China Approves Brazilian Coffee Exports

China has granted approval to 183 additional Brazilian coffee companies, enabling them to export their products to the Chinese market. This announcement was made via a social media update from the Chinese embassy in Brazil on Saturday.

This action provides a boost for Brazilian exporters, especially following the United States government’s recent imposition of substantial tariffs on Brazilian coffee and other goods. The new regulations became effective on July 30.

According to the announcement, these new export permits issued by China will remain valid for a duration of five years.

The United States is set to implement a 50% tariff on selected Brazilian products starting August 6.

This levy presents significant difficulties for commodity traders and Brazilian coffee exporters, who must now identify alternative markets for approximately 8 million bags of coffee that are annually sold to US coffee processors.

While China is Brazil’s largest overall trade partner, the US remains a significant importer of Brazilian products, including beef and orange juice.

Trade data from the industry group Cecafe indicates that in June, Brazilian coffee exports to the US amounted to 440,034 60-kilo bags, which is 7.87 times greater than the nearly 56,000 bags sold to China during the same period.

Neither the Brazilian Ministry of Agriculture nor Cecafe has released an immediate statement. China’s customs authority could not be reached promptly due to the difference in business hours.

Brazil accounts for about one-third of the total US coffee demand annually, with trade valued at $4.4 billion over the twelve months ending in June.