CNI data indicate that 60% of foreign diplomats are betting on the growth of the Brazilian economy in 2019

A survey carried out by the National Confederation of Industry also points out that 63% of representatives of the diplomatic corps rated tax reform as a priority in the country, followed by political and social security reforms.

An unprecedented survey of  National Confederation of Industry (CNI)  indicated that, for 60% of foreign diplomats, the Brazilian economy will grow in 2019. 13% of diplomats said they believe that Brazil's financial performance will be worse next year. Another 22% said they had no opinion and 5% did not respond.

To assess and understand the Brazilian political and economic scenario, the CNI heard 40 representatives of the foreign diplomatic corps residing in Brasília between September and October 2018. The survey can help the new government to develop international partnerships in the short term.

REFORMS  – In the opinion of diplomats, the approval of the tax reform should be a priority in 2019 – it was indicated by 63% of respondents. Then came the political (60%), Social Security (55%) and labor (50%) reforms.

  “The foreign diplomat who is in Brasília has an accurate view of the Brazilian economic and political scenario. They estimate that the Brazilian economy will improve in 2019, but that reforms need to be made, especially the tax reform”, says the director of Industrial Development at CNI, Carlos Eduardo Abijaodi, in an interview with the news agency “Portal da Industria”.

69% of diplomatic representations conceptualize the country as an important or very important actor in the international scenario. A portion of 25% of respondents said they were indifferent about the relevance of Brazil in this scenario. 3% said that Brazil is of little importance and 3% did not respond.

BILATERAL COMMITTEES  – Asked if their country had a bilateral committee with the Brazilian government to deal with issues such as foreign trade and economic policy, 35% of diplomats stated that they have a bilateral committee with Brazil, although it is not efficient. A share of 10% said that there is a committee and that it is efficient. Another 30% said there was no bilateral committee; 15% did not know how to respond and 10% did not respond.

60% of embassies feel the need to act to strengthen relations between Brazil and their country with regard to trade facilitation measures and the reduction of bureaucracy in the export and import processes. For 53% of respondents, this work should prioritize tax reduction and tax simplification in foreign trade operations.

Also considered by diplomats, 30% of them agree that the government should work to negotiate trade agreements. A portion of 30% of respondents also analyze that the work should emphasize the promotion of Brazilian investments abroad and promote business between Brazilian and foreign companies.

Asked which Brazilian government agency maintains a closer relationship, 83% of diplomatic representations cited the Ministry of Foreign Affairs (MRE). Then the Ministry of Agriculture, Livestock and Supply (MAPA), with 58% of responses. The Ministry of Industry, Foreign Trade and Services (MDIC) appears in third place, with 33% of the nominations, and the Ministry of Defense (MD) in fourth, with 20%.

“There is an opportunity for the new government to expand our dialogue with partner countries in underexplored areas, such as industrial development, innovation and tourism”, says the director of Industrial Development at CNI.

OPTIMISM WITH THE NEW GOVERNMENT  – The search  Portraits of Brazilian Society – Perspective on the New Government , released by the CNI in December last year, showed that, for 75% of Brazilians, the president-elect and his team are on the right path. In addition, two out of three Brazilians (64%) believe that the new government will be great or good. Only 14% say it will be bad or terrible.