Brazil is a member various trade groups for example WTO, G-20, The Cairns Group and Brazil is also part of Mercosul which is an a pre-eminent regional trading agreement in Latin America. Brazil is seen as one of the BRIC countries.
T his shows that the involvement of the government in Brazil is important. The government is looking to develop the technological landscape of the country. Therefore the government is encouraging Research & Development investments.
The government is providing several incentives, including depreciation of up to 100% of R&D investments and an income tax deduction of up to 200% of R&D investments. The program called "My House, My Life" is in its second phase with an astonishingly $35.7bn investment in building 2 million homes. Also the government currently invested $2.4bn in Sanitation Growth Acceleration program. The program "Without poverty" was introduced for citizens that earn less than $34.6 a month; this program will cover these citizens. The government also has its focus on a multi-billion dollar project that has been addressed to the problem of deforestation, reforestation and conservation. Currently the President Rousseff has taken some strict measures, .
To secure the Brazilian market Mrs. Rouseff raised the import taxes from 25% to 55%. When the government found out that car manufactures were shipping cars from Mexico to Brazil and taking advantage of the regional agreements between Brazil and Mexico. The President slapped a quota on Mexican imports as a counter attack. Also the Car manufacturers were informed that less tax could be paid by manufactures only if they do more engineering work in Brazil and use mostly Brazil made car parts in their local factories. Another example is the "Plano Real" to lower the inflation rate.
All these steps were taken to make sure that Brazil keeps its position as the fifth largest automobile market in the world and the seventh largest producer.