Brazilian industry leaders are complaining that the strong growth of the Brazilian economy and the Super Real are acting as a disincentive to Brazilian investment. Brazilian companies are turning instead to less expensive options like Argentina, Paraguay, and Uruguay.
With the Super Real, manufacturing in Brazil has become very expensive and Mercosur partners offer comparative advantages: Paraguay, cheap energy; Argentina, natural gas at competitive prices and Uruguay qualified labor. On top of this, the total cost of taxes is significantly higher in Brazil compared to other Mercosur members.
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