The Use of International Trade Mechanisms by the Brazilian Agribusiness

Abstract

The Agribusiness is one of the pillars of the Brazilian economy, and it represented 43% of the Brazilian exports in 2021. Moreover, Brazil is a net importer of inputs that are fundamental for the agriculture, such as fertilizers and equipment. Despite of being competitive by nature, it is of utmost importance that the players understand the mechanisms provided by the Brazilian legislation related to international trade. The purpose of this article is to call the attention of the Brazilian Agribusiness to several tools related to foreign trade, and how useful they can be. In this context, the article first approaches the use of tariff modification mechanisms that could be useful to boost competitiveness by the Agribusiness by reducing costs of imported inputs or protecting against foreign competitors by means of reducing or increasing tariff rates. Then, the article calls the attention to Free Trade Agreements involving Brazil that promote trade in the agricultural sector. The article also highlights the use of trade remedies to protect the Agribusiness against unfair trade. The article finishes with a brief the analysis on how the Brazilian Agribusiness is affected by economic sanctions imposed by third countries, demonstrating the importance of understanding the new reality of global trade. Brazil, Agribusiness, agriculture, International Trade, tariff, Free Trade Agreements, Mercosur, antidumping, sanctions, imports