Monster Media 1993 #2/Image.iso/database/brazilt.zip/MARKET.TXT

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BRAZIL TRADE DIRECTORY ON DISK



BRAZIL - COUNTRY MARKETING PLAN FY'93 -
SUMMARY


  Country Data
  Best Prospects
  Commercial Environment
  Financing Environment
  Trade and Investment Issues/Barriers
  Market Analysis Plan
  Trade Event Plan




                       BRAZIL:  COUNTRY MARKETING PLAN


                              FISCAL YEAR 1993



Brasilia, August, 1992





                              Table of Contents


Part

     I. Country Data

      A. Profile
      B. Domestic economy
      C. Trade
      D. Investment

     II. Best Prospects

     III. Commercial Environment

      A. Political factors
      B. Economic factors
      C. Commercial factors
      D. Social/cultural factors

     IV. Financing Environment

     V. Trade and Investment Issues/Barriers

      A. Major trade barriers
      B. Major investment barriers

     VI. Market Analisys Plan

      A. Industry subsector analyses (ISAs)
      B. Trade event market studies
      C. Scheduled periodic reports
      D. Other reporting and research

     VII. Trade Event Plan



I. Country Data

A. Profile:

Brazil is the largest and most industrialized nation of the Latin American
Republics, with an area of 3,287,000 square miles. It is the fifth largest
nation in the world, about the same size as the continental United States.
The 1991 population was 146.2 million; by 2000, the population is projected
to be 174.4 million, with a growth rate of 1.98 percent per year.  Brazil
has become increasingly urbanized, with 77.1 percent of the population now
living in cities, and Sao Paulo, with 18.5 million inhabitants, classifies
as a world megapolis.  Portuguese is the official language of the country,
although many business people have a working knowledge of English.  The
population is listed as 89 percent Roman Catholic.

The standard workweek throughout Brazil is Monday through Friday, with
offices usually open between 9 A.M. and 6 P.M., but factories tend to open
earlier and some work a 48-hour week.  Some retail business establishments
are open on Saturdays.  Lunch breaks occur during the period from 12 pm to 3
pm, depending on the type of business.  The U.S. and Foreign Commercial
Service posts in Brazil are generally open from 8 am to 5 pm, Monday through
Friday.


Contacts:

Richard Ades
Senior Commercial Officer (resident in Sao Paulo) or
Dar Jalane Pribyl
Commercial Officer
American Embassy (FCS)
Brasilia, Brazil
Unit 3500
APO AA 34030
Telephone: [phone], extension 279 or 416
Fax: [phone]


Walter Hage
Commercial Officer
American Consulate General (FCS)
Rio de Janeiro, Brazil
Unit 3501
APO AA 34030
Telephone: [phone]
FAX: [phone]

Albert Alexander
Commercial Officer and Deputy SCO
Jon Kuehner
Commercial Officer
American Consulate General (FCS)
Sao Paulo, Brazil
Unit 3502
APO AA 34030
Telephone: [phone]
Fax: [phone]


Raymundo Teixeira
Commercial Specialist
Consular Agency (FCS)
Belem, Brazil
Unit 3500
APO AA 34030
Telephone: [phone]
Fax: [phone]


Jose Mauricio de Vasconcelos
Commercial Specialist
U.S. and Foreign Commercial Service
Belo Horizonte, Brazil
Unit 3505
APO AA 34030
Telephone: [phone]
Fax:  [phone]


Larry Farris
U.S. Department of Commerce
Brazil Desk, Room 3017
Fourteenth Street Between Constitution and E Streets, NW
Washington, DC 20230
Telephone [phone]
Fax: [phone]


Robert Taft
Director, Western Hemisphere
US and Foreign Commercial Service
US Dept. of Commerce, Room 3130
Fourteenth Street Between Constitution and E Streets, NW
Washington, DC 20230
Telephone [phone]
Fax: [phone]



B. Domestic economy                      1990     1991   1992(E)

GDP (current U.S.$ billion) 1/            478      412      420
GDP projected average growth rate
 through 1994: (1993=3) (1994=3)         -4.6      1.2      2.2
GDP per capita (U.S. billion)           3,501    2,822    2,823
Government spending as
 percent of GDP                          17.3     18.0     18.5
Inflation (percent change)              1,585      475      710
Unemployment (percent of workforce)       3.9      4.2      4.5
Foreign exchange reserves
(U.S.$ billion)                           9.9       9.4    13.5
Annual Average exchange rate
(one U.S.$ equals cruzeiros)           67.671      408    2,780
                                                       (Jan-May)
Foreign debt (U.S.$ billion)            121.0   121.3    123.3
Debt service ratio (ratio of
 principal and interest payments
 on foreign debt to foreign income)2/      9.9    11.0     12.2
U.S. Economic Assistance                 none     none     none
U.S. Military Assistance                 none     none     none


C. Trade (U.S.$ billion)                 1990     1991   1992(E)

Total Brazilian exports                  31.4     31.6   34.8
Total Brazilian imports                  20.7     21.0   22.5
Exports to U.S.                           8.0      6.2    7.0
Imports from U.S.                         5.1      5.0    5.5
U.S. share of host-country
 Imports (percent)                       21.3     23.8   24.4
Imports of manufactured goods:
 Total (from all countries)              11.9     12.5   13.1
 Projected average growth rate
 through l994, (5.0 percent)
From the U.S.                             3.3      5.0    6.0
 Projected average growth rate
 through l994, (6.0 percent):
U.S. share of manufactured
imports (percent)                        27.7     40.0   45.0


1/ Actual inflation factors were used to adjust data to current
year 1991.

2/ This would be the ratio if Brazil had been meeting its obligations.

Sources:  Central Bank, Bank of Brazil and the Ministry of
Economy.

Trade balances with leading partners in 1991
(U.S.$ millions):

                Brazilian imports   Brazilian exports
U.S.A.              4,970               6,285
Japan               1,213               2,568
Germany             1,902               2,102
Netherlands           349               2,135
Italy                 792               1,348



Principal U.S. exports by tariff line item, in 1991 (U.S.$ millions):
harmonized system.

2701 - Coal                                 284.3
2710 - Petroleum                            116.8
8473 - Data Processing & Office Equipment    90.8
1104 - Wheat                                 69.2
2603 - Copper                                68.0



Principal U.S. imports in 1991 by tariff line item (U.S.$ millions):
harmonized system.

6403 - Footwear                             474.1
0901 - Coffee                               334.4
2009 - Orange Juice                         282.5
4703 - Wood Fibers                          181.4
8408 - Diesel Engines                       181.0



D. Investment (U.S.$ billion)            1991

Total foreign direct investment
 in Brazil                                36.7
U.S. direct investment
 in Brazil                                10.6
US percent share of foreign
 investment in Brazil                     28.9
Principal foreign investors
 in Brazil
                  United States           10.6
                  Germany                  5.2
                  Japan                    3.6
                  Switerland               2.9


Sources of Data:  Central Bank, Bank of Brazil, and the Ministry of Economy.


II. Best Prospects

These 40 sectors are determined by FCs Brazil to offer the greatest
opportunities for U.S. suppliers.  Selected best prospects for exports to
Brazil are likely to comprise a mixture of exports which have near-term
growth potential or a large market receptive to U.S. suppliers, as well as a
few which were opened for exports under the new Brazilian tariff-based
trading system.  All are ranked roughly by dollar volume and potential for
growth to 1995.  U.S. exporters should be aware that landed costs of
imported goods remain high, despite a decreasing federal import tariff,
because of cumulative other federal, state and local taxes (see Section III
for greater details).


A)  Rank of sector:                                          1
B)  Name of sector:  ELECTRONIC COMPONENTS
C)  Three-letter ITA industry sector code:                  ELC
D)  Total market size (US dols millions):
-   -1991                                                  3,000
-   -1992 (e)                                              3,150
E)  Est. avg. annual growth rate of market 1992-4 (%)        5
F)  Imports, total (US dols million):
-   -1991                                                  2,200
-   -1992(e)                                               2,290
G)  Est.avg.annual growth rate of total imports (percent)    4
H)  Imports from U.S. (US dols millions):
-   -1991                                                  1,000
-   -1992(e)                                               1,200
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                          15
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         2
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         4
K)  Comments:  Imports account for almost half of the Brazilian
    market in this sector and U.S. manufacturers are believed to
    supply over 40 percent of these imports.  This makes the
    United States the prime overseas source of equipment in this
    sector for Brazil.  Prospects for modest but steady growth of
    imports are good, but are heavily dependent on over-all
    economic conditions in Brazil.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Integrated circuits: 515;  Printed circuit
    boards: 400;  Active components:  200.


A)  Rank of sector:                                          2
B)  Name of sector:  INDUSTRIAL CHEMICALS
C)  Three-letter ITA industry sector code:                  ICH
D)  Total market size (US dols millions):
-   -1991                                                  9,400
-   -1992 (e)                                             10,000
E)  Est. avg. annual growth rate of market 1992-4 (%)        4
F)  Imports, total (US dols million):
-   -1991                                                  1,950
-   -1992(e)                                               2,000
G)  Est.avg.annual growth rate of total imports (percent)    5
H)  Imports from U.S. (US dols millions):
-   -1991                                                    620
-   -1992(e)                                                 700
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           4
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         4
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         4
K)  Comments:  The Brazilian chemical sector, after the profound
    reforms of President Collor, faces a strong challenge to
    maintain its competitiveness.  Trade liberalization is
    forcing the Brazilian chemical industry to upgrade the
    quality, efficiency and pricing of its production.  The U.S.
    is the leading supplier of industrial chemicals, followed by
    Germany, Switzerland and France.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Industrial Organic Chemicals: 5,700;  Alcohols
    and Derivatives: US$ 120 million;  Heterocyclic Compounds:
    US$ 377 million.


A)  Rank of sector:                                           3
B)  Name of sector:  COMPUTERS AND PERIPHERALS
C)  Three-letter ITA industry sector code:                  CPT
D)  Total market size (US dols millions):
-   -1991                                                  3,100
-   -1992 (e)                                              3,500
E)  Est. avg. annual growth rate of market 1992-4 (%)        40
F)  Imports, total (US dols million):
-   -1991                                                   400
-   -1992(e)                                                500
G)  Est.avg.annual growth rate of total imports (percent)    50
H)  Imports from U.S. (US dols millions):
-   -1991                                                  313.5
-   -1992(e)                                               400.0
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           40
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:      4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:          3
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                          3
K)  Comments:  The Brazilian market reserve policy, which
    restricted foreign participation in the computer industry,
    will end in October 1992.  However, the new Informatics Law
    will offer incentives and subsidies to the Brazilian
    Informatics industry, including joint ventures.  Imports of
    42 Informatics items still require prior approval of the
    Department on Informatics and Automation Policy - DEPIN, at
    least until October 29, 1992.  All other Informatics items
    are free for import, and theoretically, after October 1992,
    market access will be limited only by tariffs.  Import duties
    for computers, peripherals and parts will be gradually
    reduced from 50 percent to 35 percent by July 1993.  Many
    Brazilian and U.S. computer companies have already
    negotiated joint ventures, representational and
    distributorship agreements, to prepare for the new changes
    in Brazil's Informatics policy.  Major foreign suppliers
    other than the U.S. include Taiwan, Japan, and Korea.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions): high-end microcomputers:200; workstations,
    including CAD/CAM/CAE workstations: 110 ;Laptops and
    notebooks: 70;  computer peripherals:  disk drives: 210;
    monitors:  100;  printers:  35; Local area networks:  13;
    computer graphics: 50.


A)  Rank of sector:                                          4
B)  Name of sector:  FRANCHISING
C)  Three-letter ITA industry sector code:                  FRA
D)  Total market size (US dols millions):
-   -1991                                                  3,822
-   -1992 (e)                                              4,200
E)  Est. avg. annual growth rate of market 1992-4 (%)        30
F)  Est. sales by foreign-owned firms (US dols million):
-   -1991                                                   500
-   -1992(e)                                                680
G)  Est.avg.annual growth rate by foreign-owned firms
    (percent)                                                30
H)  Est. sales by U.S.-owned firms (US dols millions):
-   -1991                                                   489
-   -1992(e)                                                640
I)  Est. avg. annual growth rate of sales by U.S.-owned
    firms (percent)                                          30
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:      5
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:          4
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                          3
K)  Comments:  Franchising is one of the fastest growing segments
    in Brazil with some sectors reaching the average growth of
    100-150 percent per year.  Total revenues in 1992 are
    expected to be $4.2 billion (excluding fuel distribution,
    the automobile dealers, and beverage bottling).  In 1991 the
    number of outlets totaled 9,000.  Local sources predict that
    by the year 2000 Brazil will be ranked among the first
    countries in number of outlets.  Brazil has a large domestic
    market, diversified industrial and services sector, and an
    increasingly urbanized population.  Country of origin of
    major non-U.S. franchisors:  Italy (clothing).
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions): Fast food and convenience stores:  847.5;
    clothing and shoes: 586;  cleaning and maintenance services:
    38.5;  services (including automobile repair and services,
    computer maintenance and repair, quick printing, etc): 550.


A)  Rank of sector:                                          5
B)  Name of sector:  TRAVEL AND TOURISM SERVICES
C)  Three-letter ITA industry sector code:                  TRA
D)  Total market size (US dols millions):
-   -1991                                                  4,400
-   -1992 (e)                                              3,960
E)  Est. avg. annual growth rate of market 1992-4 (%)        8
F)  Imports, total (US dols million):
-   -1991                                                  1,700
-   -1992(e)                                               1,530
G)  Est.avg.annual growth rate by foreign-owned firms
-   (percent)                                                7
H)  Est. sales by U.S.-owned firms (US dols millions):
-   -1991                                                    900
-   -1992(e)                                                 810
I)  Est. avg. annual growth rate sales by U.S.-owned
-   firms (percent)                                         10
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     5
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         3
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         4
K)  Comments:  USTTA estimates for Brazilian visitors to the
    United States in 1992 are 480,000 and 570,000 in 1993.
    Brazil was roughly competitive with Italy and Australia,
    and will pass them when the Brazilian economy recovers and
    has become the number 8 generator of visitors to the U.S.
    Airline seat capacity between Brazil and the U.S. has
    doubled from 1991 to 1992, including many charter flights in
    the high seasons.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Discretionary pleasure travel: 422;  Incentive
    travel: 144;  Educational travel: 240.


A)  Rank of sector:                                          6
B)  Name of sector:  HOUSEHOLD CONSUMER GOODS
C)  Three-letter ITA industry sector code:                  HCG
D)  Total market size (US dols millions):
-   -1991                                                  1,600
-   -1992 (e)                                              2,000
E)  Est. avg. annual growth rate of market 1992-4 (%)        20
F)  Imports, total (US dols million):
-   -1991                                                   500
-   -1992(e)                                                500
G)  Est.avg.annual growth rate of total imports (percent)    10
H)  Imports from U.S. (US dols millions):
-   -1991                                                   300
-   -1992(e)                                                300
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           10
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:      4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:          4
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                          5
K)  Comments:  The consumer goods market in Brazil has a tendency
    to increase due to the liberalization of imports.  Although
    the local industry has improved, it will be able to meet only
    75 percent of local demand until 1994.  The remaining 25
    percent will be supplied by imports.  Competition from third
    countries is negligible due to quality and price of U.S. made
    products.  After the U.S., the principal suppliers are
    France, Germany, Italy, Japan and Poland.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Household electrical appliances:  70; Housewares:
    60;  Textile furnishings: 50;  Small appliances: 50;  plastic
    housewares: 50.


