Jul 19, 2018

Officials from China and Brazil Expand Trade Relations

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Earlier this week, a 56 member Chinese delegation visited the state of Mato Grosso to sign three different protocols with state officials. The Chinese delegation from the province of Shaanxi, participated in the Economic and Commercial Cooperation Forum between Shaanxi/China and Mato Grosso/Brazil. The goal of the forum was to strengthen ties between the two regions in the areas of agribusiness, mining, technology innovation, commerce, infrastructure, logistics, and tourism.

The first agreement was with the Mato Grosso Meat Institute (Imac) which approved nine meat processing facilities for exports to China as well as investments in research to improved meat production. The second agreement involved investments in new technologies for agricultural and livestock production and food marketing. The last agreement was to strengthen trade relations between the province of Shaanxi and the state of Mato Grosso and for the future exchange of personnel.

The state of Mato Grosso is expected to benefit from the expanded trade relations with the Chinese. The province of Shaanxi has 37.5 million inhabitants, while all of the center-west region of Brazil has 15 million inhabitants. The idea is for Brazilians to produce the agricultural products that the Chinese will consume. Over the last three years, the Chinese have invested R$ 22 million in the state of Mato Gross.

In addition to government of officials, the delegation included representatives from various sectors including: clean energy, construction, natural health products, electronic equipment, and information technology.

For its part, the state of Mato Grosso is Brazil's largest producer of soybeans, corn, cotton, and cattle.