Shrek Junior Monoploy

exchange leads industry of the state to seek foreign markets

The Federation of Industries of the State of Ceará (FIEC) promoted 23 of the Brazil-Germany Economic Meeting, with the aim of increasing the prospects for new business between the two countries. The inflow of investments in Brazil strengthens one of the keys to continued growth, the infrastructure. For Wagner
Belmonte

After two years of consecutive growth, the IBGE - Brazilian Institute of Geography and Statistics has measured a fall of 1.2% in the volume of economic activity. Government and opposition, once again gave the story a political economic discussion, which will be a preview of the 2006 campaign. However, the reason, according to some economists, would be in the high interest rates, the overvalued exchange rate and low public investment.

Veja magazine, to publish the study in the December 7, listed one by one what are the obstacles that impede the country to grow at the pace that economies of developing nations: the informality, the macro-economic failures, caused mainly by the imbalance in government accounts, the regulatory problems, the poor quality of public service and trivial - every study shows macroeconomic about Brazil - the issue of infrastructure. Poor infrastructure accounts for 5% of the barriers to Brazilian growth, according to the McKinsey study, published in the journal. A seemingly unremarkable were it not for its impact on sectors critical to the growth of the country.

One of the solutions for the investment in the Brazilian domestic market and hence for economic empowerment, is the bilateral negotiations between countries. Evidence that partnerships can work is the result after. 23 Brazil-Germany Economic Meeting, held in July in Fortaleza, capital of Ceará. Support in relations between the two markets will, of course, with the benefits to both parties, and Germany could ever predict it. "From the meeting, there was indeed synergy in contact with German business entrepreneurs Ceará. There was the potential of the state of Ceara as a vocation and as a point of international competitiveness, based on its location and also the Port of Pecem "says the chairman of the Federation of Industries of the State of Ceara - FIEC, Jorge Parente Junior Fleet. He said the port allows access to major international markets in the flow of production, which becomes possible for the Germans. Parente also celebrates the growth industry of the state in relation to slice it represents the Brazilian industrial GDP.

The prospect of increased turnover and investments in infrastructure in the Northeast is great, mainly because the intention is also to increase the growth of local industry. According to Parente, Ceara posted the highest industrial growth in Brazil in the first quarter of 2005 and throughout last year, the state ranked second. And that was not. "On results of the first half of this year, GDP grew in the industrial Ceará cumulative 6.1%, while the average was 5%," celebrates.

Although he had highlighted, Ceará was overcome by the states of Parana and Santa Catarina when it comes to industrial growth. Of the total $ 1 billion invested in the agreement between Brazil and Germany, $ 700 million went to make the project the German company TyssenKrupp in Rio de Janeiro, and between $ 200 and $ 400 million was directed to the port area of Brazil, closer to Santa Catarina, in the Port of San Francisco. The volume of investment toward the Ceará had not been accurate at the date of the meeting, but on the external market, Parente has already guaranteed a definition: "right now, we're formalizing the export of U.S. $ 5 million per year of products agribusiness to Germany. This, from the meeting, and have potential in the area of infrastructure. "

Currently, Ceará industries employ about 350,000 people. A result of growth of about 8% in the net salary and 5% in the overall workforce, according to Parente. Therefore, only the first half of 2005. "Now, it is noteworthy that industrial growth has also had an increase in wages paid, ie, an increase in the generation of more jobs and also with higher wages paid in addition to the occupancy rate of the industry of the state, which in the first half was around 80%, "he says.

winner of the medal of the UN Peacemaker Sergio Vieira de Mello, an honor given by the World Parliament for Security and Peace, Italy, Jorge Parente Junior Fleet demonstrates stimulus for further work by the state of Ceara. "Receiving a medal of that nature encourages, stimulates all Brazilians," he says.

The next meeting between Brazil and Germany is already scheduled to be held on July 8, 2006 in Berlin during the World Cup. The city of Blumenau, Santa Catarina, will host the event in 2007.

Manager - What does it mean for the economy of Ceará investment of $ 1 billion cooperation agreement in Brazil and Germany?
Parente - We claim to bring to the Meeting Ceara Brazil and Germany. We were sure that, from there, we would have a landmark bilateral negotiations between our state and Germany since virtually all German companies are located in southern and southeastern Brazil. It was a new scenario, a new horizon that we were offering for the Germans. From the meeting, there was indeed synergy in contact with German businessmen and entrepreneurs were identified Ceará potential and vocation in the State of Ceará, and point of international competitiveness, based on its location and also the Port of Pecem. It allows the docking of modern vessels and, through him, the Germans can access major international markets for the sale of production. Our vocations has been in the areas of business and technology that the Germans want to know. Germany is a big country, technologically advanced, but the economy has little room for expansion. The great frontier is expanding, since the Northeast has a few German companies working. So there is a great prospect for new business generation. Right now, we are introducing the export of U.S. $ 5 million per year of agro-industrial products to Germany and have potential in the area of infrastructure.

