Public Affairs - Monthly Newsletter | April 2018

Monthly
Newsletter
Burson-Marsteller
April
Public Affairs
2018

02
Gov Affairs in focus | Intelligence of Information: The Role of
Government Relations Professional
03
Politics | Presidential candidates: internal disputes may weaken
Alckmin
04
Politics | Lula's arrest: how the denial of habeas corpus in the
STF affects PT's political strategy and makes the electoral
scenario even more obscure
05
Politics | House of Representatives in evidence: thematic
committees in function of the party window
08 Politics | Access to information X data leakage
09
International Relations | Trade war between the United States
and China: what is the impact on Latin America?
10
International Relations | Going global? The importance of
internationalizing
11 Economic Data
12 Events Calendar
Burson-Marsteller l Public Affairs
An intersecting agency that, through the understanding of the political environment, assists
clients of different sectors in the protection and/or promotion of their businesses, managing
their influence in a sustainable way.
The Burson-Marsteller standard is responsible for the development of highly customized
projects, according to the needs of each client, developing strategies for various economic
sectors, especially those heavily regulated by the government.
Contributors to this edition
Allana
Rodrigues
Isabela
Girotto
Luciana
Lemgruber
Fernanda
Xavier
Nara
Andrade
Isabela
Macêdo
Index
Year 2 | Nº 04 | April
Anna
Paula Losi
Bruno
Traversin

Access to information is increasingly broad and dynamic, both by the plurality of means of
dissemination and by the facilitation of access. This phenomenon is even more evident when we
work with government information. For some time now, the websites of the House of
Representatives and the Federal Senate have provided all the necessary information to follow up
on the discussions on the ongoing of bills, public hearings are transmitted live, not only by the
TVs and Radios of the legislative houses, but also by means of websites and social networks. The
Executive Branch is not yet as efficient in publicizing its information, but, nonetheless, the
normative acts that govern our legal system are available electronically, and it is also possible to
monitor agendas and other information through the main channels: sites, facebook and twitter.
Because of the ease of access to information, the following question arises: How can the
government relations professional excel in the use of information that is available to anyone who
wants to access it?
First of all, it is important to emphasize that availability is not linked to easy understanding, and
that, even if it is understandable, access is often restricted to the outcome of the process,
making it impossible to identify the method itself and how it got to the final point.
The government relations professional must be able to access the information, but mainly
analyze this information and identify the opportunities and risks for the sector in which it
operates and, in doing so, propose actions and solutions that can build public policies more
suitable for the reality of the country.
However, it is also essential that the government relations professional be able to monitor and
filter what is a priority, because too much information can paralyze him or make him waste time
on what is not really important. And for this, you can use various means such as spreadsheets,
systems, pushs, and each person has to find the one that best suits their personal and
professional reality.
In the information age it is not enough to have the information, it is necessary to know how to
systematize, prioritize and act from the universe of available data. This way, it is possibçe to
follow the best strategic path in search of the construction of effective and efficient public
policies that positively impact not only the sector defended, but also society as a whole.
Anna Paula Losi
Government Affairs in focus
Intelligence of Information: The Role
of Government Relations Professional
02

