Brazil and China negotiate soybean trade agreement

Introduction: Brazil's soybean industry intends to lobby the government for a bilateral trade agreement with China Industry leaders and Brazil's minister of trade and development, sagio Amara, met on December 15 to discuss the proposed trade agreement, said carolo watri, President of Brazil's abiove Association According to lovetree, the move was motivated by a desire to circumvent the expected delays in the agreement after China's recent accession to the WTO Three years ago, in order to develop its crushing industry before China's accession to the WTO, the Chinese government imposed 112% tariff on overseas soybean oil and suspended the issuance of import quotas However, China agreed to issue a quota of 1.7 million tons of soybean oil in 2002, and gradually increase the quota to 3.2 million tons within five years After the five-year period, the quota system will be abolished, but Chinese producers still have an advantage, because all imported oil overseas will be subject to a 9% tariff Brazil's soybean industry hopes to negotiate with China to set up preferential tariffs for Brazilian soybean oil, so as to overcome this obstacle In exchange, Brazil will offer similar preferential policies for Chinese products to enter the Brazilian market China is currently Brazil's top export market for soybeans This year, more than 20% of the 15.5 million tons of soybeans exported by the South American soybean giant will be purchased by China However, Brazil's soybean oil export to China in 2001 is expected to be less than 20000 tons, far lower than the 939000 tons exported to China in 1995, when China has not yet raised the import tariff of soybean oil Local soybean industry leaders in Brazil are likely to seek similar bilateral agreements with India, already Brazil's No 1 overseas market for soybean oil, Mr lovetree said Currently, India imposes a 35% tariff on soybean oil.