Over $78 billion worth of Brazilian exports face trade barriers in China, EU, and Argentina, says CNI study

Brazilian exports to China, the European Union, and Argentina all face significant trade barriers, according to a study by Brazil’s National Confederation of Industry (CNI). The study reveals that out of the $155 billion worth of goods exported to these three markets last year, over $78 billion were subject to some obstacles.

According to the CNI, the three aforementioned destinations have the most barriers, with 16 in the EU, eight in China, and six in Argentina. This represents 26% of Brazil’s total exports in 2022.

See below a chart displaying Brazil’s containerized exports to the three countries previously mentioned between Jan 2020 and Feb 2023, according to the DataLiner data service.

Containerized exports to Argentina, China, EU | Jan 2020 – Feb 2023 | TEUS

Source: DataLiner (click here to request a demo)

The main barriers that Brazilian exporters face have to do with sanitary and phytosanitary measures, environmental preservation, technical regulation, import taxes, and sustainability. For example, pork cannot be exported to the European Union due to concerns about the Brazilian sanitary control system’s quality and efficiency. This is due to the history of foot-and-mouth disease in some Brazilian states.

Meanwhile, Brazilian orange juice exported to China is subject to a 7.5% import tariff if the product is cooled below 18 degrees Celsius. If the temperature is above this, the tariff increases to 15%. This temperature tax impacts the production costs of Brazilian companies and protects Chinese companies that are just starting in this sector.

Constanza Negri, the manager of Trade and International Integration at CNI, says Brazil needs to find ways to overcome these barriers and expand the market for domestic products.

“The number of trade barriers erected against Brazilian exports has grown and become more sophisticated over the past few years. Thus, in this scenario, CNI understands that a Brazilian strategy for identifying, monitoring, and eliminating these barriers with different trading partners stands even more necessary,” says Negri.

Source: G1

To read the original news report, check: https://g1.globo.com/jornal-da-globo/noticia/2023/04/25/metade-das-exportacoes-brasileiras-para-china-uniao-europeia-e-argentina-enfrenta-barreiras-comerciais-diz-cni.ghtml

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