Brazil’s machinery exports to UAE increase

Brazil’s exports of machinery and equipment to the United Arab Emirates grew 400% in January this year compared to the same month last year, going from USD 4 million to USD 23 million, according to data released on Wednesday (26) by the Brazilian Machinery and Equipment Industry Association (Abimaq) in an online press conference.

Despite the strong increase in sales to the UAE, the sector exported less overall last month. According to data from Abimaq, USD 818.3 million worth of machinery was exported in January, a decrease of 22.3% compared to January 2024 and 25.5% compared to December. The most significant declines were observed in shipments to Mexico and the United States.

According to Abimaq’s Executive Director of Foreign Markets, Patrícia Gomes, the institution is still trying to understand the reasons behind the decline in January and is evaluating whether this trend will continue throughout the year. However, she believes it is unlikely that the reason is the steel tariffs announced by U.S. President Donald Trump.

“We have also raised the hypothesis of the auditors’ strike, which was intensified by the Federal Revenue Service, and the zero clearance, which may have affected both imports and exports. We need to see if this will continue in the coming months to identify the reasons,” she said. “We hope it’s just for January,” she added.

Total revenue from machinery in January
The revenue of Brazilian machinery and equipment industries, however, rose last month. It reached BRL 20.49 billion [USD 3.55 billion], an increase of 19.5% compared to January 2024, mainly driven by sales of consumer goods machinery, renewable energy, and the oil sector. Abimaq attributes these positive numbers to a recovery after years of weak performance.

Imports, on the other hand, increased, and this is concerning for Abimaq. The rise was 19.3% compared to January 2024, reaching a total of USD 2.7 billion in imported machinery, the highest amount for January months. China was the main origin of the industry’s products, accounting for 35.7% of imports, followed by Germany (14.1%), the U.S. (13.3%), Italy (6.5%), Japan (3.3%), and South Korea (1.3%). “Imports are a cause for concern because this shows that the industry has lost competitiveness over the years, and this is difficult to recover,” said Gomes.

The agricultural machinery industry recorded a 23.3% increase in sales in January compared to the same month last year, reaching BRL 4.2 billion (USD 727 million). According to the president of the Agricultural Machinery and Implements Sector Chamber at Abimaq, Pedro Estevão, this increase is attributed to a weak comparison base with January 2024, which was marked by severe drought and uncertainties in the agribusiness. The industry expects exports to grow by about 8% in 2025 compared to 2024.

Source: ANBA

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