UK companies and the future in Brazil

RIO DE JANEIRO, BRAZIL – Known for its thriving trade activity and active role in the global economy, the UK also has a long-established trade and investment relationship with Brazil. In fact, at one point, the UK was the fourth largest investor in Brazil.

This is mainly due to the fact that Brazil has a European-style business culture, which forms common ground and a sufficient basis for the two to pursue mutually beneficial endeavors.

As of December 2020, total trade between the UK and Brazil was reportedly valued at £6 (US$8.28) billion. (Photo internet reproduction)

Although similar in the sense that both the UK and Brazil’s economies are fuelled by the service industry, as opposed to actual products, Brazil is heavily focused on the hospitality industry while the UK prioritizes financial services.

In the decade between 2002 and 2012, UK exports into Brazil reportedly more than doubled, while service exports increased by nearly 60% in 2014. Several opportunities exist for UK businesses in Brazil and are said to predominantly be in the healthcare, marine, oil and gas, water, education, mining, food and drink, agri-tech, and technology industries.

UK COMPANIES IN BRAZIL

In light of the aforementioned, it is no wonder that one has several options to choose from when looking to start trading UK stocks on the FTSE 100, in terms of brokers and companies, as the UK boasts a wide selection of successful businesses in various parts of the world, including Brazil.

As of December 2020, total trade between the UK and Brazil was reportedly valued at £6 (US$8.28) billion. Moreover, there were reportedly more than 800 active British companies in Brazil, with 400 of the world’s 500 largest companies being found in Brazil.

See also  Lin Junxian counter-choked: Don’t criticize the “vaccine magnate”? | Politics | Newtalk

These include Rolls Royce, Shell, BP, JCB, Rexam, and Experian. This is further proof of the opportunities that exist in the abovementioned sectors, particularly as Shell was also previously reported as the largest foreign company operating in Brazil.

When highlighting the benefits for the UK, they include the previously noted commonalities in businesses practices and culture, relatively stable political conditions, as well as an expansion of the consumer market and growth prospects. For Brazil, the benefits include gaining access to a globally integrated business base, access to modern banking systems and investment opportunities, as well as a promising labor force.

LOOKING AHEAD POST-BREXIT

While the impact of Brexit has heavily impacted trade activity, it also sparked much conversation and debate on the opportunities that exist, such as trade deals and improved commercial relations. In early 2021, Brazil expressed its interest in strengthening fresh fruit ties with the UK, as it is ranked amongst the largest fresh fruit exporters in the world. This is proof that post-Brexit, trade activity is expected to continue, with possible trade deal considerations and new relations being established.

According to Marcio Rodrigues, Head of Agribusiness Department at Apex-Brasil, “Brexit negotiations have provided the UK with an opportunity to establish a stronger, independent relationship with Brazil, and as the third-largest producer of fruit in the world, Brazil is responsible for providing the UK with a large supply of fresh fruit.”

Rodrigues further claimed that Brazil has seen an increase in trade protectionism from the EU post-Brexit, adding that it “adds controls and raises barriers to free trade, and, by extension, food production costs.”

See also  Debate. Should "comfort" PCR tests be paid for?