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This report by Pablo Fonseca P. dos Santos, published by the OECD, analyzes Brazil's external trade dynamics from 1998 to 2004. Highlighted topics include the nominal and real exchange rates, trade balance fluctuations, export performance categorized by main products and markets, and the effects of liberalizing reforms in the 1990s. The study emphasizes the role of Brazilian firms becoming export-oriented and discusses macroeconomic and microeconomic reforms necessary to boost trade. It offers insights into current export policies and structural changes impacting Brazil's trade landscape.
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External Trade in Brazil: Recent Developments Pablo Fonseca P. dos Santos Paris - OECD November 22, 2004
Graph I: Nominal and Real Exchange Rate1, 1998 - 2004 (October)(index: July 1994 = 100) 2
Graph II: Trade Balance, 1998 - 2004 (October)(US$ billions; accumulated over 12 months) 3
Table I: Exports by Main Markets, 1997 and 2004 (US$ billions) 4
Graph III: Exports Quantum by Class of Products(12 months moving average) Source: Funcex. 5
Table II: Exports by Main Products, 1997 and 2004 (US$ billions) 6
Liberalizing reforms of the 1990’s - Privatizations - Reduction of trade tariffs Some industry examples - airplanes - steel - textiles FDI - automobiles - mobile phones R&D and investments in the agricultural sector Some Facts About the Structural Component of the Brazilian Trade Performance
Graph IV: Export Quantum, 1997 - 2004*(% change over previous year) 8
Table III: Balance of Payments, 1998 - 2005(US$ billions) 10
Table IV: Balance of Payments: Selected Indicators, 1998 - 2005 11
Brazilian firms are increasingly becoming more export oriented Policies to incentive exports Macroeconomic Stability - Necessary but not sufficient condition Microeconomic Reforms Agenda - Improvement of the business environment - Reduction of the cost of credit - Infrastructure investment (PPP, regulatory framework) - Improvement of the tax structure - R&D (new law being discussed by the Senate) - education Trade negotiations - High tariffs and non tariff restrictions on products that Brazil is more competitive Will Export Performance Keep Up?
Table VI: Improving Business Climate Structural Reform Checklist 14