Brazilian Exports: Bears Still on the Loose

Brazilian exports Exports from Brazil amounted to US$ 21.766 billion in October, down 10.6% from the same month last year based on daily average figures. Exports have increased only to the Middle East (20.4%) and Eastern Europe (65.8%).

Sales to all other regions have declined. The figures were released this Thursday (1st) by the Brazilian Ministry of Development, Industry and Foreign Trade.

The performance was impacted by a 23.1% decline in exports of basic goods, particularly oil, coffee, iron ore, soy, cotton and soy meat. Exports of semi-manufactured goods were up 4.5%, and exports of manufactured goods were up 0.9%.

Year-to-date as of late October, exports stood at US$ 202.362 billion, down 5.5% from the same period in 2011 based on daily average figures. Basic goods exports were down 7.3%, semi-manufactured goods exports were down 9.2%, and manufactured goods exports were down 2%.

On the other hand, imports reached US$ 20.104 billion in October, down 0.5% from October last year based on daily average figures, resulting in a US$ 1.662 billion trade surplus.

In the ten-month period ended October, imports stood at US$ 184.976 billion, down 1.9% from the same period in 2011, resulting in a US$ 17.386 surplus on the Brazilian side.

Import Tax

The Foreign Trade Chamber (Camex, in the Portuguese acronym), which is the federal government’s policymaking organization for the sector, has lowered the import tax on 330 types of machines and equipment which are not manufactured in Brazil.

According to a statement released by the Brazilian Ministry of Development, Industry and Foreign Trade, the goal is to cut the cost of industry investment. Two resolutions on the issue were published on the Federal Official Gazette this Tuesday (31st).

The first resolution lists 322 capital goods whose taxes will drop from 14% to 2%, being 277 new items and 45 extensions. The second resolution sets forth a reduction from 16% to 2% in the tax charged on large-sized printers, and tax exemption on seven products relating to investment in digital TV technology. The tax breaks will remain in effect until June 30th, 2014, according to the ministry.

The rulings, according to the ministry, will lead to US$ 340 million in imports. The following industries will benefit the most: oil, autos, auto parts, railways, and mining. The main source countries are United States, Germany and Italy.

The projects in which these items will be used amount to a combined value exceeding US$ 7 billion, according to the ministry. Among them is a manufacturing plant with capacity for 200,000 vehicles a year in Rezende, in the state of Rio de Janeiro, a tire plant in the city of Rio de Janeiro, a fertilizer manufacturing unit in Três Lagoas, Mato Grosso do Sul, and expansion works on the green line of the São Paulo metro.

Read the full resolutions and product lists on www.camex.gov.br/legislacao/interna/id/994 and www.camex.gov.br/legislacao/interna/id/995.

Anba

Tags:

Ads

You May Also Like

Argentina Army Seems to Be Smuggling Weapons to Brazilian Mafia Groups

A Brazilian congressional committee began Wednesday, February 1st, contacts with Argentina and other neighboring ...

In Haiti Till They Send Us Home, Says Brazil’s Lula

Brazilian troops leading the U.N. peacekeeping force in Haiti will stay there for as ...

Manaus Free Zone Gets a Lift, But Rest of Brazil Lags

The new cargo terminal at Eduardo Gomes International Airport in Manaus, capital of the ...

Sorriso: a City Worth US$ 174 million

This is the GDP of Sorriso, a city in the midwestern state of Mato ...

How Trade Diversification Saved Brazil and Neighbors from the Worst

As the G-20 meeting is about to begin in London, the outlook for Latin ...

PC Pirates Killed Computer Market in Brazil

It didn’t take too long. Brazil has surpassed China as the champion of pirated ...

Bad Roads and Ports Add 30% to Brazil’s Exports

Four hundred entrepreneurs are meeting in Curitiba, southern Brazil, at the IV Brazilian Seminar on ...

Blame the victims

If someone offers his condolences and, right after, adds some however, though or but ...

Brazilian Bio Soluções’s Line of Excrement-Run Generators Is a Hit

Brazil has a new line of generators, engines and motorized pumps that, apart from ...

IMF managing director, Rodrigo Rato

IMF Tells Lula He Dramatically Changed Brazil for Good

The International Monetary Fund praised the performance and management of the Brazilian economy during ...