Brazil and China Agricultural Trade Agreements
Brazil and China Agricultural Trade Agreements

On November 18, 2024, Brazil and China finalized a series of agreements to expand agricultural trade. The development comes as bilateral trade between the two nations has grown significantly, with China’s trade with Brazil increasing by 9.9 percent in the first 10 months of 2024 compared to the same period last year.

While the Initiative to combat global hunger and poverty was one of the crucial points of the G 20 Summit in Brazil, the agreement with China was also a great result for the country, making the summit successful.

Details of the Agreements

Details of Agreements Between China and Brazil
Brazil expands exports to China

Brazil has gained approval to export bovine and swine offal to China for the first time, a move supported by the establishment of sanitary protocols. China, which has been Brazil’s largest trading partner for 15 consecutive years, is already a key market for Brazilian beef. The inclusion of offal is expected to generate additional export revenue.

Increased Fruit Trade

The agreements also prioritize the export of Brazilian fruits to China, with a focus on value-added products. Minister Carlos Fávaro highlighted the growing demand for Brazilian fruits in the Chinese market, which aligns with Brazil’s strategy to diversify its agricultural offerings.

In 2023, Brazil’s exports of vegetable, fruit, and nut food preparations to China totaled $124.4 million. These exports are expected to grow further in 2024 with the new agreements, focusing on value-added products such as fruit juices and preserved fruits. China remains Brazil’s top trading partner, accounting for significant shares of its exports in soybeans, iron ore, and pulp.

Boost in Meatpacking Capacity

A record number of Brazilian meatpacking plants have been approved for export to China during this year. Such expansion will help meet China’s growing demand for high-quality meat products, bolstering Brazil’s position as a top supplier.

Trade Performance Between Brazil and China

Category Value Details
Total Trade Value 1.14 Trillion Yuan (158.33 Billion USD) First 10 months of 2024
Brazil Exports to China 708.15 Billion Yuan (98.33 Billion USD) Includes soybeans, iron ore, crude oil, pulp
Brazil Imports from China 432.08 Billion Yuan (60 Billion USD) Includes intermediate goods, machinery
Agricultural Exports to China (2023) 124.4 Million USD Vegetable, fruit, and nut food preparations
Fruit Juices, Vegetable Juices 95.14 Million USD (2022) The largest category of agricultural exports
Preserved Fruits and Nuts 152.96 Thousand USD (2022) Other processed agricultural products
Jams and Marmalades 56.60 Thousand USD (2022) Smaller export category

Source: Trading Economics

Brazil boosts fruit exports to China
Brazil boosts fruit exports to China

Brazil Economic Data

Category Value Details
Balance of Trade 4,340.00 USD Million Positive trade balance
Current Account -6,526.00 USD Million Deficit in financial transactions
Current Account to GDP -1.42% Highest: 1.70%, Lowest: -8.20%
Exports 29,461.50 USD Million Total exports of goods and services
Imports 25,118.71 USD Million Total imports of goods and services
External Debt 741,134.78 USD Million Record high as of November 2024
Terms of Trade 131.00 Points Last update: November 2024
Foreign Direct Investment 5,230.00 USD Million Previous: 6,100.00 USD Million
Tourist Arrivals 3,630.00 Thousand (3.63 Million) Record high: 6,621.00 Thousand (6.62 Million)
Gold Reserves 129.65 Tonnes Unchanged from previous month
Crude Oil Production 3,230.00 BBL/D/1K Barrels per day production
Weapons Sales 54.00 SIPRI TIV Million Increase from 8.00 SIPRI TIV Million

Strategic Partnership

The agreements mark 50 years of Brazil and China relations, established in 1974. Over this period, their partnership has developed into a strong economic alliance. China is Brazil’s largest trading partner and primary export destination, with key exports including soybeans, iron ore, crude oil, and pulp.

Both countries play significant roles in BRICS, working together on global governance reforms and supporting financial collaboration through the New Development Bank. The partnership extends into areas like renewable energy, infrastructure, and agricultural trade, emphasizing shared goals for economic progress.

Market Impact

China continues to be Brazil’s leading market for key exports, with soybeans and iron ore comprising over 70% of Brazil’s total exports in these categories. In the first ten months of 2024, Brazil’s exports to China reached 708.15 billion yuan (approximately 98.33 billion USD), highlighting the strength of this trade relationship.

Brazil’s agricultural sector has seen significant growth in exports to China. In 2023, Brazil exported vegetable, fruit, and nut food preparations worth 124.4 million USD to China. This includes 95.14 million USD in fruit and vegetable juices, 152.96 thousand USD in preserved fruits and nuts, and 56.60 thousand USD in jams and marmalades.

Conversely, Chinese industrial products are gaining a stronger presence in the Brazilian market. In the first ten months of 2024, China exported intermediate goods worth 216.86 billion yuan to Brazil, marking an 11.8% year-on-year increase and accounting for half of China’s total exports to Brazil. This influx includes machinery, electronics, and other industrial goods, reflecting China’s expanding role in Brazil’s industrial sector.

Future Prospects

Strengthened collaboration in agriculture and other key sectors will drive deeper economic ties. Beyond boosting their respective economies, these initiatives address global food security concerns by guaranteeing a consistent supply of top-quality agricultural products to international markets.

Read NextApple Ordered to Open In-App Payments in Brazil

Miloš Nikolovski
Driven by a curiosity to share the full essence of Brazil, I write to connect readers with practical travel advice, fascinating facts, and all the unique qualities that make Brazil what it is. My insights come from firsthand experiences and genuine conversations with locals, aiming to help people see the country for what it really is, whether they're planning to visit or just curious. Beyond travel basics, I dig into traditional Brazilian food, upcoming events, the latest news, and every other detail that reflects the soul of Brazil. Each piece of writing brings out something real—from classic dishes that define local cuisine to current events shaping life here, to celebrations that are woven into the culture. My goal is to offer a clear, unfiltered view of Brazil, helping people connect with its real story before they even arrive.