Latin America: Brazil's Economic Development（Part 2）
Major world agricultural exporter
Abundant in natural resources, Brazil not only harnesses them to create a climate‑friendly nation, but also stands out as a key exporter of agricultural products, meat and iron ore, among others. Apart from highways and railways that cross the country, there are around 380 port terminals to facilitate Brazil’s international trade.
The Port of Santos is the largest in Latin America, accounting for nearly one‑third of Brazil’s trade. It connects all states in Brazil with over 200 countries in the world. Mainland China accounts for half of the total trade handled by The Port of Santos, followed by the US (19.7%) and Germany (7.2%), making it a major gateway for Brazil’s products to reach overseas markets; over 90% of Brazilian cotton and orange juice went through The Port of Santos. In 2024, the port handled over 179.8 million tons of products, an increase of 3.8% compared to 2023.
Since Brazil is rich in natural resources, more than half (55%) of the cargo handled by the Port of Santos is dry bulk, including sugar, soy, corn and others. General cargo (such as container cargo) accounted for 34%, while liquid bulk (such as orange juice, fertiliser and liquefied gases) accounted for 11%.
To enhance container cargo capacity, the Port has allocated a zone for a new terminal, not to mention the expansion of existing terminals. Under the new project, a new berth will open in 2025, allowing a 50% increase in the current operational capacity, reaching 9 million containers.
Brazil is a key trading partners of Hong Kong. The country is Hong Kong’s second largest export destination in Latin America, with the majority of exports being electronic equipment and machinery. On the other hand, Hong Kong is both a consumer market for Brazil, as well as a stepping stone to explore to other Asian markets, including Mainland China and ASEAN. Prime quality beef, fruits, premium coffee beans or Brazilian beans, cachaça and acai berry, to name a few, are some Brazilian products that have already entered Hong Kong market, not the mention other processed food and consumer goods.
Building on strengthened ties
An enhanced relationship between Hong Kong and Brazil is foreseeable in the coming years, especially following the bi-lateral agreements between Brazil and Mainland China in late 2024. The commitments encompass further co‑operations in trade, investment, finance, technology, sustainability, tourism, artificial intelligence and health, among others.
Leveraging these agreements, Hong Kong could continue to serve as a vital “super‑connector”, facilitating trade, investments, knowledge and technology exchanges between Mainland China and Brazil, not to mention the possibility of expanding its footholds in the Latin American region. Hong Kong’s international role could help promote knowledge exchange between Brazil and other Asian countries, as well as bolster its position as an international financial hub. Moreover, shared commitments to sustainability could align both parties in joint efforts towards a greener future. Through Hong Kong's intermediary role, further trade and tighter economic bonds among relevant markets could also be realised, fostering a deeper integration between Brazil and Asia.
[1] The four taxes include PIS, Cofins, ICMS and ISS. An earlier version of the tax reform package had also fully consolidated IPI, which is preserved in the final version and limited to certain products. Please refer to HKTDC Research for more information.
[2] Sustainable Development Solutions Network, United Nations.
[3] The Brazil-UN UNSDCF 2023-2027 signed in 2023 is designed to align Brazil’s national contributions to sustainable development with United Nations’ SDGs by addressing country‑specific issues. Under the Framework, there are five areas for sustainable development focus: Economic Transformation, Social Inclusion, Environment and Climate Change, Governance and Institutional Capacities, and Linking Humanitarian Action.
[4] World Economic Forum.
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