Macroeconomic trade context

Annual trade volume, 2024

• Total trade: US$599.5 billion
• Exports: US$337.0 billion (↓ 0.8% from the 2023 record)
• Imports: US$262.5 billion (↑ 9.0% from 2023)
• Trade balance: US$74.6 billion surplus (the second-largest in history)
• Current account deficit: US$56.0 billion (2.55% of GDP)
• Trade-to-GDP ratio: 32.4% (2024 est.)
• Global rank: 22nd largest exporter, 26th largest importer
• World export share: 1.4%
• Currency: Brazilian real (BRL); US$1 ≈ BRL 5.85 (2024 average)

Historical trade balance trend

Sources: FocusEconomics · Agência Brasil · MOFCOM (current account)

Geographic distribution, 2024

Export markets (US$337.0 billion)

By geographic region

• Asia: 45%+ (China dominates)
• Latin America: about 15%
• European Union: about 14%
• North America: about 13%

Import origins (US$262.5 billion)

Trade balance by major partner, 2024

Source: OEC · OEC country profile

Detailed export product analysis

A. Agricultural products (the dominant share)

1. Soybeans: US$43.4 billion (12.9% of total exports)

• The world’s largest soybean exporter
• Volume: 102 million metric tons (2024)
• Value declined 19.4% because of a 16.9% drop in average prices
• Primary destinations: China (70%+), Spain, Thailand, Iran
• Major producing states: Mato Grosso, Paraná, Rio Grande do Sul

2. Raw sugar: US$20.5 billion (6.1%)

• The world’s largest sugar exporter (45% global market share)
• Production: 46 million metric tons
• Primary destinations: China, India, Indonesia, Canada
• São Paulo state accounts for 60% of production

3. Coffee: US$11.8 billion (3.5%)

• The world’s largest coffee producer and exporter
• Production: 3.4 million 60 kg bags (2024)
• Types: Arabica (70%), Robusta (30%)
• Primary destinations: United States, Germany, Italy, Japan

4. Corn: US$12.4 billion (3.7%)

• The world’s 2nd largest corn exporter (after the United States)
• Primary destinations: China, Japan, South Korea, Iran
• Mato Grosso leads production

5. Poultry meat: US$8.2 billion (2.4%)

• The world’s largest chicken meat exporter
• Primary destinations: China, Saudi Arabia, UAE, Japan

6. Beef: US$9.5 billion (2.8%)

• The world’s largest beef exporter (2024)
• Primary destinations: China (60%+), United States, Egypt, Chile

7. Soybean meal: US$8.9 billion (2.6%)

• By-product of soybean processing
• Primary destinations: Indonesia, Thailand, Vietnam

8. Soybean oil: US$4.8 billion (1.4%)

• Primary destinations: India, Bangladesh, China

9. Forest products

• Wood pulp: US$8.2 billion (2.4%)
• Paper and paperboard: US$3.2 billion

B. Mining products

1. Iron ore: US$33.7 billion (10.0%)

• The world’s 2nd largest iron ore exporter (after Australia)
• Volume: 380 million metric tons
• Primary destinations: China (65%+), Malaysia, Japan
• Major mines: Carajás (Pará), the world’s largest iron ore mine
• Major companies: Vale, CSN, Anglo American

2. Crude petroleum: US$46.2 billion (13.7%)

• Became Brazil’s top export in 2024
• Growth: +5.2% in value, +10.1% in volume
• Production: 3.4 million barrels per day
• Pre-salt fields: offshore Santos Basin
• Major companies: Petrobras, Shell, Total, Equinor
• Primary destinations: China, United States, Netherlands, Chile

3. Gold: US$3.8 billion (1.1%)

• Primary destinations: Canada, United Kingdom, India
• Major producing states: Pará, Minas Gerais

4. Copper ores: US$3.2 billion (0.9%)

• Primary destinations: China, Netherlands

5. Other minerals

• Bauxite: aluminium ore
• Manganese
• Niobium: Brazil holds 90% of world reserves

C. Manufactured goods

• 1. Meat products (processed): poultry meat US$8.2 billion; beef US$9.5 billion; pork US$2.5 billion
• 2. Chemicals and petrochemicals: fertilisers US$2.8 billion; organic chemicals; plastics and resins
• 3. Machinery and equipment: engines and parts; pumps and compressors; construction machinery
• 4. Transportation equipment: aircraft US$2.8 billion (Embraer); automotive vehicles and parts; ships and boats
• 5. Iron and steel products (US$6.5 billion): flat-rolled products; semi-finished products; steel tubes and pipes
• 6. Pulp and paper: US$11.4 billion combined

