China Advances Brazilian Corn Imports... "Temporary Suspension of Key Regulatory Provisions"

[Image source=Yonhap News]

Bloomberg reported on the 12th that China has taken measures to expedite the import of Brazilian corn. It is analyzed that China is diversifying its corn import sources amid US-China tensions and the Russia-Ukraine war.

According to Bloomberg, citing sources, China has decided not to temporarily apply key phytosanitary regulatory provisions to Brazil for the import of Brazilian corn.

In May, the two countries agreed that the Brazilian government would require its farmers to provide guidelines on the use of chemicals for pest and disease prevention and crop management before planting. According to this, corn already planted and produced this year is difficult to import. However, China has decided to suspend the application of these regulations only for this season to allow the import of Brazilian corn that is entering the harvest period.

The Brazilian Ministry of Agriculture reportedly informed domestic corn producers and exporters of this decision by the Chinese government on the 5th. Bloomberg said that a Chinese state-owned grain importer is already negotiating corn imports with Brazil and that the import of Brazilian corn could be realized around the end of this year.

Last year, China imported 70% of its total corn imports from the United States and 30% from Ukraine. Since the Russia-Ukraine war began in February, China has faced difficulties in corn supply and demand and has been making efforts to diversify its import sources.

Bloomberg also reported that China increased imports of US corn after the outbreak of the Ukraine war but, as tensions with the US deepened due to events such as US House Speaker Nancy Pelosi's visit to Taiwan, China feels the need to reduce its dependence on US grains.