APPENDIX 27 (continued)
HUKTI BRAZIL STUDY
REPORT FROM FIFERCONSULTANTS ON RECENT DEVELOPMENTS
IN THE BRAZILIAN AEROSPACE MARKET
INTRODUCTION
As a result of recent discussions between the
UK and Brazilian Governments, consideration is being given to
the formation of a Joint Economic and Trade Committee (JETCO)
Aerospace Working Group.
The UK Trade & Investment Aerospace Sector
Team has commissioned Fifer Consultants to undertake a short study
to assist in assessing the potential value of such a working group.
The study provides a review of changes in the
Brazilian aerospace market which have taken place since the UKTI
seminars and mission to Brazil in 2005, together with an assessment
of UK industry's current views on the market and resulting conclusions
and recommendations.
CONTENTS
1. Development of Brazilian Government Initiatives
for the Aerospace Industry
2. Industry Developments in Brazil
3. Brazil Missioners Progress
4. Views of Key UK Companies
5. UK Industry DevelopmentsViews
on the Brazilian Market and Proposed Working Group
6. Conclusions and Recommendations
1. DEVELOPMENT
OF BRAZILIAN
GOVERNMENT INITIATIVES
FOR THE
AEROSPACE INDUSTRY
Since the UKTI/SBAC mission to Brazil in October
2005, there has been significant progress in the development of
Brazilian Government initiatives for the aerospace industry.
A memorandum of understanding was signed on
20 June 2006 between the newly created Brazilian Civil Aviation
Authority (ANAC), the National Economic and Social Development
Bank (BNDES), the Brazilian Aerospace Industries Association (AIAB)
and Embraer, instigating activity in two phases to develop measures
assist and improve the aerospace supply chain.
Phase 1
(a) Mapping of the Brazilian industry, its
current capabilities and deficiencies and identification of capabilities
and investment required to meet Embraer's future supply chain
needs.
(b) Identification of Embraer risk sharing
partners and suppliers who are intending to establish facilities
in Brazil to supply Embraer and the wider Brazilian and global
markets.
(c) Achievement of a deeper understanding
of the issues of technical development and taxes and tariffs facing
the industry, particularly in relation to import and export tariffs,
together with policies on offset arrangements for government purchases.
Formulation of alternatives to overcome tax and tariff barriers.
Phase 2
(a) Study of commercial relationships in
the supply chain to structure possible new BNDES support mechanisms,
with the possible involvement of the capital markets and Embraer.
(b) Proposal of minimum standards of management
and organisational structure for companies to qualify for any
eventual support programme.
Four working groups have been formed from representatives
of the signatories to address the issues.
GT-1: Programme Coordination
GT-2: Aircraft Industry Supply Chain
GT-4: Financial Solutions
The working groups are meeting regularly with
a view to submitting their findings to government early next year.
In essence it would appear that the initiatives
instigated by BNDES and described at the UK seminars in 2005 are
now taking shape under a more formalised structure which includes
the newly formed independent Civil Aviation Authority (formerly
part of the Ministry of Defence).
Whilst the primary aim of the initiative is
to improve the supply chain in Brazil, the work to identify capability
gaps will assist in identifying areas of opportunity for UK companies,
albeit that the drive is to develop technically capable and financially
viable organisations based in Brazil. The support mechanisms being
developed will be open to both Brazilian and foreign owned enterprises.
It is encouraging to note that taxes and tariffs
as they relate to the aerospace industry are to be addressed,
as this issue is one of the major perceived barriers quoted by
the UK industry as a reason for not entering the Brazilian market.
2. INDUSTRY DEVELOPMENTS
IN BRAZIL
Embraer reports increased demand for its products,
and growth in the backlog of orders. This relates particularly
to the 70-115 seat E170, E175, E190 and E195 family of aircraft.
Embraer's order backlog for these aircraft stands at 414 aircraft
compared with Bombardier's backlog of 81 CRJ regional jets. In
the words of one industry commentator "Embraer controls the
market". The UK low cost carrier Flybe is launch customer
for the E195.
Market economics have drastically reduced orders
for 40-50 seat regional jets and a resurgence of turboprop aircraft
in this sector. As a consequence, Embraer has virtually ceased
production of the ERJ135/145 family in Brazil, with the exception
of airframes for the successful Legacy executive aircraft. The
ERJ145 continues to be assembled from imported components by Embraer's
Chinese JV for the local market. Existing ERJ135/145s appear to
be enjoying good utilisation with only 8 idle aircraft in storage
compared to 100 Bombardier CRJ 100/200s.
Embraer has continued to develop its product
base to reduce dependency on its traditional regional aircraft
market. The decision to move into business jets with the new Phenom
100, Phenom 300 and Linneage aircraft appears to have been successful
with healthy demand for these types. This demonstrates again Embraer's
knack of getting the right product to market at the right time.
It remains Embraer's aim to be the leading business jet manufacturer
by 2015, with a spectrum of products ranging from VLJs (very light
jets) to large intercontinental executive aircraft.
Unconfirmed industry reports suggest that Embraer
is also studying the development of a turbofan powered C-130 sized
tactical transport aircraft, together with other military/utility
studies, to further diversify its portfolio.
Embraer has confirmed the need to strengthen
its supply chain to meet the demands of current and new programmes
and that this process always results in opportunities for new
suppliers and subcontractors. It currently has demands for technologies
including; composites, 5 axis machining of large parts (17 metres
and over), replacement processes for chemical milling and sheet
metal structures. From Embraer's perspective the BNDES/ANAC/AIAB/Embraer
initiatives have yet to define which supply chain links will have
to be strengthened, but the list will include all of those mentioned
plus others.
3. BRAZIL MISSIONERS
PROGRESS
Four UK companies participated in the UKTI/SBAC
mission to Brazil in October 2005; Aeromet International plc,
Attewell Ltd., Delcam plc and TWI Ltd. All of the companies who
participated have since developed or are developing business,
demonstrating that opportunity exists in Brazil.
Aeromet report that they are confident
of securing an order from Embraer for castings valued at approximately
£250K. Aeromet's Sales Director has recently visited Brazil
and has launched some research through the British Consulate's
aerospace team on further business opportunities.
Attewell received an enquiry from Embraer
for 620 different components and responded with a bid. They received
very positive feedback indicating that they were the most competitive
bidder. Embraer also wished them to quote for further parts for
new models. Attewell report some frustration in dealing with Embraer,
due possibly to high workload in the customers purchasing team,
and contemplated appointing a Brazilian agent. Embraer has expressed
a preference for dealing directly with the company, and Attewell
continue to work hard to push the project to a final conclusion.
Attewell have a positive view on the outcomes
of the mission and have indicated that they would not have had
the opportunity to bid had they not participated. Embraer's perceived
policy of not offering long term supply contracts has led them
to conclude that it would not make commercial sense to set up
in Brazil at this time to support the level of business currently
on offer.
