The positive numbers indicate that Brazilian leather exports contrast with the national trade balance from January to June this year showing a US$3 billion deficit.

In June 2013, leather sales (wet-blue, crust and finished) to export markets reached US$197.9 million, an increase of 9.4% in relation to the same period last year, according to data by the Brazilian Foreign Trade Secretariat  (Secex), with analysis from the Centre for the Brazilian Tanning Industries (CICB).

The Executive President of CICB, José Fernando Bello, predicts that in the coming months the leather industry has to act with caution. According to Bello, the continuing problems in the global economic sphere, such as the issues faced by the euro zone, and the growing concern with the slowdown of the Chinese economy may restrict international trade.

The main export destinations for Brazilian hides between January to June 2013 were: China / Hong Kong with 35.0%, Italy 23.1%, and the United States with 10.1% (by value).

Brazilian exclusion in the European Union Generalised Scheme of Preferences (SGP) planned to January of next year is also a concern for the CICB. “This implies an increase in the prices of Brazilian exports of hides in to Europe in the order of 3.5%, consequently risking the leather exports to the EU”, Bello adds. Currently about 35% of Brazilian hide exports are destined to the European continent. Bello said that CICB is discussing bilateral agreements to lessen the impact of this issue.

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