Sao Paulo, Brazil, 06 April – China is moving close to surpassing Argentina to become the second-largest supplier to Brazil, after only the United States, officials said Wednesday.
Chinese exports to Brazil increased 48.7 percent to US$1.62 billion in the first three months of 2006, against the same year-ago period.
The difference between Chinese exports and Argentinean exports to Brazil is of just US$1 million, according to the Ministry of Development, Industry and Commerce.
In the first quarter of this year, Argentinean exports increased by just 13.6 percent against the same period of 2005, to US$1.621 billion.
Chinese exports accounted for 8.1 percent of Brazil’s total imports in the first quarter this year, as against a share of 6.5 percent in the same period a year ago.
In the first three months of 2006, total trade between Brazil and China was US$3.18 billion, with China exporting a surplus of US$60 million.
China sold to Brazil electronic products, machinery, optical instruments and equipment and bought mainly soy, iron ore and oil from Brazilian companies.
Sector analysts have said that Chinese exports to Brazil will continue to increase over the next few months, as a result of the increased value of Brazil’s currency against the US dollar.
The increased value of the real has made Chinese products cheaper than those manufactured in Brazil, which has encouraged sectors of the Brazilian economy to import rather than acquiring goods on the domestic market.
Last year, trade between Brazil and China increased 33 percent to US$12.18 billion against 2004, with Brazil registering a surplus of US$1.48 billion. (macauhub)