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Expanding brazilian companies and investment to the united states

Expanding brazilian companies and investment to the united states

4 April 2017

2017 Gulf Coast Trade Alliance Conference

David Campbell, Esq.

Deputy Director, Investment Services

SelectUSA / International Trade Administration / U.S. Department of Commerce

Desk (202) 482-4750. Mobile (202) 815-5515

david.campbell@trade.gov

https://www.selectusa.gov/welcome

Slide 2

Key messages

1.SelectUSA is located within the U.S. Department of Commerce

2.SelectUSA promotes and facilitates business investment in the U.S. This includes foreign direct investment (FDI) and reshoring (U.S. companies bringing offshore operations back to the U.S.)

3.We serve two clients: 1) U.S. economic development organizations (all levels: state, county, municipal, regional), and 2) investors

4.We help investors to understand the reasons to invest in this country and to do business here

5.Our services to companies are FREE (except for some events)

6.FDI contributes to the national U.S. economy in all 50 states

7.FDI-supported jobs strengthen local economies, provide above-average wages, and contribute to U.S. goods exports

8.Brazil FDI is important to the U.S. (21st largest / 12th fastest growing)

9.The U.S. is open to businesses of all sizes in all sectors!!

10.Contact me (Washington, DC) or Andre (São Paulo) for assistance

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Slide 4

I

About SELECTUSA

3

About SelectUSA

I

About SelectUSA

OUR MISSION

SelectUSA’s mission is to promote and facilitate business investment in the United States. We are the single point of contact at the national level for international and domestic companies to invest in the United States.

OUR CLIENTS

  • and Potential Business Investors
  • Economic Development Organizations (EDOs)

OUR IMPACT

To date, SelectUSA has directly assisted in attracting more than $23 billion in client- verified investments to the United States.

4

Who We Are

I

Who We Are

OUR TEAM: U.S. DOC / INTERNATIONAL TRADE ADMINISTRATION

OUR NETWORK: INTERAGENCY INVESTMENT WORKING GROUP (IIWG)

20+ IIWG participating agencies, including:

U.S. Department of State (plus Embassies + Consulates)

U.S. Department of Homeland Security

U.S. Small Business Administration

Export-Import Bank of the United States

U.S. Department of Energy

U.S. Department of Defense

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Slide 7

II

FDI IN the United States

6

Global fdi trends

II

Global fdi trends

The United States is the Largest Recipient of FDI in the World

$3.1 Trillion

Source: United Nations Conference on Trade and Development http://unctadstat.unctad.org/

7

Fdi from western hemisphere

II

Fdi from western hemisphere

U.S. FDI Trends – Western Hemisphere

FDI from Western Hemisphere was $479 billion in 2015

US$ Millions

Source: DOC, BEA, FDI by UBO

8

8

Largest + fastest growing Sources of FDI

II

Largest + fastest growing Sources of FDI

Largest Sources of FDI in the United States

(by UBO)

Fastest-Growing Sources of FDI in the United States (by UBO)

Rank

Market

2015 Position (USD millions)

Share

1

United Kingdom

$568,948

2

Japan

$414,007

3

Canada

$391,948

4

Germany

$318,988

5

France

$251,375

6

Ireland

$200,502

7

Switzerland

$143,534

8

The Netherlands

$137,406

9

Spain

$61,378

10

Sweden

$50,875

11

Italy

$47,049

12

Australia

$44,925

13

Belgium

$43,335

14

South Korea

$38,174

15

Mexico

$35,516

1.1%

Rank

Market

2015 Position (USD millions)

CAGR

1

Argentina

$3,771

2

Chile

$2,475

3

China

$20,765

4

Malaysia

$1,613

5

South Korea

$38,174

6

Norway

$29,600

7

United Arab Emirates

$27,480

8

Colombia

$2,468

9

India

$11,345

10

Ireland

$200,502

11

Bermuda

$27,585

12

Brazil

$23,685

13

Hong Kong

$14,525

14

Japan

$414,007

15

Finland

$13,278

9.8%

Source: Bureau of Economic Analysis. UBO refers to Ultimate Beneficial Owner. CAGR refers to Compound Annual Growth Rate. Fastest-Growing Sources of FDI ranks markets with 2015 FDI stock in the United States greater than $1 billion.

