As Forbes contributor Kenneth Rapoza reports, 24 institutional investors have agreed to commit a total $810.2 million to Brazilian real estate projects in São Paulo and Rio de Janeiro.

GTIS Partners, a global real estate investment firm, just raised the largest amount of funding by any foreigners buying Brazilian properties making it the largest real estate dedicated private equity fund in Brazil.

As Rapoza reports, “the fund has spent about 30% of those commitments on a warehouse and residential project in São Paulo and one brand new commercial property in Rio de Janeiro (pictured).  It’s got about $250 million more worth of projects on the drawing board, and still under negotiations.”

Fueling growth in Brazil’s primary financial centers is the upcoming 2014 World Cup and 2016 Summer Olympics. The lack of class A commercial buildings is also a driving force.

While isolated sections in São Paulo have steel and glass structures, most of Brazilian buildings are built brick by brick. Companies moving to Brazil, or upgrading, are going to want  new world class structures.

During the past year, however, I’ve seen one country stand out above all others in terms of the sheer volume of transactions getting done.

Most will not be surprised to learn that I’m talking about Brazil.

While others see the Brazilian economy cooling down, I don’t see that happening at all.

With more and more companies approaching me to learn more about doing business in Brazil, I see  nothing but continued growth and prosperity in the region.

I mention this because I recently came across an article that succinctly sets forth compelling reasons why U.S. companies should consider expanding their business to Brazil.

The article, 4 Reasons to Expand Your Business to Brazil, written by Matthew Davies, a Managing Director for FedEx Express South America, does a great job of synthesizing the primary benefits Brazil has to offer U.S. companies.

While these points are all  excellent, a far more compelling reason lies in the fact that Brazil has 200 million consumers that U.S. companies can reach. As Mr. Davies points out, that’s  five times the number of consumers that live in the state of California.

If 200 million reasons is not enough to convince you to do business in Brazil, below are four additional reasons courtesy of Mr. Davies:

1.     Exponential growth. Like China, Brazil has traditionally relied on its domestic economy, but that’s all changing fast. Currently the eighth-largest economy in the world, Brazil is expected to grow to be the fifth-largest in just a few decades. Even during the worst of the global meltdown in the past two years, Brazil’s domestic performance and output was still very solid. This goes to show that the country has plenty of room to expand its export market. Brazil’s leaders see what’s happening in China and in India to some degree, and they fully intend to stay on the cutting edge of international growth.

 

2.     Emerging market opportunities. Right now, most of the products Brazil exports are raw materials. So the time is right for business owners to enter the country with an entrepreneurial spirit. In early May, Brazil and the U.S. announced an innovation-focused agenda that will deepen commercial relations on five core themes, including: innovation and green technology; trade facilitation and business development; intellectual property cooperation; standards and metrology; and services and small- and medium-size enterprises. If you’re in the business of developing new products and innovations that other countries have taken for granted, Brazil could be fertile ground for you.

 

3.     Slow-but-steady improvements. Most of the opportunity is currently in the southeast, from Rio de Janeiro to Porto Alegre. But as the different local governments start to offer tax incentives and develop infrastructure, many other parts of the country will open up. Businesses need to have a solid footprint in Brazil and go through some of the challenges that companies have already gone through in China. Whether it’s the traffic and security problems, the varied tax laws, or the housing infrastructure, you must be prepared to face these challenges with a South American mindset — where time is a more fluid concept than in the U.S.

 

4.     Collaboration potential. Entering a new foreign market can be intimidating, but you don’t have to do it alone. Many stakeholders want and need you to succeed. To navigate the cultural and logistical issues effectively, you’ll want to work with a local organization in Brazil. The U.S. Commercial Service provides market intelligence, trade counseling and “business matchmaking” to help U.S. companies get started in exporting or increasing sales to new global markets. And the FedEx country profiles provide everything you need to know about import and export restrictions, clearance information, and more.

 

As you can see, Brazil offers enormous opportunities for U.S companies. With careful research, planning and strategy your company will be  well-equipped to tap into Brazil’s 200 million consumer market.

With Brazil’s booming economy, there’s been a groundswell of interest in resolving disputes in South America’s largest economy through international arbitration.

This has probably less to do with Brazil’s arbitration-friendly legislation and the pro-arbitration attitude of Brazilian judges, and more to do with the sheer volume of international trade and capital exports in the region. The more contracts Brazilian investors sign, the more arbitrations there will be in the future involving Brazilian parties.

