Advances in exports contributed to the positive balance for Brazil totaling US$ 659.3 million (FOB) between January and March, an increase of 37% over the same period in 2023
By Marcel Salim
Exports from Brazil to Canada reached the highest level ever recorded during a first quarter in 2024, totaling US$ 1.253 billion (FOB), which represents an increase of 3% compared to the same period in 2023. This is what compiled data show by the Quick Trade Facts study, prepared by the Chamber of Commerce Brazil-Canada (CCBC).
The advance contributed to the bilateral balance ending the quarter with a positive balance for Brazil of US$659.3 million (FOB). The figure represents an increase of 37% over the same period in 2023, when the result had been just US$481.8 million.
“Despite the lower figures in the first quarter, which was seasonally unfavorable, we believe that the constant growth in results – year after year – reflects the efforts dedicated to carrying out an extensive agenda of meetings and initiatives to strengthen business between Brazil and Canada”, says Ronaldo Ramos, president of CCBC.
Between January and March 2024, Canada ranked 12th in the ranking of the main destinations for Brazilian exports. In terms of imports, the North American country ranked 21st.
In the first three months of this year, the trade flow – which represents the sum of imports and exports – totaled US$ 1.847 billion (FOB), a drop of 5.4% compared to the US$ 1.952 billion (FOB) achieved in the same period of the previous year.
Expanding ties
“Canada has become a solid ally of Brazil, making important investments in key areas. The continuous increase in bilateral trade demonstrates that there is still vast potential to be explored between the two countries”, assesses Daniella Leite, director of Associates and New Business at CCBC.
The executive recalls that, on average, CCBC carries out eight commercial missions from Brazil to Canada each year, related to topics such as: artificial intelligence, food and beverages, mining, Industry 4.0, innovation in health and the medical-hospital system, technologies clean climates, energy transition, executive education and even creative economy.
“An even more intense agenda of meetings is already in place this year, providing Brazilian businesspeople with all the support they need to internationalize their businesses. Canada stands out as an excellent gateway for products in markets such as North America, Europe and even Asia”, adds Daniella.
Exports and imports
The main highlights in Brazilian exports to Canada and with the greatest weight in the trade balance in the period were: precious stones and metals, including gold (28% of total exports); alumina (aluminum oxide), representing 23% of the total; aircraft and equipment, including their parts (9.9%); and sugars and molasses (6.1%).
Purchases of Canadian products totaled US$593.9 million (FOB) between January-March 2024, decreasing 19.2% compared to the same period in 2023, when they totaled US$735.1 million (FOB).
The drop, in particular, remains attributed to the purchase of fertilizers, which gained prominence in 2022 due to the start of the conflict between Russia and Ukraine, but which were reduced over the last year.
Imports in this category totaled US$237 million (FOB) in the first three months of this year. The total value is 44% lower compared to the US$424 million seen in the same period of 2023. Despite the decline, fertilizers continue to lead the most purchased products in Canada, with a weight of 40% in total imports.
Among other products highlighted in imports are: non-electric motors and machines which, in turn, registered an increase of 190%, to US$ 68.2 million (FOB); and aircraft and other equipment (including their parts), up 12.4%, to US$50.6 million (FOB).
