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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

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  • Show Comments (7)

  • João da Silva

    [quote]I heard the Brazilian knife last forever…that’s why there are so many!!![/quote]

    The ones made by Mundial and Tramontina,yes. Before they started getting them manufactured in PRC. However,no worries. I have a great collection of knives Made In Brasil. What the rusty Swiss knives (also manufactured in PRC) can not accomplish, my collection will exterminate our friend Ch.C 😉

    btw, dont be too hard on ch.c.. His biggest mistake was to get the kinves made in PRC and he is figuring out how to prevent the recall of these products in EU. I hope he does not take too much financial loss. If he cant cope up with this tiny problem, take him to Tinamon Square in Bejing and shoot him 😉

  • Swiss pride

    Absolutely Joao !!!
    to Return might take a while… You can just throw it at him… 🙂
    Hey, I heard the Brazilian knife last forever…that’s why there are so many!!! 🙂

  • João da Silva

    Swiss Pride
    [quote]The new Swiss knife will have 41 appendages from scissors to screwdrivers, from toothpick to bottle opener and now an extended À¢€œscratcherÀ¢€Â for those hard to reach areas on the bottom of the scrotum can be easily accessed. A consortium of highly trained Swiss machinists and foreign engineers are currently developing the project. The American chain McDonalds has also expressed interest in providing our pride technological wonder Pocket knife, free of charge, with a purchase of any À¢€œHappy MealÀ¢€Â.
    [/quote]

    Good Lord, Swiss Pride,you fell for this government propaganda? The last time I bought a Swiss knife was in S.Africa ( I have bought them in various countries,but lasted for a year or two).But the one I bought in Africa lasted for about 3 months.Got rusty,discolored,blunt,etc;

    I think that Ch.c is in charge of the Marketing of these knives for the govt of Switzerland and he is getting them manufactured in Shanghai.

    Do you think that I should return all the rusty Swiss knives to Ch.C?

  • Swiss pride

    Meanwhile, the Swiss
    Government announced today a breakthrough in Swiss knife technology. A government spokesman euphorically said, this might be the only single item we export and are well known for, but the new Swiss Knife using super light metal technology developed elsewhere will revolutionize the world.
    The new Swiss knife will have 41 appendages from scissors to screwdrivers, from toothpick to bottle opener and now an extended À¢€œscratcherÀ¢€Â for those hard to reach areas on the bottom of the scrotum can be easily accessed. A consortium of highly trained Swiss machinists and foreign engineers are currently developing the project. The American chain McDonalds has also expressed interest in providing our pride technological wonder Pocket knife, free of charge, with a purchase of any À¢€œHappy MealÀ¢€Â.
    The pocketknives will sell for $ 350 Euros (7.9 billion Swiss Franks) for our Swiss citizens or $ 1.75 for all other E.U. countries.

  • ch.c.

    !!!!!!!
    English….sheep !!!!

  • Londoner

    Swiss ass!

  • ch.c.

    “Brazil has the lowest imports to Gross Domestic Product (GDP) ratio in the world.”
    And you could read in many many reports : because Brazil ALWAYS want to use imports substitutions !
    Otherwise you have ONE OF THE WORLD HIGHEST IMPORT TAXES.

    the most funniest thing is that then you expect OTHERS….to reduce THEIR IMPORT TAXES…..BUT NOT YOURS !!!!!

    Such at the WTO. You expect developed nations to reduce their agricultural subsidizes……but Brazil is not willing to reduce
    their import taxes on Industrial goods and financial services.

    As a simple example, do you know where the Apple Ipod is the most expensive in the world ?
    IN BRAZIL ! fOLLOWED BY INDIA !
    Survey done by an Australian bank… earlier this year !
    But Brazil is sooooooo wealthy they can afford just about everything, except education, infrastructures, healthcare…..where they expect others countries or International agencies…to lend money to Brazil !
    Ohhhhhh did you know that even for your “free condoms” offered by your government, it came from a World Bank Loan….despite your country has so much….in foreign currency reserves !

    I am therefore not that wrong when I write : Brazil loves to cheat, lie and hide !

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