Brazilian Business Targeted

April 7, 2011

Brazilian business targeted by US communities

By McClatchy-Tribune News ServiceCapital Correspondent

MIAMI —  Brazil is a continent-sized country with a $2.2 trillion economy and is South Florida’s largest trading partner as well as the source of hundreds of thousands of free-spending visitors who are snapping up everything from ocean-view condos to U.S. companies.

And that means it is high time for a well-thought-out, multi-year game plan to take advantage of the opportunities the burgeoning Brazilian economy presents, as well as to meet the challenges of doing business with the world’s seventh-largest economy, said Frank Nero, president and chief executive of the Beacon Council, Miami-Dade County’s economic development agency.

So last week before an overflow audience, the Beacon Council put on a Brazil Business Development Strategy Conference with the goal of compiling a white paper on Brazil that will serve as a road map for a new business relationship.

The Miami conference comes on the heels of a successful visit to Brazil by President Barack Obama, whose goal was to reset political and economic relations with a country that has a huge appetite for American products, is sitting on oil discoveries that could potentially make it one of the world’s largest oil exporters, is a stable and friendly democracy, and is on an infrastructure building binge as it readies for the 2014 World Cup and the 2016 Olympic Games.

The Beacon Council conference explored everything from investment and trade opportunities in Brazil to investment by Brazilian companies in South Florida and how to spur travel and tourism between the two countries. Last year, Brazil became Miami-Dade’s first “billion-dollar” international market, with Brazilians spending $1.1 billion during their visits.

Nero called the session a “crash course in Brazil” — one that he hopes will pay dividends for both South Florida and Brazilian companies.

“Brazil is living a very good moment — really a remarkable period of time,” said Ambassador Luiz de Araujo Castro, consul general of Brazil in Miami. “We see ourselves today as a world player.”

While the United States has traditionally been Brazil’s top trading partner, it no longer is. Now it is China, which has been snapping up Brazilian agricultural products and raw materials, pushing up the price of commodities and pumping up growth.

Brazil is the world’s top exporter of beef, poultry, sugar, coffee, orange juice concentrate, tobacco and ethanol and the second-largest exporter of soybeans.

Some critics say Brazil has become too dependent on China, but de Araujo Castro said, “Brazilians are not scared of China; it has been a very productive relationship.”

Brazil has a trade surplus with China, but a trade deficit with the United States, noted Amaury de Souza, a visiting scholar at the University of Miami’s Center for Hemispheric Policy.

But that trade deficit is largely the product of a very strong real that makes U.S. products relatively cheap for Brazilian buyers.

What also differentiates trade with the two countries is that Brazil buys mostly manufactured products from China and sells commodities, but manufactured products are in its export mix to the United States.

“Trade with the U.S. promotes Brazilian domestic industry, but trade with China promotes agro-industry and the import of manufactured goods,” de Souza said.

And just because there is plenty of potential for business with Brazil doesn’t mean there aren’t challenges. Right now the Brazilian government is trying to strike the right equilibrium to keep its economy growing without stimulating inflation, and while the middle class is growing, Brazil still has serious income distribution problems.

Meanwhile, high interest rates in Brazil are attracting lots of capital from abroad but that also contributes to strengthening the real, which is making Brazilian exports less competitive.

Panelists also pointed to a complicated legal system, red tape in business dealings and bottlenecks at Brazilian ports as challenges.

But as Brazil prepares for its two mega-sporting events, the biggest opportunities will be in improving and building infrastructure — roads, ports and airports, de Souza said.

Gilberto Neves, president and chief executive of Odebrecht USA, said, for example, that $95 billion will be invested in infrastructure for the Olympics and $1.7 billion will be invested in stadiums needed for the World Cup.

Sao Paulo-based Odebrecht, the largest construction and engineering firm in Latin America and also a major builder in South Florida, is heavily involved. It will be building four of the World Cup stadiums, taking a stake in two — including the new Corinthians stadium in Sao Paulo. It is involved in the renovation of Rio’s famed soccer stadium, Maracana, and is also engaged in Rio’s $24 billion revamp of Port Maravilha. “It will almost be like a new downtown for Rio,” Neves said.