A)  Rank of sector:                                          7
B)  Name of sector:  TELECOMMUNICATIONS EQUIPMENT
C)  Three-letter ITA industry sector code:                  TEL
D)  Total market size (US dols millions):
-   -1991                                                   2,300
-   -1992 (e)                                               3,600
E)  Est. avg. annual growth rate of market 1992-4 (%)       9.8
F)  Imports, total (US dols million):
-   -1991                                                  498.6
-   -1992(e)                                               571.5
G)  Est.avg.annual growth rate of total imports (percent)   12
H)  Imports from U.S. (US dols millions):
-   -1991                                                  288.9
-   -1992(e)                                               345.8
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                          10
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     5
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         4
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         2
K)  Comments:  The 1992 total Brazilian telecommunications market
    includes equipment, training and services.  Many recent
    positive developments have occurred on this sector and
    Brazilian regulations now provide ample opportunity for
    foreign capital to invest in the sector.  American companies
    have formed joint ventures with many Brazilian groups to
    participate in leading telecommunications projects including
    cellular.  The Brazilian government appears commited to
    opening this market which is a positive sign to America
    telecom providers.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Cellular telephone equipment: 400;
     Telecommunications Value-added network service: 250.


A)  Rank of sector:                                          8
B)  Name of sector:  AIRCRAFT AND PARTS
C)  Three-letter ITA industry sector code:                  AIR
D)  Total market size (US dols millions):
-   -1991                                                   500
-   -1992 (e)                                               300
E)  Est. avg. annual growth rate of market 1992-4 (%)        4
F)  Imports, total (US dols million):
-   -1991                                                   450
-   -1992(e)                                                290
G)  Est.avg.annual growth rate of total imports (percent)    8
H)  Imports from U.S. (US dols millions):
-   -1991                                                   400
-   -1992(e)                                                250
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           11
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         4
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         3
K)  Comments:  Although this sector has been a traditionally
    strong one for U.S. exports, it has been in a down-turn due
    to the domestic economic situation which is hurt by a
    persistent average monthly inflation rate of approximately
    20 percent.  Exporters should follow import tariff changes as
    they are lowered from the current high of 14 percent, the
    only category which enjoys an exemption is over 15,000 kg
    which is only subject to a domestic tax of 4 percent.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Civilian helicopters: 150;  Executive/general
    aviation aircraft: 400.


A)  Rank of sector:                                           9
B)  Name of sector:  CONSUMER ELECTRONICS
C)  Three-letter ITA industry sector code:                  CEL
D)  Total market size (US dols millions):
-   -1991                                                  1,800
-   -1992 (e)                                              2,100
E)  Est. avg. annual growth rate of market 1992-4 (%)        30
F)  Imports, total (US dols million):
-   -1991                                                  1,600
-   -1992(e)                                               1,900
G)  Est.avg.annual growth rate of total imports (percent)    20
H)  Imports from U.S. (US dols millions):
-   -1991                                                   440
-   -1992(e)                                                500
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           10
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:      4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:          1
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                          5
K)  Comments:  With the opening of the Brazilian imports there
    will be an increasing market for consumer electronics in
    Brazil.  Despite the efforts of the Brazilian industry to
    improve the domestic production, it will be able to cover 10
    percent only of the total market demand.  Japan, South Korea,
    Hong Kong, Taiwan and China are other large suppliers of the
    Brazilian market.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Video recorders and players:  500 million;  Color
    television: 200 million;  video games: 300 million;  still
    motion picture equipment: 300.


A)  Rank of sector:                                          10
B)  Name of sector:  AUTOMOTIVE PARTS AND SERVICE EQUIPMENT
C)  Three-letter ITA industry sector code:                  APS
D)  Total market size (US dols millions):
-   -1991                                                  9,000
-   -1992 (e)                                              9,500
E)  Est. avg. annual growth rate of market 1992-4 (%)        4
F)  Imports, total (US dols million):
-   -1991                                                   870
-   -1992(e)                                                960
G)  Est.avg.annual growth rate of total imports (percent)    7
H)  Imports from U.S. (US dols millions):
-   -1991                                                   235
-   -1992(e)                                                250
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           8
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         3
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         4
K)  Comments:  After two years in a row experiencing a sharp
    decline in domestic sales, the Automotive Parts and Service
    market should rebound in 1992 due to more efficient output
    and lower relative prices in the auto industry.  The deep
    recession this sector is going through and the increased
    competition from imported products has caused companies to
    increase production efficiency as the only way to survive.
    Investments in capital goods should also pick-up from 1992
    on.  Major foreign suppliers are the U.S. (26 percent),
    Japan (16 percent), and Germany (20 percent).
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Autoparts:  7.7;  Automotive service equipment:
    800 million;  Automotive accessories: 1,000.


A)  Rank of sector:                                          11
B)  Name of sector:  MEDICAL EQUIPMENT
C)  Three-letter ITA industry sector code:                  MED
D)  Total market size (US dols millions):
-   -1991                                                  1,500
-   -1992 (e)                                              1,605
E)  Est. avg. annual growth rate of market 1992-4 (%)        7
F)  Imports, total (US dols million):
-   -1991                                                   485
-   -1992(e)                                                515
G)  Est.avg.annual growth rate of total imports (percent)    6
H)  Imports from U.S. (US dols millions):
-   -1991                                                   200
-   -1992(e)                                                215
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           7
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         3
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         3
K)  Comments:  Although the market in this sector is expected to
    contract slightly over the next few years due to inadequate
    government funding, U.S. suppliers are nevertheless expected
    to increase their share of imports in this sector to Brazil.
    Import liberalization in Brazil should make this sector a
    particularly attractive market for U.S. suppliers, who
    already enjoy a reputation for quality and a high level of
    technology.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Medical imaging: 203;  electro diagnostic
    apparatus: 165;  disposable medical products:  100.


A)  Rank of sector:                                          12
B)  Name of sector:  ELECTRICAL POWER SYSTEMS
C)  Three-letter ITA industry sector code:                  ELP
D)  Total market size (US dols millions):
-   -1991                                                  1,500
-   -1992 (e)                                              1,575
E)  Est. avg. annual growth rate of market 1992-4 (%)        3
F)  Imports, total (US dols million):
-   -1991                                                   325
-   -1992(e)                                                335
G)  Est.avg.annual growth rate of total imports (percent)    3
H)  Imports from U.S. (US dols millions):
-   -1991                                                    78
-   -1992(e)                                                 80
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           2
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     2
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         2
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         4
K)  Comments:  Due to lack of adequate investments in the past,
    the Brazilian market in this sector is not expected to keep
    pace with the country's demand for electric power, and
    imports are not expected to experience growth until the mid
    1990's.  Manufacturers from the United States enjoy the
    highest reputation for quality and technology among foreign
    suppliers to Brazil in this sector.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Turbines for thermal power plants: 45;  Electric
    distribution and transmission equipment: 30.


A)  Rank of sector:                                          13
B)  Name of sector:  AUTOMOBILES AND LIGHT TRUCKS/VANS
C)  Three-letter ITA industry sector code:                  AUT
D)  Total market size (US dols millions):
-   -1991                                                   7,200
-   -1992 (e)                                               7,500
E)  Est. avg. annual growth rate of market 1992-4 (%)        3
F)  Imports, total (US dols million):
-   -1991                                                   320
-   -1992(e)                                                350
G)  Est.avg.annual growth rate of total imports (percent)    5
H)  Imports from U.S. (US dols millions):
-   -1991                                                    46
-   -1992(e)                                                 50
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           8
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     3
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         3
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         3
K)  Comments:  The gradual import duty reduction imposed on
    automobiles (currently 50 percent, 40 percent in October
    1992, and 35 percent in July 1993) is making imported
    vehicles price competitive in Brazil, especially in the
    high-end segment.  The number of automobile dealerships in
    major cities is rapidly increasing.  All major international
    manufacturers have authorized dealers established locally.
    With the growing inflow of imported parts, the fear for lack
    of technical assistance is vanishing, stimulating the
    acquisition of imported cars and vans.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Vans:  200;  Luxury cars: 320.


A)  Rank of sector:                                          14
B)  Name of sector:  MINING INDUSTRY EQUIPMENT
C)  Three-letter ITA industry sector code:                  MIN
D)  Total market size (US dols millions):
-   -1991                                                  2,996
-   -1992 (e)                                              3,050
E)  Est. avg. annual growth rate of market 1992-4 (%)        1
F)  Imports, total (US dols million):
-   -1991                                                   310
-   -1992(e)                                                320
G)  Est.avg.annual growth rate of total imports (percent)    3
H)  Imports from U.S. (US dols millions):
-   -1991                                                   124
-   -1992(e)                                                128
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           3
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         2
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         3
K)  Comments:  The installed mining capacity in Brazil is among
    the largest of the world for many minerals.  The mineral
    potential of this country has been not fully assessed yet,
    although no new major investment project is planned for
    the next years.  Most of the imports planned for the next
    three years are related to replacing and maintaining existing
    equipment.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Underground mining equipment: 437;  Scrapers,
    graders, rollers and off-highway trucks:  300.


A)  Rank of sector:                                          15
B)  Name of sector:  PRINTING AND GRAPHIC ARTS EQUIPMENT
C)  Three-letter ITA industry sector code:                  PGA
D)  Total market size (US dols millions):
-   -1991                                                   387
-   -1992 (e)                                               425
E)  Est. avg. annual growth rate of market 1992-4 (%)        10
F)  Imports, total (US dols million):
-   -1991                                                   295
-   -1992(e)                                                324
G)  Est.avg.annual growth rate of total imports (percent)    10
H)  Imports from U.S. (US dols millions):
-   -1991                                                   97.5
-   -1992(e)                                                108
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           10
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:      4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:          2
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                          4
K)  Comments:  This sector had been seriously affected by the
    import substitution policy that had prevailed in Brazil for
    about two decades, and the industry made few investments in
    modernizing until the Brazilian government lowered import
    tariffs of most printing and graphic arts equipment in 1990
    with a temporary zero import tariff through 1992.  Should
    this exemptions not be extended, tariffs will range at
    around 30 percent, declining to 20 percent in 1994.  The
    U.S. and Germany compete strongly, with Germany being the
    leading supplier.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  composition equipment: 20.4;  offset machinery:
    72.5.


A)  Rank of sector:                                          16
B)  Name of sector:  LABORATORY AND SCIENTIFIC INSTRUMENTS
C)  Three-letter ITA industry sector code:                  LAB
D)  Total market size (US dols millions):
-   -1991                                                   580
-   -1992 (e)                                               609
E)  Est. avg. annual growth rate of market 1992-4 (%)        5
F)  Imports, total (US dols million):
-   -1991                                                   292
-   -1992(e)                                                321
G)  Est.avg.annual growth rate of total imports (percent)    10
H)  Imports from U.S. (US dols millions):
-   -1991                                                    94
-   -1992(e)                                               101.5
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                            8
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:      4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:          4
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                          4
K)  Comments:  The policy of the Brazilian government to open the
    market to stimulate domestic competition and productivity
    will have a positive effect on the market for Laboratory and
    Scientific Instruments.  To accomplish the goal of the
    government and to meet the competition of imported products,
    domestic industries and research institutions will require a
    level of sophisticated instruments that are only available
    outside Brazil.  Major foreign suppliers after the U.S. are
    Japan and Germany.  The average import duties in this sector
    in 1992 is 20 percent.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Laboratory chemical analysis instruments:  64;
    chromatographic and spectroscopical equipment:  35.


A)  Rank of sector:                                          17
B)  Name of sector:  TEXTILE MACHINERY AND EQUIPMENT
C)  Three-letter ITA industry sector code:                  TXM
D)  Total market size (US dols millions):
-   -1991                                                   430
-   -1992 (e)                                               450
E)  Est. avg. annual growth rate of market 1992-4 (%)        6
F)  Imports, total (US dols million):
-   -1991                                                   280
-   -1992(e)                                                300
G)  Est.avg.annual growth rate of total imports (percent)    15
H)  Imports from U.S. (US dols millions):
-   -1991                                                    7
-   -1992(e)                                                 7.4
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           5
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     3
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         2
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         5
K)  Comments:  In order to increase competitiveness of the
    textile industry and reduce the pressure of textile products
    on domestic inflation rates (over the past few years, textile
    producers have been often blamed for abusive price
    increases), the Brazilian government removed the import
    tariffs on non-locally produced machinery.  The leading
    suppliers of imported textile equipment are Germany,
    Switzerland, Japan and the Asian Tigers (Korea, Taiwan and
    Hong Kong).  The U.S. is an important supplier of
    computerized systems for the apparel industry.  Imports of
    these products are duty-free.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Looms: 50;  Industrial sewing machines:  56;
    computerized systems for the apparel industry;  5.


A)  Rank of sector:                                          18
B)  Name of sector:  AIR CONDITIONING AND REFRIGERATION EQUIPMENT
C)  Three-letter ITA industry sector code:                  ACR
D)  Total market size (US dols millions):
-   -1991                                                  2,000
-   -1992 (e)                                              2,000
E)  Est. avg. annual growth rate of market 1992-4 (%)        1
F)  Imports, total (US dols million):
-   -1991                                                   180
-   -1992(e)                                                186
G)  Est.avg.annual growth rate of total imports (percent)    3
H)  Imports from U.S. (US dols millions):
-   -1991                                                    50
-   -1992(e)                                                 52
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           3
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         3
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         3
K)  Comments:  Brazil is well known for having one of the largest
    markets for air conditioning and refrigeration equipment in
    the world.  A wide range of equipment is sold to be used in
    almost all kinds of residences and commercial and industrial
    buildings.  Brazil also has a developed air conditioning
    industry, which generates an export volume of nearly US dols
    300 million yearly.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  compressors and parts thereof: 100;  other parts
    and components, sold separately:  400.


A)  Rank of sector:                                          19
B)  Name of sector:  MACHINE TOOLS AND METALWORKING EQUIPMENT
C)  Three-letter ITA industry sector code:                  MTL
D)  Total market size (US dols millions):
-   -1991                                                   400
-   -1992 (e)                                               420
E)  Est. avg. annual growth rate of market 1992-4 (%)        5
F)  Imports, total (US dols million):
-   -1991                                                   176
-   -1992(e)                                                193
G)  Est.avg.annual growth rate of total imports (percent)    7
H)  Imports from U.S. (US dols millions):
-   -1991                                                    26
-   -1992(e)                                                 28
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           10
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:      4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:          2
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                          5
K)  Comments:  The U.S. is the second largest (to Germany)
    supplier of machine-tools to Brazil and has possibilities to
    increase exports of numerically controlled equipment, since
    Brazilian importers are usually large firms demanding state-
    of-the-art technology.  Conventional U.S. machinery faces
    difficulties in competing with similar locally-made products,
    since Brazilian firms have efficient distribution channels,
    provide technical assistance and offer financing.  Import
    duties are scheduled to decrease from 25 for conventional
    machinery and 45 for numerically controlled machinery to 20
    and 25 percent, respectively in 1994.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Metal cutting machine-tools: 352;  Laser marking
    and laser cutting machine-tools:  10;  Industrial robots: 10;
    CNC tube bending machines:  10.


