By Ryan Hanrahan
The imposition of U.S. tariffs and new U.S. trade deals with countries across the globe are expected to reshape agricultural trade flows — on products ranging from beef to grains to oilseeds — in the coming months. For beef, Reuters’ Roberto Samora and Kylie Madry reported that “higher U.S. tariffs on Brazil are expected to reshape global beef trade flows, sparking increased shipments to the U.S. from countries like Mexico and Australia while Brazil seeks alternative markets, analysts said on Wednesday.”
For grains and oilseeds, Reuters’ Naveen Thukral reported that “Southeast Asian nations are set to reshape global grains and oilseed trade flows through U.S. trade deals that include raising agriculture purchases, with increased American shipments displacing Australian, Canadian and Russian supply.”
Tariffs on Brazil Likely Reshaping Beef Trade Flows
Reuters’ Samora and Madry reported that “Brazil is the world’s largest beef exporter, with China as its main trading partner. In August, Mexico overtook the U.S. to become its second-largest export destination for the commodity,” Samora and Madry reported. “‘It is very likely that countries that can triangulate Brazilian beef will increase their purchases following Mexico’s example,’ Mauricio Nogueira, director of livestock consultancy Athenagro, said in an interview. ‘If Mexico starts sending beef to the U.S., it will have to buy from someone, it will have to buy from here.’ Argentina would be another candidate to import and eventually re-export Brazil’s beef to the U.S., he added.”
Source : illinois.edu