Isaura Daniel
São Paulo – Brazilian exports to the countries in the League of Arab States rose 51% in the first ten months of this year, when compared to the same period in 2003, and reached US$ 3.35 billion. The secretary general of the Arab Brazilian Chamber of Commerce (CCAB), Michel Alaby, believes that revenues with shipping to the region should end the year between US$ 3.8 billion and US$ 3.9 billion.
Among the countries collaborating with the increase in Brazilian exports in the period are Algeria, which rose from purchases of US$ 126 million to US$ 287 million, Egypt, which imported US$ 522 million, against US$ 388 million in the same period last year, Morocco, which rose from US$ 181 million to US$ 279 million, and the United Arab Emirates, from US$ 458 million to US$ 609 million.
Saudi Arabia, the main Brazilian customer among the Arab countries, also increased purchases rising to US$ 669 between January and October this year, against US$ 521 million in the same months in 2003. Syria in turn imported US$ 141 million from the country, against US$ 37.5 million in the first 10 months of 2003. Exports to all the countries mentioned rose over US$ 100 million in the period.
Monthly shipping revenues to the region were not under US$ 240 million in any month of 2004. The most sold products, according to Alaby, were beef and sugar. "Were we to produce more, we could export even more beef to the Arab countries," stated the CCAB secretary general.
Oil also weighed heavily in exports. Although the Arabs are great exporters of the commodity, Brazil also sells heavy oil, used for the production of tarmac, to the region, especially to the Emirates.
According to Alaby, the increase in sales is directly related to the effort the country is making to open markets and promote its products in the region, as well as to the Arab decision of diversifying suppliers.
Small drop in October
Despite the growth in trade from January to October, there was a small drop in Brazilian export revenues to the Arabs in October, when compared to the same month in 2003. Revenues totalled US$ 336.6 million this year, having fallen 4.7% when compared to the US$ 353.4 million in October last year.
According to Alaby, this reduction is due to the end of purchases for Ramadan, when the Muslims fast during the day and eat large quantities at night. The event generates great import of food products in the preceding months. Last year, Ramadan started later, at the end of October.
The reduction in sales is also related to a drop in heavy oil import by the Arabs. As the product is used in the production of tarmac, purchases are seasonal.
The deceleration in oil sales was also apparent in Brazilian exports to the Middle East as a whole. Bilateral trade figures, announced yesterday (03) by the Foreign Trade Secretariat (Secex), show that sales to the region dropped 14.3% in October, when compared to the same month in 2003.
According to economist Amarillys Romano, from consultancy Tendências, however, this drop is not worrying as in October last year Brazilian sales to the Middle East were already on the rise.
"But we must monitor this, as the Middle East is an important market for Brazil, it is a region where there is money and consumer potential. We have opened important markets there, among them chicken," stated the economist.
If the period between January and October this year is taken into consideration, in comparison to the same period in 2003, exports to the Middle East have risen 41.2%. To Africa as a whole, sales have grown 44.9%.
Trade balance
Brazilian exports reached US$ 8.843 billion in the month of October. This figure is 14.4% greater than the result in October last year, and is 0.89% lower than in September this year. It was, however, the second largest daily average since the beginning of the year. Brazil had export revenues of US$ 442.2 million per working day, a value that is only lower than the US$ 444.2 million of June.
The main highlight in Brazilian foreign trade in October was manufactured products, like cars, aircraft, shoes and auto parts. Car shipping, for example, rose 31.7% as against October 2003 and aircraft sales, 82.6%. Among the basic products, soy exports dropped 43% with regard to October last year, but sales of chicken, for example, rose 66%.
Between January and October, Brazilian sales on the foreign market totalled US$ 79.1 billion, presenting 31% growth over the same period in 2003. The largest increases in shipping were to the Mercosur, the customs union between Brazil, Argentina, Uruguay and Paraguay, (63%), Aladi, the largest Latin-American group of integration, which includes Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela, (50%), Africa (44.9%), the Middle East (41.2%) and the European Union (30.8%).