D. Services exports

• Transport services: aviation, maritime shipping
• Tourism: recovery after the pandemic
• IT services: software and technology services
• Business services: consulting, engineering services

Source for 2024 export changes: Agência Brasil

Detailed import product analysis

A. Machinery and equipment

1. Gas turbines: US$9.2 billion (3.5%)

• Growth: +20.2% in December 2024
• Primary sources: United States, Germany, Italy

2. Mechanical appliances: US$8.5 billion

• Pumps and compressors
• Industrial machinery
• Agricultural machinery

3. Steam boilers: significant growth (+8,740% in December 2024)

4. Power generation equipment

• Electric motors and generators
• Transformers and converters

B. Chemical products

1. Nitrogenous fertilisers: US$5.8 billion (2.2%)

• Growth: +44.1% (December 2024)
• Primary sources: Russia, China, Canada, Qatar
• Brazil imports over 80% of its fertiliser needs

2. Potassic fertilisers: US$4.2 billion

• Primary sources: Canada, Russia, Belarus

3. Mixed fertilisers: US$3.5 billion

4. Organic chemicals: US$6.5 billion

• Petrochemical feedstocks
• Industrial intermediates

5. Pharmaceutical products: US$5.8 billion

• Packaged medicines: US$4.2 billion
• Active pharmaceutical ingredients: US$1.6 billion
• Primary sources: United States, Germany, Switzerland, India

6. Plastics and articles: US$4.5 billion

C. Transport equipment

1. Motor vehicle parts: US$7.2 billion (2.7%)

• HS 8708: parts and accessories
• Growth: +24.6% (December 2024)
• Primary sources: China, Germany, Japan, Argentina

2. Passenger cars: US$6.2 billion (2.4%)

• Primary sources: Argentina, Mexico, Germany, China
• CKD imports for local assembly

3. Commercial vehicles: US$2.8 billion

4. Aircraft and parts: US$2.2 billion

• Primary sources: United States, France

D. Mineral fuels

1. Refined petroleum: US$12.5 billion (4.8%)

• Growth: +44.3% (December 2024)
• Diesel: US$5.2 billion
• Gasoline: US$3.8 billion
• Primary sources: United States, Russia, India, UAE

2. Crude petroleum: US$2.5 billion

• Despite being a major exporter, Brazil imports specific grades
• Primary sources: Nigeria, Saudi Arabia

3. Coal: US$2.8 billion

• Primary sources: United States, Colombia, Australia

4. Natural gas: US$1.5 billion

• Primary sources: Bolivia, United States (LNG)

E. Electrical and electronic products

• 1. Electronic integrated circuits: US$3.8 billion
• 2. Telecommunications equipment: US$3.2 billion
• 3. Electrical transformers: US$2.2 billion
• 4. Medical instruments: US$1.8 billion

F. Other imports

Source: OEC, TradeMap

Trade procedures and regulations: deep dive

A. Customs legal framework

1. Primary authority

• Secretaria Especial da Receita Federal do Brasil (RFB): the Federal Revenue Service
• Subsecretaria de Administração Aduaneira (SUANA): the Customs Administration

2. Legal basis

• Customs Regulations (Decreto 6.759/2009)
• Various Normative Instructions (IN RFB)
• Portarias (ordinances) from COANA (Customs Administration Coordination)

3. Key recent reforms (2024–2025)

Sources: IN.gov.br · Portaria COANA 154/2024 · Portaria COANA 165/2024 (LegisWeb) · Passport Global

B. Import procedures

1. Single Import Declaration (Duimp)

Background:

• Part of the Portal Único de Comércio Exterior (Single Foreign Trade Portal)
• Replaces the traditional paper-based DI (Declaração de Importação)
• Mandatory implementation under Portaria COANA 165/2024

Key features:

• Electronic submission before the cargo arrives
• Integrated risk management combining customs and other agencies
• Automatic tax payment at the time of registration
• Document attachment with digital certificates

Registration requirements:

• The importer must be a legal entity (or individual) registered for foreign trade
• Regular tax status, verified automatically
• Bank account authorisation for automatic debit of duties and taxes
• Cadastro Nacional da Pessoa Jurídica (CNPJ): National Corporate Taxpayer Registry

