Although in 2013 the country exported 1.3% more goods typically produced by the manufacturing industry than in the previous year, the trade balance of such goods reached a record deficit of US$ 59.7 billion. The even-greater increase in imports, of 5.6%, accounted for such deterioration. Since 2006, trade in these products have deteriorated, i.e., after 2005, when their balance reached the highest surplus of the history: U.S. $ 31.1 billion, the decline in the balance has been uninterrupted.

 

Even the positive balance of US$62.3 billion in the other types of goods, primarily mining and agriculture, was not enough to ensure a positive trade balance for the country. Indeed, despite its expression, such balance underperformed the amounts reached in 2012 and 2011. This fall resulted, in addition to problems in the production and exports of oil, from the lower exports of these other goods in relation to the previous two years: from the record US$ 78.6 billion in 2011 to US$ 62.3 billion in 2013. Hence the trade account as a whole recorded a surplus of US$ 2.6 billion, its worst balance since 2000, when it experienced a US$ 732 million deficit.

 

Regarding the trade in products of the manufacturing industry according to the classification by technological intensity, namely high, medium-high, medium-low and low, there are some relevant points to be highlighted:

 

Only the low-intensity category registered a surplus in 2013, US$ 40.8 billion, still below that observed in 2012 and 2011. Its exports suffered a slight decline of 0.1%, to US$ 59.7 billion, while imports grew 0.5%. This group includes roughly two types of goods: those whose production processes are intensive in natural resources abundant in Brazil, like food, beverages, wood products, paper, pulp etc; and goods whose production intensively employs human resources, such as textiles, clothing, footwear, among others. The first group, food supplies in particular, accounts for the surplus. The second has been registering a negative balance.

 

Among the four segments, only the set of goods of the middle-lower range managed to improve its balance, which did not stop it from presenting a deficit of US$ 7.1 billion, the fourth deficit in a row. This was a reflection of the behavior of the two main types of goods in this category: petroleum products, fuels and related products, with a US$ 15.4 billion deficit; and metal goods, with a surplus of US$ 5 billion, but experiencing a further decline in exports, which stood at US$ 19.2 billion. For the first time the surplus of metal products was not the largest among the goods in this range: the naval industry had a positive balance of US$ 7.3 billion, with exports of US$ 7.9 billion. But such figures are largely due to exports of platform supply vessels for oil companies abroad, who lease them to Petrobras' operations in Brazil, under the Repetro program.

 

The medium-high intensity range posted the greatest deficit in 2013, of US$ 61.4 billion. Brazil exported US$ 40.0 billion in goods typically produced by medium-high intensity activities. Imports of these goods reached staggering US$ 101.3 billion. Such amount was below those observed in 2012, 2011 and 2008. This segment includes materials for land transport, a significant part of capital goods, besides chemicals, which cover a wide range of intermediate goods.

 

The exchange of goods produced by high technological intensive activities registered a deficit of US$ 40.0 billion last year. Exports fell to US$ 9.7 billion, a value also below that observed in 2007 and 2008. Imports rose to a record level of US$ 41.7 billion. Most of this group of goods are products assembled with extensive global supply chains, such as the aircraft industry and the activities of the electronic complex. Electronics and pharmaceuticals experienced deficit; the highlight was the negative balance of electronics. Aeronautical and space equipment obtained the only surplus of this track.

 

According to the BIS, the Brazilian real effective exchange rate depreciated in 2012 and 2013. Such depreciation still does not seem to have had a satisfactory impact on the country's commercial relations. The worsening of the balance and, specially, of the exports is associated with a drop in the prices of relevant items exported by Brazil, such as agricultural and industrial commodities. This fact asserts the urgency of intensifying negotiations with trading partners to (re)insert Brazil in global value chains, a process which should be accompanied by the idea of re-industrialization. And the starting point should consider that the process of exchange rate appreciation that preceded the last two years has also affected domestic linkages, with loss of steps in the mentioned chains. In parallel, a better coordination between the government and the private sector is essential to reinvigorate investment.