Brazil Wine Market Report JBC EMP July 2011 - California Wine ...

Import Market Shares by Country of Origin
21
Brazilian Wine Market Report
The chart above clearly demonstrates the dominance of Chilean and Argentinean wines
imported into Brazil. Both countries have seen their wine exports increase in value in the
past three years. Chile controls 29 percent of total imports at an average FOB price of US
$25.20 for a 9 liter case and Argentina maintains 22 percent at FOB US $23.50. Together,
Chile and Argentina account for 57 percent of the imported wines to Brazil. The wine
producers of the European Union follow distantly, yet maintain their positions as a result of
established and recognized brands. The United States and some other New World wine
producers, South Africa and Australia, have yet to fully actualize their potential in the
market. The United States, the 10 th largest exporter, showed significant increases in both
quantity and value from 2009-2010. The table below shows Chile and Argentina maintaining
over 57 percent of wine import value, while the US currently holds a meager 0.56 percent.
Brazil Trade Report
Import Market Shares by Country of Origin
1. Chile 29.12%
2. Argentina 22.15%
3. France 14.23%
4. Italy 13.30%
5. Portugal 11.91%
10. US 0.56 %
worldtradestatistics.com/gta
Brazil has realized the potential benefits of international cooperation and has made efforts in
recent years to open its markets to international trade. Brazil’s trade policy is focused on
membership in multinational organizations. Brazil is an original member of the World Trade
Organization and is an active participant and leader, especially for developing countries.
Brazil grants MFN status to all of its trading partners and over 75 percent of Brazilian trade
is done with these partners.
Brazil is also very focused on collaborative regional trade. Brazil is one of the founders of
the Southern Common Market (MERCOSUR), which represents over 250 million people and
three-quarters of South American economic activity. The other full members include
Argentina, Paraguay, and Uruguay. Bolivia, Chile, Colombia, Ecuador, and Peru hold
associate member status which allows them to join free trade agreements, but remain
outside the customs union. Venezuela is on the cusp of becoming a full member, pending
ratification. MERCOSUR has pursued different trade negotiations with Israel, India, South
Africa, Egypt, the Gulf Cooperation Council, Jordan, Morocco, Turkey and the European
Union, though each has met difficulties in ratification and implementation. Several
MERCOSUR leaders reject the idea of potential US free-market policies.