Basic products are half of what country exported in 2018, show government data

Half of Brazilian exports made last year was of basic products, according to data from historical series of foreign trade offered by the Ministry of economy. Products classified as are those who do not have basic technology involved or finishing, such as minerals, fruits, grains and meats, for example. In all, last year, foreign sales totaled $ $239 billion, of which US $ $119 billion (49.7%) refer to basic items. According to the federal Government, the proportion is the highest since the beginning of the series, in 1980, that is, the highest in 38 years. According to the Ministry of the economy, exports of basic items grew 17.2 percent last year, more than two times above the (industrialized) manufactured expansion: 7.4%. To listen analysts by G1, Brazil needs to increase the export of industrial products because it can help in the generation of employment and income. Export of manufactured goods On the growth of exports of basic products, Brazil has registered in recent years drop in foreign sales of manufactured products. In 2018, for example, the industrialized products represented 36.07% of exports, one of the lowest levels of the historical series. What analysts say To Jose Augusto de Castro, President of the Brazil's foreign trade association (AEB), the country needs to accompany the world movement, according to him, seeking to increase exports of manufactured goods. Castro says, still, it would be better if the Brazil resume heights achieved in previous years, with a lower proportion of sales of commodities. "We want to get back to what it was in the past [when the participation of manufactured goods was higher]. All countries around the world struggle to export manufactured goods. The Brazil cannot be different. There is a greater generation of jobs and expansion of markets [with the industrial sale]. For exporting companies, there is a level of permanent update [technology], "he said. José Augusto de Castro evaluates need to advance structural reforms to Brazil have more competitiveness and export more manufactured goods. According to Diego Bonomo, Executive Manager of international affairs at the National Confederation of industry (CNI), the advantage of exporting industrial products is the largest generation of employment and income for the country. In 2019, Castro noted, the Brazilian trade surplus should fall for the world economy is slowing and, with that, the prices of commodities is also lower-affecting the Brazilian foreign sales. After registering a surplus (exports minus imports) around $ $60 billion in 2018, the entity estimates a positive trade balance of only $ $32 billion this year. Buyers markets The Government data show that China and Europe have received the basic Brazilian products last year, while the United States stood out in the purchase of manufactured goods. See the main products bought by China last year: soy oil, raw iron ore iron beef cellulose in raw cotton chicken meat To the European Union, there was also an emphasis on basic products: soybean meal, ore of iron, cellulose, coffee beans, raw soy oil, copper ore. In the United States, an increase of 6.6% of the exports was influenced by sales growth of semimanufaturado steel, crude oil, aircraft engine parts, earthmoving machinery. "Brazilian exports to the United States in 2018, were mostly of manufactured goods (around 60%). The US market is consolidated as the biggest destination of processed products from Brazil, "said the Government. Rise of China Second Diego Bonomo, the CNI, the rise of China over the past 20 years as a producing country of manufacturing changed the "trading systems" of the brazilian economy, which went from exporting mainly processed for selling products without finishing. "Internally, we have a productivity challenge, which is low and is stagnating for almost 10 years. The agriculture had a granho of significant productivity. But perhaps what else explains is the external factor, especially China, "he said. According to the analyst, the growth of China as a producer pulled the so-called "boom" of "commodities" (high mineral and petroleum prices, acquired by the Asian economy as input to your production) that has occurred since the 2000. He noted that China has operated with devalued in recent decades, which cheapened their industrial products, with labor rules "below" and with massive State subsidies, reducing their products and making competition with the Brazilian manufacturers abroad.