Alexandre Rocha
São Paulo – Export from Brazil to the Arab countries generated US$ 2.202 billion between January and June this year, against US$ 1.302 billion in the same period last year, an increase of 69%, according to figures supplied by the Foreign Trade Secretariat (Secex), an organization connected to the ministry of Development, Industry and Foreign Trade.
In seven months, the value has already reached almost 80% of total Brazilian export in 2003, which reached US$ 2.76 billion. In the evaluation of Arab Brazilian Chamber of Commerce (CCAB) president Paulo Sérgio Atallah, shipping to the Arabs should reach a figure between US$ 3.6 billion and US$ 3.7 billion up to the end of the year.
Import of products from the Arab countries, in turn, has already totalled US$ 2.097 billion in the first seven months of the year, as against US$ 1.472 billion in the same period last year. There has been 42% growth. The balance, up to now, is favourable for Brazil, US$ 105 million.
Atallah pointed out the growth in bilateral trade, all export plus all import, which has already reached almost US$ 4.3 billion. In his evaluation, bilateral trade between Brazil and the Arab countries should reach between US$ 7 billion and US$ 7.3 billion by the end of this year. Last year, the total was US$ 5.465 billion.
The CCAB president also pointed out the performance of what he called the "100 club," a group of eight Arab countries to which Brazilian export rose over 100% in the first six months of the year.
These countries are Syria, Algeria, Kuwait, Jordan, Tunisia, Morocco, Sudan, and Iraq. "They are newer markets, not the traditional Saudi Arabia, United Arab Emirates, and Egypt," stated Atallah.
According to him, export growth is still concentrated in basic products like sugar, chicken, cattle beef, iron ore, and soy complex (grain, ground, and oil). But it is possible to identify an increase in participation of other products, like vehicles, milk and dairy products, and wheat. Countries in North Africa were great buyers of Brazilian wheat in the first half of this year.
July
In July, Brazilian export to the Arabs generated US$ 342 million, against US$ 245.4 million in the same month in 2003, an increase of 39%. Import in turn totalled US$ 390 million, or 68% more than in July last year.
For the second time this year Brazil had a monthly deficit in bilateral trade with the Arabs. According to Atallah, this reflects an increase in oil prices and purchases. Countries like Saudi Arabia and Algeria are traditional Brazilian suppliers of the commodity.
"And that is good, as it increases the weight of Brazil in trade with the Arabs," stated the CCAB president.
The main destinations for Brazilian products in the month were Egypt (US$ 69.9 million), Saudi Arabia (US$ 56.3 million), the United Arab Emirates (US$ 34.2 million), Algeria (US$ 32 million), Morocco (US$ 25.2 million), and Syria (US$ 19.1 million).
In turn, the main supplier to Brazil in the month was, by far, Algeria. Sales from the North African country totalled US$ 255.9 million, followed by Saudi Arabia (US$ 73.9 million), Morocco (US$ 38.4 million), Tunisia (US$ 14.2 million), Lebanon (US$ 2.7 million), and Egypt (US$ 2.5 million).
