Record high for U.S.-bound exports from Brazil

Brazilian exports to the United States surged by 10.3%, reaching a record $29.4 billion from January to September this year compared to the same period in 2023, according to the latest Brazil-U.S. Trade Monitor report. There was a 13.8% increase in volume, adding approximately 3.7 million more tonnes, per data from the American Chamber of Commerce for Brazil (Amcham).

This outcome positions the United States as the fastest-growing market for Brazilian sales, outpacing the increase in Brazilian exports to the rest of the world, which saw a 0.8% rise.

The growth outperformed transactions with the European Union, which rose by 4.9%, and with China, and South America, which experienced declines of 1.2% and 19.8%, respectively.

“This year is shaping up to be a benchmark in Brazil-U.S. trade, with growth in both exports and imports, leading to an overall increase in bilateral trade,” says Abrão Neto, CEO of Amcham Brazil. “The quality of this growth stands out, with widespread increases across key sectors and a record in industrial goods.”

There was an increase in 8 of the 10 main items Brazil exported to the U.S. during the period. Some highlights include beef, up 107.7%; crude petroleum oils, up 32.5%, which rose to the top of the export list; and aircraft, up 31.9%, moving from third to fourth place. Brazilian imports also rose from January to September, totaling $30.7 billion, a 6.2% increase compared to the same period in 2023. Consequently, Brazil’s trade deficit with the U.S., at $1.3 billion, was the lowest in seven years, a 42.9% reduction compared to the same timeframe in 2023.

The chart below reveals the most exported goods in maritime containers from Brazil to the United States between January and August 2024. The data, extracted from Datamar’s DataLiner platform, comprise only maritime, long-haul shipments.

Top Exports in Containers to the US | 2024 | TEUs

Source: DataLiner (click here to request a demo)

Combining exports and imports, trade between the two countries reached a record $60.1 billion, marking an 8.2% increase over the first nine months of 2023.

Among the imports from the United States, non-electric engines and machinery saw a 24% increase; aircraft and parts grew by 68.6%; natural gas was up 675%; and medications increased by 29.7%.

Compared to Brazil’s imports from the rest of the world during the same period, there was a 25.6% increase in agriculture, 3.4% in extractive industries, and 8.1% in manufacturing. “These figures highlight the U.S. as a strategic supplier, especially in high value-added production chains,” Mr. Neto says.

According to the executive, a key factor for these unprecedented levels is the thriving economies in both countries, which “have been growing at rates higher than projected.”

Additionally, “there are other cyclical and sectoral factors boosting exports,” Mr. Neto points out. In agriculture, he points to examples like orange juice and beef, which are seeing reduced production due to climatic crises and pest issues in U.S. crops.

Regarding the manufacturing industry specifically, the executive notes that some Brazilian products add to the U.S. market, as these items “serve as inputs for its industry.”

Regarding exports, goods from this segment alone accounted for a 7.1% increase, equivalent to an additional $1.6 billion, totaling $23.3 billion during this period. A record for the sector, this result highlights a stronger performance in the first nine months of 2024 for industrial exports to the U.S. compared to other countries, which grew by 1.5%.

As a result, the U.S. remained the top destination for Brazilian industrial exports year-to-date, ahead of markets such as the European Union, with $16.8 billion, and Mercosur, with $13.3 billion, which saw declines in industrial goods exports of 5.7% and 11.7%, respectively.

In Brazilian imports, manufacturing goods from the United States grew by 2.4%, making up 87.4% of the total purchased by the country.

Regarding Brazil’s reindustrialization process, which the Ministry of Industry and Trade is implementing, the Amcham CEO says this initiative is “crucial,” and he points out that the deepening of trade relations between the two countries will be “necessary and beneficial” in this context.

Mr. Neto notes that the growth is occurring at a special time—the year celebrating the bicentennial of diplomatic relations between the two nations. He said, “This celebration underscores the importance of this bilateral partnership.”

Source: Valor Econômico

Click here to access the original text: https://valor.globo.com/brasil/noticia/2024/10/14/exportacoes-para-os-eua-batem-recorde.ghtml

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