Brazilian government defends changes in the law that limits the purchase of land by foreign companies

Forest Land in Brazil. Photo: Joe Conno.
Forest Land in Brazil. Photo: Joe Conno.

The Brazilian government indicated this Saturday, January 27, 2016, that it shall defend changes in the law that limits the purchase of land in the country by foreign companies.

Minister Armando Monteiro (Development, Industry and Foreign Trade) said that we need to find a way so that the law does not represent a lock to investments. Today, companies from other countries can not acquire more than 25% of the area of ​​a municipality or a hundred exploration modules (equivalent to a maximum of 6,000 hectares).

According to Monteiro, the rule should be relaxed a little, but in a way that prevents companies from other countries to have control over the Brazilian territory. “It is important to distinguish the companies that wants to speculate on land and the ones that want to have control over the strategic resources of our country. In this sense, the legislation has to be strict.”

In the case of companies that are in Brazil and whose investments depend on the acquisition of land, the purchase should be released, according to the minister.

Monteiro defended the change after a meeting held in Santiago, Chile, with President Dilma Rousseff and Secretary-General of CMPC, Gonzalo García Balmaceda.

The Chilean group CMPC owns Celulose Riograndense and concluded in 2015 an investment of US $ 2.5 billion in Guaiba, Rio Grande do Sul. Balmaceda said that despite the crisis in Brazil, Rio Grande do Sul still has room for another cellulose plant. CMPC needs land for its eucalyptus plantations, the main raw material for cellulose.

Also according to the executive, the Brazilian downturn does not impact so strongly in the company’s business because almost all the pulp produced in the country is exported. In Brazil, only tissue paper (used in wipes and toilet paper) is sold.

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Joe Cloud
Dutch, American, Brazilian... lived there for 5 years and owns property in Brazil. Out of the country for a few years now and would like to go back, however current circumstances tell me it's not the right time.