Octávio

Friasde

OliveiraBridge

“Ponte

Estaiada”,

S?oPauloBusiness

ClimateSurveyBrazil

2023S?oPaulo,

BrazilMay

20231Background●

Swedishcompanieshavebeenpresent

in

Brazil

for

morethanahundredyears.

Even

thoughBrazil

canbeachallenging

market,newSwedishcompanieskeepon

settingupoperations

in

the

country

whilelong-established

corporations

continue

toinvest.Employing~40000people,they

areactive

insectors

suchastelecom,transport,

machinery,

defense,

healthcare,services,mining

and

more.●

Thisyear’s

report

isthe

fourth

edition

withinthe

globalcollaboration

between

the

Swedish

internationalchambers

of

commerceandBusiness

Sweden.

A

collaboration

thatin2023facilitates

foraglobalcomparisonof23markets

from

allcontinents,this

inaddition

tothe

local

market

resultsamong

Swedishenterprises

in

Brazil.●

Theobjective

of

thesereports

is

toprovideabetter

understandingandsome

goodinsightsonhowthe

current

business

climateanddevelopmentaround

the

world

is

perceivedbyleading

Swedishcompanies.

Thereports

willserveasacomparisontoolforSwedishcompanieswith

planstofurther

invest

intheircurrent

business

or

expand

intonewmarkets.●

Thisyear,

theBusiness

Climate

Surveycollected

answers

from

50

Swedish

companiesinBrazil,

across

varioussizes

andindustries,whichwas

onasimilar

level

asin2022.●

Thesurveywas

performed

between

the

13th

of

Marchandthe

27th

of

April.●

Team

Sweden

inBrazil,

consisting

of

the

Embassyand

Consulates,

Business

Swedenand

Swedcham,

works

topromoteSweden,

the

SwedishindustryandSwedisheconomicinterests

in

Brazil.

Thecommitment

andclose

cooperationbetween

theTeam

Sweden

partners

helpto

better

position

andgrowSweden

in

Brazilthrough

variousactivities

and

programs,

out

of

which

theexecutionof

the

annualBusiness

Climate

Surveyisagoodexampleof

ajoint

activity.#%$#%$#BUSINESSSWEDEN2Key

Takeaways:

BrazilBusiness

Climate

Survey

202386%of

Swedishcompanies

in

Brazil

were

profitable

during

2022,aslightly

better

result

than

2021,

which

already

represented

thehighest

levelinthe

analyzed

seriesEven

withlower

GDP

growth

projected

for

Brazil,

63%

ofcompaniesexpect

to

grow

turnover

inthe

next12

months

and

62%

expect

toincrease

local

investmentsThe

business

climate

inBrazil

isperceived

as

positive

by26%

of

thecompanies

against

16%whichconsider

it

tobe

negative.

Reasons

for

lesspositive

results

compared

to

the

previous

yearinclude

inflation,

lowerprojected

growthand

uncertainties

about

the

new

governmentTaxes,

bureaucracy

and

regulatory

issues

remain

the

main

challenges

forbusiness

inBrazil.

Customs

duty

levelsand

procedures

represent

tradebarriers

for

38%.Veryfew

Swedishcompanies

came

across

corruption

orhuman

righviolations

during

2022.

Environmental

awareness

inBrazil

has

becomuch

more

relevant

inthe

recent

years.#%$#%$#BUSINESSSWEDEN3Business

ClimateSurvey

Brazil2023Agenda●

Swedish

Business

in

Brazil●

Brazil

Business

Climate●

Challenges

and

How

SwedishCompanies

Succeed

inBrazil●

Acting

Sustainably#%$#%$#BUSINESSSWEDEN4Key

Takeaways:

