Direct foreign investments in Brazil

IIATERIATIONAL BAf FOR RECOI STRIUCTIO01T AND DEVELOPIvINT RESEARCH DEPAflT1M11T p,E cepyt ERM78 Direct Forein Inv'estnents in Brazil Economic Resources and iiari;ets Staff PREPARED BY: William i. Gilmartin ER1l_78 APPROVED BY: Joseph S. Gould Copy iio _ April 9, 1948  TABLE OF COI,TELTS PagCe Summary , , * . * . * * * * . . . . .. . . Introduction ....... , *. e.e . sae 3 Direct Investmenits by Wlationalities of Irnvestors v . . United States . , e a* - X a X Xe o 3 United '4angd.om .... ...... ....... 0 5 Canada * * * * * * * a . * * . .. , * . 6 Other countries .... .. ..0 * e ..... 7 Restrictions and Regulations Affecting Foreign Enter- prises in Brazil ............... . 7 The "1'Yovo Estado"' policies . . . a .... * # . 7 ilining . * a. . * . e * i . . i i* 8 Petroleum supplyg.ing . . ........ 9 Hydroelectric powrer.. o .,a a. .*.. 9 Banlking .,oooao9o * ....... ..... 10 Air Transport ............. ,,,, 10 Other fields .............. , 10 Taxation .. e e .. 10. 1 Exchange control .. . . . . .a . . . ... . . 11 Tariff policy . . . . . . . , . . . . . * . . 12 Economic Enterprises of the Brazilian Goverment . . . 12 Armexes, I. Basis of Estimates of Total Foreign Direct Investments in Brazil II. U.S. Direct Investments in Brazil by Industrial Classi- fication as of about 1940  Foreign direct investments in Brazil are camong the largest in Lati-n America. Their value may be roughly estimated in the maagnitude of 3800 to $850,000,000 as of 1946, By far the greater part of these holdiniEs are control- led by interests in the tnited States, the United K'ingdom and Canada. The, v:er of their equity holdings in Brazil in 1946 is tentatively estimat-eed as follows: United States $285,000,000 United Kingdom 250,000,000 Canlada 200,9000,000 IRemittances abroad from yields on foreign enterprises in i3razil been roughly valued at $70,000,000 in 194.6 and $50,000,000 in 1947. Incoileo re- ceived in the UniteC. Stat;es from direct Brazilian investments am.ounted to about 10 per cent of the invested principal in 1943 and rmay be estir:iated at approxi- mately this same proportion in 14/.6. However, other recent years 'have probably been belowr this rate of return since exchange restrictions on the tra_nsfer o