Manaus Free Trade Zone as Brazil s development policy for the Amazon. (4 th June 2015 Paris)

Transcrição

1 Manaus Free Trade Zone as Brazil s development policy for the Amazon (4 th June 2015 Paris)

2 BRAZILIAN AMAZON Corresponds to 59% of the country 5.3 million square kilometers 23, 596 million people 20,000km of navigable waterways Equivalent to 80% of Sulamericana Amazon 1/5 of broadleaved forests primary the world Humid tropical climate - 26ºC to 36ºC Mineral Resources: oil gas bauxite casiterita niobium other

3 THE CONTEXT OF THE MFTZ IN BRAZIL BRAZIL Area: 8,502,365 km2 GDP 2012*: 2,2(trillion US$) GDP per capita 2012*: 11,320 US$ Population**: 204 million Current Prices *Source: World Bank 2014 ** Source: IBGE Estimate 2014 Municipalities of the State Capitals Position held in the 100 largest capitals GDP 2010 at current prices (PPP U$S 1,000) Relative Share of GDP (%) São Paulo/SP ,38 Rio de Janeiro/RJ ,03 Brasília/DF ,90 Curitiba/PR ,35 Belo Horizonte/MG ,33 Manaus/AM ,14 Porto Alegre/RS ,09 Fortaleza/CE ,99 Source: IBGE, GDP of municipalities in 2012 Conversion Purchasing Power Parity for household Consumption Index - dec/ IPEADATA

4 WHAT HAPPENED HISTORICALLY? ª CYCLE ª CYCLE SPEVEA SUDAM Lei DECLINE CYCLE OF RUBBER Law nº 3.173/57 - ZFM DEC. nº 288/67 DEC. nº 356/68 Law nº 1.435/75 - POPULATION Manaus: 100 mil hab. - REGISTRATION: ABANDONED HOUSES - FLU EPIDEMIC 6 mil deads - GEOPOLITICAL INTEGRATION OF THE AMAZON TO NATIONAL SCENARIO - POLULATE (Low Population Density) - TRADE - COMMERCIAL TOURISM - AGRICULTURE - EXTENSION OF INCENTIVES WESTERN AMAZON - REPLACEMENT OF IMPORTS - INDICES NATIONALIZATION : I.N - BASIS FOR CREATION OF FTAs (ALC S) - First urban PRESSURES in Manaus : rural exodus + immigration - Manaus: 284 mil hab. S JUSCELINO KUBITSCHEK Gen. CASTELO BRANCO Gen. ERNESTO GEISEL

5 SUPERINTENDENCE OF THE MANAUS FREE TRADE ZONE - SUFRAMA Suframa is an independent federal agency under the Ministry of Development, Industry and Foreign Trade (MDIC). Its objective is to manager and control the tax incentives granted to companies that set up in the Manaus Free Trade Zone, as well as to promote development strategies for the Western Amazon, assuming in this way the role of an investment stimulation agency. PRESIDENCY OF THE REPUBLIC Ministry of Development, Industry and Foreign Trade SUFRAMA

6 THE CREATION OF THE MANAUS FREE TRADE ZONE (Law No 3,173/1957 modified by article 1st of Decree Law No. 288/1967) The Manaus Free Trade Zone is a free trade area for import and export operations. It enjoys a few special tax incentives established for the purpose of promoting regional development by rising the industrial, commercial and agricultural activities, creating an economic enviroment that allows the growth regardless of regional factors and the far distances from the markets where its goods are consumed." INDUSTRIAL DISTRICT DISTRICT FARMING AND CATTLE RAISING

7 AREA OF OPERATION AND CONTROL SUFRAMA WESTERN AMAZON COLÔMBIA VENEZUELA GUIANA Bonfim RORAIMA Boa Vista SURINAME AMAPÁ Macapá-Santana EQUADOR Tabatinga Manaus PERU Cruzeiro do Sul* ACRE AMAZONAS Porto Velho Brasiléia- Epitaciolândia Rio Branco WESTERN AMAZON Guajará-Mirim Itacoatiara RONDÔNIA Ji-Paraná Vilhena BRASIL HOME BUILDING ADMINISTRATION OF SUFRAMA FREE TRADE AREAS (07) COORDINATION REGIONAL (05) BOLÍVIA

