CECAFÉ – Brazilian Coffee Exporters Council, as representative of the coffee export trade in Brazil, follows closely the world political scenario and the changes in international relations after the US election results.

The international political scenario is currently going through some very decisive moments due to the election for president in the United States of America. The moment duly calls for a thorough analysis of the possible impacts on Brazilian agribusiness, especially on global agricultural trade and on environmental and climate policy issues

With the confirmation of the victory of the Democratic candidate in the coming weeks, one of the significant changes in international relations under the Biden administration is likely to be the United States resuming its leadership in the multilateral coordination of the world, based on strategic diplomatic connections to foster greater political, commercial, financial stability, as well as to ensure peace, development and others, especially in the post-World War II period.

The United States played an important role in the creation of several international organizations whose objective was to promote peace and human rights, prevent new wars, and conflict resolution (United Nations), finance and development (International Monetary Fund), trade (World Trade Organization), public health (World Health Organization) among others.

Regarding the global coffee trade, it is possible that the USA rejoins the ICO – International Coffee Organization, precisely when Brazil seeks to lead the process to modernize this Organization, based on the strict environmental and social parameters of the Brazilian coffee agribusiness—an example to be followed by the more than 50 producer countries in the world.

Due to political, diplomatic and even economic reasons, Brazil’s position is that the ICO needs to be restructured, and the private sector (Brazilian and international) needs to become part of the organization, which would thus become a center for the true exchange of market information and discussion of public policies at the international level that can strengthen the entire production chain and foster business.

As an example, during President Trump’s administration, even after the US left the ICO, representatives of the NCA, the National Coffee Association representing the US coffee industry and trading companies, held a Council meeting in April 2018 in Mexico City to stress that the private sector would continue to be present and active in the Organization regardless of political decisions at that time.

Thus, with the US election results, the environmental agenda, with central themes such as the Paris Agreement, climate anomaly mitigation strategies, clean development mechanisms and carbon sequestration, as well as higher focus on social issues such as public health and biological security, including food security, as a response to pandemics, should gain momentum and occupy great space in the discussions.

U.S. domestic affairs and the country’s economic recovery in particular will certainly be prioritized, but foreign policies aimed at new forms of dialogue with China should also be made possible, with multilateral rules for all, therefore increasing strategic partnerships.

As mentioned above, the environmental issue goes back to the spotlight and the possible theme that should cause impact in Brazil is that the parties will resume dialogue on climate change, as already indicated in the proposed agenda.

With the US rejoining the Paris Agreement, climate change will occupy the center of its foreign, trade and national security policy, which will certainly include strong pressure for the Brazilian Government to demonstrate its commitment to reducing illegal deforestation in the country.

Internally, the Democratic agenda already indicates the expansion of a program to support environmental services provided by rural producers who use good agricultural practices, mainly those based on soil carbon sequestration.

Another aspect of the plan also emphasized is the incentive to American exports, increasing investments in renewable energy, strengthening policies focused on biofuels and purchasing more environmentally friendly local products.

Brazil can certainly take advantage of this moment to take the leading role in a more positive agenda. Regarding to illegal deforestation, the country will be able to improve its audit tools, in compliance with the Brazilian Forestry Code, especially in matters of land and environmental regularization.

Brazil has a natural vocation of global producer and supplier of agricultural products due to its unique climatic characteristics (rainfall, solar irradiation, thermal conditions, territorial and environmental extension conservation of natural resources, fertile soils, biodiversity), among others. Such conditions provide a diversified and clean food and fuel production matrix, competitiveness in terms of research and new technologies applied, with agriculture considered “low carbon” compared to our competitors.

The path to be followed strategically should be that of dialogue, clearly and assertively identifying our national interests and challenges to be overcome in order to try establish connectivity with all players in the international political scenario, to strengthen ties and diplomatic relations, to avoid unnecessary confrontations, to resume positive communication, and to promote Brazilian agribusiness and its unique strength and vocation as a global food producer and supplier.

Cecafé will always be proactive, certain that the joint collaboration will result in benefits to all Brazilian coffee agribusiness and knowing that the United States is an important destination for Brazilian coffee exports and the first world consumer of the beverage.

Therefore, CECAFÉ, as the representative of the export sector and a partner of other segments of the Brazilian coffee chain, such as production and manufacturing, is keeping an eye on global trends and on the need for articulation between all links in the production chain.

The Council’s Code of Ethics and Conduct demonstrates the export sector’s commitment to further expand successful socio-environmental projects and continue to promote the image of the Brazilian coffee agribusiness, meeting the needs of the most diverse and demanding markets around the world.

 

Marcos Matos – CECAFÉ CEO
Lilian Vendrametto – CECAFÉ Sustainability Manager