Positive balance for Brazil soars 547% between January and September 2023, compared to the previous year, totaling US$ 1.491 billion (FOB)
By Marcel Salim
Brazil’s exports to Canada reached a record level between January and September 2023, surpassing US$ 4 billion for the first time in the history of the bilateral relationship. This is indicated by data compiled by the Quick Trade Facts study, prepared by the Chamber of Commerce Brazil-Canada (CCBC).
Shipments to Canada totaled US$ 4.2 billion (FOB) in the first nine months of 2023, a 5% increase compared to the same period last year, when foreign sales of US$ 3.9 billion (FOB) were recorded.
The strong performance helped the bilateral balance to close with a positive balance for Brazil of US$ 1.491 billion (FOB), a jump of 547% over the same period in 2022, when the result had been negative at US$ 334 million.
“Our assessment is that the growth of exports to Canada will continue steadily. This result reflects an extensive agenda of meetings and initiatives carried out in recent years to further strengthen business between the two countries,” says Ronaldo Ramos, president of CCBC. Canada currently ranks 12th as the largest destination for Brazilian exports. In terms of imports, the country ranks 15th.
Between January and September 2023, the trade flow – representing the sum of imports and exports – totaled US$ 6.85 billion (FOB), a 17% decrease compared to the US$ 8.223 billion (FOB) achieved in the same period last year. The record was set in 2022, when it exceeded US$ 10 billion (FOB) for the first time in 12 months.
Strengthening ties
“Many people still haven’t realized that Canada is already a major partner of Brazil, with significant investments in strategic sectors such as agribusiness, infrastructure, mining, aerospace and defense, among others. We have seen that bilateral trade is growing significantly, and yet there is still enormous potential to be explored,” explains Paulo de Castro Reis, director of Institutional Relations at CCBC.
On average, CCBC carries out eight trade missions from Brazil to Canada each year, related to topics such as: artificial intelligence, food and beverages, mining, Industry 4.0, smart cities, innovation in health and the medical-hospital system, clean technologies, energy transition and even the creative economy.
These are unique opportunities where Brazilian entrepreneurs receive all the assistance and support to internationalize their companies, as well as use Canada as a gateway for their products in North America and even Europe.
DExport highlights
The main highlights in Brazilian exports to Canada and with greater weight in the trade balance in the period were: gold (27% of total exports); alumina (aluminum oxide) representing 22% of the total; aircraft and equipment, including parts thereof (11%), and sugar and confectionery products (9%).
Import surprises
Purchases of Canadian products totaled US$ 2.7 billion (FOB) between January-September 2023, decreasing 38% compared to the same period in 2022 when they amounted to US$ 4.3 billion (FOB). The decline, in particular, is attributed to the purchase of fertilizers, which gained prominence last year due to the conflict between Russia and Ukraine.
Imports in this category totaled US$1.65 billion (FOB) in the period under review, down 50% on the US$3.25 billion seen a year earlier. Despite the drop, fertilizers continue to lead the list of the most purchased products from Canada, accounting for 61% of total imports.
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Access complete data and analysis in the CCBC study: Quick Trade Facts