8 AMAZON WEST (MANAGEMENT AREA AND CONTROL SUFRAMA) CONTROL SYSTEM foreign goods For Inputs: II Suspension of IPI exemption, reduction to zero of the PIS / COFINS For Products: Exemption II and IPI and reduced PIS / COFINS 1º COLÔMBIA VENEZUELA Bonfim RORAIMA Boa Vista GUIANA SURINAME AMAPÁ Macapá-Santana EQUADOR EXPORTS (ALICEWEB) TOTAL EXEMPTION AMAZON WEST PERU Headquarters SUFRAMA Free Trade Areas (09) Regional coordination (05) Brasiléia- Epitaciolândia Cruzeiro do Sul* ACRE Rio Branco Tabatinga AMAZONAS Porto Velho Guajará-Mirim Manaus Itacoatiara 3º 4º 2º RONDÔNIA BOLÍVIA Ji-Paraná Vilhena CONTROL SYSTEM NATIONAL COMMODITY IPI exemption, reduction in PIS / COFINS zero BRASIL SYSTEM OF INDUSTRY INDICATORS Reduction of 88% of II, IPI exemption, differentiated tax rate of PIS / COFINS % PIS and 3.0% COFINS

9 STRATEGIC AREAS SUFRAMA ORGANIZATIONAL DEVELOPMENT INCENTIVE TAX MANAGEMENT LOGISTICS TECHNOLOGY AND INNOVATION INVESTMENT ATTRACTION INTELLECTUAL CAPITAL AND ENTREPRENEURSHIP INTERNATIONAL INSERT PRODUCTIVE DEVELOPMENT Fonte: Planejamento Estratégico da Suframa

10 MAIN TAX INCENTIVES (MANAUS INDUSTRIAL POLE - PIM) SUFRAMA 1. FEDERAL IMPORTS (II) TAX - 88% reduction on inputs for the industrialization and proportional to the national added value when it comes to information technology goods. EXCISE TAX (IPI) Exempt SOCIAL INTEGRATION PROGRAM (PIS) and SOCIAL SECURITY FINANCING (COFINS) - Zero rate at the entrances and in domestic sales inter-industry and 3.65% in sales of finished products to the rest of the country. SUDAM TAXES ON INCOME (IR) - Reduction of 75% of Income Tax and non-refundable, exclusively for re-investment. Common throughout the Legal Amazon. SEFAZ/AM 2. STATE TAX ON THE MOVEMENT OF GOODS AND SERVICES (ICMS) Credit Stimulus between 55% to 100%. In all cases the companies are required to contribute to financing funds to higher education, tourism, R & D and small and micro enterprises.

11 COUNTERPARTS REQUIRED BY COMPANIES CONCESSIONS GRANTED INCENTIVES Process compliance Basic Productive (PPB); Job creation in the region; Granting social benefits to employees; Incorporation of product technology and production processes compatible with state of the art; Increasing levels of productivity and competitiveness; Reinvestment of profits in the region; Investment in training of human resources for the scientific and technological development; and Industrial design approval with annual limits import of inputs.

12 LOCATION IN RELATION TO MARKETS NORTH AMERICA EUROPE ASIA Hong Kong Tokyo Taipei Taiwan Los Angeles CENTRAL AMERICA PANAMA CANAL Miami Caracas ATLANTIC OCEAN AFRICA Manaus Belém Capital Marine route Air and sea route Road route River route Air route PACIFIC OCEAN Porto Velho São Paulo POPULATION OF LATIN AMERICA AND THE CARIBBEAN : About 600 million inhabitants

13 DISTRIBUTION LOGISTICS - ZFM AM PORTO VELHO MAO RO AP PA BRASIL BELÉM PEC FOR SSA ATLANTIC OCEAN SUA SOUTH FACING POSITION PORTS MANAUS FORTALEZA SUAPE SALVADOR SEPETIBA SANTOS RIO GRANDE MONTEVIDEO BUENOS AIRES Modal Transport : River-road most used Routes to Southeast and South of Brazil: Manaus Porto Velho Cuiabá Campo Grande São Paulo: average from 7-10 days (River-road) Manaus Belém Goiânia Porto Alegre: average from days (River-road) Manaus Belém: 4-5 days (by way of Amazon river) Manaus Porto velho: 3 days (by way of Madeira river) Manaus Boa Vista: horas (highway) or 1 hour (airlift) RIG MVD BUE São Paulo SSZ Porto Alegre Belo Horizonte SEP Rio de Janeiro River -road Highway North South NORTH FACING POSITION PORTS BUENOS AIRES MONTEVIDEO RIO GRANDE SANTOS SEPETIBA SALVADOR SUAPE CEARÁ MANAUS

