Geovana Pagel
São Paulo – Algiers International Fair, to take place between June 2 and 10, in the Algerian capital, is going to be an opportunity for 10 Brazilian businessmen to sell their products. The African country intends to purchase the equivalent to US$ 21.1 billion on the foreign market this year, against the US$ 16.5 billion of 2003.
Brazil will be represented by companies in various sectors such as food, household appliances, agricultural machinery, shoes, auto parts, and plastics.
Ventisilva, a producer of fans from the city of São Paulo, is going to exhibit its products in Algiers for the first time. Company director Ligia Mezher Silva explains that the first contact with Algerian businessmen took place about a year ago. "A group that had been visiting Brazil took back some folders and samples of fans. We are going to travel feeling very optimistic about contact with this possible representative," she explained.
According to her, the Algerian importer intends to purchase parts produced by Ventisilva and assemble the products at its plant in Algiers. "We are after partnerships. Our target is to make export, currently under 1% of production, reach a total of 30%," she guarantees.
Nogueira S/A Maquinas Agrícolas is also going to be included in the Brazilian stand at the fair in Algiers. However, this will not be the first company contact with the Arab world. "We have been exporting to Egypt, Saudi Arabia, the United Arab Emirates, and Oman for two years," stated company trader André Luiz Verardi.
According to Verardi, the main objective of the fair is to make contacts, to get to know new companies, and take advantage of opportunities to visit the remaining Arab countries in the region: Libya, Tunisia, and Morocco.
"We are after partners for long contracts. Our forecast is for the Arab world to represent around 50% of total export by the company within the next few years," he guaranteed. Currently sales to the Arabs total just around 10% of the total exported by the company.
Seminar
This week, prior to the fair opening, businessmen and Algerian government workers will be participating in Seminar Latin America and Algeria Economic Relations. According to Michel Alaby, secretary general of the Arab Brazilian Chamber of Commerce (CCAB), who is going to represent Brazil at the event, the seminar, to take place on May 26 and 27, will be promoted by the Algerian Foreign Relations Ministry.
"We will discuss country profile, development, import, export, investment legislation, and how Latin America can come closer to Algeria," anticipated the secretary.
The fair
According to Alaby, as it is a multi-sector fair, Algiers International Fair is going to occupy an area of over one million square metres, and it is expected that exhibitors from around 30 countries should be present.
The Brazilian stand will cover an area of approximately 100 square metres, and is going to be organized by the CCAB and by the Foreign Relations Ministry.
In the 2003 edition, which included the participation of 22 countries, the Brazilian stand had 12 companies that sent catalogues and samples, or were present. "Algeria was chosen because it represents good business opportunities and has the largest trade deficit between Brazil and any of the Arab countries," stated Alaby.
The secretary also pointed out the fact that recently Algeria started tenders in the civil construction and telecommunications sectors. "Algeria has a great demand for products and services," he stated.
Levelling the trade balance
In 2003, trade between Algeria and Brazil totalled US$ 1.267 billion. In total, Brazil exported US$ 153.7 million and imported US$ 1.1 billion. This generated a deficit of almost US$ 1 billion for Brazil.
Currently the main products Brazil exports to Algeria are wheat, sugar, aluminium wire, cattle beef, highway tractors, and powdered whole milk.
It is, however, worth pointing out that in the first quarter of this year, there was great growth in export to Algeria. From January to March 2004 sales from Brazil totalled US$ 63 million, against US$ 25.2 million in the first months of 2003.
The main item in the trade basket became wheat, a product that the country only started exporting at the end of last year. Sales of the grain to Algeria totalled US$ 25.5 million in the first quarter of 2004.
Still, Brazilian import of Algerian products is much larger. In the first quarter of 2004 they reached US$ 464.4 million. The main products imported by Brazil are oil, naphtha, calcium phosphates, and mercury.
