Trade relations between Brazil and Portugal are still small compared to other countries. For the director of the Luso-Brazilian Chamber of Commerce and Industry and coordinator of the organization’s innovation committee, José Manuel Diogo, there is room to increase these negotiations. “Brazil can use the Portuguese market as a facilitator to enter the European Union”, he says.
Today, the Portuguese import from Brazil less than 3% of their total purchases abroad and only 0.8% of Brazilian exports are destined for Portugal. In the overall ranking, Portugal occupies the 31st place among Brazilian export partners, with a balance of US$ 951.6 million (R$ 4.8 billion in today’s exchange rate, 30/7).
However, Brazil can increase its exports to Portugal by up to 74%, without making any structural changes, says the director. Diogo explains that Brazilian producers can use points in common – such as the same language and history – to enter the Portuguese market.
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Products like fresh fruit have great potential for growth. At the beginning of 2021, there were more than 27 thousand exporting companies in Brazil. Of these, only 345 companies imported directly to Portugal last year, with a purchase volume of US$ 1.6 million (R$ 8.1 million), according to data from the Portuguese-Brazilian Chamber of Commerce and Industry.
“The Brazilian trader has to stop thinking of Portugal as just an export country and understand that improving these relations can be the entrance to Europe. With more structured agreements, it is possible to issue the European Certification for Brazilian products. With this document alone, the product is already valued 4 times higher”, explains the director.
According to Diogo, the diplomatic relationship between Brazil and Portugal is not yet optimized and this needs to be improved. Another point that may facilitate the entry of Brazilian products into the European market is the updating of export systems, which are still very much linked to paper, to a digital medium.
Products with potential
Guavas, mangoes, papayas, soybeans and cotton are the agribusiness products with the greatest potential for expansion in Brazilian exports to Portugal. In the services sector, information technologies are at the forefront, according to a study carried out by the Luso-Brazilian Chamber of Commerce and Industry, at the request of APEX-BRASIL.
Still on fruit, the study indicated a recent demand for açaí in Portugal. The fruit has been consumed more frequently in the country. In the coffee sector, the analysis of the Gross Export Expansion Potential (PEEB) indexes indicates roasted coffee, not decaffeinated, as the product with the most potential.
In the sparkling wine sector, although the market is still small in Brazil, it has the greatest potential for growth and is responsible for 89.4% of imports that Portugal makes from Brazil in the wine sector. In fashion, swimwear, with bikinis and swim trunks, and knitted panties are the most sought after items by the Portuguese.
In e-commerce, in 2020 Brazil exported more services to Portugal than in the previous four years. An increase of more than 85%, with information technology services being the main responsible for this change. The survey highlights five factors that contributed to this increase: technical competence, exchange rate advantage, exemption from export taxes, lack of logistics costs and a common language.
According to Diogo, the technology of this study it can be applied in any productive sector. The study methodology, developed to identify sectors and products with the greatest export potential from Brazil to Portugal, also aroused the interest of other institutions. The objective of the Chamber is to expand the research and create a platform that can help investors in making decisions about products with the greatest export potential.
The Chamber also released, exclusively for the reader of Dinheiro, the study in its entirety. check out here.
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