These and other topics will be examined at the symposium. Among the topics discussed are:

• Brazil’s Future as an international arbitration seat
• Briefings from around the world in key cases from international and Latin American jurisdictions.
• The use of legal experts in international arbitration

And many others.

You can find out more about the program by visiting Global Arbitrations Review’s website.

In the past year, however, I’ve seen a significant increase in the number of U.S. companies wanting to do business in Brazil.

Given the immense opportunities available in South America’s largest economy, that’s hardly a surprise.

Fortunately, there are a number of excellent resources for anyone interested in exporting or otherwise doing business in  Brazil.

A great all around resource for doing business in Brazil is the Legal Guide: Business in Brazil produced by Brazil’s Ministry of Foreign Relations. I’ve embedded the guide below:

Legal Guide to Doing Business in Brazil

Additional Resources

Another excellent resource is the U.S. Export Assistance Center, which has offices in major cities throughout the U.S. including Miami.

The U.S. Export Assistance Center is set-up to help small and medium sized companies interested in exporting to Brazil, as well as other countries.

You should also be sure to visit the Consulate General of Brazil in Miami’s webpage, Doing Business in Brazil. The website includes links to helpful resources including Guide to the Foreign Investor in Brazil and Company Formation in Brazil.

A bilateral trade organization called the Brazil-U.S.Business Council is another potential source to find information. It has been named a Commerce Dept. Market Development Cooperator Program for 2011-12, meaning it will get funding and technological assistance this year from the U.S.International Trade Administration.

The cooperator agreement is designed to support President Obama’s National Export Initiative by helping small and midsize companies expand their businesses through exports. In particular, the initiative seeks to aid green technology companies that would like to begin exporting or to expand their exports to Brazil.

If you’re unsure of products or suppliers, a good place to beginyour search is the online directory of ThomasNet and Global Sources. You can access its listings of more than 150,000 companies with thousands of products.

Once you get started exploring the excellent resources above, you’ll be well on your way to doing business in Brazil!

One need only look at the wave of the late model exotic automobiles entering Brazil to appreciate the astounding wealth generated by Brazil’s exploding economy.

Brazil: the Exotic Car Capital of Latin America

From what I’m seeing, Miami seems to be the export point for many of these exotic cars. The number of Ferraris, Lamborghinis, Porsches and Bentleys headed to Brazil is absolutely astounding.

Keep in mind that for a Brazilian to own one of these exotic cars, they have to be really wealthy.  For example, after import duties are assessed a Ferrari costing $250,000.00 here in the U.S., will cost nearly $500,00.00 in Brazil.

And we’re not talking second hand vehicles, as the importation of used vehicles in Brazil is strictly prohibited. Anyone caught importing a used vehicle may be held criminally liable.

All Cars Exported to Brazil Must Be Classified as “New”

Given this dynamic, there’s a lot at stake. That’s why it’s critically important to be sure that any vehicle exported to Brazil from the U.S. is properly classified as a new vehicle.

Now more than ever, the Brazilian government is carefully scrutinizing every vehicle imported to make sure these vehicles are properly documented as new.

Never mind that many of these vehicles are shrink-wrapped from the factory and have 3 test-track miles on the odometer. The Brazilian government has set all common sense aside and has taken an extremely rigid approach to how the vehicles are classified.

In determining whether a vehicle is new or used, Brazilian authorities are increasingly looking to U.S. law, albeit inconsistently,  for guidance on the issue.

How to Determine if the Vehicle is “New” or “Used.”

The U.S. law governing the classification of vehicles for export is 19 CFR Part 192.  While the definitions do not specifically define “new,” the definition for a “new” vehicle can be reached by making reference to the definition of “used” vehicles.

Under 19 CFR Part 192, a vehicle is deemed used if title is transferred for a purpose other than resale. As defined in 19 CFR Part 192.1, “‘used’ refers to any self-propelled vehicle the equitable or legal title of which has been transferred by a manufacturer, distributor, or dealer to an ultimate purchaser.”

An “ultimate purchaser is defined as “the first person, other than a dealer purchasing in his capacity as a dealer, who in good faith purchases a self-propelled vehicle for purposes other than resale.”

For example, if a vehicle is exported by a dealer that purchased the vehicles for the exclusive purpose of resale to ultimate purchasers located in Brazil, the vehicle should be deemed new.

Notice that I indicated should.

That’s because there is no guarantee that the Brazilian authorities will apply the U.S. interpretation. In recent months, the Brazilian government has applied vehicle the classification inconsistently.

