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Brazil records growth in job creation in footwear production, but faces challenges with increased imports from China.
O footwear sector Ceará shows signs of recovery in job creation in 2024. Data from the Brazilian Footwear Industry Association (Abicalçados), based on records from the Ministry of Labor and Employment (MTE), show that, in the first months of the year, 3 new jobs were created in the state's footwear production. This slight increase of 0,7% compared to the same period last year indicates positive growth. Despite the encouraging numbers, the “Chinese invasion” of footwear is worrying the sector in Brazil. Abicalçados warns of the increase in imports of Asian footwear, especially with a possible free trade agreement between Mercosur and China.
The China Threat and Its Implications
They agreement could increase the entry of Chinese products into Brazilian stores, generating fears about the impact on Ceará's exports and, consequently, on the jobs created.
Ceará is the second largest employer in the footwear sector in Brazil, behind only the construction industry. In August 2024, the sector had 68,3 jobs.
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In terms of job creation, the state was second only to São Paulo, which created 4 jobs in the same period.
This shows the relevance of Ceará in footwear production in Brazil.
Footwear imports and exports in the current scenario
According to data from Comex Stat, between January and August 2024, Brazil imported US$ 324,17 million in footwear, which is equivalent to around R$ 1,77 billion.
The main countries Providers are Vietnam, Indonesia and China. Minas Gerais is the largest importer, responsible for 49% of international purchases, while Ceará participates with a share of approximately 2%.
The state acquired, in the first eight months of this year, US$ 6,37 million in footwear.
On the other hand, Brazil exports more than double in terms of added value. In the same months, US$ 717,47 million were exported, with the United States and Argentina being the main buyers of the national footwear industry.
Ceará, despite being the second largest exporter in the country, registered a 27,6% drop in exports compared to last year, totaling US$ 135 million.
Footwear production under pressure
A production of footwear in Brazil until August 2024 was more than 500 million pairs, an increase of 4% compared to the previous year.
Abicalçados CEO Haroldo Ferreira highlights that the growth in Brazilian family income has contributed to the positive performance of the footwear sector.
However, this recovery is under threat. China, one of the main exporters of footwear to Brazil, has been increasing its presence in the market.
The practice of dumping, where products are sold at prices below market value, generates unfair competition for Brazilian industries.
To protect the domestic market, there are measures in place, such as import taxes and anti-dumping tariffs, which have been extended until 2027.
The future of the footwear sector in Ceará
The Ceará State Labor Secretariat (SET) notes that, despite concerns about imports, job creation in the footwear sector remains strong.
The recent inauguration of the new factory Grendene in Crato, which generated 1 new jobs, is an example of the sector's growth.
Acting Secretary Renan Ridley believes that Ceará, especially in the footwear industry, will continue to generate more jobs, positively impacting the local economy.
In short, although Ceará’s footwear sector has regained momentum in terms of job creation, the growing import of footwear from China presents significant challenges. The combination of local production and import pressures will determine the future of the footwear industry in Brazil.
Our PT government opened the doors to the Chinese, and Brazilian businessmen who pay taxes are left with the worst products from China. You will see what this will lead to in the future.