Brazil and Canada strengthen commercial relations

Volume of 2021 exports and imports confirms commercial exchange positive trend

By Sérgio Siscaro

An optimistic atmosphere for economy recovery took over throughout 2021, after the peak of the Covid-19 pandemic and the damages the coronavirus caused in 2020 were overcome. This contributed for the constant intensification of commercial exchange between Brazil and Canada throughout the year. 

According to trade balance information, the trade chain (sum of imports and exports) between the countries rose 21.5% in 2021, jumping from US$ (FOB) 6.153 to US$ (FOB) 7.478 billion. Quick Trade Facts’ data, produced by the Brazil-Canada Chamber of Commerce (CCBC), indicate this growth was consistent, raising steadily each trimester – from US$ (FOB) 1.4 billion between January and March up to US$ (FOB) 2.4 billion between October and December.

The trade chain shows the consistent growth process of interchange between Brazil and Canada throughout the last years. In 2016, the export and import volume totaled US$ (FOB) 4.23 billion – which increased 76.7% last year.

The last Quick Trade Facts edition includes detailed data concerning Brazil and Canada’s commercial exchange in 2021 and is available at this link.

Manufactured products stood out

Brazilian sales in Canada totaled US$ (FOB) 4.9 billion in 2021 – an increase of 16% compared to 2020, when the number was US$ (FOB) 4.23 billion. According to CCBC’s Quick Trade Facts’ analysis, the upsurge of manufactured products in the export scenario draws attention, rising from 34.8% to 39.2%. An increase in sales of basic products was another highlight: from 7% to 7.5%. However, there was also a fall in semi manufactured products’ numbers from 58.1% to 53.2%.  

Among the products exported to Canada, a very shiny group stood out: natural or cultured pearls, precious or semi precious stones and equivalents, precious metals, metal clad and derived products; costume jewellery; and coins. These products accounted for US$ 1.59 billion in sales last year, which corresponds to 32.4% of total Brazilian exports to Canada in 2021.

Quick Trade Facts also analyses products that, although still modest, show a growth trend and may be important for Brazilian exporters interested in the Canadian market. Some examples which sales increased between 2020 and 2021 are: fish, crustaceous and shellfish (167%); oilseed seeds and fruits, grains, seeds, and fruits, industrial or medicinal plants, hay and fodder (121%); milk and dairy (115%); meats and offal (98%) and sugars and pastry products (56%).

Booming imports

Canada’s imports’ market reversed the slow scenario of 2019-2020, when growth reached 20.25%. The commercial exchange between the two countries regained importance and, in 2021, totalled US$ (FOB) 2.57 billion, an increase of 33.8% when compared to the US$ 1.9 billion of the preceding year.

The proportion of semi manufactured products acquired in Canada is increasing consistently: numbers grew 45.4% between 2019 and 2020 and 58.9% between 2020 and 2021. The percentage of manufactured products and basic products, in turn, decreased respectively from 48.1% to 36% and from 6.4% to 5.2%.

Other groups stood out: potassium chloride totaled US$ (FOB) 1.42 billion (increasing 73%); thrust turbo-reactors superior to 25 kilonewtons totaled US$ (FOB) 77.9 million (growing 85%) and other wastes and iron or steel residues totaled US$ (FOB) 26.4 million (almost tripling the preceding year’s number).