Delcam have not yet secured contracts
in Brazil but they report positively on the outcomes of the mission.
They have signed up a distributor who is planning
to set up an office in Sao Jose dos Campos, close to Embraer,
and are visiting the market again in November 2006. They will
meet with Paul Smith to discuss ideas on improving market penetration.
Delcam also put forward the view that 2006 was
a relatively quiet year in Brazil as many people were awaiting
the outcome of the Presidential elections, postponing investment
decisions until 2007.
TWI report that they have finished a contract
for Embraer in September, worth approximately £30K, won as
a result of the mission. A further proposal worth £17K was
declined at the last moment due to budget reallocation. Embraer
visited TWI twice in 2006 and are in discussion on three proposals
for work in 2007 worth approximately £70K.
TWI has established a presence in Brazil and
is discussing work with BNDES on the supply chain improvement
programme. They are also pursuing work in Brazil in other sectors
including oil and gas.
TWI also reports delays in Brazilian customs,
and import tariff problems when shipping goods to Embraer. They
are raising this with Brazilian Government contacts met during
the mission.
Those contacted would welcome the creation of
a JETCO Aerospace Working Group if it were able to address issues
which impede the progress of their business in Brazil including
import and export tariffs and customs delays. It was also seen
as valuable to bring to the Brazilian Government's attention issues
having a negative effect on supply chain development including,
for example, Embraer's apparent unwillingness to enter into long
term supply contracts.
4. VIEWS OF
KEY UK COMPANIES
Views on the Brazilian market and on the possible
establishment of a JETCO Aerospace Working Group were sought from
four key UK companies; Airbus UK, BAE Systems, GKN and Rolls Royce.
Airbus UK has no significant links to
Brazil from an industrial perspective, although there is a shareholder
link to Embraer through EADS. Airbus is in the process of shrinking
the number of its direct suppliers, although this does not preclude
more industrial links to countries like Brazil if it facilitates
market access.
Brazil's second airline TAM is a significant
target and key customer (largest in South America) and announced
another major Airbus order last week. As TAM is also a potential
customer for the new A350, Airbus is keen to maintain close relations.
Airbus UK would view the formation of a JETCO
Aerospace Working Group positively and would consider participation.
If it builds relations for them and increases market access for
Airbus and particularly for their UK supply base, thereby strengthening
their suppliers, this would be seen as of added value.
Airbus UK would also be interested in becoming
involved in any joint research programmes which might result from
the activities of an aerospace working group.
BAE Systems' principal aerospace interest
in Brazil is on hold due to the suspension of the FX new fighter
aircraft programme. The company's main efforts are currently concentrated
on land systems opportunities. A BAE Systems marketing subsidiary
is retained in Brazil and the company maintains a watching brief
on developments in the aerospace sector.
BAE Systems sees the formation of an aerospace
working group as potentially beneficial, particularly if it also
considers issues outside of the main industrial manufacturing
framework. Such issues could include; joint research and development,
new technologies and emerging sectors including, for example,
UAVs.
GKN holds a positive view of Brazil through
its ownership of a subsidiary company manufacturing transparencies
for the aerospace sector and its involvement in the Brazilian
automotive sector, where it is a major employer.
The company reports a good relationship with
Embraer and an interest in greater involvement with Embraer programmes.
Further expansion for GKN in the Brazilian aerospace sector would
depend on the development of new programme based business.
GKN also see value in the creation of a JETCO
working group to address aerospace sector issues at a government
level and would consider participation.
Rolls Royce. At the time of writing no
feedback had been received from the company. Rolls Royce has,
however, been present in Brazil since the late 1950s with a local
subsidiary. It is also the engine supplier for the Embraer ERJ135/145
family of aircraft through its US subsidiary and has significant
Brazilian market penetration in the power generation and marine
propulsion sectors.
5. UK INDUSTRY
DEVELOPMENTSVIEWS
ON THE
BRAZILIAN MARKET
AND PROPOSED
WORKING GROUP
Views were sought from trade associations, including
the SBAC, the DMA and the regional aerospace alliances as representatives
of industry. The devolved administrations in Scotland, Wales and
Northern Ireland and the UKTI international trade advisers with
aerospace responsibility based in the regions were also consulted.
The SBAC has consulted its Market Development
Board, but at the time of writing a consolidated view was not
available. There are no current plans for SBAC activity in the
Brazilian market and no SBAC presence is planned for the 2007
LAAD exhibition in Rio de Janiero.
As regards the proposed JETCO working group,
the SBAC believes forming such a body would be valuable if brings
benefit to UK industry, particularly in terms of trade development.
The SBAC would be interested in participating on behalf of industry
and believes this would fit in with its strategic role with UKTI.
The Defence Manufacturers Association (DMA)
signed an MOU with its Brazilian counterpart ABIMDE in June 2006
to promote cooperation in support of mutual objectives. These
include; collaboration on regulatory issues, reciprocal free local
advice and assistance to their respective memberships and the
organisation of industry conferences and other events. The proposal
for a JETCO working group is supported by the DMA as a means to
generate UK interest and confidence in the Brazilian market.
A broad spectrum of inputs and views were obtained
from the regional interlocutors consulted which compliment the
views discussed in earlier sections of the report. These are summarised
below.
Brazilian Market
None of the regions have any planned
activity for the aerospace sector in Brazilonly some generic
trade missions are planned.
There has been little activity at
SME level in the market.
Some larger companies have had success
including Dunlop with the braking systems for the Embraer business
jets.
Whilst Brazil is recognised as an
important developing market, companies are tending to prefer traditional
European and North American markets and to consider other new
markets including Japan, India and China.
Embraer is seen as a major player
with supply opportunities for new programmes, but UK companies
do not see a clear route to engaging with its Tier 1 supply chain.
Some companies believe that the only
route into Embraer is through establishing in Brazil, presenting
a perceived barrier to entry.
Some of those consulted believe that
market initiatives have concentrated on manufacturing and that
other areas including MRO, equipment and system supply and higher
value added aspects of the market could present more potential.
JETCO Aerospace Working Group
There was qualified support from
virtually all those consulted for the UK Government to engage
in an aerospace working group with the Brazilian Government.
It was generally seen as a national
activity rather than one in which the regions would participate
directly.
Setting up the working would provide
a catalyst for change and give more impetus to developing activity
between the two industries.
It would provide a forum to improve
conditions for market access for UK companies, including tariff
issues.
The working group would be of most
value if it considered not only manufacturing, but other higher
value and growth areas including; research and development, academic
links, joint space activity, UAV research, sustainability, home
land security applications for aerospace and MRO.
6. CONCLUSIONS
AND RECOMMENDATIONS
Conclusions
The recent re-election of the Brazilian
President should result in continued stability and growth, confirming
Brazil's status as a major developing world economy. The aerospace
industry in Brazil continues to grow with Embraer's success and
expansion of its product portfolio offering greater opportunity
for UK companies.