“There are big opportunities in Brazil now,” Neves said. And they aren’t just related to the games. An Odebrecht company is the world leader in ethanol production, another division builds oil platforms for Petrobras, and Odebrecht also is a leader in construction of hydro-electric projects. Neves said he also sees big opportunities in affordable housing construction in Brazil.

Odebrecht opened a U.S. office in 1990, and has worked on 61 U.S. projects valued at $4.8 billion — the majority in South Florida — in the past 21 years. Among its current projects are the mile-long North Terminal at Miami International Airport; Airport City, a retail and commercial complex planned at the airport; and the Metrorail AirportLink.

Another Brazilian company that has found success in South Florida is Embraer, a commercial, defense and executive jet manufacturer whose North American headquarters is in Fort Lauderdale. The company recently opened its first U.S. production facility in Melbourne. It was able to hire a number of former NASA employees as the space shuttle program wound down, said Christine Manna, director of corporate communications.

But the strategy many Brazilian companies are using to enter the U.S. market these days is buying an existing U.S. company, said Marcel Coehlo, a lawyer in the New York office of Becker & Poliacoff.

That’s the route that IBOPE, a Brazilian media, market and opinion research firm, took when it acquired Zogby International and planted the new firm, IBOPE Zogby International, in Miami

“Now is a great time for Miami as an entryway to Latin America — and especially Brazil,” said Kjell D’Orr, the chief executive.

Some who attended the conference are already working to expand Brazilian business. William Talbert, president and chief executive of the Greater Miami Convention & Visitors Bureau, for example, chairs a U.S. Travel Association committee that is working to get visa requirements lifted between the two countries, so visitors can travel with just a passport. Currently 36 countries have so-called visa-waiver programs with the United States.

It costs $140 for a U.S. citizen to obtain a Brazilian tourist visa, and U.S. fees are equivalent. Waits for visas, particularly for Brazilians, can be extensive. Talbert presented data showing the average waiting time for a U.S. visa in Brasilia, the Brazilian capital, is 142 days and 111 days in Sao Paulo.

Travel professionals have told him that a visa-waiver program might double the number of Brazilian visitors, Talbert said. With Brazilian travelers already accounting for more than $1 billion in expenditures in Miami-Dade County, Talbert asked, “A $2 billion market? Anyone want a piece of that?”

Support for a visa-waiver program will probably be one of the ideas that will wind up in the white paper.

“Getting a visa travel waiver for Brazil is the U.S. Travel Association’s No. 1 priority,” Talbert said. “What can be done to help? Keep the buzz going on a visa waiver — just keep talking.”

At the end of the meeting Nero asked the audience for their recommendations. “No idea is wrong; no recommendations are too small or too big,” he said.

The next step will be summarizing the ideas of the seminar, incorporating new ideas that are submitted and circulating a draft for input before the final white paper is prepared.

“I think this was very useful for everyone,” said Brazil’s de Araujo Castro. “It was a very interesting brain-storming session.”

NO VISA FOR BRAZIL..PRICELESS

Obama may end up with a visa for Brazil End of document requirement for those traveling to the United States could be announced during the visit of U.S. President to Brazil this month Washington - The cancellation of the visa requirement for Brazilians entering into U.S. territory may be among the various accords that U.S. President Barack Obama will sign the Brazilian colleague, Roussef, during his visit to Brazil this month. The drop in enforcement is a request to agencies that deal with tourism in the U.S..
The measure was justified because, according to U.S. Travel Association (U.S. Travel), the rejection rate for visa applicants in Brazil is already less than 5% of the requirements of the U.S. government to stop asking for it.
In 2009, about 890 thousand Brazilian tourists spent U.S. $ 4 billion in the U.S.. In the same period, more Mexican tourists (13 million) spent $ 8 billion.
Another understanding is to be announced an agreement with the Federal Government to allow Brazilian citizens living on American soil to return to Brazil may take the contribution to Social Security made abroad. The objective of these partnerships is to increase flights between the two countries, and promote Brazil abroad.
Also provided are also dissemination action of World Cup 2014 and the 2016 Olympics in partnership with private and government Americans. The idea of ​​this agreement is to leverage the American experience for the dissemination of sporting events.
The final details of the agreements to be closed between U.S. and Brazil are still being adjusted by aides Rousseff and Barack Obama. In Rio, the U.S. agenda should include a visit to tourist attractions, a slum and a peaceful discourse considered that were more popular. 

