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Brazil looks forward to increasing exports of agricultural products to China

  • Author:Cynthia
  • Release Date:2018-04-10
April 3United StatesThe China Government issued a list of proposed products for taxation in China. The Chinese government responded on the 4th that it will impose a 25% tariff on 106 imported products originating in the United States. Among them, soybeans, corn and other agricultural products originating from the United States should be subject to other attacks.
As one of the important sources of China's agricultural products, Brazil is very concerned about this. The relevant industries are looking forward to using this as an opportunity to continue to expand their export share in China.
According to the statistics of China Customs, in 2017, China imported a total of 95.53 million tons of soybeans. The top three import countries are Brazil, the United States, and Argentina. Soybeans from Brazil and the United States account for about 53% and 34% of China's total imports respectively. China is currently the world’s largest soybean importer, and trade disputes provoked by the United States will lead to a sharp contraction of US soybean exports to China.
Brazil is the world’s second largest producer of soybeans and the largest exporter, and the gap between its production and the United States has gradually narrowed in recent years.
Brazilian economist Roberto Damas pointed out in an interview with this reporter that the data showed that Brazil will harvest about 113 million tons of soybeans in the coming year. China’s import demand is close to 100 million tons, and Brazil can foresee Brazil’s Soybean exports will continue to grow.
According to Brazilian media reports, US soybeans are not irreplaceable, and South American countries such as Brazil, Argentina, and Bolivia are highly competitive. A Brazilian think-tank engaged in agricultural research pointed out that, in fact, countries such as Brazil and Argentina are the main competitors for US soybean and corn exports.
In an interview with the media, Roberto Jaguaribe, chairman of the Brazilian Export and Investment Promotion Agency, said that if the trade friction between China and the United States escalates, it will not benefit any participant in global trade. However, he also emphasized that due to the continuous increase in global demand for food, Brazilian agricultural exports are expected to grow in this context.
Mauricio Santoro, director of the International Relations Department at Rio State University in Brazil, said that since 2009, China is Brazil’s largest trading partner and Brazil is looking forward to expanding exports of soybeans, corn, and meat to China. The relevant Brazilian industry also looks forward to taking this opportunity to expand its export share of agricultural products to China.
Francis Tura, chairman of the Brazilian Animal Protein Association, said that "the trade friction between China and the United States will further increase the international demand for Brazilian meat."
In recent years, agricultural cooperation between China and Brazil has gained momentum. At the end of last year, Chinese seed industry firm Longping Hi-Tech Co., Ltd. and CITIC Agricultural Fund acquired Dow Corning Brazil corn seed business, with a transaction value of US$1.1 billion. The St. Louis Port project that China Communications Construction Corporation participated in the investment and the Paranagua Container Terminal acquired by China Merchants Port Holdings Limited are expected to further facilitate and expand the export of Brazilian agricultural products to China.