The supply chain to Embraer and its
Tier1 suppliers continues to be weak. Brazilian Government initiatives
for the aerospace industry have become more formalised and are
addressing issues which could be of potential benefit to UK companies
accessing the market. The coalescing of these initiatives in Brazil
should facilitate engagement with the Brazilian Government.
The UK industry's perception of and
interest in the Brazilian market has changed little since the
UKTI initiatives of 2005. There are no planned trade association
initiatives for Brazil.
Companies who have been exposed to
the market have generally been successful in securing business,
confirming that opportunity exists in Brazil. Potential higher
value and growth areas of the Brazilian market have been largely
unaddressed.
Recommendations
The UK Government should engage in
a JETCO Aerospace Working Group with the Brazilian Government
subject to agreeing a scope of work which will facilitate the
generation of business with Brazil for UK industry and institutions.
The Working Group should focus on
reducing barriers to trade between the UK and Brazilian markets,
including tariff and other non-tariff barriers, and on initiatives
to promote trade, interchange and cooperation in aerospace between
the two industries.
The Working Group should consider
not only manufacturing and supply, but wider issues including;
MRO, research and development, academic links, training, joint
space activity, sustainability, and growth areas including UAVs
and homeland security applications of aerospace technology. Inclusion
of these and other activities will provide the broadest scope
of opportunity for UK companies and institutions.
IUKTI SECTOR PRIORITIES
Sectoral market priorities are assessed
by UKTI on an annual basis. The process is coordinated by each
sector team with input from relevant Posts and other stakeholders.
Several factors are taken into account
including: size of opportunity; need for government support; match
between current and anticipated needs in the market against UK
capability strengths; and demand from industry.
UKTI's Sector Advisory Groups, made
up of business representatives with particular relevant areas
of expertise, play a key role in advising where resources might
be best targeted.
Against a background of reducing
resource, sector teams have been tasked to be more stringent with
priorities for their 2007-08 business plans. A maximum of five
priority markets will be selected to receive the majority of activity
in each sector, with a maximum of a further seven which will have
one key activity during the financial year. The markets in this
second tier are being called "Opportunity Markets".
Following these principles, the priority
sectors in Brazil for the financial year 2007-08 are:
Healthcare and life sciences.
Sports and leisure infrastructure.
The opportunity sectors in Brazil
for the financial year 2007-08 are:
The only priority sector in the other
Mercosur markets is Oil and Gas in Venezuela. This is the same
as for the current year.
Priority sectors for current financial
year (2006-07):
Education skills and leisure.
Sports and leisure infrastructure.
JUKTI ACTIVITY IN THE PRIORITY SECTORS IN
BRAZIL
AEROSPACE
UKTI organised a series of Seminars in the UK
in February 2005 to make UK companies aware of the changes to
the policies of the Brazilian government and how this might impact
on Embraer. Embraer, the Brazilian Government and BNDES took part
in seminars held in London and in Warrington. Over 50 UK companies
attended. UKTI followed up this with a mission into Brazilonly
four companies engaged in a programme which gave access to Embraer,
BNDES and introduced UK companies to indigenous companies already
in the Brazilian supply chain and European companies who had invested
in Brazil as a result of the localisation agenda of the Brazilian
government. The mission took place in October 2005. As a result
of the low take up to a very structured mission, the UKTI Aerospace
Sector Advisory Group re-prioritized Brazil from high to low priority
sector in Nov 2005.
The UKTI Aerospace Sector Team hold a watching
brief on developments in market and support initiatives by the
overseas team to introduce UK and Brazilian companies to one another
where reasonable opportunities arise. Four Brazilian companies
had UKTI sponsored visits to the UK in July 2006 for the Farnborough
Airshow. A programme of one to one meetings with UK companies
was arranged. The Aerospace Sector Team will, with support from
Post, monitor the level of business generated from these meetings.
As a direct result of JETCO, the UKTI Aerospace
Sector team commissioned an independent report on the Brazil Aerospace
sector. The study provided a review of changes in the Brazilian
aerospace market which have taken place since the UKTI seminars
and mission to Brazil in 2005, together with an assessment of
UK industry's current views on the market and resulting conclusions
and recommendations.
Consideration is now being given to the formation
of a JETCO Aerospace Working Group. The Working Group would focus
on reducing barriers to trade between the UK and Brazilian markets,
including tariff and other non-tariff barriers, and on initiatives
to promote trade, interchange and cooperation in aerospace between
the two countries.
AGRICULTURE
Some 70% of Brazil's landmass is suitable for
cultivation. Areas already in production account for 19% of the
world's arable land. An appropriate climate, plentiful water and
a largely flat topography give first class yield conditions, with
multiple harvests each year. The agricultural sector has for many
decades been the backbone of Brazil's economy. According to Brazil's
National Agriculture Confederation (CNA), agribusiness accounts
directly and indirectly for one third of Brazil's GDP and employs
37% of the Brazilian labour force. Brazil's agricultural production
is expected to continue to grow strongly over the next decade.
It is estimated that a further 124 million hectares could be developed
for agricultural use within the next 10 to 15 years.
Main opportunities are in the following sub-sectors:
biotechnology, food safety, traceability,
animal genetics, organic and GM production;
technology and market trends, precision
agriculture, remote sensing and precision machinery, post-harvest
technology;
bio-ethanol (mainly produced from
sugar-cane);
prawn and fish farming, aquaculture,
deep sea fishing and fishing vessels; and.
there is also demand for high-value-added
machinery to boost productivity and reduce wastage.
Latest activities in this sector include:
Inward MissionFoodex/Meatex
200619-22 March 2006Birmingham.
Outward Mission/Market Visit SupportInternational
Conference on Agriculture Products Traceability10-12 April
2006Brasilia. Support two British speakers at the event
and with commercial-oriented meetings in Brasilia.
Visit Agrishow 200619 May
2006Ribeirao Preto, Brazil.
Outward Mission/Market Visit Support19-23
June 2006São Paulo and Brasilia.
To assist one IATC staff member attending
Feicorte event in São Paulo (19-20 June 2006) and business
meetings in Brasilia (20-23 June 2006).
1 to 5 July 2006 Inward MissionRoyal
Show 2006, Coventry.
13-18 August 20068th World
Congress on Genetics Applied to Livestock Production (support
to British Breeders attending the event)/Visit to the State Federation
of Industries/ Attendance to the innauguration of the headquarters
of the State Swine AssociationState of Minas Gerais.
26 August to 3 September 2006Outward
Mission/Market Visit Support Expointer August 2006, Esteio/RS.
18-21 September 2006Attend
FENASUCRO 200614th International Trade Fair on the Sugar
and Ethanol sector.
8-12 October 2006 Inward Mission
Biotechnology Business Exchange + Seminar.
28-30 November 2006Outward
MissionIATC sponsored Seminar on Food Processing (UK Experience)
followed by visits to the Agronomic Centre of Campinas and to
the Ministry of Agriculture in Brasilia.
