AfricaAsia NorthAsia South and SoutheastAustraliaEuropeLatin AmericaArgentinaBrazilChileCubaEl SalvadorGuatemalaMexicoPeruUruguayVenezuelaMiddle EastNorth AmericaPacific
Start writing the country or territory name in the box. Typing more letters narrows the search. Click "go" or hit "Enter" to go to the information paper on the country or territory.
(We don't have information papers on all countries and territories.)
New Zealand and Brazil have a friendly and developing relationship with many areas of common interest, both bilaterally and multilaterally. Bilateral relations have strengthened considerably since the launch of the New Zealand Government’s Latin American Strategy in August 2000. The establishment of the New Zealand Embassy in Brazil was one of the key elements of the Strategy. Prime Minister Clark presided over the official opening of the Embassy in Brasilia in November 2001. Brazil opened its Embassy in Wellington in 1997.
During the Prime Minister’s visit, agreements were signed on limited visa waiver arrangements, increased cooperation in science and technology, and regular political consultations. Greater government, political and people-to-people contacts have flowed from those initiatives. More than 10,000 Brazilians visited New Zealand in the year ended July 2007, with growth averaging 20% per annum over the past three years. More than 2,000 Brazilians now study in New Zealand each year (principally English language courses of varying lengths).
Bilateral merchandise trade remains at modest levels (NZ$240 million, year ended June 2007) with the balance of trade in Brazil’s favour. The pattern of New Zealand trade and economic interests in Brazil is shifting away from exports of goods towards investment and licensing arrangements, and trade in services. The most important of these has been the establishment by Fonterra of a substantial joint venture in the Brazilian dairy sector in 2003.
Brazil and New Zealand continue to work very closely together in many international organisations, not least in ongoing WTO negotiations aiming towards greater liberalisation of agricultural trade.top of page
The history of significant bilateral contact between New Zealand and Brazil is short. Brazil opened an Embassy in Wellington in early 1997. In recognition of increasing trade opportunities for New Zealand in Brazil, the Trade Development Board (now NZTE) moved its regional headquarters from Santiago, Chile, to São Paulo in 1999, opening an NZTE office as a New Zealand Consulate-General. The New Zealand Embassy in Brasilia was formally inaugurated in November 2001 by Prime Minister Helen Clark.
Brazil and New Zealand have a history of working closely together in international contexts, not least in the WTO, in efforts to liberalise agricultural trade. Both are members of the Cairns Group and are also founding members of the ‘New Agenda’ initiative on nuclear disarmament. Brazil and New Zealand also maintain regular contact on human rights, environment, Law of the Sea, whaling and Antarctic issues.
Traditionally dairy products have dominated New Zealand’s exports to Brazil, but the value of this trade has declined significantly in recent years. This reflects Brazil’s diminishing dependence on imports, together with a change in Fonterra’s business interests in Brazil. These are now dominated by direct investment in the form of the joint venture with Nestle, known as Dairy Partners Americas (DPA), which was launched in 2003. DPA currently operates in Brazil, Argentina, Venezuela, Colombia and Ecuador, and hopes ultimately to expand operations to the whole of the Americas.
Overall trade levels remain relatively low, with two-way trade totalling approximately NZ$240 million in the year ended June 2007. The balance of trade remains in Brazil’s favour. Coal, dairy products, other animal products and machinery account for the bulk of New Zealand exports. Brazil’s exports to New Zealand are dominated by soybean oil and other soy derivatives, fruit juice and machinery.
New Zealand business interests in Brazil are primarily focussed in the agriculture sector (including agricultural technology, consultancies, genetics), information and communications technology (including mobile applications), and services (including hospitality, education and tourism).top of page
Brazil is recognised as a market for New Zealand education services with considerable potential in secondary, tertiary and particularly English language education. More than 2,000 Brazilians now study in New Zealand each year, the majority at English language schools on course of varying length. Brazil is currently the largest South American provider of students to New Zealand.
