Brazil - the most valuable foreign trade market in 2024

2. Extensive market demand in Brazil

    Brazil is a diversified and rapidly growing market economy, characterized not only by covering a wide range of sectors from basic resources to high-end services, but also by keeping up with global trends and presenting unique market dynamics and opportunities.

01. Demand for commodities

    As a key global supplier of commodities, Brazil's internal demand for these resources is equally significant. This not only reflects the characteristics of self-sufficiency and export-oriented economy in agricultural products such as soybeans, but also reflects the large consumption of industrial basic raw materials such as iron ore and oil, driving domestic and foreign investment interest in the supply chain of these commodities.

02. Consumer goods market upgrade

    With the rise of the middle class, the Brazilian consumer goods market is undergoing a shift from satisfying basic needs to pursuing quality and innovation. This has promoted the consumption upgrade of durable goods such as household goods, daily necessities, household appliances, automobiles, and electronic equipment, and also spawned a higher level of demand for daily consumer goods such as fashion, beauty makeup and skin care products, and health food, providing a broad room for growth for domestic and foreign brands.

03. The booming service sector

    The acceleration of urbanization and the adjustment of economic structure have promoted the diversification of the service industry, especially the rapid growth of financial services, education, health care and tourism. The modernisation and spread of financial services and the attraction of tourism to foreign and domestic investors are reshaping Brazil's services landscape.

3. Brazil's foreign trade policy

    Brazil's trade policy is unique and complex, reflecting its status as an economic powerhouse in South America and its role in the global trading system.

1- Multilateral trading system and regional trade agreements

    Active participation in the multilateral trading system: As an active member of the World Trade Organization (WTO), Brazil maintains the fairness and stability of international trade by participating in the formulation of global trade rules and the settlement of trade disputes.

    Regional trade cooperation: Brazil actively participates in regional trade agreements, such as the South American Union (MERCOSUR) and the Common Market of Brazilian Communities (CACM), to strengthen trade cooperation and integration with neighboring countries and create more business opportunities.

2- Resource export oriented

    Open attitude: Brazil is open to foreign investment and encourages foreign enterprises to invest in Brazil to set up factories, branches and cooperation projects.

    Investment incentives: The government offers a range of investment incentives, such as tax breaks, land supply and simplified approval procedures, to attract foreign investment.

3- Export incentive policy

    Import Licensing system: Brazil implements an import licensing system for all imported goods, including automatic import licenses and non-automatic import licenses (LI).

    Unified management of the "Brazilian Foreign Trade Network" : The Brazilian government uses the "Brazilian Foreign trade network" to conduct unified computer management of the import business, and all import operations must be carried out through the network.

    Tax system: Brazil's tax system is relatively complex, including various federal and state taxes in agreements on imported goods and services. Businesses need to carefully understand and comply with relevant tax regulations.

4- Trade legal risks and prevention

    Frequent legal changes: Brazil's legal system changes frequently, and businesses need to pay close attention to legal changes in the course of trade to avoid potential legal risks.

    Customs clearance risks: In order to protect domestic industry, the Brazilian government may set a minimum price or reference price for imported goods and tax them accordingly. Businesses need to ensure that imported goods are reasonably priced to avoid additional taxes and fees.

4. The 50th anniversary of China-Pakistan diplomatic ties marks a new starting point for China-Pakistan trade

   This year marks not only the 50th anniversary of the establishment of diplomatic ties between China and Brazil, but also the 20th anniversary of the establishment of the China-Brazil High-level Coordination and Cooperation Committee and the China-Brazil Entrepreneurs Committee. On June 5, the China-Brazil Business Seminar was held in Beijing, focusing on the new opportunities, new measures and new paths of China-Brazil economic and trade cooperation, and promoting the in-depth and high-quality development of China-Brazil economic and trade cooperation.

      In 2023, the bilateral trade volume between China and Brazil exceeded 181.5 billion US dollars, and China has been Brazil's largest trading partner for 15 consecutive years. Since the new Brazilian president took office, the two sides have been more active in promoting the continuous deepening of economic cooperation between Brazil and China. So far, the Brazilian government has exempted the import tariffs on 628 kinds of goods, aiming to simplify the import and export process and vigorously promote the facilitation of international trade.

    It is particularly important that Brazil and China have opened a direct RMB settlement trade model, and has successfully completed the first full local currency transaction closed loop operation in China-Brazil trade last year. This change heralds that the coming years will be a crucial period of closer bilateral trade relations and unlimited opportunities.

5, entered the Brazil through train, the 11th HOMELIFE Brazil exhibition

    As a highly influential professional exhibition in Brazil, HOMELIFE EXPO has been deeply engaged in the Brazilian market for more than ten years, witnessing the continuous rise of China-Brazil economic and trade relations and the rapid growth of bilateral trade and investment.

   From September 17 to 19, 2024, the 11th HOMELIFE Brazil International Home Gift Exhibition will be held in Sao Paulo Convention and Exhibition Center, the HOMELIFE organizing committee will continue to build a professional exhibition platform for the business exchange of China-Brazil home gift industry, and help Chinese enterprises to show brand strength and continue to develop the Brazilian and Latin American market.

   2024 HOMELIFE is one of the most important platforms for Chinese companies who want to understand and explore Brazil as a BRICS market.

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