Swedish

Businessin

Brazil50Swedishcompaniesfrom

differentindustriestook

part

in

the

BrazilBusinessClimateSurveythisyearThegreat

majority

ofrespondents

(80%)havemore

than

1000employees

globally,with

varying

sizes

of

operations

in

BrazilHalfof

respondents

are

industrialmanufacturers,

and

theother

halfiscomposedbycompanieswithin

consumergoodsandprofessionalservices58%of

respondents

areexperienced

inthe

Brazilian

market,

having

presencefor

morethan20years#%$#%$#BUSINESSSWEDEN5Size:80%

ofrespondentshavemorethan1000

employees

globally

and28%alsohave

morethan500employees

in

BrazilQuestion1:

Please

estimate:

(a.)

the

globaland(b.)

the

local

number

of

full-timeemployeesinyourcompany

in

2022Columntotal:80%6%2%8%4%0%●

80%

ofthe

Swedish

companies

participating

inthisHighsurveyhavemore

than

1000

employees

globally.+1000500

–1000250

–49950–24910–4924%●

28%

ofrespondents

have

500

ormore

employeesinBrazil,including

industrial

companies

andproviders

ofspecialized

services.4%6%●

A

few

respondents

have

lessthan

50

employeesglobally

and

inBrazil.

Those

comprise

smallserviceproviders.Number

ofemployeesinBrazil30%2%2%2%4%2%2%12%2%2%2%4%1–9Low+1000500

–1000250

–49950–24910–491–

9HighNumber

ofemployees

globallyLowNote:responses

Don’t

know/Not

applicable

were

excluded

fromthisanalysis.Basedon

responses

by51

companies.#%$#%$#BUSINESSSWEDEN6Industrial

companies,which

compose

thelargestshare

ofSwedish

businessin

Brazil,

represent

50%ofrespondentsofthissurveyQuestion2:

What

is

yourcompany’s

main

industryin

Brazil?Construction

and

building4%Food

and

beverage4%Aerospace

and

defence2%●

50%

ofthe

respondents

belong

topure

industrialsegments,

composing

thecore

ofSwedishbusiness

inBrazil.Mainsegments

are

automotive,metals

&mining

and

industrial

equipment.Consumer

goods8%Metals&mining8%Heating,

ventilation

andair-conditioning

(HVAC)4%●

However,sincethebeginning

of

the21st

century,Swedish

serviceproviders

–digital

ornot–haveturned

intoarelevantshare

of

Swedish

businessinBrazil,being

focused

oneither

technical,consumer

or

business

services.Healthcare

andpharmaceuticals10%Consumer22%Forest

products

and

paper4%Containers,

packaging

and●

Overall,theSwedish

business

footprint

inBrazilisvery

diverse,withcompanies

indifferent

industrial,servicesand

consumer

segments.

Employingaround

40000

people

inBrazil,atleast

50companies

operate

local

manufacturing

sites

andassembly

units.Industrial50%glass4%Business

servicesProfessionalServices28%10%Technical

services2%Industrial

equipment14%Consumer

services2%ITand

electronics4%Transportation4%Automotive10%Water,

wasteandrecyclingTelecommunications4%2%Note:Other/Not

Applicableanswers

were

reclassified

tothe

companies’

closest

business

areas

fortheanalysis

of

thisquestion.#%$#%$#BUSINESSSWEDEN7Age:Nearly

half

ofthe

survey’s

respondents

havebeenpresentin

Brazilformorethan20

yearsQuestion3:

Inwhat

yeardidyourcompany

establish

operations

in

Brazil?Swedish

companies

established

after

2000

and

GDP

growth*Newcomers(>2016)12%432108%6%4%2%0%-2%-4%Mature(<2000)46%Experienced(2000-2015)42%Number

of

establishedcompaniesBrazil'sGDP

growth(%)*Note:regarding

2022

respondents

only(excludes

Don’t

know/Not

applicable

answers).

