Brazil has a chance to increase exports by US$7.8 billion, says IDB

RIO DE JANEIRO, BRAZIL – Brazil may have an additional gain of US$7.8 billion a year in exports with the reconfiguration of international trade, according to a projection presented by the IDB (Inter-American Development Bank) on Tuesday, June 7.

The growth in exports would result from “nearshoring” – having the supply chain closer to the buyer.

Altogether, the Latin American and Caribbean region can gain an extra US$78 billion in the short and medium-term: US$64 billion in sales of goods abroad and US$14 billion via exports of services.

The IDB said that most of Brazil’s export growth (around US$4.1 billion) would come from increased trade with the United States – something that may materialize quickly.

Another US$3.1 billion would come from the expansion of sales to Latin American countries. The remaining US$546.8 million would come from medium-term opportunities.

The bank evaluated that only Mexico is above Brazil in growth possibilities. The country, favored by its proximity to the United States, may have a boost of US$35.3 billion in exports.

Next are Argentina (US$3.9 billion), Colombia (US$2.6 billion), and Chile (US$1.8 billion).

“Rising environmental concerns, coupled with the [pandemic] health crisis, and Russia’s recent military operation in Ukraine have presented an opportunity where the region can contribute to the global economy and the fight against inflation by taking a more active role in global supply chains sustainably and equitably,” said IDB President Mauricio Claver-Carone.

He participated Tuesday in a meeting with Latin American government officials at the Summit of the Americas, which began Monday, June 6, in Los Angeles.

In a speech before the meeting, Claver-Carone reinforced the information released by the IDB that the change in global supply chains favors countries closer to the consumer market.

“We are an ocean of peace and prosperity,” he said. “The stars have never been so aligned for Latin America and the Caribbean,” he said. He asked that the issue be “depoliticized” and declared it a matter of “growth and investment”.

With information from Poder360

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