Manager - Priority areas are infrastructure, and of course energy?
Parente - Investment structure with a focus on energy and mainly in the area of biomass, but we must not forget that an agreement of this result is also a great investment in the tourist area.

Manager - In relation to public-private partnerships (PPP), which the Germans are willing to make in order to meet demands?
Parente - There was an official participation of Brazil, headed by Ambassador and Secretary General of the Foreign Ministry, Vieira Guimarães. The Germans charged, at the bilateral meeting that was at the close of the meeting, there was an easing in the legislation of the PPPs, setting clear rules.

Manager - Industry responds Ceará por qual coeficiente do Produto Interno Bruto (PIB) brasileiro?
Parente - Nós temos apenas 2,5% do PIB. É muito pequena a nossa participação. As exportações cearenses representam apenas 1% das exportações brasileiras, mas temos crescido. Os resultados dos últimos seis meses mostram claramente isso. No primeiro bimestre de 2005, o Ceará ficou com o maior crescimento industrial do Brasil. No ano passado, foi o segundo maior. No resultado do primeiro semestre deste ano, o PIB industrial do Ceará cresceu no acumulado 6,1%, enquanto a média brasileira foi de 5%. E estes são dados oficiais do IBGE. A média do nordeste ficou em 4,6%, pouco abaixo da média brasileira. O Ceará ficou 4th place in the first half and last year, was second. The year 2004 was the highest industrial growth in Brazil - 13.8% - but this year, in June, we were in 4th place. We lost to the Amazon, which has the Manaus Free Zone, a region that leverages the entire economy of that state. The Amazon, last year was the first place. This year, we were surpassed only by the Parana and Santa Catarina.

Manager - In this industrial growth, which is the role of the Port of Pecem?
Parente - He is an anchor for the flow to industries Ceará seeking overseas market. The implementation of the Port of Pecem, in fact, is an investment leverage, structural deployment and demand for investments in the state of Ceara. The location of companies at the Port of Pecem, however, is still small. With the implementation of steel in that municipality, industries certainly will occur in far greater numbers. Occur from the steel, a new setting and a new landscape of the industry of Ceará.

Manager - Industry of Ceara in the first half grew 6.1% versus 4.6% average in the northeast and 5% of the average of all the Brazilian economy, with all the Brazilian industrial GDP. What is the level of employment? The sector industry employs many people and has hired?
Parente - Overall, approximately 350 000 people in all industries of Ceara. Now, it is noteworthy that industrial growth has also had an increase in wages paid, ie, an increase in the generation of more jobs and also with higher wages paid in addition to the occupancy rate of the industry of the state, which in this first half stood at around 80%.

Manager - You mean there's 20% idle capacity?
Relative - No, we can say that because there is excess capacity and a seasonal industry, there must be also a flexibility for maintenance. So when you say you used 80% does not mean it has 20% idle, because there are flexibilities needed for maintenance. When the industry reaches 90%, is because it is almost exhausted and needs to be broadened to support its production. Our industrial growth of 6% will quickly result in investment in order expansions of companies and installations of new plants.

Manager - You told me that they are 350 000 employees in the industry of Ceará. The prospect to the end of the year, what is?
Parente - Overall there was in the first semester, an increase of approximately 8% in the mesh and a 5% wage employment in general. If we look, we're talking about 15,000 jobs in total more than 350 thousand jobs. Right now, we opened three industries in Ceará. One is in the shoemaking industry, which generates approximately 1,200 jobs. Another is the consumer electronics, with 700 jobs and the third in the order of 600 employees. There have been at this current government, a contribution of approximately $ 1.2 billion in investments in the state of Ceara.

Manager - Investments in the Brazilian economy are blocked by CLT and many foreign investors do not understand. How do you encourage foreign groups to invest here, with a law like this?
Parente - It's complicated. We are subject to an ancient law, overcome, which is an obstacle to the creation of jobs, mainly in industry, which has to be competitive. Under the Labor Code, labor relations and union are governed by laws outdated and do not correspond to modernity. It is not good for the worker, as it is not good for the entrepreneur. So we are fighting for there to be an agility, by the government in the process of examining the project of reform of labor law, but also of trade union law.

Manager - Why What has not changed today?
Parente - Because in Brazil is very difficult to change. This has created a working group on CNI (National Confederation of Industries), which has excellent advisors, who are studying and proposing measures better, more in line with our current working structure. However, in Brazil structural reforms are difficult to perform because there are often conflicting interests. It's really hard these changes move forward in Congress.

Manager - The balance of this Agreement with Germany provides for investments in energy, infrastructure and tourism?
Parente - Like I said, Germany saw here a new horizon they "unveiled" a new business area. For example, a German shipping company has operated the Port of Pecem, induction of the Federation, with modern vessels, the latest generation, with weekly lines to Europe. It takes seven days to reach the Port of Rotterdam, then goes to the port from England and arrives in 12 days, from the output here of Ceara.

