Alexandre Rocha*
São Paulo – Exports from Brazil to the Arab countries generated US$ 4.53 billion between January and September this year, an increase of 18.7%c when compared to the same period in 2005, when shipments totalled US$ 3.8 billion. In September alone, sales to the region totalled US$ 568.5 million, with growth of 12.5% when compared to the US$ 505.2 million in the same month last year. These figures were supplied by the Brazilian government Foreign Trade Secretariat.
"The performance is within expectations, and remains close to the 20% target we established at the beginning of the year. There was slight deceleration in September, as the month had fewer working days, mainly due to the holiday of September 07," stated the Arab Brazilian Chamber of Commerce president, Antonio Sarkis Jr.
However, the September result was the fourth best in the year, losing only to August, July and June, with August and July being the two months with the highest figures in the history of Brazilian exports to the Arabs.
Sarkis believes that the business is going to grow further up to the end of the year due to a trade delegation from the southern Brazilian state of Santa Catarina that is going to travel to three countries in the Gulf (Kuwait, the United Arab Emirates and Qatar), starting on September 26, and to the participation of Brazilian companies in the Big5, the civil construction fair, and Index, in the furniture sector, to take place in Dubai between the end of October and early November.
"These are some of the sectors that we have defined as presenting the best potential in the Arab countries, due to the great volume of funds in the countries for investment in infrastructure, hospitality and habitation, etc.," stated Sarkis.
The delegation from the state of Santa Catarina to the Gulf is organized in partnership between the Arab Brazilian Chamber and with the Federation of Industries of the State of Santa Catarina (Fiesc). Brazilian participation in the Big5 and Index are the result of joint work between the Chamber and the Brazilian Export and Investment Promotion Agency (Apex). In the case of Index, the Brazilian Furniture Industry Association (Abimóvel) is also one of the organizers.
Between January and September this year, the main destinations in the region for the Brazilian products were Saudi Arabia, which imported the equivalent to US$ 1.032 billion, Egypt (US$ 1.019 billion), the Emirates (US$ 668 million), Algeria (US$ 330 million and Morocco (US$ 305 million).
Strategy for imports
Imports of products from the Arab countries, in turn, totalled US$ 4.075 billion between January and September 2006, an increase of 3.4% when compared to the same period last year, which resulted in a trade surplus of US$ 453 million for Brazil. In September alone, however, imports totalled US$ 231 million, 47.6% less than in the same period last year.
As the main product sold by the Arabs to Brazil is oil, Sarkis believes that the main reason for the reduction is self-sufficiency in production of the commodity, reached by the country this year. "This is the reason, as the reduction in the price of the barrel of oil has not yet been sufficient to reflect in this manner," he said.
To try to expand imports, the Chamber is going to discuss strategies for diversification of the trade basket with Arab ambassadors in Brazil. According to Sarkis, apart from oil and fertilizers, traditionally bought from the Arabs, there is potential for business in other areas, among them the chemical product, electric material, medication and hospital equipment sectors.
*Translated by Mark Ament
