New U.S. Agricultural Law Will Affect Brazil's $4 billion Export

2013-08-20 04:24 Source: Business Consulate in Brazil
 

brazil's "Globe" reported that sensitive foreign trade projects of Brazilian private enterprises are currently being discussed by relevant US departments, which may have a full impact on Brazil's exports of food and ethanol to the United States. In 2012, exports of these products to the United States amounted to US $4 billion billion, accounting for 15% of Pakistan's total exports to the United States.

The new U.S. agricultural law, introduced in July this year, has set safety standards for food imported from Brazil and has been implemented, affecting at least 80% of Brazil's food exports to the United States. Exports totaled $2.5 billion billion in 2012, including raw materials such as green coffee, raw cocoa and processed products such as fruit juice and finished meat. The new law makes importers responsible for imported food, so it is possible to conduct on-site inspections of farms, warehouses and factories outside the United States. The Brazilian industry is concerned that U.S. importers charge inspection costs to foreign producers, which will inevitably reduce exporters' profits or lead buyers to choose to buy domestic food.

The US move has already alerted the Brazilian government. Officials from the Brazilian Ministry of Agriculture said that vigilance must be maintained to avoid erecting a technical barrier to Brazilian exports in the rules.

Pakistan-US Ethanol Trade

the Brazilian ethanol industry is more worried that the U.S. Environmental Protection Agency EPA proposed a plan in June this year that requires importers to pay in advance the cost of biofuel purchased from the U.S. Customs, and vetoed the purchase of products (ethanol) that have been piped in the country of origin. This is a way for Brazilian producers to improve the competitiveness of ethanol in the next few years. In the case of Brazilian producers, the measure could also deter U.S. importers. In 2012, Brazil exported US $2.2 billion billion of ethanol, with 70% of exports to the United States. Brazilian industry insiders said that the new rules of the US Department of Agriculture will only bring excessive and unnecessary costs to importers and manufacturers.

An ethanol production plant in Brazil
    
source: Ministry of Commerce of China

http://www.mofcom.gov.cn/article/ I /jyjl/l/201308/20130800255139.shtml

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