Alexandre Rocha*
São Paulo – Once again trade with the Arab countries has surpassed the expectations. According to information from the Brazilian Foreign Trade Secretariat (Secex), Brazilian exports to the region broke a new monthly record in August, reaching US$ 615.7 million, an increase in 55% in comparison to the same month last year. Imports registered a record value of US$ 881 million, or 139% more than in August 2004.
With this, global trade, which is the sum of exports and imports, reached almost US$ 1.5 billion, an increase in 95% in comparison to the same month last year. "The results are signs of the summit for South American and Arab countries," said the Arab Brazilian Chamber of Commerce (CCAB) president, Antonio Sarkis Jr., referring to the event that took place in Brasilia.
The increase in trade with the Arabs was greater than the Brazilian average. Total Brazilian exports increased by 25.3% in the month and imports, 36.5%.
"The numbers are the result of the approximation that started already in the preparation of the summit, with business missions and visits of ministers," added Sarkis. Last week, in a hearing at the Senate, the minister of Foreign Relations Celso Amorim mentioned the results of trade with the Arab countries as a successful example of Brazilian foreign policy.
With the new results, Sarkis believes that it is possible to revaluate upwards the forecast for the increase in exports throughout the year as a whole. "Its already possible to foresee something at least at about 25%," he said. In the beginning of the year, the CCAB estimated the shipments to the region should increase in between 12% and 13%.
Although the rhythm of growth is surprising, Sarkis believes it is only to confirm what the CCAB has been preaching for a long time: the great potential of the Arab market. "The information comes to prize the work done by the Chamber. For years we talk of the potential of the Arab market and it is great satisfaction to see that the numbers show this reality," he declared.
In his evaluation, the products Brazil already exports traditionally, like sugar, beef and iron ore, are having an important role in the performance. "It is possible to see these are market niches that Brazil has already won and that had a great expansion," he stated. For him, exports should continue strong in September. "The Arab market is every time more consolidated for the Brazilian companies," he added. In the case of imports, the increase in oil prices influenced the performance.
Accumulated value
In the eight months of the year, global trade has already reached US$ 6.8 billion, 35% more than in the same period in 2004. From January to August, Brazilian exports reached US$ 3.3 billion, an increase in 27% over the same period last year. The imports, in turn, added up to US$ 3.5 billion, an increase in 43% in relation to the first eight months in 2004.
In the last 12 months the shipments of Brazilian products to the region add up to more than US$ 4.7 billion, an increase in 25% in comparison to the previous 12 months. Imports reached almost US$ 5.2 billion, or 49% more. The annualised global trade is close to US$ 10 billion.
*Translated by Silvia Lindsey