On March 20, the Brazilian Social Democrat Party (PSDB) made official the pre-candidacy of the
former governor of São Paulo, Geraldo Alckmin, to the Presidency of the Republic. Despite being
the only name in the party's primaries, Alckmin still faces resistance from some of his fellow party
members and may have challenges to keep his name as the party's official candidate until August
15, the Superior Electoral Court (TSE) deadline for nominations.
Alckmin has in his favor the fact he is an experienced manager, having begun his political career
at the age of 19, as a city councilman of Pindamonhangaba, in the interior of São Paulo, the
same city of which he was mayor in 1977. He took over the city hall while still attending the last
year of medicine at the Faculty of Taubaté. In the 80s, he was one of the dissidents from the
Brazilian Democratic Movement Party (PMDB) who founded the PSDB and has since been among
the party's most influential names.
In addition, this is not the first presidential race for the former governor, who disputed the
position in 2006 against the then president, Luís Inácio Lula da Silva, of the Workers’ Party (PT).
At that time, the PSDB already faced internal divisions, when the party was divided bewtween
supporting Alckmin's candidacy or that of Senator José Serra. Serra gave up the bid and Alckmin
competed, losing in the second round with 39.17% of the valid votes, against 60.83% of Lula’s.
In 2018, both opponents still figure in the electoral landscape. However, the possibility of a
second-round dispute between Lula and Alckmin such as in 2006 is unlikely. The PT’s leader is
imprisoned and will probably have his candidacy barred by the TSE and Alckmin has not had
significant results in the most recent polls.
Far from the polarizations, the social-democrat disputes space to consolidate himself as the
central candidate in the next elections. It is likely that Alckmin will defend investments in social
programs, privatizations, and tax reform that favors the poor. In terms of alliances, President
Michel Temer would have already approached the former governor of São Paulo for a possible
joint plaque, where former Finance Minister Henrique Meirelles could run as Alckmin's vice-
president. The alliance could cause more internal problems to Alckmin, since Temer’s party, the
Brazilian Democrat Movement (MDB) has named Paulo Skaf as pre-candidate for governor of São
Paulo, the same post for which Alckmin's co-party member, João Dória, will also seek to win. The
state election has already been conflicting for Alckmin, as his vice-governor, Márcio França (PSB)
also plans to run for office against Doria.
Even if Alckmin is able to reconcile state elections with his interests of running for the presidency
on a plate that eliminates one of his center's competitors, the former governor will still have to
compete with Marina Silva (REDE), Joaquim Barbosa (Brazilian Socialist Party) and Rodrigo Maia
(Democrats). The latter has almost no expression in the polls, but is a key player to win the
support of Democrats, the Progressive Party and Solidarity, which have already expressed
support for Maia's candidacy.
Politcs
Presidential candidates: internal disputes
may weaken Alckmin
03

The conclusion of the judgment of the Federal Supreme Court (STF), held on April 4th, further
aggravated the dispute and made the scenario confusing for the 2018 elections. With the refusal
to the habeas corpus requested by the defense of former president Luiz Inácio Lula da Silva, and
with his imprisonment executed, the leader, favorite in much of the researchs for Presidency of
the Republic, ends up "losing" his position. However, your candiature is not yet ruled out. The
Superior Electoral Court (TSE) must decide on the continuity of Lula's candidacy in accordance
with the Ficha Limpa Law, which makes condemned people in the second instance ineligible. The
deadline for the TSE’s decision is September 17th.
Publicly, the Workers' Party (PT) states that it does not have Plan B for the elections. The
argument used by the legend is that "to launch a name other than his (Lula) would be to play
the game of those who worked for the 'coup process'." However, continuing his name as a
candidate even with the arrest is a way of guaranteeing votes for the name that will replace him,
as a sort of strategy of transfer of votes. Out of the spotlights, the names of former Sao Paulo
mayor Fernando Haddad and former governor of Bahia, Jaques Wagner, are quoted for the
dispute, but none of the alternatives exceed 3% of the votes intentions in the surveys already
released.
According to a study conducted by the professor of political science at UFMG, Leonardo Avritizer,
the convictions did not significantly reduce Lula's vote intentions and the politician's rejection fell
during the last semester, during which time the case was already in the TRF-4, wich goes against
the tendencies expected. USP professor, José Álvaro Moisés, points out that the PT will continue
with the rhetoric that the former president is "the victim of an elite conspiracy", leaving the
situation ambiguous. It is not clear yet who will recieve the candidate's votes, depending on the
voter's adherence to such speech.
To the academics, with regard to the legislative power, it is necessary to remember that in the
2014 elections the PT participated in a broad coalition, which ended up corroborating to the
decrease of the party bench in Congress. Therefore, two issues will be central to legislative
elections: how broad the coalition will be in 2018 and whether there will be a candidate who can
keep voting at the level of voter identification with the PT.
The latest poll released by the Datafolha Institute, which analyzes 12 possible scenarios, shows that if PT
pitches Fernando Haddad or José Álvaro Moisés, the dispute will focus on the PSL candidate Jair
Bolsonaro, with 17% of the votes intentions, and Marina Silva, of Rede, with 15% of intentions. The other
names were little affected by the former president's arrest, candidates such as Geraldo Alckmin (PSDB)
and Ciro Gomes (PDT) remain with intent on votes close to the previous polls.
Politcs
Lula's arrest: how the denial of habeas corpus
in the STF affects PT's political strategy and
makes the electoral scenario even more obscure
04
Faced with so many conflicting scenarios, the Alckmin will have to strive to reconcile the PSDB in
São Paulo and nationally. In addition, he will need to evaluate alliances in the center to lessen
the dispute with other names, which escape the main polarizations in the possible scenarios
presented so far. The effort to consolidate his candidacy in the political arena may be a drag on
his image as an effective manager with voters.
Isabela Macêdo

