Brazilian Beef Association Abiec said a trade deal between the European Union and the Mercosur bloc of South American countries could facilitate other agreements and open new markets for Brazil’s large meat processing industry.
Speaking shortly after Brussels and Brazil announced an agreement to reduce barriers to agricultural production, Antonio Camarelli, head of the Brazilian Beef Association Abiec.
He said the deal could pave the way for negotiations on access to new markets or expanding trade with existing partners. “A deal of this magnitude is like an invitation to negotiate with other countries and trade blocs,” Camardelli said.
The head of Abiec mentioned Indonesia and Thailand as promising new markets for Brazil, the world's largest beef exporter, whose sales last year totaled about $ 7 billion.
According to Camarelli, Europe is not the largest buyer in Brazil, but is the highest paid customer in the country.
The deal expands prospects for increasing sales of Brazilian beef in the EU, as it provides a 42.5% stake in the new 99,000-ton annual quota for beef export to EU countries, which will be assigned to Mercosur. The tax on the new quota will be 7.5%.