9

Fdi in the united states by industry

II

Fdi in the united states by industry

2015 FDI in the United States

Breakout of $3.1 Trillion Inward Position

2004 FDI in the United States

10

Fdi in manufacturing

II

Fdi in manufacturing

Manufacturing FDI Compound Annual Growth Rate, 2010-2015

  • in Chemicals increased by over $105 billion since 2014 and it continues to be the largest, and now the fastest-growing, recipient of manufacturing FDI in the United States.
  • Manufacturing is the second-fasting growing recipient of manufacturing FDI (2009-2014 CAGR 24.9 percent to 2010-2015 CAGR 17.9 percent).
  • Transportation Equipment remains the fourth fastest-growing recipient of manufacturing FDI, the average growth rate between 2010-2015 has increased to 8.16 percent.

Source: Department of Commerce, Bureau of Economic Analysis

11

11

Fdi in “other industries”

II

Fdi in “other industries”

Other-Sector FDI Compound Annual Growth Rate, 2010-2015

  • Other sectors, affiliates in Holding companies (nonbank) and Mining industries are the two largest recipients of FDI in the United States, respectively.
  • in Health care and social assistance grew at a compound average annual rate of 16.2 percent between 2010-2015, up from 13.9 percent between 2009 -2014, keeping it as the fastest growing recipient of Other-sector FDI in the United States.

Source: Department of Commerce, Bureau of Economic Analysis

12

12

Slide 14

III

Brazilian investment in the usa

13

Brazilian fdi in usa

III

Brazilian fdi in usa

Total stock of FDI from Brazil in USA

1997-2015

$23.7B

Total stock of FDI from Brazil in USA in 2015 (by UBO)

14

Brazilian fdi in usa

III

Brazilian fdi in usa

Top 10 Brazilian investors: # of projects

Company name

Source country

No of projects

Global projects*

% of global projects**

Embraer (Embraer-Empresa Brasileira de Aeronautica)

Brazil

9

19

47.3

Gerdau Ameristeel

Brazil

5

6

83.3

Stefanini IT Solutions

Brazil

5

20

25

Gerdau Macsteel

Brazil

5

5

100

Pilgrim's Pride

USA

5

8

62.5

JBS USA Holdings

Brazil

5

5

100

Banco do Brasil Americas

Brazil

5

5

100

Ci&T

Brazil

3

4

75

Oxiteno

Brazil

3

7

42.8

Havaianas

Brazil

3

19

15.7

1

  • projects announced since 2003

–6$5.5 billion in total CAPEX

–615,400 total jobs created

–6100 different Brazilian companies

  • billion in cumulative FDI
  • largest source / 12th fastest growing source (CAGR 11.7%)

# of projects by type

Top 10 companies accounted for 48 projects (29% of total projects)

15

Brazilian fdi in usa

III

Brazilian fdi in usa

Size of companies by turnover

  • of companies have annual turnover of $5 billion or more
  • of companies have turnover of $25 million or less

Brazilian FDI by sector

Sector

No of projects

Jobs Created

 

Capital investment

 

Total

Average

Total (USD m)

Software & IT services

33

2,152

65

189.50

Financial Services

18

699

38

199.90

Food & Tobacco

17

3,268

192

473.60

Metals

14

943

67

442.80

Aerospace

11

1,178

107

265.20

Chemicals

11

395

35

579.70

Textiles

10

1,706

170

680.70

Automotive Components

5

358

71

41.30

Business Services

5

75

15

28.50

Coal, Oil and Natural Gas

5

1,004

200

1,282.20

Other sectors

37

4,415

119

2,446.40

Total

166

15,392

92

5,479.80

33.00

16

Brazilian fdi in usa

III

Brazilian fdi in usa

Source city

Projects

 

