Brazil’s trade balance was positive at US$793 million; exports of airplanes, machinery and other aerial vehicles resumed pre-pandemic growth from 47.3% in 2022 to 49.8% in 2023, accounting for nearly 10% of all items purchased by Canada.
Brazil has maintained its growth pace in trade with Canada, with a 3% increase in exports to the North American country in the first half of 2023, according to data from the Quick Trade Facts study by the Chamber of Commerce Brazil-Canada (CCBC). Exports reached US$ 2.575 billion in the period, slightly above the result verified in the same period of 2022, of US$ 2.497 billion. From January to June 2023, the Brazilian trade balance was positive, at US$ 793 million.
In the first half of 2023, the trade flow (FOB) – sum of imports and exports – amounted to US$ 4.357 billion, a 13% decrease compared to the results recorded in the same period last year, of US$ 4.988 billion. The half-year result reflects adjustments in the trade flow between the two countries, which still maintains growth: in the second quarter of 2023 (April-June), the trade flow reached US$ 2.405 billion (FOB), an increase of 23% compared to the numbers in the first quarter of 2023, of US$ 1.95 billion (FOB).
Also in the second quarter, Canada contributed 1.6% of the total outcome in Brazilian product purchases worldwide. This percentage is almost identical to that presented in the same period of 2022. Regarding Brazilian imports from Canada, the percentage decreased from 1.9% to 1.5%, in the quarter, when compared to the same period last year.
Following the record in bilateral trade between Brazil and Canada in 2022 – surpassing the US$ 10 billion (FOB) mark for the first time in history – both countries are expected to continue maintaining their growth pace. The agenda of meetings should further strengthen bilateral business. Recently, President Luís Inácio Lula da Silva met with Canadian Minister of Foreign Affairs, Mélanie Jolie to discuss topics related to the environment, inclusive development, human rights, education, science and technology, innovation, defense, energy and mining. Additionally, the approval of the text-based proposal for Constitution Amendment (PEC) for Tax Reform should also contribute to accelerating business in the coming months.
According to Ronaldo Ramos, president of CCBC, the planned initiatives and trade missions are likely to further encourage business expansion between the two countries. “Strategic partnerships help identify opportunities and broaden companies’ access to different markets. Undoubtedly, Canada is a country that meets all the conditions to enable the internationalization of Brazilian companies”, he assesses.
The executive draws attention to the post-pandemic resurgence of Brazilian manufactured products’ production and the growth of shipments to Canada. The share of this category in total exports increased from 47.3% in 2022 to 49.8% in 2023. Sales of airplanes and other aerial vehicles, as well as machinery, accounted for nearly 10% of all items purchased by Canada.
Paulo de Castro Reis, Director of Institutional Relations at CCBC, agrees that the two countries have never been closer. “Canada is already on the radar of Brazilian companies that not only aim to internationalize, but also expand their businesses and establish operational bases in North America.
Trade missions from various strategic sectors facilitate business growth and the establishment of new partnerships and are expected to remain strong in 2023 and 2024,” he says.
Mining-related products and manufactured goods, such as aircraft and machinery, are prominent in the ranking of Brazilian exports to Canada. Exports of unprocessed gold bullion (gold) for non-monetary use, totaled US$ 672.3 million in the quarter. Exports of meat and edible offal also showed a good result, at US$ 38 million.
The increase in sales of Brazilian manufactured products to Canada – which rose from 47.3% in 2022 to 49.8% in 2023 – corresponds to exports of airplanes and other aerial vehicles, as well as to the increase in exports of machinery. In the semester, US$ 251.6 million worth of goods were traded, accounting for 9.8% of everything Canada purchased from Brazil. Production has returned to pre-pandemic trade results. After the travel restriction period, the aircraft production line resumed its previous levels in 2023.
Brazil recorded a 28% decrease in imports in the first half of 2023, at US$1.782 billion. In the same period last year, the result was US$ 2.490 billion.
The purchase of semi-manufactured products is the most representative, even with the drop from 72.4% to 61.9%, if compared to the same period of 2022. However, Brazil has imported more manufactured items in 2023, with an increased share from 24.4% to 34% this year, growth driven by higher purchases in the aeronautical sector, the plastics industry and pharmaceuticals.
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