Agreement between China and Australia could be detrimental to Brazilian beef
After ten years of negotiations, Australia expects to sign a free trade agreement in November with China, which will provide its beef exporters with preferential access to the Chinese market and hinder the Brazilian meat industry's plans to leverage sales to the worlds most populous market.
Australia is looking for bilateral trade agreements to boost its economy against a backdrop of persistent global deterioration. The country has done a deal with South Korea, which needs ratification by the Korean parliament, and has all but closed a deal with Japan, while beginning negotiations with India, where it sees huge potential business. But what the private sector is really looking forward to is the deal with China.
What is certain says Andrew Tulloch, president of the Queensland Trade and Investment Agency, is that beef producers will have huge gains with the agreements. "Our meat will have great benefits in China, Korea and somewhat less so in Japan," he told PRO Valor. Brazil's JBS has a unit in Australia.
Tulloch says the fact that China is investing in Australia helps reduce the impact of any difficulties arising in the Chinese market. According to him, control the Australian government wields over foreign investment is a mere formality. "There is no limit on foreign investment in our agriculture sector," he says.
Information provided by Valor Econômico