Isaura Daniel
São Paulo – Brazilian export revenues to Africa rose 60.4% and to the Middle East rose 14% in the first four months of the year. While sales to the United States dropped 3.3% in the period, Africa showed expressive growth as a destination for Brazilian products. Egypt, Morocco, and Algeria, together with South Africa, are among the African countries that most increased purchases from Brazil.
Shipping to Algeria, for example, rose 169% in comparison to the same period last year. To Egypt the growth was 103% and to Morocco 110%. Together these countries imported a total of US$ 1.1 billion from Brazil.
According to Arab Brazilian Chamber of Commerce (CCAB) secretary general Michel Alaby, the region may be replacing purchases from Europe for purchases from Latin America due to the strong euro. In the list of products most sold to the Arab countries are foods, such as cattle beef, sugar, wheat, and soy oil, as well as cotton, vehicles, ores, iron and steel pipes, steelworks products, and aluminium wire.
Alaby stated that the fact of ores and steel being among the first positions is also a sign of growth in the local industry.
April in the black
A large part of the increase in sales to the region in the first four months was provided by the good performance in April. Africa purchased 68.7% more from Brazil last month and Middle Eastern purchases rose 28.2% with regard to the same period last year. In the month, the United Arab Emirates, Syria, and Iraq were the destinations with largest growth in the Middle East.
Brazilians had revenues of US$ 45 million with sales to the Emirates, a 136% increase, US$ 15 million to Syria, ten times larger than in 2003, and US$ 12 million to Iraq, which had purchased nothing in April last year. Food, iron and steel pipes, land-levelling equipment, chassis with engines, cargo vehicles, and centrifugal pumps were the products most sold to the region.
General Brazilian export performance was also positive. The country ended the first four months of the year with a surplus of US$ 8.12 billion, according to figures supplied by the Development, Industry, and Foreign Trade Ministry. Export totalled US$ 26 billion, with a 23.9% increase over the same period in 2003, and import rose US$ 17.9 billion, 16.2% greater.
Total foreign trade broke a record for the month of April, 15% greater than in 2003, with a volume of US$ 6.5 billion. The main destination for Brazilian export is still the European Union, with US$ 1.7 billion. Export to the United States remained almost stable in April (-0.5%).
The secretary general of the CCAB believes that sales from Brazil to the United States will not be affected if the central bank of the North American country decides to increase interest rates in the country. Up to the end of the year, the Brazilian trade balance should present a US$ 26 billion surplus, according to forecasts by the National Confederation of Industries. Foreign sales should reach US$ 82 billion and import US$ 56 billion.
More expensive chicken meat
Apart from the increase in quantities shipped, the price elevation of some products helped increase the trade balance surplus in April. Ground soy, for example, was sold 39.7% more expensive than in April 2003. The value of chicken meat rose 37.9%, and cattle beef rose 35.8%.
Chicken was the fourth basic product most exported by Brazil, and has Saudi Arabia as one of its main buyers, together with Japan, the Netherlands, and Russia. According to the CCAB secretary general, the price increase is due to avian flu in Asia, and should not inhibit Brazilian product sales to the Arab countries.
"Brazil is the only country that has not been affected by avian flu. Another option would be , but they have the problem of the euro (which is currently very strong)," stated Alaby.
