Agricultural commodities are a key component of Latin Americas economy and exports. And are also a key element in the developing trade conflict between U.S. and China.

CGTN’s Paulo Cabral reports.

Heightened tariff for U.S. products – like soybeans – could mean more business for producers. The impact has already been felt in the Brazilian market, the biggest soy producer and exporter in the region.

“It will change the market and we are already seeing this in the market. Soybean prices in the United States are going down. The difference between United States prices and Brazilian prices are increasing,” said José Carlos Hausknech, MBAgro Consultants Partner.

There is potential gain to be made in some important economic sectors in Brazil as a consequence of the trade conflict between China and the United States. But there’s also concern over the negative impact the dispute could have on a wider, global scale.

Brazilian authorities said they are closely monitoring the China-U.S. situation. But so far, there haven’t been any problems.

“The world wins if everyone is working correctly, within the rules of the international trade systems, with no unilateral abusive behavior from any side. So, everybody wins when the multilateral system is working properly. We don’t want to explore alternative avenues for gain. We want the system working properly,” said Yana Dumaresq Sobral Alves, Ministry of Industry and Foreign Trade acting Executive-Secretary.

“I am certain we will feel negative impacts because this trade conflict between China and the United States bring to the world uncertainty in foreign trade and uncertainties means lower, lower activity and less trade,” said José Augusto de Castro, President of the Brazilian Foreign Trade Association.

A trade conflict between China and the United States – the two biggest economies in the world – is bound to impact the whole world. Latin America may not be able to totally avoid the negative effects but may be in position to reap at least some of the benefits.