Swiss Business Delegation Heads To Brazil

by Ulrika Lomas, Tax-News.com, Brussels

08 February 2007

Doris Leuthard, the head of the Federal Department of Economic Affairs (FDEA), is leading a Swiss business delegation to Brazil with the aim of improving access to the Brazilian market for Swiss products and investment.

The visit, which commenced on February 6 and will continue until February 9, is expected lead to the signature of a Memorandum of Understanding between Switzerland and Brazil, and the creation of a Joint Economic Commission.

The establishment of this Commission represents the first solid step towards the implementation of the economic strategy for Brazil adopted by the Federal Council in December 2006. A further element of this strategy, which Ms Leuthard is taking up with her Brazilian discussion partners, is the improvement of the institutional framework for bilateral economic relations.

Brazil is one of the few countries with which Switzerland has so far had neither an investment protection agreement nor a double taxation convention. In terms of multilateral issues, the WTO Doha Round will be a subject on which Brazil, on behalf of the G20, will lobby for greater liberalisation of the markets for agricultural products.

In addition to discussions with a number of ministers, meetings are also being held with representatives of local business associations and Swiss business people active in Brazil. The delegation will also attend the opening of a Nestle production plant in the northeast of the country, at which President Lula is also expected to be present.

Brazil is Switzerland's most important trade partner in Latin America ahead of Mexico and Argentina. In the first eleven months of last year, Switzerland exported goods to the value of almost CHF1.3 billion (US$1.05 billion) to Brazil and imported goods to the value of CHF719 million. Compared to the previous year (2005), the volume of bilateral trade rose by over 25%. In 2005, the level of Swiss investment in Brazil amounted to CHF6.5 billion. Swiss firms provide employment for 91,000 people in Brazil.

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