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News About Brazil, Jan 2006
Brazilian Real x US Dollar
US dollar rates raise difficulties to Brazilian exports
During Dec. 2005 Brazilian lumber industry faced internal growing difficulties due
mainly to
- The R$ (real) evaluation of about 20 % against the US dollar
- The Government crackdown of illegal logging and the lack of application
of effective FMP (Forest Management Plan)
- The imposition of US duties on imports from Brazil
As an immediate consequence, some industries fired workers. This situation has had negative
imnpact on the sector. To ilustrate this, Brazil’s tropical plywood exports contracted 51 % in October
1. Stronger BRL (real) halt exports
Practically all sectors of the Brazilian economy are facing more difficulties
due to the US dollar devaluation (about 20 %) against the real (BRL or R$).
This is particularly the case of the lumber industries. Brazlian products
lack competitiveness caused by the national currency evaluation. [TDB]
2. Government fines $800 million on illegal logging
The
government deeds to reduce deforestation during the past three years has
been rewarded, as the deforestation rate decreased 31% in the period August
2004 to July 2005 compared to the same period in 2003-2004. During 2004,
the total amount of fines was equal to US$ 800 millions.
3. The US taxes Brazilian plywood 8 %
The USA started applying an 8% duty on imports of Brazilian plywood in mid-2005
after exports of this product exceeded the established quote under the GSP
tariff system
Brazil's Plywood Market
[Next News]
Source: ITTO / OIBT
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