American Companies sell three times more in Brazil
Folha de S. Paulo - 12/10/2007
The sales in Brazil of the 201 largest North American companies with businesses in the country have grown at a rate three times greater in comparison with the results these very companies have had around of the world. In Brazil, sales grow at a rate of 18.8% a year. The world average is of 4.8%. As a result of this acceleration, in a single year the Brazilian participation in the global sales of main American companies grew 40%. It went from 1.8% of the total to 2.5%. The new rhythm has been consolidating successive sales records and changing the investment plans of giants such as Coca-Cola and General Motors in Brazil. "We will have a year with a historical record", says José Carlos Pinheiro Neto, Vice-President of the General Motors do Brasil. In 2006/2007 (depending on the financial year of each company), there was also an increase of 11.5% in the workforce directly employed by the North American companies with businesses in the country. From the "Fortune" list of the 500 largest North American companies, 201 operate in Brazil. They have had their data researched by the Brazil-US Business Council, from Washington, which gathers North American and Brazilian entrepreneurs with operations in both countries. This year's results show a change in the level of participation of Brazil in relation the previous surveys, started in 2005. "There is a continuous improvement of the conditions in the country, and the companies take advantage of this to increase their presence in Brazil", says Mark Smith, Executive Vice-President of the Brazil-US Business Council. Smith says, however, that, in view of the size of the Brazilian market, the participation of the country in the global businesses of these companies, of only 2.5%, is still "very modest". "The high tax burden in Brazil and a series of problems involving the piracy of products continues being the main obstacles to the businesses", he affirms. The Internal report of an annual meeting of CEOs of these companies also points out areas under the responsibility of Brazilian authorities - such as ports, customs, and infrastructure - as obstacles for the increase of the operations and the bilateral commerce between Brazil and the United States. Nonetheless, large international companies have put their chips in the growth and consolidation of the Brazilian market.