Brazil is also a focus country for New Zealand’s NZ$70 million international education package, which aims to build stronger links with key education partners, including through provision of doctoral and undergraduate scholarships and student exchanges. The range of scholarship options now available for Brazilian students to study in New Zealand is attracting considerable interest in New Zealand as a study destination.
Several New Zealand secondary schools and universities have made joint or independent visits to Brazil to develop bilateral linkages with Brazilian institutions, and several universities – including Auckland, Otago, Lincoln and Massey - have signed cooperation agreements.
Visitor numbers from Brazil have increased steadily over the last five years. Over 10,000 Brazilians visited New Zealand in the year ended July 2007, with numbers increasing by over 20% per annum over the past three years. Brazil accounts for more than half of all South American visitors to New Zealand.
A visa waiver agreement is in force and New Zealanders and Brazilians travelling to each other’s country do not require a visa for visits of up to 90 days. A working holiday scheme with Brazil is near agreement.
There are no direct air links between New Zealand and Brazil, although the legal framework to start air services between Brazil and New Zealand is in place (a 1996 Air Services Agreement). Aerolineas Argentinas (via Buenos Aires) and Qantas/LanChile (via Santiago) currently provide the most direct air services between the two countries.top of page
Cultural links have expanded significantly since the launch of the Latin American Strategy in 2000:
The New Zealand International Aid and Development Agency’s Latin America Development Programme supports scholarships for Brazilian students, study tours and grants for Brazilian NGOs, with a focus on reducing poverty through initiatives to improve governance and to support sustainable rural livelihoods. Recent initiatives include:
Land area - 8,511,965 sq km
Population - 189 million (2007 est.)
Capital city - Brasília
Religion - Roman Catholic 73%, Protestant 15%
Language - Portuguese
Currency - Real
Political system - Federal Republic
National government - Loose leftist alliance comprising PT, PPS, PMBD, PL, PSB, PCdoB
National legislature - Congress of 513 member Chamber of Deputies and 81 member Senate
Last election - October 2006
Next election due - October 2010
Head of State - President Luiz Inácio Lula da Silva
Head of Government - President Luiz Inácio Lula da Silva
GDP - US$1,247 billion (2007 est.)
GDP per capita US$6590 (2007 est.)
Real GDP growth 4.2% (2007 est.); 3.7% (2006); 2.3% (2005)
Consumer Price Inflation 4.0% (2007 est.); 4.2% (2006); 6.9% (2005)
Exports - US$156 billion (2007 est.); US$137.5 billion (2006)
Imports - US$114 billion (2007 est.); US$91.4 billion (2006)
Trade balance - US$42 billion (2007 est.); US$46.1 billion (2006)
Current account US$9 billion or 0.7% of GDP (2007 est.)
Main exports - Aircraft, Vehicles & Parts, Soybean Products, Bulk Metals, Petroleum Products, Chemicals, Meat, Sugar and Ethanol
Main imports - Machinery and Electrical Equipment, Chemical Products, Oil and Derivatives, Transport Equipment and Parts
Foreign direct investment US$26 billion (first 8 months of 2007)
Gross external debt (public & private) US$162 billion (2007 est.)
Forex reserves US$160 billion (September 2007)
Exports to Brazil (FOB) NZ$110 million (year ending June 2007)
Main exports - Aircraft, Coal, Vehicles & Parts, Whey and Milk Products, Casein, Transmission Apparatus, Lactose, Agricultural Equipment
Imports from Brazil (CIF) NZ$130 million (year ending June 2007)
Main imports - Soybean Oil and Products, Fruit Juice, Oilseed Products, Animal products for Pharmaceutical Use, Motorcycles, Electric Motorstop of page
Portuguese explorers first came to Brazil in 1500. On 7 September 1822 independence from Portugal was proclaimed. The Republic comprises 26 states and one Federal District (the site of the capital, Brasília). Each state has its own elected Governor, legislature and judicial system. Over 5000 municipalities represent an important third tier of government.
From 1964 to 1985 Brazil was ruled by a military regime. In 1985 a transition to civilian government began, including the adoption of a new constitution in October 1988. The first popularly elected government and directly elected President followed in 1989. Today Brazil has strong democratic institutions, free and fair elections, a vocal free press and an active civil society, but corruption remains an entrenched problem.
