Brazilian exports to exceeded Brazil’s imports from Asian nations by $5.5 billion in 2014. Similarly, Brazil achieved a $5 billion trading surplus with Middle Eastern countries, and generated a $10.2 billion balance from other Latin American countries (excluding Mexico) and Caribbean islands.
The fact that Brazil earns these country-specific trade surpluses indicates Brazilian competitive advantages albeit for a specific set of export products highlighted below.
These major product supply advantages provide a silver lining for the grim fact that Brazil carried a -$4 billion trade deficit during 2014 despite achieving a $16.9 billion surplus in 2010 and a $2.6 billion positive balance for 2013.
Brazil Major Product Supply Advantages
Top 10
Presented in descending order, the following list showcases the general product categories under which Brazil earned the highest trade surpluses in 2014.
- Ores, slag and ash: US$27.2 billion (21.7% of all product surpluses)
- Oil seed: $23 billion (18.4%)
- Meat: $14.9 billion (11.9%)
- Sugar, sugar confectionery: $9.5 billion (7.6%)
- Food industry waste and animal fodder: $7.1 billion (5.7%)
- Coffee, tea, spices: $6.4 billion (5.2%)
- Iron and steel: $6.2 billion (5%)
- Woodpulp: $5 billion (4%)
- Raw hides, skins excluding furskins and leather:$2.9 billion (2.3%)
- Tobacco: $2.5 billion (2%)
The above top 10 product categories represent 83.7% of Brazil’s overall product-category surplus subtotal which amounted to $125.1 billion. For that subtotal, 41 of Brazil’s 97 general product categories delivered a surplus in 2014 while the remaining 56 categories incurred deficits.
Growth
Brazil enriched its trade surplus amounts at the fastest-pace during 2010 to 2014 under the product categories below.
- Tin: Up 1,260% since 2010 (US$167.7 million)
- Paper yarn, woven fabric: Up 801.2% ($18 million)
- Explosives, pyrotechnics: Up 646.4% ($16.4 million)
- Cereals: Up 280% ($2 billion)
- Cotton: Up 180.6% ($1.2 billion)
- Oil seed: Up 109.6% ($23 billion)
- Wool: Up 76.4% ($29 million)
- Raw hides, skins excluding furskins, leather:Up 75.9% ($2.9 billion)
- Iron and steel: Up 69.2% ($6.2 billion)
- Other animal-origin products: Up 53.1% ($478 million)
Detail
From the perspective of the more detailed 4-digit harmonized tariff system (HTS) level, below are 15 products that enabled Brazil to achieve the highest surpluses in its international trade with other countries.
- Iron ores, concentrates: US$25.8 billion
- Soya beans: $23 billion
- Sugar (cane or beet): $9.5 billion
- Poultry meat: $7 billion
- Soya-bean oil-cake, other solid residues: $7 billion
- Coffee: $6 billion
- Frozen beef: $4.8 billion
- Chemical woodpulp (non-dissolving): $4.6 billion
- Corn: $3.8 billion
- Iron ferroalloys: $2.5 billion
- Aluminum oxide/hydroxide: $2.4 billion
- Unmanufactured tobacco, tobacco waste: $2.4 billion
- Gold (unwrought): $2.3 billion
- Iron or non-alloy steel products (semi-finished): $2.2 billion
- Aircraft, spacecraft: $2.2 billion
Among these, soya beans had the fastest-growing Brazilian surplus with a 109.3% gain since 2010. In second place was corn up 78.3% while exported soya-bean oil-cake and other solid residues moved ahead in value by 48.7%.
Brazil Major Product Supply Advantages by Country
Top 10
Presented in descending order, the following list shows with which trade partners Brazil earned the highest trade surpluses in 2014.
- Netherlands: US$9.9 billion (18.6% of Brazilian country-specific surpluses)
- Venezuela: $3.5 billion (6.5%)
- China: $3.3 billion (6.2%)
- Singapore: $2.5 billion (4.8%)
- Hong Kong: $2.4 billion (4.6%)
- United Arab Emirates: $2.3 billion (4.4%)
- Egypt: $2.2 billion (4.1%)
- Paraguay: $2 billion (3.7%)
- Belgium: $1.4 billion (2.7%)
- Iran: $1.4 billion (2.7%)
The above 10 trade partners represent 63.1% of Brazil’s subtotal surplus of $53.2 billion from the 156 geographic entities with which Brazil demonstrated competitive trade advantages. That subtotal excludes the 66 trade partners with which Brazil incurred trade deficits.
