The federal government has granted tax benefits for certain free trade zones. The most prominent of these is the Manaus Free Trade Zone, in Amazonas State, which has attracted significant foreign investment, including from U.S. companies. Most of these free trade zones aim to attract investment to the North and Northeast of Brazil.
Foreign Direct Investment Statistics
According to the Central Bank's most recent foreign-capital census (2000), the United States had the largest share of accumulated foreign-capital stock in Brazil, 23.8 percent of the total. Spain had 11.9 percent and The Netherlands 10.7 percent. Investment inflows between the years 2000 to 2006 have amounted to about USD 117 billion, exclusive of depreciation and capital repatriation. The Central Bank has not yet published updated investment stock figures which were originally expected in early 2007.
Brazilian Central Bank data estimate total net FDI inflows were USD 34.6 billion in 2007, USD 45.1 billion in 2008, and USD 25.9 billion in 2009. According to the U.S. Bureau of Economic Analysis, FDI inflows from the United States to Brazil were USD 4.1 billion in 2008 and United States’ FDI stock was USD 45.5 billion as of 2008.
Brazil's top 20 multinationals have USD 56 billion assets abroad, equivalent to over half of the country's outward FDI stock. A 2007 survey by the Columbia Program on International Investment (CPII) and the Brazil-based Fundacao Dom Cabral (FDC) in New York indicated that Brazil's top multinational enterprises (MNEs) made the country the second largest outward investor among developing countries in terms of foreign direct investment (FDI) outflows in 2006.