Home Agribusiness Tereza Cristina: Trade War in Between China US Is Window of Opportunity

Tereza Cristina: Trade War in Between China US Is Window of Opportunity

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The Minister of Agriculture, Tereza Cristina, said that an increase in US import tariffs for Chinese products may benefit Brazilian agribusiness exports.

US President Donald Trump said on Twitter that he intends to raise rates from 10% to 25% to about $200 billion in goods from China. In the postings, Trump complained of what he considered a delay on the part of China to negotiate a trade agreement.

“First we need to know if it was just a message that lasted or is going to take effect. Of course, if the United States and China do not agree and these tariffs do not go back to what they were before, it really is a window of opportunity for Brazil,” said the minister at the meeting of the Higher Council of Agribusiness in Federation of Industries of the State of Sao Paulo (Fiesp).

Tereza Cristina will travel the next night to Asia. She will lead an entourage of 98 people who will goes on through Japan, China, Vietnam and Indonesia over 16 days.

Another important point in trade relations between China and Brazil is the African plague that has severely hit the Asian herds. According to the minister, on the one hand, this should affect sales of soybeans from Brazil to the Chinese, since the food is used as ration.

However, there is a possibility of increasing exports of pork. “The meat the Chinese will have to import from the United States, Brazil and other countries to supply their domestic demand. Brazil will be able to collaborate a little so that these meat prices in China may have lower levels than they are today, “he said.

In addition to pork, Tereza Cristina said that Brazil intended to offer a number of products to the Chinese, such as coffee, fruit and chicken. “We are reliable partners. We have quality and we have volume of soy, corn, that are part of the diet of the animals. We have other proteins that can enter this window of opportunity,” she added.

In the first quarter of 2019, sales of crushed soybeans from Brazil to China (US $ 4.75 billion) accounted for 9% of the value of total exports (US $ 52.6 billion). In the period, of every US $ 100 the country has raised from the sale of the product worldwide, US $ 77.48 came from China.