Sao Paulo, Brazil, 3 Jan – China is this year expected to overtake the United States to become the main foreign supplier of the Brazilian economy, if the current trend continues, the Brazilian press reported citing official figures.
The two countries are expected to have ended 2010 with a difference of US$1.5 billion in the United States’ favour in their sales to Brazil, after, in the first 11 months, china accounting for 14.1 percent of Brazil’s imports, which was a new record, as compared to 14.96 percent for the United States.
At the same time, the United States this year is also expected to lose its place as the second most important export destination for Brazil, which if the trend continues, will be occupied by Argentina.
Historically-speaking The United States has been the biggest buyer of Brazilian products, but lost that position in 2009 when China became the most important destination, and the US is expected to end 2010 with the lowest level of Brazilian exports since 1989.
Figures from the Brazilian Ministry for Development, Industry and Foreign Trade showed that in 2002 the united States was responsible for 25.4 percent of Brazil’s exports, in 2009 the country accounted for 25.4 percent of Brazil’s exports, in 2009 for just 10.2 percent, and in the first 11 months of 2010 that percentage fell to 9.4 percent.
In their turn, Brazilian exports to China saw the opposite happen and have been growing continuously since 2000, driven by sales of soy and iron ore, rising from 1.41 percent of total exports in 1999 to 13.7 percent of the total ten years later and 15.6 percent in the first 11 months of 2010. (macauhub)