Bt,re#i$ian imports iiillUrn south

iii.ilnahoganyi]i::aUd traditional #0:,:,virola, ,tell.to #,3,and #7 in 1994. Onq,e., I unkn$wu:r:rs$ecies have jumped from zero t0ryerc..Cgo.,iio more than 70,000 cu. meters, especiblly new top,,export tauari and #2 cumpixa. :::::::::::

Sales at home and','ftf''.SXpon.,.hd**., skyrocketed (see charts:::bdut#)ri.i.i.ii.V€$i. years of continuous, ii.[igfi.e.ndous.i. growth may be comiU$,,,,,to',,,,4rt:::grr :i:r, Notes Gabriel GaspareilO;,exeCutive director of AIMEX (an association,of, Brazilian lumber/plywood eXporters); "The situation started tor:rCltangei.idra$r tically on the first of :il6ly..',.(,t,9.94)i when the Brazilian government,'adopr. ed a new currency, the 're$li:lrri:rrwhioh:r: would have a serious irnpEciti.i.io.fi. exports in general and plyWood,,,,:fU,:, particular." '

"In the whole of Brazil's histoi$;,r, Brazilian currency has always suf; fered devaluation facing the dollar;tt he explains. "When the real was cne:,: ated, the exchange rate was suppoied to be one-to-one. However, Solon: after, it decreased to one U.S. dolXaf:il to93(,, and now it is $l to 84p. Thet: means the real had an appreciationr,:of.r. l9Vo, or the dollar devaluated,rrrlr6,Ta:j::: In addition, we still have inf.latis:ni:::: which has been25Vo since July.t'

Some costs have increaSed"Cven more than the rate of inflation, Glue: prices have risen about 40%, iiCartoni.i, packages about 1507o.

Six months ago, the Brazilian gov,:qrnment imposed a l5Vo tax on export financing. And, to make matters wofse, the price of plywood has dropped steadily.

:::ti:i:i:i:lVithin the next five years, .64.sin.aprstlo foresees stability for irn$hsgsnyt]::]*urupixa and traditional lhsfd,vbCIil$i.i..sUUh....*t ipe, jatoba and ital4j.Ubihiii.i.i.i.O{thei:,:ispecies may fall as ithEjr..p,fi$CI...i X*0s,,,,thgigcostofproiductioni',i,rF. llilu' .thc..,a$ail$ilify,,,,o{.,,new matkets lCdtes room,fon,:iauari,,sales

:io,l.inGteme:l:1:1:::l:iii:::l:l::::i:ii:il:i:i:ili.:liililii::i:::::i:ii:l::::::,::,:,:,:':,,,,,,l,l,:,,l,:,l,l,:'l':';,l,;,:,:, , Gasparetto piedicts,,that in 10,yws .BiaziHen plants witl::54v€.,great need foi fie4r;oitation.,In, 15'to,30,ye#s;: pioduc,tion'should |inCieCCb dn;,,;o Feesiriifrom.,.f.ef,,res@!i luu.,.0r'ase1...........rs''*llll'.''','rrr.

..$iloffi1;ef1a11;G I a n ce Veai$.....of.i,i,ri$in$.,.,plywood and f.U.mibiei...ii.mpio.rts f rom Brazil i.,st0ffit',,,t-'" t""t ... enviio.n.me.h,fal pressures, plytuOOd,,,i,pfices, exchange rate Hlamed.

But in 1995, he believes exports will begin to decrease. Factors to revert thE::,:situation include: (1) the Brazilian government must adopt ,mechanisms to stimulate exportS (especially related to the real/dollar exchange rate), (2) prices must improve on the internati6nal market, and (3) buyers and sellers must cooperate further.

Above all, Gasparetto stresses, Brazil must convince the cattle raisers to stop forest clearing. By training small landowners in techniques such as repositioning the organic matter in soil, the country would make slashing-and-burning unnecessary.

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