A)  Rank of sector:                                          20
B)  Name of sector:   IRON AND STEEL
C)  Three-letter ITA industry sector code:                  IRN
D)  Total market size (US dols millions):
-   -1991                                                  7,000
-   -1992 (e)                                              7,200
E)  Est. avg. annual growth rate of market 1992-4 (%)        1
F)  Imports, total (US dols million):
-   -1991                                                   136
-   -1992(e)                                                170
G)  Est.avg.annual growth rate of total imports (percent)    3
H)  Imports from U.S. (US dols millions):
-   -1991                                                    9
-   -1992(e)                                                10
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           3
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptitivy to U.S. products and services:     3
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         1
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         2
K)  Comments:  Import duties for steel products in Brazil have
    been largely reduced in the last two years.  Most products of
    this sector will have an import duty of 10 percent after
    January 93.  The only requirement for importing iron and
    steel products into Brazil is an import license, which is
    normally issued in four to seven days.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  stainless steel sheets: 700;  steel rails:  200;
    tinplate:  200;  galvanized sheets:  280.


A)  Rank of sector:                                          21
B)  Name of sector:  YARNS
C)  Three-letter ITA industry sector code:                  YAR
D)  Total market size (US dols millions):
-   -1991                                                  7,000
-   -1992 (e)                                              7,200
E)  Est. avg. annual growth rate of market 1992-4 (%)        10
F)  Imports, total (US dols million):
-   -1991                                                   116
-   -1992(e)                                                125
G)  Est.avg.annual growth rate of total imports (percent)    12
H)  Imports from U.S. (US dols millions):
-   -1991                                                    22
-   -1992(e)                                                 25
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           15
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:      3
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:          2
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                          5
K)  Comments:  Prior to 1988 imports of yarns were insignificant.
    However, the opening of the Brazilian market to imported
    product started in 1990, pushed imports of yarns to US $125
    million in 1992.  Yarn imports are expected to reach US$ 336
    million in 1995.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Spun yarns, other yarns and threads: 6,500;
    Filament yarns:  1,000.


A)  Rank of sector:                                          22
B)  Name of sector:  PROCESS CONTROLS - INDUSTRIAL
C)  Three-letter ITA industry sector code:                  PCI
D)  Total market size (US dols millions):
-   -1991                                                   365
-   -1992 (e)                                               410
E)  Est. avg. annual growth rate of market 1992-4 (%)        12
F)  Imports, total (US dols million):
-   -1991                                                   110
-   -1992(e)                                                120
G)  Est.avg.annual growth rate of total imports (percent)    8
H)  Imports from U.S. (US dols millions):
-   -1991                                                    50
-   -1992(e)                                                 55
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           9
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         2
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         4
K)  Comments:  The U.S. is one of the main suppliers of PCI to
    Brazil.  Sectors expected to make significant investments in
    PCI are the chemical, petroleum and petrochemical, pulp and
    paper, oil and gas extraction, and primary metals industries.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  DCDS-Distributed control digital systems: 85;
    Process controls for the oil and gasfield industries: 76;
    Programmable logic controllers: 50.


A)  Rank of sector:                                         23
B)  Name of sector:  TEXTILE FABRICS
C)  Three-letter ITA industry sector code:                  TXF
D)  Total market size (US dols millions):
-   -1991                                                  16,700
-   -1992 (e)                                              17,300
E)  Est. avg. annual growth rate of market 1992-4 (%)        12
F)  Imports, total (US dols million):
-   -1991                                                   110
-   -1992(e)                                                122
G)  Est.avg.annual growth rate of total imports (percent)    10
H)  Imports from U.S. (US dols millions):
-   -1991                                                     7
-   -1992(e)                                                 24
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           20
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:      4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:          2
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                          5
K)  Comments:  U.S. made fabrics enjoy a reputation of having
    high quality, however the market is very competitive and the
    decision to  import is based primarily on the price and
    quality of the product.  The foreign supplier is expected to
    present a product with superior distinguishable qualities
    than the ones produced locally but at a similar price level.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  cotton fabrics:  5,000;  synthetic fabrics:
    3,600;  non-woven fabrics: 9.

A)  Rank of sector:                                          24
B)  Name of sector:  OIL AND GASFIELD MACHINERY AND SERVICES
C)  Three-letter ITA industry sector code:                  OGM
D)  Total market size (US dols millions):
-   -1991                                                  1,210
-   -1992 (e)                                              1,235
E)  Est. avg. annual growth rate of market 1992-4 (%)        2
F)  Imports, total (US dols million):
-   -1991                                                    95
-   -1992(e)                                                100
G)  Est.avg.annual growth rate of total imports (percent)    5
H)  Imports from U.S. (US dols millions):
-   -1991                                                    45
-   -1992(e)                                                47.5
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           5
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     3
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         2
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         4
K)  Comments:  The Brazilian market in this sector has been
    stagnant due to constitutional restrictions on foreign
    participation in exploration and thus to a lack of
    investments needed to facilitate rapid growth in exploration
    and production.  While the United States is the largest
    supplier of imports to Brazil in this sector, U.S.
    manufacturers' share of the import market has been falling
    as other foreign suppliers endeavor to offer more attractive
    financing.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Drill bits:  25;  Offshore oil/gas/exploit
    equipment: 300, Gas transmission equipment 350..


A)  Rank of sector:                                          25
B)  Name of sector:  PLASTICS PRODUCTION MACHINERY
C)  Three-letter ITA industry sector code:                  PME
D)  Total market size (US dols millions):
-   -1991                                                  207.5
-   -1992 (e)                                              219.7
E)  Est. avg. annual growth rate of market 1992-4 (%)         4
F)  Imports, total (US dols million):
-   -1991                                                   93.2
-   -1992(e)                                                99.7
G)  Est.avg.annual growth rate of total imports (percent)     5
H)  Imports from U.S. (US dols millions):
-   -1991                                                   11.0
-   -1992(e)                                                12.0
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                            3
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:      4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:          4
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                          3
K)  Comments:  With a total installed capacity of 45 thousand
    machines for processing plastics, in nearly 5,000
    transforming companies, Brazil has the largest industrial
    base of Latin America.  The average age of this equipment is
    10 years.  Businessmen from the sector estimate that 60
    percent of the industrial capacity  of plastics production
    machines will have to be replaced in the coming years, which
    represents almost 5 thousand units per year.  The U.S. is the
    third largest supplier of plastics production machinery to
    Brazil and has possibilities of increasing exports of state-
    of-the-art equipment, as Brazilian importers are demanding
    advanced technology.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Extruders: 8.6 ;  blow-molding machines: 7.2;
    vacuum-molding machines: 7.2.


A)  Rank of sector:                                          26
B)  Name of sector:  BOOKS AND PERIODICALS
C)  Three-letter ITA industry sector code:                  BOK
D)  Total market size (US dols millions):
-   -1991                                                   532
-   -1992 (e)                                              553.3
E)  Est. avg. annual growth rate of market 1992-4 (%)        6
F)  Imports, total (US dols million):
-   -1991                                                   65
-   -1992(e)                                                68.4
G)  Est.avg.annual growth rate of total imports (percent)    8
H)  Imports from U.S. (US dols millions):
-   -1991                                                   39
-   -1992(e)                                                42
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           7
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     5
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         4
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         5
K)  Comments:  Brazil is a prime market for technical, scientific
    and professional books. Since there are upwards of 800,000
    English-language students in Brazil, dictionaries and other
    reference books, heretofore dominated by the British, should
    be promoted.  Periodicals of all sorts should benefit from
    the Brazilian government's allowance of the use of
    international postal money orders to buy periodicals and
    books.  Major foreign suppliers include the U.K., Spain,
    Portugal, Germany, France and Japan.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Technical, scientific and professional books:
    287;  Business and professional periodicals: 35;  Dictionaries and
thesauruses, enclyclopedias: 2;  artbooks: 34.


A)  Rank of sector:                                          27
B)  Name of sector:  PULP AND PAPER MACHINERY
C)  Three-letter ITA industry sector code:                  PUL
D)  Total market size (US dols millions):
-   -1991                                                   100
-   -1992 (e)                                               150
E)  Est. avg. annual growth rate of market 1992-4 (%)        40
F)  Imports, total (US dols million):
-   -1991                                                    50
-   -1992(e)                                                 70
G)  Est.avg.annual growth rate of total imports (percent)    20
H)  Imports from U.S. (US dols millions):
-   -1991                                                    36
-   -1992(e)                                                 40
I)  Est. avg. annual growth rate of imports from the U.S.
-   (percent)                                                15
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:      5
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:          4
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                          5
K)  Comments:  The pulp and paper industry in Brazil is
    developing fast.  Local production is still negligible and
    does not meet the market demand either in quantity or
    quality.  The liberalization of Brazilian imports is an
    important factor making Brazil a good market for this kind of
    machinery.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 total market size of each subsector (US
    dols. millions):  Pulp making machinery: 30;  Paper and
    paperboard making machinery:  40.

3A)  Rank of sector:                                         28
B)  Name of sector:  WATER RESOURCES EQUIPMENT
C)  Three-letter ITA industry sector code:                  WRE
D)  Total market size (US dols millions):
-   -1991                                                   260
-   -1992 (e)                                               270
E)  Est. avg. annual growth rate of market 1992-4 (%)        5
F)  Imports, total (US dols million):
-   -1991                                                    33
-   -1992(e)                                                 35
G)  Est.avg.annual growth rate of total imports (percent)    5
H)  Imports from U.S. (US dols millions):
-   -1991                                                    5.5
-   -1992(e)                                                 6
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           8
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         3
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         4
K)  Comments:  The demand for products and equipment in this
    sector will depend largely on investments performed by
    municipal water companies.  The precarious water supply and
    sewage collection conditions in most Brazilian cities require
    considerable investments that are waiting for federal or
    foreign financing.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  water treatment and distribution equipment: 330;
    exploration, mapping, development equipment: 40.


A)  Rank of sector:                                          29
B)  Name of sector:  SECURITY AND SAFETY EQUIPMENT
C)  Three-letter ITA industry sector code:                  SEC
D)  Total market size (US dols millions):
-   -1991                                                   500
-   -1992 (e)                                               525
E)  Est. avg. annual growth rate of market 1992-4 (%)        10
F)  Imports, total (US dols million):
-   -1991                                                    31
-   -1992(e)                                                 34
G)  Est.avg.annual growth rate of total imports (percent)    10
H)  Imports from U.S. (US dols millions):
-   -1991                                                    18
-   -1992(e)                                                 20
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           10
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         2
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         4
K)  Comments:  Demand for security equipment is rapidly
    increasing, but locally-manufactured products lack
    technological advancements more common in foreign
    manufactured equipment.  Reduced import duties and the
    elimination of non-tariff barriers means the Brazilian
    market now offers considerable potential for foreign
    suppliers in this sector.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions): Security equipment:  250.

A)  Rank of sector:                                          30
B)  Name of sector:  ELECTRONICS INDUSTRY PRODUCTION AND TEST
    EQUIPMENT
C)  Three-letter ITA industry sector code:                  EIP
D)  Total market size (US dols millions):
-   -1991                                                    65
-   -1992 (e)                                                70
E)  Est. avg. annual growth rate of market 1992-4 (%)        8
F)  Imports, total (US dols million):
-   -1991                                                    30
-   -1992(e)                                                 33
G)  Est.avg.annual growth rate of total imports (percent)    10
H)  Imports from U.S. (US dols millions):
-   -1991                                                    25
-   -1992(e)                                                 26
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           3
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         3
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         3
K)  Comments:  The Brazilian government's industrial development
    policy emphasizes the strategic importance of the electronic
    components industry, essential to the establishment of an
    internationally-competitive Brazilian electronics sector.
    Brazil will have to reduce the technological gap with more
    advanced nations and in order to do this, state-of-the-art
    production and test equipment will have to be imported by the
    local industry in larger quantities than practiced to date.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Circuit component assembly equipment: 26;
    Integrated circuit testers:  10;  Encapsulating equipment:
    10.


A)  Rank of sector:                                          31
B)  Name of sector:  TOYS AND GAMES
C)  Three-letter ITA industry sector code:                  TOY
D)  Total market size (US dols millions):
-   -1991                                                    50
-   -1992 (e)                                                55
E)  Est. avg. annual growth rate of market 1992-4 (%)        30
F)  Imports, total (US dols million):
-   -1991                                                    30
-   -1992(e)                                                 35
G)  Est.avg.annual growth rate of total imports (percent)    15
H)  Imports from U.S. (US dols millions):
-   -1991                                                    20
-   -1992(e)                                                 25
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           20
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:      3
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:          2
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                          5
K)  Comments:  The liberalization of the Brazilian imports makes
    it favourable to the entry of foreign products.  Other
    countries selling to Brazil are Japan, South Korea, Taiwan,
    Hong Kong, China and Italy.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Electronic games:  15;  Educational toys: 15;
    Pre-school toys: 10 million.


A)  Rank of sector:                                          32
B)  Name of sector:  COMPUTER SOFTWARE AND SERVICES
C)  Three-letter ITA industry sector code:                  CSF
D)  Total market size (US dols millions):
-   -1991                                                  1,600
-   -1992 (e)                                              2,200
E)  Est. avg. annual growth rate of market 1992-4 (%)        30
F)  Imports, total (US dols million):
-   -1991                                                    25
-   -1992(e)                                                 34
G)  Est.avg.annual growth rate of total imports (percent)    20
H)  Imports from U.S. (US dols millions):
-   -1991                                                    24
-   -1992(e)                                                 32
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           30
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:      4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:          4
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                          4
K)  Comments:  Market access is relatively barrier free, but
    restrictions still exist for imports of software based on the
    Software Law of December 1987, which regulates software
    marketing and copyright protection in Brazil.  As of
    August 1992 the Brazilian Congress had not yet voted on a
    proposed new Software Bill, which would liberaliza the
    distribution of software imports and abolish the "National
    Similars" test for imports of software.  1992 market
    estimates for the whole sector including services is US$2.2
    billion, of which US$360 million is software.
    Approximately 95 percent of imported software comes from
    the United States. US dols.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions): PC software (including CAE/CAD/CAM software for
    mechanical and manufacturing applications: 45;  Software for
    mainframe and minicomputers: 90;  Lan software: 13; Graphics
    software: 1.3.


A)  Rank of sector:                                          33
B)  Name of sector:  POLLUTION CONTROL EQUIPMENT
C)  Three-letter ITA industry sector code:                  POL
D)  Total market size (US dols millions):
-   -1991                                                   245
-   -1992 (e)                                               270
E)  Est. avg. annual growth rate of market 1992-4 (%)        5
F)  Imports, total (US dols million):
-   -1991                                                    25
-   -1992(e)                                                 30
G)  Est.avg.annual growth rate of total imports (percent)    10
H)  Imports from U.S. (US dols millions):
-   -1991                                                     6
-   -1992(e)                                                  8
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           10
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:      4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         3
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         4
K)  Comments:  Local sources estimate that the market potential
    for pollution control equipment reaches US dols. 1.4 billion
    in Brazil.  However, due to the economic recession the
    country is going through, companies in nearly all industry
    sectors are postponing investments necessary to comply with
    parameters set by environmental agencies.  If the economy
    recovers and production output increases, this market should
    grow considerably.  Major foreign suppliers are Germany,
    France, and the U.S.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Liquid wastes treatment equipment: 120;  Air
    pollution control equipment: 120;  solid wastes treatment
    equipment: 30.


