Exchange Rate Hurts Brazil’s Shoe Exporters

Brazilian footwear exports dropped 16% in March, and 11% in the first quarter of this year, when compared to 2004. According to the Brazilian Association of Shoe Manufacturers (Abicalçados), in March, 20 million pairs of shoes were shipped abroad, and in the first three months of 2005, more than 60.1 million pairs were sent to other countries.

According to the Executive Director of Abicalçados, Heitor Klein, March’s total exports of US$ 160 million were 3% inferior to that of March of last year, when they reached US$ 164.8 million. Klein said that manufacturers attribute the bad numbers to the exchange rate policy, which has been making business difficult for several months.


The government and private enterprise reaffirmed, ealier this year, their partnership for the promotion of footwear and leather accessory exports.


On January 11, the Minister of Development, Industry, and Foreign Trade, Luiz Fernando Furlan, signed a contract renewing the Export Incentive Program for the Footwear Sector.


The goal of the program is to expand footwear exports by 11% this year alone. The program is known as Brazilian Footwear and has been in existence for two years.


The Brazilian Export Promotion Agency (Apex) will be in charge of coordinating the program. The government and private enterprise plan to invest US$ 9.3 million (25.5 million reais) just in 2005.


The Brazilian Association of Footwear Industries (Abicalçados), the government’s partner in the project, will help obtain the private investment portion.


The program intends to generate at least 1,100 jobs in coming years, as well as increasing the number of export firms in the sector from 550 to 1,100.


The footwear sector ended 2004 with its best results since 1993, with the production of over 700 million pairs, of which nearly 200 million were exported.


Export receipts were up 15%, closing the year at US$ 1.8 billion. The Brazil Footwear’s goal is US$ 2 billion in exports in 2005.


The program sponsors international promotional activities, such as “prospecting” missions in promising countries or regions and the Buyer Project and the Image Project, which bring importers and opinion-makers to Brazil to become acquainted with firms’ potentials


Brazil Footwear also promotes participation in international fairs, with promotional activities such as fashion shows and intensive publicity campaigns in the trade media.


Agência Brasil

Tags:

Ads

You May Also Like

Brazilian Premium Cachaça Gets Some Heavy Reinforcement in the US

Karate champion, best-selling author, pirate enthusiast, and motivational speaker, former Philadelphia 76ers owner Pat ...

12 Pointers to Turn Brazil’s Congress into a Source of Pride

Each time that an ethical crisis lays waste to politics, a sort of horror ...

Brazil’s Lula to Meet Chavez and Kirchner

Brazilian President Luiz Inácio Lula da Silva participates today in the inauguration of the ...

Recorded Live in Brazil, “Symphonic Jobim” Gets a Nod for Grammy

"Symphonic Jobim," Adventure Music’s two CD set featuring the orchestral music of legendary Brazilian ...

Little girl Gabrielli raped and killed in Brazilian Adventist church

Brazilian Police Arrest Man Who Raped and Strangled One-Year-Old Girl in Church

The Brazilian police say they have solved a macabre crime involving a rapist and ...

Forced to Import Used Tires from Europe Brazil Appeals to WTO

Brazil continues its struggle to keep imported used tires out of the country. Representatives ...

Brazil’s Artefacto Furniture Takes International Road

The Artefacto chain of stores, with offices and factory in the state of São ...

Slave Labor Is Not Worse, Just More Visible, Says Brazil

At a hearing on slave labor this week in the Brazilian Chamber of Deputies, ...

Brazilian Court Reverses Release of TV Reporter’s Killer

A court from Rio de Janeiro, Brazil, which oversees sentence implementation has reversed a ...