Brazil is expected to concentrate the largest share of the beef export quota provided for in the trade agreement between Mercosur and the European Union. An understanding reached between sector entities in the bloc’s countries establishes the proportional division of the volume among South American exporters.
Under the arrangement, Brazil will have 42.5% of the quota allocated to Mercosur, followed by Argentina (29.5%), Uruguay (21%) and Paraguay (7%).
The division was defined in a business agreement signed in 2004, even before the conclusion of trade negotiations between Mercosur and the European Union. The understanding was established between associations representing the meat chain and the agricultural sector in the bloc’s countries.
Among the signatories are:
ABIEC (Brazilian Association of Meat Exporting Industries)
CNA (Brazilian Agriculture and Livestock Confederation)
SRB (Brazilian Rural Society)
ABC (Consortium of Argentine Meat Exporters)
SRA (Argentine Rural Society)
CRA (Argentine Rural Confederations)
ARP (Rural Association of Paraguay)
CPC (Paraguayan Meat Chamber)
ARU (Rural Association of Uruguay)
ADIFU (Association of the Refrigerating Industry of Uruguay)
CIF (Chamber of the Refrigerating Industry of Uruguay)
FR (Rural Federation)
The understanding establishes that the distribution of the European quota among Mercosur countries must follow the relative weight of each country’s exports to the international beef market.
The trade agreement between Mercosur and the European Union provides for an annual quota of 99 thousand tons of beef at a reduced tariff for the South American bloc.
Of this total, 55 thousand tons are destined for fresh or chilled beef and 44 thousand tons for frozen beef, with an import tariff of 7.5%, below the tariff currently applied by the European Union for imports outside the quota.
The implementation of the volume does not occur immediately. The agreement establishes the gradual introduction of the quota over six years, until the total foreseen limit is reached.
Data from the MDIC (Ministry of Development, Industry, Commerce and Services) show that Brazilian exports of fresh, chilled or frozen beef to the European Union have fluctuated over the last few years, with monthly volumes generally between 3 thousand and 7 thousand tons, but with recent peaks above this level.
In value, shipments have varied between US$20 million and US$50 million per month, with recent records above this range as well, reflecting the international appreciation of the protein.
