China overtakes Germany in machinery sales to Brazil

28 October 2010

Sao Paulo, Brazil, 28 Oct – China overtook Germany in September and is now the second-ranking supplier of machinery and equipment to Brazil, only behind the United States of America, indicate data from the Brazilian Machinery and Equipment Industry Association (Abimaq).

Figures released on Wednesday in Sao Paulo by Abimaq show that China’s participation in Brazilian imports rose from 2.1 percent of the total in 2004 to 12.3 percent from January to September of this year, above Germany’s 11.9 percent.

The top-ranking USA accounts for 24.2 percent of all imported machines, though this is below its 32.4 percent share six years ago.

The rise in foreign products entering the Brazilian market has led industry to press the government for measures to compensate the valorisation of the real, such as raising the tax on imported products similar to national products to 35 percent.

In September Brazil imported capital goods worth a record US$2.667 billion, above the previous record of US$2.627 billion in August.

In the first nine months of the year the sector accumulated a trade deficit of US$11.723 billion. Abimaq expects the figure to rise to US$15.631 billion by the end of the year, more than the negative balance of US$11.146 billion in 2009. (macauhub)