The EU-Mercosur trade deal brings “great prospects for the Brazilian agricultural sector”, the Brazilian Confederation of Agriculture and Livestock (CNA) has said.
The deal will allow up to 99,000t of South American beef to be exported to the EU at a lower tariff rate of 7.5%.
It will also allow for the export of up to 180,000t of poultry tariff-free and up to 25,000t of pork at €83/t into the EU market.
While the deal has to go through legal scrubbing over the coming year, it must be ratified by EU member states.
There is potential for the trade aspect of the deal to be removed from the ratification process, meaning that member states will not have an opportunity to veto the deal on a trade basis.
CNA’s international relations director Sueme Mori said the conclusion of the deal is great news for Brazil.
Protectionism
She said that the “recent false accusations about Brazilian agricultural production we’ve seen are proof of rising protectionism in international trade”, adding that Brazilian farmers need to ensure that unilateral protectionist measures do not harm what has been accomplished over the years.
“CNA supports trade liberalisation, understanding the importance and positive impact that exports have not only on the agricultural sector, but on the Brazilian economy as a whole.
“Our network of trade agreements is very limited and we need to move forward. That is why the agreement concluded is a landmark.”
Argentina
The president of the Argentine Rural Society, which represents farmers, Nicolas Pino said that the deal presents a great opportunity for the Argentine farming industry.
“The Mercosur-EU agreement will also improve the conditions for regional production, generating new sources of investment and genuine employment throughout the country,” he said.
“Of every 10 dollars that Argentina exports, six come from agro-industrial products, which makes this agreement a strategic opportunity to diversify and expand markets.
"In addition, it reinforces openness to the world, demonstrating that it is possible to integrate economies, even in an international context marked by the resurgence of protectionism.
“The improvement of some products could also be quantified. For example, the Hilton quota, which would no longer pay tariffs, is a great step forward,” he said.
Tillage Podcast: BYDV, US farming and Mercosur’s impact on tillage