Brazil becomes a threat in dispute between USA and China for the control of seas

“With their inner navigable, rail and highways, I believe our transportation system is our competitive advantage,” he said. “The wing supports the goal of increasing domestic shipping capacity to help export US agriculture. However, the solution proposed in this investigation generates unintentional consequences for soybean producers like me,” he warned.

According to him, the solution proposed by USTR to combat China’s shipbuilding sector “would significantly increase” the freight rates for soybeans and US soy products, making the final price of US soy products less desirable compared to Brazilian grains – the largest US soybean competitors in the export market.

“The imposition of port rates on most of the maritime fleet that exports and matters from the US will increase costs for US farmers, both in terms of inputs and fertilizers, seeds, and to bring harvests to the market,” he said.

“At the same time, our competitors in Brazil and Argentina will not be subject to the same regulations. Although well-meaning, this proposal would guarantee that US soybean would be higher costs and would be less competitive in the global market,” he concluded.

The American Farm Bureau Federation, a powerful US agricultural lobby entity, has also claimed to be against. By 2024, the US exported more than 106 million metric tons of bulk agricultural products.

The National Grain & Feed Association (NGFA) – the largest US grain association – also declared itself against the government’s proposal to collect fines. “Although well-intended, this proposal threatens to impose significant costs on US grain and seed exporters and corrode the competitiveness of the United States in the international market,” explained NGFA President and CEO Mike Seyfert.