meeting was discussing
progress on the 15 JETCO recommendations with officials providing
updates and business representatives making suggestions for further
progress. Although there were many ideas, there was little consensus
from business. Most of the discussion centred around the possibility
of setting up working groups on particular sectors or issues and
about the content and format of the "Doing Business in Brazil"
seminar which the Brazilians will be organising in London this
year (recommendation 15). It has since been decided that this
event will be organised by the Brazilian Embassy in London to
coincide with the Brazilian Chamber of Commerce Gala Dinner which
is taking place on 16 May 2007.
It was recognised that the elections in Brazil
and changes in the Brazilian Government since September had hindered
progress on some fronts. (The Trade and Industry Minister was
finally appointed last Friday, 23 March.)
In addition to this meeting, UK officials met
separately with officials from ABDI (the Brazilian Agency for
Industrial Development) and agreed on a number of further actions
to make progress on the JETCO recommendations. In particular it
was agreed that more needed to be done on both sides to raise
the profile of Brazil in the UK and the opportunities in the market
and also to raise the profile of the UK in Brazil. This fits well
with the work which UKTI will be doing following the identification
of Brazil as an emerging market in UKTI's strategy.
DJETCO SECTOR PRIORITIES (Aerospace, Financial
Services and Healthcare)
AEROSPACE
Jetco
UKTI Sector Group commissioned an
in depth report on the aerospace industry in Brazil.
This report showed that the industry
welcomes the JETCO and wants it to focus on addressing barriers
and highlighting the difficulties of getting into Embraer's supply
chain.
The report also recommended that
a UK-Brazil working group should be set up under JETCO to focus
on addressing barriers to trade between Brazil and the UK, including
tariff and non-tariff barriers and initiatives to promote trade,
interchange and cooperation.
This working group is now being set
up and the first meeting is expected to take place later this
year. It will be made up of UK and Brazil public and private sector.
General
UK companies do have a presence in
the aerospace sector in Brazil.
For example, Rolls-Royce has been
doing business in Brazil since the early 1950s and operates in
four sectors there: civil aviation, defence, marine and energy.
It has an HQ in Rio de Janeiro and employs around 400 people in
the region. Its principal companies include Embraer, Petrobras,
TAM, LAN, Varig, Brazilian Air Force and the Southern Cone Navies.
We also know that at least three
UK SMEs who have done business in Brazil recently: Senior Aerospace,
TWI and Aeromet.
The four companies that participated
in the 2005 mission to Brazil are all developing business in Brazil
as a result.
However, history has suggested that
trading in the market is difficult with regard to the sale of
capital equipment and tax regimes.
Local representation is necessary
for UK companies to fully enter this market. This poses a barrier
to those wishing to access the market for the first time, especially
since this is not required in other emerging markets.
Some British companies have tried
to do business in Brazil but with no success have moved on to
try other, easier markets. I understand that my officials have
already supplied a list of these companies to the Committee.
Brazil largely dominated by Embraer
which has a well established supply chain. It costs more to break
into a supply chain than to be involved in the development of
new ones (eg India).
Embraer is primarily focused on supporting
inward investment in Brazil rather than dealing with companies
who just want to supply products or services.
There are not major incentives (eg
tax breaks) in place in this sector from the Brazilian Government
as there are in other markets. For example Mexico and the United
States both offer tax incentives to British companies doing business
in this sector.
Companies from other European countries
already have big contracts in Brazil in the aerospace sector.
This gives them leverage and makes it easier for them to win new
contracts than it is for UK companies.
Leading aerospace companies from
both France and Germany have historically had a shareholding stake
in Embraer. This has facilitated their participation in the supply
chain. Understand that EADS has recently sold its stake though
and that Dassault Aviation of France has also reduced its stake.
For military aviation, local companies
are the key players in line with Brazilian Government policy.
FINANCIAL SERVICES
UKTI is looking at how to engage
with emerging markets in the financial services sector. Initial
priorities are focused on China, India, the Gulf and Russia but
the sector team is also looking at other markets long term. These
priorities are based on extensive stakeholder consultations for
the development of the Financial Services strategy.
UKTI's Financial Services Sector
Advisory board met last week and discussed a paper on South America.
The board thought that the UK had lost out to the US in South
America over the last 20 years, but that now would be a good time
to re-engage the continent. They agreed that UKTI should engage
actively with Brazil on financial services, and that it would
serve as a useful pilot for the rest of the region.
The board also noted that Government
could add most value on helping to remove trade barriers and promoting
good regulation, but in some countries with more open policies
(eg Chile) business does not need Government support to exploit
the opportunities.
There are significant developments
in the financial services environment with a clear interest from
UK and Brazilian officials in improving and strengthening existing
relationships.
There is particular potential and
progress in the area of Public Private Partnerships, PPPs, including
a number of seminars and visits. After the first sponsored group
attended the Partnerships UK masterclass on PPPs, Brazilian officials
from both the federal and state governments have become the largest
group attending the training in the last three years.
The federal government is finalising
details for World Bank funding to offer a PPP advisory contract
to a UK companythe first contract of this type in PPP services.
