In June, the Brazilian government announced the launch of two major programs to encourage growth: the Logistics Investment Program and the National Export Plan, both for the 2015-2018 timeframe.
The Logistics Investment Program was launched on June 9 by the President Dilma Rousseff and focuses on supporting the growth of Brazil through investments in infrastructure. For this purpose, the Government expects to increase the competitiveness of the economy, improve efficiency in agricultural production, reduce logistics costs and meet the demands of domestic and international travel flow. To do this, they have projected 198,400 million reals of investment in roads (66,100 MR$), railways (84,400 MR$), ports (37,000MR $) and airports ($ 8,500MR) through concessions.
The government has also designed new strategies for financing investments giving more weight to private banks, together with the National Development Bank (BNDES).
Furthermore, on June 24th, the National Export Plan 2015-2018 was released. The recent fall in the exchange rate of the Brazilian real against the dollar has allowed a decline in export price of products, opening new market opportunities for companies located in Brazil. With the new Export Plan, the government wants to position Brazil in the global value chain, creating employment and income, and improving competitiveness of Brazilian companies abroad.
With these objectives, the Plan claim (1) to improve access to markets through new negotiations and agreements, (2) to strength their trade promotion in key markets like Germany, France, Poland and UK, (3) to facilitate the administrative and customs processes through projects such as the Single Foreign Trade Portal, (4) to enhance financing and export guarantees, and (5) to improve the tax systems of export support.