8 January 2007Visit to FINEP
Research and Project Financingnegotiations for a joint
workshop in Technology Transfer, Rio de Janeiro.
16 February 2007Visit to Curitiba,
capital of the State of Parana. Calls on IAPAR (Agronomic Institute
of the State of Parana), State Secretariat of Trade and Industry,
State Federation of Industries (FIEP).
3-10 March 2007Inward Mission3
Delegates from Brazil's Ministry of Agriculture, Livestock and
Food Supply plus 1 delegate from the Brazilian Agricultural Research
Corporation (Embrapa). Visits to DTI, Defra, UK Research Centres
and companies.
Aquaculture is the fastest growing form of intensive
agriculture worldwide. UK companies and Higher Education Institutions
(HEIs) continue to develop cutting-edge technologies and to be
at the forefront of R&D. Many are seeking export and outward
investment opportunities. Brazil has a young, high growth, aquaculture
industry but needs new technology and investment to sustain thissuch
as animal genetics, sustainable feeds and systems, fish-farm equipment/boats,
direct investments, R&D with HEIs.
Activity includes:
Attendance at Aquaciencia Congress, Brazil.
Inward Mission Oct-06 Aquaculture/Biotech to
main UK centres of excellence.
Participate in Biotech Seminars 11-13 October
in Cambridge.
Participation of two Brazilian companies Value
Added Seafood Seminar, London 4-5 October 2006.
Outward MissionSustainable Aquaculture
Seminar by March 2007.
AUTOMOTIVE
Brazil is the 10th largest producer of vehicles
in the world. There are 26 automotive manufacturers and with 471
autoparts manufacturers, 564 plants and 4,000 dealerships. The
whole chain employs 460,000 people. The Brazilian automotive industry
has 80% of market share in South America and represents 11% of
the Brazilian GDP. Production is currently around 22.5 million
units per year.
The Motorsport industry in Brazil has about
8,000 drivers in total from various categories (Rally, F-3, F-Renault,
StockCar, etc). This is a growing industry and therefore there
are potential opportunities to be developed with British companies.
We can highlight Rally and Stock Car categories as the most promising
ones in terms of potential business opportunities.
NICHE AREAS
Automotive: High tech equipment and
special components and raw material for OEMs and autoparts manufacturers.
Motorsport: Components and accessories
(seat belts, seats, fire extinguisher, electronic instrumentation,
telemetry), Joint Ventures with British racing teams (drivers'
enhancement, technology transfer, etc) as well as special components
and performance kits for the tuning sector, which is growing rapidly
in Brazil.
Construction: Construction equipment
used in the Heavy Construction, Oil & Gas and Mining industries.
Activities:
AUTOSPORT INTERNATIONAL 2006 Inward
Mission at the NEC, Birmingham, UK.
September 2006 Commercial Officer
Business Development Visit.
AUTOSPORT INTERNATIONAL 2007 Inward
Mission at the NEC, Birmingham, UK.
May 2007 Commercial Officer Business
Development Visit.
Scoping mission to be confirmed for
later 2007.
CONSTRUCTION
The civil construction chain accounts for more
than 15% of GDP in Brazil (US$ 600 billion approx. in 2004). Almost
4 million people are employed directly within the sector, and
it consumes raw materials worth more than £13 billion each
year. The forecast of investment for the construction equipment
segment is of approximately £45 billion from 2004 to 2007.
This amount represents 3.5% of the Brazilian GDP. The scenario
is very positive for the heavy construction segment since it is
closely linked to infrastructure. São Paulo and Minas Gerais
states have plans to contract their first projects under the new
PPP (Public-Private Partnerships) regulations in 2006 targeted
at transportation, energy and sanitation sectors.
Particular opportunities:
Industrial floorings (eg high chemical
resistance flooring used in food industry).
Waterproofing membranes (eg specially
used in tunnels and underground spaces).
Water-based varnishes and resins
for restoration projects.
New technologies such as plastics
and steel frame systems for low-cost housing.
Activities:
April 06 INTERBUILD inward mission
at the NEC, Birmingham, UK.
April 2006 Journalist to take part
at the Inward Mission to INTERBUILD.
October 2006 Outward mission to coincide
with NUTAU in São Paulo.
October 2006 UK speaker to NUTAU
in São Paulo.
CHEMICALS
The Brazilian Chemicals industry ranks 1st in
Latin America and 9th in the world, just behind the UK, and is
present in almost all the industrial chains and processes. The
chemical sector is responsible for 3.7% of the Brazilian GDP.
Imports of chemical products account for 20.8% of the country's
total imports.
There are business opportunities for UK companies
across the diverse Chemicals sector, but mainly in speciality
products, organic and inorganic chemicals, resins, paints, coatings
& inks and dyes & pigments.
Activities include:
16 May 2006 Chemicals Meet the Buyers
in Manchester.
25-29 September 2006 Chemicals Industry
Briefing Course.
15-18 May 2007 Interplas 07 Inward
Mission to NEC Birmingham.
EDUCATION AND
SKILLS
UK Trade & Investment sees substantial opportunities
in Brazil and Brazilian delegates are regularly brought to the
UK to attend major trade shows looking at ICT and other educational
products such as distance learning & postgraduate courses,
EFL (English as Foreign Language), vocational & training courses.
UK Trade & Investment is exploring links
between sports, education and social inclusion in Brazil and has
recently supported a UK presence at a Special Educational Needs
event in Brazil.
ENGINEERING
Brazil is the biggest machinery and equipment
manufacturing country in Latin America and the 10th largest in
the world. Brazilian industry is modernising itself constantly
and the engineering sector is a good example of such modernisation.
Brazil exports 40% of its production. The main buyers are currently
the United States, Argentina, Mexico, Germany and the UK. It includes
the whole range of production, from the simplest machines to complete
lines of production. Proof that the quality of Brazilian machines
is of world-class.
Activity:
There was one inward mission to the
PPMA Show (processing and packaging sector) in 2004. An inward
mission on manufacturing visited the UK between 5-9 March 2007.
UK Trade & Investment is supporting
an inward mission to the Total Processing & Packaging Show
on 15-16 May 2007.
A report on Brazil's Packaging Industry was
produced in 2005.
ENVIRONMENT
UKTI has for many years promoted Brazil as a
priority market for environmental goods and services. Investment
in the environment sector in Brazil is expected to grow at a faster
rate than previous years. This is, at least in part, due to an
increase in private sector investment, with companies moving to
new, more efficient and environmentally benign, technologies especially
in land remediation, water reuse, industrial effluent treatment,
air pollution control, solid waste management, energy from waste
and other sub sectors.
Over this time UKTI has pursued a programme
of inward and outward visits focusing on aspects of Waste Management,
Contaminated Land Remediation and other key areas of concern in
Brazil. UK companies have been involved in successful collaboration
in landfill gas and, associated with this, the Clean Development
Mechanism process.
