Brazil is an export-oriented country. The country depends on the shipments of raw materials to keep it moving in the right direction. For the last three years, the export business has been down, and now some exporters say the Dilma Rousseff trial must come to an end before the export business can start growing again. The political situation in Brazil is a mess, according to Eucatex CEO Flavio Maluf. Maluf would like a general election before the scheduled 2018 if Rousseff is removed from office. Most Brazilians are not excited about having the interim president, Michel Temer leading the country, according to Maluf.
Eucatex has been exporting products for the construction and building business since the 1960s. The Maluf family started producing ceiling tiles made from eucalyptus wood for the domestic market in the 1950s. Eucatex was born from the Maluf family’s sawmill business, and Flavio Maluf has turned the company into an international giant. Eucatex has offices all over the world.
Brazil had a very strong trade agreement with China. At one time, China was importing 20 percent of all the exports that came from Brazil. But when the bottom fell out of China’s economy, the country cut its import needs. Today, the European Union is Brazil’s largest trading partner and one of Eucatex largest supporters as well. China is still importing building products from Eucatex because the construction business in China is supported by the Chinese government, but business is not as strong as it should be, according to Maluf. Flavio Maluf is looking forward to a decision from the court, so the Rousseff matter is put to bed. He also wants the Brazilian government to start talks with the United Kingdom, so Eucatex doesn’t lose more business because of the Brexit vote to leave the EU. Both of those issues will impact the future of the export business as well as the current condition of the export industry, according to Flavio Maluf’s online blog.
Maluf said Eucatex is still in good shape in terms of product demand, but he is concerned that the fragile Brazilian economy is not going to respond positively if other issues develop in China, United States, Argentina, or the European Union.