Opportunities – Integration with the MERCOSUR – Industrial Utilization
With the signature of the MERCOSUR Pact, the area encompassed by the companies set up in the region is now wider and is to reach a huge consumer market.
In some cases, the main source of profit among all the operations throughout the world occurs in the companies which chose to invest in the region. The car industries that set up in the area, as well as the pharmaceutical and electronic companies obtained high returns ever since the official integration of the MERCOSUR block.
The Manaus Free Trade Zone grants tax benefits to assembly industries, even if their production is not local.
Currently, the approval of the legislation for the Export Incentive Zones grants tax benefits to the companies willing to set up in those industrial complexes to export both to the Southern Cone Common Market and to other Countries with which Brazil signed car agreements and other industrialized products.
The increase in the average income along with the economic growth of the member countries allow for a more rapid return and the consolidation of consumer markets. Old platforms whose presence was only representative now have a real presence with the local installation of industrial plants in an attempt to flee away from former traditional commercial hindrances: transport costs and taxes.
In September 2007, the main highways connecting the countries of the Southern Cone will be privatized to improve the quality of the road network and reduce the costs and time to deliver the production.