Tom Hanson is a Commercial Officer for Commercial Service Brazil, posted in São Paulo.
It’s World Trade Month and the Commercial Service (CS) Brazil is highlighting the Commercial Aircraft and Civil Aviation sectors, one of the top industry prospects for U.S. exporters in Brazil. This is the first of several blog posts that will highlight market opportunities in Brazil for U.S. exporters.
As part of World Trade Month activities, CS Brazil organized a Roadshow to Rio and Sao Paulo that connected such U.S. technology companies as Honeywell, Rockwell Collins and L-3 and several new-to-market exporters with airport administrators throughout Brazil. This roadshow built upon the U.S.-Brazil Aviation Partnership, which is administered by the USTDA. Through the Government of Brazil’s infrastructure build out initiative, airport concessions, modernizations, and expansions are ongoing at all of the country’s international airports, with plans underway to expand and improve more than 270 regional airports. The government’s Public-Private Partnership regulations allow for U.S. providers to align with Brazilian companies to win business.
Aircraft Design and Construction is one of Brazil’s top three industrial sectors, led by Brazilian manufacturer Embraer. The worldwide trend of airlines replacing larger jets with smaller designs that can fly more efficiently should help sustain Embraer’s role as leader in this market segment, thereby presenting good opportunities to U.S. aircraft parts and component manufacturers. Embraer imports about 50 percent of its components from U.S. suppliers. As Embraer climbs in world rankings, the U.S. benefits in other ways, too: the company now operates facilities in Florida and Arizona, and most recently won its first U.S. defense contract.
Brazil has a large and diversified economy that offers U.S. companies many opportunities to partner and to export their goods and services, and U.S. exports are increasing rapidly. Doing business in Brazil requires intimate knowledge of the local environment, including both the direct as well as the indirect costs of doing business in Brazil (referred to as “Custo Brasil”). Such costs are often related to distribution, government procedures, employee benefits, environmental laws, and a complex tax structure.
The team at CS Brazil is standing by to guide U.S. exporters on uncovering new markets in this high-flying Aviation Best Prospect sector. For more information, please review CS Brazil’s Country Commercial Guide.