(Last updated: 7 June 2011)

Current business situation

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Brazil. This is regularly updated, and should be checked before planning travel.

Country facts

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

Brazil is the largest economy in Latin America, and is characterised by large agricultural, mining, manufacturing and services sectors.

For the latest key economic indicators and statistics please see the Department of Foreign Affairs and Trade country economic fact sheet.

Brazil has undergone a significant move towards modernisation and a reduced role for the government in the economy. This change was driven principally by a more liberal trade regime, deregulation and privatisation of state companies.

São Paulo is the most developed state financially and industrially, and accounts for 45 per cent of Brazil’s GDP. Following São Paulo, the next most developed states in Brazil are also in the south and southeast regions, and include: Rio Grande do Sul, Santa Catarina, Paraná, Rio de Janeiro, Minas Gerais.

Political climate

Brazil is a federal republic comprising 26 states and a federal district (Brasilia). The political climate is stable, with a government that welcomes foreign investments. The three tiers of government include Federal, State, and there are over 5500 municipal councils.

Trade relations and statistics

Brazil, Argentina, Paraguay and Uruguay have formed the Southern Cone Common Market (known as 'Mercosul' in Portuguese). Chile and Bolivia have also special trade agreements with the member countries. Under the treaty agreement, tariffs are being lowered gradually to reach zero on practically all products.

Mercosul represents a market of almost 200 million people with a combined GDP of more than US$1 trillion. Brazil accounts for 67 per cent of all goods and services produced within Mercosul.

Brazil also belongs to the World Trade Organisation and is holding conversations to integrate the Americas Free Trade Zone.

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.