Increasing numbers of foreign investors are looking toward Brazil as their gateway into the Latin American market. As a result, there has been a dramatic increase in merger and acquisition activity, with more than half of the deals including foreign investors. The sectors involved range from chemicals and petroleum to agribusiness and finance. Brazil's privatisation program has also given outside investment an additional boost.
Trade between the US, however, has deteriorated, with accusations that US import policies are restrictive. Consequently, the US accounts for a steadily decreasing share of Brazil's exports. In 1990 the US share was 25% and is expected to drop to 15% by the year 2000. Therefore, Brazil's exporters are turning more and more to other Latin American countries and to Europe for future increases in sales.