14 SUBSECTORS PARTICIPATION IN ACTIVITIES OF BILLING PIM BILLING FROM JAN to FEB/2015 PIM In% of Activities by Sub-sectors Thermoplastic 5,16% Metallurgical 4,54% Chemical 12,03% Electronics 33,25% Other 12,21% Two Wheels 15,87% (*) Until Feb Partial data Computer Goods 16,93% Source: COISE/CGPRO/SAP SUFRAMA Available in: Industrial Polo Performance Indicators Manaus, updated publication on 04/15/2015.

15 INDUSTRIAL SECTOR BILLING OF INDUSTRIAL POLE MANAUS PIM BILLING OF INDUSTRIAL POLE MANAUS - PIM In Billions Billing R$ Billing US$ 61,6 69,0 73,5 83,5 71,7 50,5 26,0 35,1 41,2 37,5 38,6 31,1 12, (*) (*) Until Feb Partial data Source: COISE/CGPRO/SAP SUFRAMA Available in: Industrial Polo Performance Indicators Manaus, updated publication on 04/15/ ,7

16 INDUSTRIAL SECTOR PRODUCTIVE INVESTMENT- PIM PRODUCTIVE INVESTMENTS BY COMPANIES ACTIVE IN PIM In Billions PRODUCTIVE INVESTMENT IN em US$ 9,28 10,66 10,09 10,66 10,68 8,87 7, (*) (*) Until Feb Partial data Source: COISE/CGPRO/SAP SUFRAMA Available in: Industrial Polo Performance Indicators Manaus, updated publication on 04/15/2015.

17 INDUSTRIAL SECTOR MOVEMENT OF WORKFORCE PIM MOVEMENT OF WORKFORCE Workforce (*) (**) (*) Effective Workforce + Temporany + Outsourced (**) Until Febrruary, Corresponding to a monthly average of informant System of indicators mith date companies plenums project approved by the board of directors of Suframa - CAS Source: COISE/CGPRO/SAP SUFRAMA Available in: Industrial Polo Performance Indicators Manaus, updated publication on 04/15/2015.

18 INDUSTRIAL SECTOR SOURCE OF PRODUCTION SUPPLIES - PIM SOURCE OF SUPPLEIS - PIM In % Foreign Source Regional Source National Source 53,84% 58,52% 55,34% 60,60% 63,18% 63,00% 67,13% 25,42% 22,30% 25,70% 24,04% 22,33% 22,10% 20,56% 20,74% 19,18% 18,95% 15,35% 14,49% 14,89% 12,31% (*) (*) Until Feb Partial data Source: COISE/CGPRO/SAP SUFRAMA Available in: Industrial Polo Performance Indicators Manaus, updated publication on 04/15/2015.

19 UNIVERSITY OF THE STATE OF AMAZONAS - UEA Comprises the major part of the investment resources in R & D for goods from computer manufacturing companies and the counterparts by state incentives. 43 undergraduate courses; students enrolled; 7 Masters degrees; 2 doctoral programs; Satellite lessons for students from any Amazonas community.