Brazil2023

GDPgrowth

forecastby

IMF(0.8%).#%$#%$#BUSINESSSWEDEN8Morethan

halfofSwedish

companiessurveyed

haveproduction

in

Brazil,

andathird

drivesR&D

activities

locallyQuestion4:

What

operationsdo

youcarry

out

inBrazil?0%10%20%30%40%50%60%70%80%●

54%

ofrespondents

have

manufacturingorassembly

operations

inBrazil,provingthat

local

production

isstillakeyMarketingand/orsalesAfter-salesand/orsupportManufacturingand/orassemblyProvisionof

services74%strategy

for

accessing

theBrazilianmarket,

for

many

Swedish

companies.62%●

The

number

of

respondents

whoconduct

local

R&Doperations

grew

from24%

in2021

to32%

in2023,

potentiallyindicating

investments

inthis

area.54%●

This

year’s

assessment

indicatea

verysimilar

picture

of

typeof

operations

bySwedish

companies

inBrazil,comparedtotheprevious

year.

Asan

exception,only

20%

claimed

toconduct

sourcingand

trading

this

time,against

32%

in2022.54%ResearchanddevelopmentSourcingandtrading32%20%#%$#%$#BUSINESSSWEDEN9Business

ClimateSurvey

Brazil2023Agenda●

SwedishBusiness

inBrazil●

Brazil

Business

Climate●

Challenges

and

How

SwedishCompanies

Succeed

inBrazil●

Acting

Sustainably#%$#%$#BUSINESSSWEDEN10Key

Takeaways:

BrazilBusiness

ClimateWithuncertaintiesandmacroeconomicchallenges,

companiesareless

positiveabout

the

business

climatein

Brazil;57%are

neitherpositive

nornegative86%of

Swedishcompanieswere

profitablein2022,thehighestlevel

inthe

series;meanwhile,only8%presented

lossesAlthough

on

alower

level

compared

to2022,mostrespondents

still

expect

toincreasesales(63%)

andinvestments(62%)

in

2023After

a2.9%

GDPincrease

in2022,

Brazil’sgrowth

forecast

for

2023is

below1%;

similarly,growth

inEuropeshould

notreach

1%#%$#%$#BUSINESSSWEDEN1186%ofcompanieswere

profitable

in

2022,

keepingup

thehigh

levelobservedin

previousyearsQuestion5:

Howwould

youdescribeyourcompany's

financial

performance

inBrazil

in

2021?●

Asinthelastthree

yearsofBusiness

Climate

Surveycovered,

themajority

of

Swedish

companies

wereagain

profitable

in2022.

Only

8%

presented

losses.86%84%76%●

Forthesecond

year,

largeindustrial

companies

werethemore

profitable

than

smaller

ornon-industrialcompanies.70%●

Swedish

companies

newer

totheBrazilian

market–established

in2016

orlater–are

having

difficulties

inthepost-pandemic

era,all

presenting

losses

inBrazilin2021.●

Despite

the

growth

in2022,

with2.9%

GDP

increase,Brazil’scontinues

tobe

threatenedby

inflation

intheshortterm.Mostglobal

institutions’

growth

forecastfor

Brazilin2023

are

below

1%.17%16%13%10%8%8%6%6%2019

2020

2021

20222019

2020

2021

20222019

2020

2021

2022LossBreak-evenProfitableNote:Don’t

know/Not

Applicableanswers

were

excluded

inthe

analysisof

thisquestion.#%$#%$#BUSINESSSWEDEN12With

thecurrentmacroeconomicchallenges,GDP

growth

isnot

expected

tosurpass

1%in

bothEurope

andBrazilGDP

GROWTH(%)AND

FORECAST,

BRAZIL

AND

SELECTED

REGIONS8%7%6%5%4%3%BrazilEuropeanUnion2%1%0%20162017201820192020202120222023f-1%-2%-3%-4%-5%-6%-7%-8%LatinAmerica&CaribbeanSource:

IMFEconomic

Outlook

April2023.#%$#%$#BUSINESSSWEDEN13With

lower

GDP

growth

expected

for

2023

andthe

uncertainties

ofa

newgovernment,companiesarelesspositive

aboutthe

businessclimateQuestion6:

Howdoyouperceivethe

current

business

climateinBrazil?100%10%10%35%12%36%●

26%

ofSwedish

companies

feelpositiveabout

the

business

scenarioinBrazil,whichrepresents

19

pplessthan

in2022.