The late 1980s and early 1990s were years of runaway inflation and economic shocks. The “Real Plan”, introduced in 1994, curbed those trends and resulted in a period of relative stability. In October 2002, the left wing Workers’ Party (PT) candidate and former union leader, Luiz Inácio Lula da Silva was elected President with more than 60% of the vote. It was his fourth attempt to win the Presidency.top of page
President Lula came to power amidst fears in international markets that he would overturn the Real Plan – sparking a deep decline in the Real and a down-grading of the country’s credit rating. However he surprised commentators by continuing the conservative fiscal and monetary principles of the Real Plan, while pursuing more socially inclusive policies at home and a more prominent leadership role for Brazil abroad. Following his re-election in October 2006, he promised his second term would reinforce this approach, with particular emphasis on accelerating economic growth.
Lula’s biggest challenge in his first term was to balance the realities of the government’s tight financial situation against the demands and expectations of his own supporters, desperate for action to address poverty, unemployment and crime. By the October 2006 presidential and national elections, he was able to point to some progress, including stable, if low, economic growth, lower unemployment figures, an expanded social welfare programme (known as the Bolsa Família) and the largest ever annual increases in the minimum salary. Lower income families saw real increases in their incomes over Lula’s first term.
Set against this, Lula’s first term also saw a wave of corruption scandals which shook public confidence in Congress and in the country’s political elite. Congressional investigative committees established to punish politicians implicated in the vote-buying and campaign financing scandals did little to restore public confidence. Lula’s party was initially hit hard, with a number of Lula’s closest advisors forced to resign. Lula himself, however, was not directly implicated in the scandals and was convincingly re-elected in October 2006.
In forming his second-term government, President Lula was successful in developing a broad enough party alliance to be able to pass his agenda through Congress. He took time to announce his second-term Cabinet – nearly six months – but the final result included greater provision for allied parties and a wider distribution of the spoils of office.
None of this however has enabled him an easier ride on passing legislation. Corruption scandals, one of them involving the President of the Senate, have continued to divert the attention of Congress from law-making. Lula has been forced to prioritise to some degree, with legislation to give effect to major planks of his Accelerated Growth Programme (the “PAC”) being his primary focus.top of page
Brazil’s economy grew by an average of 2.7% during President Lula’s first term, low compared to the performances of the other BRIC emerging economies (Russia, India, and China). But in the context of Brazil’s economic boom and bust cycles of recent decades, and international market expectations when Lula first took office, this masks some very real achievements: control of inflation, disciplined servicing of public debt, a gradual reduction in Brazil’s very high interest rates, significant expansion of Brazil’s exports, development of healthy foreign exchange reserves, and considerable strengthening of the Real.
Building on these achievements is the objective of the Accelerated Growth Programme (PAC). This has the objective of lifting Brazilian GDP growth to 5% per annum from 2008. Growth in the first half of 2007, running at an annualised rate of 4.3%, suggests that the country should come close to reaching the government’s growth target of 4.5% for 2007.
The main focus of the PAC is increased public and private investment in infrastructure and key industries, to the tune of US$235 billion over four years. It includes measures such as limited tax relief in capital investment-related areas, realignment of federal and state level consumption taxes, and some loosening (from 4.25% to 3.75%) of the primary surplus target to provide greater flexibility to fund the Federal Government’s US$32 billion share of the total package. The PAC represents a negotiated deal between the President’s Workers Party and its more centrist coalition partners over the balance between reform and spending.
Brazil is the world’s 11th largest economy (in US$ terms), accounts for approximately 45% of South America’s GDP and 47% of South America’s territory. Services account for over half the economy, but the country is also an agricultural and industrial giant. Brazil’s industrial sector, one of the most advanced and diversified in Latin America, accounts for 35% of GDP. Industries range from the manufacture of automobiles and parts, aircraft, steel and petrochemicals to cement, lumber, textiles, shoes, computers and consumer durables. It has significant deep-water reserves of crude oil and daily production is now equivalent to domestic demand. Brazil also has important reserves of iron ore, manganese, bauxite, nickel, uranium, other non ferrous metals and gemstones.
