Brazil-Canada trade hits record high in 2022

The trade flow between Brazil and Canada – the sum of exports and imports – ended 2022 with a record result and reached, for the first time, the US$ (FOB) 10.5 billion mark. The result confirms the strong upward trend observed in trade relations between the two countries throughout the year, according to data compiled by the Quick Trade Facts study of the Chamber of Commerce Brazil-Canada (CCBC), based on trade balance information from the Ministry of Finance. The figure represents a 41% growth compared to the US$ (FOB) 7.497 billion recorded in 2021.

The director of Institutional Relations at CCBC, Paulo de Castro Reis analyzed the results and affirmed that Canada has entered the radar of Brazilian companies, whether for those who want to internationalize, expand business, or create bases of operations in North America.

“Besides that, 2022 was marked by major events and trade missions from various strategic sectors, helping investors from Brazil to get to know not only the Canadian innovation ecosystem, but also to have the chance to share knowledge and ideas to enter into new partnerships and business agreements.”

Another important data is that the lowest level observed in the last decade in trade relations between the two countries was in 2016, when imports and exports totaled US$ 4.2 billion. From then on, however, the numbers became more robust, pointing to a greater complementarity of the two economies in the following years.

Fertilizer imports in focus

The conflict between Russia and Ukraine has stimulated Brazilian fertilizer purchases in Canada, although the Russians will remain the main suppliers of fertilizers to Brazil in 2022. Besides new business deals, the progress in the bilateral relationship was driven by the significant increase in Brazilian purchases in Canada, especially of fertilizers. That is, purchases of Canadian products doubled to US$ (FOB) 5.186 billion in 2022, an increase of 101% compared to January-December 2021, when they totaled US$ (FOB) 2.575 billion.

Among the main products purchased by Brazil, the chemical industry (especially fertilizers or chemical fertilizers) remained in the spotlight. The purchases of these products grew 151% to US$ (FOB) 3.7 billion, representing 72% of the total imported by Brazilians.

While the transformation industry products accounted for 4.8% of total imports, totaling US$ (FOB) 251 million, Brazilian imports of aircraft and other equipment reached US$ (FOB) 224 million, equivalent to 4.3% of total imports by Brazil.

See below a history of Brazilian imports from Canada. The data is from DataLiner:

Brazilian Imports from Canada | Jan 2019 to Dec 2022 | TEU

Source: DataLiner (click here for a demo)

Exports continue at full speed

At the same time, shipments of Brazilian products to Canada last year totaled US$ (FOB) 5.382 billion, exceeding by 9% the 2021 exports, when they totaled US$ (FOB) 4.922 billion.

The main products in Brazil’s export list to Canada and with the greatest weight in the trade flow were: gold (26.5% of total exports); alumina (aluminum oxide, except artificial corundum), with 26.4% of the total; and sugars and treacle (9.4%).

From the agribusiness point of view, shipments of poultry meat and its offal (edible, fresh, chilled or frozen) grew 16% in 2022, totaling US$ (FOB) 53.2 million, compared to US$ (FOB) 7.35 million in the previous year. In this market, the highlight was the sale of beef, which rose 255% in the amount of US$ (FOB) 13.9 million to US$ (FOB) 19.3 million.

The following is a history of Brazilian exports to Canada from January 2019. The data is from DataLiner:

Brazilian Exports to Canada | Jan 2019 to Dec 2022 | TEU

Source: DataLiner (click here for a demo)

Positive trade balance

Brazil ended 2022 with a surplus of US$ (FOB) 196.3 million in the trade flow between the two countries. While Canada ranked 12th in imports to Brazil, the North American country remained in 13th position as the largest destination for Brazilian exports.

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