Textile Brazil wants to export more to China
According to a Market Intelligence Report of HTDC Hong Kong Brazil has recognized its textile and apparel industries as key industrial development sectors and will tax reductions in the order of USD 16 billion by the end of 2012 protecting the domestic manufacturers
Hong Kong will be targeted as a significant regional centre for trade and Texbrasil co-sponsored by the textile and apparel industries and the government) will continue to promote Brazilian fashion in China.
ABIT the Brazilian Textile and Apparel Industry Association presses the Government to take better action against illegal and unfair imports in order to keep the domestic textile and apparel industry flourishing as it represents an important economic and social factor. The two sectors comprise of around 30’000 companies and these employ around 1.7 million people. Brazil is the world’s fifth largest global textile producer and disposes of important supply chains for the cotton and man-made fibre sectors. Brazilian manufacturers are under pressure by foreign imports, between 2006 and 2010 imports of yarns and fabrics more than doubled from USD one billion to USD 2.7 billion and imports of made-up textile articles, mostly apparel, were increasing from 427 million to USD 1.3 billion. China enjoys a supplying share of 39 % of Brazilian textile imports (including yarns, fabrics and knits) and a 48 % share in home textiles as well as a 60% share in apparel. Also Hong Kong is supplying clothing to Brazil, in 2010 the value was USD 22 million, whereas China’s exports to Brazil totalled USD 643 million.
Brazilian manufacturers don’t fear competition, but unfair competition such as false product declarations and under pricing. Brazil relays on import duties and high taxes and rather complex customs procedures to defend its own industries.
Brazilian textile and apparel exports were declining during 2006 to 2010 from USD 908 million to USD 797 million and made-ups from USD 664 million to USD 429 million. The main destinations of such exports were neighbouring countries and Brazilian exporters don’t want to compete on price but rather on added value but they have put sight now on Asian markets, mainly China, either they export directly or via Hong Kong to mainland China.