A)  Rank of sector:                                          34
B)  Name of sector:  PACKAGING EQUIPMENT
C)  Three-letter ITA industry sector code:                  PKG
D)  Total market size (US dols millions):
-   -1991                                                   125
-   -1992 (e)                                               130
E)  Est. avg. annual growth rate of market 1992-4 (%)        3
F)  Imports, total (US dols million):
-   -1991                                                    24
-   -1992(e)                                                 25
G)  Est.avg.annual growth rate of total imports (percent)    4
H)  Imports from U.S. (US dols millions):
-   -1991                                                   5.4
-   -1992(e)                                                 6
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           5
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         3
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         4
K)  Comments:  The lower production output experienced by almost
    every industrial sector in the last two years has reduced
    expansion investments.  Therefore, the acquisition of capital
    goods such as packaging equipment has been sharply reduced.
    However, stricter enforcement of consumer rights regarding
    package quality and product conservation, the increasing
    competition coming from imported products, and the general
    awareness for environmentally friendly packages, are forcing
    companies to seek higher packaging quality.  These three
    factors may cause investments in packaging technology to rise
    in the next couple of years.  Major foreign suppliers are
    Italy, Argentina, Germany, and the U.S.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  forming, filling, and sealing machinery; 20;
    label imprinting machinery; 20;   liquid filling equipment:
    15.


A)  Rank of sector:                                          35
B)  Name of sector:  FOOD PROCESSING EQUIPMENT
C)  Three-letter ITA industry sector code:                  FPP
D)  Total market size (US dols millions):
-   -1991                                                  199.5
-   -1992 (e)                                              166.5
E)  Est. avg. annual growth rate of market 1992-4 (%)        8
F)  Imports, total (US dols million):
-   -1991                                                   21.6
-   -1992(e)                                                27.5
G)  Est.avg.annual growth rate of total imports (percent)   10
H)  Imports from U.S. (US dols millions):
-   -1991                                                    6.8
-   -1992(e)                                                 7.3
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           8
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     2
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         3
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         4
K)  Comments:  Brazil is a special market, just opening up to
    imports under the new market rules implemented by the
    Brazilian government.  Technological advantages in this
    industry have been very slow, but picking up lately.  A few
    multinational companies have invested in the modernization of
    their Brazilian subsidiaries, transferring state-of-the-art
    equipment and processes to their local affiliates.  The
    industrial policy implemented by the government, that
    forsees the upgrading of the Brazilian industrial sector, is
    favoring imports of technologically-advanced equipment as the
    market has a repressed demand and is facing the competition
    of imported food products.  Major foreign suppliers:
    Argentina, Germany, Italy, U.S..  The average import duties
    in this sector are to decrease up to 1994 as follows:  1992:
    25 percent;  1993: 20 percent;  1994: 20 percent.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Testing/Inspecting/Weight Control Machinery:
    36.6;  Bakery Machinery and Equipment:  24.3;  Dairy
    Processing Equipment: 37.5.


A)  Rank of sector:                                          38
B)  Name of sector:  FORESTRY AND WOODWORKING MACHINERY
C)  Three-letter ITA industry sector code:                  FOR
D)  Total market size (US dols millions):
-   -1991                                                    30
-   -1992 (e)                                                25
E)  Est. avg. annual growth rate of market 1992-4 (%)        30
F)  Imports, total (US dols million):
-   -1991                                                    20
-   -1992(e)                                                 10
G)  Est.avg.annual growth rate of total imports (percent)    20
H)  Imports from U.S. (US dols millions):
-   -1991                                                   1.4
-   -1992(e)                                                4.0
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           30
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:      4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:          4
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                          5
K)  Comments:  More rational and orderly exploration of
    Brazilian wood resources indicates a continuing need for
    advanced woodworking machinery and equipment.  Major foreign
    suppliers after the U.S. are Sweden, Finland, Germany and
    Italy.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Lumber mill equipment: 3;  Dry kilns: 2;  Log
    skidders: 10;  Plywood and veneer machinery:  5;  Log
    transportation trucks:  5.


A)  Rank of sector:                                          39
B)  Name of sector:  MUSICAL INSTRUMENTS
C)  Three-letter ITA industry sector code:                  MUS
D)  Total market size (US dols millions):
-   -1991                                                   20
-   -1992 (e)                                               30
E)  Est. avg. annual growth rate of market 1992-4 (%)       30
F)  Imports, total (US dols million):
-   -1991                                                   15
-   -1992(e)                                                25
G)  Est.avg.annual growth rate of total imports (percent)   40
H)  Imports from U.S. (US dols millions):
-   -1991                                                   10
-   -1992(e)                                                20
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                          50
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     5
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         4
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         5
K)  Comments:  The musical instruments industry in Brazil is
    negligible.  Items of foreign origin find a good market in
    Brazil.  With Brazilian import liberalization, the purchase
    of musical instruments from other countries will increase.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Wind musical instruments: 10;  String musical
    instruments: 5;  Pianos: 5;  Percussion instruments: 5;
    keyboard pipe organs:  5.

A)  Rank of sector:                                          38
B)  Name of sector:  FURNITURE
C)  Three-letter ITA industry sector code:                  FUR
D)  Total market size (US dols millions):
-   -1991                                                    40
-   -1992 (e)                                                60
E)  Est. avg. annual growth rate of market 1992-4 (%)        10
F)  Imports, total (US dols million):
-   -1991                                                    10
-   -1992(e)                                                 15
G)  Est.avg.annual growth rate of total imports (percent)    50
H)  Imports from U.S. (US dols millions):
-   -1991                                                     5
-   -1992(e)                                                  7
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                           45
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:      4
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:          3
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                          5
K)  Comments:  The furniture industry, especially wooden
    furniture, is being developed in Brazil at a moderate pace.
    Metal furniture manufacturing is still incipient.  The
    liberalization of Brazilian imports is an important factor,
    making Brazil a good market for these products.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Household furniture: 30;  Office furniture: 30.


A)  Rank of sector:                                          39
B)  Name of sector:  AIRPORT AND GROUND SUPPORT EQUIPMENT
C)  Three-letter ITA industry sector code:                  APG
D)  Total market size (US dols millions):
-   -1991                                                    50
-   -1992 (e)                                                40
E)  Est. avg. annual growth rate of market 1992-4 (%)       3-5
F)  Imports, total (US dols million):
-   -1991                                                    5
-   -1992(e)                                                 4
G)  Est.avg.annual growth rate of total imports (percent)   4.5
H)  Imports from U.S. (US dols millions):
-   -1991                                                    9
-   -1992(e)                                                 20
I)  Est. avg. annual growth rate of imports from the
-   U.S. (percent)                                          1-3
J-1)On a scale of 1 (lowest) to 5 (highest), evaluate
-   country's receptivity to U.S. products and services:     3
J-2)Competition: on a scale of 1 (very heavy) to 5 (very
    little), evaluate competition for U.S. exporters
    from local domestic and third country suppliers:         2
J-3)Market barriers: on a scale of 1 (very severe)
-   to 5 (very few), evaluate overall effect of trade
    barriers on U.S. exports of these products or
    services; consider both government and private
    sector barriers:                                         3
K)  Comments:  The principal user of equipment in this category
    is INFRAERO, which is a Brazilian para-statal.  While early
    export predictions were positive, the market has failed to
    change because Eximbank has been off-cover to the Brazilian
    public sector and alternative financing has not been
    available.  EMBRAER has continued to procure national
    product.
L)  List of most promising subsectors within the sector, along
    with estimated 1992 market size of each subsector (US dols.
    millions):  Airport ground services equipment: 35.


Persons interested in these sectors may contact the nearest District Office
of the U.S. Department of Commerce, the Brazil Desk in Washington at (202)
377-3871, or any one of the US&FCS posts in Brazil.  For inquiries direct to
the posts, interested firms should note that they have specific sectoral
responsibilities as follows:


Brasilia

Agricultural Chemicals (agc)
Agricultural Machinery & Eq. (agm)
Agricultural Services (ags)
Aircraft and Parts (air)
Aviation/Helicopter Services (ahs)
Chemical Production Machinery (chm)
Drugs and Pharmaceuticals (drg)
Industrial Chemicals (ich)
Processed Foods (fod)
Telecommunications Equipment (tel)
Telecommunications Services (tes)

Rio de Janeiro

Audio Visual Equipment (auv)
Biotechnology (btc)
Commercial Fishing Equipment (cfe)
Education and Manpower Training Services (eds)
Electronic Components (elc)
Electrical Power Systems (elp)
Electronics Industry Production and Test Equipment (eip)
Employment Services (emp)
Health Care Services (hcs)
Process Control-Industrial (pci)
Medical Equipment (med)
Oil and Gas Field Machinery and Services (ogm)
Security & Safety Equipment (sec)
Sporting Goods (spt)
Marine Fisheries (mfi)

Sao Paulo

Accounting Services (act)
Advertising Services (adv)
Architectural, Construction, Engineering Services (ace)
Laboratory and Scientific Instruments (lab)
Insurance Services (ins)
Hotel and Restaurant Equipment (htl)
Leasing Services (les)
Plastic Materials and Resins (pmr)
Plastics Production Machinery (pme)
Apparel (app)
Automobiles & light trucks/vans (aut)
Automotive Parts and Accessories (aps)
Books and Periodicals (bok)
Business Equipment (non-computer) (bus)
Computers and Peripherals (cpt)
Computer Software and Services (csf)
Food Processing and Packaging Equipment (fpp)
Franchising (fra)
Jewelry (jlr)
Machine Tools and Metalworking Equipment (mtl)
Management Consulting Services (mcs)
Operations and Maintenance Services (oms)
Railroad Equipment (rre)
Pollution Control Equipment (pol)
Textile Fabrics (txf)
Textile Machinery and Equipment (txm)
Textile Products, Made-Up (txp)
Travel & Tourism Services (tra)
Trucks, Trailers, and Buses (trk)
Water resources equipment (wre)
Yarns (yar)

Belem

Consumer Electronics (cel)
Cosmetics and Toiletries (cos)
Footwear (fot)
Forestry and Woodworking Machinery (for)
Furniture (fur)
Household Consumer Goods (hcg)
Musical Instruments (mus)
Pulp and Paper Machinery (pul)
Toys and Games (toy)


Belo Horizonte

Air conditioning and refrigeration equipment (acr)
Building Products (bld)
Construction Equipment (con)
General Industry Equipment (gle)
Iron and Steel (irn)
Materials Handling Machinery (mhm)
Mining Industry Equipment (min)
Pumps, valves and compressors (pvc)


III. Commercial Environment

A. Political Factors:

Brazil is a democratic intermediate developing nation with the tenth largest
market economy in the world.  It has a diversified industrial, agricultural,
and services base, a GDP of U.S.$ 420 billion, and a wealth of resources,
both human and material, on 48 percent of the landmass of Latin America.

President Fernando Collor, the first democratically-elected President in
over two decades, took office in March 1990.  President Collor pledged to
open up the Brazilian economy to imports, sell off parastatal firms,
diminish the discretionary role of government bureaucrats in the workings of
the Brazilian economy, and, in general, to concentrate the government's
efforts to taming inflation, fostering eduction, healthcare, and social
justice.

Among the notable successes of the Collor government are trade
liberalization, decreasing the size of the federal bureaucracy, and the
creation of a more market-oriented economic system relatively free of
government interference.

Other successes have included the sell-off of some parastatals, the easing
of rules of investment and remittances by foreigners, and the adherence of
Brazil to the Southern Cone Common Market (MERCOSUL) and to the principles
of the Enterprise for the Americas Initiative.  Brazil is also attempting to
put its financial situation in order via pending agreements with the IMF,
the Paris Club and its commercial creditor banks.

However, there are significant problems remaining, and prospects for success
in the near-term are open to question.  One of these is inflation, which
remains stubbornly at the 20 percent per month figure despite a sharp
cutback in Brazilian Federal Government (GOB) outlays, and an orthodox
monetary policy that has had deep recessionary effects on the country.
Another is the inability of the GOB to get many of its programs passed by
Congress.  These include several significant constitutional amendments,
fiscal reform, and an intellectual property rights bill.  In addition, the
GOB has been plagued by charges of corruption, none of which have been
judged in court, but which continute to hamstring the process of governance.

B.  Economic Factors:

Upon assuming office in March 1990, President Collor began to implement
sweeping economic reforms to stop inflation and integrate Brazil into the
developed world.  Although Collor's first two economic programs signif
cantly reduced trade barriers and other distortions, the failure to address
Brazil's large structural fiscal deficits has resulted in double-digit
monthly inflation rates and a general lack of confidence in the government's
economic polices.  With inflation running at 20 percent per month in May
1992, the government is hoping to pass a tax reform package before the end
of the year.  Such a package -- in conjuction with a comprehensive debt
accord with commercial banks -- would help place Brazil's economy on a
sustainable growth path.

C.  Commercial Factors:

The Collor government opened Brazil's borders to imports, and now controls
imports through tariffs.  The last of the market reserve barriers, on
informatics goods, will end in October 1992.

In addition, most import tariffs have been falling over a four-year period
which ends in 1994, when Brazil will have an average tariff of 20 percent.
For products with no similar produced in Brazil, importers can petition the
GOB for a zero tariff.  U.S. exporters should keep in mind, however, the
additional taxes and fees can bring the landed cost of many imports to 100
percent of FOB prices.  Capital goods, however, have been exempted from the
industrial products tax through 1993 as a means of improving Brazilian
competitiveness.

The Ministry of Economy's DECEX (Departamento Nacional de Comercio
exterior), which replaced CACEX, is responsible for the day-to-day
administration of import and export licensing via the Bank of Brazil.  Bank
of Brazil offices normally issue import licenses within five to seven days
of application by a registered importer, although there are some reports of
longer delays.

Through sectorial commisions, the GOB intends to analyze the industrial
competitiveness of Brazilian industry and to liberalize those sectors which
require, for example, less bureaucratic intervention or lower import duties.

On June 20, 1991, Brazil signed with the United States a framework agreement
under the "Enterprise for the Americas Initiative" of President Bush, along
with Argentina, Uruguay, and Paraguay (the MERCOSUL).  Under this agreement,
negotiations are to be held in  and 1992 leading to a free trade area and
increased investments among the signatory countries.  The U.S. ultimately
envisions combining various bilateral and plurilateral agreements with Latin
American countries to create a hemispheric system of free trade in Latin
America.  To achieve this, free trade agreements evolving from the
Enterprise for the Americas will need to be largely consistent in scope and
terms with each other and with the form of the North American Free Trade
Agreement.

Investment Issues:

Investors should be familiar with the 1988 constitution, which contains
restrictions against foreign capital in selected industry areas including
mining, petroleum production and refining, public utilities, media, real
estate, shipping, and various "strategic industries."  More specific
investment restrictions apply in the informatics, telecommunications, and
defense industries.

