A. Country Data 1. Profile - Population 153 million inhabitants. - Population Growth Rate (percent) 1.93 percent annually. - Religion(s) Predominantly Roman Catholic, with growing Protestant influence. - Government System Democratic, Federative Republic, Presidential system, with executive branch agencies, two house congress (upper - Senate, lower - Chamber of Deputies), and judicial branch. - Languages Portuguese - Work week Monday - Friday 8:30 or 9:00 am to 5:30 or 6:00 pm; a one to two hour lunch. Some factories function half day Saturdays. 2. Domestic Economy 1991 1992 1993 1994 GDP Current USD billions) 1/ 418 425 456 466/2 GDP Real Growth Rate (%) 1.1 -0.9 5.0 2.9/2 GDP Per Capita (Current USD) 1/ 2854 2848 2998 3007/2 Federal Government Nominal Spending as % of GDP 6.6 15.8 20.7 25.4/2 Annual Inflation (percent) 3/ 475 1,149 2,489 1,171/2 Unemployment Rate Urban (%) 8/ 4.2 4.5 4.4 4.6/2 Sao Paulo (%)9/ 10.5 14.4 14.2 14.9/2 Foreign Exchange Reserves 9,406 23,754 32,211 38,000/2 (USD Millions) Annual Avg. Exchange Rate (USD 1.00) 5/ 0.40866 4.55115 90.222 1.00/2/10 Foreign Debt (USD million) 123,811 133,584 127,000 122,000/2 Debt Services/Exports(%) 27.3 20.3 21.8 23.2/2 U.S. Bilateral Assistance none none none none Notes: 1/ Exchange rates unevenly affect dollar values. 2/ Forecast according to the GOB responsible agency. 3/ Inflation as measured by the national consumer price index (INPC) produced by the Brazilian Institute of Geography and Statistics (IBGE). 5/ Cruzeiros reais (CR) per US dollar (USD). 8/ Percent of workforce as per IBGE (average of six major metropolitan regions). 9/ Percent of workforce as per the State Secretariat of Statistics and Planning (SEADE) - (average of Sao Paulo metropolitan area). 10/ (CR$ Cruzeiros Reais for: 1991/1993) (R$ Reais for 1994) 3. Trade In US$ Millions 1993 1994(Est) 1995(Est.) Total Brazilian Exports 38,783 44,216 50,627 Total Brazilian Imports 25,711 31,090 37,681 Exports to U.S. 7,878 9,020 10,327 Imports from U.S. 5,968 7,233 8,766 U.S. share of host country imports (percent) 23.2 23.2 23.2 Imports of manufactured goods: Total (from world) 24,024 27,430 37,403 From the U.S. 4,592 5,607 8,183 U.S. share of manufactured imports (percent) 19.1 20.4 21.9 Manuf. goods trade balance with U.S. 1,034 2,147 2,324 Projected average annual growth rate from world through 1996 (20.8 percent) Projected average annual growth rate from U.S. through 1996 (21 percent) Imports of Agricultural Goods - 1993 Total (from world): USD 3.4 billion From the U.S.: USD 195 million U.S. Share of Agricultural Imports: 6 percent Agricultural Goods Trade Balance with U.S.: USD 1.2 billion Trade Balance with Three Leading Partners in 1993 Asia - USD 2.3 billion European Union - USD 1.8 million USA - USD 1.2 billion Mercosul - USD 1.0 billion Principal U.S. Exports (top 5 by 4-digit tariff item) 1. Cotton (5201) USD 86 million. 2. Wheat (10019) USD 22 million. 3. Poultry (0105) USD 8.8 million. 4. Corn (1005) USD 7.2 million. 5. Inedible Tallow USD 6 million. Principal U.S. Imports (top 5 by 4-digit tariff item) 1. Tobacco (2401) USD 377 million. 