Medina Osorio Advogados | View firm profile
Spanish trade and investments in Brazil have grown significantly, solidifying Spain’s position as a major foreign investor in the country. In 2022, Spain ranked fourth among foreign direct investment (FDI) contributors to Brazil, with an FDI stock of approximately US$52.3 billion. Spanish investments in Brazil span multiple sectors, including infrastructure, energy, and financial services, with notable examples such as Banco Santander’s extensive branch network expansion and investments in renewable energy projects like the Marlim Azul gas power plant and the Ribeirão Gonçalves solar energy complex.
The close economic ties between Spain and Brazil are also evident in trade relations. Spain has become one of Brazil’s most important European trading partners. In 2023, bilateral trade reached US$11.8 billion, with Brazilian exports to Spain concentrated in commodities like crude petroleum, soy, and corn. Spanish imports from Brazil are highly reliant on oil, which accounted for 40.6% of the total imports in 2023, largely due to the increased demand caused by the disruption of Russian oil supplies following the conflict in Ukraine. Other products such as sugar and soy derivatives also saw significant growth during this period.
Brazil’s export basket to Spain, while focused on commodities, has shown resilience and potential for diversification. The conclusion of the Mercosur-EU trade agreement could further enhance Brazil’s access to the European market, particularly in agriculture, providing opportunities for growth in other sectors. However, challenges remain. Brazil must navigate evolving regulatory frameworks such as the European Union’s new deforestation law (EUDR), which will restrict imports from deforested areas, potentially affecting Brazilian exports of soy, beef, and other agricultural products.
In terms of investment projects, Spanish companies have played a pivotal role in Brazil’s energy and infrastructure development. Repsol, a key player in the energy sector, has engaged in multi-billion-dollar investments in Brazil’s offshore gas fields, while Neoenergia, another Spanish company, has established itself as a leader in renewable energy. These projects are crucial for Brazil’s energy transition and infrastructure expansion, further reinforcing Spain’s role as a strategic investor in Brazil.
Beyond traditional industries, the Brazilian government has emphasized its commitment to innovation and regulatory modernization, launching initiatives to foster a more favorable environment for foreign investors. Recent discussions between Brazilian and Spanish officials have highlighted the potential for increased collaboration, particularly in areas like renewable energy, digital transformation, and infrastructure development . As both countries explore these synergies, the framework for Spanish investments in Brazil is set to strengthen further, benefiting from shared interests and strategic partnerships.
Fábio Medina Osório, the founding partner of Medina Osório Advogados and former Attorney General of Brazil, is a specialist in regulatory law and corporate compliance. He holds a Ph.D. in administrative law from Complutense University of Madrid and has been actively involved in organizing events alongside key financial institutions and telecom giants to discuss regulatory trends, infrastructure, and risk management strategies for companies looking to execute large-scale infrastructure projects or investments in Brazil. His expertise and leadership are essential for navigating Brazil’s complex regulatory landscape.