Even with the existing restrictions, Brazil warrants a close look because of
its large domestic market, relatively high per capita income, and
diversified industrial and services sectors.  Brazil has begun a major
privatizaton program with ten sales concluded by mid-1992, but delays may be
encountered due to court challenges.

There are limits on the amount of stock of privatized firms that can be
purchased by foreign investors.  The rules governing privatization limit
foreign ownership to 40 percent in the first sale of the state enterprise,
but foreign companies can buy up to 49 percent of the privatized firm during
a subsequent resale.  Foreign capital invested in privatization must stay in
Brazil for six years before it can be repatriated.

Current foreign investment in Brazil is U.S.$ 36.7 billion, of which the
U.S. holds U.S.$ 10.6 billion or 28.9%, Germany has U.S.$ 5.2 billion, Japan
has U.S.$ 3.6 billion, and Switzerland has U.S.$ 2.9 billion. (Source:
Central Bank of Brazil)

As yet, no changes have been made in the regulations regarding the foreign
investment law.  The situation is being studied by the GOB, and changes to
reflect Collor's frequently stated welcome to such investors are expected.

General Attitude:

The change of government in March of 1990 offered Brazil the opportunity for
accelerated progress in many areas.  Many Brazilians remain sensitive to any
possibility of "exploitation" by foreign business interests, and the 1988
constitution reflects this characteristic.  The aging capital plant of the
country, the increased need for technology in order to compete worldwide,
pent-up domestic demand for foreign goods and services, and the youthful and
growing population appear to be propeling the government to further
accelerate the pace of change toward a fully-functioning market economy.

Laws/Codes:

The GOB has proposed a variety of changes that it wishes to make to laws
affecting trade and investment.  The Congress, which took office in February
1991, is only gradually looking at legislative initiatives.  Changes will
come slowly.  New provisions on capital goods, waiving industrial product
tax and accelerating depreciation, were passed, but only for a limited time,
into 1993.

Ownership:

As mentioned earlier, there are ownership restrictions for foreigners in key
sectors such as mining, petroleum, aviation, informatics,
telecommunications, public utilities, real estate, media, shipping, and
defense.  In general, in these sectors foreigners may only control 30 to 49
percent of voting stock. U.S. firms interested in these areas should consult
competent attorneys concerning these restrictions.

Marketing Considerations:

Despite the continuing problems of initial market entry, the infrequent
exporter can benefit from Brazil's market size and need for capital
equipment and technology in a marketing campaign that stresses medium to
long-term growth of import share.  Just as an experienced Brazilian
representative or distributor is essential to U.S. export growth, so too is
the need to consider competitive financing, distributor support, and
training.  U.S. exporters should be alert to all provisions of the laws
governing the use of agents and distributors, as these include potentially
large settlements at termination.

In those areas where U.S. exporters choose to compete, import market share
almost always grows quickly, as Brazilians have a keen interest to buy U.S.
goods.  Indeed, the U.S. is the largest trading partner, the largest
investor, and most U.S. multinationals have been in Brazil for decades.  It
has been estimated that half the bilateral trade flow in each direction is
for multinationals.  A potential exporter to Brazil should keep in mind the
demographics and the diversified industrial and talent bases of the country,
which sometimes tend to be overshadowed by the economic uncertainties.

Commercial Outlook:

1993 should show a growth in U.S. exports of six percent.  Should Congress
pass other liberalizing measures proposed by the GOB which reduce non-tariff
barriers, U.S. exports could grow even more significantly.  For the private
sector, capital equipment needs are quite substantial, particularly in
energy, telecommunications, and transportation.  Section II provides a
listing of best prospects, with growth forecasts.

The Collor government aspires to turn Brazil into a fully functioning market
economy as rapidly as possible.  Thus, there is every promise that the GOB
will continue to liberalize, streamline, and modify trade measures and seek
to attract new investment in the months and years ahead.

D. Social and Cultural Factors:

Urban growth has been rapid.  By 1984 the urban sector included more than
two-thirds of the total population.  Increased urbanization has aided
economic development but, at the same time, has created serious social and
political problems in the major cities.

Indigenous full-blooded Indians, located mainly in the northern and western
border regions and in the upper Amazon Basin, constitute less that one
percent of the population.  Their numbers are rapidly declining as contact
with the outside world and commercial expansion into the interior increase.
Brazilian government programs to establish reservations and to provide other
forms of assistance have been in effect for years but are increasingly
controversial.

Brazil is the only Portuguese-speaking nation in the Americas.  About 90
percent of the population belongs to the Roman Catholic Church, although
many Brazilians adhere to Protestantism and spiritualism.

As its geography, population size, and ethic diversity would imply, Brazil's
cultural profile and achievements are extensive, vibrant, and constantly
changing.

IV. Financing Environment:

Because Brazil has such a diversified economy with a sophisticated banking
sector, each financing package for each project should be examined on its
merits, rather than simply discarded on the basis that Brazil has financing
problems.  The wise trader/financier will keep in mind that this market has
been, and will continue to be, one of the largest in the world.

Basis of Payment and Financing Regulations:

On February 27, 1991, the Central Bank of Brazil issued Resolution 1798
which ended the previous requirement that Brazilian importers obtain
financing abroad.  As of this date all imports may be paid on sight.

Central bank resolution number 1537/88, which defines payment terms for
imports financed abroad, was revoked in 1991.  Payment conditions are now
negotiated between the financing institution and the loan maker.

FIRCE (the Central Bank agency responsible for regulating Brazil's foreign
capital) only controls financing for which the term of payment exceeds one
year.  For shorter term financing, DECEX (the Brazilian government agency
responsible for foreign trade), merely fills in a form with payment
conditions.

The Central Bank authorizes remittances only as follows:

Payment Terms as of June 1992

181 Days:  LIBOR   0.625 per year
360 Days   LIBOR   0.6875 per year
Over One Year   LIBOR   0.875 per year

Local Financing Possibilities:

Commercial Banks in Brazil do not provide long-term cruzeiro financing due
to prevailing high inflation and high interest rates.

The Brazilian Bank for Economic and Social Development (BNDES) finances
imported capital goods with funds from the Interamerican Development Bank
and the World Bank.  The operationis done through BNDES' financial agents
which are most of the local private banks.

The price of the equipment is converted into the local currency, cruzeiros,
and the loan maker will only reimburse cruzeiros.  The maximum coverage is
85 percent of the equipment FOB price for non-locally produced goods and 50
for equipment available in Brazil.  The financing cannot exceed U.S.$1
million.

The repayment period for small companies (net sales of less than
U.S.$130,000 per year) is five years and four years for medium and large
firms, with a grace period of six months after the start of operation of the
imported equipment.  The grace period cannot exceed two years.  The interest
rate as of June 1992 is 11.4 per year, which included the financial agent's
commission.

Brazil's banking system is very sophisticated and diverse.  Almost all
consumer bills (gas, telephone, light, rent, etc.) are collected by banks.
In order to meet the demand for these services, the local banks have
developed a very sophisticated system of check clearing and the collection
of receivables.  It takes on 24 hours to clear checks between cities located
within a distance of 250 miles.  There are not restrictions on inter-state
banking, this has stimulated the growth of branch banking.  Virtually all
money-center banks of the United States and other major trading nations are
located in Sao Paulo and Rio de Janeiro, and many have branches in other key
cities, offering a wide range of services to their clients.

Typically, local financing sources are used for local content costs and
foreign financing for the imported goods.  Often, a major public project
will require that financing packages be put together on the basis of 15
percent local content and 85 percent imported, with contract signatures
being delayed or the contract rendered inoperative until secured financing
is assured.

Foreign Sources:

The Export-Import Bank of the United States -- EXIMBANK -- is a major source
of financing for private sector projects in Brazil, both as a direct lender
and as a guarantor.  EXIMBANK's loans are not presently available for most
government-owned companies.  The rates, including the agent's commission,
the letter of credit, the commitment fee and all other taxes, are
approximately 11 percent a year, as of June 1992.

Seventeen American banks operate in Brazil, and several Brazilian banks
operate in the US, some of which are actively seeking trade financing
clients.  These include Banco do Estado de Sao Paulo, BANESPA (New York and
Miami) and Banco Mercantil de Sao Paulo (New York), among others.

Regarding industrial projects, The International Finance Corporation (a
division of The World Bank) also promotes productive private enterprise in
developing countries.  The Interamerican Development Bank has a similar
private sector financing arm, called Interamerican Investment Corporation.

Two other programs provide political risk insurance to U.S. companies
investing abroad:  OPIC (Overseas Private Investment Corporation) and MIGA
(Multilateral Investment Gurantee Agency), a division of the World Bank.
OPIC also has a finance program to promote economically viable investment
projects in the developing world.

Capital Repatriation:

Early in the new administration, dividend and profit remittances were frozen
briefly on the $1.8 billion in dollar deposits held in the Central Bank.
This measure was later reversed, and remittances now are flowing freely
again, some without any lag in processing by the Bank of Brazil.

In December 1991, Law 8383 eliminated the 60 percent tax surcharge on
foreign profit remittances as well as lowering the base tax for such
remittances from 25 to 15 percent.  Foreign firm remittances of profits and
dividends up to twelve percent of registered capital is allowed.

Countertrade Requirements:

Brazilian public sector firms are required to list countertrade among the
key factors in a public tender.  Nonetheless, financing terms and overall
cost/benefit analysis loom larger in the typical judgment of a tender than
does countertrade.  Private firms are not required by law to list
countertrade as a contract condition, but many firms in Brazil attempt to
negotiate countertrade provisions, particularly for large contracts.

Monetary, Fiscal and Exchange Rate Policy:

Brazil has often tried in recent years to tighten monetary policy and
thereby reduce inflation.  However, these policies were compromised by the
failure of the government to adequately address the fiscal deficit.
Ultimately, the central bank was forced to finance the deficit, which
resulted in inflation.  After Collor's first effort to suppress inflation
through heterodox economic policies, a new economic team substantially
raised real interest rates in November 1991 (overhight interbank funds rose
above 4 percent on a monthly basis) to halt the outflow of foreign exchange
and suppress inflation, which at that time was in excess of 25 perecnt/month.

This high-interest policy resulted in a reduction of the monthly inflation
rate to around 20 percent and brought a huge inflow of dollars (bringing
exchange reserves up to nearly U.S.$ 15 billion).  However, the cost of this
policy was a recession that started the last months of 1991 and continues to
the present (August 1992).  In addition, hight real interest rates have
substantially increased the cost of serving government domestic debt,
aggravating the fisca deficit problem.  High unemployment and poor fiscal
performance forced the central bank to ease real interest rates by several
percentage points in early May 1992.  Current central bank policy is to
maijntain interbank rates slightly above inflation.

As of June 1992, the cruzeiro was trading in a range of 3,500 to  the
dollar.  This range has held steady, but inflationary pressures and trade
needs may cause devaluation of the cruzeiro over the coming months.

V. Trade and Investment Issues/Barriers:

In 1991 the U.S. trade deficit with Brazil was U.S.$1.2 billion or U.S.$1.7
billion lower than in 1990.  U.S. merchandise exports to Brazil were
U.S.$6.2 billion, down U.S.$100 million or 2.0 percent compared to 1990.
Brazil was the United States' 17th largest export market in 1991.
U.S.imports from Brazil totaled U.S.$6.2 billion in 1991, or 22.5 percent
lower than in 1990.*

The stock of U.S.foreign direct investment in Brazil was U.S.$10.6 billion
through September 1991, U.S.$153 million higher than in 1990.  US direct
investment in Brazil is largely concentrated in manufacturing, finance and
services.*

A. Major Trade Barriers

Trade barriers continue to vanish as the Collor administration reforms take
hold.  Non-tariff barriers which existed previously are largely defunct.
The Informatics Law will expire in October 1992 (it has been de facto
ignored for some months).  However, ingenious potectionists at several large
Brazilian and multinational firms are trying to apply strategies in the
market, allegedly to protect Brazilian jobs, which effectively maintain the
barriers to imports.  There are several proposed "social agreements" which
would have the effect of severely limiting imports.  One of these, in the
automotive sector, would limit the imports of parts and accessories as well
as vehicles.  The automotive manufacturing sector is the largest in Brazil:
their actions would undoubtedly constitue a precedent for others.

If the automotive pact becomes official, the rush to copy it in other
sectors will be overwhelming.  The administration is currently opposing the
automotive pact but is running into strong political opposition from the
companies, unions and the state of Sao Paulo government.

Another tactic which is developing strong support among closet
protectionists in the private sector, as well as in the federal government,
is the use of MERCOSUL mechanisms to limit imports into the whole region,
effectively meaning Brazil.  The principal instrument would be to declare
the most protectionist legal mechanism of any of the MERCOSUL countries the
standard for the whole pact.  As this kind of mechanism is removed from
public scrutiny, free traders may in fact see such measures put in place.

Reductions of tariff barriers are being speeded up and most will probably
hit their targets in 1993 rather than 1994.  There is some slippage due to
the objections of affected sectors, but opposition is principally centered
on less visible areas.


*Source: Central Bank of Brazil

One area which must be carefully watched is the setting of import product
standards and packaging and labelling requirements.  These can be easily
altered to either be exclusionary, or manipulated by competitors to favor
their products.  Vigilance in this area is required.

The similarities test has largely vanished although it still is an
impediment to the reduction of some tariffs to zero in industries under
special stimulative regimes.

Import Policies:

Brazil traditionally followed an economic development policy which included
import substitution as a major element.  This policy has largely been
abandoned by the government of Brazil, and efforts have been undertaken to
open the Brazilian economy and reduce barriers to imports.

One area where progress has been evident is import licensing.  Import
licensing is now automatic within five days of requesting a license with a
few exceptions, most notably in the computer and related digital electronics
sector.  As a result of this change in Brazilian practice, on May 21, 1990,
the U.S. Trade Representative (USTR) terminated an investigation initiated
under the "Super 301" provision of the 1988 trade act, concerning certain
aspects of Brazil's restrictive practices pertaining to import licensing.

In addition, the Collor administration announced and implemented changes in
its import tariff regime and policy.  Tariffs are now the primary instrument
in regulating imports in contrast to the longstanding practice of severely
restricting imports through the import licensing regime.

In January 1992 the government of Brazil implemented the second phase of a
four-year tariff reduction plan for 12,400 items, a process initiated in
February 1991.  Following the latest reductions, the weighted average tariff
for 1992 is 21.2 percent ad valorem, down from 32 percent ad valorem in 1990
and 25.3 percent in 1992.  The plan calls for further reductions to 17.1
percent on October 1, 1992, and to 14.2 percent on July 1, 1993.  By 1994,
the maximum tariff level in Brazil is expected to be 35 percent ad valorem.
The United States continues to encourage tariff reductions on products of
interest to US firms.

The GOB also signed the Treaty of Asuncion on March 26, 1991, that provides
for the establishment of a common market involving Argentina, Brazil,
Paraguay and Uruguay by December 31, 1994.  The United States will monitor
this evolving process and encourage the reduction of barriers to trade and
investment (with an additional year for Uruguay and Paraguay to elimate all
tariffs on imports of goods of MERCOSUL countries).

