Brazil’s fertilizer imports from Canada increase by 174%

According to the Quick Trade Facts study prepared by the Brazil-Canada Chamber of Commerce (CCBC), Brazil and Canada are on course to achieve the greatest trade level ever witnessed in the history of the two nations in 2022, driven mostly by increased numbers of business exchanges, including new fertilizer deals.

In 2021, the trade flow – the sum of imports and exports – was the highest in a decade: US$ (FOB) 7.497 billion in total. The closest level was achieved only in 2011 when it reached US$ (FOB) 6.7 billion.

In 2022, with only six months passed, the figure amounts to US$ (FOB) 4.999 billion. According to CCBC specialists, if the trend continues at this pace due to the growth in imports, the trade flow between Brazil and Canada will be the greatest ever seen in the history of both nations.

The lowest level in the last decade was in 2016, when it stood at $4.2 billion. Since then, however, the results have become more expressive – indicating greater complementarity of the two economies in the following years.

Commercial ranking

The total of US$ (FOB) 4.999 billion reached in trade between January and June 2022 represents an increase of 63% compared to the US$ (FOB) 3.07 billion registered in the same period last year. The trade balance was positive for Brazil at US$ 8.55 million.

Considering data for the first half of 2022, Canada ranked 13th as the largest destination for Brazilian exports. However, in the ranking of imports, the North American country was in 10th place.

The “perfect match”

“Brazil and Canada are at a crossroads in their bilateral relationship. Brazilian companies of various sizes and segments, which had previously ignored Canada as a market, are now opening their eyes to the enormous opportunity of exporting and establishing bases of operations in Canadian territory,” says Paulo de Castro Reis, director of Institutional Relations at CCBC.

“Companies are recognizing that this ‘new bridge’ will subsequently assist sales expansion and entry into the US and even European markets,” he says.

See the chart below for a track record, in terms of volume, of Brazilian fertilizer imports from Canada. The data below is from DataLiner.

Fertilizer imports from Canada | Jan 2021 – Jun 2022 | WTMT

Source: DataLiner (click here to request a demo)

Castro Reis also recalls a recent CCBC initiative that has contributed considerably to the arrival of new Canadian businesses in Brazil.

“CCBC recently created the Canada Hub, which gives incentives to Canadian firms looking to establish themselves in Brazil. We provide virtual or physical office space, a tax address, and assistance mapping the potential for the company’s growth. Several Canadian corporations have expressed interest in this action.”

Looking at exports

Shipments to Canada totaled US$ (FOB) 2.499 billion in the first half of 2022, an increase of 16% compared to the same period of the previous year when foreign sales of US$ (FOB) 2.163 billion were recorded.

The main highlights in Brazilian exports to Canada during the period were: inorganic chemicals (aluminum oxide, silicon dioxide, and divanadium pentoxide, used mainly in the pharmaceutical, automotive, glass, and ceramic industries) with a high of 34%; sugars and baking products (+28%); and pearls, metals and precious stones (+17%).

Cotton (897%) and aluminum (571%) saw the most significant growth percentages, despite little importance in Brazil and Canada’s export agenda. In addition, exports of animal protein increased by 44%, works of cast iron and steel increased by 246%, and airplanes and spacecraft advanced by 264%.

Source: Folha do ABC

To read the full original article, please go to: http://www.folhadoabc.com.br/index.php/secoes/negocios/item/23467-importacao-de-fertilizantes-do-canada-tem-aumento-de-174-entre-janeiro-e-junho

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