Only 0.88% of Brazilian companies sell abroad

This is the conclusion of the study Profile of Brazilian Exporting Firms, released this Monday (26th) by the Ministry of Development, Industry, Commerce and Services (MDIC). The panorama reveals the concentration of exporting companies. Although few, they account for 15% of formal jobs in the country, with 5.2 million workers.

As it is based on data from the Annual Social Information List (Rais), which have a two-year lag, the study covers the situation of exporting companies up to 2020. With the 2023 Rais, which will release data for 2021, the MDIC intends to launch a new edition.

The main differences stem from regional disparities. Exporting companies continue to be concentrated in the South and Southeast of Brazil. In 2020, 42.8% of Brazilian companies that sold abroad were in the state of São Paulo. In second place comes Rio Grande do Sul, with 11.1%.

When comparing the relationship between the number of companies and the state’s share of exports, the disparity grows. The state of São Paulo concentrates 20% of foreign sales, and Rio Grande do Sul holds 6.7%. On the other hand, Mato Grosso do Sul, whose exports are mainly agricultural and livestock, has only 0.7% of exporting companies, against 2.8% of the exported value.

In the case of agricultural states, one of the explanations is the fact that the study was based on the National Register of Legal Entities (CNPJ) of trading companies, companies that buy from farmers and process exports. In the case of the mineral extraction industry, the strong concentration in the market of oil and mining companies, which have a great weight in the trade balance, weighs heavily.

“This study is important because it allows designing public policies to expand the number of exporting companies and internalize the benefits of exporting regions”, explains the secretary of Foreign Trade at the MDIC, Tatiana Prazeres. “Exporting makes a difference for company employees. Those who export pay better and hire more workers with higher education compared to other companies”, she adds.

barriers

The expansion of the export sector, however, faces barriers. In addition to regional inequalities, company size is a key factor for a business to sell abroad. According to the study, 84.5% of non-exporting companies have up to nine employees. Among the companies that sell abroad, 26.5% have 50 to 249 workers; and 30.8%, from 10 to 49 workers.

According to Tatiana Prazeres, despite the concentration in the extractive industry (exporters of oil and minerals), the favoring of larger businesses occurs in all economic sectors surveyed. “Micro and small companies find it more difficult to obtain information about foreign markets and, often, to overcome bureaucracy. This generates costs”, analyzes the secretary.

The sector in which it operates also interferes with its export capacity. In the general average of companies, only 1% have a chance of selling abroad in the first ten years of operation. The probability rises to 4% in the manufacturing industry and to 7.9% in the extractive industry.

The obstacle, found the study, occurs mainly in the entry of new exporters. If a company manages to sell abroad, the chance of exporting the following year is around 65%. “The access barrier (to new companies) is high, but, once this barrier is overcome, it is more common for a company to export the following year”, highlights the Foreign Trade Secretary.

Markets

Regarding the destination of goods, the study found that, despite the total predominance of Brazilian exports to China and the United States, Mercosur and Latin America continue to be the most important destinations. In 2020, according to the most recent data, 61% of Brazilian exporters sold their products to Latin American countries.

According to the MDIC, two factors contribute to this result: the proximity of the countries and the low volume of tariff barriers, mainly among Mercosur countries. However, when looking at growth between 2018 and 2020, larger markets lead the way, with 24% growth in the number of exporters to China, 21% to the United States and 16% to the European Union.

For the Secretary of Foreign Trade, interest in the largest consumer markets justifies the importance of foreign policy in closing trade agreements. “The data confirms the importance of Brazil closing trade agreements. If we want to expand export companies, conclude commercial agreements and reduce barriers that our products face in foreign markets, we need to negotiate, ”she says.

In the evaluation of Tatiana Prazeres, the study is important to draw up diagnoses and make the government encourage the increase in the number of exporting companies, mainly in the interior of the country. “Companies that export are more innovative, generate more jobs and pay better wages. This is the importance of promoting foreign trade within Brazil to internalize benefits”, she concludes.