20 HUMAN DEVELOPMENT INDICES FIGURE 1. POOR OF SPACE DISTRIBUTION IN BRAZIL NORTH IN 1991 Source: Makers for Economic Studies and Coordination for Companies COGEC, using IpeaGeo Software 2.0.0

23 HUMAN DEVELOPMENT INDICES FIGURE 4. CLUSTERS TO THE SPATIAL DISTRIBUTION OF THE PROPORTION OF POOR IN NORTHERN BRAZIL IN 1991 Source: Makers for Economic Studies and Coordination for Companies COGEC, using IpeaGeo Software 2.0.0

24 HUMAN DEVELOPMENT INDICES FIGURE 5. CHART WASTING MORAN FOR THE POOR OF PROPORTION IN BRAZIL NORTH IN 1991 Source: Makers for Economic Studies and Coordination for Companies COGEC, using IpeaGeo Software 2.0.0

25 HUMAN DEVELOPMENT INDICES FIGURE 6. CLUSTERS FOR DISTRIBUTION SPACE OF POOR RATIO IN BRAZIL NORTH IN 2000 Source: Makers for Economic Studies and Coordination for Companies COGEC, using IpeaGeo Software 2.0.0

27 HUMAN DEVELOPMENT INDICES FIGURE 8. CLUSTERS FOR DISTRIBUTION SPACE OF POOR RATIO IN BRAZIL NORTH IN 2010 Source: Makers for Economic Studies and Coordination for Companies COGEC, using IpeaGeo Software 2.0.0

29 HUMAN DEVELOPMENT INDICES FIGURE 10. SPACE OF IDHM DISTRIBUTION IN BRAZIL NORTH IN 1991 Source: Makers for Economic Studies and Coordination for Companies COGEC, using IpeaGeo Software 2.0.0

32 HUMAN DEVELOPMENT INDICES FIGURE 13. CLUSTERS FOR DISTRIBUTION OF SPACE IDHM IN BRAZIL NORTH IN 1991 Source: Makers for Economic Studies and Coordination for Companies COGEC, using IpeaGeo Software 2.0.0

35 SOCIAL PROGRESS INDEX IN THE AMAZON FIGURE 16. DESCRIPTION OF THE FIVE LEVELS OF IPS IN THE MUNICIPALITIES OF THE AMAZON Source: Social Progress Index in the Brazilian Amazon - IPS AMAZON 2014.

36 SOCIAL PROGRESS INDEX IN THE AMAZON FIGURE 17. IPS MUNICIPALITIES OF AMAZON Source: Social Progress Index in the Brazilian Amazon - IPS AMAZON 2014.

37 SOCIAL PROGRESS INDEX IN THE AMAZON FIGURE 18. SOCIAL PROGRESS OF CONTENTS IPS FIGURE 3. CHANGE IN IPS AND DIMENSIONS (MINIMUM, AVERAGE AND MAXIMUM) IN THE AMAZON Source: Social Progress Index in the Brazilian Amazon - IPS AMAZON 2014.

38 SOCIAL PROGRESS INDEX IN THE AMAZON FIGURE 19. RELATIONSHIP BETWEEN IPS AND INCOME PER CAPITA IN THE CITIES OF THE AMAZON Source: Social Progress Index in the Brazilian Amazon - IPS AMAZON 2014.

39 SOCIAL PROGRESS INDEX IN THE AMAZON FIGURE 20. RELATIONSHIP BETWEEN IPS AND INCOME PER CAPITA IN THE MUNICIPALITIES OF THE STATE OF AMAZONAS. Source: Social Progress Index in the Brazilian Amazon - IPS AMAZON 2014.

40 SOCIAL PROGRESS INDEX IN THE AMAZON FIGURE 21. HUMAN NEED BASIC (1 DIMENSION OF IPS) MUNICIPALITIES IN THE AMAZON Source: Social Progress Index in the Brazilian Amazon - IPS AMAZON 2014.

41 SOCIAL PROGRESS INDEX IN THE AMAZON FIGURE 22. GROUNDS FOR WELFARE (2 DIMENSION OF IPS) IN THE CITIES OF THE AMAZON Source: Social Progress Index in the Brazilian Amazon - IPS AMAZON 2014.