Companies

 

Jobs Created

 

No

%

No

%

Sao Paulo

77

46.39

48

43.64

6,927

Porto Alegre

13

7.83

5

4.55

745

Rio de Janeiro

12

7.23

10

9.09

1,373

Brasilia

11

6.63

5

4.55

412

Campinas

5

3.01

3

2.73

394

Total

166

100.00

110

100.00

15,392

5,479.80

Brazilian FDI by source city (top 5)

Destination state

No of projects

No of companies

Jobs Created

 

Capital investment

 

Total

Average

Total (USD m)

Florida

40

31

2,405

60

604.50

Texas

17

13

2,054

120

1,266.80

California

14

14

1,093

78

263.90

New York

12

12

636

53

168.90

North Carolina

9

8

729

81

297.00

Tennessee

7

5

503

71

386.00

Georgia

6

6

740

123

56.50

Maryland

5

3

1,356

271

213.60

New Jersey

5

5

284

56

55.70

Alabama

4

3

246

61

75.10

Other destination states

37

33

4,096

110

1,064.60

Not Specified

10

8

1,250

125

1,027.10

Total

166

110

15,392

92

5,479.80

33.00

Brazilian FDI by destination state

Top 5 cities account for majority of projects (30 total source cities)

Sao Paulo accounts for almost half of projects tracked

  • five account for majority of projects (30 destination states)
  • #1 destination (nearly 25% of total projects)

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Slide 21

III

Recent brazilian fdi projects

2/17 Clodam do Brasil, plastic bottle recycling company, to invest $7M in 10,000 sq. meter manufacturing facility in Jacksonville, Florida to employ 30. First US site.

9/16 Kalimo, vertical mill that specialises in digital prints and novelty knits, invested $60M in new showroom in Los Angeles, California to employ 100.

8/16 Fras-Le North America, manufacturer of automotive brake pads, subsidiary of Brazil-based Fras-le, invested $3M in new sales and engineering office in Southfield, Michigan to employ 50.

7/16 Havaianas, footwear company, subsidiary of Brazil-based Alpargatas, investing $60M to open new stores in the US to employ 100.

6/16 Chemyunion, creates and develops ingredients for personal care and pharmaceutical industries, invested $13M in US headquarters in Union, New Jersey, US to employ 50.

6/16 Pilgrim's Pride, poultry food processor, subsidiary of Brazil-based JBS, invested $24M to expand operations in Mayfield, Kentucky to create 155 jobs, part of company’s $190M capital investment plan.

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Slide 23

IV

Why Invest In the United States?

19

Why invest in the united states?

IV

Why invest in the united states?

  • most attractive consumer market

–6$18 trillion annual GDP

–6Population of more than 325 million

  • Investment Policy

–6Upheld by multiple administrations

–6Core obligation in bilateral investment treaties (BITs).

–6Ensures investors and investments receive treatment no less favorable than a country affords to its own investors and investments

  • export platform

–6Free trade agreements with 20 markets

–6Fast export procedures

  • fair and stable business environment
  • climate for innovation

–6Global leader in research & development (R&D)

–6Strong intellectual property protection (IPR)

–6Highly educated and productive workforce

–6

  • natural resources
  • stable energy supply

20

Motivations of Foreign Firms

IV

Motivations of Foreign Firms

Why do firms choose the United States?

Canada 4

Source: fDimarkets.com

Source: www.FDIMarkets.com

21

A winning investment climate

IV

A winning investment climate

#1

IESE Business School’s 2013 Venture Capital and Private Equity Index

22

#1

AT Kearney’s 2016 FDI Confidence Index (latest available)

#1

Global Entrepreneurship & Development Institute’s Global Entrepreneurship Index 2017

Slide 30

V

Ports + maritime infrastructure

23

Top U.S. Ports by Cargo Volume

V

Top U.S. Ports by Cargo Volume

Top 20 U.S. ports by total cargo volume, 2015

2.5B

Total annual cargo volume

(short tons) in the top 150

U.S. cargo ports in 2015*

*As ranked by the U.S. Army Corps of Engineers

Source: U.S. Army Corps of Engineers. 2015. Accessed March 2017.

http://www.navigationdatacenter.us/data/datappor.htm

24

24

Water infrastructure (Congress)

V

Water infrastructure (Congress)

December 16, 2016

Water Infrastructure Improvements for the Nation Act (WIIN)

–6Comprehensive legislation to address the needs of U.S. harbors, locks, dams, flood protection, and other critical water resources infrastructure.

