Brazil races to China beef cap as 55% tariff risks price collapse
AI Summary
Brazil is on track to exhaust its annual beef export quota to China by September 2024, raising concerns about potential economic repercussions. If Brazil exceeds its 1.106 million tonne quota, shipments will be subject to a 55% tariff, significantly higher than the standard 12% rate. This surge in exports, with a record 119,630 tonnes shipped to China in January 2024, is driven by increased demand despite new restrictions imposed by Beijing. The Brazilian Ministry of Agriculture has warned that exceeding the quota could lead to trade disorganization and a collapse in domestic beef prices and employment. The government is now racing to manage exports to avoid triggering the higher tariff and its negative consequences for the Brazilian cattle sector.
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