Is possible to conclude that the 2018 election continues without many definitions, and the
consequences of Lula's non-participation associated with the political strategy of the party can
only be scaled in the near future. In accordance with the electoral calendar of the 2018 elections,
parties and coalitions can register their candidates by August 15 and the next day, the campaign
will be allowed to begin, with distribution of material and free advertisement via the Internet.
Electoral propaganda on radio and television will begin on August 31. Brazil's electoral paths
remain undefined, and depend directly on the decisions of three central actors: TSE, PT and the
convict Luiz Inácio Lula da Silva.
Nara Andrade e Bruno Traversin
Politics
05
The month of February marked the beginning of this year's legislative work, and while the
Federal Senate committees were already discussing bills, the House of Representatives was
limited only to the Plenary discussions. This delay was motivated by the impasse that occurred in
the distribution of committees among the parties, which, due to the “janela partidária” (party
window¹, in a literally translation), mainly, preferred to wait for the final number of members of
their seats.
The party window provided for the exchange of parties of about 90 federal representatives,
without losing their term. Data presented by the House of Representatives indicate that the
Democrats (DEM) and the Progressive Party (PP) benefited the most, receiving respectively 12
and 8 new parliamentarians in their seats; other parties such as the Brazilian Democratic
Movement (MDB) and the Brazilian Socialist Party (PSB), however, have seen their benches
decline. These numbers are not yet final, as there may still be changes that were not reported to
the House. In addition to the size of the seats, the change in the number of congressmen brings,
also, reflections on the number of committees to which the political blocks / parties have the
right to preside.
Only one committee is still without command, that of Agriculture, Livestock, Supply and Rural
Development (CAPADR). Representative Dilceu Sperafico (PP/PR) had been elected president,
however, recently licensed to take over the head of the Civil House of his state, Paraná. The
expectation is that Representative Evair Vieira de Melo (PP/ES), also a member of the PP and
current vice-president of the committee, be elected president, whose election is scheduled for
May 9. Meanwhile, he already chairs the committee, in his present position.
Now, with the committees up and running, parliamentarians are trying to speed up voting on
proposals, as legislative work is expected to slow down soon because of the World Cup in June
and the October elections.
House of Representatives in evidence:
thematic committees in function of the
party window
Politics

Some themes are more visible in the National Congress, such as rare diseases, which was
recently discussed at a public hearing; the bill amending the Bidding Law; and especially data
protection, which returned to the discussion after what happened with the social network
Facebook in the United States.
In the Plenary, the moods are focused on deliberation of bills like the one of regulation of the
Lobby and what deals with the Positive Register; the pension reform, a subject strongly defended
by Michel Temer, was left aside. Also, the clash between Rodrigo Maia's pre-candidacy to the
Presidency of the Republic, and the possible electoral race of Temer helps to leave the
atmosphere increasingly tense, with both looking for electoral and political support.
¹The party window was established with the aim of enabling parliamentarians to exchange party without losing their terms, because, in
Brazilian legislation, terms belong to the parties, not to the individuals.
Fernanda Xavier
Politics
06
Presidents of the House's standing committees
Committee on the Defense of the
Rights of the Elderly People
(CIDOSO)
President: Rep. Júlia Marinho (PSC/PA)
Committee on Science and
Technology, Communication and
Informatics(CCTCI)
President: Rep. Goulart (PSD/SP)
Committee on Constitution and
Justice and Citizenship (CCJC)
President: Rep. Daniel Vilela (MDB/GO)
Committee on Culture (CCULT)
President: Rep. Raquel Muniz
(PSD/MG)
Committee on Consumer
Protection (CDC)
President: Rep. José Stédile (PSB/RS)
Committee on the Defense of
Women's Rights (CMULHER)
President: Rep. Ana Perugini (PT/SP)
Committee on Agriculture,
Livestock, Food Supply and Rural
Development (CAPADR)
VAGO
Committee on the Protection of the
Rights of Persons with Disabilities
(CPD)
President: Rep. Mara Gabrilli (PSDB/SP)
Committee on Labor, Administration
and Public Service (CTASP)
President: Rep. Ronaldo Nogueira
(PTB/RS)
Committee on Social Security and
Family (CSSF)
President: Rep. Juscelino Filho (DEM/MA)

