Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Brazil to restart high-level talks with China, could boost farm trade

Published 01/31/2019, 10:29 AM
Updated 01/31/2019, 10:30 AM
Brazil to restart high-level talks with China, could boost farm trade

By Jake Spring

BRASILIA (Reuters) - Brazil and China are expected to hold their first high-level political and economic talks since 2015 later this year, Brazil's agriculture trade secretary told Reuters on Thursday, in a move likely to boost farm trade between the two countries.

The first meeting of the China-Brazil High-Level Coordination and Cooperation Committee (Cosban), last convened under former President Dilma Rousseff, is "very probable" for the second half of the year, said Orlando Leite Ribeiro, who oversees trade and international relations at the Agriculture Ministry.

The meeting should advance talks to permit more Brazilian meatpackers to export to China and to accelerate Chinese approvals of genetically modified (GMO) products, Ribeiro said in an interview.

China is Brazil's largest trade partner and is the top importer of Brazilian soy and beef.

Brazil exports to China totaled $64.2 billion in value last year, up 35 percent year-on-year, thanks in part as China boosted its soy imports from the South American country amid a trade war with the United States.

China sent a delegation to Brazil in December to visit factories producing beef, poultry and donkey, with an eye on allowing more plants to export.

"Our expectation is that this will result in openings. This is a very important year with China, we will have Cosban, so I want to believe that this year we will have good news, major advancements," Ribeiro said.

Regarding GMO approvals, Brazilian farmers often cannot use the latest seed technology over concerns they will not be able to sell their crop to China, he said.

Some products have waited more than two years for approval, after China reduced the frequency of approval meetings several years ago, Ribeiro said.

"The expectation is to restart these talks and that we will speed up the process of approvals," he said.

Cosban talks had been halted because they were usually led by the vice president, a position left vacant when Michel Temer assumed the presidency after Rousseff was impeached in 2016.

Regarding a clampdown earlier this month by Saudi Arabia on Brazilian poultry plants permitted to export, Ribeiro said more plants were affected than previously disclosed by meatpackers association ABPA.

Saudi Arabia reduced the number of business units - including factories, processing plants and distribution centers - permitted to export by 38, leaving 25 still able to send shipments, he said. Those 25 correspond to 63 percent of Brazil's poultry exports to Saudi Arabia, or 437,000 tonnes.

Saudi Arabia did not give a reason for revoking permits for the other plants and a Brazilian agricultural attaché will meet with Saudi authorities this weekend to discuss the issue.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.