Potential

reasonsinclude

lower

growth,

inflation

andpolicy

uncertainties.90%80%70%60%50%40%30%20%10%0%21%26%42%26%41%45%51%●

Mostcompanies

(57%)

haveaneutral

perspective

overthe

businessclimate

inBrazil,and

16%

havearather

pessimistic

view.

This

isinparwiththe

2019

survey,

inascenariostillunaffected

by

the

pandemic.PositiveRegularNegative62%57%42%●

Larger

companies

haveamoreoptimistic

viewofthebusiness45%55%52%climate

inBrazilcurrently.

That

isalsotruefor

companies

intheconsumersegment,

despite

highinflation.39%32%17%17%16%●

Mid-sizedcompanies

and

newcomersare

all

neutral

about

thecurrentbusiness

climate

inBrazil9%20162017201820192020202120222023#%$#%$#BUSINESSSWEDEN14With

marketuncertainties

andinflation,

theconfidenceofbusiness

leaders

inBrazildropped

in

2023

to

thelowest

levelsincethepandemicbreakoutINDUSTRIAL

BUSINESSMAN

CONFIDENCEINDEX

–ICEI,SCORE0to10070656055.15554ICEI-General50.048.85045403530ICEI-ConstructionICEI-ExtractionHistorical

averageICEI-Generaljan/10jan/11jan/12jan/13jan/14jan/15jan/16jan/17jan/18jan/19jan/20jan/21jan/22jan/23Source:

CNI.BUSINESSSWEDEN#%$#%$#15Companiesare

positive

aboutthe

taxreformanda

new

sustainability

policy,butareconcerned

aboutprotectionism

andhigh

public

spendingQuestion7:

A

newBrazilian

government

waselected

in2022.

If

implemented,

howwill

the

below

factors

affect

yourbusiness

inBrazil

duringthe

next

years?NegativelyNoreleventimpactPositively●

Respondentshavereceivedafew

policies

by

thenewgovernment

positively,

including

the

long-waited

tax

reform,

which

will

simplify

businessoperations.

Companiesare

alsopositiveabout

anewenvironmental

policy,

which

canstimulate

salesof

sustainablesolutionsaswell

asunlockthe

EU-Mercosur

free

trade

agreement.

The

listiscompleted

withincomedistributionprograms

andincreasedpublic

investments,

both

of

which

canpotentiallyboost

consumption

andnewEnvironmental

policy

and

“green

transition”

incentives20%80%80%Taxreformand

creationof

asingleVAT8%12%Publicinvestmentsin

housingandinfrastructure

4%36%60%SocialprogramsandincomedistributionpolicyIncreasedrole

of

BNDESandpublicfinancing10%38%52%infrastructure

projects.●

Companiesare

more

neutral

orunsure

about

anewforeign

policy

withLatinAmericanfocus,

aswell

asahigher

government

interference

overpubliccompanies,

e.g.,

Petrobras,

andpublicfinancingthrough

BNDES,

Brazil’s

NationalDevelopmentBank.18%40%42%Changeinforeignpolicyand

focusonLATAMandemergingmarketsHighercontrolover

publiccompanies22%40%38%40%48%12%●

Finally,

Swedish

companies

areconcerned

about

apotential

unbalanceof

public

accounts

dueto

ahigher

public

spendingandthe

change

inthebudget

caprule.

