Brazil exports to Iraq up 25% in first semester

Logística Brasil - - 21/08/2019

Brazilian exports to Iraq grew 25% in the first half of 2019 over the same period of 2018, and totaled US $ 258.5 million. Sugar cane, chicken, live cattle and tubes used by the oil and gas industry are the leading products in sales. The export tariff is completed with machinery for construction, orthopedic, dental and furniture in general. Other items such as medicines and home care line indicate that the Brazilian businessman is exploring new opportunities in the Iraqi market. With more than 39 million inhabitants and the 2nd largest oil reserve in the world, Iraq allows strong performance of Brazilian medium-sized companies, being the Chamber a facilitator of the certification process and logistical support.

According to Jalal Chaya, vice-president of the Brazil Iraq Chamber, Iraqi importers and Brazilian exporters have all the necessary support to carry out their business. “The Chamber conducts market research to analyze products and costs compared to other countries in the world, and in the Chamber’s social media, events and fairs are published that help promote products and businesses from various sectors, seeking to strengthen their business relationship between both countries, ”says


in Iraq requires origin certification for all imported products. This measure helps combat piracy and ensures the quality of what is sold to its domestic market. Exporters who ship their goods without the documentation required by the Iraqi government may have difficulty clearing their goods.

“The certificate speeds up the process. We are the only certifying entity in South America with recognition from the Iraqi government, ”he informs. About estimates of foreign sales growth for the next semester, Chaya explains that there is no way to predict why the foreign market is very volatile and depends on various conditions, such as favorable exchange rate and import market with high buying pace. However, the entity has sought to approach industry associations and federations to create trade missions in partnership with Apex, and has been permanently studying Iraq’s local demands to assess the best opportunities for Brazilian products.

Internationalization Plan

It is undeniable that small businesses face difficulties such as access to credit and qualified professionals to conduct business activities in other markets. However, by drawing up an internationalization plan, taking into account the resources available to the company and the particularities of a sector of interest, export barriers are considerably reduced, increasing the chances of successful trade with other countries. It is worth noting that the export process is still bureaucratic in Brazil, but the Single Foreign Trade Portal has been acting to facilitate operations. In general terms, the internationalization plan serves to identify the advantages and difficulties of exporting a good or service. Check out the most important information, according to the Federation of Commerce of Goods, Services and Tourism of the State of São Paulo (FecomercioSP):

Company  analysis

It is good for the company to make sure it is really ready to export. It is necessary to take into account the maturity of the company, such as having a good participation in the domestic market, having financial health for initial investments, identifying its competitors (what they are exporting and to which countries), among other information.

Company Account Analysis

It is important to assess whether export is a workable operation for the company. The entrepreneur should be aware that it is necessary to have cash resources to cover any expenses that may occur in the initial internationalization phase, such as travel, market research, participation in fairs, among others.

Potential Market Identification

The company needs to identify in which countries its product finds good market opportunities. What can help in this task is the “Strategic Map of Markets and Trade Opportunities”, provided by the Brazilian Export and Investment Promotion Agency (Apex-Brasil). In this platform, we highlight countries considered strategic for Brazilian commercial activity that were destination of approximately 80% of Brazilian exports to the world. It is also possible to identify the sectors and ways of acting in each of these markets.

Potential Market Study

To increase the chances of a successful export, one must know the culture and local normals. The products offered may possibly have to be adapted to some extent to meet the market criteria in which they will be marketed. It is also important to identify potential competitors and partners, and to study whether the country’s economic and political conditions are favorable for export.

Product offered analysis

When preparing the internationalization plan, it is important to thoroughly analyze the product to identify if it meets the technical standards of the country in which you intend to market it. Therefore, it is advisable to present all technical details in any negotiation. Small and medium-sized entrepreneurs can look to the Export Technology Support Program (Progex) of the Institute for Technology Research (IPT) to adapt their products to the technical requirements of an overseas market.

Product Pricing

In general, exported products are exempt from some taxes (IPI, ICMS, PIS / Cofins), which contributes to more competitive prices outside the country. In any case, an accountant can help in pricing, having to consider costs and any typical foreign trade problems such as delivery delays.

Knowledge of international trade terms and trade agreements

The company must know the rules that define the rights and obligations of exporters and importers. It is also important to use trade agreements entered into by Brazil with other countries, which facilitate foreign trade operations. Entering the export market, therefore, requires planning for the experience to be positive. With this in mind, the entrepreneur who can see beyond the obstacles has a great chance to enjoy the benefits of international trade.




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