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International trade

Brazil and China Strengthen Trade Ties with New Maritime Route

Strategic Insights

— 2 min read

The Ministry of Integration and Regional Development (MIDR) has established a direct maritime route between the Greater Bay Area (Guangdong-Hong Kong-Macau) and the Port of Santana das Docas, in Amapa, Brazil. This new connection aims to strengthen international trade, regional development, and the bioeconomy, with a focus on regional integration and productive integration. Minister Waldez Goes has emphasized the importance of this initiative, stating that it will reduce logistics costs, shorten transportation times, and expand the presence of Amazonian products in the Asian market.

Key Takeaways:

  • The new maritime route will reduce logistics costs and shorten transportation times between Brazil and China.
  • The first ship is expected to arrive soon at the Port of Santana, with a second shipment scheduled for September.
  • The new connection will drastically reduce transport time between the Amazon and China, from 90 to 180 days to 30 to 35 days.
  • The Guangdong Greater Bay Area boasts China's largest Gross Domestic Product (GDP), with 120 million consumers with significant potential to absorb Amazon products.
  • Brazilian companies will have the opportunity to open branches in Zhuhai and make their products directly available to Chinese consumers.
  • The trade relationship between Brazil and China is expected to grow significantly, with estimates of a two- or three-fold increase in trade values in the coming years.
  • The new maritime route will open space for diversifying Brazilian exports and strengthening an agenda focused on the bioeconomy, innovation, and regional development.
  • The Port of Gaolan has been in operation for 20 years and has a direct route to Amapa, established through the political dialogue between President Luiz Inacio Lula da Silva and President Xi Jinping.
  • Subregional cooperation between Brazil and China is expanding, with the creation of a new maritime link being evaluated.

Subregional cooperation is at the heart of this expanded relationship. Federal Representative Paulo Pimenta (RS) stated that, in addition to the established route between Gaolan and the Port of Santana, the creation of a new maritime link is being evaluated. He emphasized the possibility of expanding to other routes, including Rio Grande do Sul.

Statistics:

  • The first ship is expected to arrive soon at the Port of Santana.
  • The second shipment is scheduled for September.
  • The transport time between the Amazon and China is expected to be reduced from 90 to 180 days to 30 to 35 days.
  • The Guangdong Greater Bay Area boasts China's largest Gross Domestic Product (GDP), with 120 million consumers with significant potential to absorb Amazon products.
  • The trade relationship between Brazil and China is expected to grow significantly, with estimates of a two- or three-fold increase in trade values in the coming years.

Sources:

  • https://www.gov.br/mdr/pt-br/noticias/produtos-da-amazonia-ganham-novos-mercados-com-rota-direta-para-a-china

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