Manager - In short: it is a competitive advantage?
Parente - Without a doubt, is a highly competitive advantage that the Port of Pecem and also provided the location of Ceara. The ships are now operating regularly and enable business of U.S. $ 5 million per year, made from Brazil and Germany.

Manager - What are the areas that will occur in generations of job vacancies?
Parente - Ceara has a vocation and international competitiveness, for example, in the textile, footwear, metal ores and non-metallic, the metal-mechanic sector etc.. We are making a great effort with the Department of Science and Technology Park in order to have a strong in Ceara, in computer science and information technology. Already 14 companies have signaled that in the affirmative and that they should settle in a technology park in the city of Eusebius, 25 km from Fortaleza.

Manager - What needs to happen for the industrial GDP of Ceará was higher than the coefficient of GDP?
Parente - Well, he's bigger than Brazil's growth last year and this year is keeping. But to have a sustained growth needs to continue growing. First, what's going on in this alliance between the Federation of Industries - Ceara and industrialists - and the State of Ceara, while making some adjustments in the legislation of the tax incentive and the investment performance of Ceara. And depending on the sector, are being made adjustments and adaptations required competitiveness. But we need, fundamentally, there is the Brazilian tax reform. She was not performed in depth what was intended, but by stages and, above all, it is necessary that the Brazilian macroeconomic policy reduces the tax burden, because it is one of the largest in the world. And it is necessary, primarily, that the interest rate applied in Brazil to become the interest rate compatible with the globalized world. We have 12% or 13% of net rate, since inflation has been declining over the past four months and the central bank has lowered the interest rate on indices insignificant. The interest rates in the European Union United States and even in the East allow companies to become more competitive. Here it is inhibiting industrial investment because the industry when it comes to the percentage of 80% utilization of its productive capacity is absolutely willing to invest in expanding its plant, but with the interest we have, it has the smallest option. The savings industry is small and the Brazilian state of Ceará is even lower then the industry must take in order to expand funding. What is the entrepreneur who will take financing without knowing what is on the other side of the interest rate is usually the industry to be competitive, does not work with pay more than 5%? How is he going to invest with the interest rate applied here in Brazil? So this is a very limiting factor.

Manager - And the dollar at $ 2.30?
Parente - rather it inhibits exports. The importer did export contract, in fact, is at its limit, finally made export contract when the dollar was R $ 2.80. They are almost 25% difference. But on the other hand, the dollar also handles some key components. So we have to seek an exchange rate policy consistent with this new position of Brazil in the international market because the country has already surpassed one US$ 112 bilhões no acumulado nos últimos doze meses de exportação. É uma marca extraordinária, mas se esse câmbio não melhorar, não sei se o Brasil continuará a manter o volume de negócios com o mercado externo.

Manager - O senhor acha que é possível blindar a economia da crise política?
Parente - Por enquanto está blindada. A crise política já está com mais de cinco meses e o que estamos vendo é que a economia está respondendo. O que não pode acontecer é ela durar muito tempo, pois a economia e a política são "vasos comunicantes" de qualquer nação, de qualquer empresa. Então, vamos esperar que haja uma apuração immediate of these events that are happening in Brasilia, there is serenity and who complete these CPI's, so that the country return to normalcy, for Congress to re-exert its function of legislating, and that the federal government is to execute and implement development policies for the country. In fact, today, the Brazilian agenda is all focused on the problem of the political crisis.

Manager - You could tell what the agricultural GDP of Ceara?
Parente - In Ceará, the agricultural GDP corresponds to 8% and there is a very strong contingent of people who depend on the primary sector. The industrial GDP is around 39% of all our activity, GDP in services is roughly 52%. So is the economy of Ceará.

Manager - The 23 th meeting between Brazil and Germany was the first to be held outside the South and South-East axis?
Parente - Yes, was the first time held in a northeastern state. It's a new horizon. We are to praise the initiative of President Armando Monteiro, the National Confederation of Industry (CNI), which accepted our demand. We went to Germany, claim, CNI has supported us and the Germans held here. We had the great satisfaction of knowing that Ceara will be a new option for the exchange between Brazil and Germany.

Manager - You received on July 25, the Medal of the UN Peacemaker Sergio Vieira de Mello, an honor given by the World Parliament of Peace and Security, based in Italy. What led to this honor?
Parente - I received with pleasure, with great honor and humility. Ambassador Sergio Vieira de Mello was a fantastic person, who dedicated his life to humanity, peace, the world and sacrificed for it. Receive a medal of honor nature and encourages any Brazilian. I received the award as an incentive to work we are working to uplift the state of Ceara and, increasingly, to provide competitive industry of the state.