São Paulo – Representatives of Brazilian companies participated on Thursday (12) in a meeting at the offices of the Arab Brazilian Chamber of Commerce, in São Paulo, and said that their companies plan to maintain exports to the Arab nations despite the political crisis in the Middle East and North Africa. The meeting chaired by the CEO at the organisation, Michel Alaby, presented to executives the panorama of the economic and political scenery in the Arab world.
According to Alaby, one of the trade consequences of the political crisis was the reduction of monopolies and oligopolies that dominated great sectors in the countries affected by popular protests. “You will have new players in foreign trade, both in the area of purchases and in the area of sales,” he said.
According to the CEO at the Arab Brazilian Chamber, people should seek opportunities for direct sales to the Arab nations. “Many trade operations are made triangularly,” he pointed out. He mentioned Kurdistan, in northern Iraq, as an example of a place that purchases Brazilian products from other countries, like Turkey and Pakistan.
Djavan Biffi, the coordinator of the International Business Unit at Brasil Foods, explains that company exports to the Arab world did not suffer great changes after the start of popular protests. “In the beginning, the crises generated a little uncertainty as to whether or not they would affect the demand and exports to the Arab nations,” he explained. But he added that BR Foods, the owner of brands Sadia and Perdigão, should continue participating in the fairs in the Middle East.
Raoni Cruz, the trader at JBS group, said that, although company exports were affected by the crisis, the company maintains beef export forecasts to the Arab market. “With all possible care, we are trying to maintain forecasts (the export target for 2011) and, with the stabilisation of the Arab countries, the forecast is to grow,” he explained. “The price of beef, globally, is on the rise, so our perspective is to maintain exports at a constant growth,” he explained.
According to Cruz, sales to Tunisia, Egypt, Syria, Algeria and Libya were forecasted, but she pointed out that this should not significantly affect company exports, as it has global operations.
In the shoe sector, Artur Bonoto, the Grendene trader, reveals that the company is awaiting a definition of the political situation in markets in Egypt and Libya, countries in which the company had been expanding its operation. However, he bets that, for other Arab markets, expectations are for continued sales. “We expect maintenance [of the export level] in the market in which we are today, like Morocco and Algeria, Kuwait, the Emirates and other countries of the Gulf.”
To Fabio Chalita, from Foreign Trade Consulting, despite the crisis, there is a great potential for growth in trade between Brazil and the Arab countries. His trading company helps companies export products like food, shoes, garments and household appliances to the Arab market. “We had problems with Egypt and Tunisia, due to obvious reasons, but we managed to maintain stability in Saudi Arabia, the Emirates and Kuwait,” he finished off.
The event included the presence of the marketing vice president at the Arab Brazilian Chamber, Rubens Hannun. He spoke about the services the organisation places at the disposal of businessmen to aid them in trade with the Arab world. “The tendency is for stability [in the Arab world] and for greater acceptance of Brazilian products in these countries,” he said.
*Translated by Mark Ament
