Brazil in the Age of Electronic Commerce

E-commerce is growing rapidly in Brazil, led by information-intensive and transaction-intensive sectors such as finance, manufacturing, and retail/wholesale. However, Brazil's highly uneven income distribution is a major barrier for B2C diffusion. Government policies have emphasized promotional or enabling initiatives such as e-procurement, tax filings, and providing Internet access to social institutions. E-commerce legislation is just now being developed, and decisions on taxation are being negotiated in the context of international agreements. E-commerce raises issues for Brazil in terms of its relationship to the global economy. Although most online purchases involve imported goods, e-commerce also offers opportunities to participate in international value chains.