We are living through a tense geopolitical scenario: prolonged wars, reconfiguration of economic alliances, and technological disputes between superpowers. But while all of this seems distant, the collateral effects are already knocking on the doors of Brazilian companies, whether in freight prices, access to international credit, or the availability of strategic inputs.
In this article, we will discuss how clashes between powers such as the US and China, and global economic fragmentation, have directly affected supply chains and strategic decisions in Brazil. If you want to navigate this new global landscape more clearly, subscribe to BRING's newsletter and receive our weekly reports, analyses, and international business opportunities directly to your email.
Supply chains under pressure
The closure of the Red Sea due to conflicts in Yemen, sanctions against Russia, and the conflict in Gaza have increased the cost of logistics routes and amplified the risk of disruption in global supply chains. According to UNCTAD (2024), maritime transport costs have increased by up to 400% on certain routes since 2020, and the average international delivery time has increased by 25% compared to the pre-pandemic period.
Brazilian companies that depend on imported inputs from Asia, such as electronics, fertilizers, and automotive parts, are having to restructure suppliers, inventories, and even distribution networks. A study by the CNI (National Confederation of Industry) revealed that 611,300 Brazilian industries reported logistical difficulties linked to the geopolitical scenario in 2023.
Investments frozen or redirected
Even more serious is when these geopolitical tensions impact the risk perception of international funds. The world is moving towards fragmentation into blocs, and with it, money is also choosing sides.
The US and Europe have begun to prioritize "trustworthy" investments, those that are geographically aligned and close to the country. Brazil, even though it is outside the major conflicts, needs to position itself more clearly. Capital is not only driven by efficiency, but also by institutional predictability and strategic positioning.
With the advancement of US industrial policy and the European Union's reshoring agenda, many investments are being redirected, and as a result, Brazil is directly impacted by changes in the risk appetite of international funds and banks.
According to the OECD, 2023 marked an 8% drop in global Foreign Direct Investment (FDI) flows, with a sharp decline in Latin America. However, those who are strategically positioned, with strong compliance, ESG certifications, and open channels with governments, have a better chance of attracting capital from resilient markets such as Canada, the United Arab Emirates, and Japan.
Commercial diplomacy as a competitive differentiator
In a fragmented world, companies that rely solely on market logic tend to lose ground. Solid institutional relationships with embassies, multilateral organizations, and economic blocs have become as strategic as the product itself.
A clear example is the growing demand for diplomatic intelligence in negotiations with Arab and African countries. According to Itamaraty (the Brazilian Ministry of Foreign Affairs), there has been a 371,300 increase in requests for consular support for Brazilian companies in sensitive commercial operations since 2022. The export landscape is no longer just economic, it's political.
BRING as a partner for companies in unstable environments.
BRING Consulting operates precisely where the market meets geopolitics. We support companies and governments in the strategic analysis of international scenarios, build alternative export routes, and design relationship agendas with the most promising markets, even in unstable contexts.
Using our BRIDGE methodology, we have already structured internationalization and investment attraction projects for Brazilian players in critical sectors such as energy, food, technology, and agribusiness. Our clients benefit from market intelligence connected with chambers of commerce, investment funds, and high-level diplomatic networking.
Business without borders starts with a vision that goes beyond the obvious!
It's time for Brazilian companies to stop merely reacting to the effects of geopolitics and start acting strategically. The world is increasingly fragmented, and at the same time, more interdependent. Knowing where to step, who to connect with, and where to expand can be the difference between growth and stagnation.
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