Supply Capacity - Brazil

This project builds on the successful experience of the programme Exports through the Postal Services System, implemented by the Brazilian government through the Brazilian Post Office. The use of postal services, which provide logistic services for exports, has both facilitated exports and strengthened South American postal infrastructure. In this context, in February 2007, Peru signed a cooperation programme with Brazil and has fully implemented Exporta Fácil. Brazil and Peru now work together to implement the programme in Uruguay (launched in March 2009). Brazil is also expecting to extend Exporta Fácil to at least three other Latin American countries.

To diminish the imbalance in trade with Latin American countries, and to stimulate trade relations with the countries in its vicinity, Brazil has launched the Programme of Competitive Substitution of Imports. Brazilian experts are sent on missions to Latin American countries to promote seminars and technical training on how to export to Brazil. The local enterprises receive indications on trade opportunities, and Brazilian entrepreneurs have the possibility to identify local suppliers. The missions are usually composed of diplomats, government officers from trade-related areas and businesspersons. Recently, seminars were organized in three lower-middle-income countries: Ecuador, Peru and Paraguay.

Established in 2006 (Decisions CMC 45/04 and 18/05), the Mercosur Fund for Structural Convergence (FOCEM) epitomizes Mercosur’s commitment to bridging the development gap between the countries of the region. Its objective is to fund the development of infrastructure and social cohesion in Mercosur. The Fund is made up of contributions from the four Member States that amount to US$100 million annually, of which Brazil contributes US$70 million (70 per cent): Brazil is the major contributor to the Fund. In the XXXVI Meeting of the Common Market Council, held in Salvador on 15 December 2008, President Lula announced that Brazil was free willingly committed to double its contributions.

Paraguay and Uruguay are the main beneficiaries of FOCEM. Brazil and Argentina are the main contributors to the Fund.

There are also other projects under this category, such as:

• Institutional Strengthening of Professional and Technological Education in Benin in the areas of Agro Ecology and Cooperativism
• Support to the Development of the Culture of Rice in Senegal
• The "Cotton-4 Project", which increases the competitivity of the productive chain of cotton in Benin, Burkina Faso, Chad, Mali and Togo: This Project led to the conception and approval of similar initiatives, for instance: the project "Shire Zambeze"; the Project "Cotton Victoria" (Tanzania, Kenya and Burundi) and a training course in Cotton production (Benin, Mali, Burkina Faso, Tchad, Togo, Burundi, Senegal, Côte d'Ivoire, Cameroun, Tanzania, Kenya, Zimbabwe and Malaui);
• Establishment of a Medicine Factory in Mozambique: The project aims to establish the first drug factory in the country. Currently, it already produces four medicines that are purchased by the local Ministry of Health. In addition to transferring technology for production, the project enabled the training and training of Mozambican technicians, employees of the factory.