A product of the Private Sector Outreach of the Office of Trade Negotiations (OTN), formerly the

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Private Sector
Trade Note
CARICOM-Brazil
Trade

CARICOM-BRAZIL IMPORT
OVERVIEW

Brazil remains a lucrative, but under

exploited, market for the region’s
exporters. CARICOM has been
developing stronger trade linkages
with Latin America including
establishing trade ties with
Venezuela, Colombia, Cuba, Costa
Rica and the Dominican Republic.
However, there is still the need for a
clear approach to establishing a
stronger trade alliance with the
largest Lin American market Brazil,
which could assist in facilitating
regional economic development.
CARICOM incurred a significant

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merchandise trade deficit with Brazil in
2009. CARICOM’s merchandise exports to
Brazil increased by over 31% annually
between 2001 and 2009 (see figure 1).
Merchandise imports from Brazil
expanded by 32% annually over the same
period, exacerbating the problem of the
trade deficit, and indicating some loss of
international trade competiveness for the
region’s private sector vis‐a‐vis Brazilian The recently opened Takutu Bridge (right) links Guyana and Brazil
firms.

However CARICOM and Brazil are CARICOM’S EXPORTS TO BRAZIL

increasing their trade dependence.
CARICOM’s exports to Brazil are mainly resource based from Trinidad and
CARICOM firms increased their
Suriname. In 2009, Trinidad was the main CARICOM merchandise
dependence on Brazil for export earnings
exporter to Brazil, generating over 92% of total export earnings. Suriname
from 0.04% in 2001 to 0.15% in 2009.
(4% of earnings), the Bahamas (1%), Jamaica (1%), Barbados and Guyana
Additionally, CARICOM importers sourced
were the remaining notable exporters in 2009 (see figure 2).
an increasing share of their total
merchandise import spending from Brazil.
In 2005, CARICOM sourced over 5% of its
total import expenditure from Brazil, and
this increased to just under 14% in 2008,
making Brazil an important import source
for the region.

Brazil is also a significant global services

import market. In 2007, the Brazilian
market absorbed over US$37bn in
services imports, growing from
US$16.7bn in 2000. The fastest growing
services imports in Brazil between 2000
and 2007 included legal services (62%
growth in import spending per annum
between 2000 and 2007); construction in
the compiling economy (59%); other
direct insurance (34%); operational
leasing services (23%); other transport
services (21%); passenger air transport
(19%); telecommunications (18%); and
architectural, engineering and other
technical consultancy (13%). These areas
provide a long list of services
opportunities that CARICOM service
providers can explore.
Haiti was the most dynamic exporting country from CARICOM to Brazil
between 2001 and 2009 with merchandise exports expanding by over
81% per annum. Other dynamic exporting nations were Suriname (70%
growth per annum); Jamaica (63%); Guyana (58%); and Trinidad and
Tobago (39%). Notable declines in exports were observed for The
Bahamas, Barbados, Grenada and Antigua and Barbuda.
CARICOM exporters have intensified the export thrust to Brazil in that in
2001, fewer than 20 tariff lines were exported, whilst in 2009, 137 tariff
lines were exported. Many of the top exports to Brazil included extractive
resources such as Ammonia, LNG, Urea and Aluminium Oxide (see table
1).

The most dynamic exports to Brazil between 2001 and 2009 included
anhydrous ammonia (42.9% growth per annum between 2001 and 2009);
essential oils (107%); and undenatured ethyl alcohol (74.3%).

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 CARICOM’S EXPORTS TO BRAZIL Haiti was the most dynamic CARICOM exporters have intensified
exporting country from CARICOM to the export thrust to Brazil in that in
CARICOM’s exports to Brazil are
Brazil between 2001 and 2009 with 2001, fewer than 20 tariff lines were
mainly resource based from Trinidad
merchandise exports expanding by exported, whilst in 2009, 137 tariff
and Suriname. In 2009, Trinidad was
over 81% per annum. Other dynamic lines were exported. Many of the
the main CARICOM merchandise
exporting nations were Suriname
exporter to Brazil, generating over
(70% growth per annum); Jamaica
92% of total export earnings.
(63%); Guyana (58%); and Trinidad
Suriname (4% of earnings), the
and Tobago (39%). Notable declines
Bahamas (1%), Jamaica (1%),
in exports were observed for The
Barbados and Guyana were the
Bahamas, Barbados, Grenada and
remaining notable exporters in 2009
Antigua and Barbuda.
(see figure 2).
Brazil will host the upcoming 2016 Olympiad

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 Barbuda (21%), Suriname (20%) and
Grenada (18%).

The top import from Brazil in 2009

was crude petroleum oils which
represented over 77% of CARICOM’s
total import expenditure from
Brazil. CARICOM importers source a
large number of products that are
also produced regionally (competing
products). These products include
poultry, sugar, wooden doors and
frames, paper products, tobacco
products, bovine meats and dairy
products (condensed milk). These
top exports to Brazil included
Readers are invited to suggest topics are areas that could be sensitive to
extractive resources such as
of interest for future trade notes. competition from Brazilian imports.
Ammonia, LNG, Urea and Aluminium
Oxide (see table 1).

The most dynamic exports to Brazil

between 2001 and 2009 included
anhydrous ammonia (42.9% growth
per annum between 2001 and
2009); essential oils (107%); and
undenatured ethyl alcohol (74.3%).

CARICOM’S IMPORTS FROM

BRAZIL

St. Lucia was the top importer from

Brazil in 2009, with its imports
representing over three‐quarter of
the region’s total imports. Trinidad
and Tobago (10%), Jamaica (7%), the
Bahamas (2%) and Suriname (1%)
jointly account for another 20% of
total imports from Brazil (see figure
3).

St. Lucia was the most dynamic

CARICOM importing nation from
Brazil between 2001 and 2009,
recording almost 40% growth in
import spending from Brazil per
annum. Other dynamic importing
nations were the Bahamas (27%), St.
Kitts and Nevis (28%), Antigua &

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The fastest growing imports from
Brazil observed between 2001 and
2009 included paints and varnishes
based on polyesters (79.4% growth per
annum in import spending); AC
generators (alternators) of an output
exceeding 75 KVA (41%); check valves
(72%); finishing agents, dye, for use in
the textile industry (104%); upright
freezers not exceeding 900 litres
capacity (54%); worked
monumental/building stones , granite
(52%); rotary positive displacement
pumps (66%); fowls (gallus
domesticus) meat, prepared/preserved
(132%); tubes, pipes and hoses of
plastic (95%); frozen swine cuts (51%);
animal feed preparations (127%);
maize (corn) groats and meal (70%);
prefabricated buildings (55%);
sausages (75%); milk and cream
sweetened (35%); and crude
petroleum (44%). These products are
important indications of areas in which
the private sector could be facing more
import competition from Brazilian
imports.

Next issue will look at CARICOM‐Chile

Trade Performance. Please continue
suggesting topics of interest for future
trade notes to lincoln.price@crnm.org

Produced by the OTN Information Unit, 2009

DIRECT ALL COMMENTS OR QUERIES

Mr. Lincoln Price

Private Sector Liaison
lincoln.price@crnm.org

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