Footwear: export quantity stops.
Imports are already 15.5% of export

 

From January to May 2008, Brazil has already exported US$ 784 millions dollars of footwear. This means a growth of 2% in value regarding to the same period of 2007, in which export was about US$ 769 millions. In number of pairs, export reached 78.5 millions of pairs in May 2008, only 0.8% higher than January to May 2007, when it reached 77.9 millions of pairs. The numbers indicate that, in spite of all the investment from APEX for trade promotion, footwear export cannot develop in a sustainable way. The trade balance is good; however, it is likely to be progressively reduced, if nothing will be done in order to limit imports

In table 2 below it can also be verified that the high Brazilian footwear import represents already 15.5% of the export in value and 22.8% of the export in number of pairs. It is a worrying evolution. Everything suggests that a complete analysis of the Chinese footwear import was not performed yet, because it is from China that comes 88% of the total imported by Brazil. Há poucos anos a China não exportava nada significativo para o Brasil. Until May 2008, 15 millions pairs from China have entered the country, costing around US$ 5.93/pair. A question without answer is how much of such import is deriving from Brazilian companies (or with participation of Brazilian entrepreneurs) which have been there in the last few years.

 

The mean value of exported Brazilian footwear until May is US$ 9.87/pair, and the import is US$ 7.12/pair. The main destination of Brazilian footwear is the USA, with a reduction every year. In 2007, until May, in value, the destination for the USA used to represent 40%. In 2008, it reduced to 28%. In number of pairs, It reduced from 33% to 29% in the same period. The mean value until May 2007 was US$ 12/pair. In 2008, US$ 9.70/pair. The export in value for the USA in the last 12 months (January to May) reduced from US$ 308.9 millions dollars to US$ 220.2 millions dollars, a prejudice of 3 millions of pairs which is likely to increase. Table 3 data below show performances that should induce directed trade promotion policies. The markets with a mean value over US$ 15.00/pair deserve a very special attention from the entities responsible for trade promotion. Does it happens?