HC 82 Trade and Investment Brazil

BRAZIL 07A

Written evidence submitted by the City of London Corporation

Submitted by the Office of the City Remembrancer

Introduction

1. The City Corporation welcomes the opportunity to contribute to the Committee’s inquiry into Brazil Trade and Investment. As a high priority for the City of London and the UK based financial and professional services industry, Brazil is one of the countries that receives an annual visit by the Lord Mayor of the City of London in their role as Ambassador for the UK based financial and professional services industry. TheCityUK, with which the City Corporation works closely on overseas promotion, see Brazil as a priority market and have a working group that seeks to realise the opportunities in the market.

2. The last visit took place in July 2011 and which focused on the promotion of UK financial and professional services capabilities, major infrastructure projects including sporting facilities relating to the 2014 World Cup and 2016 Olympics and opportunities in the energy sector. The next visit is scheduled for this October and is likely to build upon these themes with an additional focus on legal services, reinsurance and private equity/venture capital.

3. The City of London commissioned research in 2009 looking at the challenges and opportunities for the financial services in Brazil [1] , and today opportunities in Brazil remain for UK companies as the region’s economy develops. Areas of opportunity include the development of major infrastructure projects and the provision of financial and professional services to both the consumer and business markets to support and enhance economic growth. The Olympic handover should present a good opportunity to highlight to UK based firms the range of opportunities in Brazil.

4. Despite continued opportunities in Brazil, there is anecdotal evidence to suggest that UK based firms do not naturally look at the opportunities in the market. The perception is that UK based firms do not look seriously enough at the Brazilian market as they are preoccupied with other high growth markets. A number of barriers to trade and investment in Brazil also remain, limiting the ability of some international firms to operate the way they would like. Greater access for international firms would bring new products, services and skills to the market, supporting economic growth.

5. More positively, however, there has been an increase in Brazilian investment in the UK and it is clear that some high profile firms (Petrobras, Vale, BM&F Bovespa and BNDES) have chosen to locate in the UK to explore the UK and European market.

April 2012


[1] The Challenges and Opportunities for Financial Services in Brazil , Trusted Sources, published by the City of London Corporation, May 2009.

Prepared 23rd May 2012