Conclusion

While Brazil’s booming crop of millionaires has generated a huge export market in the U.S. for exotic vehicles, it’s important to exercise extreme caution when exporting that seemingly “new” shrink-wrapped Lamborghini.

The Brazilian authorities might find otherwise.

According to a BBC report, Brazil’s attorney general alleges that some accounts registered with the popular social media site alert their followers about police speed traps and roadblocks.

The lawsuit demands that Twitter shut down these accounts and pay a fine of 500,000 Brazilian reals (approximately $290,000) for every day the accounts remain active.

One of the accounts mentioned, @RadarBlitzGO, has already closed down. It had nearly 12,000 followers.

“We are suspending the updates until justice has ruled,” it said.

The other major account, @LeiSecaRJ, has more than 285,000 followers and is still operational.

The lawsuit follows Twitter’s announcement in January that it could block messages that conflicted with local laws if governments request it.

While only two Brazilian companies, Biologicos and Boo-box, made Fast Magazine’s Top 50 Most Innovative Companies, the number of innovative companies and major start-ups found in Brazil are likely to increase dramatically in the next several years.

Below are Brazil’s Top 10 innovative Companies:

Bug Agentes Biologicos

Boo-box

Grupo EBX

Stefanini

Embraer

Petrobras

Predicta

F*Hits

Apontador

Vos

 ”Brazil has been adding 19 ‘millionaires’ per day since 2007 — and that statistic will likely be repeated over the next three years as Latin America’s economic super-power continues to deliver stellar GDP growth and consumption rates, according to bankers. Note that these are millionaires in Brazilian currency terms. Someone worth 1 million Reais has a net worth of roughly $540,000.”

According to Castano, another factor accounting for the rising tide of millionaires are high executive and banker salaries,  which often beat those paid in the U.S. He noted it’s common for Brazilian investment bankers to make a $539,000  annual bonus these days while CEOs can make an average of $75,000 a year.

Still another factor lies in  Brazil’s booming real-estate industry, which  has generated huge wealth as property values have doubled in recent years and are poised to increase further, especially in Rio de Janerio, as the city girds up to host the 2014 World Cup and the 2016 Olympics.

Individuals with a net worth ranging from $539,000 – $2.7 million ($1m-$5m reais) make up the bulk of the new millionaires.

Castano pints out that the 19-millionaires-a-day statistic “was measured by taking all of an individual’s wealth into account, including investments, property, savings and other assets in addition to cash.”  While  some in the private banking conference consider the statistic a bit over hyped,  others insist the statistics are reliable.

Brazil currently has 137,000 millionaires and (according to Forbes’ 2011 World Billionaires’ list) some 30 billionaires, with 70% of the country’s wealth concentrated in Sao Paulo and Rio de Janerio.

Given these positive indicators, Brazil represents an enormous opportunity for private banks to meet the needs of its growing millionaire community as well an emerging class of ultra-high networth individuals.

This extraordinarily special issue  is one you will want to study carefully if you are even just thinking about law or business in one of the world’s hottest economies, Brazil.

The articles in this issue not only give a  brilliant overview of the Brazilian economy, but also provide the nuts and bolts of  handling commercial transactions as wellas litigation and arbitration in this important country.

And the articles  presented  were written by people who really know their subjects.  Topics in this issue include:

•  Beyond the World Cup and Olympic Games
• Foreign Trade: What to Expect from Brazil
• The New Silk Road: China and Brazil
• The Realities of Doing Business in Brazil
• International Arbitration in Brazil
• Limitations of Foreign investment in Brazil

And many other topics.

This issue is sure to be the ultimate reference guide for Brazil for years to come. Enjoy it, and be sure to share it with others.

Brazil Issue: International Law Quarterly

Brazil’s latest contribution to Miami’s investment climate includes the expansion of APEX in Miami.T he expansion and a $500,000 capital investment has enabled APEX to add seven full-time staff, relocate to downtown Miami and expand to 11,000 square feet of space, which is primarily used for 20 business incubator offices.

Based in Brasilia with offices worldwide, APEX is Brazil’s official export agency and promotes exports of Brazilian products and services. APEX’s services also extend to providing marketing and business development support for Brazilian companies interested in moving into and growing in the U.S. marketplace.

APEX’s Miami outpost has grown from five to 18 full-time employees with average salaries of $55,000. In three years, APEX anticipates a staff total of 29.

The APEX expansion in Miami means more Brazilian companies will have the opportunity to learn about what we are doing in Florida to make our state the best place of business to grow and expand.