To Export More Brazil Needs to Boost Imports

Brazil Encomex Brazil needs to import more. This was the position defended by the Research and Economic Study director at Bradesco bank, Octávio de Barros, during the 120th Encomex, the foreign trade meeting that took place in São Paulo.

Barros said to an audience made up mainly of businessmen, at the offices of the Federation and Center of Industries of the State of São Paulo (Fiesp/Ciesp), that Brazil has the lowest imports to Gross Domestic Product (GDP) ratio in the world.

According to Octávio de Barros, a study of national companies promoted every month by Bradesco shows that the sectors that are most increasing their exports are also those that are further expanding their production.

"This cycle of Brazilian imports is promising. We must make use of it to be more aggressive in exports," stated the director. The idea is to import inputs and technology to produce more, at lower cost, and thus also to export more.

According to figures supplied by the Ministry of Development, Industry and Foreign Trade, one of the organizers of the Encomex, Brazilian imports currently represent 8.5% of the GDP. Barros considers this percentage low, but it has already been lower.  In 1997 it was 6.87%.

"The participation of imports in the GDP is growing," stated the director of the Foreign Trade Planning and Development Department at the Ministry, Fábio Martins Faria.

Brazil is currently facing an increase in imports, which are growing more than exports. From January to August this year, they have risen 27.8% in comparison with the same months in 2006, reaching US$ 74.9 billion. Imports, in turn, grew 15.9% to US$ 102.4 billion.

"This is a significant increase as it is basically in raw materials and intermediary products, which represent 50%, and capital goods, around 20%," stated the Foreign Trade secretary at the Development Ministry, Armando Meziat, at a press conference during the Encomex.

According to Meziat, imports include machinery that is not made in Brazil, bringing to the country further technology and the capacity of producing better quality products at lower costs.

"By offering cheaper products here, you compete with the import of end products and also slightly neutralize the loss there is being due to the appreciation of the Brazilian real against the dollar," stated Meziat. 

Brazilian imports of raw and intermediary materials grew 28.5% from January to August this year, as against the same months in 2006, and those of capital goods rose 27.3%.

Anba

Tags:

You May Also Like

In Brazil, from Drugs to Software, All Is Pirated

Brazil’s representatives of the commercial sector, the Receita Federal (IRS) and members of Congress ...

American Jewish Committee Applauds Israel-Mercosur Ample Trade Accord

The first ever trade agreement between Mercosur, the South American trade group led by ...

Brazil’s BNDES Lends US$ 10 Billion in 7 Months, Less than Half of 2005 Budget

The Brazilian Development Bank (BNDES) loaned 24.5 billion reais (equivalent to US$ 10.3 billion ...

Brazilian Scientists Show How Marijuana Can Help in Treating Parkinson

Brazilian researchers from prestigious University of São Paulo (USP) have discovered that marijuana contains ...

US Goes with Brazil on Labelling Genetically Modified Food

The United States has decided to accept the Brazilian position on international labelling of ...

Brazil Goes After a Piece of Gulf’s Construction Boom

The civil construction sector grows 11.6% a year in the countries of the Gulf ...

Obama Calls Lula in Italy and Accepts President’s Invitation to Visit Brazil

Returning a call placed several days ago by Brazilian President, Luiz Inácio Lula da ...

News of Privatization Gives Brazil’s Market a Boost

Latin American equities surged higher, as Brazil’s market extended its recent gains and Mexican ...

Central do Brasil Is Brazil Searching for Its Innocence

For film-lovers, Walter Salles’ Central do Brasil not only encapsulates the sum total of ...

Brazil Is on Path to Recovery with Low 4.5% Inflation

Brazil is going through a "non-inflationary economic recovery," says the Brazilian Central Bank. Brazil ...