June trade mission to help Humber firms set up in Brazil
‘The point about Brazil is they’ve got the oil, they’ve got the money and they’re investing in infrastructure’
A June trade mission to Brazil, which has the world’s second fastest growing economy, is to be led by Team Humber Marine Alliance, World Trade Centre Hull & Humber and UK Trade & Investment.
With funding from UKTI, the cost for the five days in Recife will be less than £1,000.
A Brazil Briefing held at the World Trade Centre revealed some astonishing facts and figures on the country’s current growth rate and concluded that the effort of getting into its market is likely to be rewarded many times over, particularly for engineering companies.
The briefing gave a frank appraisal of the great opportunities Brazil presents for businesses in the Humber region, on their own or through joint venture partnerships, and also any obstacles, such as language and ‘local content’ laws.
“With GDP growth estimated to be four per cent in 2012 and the football World Cup in 2014, Brazil is investing significant sums in its infrastructure” said David Lilley, international trade team adviser manager for UKTI.
“Indeed there is a massive amount of activity across most sectors which offers great export opportunities for local companies. Some have already grasped these opportunities but many more, unfortunately, haven’t.
“Brazil will be big spenders over the next five years so a window of opportunity is open, but it won’t last for ever and if we don’t meet the current demand our global competitors will.
“At a time when a lot of economies are struggling Brazil offers real hope. There are parts of the world where there isn’t a recession and in Brazil it’s possible to do profitable business to make up for dips elsewhere. The point about Brazil is they’ve got the oil, they’ve got the money and they’re investing in infrastructure.”
Recife, the trade mission venue, is booming even by Brazilian standards. It is in the north-eastern state of Pernambuco, which is showing GDP growth around double the national average, largely driven by the SUAPE port and industrial complex located to the south of the Recife. Already huge, the complex could multiply 20 times. State-owned oil company Petrobras is to invest US$224bn there.
Mr Lilley added: “The region has similarities to the north-east of England in that there has been a lack of investment for many years, However that has now all changed because the Brazilian government has been pumping an amazing amount money into Pernambuco generated from their oil revenues in the south.
“It believes that British industry has the technology and skills that countries like Brazil badly need and would seriously recommend exporters that have not previously looked at the market to do so now.”
Mark O’Reilly, THMA director, said: “Brazil took over the UK just before Christmas to become the fifth biggest economy in the world. And they’ve no intention of stopping there.
“They need jobs for their young people and will do what it takes.”
Chris Cobb, regional trade and investment manager at the British Consulate in Recife, commented over a video link: “Engineering companies are quite likely to get successful very quickly.”
Mr Lilley added: “Chris has been our man in Recife for 15 years. He is embedded in the local culture and has very good contacts.”