Brazil seeks to take advantage of the US trade war to strengthen its agricultural position in China

Brazil is actively increasing agricultural exports to China, taking advantage of the trade tensions between the United States and China to strengthen its position in the Chinese market. Paulo Teixeira, Brazil’s Minister of Agrarian Development and Family Farming, said this during President Luiz Inácio Lula da Silva’s recent visit to China, noting that the countries plan to deepen cooperation in agricultural trade and technology exchange. China, the world’s largest importer of agricultural products, buys about 70% of Brazil’s soybeans, while the US share in this market has shrunk significantly due to trade restrictions.

According to Agroportal, Brazil’s share of soybean imports to China has fluctuated between 60% and almost 80% in recent seasons, and the country has the potential for further growth with soybean harvests exceeding 150 million tons. The trade war between the United States and China, including the imposition of tariffs on American goods, is helping Brazilian agriculture, strengthening the country’s position as a reliable supplier, Latifundist analysts said. In addition to soybeans, Brazil is expanding its exports of corn, sorghum, meat and pulp, responding to China’s growing demand for products for the livestock and food industries.

This strategic shift is supported by Brazil’s significant advances in agricultural technology. According to Paulo Bertolini, president of the Brazilian Association of Corn and Sorghum Producers, and Larisa Wachholz, partner at Vallya Participacoes, thanks to biotechnology, Brazil has tripled its agricultural productivity since 1976, allowing it to produce more from less land. For example, genetically modified crops, which cover 56 million hectares, have contributed to a 35% reduction in pesticide use for soybeans and a reduction in carbon dioxide emissions of 70.4 million tons, equivalent to planting 504 million trees.

However, to fully realize the potential, greater regulatory harmonization between Brazil and China is needed, Bertolini and Wachholz noted. The approval process for genetically modified crops in China takes about five years after their approval in Brazil, which slows down the introduction of innovations. Strengthening technical cooperation and dialogue between regulators could speed up access to new technologies for Brazilian farmers, contributing to increased productivity and environmental friendliness.

China, for its part, is actively purchasing Brazilian soybeans, particularly the upcoming harvest, to protect itself from a possible escalation of the trade war with the United States, UkrAgroConsult reported. The expected record harvest in Brazil allows for increased supplies and provides favorable conditions for Chinese traders. Agreements signed between the Brazilian president and Chinese leader Xi Jinping also provide for Chinese investment in Brazilian infrastructure, further strengthening the agricultural partnership.

The US trade war with China opens up new opportunities for Brazil, but at the same time creates challenges. Analysts note that market volatility caused by US President Donald Trump’s statements about possible changes in tariff policy could affect global trade. However, Brazil, thanks to its natural resources and technological achievements, remains in a strong position to further expand cooperation with China.

This strategy not only strengthens the economic development of rural regions in Brazil, but also contributes to China’s food security, creating a mutually beneficial partnership. Brazil, as Teixeira noted, sees in the trade tensions between the US and China a chance to become a key supplier not only of soybeans, but also of other agricultural products, which could change the global agricultural landscape.

Tags: Brazil, soybean, USA, China, corn