Brazil loses leadership to Mexico in orange juice export to the US

Published 2020년 9월 10일

Tridge summary

Mexico has emerged as the leader in the US orange juice market, overtaking Brazil, due to the tariff exemption under NAFTA. Since 1993, US imports of Mexican FCOJ have surged from 9,772 tonnes to 74,680 in 2019, while Brazilian imports have decreased from 144,538 tonnes to 71,114 in the same period. The tariff exemption and lower costs have made Mexican juice more competitive, leading to a significant shift in the market. Brazil is exploring international agreements to reduce tariffs and compete more effectively.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Driven by the tariff exemption of the North American Free Trade Agreement (NAFTA), Mexico's orange juice exports to the United States overthrew the Brazilian product's leadership in the American market. A survey carried out by CitrusBR with data from the United States Department of Agriculture (USDA) shows that in the last 28 years, American imports of Mexican FCOJ jumped from 9,772 tonnes to 74,680 in 2019, an increase of 664.2%. Thus, Mexico's share of the US market went from 6% to 46%. In the same period, sales from Brazil fell 50.7%, from 144,538 tonnes to 71,114 tonnes in 2019. As a result, Brazilian participation, which was 89% in 1993, fell to 44% last year. “When we look at the period, imports from the US are still around 155 thousand tons of FCOJ. What has changed is Mexico's aggressive entry into this market ”, analyzes the executive director of CitrusBR, Ibiapaba Netto. The explanation for the advance of the Mexican product lies in the difference in tariff regimes. ...

Source: Agroemdia