HS Code:
Soybeans (HS Code: 1201) are a critical agricultural commodity widely used for food, animal feed, and industrial purposes such as biofuel production. They are one of the most traded agricultural products globally, with significant cultivation in both temperate and tropical regions. Soybeans are a primary source of protein and oil, making them a staple in global food supply chains. The trade of soybeans is heavily influenced by demand for livestock feed, particularly in the poultry and swine industries, as well as growing interest in plant-based diets and sustainable fuel alternatives.
Total Trade Volume
USD 60.3 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
5.2%
Highest Rate
30% (imposed by certain developing countries for domestic protection)
Lowest Rate
0% (under free trade agreements such as USMCA and EU-Mercosur negotiations)
Rising demand from Asia, particularly China
China accounts for over 60% of global soybean imports, driven by its massive livestock sector. This has shifted trade flows toward South American exporters like Brazil.
2020-2022
Increased focus on sustainable production
Growing consumer and regulatory pressure for deforestation-free soybeans has led to certification programs and traceability initiatives, affecting market access for non-compliant producers.
2021-2023
Fluctuations due to geopolitical tensions
Trade disputes, such as the US-China trade war, have caused volatility in soybean prices and redirected trade flows, with Brazil benefiting from diverted demand.
2018-2022
Brazil surpassed the United States as the world's largest soybean exporter in 2022, driven by record harvests and strong demand from China. Investments in infrastructure and favorable weather conditions have boosted production.
March 2023
This shift has reduced US market share and strengthened Brazil's position in global agricultural trade, potentially influencing future trade negotiations.
The European Union introduced a regulation in 2023 requiring deforestation-free certification for soybean imports. This aims to curb environmental damage linked to soybean cultivation in the Amazon and other regions.
June 2023
Exporters failing to comply may lose access to the EU market, pushing producers in Brazil and other regions to adopt sustainable practices or face reduced demand.
Argentina raised export taxes on soybeans to 33% in early 2023 to bolster domestic revenue amid economic challenges. This has sparked protests from farmers and trade partners.
January 2023
Higher taxes may reduce Argentina's competitiveness in the global market, potentially benefiting competitors like Brazil and the US in the short term.