São Paulo, June 30, 2003 (Agência Brasil - ABr) - On Friday (27), the Minister of Development, Industry, and Foreign Trade, Luiz Fernando Furlan, said that the country will finish the first semester with a level of exports above what the government projected.

According to the Minister, the economy should grow around 2% this year, "and a zero or sub-zero rate of growth of the domestic market is unacceptable." To try to revert this tendency, he said that creative solutions are being discussed with various sectors to awaken this market. "We can't allow ourselves to be dealt a blow by this wintery atmosphere we are experiencing, because spring and summer are coming soon, and we have to be ready."

Commenting on the good performance of foreign trade, he said that, in comparison with last year, the exchange rate is less favorable, and the nominal rate will be below last year's average, and, after adjusting for inflation, the difference will be even greater.

Minister Furlan said that the efforts of the export promotion agency will begin to produce many results. This year, around US$ 60 million are being invested in trade promotion, and this amount should grow next year. One of the areas the country should exploit is the sale of software, which is the largest item being negotiated with India, which increased its overall purchases of Brazilian products by 100%.

He also recalled trade with China, which moved from fourth to second place, surpassed only by the United States. There was also a 40% advance in exchanges with Russia, and exports to Argentina have improved 80%, compared with last year, and, by the end of the year, at least two-thirds of the US$ 2.7 lost last year should be recovered. (DAS)