OBAMA TO VISIT BRAZIL

Obama to Visit Brazil in March
By Nestor Bailly, Contributing Reporter

RIO DE JANEIRO, BRAZIL – Early last week it was released that in March, U.S. President Barack Obama will visit Brazil on his first trip to South America. The announcement comes shortly after U.S. Secretary of State Hillary Clinton’s attendance at Brazilian President Dilma Rousseff’s inauguration, and the trip is widely viewed as a rejuvenation for U.S.-Brazilian relations.


U.S. President Barack Obama will visit Brazil in March 2011, photo by Steve Jurvetson/Wikimedia Creative Commons License.

Specifically mentioned in the U.S. Presidential State of the Union address last week, the trip takes the Obama to Chile, Brazil, and El Salvador to “forge new alliances across the Americas.”

For Brazil, this means reinforcing the bilateral relationship after some rifts following former president Lula’s foray into the Middle East peace process and negotiations over Iran’s nuclear ambitions.

Another point of conflict was the near trade war over illegal U.S. cotton subsidies, which effected Brazil’s ability to compete in the market. A deal was announced on April 6th, one day before Brazil would have begun implementing retaliatory sanctions worth US$830 million.

President Rousseff’s new administration has sent numerous signals that it wants to improve ties with the U.S., most significantly by distancing itself from Lula’s Iran policies. Diplomatic cables released by WikiLeaks show that since 2009 there has been a strong desire to rebuild relations, marked by high-level visits, between the two most populous and powerful nations in the western hemisphere.

“[Antonio] Patriota [then Secretary-General of the Ministry of External Relations] said the high-level visits are important for the tone of the relationship with Latin America as a whole, and Brazil in particular,” a cable from Brasilia reads. “They will allow our differences to be seen within a larger, and overall, positive context.”

President Obama’s upcoming trip is meant to do just that. Focusing on areas of mutual interest, the President is expected to push for greater trade and investment, especially in Brazil’s world-class clean energy industry. The U.S. is currently without a formal trade agreement with Brazil, the world’s eighth largest economy.


President Dilma previously met President Obama in the White House in 2009, before she was elected, photo by Agência Brasil.

Obama will also offer U.S. expertise with civil security in anticipation of the upcoming 2014 World Cup and 2016 Summer Olympics, and assistance in intelligence and organizational coordination aimed at tackling Brazil’s narcotics trade is expected to be a top priority.

A looming issue remains unanswered with Brazil’s FX2 jet fighter procurement, a long-delayed multi-billion dollar defense contract aimed at purchasing 36 jets from France, the U.S., or Sweden. Former president Lula deferred the decision to his successor, Rousseff, who has not made any commitment yet.

Many analysts see Obama courting Brazil and its markets to counteract Chinese influence in the region. With Brazil’s huge oil and gas reserves, unneeded for its domestic market as Brazil is energy self-sufficient, Chinese state-owned companies are investing heavily in Brazilian mineral and energy infrastructure. However many in the Brazilian government are as critical of China’s trade and financial practices as the U.S. is.

The U.S. presidential visit to Brazil is a clear effort to align with Brazil’s emerging world power status and high rate of growth. The U.S. and Brazil have a lot in common, much more so than with China, and both countries are keen to open up the hugely profitable potential in the U.S.-Brazil relationship.

MY OUT LOOK ON BRAZIL by M.J.

