Brazil international trade – latest
Brazil international trade – general information
Brazil has a developing mixed economy that is the twelfth largest in the world by nominal Gross Domestic Product (GDP) and eighth largest by purchasing power parity in 2020. The current population of the country is 213,444,408 people and official language is Portuguese. The currency is the Brazilian Real and the country is located in time zone UTC+1(CETA).
Brazil international trade – economy by sector and overview
By sector:
Agriculture -5.5%
Industry – 18.5%
Services – 76%
The overall outlook for the Brazilian economy is reasonably good following the Covid19 pandemic, the economy ministry has projected economic growth of 3.2% for 2021 and 2.5% for 2022. Although inflation has become a concern with the official projection for 2021 being raised to 4.4%, this increases the likelyhood of first rise in interest rates in Brazil for 6 years.
Like all major emerging market currencies, the Brazilian Real weakened sharply due to the uncertainty when the Covid19 pandemic started. The currency fell by 15.6% against the United States dollar between February and March of last year with further depreciation over the next few months.
While the economic rebound in the second half of last year has enabled the currency to recover some of its losses, the Real was still 22.9% below the dollar in February compared to a year back. This is much worse than other emerging market currencies such as India’s rupee and Mexico’s peso. It does however present an opportunity for Brazilian exporters by making Brazilian goods relatively cheaper.
Brazil international trade – main export & import categories and overview
Brazil main exports by category:
- Mineral fuels including oil
- Oil seeds
- Ores, slag, ash
- Meat
- Machinery including computers
- Iron, steel
- Vehicles
- Cereals
- Woodpulp
- Food industry waste, animal fodder
Brazil main imports by category:
- Mineral fuels including oil
- Electrical machinery, equipment
- Machinery including computers
- Vehicles
- Organic chemicals
- Fertilizers
- Plastics, plastic articles
- Pharmaceuticals
- Other chemical goods
- Optical, technical, medical apparatus
Brazil international trade
Brazil international trade – trade information & trade deals
Brazil’s major international trade partners are China, United States, Argentina, European Union, Japan.
Brazil is a member of the WTO, BRICS, Mercosur, G-20 and others
Total value of export – $217,7 billion
Total value of imports – $150,7 billion
A major development for international trade for Brazil came on October 19 2020 when Brazil and the United States announced the signing of a Protocol on Trade Rules. The Protocol updates the 2011 Agreement on Trade and Economic Cooperation (ATEC) between the two countries with new annexes in three areas: Trade Facilitation and Customs Administration, Good Regulatory Practices, and Anti-Corruption.
The revised Protocol, however, is not a comprehensive trade agreement. The agreement does not include tariff reductions, measures designed to promote cooperation in strategic sectors, such as energy or infrastructure, or disciplines on express shipments. Moreover, the Protocol does not address agriculture, nor does it cover digital trade issues, such as Brazil’s plan to impose a tax on electronic commerce, which has proven to be a flashpoint between the US and a number of its trading partners.
Brazil international trade – business development
Ease of doing business ranking –124th in the world
International dialing code – +55
Main business domain – .br
The Brazilian economy undoubtedly has huge potential and in the relatively recent past it was ranked in the top 10 economies in the world before political problems and corruption, among other things, caused its decline and recession. We would certainly consider the Brazilian economy to be one to watch in he future and one to take an active interest in.
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