The signing of the free trade agreement between Mercosur and Canada has the potential to increase revenues of Brazilian agricultural products exports by US$ 7.8 billion, according to a study by the Confederation of Agriculture and Livestock of Brazil (CNA). According to the CNA, the results of the document show the relevance of the agreement for the sector and will subsidize Brazilian negotiators with technical data, to help in decision-making and in defining the country’s positioning. Meats, cereals, flours and preparations, fruits and soy complex are the sectors of the agribusiness, according to the CNA, which have the most potential to benefit from the agreement. In the soy complex (grain and hipro), the CNA estimate is for an increase of US $ 703.9 million, despite competition with the United States. “The geographical proximity between the two North American countries implies lower costs for logistics and transportation”, indicates the study. With regard to tariffs, the understanding of the entity’s study is that the Canadian market tends to negotiate the elimination of a good part of them in the year following the entry into force of the agreements, which may benefit Brazilian producers in the short term. In 2019, trade in agricultural products with Canada recorded a turnover of US $ 628.7 million. Brazilian exports of fresh chicken meat, cashews and corn increased by US $ 21.3 million, according to data from the Ministry of Economy.

Source: Canal Rural