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Business Day·4 min read·medium

Sugar and chicken trade war halted as US tariffs unite SA and Brazil

T
Thando Maeko
Sugar and chicken trade war halted as US tariffs unite SA and Brazil
✦AI Summary

South Africa and Brazil are strengthening economic ties to mitigate the impact of US-imposed tariffs on their exports. Both nations are seeking to diversify trade relationships and deepen South-South cooperation.

Why it matters

This reflects a strategic shift in global trade as emerging economies respond to protectionist policies from major powers like the US.

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South Africa and Brazil temporarily put their trade wars on the back burner as they sought to deflect shared pressure from US-imposed tariffs.

The two Brics members, arguably the largest economies in the Global South, said on Wednesday that they are seeking to turn their political alignment into deeper economic and industrial co-operation, with trade, critical minerals, manufacturing and technology emerging as key areas for closer ties.

The trade balance between the two countries heavily favours Brazil, resulting in a persistent deficit for South Africa.

South Africa accuses its Brics ally of dumping frozen poultry on its market. Cane producers have also listed Brazil among the countries whose exports of subsidised sugar are undercutting South Africa’s cane industry.

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