FINANCIAL SERVICES
We have been active in promoting seminars, events,
round tables and a number of other activities focusing in assisting
UK companies in establishing good contacts with Brazilian counterparts
envisaging concrete business opportunities. Activities generated
by the UKTI team have contributed to positive outcomes in different
areas.
Law Society and OAB signed a friendship
agreement and launched a two way young lawyers exchange programme
(six month duration each round). The first round of the programme
with Brazilian lawyers in the UK has ended this year with a very
successful outcome.
KPMG was contracted by the Minas
Gerais government to assist on the modelling of the first PPP
project.
Linklaters was chosen by the Brazilian
government (BNDES + Planning Ministry) to provide legal assistance
on the first federal PPP pilot projects.
BNDES and the Planning Ministry have
expressed formal interest to have PUK on board as PPP consultant
for the federal pilot projects, after the end of a successful
three month "help desk" service sponsored by Embassy
and FCO Global Opportunities Fund (GOF). Brazilian government
considers the UK as the single most important source of information
in PPP.
Three Brazilian delegates attended
the two week PPP masterclass promoted by Partnerships UK (PUK)
in London, leading to a full PPP mission with states officials
that have expressed interest to learn from the UK experience.
The five day mission, to take place in October, is comprised of
five delegates from leading states in PPP in Brazil with particular
interest to create links with UK companies to provide them the
necessary assistance during the process of implementing the projects.
For the first time a Brazilian official
from the Treasury undertook a six month attachment scheme to PUK
in London to have a practical experience with PPP. Now back in
Brazil where her experience is highly valued and will generate
further benefits to UK companies in terms of providing specific
services as needed.
The Lord Mayor of the City of London will be
visiting Brazil in August 2007. The visit should serve to provide
useful leverage to meet long-term goals of further opening Brazilian
financial and services markets to UK companies, reinforcing on-going
lobbying by UK Ministers. In the short-term we would hope to develop
more strategic partnerships between Brazilian and British companies
and greater awareness in the UK of the opportunities on offer.
ICT
Total revenue of the IT, telecoms and electronics
industries in Brazil in 2005 was R$93.95 billion (US$23 billion),
growth of 8% adjusted for inflation. IT manufacturing represented
25% of the total. Brazil manufactures a large number of PCs, printers,
telephones and other hardware, mainly on assembly lines, especially
in the Free Trade Zone of Manaus and Sao Paulo State.
A relationship has been developed between UKTI,
the Science and Innovation section and Brazilian business-based
research and development foundation (CESAR) to explore areas for
co-operation, involving visits to the UK to meet both R&D
and business contacts. Other activities include:
Brazilian delegates participated
in the UKTI Inward mission and Business to Business event to Technology
World in May 2006.
Participation in the UKTI programme
supporting UK companies at Cebit, Germany in March 2006.
Co-operation with Global Watch on
research into the games software market in Brazil.
A telecoms mission for UK companies
visited the Futurecom telecoms exhibition in October 2006 as well
as meeting operators in São Paulo and Rio de Janeiro.
Inward games software mission visited
the UK in late 2006.
Inward mission of Brazilian software
companies visited the UK in early 2007.
Participation in a UKTI programme
of support to UK companies at 3GSM 2007 in Barcelona.
Ongoing co-operation with S&I
on CESAR initiative.
LIFESCIENCES
UKTI is undertaking a number of trade and investment
activities. In 2005 we sponsored a Biotechnology Scoping Mission
to Brazil. After spending almost three weeks and visiting five
cities, the researchers produced a very favourable report that
was the basis for our proposed activities in 2006-07.
Based on advice from our Ambassador in Brasilia,
a Memorandum of Understanding (MOU) in healthcare was signed on
8 March 2006. Despite this MOU, support from the Ambassador and
the Department of Health, negotiations on the project/tender between
The Bio Products Laboratory, which is an operating division of
the NHS Blood & Transport Authority, and the Ministry of Health
are going very slowly.
Brazilian companies participated in UKTI's Biotechnology
Business Exchange which took place in London in October. Companies
attended the partnering meeting and a Brazil Seminar in Cambridge,
sponsored by IATC.
Brazil SeminarInternational Agriculture
Technology Centre (IATC) organised a "Doing Business with
Brazil" seminar in Cambridge that had a biotech element to
it. The seminar informed UK companies about the many opportunities
in Brazil. We hope that this will raise UK companies' awareness
about Brazil.
Bio BrasilWe sponsored a Trade Mission
to Brazil in October. Companies attended Bio Brasil, the largest
biotechnology conference/trade show in Latin America and continued
their programme in São Paulo, with a series of visits to
companies in the region. Bio Products Laboratory was among the
guest speakers at the Bio Brazil Conference and at the IV Healthcare
Seminar organised by the British Chamber of Industry, in São
Paulo.
Brazil Telemedicine Project
A Medical Training Centre was launched in Macae
in January 2006, the first such training centre in Latin America.
The project was a good example of collaboration between the British
Consulate in Rio and the sector team in London. Contacts were
made during a healthcare mission to Rio and invitations were issued
to officials from Macae to visit the UK and meet relevant companies.
A programme of meetings and company visits in the UK was arranged
and very soon after the contract award was announced.
UK SME Success Story
In June 2005, a UK SME, Owen Mumford, participated
in a UKTI sponsored mission to Hospitilar, the largest healthcare
tradeshow in Latin America. As a result of this they partnered
with a Brazilian medical company and won their first order to
supply 90 million lancets to São Paulo state. This first
order was five times the volume they supply annually to the NHS
in the UK!
OIL AND
GAS
In order to assist UK companies access opportunities
and to counteract perceived weaknesses/barriers, UKT&I have
developed a four pillar strategy for UKT&I-led oil and gas
activity in Brazil:
1. Engage Brazilian government/industry on
barriers to trade.
2. Build awareness of UK capability among
Brazilian decision-makers/procuring organisations.
3. Understand opportunities and communicate
them to UK supply chain.
4. Deliver interventions to bring UK supply
chain and potential Brazilians buyers/partners together.
