Brazil loses to Mexico the leadership in orange juice exports in the US market

Published 2020년 9월 9일

Tridge summary

Mexico has emerged as the leading supplier of orange juice to the United States, challenging Brazil's dominance in the market. Since the implementation of the North American Free Trade Agreement (NAFTA) in 1993, which exempts Mexico from tariffs, American imports of Mexican FCOJ have surged from 9,772 tonnes to 74,680 in 2019, accounting for 46% of the US market. In contrast, Brazilian exports have seen a significant decrease, falling from 144,538 tons to 71,114 tons in the same year. The tariff exemption has been a key factor in Mexico's competitive advantage, as Brazilian juice faces a tariff of $415.86 per ton. Additionally, the article highlights the impact of tariffs and logistical costs on the value of Brazilian orange juice exports and the efforts to improve the global competitiveness of Brazilian orange juice through international agreements.

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

Original content

Driven by the exemption of tariffs from the North American Free Trade Agreement (NAFTA), Mexico's orange juice exports to the United States, overturned the leadership of Brazilian juice in the American market. A survey 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 dropped 50.7%, from 144,538 tons to 71,114 tons in 2019. As a result, the Brazilian participation, which was 89% in 1993, dropped 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: GrupoCultivar