Brazilian–Arab Trade Records New Highs In 2021
Brazilian exports to the Arab world have grown by 26.1 per cent, making it the third largest importer of Brazilian exports and the fifth largest exporter to Brazil, according to the latest figures released by the Arab-Brazilian Chamber of Commerce (ABCC). The Brazilian–Arab trade balance has also recorded substantial growth over the past year — enabling both sides to regain trade momentum and enhance the mutual economic relations.
Statistics have shown that the Brazilian imports from the Arab world increased by 82.8 per cent, while the Brazilian–Arab trade has grown by 44.3 per cent. Over the past year, Brazil was able to set high records in its transactions with Arab countries, with exports reaching up to USD 14.42 billion,which is the highest since 2012. On the other hand, Arab exports to Brazil reached USD 9.82 billion last year, making it the highest since 2014. The same goes for the mutual trade between both sides, which totaled USD 24.25 billion —a record high since 2014. Predictions also indicate that the Brazilian–Arab trade will continue to grow this year due to business recovery and increasing demand.
December 2021 saw monthly Brazilian exports breaking high records for the first time since January 1997. The country’s beef exports reached USD 117.8 million, with Egypt being the largest Arab country that imported beef at USD 69.88 million. Furthermore, exports of soy oil and their molecules are valued up to USD 58.56 million, with Egypt and Algeria’s imports reaching USD 35.03 million and USD 23.53 million respectively. In terms of exports of pastries and other solid soybean waste, they amounted to USD 41.73 million, with Saudi Arabia and the UAE importing the largest amounts of USD 26.04 million and USD 11.79 million respectively.
The monthly Brazilian imports have also surpassed records in December 2021, compared to the month of January. The Brazilian imports of mineral or chemical nitrogen fertilizers amounted to USD 264.8 million, mostly from Qatar (USD 109.2 million) and Oman (USD 89.63 million). On the other hand, the imports of mineral or chemical fertilizers containing additional substances totaled USD 119.8 million with Morocco being the biggest supplier with USD 75.37 million. As for the imports of aluminum ore, they reached USD 119.8 million, with Saudi Arabia being the biggest supplier with USD 23.20 million.
Osmar Chohfi, President of the Arab-Brazilian Chamber of Commerce (ABCC), commented on these records: “The Brazilian–Arab trade is experiencing a continuous growth due to the strong economic relations between both sides, as they strive to strengthen historical ties and enhance relations between the governments and private sectors of both countries. Both sides are promoting discussions on holding more free trade agreements, diversifying exports, and boosting foreign trade through rapid digitization. Our aim is to enhance communication between new Brazilian and Arab companies to ensure increased expansion in the targeted markets. Additionally, our agendas will also address the prospect of marketing halal Brazilian goods, focusing on cultural businesses, and promoting the Brazilian–Arab Free Trade agreement discussions.”
Chohfi added: “As part of our framework, which emphasizes the development of trade partnerships between Brazil and Arab countries, we look forward to enhancing the trade diversification which currently focuses on exporting of Brazilian agricultural goods and Arab petroleum products. Our strategy also aims to accelerate digital transformation and employ Blockchain and Artificial Intelligence technologies (AI) in the trade sector as part of our ambitions to enhance international trade beyond geographical borders, in accordance with the highest social and environmental governance.”
It is important to note that the Brazilian–Arab trade balance achieved high records last year, since the Brazilian exports to the world were USD 280.63 billion, with an increase of 34 per cent compared to 2020. Additionally, Brazil’s trade with the world reached USD 500.04 billion(35.8 per cent over 2020), and the overall trade balance amounted to USD 61.22 billion (21 per cent over 2020).As for imports, they were estimated to increase by 38.2 per cent, reaching USD 219.40 billion compared to 2020.
Throughout its almost 70 years history, ABCC has worked towards establishing partnerships between the Brazilian and Arab people in order to enhance cultural, social, and economic development, and facilitate mutual relations and businesses between both countries. Through effective relations with governments and the private sectors of both countries, the chamber continues to contribute to the development of the Arab-Brazil trade.
