Shanghai Buyun Investment Co. fund manager Zhan Xiao thinks China will increase its imports of Brazilian sugar because drought in Thailand has curbed the amount of Thai sugar it can buy, Bloomberg reports.
The financial news agency quotes Mr Zhan as saying China will import this year more than the 2 million tonnes of Brazilian sugar it imported last year, so increasing the Brazilian share of the Chinese market for foreign sugar, already the biggest.
The report says China cut last month its tariffs on imports of Brazilian sugar, reducing the tariff on the first 1.95 million tonnes it imports each year to 15 percent, Bloomberg says.
Last month the Reuters news agency quoted the Brazilian sugar industry association, Unica, as saying that China cut the tariffs after Brazil dropped its demand for an investigation of them by the World Trade Organization.
(Source) Permanent Secretariat to the Forum for Economic and Trade Co-operation between China and Portuguese-speaking Countries (Macao):