São Paulo, May 19, 2004 (Agência Brasil) - The Minister of Development, Industry, and Foreign Trade, Luiz Fernando Furlan, said yesterday (18) that Brazil should export US$ 83 billion or more this year. According to the Minister, exports are growing at an annual rate of over 20%.

"Last year we broke out of the US$ 60 billions, and in the last 12 months we surpassed the US$ 80 billion mark. That is, in the little more than 16 months since this Adminstration took office, our annual quantum grew from US$ 60 billion to US$ 80 billion. Our target is getting closer and closer," affirmed Furlan, referring to the government's US$ 100 billion export target for this year.

The Minister participated in a ceremony at which the Pão de Açucar and Casino groups [the former, a large Brazilian supermarket chain] signed an agreement with the federal government to promote the "Brazil Festival," a project which will place 140 Brazilian products in the display racks of 700 stores that are part of the French Casino hypermarket chain. The festival begins June 9 and will last 10 days. It is expected that the products will be viewed by over 14 million people and sales will amount to US$ 6.3 million (R$ 20 million). "This is a joint effort. Innovations like this open the way and gain exposure for Brazil. For every product that is produced here, there is some place in the world where it can be sold," he emphasized.

Nevertheless, for the government's targets to be met in fact, small firms and new products should be included in the export effort, the Minister pointed out. In his view, what is needed is "to demystify the image of samba, coffee, and Pelé." "This is a likable image, but it doesn't produce results for companies and doesn't create jobs and opportunities," he remarked. According to the Minister, the country takes advantage of only 30% of its export potential.

The rise in the price of petroleum is of concern to the Brazilian government, because its global effect is to raise costs and, chiefly, to increase inflation in some cases, but Brazil should not be fearful, because the country is self-sufficient, Furlan affirmed. According to the Minister, "Brazil is a country that is reasonably well vaccinated when it comes to petroleum, because it is self-sufficient nowadays, as well as being an importer of raw materials and an exporter of products containing added value."

The Minister recalled that last year, for the first time, Brazil's trade balance was positive in this sector, with a US$ 100 million surplus, due to the exportation of gasoline, lubricants, and products containing added value. "The impact [of the price rise] on the Brazilian economy is much less important than it would have been in the past, because our current dependence is less," he said.

Translator: David Silberstein