Trade with Brazil booms post-brexit as UK pushes for LatAm markets
Trade between the UK and Brazil has seen rapid growth in the last five years following significant UK government efforts to push for improved bilateral trade relations and a reduction in red tape, analysis from global financial services firm Ebury reveals.
The latest trade data showed that Brazilian imports to the UK have more than doubled in the past half-decade, with imports in Q1 2023 standing at £773m, 52% higher than total imports for the same quarter in 2018 (£510m).
Similarly, the UK has seen a notable 46% uptick in exports to Brazil, with the latest data revealing a £204m increase from £458m in Q1 2018 to £662m in the same period of 2023.
The peak in trade reflects growing efforts from the UK government to strengthen ties with non-EU countries following Brexit. In November 2022, The Double Taxation Agreement reduced costly barriers to trade, investment and cross-border work, a significant milestone in the countries’ economic relationship.
“The Double Taxation Agreement will further intensify trade by reducing the complexity and cost of doing business which should drive long-term investment between both countries.” commented Jack Sirett, Partner at global financial services firm Ebury.
“Brazil is a G20 member and both Latin America’s largest economy and most populous nation, so easing frictions offers businesses in the UK a significant opportunity to open up new trading channels.”
Eduardo Moutinho, market analyst at Ebury’s Brazil office, said, “The UK’s move towards LatAm markets has faced considerable barriers, for instance, strict regulation and China’s status as South America’s largest trading partner.”
“It’s very encouraging to see the UK’s progress in overcoming these hurdles, the Double Taxation Agreement and Rishi Sunak’s recent £80 million pledge to Brazil’s Amazon Fund show real promise for this trading relationship.”
