That Brazil is one of the most isolated economies in the Western hemisphere hardly comes as a shock. The main causes of this seclusion are the tariffs Brazil imposes on foreign products and the lack of competitiveness among local producers. Not by coincidence, one-quarter of all manufactured goods from Brazil go to Mercosur partners. Brazilian products have a limited entry in more developed economies.
But a new survey carried out by the National Confederation of Industry (CNI) with 589 exporters—the widest survey of its kind in Brazil—maps the problems Brazilian exporting companies face when shipping their products abroad. The bottom line is that Brazilian companies have a hard time exporting goods. Customs bureaucracy and internal infrastructure and logistics bottlenecks are at the top of the list of complaints.
The study will be presented to President-elect Jair Bolsonaro’s transition team, in the hopes his administration addresses some of the issues listed. Here are the main findings of the document:
Profile of companies
The 589 companies represented in the study ship goods to an average of five countries. Almost everything is transported within the country via trucks, and 60 percent of Brazilian exports go by ship to their final destinations.
In the Center-West region, exporters want closer ties to China—the main destination of Brazilian commodities. Other regions are more interested in the U.S. and Argentina, Brazil’s other two top trading partners.