They

arealsopessimisticaboutnewtariffs

andincentivesinthe

“re-industrialization”plan,probablyinfavor

of

free

trade

withforeignmarkets

to

support

sourcing

andimports

fromSweden.ChangeofbudgetcapruleandincreasedgovernmentspendingProtectionoflocalindustrythroughexternaltariffsand

incentives48%22%30%56%26%18%0%20%40%60%80%100%#%$#%$#BUSINESSSWEDEN16Companiesare

worried

aboutnew

uncertainties

regarding

thenewgovernmentandlingering

inflation,

but

also

seeadvances

on

sustainability””Question8:

Isthere

anythingelse

youwould

like

toshareregarding

the

business

climate

in

Brazil?#%$#%$#BUSINESSSWEDEN17Although

lessthanin

theprevious

year,

mostSwedish

companiesstill

expecttogrow

businessandincreaseinvestmentsin

thenext

12monthsTurnover

expected

forthe

next

12

monthsInvestments

expected

for

thenext

12monthsQuestion

9:Question

10:Compared

to

the

development

inthe

past

12

months,

what

are

yourexpectations

for

the

coming

12months

for

your

industry

inBrazilregarding

turnover?What

are

your

company's

investment

plans

for

the

coming

12months

in

Brazil,

compared

to

the

past

12

months?

Investmentswillbe…88%77%71%63%62%61%58%53%31%28%25%23%22%22%20%19%16%11%11%

12%8%8%6%4%2020

2021

2022

20232020

2021

2022

20232020

2021

2022

20232020

2021

2022

20232020

2021

2022

20232020

2021

2022

2023SlightlyorsignificantlyreducedUnchangedSlightlyorsignificantlyincreasedSlightlyorsignificantlyreducedUnchangedSlightlyorsignificantlyincreased●

Small

and

mid-sized

companies,

besides

newcomers,

are

more●

And

yet,

small

newcoming

companies

also

saidthat

they

willoptimistic

about

business

growth

inthenext12months.mostly

reduce

investments

inthe

nextyear.#%$#%$#BUSINESSSWEDEN18With

the

appreciation

of

BRL

in

2022,

Brazilisnow

the

11th

largesteconomy;Brazilwas

the3rd

largestdestination

forFDIin

2022,while

Sweden

took

7th

place2022LARGEST

GLOBAL

ECONOMIES,

bUSD

current2022LARGEST

GLOBAL

ECONOMIES,

bUSD

PPP*2022LARGEST

FDIDESTINATIONS,

mUSDcurrentAnnualgrowthGDPPPPGrowth2019-2022RankCountryGDPRankCountryRankCountryFDIinflow=1=2UnitedStatesChina254641810042344075338630712784221521402012192417021665586+2.1%+3.0%+1.1%+1.8%+6.8%+4.0%+2.6%-2.1%+3.4%+3.7%+2.9%+3.7%+2.6%+2.6%=1=2China30217=1=2UnitedStatesChina318

370180

16785121654795262749915475344222535292339733252629203277602196824%-4%UnitedStatesIndia25464118556139534747714037383737143704335230582957689=3Japan=3

3

4

5

6

7

8=9Brazil30%68%4%=4GermanyIndia=4JapanAustraliaCanadaIndia

5

6=7=5GermanyRussiaUnitedKingdomFrance=6-1%=7IndonesiaBrazilSwedenFranceMexicoSpain376%222%2%

8=

9Russia*CanadaItaly=8=9UnitedKingdomFrance

10

11=

12

13=

24=10=11=12=13=39

10

11

12

13

1483%137%119%60%-8%BrazilTurkeyJapanAustraliaSouthKorea…SwedenItalyPolandIsraelMexico…SwedenIndonesiaNumber

of

countries

intherank:

196Source:

IMF(GDP),OECD

(FDI)

.BUSINESSSWEDENNumber

of

countries

intherank:

196Number

of

countries

intherank:

47Note:PPP–PurchasingPower

Parity,

discountstheeffectof

currencyvalue.

*Although

presenting

a

receding

economy

in2022,

theIMF

still

increased

Russia’s

nominalGDP

toUSD

2.2

trillion.#%$#%$#19Personnel&trainings

andnewproducts&services

arein

thetopofthe

listfornew

investmentsby

Swedish

companiesin

BrazilQuestion11:

If

yourcompany

will

increaseinvestments

in

Brazil

inthe

nextmonths,

wherewill

itbeinvesting

locally?●

Like

in2022,

companies

mentioned

that

theyPersonnel

and/ortrainingsNewproductsandservices60%will

be

investing

themost

inemployees,

withtrainings

and

new

recruitment.

