Brazil no longer taking China’s place in the U.S.
Mexico has taken China’s place in the U.S. market and is now the largest foreign supplier to the United States. From January to July this year, Chinese shipments to the U.S. fell by 24.8% from the same period last year, while Mexican shipments rose by 5%. Brazilian sales fell by 1.3%. Total U.S. imports fell by 6.2% over the same period, according to official U.S. government data. The United States is the second-largest destination for Brazilian shipments, after China.Mexico exported $274.95 billion to the U.S. from January through July, followed by Canada with $243.7 billion, according to U.S. government data. Canadian shipments were down from the same period last year by 6.4 %, far less than the decline in Chinese exports. China, the leader until last year, fell to third place with $239.07 billion.Welber Barral, former foreign trade secretary and consultant with consulting firm BMJ, said that after the pandemic came the "reshoring" and "nearshoring" movements, in which some countries seek to become less dependent on China by diversifying suppliers and moving production mainly to regions that are geographically closer or perceived as friendlier."The United States, Europe, and Japan have created several similar programs. The country that has benefited the most from this move by the United States has been Mexico, with American companies moving production from China to its neighbor. There are also effects in Colombia and Costa Rica, but nothing compared to Mexico," said Mr. Barral.The United States-Mexico-Canada Agreement (USMCA) also helps explain the current picture of major foreign suppliers to the U.S., but there are other trade facilitators for the Mexicans, said Mr. Barral, such as a logistical advantage and some technological and certification standardization. "Brazil is hampered by the industry’s low productivity, the lack of trade agreements, and the difficulty of integrating the global value chain."According to U.S. government data, Brazil exported $21.76 billion to the United States from January to July 2022. This year, in the same months, exported amounted to $21.47 billion. Brazil has remained almost stationary in the ranking of the largest exporters to the U.S., falling to 18th place this year from 17th place in 2022.Brazil was overtaken this year by Singapore, which increased its shipments to the United States to $23.29 billion in 2023 from $18.36 billion last year, considering the first seven months of the year, U.S. data...
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