Brazils carnival is made in China

Some 80 per cent of costumes on show at Brazil's iconic carnival festival this year have been imported, and almost exclusively from China, according to the president of the country's Association of Textile Importers.

From the more traditional creations flaunted by competing samba schools to the stranger outfits such as Elvis Presley suits and Osama Bin Laden masks, the vast majority are made from Chinese polyester and nylon, along with the odd piece from South Korea.

Cheap Chinese imports have flooded the Latin American country over the past few years, partly as a result of the local currency's rapid appreciation, bringing several parts of the economy to a halt and presenting Dilma Rousseff with one of her biggest political dilemmas yet as Brazil's new president. Now even the country's famous four-day carnival, which ends on Tuesday is''made in China''.

''Fifteen years ago, it was completely different. It was all Brazilian,'' Jonatan Schmidt, the association's president told the Financial Times.

In a northern neighbourhood of São Paulo, Claudia Sakuraba is flicking through thousands of fabric samples in her showroom which she shipped in from China at around a 40 per cent discount to Brazilian prices.

Financial Times

''When the real got strong or, rather, the dollar weakened, the carnival industry reacted like any other. Of course we imported more,''explains the 43-year-old owner of Carnaval Store, which supplies both samba schools and costume shops.

When Ms Sakuraba set up the company in 2005, the Brazilian real was around 2.5 to the dollar and she imported only about 30 per cent of her fabrics. Now that the local currency is trading at 1.6 per dollar, she imports about 60 per cent.

''It's not just the exchange rate, though,'' she adds. ''There has been a lack of new equipment and investment in the textile sector over the years. Demand is so strong now and they just can't cope.''

Economists argue that Brazil's efforts to fight the appreciation of its currency are largely futile and that the only real solution, not only for the textile sector but industry in general, is to improve training, invest in better machinery and develop infrastructure.

But despite promising efforts by state-run oil company Petrobras to expand its own polyester production in the north-east, carnival is unlikely to be made in Brazil any time soon.

A few blocks south of Carnaval Store, Pierre Sfeir runs Festas e Fantasias, one of São Paulo's biggest and most crowded fancy dress shops.

Squeezed in between the counter and a bulging row of fairy costumes, the 54-year-old Lebanese owner explains that many of the final products are still decorated or assembled in Brazil.

''It's still a Brazilian party'', he argues, pointing out that the two most popular masks this year imitate national politicians: Tiririca, a professional clown who recently won a seat in Brazil's Congress, and Ms Rousseff herself.

''Lula [Luiz Inacio Lula da Silva, Brazil's former president] was always the top-seller,'' he says. ''No one wants him now, but we still keep a few round the back just in case.''

FinancialTimes