International trade agency invests 3% of advertising abroad

Only 3% of the budget allocated by the Brazilian Export and Investment Promotion Agency (ApexBrasil) for its advertising in 2023 was allocated to activities abroad. During the first year of President Luiz Inácio Lula da Silva’s (PT) current term, the institution invested a total of R$24,895,503.54 in media initiatives. Of this total amount, only R$746,865.10 was directed to the international plan, with an exclusive focus on the European market. The values ​​refer to the period up to November 16, 2023, the latest data available, and raise contradictions.

The data were obtained exclusively by People’s Gazette, which activated the government through the Access to Information Law (LAI), a tool that aims to provide clarifications to any citizen. “There was no investment in media aimed at specific countries in 2023. International actions specifically focused on the European market and involved 3% of the amounts contracted and executed in 2023”, informed ApexBrasil. In addition to the headquarters in Brazil, the organization has nine offices in seven countries.

The agency added that the priority is to provide broad knowledge of the solutions they maintain to “allow Brazilian entrepreneurs access to the international market and foreign investments”. The responses sent to the newspaper add that no price assessments or bids were made to contract new advertising and publicity services last year. The impossibility of detailing vehicles and amounts paid was justified by the confidentiality clause in the contracts.

Selected from the competition in February 2019, Nova/SB Comunicação is the only one bidding for ApexBrasil’s advertising services. The agency explained that the media plans reflect “the publicity needs to fulfill the mission of promoting exports, internationalization of companies and direct foreign investments”. During the previous five years, ApexBrasil relied on the services of F/Nazca, a contract that ended in February 2019.

Advertising credits record exports to the current government

Sônia Filgueiras Lima, marketing coordinator at ApexBrasil, acknowledged that the agency carries out “actions that aim to promote exports and value Brazilian products and services abroad, targeting markets with import potential”. But she highlighted that these initiatives occur mainly through the presence of Brazilian products at international fairs and events, which are a “significant part of the organization’s efforts as a whole”.

“ApexBrasil works to coordinate national public and private actors in encouraging exports and foreign investment. Therefore, the agency’s communication is aimed at fulfilling its mission of attracting the public interested in expanding its operations in both segments, at the same time as disseminating its mission to the Brazilian population, especially sectors with export potential”, he argued. she.

The focus of official advertising, however, was on exposing the largest possible audience and highlighted the increase in the country’s exports in recent quarters, even in the face of the slowdown in global trade, seen as a special achievement for the country. In October, the Brazilian trade balance recorded an annual surplus of US$80 billion, pointing to a historic record in 2023.

Although this is the first year of the current PT administration and the positive results are the result of agreements, strategies and initiatives from previous years, ApexBrasil made a point of associating the robust numbers of exporters with their recent actions. Furthermore, in other initiatives, the organization suggests that President Lula’s frequent international trips contributed to boosting foreign sales.

Experts criticize the focus of advertising on the domestic market

Eduardo Galvão, professor of Institutional Relations at Ibmec Brasília and director of the BCW Brasil consultancy, considers the discussion as complex as to whether investment in advertising within the country of an export promotion agency could be seen as nonsense. “It is essential for an agency like ApexBrasil to promote Brazilian brands and products on the international market. On the other hand, there may be strategic justifications for investing in domestic advertising, such as strengthening national brand recognition and supporting the domestic economy, which may indirectly increase export potential,” he argued.

In any case, Galvão considers it crucial to know in detail how advertising investments are distributed and what specific objectives they seek to understand the logic behind these decisions. “It is even possible that the agency is seeking a balance between promoting exports and strengthening national companies and brands, which could justify these investments”, suggests the expert.

For economist Carlo Barbieri, president of the Oxford Group consultancy, based in Florida, United States, ApexBrasil performs two clear and essential functions: facilitating the export process for Brazilian companies and attracting foreign investors interested in investing in Brazil. However, he highlighted that the preparation of companies for export and the motivation for them to move in this direction are also clear responsibilities of Sebrae and not the agency.

Barbieri added that while he is not familiar with the specific content of the advertising in question, in principle it does not appear to align with ApexBrasil’s fundamental objectives. “I suggest, therefore, that disclosure should be directed to export destinations or potential foreign investors, providing an approach consistent with the agency’s own goals”, he highlighted.

A former director of ApexBrasil, who chose to remain anonymous, disagrees and argues that the agency’s main emphasis should be promoting the country abroad. He points out as a mistake the reorientation of focus in recent years, instead of expanding the agency’s presence internationally. Furthermore, he criticizes partnerships established with industry federations, instead of a more significant investment in supporting small and medium-sized companies, highlighting the importance of valuing the body’s origins in Sebrae. For the executive, the mistake of directing advertising to the domestic public, adopted during the administration of former president Jair Bolsonaro (PL), remains in the agency’s current strategic plan during the PT government, which, despite the new Apex board, does not indicates any prospect of change.

Change in statute guaranteed positions for Apex president and allies

Throughout 2023, particularly in the first half of the year, the president of ApexBrasil, former senator Jorge Viana (PT-AC), was the target of several criticisms from the press and opposition parliamentarians, starting with his inability to speak English, as requested the agency’s statute. At his request, the agency’s board eliminated at the end of March the rule that required fluency in English for senior management. The situation caused the Federal Court in the Federal District to annul Viana’s appointment by means of an injunction, following a request made by Senator Flávio Bolsonaro (PL-RJ). The court decision was later reversed and Viana returned to his post permanently.

During his first year as president of ApexBrasil, Jorge Viana sparked controversy when he criticized the alleged environmental fragility of agribusiness, which represents half of Brazilian exports, in a lecture during an event in China, the main importer of rural products from Brazil. In interviews, he declared that his management focused on diversifying the origins and destinations of exports, attracting investment and promoting “gender equity”. To this end, he mentioned projects such as Exporta Mais Brasil, Exporta Mais Amazônia (aimed at his region) and the Women and International Business Program, which will remain priorities in 2024.

The exemption from fluency in English was not the only internal change brought by Viana. Others were taken to allow political appointees to take over directorships previously reserved only for career employees, paving the way for hiring allies. The newspaper The State of S. Paulo revealed that the agency’s president employed three people from his political group – all with no experience in foreign trade and with salaries of R$17,810 – to take care of the promotion of Brazilian products abroad. ApexBrasil’s regulations require advisors to have a postgraduate degree or a bachelor’s degree with at least three years’ experience in the agency’s areas of activity.

In addition to Viana, ApexBrasil’s board of directors is also made up of Floriano Pesaro, a former federal deputy linked to vice-president Geraldo Alckmin (PSB), and Ana Paula Repezza, a professional in the field of international business. The president’s salary is R$65,500 and the directors’ salary is R$56,600. Benefits for them were expanded, including two monthly plane tickets for directors who live outside Brasília and the possibility of joining the ApexPrev private pension plan.