Deficit in chemical products totals US$ 31,4 billion in the last 12 months

Brazilian imports of chemical products totaled US$4,5 billion in July, a monthly record in the entire historical series of trade balance monitoring. In comparison with the previous month, June, there was a significant increase of 30,4% in the imported value, while in physical movements, of practically 4,5 million tons, the increase was 19,2% in the same comparison. Despite the timid result of national economic activity in the year, in every month of 2019 imports were more than US$3 billion, with a special effect from the recent exchange rate pressure between June and July, while monthly exports were practically US$ 1 billion, impacted by the trade crisis experienced by Argentina, Brazil's main trading partner in chemical products, and by concerns about a general stagnation of the world economy in the context of the trade war between the United States and China.

So far this year, between January and July, purchases of goods from abroad reached US$ 24,9 billion, which represents an increase of 7,2% compared to the same period in 2018. The volume of imports, of 25 million of tons, a record quantity imported for the period, meant an increase of 13,8% compared to January to July 2018, mainly due to the 16,7% increase in purchases of fertilizer intermediaries, of practically 14,3 million tons, in the current year. Exports, in turn, totaled US$7,5 billion, a reduction of 1,3% compared to the value of the same period in 2018, with great concern about the performance of sales abroad until the end of the year with the negative signs of the global economy.

 With these results, the deficit in the trade balance of chemical products reached, by July, the mark of US$ 17,4 billion, an increase of 11,3% compared to the same period in 2018. In the last 12 months, from August 2018 As of July this year, the trade deficit totaled US$31,4 billion, just below the record of US$32 billion in 2013, with the growing perception that, by the end of 2019, this indicator will be surpassed, even with the still timid recovery of national economic growth and in the midst of the trade war between the United States and China.

 “Undoubtedly, the recent conclusions of free trade negotiations with the two European economic blocs, the European Union and the European Free Trade Association (EFTA), reflect the Government's commitment to promoting responsible international insertion and dialogue with the private sector and in enabling a favorable business environment, with modern, efficient disciplinary texts that leverage safe and fair trade and investment flows. In parallel, in the context of the delicate international economic moment, it is absolutely fundamental to quickly implement a consistent competitiveness agenda, based on national structural reforms, especially Social Security and Tax, and overcoming limitations related to logistics, energy, bureaucracy, among others, for the full use of the trade and investment potential of these new agreements”, highlights Denise Mazzaro Naranjo, director of Foreign Trade Affairs at Abiquim.