Q: Under Jair Bolsonaro, Brazil is supposed to be becoming a more open market. Will this happen? What are the main obstacles? And how might geopolitics get in the way?
Mario Mesquita: We believe that the new government will follow the strategy of a gradual opening of the Brazilian economy, focusing on the reduction of subsidies, tax breaks and tariffs that proved to be inefficient, especially those aimed at specific sectors rather than the whole economy. This agenda may start moving only in 2020, together with the simplification of the tax system and after the approval of the pivotal pension reform. The main obstacle will be the resistance of the sectors that benefit from government protection, which have a strong [lobbying presence] in society and Congress.
