Mineral and agricultural commodities have a central role in the Brazilian exporting agenda, besides serving a strategic purpose for the country. According to the IBGE, the mining sector represents roughly 4% of the GDP, being responsible for 15% of the country’s exports. Considering it is an extractive activity that may generate social and environmental impacts, mining is strongly regulated. Agriculture and livestock represent around 5% of the GDP, accounting for 24% of exports.
Both sectors are subject to international price fluctuations and, at the same time, are exposed to the so-called “Brazil cost.” Historically, logistics have been the principal challenge facing mining and agricultural activities. Nevertheless, with the passage of time, other themes have increased in relevance, such as environmental questions, issues regarding the water supply, and commercial policies, specifically dealing with the importing of fertilizers. In the case of mining, there is the New Code of Mining, which should create changes in the sector following its approval.
Against this backdrop, it is essential for companies active in the sectors of mining and agriculture and livestock to understand the logic of decision making in the executive and legislative branches, both of which exert influence over the business environment in Brazil. Prospectiva supports companies in the mitigation of regulatory and political risks associated with activities in these sectors. Among the services provided are:
- Understanding of the political scene in specific areas related to the sectors of mining and agriculture and livestock;
- Aligning of the government’s agenda with the government relations strategy of the client;
- Design of approximation strategies;
- Monitoring and studying political risks;
- Carrying out impact studies and accompanying international negotiations.