Brazil has begun a fight-back on falling exports as part of an elaborate multibillion-dollar plan to reverse trends generated by a strong currency and continuing downturn in the world's industrialized countries.
Large tax incentives to exporters to keep the flow of sales abroad also dented the government's finances in 2009 but measures announced Thursday would introduce loans instead of just tax breaks for exporters.
A strong real and a booming economy together have dampened demand for Brazilian exports and built up the import bill. Government economists cited rapid contraction of the economy, Latin America's largest, as a cause for worry.
Among export promotion measures unveiled is the creation of a new state lender, EXIM Brasil, that will help exporters with financial incentives.
Brazil's trade surplus in April, at $1.28 billion, was less than half that a year ago and the smallest surplus recorded for the month of April since 2002.
A series of government tax breaks to key industries in 2009 helped Brazil be among the first countries in the world to emerge from the crisis but the incentives also took a toll on the treasury.
Brazil has set eyes on Africa, the Middle East and East Asia as markets for potential growth. President Luiz Inacio Lula da Silva has unveiled plans for promoting exports of high-value items, including weapons produced by a resuscitated defense industry.
Although no specific measures for curbing imports are clearly within sight, officials said the government was poised to act quickly against any further overheating of the economy and was also watching international trends, particularly the unfolding debt crisis in Europe.
Despite the caution and worries over the burgeoning import bill, officials remain upbeat. Latest government projections revised upward an earlier growth forecast, saying the economy will grow 5.5-6.5 percent rather than 5.2 percent indicated previously.
Officials said they wouldn't want growth to go beyond that bracket to maintain fiscal stability.
Brazilian efforts are also focused on building up trade with the United States, still the largest investor in the country. The U.S.-Brazil trading relationship is valued at more than $46 billion.
This week the two countries ended talks in Brasilia that put emphasis on an innovation-focused agenda for future growth in trade.
The U.S.-Brazil Commercial Dialogue was co-chaired by U.S. Undersecretary of Commerce for International Trade Francisco Sanchez and Brazil's Secretary for Exports and Imports Welber Barral.
The dialogue, which began 2006, features working groups comprised of experts from both governments that develop recommendations to advance bilateral trade and investment between the United States and Brazil.
The two sides agreed to focus ongoing efforts to deepen commercial relations on five core themes: innovation and green technology, trade facilitation and business development, intellectual property cooperation, standards and metrology, and services and small and medium-sized enterprises.
"Using this innovation initiative as a guide, the working groups will build upon ongoing market opening and cooperation efforts with a view to deepening U.S.-Brazil trade and investment ties that foster innovation, economic growth and job creation," Sanchez said.
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