December 19, 2019

Brazil study estimates farm exports to China will drop US$10 billion after US-China trade deal

A study by Insper, a Brazilian research centre and business school said Brazil may lose US$10 billion in agriculture exports annually once the trade agreement between the United States and China is implemented, reported Reuters.

Marcos Jank, the study coordinator and former BRF SA executive in Asia said the Brazil's gains from the trade war between the US and China could be erased, with trade between Brazil and China possibly returning to levels pre-trade war.

In 2018, Brazil agriculture exports hit US$35.4 billion, a significant increase compared to US$26.6 billion in 2017. According to the report, Brazilian farmers and meatpackers benefitted from the high tariffs China imposed on US agriculture products, with US agriculture exports falling to US$13.2 billion in 2018 from US$24 billion in 2017.

Jank said the soy trade will most likely resume between the US and China, with poultry among other Brazil-China trade items that will be affected.

Brazil poultry exports to China hit US$1.1 billion in 2018, while in the same period US poultry exports to China only reached US$100 million.
 

-      Reuters