São Paulo - Rio de Janeiro
From the 16th to the 22nd of November 2014, the Chamber of Commerce of the Grand Duchy of Luxembourg and Luxembourg for Finance organized a multi-sectoral trade mission to Brazil which covered the cities of Sao Paulo and Rio de Janeiro. The delegation was headed by HRH the Hereditary Grand-Duke of Luxembourg accompanied by the Crown Princess and led by HE Pierre Gramegna, Minister of Finance.
Brazil and Luxembourg have long-standing economic ties. Major Luxembourg companies such as global satellite leader SES, the world's largest steel producer ArcelorMittal, or the leading airfreight company Cargolux have strong relations with Brazil, some dating back to the 1920s. Jan de Nul, Paul Wurth and Transalliance also have local representatives running commercial operations in Brazil. Today, Luxembourg is, amongst other activities, also a key location in Europe for the automotive component industry, a prime hub for logistics and a leading ICT centre, providing a first-class infrastructure and networks. The diversification of Luxembourg's economy is also reflected in its financial services sector.
Further to recent international coverage, Mr. Gramegna highlighted Luxembourg's strong position in favour of transparency in tax matters. Luxembourg is an active and positive supporter of the BEPS (base erosion and profit shifting) discussion on OECD and EU level, which aims at achieving greater fairness in international tax matters.
Emerging economies play an increasingly important role in the global economy. As such, Brazil is a key market for Luxembourg companies.
During the economic mission to Brazil, the Chamber of Commerce presented the diversity of the Luxembourg economy at an economic seminar in Sao Paulo at which notably Mr René Elvinger, CEO and chairman of Cebi International a producer of temperature sensors, thermostats, heaters, windscreen and headlamp washer systems for the automotive and household industry made an excellent testimonial. Luxembourg for Finance held two seminars promoting various aspects of Luxembourg's financial centre. The program also included individual business meetings upon request which were tailor made b2b meetings organized by our partner on location, the AWEX.
The Luxembourg non-financial companies that participated in this economic mission had the opportunity to participate in a private breakfast with H.E.Mr Pierre Gramegna. This breakfast at which local contacts could also be invited, was the perfect setting for an engaged exchange between our companies, of which most already have a Brazilian subsidiary and the Minister of Finance.
Also the financial center is targeting Brazil as showcased during this mission. Luxembourg is home to many foreign financial institutions from around the world, including Brazilian banks and fund promoters wishing to diversify their portfolio and to reach out to investors across the globe through their Luxembourg platform. As of today, 32 Brazilian funds are domiciled in Luxembourg with a total AuM of 1.5bn USD. Three of the major Brazilian banks are present in Luxembourg.
The Luxembourg Chamber of Commerce also used this economic mission to analyse and improve the local support that Luxembourg companies can expect when entering the Brazilian market.
