Foreign Investment And Trade Policy - 1565 Words

Foreign Investment and Trade Policy: Brazil can be seen as country that is open and inviting foreign investments. Brazil remains the top destination for FDI in the Latin American region and according the A.T. Kearney Foreign Direct Investment Confidence Index for 2015, Brazil is ranked #6 as a global FDI destination. FDI inflows into Brazil stood at USD 60.5 billion as on Feb 2015, (Central bank of Brazil). The US Department of State’s report on Brazil states that Brazil is a foreign investment friendly country however complex tax, local content and regulatory requirements must be looked out for. The Brazilian economy’s GDP growth has been erratic, but is showing signs of stability and is expected to hit 2.1 % during the year†¦show more content†¦Foreign capital must be registered on this system before 30 days of its entry or customs clearance in the case of goods. Some of the highlights of this policy are: †¢ Besides registration of capital there is no restriction on remittances of capital abroad. †¢ Amounts paid out to foreign shareholders and partners are not taxed. †¢ Repatriation of capital is also tax exempt, subject to the amount not exceeding the original investment. †¢ Foreign investors may invest in Brazilian financial institutions subject to a few conditions. Brazil’s Trade Policy: According to a WTO policy document on Brazil, â€Å"Brazil considers the multilateral trading system fundamental to attaining its development goals based on sustainable and socially inclusive economic growth†. Brazil practices this goal by being an active participant in various international and regional forums like the WTO, BRICS, and the MERCOSUR. These multi-country organizations aim to facilitate trade between member countries and also help in achieving common goals. In Brazil the Chamber of Foreign Trade (CAMEX) is responsible for formulating and implementing the trade policy. All matters related to trade must be referred to the CAMEX before being implemented. Policy on imports: Brazil just like any other county places certain laws and regulations intended to deter the entry of illegal and dangerous material into its