Brazil loses market share in Argentina to Chinese products

31 January 2007

Buenos Aires, Argentina, 31 Jan – Brazil is losing a share of the Argentinean market to China and is in danger of being replaced as the country’s number one supplier, consulting company, owned by economist and former Argentine Industry secretary Dante Seca, warned in Buenos Aires.

After the 2001/2002 crisis, the Argentinean market recovered leading to substantially increased imports, which in 2006 totaled US$34.159 billion, a rise of 280 percent against the US$8.99 billion of 2002.

But the company’s study showed that imports from China rose at a much higher rate than other imports, particularly those from Brazil.

Brazilian products, whose market share in 2003 was over 50 percent were replaced in 2006 by Chinese products, namely televisions, printers, and vacuum cleaners, amongst other things.

For those which had a market share of between 25 and 50 percent the loss was even greater and for products with a share of less than 25 percent China became the leader, namely for portable computers, toys and video recorders.

The study by said that over the last six years, imports of Chinese products rose 158.7 percent, while those from Brazil increased by just 81.88 percent.

Between 2003 and 2006, the study said, imports of machinery and equipment, and other sectors, saw an increase of Chinese market share from 8.2 percent to 13.8 percent, with Brazil’s share falling by 0.8 percentage points.

The study highlighted the footwear sector in which in the same period China increased its share by 13 percentage points whilst Brazil saw a loss of 20 percentage points. (macauhub)