07
Politics
Committee on Urban
Development (CDU)
President: Rep. Margarida Salomão
(PT/MG)
Committee on Human Rights and
Minorities (CDH)
President: Rep. Luiz Couto (PT/PB)
Committee on Education (CE)
President: Rep. Danilo Cabral
(PSB/PE)
Committee on Economic
Development, Industry, Trade and
Services (CDEICS)
President: Rep. Daniel Almeida
(PCdoB/BA)
Committee on National Integration,
Regional Development and the
Amazon(CINDRA)
President: Rep. Marinha Raupp (MDB/RO)
Committee on Mines and Energy
(CME)
President: Rep. Marcelo Squassoni
(PRB/SP)
Committee on Transport (CVT)
President: Rep. Domingos Sávio
(PSDB/MG)
Committee on Tourism (CTUR)
President: Rep. Rafael Motta (PSB/RN)
Committee on Finance and Taxation
(CFT)
President: Rep. Renato Molling (PP/RS)
Committee on Financial Control
(CFFC)
President: Rep. Roberto de Lucena
(PODE/SP)
Committee on Public Security and
Combating Organized Crime
(CSPCCO)
President: Rep. Laerte Bessa (PR/DF)
Committee on Foreign Relations and
National Defense (CREDN)
President: Rep. Nilson Pinto (PSDB/PA)
Committee on Participative
Legislation (CLP)
President: Rep. Pompeo de Mattos
(PDT/RS)
Committee on Environment and
Sustainable Development (CMADS)
President: Rep. Leonardo Monteiro
(PT/MG)
Committee on Sports (CESPO)
President: Rep. Alexandre Valle (PR/RJ)

With the technological advance, they also advance the culture, the resources and even, the
crimes. Immersed in a scenario of changes, personal data are, at present, a great source of
wealth, and can be the differential in the success of companies. Large conglomerates invest
human and fiscal resources in obtaining more and more information about each person in the
population, both to know their clients better and to help them in decision making.
Access to information is a constituent part of our new culture and in vain would be any effort in
the opposite direction. At the same time, you can not leave anyone free to get information and
use them as you wish. The point is the norms and limits that such access should have.
Recently, the scandal involving one of the world's largest technology companies, Facebook, has
further strengthened the debate. In Brazil it was no different, the event with the American
company generated a series of discussions, mainly in the legislative, bringing again to the
discussion agenda, the projects that regulate access to personal data.
At the same time, the Chamber of Representatives is negotiating a legislative proposal that
changes the rule of the current negative register for the positive register, in which all Brazilians
would automatically be included in a database. The norm consists in the generation of individual
credit scores to the population by credit bureaus, based on the inclusion of credit information.
With the huge spreading of data obtained by the social network, consumer protection agencies
created great pressure on the rapporteur of the project that creates the Positive Register,
Representative Walter Ihoshi (PSD-SP), to include tougher answers front to the possibility of
misuse of information.
The main intention of the positive register is, therefore, the easiest credit, mainly by the
population with lower income. Why then do the debates mix up causing so much discomfort?
The case of Facebook has inserted a more tactile aspect to the possibility of information leakage,
being a very important point to be evaluated.
If the possibility of better credit assessment of Brazilians is undoubtedly very important, on the
other hand, the need to punish those who, due to the facilitation of access, leak the information,
is essential too. In other words, it is necessary to find a balance point.
The Positive Register Project has been in the Plenary agenda for a month, and while the
government wants to vote at all costs, the opposition, helped by the pressure of the cabinet, has
blocked the vote as it can, leaving the all agenda intact for the whole period. Under the
argument that the new database invades the privacy of Brazilians, the registries remain with
exclusive access to information of the population.
With the subject in the newspapers, access to information is one of the busiest agendas today.
The need for modernization meets the urgent punishment of those who misuse information. The
break-even point is not easy and becomes even more difficult when leveraged against the
political and business interests involved.
Luciana Lemgruber
Politics
08
Access to information X data leakage

