Textile Production Falls in Brazil. Chinese Are Blamed.

Between January and April of this year, the São Paulo, Brazil, textile industry produced 5% less than it did over the same period last year.

According to the president of the Textile Industry Syndicate (Sinditêxtil-SP), Rafael Cervone Neto, one of the factors impeding the sector’s growth is the exchange rate.


“Many entrepreneurs are having to comply with contracts signed last year, when the dollar was on a higher plateau.”


Other problems identified by Cervone are the rise in interest rates and excessive taxation, but he affirms that one of the main obstacles is competition from Chinese products.


The president of the industrial association says that textile firms are very eager for safeguards against Chinese products to be regulated.


The text, which was approved by the Foreign Trade Chamber (Camex) of the Ministry of Development, Industry, and Foreign Trade, will be sent to the Presidential Chief of Staff’s Office and is expected to be turned into two decrees, which are still without definite dates to go into effect.


Despite the deceleration in the São Paulo textile industry, the balance indicates that exports are up 8.1%, maintaining the state’s national leadership in the sector, with a volume of US$ 173.5 million.


The 3,400 companies affiliated with the Sinditêxtil earned a total of US$ 4.54 billion in 2004, and, between January and May of this year, their earnings amounted to US$ 1.89 billion, 1% more than during the same period last year.


Exports came to US$ 415.77 million in 2004 and US$ 173 million in the first five months of this year, which corresponds to an 8% increase.


Imports, on the other hand, totaled US$ 379.44 million last year and US$ 166 million in the first five months of this year, which represents a 20.5% increase.


ABr – www.radiobras.gov.br

Tags:

You May Also Like

Brazil Industry Has Worst Semester Since 1975

In Brazil, the industry grew 0.2% in June when compared to May, the sixth ...

Bravo, Brazil, for Refusing US Money, Says Lancet

Brazil pays for most of its AIDS program itself. The nation’s taxpayers, for instance, ...

Despite Big Drop from December Brazil Auto Industry Has Best January Ever

In Brazil, production and sales, domestic and foreign, of vehicles had their best January ...

Brazil: China Lifts Soy Ban

Brazil should resume soon its shipment of soy to China, after a two-month-long embargo. ...

Brazilian Officer Who Killed Indian Faces Jury 9 Years After Crime

Today, August 4, a military police officer charged with murdering Raimundo Silvino, an indigenous ...

Amazon Burns a New York City of Trees in a Month. A 20% Reduction, Brazil Says

Brazil's Amazon deforestation totaled 876.80 square kilometers (338.53 square miles) in June, an area ...

Brazil’s Petrobras Chooses U.S. PR Firm

Brazil’s oil giant Petrobras – Petróleo Brasileiro S.A., has chosen global investor and public ...

Brazilian Surplus Tumbles Due to Strong Import Growth

Brazilian exports totaled US$ 2.325 billion last week, 3.47% more than in the previous ...

Petrobras's probe ship off the coast of Brazil

Light Oil Discovery in Brazil Opens Windows of Opportunity

Tests carried out by Petrobras through vertical well 1-RJS-628A drilled at 2,140 meters (7,021 ...

In Brazil, Only 41% of Youngsters 15 to 17 Attend School

Representatives of the 34 member countries of the Organization of American States (OAS), international ...