Brazilian ports linked to Bunge and Cargill demand lower taxes on the Panama Canal

SAO PAULO (Reuters) – Brazilian port operators, including global grain traders Cargill Ltd and Bunge Ltd, will unveil a proposal this week to lower Panama Cbad fares and reduce shipping costs. agricultural products to their main market, China.

They will argue that, at current rates, shipping grain from the ports of northern Brazil via Good Hope Cape costs almost $ 206,000 less than using the cbad, despite the shorter distance.

In a study to be presented at a conference in Panama on Thursday, the badociation of private ATP harbors operators will propose to use the unused capacity of the old Panama Cbad instead of the new encumbered locks opened in 2016 for Panamax vessels.

This could potentially reduce shipping costs and 4-5 day trip times between Brazil, the world's leading soybean supplier, and Chinese and Asian markets, according to ATP, including Cargill, Bunge, the grain trader. Brazilian Amaggi and the pulp and paper producer Suzano Papel and Celulose SA are members.

The operators hope that their proposal will pave the way for talks between Brazil and Panama to find a way to reduce tariffs.

"It's good for both sides, because today, Panama no longer receives a significant number of Brazilian grain vessels bound for China because of the lack of an agreement." tariff, "said Luciana Guerise, executive director of ATP, in a statement sent to Reuters.

ATP said the Brazilian Ministry of Agriculture was to submit its tariff proposal to the country's Foreign Ministry, which would negotiate the terms with the Panamanian authorities.

None of the ministries had immediate comment.

This initiative marks a new stage in the development of new trade routes for Brazil, the world's largest exporter of agricultural products, including soy, sugar, coffee, tobacco, orange juice, pulp, beef and tobacco. chicken.

A first step in this direction was taken last March when Aprosoja, an badociation of cereal producers in the state of Mato Grosso, signed a cooperation agreement with the Panama Cbad Authority.

"We think we can capture some of the grains that leave Mato Grosso and reach northern Brazil," said Cbad General Manager Jorge Quijano. "The Panama Cbad would be an option for the product to reach Asia, especially China."