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Do you know what raw wood is? As the name implies, it is that wood that is sold roughly, without going through a more "refined" finish, so to speak. It may contain some imperfections (such as visible splinters and burrs) and its surface is somewhat rough. The rough wood, being slightly cheaper, is widely used in parts of the construction, where there is no need to be visible, serving mainly as a structure on roofs, roofs and foundations, and can be found easily in the form of rafters, boards, slats and battens. Now, we will see how the product export data were in the year 2019.

Rough Wood

Raw Wood Exports

Wood exports were strongly defended by the President of Brazil, especially at the beginning of 2019, and this ended up boosting exports of the product. There was an increase of almost 39% in exports of wood, which generated revenue of US $ 87.2 million in 2019, which is much lower than in 2018, when the revenue generated was US $ 62.8 million. Raw wood ranked 160th in the Brazilian export ranking and 11th when it comes to ranking in Exports in the Agricultural sector 2019.

The year 2020 has already started quite productive when we talk about raw wood exports, and by the end of March, around US $ 28 million had been exported, a value higher than the same period in 2019.

Main export destinations of raw wood

Next, check out the main destinations of raw wood in 2019:

Main destinations FOB value

1st India 40.1 million

2nd China 32.5 million

3rd Vietnam 7.038 million

4th Portugal 4.79 million

5th Italy 1.20 million

Source: ComexStat

India and China appear as the main export destinations for the product in 2019, followed by Vietnam, Portugal and Italy.

Conditions for the export of raw wood

There are some rules when it comes to exporting wood, especially if it is raw, that is, without having been processed in Brazil (which is when the wood goes through processes, before it can be sold). The environmental rules make it clear that only natural woods can be exported from the Brazilian country, which are called exotic woods, such as eucalyptus and pine. To export this type of wood, only a state authorization is necessary, however, native trees are strictly prohibited from being exported, which are those natural species of the forest, so, in this case, the export of the trunk is prohibited.

Environmental legislation requires that this wood, after being legally cut, must be processed in Brazil. After that, it can then be sold to other countries as a product.

Brazil would be trying to change this law, in order to be able to export any type of tree, but this is still on paper.

Ministry of Agriculture, Livestock and Supply and the National Institute of Colonization and Agrarian Reform (Incra) prepared a booklet with data and information on the process of land tenure regularization in the Amazon.

The program will benefit 147 thousand small producers installed in the Amazon who have a quiet and peaceful possession of the land and have been waiting for decades, at least 30 years, for the definitive title. To obtain the land registration, the producers will have to have the Rural Environmental Registry (CAR) and not occupy areas with environmental embargo, conforming to the Forest Code, 2012.

The process will use remote sensing to check the geographic information of the areas of the Union (4 fiscal modules) and data from the Land Management System (Sigef), preventing the regularization of lands overlapping indigenous lands, conservation units and areas in dispute. Invaders in these areas commit illegalities that must be restrained by the police and punished by the courts.

With the final title, producers will have access to credit, technical assistance and technology, in addition to being responsible for any irregularities, such as fires or illegal deforestation, that may occur on the land.

The land regularization process has the support of the Amazon Council, of which the Map is part. The Council works in short-, medium- and long-term actions, seeking partnership with the private sector, mainly in the exploitation of the potential of the bioeconomy and low carbon agriculture in the region.

Which commodities does Brazil export the most?

The Brazilian territory is characterized by its continental dimension and abundance of natural resources (arable land, minerals, oil, etc.), providing the country with a very large potential for the production of primary products. This potential is reflected in the great importance of basic products in Brazil's export basket.

Main products exported in 2018

Source: Ministry of Industry, Foreign Trade and Services

Brazilian exports in 2018 reached US $ 239.89 billion, while imports were US $ 181.23 billion, generating a positive balance in the trade balance of US $ 58.66 billion. The export basket was composed mainly of basic products, responsible for 49.73% of exports. Next were manufactured, semi-manufactured products and special operations, with stakes of 36.08%, 12.74% and 1.45%, respectively.