UKTI led activity in related to Brazil's Oil
and Gas sector and targeted on the four pillars of the strategy
are set out below. These activities have agreed with the UKT&I
International Oil & Gas Business Advisory Board and the Americas
Board mentor, and key partners in industry associations and government
(eg Scottish Development International, FCO):
|
Date | Activity
| Outcome | Objective
|
|
Ongoing | Distribution of Portuguese version of UK Capability brochure detailing UK expertise across broad range of sector needs.
| Over 5,000 brochures distributed to decision makers in government/industry.
| 1 |
Ongoing | UKT&I support for projects delivered at UK-Brazil Centre of Ocean Engineering in COPPE (subsea engineering department of key Brazilian University).
| UK-Brazil centre provides a focal point for joint cooperation on R&D + B2B exchange in subsea sector and in marketing UK capability.
| 2/3/4 |
Ongoing | At least 50 initiative or reactive visits by UKT&I staff in Brazil and the UK, giving emphasis to information gathering, promotion of UK capability, identification and communication of opportunities and providing regular contact with commercial companies and Government agencies.
| Over 150 direct contacts with UK companies made so far in 2006.
| 1/2/3/4 |
Ongoing | Energy Specialist co-funded by UKT&I and Scottish Development International based in Brazil's Offshore Centre (Macae).
| Specialist provides on-the-ground support in Macae to UKT&I and UK industry; successful in mapping key procurers decision chain; in establishing relationships; increasing awareness of UK capability; and assisting UK companies with advice and in gaining access.
| 2/3/4 |
February 2006 | UK-Brazil Energy Memorandum of Understanding (MOU) signed providing Government-to-Government instrument to help address barriers to further development of businesses in Brazil. Range of activity delivered linked to MOU including seminars and workshops e.g. in September UK experts will participate in post-Gleneagles G8 follow-up meeting in Brazil on sustainable development/energy efficiency. A detailed action plan under the MOU is currently being developed for discussion with senior Brazilian interlocutors in October.
| Objectives of the MOU include: Facilitate commercial exchanges and technology transfer; regular discussions on a broad range of energy-related issues (trade, regulation, energy security etc); enables both sides to address issues of mutual importance, including any possible barriers to trade and investment; provides government with a framework for tackling company concerns; encourages greater collaboration on both traditional and alternative energy programmes, thus helping to address issues related to sustainability and climate change.
| 1/2/3 |
May 2006 | UK-Brazil Briefing and Networking Breakfast at Offshore Technology Conference, Houston.
| Over 100 UK and Brazilian participants present for briefing by senior Petrobras personnel and following networking event.
| 2/3/4 |
May 2006 | Americas Oil & Gas Opportunities Roadshow: UKT&I staff from Brazil (and other Americas markets) deliver seminars to UK supply chain audiences in Aberdeen, NE
| | |
| England, East England and London on opportunities and UKT&I services to support market entry.
| Over 140 UK participants attended the series of seminars. Many have followed up with specific enquiries about opportunities and UKT&I services/ missions etc.
| 3 |
14-18 August 2006 | Inward Mission by Brazilian Education & Training organisations (including Petrobras, Transpetro and FIRJAN/SENAI + Mexican and Venezuelan organisations) to meet key UK education and training providers + SMEs.
| Inward mission will meet over 40 UK Education & Training providers in programme spanning Aberdeen, NE England, Midlands and London. Objective: 5-10 companies explore opportunities in Brazil/Venezuela/Mexico.
| 2/3/4 |
11-15 September 2006 | Approximately 35 UK participants will attend Rio Oil & Gas Exhibition with support from UKT&I in partnership with Energy Industries Council, Northern Offshore Federation and Scottish Development International. Participants will gain access to expert briefing, networking events with Brazilian industry and opportunities to profile capability.
| Objective: 5+ new to market companies report business won/follow-up.
| 2/3/4 |
22 September 2006 (tbc) | Support for British Chamber Energy Seminar in Brazil on Sustainable Business.
| An opportunity to set out UK approach to sustainable business/market friendly policies + UK capability to senior Brazilian government and business audience.
| 1/2/3/4 |
September 2006 | Publication of detailed oil and gas market opportunities analysis and oil and gas education and training report to UK supply chain.
| UK companies significantly better informed about opportunities in Brazil. Greater awareness of UKT&I support/services and planned interventions (seminars, missions etc).
| 3 |
October2006 | Brazilian roll-out of North Sea Story DVD (in Portuguese): The DVD was developed in cooperation with Shell, Wood Group, Robert Gordon University and a range of other industry partners. It provides an overview of the UK's experience in developing its oil and gas sector with key messages on community, supply chain development, alliancing, industry-government partnership and benefits of non-protectionism in developing international capability. The content has been designed to appeal throughout the value chainfrom government and industry though to grassroots organisations and students.
| Key messages on sustainable business development and UK capability delivered to broadest range of existing and future decision makers.
| 1/2 |
October 2006 | R&D-focused decommissioning related event in Rio de Janeiro, with participation of Petrobras and other national operators.
| Brazilian government/industry exposed to UK capability/R&D in this field; UK industry brought into contact with key decision makers.
| 2/3/4 |
November 2006 | Support for downstream gas outward mission by Society of British Gas Industries to Brazil to promote UK capability/research sector opportunities.
| Range of UK companies from transmission, distribution and utilisation sectors exposed to decision makers/aware of opportunities. Two or more UK companies report business won/potential for follow-up.
| 1/2/3/4 |
December 2006 | Inward mission from Transpetro (Petrobras' transmission/distribution company) to identify UK technology in LNG receiving terminals.
| Transpetro visit UK facilities in Southeast and Wales (Isle of Grain, Milford Haven, Avonmouth) and meet UK technology providers (BG, FMC etc).
| 2/3/4 |
March 2007 | Planned meeting between UKTI and Brazilian Energy Ministry to identify key joint-cooperation areas under UK-Brazil Energy MOU.
| Focus on key areas of mutual interest with UK focus on issues which address identified barriers/promote UK capability.
| 1/2 |
March 2007 | Support (briefing, lines to take etc) for visit of Sir David King (Chief Scientific Adviser) to Brazil.
| Promote UK capability in key technology areas such as subsea engineering; raise issues of concern with Brazilian government/industry.
| 1/2 |
|
Subject to resources within UKTI's Oil & Gas sector team
and within the Brazil network, a similar, or enhanced, programme
of activity is envisaged for 2007-08.
SECURITY
Investment in electronic security equipment increases at
an annual rate of over 15%. With good niche products, prices and
distributor, UK suppliers can be successful. The federal government
has pledged funds for the re-equipping of the police forces and
the prison system.
In the fire sector there are opportunities in niche areas
and in new products. Barriers include poor regulation, standardisation
and certification.
Opportunities exist in niche products with new technology
mainly in the private sector for large corporations, airports
and ports, banks but also in the prison and some police forces.
Activities:
Visit to Interseg exhibition 18-20 June, Fortaleza.
Commercial Officer BDV 24-26 July.
Exposec information stand.
Fire Show information stand.
Security Table-top event in São Paulo.
SPORTS AND
LEISURE INFRASTRUCTURE
(PART OF
CONSTRUCTION SECTOR)
UK Trade & Investment facilitated a full day of meetings
with commercial staff from Rio de Janeiro and UK companies interested
in supplying goods and services to the Pan American Games in 2007,
and with wider interest in Brazil's 2014 FIFA World Cup bid, and
2016 Summer Olympic bid.
A presentation on what UK Trade & Investment can do to
assist companies in the Brazil market was given to the 17 individual
companies who also enjoyed one to one meetings.
