Macau: Brazil wants a base in Macau to increase exports to China

8 July 2008

Macau, China, 8 July – Macau is a fundamental factor for carrying out Brazil’s objectives of increasing exports to China, the Brazilian secretary for foreign trade, Welber Barral said Monday in Macau.

“The cultural proximity between Brazil and Macau and the logistic possibility of the territory as a services city is being publicised in Brazil in order that it be used as a gateway for Brazilian companies into the Chinese market,” said Barral, who was in Macau heading up a mission from the Brazilian government.

Barral said that the role of the Forum for Economic and Trade Cooperation between China and the Portuguese-speaking countries based in Macau was “important in the strategy of greater economic proximity between Brazil and China via Macau.”

The government of Brazil said in June it planned to increase exports to China three-fold to US$30 billion per year by 2010, via the sale of added-value products.

The launch of the “China Agenda – Positive Action for Sino-Brazilian Economic and Trade Relations,” is now being publicised in China specifically in Macau, Guangdong, Shanghai and Beijing.

At the meeting with some 200 Macau and Pearl River Delta businesspeople, Barral said that the Brazilian plan to boost trade relations with China was based on infrastructure work, logistics projects (airports and ports), raising awareness of the Manaus duty free are and publicising export processing areas.

Last year, of Brazil’s total imports from China, 95.1 percent were manufactured products, which have a higher added value than basic products, and just 26.8 percent of its exports had a high added value.

Currently, 74 percent of Brazil’s exports to China are basic products, specifically, iron ore (34.5 percent) and soy (26.3 percent).

The Brazilian government’s plan has identified 619 manufactured products from 48 different sectors, representing almost 70 percent fo China’s imports, or US$637 billion.

In the first six months of this year, Brazilian exports to China totalled US$7.4 billion, a rise of 50.7 percent against the same period of last year.

Chairman of Brazilian export and investment agency Apex, Alessandro Teixeira, who is part of the Brazilian mission, said meanwhile, according to Macau newspaper Tribuna, that contacts were underway with the Macau Institute for Export and Investment Promotion (Ipim) to set up a local office to be the “base for entry of more Brazilian companies in the Macau market.”

“Macau is much more than just a platform to enter China. Macau, in itself, has a strategic position in the region,” said the chairman of Apex.

The Sao Paulo Trade Association (ACSP) said in June it planned to open a representative Office in Macau to support small and medium-sized Brazilian companies that want to work in the People’s Republic of China. (macauhub)