Brazil Market

In 2005, Brazil's total exports more than doubled to US$118 billion from $58 billion for 2001. Over that same period, imports into South America's largest country grew some 30% to $74 billion from $56 billion.

 

Brazil's trade surplus has expanded more than 16-times to $47 billion from $2.6 billion over the past 4 years.

 

With a population of almost 200 million, Brazil is the world's leading exporter of sugar, coffee, beef and orange juice. Soybeans are Brazil's fastest-growing shipments, powered by the appetites of China's 1.3 billion consumers. Other major exports include aircraft, vehicles, iron ore, steel, textiles and footwear.

 

Below is a list of the top-ten countries purchasing Brazilian exports in 2005. Although the U.S. is the largest single country to buy the South American giant's exports, Europe represents Brazil's largest customer. In eleventh and twelfth place, the U.K. and France accounted for 2.2% and 2.1% of Brazil's exports respectively.

 

United States (18.9% of total exports)

Argentina (8.4%)

China (5.7%)

Netherlands (4.5%)

Germany (4.2%)

Mexico (3.5%)

Chile (3.1%)

Japan (3.0%)

Italy (2.7%)

Russia (2.5%)

 

Here's a list of the top-ten countries that provided imported goods to Brazil in 2005.

 

United States (17.2% of total imports)

Argentina (8.5%)

Germany (8.4%)

China (7.3%)

Japan (4.6%)

Algeria (3.9%)

France (3.7%)

Nigeria (3.6%)

South Korea (3.2%)

Italy (3.1%)

 

To remain an agricultural superstar in global trade, Brazil has to deal with growing pains. The recent collapse of World Trade Organization talks in Doha shut the door on an initiative to remove U.S. and European farm subsidies and trade tariffs that would have spurred Brazil's exports onto new heights of success. Also, a weak American dollar makes Brazilian products more expensive and therefore sensitive to international competition. And Brazil is notorious for poorly constructed and maintained roads, railways and seaports. Three hour delays at airports are common. This is further aggravated by an inefficient customs service.

 

In a nutshell, global trade with Brazil can be painful. According to USA Today, it can take 3 times longer to import or export goods to Brazil than most other countries.

 

However, all of these trade roadblocks can be effectively managed. In fact, the issues are opportunities to make Brazil more efficient and therefore stronger.

 

In conversational slang, Brazil has got what it takes, baby.

 

Bordering every South American nation except for Ecuador and Chile, Brazil is home to extensive agricultural lands and rain forests. Brazil has vast natural resources and a large labour force.

 

With less than one fifth of the country's potential farmlands being cultivated, Brazil's much-needed exports and healthy trade surplus is poised to further rise. Brazil's potential may be limited only by how fast its trade buddies in the world economy can keep up.