Import Licensing:

One sector where restrictive import licensing remains a significant barrier
is computer hardware and related digital electronics equipment.  Currently,
one can apply for an import license, but the government of Brazil continues
to deny licenses to 42 categories of equipment in this sector, including
mini- and micro-computers.  This practice has been a key element of Brazil's
longstanding policy, known as the "Informatics" policy, designed to promote
the growth of a national industry.  The authority to restrict imports was
incorporated in the 1984 Informatics Law.

The authority of the Science and Technology Secretariat to restrict imports
is scheduled to expire October 29, 1992, under new legislation signed into
law on October 23, 1991.  The Collor administration has also indicated in
the context of the GATT balance of payments committee that it will not
extend this authority once it expires.  Furthermore, the Economy Ministry
indicated that the list of 47 categories of equipment could be reduced if it
is determined that the Brazilian industry is failing to make progress in
improving its competitiveness.  In February 1992 the list was reduced to 42
categories.

Government Procurement:

The federal, state, and municipal governments, as well as related agencies
and companies, follow a "Buy National" policy.  Brazil now permits foreign
companies to compete in any procurement-related multilaterial development
bank loans.  However, some state-controlled firms still specify contract as
open only to "national" firms and the criteria for the award of a recent
public works contract included "percentage of national ownership" of the
competing firms.

Although Brazil now applies "Buy National" policies informally, Article 171
of the new Brazilian Constitution provides for government discrimination in
favor of Brazilian companies with national capital.  However, no legislation
has been passed enacting the provisions of the Constitution relevant to
procurement.  Brazil is not a signatory to the GATT government procurement
code.

It is not possible to estimate the economic impact of these restrictions
upon U.S. exports.  However, free competition could provide significant
market opportunities for U.S. firms.

The United States seeks adoption of competitive procurement procedure,
elimination of any measures favoring domestic producers, and provision of
predictable, nondiscriminatory treatment ofr U.S. suppliers in Brazil's
government procurement.  To encourage Brazil to liberalize its own
government procurement markets, the United States prohibits awards of
government contracts to suppliers of Brazilian products for procurement
covered by the GATT government procurement code.

Lack of Intellectual Property Protection:

Patents:

Brazil does not provide either product or process patent protection for
chemical compounds, foodstuffs, or chemical/pharmaceutical substances.
Product protection is not available for metal alloys and for new uses of
products including species of micro-organisms.

Brazil requires a patent owner to work the patented invention in Brazil.  A
third party may request a compulsory license if a patent owner has failed to
work the patent within three years of issuance or if exploitation has been
discontinued for more than one year unless working is prevented by force
majeure.  Furthermore, the patent term of 15 years from the date of
application is relatively short.  Patents may also be forfeited for lack of
working.

The Collor administration publicly stated its intent on June 26, 1990, to
revise its laws pertaining to intellectual property rights.  Included in
this proposed legislation was protection for processed product patent
protection for pharmaceuticals.  As a result, on July 2, 1990, the USTR
terminated an ongoing section 301 investigation, and eliminated the 100
percent ad valorem tariffs imposed on certain Brazilian goods pursuant to
that investigation.  Subsequently, in May 1991, the Collor administration
submitted new legislation to its Congress.  However, the United States has
informed the government of Brazil that the proposed legislation contains
flaws.

The United States will continue to pursue adequate effective protection for
US intellectual property rights in Brazil.  Brazil was placed on the
"Priority Watch List" under the Special 301 Provision of the 1988 Trade Act
in May 1989 and remains on the list.

Trademarks:

In 1991, The National Institute for Industrial Property (INPI) cancelled six
thousand illicit Brazilian registrations of well know international
trademarks.  Unscrupulous individuals and phantom Brazilian corporations
have advanced registered thousands of recognized international trademarks in
attempts to earn huge profits from the sale of Brazilian rights for the
trademarks to the rightful multinational owners.  The Brazilian Government
hopes that cancellation of the bogus registrations will end illicit trade in
multinational trademarks.

All licensing and technical assistance agreements including trademark
licenses must be registered with INPI.  INPI participates as a third party
in technology transfer negotiations.  Failure to register with INPI
invalidates the license, which can result in trademark registration
cancellation for nonuse.

Copyrights:

Brazil's copyright law generally conforms to world standards except for the
term of protection.  The 1987 Software Law extended explicit copyright
protection to computer software.  However, enforecement of these laws has
been a problem.  Piracy of video cassettes, records, and computer software
continues at substantial levels.  Enforcement of laws against video cassette
and software piracy has shown some, but not sufficient, progress.

Market access for U.S. computer software remains a source of concern,
although it has significantly improved.  The Collor administration, in an
effort to open the Informatics Sector, has introduced legislation to
eliminate the so-called "Law of Similars," which had been used to preclude
non-Brazilian software from the market if a "similar" Brazilian domestic
software exists.  It should be noted that over 95 percent of U.S. software
seeking entry into the Brazilialn market has been granted entry in recent
years.  The Collor administration has also proposed the elimination of the
requirement that all software be distributed in Brazil by a Brazilian
distributor, and is considering doing away with the requirment that all
software be registered with the Government.   No decision has been made as
yet by the Brazilian Congress on these proposals.

Services Barriers:

Restrictive investment laws, administrative nontransparancy, legal and
adminstrative restrictions on remittances, and arbitrary application of
regulations and laws limit U.S. service exports to Brazil.  Service trade
possibilities are also affected by limitations on foreign capital
participation in many service sectors.

Foreign companies, particularly construction engineering firms, are
prevented from providing technical services unless Brazilian firms are
unable to perform them.  INPI, which must approve all technical service
contracts, often subjects them to substantial delays.  The US architectural,
engineering, and construction industries are also hindered by differential
tax rates, and a lack of transparancy in government regulations.  The
restriction of government contracts to Brazilian firms has been suspended,
but not abolished.  Barriers to the free provision of advertising services
include the requirements that two-thirds of television commercials' footage
and all of their soundtrack must be produced in Brazil, as well as continued
discrimination in government purchasing.

The United States is pursuing new rules for liberalizing trade in services
in the Uruguay Round.

Insurance:

Brazil's national insurance council has granted no new authorizations to
transact insurance since 1966.  Foreign investors may own no more than 50
percent equity and 30 percent of voting stock in an existing insurance
company, insurance brokerage, or private premium fund.

Brazil's resolution No. 3/71 of the National Private Insurance Council and
other governmental actions effectively restrict Brazilian import insurance
to Brazilian firms.  This denies US Marine cargo insurers an opportunity to
compete for business.  Resolution No. 3/71 also requires state companies
doing business with insurance brokerage firms to use 100 percent
Brazilian-owned brokerages.

All reinsurance in Brazil must be purchased by the government reinsurance
monopoly, the Reinsurance Institute of Brazil  (IRB).  This requirement
denies US reinsurers full participation in the local reinsurance market.
Requirements for withholding insurance premiums and outstanding loss
reserves also expose US reinsurers to serious exchange losses.  Brazilian
regulatory policy precludes the issuance of new licences.

Brazil is South America's largest potential insurance market.  The United
States will pursue rules for trade in insurance and other service industries
in the Uruguay Round negotiations and bilaterally as appropriate.

B. Major Investment Barriers:

Although Brazil officially welcomes foreign direct investment, its policies
toward such investment are often restrictive and discriminatory.  Foreign
investment is prohibited in several sectors, including petroleum production
and refining, public utilities, media, real estate, shipping, and various
"stragegic" industries.  Even with these restrictions, foreign direct
investment has increased and many U.S. and foreign firms have major
investments in Brazil.

In other sectors Brazil limits foreign equity participation, imposes local
content requirments, and links incentives to export performance
requirements.  Brazil also restricts the transfer of earnings and capital.
In some sectors foreign firms have no option but to form joint ventures with
Brazilian firms.

Brazil's constitution bars majority participation in direct mining
operations and bans foreign investment in health care.  However, these
constitutional provisions have not been implemented through legislation.

The Constitution imposes prohibitions on foreign capital participation in
land, river, coastal, maritime, and internal air transportaion as well as
foreign ownership of television, radio, and print media.  Foreigners are
also barred from owning land in certain coastal zones and other areas on
national security grounds.

The Constitution contrasts with the Collor administration's emphasis on
opening the Brazilian economy.  Accordingly, the adminstration has proposed
several constitutional amendments that would remove certain restrictions on
foreign investment, particularly in the mining and petroleum sectors.  Top
Brazilian officials have indicated nondiscriminatory treatment will remain
the rule in all sectors outside those where specific restrictions apply.
Sectors with such specific restrictions include informatics,
telecommunications, mining, and national security-related industries.
October 1991 legislation will remove many of the restrictions on investment
in the informatics sector as of October 30, 1992.

The Brazilian tax code was recently modified to eliminate, effective January
1992, the supplementary income tax (surcharge) on foreign profit and
dividend remittances that exceed 12 percent of registered capital, though
accruals through 1991 will continue to be collected during 1992.  In
addition, the Central Bank revised its internal regulations in December to
allow foreign firms to reinvest earnings at the exchange rate in effect on
the date of the new investment, rather than on the date on which the
earnings were declared.  This addresses the problem of capital erosion, due
to inflation, for foreign capital registration purposes during the interval
between earnings declarations and reinvestment.  Capital may still be
under-registered because some intangible capital assets, such as trademarks
and know-how, cannot be registered.  However, a bill now in the Brazilian
Congress would, if approved, lift the current prohibition on the transfer of
royalties and technical assistance fees from foreign subsidiary firms to
parent firms abroad.

Under the new 1992 tax code, Brazil has removed prohibitions on remittances
for royalty and technical service payments between related parties.
Royality payments between related parties can be deducted from earnings for
the purposes of computing Brazilian income tax.  Additionally, Brazil has
reduced the base tax rate on profits and royalty remittances from 25 percent
to 15 percent.

Investment restrictions have been discussed in ongoing bilateral discussion
of Brazil's informatics policies.  The United States is seeking
liberalization of Brazilian performance requirements within the Uruguay
Round negotioations on trade-related investment measures.

Informatics:

On October 23, 1991, President Collor signed a new informatics law which
effectively replaces the 1984 informatics law.  The 1984 law set up a series
of regulations tightly restricting foreign access to Brazil's computer and
peripherals industry.  The new informatics law eliminates the import
restrictions (market reserve) as of October 29, 1992, opening the sector to
foreign imports and investment.  Also the new 1991 law continues to offer
incentives and subsidies to the local informatics industry, and to
qualifying joint ventures.

Until the end of the market reserve in October 1992, official Brazilian
policy restricts the imports of a group of 47 informatics products.  The
list was reduced to 42 items, removing products such as OCR scanners,
workstations, optical disks, etc.  Trade analysts believe that the list will
not be reduced further before October 1992.  All other products not among
the 42 listed may be freely imported, subject to tariffs.

The informatics items on the list, however, may be imported only with the
prior approval of the Department on Informatics and Automation Policy
(DEPIN) of the Secretariat of Science and Technology.

The software law of 1987 allows the distribution of almost any type of
sofware in Brazil, with certain restrictions:   1)  a foreign product can be
denied importation if a similar product is available in the market
("similarity test") 2) foreign software can be sold only by Brazilian
companies without exclusivity clauses; 3) the local vendor must be a
distributor of the foreign supplier; 4) remittances are allowed only after
the software is sold.

As of August 1992, the Brazilian Congress has not yet voted on a new
Software Bill submitted by the executive in 1991 which could further
liberalize software imports to Brazil.

The main provisions of this bill include the elimination of the requirement
that imported software be registered with the Department on Informatics and
Automation Policy (DEPIN) and submitted to a similarity test, and the end of
the market reserve restricting the distribution of PC software to
Brazilian-owned companies.

Data Processing and Telecommunications:

All data received from unrelated parties must be processed in Brazil.  As a
result many data processors cannot compete in this market by using central
processing facilities abroad.  Foreign equity participation in Brazilian
telecommunications services industries is limited.  TELEBRAS, the state
telecommunications monopoly, gives preference to Brazilian equipment
suppliers.

Telecommunications in Brazil falls under the Ministry of Infrastructure's
Secretariat of Communications .  Under the overall trade liberalization
undertaken by the Collor government, administrative barriers (including the
law of similars) formerly applied to practically all telecommunications
imports were suspended.  However, in practice, full liberalization of
telecommunications imports has yet to be effected where restrictions under
the 1984 Informatics Law apply.  All devices incorporating digital
technology require prior approval by the National Informatics Council
(CONIN).  Nonetheless, the Secretariat of Communications has begun to define
how to implement the liberalization in the area of telecommunications.

For example, the Secretariat of Communications recently announced the end of
the market reserve in the telephone switching sector.  Future government
purchases of switching centers will be made through public bidding, ending
the cartel formerly retained by three major suppliers.

Improved market access for telecommunications hardware and services is part
of ongoing bilateral talks with Brazil.

Motion Pictures:

The U.S. motion picture industry has identified several major barriers to
the U.S. film industry in Brazil.  Two of the most problematic areas are a
requirement that all copies of films for theatrical and television
exhibition must be made in Brazil, and a requirement that a Brazilian short
film must be shown with any foreign feature film.  The Brazilian Cinema
Council (CONCINE) requires that 25 percent of the video cassette titles that
distributors release must be Brazilian.  This has the same effect as an
import quota.  The U.S. industry releases about 1,200 titles a year but only
about 15 Brazilian titles were released in 1989.

Piracy of home video cassettes remains the biggest problem despite
stepped-up enforcement efforts.  The Brazilian market is the 10th largest
foreign market in terms of revenue for all media and the largest Latin
American market for US motion picture distributors.  Brazil remains Latin
America's largest source for generating pirated US home video cassettes.

The motion picture industry estimates pirating in Brazil caused more than
U.S.$72 million in losses in 1989; U.S.$7.9 million of which was attributed
to the U.S. industry.  The cost to U.S. distributors of the local printing
requirement was an estimated U.S.$2 million dollars in 1988.

The United States has raised its concerns about motion picture industry
trade barriers during bilateral trade consultations.   U.S. motion picture
industry representatives work actively with Brazilian law enforcement
officials.  Their efforts have helped spur raids on distributors and retail
outlets of pirated video cassettes.

The U.S. motion picture industry is also working to modify the Brazilian
penal code and code of penal procedural rules to make criminal prosecution
of video piracy more effective.  The GOB has indicated its intentions, as
part of its overhaul of its economic policies, of opening the motion picture
sector to greater competition.

Aircraft:

Import costs are a deterrent to U.S. aircraft sales with weights of 40,000
Kg and under.  Although the import tariff is 5 percent for all aircraft
except those over 40 thousand kilograms, (whose tariff is zero) the
industrial products tax and the ICMS (merchandise circulation tax) plus
assorted other levies put the landed cost of imported aircraft at
approximately 29 percent of the FOB price in the United States.

In bilateral consultations some years ago, Brazil pledged to keep the
assorted tariffs at 20 percent.  The United States will continue to strive
to have this pledge restored and overall tariff rates reduced to a more
reasonable level.

