São Paulo – Three of the countries that lived the Arab Spring, social movements that resulted in changes in government in the Middle East, increased their imports from Brazil this year. According to the figures of the Ministry of Development, Industry and Foreign Trade, purchases by Egypt grew 14% from January to July as against the same months in 2011, those from Libya advanced 170% and those of Yemen, 43%. Tunisia, however bought 10% less. The growth of purchases of the first three was above the growth of total exports to the Arabs, 0.30% in the period.
The CEO at the Arab Brazilian Chamber of Commerce, Michel Alaby, stated that the movement reflects the concern of local governments with guaranteeing supply of food and not generating further reasons for social protests like, for example, the pressure of product prices. In fact, the growth in imports of these nations was boosted mainly by the purchase of foods like meat, maize and wheat, in the case of Egypt, meats and wheat, by Libya, as well as sugar by Yemen. Tunisia is still facing difficulty to restructure its logistics, according to sources heard by ANBA, which may make the return difficult.
The economist of Tendências Consultoria Econômica, Bruno Lavieri, believes that this growth in sales by Brazil are reflects the European economic problems, which result in Brazil seeking space in other markets. “These countries also had reformulation of governments and may have sought new partners,” said Lavieri. He recalls, however, that as the volume shipped to the region is not very high, the entrance of any new volume of exports represents significant growth, as the basis for comparison is low.
Libya and Yemen, in fact, import less than US$ 300 million from Brazil. Libya imported US$ 194 million from Brazil from January to July, and Yemen, US$ 260 million. Tunisia, where there was a reduction in purchases, spent US$ 195 million with Brazilian products. Egypt is an important trade partner for Brazil and acquired US$ 1.2 billion in the year up to July, which represents 15% of export revenues with the Arabs and around 1% of total Brazilian foreign sales. “Egypt is a very important market. Historically, Brazil has had a US$ 1 billion surplus with Egypt,” said Welber Barral, a partner at Barral M Jorge Consultores Associados.
Barral, former Foreign Trade secretary at the Ministry of Development, believes that there is also a return to purchases, after the Arab Spring is overcome. He said that exports to Egypt, in fact, should advance much due to the signing of a free trade agreement between the Arab country and the Mercosur, two years ago. The consultant also believes in growth in sales to Libya and says that the presence of Brazilian construction companies in the country has been reflected in greater imports of goods, like equipment.
Barral also pointed out the presence of a new Brazilian ambassador in Tripoli, Afonso Carbonar, who should foster exports to Libya. “He is extremely active,” said the partner at Barral M Jorge Consultores Associados. Barral says he is an Arab market enthusiast due to their young populations and growth. “The Gulf imports much food,” he said. From January to July, Brazil exported US$ 7.8 billion to the Arab world.
*Translated by Mark Ament
