CNA Defends Brazil’s Agribusiness Competitiveness in U.S. Hearing: “Legitimate Foundations” (2025)

• What Did the CNA Argue in the U.S. Hearing?
• Why Is the U.S. Investigating Brazilian Agribusiness?
• How Did Brazil Respond to the Allegations?
• What’s the Ethanol Market Angle?
• Could This Dispute Reshape Trade Dynamics?
• FAQs: Brazil-U.S. Agribusiness Trade Tensions

In a fiery public hearing in Washington this week, Brazil’s Confederation of Agriculture and Livestock (CNA) pushed back against U.S. trade investigations, arguing that the country’s agribusiness success stems from natural advantages and innovation—not unfair practices. The hearing, tied to Section 301 of the U.S. Trade Act, could lead to higher tariffs on Brazilian exports like coffee and beef if the U.S. government finds evidence of trade violations. Here’s what unfolded—and why it matters for global markets.

What Did the CNA Argue in the U.S. Hearing?

Sueme Mori, CNA’s International Relations Director, emphasized that Brazil’s agricultural competitiveness is built on “legitimate foundations,” including abundant natural resources and sustained investments in technology. She dismissed claims that Brazilian producers rely on lax environmental or trade policies to gain market access. “Our farmers operate under strict compliance standards,” Mori stated, citing Brazil’s Forest Code, which mandates native vegetation preservation on private lands. Notably, 66% of Brazil’s territory remains covered by native vegetation, half of which is preserved by private landowners.

Why Is the U.S. Investigating Brazilian Agribusiness?

The probe, launched July 15 under Section 301, allows the U.S. to unilaterally impose sanctions if it deems Brazil’s trade practices “unfair.” Key concerns include preferential tariffs, ethanol market access, and illegal deforestation. The U.S. already imposes 50% tariffs on some Brazilian goods, but retaliatory measures could escalate. Brazil is the top global exporter of coffee and beef, with the U.S. as a major buyer—about one-third of America’s coffee imports come from Brazil.

How Did Brazil Respond to the Allegations?

In August, Brazil’s government formally rejected the investigation’s legitimacy, arguing the U.S. Trade Representative (USTR) lacks jurisdiction. The CNA also submitted technical evidence defending Brazil’s policies on the three disputed areas. Mori highlighted that only 5.5% of Brazil’s ag exports benefit from preferential tariffs, while over 90% of imports follow “Most Favored Nation” principles—ensuring equal treatment for U.S. goods.

What’s the Ethanol Market Angle?

The U.S. raised concerns about Brazil’s ethanol trade, but Mori countered that Brazil imported 17 times more U.S. ethanol than India’s in 2024. “Our market is open,” she asserted, underscoring bilateral trade benefits. The U.S. is Brazil’s second-largest ethanol supplier after the U.S. itself.

Could This Dispute Reshape Trade Dynamics?

With $9.3 billion in ag trade between the two nations in 2024, tensions risk disrupting supply chains. Analysts warn that higher tariffs could inflate U.S. consumer prices for coffee and beef. Meanwhile, Brazil is diversifying exports to China and the EU—a strategic hedge if U.S. relations sour.

FAQs: Brazil-U.S. Agribusiness Trade Tensions

What is Section 301 of the U.S. Trade Act?

Section 301 empowers the U.S. government to investigate and retaliate against foreign trade practices deemed unfair or discriminatory.

Which Brazilian products face U.S. tariffs?

Coffee and beef currently face 50% tariffs, but the investigation could expand penalties to soy, sugar, and poultry.

How does Brazil’s Forest Code impact farming?

The code requires private landowners to preserve 20-80% of native vegetation, depending on the region—a policy the CNA credits for balancing production and conservation.