Yank says that the truce of the United States and China reduces the chances of Brazilian agriculture.
The recent commercial truce between the United States and China may limit the opportunities to expand the Brazilian agricultural business in the international market. This is the Marcos Jank rating, Insper Agro Global Coordinator, WW content partner.
According to JNK, reducing the tariff for import between the two countries reduces the margin of oppression of the new markets of Brazilian producers. “We will not get the exceptional market gains,” the expert explains.
Impact on Brazilian exports
With the formation of the new customs tariff, China must resume the purchase of American soy in the second half, which was in danger due to the previously high definitions. This change can directly affect the Brazilian grain exports, which have benefited from the commercial tensions between the two powers.
The teacher notes that despite the challenges, there are still opportunities for Brazil to continue growth and open markets around the world. However, it emphasizes the importance of resolving health, technical and environmental issues that make it difficult to reach Brazilian products to international markets.
In addition to the tariff
JNK warns that the prices are at risk in international trade. He says: “There is also a share and has unintended barriers, and we have to work on,” he says. The expert notes that the large agenda of Brazilian agriculture should not be limited to price problems, but focus on opening markets and adding value to exports.
For the future, Professor Insper suggests that Brazil should take this moment to search for a value -added agenda in agricultural business exports, with the aim of increasing the competitiveness of the sector in the international scenario, even in the face of changes in trade relations between the United States and China.
