{"id":324,"title":"Study: Brazil and Germany: A 21st-Century Relationship","link":"https:\/\/bst-europe.eu\/de\/globalization\/brazil-germany-21st-century-relationship\/","date":"1. September 2014","date_unix":1409565947,"date_modified_unix":1409565947,"date_iso":"2014-09-01T10:05:47+00:00","content":"<p>&nbsp;<\/p>\n<p>21st Century economic development may hinge upon the ability of developed economies to combine their expertise with the dynamism of emerging markets. With this in mind, <strong>Brazil and Germany<\/strong> present many opportunities for fruitful bilateral trade and investment.<\/p>\n<ul>\n<li><a href=\"https:\/\/bst-europe.eu\/wp-content\/uploads\/sites\/24\/2014\/12\/Brazil_Germany_ENGLISCH_final.pdf\" target=\"_blank\" aria-label=\"\u00d6ffnet in einem neuen Tab\" >Study: Brazilian and German Economic Relations (EN)<\/a><\/li>\n<li><a href=\"https:\/\/bst-europe.eu\/wp-content\/uploads\/sites\/24\/2014\/12\/Brasil_Alemanha_PORTUGIESISCH_final.pdf\" target=\"_blank\" aria-label=\"\u00d6ffnet in einem neuen Tab\" >Study: Brazilian and German Economic Relations (PT)<\/a><\/li>\n<\/ul>\n<p>Over the last year, the Bertelsmann Stiftung\u2019s Global Economic Dynamics project worked with a team of economists from Brazil\u2019s Funda\u00e7\u00e3o Get\u00falio Vargas to investigate the current state of Brazilian \u2013 German economic relations, as well as potential opportunities moving forward.<\/p>\n<p>The <strong>study Brazil and Germany<\/strong>: A 21st-Century Relationship Opportunities in Trade, Investment and Finance, authored by Andreas Esche, Samuel George, Dr. Thie\u00df Petersen and Thomas Rausch from Bertelsmann Stiftung and Dr. Renato Flores, Dr. Antonio Carlos Porto Gon\u00e7alves, and Dr. Viviane Maria Bastos from Funda\u00e7\u00e3o Get\u00falio Vargas, is the result of the collaboration.<\/p>\n<p>The study identifies significant areas of mutual interest between Germany and Brazil. In terms of comparative advantages, the Brazilian export portfolio features precisely those raw materials required by German manufacturers \u2014and which are largely absent in the German market. Conversely, German producers specializing in high-tech and knowledge-based goods could find an expanding consumer base both in the growing Brazilian middle class and in business-to-business trade with Brazilian partners.<\/p>\n<p>In terms of investment, Brazil would appear to be a prime destination for surplus German savings. For example, Brazil faces an infrastructure deficit while German firms have achieved particular sophistication in this field. For German firms, investment in this sector in Brazil can offer returns currently unavailable in Europe.<\/p>\n<p>Nevertheless, the relationship has yet to reach its full potential. Brazil\u2019s membership in the Mercosul trade bloc and Germany\u2019s membership in the European Union have hampered the ability of both to make progress in establishing a bilateral trade agreement. Capital flows between the two countries\u2014especially long-term foreign direct investments\u2014remain underwhelming.<\/p>\n<p>The study concludes with a series of recommendations aimed towards helping the relationship reach its weighty potential. The study\u2019s authors recommend prioritizing bilateral direct investment because this would not require EU or Mercosur approval.<\/p>\n","excerpt":"<p>21st Century economic development may hinge upon the ability of developed economies to combine their expertise with the dynamism of emerging markets. With this in mind, Brazil and Germany present many opportunities for fruitful bilateral trade and investment.<\/p>\n","thumbnail":null,"thumbnailsquare":null,"authors":[{"id":312,"name":"Thie\u00df Petersen","link":"https:\/\/bst-europe.eu\/blogger\/dr-thiess-petersen\/"}],"categories":[{"id":152,"name":"Globalization","link":"https:\/\/bst-europe.eu\/category\/globalization\/"}],"tags":[{"id":151,"name":"Publications","link":"https:\/\/bst-europe.eu\/tag\/publications\/"}]}