Brazilian – Arab trade records new highs in 2021

RIO DE JANEIRO, BRAZIL – (MENAFN) Brazilian exports to the Arab world have grown by 26.1%, 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 mutual economic relations.

Statistics have shown that the Brazilian imports from the Arab world increased by 82.8%, while the Brazilian–Arab trade has grown by 44.3%. Over the past year, Brazil was able to set high records in its transactions with Arab countries, with exports reaching up to US$14.42 billion, which is the highest since 2012.

On the other hand, Arab exports to Brazil reached US$9.82 billion last year, making it the highest since 2014. The same goes for the mutual trade between both sides, which totaled US$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 US$117.8 million, with Egypt being the largest Arab country that imported beef at US$69.88 million.

Furthermore, exports of soy oil and its molecules are valued at up to US$58.56 million, with Egypt and Algeria’s imports reaching US$35.03 million and US$23.53 million respectively.

In terms of exports of pastries and other solid soybean waste, they amounted to US$41.73 million, with Saudi Arabia and the UAE importing the largest amounts of US$26.04 million and US$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 US$264.8 million, mostly from Qatar (US$109.2 million) and Oman (US$89.63 million).

On the other hand, the imports of mineral or chemical fertilizers containing additional substances totaled US$119.8 million with Morocco being the biggest supplier with US$75.37 million.

As for the imports of aluminum ore, they reached US$119.8 million, with Saudi Arabia being the biggest supplier with US$23.20 million.

Osmar Chohfi, President of the Arab-Brazilian Chamber of Commerce (ABCC), commented on these records: “The Brazilian–Arab trade is experiencing 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,” he added.

It is important to note that the Brazilian–Arab trade balance achieved high records last year, since the Brazilian exports to the world were US$280.63 billion, with an increase of 34% compared to 2020.

Additionally, Brazil’s trade with the world reached US$ 500.04 billion (35.8% over 2020), and the overall trade balance amounted to US$61.22 billion (215 over 2020). As for imports, they were estimated to increase by 38.2%, reaching US$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.