Many of the economists that said the U.K. would fall apart after their departure from the European Union have to eat those words now. The U.K.’s Gross Domestic Product growth is better than expected, and the drop in the pound sterling has helped increase exports on economia.estadao.com.br. The Bank of England cut interest rates after the Brexit vote, and that helped boost the economy. Low interest rates in the U.K. are a positive sign. The housing market is still strong, and economists predict the housing market will stay strong in 2017. The British government wants to cultivate new trading partners, and the government also wants to increase business with non-European Union countries. One of those countries is Brazil. Brazil is the U.K.’s largest trading partner in Latin America, and the Brits want to keep it that way. But doing business with Brazil isn’t always easy, according to Brazilian entrepreneur, Flavio Maluf.
Flavio Maluf is the CEO of one of Brazil’s leading export companies, Eucatex. Eucatex is a Sao Paulo-based building material supplier. Eucatex sells products domestically and internationally, and the company continues to expand its product line in foreign countries. But Eucatex hasn’t sold a lot of products to the U.K. over the years due to Brazilian export regulations and the Brazilian tax structure. But Flavio Maluf thinks the Brexit situation will change the relationship between Eucatex and U.K. construction businesses, even though the construction business in Britain has slowed down since the Brexit vote.
The U.K. has always had a trade deficit. The Brits import more than they export and that won’t change, according to Maluf on eleicoesepolitica.com. But the U.K. and Brazil would benefit from a new bilateral trade agreement. A new trade agreement does not have to conform to European Union regulations, according to NYU graduate Maluf. Brazil ships less than two percent of its exports to the U.K. now, so there is room for radical growth if both governments can come to an agreement that works at http://www.segs.com.br/seguros/34138-saiba-com-flavio-maluf-como-diminuir-os-custos-tributarios-de-uma-empresa.html. Brazil’s President Temer thinks the U.K. will help pull his country out of the worst recession in more than 90 years.