Brazil: Chancellor boxes for British business April 2014
Published 16 April 2014
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Chancellor George Osborne visited Brazil from 5-9 April, the first bilateral visit by a British Chancellor for almost 20 years. He saw many sides of Brazil, from a British/Brazilian boxing charity in a military-occupied favela (shanty town) to meeting Government ministers, British and Brazilian executives and leading financial media. Commercial Secretary and former London 2012 CEO Lord Deighton accompanied the Chancellor.
The Chancellor saw and heard how Britain and British business was firmly back in Brazil. Britain is already the 4th largest foreign investor in Brazil and the Chancellor announced a new £22m investment by Rolls Royce and celebrated the £150m already won by British companies around Brazil’s major sporting events at the iconic Maracana Stadium. More opportunities are to come, and the Chancellor launched a new High Value Opportunity (HVO) in infrastructure, potentially worth £1.5bn over the next 4 years. And as the Chancellor boarded his plane, Dyson announced a new contract to supply Sao Paulo’s World Cup Stadium.
The visit reinforced the Chancellor’s export growth narrative outlined in the Budget last month. UK exports to Brazil are up 64% since 2009, and the visit highlighted how the UK government has supported British business to win £1bn in Brazil in FY 13/14 and £1.5bn in the oil, gas and marine sectors since 2012. In his keynote speech to an audience of business leaders in Rio, he announced support for private sector export finance to give the UK the world’s most competitive export finance offer.
Science and education links were strengthened with the global launch of the £375m SIN Newton Fund and the announcement of £3m a year for three years of Brazilian co-funding. The Chancellor also witnessed an agreement by Astra Zeneca to offer 30 research placements to Brazilian Science without Borders students, the latest step in deepening a programme worth £200m to the UK.
The significant opportunities in Brazil for UK financial services were demonstrated by the Hiscox launch of a new syndicate with Lloyds. A Q&A at the Sao Paulo stock exchange launched the Financial Services Trade and Investment Board’s programme to develop emerging markets’ capital markets, with Ken Clarke heading the Brazil workstream. Later, with Aberdeen Asset Management the Chancellor pitched UK investment opportunities to a group of Brazilian pension funds. The Chancellor also met one of the owners of the Globo media group, the largest in Brazil, to whom he outlined the UK’s tax benefits for audiovisual production.
The Chancellor and Finance Minister Mantega announced the establishment of a ministerial-level Economic and Finance Dialogue to strengthen bilateral cooperation. They discussed market access issues, EU-Mercosul FTA, and prospects for a bilateral double taxation agreement.
Lord Deighton’s programme furthered Olympic cooperation and delivery under the MOU signed in front of the PM and President Dilma in 2012. In a packed day of 2016 business Lord Deighton engaged with the top level Rio organising team on upcoming contracts. He also spoke to Brazilian companies about opportunities to invest in the UK and discussed PPPs in the infrastructure sector with Sao Paulo State.
The visit received widespread British and Brazilian media coverage. British coverage focused heavily on the commercial narrative, as well as visits to successful British supported social projects. In Brazil we estimate the visit reached an audience of 43m through print and online media, with the stock exchange event streamed live on the internet, ensuring the visit delivered key commercial messages to our target audience.
The Chancellor saw and heard for himself the opportunities, challenges and vibrancy of the world’s fifth largest country and seventh largest economy.
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