Another record year for Brazil/Canada bilateral trade. Between January and September of this year, the trade flow – which represents the sum of imports and exports – totaled US$ (FOB) 8.223 billion, surpassing the US$ (FOB) 7.497 billion accumulated in the 12 months of 2021.
According to data from Quick Trade Facts of the Brazil-Canada Chamber of Commerce (CCBC), new business deals and a significant increase in fertilizer purchases by Brazil, which accounted for 76% of all fertilizer imports, were outstanding, helped by the conflict between Russia and Ukraine.
The lowest trade level in the last decade was seen in 2016 when it stood at US$ 4.2 billion. Since then, however, the results have become more solid, indicating a greater complementation of the two economies in the following years.
The total US$ (FOB) 8.223 billion in bilateral trade reached, represents an increase of 62.5% compared to the US$ (FOB) 5.05 billion registered in the same period last year. However, the trade balance result in the first nine months of the year was negative for Brazil by US$ (FOB) 333.7 million, because of the increase in imports.
Regarding January/September 2022, Canada remained as Brazil’s 13th-largest export market. However when dealing with imports Canada rose from position 10 to position 8..
“A relationship as deep as the current one has never been seen in Brazil and Canada’s trade history. Companies that want to not only go global but also expand their businesses and establish operations in North America are now focusing on Canada, which already ranks as the top international destination for Brazilian students,” according to Paulo de Castro Reis, director of Institutional Relations at CCBC.
The executive claims that Brazilian companies are starting to take notice of business opportunities in Canada. “The year 2022 was characterized by significant events and trade missions from various strategic sectors, helping investors from Brazil to get to know not only the Canadian innovation ecosystem but also providing a chance to share knowledge and ideas and sign new partnerships and commercial agreements,” he added.
Purchases of Canadian products totaled US$ (FOB) 4.278 billion in the first three quarters of this year, soaring 164% compared to January-September 2021 when they totaled US$ (FOB) 1.620 billion.
Among the products most purchased by Brazil, the highlight remains the chemical industry (especially chemical fertilizers), whose increase was 317%, totaling US$ (FOB) 3.2 billion and representing 76% of total imports, mainly because of the war between Russia and Ukraine.
Nuclear reactors, boilers, machinery, and mechanical devices (including their parts), accounted for 6.3% of the total imported, US$ (FOB) 271 million. At the same time, Brazil spent US$ (FOB) 152 million, or 3.5% of all imports, on aircraft and other equipment.