This recent trend of the FDI into the Brazilian pulp and paper sector is probably connected to the general international trend for substituting long for short-fiber pulp that has been observed in the pulp industry. The international producers are searching for new mixtures of the two fibers aiming to increase the content of short-fiber pulp, which is the cheapest one. Consequently a strong increase in the international demand for short-fiber pulp is expected2 . This trend implies that Brazil has become the preferential destination for the big pulp and paper TNCs investments, because this a water and land resources abundant country.
