Brazil fears agriculture protectionism amid pandemic

Brazilian officials expect the coronavirus outbreak to spark a rise in global agricultural protectionism as countries seek to secure local food supplies, according to a draft report from the agriculture ministry seen by Reuters.

The report flags a range of concerns related to “agriculture nationalism,” including the possibility of countries imposing export restrictions, subsidies, and other policies to favor domestic agriculture industries. The concerns emerged during the ministry’s recent consultations with 23 agricultural attachés stationed in Brazilian diplomatic outposts around the world.

Brazil has become an agricultural powerhouse in recent decades on the back of globalization. The country is the largest exporter of soybeans, sugar, coffee, orange juice, chicken, and beef, and is a fierce competitor with the U.S. farm sector in several products.

The draft report says there is likely to be more state intervention in agricultural markets going forward. In some cases, countries will ease restrictions when there is a fear of food shortages only to “return to elevated levels of protectionism and subsidies when convenient, to stimulate domestic industry,” it says.

“About subsidies specifically, there is the risk the pandemic will be used as an excuse for them to be deployed at disproportionately elevated levels,” the report adds.

Brazil must press to make sure that any measures opening up trade are not reversed after the pandemic ends, it says.