Brazil Economic Statistics

Brian Canup

Brian Canup is a former Editorial & Research Assistant at Trade Finance Global (TFG). He graduated with an MA in International Political Economy from King’s College London, and a BA in Political Science from the University of Wisconsin-Madison.

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Importing from Brazil

Despite the recent economic downturn in Brazil, the country’s abundance of natural resources is expected to attract major investment in the next few years, especially in exploiting the country’s oil reserves. As a member of South America’s leading tariff-free trade bloc Mercosur, Brazil is also one of the emerging BRIC (Brazil, Russia, India and China) economies, predicted by Goldman Sachs to be one of the world’s most dominant by 2050.

Of the $247 billion in annual exports, the majority come from raw and agricultural materials such as iron ore ($33.4 billion), soybeans ($23 billion), crude petroleum ($13.2 billion) and raw sugar ($12 billion).

Importing from Brazil: What is trade finance?

Trade finance is a revolving facility which some banks and specialist lenders offer – it enables companies to buy products and can help ease the pressure from cashflow issues.

Typically, an alternative financier will fund up to 100% of the cost of the stock, including charges (e.g. shipping costs).

Trade finance offers added advantages over more traditional bank funding for example bridging mortgages or loans. Trade finance provides quick funding without affecting existing relationships with banks.

How does it work?
If you’re a firm importing or exporting inventory around the world, then a trade finance facility would assist your company to fund this through offering a letter of credit (LC) or some form of cash advance.

I’m looking to import from Brazil, how can Trade Finance Global help, and how does it work?
If you’re looking to import goods from other international markets, you may need import finance, which is an agreement between yourself (the importer) and the foreign exporter. An alternative financier will act as the intermediary, paying the exporter on your behalf until you get the stock and have then sold them to your customer. Repaying the lender then happens over an agreed period of time.

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Speak to our trade finance team