MercoPress. South Atlantic News Agency

Brazil and Argentina with hefty trade surpluses

Brazil's trade surplus during the first ten months of 2005 almost surpassed the 2004 record, announced Tuesday the Brazilian Central Bank. By the end of October, the surplus was 36,350 billion US dollars while in 2004 it had totalled 33,696 billion.

Brazilian Central Bank estimates this year's total surplus in 38 billion US dollars, even when beef and pork exports have been hard hit by outbreaks of foot and mouth disease in the south of the country which have prompted dozens of countries to temporarily ban imports of Brazilian produce.

In the January-October period, Brazil overseas sales of goods and services reached 96,6 billion US dollars and imports 60, 3 billion.

However in spite of the excellent trade figures exporters are urging the government to contain the appreciation of the local currency against the US dollar which they argue could hinder future sales. A strong currency makes Brazilian goods and services in US dollar terms more expensive abroad and costlier to produce.

Argentina also had a strong showing in foreign trade during September with a surplus of 1,1 billion US dollars, a 2,4% increase over the same period a year ago. However when comparing the first nine months of 2005 with the nine months of 2004, the surplus actually contracted 6,65% in US dollars according to the Statistics and Census Office.

Argentina's January-September trade balance totals 8,9 billion US dollars with exports reaching 29,9 billion US dollars and imports, 20,98 billion. September exports increased 16% to 3,48 billion US dollars and imports jumped 30% to 2,47 billion US dollars.

Manufactured goods and processed agriculture produce plus commodities kept expanding during September both in volume and value. Fuel and energy exports increased in value 10% because of stronger prices (43%) but declined considerably in volume, 23%.

In 2004 Argentina exported 34,45 billion US dollars, with imports totalling 22,32 billion and the overall trade surplus 12,13 billion US dollars.