December 15, 2011
Spotlight on Brazil: Study Confirms Huge
Market Potential for Atlantic Canadian Companies
The Honourable Bernard Valcourt, Minister of State for the Atlantic Canada Opportunities Agency (ACOA) and La Francophonie, announced today the publication of A Study to Identify Key Sectors of Opportunity for Atlantic Canadian Firms in Brazil. Prepared for the Canada-Atlantic Provinces Agreement on International Business (IBDA), the study confirms the potential of the Brazilian market and possible opportunities for Atlantic Canadian businesses. The publication can be downloaded at www.acoa-apeca.gc.ca/.
“Since taking office in 2006, our government has been aggressively expanding commercial relations with various global markets, including Brazil, to create jobs and economic benefits here at home,” said Minister Valcourt. “Our efforts are generating positive results and we are maximizing opportunities for our entrepreneurs. Our investments are already paying off through the creation of new business opportunities, new investments, and increased global competitiveness.”
“Trade is a large, very significant component of Newfoundland and Labrador’s economy,” said the Honourable Keith Hutchings, Minister of Innovation, Business and Rural Development. “To continue to grow and prosper as a province, the Provincial Government is firmly focused on increasing export opportunities for local businesses in emerging markets such as Brazil. With greater success, businesses can expand, create more employment opportunities, and contribute more revenues to the provincial economy.”
The world economy is more interconnected than ever, which provides small and medium-sized Atlantic Canadian businesses with new opportunities for expanding into international markets.
“Virtual Marine Technology has been actively pursuing opportunities in the Brazilian defence and offshore markets for the past year,” said Captain Anthony Patterson, President and Chief Executive Officer of Virtual Marine Technology. “We view our simulation-based training systems as a key enabler in their strategy to rapidly mobilize labour while still maintaining high safety standards. During a recent trade development mission to Brazil, we were able to significantly solidify and expand upon opportunities for our company in the high-growth Brazilian marketplace.”
Renna Fowler of Grand Bank-based Dynamic Air Shelters shares Captain Patterson’s enthusiasm for the Brazilian market.
“We recognize that to be successful in any new market we need to make a long-term commitment and build relationships with local people and businesses,” said Ms. Fowler. “Brazil is an exciting market that offers significant potential for our company and for Newfoundland and Labrador.”
The report examined nine well established sectors in Atlantic Canada and results show that the Brazilian market offers export opportunities for each one of them. The sectors looked at are: information and communications technologies, environment technologies, oil and gas equipment and services, life sciences and biotechnology, ocean technology, aerospace, defence and security, mining, education, and food/seafood.
In 2010, bilateral trade between Canada and Brazil reached $5.9 billion. That same year, Brazil was Canada’s eighth largest foreign investor with $13.5 billion in cumulative investment. Brazil was also the 11th largest recipient of Canadian direct investment abroad, with a total of $9.7 billion in cumulative investment. Exports from Atlantic Canada to Brazil totalled $164 million in 2010.
The IBDA is a federal/provincial agreement between the Government of Canada and the four Provincial Governments in Atlantic Canada, and is designed to help Atlantic Canadian businesses enter, explore and succeed in international markets. The IBDA is the leading component of a pan Atlantic effort to foster business relations, attract foreign investment and nurture technological co-operation.
Since the launch of the agreement 17 years ago, IBDA funding has helped 200 Atlantic Canadian companies begin to export. It has helped more than 300 exporting companies define and enter new markets and has helped more than 450 others increase their sales and presence in existing markets.
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Media contacts:
| Andrea Richer Press Secretary Office of the Honourable Bernard Valcourt 613-790-3637 |
Scott Barfoot Director of Communications Department of Innovation, Business and Rural Development 709-729-4570, 690-6290 scottbarfoot@gov.nl.ca |
| Robert Bourgeois Senior Communications Officer Atlantic Canada Opportunities Agency 506-851-6394 |
Anthony Patterson President and CEO Virtual Marine Technology Inc anthony.patterson@vmtechnology.ca 709-738-6306 |
| Renna Fowler Business Development Dynamic Air Shelters Ltd 709-740-0915 |
BACKGROUNDER
A Study to Identify Key Sectors of Opportunity for Atlantic Canadian Firms
in Brazil
The study confirms the potential for increased trade between Atlantic Canada and Brazil in nine sectors for which there is recognized expertise in the region, and for which there could be demand in Brazil. The study also gives advice on establishing contacts and conducting business in Brazil. It includes information on the Brazilian tax structure, import regulations and government incentives.
Highlights of the study include:
Information and Communications Technologies: There are opportunities in Brazil to provide technological solutions in various areas, including banking; security and privacy software/technology; Internet and data security; eLearning and distance education; as well as gaming and mobile applications. Atlantic Canadian companies have the expertise and experience to deliver solutions in all of these areas.
Environmental Technologies: Atlantic Canadian firms are well positioned to seize opportunities in the Brazilian market for water and wastewater management, recycling of waste, site remediation and renewable energy technology.
Oil and Gas Equipment and Services: There are tremendous opportunities for Atlantic Canadian companies to supply equipment and services to the Brazilian oil and gas equipment and services sector. Many of these opportunities are with Petrobras, a semi-public energy company based in Rio de Janeiro. Others are with foreign oil and gas operators.
Life Sciences and Biotechnology: In the life sciences and biotechnology sector, opportunities may exist for technology transfers, specifically within the generic drug and forest protection markets. Nutraceuticals are also in high demand in Brazil. There is a shortage of skilled workers in the biotechnology industry, which could provide opportunities for training and education.
Ocean Technology: Many of the opportunities available in the ocean technologies industry in Brazil are aligned with the strengths of Atlantic Canadian companies. These include acoustic systems and equipments, imaging and simulation, marine communications, instrumentation and information systems.
Aerospace, Defence and Security: There are two main opportunities in Brazil’s Aerospace, Defence and Security sector that could interest Atlantic Canadian companies: one is for the provision of parts, components and maintenance for the overhaul of civil and military aircrafts; the other is for the provision of technology, equipment and parts for internal security.
Mining: The mining sector offers many opportunities for Atlantic Canadian firms. Many Canadian mining companies already have a presence in Brazil. Also, Vale Canada Limited, a subsidiary of the Brazilian mining company Vale, has mining sites in Newfoundland and Labrador. These existing relationships could easily be leveraged to help Atlantic Canadian firms enter the Brazilian market.
Education: The opportunities in the Brazilian education market include: English language courses; higher education; vocational and executive training and distance learning. There is also a need for contemporary curriculum design, content creation, technologies for eLearning and virtual classrooms. Atlantic Canadian education sector firms have strengths in all of these areas and are recognized globally for providing value for money.
Food/ Seafood: The Brazilian food/seafood sector is poised to grow, providing Atlantic Canadian companies with various opportunities. Products that are expected to be in demand include potatoes, vegetables and fish, particularly salt cod.
2011 12 15 10:30 a.m.