Brazilian Government Extends Policy Favoring ICT Products Made in Brazil

The Brazilian market has been inundated with foreign companies as of late. In 2012 alone, Nokia Siemens, Lenovo, Apple and Amazon, among numerous others, gave it a go. The Brazilian government has kept a close watch on activities in the country’s ICT sector, and last week, it took measures to ensure that products and services made in Brazil would be able to stand up to foreign companies – at least when it comes to the government’s own buys.

The Brazilian government extended to the ICT sector a policy favoring locally-manufactured products in public tenders. The decision encompasses products like digital and wireless routers as well as transmission devices.

With the goal of stimulating local development, preference margins have been set out for the purchase of ICT equipment – 15% for products manufactured in Brazil, and 25% for products manufactured and designed in Brazil. Therefore, if a foreign-made product costs R$100 (roughly US$50), preference will be given to a local product priced at R$115 (about US$58).

Delfino Natal de Souza, Secretary of Logistics and IT of the Ministry of Planning, revealed in a statement that the federal government’s IT purchases have grown 153% over the past five years, reaching nearly US$3 billion (R$6 billion) in 2012.

This preference measure will seek to keep capital in Brazil.