Brazil hungry for SA investment

Brazil hopes a new trade agreement, which will lower import tariffs, will boost SA investment in that country. A preferential trade agreement that will promote trade between South Africa and Brazil will, it is hoped, be in force by next year.

Negotiations about an agreement between the Southern African Customs Union (Sacu), with South Africa as member, and Mercosur, with Brazil as member, began in 2002. These will to lead to lower tariffs for about 1 000 products, including furniture, toys and certain agricultural products.

The agreement between Sacu and Mercosur is, however, very limited when compared to South Africa's agreement with the European Union (EU), which covers about 6 500 tariff groups.

President Jacob Zuma and various highly placed politicians paid an official state visit to Brazil this month.

This week in Johannesburg Josias Albuquerque, head of the trade, services and tourism federation Pernambuco in the north-east of Brazil, said, during a marketing campaign for the Pernambuco, that the province needed South African investments, especially, in the tourism industry.

Recife, the capital of Pernambuco, is one of the host cities for the 2014 World Cup soccer tournament which will be presented by Brazil. It is regarded as one of the top 50 emerging cities in developing countries.

Foreign companies investing in Brazil qualify for tax rebates and do not need to have Brazilian partners, Albuquerque declared.

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