Timing:

• Can be registered before the cargo arrives at its final destination
• After arrival, registration is possible only once the warehouse has received the cargo

2. Customs clearance channels (canais de conferência)

Channel determination:

• SISAM (an AI-based risk management system) selects the channel
• A combined channel is assigned based on the highest level of scrutiny required by any agency
• Green is the lowest level of scrutiny and grey the highest

Document submission:

• Documents are attached through the Portal Único after registration
• A digital certificate is required for signature
• Green channel shipments are exempt from mandatory attachment (except for specific requirements)

3. Required documentation

Mandatory documents for imports:

1. Duimp (Declaração Única de Importação), electronic
2. Commercial invoice (in Portuguese or English)
3. Bill of lading or air waybill (original or electronic)
4. Packing list
5. Certificate of origin (for preferential tariff claims)
6. Import licence (for regulated products)
7. SISAM registration (implicit in the Duimp)

Additional documents (where applicable):

• ANVISA certificate (health products, food, cosmetics)
• IBAMA licence (environmentally sensitive products)
• MAPA certificate (agricultural products, animals, plants)
• INMETRO certificate (regulated products subject to technical standards)
• DECEX authorisation (special trade regimes)

4. Import tax structure

5. Programa Remessa Conforme (PRC): the e-commerce compliance programme

Overview:

• Launched in autumn 2023 for e-commerce businesses
• A voluntary compliance programme that offers tax benefits
• Streamlined customs clearance for registered companies

PRC requirements:

• Register with Correios (the Brazilian postal service) or a contracted carrier
• Collect import duty and ICMS from customers before shipping
• Inform customers of the product’s foreign origin and the applicable taxes
• Itemise landed costs at checkout: product price; shipping cost; insurance; postal tariffs (if applicable); import tax; ICMS tax; total sum

Non-PRC shipments:

• Subject to 60% import duty on all shipments
• Standard ICMS applies
• Longer clearance times

Example: a US$50 CIF shipment (PRC registered):

• Import duty: US$50 × 20% = US$10
• Taxable value: US$50 + US$10 = US$60
• ICMS tax: US$60 × 17% = US$10.20
• Total landed cost: US$70.20

Sources: Portaria COANA 165/2024 (LegisWeb) · Passport Global · Chambers and Partners

C. Export procedures

1. Export declaration

• Declaração Única de Exportação (DU-E): Single Export Declaration
• Electronic submission through the Portal Único
• Integrated with customs risk management

2. Required documents

• Commercial invoice
• Packing list
• Bill of lading or air waybill
• Certificate of origin (for preferential claims)
• Export licence (for regulated products)

3. Export incentives

• Drawback: duty-free import of inputs for exported products
• Reintegra: tax credit on export revenue
• Ex-tarifário: duty reduction on capital goods not produced domestically

D. Digital systems and automation

1. Portal Único de Comércio Exterior (Single Foreign Trade Portal)

• Integrated platform for all import and export procedures
• Single window for customs, anuentes (other agencies) and traders
• Reduces processing time and bureaucracy

2. Siscomex (Sistema Integrado de Comércio Exterior)

• Legacy system being phased out in favour of the Portal Único
• Still used for certain operations

3. SISAM (Sistema de Seleção Aduaneira pelo Aprendizado de Máquina)

AI-powered risk management:

• Introduced in August 2014
• Runs 24/7 in Brazilian government data centres
• Machine learning (supervised and unsupervised)
• The knowledge base contains 8.5 billion patterns
• Explains its selection reasons in natural language
• Updates incrementally every day without retraining

How SISAM works:

• “Learns” from the history of import declarations
• Calculates the expected return of every possible inspection
• Uses decision and game theory to support selection
• Assigns goods to the green, yellow, red or grey channel

Benefits:

• Inspectors review only selected sections of declarations
• Efficient resource allocation (focus on high-risk shipments)
• Real-time evaluation of transaction patterns
• Anomaly identification and risk profiling

4. PATROA (Real Time Customs Operations Monitoring System)

• Launched in December 2017
• Runs server-side, applying rules created by people
• Applies rules as transactions are registered
• Can call on ANIITA and SISAM for detailed analyses
• Immediate notifications for risk profiles

5. ANIITA

• Desktop information-gathering software
• Accepts rules created by people
• On-demand analysis tool

6. Data lake initiative

• Centralising all customs and internal revenue data
• Data mining for offline analysis
• Future investments in big data infrastructure

