More than 65% of Brazilians believe that the country’s economic scenario will improve with Jair Bolsonaro’s government, according to a recent survey by Datafolha. This is the best index calculated since 1997. In the previous survey carried out by the same institute, the number of people confident in an economic recovery was much less expressive, 23%.
With over 25 years of experience in America, Carlo Barbieri, economist and political analyst, who heads the Oxford Group – Institute responsible for the internationalization of companies from Brazil to the US – projects that the new year will be of new air and opportunities for the Brazil, mainly in the foreign market.
BRAZIL – USA RELATIONSHIP – “We are living through one of the most auspicious moments for the relationship between Brazil and the United States, especially in the area of the economy. For the first time in decades, we must have two presidential administrations with insight into the potential of free trade between countries . It is a unique opportunity for Brazil to undertake changes and take advantage of this relationship”, says Barbieri.
According to the economist, the Oxford Group consultancy monitors market movements to help Brazilian businessmen who wish to open businesses and invest in the United States. “We detected in our office in 2018 a percentage of more than 60% in the number of internationalization requests from companies to the US. Trump’s trade dispute with China already favors Brazil. The new Brazilian government is expected to follow a trend more open to trade”.
MORE TRADE LESS IDEOLOGY – For the economist, a new logic should guide the Brazilian economy to reach better numbers than the current ones. “We hope that the new government will prioritize trade relations, taking from the foreground the ideological relations that were overvalued in the previous government. And, with this macroeconomic and political vision, we will surely have a new flow not only of trade opening, but mainly of investments” .
With this new commercial relationship, and after the application of a more comprehensive and facilitating economic project, Carlo Barbieri believes that Brazil will also become more attractive for investments by American companies, as well.
In November, before assuming the post of president, Bolsonaro celebrated on social networks that large companies have already announced their intention to invest in the country after taking office. “After the elections, large companies have already announced millions of investments in Brazil in the coming years. It’s just the beginning! Trade with the whole world without ideological bias + Tax reduction + Debureaucratization = More confidence, more investments and more jobs”, wrote the president-elect.
“Here in the United States, for example, the tax policy of US President Donald Trump reduced the Income Tax (IR) of companies from 35% to 21%. In Brazil, the rate remains at 34% – the highest among G-20 and Brics countries. If Bolsonaro’s economic team manages to carry out a tax reform and apply measures that are more favorable to trade, we will certainly have a more attractive market in Brazil”, ponders Barbieri.
LESS BUREAUCRACY – MORE INTERNATIONALIZED COMPANIES
It takes at least two months to open a company in Brazil. Until you get all the documentation, which includes business license and licenses, the period can reach up to nine months. According to the economist, this is a major obstacle for the Brazilian market to attract international companies. In the US, for example, it is possible to open a business in a maximum of 1 week.
“Without reducing bureaucracy, we will not have a major change in this global feeling that Brazil is an excellent market, but very difficult to operate. With this new government in Brazil, we have a chance to review these paradigms and change this reality in favor of country,” ponders Carlo Barbieri.
With over 25 years of experience in the United States, Carlo Barbiei is President of the Oxford Group, the largest Brazilian consulting company in the US. Consultant, journalist, political analyst, speaker and educator. Founding member and first president of the Brazilian Business Group, founding member and president of the Brazil Club, and board member of the Deerfield Chamber of Commerce.
Graduated in Economics and Law with more than 60 specialization courses in Brazil and abroad. These courses are held at various institutions, such as: Fundação Getúlio Vargas, Federal University of Brasília, Mackenzie University, Sorbonne, University of Chicago Harvard and Massachusetts Institute of Technology (MIT)