BRAZIL, Brasilia. Brazilian merchandise exports to Europe continued to grow in value terms in the third quarter of 2021, rising 44.1% year-on-year to a total of $10.1 bn. (€8.5 bn.) to the European Union and 8.5% to a total of $ 801.4 mill. (€679.7 mill.) to the United Kingdom.
The figures were released in the latest Europe Trade Monitor by Apex-Brasil, Brazil's trade and investment promotion agency. These are Brazil's highest exports to the EU in a third quarter since 2013, meaning the country is on track to post its first trade surplus with the EU since 2011 when viewed over the year as a whole.
According to the report, Brazil recorded a goods trade surplus with the EU of $ 471 mill. (€ 400 mill.) in the third quarter, the highest surplus in any quarter since 2011. With the United Kingdom, Brazil recorded a quarterly trade surplus of $ 110 mill (€ 93.3 mill.).
The figures resulted from strong demand in key sectors such as metal ores, oil, sugar and handicrafts, as well as high global commodity prices, which continued the positive upward trend seen in 2021 as a whole and helped drive Brazil's economic recovery. In particular, there was a significant increase in oil, metal ores and soybeans. Strong global commodity prices were the result of a combination of resurgent demand and tight supply. Demand in the UK was dominated by handicrafts, sugar and wood products.
In the EU, a number of important factors contributed to the positive export performance. Brazilian crude oil enjoyed strong demand, driven by both high commodity prices on the international market and skyrocketing natural gas prices; exports rose 112% to $ 893 mill. (€757.4 mill.). This year's soybean crop, which is expected to produce record yields after a slow planting season, contributed to a strong 48% rise in exports of the legume to the EU in the third quarter, to $2 bn. (€ 1.6 bn.). Trade in metal ores benefited from the continued recovery of manufacturing operations in continental Europe. Here, exports rose more than 100% to $1.5 bn. (€ 1.2 bn.).
As for trade from Europe to Brazil, the third quarter also saw a strong increase in demand. Imports from the EU rose 32.7% in value to $ 9.6 bn. (€ 8.1 bn.) in the third quarter compared to 2020.