Brazilian defence sector to receive competitiveness boost
The announcement was made by Defence Minister Raul Jungmann, who was speaking during the opening ceremony of LAAD Defence & Security 2017, a major event of the sector.
According to Jungmann, actions will include a line of credit from the Brazilian Development Bank (BNDES) to offer financing to countries that buy products from the Brazilian defence industry, insurance instruments for domestic manufacturers and a dedicated group in the Foreign Trade Chamber (CAMEX) that will exclusively address the defence industry.
"We need to create a specific policy for this sector, with robust instruments that can create greater efficiency in our trade relations," the minister said.
Jungmann said that the defence industry was the driver of a number of technological breakthroughs in history, such as GPS, the microwave and Teflon, adding that he believed the sector can contribute significantly to stronger economic growth.
He explained that the incentives are necessary because the defence market is asymmetric between competing countries, and is not governed by the same World Trade Organization (WTO) rules like other sectors.
Finance Minister Henrique Meirelles also highlighted the sector's importance, and how it benefits from the structural changes taking place in the Brazilian economy.
The weight of the sector in the Gross Domestic Product (GDP) exceeds R$ 200 billion, Meirelles said, adding that, in addition to generating income and at a higher pace than the Brazilian average, the area benefits industry as a whole. ■