09
Trade war between the United States and
China: what is the impact on Latin
America?
Since the election campaign, Donald Trump has been spreading controversial and divisive ideas.
In this sense, the current president of the United States, who during the electoral period
threatened to increase the tariff on all Chinese products by up to 30%, established the practice
of the America First policy in order to strengthen the American industry to the detriment of
imported products.
From this context, in the past month, Trump, in order to combat products originating in China, at
the first moment, imposed surcharges on steel and aluminum imported from several countries,
affecting different markets, among them Brazil, which, according to the Brazilian Steel Institute
and the World Steel Association, has the United States, as the main importer of Brazilian steel,
totaling exports of R $ 8.5 billion.
In this scenario, Donald Trump, seeing the impact, a priori, not aimed at other nations, still in
March, temporarily freed some countries from paying the surcharge. In Latin America, Brazil,
Argentina and Mexico (as a member of the North American Free Trade Agreement), for example,
were removed from the list of mandatory tariff payment.
Subsequently, in order to negatively impact the Chinese economy, the President of the United
States announced $ 50 billion tariffs on 1,300 Chinese products, alleging infringement of
intellectual property rights. As retaliation for American measures, the Chinese government
released a list of 128 US products, such as soybeans, corn, orange juice, meat and chemicals,
which it intends to overcharge.
Given this context, economies such as Brazil, Argentina and Paraguay may benefit, because they
are countries with high competitiveness in agricultural products. As for soybeans, for example,
China is the largest importer in Brazil and, later, the United States. In this sense, if applied to the
Chinese tariff, Brazilian soy would be a natural substitute for the North American.
In addition to soybeans, Brazil would also benefit from the application of the surcharge on other
products such as US ethanol and orange juice. However, it should be noted that, despite the list
of disclosed products, the imposition of Chinese tariffs is still being negotiated and there is no
decision on their applications as well as deadlines.
The benefits to Latin America, generally a priori, seem interesting given the opening of
commercial opportunities, are also questioned while, in a scenario of globalization, given the
global relevance of the two economies (United States and China), the effects of a trade war can
overflow to countries of varying commercial importance. Thus, effects such as rising export costs
and declining international trade can be perceived.
It is also stressed that retaliation by both parties could cause socioeconomic losses in the long
term; go against the global trend of opening markets and will affect the legal security of the
nations involved.
Isabela Girotto
International Relations

International Relations
10
Going global? The importance of
internationalizing
The international economic policy has gained new traits, especially after the crises of 2008 and
2011, and more recently the background of this transformation included a global wave of
neopopulism marked by the Brexit and Donald Trump’s election. In addition, the processes of
economic globalization, notably liberalization, the corporate diaspora and regional integration,
have given way to a new dynamic of economic and commercial relations, less integrated and
more protectionist. In this scenario, in addition to attracting foreign investment, to invest abroad
and to internationalize became even more relevant.
Internationalization is one of the alternatives for increasing competitiveness and market gain in a
scenario of economic instability. Beyond the international framework, based on the more
protectionist economic policy of Trump’s government and the progress of Chinese business, the
Brazilian economic outlook, despite Temer's post-presidency improvement, is still not ideal.
In this way, and as an example of the development of intercapitalist competition promoted by
China, the performance of Brazilian companies in diverse segments and geographic regions is an
effective alternative to open new markets, gain competitive advantage and consequently increase
Brazilian international trade. Competitiveness gains come from a series of benefits listed by the
Brazilian Trade and Investment Promotion Agency (ApexBrasil): increase in brand value (going
global); acquisition of new knowledge and expertise; development of new products and services;
diversification of revenue sources; greater control over distribution channels and sales in the
foreign market.
Despite the tacit understanding that corporate internationalization is beneficial in various
respects, and in spite of intra-organizational constraints, at the national level, regarding the
public incentive environment, there are significant obstacles. The Brazil cost adds to the inherent
difficulties of the process the high tax burden, exchange rate instability, precarious infrastructure,
problems related to logistics, lack of financing lines and institutional fragility.
In order to join the countries whose companies have become global players and add new links to
their value chain in overseas operations, Brazil needs to address and solve problems that are
already associated to the economy in various themes and sectors. It is necessary to adapt, at the
domestic level, to the practices already adopted by other countries to adjust also to the needs
and peculiarities imposed by the international economy.
Allana Rodrigues

