Brazil Shoe Industry Is Facing Crisis &Nbsp; Import Shoes Affect Development.

June 24th Brazil

At a press conference held at the headquarters of the St Paul Federation of industrial enterprises (FIESP), an article on Brazil shoe making was reported.

For the group, the issue of exchange rate has been a threat to the healthy development of export companies and the entire production industry.

He explained, "and this is a problem that can be easily solved because different countries show that it is possible to maintain their own currency value, and obviously these countries are developing.

Studies show that the fair value of the US dollar in Brazil is US $2.91 and today its value is maintained at US $1.6.

"We are on the edge of a new crisis," said Abicalcados chairman.

In the estimation of the group, Brazil should regard the shoemaking industry as a whole rather than a single case of each company, which explicitly refers to the Azaleia factory which was closed down in Parobe.

He stressed that "if Brazil wants to become bigger and stronger in the footwear industry, it will surely become a key member of the world market with clear strategy".

Regarding the expansion of the anti-dumping duty system to third countries (Vietnam, Malaysia and Indonesia) who have entered the Brazil market to import Chinese footwear, Cardoso expressed regret for the federal government's delay in taking relevant measures.

"We have made an official request in January and a deadline of three months, but so far, no reply has been received.

The worst part is that we realize that the request is still unresolved and it is not just our request.

In this case, Cardoso pointed out that the industry has created many new jobs in recent months and has resumed growth last year.

"In April, we only created one thousand jobs, which means almost nothing," he added.

With regard to the closure of the Azaleia factory in Parobe, he noted that this was determined by the adverse macroeconomic environment.

When asked about the possibility of production in Brazil's main shoe making center, Rio Grande Dezhou, he said that if the state imposed similar conditions on supply, such as the northeastern states of the country, it would be a viable option.

"Rio Grande Dezhou has an advantage over any other state because it has the largest and most complete footwear cluster in the world," he said.

Cardoso emphasized that the industry itself was developed to provide more jobs in Brazil.

"The characteristic of our industry is to make quick response when there is a suitable plan.

If trade barriers against third countries are expanded and the exchange rate reaches a reasonable level, do not doubt that the industry will increase and will produce about 500000 direct jobs in the short term.

This means that 800 thousand people will work in the entire production chain, which represents almost 10% of all industries in Brazil.

He said.