That is a nice video of Kelly. The others, well, they speak for themselves. Tourism was actually up 11 percent in 2010. They had 680 Thousands tourist to come to Rio De janerio in the month of December alone. Those are stats from the Federal Police and all of Brazil had over 86 percent occupancy on Rental units. In rio, over 90 percent of all the rental units and hotels were filled with Tourist. That is tremendous growth. However, you are correct. Sex tourism is down. That way, maybe, the quality speaks for itself. The ones that want to be spoon fed will miss help. However, if you think back, help was dead 6 months before it actually closed.. Especially after the last entry fee increase. I went in several times in there were not 75 people, including employees in the place. So, the writing was on the wall. All good things must come to an end. Inflation is eating up the Real buying power. The increase in wages, fees, food cost have only allowed the buying power to equal 1996 buying power, even with the brazilian population moving up to 50.2 Middle class and up. However, like any civilize nation, the less educated will suffer and the lack of skills, training in a labor intense society will keep them in menial jobs- which a lot are comfortable having these entry level positions, simply to support their family. Brazil is a very dynamic and exciting place. I think we judge brazil simply by the going and comings of Copacabana. However, I will honestly say, Several other states are more fluid and dynamic than Rio. We must move beyond the comforts of Zone Sul and realize the vastness of Brazil. Rio is very expense ( zona sul) and overpriced. I find the true Carioca attitude to be quite different from other Brazilians. I will say, if we evaluate the contacts we have made over the last 7 years. we will realize the true Cutie's were not from Rio. They were simply visiting from some other state. We need to go to the source and find them. especially now, since there is a drought in the Star quality program in Rio. yes, if they were horses, we will say they are long in the tooth. This garota do programmer game is a young woman game. If they are 30 + they are closer to Dinosaurs then stars. Think, If they are 30+ and have been working 7-12 years, that is over 2100 different men easily in that small time frame. That is over use and leads to an academy award performance or basically poor service for a substantial price. My rule of thumb, if some one wants an exorbitant price, they usually are not good performs. That is my small observation- not scientific.  I enjoy traveling around Brazil. I will suggest Vitoria and North Brazil for a change of pace. I am not sure about the availibility of programmers here but there are a lot of normal women that would love to meet you guys.We all enjoy the weather and those of us , who really try to assimilate in the culture, have a true appreciation and respect for the country. We love the madness and we love the tranquility.

M.J.

RIO CLUBS 2011

Rio Clubs in Summer 2011

By Bhamika Bhudia, Contributing Reporter

RIO DE JANEIRO, BRAZIL – As Carnival nears, there is plenty of Samba in the Cidade Maravilhosa, from amazing samba school rehearsals to street blocos. But while Rio may not be a city of nightclubs on a par with New York, London or even São Paulo, there are still plenty of options to keep the stylish on the dance floor late-night.

The Week International (LGBT nightclub), Rio, photo by Hentzer/Wikimedia Creative Commons License.

Club Six in Centro, near Lapa, is usually kicking on a Friday night with an open bar for five hours playing a variation of Hip Hop, Funk, RnB, Dance and live music. Women can get in for R$30 before 10:30PM and men for R$50, but with a flier that may be obtained from the website, further discounts are available depending on the time of entry.

The club has three floors, a pool table and boasts hi-fi visual effects. According to student Dina Varsani, “Club Six plays excellent music so if you’re bored of Samba and Funk music, you can listen to House and Dance as well. The open bar is definitely a plus point and the atmosphere is really lively if you want a good dance and a fantastic night.”

Famous amongst foreigners and Cariocas alike, Melt in Leblon is typically busy both during the week and on weekends, but Saturday night is perhaps the best with DJ Silvio Dib playing House, Funk and Hip Hop. Entrance for women is R$25, and men can get in for R$50. As with most clubs in Leblon, your attire should be a little nicer than for a night out in Lapa, as the club-goers here are dressed to impress.

Located near the Planetarium in Gavea, Club 00 is highly recommended for its outdoor deck and ambient venue. Resident DJ Saddam plays a set of Hip Hop every Friday night with guest DJs playing House music. The bar has a small dance floor and can be a nice getaway from the usual nightlife spots of Lapa, Ipanema and Leblon if you fancy a change. Saturday night kicks off with happy hour from 8:30PM with a quieter scenario, but after midnight, things gear into action with a range of Indie Rock, Pop, Club House and Electronic music.

A good night can be had in one of Rio's many clubs, photo by Seth Mazow/Flickr Creative Commons license.

Nuth has two locations in the city, one in Lagoa and the other in further out Barra da Tijuca. The Barra da Tijuca branch fills up on Saturdays so arrive early in order to avoid a long wait in the queue.

