Watershed - For Brazilians what is easier and what is more difficult when negotiating with a Chinese or an Indian?

Nelson Vitorino de Souza - By the experience gained in several international negotiations I can assure you that there are no facilities with them and I will explain why. Our culture is focused on very short term results, we want to have some meeting with an agenda and soon go on to sign the contract. This vision is far from their standards especially Chinese executives. Therefore the most difficult part of understanding in a negotiation like these is to know that the decision taking is slow and becomes a test of patience, after all this civilization is considered one of the oldest in the world.  Let us talk of the language. Is it difficult to speak mandarin? Then let us write. No way! Then let us speak English ? It got better. The difficult part is to understand the reasoning of a Chinese in a language other than Mandarin and then translate it back to Portuguese using our reasoning base. At the beginning, it is difficult but time is the master of right and takes care of putting things in order. For this patience is a fundamental article. As to the Indians, I can advance that what facilitates the negotiations is their strong entrepreneurial spirit; I do not see many difficulties. 

WS - For the Chinese and Indians what is easiest and what is most difficult to negotiate with a Brazilian?

NS - Our short-term vision is the major problem for them, it impedes and stalls negotiations. Apart from this, the cost of operations with China is still above the standards of many Brazilian companies. For example: the executive must consider the time difference and know that there must be a specific shift to deal with customers and partners on the other side of the world. It is incredible but many companies end up succumbing to these small details, which make much difference at the end of the operation. For an Indian, the easiest part of negotiating with a Brazilian is the matter of relationship between the parties since the Indian are more educated and have characteristics like ours. The difficulty is basically technical due to the excess of documentation and stages for the operationalization of business in Brazil.

WS - What is the profile of Brazilian companies which are seeking opportunities in China and India?
 
NS - Our exports to China are growing and apart from traditional business involving iron ore, soya and cellulose derivates, today the opportunities for business are enormous for the exports as well as imports. Brazilian companies of small and medium size are starting to understand its important role in Brazilian society in the generation of jobs and income and international business, which make up part of this process. We have cases of big business between Brazil and China with the chance of international mergers and partnerships in various sectors like automobiles, auto parts, heavy machinery, printing machines, electronics, toys and footwear. I can advance based on recent information that the areas with most possibility of business between Brazil and India are pharmaceuticals, aviation, engineering, ethanol, chemicals motorcycles and software.

WS - Have these companies shown interest and need in the area of consulting?

NS - Our company has been active for more than seven years developing consulting in markets known as “exotic”:  Africa (Angola, Mozambique and South Africa), Middle East (Emirates and Oman) and Asia (China and India). To start business in these countries companies really need a facilitator for the business arrangements, mainly in the case of small and medium businesses. In our  portfolio, we also have large size companies including American and German multinationals for whom we develop consulting. It is important to be able to circulate among executives as well as government in various levels since the government platform is diametrically opposed to our reference. It is much easier to go in the door if it is already open.
 
WS - You company is also active in the area of the transfer of soccer players abroad. What is the market potential and what deals have been done?
 
NS - In fact, we realized some transactions involving professional soccer athletes. Our focus is not on being soccer agent but in fact being an agent of intermediation and management of international business. In addition, soccer has generated big business due to the talent of our athletes. China is a potential market for all sports, by the success of the Olympic Games and important number of medals that they got.

WS - China became the world factory, India is dominating the area of  Information Technology and Brazil, is going to transform itself into an agricultural and energy superpower? 

NS - In mid 2002, we began to follow the marvelous work of Dr. Wilfrido Marques in favor of Brazilian agribusiness, through the Day of the Country Project. Realized in his Sangapuitan farm in the Federal District and in Goiás, the Project received constant visits from international authorities and I could observe by the attentive looks from Ambassadors, Governors, Prime Ministers and specialists from countries like Australia, France, Eastern Timor, China and India, that our country is the  natural way for agribusiness questions as well as alternative energy, which in some years will not be so alternative. Brazil has found new fields for the exploration of petroleum, however what we can most give of value to the coming years are the water reserves. We urgently need to turn our eyes to that, preserving the water springs… we must be the largest suppliers of drinking water in the world.

WS - Is there a lack of agility and focus in Brazilian commercial diplomacy?

NS - I do not see it in this form. What happens is the following: we must divide the competencies. A Diplomat is not a salesman of products and services. He was put there to deal with matters in the realm of international conflicts be they discussions of market reserve, patents, international law, etc. Many companies do not manage to proceed with their international projects, and not for lack of financial resources and infrastructure. In our experience, the lock is always in the agility to mount the puzzle of the network of international relationships. Sometimes, those companies seek support in a high governmental level and the key to the door is in the hand of another contact, in a much lower position. It is a question of experience and international exposure in the markets in which one intends to work. Many businessmen participate in international business rounds, come back with hundreds of visiting cards, time passes and they do not close the expected contracts and finally are disappointed with the organizers. Seeking the support of a specialized consulting firm in the market, with strong contacts, will diminish the risks of future frustrations. 

WS - Does the bureaucracy still hold up and make many deals unfeasible? 

NS - Our country was much more  bureaucratic, however we still live this question mainly in import and export operations, due to the infinity of documents needed to open a company and register products, depending on the sector. I would not say that it makes deals unfeasible but creates mistrust by international investors, especially those which have a much smaller tax burden than that applied here.  

WS - How do infrastructure problems affect Brazilian foreign trade?

NS - In foreign trade, we live with terrible problems. We need to improve the logistics. How can a country like Brazil have left railroad transport become scrapped? We need strong investments in this sector for the outflow of our agricultural products. The roads are full of holes, and in no condition for large trucks to travel. Our ports have reached the end of the line. Although international shipbuilding companies develop new ships with high technology and greater cargo capacity and volume, the ports do not manage to anchor these craft, due to lethargy in taking decisions in the past. Non-ending strikes... it is a worker right, however we need the category to get moving and find a solution, so the country does not stop in function of their claims. There are millions of dollars of losses for companies, workers and traders. However, I believe we are advancing step by step and our companies are able to participate in international business. 


Interview by Marcos Guedes Pereira