AEB: China’s energy crisis could generate opportunities for Brazil to diversify its export basketOct, 13, 2021 Posted by Ruth Hollard
The energy crisis affecting China may generate opportunities for Brazil to add higher value-added products to the export basket of its main trading partner worldwide; the basket is currently heavily concentrated in commodities with a low industrialization rate. This year, 81% of exports to China since January were concentrated in soy, iron ore, and oil.
Soybeans and coffee, currently exported to the Asian country in grain, may be shipped after being processed, adding value. For this, Brazil needs to have enough energy to explore opportunities to export these and other products to China.
“The energy crisis generates a scenario that is beginning to worry the world as a whole, and Brazil is part of the world.” Based on this reasoning, the president of the Brazilian Foreign Trade Association (AEB), José Augusto de Castro, states that “Brazil basically exports commodities and may be able to profit from this situation (energy crisis)”.
However, he adds that for this to happen, “we need to have energy because it is not enough for other countries not to have it and it is essential that Brazil has this resource. And now that the rainy season has started, the trend is for the level of reservoirs to increase and, consequently, energy production. So, I believe that Brazil can take advantage of this situation”.
Source: Comex do Brasil
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