The trade deficit between Russia and Brazil reach US$4.1 billion in 2021

Russia, an essential supplier of fertilizers, more than doubled its exports to Brazil last year. In fact, Brazilian foreign purchases of Russian products rose 107.4% in 2021 vis-a-vis the previous year. On the other hand, Brazilian exports to Vladimir Putin’s country grew last year but at a much lower rate of 4.2%. As a result, in 2021, the trade deficit between Russia and Brazil has grown to never-seen levels.

Last year, the Brazilian negative bilateral trade balance went from US$ 1.22 billion in 2020 to US$ 4.11 billion, the worst trade deficit between Russia and Brazil since the Secretariat of Foreign Trade (Secex) started keeping records in 1997.

Organic or chemical fertilizers were the products most imported by Brazil, accounting for 62% in 2021. The rest of Brazil’s imports were coal, fuel (which accounted for 16%), and semi-finished iron and steel products (6.5%).

Agricultural commodities and animal protein dominated Brazilian exports to Russia. Soybeans were the most popular export in 2021, accounting for 22% of total exports, followed by poultry meat (11%), unroasted coffee (8.4%), sugar (8.4%), peanuts (8.2%), and other meats (7.3%).

Since 1997 (except for 2000), bilateral trade with Russia had been operating in a surplus for Brazil up until 2017. However, a deficit has become the norm since then, which became even more pronounced last year. The subtle change can be attributed to the strength loss among Brazilian exports.

In 2011, exports led to a revenue of US$ 4.2 billion. The peak of Brazilian shipments to Russia occurred in 2008, generating US$ 4.6 billion, of which US$ 2.5 billion came from meat, including beef, pork, and poultry, and US$ 1.2 billion, from sugar. That year, the Brazilian surplus with the Russians reached US$ 1.3 billion. The most significant positive balance in favor of Brazil in the Secex series was seen in 2006: US$ 2.5 billion.

Source: Valor Econômico

To read the full original article, please access:

https://valor.globo.com/brasil/noticia/2022/02/17/deficit-de-us-41-bi-com-russos-em-2021-foi-recorde.ghtml

Sharing is caring!