Isaura Daniel, special envoy
Porto Alegre – If it depends on the Arab and Rio Grande do Sul state desire, trade between the state and the countries in Africa and the Middle East will continue rising in months to come. The state has increased exports to the Arab countries by 83% in the first eight months of this year, and is working on further increasing this figure. A committee of 11 ambassadors and representatives from the Arab nations in Brazil will he arriving in Porto Alegre today (28), to learn about some of the main industries in the state and talk to gaúcho (from the state of Rio Grande do Sul) businessmen about the potential of their countries.
On Thursday (30) they participate in a meeting between ambassadors promoted by the Development and Foreign Affairs secretariat of the state of Rio Grande do Sul (Sedai), together with the Federation of the Commercial and Services Associations of Rio Grande do Sul (Federasul). According to the state Development and Foreign Affairs secretary, Luis Roberto Andrade Ponte, the objective of this seminar is expansion of mutual market knowledge and bilateral trade between both regions.
"Rio Grande do Sul has a great export potential and already trades with some Arab countries, but there is space for growth," stated Federasul president Paulo Afonso Feijó. In the first eight months of this year, 12% of the revenues obtained with Brazilian export to the Arabs went to gaúcho businessmen. The state had revenues of US$ 337 million with shipping to the region, against US$ 184 million in the same period last year.
"The Arabs have started importing more of some products from Brazil in which Rio Grande do Sul is strong, as is the case with wheat and cattle beef," stated Arab Brazilian Chamber of Commerce president Paulo Sérgio Atallah, who will be one of the speakers at the Thursday meeting.
Some of the main exporters to the Arab countries are based in Rio Grande do Sul, among them trailer maker Randon, chicken product industry Frangosul, and bus-body maker Marcopolo. The growth of export from the state of Rio Grande do Sul to the Arabs, between January and August, has been greater than the performance of state export as a whole, which rose 27% in the same period.
In terms of volume, the growth in Rio Grande do Sul trade with the Arabs is greater still: 168%. The volume rose from 372,000 tonnes to 998,000 tonnes and has exceeded shipping in the whole of last year, when the state sold 734,000 tons to the 22 countries in the League of Arab States.
The main gaúcho products offloaded in the north of Africa and Middle East range from wheat, soy, tractors and agricultural machinery to shoes, furniture, sweets and cutlery. "The Arab countries are opening themselves and Rio Grande do Sul is after alternative markets," stated the vice-president and coordinator of the Federasul Foreign Trade division, Roberto Pandolfo.
He believes that the meeting with the Ambassadors may help demystify the Arab countries for small and medium businessmen who, according to him, are normally fearful of going after markets considered unknown. The organizers hope to receive around 250 participants from the productive sector for the seminar. The event will be open and participation is free.
Potential
Rio Grande do Sul is one of the most important Brazilian productive and export states. Last year, the gaúchos were responsible for 8.6% of all the riches produced in the country. Industry and services are respectively responsible for 40% and 46% of the state Gross Domestic Product (GDP).
Livestock also has an important weight, especially in exports, and answers to the remaining 14% of the state GDP. Secretary Ponte recalls that state export has risen 27%, despite the reduction in the soy crop, which is one of the main products sold by the gaúchos on the foreign market. The state hoped to pick over 10 million tonnes in the last crop, but had a turnout of just 6 million tons.
Between January and August this year, Rio Grande do Sul has appeared in the third place among the largest country exporters, losing only to São Paulo, in southeastern Brazil, and Paraná, also in the South. If only the August sales are taken into account, the state rises to the second position.
Last month, gaúcho exports rose significantly: the growth was 53% when compared to August 2003, and reached US$ 958 million. The United States, Argentina, and China are the main buyers and chicken, soy and its derivatives, tractors, shoes, tobacco, and furniture are the main products sold on the foreign market.
Vehicles
Despite already having a large automotive complex, the state of Rio Grande do Sul is making an effort to strengthen the sector. General Motors is going to double its industrial complex in the city of Gravataí, in the metropolitan region of Porto Alegre. The company is going to invest US$ 240 million so as to have a productive capacity of 210,000 vehicles a year. Current production is 110,000 cars a year at that factory.
Japanese company Toyota is going to build a distribution centre in the city of Guaíba, also close to the capital, with investment of US$ 6 million. The state government also wants the carmaker to invest in a factory.
Rio Grande do Sul already produces around 60% of the agricultural machinery in the country, a sector that has only grown in recent years due to the good performance of agribusiness. With agribusiness export rising at a rate of 25%, the government of the state hopes to reach the end of the year with 5% growth in its GDP, according to Ponte.
There is also a strong information technology pole in development in the metropolitan region of Porto Alegre.
Program
The state has a tradition of promoting meetings with ambassadors of economic blocs. They have already organized meetings with European Union ambassadors and with those of the North American Free Trade Association (Nafta).
Tomorrow (29) the Arab ambassadors will be visiting Doux-Frangosul, in Montenegro. They should also be meeting the mayor of the city of Porto Alegre, João Acyr Verle, and the president of the Legislative Assembly, João Fischer, state governor Germano Rigotto and secretary Ponte. On Thursday (30), after the seminar, the Ambassadors will be visiting Marcopolo, in Caxias do Sul. They will be in the state up to Sunday.
So as to participate in the 6th Ambassador Meeting, to take place on Thursday at 08:45 am at the head offices of the Federasul, it is necessary to enrol by telephone (+55 51) 3211-2011 or by e-mail comex@federasul.com.br
