Page 41 - InvestmentGuideBrasilEng

BRAZIL: YOUR

GATEWAY TO LATIN

AMERICA AND BEYOND

Brazil is a founding member of Mercosur, the
South American Common Market, which is a
free trade area and progressively consolidating
customs union between Argentina, Brazil, Para-
guay, Uruguay and Venezuela. In 2012 Mercosur
had a combined gross domestic product of $3.328
trillion, which is almost 80% of South America’s
combined total and makes Mercosur the world’s
third-largest free trade area after the European
Union (EU) and the North American Free Trade
Agreement (NAFTA). In December 2012, Bolivia
signed an accession treaty to join Mercosur. CURRENCY
Mercosur currently has free trade agreements
with Bolivia, Chile, Colombia, Ecuador, Israel and
Peru. Free trade agreements have been signed
with Egypt and the State of Palestine and are
pending ratification. Mercosur is currently nego-
tiating a free trade agreement with the European
Union (EU), which, if successful, would create the
world’s largest free trade area. ? Brazil’s currency is the real (R$), which
Brazil is also a member of the Latin American is divided into 100 cents (centavos).
Integration Association (ALADI), which aims to
establish a pan-Latin American free trade area. At ? Unit of currency: real (ISO code: BRL),
present, ALADI members extend tariff preferences plural reais (pronounced in English as
to one another in specific sectors, with the goal of hey-AL and hey-ICE, respectively)
progressively removing tariff barriers among ALA-
DI members. ? Symbol: R$
In recent years, Brazil has maintained a con-
sistent surplus in its trade with the rest of the ? 1 real (R$1) is subdivided into 100 centavos
world. In 2012, Brazil’s total international trade
(exports and imports combined) reached $465.7 ? 1 real is approximately equivalent
billion, with a $19.4 billion surplus in Brazil’s favor. to US$0.50 (fifty cents)
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