Message from Ambassadors

Outlook for
the Brazilian Economyand Brazil-Japan Relations
André Corrêa do Lago
Ambassador of Brazil to Japan
H.E. Mr. André Corrêa do Lago was appointed as ambassador to Japan in November 2013. He has a profound knowledge of architecture and with his great initiative
the “2014: Embassy of Brazil Football Pavilion” was constructed in front of the embassy building to enjoy World Cup as well as to introduce Brazilian food and culture.

I

t’s a pleasure to address the readers of “Kaigai Toyushi”
on the outlook for the Brazilian economy, investment
opportunities in my country and economic relations between Brazil and Japan.
Brazil is very proud for having recently held the World Cup
which, by many accounts, was a success in terms of organization, public attendance, goals scored and sporting
drama. We are obviously very sorry Japan and Brazil did
not go as far as we hoped. Watched by over 3 billion people
around the planet, the month long tournament displayed
the amazing experience that is Brazil, the contrasting allureof its regions (and temperature!), as well as the diversity
and friendliness of its people. An estimated 1 million foreigners traveled through Brazil during the World Cup
coming into contact with Brazilian culture and lifestyle.
Whatever the outcome of the sports competition, we hope
the World Cup has helped to bring together people fromacross the world in celebrating what is truly one of the finest and most popular sporting events.
The World Cup will contribute to the Brazilian economy asa result of the private and public investments in infrastructure (amounting to R$ 25.6 billion), increased consumption
and activity in the services sector. Brazilians are fullyaware that the infrastructure upgrading and other positive
impacts of the event, however significant, are part of a longterm and unfinished effort to tackle the country’s development needs. It is important to remember that the entire
budget of the sporting event corresponds to a single monthof government spending on education.

Over the last decade, Brazil joined the world’s largest
economies while achieving more inclusive growththan in the past. Our economy benefited from a very strong
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2014.9performance in the period — rising more than 44% in realterms — in which some 35 million people were pulled outof poverty. A significant part of this expansion, nonetheless, occurred prior to the crisis of 2008/09 while thecountry has faced difficulties sustaining the previous highgrowth rates. In 2013, the 2.3% growth of Brazilian GDP,
though reasonable in the context of the global economy,
was below what people have come to expect from anemerging market such as Brazil.
Explanations for the recent slowdown have highlighted that
increased consumption — linked to rising employment andsalary and credit expansion — needs to be complemented
by other sources of growth. That is why, now and in thenear future, as domestic demand rebalances, investment
will play an ever greater role in determining the path of theBrazilian economy. The government is pressing ahead with
the nationwide effort to modernize infrastructure and implement large-scale development projects, including
construction of transportation infrastructure, power grids
and telecommunication networks. It is essential that private
investors, both national and foreign, be engaged in this process as partners. The continued high flows of foreign directinvestment to Brazil, which have surged since 2009, reveal
the attractiveness of business opportunities and express
confidence in the country’s prospects.

Brazil and Japan enjoy formidable economic synergies
and should maximize them, taking the partnership toa higher level of importance. Cooperation between theworld’s second largest developing economy and the second
advanced economy makes sense. The focus on development of infrastructure, technology and industry in Brazil
perfectly matches Japan’s strengths and expertise. In thisregard, the revitalization of the Japanese economy underPrime Minister Shinzo Abe is a very auspicious develop-ブラジル造船・海洋構造物 特集
ment as it increases the confidence of Japanese companies
to invest both at home and abroad.
The alliances celebrated in the last two years between Brazilian and Japanese shipbuilding companies exemplify thestrategic and mutually beneficial relations that can be developed between our two countries. Encouraged by thediscovery of massive, off-shore oil reserves since 2007, shipbuilding and related fields are experiencing a renaissance inBrazil. These partnerships assure critical technological capacity for shipbuilding and bring improvements tomanagement and industrial engineering. Our joint efforts arepaving the way for the emergence of a world class industry
in Brazil with a very positive outlook for the foreseeable future.

PERNAMBUCO- Estaleiro Atlântico Sul (EAS)/IHI, JMU, JGC
BAHIA- Estaleiro Enseada do Paraguaçu (EEP) /KHIRIO GRANDE DO SUL- ECOVIX/MHI, Imabari, Namura,Oshima, Mitsubishi- Estaleiros do Brasil (EBR)/TOYO

Brazilian and Japanese shipbuilding companiesWe need to inspire ourselves in these examples andexplore new ideas to both broaden and deepen economic bilateral relations. The official visit of Prime
Minister Abe to Brazil in early August for meetings withPresident Dilma Rousseff will enable discussions on further partnership possibilities. Other opportunities for
institutional dialogue are the very important annual meetings — currently under planning — between the Ministry
for Development, Industry and Trade (MDIC) and the Ministry of Economy, Trade and Industry (METI), as well as
the joint meeting of the Japan-Brazil Cooperation Committee, organized every year by the Confederation of National
Industry (CNI) and Keidanren.
Besides these initiatives, a group of prestigious businessleaders (“Wise Men”) from both countries will meet in Riode Janeiro at the end of July to discuss priority sectors fordevelopment of bilateral relations and later in Brasilia relay
their recommendations to both President Dilma Rousseff
and Prime Minister Shinzo Abe.
It’s my hope that not only in these discussions, but in otherinteractions as well, concerned parties — governments,NYK, “K” LINE, MITSUI &CO. and JDC are participating in an ownershipconsortium for an ultra-deepwater drillship“Etesco Takatsugu J” being used in the provisionof charter services toPetrobras.

private enterprises, policy experts, among others — contribute with their suggestions on how best to promote
closer economic ties between our two countries. We need
to be bold and ambitious in our thoughts and proposals
since conditions for the partnership are very favorable, andthe potential for our relations, limitless.
＊ This message was contributed in mid- July 2014.

JOI 特別会員『駐日ブラジル大使館 通商・投資部』のご紹介
ブラジル大使館

通商・投資部では、ブラジルへの投資、ブラジルからの輸入に関心のある日本企業に対し、４名のスペシャリスト（日本語 / ポルトガル語のバイリンガル）が全面的なサポートを提供いたします。ブラジル外務省のウェブサイト
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駐日ブラジル大使館 通商・投資部
TEL: 03-3405-6838 E-Mail: comercial.toquio@itamaraty.gov.br

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