Brasilia, Brazil, 25 June – Brazil accumulated a balance of trade surplus of US$2.8 billion in its trade with China up until the second week of June, as compared with a deficit of US$1.5 billion in the first half of 2008, the Brazilian Foreign Trade Office said in Brasilia.
According to the published figures, the change in Brazil’s trade with China was due to two factors – replacement of stocks of raw materials by China, which led to a rise in sales of iron ore and soy and a fall in industrial production in Brazil, which led to a deceleration of imports of parts and machinery manufactured in China.
The secretary for foreign trade, Welber Barral, said that this year Brazil see a significant trade with China and noted the importance of Brazilian-Chinese trade saying that it, “is now responsible for 22.5 percent of Brazil’s trade surplus with the world.”
However, economists cited by news agency Estado said they believed that the current trade surplus was an exception and that Brazil was likely to return to the trade of increasing deficits with China in 2010. (macauhub)