Portuguese businesses in Brazil seek stability amid trade imbalance

Portuguese business leaders operating in Brazil are calling for increased legal certainty, tax simplification, and reduced bureaucracy ahead of the upcoming presidential elections. Representatives from various Portuguese chambers of commerce, including those in Santa Catarina, Espírito Santo, and Pará, emphasized the need for institutional stability, fiscal responsibility, and predictable judicial interpretations to encourage continued investment.

Specific requests from business leaders include the reduction of capital and energy costs, improvements in infrastructure, and professional qualification. Some leaders also highlighted the importance of responsible negotiations with major global powers such as the USA, China, and Europe to ensure a stable economic environment.

Concurrently, recent trade data reveals a growing imbalance in commerce between the two nations. While Portuguese exports to Brazil rose by 17.6% to 688.7 million euros between January and July, imports from Brazil surged by 43.1% to 2.66 billion euros during the same period. This shift has resulted in a coverage rate of 25.9%, reversing a recent trend of rebalancing that had been observed since 2022.