Giuliana Napolitano
São Paulo – The diversification of the Brazilian export basket to the Arab countries is already showing in the partial Brazilian foreign trade balance result. Vehicle and soy oil shipping, for example, rose 400% this year, say Development, Industry, and Foreign Trade Ministry figures. The report shows that the products that have had the greatest increases are manufactured products.
Car sales, for example, rose 675% from January to October, when compared to the same period last year. In the case of buses, the increase was even larger: 739%. Cargo vehicle sales increased 477%. In the same period, soy oil sales increased 539%.
"These figures are an indication that the trade basket is becoming more diversified," stated to ANBA the adjunct-secretary of the Ministry Foreign Trade Secretariat (Secex), Ivan Ramalho. "Such high percentile growths show that new markets are being prospected by Brazilian businessmen."
The financial volume generated by these products, on the other hand, is still low. Car shipping to the Arab countries, for instance, totaled just US$ 27.8 million this year, little over 1% of the total Brazil sold to the region in the period (US$ 2.2 billion). Oil export has provided even less revenue, US$ 12.1 million.
Basic products have greater influence
For this reason, despite the great growth in sales of some items, total Brazilian sales to the Middle East and North Africa rose just 2.8% from January to October this year, when compared to the same period in 2002. "This happened due to the performance of some products that are of great significance to the trade balance," explained Ivan Ramalho. Among these is the 36.4% drop in sugar shipping and 48.5% drop in crude oil sales to the Arab market.
For the time being, the most sold products are still basic products. The first in the rank is chicken, which generated US$ 397.6 million in export between January and October this year. This was the largest volume ever shipped to the Arab market and corresponds to 18% of export.
The second place goes to refined sugar, an industrialized product that had 14.3% participation in Brazilian export to the region this year. After these, though, the main positions are occupied by basic or semi-manufactured products, such as iron ore, sugar cane, cattle beef, and petroleum.
The total result for 2003, up to October, shows that basic goods answered to 49.7% of Brazilian sales to the Arab countries. Manufactured goods were 38.1% and semi-manufactured goods, 12.2%.
Saudi Arabia: once again the main partner
Among the countries that most buy from Brazil, this year has also shown changes in comparison to 2002. Sales to Saudi Arabia had a 10% increase up to October, to US$ 521 million, and with this the country once again became the largest Brazilian product buyer among the 22 Arab countries.
Last year, the largest buyer was the United Arab Emirates. The country overtook Saudi Arabia, which had been the leader in trade with Brazil since the 1990s, soon after the Gulf War. This happened because the 1991 conflict affected trade with Iraq, one of the largest Brazilian partners up to that time.
This change in positions took place because Brazilian export to the Emirates dropped around 13% in the period. According to Ivan Ramalho, this drop is due to "isolated factors, and to some products that stopped being sold for some reason, but which may return to being traded." There was a reduction of almost 50% in petroleum and sugar export to the country. In compensation, the shipping of refined soy has increased (up 650%) so has that of chicken (53%).
The third place in import of Brazilian products is Egypt, which has increased trade with the country. From January to October, the country imported US$ 389 million, more than the volume registered during the whole of last year (US$ 386 million). Then come sales to Morocco, Algeria, Yemen, Bahrain, Kuwait, Libya, and Lebanon.
Import
Brazilian import from the Arab countries rose 36% from January to October this year, to US$ 2.3 billion – reverting the historic 2002 trade balance surplus.
Despite this growth, the trade basket is still mostly based on oil and derivatives, exceptions being batteries, juice, and vegetable extracts, which started being exported to the region this year.
