Brazil eyes Arab markets to offset export losses from U.S. tariff hike

A survey by the Arab-Brazilian Chamber of Commerce has identified opportunities to expand Brazil’s exports to Arab countries in light of the 50% surcharge imposed by the United States on various Brazilian products since August 6. The analysis mapped the items most affected by the new tariff hike, their import volumes in the Arab world, and potential substitute markets to absorb part of the redirected Brazilian production.

According to O Estado de S. Paulo, the study covers 13 products that, over the past five years, ranked among Brazil’s top exports to the U.S. and that show potential for growth in the Arab market. For each item, three countries with the greatest purchasing capacity were identified. The findings primarily point to agribusiness, which already accounts for 76% of Brazil’s sales to the 22 countries of the Arab League.

Green coffee leads the list of products with the highest potential. In 2024, Brazil exported US$513.83 million of unroasted coffee to Arab countries, compared with US$1.896 billion to the U.S. Saudi Arabia, which imported US$400 million of the product that year, purchased only US$49.12 million from Brazil, signaling room for growth. Kuwait and Algeria are also seen as strategic markets.

In beef, Egypt, the United Arab Emirates, and Saudi Arabia are identified as promising destinations for investment. In 2024, Egypt imported US$927.12 million worth of beef, with US$273.07 million coming from Brazil. Overall, Brazilian beef exports to the Arab bloc totaled US$1.211 billion, surpassing the US$885 million sold to the U.S.

Some products currently shipped to the U.S. have little to no presence in the Arab market but show potential for growth, such as semi-finished iron or steel products, coniferous wood, construction machinery, and loaders. The tariff advantage is significant: while the U.S. surcharge raises the rate to 50%, Arab markets charge between zero and 12% for these items.

For unroasted coffee, the tariff is zero; for frozen beef, it ranges from zero to 6%; for sugar, zero to 20%. Refined petroleum, another top Brazilian export to the U.S., faces a 50% tariff in the American market but only 5% in the Arab League.

According to the Chamber, the aim is to reduce the impact of the American tariff — which combines a 40% surcharge with the 10% duty already in place since April — and to strengthen trade relations with the Arab world. The institution cross-referenced data on the 20 main products exported to the U.S., the top Arab importers, and the tariffs applied, considering only those subject to the full 50% rate.

The Chamber’s secretary-general, Mohamad Mourad, stressed that “Arab countries have population and economic growth above the global average, have a young population, and Brazil is an important provider for their food security.” He believes beef and coffee can be placed immediately in the Arab market, even if not all U.S. demand can be absorbed.

In 2024, Brazil recorded a record US$23.68 billion in exports to the bloc, with a surplus of US$13.50 billion. The UAE, Egypt, and Saudi Arabia were the top buyers.

According to the report, the Chamber suggests government and private sector action on three fronts: awareness, trade diversification, and facilitation. Proposals include promoting competitive products, supporting adaptation to local requirements — such as halal certification — and strengthening trade agreements.

Also on the agenda are measures to ease business visas, organize trade missions, and attract investment. The entity advocates expanding Mercosur’s free trade agreements with Arab countries, citing the example of the 2010 deal with Egypt, which nearly doubled Brazilian exports to the country. Current advanced negotiations involve the UAE.

Mourad says the timing is favorable and that “the government knows how to work this region very well, understands its economic weight and consumption potential, and respects the importance of the Arab world.” He highlights Egypt, Algeria, Iraq, and Libya as markets that deserve special attention, whether due to their economic strength, existing agreements, or consumption potential.

Source: Brasil 247

Sharing is caring!