The first nine months of 2022 are marked by the increase of Brazilian exports of manufactured goods to Canada and of imports of fertilizers from that country
By Sérgio Siscaro
Brazil increased its imports from Canada between January and September of this year – but also maintained its exports to the country at a high level, thus demonstrating the intensification of trade between the two countries. According to data from the latest edition of the Quick Trade Facts study, prepared by the Chamber of Commerce Brazil-Canada (CCBC) based on Brazilian trade balance data, the trade flow (i.e. the sum between exports and imports) reached a total of US$ (FOB) 8.2 billion in the period – representing a 62.1% increase compared to the US$ (FOB) 5.058 billion recorded between January and September 2021.
According to CCBC’s president, Ronaldo Ramos, this intensification of bilateral trade recorded throughout 2022 is here to stay. “Never in the entire commercial history between Brazil and Canada has such a deep relationship been seen as the current one. Canada is now in the sights of companies that not only want to internationalize, but also expand their businesses and create bases of operations in North America”, he evaluates.
For him, this expansion is proven by events and fairs in various sectors, which have encouraged Brazilian investors to get to know the Canadian innovation ecosystem and to share knowledge and ideas, “thus signing new partnerships and commercial agreements.
Exchanges on the rise
Brazilian exports to the Canadian market in the first three quarters showed an increase of 14%, reaching the amount of US$ (FOB) 3.9 billion. The main products were from extractive industries, especially mining – including base metals, precious metals, and precious stones and mineral oils, in addition to rubber and wood. But the list of sales to the Canadian market also included agribusiness items, such as sugar, coffee and fruit; and manufactured products, such as machinery and electric motors.
In general, there was an increase in the participation of manufactured products, of higher added value, which went from 34.9% to 45.1% – this is due to the increase in sales of calcined alumina and mineral fuels.
In the opposite direction, imports from Canada totaled US$ (FOB) 4.27 million, or 164% more than that recorded between January and September last year. Here the highlight was the chemical industries, with an increase in the purchase of potassium chlorides, used as fertilizers – whose normal supply to the domestic market was affected by the Russian invasion of Ukraine, at the beginning of the year.
There were also purchases of plastic and pharmaceutical products, and there was an increase in the import of machinery and various instruments for industry, as well as horticultural products, such as lentils. There is a strong increase in the participation of semi-manufactured products in Brazil’s purchases – from 49.9% to 76.8%.
Quarterly results
These data are reflected in the isolated result for the third quarter of this year. Between July and September there was a trade flow of US$ (FOB) 3.2 billion – which represents an increase of 61.5% in comparison with the same period of 2021.
Brazilian exports to Canada showed an increase of 11%, from US$ (FOB) 1.275 billion to US$ (FOB) 1.42 billion. As for imports, they showed a 151.1% jump between the third quarter of 2021 and the same period this year, from US$ (FOB) 711.99 million to US$ (FOB) 1.787 billion.
“Canada jumped from tenth to eighth position in the ranking of Brazilian trade partners”, says the director of institutional relations at CCBC, Paulo de Castro Reis. According to him, the results of the quarter show that Canada is already on the radar of Brazilian companies and exporters.
The edition of the Quick Trade Facts study that deals in detail with Brazil-Canada trade in the third quarter of 2022 is available here.
