Isaura Daniel*
São Paulo – Brazilian exports to the 22 countries of the Arab League reached US$ 636.2 million in the month of July, a historic monthly value in sales from the country to the region. The previous record was in August last year: US$ 615.7 million. The sales value for July represents an increase of 28% over the same month last year. "July was one of the best months last years for Brazilian exports to the Arab countries and even so there was an increase in 28%," recalls the president of the Arab Brazilian Chamber of Commerce, Antonio Sarkis Jr.
In the first seven months of the year, Brazil had revenues of US$ 3.3 billion with exports to the region, with an increase of 23% over the same period in 2005. According to the secretary-general at the Arab Brazilian Chamber, Michel Alaby, many factors collaborated to the increase, amongst them oil prices.
Sarkis recalled that the Muslim religious period, Ramadan, should begin between the end of September and beginning of October this year, and this already reflects on imports. In 2005 it happened between October and November. During the Ramadan the Muslims fast during the day, but eat a lot at night. Also, the holy month is followed by a period of feasts.
According to Alaby and Sarkis, the increase is mainly due to the sales of food products. Indeed, countries that are buyers of products of the Brazilian agribusiness increased their imports. Syria for example, great buyer of national sugar, imported 39% more from Brazil in July. Also Mauritania and Sudan, importers of the same commodity, bought 187% and 46.2% more from the country last month. Beef also had an important participation in the increase in exports, according to the president and the secretary-general at the Arab Chamber.
The greatest importers of Brazilian products, in the Arab world, in terms of revenues, during the month of July, were Egypt, with US$ 168 million, followed by Saudi Arabia, with US$ 115.5 million, the United Arab Emirates, with US$ 115.4 million, Algeria, with US$ 47.8 million, and Morocco, with US$ 31.5 million.
In the accumulated value from January to July the order is the same. Egypt purchased US$ 759.9 million, Saudi Arabia US$ 757.7 million, the United Arab Emirates US$ 495.2 million, Algeria US$ 237.8 million and Morocco US$ 227.6 million. Egypt, heading the list, is a great buyer of Brazilian beef.
In percentage terms, the greatest increase in purchases last month was identified in Somalia, followed by Mauritania, Iraq, the Comoros and the Emirates. In the accumulated result for the year, the greatest increases were identified in exports to Iraq, Djibouti, Somalia, the Comoros and Sudan. According to Sarkis, if exports continue growing at the current rhythm, bilateral trade should reach, or even exceed, the target stipulated by the Arab Brazilian Chamber for bilateral trade this year: US$ 12.6 billion, presenting growth of 20% over the US$ 10.5 billion of 2005. "The accumulated result of exports has already reached US$ 3.3 billion," recalled Sarkis.
Oil
Brazilian imports of Arab products also rose 21.7% between January and July this year when compared to the same period in 2005, reaching US$ 3.18 billion. In July, however, imports dropped 37%. Brazil imported US$ 372.6 million from the Arabs last month. The main product in the Arab export basket was oil.
According to Sarkis, the figure for July is close to the average monthly average for imports. The reduction in percentage terms, according to him, may be explained by a high value for comparison: July was the month last year that registered the second greatest volume of Brazilian imports from the Arab world.
*Translated by Silvia Lindsey and Mark Ament
