Brazil-China relations set for new trade record, says Alckmin

On Monday (Aug 5), acting President of the Republic Geraldo Alckmin emphasized the robust trade relationship between Brazil and China, noting that trade saw a 7.4% growth from January to July this year compared to the same period in 2023. He anticipates that 2024 could mark a new record in trade between the two nations.

Participating via videoconference in the closing of the Brazil-China Business Council Seminar held in São Paulo, Alckmin advocated for continued progress in trade and investment, particularly in the industrial sector.

“We want to neo-industrialize Brazil. There is no economic development without industry and no social development without industry. So we want neo-industrialization, which is important, and densification of production chains,” said Alckmin, who also serves as the Minister of Development, Industry, Commerce, and Services. President Luiz Inácio Lula da Silva is currently in Santiago, Chile, for a state visit and the signing of several bilateral agreements.

Alckmin highlighted Brazilian exports to China in food, oil, iron ore, and cellulose sectors. He anticipates that the New PAC (Growth Acceleration Program) will create numerous opportunities in infrastructure, logistics, transportation, and energy. “The tax reform will boost industry and bring more investment and exports because it eliminates cumulative effects, so it completely relieves investment and exports,” he said.

The chart below shows Brazil’s top containerized exports to China in the first six months of the year. The data is from DataLiner.

Top Containerized Exports to China | Jan-Jun 2024 | TEUs

Source: DataLiner (click here to request a demo)

Alckmin cited a study by the Institute of Applied Economic Research (Ipea), which projects that over 15 years, the tax reform could generate a 12% increase in Brazil’s Gross Domestic Product (GDP), a 14% increase in investment, and a 17% increase in exports.

The seminar coincides with the celebration of 50 years of diplomatic relations between Brazil and China. For 14 years, China has been Brazil’s largest trading partner, with trade totaling more than US$157 billion in 2023. Last year, Brazil’s trade surplus with China was US$51.1 billion.

Source: Agência Brasil

Click here to read the original news report: https://agenciabrasil.ebc.com.br/economia/noticia/2024-08/relacao-brasil-china-deve-bater-novo-recorde-comercial-diz-alckmin

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