Brazil arrives in Davos with strong message of reforms and trade openness

Concessions, privatizations, sales of assets and the need for administrative and pension reform are the core pillars of the new economic message that will be presented by the Brazilian delegation at the World Economic Forum in Davos (Switzerland). The delegation, led by President Jair Bolsonaro, will be in the country as of January 21.

During the four days of the event - which runs from January 22 to 25 - the Brazilian government will also show where it expects to arrive with the changes. Part of the message will be about corrective actions that will be taken to improve the economy. Among the targets is to increase the share of foreign trade flows in Gross Domestic Product (GDP) from about 20% to 30%.

Pension system

On pension reform, Economy Minister Paulo Guedes said that the proposal will be focused on fighting privileges. With the demographic changes seen in Brazil, the system ended up taking the form of assistance to serve the population. The main message, however, will be that the government intends to remove the weight of the State from the Brazilian economy.

Trade openness

Both the Economy Minister and the President are expected to reinforce in their speeches and meetings that Brazil wants to do more business with the world, without ideological bias. The opening up of the economy will be made in a responsible manner, based on measures conceived to facilitate negotiations and trade and lead to a gradual reduction of tariffs.

Efficient State

Another message presented to the forum’s attendees is to improve the country's growth and make the State more efficient and fraternal. In his address on January 2, Guedes said the government will simplify taxes, privatize, open up the economy, decentralize resources and support the social area.

In his first speech as President of the Republic, Bolsonaro assessed the changes as essential for the country's financial health and to open up new opportunities for Brazil. "We need to create a virtuous circle for the economy that brings the confidence necessary to open our markets for international trade and stimulate competition, productivity and efficiency without ideological bias," the president said.