Category: Geopolitics

Information about international affairs that can impact the Brazilian economy.

Pernambuco exports down 30% due to Argentine crisis

Exports from Pernambuco fell by 30.3% in 2019 compared to 2018. Last year, the Brazilian state sold $1.3 billion, compared with $2 billion in 2018. The drop was steep compared to the 6,4% in national exports. The main reason would be the dependence of the local market on Argentina, the main international customer for Pernambuco products.

Brazil welcomes USA support for OECD membership

Brazilian government has welcomed the United States’ change of stance to support Brazil’s bid to join the Organization for Economic Cooperation and Development (OECD) ahead of Argentina. The decision shows the construction of a “solid partnership” in the Brazil-United States relationship,” capable of generating short, medium and long term” results, Foreign Minister Ernesto Araújo published in a social network.

Petrobras reduces price of gasoline and diesel in refineries

Petrobras has confirmed a 3% reduction in the price of diesel and gasoline for refineries from today. President of the National Federation of Trade in Fuels and Lubricants (Fecombustíveis), Paulo Miranda Soares, said the reduction was expected since the price of oil barrel returned to levels previous to the tension between Iran and the USA. He stressed, however, that consumers will have to wait two weeks until distributors manage the inventory.

Chinese industrial group to open bank in Brazil

Xuzhou Construction Machinery Group (XCMG) will open a bank in the Brazilian state of Minas Gerais in the first quarter of 2020. Banco XCMG S.A. will be the first foreign financial institution launched by a Chinese industry group and headquartered in Pouso Alegre, southern Minas Gerais, where the Chinese group has been operating an industrial park since 2015.

EDPR bags solar PPA for 66 MW in Brazil

EDP Renovaveis SA (ELI:EDPR) has secured a power purchase agreement (PPA) for the output of the 66-MW Lagoa solar park it plans to build in the Brazilian state of Paraiba, which will start generating power in 2022. The Madrid-based company with Portuguese roots says it has now secured 5.3 GW worth of off-take deals out of around 7 GW of its global capacity planned for installation between 2019 and 2022.

Brazil 5G auction delay dents country’s tech ambitions

Brazil’s auction of coveted 5G spectrum originally scheduled for March has been postponed until the end of year, amid a dispute at Anatel, the nation’s telecoms regulator, over the rules for the auction. Although the delay may help Brasília avert a looming stand-off with the US over whether Huawei play a role, it is a setback to the country’s technological ambitions that could cost the state billions in lost tax revenues and investments.

Bolsonaro pushes plans for mining in Amazonian indigenous lands

Mining and Energy Minister Bento Albuquerque told a group of 12 European diplomats that Brazil’s government was pushing ahead with plans to allow mining on indigenous reserves. He said that “significant leadership” from native communities had asked for the opportunity to mine on their lands. President Jair Bolsonaro will send a bill to Congress later this month to regulate the activity.

Singapore sovereign fund and Pátria win largest road concession in Brazil

A consortium formed by Brazilian private equity firm Pátria Investimentos SA and Singapore’s sovereign wealth fund GIC Pte won the auction for the Piracicaba-Panorama road lot (called PiPa) in the state of Sao Paulo, Brazil’s richest. The competition encompassed 218 kilometres currently operated by the Arteris Group’s Centrovias concessionaire, whose contract expires in the first quarter of this year, as well as 1,055 kilometres operated by DER-SP.