MercoPress. South Atlantic News Agency

Brazil promotes exports.

The Brazilian government encouraged with record exports forecasted to reach 90 billion US dollars this year announced cuts in red tape that should help to further promote overseas sales.

"This will ensure continuity to the bureaucratic obstacles elimination process began by this administration", said Mr. Luiz Fernando Furlan, Development, Industry and Foreign Trade minister.

The new system simplifies procedures for the elimination of income tax on samples and funds transferred overseas for the promotion of Brazilian exports. Although theoretically no taxes are paid, the number of certificates demanded to exonerate virtually annulled the benefit.

"From now on it will be far easier to have access to the benefit since we've eliminated several documents", added Mr. Furlan.

The decision should help Brazilian exporters increase their overseas promotion campaigns in fairs, shows, market research and other areas which help exports. In the first seven months of 2004, Brazilian exporters have invested over 10 million US dollars in these areas and the latest decision is estimated will reduce costs up to 33%.

In related news the Brazilian Central Bank announced that GDP growth forecasts for 2004 keep increasing and now stand at 3,92%, particularly given the strong 6,1% expansion in industry. The debt/GDP ratio is estimated in 56,7%.

In 2005, Brazil's GDP is forecasted to expand 3,5%, industrial production 4,07% and the debt/GDP ratio should drop to 55%.