TEXTILES
British industry is highly regarded in Brazil. Main competitors
in the market: Italy, Germany, Spain and France, USA. Recently
discussions at UNCTAD proved that the Creative Industries are
one of the most promising sectors for Brazil. UK fashion industry
is hugely popular in the country. UK textiles and fashion have
always enjoyed a world wide reputation and this is something UK
manufactures, designers and retailers are all determined to continue
to build upon into the 21st Century. Brazil's textile, clothing
and fashion industry comprises over 30,000 companies ranging from
fibre and filament yarn manufacturers to finished clothing makers
and it employs 1.4 million people. In 2005 the industry's total
sales reached £18.5 billion and production reached 1.8 million
Activities:
Inward Mission of Brazilian buyers to London Fashion
Week, September 2006
KEXPENDITURE OF SECTOR FOCUSED ACTIVITY IN BRAZIL
The figure which was given in the written evidence remains
the same (ie total spent throughout the financial year 2006-07
is £288,000). This is because when this figure was quoted
previously it included monies already committed (and spent to
date) for the rest of the financial year.
LIPPAS AND DOUBLE TAXATION AGREEMENTS
INVESTMENT PROTECTION
PROMOTION AGREEMENTS
The UK's Investment Protection Promotion Agreement
(IPPA) was one of 14 un-ratified IPPAs that were withdrawn from
the Brazilian Congress in 2003. The Foreign Ministry feared that
economic nationalist backbenchers were about to vote through amendments
that would bar them from negotiating further IPPAs that met international
standards and also jeopardize the few agreements that Brazil already
has.
The situation remains so and is not unique to
the UK. Brazil does not have an IPPA with any other country. However,
a Brazilian Working group has been established to look at all
of Brazil's pending IPPAs.
The IPPA was included in the JETCO at UK insistence
in an effort to expedite the issues, but it is likely to remain
unresolved for the foreseeable future.
The Brazilian government is very much aware of
this issue and is working towards having a mechanism in place
that will be attractive to investors, but will fall short of a
full IPPA.
The UK government continues to work with the Brazilians
on this, both through the JETCO process and with the private sector.
DOUBLE TAXATION
AGREEMENTS
Double Taxation Agreements are a critical part
of developing trade and it is important that we try to ensure
that there are double taxation agreements with all of our major
trading partners, including Brazil. It is an issue that UK business
raises consistently.
Given Brazil's substantial and rapidly developing
economy, a comprehensive double taxation agreement with Brazil
would be welcome. It would help further business and investment
links between two countries.
The UK's double taxation policy is very close
to the OECD Model Treaty, and we would want this to be the starting-point
for any discussion, with features that business would welcome.
Brazil's policy varies significantly from that of the OECD. A
key issue is that Brazil is unwilling to give up its taxing rights.
The USA also does not have a double taxation agreement
with Brazil.
It is not true to say that any treaty would be
better than none. This would prejudice the terms of other treaties
that are being negotiated within the region e.g. with Chile.
OECD member states with double taxation agreements
with Brazil frequently report problems with how Brazil applies
those treaties. These treaties are mostly old and confer limited
benefits. In 2005, Germany unilaterally terminated its DTA with
Brazil following arguments over differences of interpretation.
It follows that, while the UK would not want to
rule out negotiation of a potential double taxation agreement,
the basis for a negotiation would have to be the prospect of a
treaty close to that of the OECD Model.
HM Revenue and Customs (HMRC) maintains good informal
links with Brazilian counterparts with a view to encouraging Brazil
to adopt a treaty policy closer to that of the UK and the OECD.
A senior policy adviser from HMRC will be visiting Brazil this
spring to discuss technical details of a possible Double Taxation
Agreement.
It is unlikely that double taxation agreements with other
EU countries are distorting trade and investment statistics.
MNETHERLANDS
There are a number of reasons why UK multi-nationals will
sometimes route investment through certain countries. These are
not always tax related. HMRC is not aware that investment in Brazil
is being channelled through any one EU state (such as the Netherlands)
as a result of a particular tax treaty. It is worth noting that
Shell (for example) is registered as a Dutch company as well as
in the UK. This is similarly the case with Unilever. Both companies
have significant investment in Brazil.
NNOTE ON LATIN AMERICA FOR THE FSSAB MEETING
Working Document Number (05) FSSAB II/3
Overview of Latin America
For discussion by FSSAB members.
INTRODUCTION
A number of comments on draft priorities were made by FSSAB
members at the last meeting and subsequently in writing, in relation
to South America, or specifically some countries -Brazil, Mexico
and Argentina.
GENERAL MERCOSUR
BACKGROUND:
Historically, the Latin American market has been
a good place for UK Financial Services business. This historical
lead had been eroded notably by the US in recent decades, but
the potential for this region is again growing, fuelled by the
wealth in resource commodities such as oil and minerals. Furthermore,
some of the Mercosur countries have undertaken significant reform
and are now becoming more competitive.
There are a number of large infrastructure projects
related to oil and minerals currently underway and planned for
the future in the region, where UK financing could be sought.
A number of local Mercosur companies are now becoming multinationals
appearing in the Fortune 500 that could potentially be looking
for listing on the London Stock Exchange, or for further finance
capital to become true multi national players.
The Mercosur markets could possibly present significant
opportunities for the UK financial services industry, but also
significant risks such as political instability.
On the other hand there may be some "quick
wins" in the Mercosur markets that are of interest to the
UK financial services industry, and this is something that we
intend to explore further with our stakeholders.
CURRENT ACTIVITIES
PLANNED IN
LATIN AMERICA
FOR 2007-08
As such, there is currently no specific financial services
strategy towards Mercosur markets, however:
Brazil is provisionally an opportunity market
for financial and related business services in 2007-08, ie in
UKTI's Top 20 markets for financial and related services.
Argentina and Mexico are two countries that have
been mentioned by several stakeholders.
The Lord Mayor of the City of London will be visiting
Brazil from the 23 August to1 September. Detailed planning has
not yet started for this visit.
Provisionally UKTI's FS team has allocated to
Brazil one of the largest budget allocations to a so-called "opportunity
market". This allocation is to provide some seed corn funding
to the following activities (to be refined):
Legal servicesjoint seminar with Brazilian
Advocates Organisation (OAB) on IPR/patent protection.
Activity linked to the Lord Mayor of the City
of London's visit.
Support for the London Stock Exchange's possible
follow up to their September 2006 visit.
We are not planning to provide funding for the
following activity:
PPPfeedback from the sector indicates that
the private sector should self fund PPP activity.
Insurance/reinsurance seminardespite the
recent liberalisation moves, it is felt that the private sector
should coordinate this activity if this is seen as a priority.
Full Industry Briefing Course training has been
provided to Marcelo Tavares, the lead FS officer in Brazil. HMG's
Director-General for Trade and Investment in Brazil Martin Raven
also received training before he arrived at Post.
