Run-off features highly contrasting approaches to the economy   

October 12, 2018

Political scientists love elections pitting one clear-cut alternative against another. In Brazil’s looming presidential run off they have been granted their wish, at least when it comes to the rhetoric. Hard-right candidate Jair Bolsonaro, free marketeer favoring massive privatizations, goes up against leftist welfare state proponent Fernando Haddad. Read the rest of this entry »

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Low reservoir levels to pose electricity challenge for next president

October 4, 2018

Brazil’s next president is likely to confront a power crisis already in the beginning of the term, in January 2019. Initially, there are no significant signs of risk of power shortage next year, but electricity rates are likely to continue high because of the need of dispatching costlier thermal stations to spare water from hydroelectric reservoirs. Read the rest of this entry »

Moro unseals explosive testimony of Palocci

October 2, 2018

Federal Judge Sergio Moro unsealed part of the informant deal of former minister Antonio Palocci, adding fuel to an already incendiary campaign only six days from the presidential election. Read the rest of this entry »

Brazilian mango exports reach record volume in first half

September 24, 2018

Driven by rising supply and strong European demand, Brazil’s mango exports have reached a record volume from January to June and are expected to continue rising in the coming months. Mango sales abroad totaled 57,300 tonnes in the first six months of 2018, up 8.7% from the same period of 2017, and consolidated its position as Brazil’s leading fruit export. Revenues remained stable at around $64 million, according to data from Secretariat of Foreign Trade (Secex/Mdic). The price decrease signaled by stable sales value has been offset by the weaker real against the dollar.

Remittances from Brazilians overseas reach highest level in 10 years

September 14, 2018

Remittances sent by Brazilians living abroad totaled $1.2 billion in the first half, the highest level in the last ten years. Read the rest of this entry »

Business interests still making politics despite donation ban

September 13, 2018

Business owners and trade groups are still mobilizing to elect their chosen politicians despite the ban on private-sector donations, according to lawmakers, lobbyists and campaign workers. Read the rest of this entry »

Trump, national security and steel making

April 25, 2017

The Constitution of 1988 proposes the construction of a civilized society. Its supreme values are: 1) the broadest individual freedom; 2) the systematic pursuit of equality of opportunities; and 3) constructing an efficient coordination of the economic activity of citizens compatible with them. The three conditions are not easily accommodated. The long history of mankind suggests that so far the only available form of coordination capable of hosting freedom and equality is through “markets.” For its good operation they demand the private property, which reduces the equality and puts at risk the democratic legitimacy. Read the rest of this entry »

Government prepares National Plan for Internet of Things

February 23, 2017

Gilberto Kassab, minister of Science, Technology, Innovation and Communications, says the so-called “internet of things” could generate R$200 billion for the Brazilian economy by 2025 and revealed the government is working on a plan to encourage the industry. On Thursday, while heading the Brazilian delegation to Barcelona’s Mobile World Congress, the minister said the plan might include adjustments in industrial policy, telecom regulation, project and innovation financing, and labor training. Officials even study directing tax breaks to suppliers and manufacturers who join the production chain, but any changes would require reforming the Law of Informatics.

A GOP Regulatory Game Changer

January 27, 2017

Legal experts say that Congress can overrule Obama regulations going back to 2009.

bn-rv070_pw0127_jv_20170126181434Todd Gaziano on Wednesday stepped into a meeting of free-market attorneys, think tankers and Republican congressional staff to unveil a big idea. By the time he stepped out, he had reset Washington’s regulatory battle lines. Read the rest of this entry »

Federal government may lose R$500bn in cases linked to tax issues

January 2, 2017

Nine tax issues discussed in lawsuits in both the Federal Supreme Court (STF) and the Superior Court of Justice could together amount to R$500 billion in losses for the federal government if it is defeated in all of them. The case with the greatest impact on public coffers — estimated at R$250 billion — will define if sales tax ICMS is included in the calculation basis of social contributions PIS and Cofins. The case has not yet begun to be tried in the STF. Other pending issues are the definition of an input to obtain PIS and Cofins credits, valued at R$50 billion, and the possibility of collecting PIS and Cofins on revenues from financial institutions, which may reach almost R$136 billion. There is also expectation that the courts will review the right of a credit related to the Tax on Industrialized Products (IPI) in the acquisition of exempt inputs from the Manaus Free Trade Zone.