MERCOSUL:

In June 1989, Brazil, Argentina, Uruguay, and Paraguay signed the treaty of
Asuncion to establish the parameters and schedule for formation of the
Southern Common Market, Mercosul. The treaty calls for the formation of a
customs union with free internal trade and a common external tafiff.
Argentina and Brazil are to reduce import duties for trade between
themselves to zero by year-end 1994; Paraguay and Uruguay are given an extra
year to reduce import duties to zero.  To arrive at the eventual elimination
on inter-Mercosul import duties by 1995, the member countries are reducing
import duty rates in progressive steps.

On July 27, 1992, the Presidents of the four member countries approved a
timetable for implementation, in December 1994, of a free-trade zone and a
common customs system with a common external tariff.


VI. Market Analysis Plan (MAP)

A. Industry Sub Sector Analysis (ISAs)


            1. Industry subsector
            2. Three-letter ITA industry code
            3. Due date
            4. Country
            5. Researcher
            6. Estimate of work days needed for research
            7. Justification for report
            8. Cost of report

      BELEM

      1. Paper Recycling Machinery
      2. Pul
      3. June 1993
      4. Brazil
      5. R. Teixeira
      6. 15
      7. The recent environmental issues in Brazil regarding the
         protection of its wood resources have led the local
         paper manufacturers to make a better use of wastepaper
         thus reducing the use of pulp wich in turn is a
         derivative of wood. The paper industry is thus looking
         for advanced paper recycling machinery.
      8. US$ 500 (travel, telephone, fax, statistics,
         publications, taxis)

      1. Lumber Mill Equipment
      2. FOR
      3. June 1993
      4. Brazil
      5. R. Teixeira
      6. 15
      7. Brazil has the world's largest wood resources.
         The largest portion of it is in the northern
         part of the country. only in the State of Para,
         for example, there are actually 70 active lumber
         exporting companies and more than 5,000 large,
         medium and small size lumber operations. To
         compete in the international markets in quality
         and price, these operations must look for
         advanced technology equipment wich can give them
         a better production and productivity.
      8. US$ 500 (travel, telephone, fax, statistics,
         publications, taxis)


      BELO HORIZONTE


      1. Air conditioning and Refrigeration Equipment:
         Parts and Components
      2. ACR
      3. July 1993
      4. Brazil
      5. J. M. Vasconcelos
      6. 15
      7. Brazil has one of the largest markets in the world for
         air conditioning and refrigeration equipment. Total sales
         are estimated to reach nearly US$ 2 billion, with an
         import share of over US$ 150 million.
      8. US$ 400 (Telephone, fax, publications, taxis, official
         statistics)


      1. Compressors and parts thereof
      2. PVC
      3. March 1993
      4. Brazil
      5. J.M. Vasconcelos
      6. 15
      7. Brazil imports nearly US dols 80 million annually of
         compressors and parts and its total market is estimated
         to reach over US dols 600 million.
      8. US$ 400 (telephone, fax, publications, taxis, official
         statistics).


      1. Coal
      2. Col
      3. July 1993
      4. Brazil
      5. J. M. Vasconcelos
      6. 15
      7. Brazil imports more than US Dols 500 million annually of
         coal. This market is expected to steadily increase in the
         next years, due to plans of the Brazilian government to
         deregulate the sector of electricity generation.
      8. US$ 400 (Travel, telephone, fax, publications, taxis,
         official statistics)


      BRASILIA

      1. Non-Prescription Drugs/Vitamins/Provitamins
      2. DRG
      3. February 1993
      4. Brazil
      5. M. Conter
      6. 15
      7. Brazil's trade liberalization has opened the market for
         these kinds of products, especially in large urban
         centers that have been influenced by the establishment
         of fitness centers that promote diet and health awareness.
      8. US$ 900 (Travel, Telephone, Fax, Publications,
         Taxis, Official Statistics).

      1. Cellular Telephone Equipment
      2. TEL
      3. December 1992
      4. Brazil
      5. R. D'Almeida
      6. 15
      7. One of the best potential sub-sectors in
         telecommunications for U.S. exporters for the
         next three years due to market opening.
      8. US$ 900 (Travel, Telephone, Fax, Publications,
         Taxis, Official Statistics).


      1. Telecommunications Value-added Network Services
      2. TEL
      3. May 1993
      4. Brazil
      5. R. D'Almeida
      6. 15
      7. One of the best potential sub-sectors in
         telecommunications for U.S. exporters for the
         next three years due to market opening.
      8. US$ 900 (Travel, Telephone, Fax, Publications, Taxis,
         Official Statistics).


      1. Agricultural Storage Facilities
      2. AGM
      3. December 1992
      4. Brazil
      5. M. Conter
      6. 15.
      7. Over twenty percent of harvested grain is lost
         due to poor storage and handling facilities.This sector
         presents a strong market opportunity for U.S. technology.
      8. US$ 900 (Travel, Telephone, Fax, Publications,
         Taxis, Offical Statistics).


      1. Agricultural Services
      2. AGM
      3. March 1993
      4. Brazil
      5. M. Conter
      6. 15
      7. The agri-business sector needs imported advanced crop
         and farm resourse management services to increase
         yields and to reduce variable operationing costs.
      8. US$ 900 (Travel, Telephone, Fax, Publications,
         Taxis, Official Statistics).


      1. Composing Systems
      2. PGA
      3. August 1993
      4. Brazil
      5. R. D'Almeida
      6. 15
      7. The printing market is seeking high-quality,
         high-end equipment to upgrade efficiency.
      8. US$ 900 (Travel, Telephone, Fax, Publications,
         Taxis, Official Statistics).


      RIO DE JANEIRO

      1. Gas Pipeline Installation Equipment and Services
      2. OGM
      3. November 1992
      4. Brazil
      5. E. Kvassay
      6. 15
      7. Nothwithstanding considerable domestic competition,
         trade liberalization and more open procurement
         policies at Petrobras are expected to boost the
         market opportunities for U.S. companies in this field.
      8. US$ 350 (Travel Telephone, Fax, Publications Taxis,
         Official Statistics).

      1. Programmable Logic Controllers
      2. PCI
      3. April 1993
      4. Brazil
      5. E. Kvassay
      6. 15
      7. In order to meet growing competition from foreign
         markets, obsolete instrumentation
         will have to be replaced with state-of-the-
         art controllers.
      8. US$ 350 (Travel, Telephone, Fax, Publications,
         Taxis, Official Statistics).

      1. Active Components
      2. ELC
      3. May 1993
      4. Brazil
      5. R. Cunha
      6. 15
      7. Brazil's open market policy and the government's
         intention to make the country's electronic sector
         competitive in overseas markets offers good
         opportunities for U.S. exporters
      8. US$ 350 (Travel, Telephone, Fax, Publications, Taxis,
         Official Statistics).


      1. Disposable Medical Products
      2. MED
      3. July 1993
      4. Brazil
      5. R. Cunha
      6. 15
      7. Brazilian medical authorities are engaging in a
         basic overhaul of the country's health care system.
         The demand for imported products of quality
         superior to that available from local manufacturers
         is expected to steadily increase.
      8. US$ 350 (Travel, Telephone, Fax, Publications,
         Taxis, Official Statistics).


      1. Electric Power Distribution and Transmission
         Equipment
      2. ELP
      3. September 1993
      4. Brazil
      5. R. Cunha
      6. 15
      7. Due to lack of adequate investment in the past,
         the Brazilian market for electrical power
         systems is not expected to keep pace with the
         country's demand for electric power, and
         necessary imports of equipment in this sector
         are expected to grow.
      8. US$ 350 (Travel, Telephone, Fax, Publications,
         Taxis, Official Statistics).

      1. Security Equipment
      2. SEC
      3. May 1993
      4. Brazil
      5. E. Kavassay
      6. 15
      7. Market size of this subsector is estimated at
         $250 million.  Reduced import duties and the
         elimination of non tariff barriers should
         stimulate imports.
      8. US$ 350 ( Travel, Telephone, Fax, Publications,
         Taxis, Official Statistics).


      SAO PAULO

      1. Fast Food/Restaurant Equipment
      2. HTL
      3. March 1993
      4. Brazil
      5. M. Volker
      6. 15
      7. The Brazilian market for Hotel and Restaurant
         Equipment is showing increased demand in the
         fast food segment, influenced by the expansion
         of franchise and specialty food stores.
      8. US$ 250 (Telephone, Fax, Publications, Taxis,
         Official Statistics).


      1. Franchised Fast Food Stores
      2. FRA
      3. April 1993
      4. Brazil
      5. M. Volker
      6. 15
      7. The franchise industry is showing high growth
         rates, and fast food stores are among the
         sectors that present good market opportunities
         for U.S. franchisors.
      8. US$ 250 (Telephone, Fax, Publications, Taxis,
         Official Statistics).


      1. Plastic Extrusion and Production Machinery
      2. PME
      3. January 1992
      4. Brazil
      5. M. Konno
      6. 15
      7. Market opening policy should present good
         opportunities for U.S. exporters.
      8. US$ 250 (Telephone, Fax, Publications, Taxis,
         Official Statistics).


      1. Chromatographic and Spectroscopical Equipment
      2. LAB
      3. May 1993
      4. Brazil
      5. M. Konno
      6. 15
      7. In order to meet the competition of imported
         products, and to upgrade the quality of Brazilian
         exports, domestic industries and research institutions
         will require a level of sophisticated instruments such
         as chromatographs and spectrometers which are
         available only outside Brazil.
      8. US$ 250 (Telephone, Fax, Publications,
         Official Statistics).


      1. Sludge Treatment and Management Equipment
      2. POL
      3. March 1993
      4. Brazil
      5. R. Eisenbraun
      6. 15
      7. The increasing number of companies required by
         environmental agencies to treat their effluents
         partially or completely is causing a high
         production of waste sludge. Companies and
         municipalities are having trouble disposing of this
         sludge properly.
      8. US$ 250 (Telephone, Fax, Publicatons, Taxis,
         Official Statistics).

      1. Automobile Emission Control Equipment
      2. APS
      3. June 1993
      4. Brazil
      5. R. Eisenbraun
      6. 15
      7. Stricter automobile emission standards imposed
         by the Federal Government is requiring auto
         manufacturers and owners to invest in emission
         control technologies.
      8. US$ 250 (Telephone, Fax, Publications, Taxis,
         Official Statistics).


      1. Autoparts
      2. APS
      3. September 1993
      4. Brazil
      5. R. Eisenbraun
      6. 15
      7. Import liberalization, reduced import duties,
         and higher foreign technology are stimulating
         the import of autoparts.
      8. US$ 250 (Telephone, Fax, Publicatons, Taxis,
         Official Statistics).

      1. High-End Microcomputers
      2. CPT
      3. April 1993
      4. Brazil
      5. D. Weiss
      6. 15
      7. This is one of the sectors that will most benefit
         from import liberalization
      8. US $ 250 (Telephone, Fax, Publications, Taxis,
         Official Statistics).

      1. Information Services
      2. CPT
      3. February 1993
      4. Brazil
      5. D. Weiss
      6. 15
      7. The information services market is still in its
         embryonic stages, but will quickly become a
         major segment in Brazil.
      8. US$ 250 (Telephone, Fax, Publications, Taxis,
         Official Statistics).


      1. Laser Making and Cutting Machines
      2. MTL
      3. April 1993
      4. Brazil
      5. T. Wagner
      6. 15
      7. U.S. firms should explore this market niche,
         because laser making and cutting machines made
         in the U.S. are extremely competitive. Although
         the Brazilian market for these products is
         estimated only at US$ 10 million, domestic
         demand is expected to grow as economic
         activity recovers in 1992.
      8. US$ 250 (Telephone, Fax, Publications, Taxis,
         Official Statistics).


      1. Non-Woven Fabrics
      2. TXF
      3. March 1992
      4. Brazil
      5. T. Wagner
      6. 15
      7. This is one of the sectors that will most
         benefit from import liberalization
      8. US$ 250 (Telephone, Fax, Publications, Taxis,
         Official Statistics).


      1. Filaments
      2. YAR
      3. August 1993
      4. Brazil
      5. T. Wagner
      6. 15
      7. Brazilian production is limited to traditional
         products of average quality and there is a
         lack of quality filaments and the latest
         generation products.
      8. US$ 250 (Telephone, Fax, Publiations, Taxis
         Official Statistics).


      1. Travel and Tourism Services
      2. TRA
      3. November 1992
      4. Brazil
      5. J. Haddad
      6. 15
      7. It is estimated that close to 500 thousand
         Brazilian tourists will visit the United States
         in 1992, when Brazil will pass Italy and become
         the number 8 generator of visitors to the U.S.
      8. US$ 250 (Telephone, Fax, Publications, Taxis,
         Official Statistics).


B. Trade-event Market Studies:

      1. Event Marketing Package on Process Control for
         Oil  & Gas
      2. PCI
      3. August 1992
      4. Rio de Janeiro
      5. E. Kvassay
      6. 10
      7. To support Oil/Gas Trade Fair in October 1992

      1. Event Marketing Package on Travel and Tourism
         Services
      2. TRA
      3. August 1992
      4. Sao Paulo
      5. A. Alexander
      6. 10
      7. To support Visit USA Travel Expo'93

      1. Event Marketing Package on Electronic Components
         and Electronics Industry Prod/Test Equipment
      2. ELC/EIP
      3. August 1992
      4. Rio de Janeiro
      5. Regina Cunha
      6. 10
      7. To support Electro/Electronics USA'93

      1. Event Marketing Package on Plastics
         Production Machinery
      2. PME
      3. October 1992
      4. Brasilia
      5. M. Conter
      6. 10
      7. To support Plastics Production Machinery
         USA'93 (pending)

      1. Event Marketing Package on Telecommunications
      2. TEL
      3. October 1992
      4. Brasilia
      5. Renata d'Almeida
      6. 10
      7. To support Telexpo USA'93 (pending)


      1. Event Marketing Package on Food Processing/
         Packaging Equipment
      2. FPP/PKG
      3. October 1992
      4. Sao Paulo
      5. M. Volker/R. Eisenbraun
      6. 10
      7. To support Food Processing and Packaging'93

      1. Event Marketing Package on Franchising
      2. FRA
      3. November 1992
      4. Sao Paulo
      5. M. Volker
      6. 10
      7. To support Franchising USA'93

      1. Event Marketing Package on Laboratory Scientific
         Instruments
      2. LAB
      3. November 1992
      4. Sao Paulo
      5. M. Konno
      6. 10
      7. To support Productivity/Instrumentation USA'93

      1. Event Marketing Package on Computer Software and
         Computers & Peripherals
      2. CPT/CSF
      3. December 1992
      4. Sao Paulo
      5. D. Weiss
      6. 10
      7. To support Compute USA'93

      1. Event Marketing Package on Medical Equipment
      2. MED
      3. December 1992
      4. Rio de Janeiro
      5. Regina Cunha
      6. 10
      7. To support Medical USA'93



VII. Trade Events Plan

FCS Brazil has scheduled the following events for FY 93 to assist U.S.
suppliers in promoting their products in Brazil.  For further information on
how to participate in such events, contact your nearest District Office.

