Brazil-Canada trade goes to record highs; fertilizers stand out

The year 2022 is a milestone in terms of Brazil-Canada relations: the two countries went to a record-high bilateral trade, according to data by Quick Trade Facts of the Brazil-Canada Chamber of Commerce (CCBC).

News business deals and a significant increase in fertilizer purchases by Brazil, which accounted for 76% of all fertilizer imports, were particularly aided by the conflict between Russia and Ukraine.

Between January and September of this year, the trade flow – which represents the sum of imports and exports – totaled US$ (FOB) 8.223 billion (new historical record), surpassing the US$ (FOB) 7.497 billion reached accumulated across the 12 months of 2021.

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

Brazil closer to Canada

The total of US$ (FOB) 8.223 billion reached in trade between January and September 2022 represents an increase of 62.5% compared to the US$ (FOB) 5.05 billion registered in the same period last year. However, the trade balance result in the first nine months of the year was negative for Brazil by US$ (FOB) 333.7 million, impacted by the increase in imports.

Regarding the period of January through September 2022, Canada remained Brazil’s 13th-largest export market. The North American nation rose from position 10 to position 8 in the ranking of imports.

See below the track record of container exports by Brazil to Canada compared to imports in the period between January 2021 and August 2022. The data is from DataLiner.

Brazil-Canada Trade | Jan 2021 – Aug 2022 | TEUs

Source: DataLiner (click here to request a demo)

A “new era” of business

“A relationship as deep as the current one has never been seen in Brazil and Canada’s trade history. Companies that want to not only go global but also expand their businesses and establish operations in North America are now focusing on Canada, which already ranks as the top international destination for Brazilian students, according to Paulo de Castro Reis, director of Institutional Relations at CCBC.

The executive claims that Brazilian companies are starting to take notice of business opportunities in Canada. “The year 2022 was characterized by significant events and trade missions from various strategic sectors, helping investors from Brazil to get to know not only the Canadian innovation ecosystem but also providing a chance to share knowledge and ideas and sign new partnerships and commercial agreements,” he added.

Big leap in imports

Purchases of Canadian products totaled US$ (FOB) 4.278 billion in the first three quarters of this year, soaring 164% compared to January-September 2021 when they totaled US$ (FOB) 1.620 billion.

Among the products most purchased by Brazil, the highlight remains the chemical industry (especially chemical fertilizers), whose increase was 317%, totaling US$ (FOB) 3.2 billion and representing 76% of total imports, mainly driven by conflicts involving the war between Russia and Ukraine.

Nuclear reactors, boilers, machinery, and mechanical devices (including their parts), accounted for 6.3% of the total imported, US$ (FOB) 271 million. At the same time, Brazil spent US$ (FOB) 152 million, or 3.5% of all imports, on aircraft and other equipment.

Exports also advance

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