Positive prospects for the Brazilian furniture sector

Source:
ITTO
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According to the Brazilian Market Intelligence Institute (IEMI), prospects for the furniture sector in 2015 are bright despite the disappointments of 2014. IEMI estimates a 1.4% growth in revenues for manufactures and a 10% growth in revenue to furniture retailers.

2014 was the first year for a decline in furniture output since IEMI started to compile data on the sector and the main reasons behind the fall were weak domestic demand and a tightening of domestic availability of credit. IEMI was created to attend to the growing demand of industries for statistics related to the market for different sectors.

Initiative in support of exporters

The Ministry of Development, Industry and Foreign Trade (MDIC) and APEX Brazil, (the Brazilian Agency for Export and Investment Promotion) met with representatives of the Brazilian Furniture Industry Association (ABIMÓVEL) as well as representatives from around 80 other national Industry associations. The purpose of the meeting was to outline the government's plan to support exporters.

The aim is to revive Brazil's foreign trade especially manufactured goods exports through partnerships between private and public agencies. The focus will be on trade promotion, market access, exports financing, trade facilitation, taxation and transparency and private sector participation.

ABIMÓVEL presented data on the furniture industry during the meeting and identified where action is required such as:

  • a review of the Export Financing Program (PROEX);
  • elimination of exports taxes, particularly the tax on circulation of goods and services (ICMS); guarantees to attract private capital for longterm financing;
  • revision of rules that restrict back-to-back operations;
  • trade agreements and negotiations with Colombia, Peru, Chile and an effective agenda for MERCOSUR;
  • addressing the negative impact from the end of General System of Preferences (SGP) and the importance of establishing an agenda of negotiations with the United States;
  • reviewing double taxation agreements;
  • assessment of logistics costs that undermine the competitiveness of exporters;
  • the need to establish a foreign trade policy.
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