The relations between Brazil and the United Kingdom are excellent, both in the political and economic arenas. In April 2009 Brazil participated in the G20 summit in London, just a week after Prime Minister Gordon Brown had visited Brazil to co-ordinate the summit with President Luiz Inácio Lula da Silva. At the same time Lord Mandelson was in São Paulo leading a UK business delegation.
The Brazilian Government is committed to bringing about an increase in bilateral trade. In 2008 the UK ranked fifteenth among Brazil's export markets, receiving total exports of US$3.7bn, while Brazil ranked sixteenth among the UK's export markets (US$2.5bn). The UK ranks ninth as a source of Foreign Direct Investment (FDI) in Brazil, after the Netherlands, the United States, the Cayman Islands, Spain, Germany, France, Luxembourg and Italy. It is worth noting that Brazilian FDI into the UK has been growing consistently and that it has been greater than British investment in Brazil in three of the past four years.
The British companies that are doing particularly well in Brazil include:
- BG Group, which is the most important foreign partner of Petrobrás and has projected investments of over US$10bn in offshore oil exploitation;
- Wellstream, which is increasing production of flexible pipes for the offshore oil industry;
- Shell, with its long tradition of investment in Brazil;
- BP, which has been making major investments in biofuels;
- Diageo, the sellers of whisky and many other beverages;
- Cadbury, with its growing participation in the Brazilian confectionary industry;
- Rolls Royce, which is celebrating 50 years of activities in Brazil;
- Glaxo SmithKline, which has forged a groundbreaking partnership with Fiocruz to develop important vaccines;
- HSBC, with successful operations throughout Brazil;
- GKN, producing car components;
- Lloyds of London, which is now established in Rio de Janeiro and set to participate in the recently-liberalized Brazilian insurance markets.
Meanwhile, the Brazilian presence in the UK includes:
- Petrobras Europe, which has a long history in London;
- Banco do Brasil, also long-established in London;
- Banco Itaú-Unibanco and Bradesco, Brazil's two largest private banks;
- Marfrig and JBS, which are among the largest meat exporters in the world;
- Cutrale, the world's largest orange juice producer and exporter;
- Rede Globo, the most important TV network in Brazil;
- The Brazilian National Development Bank (BNDES);
- BM&FBOVESPA - the São Paulo stock exchange
BNDES and BM&FBOVESPA reflect the buoyancy of the bilateral economic relations by having recently opened new offices in the City of London.