Brazilâs recently-released 2012 Message to the National Congress sheds light on what Brazil considers its greatest trade successes for 2011 and trade priorities for 2012.
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
GAIN Report Number: BR0806
Brazil's 2011 Trade Successes and 2012 Trade Priorities
Agriculture in the Economy
Trade Policy Monitoring
Robert K Hoff
Brazil?s recently-released 2012 Message to the National Congress sheds light on what Brazil considers
its greatest trade successes for 2011 and trade priorities for 2012. For its trade successes in 2011, Brazil
lists access to the U.S. fresh pork market, gains in market access for its fresh beef around the world, and
the strengthening of its agricultural trade relationship with China, along with the resolution of various
other sanitary and phytosanitary (SPS) trade barriers with trading partners around the world. For 2012,
Brazil plans to continue trade promotion in select countries, particularly by branding its public image
and adding value to Brazilian agricultural exports. Brazil is poised to continue gaining market share,
especially in its key agricultural exports.
The 2012 Message to the National Congress: Each year, at the opening of the Brazilian National
Congress?s legislative work year, the President of Brazil addresses the National Congress to apprise it of
the Executive Branch?s principal initiatives over the last year and to present expectations for the
upcoming year. This address is known as the Message to the National Congress. President Dilma
Rousseff delivered the 2012 Message to the National Congress on February 2, 2012, at the opening of
the 1st Ordinary Legislative Session of the 54th Legislature. The 468-page document (link to the
Portuguese-language text in its entirety) highlights the actions and successes of the Executive Branch in
2011 and briefly describes the actions the Executive Branch plans to take in 2012.
Some sections of the 2012 Message to the National Congress are particularly germane to the area of
agricultural exports. As Brazil is the third-largest agricultural exporter in the world, after the United
States and the European Union, it is worthwhile to provide informal translations of the most relevant
sections. For those who have closely followed the Brazilian export market, there may be nothing new to
note. However, the holistic character of this report in presenting Brazil?s 2011 trade success and 2012
trade plans paints a picture of Brazil?s agricultural export strategy and priorities.
The following are select highlights:
Section I.2.E.1. International Negotiations: Bilateral and Multilateral:
?The entry of the Russian Federation into the WTO, approved at the 8th Ministerial Conference
of the WTO (Geneva, 2011) permitted Russian market access for Brazilian-origin beef, pork, and
poultry, by means of tariffs in quantities that were considered satisfactory by the Brazilian
Government and by Brazil?s export private sector.
?Concerning the negotiations to open and maintain markets, related to SPS matters, the
following advances are highlighted for opening market access for Brazilian products: China,
Japan, South Korea, the Russian Federation, Canada, the United States, the European Union,
South Africa, Malaysia and Indonesia, among other countries. The referenced activities resulted
in opening market access for Brazilian agriculture/livestock products, such as fresh beef, pork
and poultry, thermo-processed meat products, dairy products, genetic materials, honey, gelatin,
animal feed, and vegetable products.
?Relevant facts to highlight for 2011 were (i) the conclusion of negotiations for the entry of fresh
pork to the U.S. market; (ii) advances in the opening the export market for fresh beef; (iii) the
growth and robust evolution of Brazil?s negotiations with China in the area of increasing
I.2.E.2. Agribusiness Trade Promotion:
?In 2011, the strategy to promote Brazilian exports through a diversification of markets was
maintained. With this objective trade actions were undertaken in Japan, China, the United States,
South Africa, Peru, the Netherlands, Germany, France, and Italy.
?For 2012, the preliminary calendar of actions to promote international agribusiness trade
foresees work in the following markets: Japan, China, the Russian Federation, South Africa, the
United States, the United Kingdom, France, Germany, Turkey, and Peru. Once again, public
image campaigns will be prioritized to add value to Brazilian products in markets such as
Europe, the United States, and Japan.?
Highlights in Numbers, using Brazil?s statistics as reported in the 2012 Message to the National
o Brazil?s 2011 agricultural exports expanded by 23.7 percent from 2010, reaching a record
o Brazil?s 2011 agricultural imports also shot by up 27.6 percent, reaching US$17.1 billion.
o Brazil?s 2011 agricultural exports to China increased 50 percent from 2010, totaling
US$17.5 billion, corresponding to roughly 17.5 percent of all exports.
o Brazil?s 2011 agricultural exports to other countries grew significantly as well:
Export Market 2011 Export Value Growth from 2010
Algeria US$1.42 81 percent growth
Egypt US$1.91 42 percent growth
Spain US$2.48 41 percent growth
Japan US$3.52 55 percent growth
Hong Kong US$1.99 28 percent growth
United Arab Emirates US$1.51 25 percent growth
o A third of all 2011 Brazilian agricultural exports went to the Asian region.
o The European Union as an export market for Brazil is shrinking, but it continues to
account for 25 percent of 2011 Brazilian agricultural exports.
o Brazil?s primary agricultural exports in 2011, by sector:
Commodity 2011 Export Percentage of Total Ag Export
Soy complex US$24.1 25.5 percent
Sugar and US$16.2 17.1 percent
Meat US$16 16 percent
Forestry US$9.64 10 percent
Coffee US$8.73 9 percent
These five commodities accounted for 78 percent of all agricultural exports in 2011.