ECONOMIC AFFAIRS COMMITTE
One of the great challenges to the establishment of international business and investments is to know the economic peculiarities of the other country. Possible uncertainties surrounding government policies (macroeconomic, tax or financial), the functioning of economic institutions or the level of legal certainty for the execution of business are some of the issues that may hinder investment decisions.
Founded at the same period of the establishment of CCBC, the Economic Affairs Commission (CAE) aims to promote debate, seeking to interpret trends, identify possible ways and discuss possible solutions with members. Its performance is not only through periodic meetings, but also through the sharing of macroeconomic information and sectoral assessments. Through the dissemination of these analyzes, CAE seeks to contribute to the rational decision-making by Canadian and Brazilian companies, aiming at the development and success of the business.
The economies of Canada and Brazil have important differences. With a population of 207.65 million, Brazil is almost six times more populous than Canada (with its 36.26 million inhabitants). Even so, Canada’s Gross Domestic Product (GDP) reached US$ 1.535 trillion in 2016, slightly less than the total recorded by Brazil (US$ 1.793 trillion). However, economic indicators show that, while Brazilian inflation reached 8.1%, the Canadian inflation rate was only 0.6%; or that industry’s share of GDP in Canada was 28 percent, ten percentage points more than Brazil’s.
The profile of the economies of the two countries is also different. In Canada, the service sector dominates, employing about three quarters of the workforce. The oil and gas industry is very important as Canadian territory has large oil and natural gas reserves. The country is quite open to the establishment of international trade agreements and has treaties with much of the world. Among them are the North American Free Trade Agreement (NAFTA) and the Asia-Pacific Economic Cooperation (APEC) group, in addition to the document signed with the European Union (EU) and the Pacific countries (the Comprehensive and Progressive Treaty Transpacific Association, or TPP11).
Brazil, which also stands out for having mineral and oil reserves, counts on the agricultural sector to maintain the balance of its trade balance, and houses a diversified industrial park. It is a founding member of the Southern Common Market (Mercosur), and is in the process of expanding business beyond this block, seeking partnerships in several areas of the world. The Brazilian opening process through free trade agreements takes place in an integrated way to Mercosur.
Currently, Brazil and Canada are also engaged in the first rounds of a trade agreement between Canada and Mercosur – which should further expand business opportunities between the two countries.