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Year begins with setback in footwear exports

The first month of the year began with a decrease in shipments of footwear. In January, 12.55 million pairs were exported, for which USD 91.5 million were paid, a 16.1% decrease in volume and a 7.3% decrease in revenues in relation to the same month of 2019.

The executive president of the Brazilian Footwear Industries Association (Abicalçados), Haroldo Ferreira, highlights that the figure is the result of political instabilities in Latin America, an important market for footwear exporters. Another issue, according to him, is the de-escalation of the trade war between the United States and China, which has been making U.S importers gradually return to Asian suppliers. "At the end of last year, a reduction in the surcharge from 15% to 7.5% was announced, in addition to the non-imposition of another list that would be surcharged", says Ferreira, stressing that the United States is the main destination for Brazilian shoes abroad.

Destinations
The main destination of Brazilian footwear in January was the United States, to where 1.17 million pairs were shipped, generating USD 19.33 million, a 30% decrease in volume and a 4.7% increase in revenues in relation to the same month last year. The second destination in January was France, which imported 787.64 thousand pairs for USD 6.67 million, a 55.7% decrease in volume and a 26.6% decrease in revenues in comparison with the same period in 2019. With a weak basis for comparison, Argentina was the third destination of Brazilian shoes in January. During the period, Argentinians imported 446 thousand pairs, for which USD 4.77 million were paid, increases both in volume (36%) and in revenues (21%) in relation to January last year.

Origins
In the first month, the main origin of exported shoes was the state of Rio Grande do Sul, from where 2.55 million pairs were shipped, generating USD 36.66 million, a 7.7% increase in volume and a 3.3% decrease in revenues in comparison with the same period last year. Ceará was the second origin in January, with 5.9 million pairs exported, generating USD 32.37 million, decreases both in volume (-19%) and in revenues (-13.8%) in relation to 2019. The third origin during the month was the state of São Paulo, which exported 688.55 thousand pairs for USD 7.8 million, a 46.5% increase in volume and a 9.6% increase in revenues in relation to last year.

Imports
The year 2020 began with an increase in footwear imports. Last month, 2.8 million pairs came into Brazil, for which USD 41.25 million were paid, a 0.2% increase in volume and a 4.3% increase in revenues in comparison with the same period last year.  The main origins of imports were Vietnam (1.4 million pairs and USD 24.2 million, 6% and 10% increases, respectively, compared to 2019); Indonesia (419.7 thousand pairs and USD 6.73 million, 26.4% and 20.4% decreases, respectively); and China (650 thousand pairs and USD 5 million, 23% and 69.4% increases, respectively).

In footwear parts – uppers, soles, heels, insoles etc. – imports were equivalent to USD 2.25 million, a 51.5% decrease in relation to 2019. The main origins were China, Paraguay, and Vietnam.