The Lord Mayor of the City of London
will be visiting Brazil in August 2007. Other activity includes:
In the area of legal services a joint
seminar is being organised with the Brazilian Advocates Organisation
on Intellectual Property Rights and patent protection.
Events linked to the Lord Mayor of
the City of London's visit.
Possible support from UKTI for the
London Stock Exchange's follow up to their September 2006 visit.
Financial services briefing has been
provided to UKTI teams in Brazil.
The Brazilian Ambassador has offered
to host a business lunch for the Lord Mayor on Wednesday 14 March.
The Brazilian Finance Minister called
on the Lord Mayor at the end of January.
Carbon credits
Brazil is a leading market in carbon
credit and the UK has a unique network of specialists in financing,
project development and technology for clean development mechanism.
Internationally renowned UK companies
in the carbon sector are present and active in Brazil, providing
a whole range of advisory services for all stages of the project
cycle. UK engagement has strengthened with the visit of the Climate
Change Projects Office last year to improve links with public
and private sector contacts. A further visit by the Climate Change
Projects Office is scheduled for this year.
Legal services
Linklaters in Brazil has been contracted
as the legal advisor for the first federal PPP project. Other
UK firms also have potential to offer advisory services in co-operation
with Brazilian firms for federal and state PPP projects.
There has been a very successful
co-operation with the Brazilian Bar Association which included
a Young Lawyers Exchange Programme.
Also scope for further engagement
in the areas of Human Rights, Governance and Intellectual Property
Rights.
Insurance/Reinsurance
The reinsurance monopoly in Brazil
ended in January 2007 as a result of new legislation. There are
now prospects for business for UK companies and Brazilian officials
will be attending Lloyd's international regulators conference
in May 2007.
London Stock Exchange
In the past 12 months the International
Business Development team at London Stock Exchange has seen an
increase in the number of enquiries coming from investment banks,
law firms and Brazilian corporations interested in learning more
about the Alternative Investment Market (AIM) at the London Stock
Exchange.
In addition, Infinity Bio Energy
is in the process of becoming the first Brazilian company to be
listed on AIM.
The London Stock Exchange had a fact-finding
visit to Brazil in September 2006 which allowed them to learn
more about the dynamics of the market, make relevant contacts
and understand how the decision making process for listing abroad
operates. The team was impressed by the vitality of the markets
and prospects for business identified during their visit.
As a clear sign of the perceived
value of the potential business prospects, London Stock Exchange
is visiting Brazil again this March.
The Lord Mayor will also be returning
to Brazil in the Autumn.
HEALTHCARE
Healthcare continues to be a UKTI
priority in Brazil and a full programme of events has been approved
for 2007-08. UKTI is looking at how the JETCO can be used to address
trade barrier issues with the Brazilian Government such as new
rules for registration of medical devices and diagnostic products.
Healthcare was specifically included
in the JETCO recommendations to support the potential of the Bio
Products Laboratory technology transfer project.
The Bio Products Laboratory, which
is an operating division of the NHS Blood and Transplant Authority,
has supplied several blood products to Brazil for the past ten
years and believes it is was well placed to secure a negotiated
agreement directly with the Ministry of Health.
On the advice of our Ambassador in
Brasilia, a Memorandum of Understanding (MOU) in healthcare was
signed on 8 March 2006 to enhance the potential. Despite this
MOU and continuing support from the Ambassador and the Department
of Health, negotiations are going very slowly on the project/tender.
The elections and change in the Brazilian Administration have
had a particular effect as a new Health Minister has yet to be
appointed.
EUK-BRAZIL MOU IN THE ENERGY SECTOR
MEMORANDUM OF UNDERSTANDING BETWEEN THE DEPARTMENT
OF TRADE AND INDUSTRY OF THE UNITED KINGDOM OF GREAT BRITAIN AND
NORTHERN IRELAND AND THE MINISTRY OF MINES AND ENERGY OF
THE FEDERATIVE REPUBLIC OF BRAZIL FOR THE
ESTABLISHMENT OF A CONSULTATIVE MECHANISM FOR CO-OPERATION IN
THE FIELD OF ENERGY
The Ministry of Mines and Energy of the
Federative Republic of Brazil
and
The Department of Trade and Industry of
the United Kingdom of Great Britain and Northern Ireland (hereinafter
referred to as "the Participants"),
Bearing in mind the importance for both Participants
of developing diversified and sustainable sources of energy to
guarantee social and economic development;
Desirous to exchange ideas and information on energy
issues relevant to both Participants,
Have reached the following understanding:
1. The Participants will set up a formal,
regular and productive mechanism ("the Consultative Mechanism")
to exchange views and information on energy issues and to identify
areas of mutual interest for co-operation. These issues and areas
may include:
(a) Efficient and advanced energy technology;
(b) Renewable energy technologies, including
biodiesel and biomass;
(c) Research in alternative fuels, academic development
and the enhanced training of personnel;
(d) Environmental conservation;
(e) Information, planning and regulation, especially
in the modernisation of energy systems and security of offshore
energy infrastructures; and
(f) Energy policies, trade and investment.