Agriculture and agribusiness have played a key role in Brazil’s recent economic performance with agribusiness exports accounting for over one third of Brazil’s export earnings. In 2006 Brazil was the world’s largest net agricultural exporter, and the world’s largest exporter of complex soy products, orange juice, coffee, beef, alcohol, sugar, tobacco, poultry and a significant world supplier of pork, cotton, cocoa, corn and fresh fruit. Brazil also registered its first ever trade surplus (albeit small) in dairy products in 2004 - reversing a significant trade deficit of previous years – and looks set to repeat the feat in 2007, with a US$12 million surplus registered in the first six months of this year. Brazil is also a world leader in the production and commercialisation of biofuels, both ethanol and biodiesel.
The potential for expansion in the agricultural sector is huge, with the USDA estimating Brazil could expand its land area in production by up to 170 million hectares without further deforestation of the Amazon. Brazil also has 12% of the world’s fresh water supply. Only a small proportion of Brazil’s agricultural production is exported – evidence of the size and dominance of the domestic market. Further expansion in agricultural production will require advances in market access for exports and significant investment in transportation infrastructure.
Brazil’s plantation of genetically modified crops, mainly soy, has grown rapidly. Brazil is now the world’s third largest producer of GM crops, behind the US and Argentina.top of page
Brazil enjoys a high international profile across a range of issues – including trade, peace, security and disarmament initiatives, the environment and human rights. Under President Lula, Brazil has become even more active, and aspires to a leadership role within South America and more broadly among developing countries. Brazil (with India and China) is also a frequent invitee to G-8 meetings - a sign of the global role it is now playing as a major developing country and emerging market.
MERCOSUR or the Southern Common Market is important to Brazil’s interests. It started as an imperfect customs agreement formed by Argentina, Brazil, Uruguay and Paraguay in 1994. President Lula has expressed the hope it might eventually develop along the lines of the EU. While MERCOSUR continues to have institutional and operational shortcomings, it has been instrumental in boosting intra-regional trade and developing an export orientation among Brazilian producers. It has engaged in negotiations and dialogue with a number of other blocs or countries including the Andean Community, the EU, South Africa, India and in the FTAA negotiations, with varying degrees of success. Venezuela was admitted as the fifth full member of MERCOSUR in July 2006.
President Lula has brought new urgency and commitment to the integration of South America. Largely as a result of his influence, the 12 countries of the region formed the South American Community of Nations in December 2004. Brazil is financing many of the major new infrastructural projects to link countries across the region.
Brazil is committed to creating “a new geography of foreign trade” to promote trade among developing countries and to act as a counter-poise to the influence of the large developed countries in multilateral trade negotiations. Brazil spearheaded the formation of the G20 group of developing countries in 2003 to press for liberalisation of trade in agricultural products at the WTO. The group has become an effective force in the negotiations. Brazil has also played a highly visible role as one of the G4 (US, EU, Brazil and India) grouping that has sought to define the key elements of a new multilateral agricultural trade deal. Brazil has enjoyed significant success in WTO trade disputes with the EU and the US over sugar and cotton.
President Lula has travelled overseas extensively, with a particular emphasis on developing South-South relations. Relations with Africa (which he has visited five times since taking office) have emerged as a major new element of Brazil’s foreign policy. Asia (China is one of Brazil’s top five trading partners), Russia, Europe and the Middle East have also seen increased emphasis under the Lula administration. President Lula has used summitry to explain Brazil’s case for permanent membership of the United Nations Security Council. Brazil has invested in its image and influence abroad, including its contribution of 1,200 troops to the UN peacekeeping force in Haiti, the opening of new Embassies in Africa, the hosting of the inaugural South American-Arab Summit in 2005 and the inaugural India-Brazil-South Africa Summit in Brasilia in September 2006.top of page
Embassy of the Federative Republic of Brazil, Wellington
The Safetravel website provides a travel advisory for travellers to Brazil [external link].
