ALTHOUGH thousands of kilometres apart, there are some striking similarities between Brazil and Western Australia that could prove lucrative for local companies.
ALTHOUGH thousands of kilometres apart, there are some striking similarities between Brazil and Western Australia that could prove lucrative for local companies.
One basis for those similarities springs from the two nations once being part of the ancient super continent Gondwanaland.
Geologists suggest that the composite continent of Gondwanaland, that was made up of South America, Australia, Africa, Antarctica, and India began to break up around 130 million years ago forming resource rich continents that are now exploited in the sphere of international trade.
Austrade estimates the value of Australia’s direct investment in Brazil in 2003 was approximately $1.604 billion.
Australian investment in Brazil remains the strongest in the mining and resources sectors, however, new opportunities for Australian businesses are emerging.
It is a little known fact that Brazil’s landmass is 10 per cent larger than Australia’s and, therefore, the nations share many of the same challenges including border protection and infrastructure for remote resource projects and communities.
Australian ambassador to Brazil John Sullivan, who was in Perth last week to address a WA Business News Meet the Ambassadors luncheon, said these similarities presented many opportunities for companies in WA wanting to do business in Brazil.
Drawing parallels between WA’s North West and Brazil Mr Sullivan said the transport of minerals and energy from remote interior locations to ports and centres for trade and export was one such area of opportunity.
“Australian companies that might have some expertise in transport and software in management of logistics should be keeping an eye on Brazil because there could be opportunities there in the next couple of years,” he said.
“Similarly the Brazilian Government is extending electricity and water to small and remote inland towns. Australian companies have expertise in this area.”
Mining services, technology and defence were obvious areas of opportunity, however, Mr Sullivan said mining equipment may not be a good market due to competition from Brazil’s own resources industry.
Other non-traditional areas of opportunity could include areas such as veterinary medicine to cater for Brazil’s 170 million head of cattle.
Solar energy and wine technology are also areas that WA interests could find niche markets in Brazil.
However, Mr Sullivan said doing business with Brazil required patience and an understanding of the local market.
“It’s not easy to trade or invest in Brazil,” he said.
“It’s very important to get a really good business partner or a really good Brazillian lawyer.”
