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Brazil's Waste Sector is Ripe for Investment

Brazil's Waste Sector is Ripe for Investment
At an average annual waste disposal rate of 800 pounds per citizen, the country of Brazil has begun to amplify its efforts to improve the regulatory framework on sanitation. Through its locations in American embassies and consulates abroad ITA’s U.S. Commercial Service has recruited several foreign buyer delegations under its Trade Event Partnership Program. 

At an average annual waste disposal rate of 800 pounds per citizen, the country of Brazil has begun to amplify its efforts to improve the regulatory framework on sanitation.

The U.S. Commercial Service of the Department of Commerce’s International Trade Administration (ITA) stands ready to connect American businesses with international buyers at WasteExpo 2022 in Las Vegas.

Through its locations in American embassies and consulates abroad ITA’s U.S. Commercial Service has recruited several foreign buyer delegations under its Trade Event Partnership Program. Its network includes 100+ offices across the U.S. and in American embassies and consulates in more than 75 international markets.

Thales Demarchi, Commercial Specialist at the U.S. Consulate in Sao Paulo, Brazil, is leading a Brazilian delegation and discusses waste sector opportunities in this market.

Q: Could you describe the delegation that you are bringing to Waste Expo 2022? 

Thales Demarchi: The Brazilian delegation will comprise 20 professionals representing buyers, waste operators, government representatives and industry associations. They are all eager to learn about the U.S. experience in solid waste management and identify new and innovative U.S. technologies in this area. 

Q: What is attractive about the Brazilian market for U.S. suppliers of waste equipment looking to export?

Demarchi: Brazil generates approximately 82.5 million tons of urban waste per year, an average of more than 800 pounds per citizen, but in 2020 just US 5.4 billion was invested in solid waste services. However, more recently, the market has started to develop at a faster pace due to a new Brazilian regulatory framework on sanitation. In Brazil, sanitation includes water, wastewater, solid waste, and drainage. The new framework sets bold goals for universalization of sanitation services to the population by 2033. Because of this goal, experts predict investments of around US 140 billion by 2033. Additionally, the Brazilian government issued a National Plan for Solid Waste that calls for the closing of many dumpsites by 2024, and that waste recovery reaches 50% during the next 20 years (currently, only 3% of waste is recovered in Brazil).

Many of our Brazilian contacts see several similarities between Brazil and the United States on waste industry market characteristics such as size, type of waste, geographics/regional structure, etc. Additionally, Brazilian industry stakeholders are excited to learn about the U.S. experience in solid waste management and treatment, as well as new technologies that can be utilized locally.

Q: What are some of the challenges that U.S. firms face in doing business in Brazil?

Demarchi: Brazil is not an easy market in which to do business, especially if you are a new-to-export company. U.S. companies should expect a highly regulated landscape, a complex tax system, and an unfavorable exchange rate. The U.S. dollar has strengthened by more than 25 percent against the real since 2019, making U.S. exports more expensive. Currently, one U.S. dollar equals 5.03 Brazilian reals.

Additionally, we always recommend that U.S. companies establish a local presence, or work with a local partner to help them access business opportunities and serve clients in the country. Despite these challenges, there are many business opportunities, and Brazil is a market definitely worth exploring. The U.S. Commercial Service can provide information to help advise U.S. exporters navigate some of these challenges.

Q: Do U.S. firms have any competitive advantages when entering the Brazilian market? 

Demarchi: Yes. Brazil has a historical proximity to the United States, and Brazilians tend to perceive U.S. products, equipment, and technology as innovative and reliable.

Q: Can you give any advice or tips to U.S. businesses looking to enter Brazil's market?

Demarchi: Having an intimate knowledge of local market trends and regulations is critical to achieving export success in Brazil. The Brazilian market is very complex, and conditions can vary from case-to-case. We recommend that you connect with our office via e-mail at [email protected] or trade.gov/Brazil, so we can assess how to best assist you.

Q: Why is it an advantage to have your delegation at WasteExpo 2022?

Demarchi: Brazil is the largest economy in Latin America, and there are many opportunities to be explored in its solid waste market. Having our delegation attending WasteExpo 2022 is a perfect opportunity for U.S. companies to establish relationships with some of the most important solid waste industry stakeholders from Brazil.

Q: What other services does the U.S. Commercial Service offer American companies and foreign buyers? 

Demarchi: The U.S. Commercial Service offers a variety of services specifically customized for each of our client’s needs. This includes export counseling, customized market research, pre-arranged business appointments with international partners, trade events, and much more. To get started, visit any of our 100+ U.S. Commercial Service offices in the United States at www.trade.gov/cs or visit the embassy website at trade.gov/Brazil.

Editor's Note: This article has been edited for length and clarity.

 

WasteExpo 2022 Information

Business-to-Business (B2B) Matchmaking: Trade specialists from the U.S. Commercial Service will be managing the International Business Center (IBC) in Room W109-110, located on the show floor of the Las Vegas Convention Center, West Hall.

Register For International Matchmaking Programs

Download International Matchmaking Flyer

  • For general questions contact: [email protected]
  • For questions on Business-to-Business Matchmaking contact: [email protected]
  • For questions on Business-to-Government Meetings contact: [email protected]                                                                             

 

 

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