São Paulo – Revenues from exports from Brazil to the Arab countries were down 6.08% year-to-date through November from the same period last year, according to figures from the Brazilian Ministry of Development, Industry and Foreign Trade compiled by the Arab Brazilian Chamber of Commerce. Revenues from exports to the region stood at US$ 12.7 billion year-to-date through November this year, as against US$ 13.5 billion in the same period of 2012.
According to the Arab Brazilian Chamber CEO Michel Alaby, one of the causes for the decline is the fact that foodstuffs sales are highly profitable on the Brazilian market at this time, since inflation is on the rise, and therefore the industry has turned to domestic sales. As a result, Brazilian exports as a whole are on the way down 1.1% to US$ 221.3 billion year-to-date.
Alaby notes, however, that Brazilian exports have increased to the Levant, a region of the Arab world comprising Lebanon, Iraq, Jordan, Syria and Palestine. According to him, the increase is mostly due to food supplies to refugee camps. Many of the people who have fled the Syrian conflict are sheltered in countries like Lebanon and Jordan, and thus the humanitarian aid organizations are shipping increased amounts to these locations. Brazilian sales to the Levant countries were up 7.27% during the period to US$ 891 million.
Brazilian exports to the Gulf countries, i.e. Saudi Arabia, Emirates, Oman, Yemen, Kuwait, Qatar and Bahrain, were down 3.48%. The Gulf is the part of the Arab world that imports the most goods from Brazil. Revenues amounted to US$ 7.1 billion year-to-date through November. The sharpest decline in exports from Brazil was seen in the Arab countries in Africa, down 11.8% to US$ 4.6 billion. The group comprises Egypt, Algeria, Morocco, Libya, Mauritania, Sudan, Somalia, Djibouti and Comoros.
The decline in price of some products shipped from Brazil to the Arab world weighed down on export revenues, but the volumes shipped have also decreased. For instance, the price of sugar and ore shipped to the Arabs saw a reduction. As a result, the volumes shipped increased, but revenues declined.
Still, revenues from meats exports increased. The top-selling product category to Arab countries was animals and products, which includes livestock and meats. The second was processed goods, including sugar and tobacco, the third was mineral products, including ores, and the fourth was vegetables and products, including cereals.
November
In November alone, revenues from Brazilian exports to the Arab countries were down 5.15% to US$ 1.2 billion. The volume shipped, however, was up 10.2%. During the period, processed foods netted the most revenue to Brazil in trade with Arab countries.
Imports
Brazilian imports of products from Arab countries were up 1.2% year-to-date through November, to US$ 10.5 billion, as against US$ 10.4 billion in the same period of 2012. Of these, mineral fuels accounted for US$ 8.3 billion and fertilizers accounted for US$ 1.6 billion. Saudi Arabia was the leading supplier to Brazil among Arab countries, followed by Algeria and Morocco. The former two export mostly oil to Brazil, while Morocco exports fertilizers such as phosphate.
*Translated by Gabriel Pomerancblum