7. CCT-Importação (cargo control module)

• Manifests cargo for maritime and air transport
• Required for Duimp registration

E. Special customs regimes

1. Authorised Economic Operator (OEA)

Programme details:

• Introduced by IN RFB 1.521/2014
• Based on the WCO SAFE Framework
• Trusted trader programme with voluntary certification
• The benefits are procedural, not tax-related

Benefits:

• Reduced customs inspections
• Priority processing
• Simplified documentation requirements
• Mutual recognition with other countries’ AEO programmes
• System-based approach rather than transaction-based

Requirements:

• Compliance history
• Financial solvency
• Appropriate security practices
• Supply chain visibility
• Satisfactory accounting systems

Mutual recognition agreements (MRAs):

• US CBP (C-TPAT): signed after 7 years of negotiations
• Regional MRAs with 10+ countries
• New Regulatory Instruction under public consultation (2024)

2. Temporary admission

• For goods imported for a specific purpose and re-export
• Exhibitions, professional equipment, samples
• Requires a guarantee (bond or deposit)

3. Drawback

• Duty-free import of inputs for manufacturing exports
• Three modalities: suspension, exemption, restitution

4. RECOF (customs warehousing for export)

• Bonded warehouse for export-oriented production
• Duty suspension on inputs

5. Ex-tarifário

• Temporary duty reduction on capital goods, IT and telecom equipment
• Requires proof that there is no domestic production

Source for SISAM, PATROA, the data lake and the OEA programme: Chambers and Partners

F. Sector-specific regulations

1. Agricultural products (MAPA, Ministry of Agriculture)

• Import permits for animals, plants and their products
• Phytosanitary certificates required
• Quarantine inspections at ports of entry
• SPS measures strictly enforced

2. Health products (ANVISA)

• Registration required for pharmaceuticals, medical devices, cosmetics and foods
• Processing time: 90–360 days, depending on the risk category
• GMP certification required
• Cadastro (simplified registration) for low-risk products
• Import licence for each shipment

3. Environmental products (IBAMA)

• CITES permits for endangered species
• Environmental licences for hazardous materials
• Prior consent for ozone-depleting substances

4. Telecommunications equipment (ANATEL)

• Type approval required
• Homologação (certification) before import
• Testing by accredited laboratories

5. Automotive products

• DENATRAN regulations
• INMETRO certifications for parts
• MAPA permits for vehicles carrying agricultural products

6. Chemicals

• Environmental permits from IBAMA
• Health registration from ANVISA (for human or animal use)
• Workplace safety requirements (MTE)

G. Compliance and enforcement

1. Post-clearance audit

• Risk-based selection of importers and exporters
• Audit focus: valuation accuracy, classification, origin, tax payments
• Record keeping: minimum 5 years

2. Penalties

Customs violations:

• Under-declaration: 100% penalty on the difference, plus interest
• Misclassification: duty adjustment plus a 75% fine
• False documentation: 75–150% fine plus forfeiture
• Smuggling: criminal prosecution, imprisonment of 2–5 years

Administrative penalties:

• Late filing: R$500–5,000
• Non-compliance: suspension or revocation of import and export privileges
• Repeat offences: higher penalties

3. Appeals process

1. Objection to the RFB within 30 days
2. CARF (Administrative Tax Appeals Council)
3. Judicial review by the federal courts

Trade agreements network

A. Multilateral agreements

B. MERCOSUR trade agreements

C. FTAs under negotiation by MERCOSUR

• Canada (negotiating)
• South Korea (negotiating)
• Singapore (negotiating)
• Lebanon (negotiating)
• EFTA (implementing)

D. Bilateral agreements (outside MERCOSUR)

• Mexico: ACE 53 (automotive sector)
• Peru: Economic Complementarity Agreement
• Cuba: Economic Complementarity Agreement
• Guyana, Suriname: framework agreements

E. Rules of origin (MERCOSUR)

General criteria (MERCOSUR origin)

• Regional value content: 60% (CIF) or 40% (FOB)
• Change in tariff classification: HS 4 to 6-digit level
• Specific processes for certain products

Documentation

• Certificado de Origem MERCOSUR (Form A)
• Issued by authorised entities (federations of industries)

F. Brazil’s role in MERCOSUR

• Largest economy (80% of MERCOSUR GDP)
• Key driver of external negotiations
• Major market for partners’ exports

