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iconBrazilian market [   February  2014 ]

 

Brazil is one of the BRIC countries, comprising of Brazil, Russia, India and China. It is the world’s fifth largest country with the biggest population in South America. It is the land of agriculture and tropical rain forest. With rich natural resources and large number of labourers, Brazil has the highest GDP in South America and the world’s tenth highest GDP. IMF estimated Brazilian economic growth at 3.2 percent in 2014.

 

Brazil is a big producer and consumer of rubber in South America. In 2011, Brazil has 184,000 hectares of rubber plantation, of which 134900 hectares are mature area. In 2012, it produced 171,500 tonnes, consumed 343,400 tonnes, and imported 181,100 tonnes with the import value of rubber and rubber articles of US$ 4.54 billion, from USA (14.93%), China (12.47%), Thailand (8.79%), Japan (6.68%) and Malaysia (6.17%). Rubber import value from Thailand accounts for US$399.14 million, among which 64.01% is from rubber sector, 18.95% is from tyre and non-tyre sector and 17.04 from other sector. Brazil consumes natural rubber heavily in automobile industry, accounting for 65%. The rest is consumed for the manufacture of shoes, medical equipments, toys, electronic appliances.

 

Rubber and rubber article industry is considered very significant for the economy of Brazil. Brazil is the world’s seventh biggest automobile manufacturer, with the capacity of 3.4-4.5 million units per year. It comprises of 2,000 rubber and rubber product manufacturing companies, 89,000 labourers, 15 large tyre manufacturing plants, namely Pirelli, Goodyear, Bridgestone, Michelin, etc. However, Brazil encounters obstacles: lower-than-expected economic growth, comparatively low wages, complicated and out-dated tax system, less developed infrastructure, etc.

 

From the above data, it suggests that the vast economic potential and growth of Brazil can affect ASEAN economic growth in general and rubber industry in particular. Thus, government and private sector shall foster investment and international relation with Brazil. One of the approaches to expand the market is participation in trade fair. It gives an opportunity for entrepreneurs to meet potential importers. This year, interesting Brazilian trade fair is EXPOBOR International Rubber Technology Show on 23-25 April 2014 in São Paulo, Brazil.

 

The Thai Rubber Association sees the importance of market expansion, especially Brazilian market and the great benefit of attendance in Brazilian trade fairs. Thai exporters will gain knowledge on new technology and will have opportunity to meet and negotiate with Brazilian importers to foster relationship, which is an important part to push forward Thai natural rubber export to Brazil.

Signature
Mr. Chaiyos Sincharoenkul
President

 

 
 
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