Trades

The Brazilian trade surplus reached record levels for May, at US$6.4bn. It was generated by exports worth US$17.6b and imports of US$11.2bn. For 2016 to date, the surplus stands at US$20bn. This contrasts with the US$2.3bn deficit that accumulated over the same period last year. One sector responsible for the surplus was the car industry, which saw a 40% year-on-year increase in exports in May. The main decline in
imports came from the fuel and lubricants sector, which saw a reduction of 44.3%.

Source: Datamar

BRAZIL INVESTED R$ 26,6 BILLION IN TRANSPORTATION INFRASTRUCTURE IN 2015

Last year, investments in infraestrutrua for transportation amounted to R$ 26.6 billion, combining private and public capital. Recently, major developments took place between the years 2011 and 2014, combining the government ‘s partnerships with the private. Especially the doubling of investments in railways.

Oil and gas output breaks record in August

Brazil’s total production of oil and natural gas in August added up to a daily 2.89 barrels equivalent per day (boe/d): 2.326 million barrels of oil per day (bo/d) plus 90.9 million m³ of natural gas everyday (m³/d). According to the National Agency for Petroleum, Natural Gas and Biofuels (ANP), this is the highest volume ever observed, surpassing the previous month, when the production of oil and natural gas amounted to 2.82 million boe/d.

ANP announced that the oil output also went beyond last month’s 2.267 million bo/d. There has been a rise of 2.6% in the oil output compared to July 2014, and 15.7% against August, 2013. Its natural gas counterpart was 3.4% higher than the rate reported in July 2014 (87.9 million m³/d), and 18.1% above the figure for August 2013.
The presalt production expanded 11% compared to the previous month, totaling 647 thousand boe/d, or 533 thousand bo/d and 18.1 million m³/d of natural gas. The production stemmed from 35 wells, located in the oil fields of Baleia Azul, Baleia Franca, Jubarte, Barracuda, Caratinga, Linguado, Lula, Marlim Leste, Pampo, Sapinhoá, Trilha and in the areas of Iara and   Entorno de Iara.
The use of natural gas in the month stood at 95%, and its burn rate at 4.549 million m³/d—an increase of approximately 1% against the month before, and 38.5% against August 2013. The main reasons for the increase in the amount of natural gas burnt were the platforms P-55 and P-62, located in the Roncador Field, which has recently become operational.
Source: Agencia Brasil

Cuba to import beef and dairy from Brazil

The Cuban government has authorized 37 Brazilian companies to export beef and dairy products to the country following inspections by Cuban representatives, Brazil’s Ministry of Agriculture announced.

The new 37 approved exporters include 23 beef and processed food and 14 dairy and milk powder suppliers. With the approval, the number of authorized suppliers has increased from a previous 48 – 22 beef and 26 dairy producers – to 85. Beef exporters are based in the states of Tocantins, Mato Grosso, Rio de Janeiro, Rio Grande do Sul, Rondônia, Mato Grosso do Sul, Goiás, and São Paulo, whereas dairy suppliers are from Goiás, Minas Gerais, São Paulo, Rio Grande do Sul, Santa Catarina and Espírito Santo.
The ministry went on to announce a new resolution from Cuba whereby inspections of prospective dairy and beef suppliers no longer require the presence of Cuban representatives, which should streamline the process. A similar policy applying to poultry and pork has already been in place since last year.
Source: Agencia Brasil

Brazil and US sign deal to end cotton dispute

Brazil and the United States entered into an agreement to settle the trade controversy over subsidies paid by the US government to the country’s cotton farmers.

Brazil’s Ministry of Foreign Relations reported that the two countries signed a memorandum of understanding on the cotton dispute on Wednesday (Oct. 1st), in Washington, “successfully settling a dispute that stretched for more than a decade.”
Foreign Minister Luiz Alberto Figueiredo traveled to the US alongside the Minister of Agriculture, Livestock, and Supplies, Neri Geller, to close the deal and sign the memorandum. In a statement, the Foreign Ministry said that “the bilateral agreement includes additional payments of $300 million, with flexibility for the allocation of resources, which helps to mitigate the losses sustained by Brazilian cotton farmers.”
Since the agreement applies to the cotton industry only, Brazil will still have the right to challenge the US Farm Bill before the World Trade Organization (WTO) regarding other crops.
The cotton dispute began in 2002, when Brazilian cotton farmers asked the government to file a dispute settlement case with the WTO challenging the fairness of subsidies granted by the US government to American cotton farmers and export insurance programs. The US incentives were found to be trade-distorting based on the WTO’s Agreements on Agriculture and Subsidies and Countervailing Measures.
In 2009, the WTO allowed Brazil to retaliate the US by up to $829 million. Since retaliation could have other negative impacts and would not directly benefit cotton farmers themselves, an agreement was reached whereby the US would have to pay $147.3 million every year to the Brazilian Cotton Institute created to manage the funds. In October last year, however, the payments were suspended following the passing of a new farm bill by the US Congress.
The new law maintained the payment of subsidies, violating international trade rules. As Brazil’s Foreign Ministry now reports, “under the Memorandum signed today, the United States pledged to make adjustments in its credit and export guarantee program GSM-102, which will operate within the parameters negotiated bilaterally, thus providing better conditions for the competitiveness of Brazilian products in the international market.”
Source: Agencia Brasil