According to a report from Agência Brasil, the president of Brazil’s footwear trade association (Abicalçados), Élcio Jacometti, says the exchange rate of the Real against the dollar and predatory” competition by Chinese exporters are causing a crisis in the footwear sector.

"We cannot compete with shoes that come into Brazil costing $0.50 a pair, when we know that that is less than what the shoe laces cost," said Mr Jacometti at a meeting with President Luiz Inácio Lula da Silva and other authorities in Brasilia.

The government has agreed to offer loans to the sector and has said that customs officials will crack down on imports of ‘underpriced’ Chinese goods. A work group has also been set up to study tax exemptions on machinery and equipment for the footwear sector.