Brazil: Trade gap with China hits new record

28 December 2007

Sao Paulo, Brazil, 28 Dec – Brazil recorded its biggest ever trade deficit with China in November to the value of US$ 535 million, according to the Brazilian Ministry of Foreign Trade.

In October, Brazil’s imports from China exceeded its exports to the tune of US$ 354.3 million, the official figures show.

Brazil’s widening trade gap with China in the first 11 months of the year to US$ 1.425 billion is due to a 57.7 percent increase in imports of Chinese products worth a total US$ 11.508 billion.

Brazilian exports to China grew at a slower pace, 28.8 percent, during this period to a value of US$ 10.083 billion.

China’s main exports to Brazil from January to November were components for domestic appliances. In first place were telephone parts, followed by LCDs. The latter had significant increase compared to 2006, jumping from US$ 267.15 million to US$ 455.77 million, up 70.6 percent.

The principal item in Brazil’s export basket to China was iron ore, sales of which climbed from US$ 1.964 billion in the first 11 months of 2006 to US$ 2.859 billion in the same period this year.

With this increase of 45.54 percent, Brazil’s exports of iron ore surpassed its sales of soybean to China, worth US$ 2.812 billion in 2007 compared to US$ 2.415 billion in the first 11 months of last year.

Total two-way exchanges reached US$ 2.138 billion in November. Of this figure, US$ 1.336 billion were Brazilian imports and US$ 801.3 million Brazilian exports to China.

Sino-Brazilian trade grew by 42.77 percent in the first 11 months of 2007 to a value of US$ 21.592 billion in a year-on-year comparison. (macauhub)