–6Includes the Water Resources Development Act (WRDA) of 2016, which supports the U.S. Army Corps of Engineers’ (USACE) mission to oversee the nation’s water infrastructure by authorizing nearly $16 billion in federal funding for USACE activities. The WRDA also:

–6

  • several provisions that support various port interests and updates the Harbor Maintenance Trust Fu http://www.natlawreview.com/article/water-infrastructure-improvements-nation-act-wiin-water-infrastructure nd (HMTF); the amount of harbor tax revenues dedicated to HMTF will increase by at least 3 percent each year until 2025, when 100 percent of harbor tax revenues will be allocated to HTMF.
  • the cost-sharing formula for harbor deepening projects so that the federal government is responsible for 75 percent of dredging costs for projects that deepen the harbor up to 50 feet (prior threshold was 45 feet).
  • permanent the 10 percent allocation of HMTF appropriations for “emerging harbors” and permanently authorizes priority HMTF appropriations for underserved harbors and Great Lakes projects.
  • eligibility for the Donor Port and Energy Transfer Port grant program and extends authorization for this program from 2022 to 2025.

25

Infrastructure (white house)

V

Infrastructure (white house)

January 24, 2017

Executive Order: Expediting Environmental Reviews and Approvals for High Priority Infrastructure Projects

–6Allows governors or heads of federal agencies to request an infrastructure project be considered “high priority” so it can be fast-tracked for environmental review.

–6Once a request is made, the Chairman of the White House Council on Environmental Quality (CEQ) will decide within 30 days whether a project qualifies as a “high priority” infrastructure project.

–6Order was signed as part of a broader package on energy and infrastructure projects that included memorandum on the Keystone XL and Dakota Access pipelines, and manufacturing regulations.

26

Public private partnerships (p3)

V

Public private partnerships (p3)

32

U.S. states have authorized public private partnerships.

13 states have authorized for P3s for all types of infrastructure

27

Slide 39

VI

Healthcare + life sciences

28

Healthcare clusters: location quotient

VI

Healthcare clusters: location quotient

Darker color = more intense / active

Biopharmaceuticals

Insurance Carriers

Local Health Services

Medical Devices

*A location quotient value measures the concentration of a cluster in a specific location relative to the national average. It is the ratio of an industry’s share of total state employment in a location relative to its share of total national employment. Values greater than 1 indicate a higher than average cluster concentration in a location.

29

Healthcare sector: employment

VI

Healthcare sector: employment

8,021,800

Total number of healthcare practitioners and technical occupations in 2015.

In 2015, U.S. healthcare professionals earned an average of $37.40 per hour.

*Includes healthcare, technical, and healthcare support occupations

Source: Bureau of Labor Statistics, 2015. Accessed March 2017.

https://minerals.usgs.gov/minerals/pubs/mcs/2017/mcs2017.pdf

30

Fdi in healthcare

VI

Fdi in healthcare

77

Source Markets

Announced Healthcare FDI Projects in the United States from January 2003 to February 2017

Industry Sub-Sectors

31

Healthcare fdi in al, fl, la + ms

VI

Healthcare fdi in al, fl, la + ms

15

These 4 states capture nearly 20 percent of all healthcare-related FDI projects in the U.S.

