Low productivity and fiscal situation are the challenges for economic growth

Former Finance Minister Maílson da Nóbrega, economist and partner at Tendências Consultoria, stated that there are two challenges to economic growth: low productivity and the unsustainable fiscal situation. “Even faced with this scenario, the country is prepared to face this fiscal crisis, in order to navigate, survive and create conditions for its resurgence, as it has strong institutions and a solid and well-regulated financial system”, said the speaker who addressed the topic Limitations for the country's growth, during the 4th Brazilian Congress of Agribusiness Law (CBDA), which is being held this Tuesday, March 19th. The hybrid event can be followed directly on the official website.

In relation to low productivity, Nóbrega assessed that the tax reform, whose basic principles were preserved, such as single legislation throughout the national territory, exemption from the integration of exports and tax immunity on investments, can contribute to solving this challenge.

During the opening ceremony of the Congress, promoted by the Brazilian Institute of Agribusiness Law (IBDA), Renato Buranello, president of IBDA, emphasized that the judicial system plays a preponderant role for agriculture and is critical to economic development. In his view, the protection of contractual bonds has demonstrated great relevance, as an essential requirement for business security and more investments.

“We need to design institutions coherent not only with the thesis of shared wealth, but also linked to the concept of economic freedom.” He also commented on the topics being debated in Congress, which include two issues that envision the future, such as the regulation of Fiagro, capital markets and the bioeconomy, and two others that are on an older agenda, such as threats to property rights, insecurity of contracts and credit uncertainties.

For Guilherme Mendes Resende, Special Advisor to the Presidency of the Federal Supreme Court (STF), investments depend on the proper functioning of public authorities, both from the legislative point of view, when preparing appropriate laws for the country, and by the executive, when implementing and monitoring initiatives, and by the judiciary, by bringing legal certainty, for compliance with laws and contracts. For him, dialogue between the powers and the assessment of the cost-benefits of public policy choices are necessary. He also commented that legal instruments can guarantee the development of agriculture, with environmental preservation.

João Pedro Nascimento, President of the Securities and Exchange Commission (CVM); highlighted the efforts adopted by the institution to increase the representation of agriculture within the capital market due to the relevance of the sector to the country's economy, such as the final edition of the Fiagro regulations, increasing the shelf of products available for investments in the markets of capital for the real economy focused on agriculture.

Regarding the State of São Paulo, Guilherme Piai, Secretary of Agriculture and Supply of the State of São Paulo, commented on work priorities, such as legal security, rural insurance and CAR (Rural Environmental Registry). He announced that the department is preparing important announcements for the month of April, such as making R$90 million available in rural insurance in 2024 and two Fiagros, aimed at irrigation and storage. The secretariat intends to expand irrigation in the State, which currently has 6% of irrigated area.

Following Piai's optimistic tone, Guilherme Campos Jr., Superintendent of the Ministry of Agriculture and Livestock in the State of São Paulo, stated that Brazil is a protagonist, innovative and competes to win, which is why it is currently the leader in production and exports in several crops. and creations. “Our agriculture has been growing, generating wealth and attracting more and more investments”, he pointed out.

Also participating in the opening ceremony were Arnaldo Jardim, Federal Deputy, Vice-President of the Parliamentary Front for Agriculture FPA; Tereza Cristina, Senator of the Republic; and presidents Silvia Massruhá (Embrapa), Luiz Carlos Corrêa Carvalho (Brazilian Agribusiness Association – ABAG) and Sérgio Bortolozzo (Brazilian Rural Society – SRB).