Growth
Brazil enriched its trade surplus amounts with the countries below at the fastest-pace during 2010 to 2014.
- Timor-Leste: Up 3,983% since 2010 (US$4.9 million)
- Bahamas: Up 2,274% ($608.5 million)
- Bermuda: Up 877.2% ($27.4 million)
- Montserrat: Up 814.3% ($64,000)
- Chile: Up 706.3% ($960.1 million)
- Solomon Islands: Up 620% ($108,000)
- Aruba: Up 579.9% ($282.2 million)
- Moldova: Up 575.7% ($55 million)
- Zimbabwe: Up 545.6% ($34.7 million)
- Turks/Caicos Islands: Up 533.7% ($8.2 million)
From the above list, Brazil showed major product supply advantages over trade partners with comparatively small populations and for generally small surplus amounts. However, Brazil did generate close to a billion-dollar positive trade balance with Chile.
Netherlands
Below are the products that gave Brazil the highest surpluses in its international trade with the Netherlands.
- Soya-bean oil-cake, other solid residues: US$1.9 billion (19.2% of Brazil’s surplus vs. Netherlands)
- Iron ores, concentrates: $1.1 billion (11.3%)
- Soya beans: $1 billion (10.3%)
- Chemical woodpulp (non-dissolving): $905.6 million (9.2%)
- Flexible base metal tubing: $857.6 million (8.7%)
- Iron ferroalloys: $663.6 million (6.7%)
- Fruit and vegetable juices: $559.8 million (5.7%)
- Taps, valves, similar appliances: $421.7 million (4.3%)
- Salted/dried/smoked meat: $346.1 million (3.5%)
- Crude oil: $344.3 million (3.5%)
Among these, soya beans had the fastest-growing Brazilian surplus with Netherlands posting an 84.1% gain from 2010 to 2014. In second place were taps, valves and similar appliances up 32.3% followed by flexible base metal tubing ahead by 10.4%.
Venezuela
Below are the products that gave Brazil the highest surpluses in its international trade with Venezuela.
- Frozen beef: US$903.9 million (26.1% of Brazil’s surplus vs. Venezuela)
- Live bovine cattle: $560.4 million (16.2%)
- Poultry meat: $428.4 million (12.4%)
- Sugar (cane or beet): $303.1 million (8.8%)
- Other food preparations: $187.1 million (5.4%)
- Medication mixes in dosage: $184 million (5.3%)
- Concentrated/unsweetened milk, cream: $181.5 million (5.2%)
- Prefabricated buildings: $146.2 million (4.2%)
- Rubber tires (new): $125.6 million (3.6%)
- Margarine: $62.4 million (1.8%)
Among these, concentrated/unsweetened milk and cream had the fastest-growing Brazilian surplus with Venezuela posting a 1,429% gain from 2010 to 2014. In second place was margarine up 1,194% followed by poultry meat ahead by 108.2%.
China
Below are the products that gave Brazil the highest surpluses in its international trade with China.
- Soya beans: US$16.6 billion (507.3% of Brazil’s surplus vs. China)
- Iron ores, concentrates: $12.3 billion (375.6%)
- Crude oil: $3.5 billion (106%)
- Chemical woodpulp (non-dissolving): $1.4 billion (43.5%)
- Sugar (cane or beet): $880 million (26.9%)
- Bovine/equine leather: $553.6 million (16.9%)
- Poultry meat: $518.8 million (15.8%)
- Iron ferroalloys: $489 million (14.9%)
- Soya-bean oil: $339.8 million (10.4%)
- Cotton (uncarded or uncombed): $332.7 million (10.2%)
Among these, leather had the fastest-growing Brazilian surplus with China posting a 75.5% gain from 2010 to 2014. In second place was non-dissolving chemical woodpulp up 40.7% followed by soya beans ahead by 39.9%.
See also Brazil’s Top 10 Exports, Highest Value Brazilian Export Products, Brazil’s Top 10 Imports and Brazil’s Top Import Partners
Research Sources:
The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on December 7, 2015
Trade Map, International Trade Centre. Accessed on December 7, 2015
Investopedia, Net Exports Definition. Accessed on December 7, 2015