This review of Brazil's trade policy focuses on the manufacturing industry and its impact on industrial efficiency and manufactured export growth. It includes discussion of the Brazilian experience with policies to promote and regulate the development and acquisition of industrial technology and their impact on output and exports. The report is organized in three separate parts: (i) background on industrial development; (ii) a review of trade policies, concentrating on a quantification of the relative incentives for production oriented toward the domestic market and for exports; and (iii) a review of technology policy, including development of human resources, basic research and development, industrial technology, and technology transfer. Three case studies exemplify the main types of technological transfer. The report does not attempt to elaborate all possible policy implications but to present the main information and analytical tools to be considered in the preparation and evaluation of policy alternatives.