Marina Sarruf
São Paulo – The Brazilian electronic product industry plans to balance the trade balance with the countries in the Middle East in 2005. For this purpose, the sector intends to intensify activities in the region, with participation in business fairs. In April next year, company participation in a fair in Amman has been planned. They are going to export their products in a Brazilian pavilion beside companies in other sectors, such as transports and agriculture.
According to the international relations director of the Brazilian Electrical and Electronics Industry Association (Abinee), Humberto Barbato Neto, the sector also hopes to win a share of the Iraqi reconstruction process. "The least we can expect next year is an equal trade balance result, and after that we may even have a surplus," he stated.
Despite the deficit in the trade balance with the Middle East, Brazilian exports have been rising very much. According to information supplied by the Abinee, sales to the region generated US$ 34.5 million between January and October 2004, against US$ 22.2 million in the same period last year, representing growth of 55.4%.
Imports, in turn, totalled US$ 36.7 million in the first 10 months of 2004, against US$ 30.8 million in the period from January to October 2003, a growth of 19.2%.
"We are managing to have important presence in the Arab world, one of our objectives," stated Barbato Neto. He added that the export growth to the region is due to a series of steps taken by the Abinee to expand the number of markets. One of them was greater participation in international fairs.
Another aspect that is contributing to the increase in foreign sales, according to Barbato Neto, was the organization of direct sales to the Arab countries. "It was much more expensive for them to buy from the European countries, for example. We are discovering that the Arab world is an excellent market," he said, adding that Brazilian companies have noticed that selling directly simplifies business.
The figures supplied by the Abinee regarding the Middle East include not only business with the Arab countries, but also with Israel, helping make the trade balance negative for Brazil, as, according to Barbato Neto, the Israelis are great exporters of medical equipment to Brazil.
Among the products that the Middle East buys the most are components for industrial equipment, equipment for public telephony, components for telecommunications, and household appliances. The products most sold to the region are engines and electric generators, electronic auto parts, manual electric tools and hermetic motor compressors.
Deficit reflected in general balance result
It is not only in the Middle East that the sector trade balance presents a negative balance. Total foreign sales should total US$ 5.2 billion up to the end of the year, against US$ 4.68 billion in 2003. Imports in turn should reach 10.95 billion, against US$ 9.87 billion last year.
In 2003, the most exported products were mobile telephones (US$ 1.1 billion), hermetic motor compressors (US$ 462 million) and electronic auto parts (US$ 294 million). The United States is still the main market.
The Brazilian electronic product sector plans to end the year with a total turnover of US$ 25.9 billion, against US$ 23.2 billion last year (in current figures), growth of 11%.
