Members of the AgroBrazil Alliance, a group launched by the Brazilian Agriculture and Livestock Confederation (CNA) to discuss foreign trade issues within the private sector, celebrated this Tuesday (02) the free trade agreement signed between Mercosur and the European Union, after 20 years of negotiations.
The Alliance held an extraordinary meeting attended by representatives from the Ministries of Agriculture, Livestock and Supply (Mapa) and Foreign Affairs (MRE), as well as entities, associations and industries linked to the agricultural sector.
The director of the Department of Mercosur and Regional Integration of the Ministry of Foreign Affairs, Michel Arslanian Neto, and the secretary of Commerce and International Relations of the Ministry of Agriculture, Livestock and Supply, Orlando Leite Ribeiro, presented some points agreed upon by the two economic blocs for agricultural products.
One of them is that the European Union will release 99% of agricultural imports from Mercosur. Most of this percentage will be subject to tariff reduction (82%) and the remainder will have access via quotas. Products such as orange juice, fruits (melons, watermelons, oranges, lemons, among others), instant coffee, fish, crustaceans and vegetable oils will have their tariffs reduced to zero.
Regarding quotas, most will be granted gradually, over a period of six to ten years. Beef, for example, will have a quota of 99 thousand tons and a reduced tariff. In addition, the Hilton quota, which includes exports of fine cuts of Brazilian beef, will have its current tariff of 20% reduced to zero after the agreement comes into effect.
For chicken meat, 180 thousand tons will be subject to a zero tax rate. The quota for pork meat was set at 25 thousand tons, with a rate of 83 euros per ton. A quota for ethanol of 450 thousand tons with a zero tax rate is also planned. For fuels and other uses, the quota will be 200 thousand tons with a reduced tax.
For the CNA’s Superintendent of International Relations, Lígia Dutra, the agreement increases the competitiveness of the Brazilian agricultural sector, since the European Union is the destination for almost 18% of exports. “The decision opens the door for other agreements to be concluded soon and other negotiations to be launched for the benefit of the agribusiness sector,” said Lígia.
According to the CNA’s International Relations Coordinator, Camila Sande, the Mercosur-European Union agreement also establishes deadlines and procedures for sanitary and phytosanitary protocols and technical standards, seeking to improve access to markets and avoid unjustified and arbitrary measures. “It ensures greater predictability and regulatory transparency by reducing physical inspections, harmonizing customs procedures, among others.”
Also participating in the meeting were the Secretary of Agricultural Policy of the Ministry of Agriculture, Livestock and Supply, Eduardo Sampaio, the Director of the Department of Trade and Commercial Negotiations of the Ministry of Agriculture, Livestock and Supply, Ana Lúcia Oliveira Gomes, and the Director of the Department of Market Access and Competitiveness of the Ministry of Agriculture, Livestock and Supply, Gustavo Cupertino.
The meeting was attended by the following entities:
– Brazilian Association of Zebu Breeders (ABCZ);
– Brazilian Food Industry Association (ABIA);
– Brazilian Rice Industry Association (Abiarroz);
– Brazilian Association of the Chocolate, Peanut and Candy Industry (Abicab);
– Brazilian Association of Meat Exporting Industries (ABIEC);
– Brazilian Tobacco Industry Association (Abifumo);
– Brazilian Animal Protein Association (ABPA);
– Brazilian Association of Refrigerators (Abrafrigo);
– Brazilian Association of Corn Producers (Abramilho);
– Brazilian Association of Nectar and Juice Producers and Bottlers (Abrasuco);
– Association of Biotechnology Companies in Agriculture and Agroindustry (Agrobio);
– Brazilian Coffee Exporters Council (Cecafé);
– Parliamentary Front for Agriculture (FPA);
– Brazilian Cachaça Institute (Ibrac);
– Federation of Rice Growers Associations of the State of Rio Grande do Sul (Federarroz);
– Organization of Brazilian Cooperatives (OCB);
– Brazilian Dairy Association (Viva Lácteos);
– Brazilian Association of Fish Industries (Abipesca);
– Brazilian Association of Soybean Producers (Aprosoja).
