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Break through hundreds of billions of dollars! Population, also love to buy, the country or will become the next foreign trade outlet!
Oct 09,2023
From January to August this year, the total bilateral trade between China and Brazil exceeded 100 billion US dollars. Brazil has always been expected to become the next emerging developing country with global influence.
Total bilateral trade between China and Pakistan reaches 97-year high
Since 2009, China has been a major exporter to Brazil and a major importer of Brazilian products. China mainly exports industrial manufacturing products, while Brazil mainly exports agricultural products and energy and mineral products.
Although the current world market is full of uncertainties, the bilateral trade volume between China and Pakistan still reached 102.618 billion million US dollars from January to August 2023, the highest in the same period since relevant statistics were available in 1997.
Among them, Brazil's total exports to China were 67.883 billion US dollars, an increase of 6% year-on-year; Brazil's total imports from China were 34.735 billion US dollars, a year-on-year decrease of 12.6.
Why choose Brazil?
First, Brazil has enabled RMB settlement, which can reduce trade costs.
In March of this year, the Central Bank of Brazil announced that the renminbi has surpassed the euro to become the country's second largest international reserve currency.
According to a report released by Brazil's central bank, the yuan appeared in Brazil's international reserve currency for the first time in 2019. By the end of 2022, the renminbi will account for 5.37 per cent of Brazil's international reserves, exceeding the euro's 4.74 per cent.
A statement from the Brazilian Trade and Investment Promotion Agency announced that Brazil has reached an agreement with China to allow bilateral trade transactions in national currencies. In large-scale trade and financial transactions, China and Pakistan can bypass the US dollar as an intermediate currency and directly exchange RMB and real for each other.
For bilateral trade, the agreement of local currency settlement will reduce the cost of trade services and improve the level of trade facilitation. In May this year, China and Pakistan announced that they would no longer use the US dollar as an intermediate currency and completed the first cross-border RMB settlement business.
Second, the risk of default in Brazil is relatively small. The problem of buyer's payment arrears has always been a pain for export enterprises, but from the data point of view, the risk of exporting to Brazil will be smaller than that of other countries.
In the China Credit Insurance SMERI index, the overall credit risk of transactions between small and medium-sized enterprises and Brazilian enterprises is rated as "medium", and shows a downward trend year by year.
The survey shows that Brazil's demand for imports of Chinese goods and services may increase; the standardization of trade laws and regulations may increase; the level of tariffs on Chinese goods exported to the country may remain unchanged; the intensity of anti-dumping and countervailing measures against Chinese exports may remain the status quo; the intensity of hidden trade barriers to Chinese exports may not change significantly.
In 2008, Standard & Poor's rated Brazil as a "reliable investment" for the first time. Brazil has thus entered the ranks of countries with reliable foreign investment that do not have the risk of default.
Finally, the most important thing is that Brazil has a large population and loves to buy and buy.
The Latin American market is in a period of demographic dividend, with a total population of 0.66 billion, of which Brazil accounts for 0.212 billion, making it the most populous country in Latin America. Is a more potential market, but also China's foreign trade companies and independent foreign trade people cluster place.
Although Brazil's overall economic situation has been poor in recent years, Brazil's e-commerce market has broken ground in a depressed market environment, growing by 13% against the trend.
Brazil has excellent e-commerce congenital conditions. The online shopping group is huge, and the number of Internet users is as high as 0.13 billion, accounting for 61% of the total population; as the world's 9th largest e-commerce body, its e-commerce retail only accounts for 5% of the retail market. The potential that can be tapped cannot be ignored.
Export Brazil recommendation
1. are familiar with the Brazilian customs clearance rules. The Brazilian government requires import licenses (automatic import licenses and non-automatic import licenses) for all imported goods.
2. Brazil is one of the countries with the most trade barriers in the world. One is tariffs, the other is anti-dumping, countervailing and other restrictive measures, and the third is other trade protection measures.
3. Brazilian law is different from common law and civil law, it is a mixture of Portuguese law and Napoleonic civil law, and there is no civil or commercial judicial assistance treaty between China and Brazil as a basis for the enforcement of litigation decisions.
If foreign creditors bring a lawsuit in Brazil, it is best to choose a larger international city, where judges usually have more business experience.
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