Financial Services is also a regular part of the
JETCO Officials' discussions with 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.
A number of potential activities are being considered
for Mexico and Argentina, including arbitration and AIM aspects.
ORESOURCE CHANGES IN BRAZIL AND THE REST OF MERCOSUR
AS A RESULT OF SPENDING REVIEW (SR) 2004 AND UKTI
STRATEGY: PROSPERITY IN A CHANGING WORLD
BACKGROUND
1. Resource levels across UKTI's overseas network, including
in Brazil, have in the recent past been affected by the requirement
to:
(a) secure savings of £20 million in UKTI's overseas
network under Spending Review 2004; and
(b) reinforce resources in the emerging markets under
the new UKTI strategy by reductions in other parts of the network.
RESOURCE CHANGES
IN BRAZIL
AND THE
REST OF
MERCOSUR FROM
2005
2. Following a review of our commercial resources in
Brazil in response to SR04 it was decided to close in the autumn
of 2005 UKTI's operations in the regional offices of Belo Horizonte
and Curitiba as there was little demonstrable evidence that they
were contributing significantly to UKTI's Brazil network's business
objectives and targets in support of UK customers. This resulted
in the loss of four local jobs and contributed to network savings
required under SR 2004.
3. Subsequently and following the launch of the UKTI
strategy in 2006 it was agreed, in recognition of the high growth
nature of the Brazil market, to increase resource as follows:
2 local inward investment posts in São
Paulo;
1 UK based trade post in Brasilia to work primarily
on JETCO;
1 UK based trade post in Rio focusing on the oil
and gas sector;
1 UK based trade post in Sao Paulo to lead on
the development of business opportunities across the priority
sectors of agriculture, aerospace, biotechnology, engineering
and healthcare; and
1 local trade post in Rio.
4. In summary there was a reduction of four posts as
a result of the closure of the regional offices and an increase
of six to take effect over the period 2006-07 and 2007-08 as a
result of the new strategy. Hence the figures that appeared in
the answer of the 6 February to Mr Peter Luff's PQ are correct.
5. As far as reductions in other UKTI teams in Mercosur
countries are concerned, day to day commercial assistance in Paraguay
was discontinued when the British Embassy in Asuncion closed as
part of the Spending Review in 2004. However lobbying on behalf
of UK companies is carried out on a case by case basis from the
British Embassy in Buenos Aires. As part of the resource redeployments
in UKTI's overseas network under the 2006 strategy, the UKTI section
of the Embassy in Montevideo (1.9 staff) is to be closed at the
end of March 2008. Lobbying for commercial purposes will still
however be carried out by the Ambassador on a case by case basis.
All other resources are as shown in the answer to Peter Luff's
PQ.
PUKTI RESOURCES 2005-06
|
| Market Desks
| Sectors Group |
Overseas |
| | |
UK | LE
|
|
UKTI (Global) | 105
| 142 | 239.3
| 1,338.2 |
Brazil | 3
| | 2.8 |
36 |
Rest of Mercosur | 1
| | 2.9 |
11.8 |
|
We cannot provide the level of resource for Sector Group
split by market as this not accessible.
The level of UKTI resources for 2006-07 is currently being
compiled and therefore unavailable at this time.
QENQUIRIES RECEIVED ACROSS SOUTH AMERICA
|
Market | Substantive Enquiries
| Overseas Market Introduction Service (OMIS)
|
| 2005-06
| 2006-07
(Apr-Dec)
| 2005-06 | 2006-07
(Apr-Feb)
|
|
Argentina | 36
| 152 | 4 |
11 |
Bolivia | 10
| 80 | 0 |
0 |
Brazil | 471
| 392 | 24 |
33 |
Chile | 144
| 32 | 2 |
5 |
Colombia | 9
| 97 | 1 |
0 |
Ecuador | 5
| 35 | 0 |
0 |
Panama | 15
| 12 | 0 |
1 |
Peru | 10 |
47 | 1 | 0
|
Uruguay | 252
| 135 | 0 |
1 |
Venezuela | 79
| 30 | 1 |
3 |
|
SUBSTANTIVE ENQUIRIES
These are general enquiries (whether by email, letter, fax
or telephone) from UK and/or local companies that are not of a
chargeable nature but that require a significant amount of timei.e.
at least 30 minutes work.
OVERSEAS MARKET
INTRODUCTION SERVICE
(OMIS)
OMIS is a system to manage and deliver chargeable services
to customers and supports the customer in an effective first entry
into a new market. It provides an extensive range of research
and support activities and, together with a simple price structure,
provides a highly flexible and personal customer journey.
RINFORMATION ABOUT MISSIONS ETC
Government is now doing more to raise awareness
and disseminate information about Brazil since identifying it
as an emerging market in the new UKTI strategy.
Some of the preconceptions disappear when companies
visit the market and UKTI trade missions help companies to overcome
this. In the last year nine trade missions have visited Brazil.
Examples of what UK Government is doing:
UKTI offers Market Visit Support in the form of
financial assistance to SMEs who want to visit overseas markets
as part of their trade development process. This is available
to SMEs who are either new to export or new to certain markets.
The list of eligible markets was extended last year to include
Brazil along with UKTI's other emerging markets.
UK-Brazil Year of Science is taking place this
year and is designed to maximise impact and formulate a comprehensive
approach to UK-Brazil research engagements. It will play an important
role in raising awareness about Brazil with a number of high profile
events throughout the year.
UKTI is recruiting 15 Business Advisors to focus
on medium-sized companies with potential to succeed in emerging
markets, including Brazil.
UKTI in the North West has contracted a Latin
America specialist to run a programme of support and awareness
raising throughout the region.
UKTI in Yorkshire and Humber has taken on a regional
champion for Brazil.
Scottish Enterprise has been very active, running
missions and providing trade development support to a couple of
dozen energy companies with an interest in Brazil and Venezuela.
This has led to some early successes such as Wood Group which
has its HQ in Aberdeen. The company trades with Brazil and has
invested heavily there and now employs over 400 Brazilian staff.
International Business Wales has visited Brazil
on four occasions since the establishment of the Welsh Assembly
Government. In that time, 38 Wales based companies have visited
the market winning more than £2.5 million of business and
identifying a further £3.5 million of opportunities.
UKTI in the South East held a Brazil-specific
event in November which was well attended by companies.
UKTI in the South West held a Brazilian event
in late 2006 to educate businesses about the opportunities in
the market. Following interest at this event a trade mission to
Brazil is now being considered to coincide with the top Brazilian
mobile content trade fair in May. [Mobile content includes games,
finance, banking, mobile TV etc].
UKTI in the South West is also running a series
of events focussing on six emerging markets, including Brazil,
during international trade week in March.
UKTI's Engineering Sector Group is running a series
of nine roadshows on doing Business in Brazil, China, India &
South East Asia. These are in an innovative gameshow format and
have already generated interest in Brazil from companies.
|