TITLE:
Brazilian Export Processing Zones & Green Powershoring: Challenges & Opportunities
AUTHORS:
Helson Braga, Raul Gouvea, Margarida Gutierrez
KEYWORDS:
Export Processing Zones, Brazil, Green Powershoring
JOURNAL NAME:
Modern Economy,
Vol.14 No.10,
October
11,
2023
ABSTRACT: In 2023, Export Processing Zones (EPZs) are playing a very meaningful role
in promoting exports, attracting foreign direct investment, and creating
employment opportunities in more than 150 countries around the globe. EPZs have
been important players in fostering the extraordinary growth and expansion of
the global supply and value-added chains, further integrating the global economy. Brazil is a latecomer in adopting
this tool and strategy of trade and investment promotion and
liberalization. This paper addresses the global EPZ experience and discusses
Brazil’s latest policies and procedures to expand the role of EPZs in Brazil’s
foreign trade policy. This paper introduces the concept of Green Powershoring
stressing the increasing importance of EPZs embracing the UN’s 2030 Sustainable
Development Goals. This paper also addresses Brazil’s unique position in
offering multinational companies moving into
Brazilian EPZs the opportunity to benefit from the country’s clean and
renewable energy matrix and Brazil’s abundant fresh water reserves, another key
resource for manufacturing. Thus offering companies established in Brazilian
EPZs additional ESGs competitive advantages. Thus, Brazilian EPZs are well
positioned to benefit from the green power shoring economy permeating new
trends in global foreign trade and global foreign direct investment.