The main product on Brazil's export basket was soy. Grain exports accounted for 14% of the total and, considering bran exports, the share increases to 16.8%. In 2018, grain and bran exports led to a flow of US $ 33.19 billion and US $ 6.7 billion, respectively. In addition to soybeans, crude oil oils and iron ores also stood out, not only among basic products, but in the export basket in general, accounting for 10% and 8.4% of exports, respectively, in 2018.

Among the products belonging to manufactured and semi manufactured goods, none has a weight as large as the prevailing basic products. Cellulose, the main semi-manufactured product, accounted for 3.5% of total exports, while Drilling or Exploration Platforms, the main manufactured products, were responsible for 2.4% of exports.

Top 10 export destinations in 2018

Source: Ministry of Industry, Foreign Trade and Services

In relation to the main destinations, the 5 countries that most import are responsible for 50.4% of Brazilian exports. China is the main market for Brazilian products, being the destination of 26.8% of exports, followed by the United States (12%), Argentina (6.2%), Holland (5.5%) and Chile (2, 7%). Of the total exports to China, 88.5% were basic products, providing a flow of US $ 56.83 billion to Brazil. Soy, crude oil and iron ore were the main products exported to China, with the Asian country responsible for the purchase of 82%, 57% and 54% of these products, respectively.

In conclusion, it can be said that the country's natural conditions allowed the broad development of the production of basic products, making the participation of these goods in exports reach great proportions. In addition, the strengthening of the Chinese economy and the progressive demand for basic Brazilian products give even more relevance to these products in exports and in the economy as a whole.

The Brazilian region is portrayed by its mainland measurement and bounty of common assets (arable land, minerals, oil, and so on), furnishing the country with a huge potential for the creation of essential items. This potential is reflected in the incredible significance of essential items in Brazil's fare bushel.

Principle items sent out in 2018

Source: Service of Industry, Unfamiliar Exchange and Administrations

Brazilian fares in 2018 contacted US $ 239.89 billion, while imports were US $ 181.23 billion, producing a positive equilibrium in the exchange total of US $ 58.66 billion. The fare bushel was made chiefly out of fundamental items, answerable for 49.73% of fares. Next were made, semi-made items and unique tasks, with stakes of 36.08%, 12.74% and 1.45%, individually.

The primary item on Brazil's fare crate was soy. Grain trades represented 14% of the aggregate and, considering wheat sends out, the offer increments to 16.8%. In 2018, grain and wheat trades prompted a progression of US $ 33.19 billion and US $ 6.7 billion, individually. Notwithstanding soybeans, raw petroleum oils and iron metals additionally stuck out, among essential items, however in the fare bin all in all, representing 10% and 8.4% of fares, separately, in 2018.

Among the items having a place with fabricated and semimanufactured merchandise, none has a load as extensive as the predominant fundamental items. Cellulose, the principle semi-made item, represented 3.5% of complete fares, while Penetrating or Investigation Stages, the fundamental fabricated items, were answerable for 2.4% of fares.

Top 10 fare objections in 2018

Source: Service of Industry, Unfamiliar Exchange and Administrations

Corresponding to the primary objections, the 5 nations that most import are answerable for 50.4% of Brazilian fares. China is the principle market for Brazilian items, being the objective of 26.8% of fares, trailed by the US (12%), Argentina (6.2%), Holland (5.5%) and Chile (2 , 7%). Of the all out fares to China, 88.5% were fundamental items, giving a progression of US $ 56.83 billion to Brazil. Soy, raw petroleum and iron mineral were the fundamental items traded to China, with the Asian country answerable for the acquisition of 82%, 57% and 54% of these items, individually.

Taking everything into account, it tends to be said that the country's regular conditions permitted the expansive advancement of the creation of essential items, making the cooperation of these merchandise in sends out arrive at extraordinary extents. Likewise, the reinforcing of the Chinese economy and the reformist interest for fundamental Brazilian items give significantly more importance to these items in trades and in the economy all in all.


Mr. Alessandro Jacob speaking about Brazilian Law on "International Bar Association" conference

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