São Paulo – Brazil’s exports to Arab countries stood at US$ 1.196 billion in August 2013, down 16.08% from August 2012. Nevertheless, according to figures from the Brazilian Ministry of Development, Industry and Foreign Trade, compiled by the Arab Brazilian Chamber of Commerce, August had the highest monthly exports yet this year. On the other hand, Brazil imported US$ 451 million worth of products from Arab countries, up 33% from August 2012.
Egypt was the leading importer of Brazilian product in the Middle East and North Africa in August. The country purchased US$ 295.29 million worth of Brazilian goods, down 21.78% from August 2012. Saudi Arabia, the United Arab Emirates, Algeria and Oman round off the ranking of five leading importers of Brazilian products; all imported less than in August 2012.
Yemen, the sixth leading importer of Brazilian products, stepped up its purchases of Brazilian goods in August this year: the country’s imports amounted to US$ 46.43 million, up 81.74% from US$ 25.55 million in August 2012. Tunisia, Lebanon, Mauritania, Iraq, Qatar and Palestine have also increased their imports from Brazil in August.
And the value of products shipped out from Brazil was not the only figure to drop. Volume-wise, sales have also decreased last month. According to the Ministry, in August this year Brazil exported 3,200 tonnes to Arab countries, down 17.76% from August 2012. Egypt’s import volume was the highest, followed by Oman, the United Arab Emirates, Saudi Arabia and Algeria.
In August, Brazil exported US$ 347.94 million worth of meat and edible offal, the main export item during the period, up 12.3% from August 2012. Processed foodstuffs were the second leading export item at US$ 352.98 million, down 18.96% from August last year.
The reasons
According to the Arab Brazilian Chamber CEO Michel Alaby, August was the month that followed Ramadan, i.e. the holy month for Muslims, and that caused exports to drop. “Arab countries have consumed their inventories (which they had stored for Ramadan). Purchases probably started increasing again towards the end of the month. During this period, Egypt was understandingly the leading importer of Brazilian products due to the ousting of (former president Mohamed Morsi, overthrown in July). The interim government has acquired foodstuffs to ensure a food supply to the population,” he said.
Even though exports did not match those of August 2012, August was the best month so far in 2013. In July, Brazil exported US$ 1.055 billion to Arab countries. In June it exported US$ 980.03 million; in May, US$ 1.049 billion; in April, US$ 1.140 billion; in March, US$ 1.172 billion; in February, US$ 1.076 billion; and in January, US$ 1.141 billion.
Alaby also said Brazil’s exports are slower in 2012 due to factors such as exchange rate volatility, decreased competitiveness of the Brazilian industry, and the international crisis. "Due to the crisis, Europe and China are investing more heavily on trade with Arab countries,” he said.
Year-to-date through August, Brazilian sales to Arab countries amounted to US$ 8.8 billion, down 5.39% from US$ 9.3 billion year-to-date through August 2012. In 2013, Brazil’s leading importing countries have been Saudi Arabia, the United Arab Emirates, Oman and Algeria.
Imports
Last month, Brazil imported US$ 451.22 million worth of goods from Arab countries, up 33.3% from US$ 338.51 million in August 2012. The sum is however down 71.43% from July 2013’s US$ 1.5 billion.
Last month, fertilizers were the main products imported by Brazil, at a combined US$ 212.91 million. Oil imports stood at US$ 168.36 million. The leading exporting countries to Brazil in August were Morocco, Algeria, Qatar, Saudi Arabia and Egypt.
Year-to-date through August, Brazil has imported US$ 7.725 billion from Arab countries, up 0.24% from the same period in 2012. Mineral fuels were the leading product category imported by Brazil, at US$ 6.054 billion year-to-date through August.
*Translated by Gabriel Pomerancblum