Economic Data
11
MONTH DOLAR
IPCA
(accumulated
12 months)
SELIC IBOVESPA
PROJECTION PIB
2018
JUL.2017 3,15 2,71% 9,25% 65.316,30 0,34%
AUG.2017 3,14 2,46% 9,15% 70.727,08 0,39%
SEP.2017 3,17 2,54% 7% 73.626 0,68%
OCT.2017 3,26 3,08% 7% 73.323 0,73%
NOV.2017 3,27 3,08% 7% 71.971 0,73%
DEC. 2017 3,31 2,79% 6,9% 75.996,68 0,98%
JAN. 2018 3,17 3,95% 6,75% 85.329,20 2,66%
MAR.2018 3,33 2,68% 6,50% 82.956,10 2,89%
APR.2018 3,46 * 6,25% 86.127,86 2,75%
* Pending
Source: Boletim Focus/Banco Central

Events Calendar
12
SUN MON TUE WED THU FRI SAT
29 30 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
ANATEL Board of
Directors Meeting
Local: ANATEL
Headquarters
Ordinary Meeting
of the Board of
ANVISA
Local: ANVISA
Headquarters
CONITEC MeetingCONITEC Meeting
ANATEL Board of
Directors Meeting
Local: ANATEL
Headquarters
Ordinary Meeting
of the Board of
ANVISA
Local: ANVISA
Headquarters
Seoul Food and Hotel 2018
Local: Seul, South Korea
SIAL Canada 2018
Local: Montreal, Canadá
2nd Seminar on
Intellectual
Property
Local: Maksoud
Plaza Hotel, São
Paulo/SP
305th Ordinary
Meeting of the
National Health
Council – CNS
Local: Brasília, DF
305th Ordinary
Meeting of the
National Health
Council – CNS
Local: Brasília, DF
QCon São Paulo
Local: São Paulo/SP
Agro Brasília
Local: Brasília/DF
Oncology Based on
Evidence
Local: Faculty of
Health, UnB
Entrepreneurial Capital
Local: Brasília/DF
Holiday - Labor
Day

Events Calendar
13
SUN MON TUE WED THU FRI SAT
20 21 22 23 24 25 26
27 28 29 30 31 1 2
Internal Ordinary
Meeting of the
Board of ANVISA
Local: ANVISA
Headquarters
Joint Seminar
"Protection of
Personal Data“
Local: Chamber of
Deputies, Brasília /
DF
VII Regional Meeting on Computing and Information Systems – ENCOSIS
Tecnomultimídia Infocomm
Panel TELEBRASIL
Hospitalar - the future of health
Local: Expo center North São Paulo
134th Regular
Meeting of the
Board of Directors
of CNS
Local: Brasília/ DF
134th Regular
Meeting of the
Board of Directors
of CNS
Local: Brasília/ DF
3rd Symposium
Fertile Idea - Rare
Diseases ABC
Meeting of the
Sectorial Chamber
of the Cocoa
Productive Chain
Local: Brasília/DF
Bahia Farm Show
Local: Luís Eduardo Magalhães-BA, Brasil
Campus Party BSB 2018
Local: Brasília/DF
Health Business Forum
Local: Bahia, Brazil
Holiday - Corpus
Christi

Public Affairs - Monthly Newsletter | April 2018

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Public Affairs - Monthly Newsletter | April 2018