Brazilian export companies lose customers to China

9 March 2007

Sao Paulo, Brazil, 9 March – More than half of Brazilian export companies have lost customers to their counterparts in China and some have even stopped selling abroad due to the levels of competition, officials said in Sao Paulo Thursday.

According to a survey carried out by the National Confederation for Industry (CNI), of the 58 percent of Brazilian companies that had lost customers to China, 6 percent had not survived the competition and had stopped exporting, with the worst affected companies being in the clothing, leather and footwear sectors.

In the domestic market, 52 percent of companies exposed to competition from China had lost customers, with the textile, clothing, hospital and precision equipment and footwear sectors the most affected of the 1,581 companies that replied to the survey.

“Competition is increasingly great and it is necessary to create a favorable environment for Brazilian companies so that they can compete on an equal footing with the foreigners,” said the executive manager of the Political Economic Unit of CNI, Flávio Castelo Branco.

Castelo Branco also said that safeguards and ant-dumping measures were insufficient to ensure Brazilian competitiveness and said that Brazilian companies needed better production conditions, such as a reduced tax load and capital costs, as well as more efficient regulation. (macauhub)