The president of the Institute of Applied Economic Research (IPEA), Márcio Pochmann, defended the creation of public policies that raise the number of exporters in Brazil in a public hearing before in the Chamber. He also stressed the importance of international trade in industrialized goods and transactions with non-industrialized countries.

According to Pochmann, Brazil has recently reached its highest degree of trade launch. Today, according to the President of the IPEA, nearly 25% of Gross Domestic Product derived from exports and imports, but only 1% of Brazilian companies export. The performance in the industry, he said, is limited to large companies.

Pochmann participated in debate in the Committee on Foreign Relations and National Defense on Wednesday (12). The public hearing was proposed to discuss the data disclosed by the book "Brazil: The State of a Nation”, original title “Brasil: O Estado de Uma Nação”, published by IPEA.

Small and medium businesses
The President of the IPEA said the amount of the exporting country could be enhanced by the small and medium businesses sharing in the industry with benefits to the labor market. "Studies performed by IPEA show that exporting companies pay better wages and hire professionals with higher education level", he explained.

Export incentives
To motivate export companies, Pochmann estimated that modifications would be needed on credit and exchange. He criticized the banking concentration in Brazil, which hampers the productive finance, and currency appreciation, which affects the export decision.

Pochmann also highlighted some of the measures for the Package of Incentives for exporters announced by the government on Wednesday (5). The strategy includes the creation of a subsidiary body of Brazilian National Bank for Economic and Social Development(BNDES) to finance exports, and tax benefits to stimulate the entry of small and medium businesses in the industry and the creation of a new insurance company.

Higher Value Added
The President of IPEA also said the fact that Brazil exports primary products is not a problem. But he said that more attention to the formation of feed-production chain of industrialized goods is required. "Brazil exports coffee in kind, but there are countries that sell industrialized coffee without having a single coffee bean plant."

He considered correct the government guidance since 2003 to seek new markets among developing countries. "Selling products of higher added value for industrialized countries is harder". "The situation is worsened during crises," he said while remembering that Mexico allocates 85% of exports to the U.S. and it seriously affected the country by global financial crisis that began in 2008.

Pochmann also said that considering protective measures for the country is required. “China wants to get 150 of the 500 largest transnational companies in the world. Brazil also should think about their national project", he said.

Reporting - Ralph Machado
Edition - Carolina Pompeu
Translation - Grupo Solucion-SP Language/Suzana Pinheiro Lara