2. Orange juice (2009) USD 222 million. 3. Coffee (0901) USD 216 million. 4. Brazil & Cashew Nuts (0801) USD 104 million. 5. Beef & Veal (Frozen Chilled) (1602) USD 74 million. 4. Investment Brazilian Investment Abroad as of June 30, 1992 (USD Millions) AMOUNT PERCENT COUNTRY (USD MILLIONS) OF TOTAL ------- -------------- -------- Cayman Islands 1,988.0 48.03 United States 1,064.0 25.71 United Kingdom 234.0 5.65 Portugal 136.0 3.29 Argentina 87.0 2.10 Netherlands Antilles 79.0 1.91 Paraguay 58.0 1.40 Chile 50.0 1.20 Germany 48.0 1.16 Bermuda 43.0 1.04 Bahamas 38.0 0.92 Uruguay 36.0 0.87 Other 278.0 6.72 ------- ------ TOTAL 4,139.0 100.00 Source: Central Bank of Brazil/FIRCE FOREIGN DIRECT INVESTMENT STATISTICS FDI Stock by Country in Brazil as of 6/30/93 (USD Millions) COUNTRY AMOUNT PERCENTAGE ------- ------ ---------- United States 13,609.0 32.52 Germany 6,056.0 14.47 Japan 4,002.0 9.56 Switzerland 1,670.0 3.99 United Kingdom 2,261.0 5.40 Canada 1,698.0 4.06 France 2,477.0 5.92 Italy 2,293.0 5.48 The Netherlands 1,991.0 4.76 Cayman Islands 642.0 1.53 Panama 612.0 1.46 Sweden 583.0 3.39 Belgium 449.0 1.07 Other 3,510.0 8.39 -------- ------ TOTAL 41,853.0 100.00 FDI Stock by Sector in Brazil as of 6/30/93 (USD Millions) SECTOR INVESTMT/REINVESTMT TOTAL PERCENTAGE 1. Agriculture 167.3 154.2 321.5 0.76 2. Cattle 113.9 0.5 114.4 0.27 3. Fisheries 10.7 0 10.7 0.02 4. Mineral Extraction 733.5 89.8 823.3 1.96 5. Manufacturing 18,057.7 8,718.3 26,776.1 64.00 5.1 Non-Metallic Minerals 295.2 273.0 568.2 1.35 5.2 Metallurgy 2,342.3 691.1 3,033.4 7.24 5.3 Machinery 2,156.8 658.2 2,815.1 6.72 5.4 Electrical- Comm Equip 2,186.6 969.5 3,156.2 7.54 5.5 Transp Equip 3,266.2 1,477.2 4,743.4 11.33 5.6 Wood 129.2 121.4 250.6 0.59 5.7 Pulp/Paper 423.9 310.5 734.3 1.75 5.8 Rubber 533.0 367.3 900.3 2.15 5.9 Chemicals 3,269.1 1,821.6 5,090.7 12.16 5.10 Pharma- ceuticals 1,240.4 471.9 1,712.3 4.09 5.11 Textiles 326.8 248.2 574.9 1.37 5.12 Apparel & Footwear 236.0 49.7 285.7 0.68 5.13 Food Products 788.3 1,022.4 1,811.3 4.32 5.14 Beverage 170.5 18.3 188.9 0.45 5.15 Tobacco 166.8 78.8 245.6 0.58 5.16 Graphic Arts Editorial 49.0 36.9 85.9 0.20 5.17 Other MFG 477.6 101.8 579.4 1.48 6. Public Utilities Services 52.2 10.5 62.7 0.14 7. Other Svcs 10,653.5 1,922.9 12,576.4 30.04 7.1 Commercial Banks 1,076.1 474.1 1,550.2 3.70 7.2 General Trade Import/Exp. 1,181.4 317.8 1,499.2 3.58 7.3 Property Equity Mgmt 3,139.7 987.5 4,127.2 9.86 7.4 Other 5,256.3 143.5 5,399.8 12.90 8. Other Sectors 985.5 182.6 1,168.2 2.79 ------- -------- -------- ------ TOTAL: 30,774.3 11,078.8 41,853.1 100.00 U.S. FDI Flow in Brazil January 1985 - June 1993 (USD Millions) YEAR INVESTMENT REINVESTMENT TOTAL End 1984 Stock 5,824.3 2,843.4 8,667.7 1985 167.1 (22.0) 145.1 1986 (125.3) (47.4) (172.8) 1987 638.9 127.5 766.4 1988 1,080.1 172.3 1,252.4 1989 327.4 78.4 405.8 1990 118.2 21.8 140.0 1991 406.6 47.1 453.7 1992 1,307.3 (113.3) 1,194.0 1993 (Jan-Jun) 756.9 (0.4) 756.5 -------- -------- -------- TOTAL STOCK 10,501.5 3,107.4 13,608.8