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Brazil Business - Brazil

Brazil proposes creating food and fertilizer corridors around the world

By · May 10, 2022 · 3 min read

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RIO DE JANEIRO, BRAZIL – The Brazilian government wants a global agreement to allow food and fertilizer corridors to be created, preventing the war in Ukraine or sanctions against Russia from shaking markets and agricultural supplies.

The proposal was signaled on May 9 by the Brazilian delegation at the World Trade Organization (WTO) and came at a time when the conflict has led food commodity prices to record highs, in addition to an explosion in inflation and hunger in various parts of the world.

For the Brazilian economy, besides the food issue, one of the central points is the ability to maintain access to Russian fertilizers, which dominate the domestic market.

Brazilian Chancellor Carlos França (left) and Brazilian President Jair Bolsonaro (right).
Brazilian Chancellor Carlos França (left) and Brazilian President Jair Bolsonaro (right). (Photo: internet reproduction)
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The WTO ministerial conference takes place in June, and the organizers hope that, during the summit, an understanding will be established to ensure that trade measures do not undermine the ability of entire populations to feed themselves.

According to the Brazilian delegation, the conference “takes place under exceptional circumstances,” and the results should address both existing emergencies and structural issues of the WTO. All negotiating processes have been shaken, with delegations refusing to enter rooms where Russian diplomats are present.

For the Brazilian government, however, the fear is that the prolongation of the war will turn into losses for the country’s agricultural exports, while the risk of hunger returns to the international debate.

“Food security will be the most pressing issue at the ministerial conference,” Brazil’s Foreign Ministry (Itamaraty) said at a meeting in Geneva.

WTO Director-General Ngozi Okonjo-Iweala met with Brazilian Chancellor Carlos França and President Jair Bolsonaro a few weeks ago, and the agricultural issue was also addressed. “At a time when food security is a threat looming on the horizon of the world economy, Brazil is part of the solution. Our agricultural exports feed one in ten human beings. On a sustainable basis, on an efficient basis, Brazil is an agricultural power,” said the Itamaraty mission.

For the government, however, it is not just about trade. “Last week, humanitarian agencies issued a call for markets to be kept open because acute hunger is rising to alarming levels, and the global food situation risks getting even worse,” Itamaraty said.

Referring to the WTO chief’s conversation with Bolsonaro, the delegation stressed that a central dimension of the solution to the “food security issue is to ensure that the inputs needed to prepare next year’s crops will be available to producers.”

“This year, the food crisis is essentially manifesting itself under the guise of rising prices. In the absence of a timely supply for inputs, such as fertilizers, the world food supply itself will be at risk starting next year,” the delegation warned.

According to Itamaraty, Brazil has already begun to explore with countries affected by the food crisis, particularly the poorest, the establishment of “emergency corridors to ensure the movement of food and fertilizers. Talks have taken place with African and Latin American countries.

“The ministerial conference should devote special attention to this issue, and Brazil would like to propose a specific initiative to guarantee access to fertilizers,” Itamaraty announced. “It is, no one is unaware, a complex and multifaceted issue. It will require close cooperation among government agencies and international organizations. It is a complex but indispensable task,” the Foreign Ministry insisted.

With information from UOL

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