Salescompetence

and

staff

training

remain

inthetopof

their

competitive

advantages(Question

14).42%Digitalization36%36%●

Atleast

athirdof

respondents

will

beinvesting

innew

manufacturing

plants

orexpansions,

and

another

thirdwillbereplacing

machinery.

This

represents

anincrease

overthe2022

results.Machineryreplacement

orothercapital

investmentsNewmanufacturingplantsorexpansionsSalesstructure,marketingcampaigns,governmentResearch&Development&InnovationMerger&Acquisitions,jointventures,startupequityDon'tknow/Norelevantinvestments34%●

Companies

will

be

investing

innew

products(42%)

and

digitalization

(36%),

but

they

arenow

lessthan

in2022

(50%

and

40%,respectively).Ontheother

hand,

26%

will

beinvesting

inR&D&I,a

5ppincrease

from

lastyear.26%26%12%12%●

M&A,JVsand

startups

investments

are

thefocus

for

just12%.0%20%40%60%#%$#%$#BUSINESSSWEDEN20Business

ClimateSurvey

Brazil2023Agenda●

SwedishBusiness

inBrazil●

Brazil

Business

Climate●

Challenges

andHowSwedish

Companies

Succeed

in

Brazil●

Acting

Sustainably#%$#%$#BUSINESSSWEDEN21Key

Takeaways:

ChallengesandHowSwedish

Companies

Succeed

in

Brazil38%of

respondents

found

tradebarriersCompaniescontinueto

claim

for

atax

reformwithincustomsprocedures

anddutyinBrazil;

corporate

taxation

and

customsrepresent

the

worst

conditionsforbusinesslevels;

54%willbenefitfrom

theEU-Mercosur

free

tradeagreementCostefficiency,

sales

competenceandstaffdevelopmenthelpto

guarantee

the

Swedishcompetitivenessin

Brazil96%of

companiesdeclarethat

theybenefitfrom

being

marketed

asSwedishinBrazil#%$#%$#BUSINESSSWEDEN22Marketaccess

conditions

arethe

strengthsof

businessinBrazil;taxes,customsandinfrastructurerepresentweaknessesQuestion12:

Please

ratefrom

1-9

howthe

below

conditionsmeet

the

needsof

yourcompany's

business

inBrazil.●

The

averagescoring

of

businessconditionsimprovedAccesstosuppliersWorkculture/businessmindsetAccesstoserviceprovidersAccesstospecialistsandkeypersonnelAccesstodistributorsfor

the

secondtime

inarow–0.35

pointin2022

and0.11

in2023.

Almost

all

categories

improvedtheirscores,

exceptfor

digitalization,

financialsystem,market

accessandaccess

to

distributors.

In

thisyear’s

assessment,

onlycorporate

taxation

andcustoms

receivedascore

below6–inthe

previousyear,

those

werefivecategories.Transparencyandequal

treatmentMarketaccess●

Personal

safety,

corporate

taxation(despite

beinginthe

bottom)

andlicenses&permits

were

theconditionswiththe

best

improvements;

almost

anadditional

halfapointeach.Financial

system●

“Access”

conditionsfigure

onceagainasstrong

pointsinBrazil,

including

access

to

distributors,

suppliersandkey

personnel,

besidesbusinessculture.Licenses,permitsandapprovalsLevelofdigitalizationPersonal

safety●

“Market”

conditionssuchasthe

financial

system,transparency

anddigitalization

got

intermediaryscores,

just

asinthe

2021and2022surveys.LabourmarketregulationPhysicalinfrastructure●

“Operations”

conditionsare

the

weaknessesinBrazil’sbusinessenvironment,

including

regulatory

topics

andcorporate

taxation,

apart

from

infrastructure.

