The Chinese government’s decision eliminating export taxes on 17 categories of textile products, beginning on August 11, may make things even more difficult for the Brazilian textile industry.
Brazil’s textile industry was already in trouble in consequence of the end of Chinas’s export quota, as of December, 2004, determined by the rules of the World Trade Organization.
According to the executive secretary of the Ministry of Development, Ivan Ramalho, in a talk he gave at the Brazilian Institute of Rio de Janeiro Financial Executives (Ibef/RJ), the elimination of these taxes makes Chinese products more competitive and increases China’s chances of participation in world import markets.
Ramalho emphasized that there is considerable concern in the textile and clothing sector in Brazil, not just because of foreign competition, but also due to the fact that Brazilian imports are growing.
In Brazil’s trade with China, this growth is significant in some areas of textile imports, which are important for Brazil’s production. Consequently, the sector is asking the Brazilian government to regulate official protection.
In the first half of this year, Brazil imported US$ 163 million in textiles. 22.2% of Brazil’s imports from China. US$ 36 million in shoes were imported from China (71.3% of the total).
The Brazilian trade surplus for the period amounted to US$ 437 million, 69% less than the US$ 1.409 billion trade surplus registered in the same period last year.