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After Decades US Beaten by China as Brazil’s Main Export Destination

Displacing the United States, China has become the main purchaser of Brazilian exports during the first quarter of this year  which held the position undisputed for decades, according to reports in the São Paulo press based on the latest statistics.

According to the Foundation center for Foreign Trade Studies, Funcex, China leads the list of importers of Brazilian goods having increased 62.67% in value and 41.175 over the same period a year ago. This displaced the US as the main destination of Brazilian exports.

"In the worst of worlds, we're a little better," said Miguel Daoud, chief economist from Global Financial Advisor, which specializes in Chinese trade. Beijing recently announced a US$ 600 billion stimulus plan to prop the economy and domestic demand.

In the first quarter of this year China imported US$ 3.395 billion of Brazilian goods, according to the Development, Industry and Foreign Trade ministry. China concentrated 47% of all Brazilian exports to Asia and overtook Latinamerica as the block which most buys in Brazil.

Welber Barral, Foreign Trade Secretary said that "exports to Asia are increasing in spite of the crisis. Except for Japan the Asian block has a huge trade potential to be exploited."

Sectors most benefited with exports to China are commodities such as soybeans, cellulose, iron ore and oil which together they account for 76% of all Brazilian exports.

The Chinese advance happens when Brazil suffered a 19% drop in exports during the first quarter compared to 2008, and a 21.6% fall in imports , although the trade balance advanced 9% to approximately 3 billion US dollars.

Mercopress

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