Brazil coffee exports up; soluble down.
A report recently released by ABICS (Brazilian Association of Coffee Soluble Industry) estimates that exports of Brazilian soluble coffee will close 1998 with a drop of 27%. Dollar export earnings for soluble coffee are expected to be $268.8 million in comparison with $373.0 million registered in 1997. This is the worst performance in seven years. The loss in volume reaches 8% with 39,000 tons shipped this year against 54,200 tons during 1997. The reason for the drop according to Sergio Coimbra, president of ABIC is the world financial crisis especially in Asia and Russia, the principal markets for Brazilian soluble coffee. Another reason is the taxation on Brazil soluble coffee, and the taxation on Brazil's soluble imports imposed by the European Common Market which is presently 8% but will increase to 10.5% as of January 1, 1999. Soluble imports from Colombia and Ecuador are not taxed due to an arbitrary action that favors those countries on the basis that measure stimulates coffee production and helps to combat the drug trade. Brazilian soluble which accounted for 18% of the European market in 1993 fell to 7.7% in 1997 due to the taxation. Colombia soluble during the same period grew from 5.4% in 1993 to 7.8 in 1997, surpassing the volume exported by Brazil.
The Brazilian government and trade associations have long protested the discrimination and after exhausting negotiations with Common Market authorities have now registered a formal protest with the World Commerce Organization in Brussels. Hearings a re expected in the near future.
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|Publication:||Tea & Coffee Trade Journal|
|Date:||Mar 1, 1999|
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