Major trade infrastructure

A. Ports (annual throughput)

Southeast and South region (80% of trade)

Northern region

B. Major export corridors

Arco Norte (Northern Arc)

• Ports in the North and Northeast
• Close to agricultural frontiers (MATOPIBA region)
• Reduced transport costs to export markets
• Infrastructure investments expanding capacity

Southeast and South corridor

• Santos, Paranaguá, Rio Grande
• Traditional export route
• Highway and rail connections to the interior

C. Airports (cargo volume)

D. Free trade zones and special zones

Zona Franca de Manaus (ZFM)

• Created in 1967 in Amazonas state
• Tax incentives for manufacturing
• Electronics, two-wheelers and chemicals industries
• Imported components are duty-free for local production

Export processing zones (ZPEs)

• Parnaíba (PI), Rio Grande (RN) and others
• Export-oriented production
• Duty-free imports for processing
• Simplified customs procedures

Áreas de Livre Comércio (ALCs)

• Border areas in the North region
• Retail trade benefits
• Limited to specific municipalities

E. Border crossings

Southern Cone borders

Northern borders

• Pacaraima (Venezuela): limited operations
• Bonfim (Guyana): developing corridor
• Tabatinga (Colombia): river border

Western borders

• Corumbá (Bolivia): rail connection
• Cáceres (Bolivia): river port
• Epitaciolândia (Peru): highway connection

F. Transportation infrastructure

Highways

• BR-163: Cuiabá – Santarém (soybean export corridor)
• BR-101: coastal highway
• BR-116: trans-Brazil highway (Fortaleza – Rio Grande)
• BR-364: Cuiabá – Porto Velho (Amazon access)

Railways

• EFC (Carajás Railway): iron ore to Itaqui
• EFVM (Vitória–Minas Railway): iron ore to Vitória
• Ferronorte: agricultural products to Santos
• Norte-Sul Railway: expanding north–south connection
• Transnordestina: under construction

Waterways

• Madeira River: soybean exports to Amazon ports
• Tietê–Paraná: internal cargo movement
• Amazon River system: regional trade

Emerging trends and future developments

A. Digital transformation of customs

SISAM and AI integration

• Machine learning risk assessment since 2014
• 8.5 billion patterns in the knowledge base
• Real-time selection and analysis
• Predictive risk modelling

PATROA real-time monitoring

• Server-side rule application
• Immediate risk identification
• Integration with SISAM and ANIITA

Portal Único evolution

• Mandatory Duimp implementation (2024–2025)
• Integration of all anuentes (other agencies)
• Single window for all trade operations
• Paperless trade goal

Data lake initiative

• Centralising customs and revenue data
• Advanced data mining capabilities
• Big data analytics for risk management
• Future AI enhancements

B. E-commerce revolution

Programa Remessa Conforme (PRC)

• Tax benefits for registered companies
• 20% duty on shipments under US$50
• Standardised 17% ICMS
• Rapid growth in cross-border e-commerce
• Major DTC brands registering

Customs modernisation for e-commerce

• Simplified clearance procedures
• Automated duty collection
• Real-time tracking
• Integration with shipping carriers

C. EU–MERCOSUR agreement prospects

Status: political agreement 2019, pending ratification

Impact if ratified:

• Tariff elimination on 90%+ of products
• Increased agricultural exports
• Lower industrial goods imports
• Services liberalisation
• Government procurement access

D. Energy transition

Green hydrogen

• Massive potential thanks to renewable energy
• Port of Pecém (Ceará) hydrogen hub
• European partnerships
• Export potential to Germany and the Netherlands

Biofuels

• Ethanol exports growing
• Biodiesel mandate
• Sustainable aviation fuel potential
• Second-generation ethanol technology

Critical minerals

• Lithium exploration in Minas Gerais
• Rare earth elements potential
• Nickel for EV batteries
• Graphite for battery anodes

E. Supply chain diversification

Nearshoring and China+1

• Competition from Mexico
• Potential for manufacturing investment
• US–China tensions create opportunities
• The EU is seeking diversified partners

Reindustrialisation

• Nova Indústria Brasil programme
• Green industrialisation focus
• Bioeconomy development
• Digital transformation

F. Agricultural expansion

MATOPIBA region

• New agricultural frontier
• Soybean and corn expansion
• Infrastructure investments
• Sustainability challenges

Agricultural technology

• Precision agriculture growth
• Digital farming platforms
• Biotechnology adoption
• Carbon market participation

