Sao Paulo, Brazil, 20 April – Brazil may post a trade deficit with China in 2007 of US$1.5 billion, according to an estimate from the China-Brazil Business Council (CEBC), recently announced in Sao Paulo.
From October 2006 to March 2007, the deficit totaled US$916 million and over the last 12 months (March 2006 to March 2007), posted a deficit of US$51 million.
In 2006 Brazil’s trade surplus with China was US$410 million, which was lower than the record of US$2.3 billion posted in 2003.
The president of the Council and of Embraco, one of the world’s largest manufacturers of compressors with a factory in China, Ernesto Heinzelmann, said “life is not going to get better, it will only get harder.”
Rodrigo Tavares Maciel, the executive secretary of the CEBC, said that for nor China was merely replacing Brazil’s traditional suppliers, such as the United States, the European Union and Argentina.
“The main problem that we are facing is competition abroad,” he said
According to Maciel, the footwear industry is an example of that and China, which has a marginal share of the Brazilian market, is replacing Brazil on the Argentinean market. (macauhub)