Top Sectors for American Investment in Brazil

The map depicts the investments between the two countries from the year 2000 to the beginning of 2015. The findings, which are detailed on the subsequent pages, suggest a mature partnership that is founded on the reciprocal interests of Brazil and the United States in a diverse array of sectors, including those that are labor-intensive and those that are centered on the knowledge economy.. A focus on the sustainability of relationships was identified on both sides, with a disengagement from what may appear positive in the near term and a prioritization of what is essential in solid, long-term relations, such as the one between the two countries. For Apex-Brasil, reports such as this visualization are routine work instruments that delineate the potential paths for private sector investments. In this regard, the Agency's actions remain perpetually centered on the United States. Over the past five years, Apex-Brasil has organized over 650 trade WELCOME and investment promotion events in the United States in collaboration with Brazilian industry associations. It has established two offices throughout the nation. It provides support for initiatives in 56 sectors that prioritize the U.S. market.

The United States is the focal point of the Agency's outreach efforts in the investment sector

With a particular emphasis on the attraction of capital and technology in the fields of renewable energy, smart infrastructure, research and development, and, most recently, equity investments. We have received support for this work from SelectUSA, a U.S. government agency with which we signed a Memorandum of Understanding in 2014. In addition to illustrating the significance of these bilateral investments for Brazil and the United States, the figures presented here also suggest a strong dedication to the mutual advancement of the two largest economies in the Americas. We are of the opinion that the key to success is the ability to capitalize on opportunities and develop a strategic approach. Such opportunities are numerous in Brazil and the United States, and we must not overlook them. This mapping is a reflection of this situation and has the potential to stimulate the economic development of both countries through the establishment of new ventures. A growing number of Brazilian companies are expanding internationally to improve their competitiveness, establish an export platform, or capitalize on economies of scale, among other reasons, all of which are related to the new logics of global value chains. The United States may be regarded as one of the primary partners of Brazilian industry in response to this challenge. The publication "Brazil – US Investments Map," which is the outcome of a successful partnership between CNI, Apex-Brasil, and the Brazil Industries Coalition (BIC), offers an analysis of trade and investment flows, demonstrating the strategic importance of the American market to Brazilian industry. The United States is the primary destination for Brazilian manufactured products in terms of exports. The significance of Brazilian investment in the United States is illustrated by a comparative analysis of emerging economies in terms of the sums and employment generated. This publication confirms that we are engaged in a two-way process through the use of quantitative and qualitative data.

Brazilian investments in the United States

Brazilian investments in the United States are primarily concentrated in sectors such as aerospace, food, renewable energy, pharmaceutics, construction materials, metals, oil & gas, chemicals, software, and textiles, while the United States is one of the primary investors in Brazil, particularly in research and development. It is imperative to consider Brazil's potential foreign presence. Consequently, it is imperative to establish policies that are in accordance with this new reality in order to facilitate international trade and industrial production. We anticipate that the Brazil-US Investments Map will aid in the formulation of such policies.

T Throughout history, the United States has been a significant commerce and trade partner of Brazil. Brazil is the Southern Hemisphere nation with which the United States maintains the greatest trade surplus, as indicated by data from the U.S. Treasury. On the Brazilian side, the United States is its second-largest export market and is consistently its largest or second-largest source of imports. Between 2009 and 2014, bilateral trade flows between the two countries increased by 74%, reaching a total of US$62 billion. This accounted for approximately 15% of Brazil's total trade flows in 2014. Brazil's relationship with the American market is also of significant importance in the investment sector. Brazilian companies' assets in the United States increased by 221% between 2007 and 2012, culminating in a total of US$93.6 billion in the most recent year evaluated. Brazilian assets generate nearly twice as many jobs as those of other countries in terms of employment generation. This is due to the fact that the capital invested by Brazil in the United States is more labor-intensive than that of other countries investing in the U.S. market. Brazilian foreign direct investment (FDI) into the United States has experienced substantial development, transitioning from a deficit of US$282 million in the 2001-2003 period to a surplus of approximately US$5.8 billion in 2010-2012. During the period under examination, these quantities exceeded investment flows into the United States from other emerging economies, including Mexico, China, India, Turkey, and South Africa.

Between 2007 and 2012, the total stock of assets in the Brazilian market held by American corporations increased by 37% to US$283 billion, accounting for 53% of all U.S. assets in South America

This information pertains to U.S. investment in Brazil. In strategic sectors such as telecommunications, metals, auto assembly, financial services, renewable energy, and oil & gas, these investments generated approximately 600,000 employment in Brazil. The primary vectors in this significant relationship are summarized in the subsequent table: the extensive Brazilian participation in the economies of various U.S. states, whether as recipients of Brazilian FDI or sources of FDI for our country; the strong presence and significant growth of Brazilian assets in the USA and of American assets in Brazil; and the diversification of the sectors affected by these investments in both countries. There are two opposing arguments in international debates regarding the impact of FDI on the economies of emerging countries: 1) that such activity may reduce exports and employment, and 2) that it strengthens the economy of the investing country, thereby helping to attract new investments and boost exports. There is no evidence, according to recent analyses of Brazilian multinationals, that investing abroad results in a decrease in exports, employment, or domestic investment. However, Brazilian multinationals have demonstrated superior industrial export performance in comparison to other domestic companies, even during the most recent international crisis. Furthermore, there is evidence that the decision to invest abroad enables the company to increase exports, which are challenged by competitors from third countries, strengthens its position in the domestic Brazilian market, and facilitates exports from Brazil to foreign subsidiaries.