Exporting French Wine to Brazil

George Al Moukar, Habib Abou Saleh,

Aurelien Foure, Rodolfo Mitchell,

Rafael Mohrez

Brazil in Numbers

Brazil's monetary policy is aimed at curbing inflation and not easing currency volatility

Monetary policy: Selic 11% Vs Current inflation 6%Inflation forecasted at 6.24% for the next 12 months.

Monetary Policy

Monetary Policy

Presidential election in October 2014 (Mrs Dilma Roussef)

High uncertainty for future investments

Government spending is increasing however the majority of the investments are related with social programs.

Fiscal Policy

Brazil Trade Balance: Imports

Brazil Trade Balance: Imports

There is a risk of currency depreciation which makes imports from foreign countries more expensive Brazil is moving towards managed or “dirty”

floating systems.

Foreign Exchange Policy

Propositions to hinder the expansion of imported wine:

Tariffs ( 27% to 55%) and Quotas

Imposing a minimum price

Portuguese front labels compulsory

The EU, as the main supplier for wine imports in Brazil, continued to insist on the G20 commitments.

Brazil Back off her proposition

Wine Import and Protectionism in Brazil

Assessment of Opportunities and Risks

OPPORTUNITIES

Growing GDP per capita

Decreasing unemployment rate

Increasing population

Commitment from Central bank to decrease inflation

Increasing governmental expenditures

Strong trading relationship between Brazil and E.U

Dirty floating system

RISKS

High inflation rate

Political instability

Currency depreciation

Possible future protectionism policies