Sustainability certification

• EU deforestation regulation compliance
• Traceability systems
• Sustainable supply chain certification
• Carbon-neutral products

G. Trade policy developments

MERCOSUR modernisation

• Tariff reduction negotiations
• Common external tariff review
• New negotiating mandates
• Digital trade agenda

New FTAs

• Canada (negotiating)
• South Korea (negotiating)
• Singapore (negotiating)
• Indonesia (exploring)

OECD accession

• Ongoing process
• Policy alignment requirements
• Enhanced credibility
• Investment attraction

H. Infrastructure investments

Ferrogrão railway

• Sinop – Miritituba (grain corridor)
• Reducing road transport in the Amazon
• Environmental licensing challenges
• Strategic for soybean exports

Port concessions

• Santos privatisation (planned for 2024)
• Itaqui modernisation
• Private investment in terminals
• Efficiency improvements

Airport cargo expansion

• Viracopos e-commerce hub
• Guarulhos modernisation
• Manaus logistics improvements
• Regional airport development

Sources: Chambers and Partners · Passport Global

Key contacts and resources

A. Government agencies

1. Receita Federal do Brasil (RFB), the Federal Revenue Service: gov.br/receitafederal · Phone +55 11 4130-8000 · Esplanada dos Ministérios, Brasília – DF, 70048-900
2. Secretaria de Comércio Exterior (SECEX), the Foreign Trade Secretariat: gov.br/produtividade-e-comercio-exterior · under the Ministry of Development, Industry, Trade and Services (MDIC)
3. Câmara de Comércio Exterior (CAMEX), the Foreign Trade Chamber: gov.br/camex · trade policy coordination
4. Ministério da Agricultura e Pecuária (MAPA): gov.br/agricultura · agricultural trade regulation
5. Agência Nacional de Vigilância Sanitária (ANVISA): gov.br/anvisa · health products regulation
6. Instituto Brasileiro do Meio Ambiente (IBAMA): gov.br/ibama · environmental licensing

B. Trade portals and systems

1. Portal Único de Comércio Exterior: portalunico.siscomex.gov.br · single window for all trade operations; Duimp registration; risk management access
2. Siscomex: siscomex.gov.br · legacy system (transitioning to the Portal Único); historical data
3. Comex Stat: comexstat.mdic.gov.br · official trade statistics; free-access database
4. SISAM: integrated into the Portal Único · AI risk management system

C. Business organisations

1. Confederação Nacional da Indústria (CNI): cni.com.br · National Industry Confederation; trade policy advocacy
2. Federação das Indústrias do Estado de São Paulo (FIESP): fiesp.com.br · the largest state industry federation; trade promotion, international relations
3. Associação de Comércio Exterior do Brasil (AEB): aeb.org.br · Foreign Trade Association; training, networking, advocacy
4. Câmara de Comércio Internacional (ICC Brasil): iccbrasil.org · International Chamber of Commerce; arbitration, trade facilitation
5. Brazilian Trade and Investment Promotion Agency (APEX Brasil): apexbrasil.com.br · export promotion; international market development

D. Regulatory updates (2024–2025)

E. Practical guidance for traders

For exporters to Brazil

1. PRC registration recommended: for e-commerce, register for the Programa Remessa Conforme to benefit from reduced duties
2. Use the Portal Único: all declarations go through the Single Foreign Trade Portal
3. CNPJ required: obtain Brazilian taxpayer registration through a local representative
4. ANVISA, MAPA and IBAMA permits: apply 3–6 months before shipping
5. SISAM risk assessment: be prepared for possible red or yellow channel selection
6. Document accuracy: errors cause significant delays and penalties
7. Local representation: highly recommended because of the complexity
8. Payment security: letters of credit are common for new relationships
9. Labelling requirements: Portuguese is mandatory, with a detailed product description
10. Check INMETRO standards: many products require mandatory certification

For importers from Brazil

1. Certificate of origin: claim MERCOSUR or other FTA preferences
2. Quality certification: ensure compliance with destination standards
3. Documentation: complete and accurate commercial invoices
4. Logistics planning: allow for port congestion at Santos and Paranaguá
5. Agricultural products: phytosanitary certificates are essential
6. Sustainability certification: increasingly required for EU and US markets
7. Foreign exchange: monitor the volatility of the real