Apparently the wait is well worth it, “It’s a great place, I’ll definitely go back there next time I’m in Rio. There are gorgeous people there, the music is good and the venue is really nice,” says traveler Nicole da Silva. DJ Bernard de Casteja and DJ Renato Alexander play a mix of Pop, Hip Hop and Funk and entrance on the higher end of the scale, is R$40 for women and R$90 for men.

Of course there are many more clubs worth mentioning, including Boox, Baronetti, Casa da Matriz, Fosfobox, Dama de Ferro, and The Week. For a daily listing of Rio’s best clubs, shows and bars, make sure to bookmark The Rio Times Nightlife Guide.

If you are in Rio for one week, one year or one lifetime, it is nice to trade your Havaianas for some chic clothes and indulge in some great House or Hip Hop music. This of course goes double for those that haven’t learned how to dance to samba yet.

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Posted by Bhamika Bhudia on Jan 25th, 2011 and filed under 

Replace Club HELP

MIS Set to Replace Club Help in Copacabana

By Katya Gubarev, Contributing Reporter

RIO DE JANEIRO, BRAZIL – After more than 25 years, Help Discotheque, a notorious symbol of prostitution in Rio, closed its doors after the Prefeitura (local government) initiated the process in 2008. The prime location along Copacabana Beach will transform into a new landmark, the Museum of Image and Sound (MIS), and planned to be completed in the end of 2012.

The planned Museum of Image and Sound (MIS), image provided by Secretaria de Cultura.

Budgeted at R$70 million, the project is a partnership of state government with the Roberto Marinho Foundation. The demolition is expected to be finished in March 2011, clearing the area of 7,000 square meters on Avenida Atlantica.

The design is by the American architect Elizabeth Diller, whose concept is a reproduction of the famous Copacabana sidewalk with its alternating black and white waves in a vertical version of a LEED (Leadership in Energy & Environmental Design) standard building.

The first Museum of Image and Sound of Rio de Janeiro (RJ-MIS) was inaugurated on September 3, 1965, as part of the fourth centenary celebration of the city. Currently, the MIS has two headquarters: one in Lapa, where it houses the collection of text and audio, including the collection of the National Radio, and the other at Praça XV, where there are iconography, video and many newspaper exhibits.

The new headquarters in Copacabana will have permanent showrooms, temporary spaces for research, classrooms for teaching activities, a theater with 300 seats, a shop, a cafeteria, a panoramic restaurant, a bar with a terrace, a piano bar, and an observatory on the seventh floor.

Hugo Sukman, the curator of the future museum, says that it will be divided into different levels. The first two levels will be ESPÍRITO CARIOCA (Carioca Spirit), dedicated to city’s festivals and the Carnival and MÚSICA (Music), illustrating the history of samba, choro and bossa nova and their performers.

Museum of Image and Sound (MIS), image provided by Secretaria de Cultura.

The floor FELIZES TRÓPICOS (Happy Tropics) will display the Carioca way of life such as the production of soap operas and film, and museum of Carmen Miranda, now located in Flamengo. The final levels will be É SUL, É SAL, É SOL (Is South, Is Salt, Is Sun) dealing with the city’s link with nature, and NOITES CARIOCAS (Carioca Nights), showing the nightlife flavors, from samba to funk parties.

“In this new headquarters we will re-conceptualize the MIS, which will become a new tourist attraction. The collection, that is one of the most important in the state to show the history of Rio, will be preserved for the public, both tourists and locals, who will know more about the city’s culture, music, carnival,” confirms Adriana Rattes, Secretary of State for Culture. “This will be a symbol of Rio de Janeiro.”

While the closing of Help was certainly controversial, local residents seem generally pleased with the plan. “I am glad that they’re building a museum here,” shares Marcia Silva, a resident of Copacabana, “because right now there are only clubs and restaurants in the area.”

As Copacabana prepares for it’s role in the 2016 Olympic Games, which will be centered around Maracanã stadium, and also take place in Deodoro and Barra de Tijuca, certainly many more renovation projects are expected in the next five years.