During my career with the U.S. Commercial Service, I spoke with many companies that wished to explore opportunities in the world’s sixth-largest country by population (nearly 213 million people), only to surrender to its complex and onerous import tax and tariff regime; often frustrating regulatory environment; challenging linguistic situation; and, in some locations, antiquated infrastructure. Nevertheless, many American exporters willing to invest the time to slowly and strategically cultivate the market reap significant rewards in this huge and diverse country.
Thinking strategically, one agent or distributor for the entire country will not suffice, unless it is an entity with country-wide capabilities. Instead, an agent or distributor in the six largest cities in descending order—Sao Paulo, Rio de Janeiro, Brasilia, Salvador, Fortaleza and Belo Horizonte—is much more preferable. Also, appoint an agent or distributor with the ability to determine your shipment’s taxes and tariff and who can navigate the regulatory waters.
The leading export sectors according to the U.S. Commercial Service Country Commercial Guide (CCG) for Brazil are: architecture, construction and engineering; agriculture; defense, aviation and security; chemicals; education and training; energy; finance; franchising; healthcare; information and communications technologies and telecommunications; and infrastructure.
The UAE, a federation of seven emirates, is growing in popularity as a lucrative export market. Dubai and the capital city of Abu Dhabi are the prime locations, and a sound strategy is to appoint an agent or distributor in each of these dynamic and vibrant cities. American companies must remain alert to the possibility of third party diversion. Companies should know there is a history of products moving from the UAE to Iran and that an embargo exists on exports to Iran. Thus due diligence, always a very important part of the export process, is especially critical when exporting to the UAE.
The leading export sectors according to the CCG are: aerospace and aviation; clean tech and environmental technologies; defense; design and construction; digital and information and communications technology; health care and life sciences; and oil and gas exploration and technology.
Comprising over 17,000 islands and a population of 273 million people from many diverse cultures, Indonesia is a huge country that should garner a great deal of attention from many exporters. Exporters typically appoint an agent or distributor based in Jakarta, the capital city of 10.5 million inhabitants.
The leading export sectors according to the CCG are: agriculture; aviation; education and training; energy; financial services and technology; franchising; health care; and information and telecommunication technology.
Poland, a country of 38 million people and a member of the European Union (EU), has a strong affinity for U.S. products and services. Companies typically seek agents or distributors in Warsaw to cover the entire country. However, some companies might want to divide the market into a northern half with coverage based out of Warsaw, and a southern half with a Krakow-based agent or distributor. In addition to the Polish market, Poland can serve as an entry point to other member states of the EU.
The leading export sectors according to the CCG are: advanced manufacturing; agriculture; education; defense; digital technologies; energy; infrastructure and intelligent transportation systems.
With proper planning to mitigate political and economic risk, American companies can take advantage of the potential offered in these markets. A focus on developing market share over the long term, combined with patience and an ability to adapt to changing circumstances, is essential for success.
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