Home / Knowledge / News / Textiles / Brazilian textile sector reeling under import influx
Brazilian textile sector reeling under import influx
Oct '12
Mr Aguinaldo Filho
Mr Aguinaldo Filho
The Brazilian textile and apparel industry – among the top five in the world is reeling under the impact of two challenges – large scale imports and high labour and energy costs. These have created a cascading effect in the form of closures or factories relocating to low-cost near by countries.

As per figures from the Brazilian Textile and Apparel Industry Association (ABIT) the sector has around 30,000 in its fold and posted an annual turnover of around US $63 billion in 2011. It is also the second biggest employment creator in Brazil and represents 10.6 percent of all employees in the Brazilian manufacturing sector.

“The import surge of textile products and especially of apparel is definitely one of main factors that impacted the performance of Brazilian industry in the past few years. Naturally, this surge could only have happened, due to our overvalued currency and therefore we cannot consider it as a fair competition”, informs Mr Aguinaldo Diniz Filho, President of ABIT.

He adds, “At the same time we had an increase in production costs especially in items such as electricity and labor, factors not directly controlled by the manufacturers and therefore harder to absorb and remain competitive”. 

In 2009, Brazil imported textiles and clothing worth $2.69 billion and $767.07 million respectively, in 2010 it rose to $3.89 billion and $1.07 billion, in 2011 it further increased to $4.45 billion and $1.72 billion respectively and in the first nine months of 2012 it has reached $3.30 billion and $1.64 billion, respectively.

About government support to tackle the crisis, he says, “The Brazilian Government is aware of the problems faced by the Brazilian industry and they are working hard on a domestic competitive agenda. The necessary measures are not easy to create and implement and many of them will demand time to become effective.

“The Govt agenda is focused on the reduction of costs such as electricity, taxes, basic interest rates, bureaucracy, education and qualification and others. We have a free floating currency and therefore we do not manipulate to be artificially competitive, which differentiates us from our competitors”, he reveals.  

On efforts from ABIT to reduce impact of the twin challenges, he explains by saying, “We are working closely with our government. In the short term, we believe that the most important measurers are trade remedies actions to fight against unfair and illegal trade practices.

“In the mid to long term, we believe that the systemic competitive conditions in Brazil will be less disadvantaged allowing us to compete in a more balanced and fair manner with foreign manufacturers, he winds up by saying.  

Fibre2fashion News Desk - India

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Awen Delaval

'Natural fibres are appreciated for traditional authenticity'

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search