Brazil uncertain if in-transit beef counts toward China's new quotas

Brazilian officials lack clarity on whether beef shipments en route to China will count against Beijing's new import quotas announced last week. The volume is small relative to 2025 exports, but the industry fears sales disruptions amid the broader safeguard measures affecting major exporters like Argentina and Australia.

Brazil's Ministry of Commerce stated there is no clarity yet on whether beef in transit to China will be included in the quotas. Herlon Brandão, head of the ministry's statistics department, noted these volumes are a "small" share compared to the 1.5 million metric tons exported to China in 2025, when the country absorbed about half of Brazil's record over 3 million tons of total beef exports.

The quotas are part of China's three-year safeguard measures with 55% tariffs on excess volumes. Brazil's allocation is 1.106 million tons in 2026, rising to 1.128 million in 2027 and 1.151 million in 2028.

Brazil's beef sector expressed concerns. Sindifrigo-Mato Grosso stated: "Chinese authorities have made it clear that the volume will be calculated based on actual entries into the country from January 1, 2026, regardless of previously signed contracts, in-transit shipments, or already shipped products."

Under this rule, Brazil could lose about 350,000 tons from its 2026 quota due to shipments in ports, on ships, or stored. In 2025, China accounted for 53% of exports, generating $8.8 billion. The Ministry of Agriculture provided no immediate comment.

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Illustration of China's record Q1 foreign trade growth, depicting a busy port with ships, cranes, and surging trade graphs.
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China's Q1 foreign trade up 15%, fastest in five years

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China's foreign trade reached 11.84 trillion yuan ($1.63 trillion) in the first quarter of 2026, up 15% year on year, the fastest quarterly growth in nearly five years, officials from the General Administration of Customs announced on Tuesday. Exports totaled 6.85 trillion yuan, up 11.9%, while imports rose 19.6% to 4.99 trillion yuan. The figure marks the first time first-quarter trade has exceeded 11 trillion yuan.

As Beijing's tariff approaches, Brazil's exporters are rapidly filling their quota for beef to China, prompting South American industry to seek new buyers. The benchmark price for finished cattle tracked by the University of Sao Paulo's Centre for Advanced Studies on Applied Economics hit R$365 (US$71.57) per arroba (11.5-15kg) on Wednesday, up 12.5 per cent over the past 12 months amid a rush to ship before the quota closes. Daily average shipments reached 10,630 tonnes, 8.6 per cent above March 2025 and 40.7 per cent above the same period in 2024.

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Beijing renewed import licences for hundreds of US beef plants during US President Donald Trump’s visit to meet Chinese leader Xi Jinping. Brazil nears its annual beef export quota to China and is seeking alternative markets.

President Javier Milei announced a reduction in export taxes on wheat and barley, which will drop from 7.5% to 5.5% starting in June 2026. The measure aims to provide greater predictability to the agricultural sector.

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China invested US$6.1 billion in Brazil last year, making the country Beijing’s top destination for overseas capital. The figure marked a 45 per cent increase from the previous year.

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