Isaura Daniel*
São Paulo – The Brazilian machinery and equipment industry is exporting more to the Arab countries. The sector had revenues of US$ 158.9 million with sales to the countries of the region in the first ten months of the year, against US$ 127.8 million in the same period last year, according to figures supplied yesterday (12) by the Brazilian Machinery Manufacturers Association (Abimaq), in São Paulo. The additional revenues were US$ 31 million and the growth was 24.4%.
Saudi Arabia was the Arab country that most purchased Brazilian machinery and equipment between January and October this year. The Saudis spent US$ 44.8 million in national products over the period, presenting an increase of 78.2% over the same months in 2005. The country overtook the United Arab Emirates, which occupied the first position in the ranking in the same period in 2005, and is now in second place. Between January and October this year, the United Arab Emirates imported the equivalent to US$ 38.7 million in equipment from Brazil.
The third Arab country in terms of imports of Brazilian machinery and equipment in the first ten months of the year was Egypt, with purchases of US$ 14.4 million and growth of 53.1%, the fourth was Morocco, with US$ 10.7 million and an increase of 15.8% and the fifth was Sudan, with purchases of US$ 9.4 million and growth of 152.6%. According to the Abimaq economist, Patrícia Marrone, the Arab countries are traditional buyers as Brazilian manufacturers have been participating in fairs in the region for many years. Nineteen Arab countries imported machinery from Brazil up to October.
Brazilian exports of machinery and equipment in general rose 13.7% between January and October this year. They reached US$ 8 billion, against US$ 7 billion in the same months in 2005. Up to the end of the year exports should reach US$ 9.6 billion, according to figures supplied by the Abimaq, with growth of around 13%. "The world is geared to productive investment," stated the president at the Abimaq, Newton de Mello, during a meeting with the press. According to Mello, the growth in foreign sales is the reflex of an export effort made by the sector in 2003, when exchange rates were more favourable to exports.
According to Mello, foreign sales have been maintained due to a disposition of producers to maintain markets they have already won and also to maintain a production scale. The president of the Abimaq told stories of products that are being exported at a loss. The appreciation of the Brazilian real against the US dollar is one of the greatest complaints of the machinery sector in Brazil. Brazilian machinery, according to Mello, is not competitive against the machines made by other global producers due to exchange rates.
In 2007, sales of machinery and equipment should remain stable, according to forecasts by the Abimaq. The organization has made a series of forecasts for the sector for next year. The industry should produce, according to the Abimaq, 3.4% more, and nominal revenues should grow 2.3%, with real growth (discounting inflation) estimated at 0.7%. The total number of jobs in the sector should fall 1.1%. Up to October this year, the machinery and equipment industry had registered revenues of R$ 45.4 billion, a reduction of 2.5% over the same period last year.
*Translated by Mark Ament