Onceagain,

corporate

taxationreceivedthe

worstscore.StrengthNeutralCustomsCorporatetaxationWeakness123456789Additional

source:

Secretariade

Seguran?a

PúblicaSP–

SSP.#%$#%$#BUSINESSSWEDEN23Despitetheintermediarydigitalization

levelidentified

bySwedish

companies,Brazilisaheadofmostemergingeconomiesin

theexpansionofdigital

paymentsMOBILE

PHONEPENETRATION

vs.

DIGITAL

PAYMENTS

INTHEWORLD’SLARGEST

ECONOMIES

AND

LATIN

AMERICA,

2021Size:populationAustralia

SouthKorea100%90%80%70%60%50%40%30%20%10%HighshareUKSwedenCanadaEuropeUSANorthAmericaAustralia

&NewZealanLatin

AmericaAsiaEuropeanUnion*ThailandChinaJapanRussiaChileSouthAfricaMalaysiaBrazilUAEAfricaSaudiArabiaTurkeyUruguayArgentinaShareofpopulationwho

made

orreceived

adigitalCosta

RicaBoliviaParaguayColombiaBangladeshpayment(%age15+)EcuadorVietnamMexicoPhilippines*European

Unioncountries

include:Dominican

RepublicElSalvadorIndonesiaNigeria??????????????GermanyFranceItalySpainNetherlandsPolandSwedenBelgiumAustriaDenmarkFinlandRomaniaCzechRepublicPortugalPanamaIndiaHondurasGuatemalaNicaraguaEgyptPakistanIraqLowshare60%65%70%75%80%85%90%95%100%HighshareLowshareShareofpopulationwho

own

amobilephone(%age

15+)Source:

World

Bank

–The

GlobalFindex

Database

2021.#%$#%$#BUSINESSSWEDEN24Customsduties

andcustomsprocedures

representbarriersfortradein

Brazil,affecting38%ofSwedish

companiesQuestion13:

Hasyourcompany

in

the

past

yearencounteredtrade

barriers

inBrazil

with

anoticeably

negativeimpact

onoperations,

in

any

of

thefollowing

areas?●

Customs

barriers

affect

all

kinds

ofSwedish

companies

inBrazil,from

smalltolargeand

from

industrial

toserviceproviders.Customs

proceduresLevelof

customsduties38%38%●Large

companies

find

more

challengesregarding

customs

procedures,

and

aretheonly

ones

hurt

by

governmentTechnicalregulationsandstandardsStateaidorsubsidiesto

domesticcompetitorsRestrictionson

accessto

financingLocalcontentrequirements22%subsidies

tothelocal

industry

(18%).●

Mature

companies

intheBrazilian

marketare

theones

identifying

more

tradebarriers.Newcomers

find

barriers

relatedtocustoms

procedures

and

regulations

ornobarriers

atall.16%16%●

This

year,

thesame

share

of

companiesfound

barriers

incustoms

procedures

andcustoms

duties.

In2022,

respondentsidentifying

procedure

barriers

weremore(44%),

and

duty

barriers,less(34%).10%MorerelevantLessrelevantDon't

know/NA26%●

Companies

identifying

barriers

related

tolocal

requirements

and

technicalstandards

wereless.0%20%40%#%$#%$#BUSINESSSWEDEN25Brazilhasthe

highestaverage

import

tariffamonglarge

economiesAVERAGE

APPLIED

IMPORTTARIFF,

WEIGHTED,

ALL

PRODUCTSSweden:

1.5%UK:

1.3%Russia:4.1%Canada:1.5%France:1.5%Japan:2.2%China:2.4%UnitedStates:1.5%Mexico:

1.2%India:6.2%Colombia:2.4%Indonesia:2.0%Brazil:

8.4%Australia:

0.7%Chile:0.4%SouthAfrica:

4.4%Argentina:

6.9%0%-2.5%2.6%-

5%5.1%-

7.5%7.6%-

10%>10.1%N/ASource:

World

Bank

(through

WTO,

TRAINS,

CTS).#%$#%$#BUSINESSSWEDEN26Localpartnershipsandgovernmentrelations

arethe

l