Driven by the tariff exemption of the North American free trade agreement, Mexico's orange juice exports to the United States overthrew the Brazilian juice's leadership in the American market. While Mexico is exempt from tariffs to send the product there, Brazilian juice is taxed to access the market. Nascar's agreement was signed in 1994 and since then it has been bringing tariff quotas for Mexican juice. In 2008, when the Mexican tariff reached 0, it boosted exports from Mexico to the United States too much and, little by little, Mexican juice was taking over the Brazilian market and today it has become the largest concentrated juice supplier in the American market, explained the Citrus Br.
Neto says that this should cost Brazil around US $ 200 million a year and, although the Brazilian government is interested in making trade agreements with the United States, the process should still take time. Due to the lack of commercial diplomacy between Brazil or Mercosur with the USA towards orange juice the scenario remains.
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