Brazil steps up global outreach to diversify export markets

By order of President Luiz Inácio Lula da Silva (PT), Brazilian ministers have launched an offensive in recent weeks to expand the country’s export markets and mitigate the impact of the new U.S. tariff hikes. Valor Econômico has learned that, so far, negotiations to redirect Brazilian products have involved countries such as China, India, Japan, South Korea, Canada, Mexico, and the United Arab Emirates.

The government expects to see results in the coming months, but sources within the Lula administration acknowledge that these negotiations follow their own pace and may take some time to bear fruit.

The search for new international markets has included participation not only from economic ministries, but also from the Foreign Ministry (Itamaraty), the Presidential Chief of Staff, the Planning Ministry, the Agriculture Ministry, and especially the Ministry of Development, Industry, Trade and Services (MDIC), one of the most active players in discussions surrounding the U.S. tariff policy. Vice President Geraldo Alckmin, who heads the MDIC, is scheduled to lead a delegation of Brazilian business leaders to Mexico this week.

In just the first three days of registration, 90 Brazilian companies reached out to ApexBrasil (the Brazilian Trade and Investment Promotion Agency) to express interest in joining the trade mission—reflecting business owners’ growing concern over finding refuge in alternative markets. By last week, that number had grown to 113. However, not all companies will be part of the official delegation, as Apex is expected to screen and prioritize certain sectors.

Planning for the mission began after conversations between President Lula and Mexican President Claudia Sheinbaum, with whom the Brazilian government maintains close ties. Despite the optimism surrounding the mission, Brazil exported only US$7.8 billion to Mexico in 2024—just 20% of the US$40 billion exported to the United States in the same year.

Another minister who has moved recently to secure new trade partners is Chief of Staff Rui Costa. A close advisor to Lula, Costa has requested meetings with representatives from the Chinese and Indian embassies in Brazil. India is seen as a strategic focus, and Brazil is also planning to send a business delegation there.

Led by Foreign Minister Mauro Vieira, the Foreign Ministry is also placing hopes on at least four countries. According to the ministry, negotiations are already underway with the United Arab Emirates and Canada. Dialogue is also ongoing with India and Vietnam. Vietnam, in particular, has been approached by President Lula regarding a potential free trade agreement with Mercosur, the South American trade bloc currently chaired by Brazil, until the end of the year.

In addition, the Foreign Ministry is preparing two international trips for President Lula in the second half of 2025 that are expected to boost Brazilian trade. Both are scheduled for October, when Lula is set to attend the ASEAN (Association of Southeast Asian Nations) summit in Malaysia. On the same trip, the president is expected to make a state visit to Indonesia, a country of over 280 million people and a major potential consumer market.

Finally, the Ministry of Agriculture is also actively involved in this effort. The ministry is focused on securing alternative markets for key Brazilian exports currently affected by U.S. tariffs, including coffee, beef, fish, and fruit.

As part of this strategy, the ministry sent a mission to Japan and South Korea in August, two of the three remaining global markets that remain closed to Brazilian beef. Agriculture Minister Carlos Fávaro hopes to unlock the Japanese market between November and December of this year.

Source: Valor Econômico

Sharing is caring!