2. Other areas of co-operation may be included
if jointly approved.
3. Each Participant may take the initiative to
request a meeting of the Consultative Mechanism. The level of
representation at a meeting will be jointly approved beforehand.
4. To facilitate the exchange of views and information,
each Participant will designate a Focal Point who will be responsible
for the preparation of the meetings of the Consultative Mechanism
held in his country.
5. The host Focal Point will propose to his counterpart,
through diplomatic channels, a draft agenda for the forthcoming
meeting. All other communications regarding the agenda will also
be conducted through diplomatic channels. It is understood that,
so as to make full use of the meetings of the Consultative Mechanism,
an agenda will be jointly approved at least two weeks prior to
a scheduled meeting.
6. During the consultation meetings, the Participants
may examine and approve projects of co-operation in jointly approved
areas. The method of work, the financial implications and the
expected results of each co-operation project will be defined
in a separate instrument for that project. Each such initiative
will be managed actively, according to jointly approved performance
measures and objectives.
7. The Participants understand that this Memorandum
of Understanding and the Consultative Mechanism which it creates
do not create legally binding obligations between them.
8. Changes to this Memorandum of Understanding
may be proposed in writing at any time. The Ministry of Mines
and Energy of the Federative Republic of Brazil or the Department
of Trade and Industry of the United Kingdom of Great Britain and
Northern Ireland can terminate this Memorandum at any time by
providing written notice of at least thirty days to the other
Government. Ongoing projects will not be affected by a decision
to terminate this Memorandum of Understanding.
9. Co-operation under this MoU is expected to
commence upon signature by both Participants.
Signed in Brasilia on 1 February 2006, in
the Portuguese and the English languages, both texts being equally
valid.
FUK-BRAZIL MOU IN THE HEALTHCARE SECTOR
MEMORANDUM OF UNDERSTANDING BETWEEN THE GOVERNMENT
OF THE FEDERATIVE REPUBLIC OF BRAZIL AND THE GOVERNMENT OF THE
UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND FOR COLLABORATION
IN THE FIELD OF HEALTH BETWEEN THE DEPARTMENT OF HEALTH, ENGLAND
AND THE BRAZILIAN MINISTRY OF HEALTH
The Government of the Federative Republic
of Brazil and the Government of the United Kingdom of Great Britain
and Northern Ireland (hereinafter referred to as "the Participants")
Bearing in mind the advantages for both Participants
of joint collaboration in the field of health, between the Department
of Health, England and the Brazilian Ministry of Health, particularly
in the area of blood and blood safety;
decide:
Paragraph 1
(a) To exchange information on the development
of health systems and associated technologies where this may be
of mutual benefit;
(b) To keep under review the scope for visits
by, and interchange of, health professionals in order to better
understand developments in each other's countries and to underpin
the achievement of high professional standards;
(c) Where appropriate, to encourage research
and development activities that facilitate the identification
and application of best practice systems of quality assurance
and regulation;
(d) To study ways of collaborating in other health
areas.
Paragraph 2
Given the existing close cooperation between the
Participants in this area, they have decided that collaborative
activity in the area of blood products will be taken forward under
the provisions of this Memorandum.
Paragraph 3
To facilitate the collaborative activities approved,
each Participant will designate a Focal Point who will organise
such meetings and exchanges between the Participants as may be
necessary.
Paragraph 4
In accordance with the laws and regulations of the
respective countries and with relevant international agreements
to which Brazil and the United Kingdom are or may become parties,
the Participants will ensure the adequate and effective protection
and fair distribution of intellectual property rights or other
rights of a proprietary nature resulting from cooperative activities
conducted under the provisions of this Memorandum. The Participants
ill consult one another for this purpose as necessary.
Paragraph 5
This Memorandum of Understanding is not intended
to confer legal rights or obligations or to impose commercial
responsibilities or obligations on either Participant. Each Participant
will meet their own costs relating to the application of this
arrangement. In respect of the United Kingdom, this Memorandum
of Understanding only applies to the Department of Health, England.
Paragraph 6
Each Participant will notify the other of the completion
of any formalities required for this Memorandum of Understanding
to come into effect. This Memorandum will come into effect on
the date of the later Government notification and will continue
in effect for a period of five years unless terminated by either
Government on giving six calendar months' written notice via diplomatic
channels. Existing collaborative projects will not be affected
by a decision to terminate this Memorandum
Paragraph 7
The foregoing record represents the understandings
reached between the Government of the United Kingdom of Great
Britain and Northern Ireland and the Government of the Federative
Republic of Brazil upon the matters referred to therein.
Signed in duplicate at London on the seventh
of March 2006, in the Portuguese and English languages, both texts
having equal validity.
FOR THE GOVERNMENT OF THE FEDERATIVE REPUBLIC
OF BRAZIL
| FOR THE GOVERNMENT OF THE
UNITED KINGDOM OF GREAT
BRITAIN AND NORTHERN
IRELAND
|
|