43 INDUSTRIAL POLE OF MANAUS - PIM The Industrial Pole of Manaus created economic alternative that allowed the preservation of 98% of native vegetation. 97,9 4,92 PIM 95,2 1,56 98,0 0,41 81,3 31,6 Minério + Pecuária + Madeira SAVANA FLORESTA ÁGUA DESFLORESTAMENTO %Área Preservada %Contrib. Desmat Principal Ativ. Econ. 87,6 3,11 62,4 13,98 Agro-Negócio + Pecuária 63,3 36,17 Agro-Negócio + Pecuária 23,5 2,49

45 BRAZIL COMPETITIVE PROFILE FIGURE 25. BRAZIL COMPETITIVE PROFILE Source: FGV Projetos FT graphic. Photos Dreamstime, Istock; Getty images: available Financial TimesAmazon

46 SOCIAL PROGRESS INDEX IN THE AMAZON FIGURE 26. BRAZIL COMPETITIVE PROFILE Source: FGV Projetos FT graphic. Photos Dreamstime, Istock; Getty images: available Financial TimesAmazon

47 Regional Social Contability and Input-Output Matrix TABELA 1 RELAÇÕES PIB BRASIL, AMAZONAS, PERNAMBUCO, MINAS GERAIS E RIO GRANDE DO SUL 2006, 2005 E 2003 Variáveis AM 2006 BR 2006 PE 2005 MG 2005 BR 2005 RS 2003 BR 2003 PIB VA Impostos s/ produto/pib 15,8% 14,1% 14,0% 13,2% 14,2% 8,8% 12,9% Consumo total/pib 56,7% 80,3% 99,8% 66,8% 80,2% 74,3% 77,8% Consumo Famílias/PIB 36,4% 58,9% 67,6% 49,6% 58,9% 57,9% 58,0% Taxa de investimento 19,7% 16,4% 13,3% 16,2% 15,9% 12,5% 14,6% Importação/PIB 97,4% 11,5% 68,2% 61,8% 11,5% 54,6% 11,6% Exportações/PIB 125,5% 14,4% 55,2% 77,9% 15,1% 64,7% 14,3% GAE* 2,23 0,26 1,23 1,40 0,27 1,19 0,26 *Grau de Abertura da Economia Definição do Manual de Contabilidade Nacional (Nações Unidas) Fonte: Elaboração própria com base nas Tabelas de Recursos e Usos dos estados referenciados e do Brasil

48 Ótica da Renda Ótica da despesa Regional Social Contability and Input-Output Matrix TABELA 2 PARTICIPAÇÃO DE VARIÁVEIS EXTRAÍDAS DAS TRUS NOS RESPECTIVOS PIBS BRASIL, AMAZONAS, CINGAPURA E HONG KONG 2005/2006 (%) Variável Brasil Amazonas Cingapura Hong Kong Consumo Final das Famílias 58,9 36,3 38,5 54,5 Formação Bruta de Capital Fixo 16,4 19,8 21,7 21,9 Exportações 14,4 125,5 232,7 205,5 Importações 11,5 97,4 203,5 194,1 Impostos 15,3 17,1 4,5 4,6 Excedente Operacional Bruto e Rendimento Misto 34,8 58,2 53,6 45,5 Rendimento do Trabalho 32,5 24,7 37,3 45,4 Fontes: Amazonas TRU 2006-SUFRAMA, 2012; Brasil TRU 2006 IBGE, 2008; Cingapura e Hong Kong United Nations Statistics Division e Asian Development Bank. Nota: Os dados são de 2006, exceto as informações referentes a Impostos, Excedente Operacional Bruto e Rendimento do Trabalho, no caso de Hong Kong e Cingapura, que foram extraídos das TRUs referentes ao ano de 2005, cuja fonte é o Asian Development Bank.

49 RESULTS FIAM VII YEAR 2013 The Amazon International Fair (FIAM VII) is a business event held every two years by SUFRAMA. Between 27 and 30 November 2014, the seventh edition was held in the city of Manaus, with very positive results: visitors; 300 exhibitors at the Grand Pavilion with exposure Industrial Pole of Manaus products; U$ 17 million (R$ 40.8 million) traded in the Business Round; people attended the Seventh journey of Seminars; Exhibition of regional products in the Amazon Hall; Round of Tourism Business; Exhibition of Creative Business; Participation of 07 countries: Argentina, Venezuela, Chile, Peru, Colombia, Suriname and Poland.

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51 SUFRAMA LEADING PUBLICATIONS

52 SUPERINTENDENCE OF THE MANAUS FREE TRADE ZONE - SUFRAMA Thank You! RENATO MENDES FREITAS, M.Sc. Coordinator of Economic and Business Studies of SUFRAMA, Substitute. renato.freitas@suframa.gov.br Phone. +55 (92)