Brazilian leather exports


September reached a total of US$ 220 million in exports of hides and skins according to preliminary data from the Department of Foreign Trade - Ministry of Development, Industry and Foreign Trade (MDIC). It represents an increase of 35% compared to the same month of last year, reaching a growth of 18.6% in the value of exports in 2013 compared to the same period of 2012. The numbers are positive, though to the sector, it can precede a period of difficulty for the country’s exports.

As stated by the executive president of the Centre for the Brazilian Tanning Industries (CICB), José Fernando Bello, a matter relating to the Brazilian exclusion in the European Union Generalised Scheme of Preferences (SGP) planned to January of next year is a concern. It can be a determinant point to the fall of the competitiveness of Brazil in the foreign market from 2014. " This implies in the increase of rates on Brazilian exports to Europe in the order of 3,5 %, to the exported products to EU, which accounts for 36% of Brazilian international sales of hides and skins, highlighted Bello.

According to the forecast of the sector, the SGP issue may raise costs up to 3.5% in 2014, thus impairing the Brazilian results overseas - significant numbers to the improvement of the Brazilian trade balance (deficit of US$ 1.62 billion in the year). January to September 2013, the exports of hides and skins from Brazil totalled US$ 1.816 billion, maintaining its participation in the total exports at 1 %.