Economic impact and strategic position

A. Trade balance dynamics

• Record 2023 surplus: US$98.9 billion
• Second-highest surplus in 2024: US$74.6 billion
• 24.6% decline because of commodity price normalisation and import growth
• Import volume: +17.2%
• Export volume: +3.0%
• Current account deficit: US$56.0 billion (2.55% of GDP)

B. Global strategic position

1. Agricultural superpower: the world’s largest exporter of soybeans, coffee, sugar, orange juice, beef and poultry
2. Mining giant: 2nd largest iron ore exporter and a major producer of gold, copper and niobium
3. Energy powerhouse: top-10 oil producer, pre-salt reserves, biofuels leader
4. Manufacturing hub: aerospace (Embraer), automotive, chemicals, machinery
5. MERCOSUR leader: 80% of the bloc’s GDP and a key driver of regional integration
6. BRICS member: a strategic alliance of emerging economies
7. Environmental steward: Amazon rainforest, biodiversity, carbon markets

C. Competitiveness indicators

D. Challenges

1. Complex tax system: multiple federal, state and municipal taxes
2. Regulatory burden: bureaucratic procedures, frequent changes
3. Infrastructure gaps: port congestion, road quality, rail limitations
4. High logistics costs: among the highest in the world
5. Currency volatility: fluctuations in the real affect trade competitiveness
6. Fiscal pressures: government deficit, debt levels
7. Crime and security: affects logistics in some regions
8. Environmental concerns: deforestation affects the reputation of Brazilian agriculture
9. Trade protectionism: occasional tariff increases to protect local industry

E. Opportunities

1. EU–MERCOSUR FTA: pending ratification, massive market access
2. Green economy: renewable energy, biofuels, sustainable agriculture
3. Digital transformation: e-commerce growth, customs modernisation
4. Infrastructure investment: concessions, PPPs, the “PAC” programme
5. Supply chain diversification: nearshoring potential
6. Critical minerals: lithium and rare earths for the EV supply chain
7. Carbon markets: vast potential from forest conservation
8. Agricultural technology: precision farming, biotech leadership
9. Bioeconomy: Amazon biodiversity products
10. Space sector: commercial operations at the Alcântara launch base

Sources: Agência Brasil · FocusEconomics · OEC

Summary of Brazil’s trade characteristics

1. Commodity powerhouse: a world leader in soybeans, coffee, sugar, beef, poultry and iron ore
2. Trade surplus champion: the second-largest surplus in history (2024), after the 2023 record
3. China dominance: China is Brazil’s largest trading partner (28.5% of exports, 22.4% of imports)
4. MERCOSUR leader: founding member, with 80% of the bloc’s economy
5. Digital customs pioneer: SISAM (AI risk management), Portal Único, Duimp
6. Complex tax system: II, IPI, ICMS, PIS, COFINS and AFRMM in multiple layers
7. E-commerce revolution: the PRC programme offers reduced duties (20% under US$50)
8. Modernising framework: 2024–2025 reforms (Portaria COANA 154 and 165)
9. Agricultural export power: 12.9% soybeans, 10.0% iron ore, 13.7% crude petroleum
10. Emerging green economy: biofuels, critical minerals, carbon markets

Brazil is the world’s agricultural and mining superpower, combining vast natural resources with sophisticated manufacturing capabilities in aerospace, automotive and chemicals. Its trade profile is dominated by commodity exports to China (soybeans, iron ore, oil), while it imports machinery, chemicals and fertilisers from partners around the world. Brazil’s 2024 trade surplus of US$74.6 billion, though lower than the 2023 record, remains historically strong and reflects resilient export performance despite falling commodity prices.

Brazil has emerged as a leader in digital customs modernisation. Its AI-powered SISAM system (in use since 2014) provides sophisticated risk management, and the Portal Único single window streamlines procedures. The 2024–2025 reforms include mandatory Duimp implementation (Portaria COANA 165/2024) and the Programa Remessa Conforme (PRC) for e-commerce, which offers reduced 20% duties on shipments under US$50.

The Brazilian market offers enormous opportunities but requires navigating complex regulations, multiple taxes and frequent policy changes. Success depends on understanding the MERCOSUR framework, securing the necessary permits (ANVISA, MAPA, IBAMA) and, for e-commerce, possibly registering for the PRC programme. Brazil’s strategic position as Latin America’s largest economy, its vast natural resources and its role in the energy transition (green hydrogen, critical minerals, biofuels) position it for continued trade growth despite significant structural challenges.

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