For years, Arnaldo Carneiro stuck to his master plan to contain deforestation in Brazil.<\/p>\n
Carneiro\u2019s studies demonstrated the complicity of importers of Brazilian soybeans in the degradation of the environment. He implored them to purchase only from farmers who could guarantee they did not clear land for cultivation.<\/p>\n
The strategy always worked better in Europe. In 2015, seven European countries signed the\u00a0Amsterdam Declaration<\/a>\u00a0committing to support private sector initiatives against deforestation in their production chains.<\/p>\n \u201cEurope is a slightly more conscious market,\u201d said Carneiro, who directs Global Canopy, an NGO. \u201c[They are] concerned with impacts on the front line.\u201d<\/p>\n Now, however, Carneiro\u2019s strategy has suffered a big setback that has renewed concerns for Brazilian forests: the US-China trade war.<\/p>\n The world\u2019s two largest economies began to impose tit-for-tat tariffs on a range of imports in March this year. China hit US soybeans \u2013 a heavily traded commodity \u2013 with a punitive\u00a025% levy<\/a>. Since then, Chinese demand for Brazilian soy has spiked.<\/p>\n The trade war has also kick-started a game of musical chairs between soybean purchasers and producers.<\/p>\n Chinese buyers have increasingly switched to Brazil to avoid the high tariffs imposed on US products. Meanwhile, European dealers have flocked to the US as prices slumped for their soybeans, which flooded the market after losing eager Chinese customers.<\/p>\n Historically, China has accounted for approximately one-third of US soybean consumption. Chinese people have increasingly stronger purchasing power and want to eat better. Soybeans play an important part in food production since they are fed to Chinese pigs.<\/p>\n In June this year, 37% of soy imported to Europe came from the US, an explosive increase compared to 9% last year.<\/a>\u00a0At the same time, the volume of soybeans exported from Brazil to China grew 15% from January to September this year compared to the same period last year, according to\u00a0official figures<\/a>. Demand was so high that Brazilian reserves have almost run out.<\/p>\nTrade spat impacts<\/h2>\n