Exports
Brazil’s exports have varied over the centuries, and until
recently they have always been agrarian based. The record of Brazil
as an exporting state began when the first Portuguese colonists began exporting
Brazil-wood. Later, between the sixteenth and seventeenth centuries
focus shifted to sugarcane. After 1800, gold became the major export, until
the second half of that century when coffee began to dominate. As late as
1958, sixty-six percent of all of Brazil’s export value was in coffee.
The level of rubber exports experienced a brief spike during the wars of
the early twentieth century, but later subsided. This pattern of cash-crop
dependance has lead to economic instabilities and low resilisence.
Over the past twenty years the percentage of Brazilian
exports based on agriculture has dropped steadily. Though the total
volume of agriculture products has not decreased, the development of the
manufacturing sector has diversified the nation’s exports. Brazil is
still the world’s leading exporter of coffee, however in 1995 it only accounted
for two percent of national exports. Roughly one-fourth of all of Brazil’s
exports are either agriculture products or other raw materials. Manufactured
and semi-manufactured goods, like automobiles, chemical products and textiles,
amount to sixty-four percent of the nation’s output (Percentages courtesy
of The Brazilian Embassy in London). The combination of this shift
to manufacturing as well as the diversification of agricultural products
has made the export economy of Brazil much less dependant on minor fluctuations
in specific crop yields and has helped increase confidence levels of foreign
investors.
The sale of exports demonstrates a sustained flow of capital
into Brazil. Brazil’s total exports amount to around $55.1 billion,13.4%
of the Gross Domestic Product. A plurality of these travel to the United
States (23%) while Mercosul purchases 14% of Brazil’s exports and Germany,
Japan and the Netherlands each receive 5% of all Brazilian products (The
World Bank Group). The European Union as a whole accepts 27% of Brazil’s
exports. As an exporting nation, Brazil has been rather successful, however
it has had trouble maintaining a favorable balance of trade.
The trade deficit of Brazil has been dropping over the
past few years. Growing by 14.7% from 1999 to 2000, the deficit dropped all
the way to US$691 , the lowest it has been since 1995 (The Brazilian Embassy
in London). The problems that Brazil has had with it’s trade deficit
has influenced its desire to maintain and then expand upon its current levels
of exportation, an issue that may undermine attempts at slowing processes
that contribute to the destruction of the rainforest.
Brazil, as a nation struggling to keep its economy afloat,
has many concerns that do not directly aid the preservation of the
rainforest. While Brazil’s economic reliance on agricultural and raw
materials exports has decreased dramatically, the current state of Brazil’s
economy, and particularly the government’s budget, does not leave much room
for adjustment. Though policy recommendations made with the intent
of preserving the rainforest may be accepted by the government, it is important
to remember that the survival of the nation’s economy is of considerably
higher importance.