Good morning! Today, we look into Brazil’s agricultural exports to the EU. Congress makes progress on a bill that could weaken anti-corruption mechanisms. Amid rising fuel costs, House Speaker Lira wants to set up a fund to tame price hikes.
Brazilian EU-bound agro exports rise
Brazil has been at odds with European countries over environmental issues. EU member states such as France, the Netherlands, and Austria have opposed a trade deal with Mercosur (the trade alliance between Brazil, Argentina, Paraguay, and Uruguay) on the basis that agricultural producers from the region gain a competitive advantage by disregarding environmental protections. Meanwhile, supermarket chains in some of these countries pledge to reduce their consumption of products originating from Brazil.
- And yet, a report by the European Commission shows that the January-June period saw import values increase 11 percent for agricultural products from Brazil, driven by soybeans and soybean oilcake.
Why it matters. In absolute terms (growth of EUR 614 million), no other country expanded its shipments of agricultural products to the EU more than Brazil.
Yes, but … Increasing exports could show the government it has some financial leeway to shift its environmental approach without massive disruption. Instead, the Bolsonaro administration has...