Source Markets

Announced Healthcare FDI Projects in Alabama, Florida, Louisiana, and Mississippi from January 2003 to February 2017

Industry Sub-Sectors

32

Slide 48

VII

SELECTUSA SERVICES

33

SelectUSA Services for Foreign Firms

VIII

SelectUSA Services for Foreign Firms

ü6Information, Research & Strategic Counseling: We provide companies with information to support their decision-making process, including industry information and analysis

ü6Connections: Through direct introductions and SelectUSA events, international firms can meet U.S. state and local representatives

ü6Assistance: We help companies navigate the federal system and provide information about federal regulations and programs


34

Research & Resources for Firms

VII

INVESTOR services: INFORMATION & COUNSELING

Research & Resources for Firms

35

Slide 52

VII

INVESTOR services: INFORMATION & COUNSELING

Info Tools: ClusterMapping.us

http://www.clustermapping.us

Interactive database with over 50 million open data records on industry clusters and sub-clusters.

Comparable at the State, Economic Area, MSA or county level.

Also includes the cluster registry.

36

State Business Incentives

VII

INVESTOR services: INFORMATION & COUNSELING

State Business Incentives

üU.S. states and territories offer financial and other incentives to foreign investors.

üTo easily browse state investment promotion agencies and learn more about available incentives, simply visit http://selectusa.commerce.gov/.

37

Selectusa services for investors

VII

Selectusa services for investors

Connections to u.s. edos and

federal government agencies

to provide in-depth, on-the-ground expertise and guidance at a local level,

and information pertaining to federal regulations, programs and initiatives

ü6Direct, personalized introductions to regional, state, county and local economic development organizations (EDOs)

ü6Networking and investment promotion events like the SelectUSA Investment Summit, international investment road shows, trade fair pavilions, and seminars

ü6Connection to global network of federal investment and trade experts in 70+ international markets and 100+ U.S. offices

38

Selectusa services for investors

VII

Selectusa services for investors

Assistance navigating the federal system

to address company questions or concerns about

U.S. federal rules and regulations

39

Selectusa investment summit

VII

Selectusa investment summit

JUNE 18-20, 2017

The SelectUSA Investment Summit is the highest-profile event dedicated to promoting FDI in the United States. This signature event provides an unparalleled opportunity to bring together companies from all over the world, economic development organizations from every corner of the nation, and other parties working to facilitate business investment in the United States. 

The Summit's theme – "Grow with US" – will highlight the innovative business climate in the United States and feature investment opportunities from every corner of the country.

www.SelectUSAsummit.us

40

Contact us: investment services team

Contact us: investment services team

DOMESTIC + INTERNATIONAL PORTFOLIOS

The SelectUSA HQ porTfolio manager and/or the U.S. Commercial Service team in your location are your contacts for investment questions or cases.

REGION

Central Europe, Germany, and Brazil

David Campbell

David.Campbell@trade.gov

Greater China Region

John McKiel

John.McKiel@trade.gov

Latin America & the Caribbean Southeast Asia, Japan and South Korea

Keida Ackerman

Keida.Ackerman@trade.gov

Middle East & Africa, Canada

Steve Miller

Steve.Miller@trade.gov

France, Benelux, Spain, Portugal, Oceania and South Asia

Seth Isenberg

Seth.Isenberg@trade.gov

Eastern Europe, Italy, Balkans, Russia, Nordics, Baltics, United Kingdom and Ireland

Diana Fonovich

Diana.Fonovich@trade.gov

(202) 482-5199

IN-MARKET INVESTMENT SPECIALISTS

Canada

Mexico

Brazil

France

Germany

Jana Dorband

UK

Switzerland

India

Israel

Ireland

Japan

June Chino

Singapore

Zac Ong

Domestic Portfolios: https://www.selectusa.gov/portfolio-domestic

41

Slide 61

www.selectusa.gov

www.selectusasummit.us

@SelectUSA on Twitter

  Andre Leal

  SelectUSA Investment Specialist

  U.S. Consulate General, São Paulo / U.S. Commercial Service

  T. +55 11 3250 5416

   Andre.Leal@trade.gov | www.SelectUSA.gov

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