A. Trade Events:


01. Event name:  STUDY USA'92 (CONTINUING EDUCATION SERVICES)
02. Event dates:  A) October 01-02, 1992;  B) October 05-07,
    1992; C) October 05-10, 1992; D) October 08-09, 1992; E) 28-29
03. Event location: A) Rio de Janeiro, R.J., Brazil; B) Sao
    Paulo, S.P., Brazil; C) Recife, PE, Brazil; D) Belo
    Horizonte, MG, Brazil; Brasilia, DF, Brazil.
04. Industry theme: Education & Manpower Training Services
05. Industry Code: EDS
06. Type of event: SFO
07. Name and phone number of Washington or post recruiter:
    Eduardo Altenfelder, (55) (11) 853-2011
08. Brief indication of what is projected for the event in terms
    of the export background of participants (Percent NTE/NTM):
    50 percent NTM
09. Estimated post permanent employee work days (US and FSN)
    necessary to plan, recruit, set up, hold, take down, and
    report on the Event: 30 days
10. Estimated dollar cost of event: USD 60,000.00
11. Frequency: annual


01. Event name:  OIL/GAS USA'92
02. Event dates: October 18-23, 1992
03. Event location:  Rio de Janeiro, RJ., Brazil
04. Industry theme: Oil and Gasfield Machinery and Services
05. Industry Code:  OGM
06. Type of event:  TFO
07. Name and phone number of Washington or post recruiter:
    Eduardo Altenfelder (55) (11) 853-2011
08. Brief indication of what is projected for the event in terms
    of the export background of participants (Percent NTE/NTM):
    60 percent NTM
09. Estimated work days:  10 days
10. Estimated dollar cost:  USD 0
11. Frequency:  Biannual

01. Event name:  EXECUTIVE AEROSPACE TRADE MISSION
02. Event dates:  November A) Nov. 11-15 B) Nov.15-18, 1992
03. Event location:  A) Rio de Janeiro, RJ, Brazil B) Sao
    Paulo,SP, Brazil
04. Industry theme:  Aircraft and Parts
05. 3-Letter ITA Industry Code: AIR
06. Type of event:  TM
07. Name and phone number of Washington or post recruiter:
    Heather Jones Pederson, [phone]
08. Brief indication of what is projected for the event in terms
    of the export background of participants (Percent NTE/NTM):
    60 percent NTM
09. Estimated post permanent employee work days (US and FSN)
    necessary to plan, recruit, set up, hold, take down, and
    report on the Event: 20 days
10. Estimated dollar cost: USD 7,500.00 Sao Paulo;  USD 4,500.00
    Rio de Janeiro


01. Event name:  MACHINE TOOLS USA'93
02. Event dates:  March 22-27, 1993
03. Event location:  Sao Paulo, S.P., Brazil
04. Industry theme:  Machine Tools & Metalworking Equipment
15. Industry Code: MTL
06. Type of event: TFO/TFW
07. Name and phone number of Washington or post recruiter:
    John A. Mearman [phone]
08. Brief indication of what is projected for the event in terms
    of the export background of participants (Percent NTE/NTM):
    80 percent NTM
09. Estimated work days (US and FSN) necessary to plan, recruit,
    set up, hold, take down, and report on the Event:  40 days
10. Estimated dollar cost:  USD 160,000.00
11. Frequency: annual

01. Event name:  VISIT USA TRAVEL EXPO'93
02. Event dates:  March 22-23, 1993
03. Event location:  Sao Paulo, S.P., Brazil
04. Industry theme:  Travel and Tourism Services
05. Industry Code:  TRA
06. Type of event:  SFO
07. Name and phone number of Washington or post recruiter:
    Eduardo Altenfelder (55) (11) 853-2011
08. Brief indication of what is projected for the event in terms
    of the export background of participants (Percent NTE/NTM):
    70 percent NTM
09. Estimated work days (US and FSN) necessary to plan, recruit,
    set up, hold, take down, and report on the Event:  30 days
10. Estimated dollar cost:  USD 50,000.00
11. Frequency:  annual


01. Event name:  TELECOMMUNICATIONS USA '93
02. Event dates: April 13-16, 1993
03. Event location:  Sao Paulo, S.P., Brazil
04. Industry theme:  Telecommunications Equipment and Services
05. Industry Code:  TEL/TES
06. Type of event:  TFO and TFW
07. Name and phone number of Washington or post recruiter:
    Eduardo Altenfelder (55) (11) 853-2011
08. Brief indication of what is projected for the event in terms
    of the export background of participants (Percent NTE/NTM):
    50 percent NTM
09. Estimated work days (US and FSN) necessary to plan, recruit,
    set up, hold, take down, and report on the Event:  30 days
10. Estimated dollar cost:  USD 60,000.00
11. Frequency:  annual


01. Event name:  MULTI-STATE CATALOG TRADE DAYS IN SOUTH AMERICA
02. Event dates: April 19-20, 1993
03. Event location:  Sao Paulo, S.P., Brazil
04. Industry theme:  A) Computers, Peripherals, Software;
    B) Telecommunications Equipment;  C) Surgical, Medical and
    Dental Instruments;  D) Food Processing and Packaging
    Equipment;  E) Energy Generation and Transmission Equipment;
    F) Automotive Equipment and Supplies.
05. Industry Code:  A) CSF;  B) TEL;  C) MED;  D) FPP;  E) ELP;
    F) APS
06. Type of event:  TM


07. Name and phone number of Washington or post recruiter:
    Thomas J. Pierpoint [phone]
08. Brief indication of what is projected for the event in terms
    of the export background of participants (Percent NTE/NTM):
    100 percent NTM
09. Estimated work days (US and FSN) necessary to plan, recruit,
    set up, hold, take down, and report on the Event:  20 days
10. Estimated dollar cost:  USD 12,600.00
11. Frequency:  biannual


01. Event name:  PLASTICS PRODUCTION MACHINERY USA'93
02. Event dates: May 17-22, 1993
03. Event location:  Sao Paulo, S.P., Brazil
04. Industry theme:  Plastics Production Machinery
05. Industry Code:  PME
06. Type of event:  TFO
07. Name and phone number of Washington or post recruiter:
    Eduardo Altenfelder (55) (11) 853-2011
08. Brief indication of what is projected for the event in terms
    of the export background of participants (Percent NTE/NTM):
    50 percent NTM
09. Estimated work days (US and FSN) necessary to plan, recruit,
    set up, hold, take down, and report on the Event:  40 days
10. Estimated dollar cost:  USD 90,000.00
11. Frequency;  biannual


01. Event name:  ELECTRO/ELECTRONICS USA'93
02. Event dates: May 3-7, 1993
03. Event location:  Sao Paulo, S.P., Brazil
04. Industry theme:  Electronics Industry Production/Test
    Equipment;  Electronic Components;  Telecommunications
    Equipment;  Advanced Ceramics
05. Industry Code:  EIP/ELC/TEL/CRM
06. Type of event:  TFO/TFW
07. Name and phone number of Washington or post recruiter:
    Joseph Burke [phone]
08. Brief indication of what is projected for the event in terms
    of the export background of participants (Percent NTE/NTM):
    30 percent NTM
09. Estimated work days (US and FSN) necessary to plan, recruit,
    set up, hold, take down, and report on the Event:  40 days
10. Estimated dollar cost:  USD 120,000.00
11. Frequency:  annual


01. Event name:  TELCOM TRADE MISSION
02. Event dates: TBD
03. Event location:  Brasilia, D.F., Brazil and Sao
    Paulo-SP,Brazil
04. Industry theme:  A) Telecommunications Equipment;  B)
    Telecommunications Services
05. Industry Code:  A) TEL B) TES
06. Type of event:  TM
07. Name and phone number of Washington or post recruiter: N/A
08. Brief indication of what is projected for the event in terms
    of the export background of participants (Percent NTE/NTM):
    25 percent NTM
09. Estimated work days (US and FSN) necessary to plan, recruit,
    set up, hold, take down, and report on the Event:  20 days
10. Estimated dollar cost:  USD 12,000.00


01. Event name:  FOOD PROCESSING AND PACKAGING USA'93
02. Event dates: June 22-25/1993
03. Event location:  Sao Paulo, S.P., Brazil
04. Industry theme:  A) Food Processing;  B) Packaging Equipment
05. Industry Code:  A) FPP B) PKG
06. Type of event:  TFO/TFW
07. Name and phone number of Washington or post recruiter: Gene
    Shaw [phone]
08. Brief indication of what is projected for the event in terms
    of the export background of participants (Percent NTE/NTM):
    50 percent NTM
09. Estimated work days (US and FSN) necessary to plan, recruit,
    set up, hold, take down, and report on the Event:  40 days
10. Estimated dollar cost:  USD 50,000.00
11. Frequency:  annual


01. Event name:  FRANCHISING USA'93
02. Event dates: August 1993
03. Event location:  Sao Paulo, S.P., Brazil
04. Industry theme:  Franchising
05. Industry code:  FRA
06. Type of event:  TFO
07. Name and phone number of Washington or post recruiter:
    Eduardo Altenfelder (55) (11) 853-2011
08. Brief indication of what is projected for the event in terms
    of the export background of participants (Percent NTE/NTM):
    80 percent NTM
09. Estimated work days (US and FSN) necessary to plan, recruit,
    set up, hold, take down, and report on the Event:  30 days
10. Estimated dollar cost:  USD 12,600.00
11. Frequency: annual


01. Event name:  PRODUCTIVITY/INSTRUMENTATION USA'93
02. Event dates: August 24-27, 1993
03. Event location:  Sao Paulo, S.P., Brazil
04. Industry theme:  Analytical, Instrumentation, Process
    Control, Quality Control and Electronic Measuring Instruments
05. Industry code:  A) LAB;  B) MED;  C) PCI
06. Type of event:  SFO/SFW
07. Name and phone number of Washington or post recruiter:
    Franc D. Manzolillo [phone]
08. Brief indication of what is projected for the event in terms
    of the export background of participants (Percent NTE/NTM):
    50 percent NTM
09. Estimated work days (US and FSN) necessary to plan, recruit,
    set up, hold, take down, and report on the Event:  40 days
10. Estimated dollar cost:  USD 150,000.00
11. Frequency: annual


01. Event name:  MEDICAL USA'93
02. Event dates:  August 3-6, 1993
03. Event location:  Sao Paulo, S.P., Brazil
04. Industry theme:  Hospital and Medical Equipment
    Control, Quality Control and Electronic Measuring Instruments
05. Industry code:  MED
06. Type of event:  TFO/SFW
07. Name and phone number of Washington or post recruiter:
    George B. Keen [phone]
08. Brief indication of what is projected for the event in terms
    of the export background of participants (Percent NTE/NTM):
    60 percent NTM
09. Estimated work days (US and FSN) necessary to plan, recruit,
    set up, hold, take down, and report on the Event:  40 days
10. Estimated dollar cost:  USD 108,000.00
11. Frequency: annual


01. Event name:  COMPUTE USA'93
02. Event dates: September 23-27/1993
03. Event location:  Sao Paulo, S.P., Brazil
04. Industry theme:  Computers and Peripherals; Computer
    Software and Services; Lasers and Electro-Optics; CAD/CAM/
    CAE/CIM/CO:  Electronics Industry Production/Test Equipment
05. Industry Code:  CPT; CSF; LAS; CAD; EIP
06. Type of event:  TFO/TFW
07. Name and phone number of Washington or post recruiter:
    Juddy Fogg, [phone]
08. Brief indication of what is projected for the event in terms
    of the export background of participants (Percent NTE/NTM):
    45 percent NTM
09. Estimated work days (US and FSN) necessary to plan, recruit,
    set up, hold, take down, and report on the Event:  40 days
10. Estimated dollar cost:  USD 150,000.00
11. Frenquency: annual


FOREIGN BUYER PROGRAM

Under the Foreign Buyer Program FCS Brazil actively supports recruiting of
Brazilian firms/potential importers to attend major exhibitions in the
United States, including the following:


                         Minexpo International'92
                         October 18-22, 1992
                         Las Vegas, Nevada
                         Lead Post:  Belo Horizonte

                         Automotive Aftermarket Industry Week'92
                         November 3-6, 1992
                         Las Vegas, Nevada
                         Lead Post: Sao Paulo

                         Pack Expo'92
                         November 8-12, 1992
                         Chicago, Illinois
                         Lead Post:  Sao Paulo

                         Wescon'92
                         November 17-19, 1992
                         Anaheim, California
                         Lead Post:  Rio de Janeiro

                         National Home Health Care Expo
                         November 18-21, 1992
                         Atlanta, GA
                         Lead Post:  Rio de Janeiro

                         Greater New York Dental Meeting
                         November 28-December3, 1992
                         New York, N.Y.
                         Lead Post:  Rio de Janeiro

                         Ashrae - International Air Conditioning,
                         Heating, Refrigerating Exposition
                         January 25-27, 1993
                         Chicago, Illinois
                         Lead Post:  Belo Horizonte

                         The Super Show
                         January 30-February 2, 1993
                         Atlanta, Georgia
                         Lead Post:  Rio de Janeiro

                         Promat'93
                         February 8-11, 1993
                         Chicago, Illinois
                         Lead Post:  Belo Horizonte

                         California Farm Equipment Show
                         February 9-11. 1993
                         Tulare, California
                         Lead Post:  Brasilia

                         National Manufacturing Week
                         March 8-11, 1993
                         Chicago, Illinois
                         Lead Post: Rio de Janeiro

                         Pittsburgh Conference and Exposition on
                         Analytical and Applied Spectroscopy
                         March 8-11, 1993
                         Atlanta, GA
                         Lead Post:  Sao Paulo

                         Conexpo'93 - International Construction
                         Equipment Exposition, March 20-25, 1993
                         Las Vegas, Nevada
                         Lead Post:  Belo Horizonte

                         Super Comm'93
                         April 19-22, 1993
                         Chicago, Illinois
                         Lead Post:  Brasilia

                         American Welding Society Exposition
                         April 27-29, 1993
                         Houston, Texas
                         Lead Post:  Belo Horizonte

                         National Restaurant Association
                         Restaurant Hotel-Motel Show
                         May 22-26, 1993
                         Chicago, Illinois
                         Lead Post:  Sao Paulo

                         Comdex/Spring'93
                         May 24-27, 1993
                         Atlanta, GA
                         Lead post: Sao Paulo

                         Hazmat International - International Harzardous
                         Materials and Environmental Management Conference
                         and Exposition
                         June 9-11, 1993
                         Atlantic City, New Jersey
                         Lead Post:  Sao Paulo

                         Waste Expo'93
                         June 16-18, 1993
                         Chicago, Illinois
                         Lead Post:  Sao Paulo

                         PC Expo in New York
                         June 22-24, 1993
                         New York, N.Y.
                         Lead Post:  Sao Paulo

                         National Hardware Show
                         August 15-18, 1993
                         Chicago, Illinois
                         Lead Post:  Sao Paulo

                         Networld 93 Dallas
                         August 31-September 2, 1993
                         Dallas, Texas
                         Lead Post: Sao Paulo

The following events are being promoted as though they were FY 1993 FBPs,
because they are significant for the Brazilian market:

                         Networld'92
                         October 13-15, 1992
                         Dallas, Texas
                         Lead Post:  Sao Paulo

                         ATME-I - American Textile Machinery
                         Exhibition - International
                         October 19-23,  1992
                         Greenville, S.C.
                         Lead Post: Sao Paulo